FW
Global Sourcing Expo in Melbourne will spotlight strategies to reduce Scope 3 emissions, indirect emissions across the supply chain,which are critical to sustainability in the fashion industry. These emissions, comprising around 95 percent of apparel retailers' carbon footprint, have become a focal point as the industry confronts its environmental impact. Addressing these Scope 3 emissions is increasingly recognized as essential for meaningful progress toward sustainability.
The Expo's seminar series will feature a keynote by Liam Salter, Founder and CEO of Reset Carbon, a leading consultancy in carbon management. Salter, who has guided brands like Walmart, Nike, and Ralph Lauren through carbon-reduction initiatives, will deliver a session titled ‘Net Zero and scope 3 GHG emissions – How to get started and deliver results.’ This marks his first Australian speaking engagement, providing insights into practical decarbonisation strategies for the fashion sector.
Reset Carbon, headquartered in Hong Kong, operates across the Asia-Pacific region, assisting companies in creating comprehensive carbon-reduction frameworks. Its recent partnership with Beyond Sustainable Retail Group aims to bring these solutions to Australian and New Zealand retailers, with a strong focus on collaborative supplier engagement and sustainable practices.
Rick Lambell, CEO of Beyond Sustainable Retail Group, will moderate the session, offering his expertise in local retail sustainability efforts. The discussion will emphasize setting science-based targets, aligning procurement practices with emissions goals, and building strong supplier partnerships to achieve decarbonisation.
The seminar will be held on November 21. For fashion and textile businesses committed to significant climate action, this session provides a roadmap to effectively tackle Scope 3 emissions and advance towards Net Zero targets.
Building on last year’s strong 9-10 per cent rebound, revenues from India’s home textile industry are set to grow by 6-8 percent this fiscal, says the latest CRISIL Ratings’ report.
Most of this growth will be fueled by steady demand from the US, the industry’s largest export market, and an expanding domestic market, despite lingering logistical issues, the report adds.
CRISIL Ratings’ analysis of 40 key companies, representing 40-45 percent of the industry’s revenue, indicates, the credit profiles of home textile companies will remain stable due to healthy cash flows and modest capital expenditure plans, supported by reduced debt levels. Exports make up 70-75 percent of the industry’s revenue, with the US accounting for 60 percent, while the domestic market contributes the remaining 25-30 percent.
Mohit Makhija, Senior Director, CRISIL Ratings, highlights three main factors behind this growth: resilient consumer spending and normalised inventory levels at major US retailers boosting exports; an ongoing expansion of domestic market presence; and stable domestic cotton prices remaining near international levels, which will keep Indian companies competitive. India’s share in US home textile imports will stabilise at around 30 per cent, as seen from Jan-Aug’24, notes Makhija.
From June-Sep’24, international cotton prices dropped below domestic prices cotton supply from Brazil and the US increased. However, with the onset of India’s cotton season, the gap is expected to close, preserving India’s export competitiveness. Operating margins willremain steady at 14-15 percent this fiscal as most exports operate on a free-on-board basis, minimising the impact of freight cost volatility, states the report.
The industry invested approximately Rs 8,500 crore in capacity expansion from 2019 to 2024, with capacity utilisation expected to stabilise at 60-70 percent this fiscal. Most companies aim to optimiseutilisation this year, with a few large players planning capital expenditure on debt-free balance sheets.
Pranav Shandil, Associate Director, CRISIL Ratings, avers, steady performance and moderate capital expenditure will likely maintain interest coverage for these companies at 5-6 times, while strong cash accruals will maintain total liabilities-to-net-worth ratio low at 0.6-0.7 times this fiscal.
Any significant slowdown in the US or a sharp increase in domestic cotton prices could impact the industry’s growth, warns the report.
ARISE IIP, in partnership with Afrexim bank and Swiss textile machinery leader Rieter, has introduced the Africa Textile Renaissance Plan, aiming to revitalize Africa’s textile industry. Signed framework agreement on October 14, 2024, the partnership framework seeks to transform 500,000 metric tons of African cotton into textiles over the next three to five years, backed by $5 billion in financing.
This plan intends to establish robust cotton transformation capacity across Africa, potentially expanding by an additional 500,000 metric tons. Key goals include creating 500,000 jobs, localizing textile machinery repair expertise, reducing Africa’s textile imports, and increasing exports, especially under the African Growth and Opportunity Act (AGOA).
Country selection will prioritize those with power and gas infrastructure, standard textile park facilities, or equity contributions. Selected countries will also receive training centers to boost skills for local industry growth.
Financing for textile projects will be streamlined, offering standardized loan documents, a fast-tracked two-month application process, and business plan templates. Rieter plans to develop a presence in Africa with facilities for repair and maintenance, spare parts warehousing, and potential machine assembly operations in ARISE’s Benin park.
ARISE CEO Gagan Gupta highlighted the initiative's transformative potential for job creation and sustainable textile production. Afrexim bank President Benedict Oramah called the plan a ‘game-changer’ for African trade, emphasizing the shift toward high-value exports and industrialization. Rieter CEO Thomas Oetterli expressed confidence that the partnership marks a pivotal step for Africa’s textile industry.
The global retail market is in constant flux, and the rise of e-commerce has reshaped how consumers shop. This has hit traditional brick-and-mortar stores hard, particularly in the fashion and apparel sector. As brands struggle to stay afloat, many are turning to online platforms as a potential lifeline. But is this digital pivot a viable solution or just a last-ditch effort to revive fading fortunes?
The digital exodus
For decades, brick-and-mortar stores dominated the fashion industry. Shoppers enjoyed the physical experience, instant gratification, and personalized service. However, the advent of e-commerce giants like Amazon, coupled with changing consumer habits, has disrupted this model. The advantages of online shopping are clear: convenience, wider selection, competitive pricing, and access to global markets. This has led to the decline of many traditional retailers.
A growing number of fashion brands are shuttering physical stores and migrating online, hoping to find a more sustainable model. This shift allows them to reduce overhead costs, reach a wider audience, and leverage data-driven insights to better understand customer behavior.
Forever 21 for example, the fast-fashion giant, once a mall staple, filed for bankruptcy in 2019. Forever 21 has since relaunched as an online-only retailer, partnering with e-commerce platform Global-e to manage its international online business. This move has allowed the brand to streamline operations and focus on its digital presence. Similarly J.Crew, also faced bankruptcy and opted for a digital-first approach. By investing in their online platform and optimizing their website for user experience, J.Crew aims to recapture its market share in the competitive online fashion space.
In fact, there are many success stories of digital brands. ASOS, the online-only fashion retailer has thrived in the digital age, catering to a young, tech-savvy demographic with its extensive selection, trend-driven styles, and user-friendly website. Boohoo Group, the fast-fashion giant, which owns brands like Boohoo, PrettyLittle Thing, and Nasty Gal, has built its success on a purely online model, leveraging social media marketing and influencer collaborations to reach its target audience.
Uncertainties of the shift
While the transition to e-commerce offers potential benefits, it's not without its challenges. Brands need to invest in robust online platforms, effective digital marketing strategies, and seamless logistics to compete in the crowded online marketplace.
The online fashion sector is fiercely competitive, with established players like Amazon and ASOS dominating the market. And some brands built on a strong physical presence may struggle to translate their brand identity and customer experience online. Then there is the whole new aspect of returns and logistics. Handling returns efficiently and cost-effectively is crucial for online fashion retailers. Replicating the in-store experience online can be difficult, particularly for brands that rely on personalized service and tactile product interaction.
Navigating the shift
Even established giants like Macy's and Bed Bath & Beyond are grappling with the shift to e-commerce. Take Macy’s for example, the department store chain has been actively pursuing an omnichannel strategy, combining its physical stores with a robust online presence. It has invested in improving its website, enhancing its mobile app, and offering services like in-store pickup and curb side delivery. While Macy's continues to face challenges, its digital efforts have shown some positive results. However, there is the example of Bed Bath & Beyond which despite attempts to boost its online presence and optimize supply chain, ultimately succumbed to bankruptcy. This highlights the fact that e-commerce is not a magic bullet; brands need a comprehensive strategy that addresses underlying issues like product assortment, pricing, and brand relevance.
Indeed e-commerce offers a potential lifeline for struggling fashion brands, it is surely not a guaranteed solution. Success in the digital space requires a well-planned strategy, significant investment, and a deep understanding of the online consumer. Brands that can adapt to the changing retail landscape, embrace technology, and offer a compelling online experience have the best chance of survival and even revival.
Currently under threat due to growing industrialisation and rising urbanisation, India’s handloom industry needs to be protected urgently, said Shivanand Patil, Textile Minister at the inauguration of the Haathkarga Handloom Fair at the Institute of Engineers. The event aimed to celebrate the cultural heritage of handloom weaving besides recognizing weavers’ dedication to their trade despite significant challenges.
Acknowledging the essential role of handloom weavers and artisans in preserving India’s artistic legacy, Patil noted, the intricate creations of these weavers have greatly enriched Indian culture. He urged people to support the industry by choosing handloom products. The state government too has provided funds worth Rs 31 lakh to 44 to the handloom weavers' cooperative societies under the Mitavyaya Nidhi Yojana for 2024-2025, besides funds worth Rs 54 lakh to 15 societies under a 20 per cent concession scheme.
Under the Nekar SammanYojana, Rs 22 crore has been allocated to support 44,000 handloom weavers, each receiving Rs 5,000, while Rs 50 crore has been set aside for one lakh power loom weavers, Patil added.
The event was also attended by Varneet Negi, Managing Director, Karnataka Handloom Development Corporation, Ramanand Kulkarni Divisional Joint Director Ramanand Kulkarni, etc. Around 62 stalls showcased a range of handloom products and artisanal pieces at the exhibition with ten stalls reserved for artisans from other states.
To support local cotton farmers and ensure fair prices amid recent price declines, the District Agricultural Trade and Marketing Department has opened a new cotton procurement center in Saluru, Parvathipuram Manyam district, Andhra Pradesh.
This new buying center will provide a fair and reliable, ensuring farmers receive fair prices for their cotton, says I Gangadhar Rao, District Agricultural Trade & Marketing Officer. He also advised farmers to prevent unauthorised brokers from exploiting them.
This development brings relief to cotton growers troubled by fluctuating market prices. The new center will help stabilise cotton trade locally, reducing dependence on intermediaries.
Renovating its outlet in Central Phuket, fast fashion brand Zara has converted it into the brand’s first tech-forward concept store in Thailand.
Launched in 2011, the store has more than doubled in size, from 840 sq m to more than 1,700 sq m. It features a white minimalist interior design and features technology tools that allow customers to integrate online and physical store platforms.
The store is a part of the brand’s global rollout of its new concept that aims to provide customers with a more spacious, innovative, and sustainable shopping experience. The Inditex-owned brand unveiled its first tech-forward concept store in Madrid, Spain in 2022. Focusing primarily on technology tools, the concept allows consumers to browse the store of their choice online, check available stock, shop online, and pick up their products in just two hours.
The concept also promotes store sustainability by using eco-friendly products and some of the most advanced environmental eco-efficient systems.
Zara has also launched this store concept in the US, India, and Portugal.
In the first nine months of FY’24 ended Sep 30, 2024, luxury fashion house Prada Group increased its net revenues by 18 per cent Y-o-Y to €3,829 million (approximately $4,135 million) as against €3,344 million (around $3,621 million) generated in the corresponding period last year.
The brand’s sales rose by 15 per cent at foreign exchange (FX) rates and by 18 per cent at constant rates during the period. Its retail revenue increased by 15 per cent Y-o-Y to €3,425 million and by 18 per cent at constant rates, compared to €2,979 million in the same period last year. This growth was led by its brand Miu Miu whose sales grew by 97 per cent Y-o-Y, highlighting the brand’s growing popularity. Prada's wholesale revenue also increased by 8 per cent Y-o-Y and 9 per cent Y-o-Y at constant rates to €314 million.
Regionally, Prada’s sales grew in double-digits across the Asia Pacific, Europe, Japan, and the Middle East, with sales in the Americas growing at a modest rate. The brand’s sales in Asia Pacific grew by 12 per cent at constant rates to €1,139 million, while fueled by domestic and tourist spending sales in Europe grew by 18 per cent to €1,089 million. Japan registered highest sales growth in the Asia Pacific region with a 53 per cent rise to €466 million, while salesin the Middle East increased by 24 per cent to €154 million.
Patrizio Bertelli, Group Chairman and Executive Director, Prada, notes, the brand continues to to deliver above-market performance at both Prada and Miu Miu. Despite a challenging luxury market environment, growth opportunities abound with the brand remaining committed to strategic investments in retail, technology, and industrial capabilities.
Highlighting Prada’s consistent performance amid industry challenges, Andrea Guerra, CEO, says, the group’s brands maintain strong desirability and relevance thanks to their consistent identity, creativity, and sharp positioning. Prada and Miu Miu’s resilience and momentum not only showcase the group’s ability to navigate complexities but also reinforce its commitment to sustainable, above-market growth.
Gen Z and millennial shoppers are emerging as some of the most frequent visitors to UK retail stores, particularly in fashion, as per a recent research from physical retail analytics firm Retail Next. The research shows, around 40 per cent of UK consumers visit non-food stores weekly, with Millennials leading at 46 per cent for weekly store visits.
Surveying over 1,000 UK shoppers, the research reveals, over 28 per cent respondents were twice more likely to visit apparel stores weeklythan average UK consumers. Over 34 per cent of respondents reported visiting stores 1.7 times more frequently than average shoppers, while 25 per cent of Millennials also visited these stores weekly at a rate 5 per cent higher than the average.
Gary Whittemore, Head -Sales (EMEA & APAC), Retail Next, notes, embracing physical retail for reasons beyond social commerce, younger consumers are turning to in-store shopping as a way to enjoy authentic shopping experiences, connect with brands face-to-face, and engage with communities in real life, he explains. They are leading the store revival both in the UK and the US, choosing physical stores as their preferred shopping channel, he adds.
The research further highlights, 71 per cent of respondents sought greater support for these businesses in the recent Budget, with 75 per centurging the government to prioritise high street retailers specifically. Additionally, 70 per cent of UK consumers called for rate cuts for these physical retailers to help level the playing field with online competition.
Despite predictions of the High Street’s decline, physical retail continues to be a vital part of the shopping experience, with even online-first brands investing in physical spaces, adds Whittemore.
The newly developed ‘S-2m’ ring-spinning system, a refined version of the innovative “Supertraveller” system introduced in 1995, promises a leap forward in yarn production and quality. Created to address limitations in traditional ring spinning, the S-2m uses a rolling traveller that minimizes friction and significantly increases operational speeds, enabling greater machine productivity.
Unlike conventional spinning systems restricted by friction between the ring and traveller, the S-2m’s design facilitates smoother and faster traveller movement. This improvement allows spindle speeds of up to 24,000 rpm, pushing traveller speeds beyond 59 m/sec accomplished without added lubrication. Additionally, yarn quality is enhanced, as the traveller’s rolling action reduces yarn breakage, hairiness, and potential melting in synthetic fibres at high speeds.
The S-2m also offers cost savings: it reduces energy consumption and extends traveller life, resulting in lower operational expenses. The traveller replacement process is simplified, reducing machine downtime to just a few seconds. Modernized to fit onto existing ring-spinning machines, the S-2m is compatible with materials beyond steel, allowing the use of composite travellers with improved heat resistance and lower friction.
In testing, the S-2m successfully produced yarns of various fibres, including cotton and synthetic materials prone to melting in traditional systems. Productivity gains of up to 2.5 times have been noted in synthetic fibre spinning. The inventor has filed an international patent application and is seeking manufacturing partners to help bring high-quality samples of the S-2m system to market.
