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The Apparel Export Promotion Council (AEPC) is lobbying the Indian government for tax incentives and other support measures to boost domestic garment manufacturing and exports in the upcoming Union Budget 2024.
The council’s key requests include a uniform 5 per cent GST rate across the entire Man-Made Fibre (MMF) supply chain to address liquidity issues for small and medium enterprises (MSMEs) caused by the current tiered tax structure.
The council has also sought an increase in interest equalization rate for non-MSME exporters from 2 per cent to 5 per cent, lowering their borrowing costs and improving competitiveness.
Another of AEPC’s recommendations includes a budgetary support for branding and marketing: Promoting ‘made-in-India’ apparel globally would enhance visibility and potentially increase demand.
The council has also urged the government to include specific items like drawstrings, elastic bands, and metal tabs in the duty exemption list.
Further, it has sought a minimum wastage allowance under Import of Goods at Concessional Rates (IGCR) rules: This would address challenges in accurate wastage estimation and simplify customs procedures.
The AEPC's proposals will be submitted ahead of the upcoming Indian budget on February 1st. The government's response will determine the extent to which these measures are implemented, potentially shaping the future of India's apparel export industry.
The Joint Apparel Association (JAAF) expects Sri Lanka’s apparel exports to reach $4.5 billion in 2024, with a potential uptick in the second half. The association emphasises the importance of maintaining cost competitiveness, improving ease of doing business, and achieving macro-economic stability for sustained growth.
While Sri Lanka's apparel exports faced challenges in 2023, ending the year with a 19 per cent decline compared to 2022's record high, there were promising signs of rebound in December. The final month saw the highest export figure since December 2022, reaching $415.6 million.
The industry's slowdown was attributed to global factors like inflation and recessionary fears impacting consumer spending and leading to high inventory in major markets. However, December's strong performance suggests a potential turnaround.
Despite the overall decline, there were some bright spots in terms of export destinations. While exports to the US and EU (excluding UK) saw significant decreases, the UK and ‘other countries’ categories showed marginal improvements in December. Notably, exports to the UK rose for the second consecutive month, increasing by 20 per cent in November and 1.7 per cent in December.
The decline in imports of textiles and textile articles further suggests a shift towards domestic production and potentially increased competitiveness for Sri Lankan apparel exports.
Overall, while 2023 presented challenges, the final months of the year and early indications for 2024 suggest a potential recovery for Sri Lanka's apparel industry. Continued efforts to improve cost competitiveness, ease of doing business, and macro-economic stability will be crucial for long-term success.
Fueled by the rising penetration of internet and smartphones in the country, India's online fashion market is projected to grow by 34 per cent CAGR from 2023-2030 to reach $18.76 billion by 2030. As per a report by CoherentMI, this growth will be driven by fashion influencers dictating trends and influencing millions with their curated feeds driving sales sky-high.
Giants like Myntra, Ajio, Flipkart, and Amazon are ruling the roost, offering a vast array of products to cater to every taste and budget. They're also getting creative, with Myntra's monthly ‘funfair’ deals and Ajio's ‘Gold’ loyalty program keeping customers hooked.
The market is diversifying with footwear, accessories, beauty products, and even jewelry. Catering to a wider range of consumers, the market opens up exciting new avenues for growth.
The future is bright for those looking to tap into the specific needs of different customer segments. With men's fashion leading the charge, there's immense potential in women's, unisex, and kids' fashion, catering to evolving lifestyles and growing purchasing power.
Returning its 26th year, Miami Fashion Week (MIAFW) will be held from January 24- 27, 2024. This year's event will be bigger and better than ever, with a new focus on streetwear and sustainability.
One of the most exciting things about MIAFW 2024 is the inclusion of Karl Kani, the ‘Godfather of Urbanwear,’ as the official featured designer. Kani will showcase his signature designs in a dedicated runway show. This is the first time that MIAFW has ever featured a streetwear designer, and it's sure to be a highlight of the event.
In addition to the runway shows, MIAFW 2024 will also host a Summit led by changemakers who are paving the way for sustainable style. The agenda includes thought-provoking discussions aimed at fostering a more eco-friendly approach to fashion.
MIAFW is committed to community building, and this year's event will feature a number of initiatives that support the Miami creative landscape. With support from the Miami-Dade County government, MIAFW 2024 aims to contribute to the enrichment of the local community.
Reality star and entrepreneur extraordinaire Kim Kardashian has officially been named as the new brand ambassador for Balenciaga, the Paris-based fashion house known for its edgy and innovative designs. This formalises a years-long relationship between Kardashian and the label, solidifying her place as a muse for the brand.
From strutting the catwalk at the Balenciaga 51st couture show to rocking custom Balenciaga at the 2021 Met Gala, Kardashian has been a constant fixture at Balenciaga events. Her presence has extended to numerous runway shows and co-starring in several campaigns, making her a natural choice for an ambassadorship.
Kardashian lauded the brand's commitment to modernity, craftsmanship, and innovative design under Demna, highlighting the mutual trust and shared values that underpin this partnership.
Joining the ranks of fellow Balenciaga ambassadors like Nicole Kidman, Michelle Yeoh, and Isabelle Huppert, Kardashian adds her star power to the label's already impressive roster. Her appointment undoubtedly bolsters Balenciaga's profile and injects excitement into its upcoming collections.
Clothing retailer Primark has launched its first-ever adaptive lingerie line, showing a commitment to enhancing fashion accessibility and affordability. The collection, which was co-designed with technical specialists, features small adaptations like easy closures, discrete magnetic clasps, and Velcro to make it more practical and comfortable for people with disabilities.
The four-piece collection includes a seam-free bra, a lace bralette, black briefs, and period pants. It was developed in response to research revealing that three in five
disabled people in the UK struggle to find comfortable clothing.
Charlie Magadah-Williams, Head-Diversity and Inclusion, Primark, this range is an effort on the brand’s part to support disabled customers and colleagues and understand what more can be done to make Primark a more accessible place to work and shop.
Further, the retailer also plans to improve its in-store experience for disabled customers and colleagues by conducting surveys and collaborating with accessibility experts to create a more inclusive environment.
Primark's adaptive lingerie is currently available in 64 UK stores.
Värnamo Sängkläder AB, a family-owned company specializing in high-quality Nordic bedding since 1951, has successfully navigated challenges from intense competition in the bedding market. Martin Åhlander, the third-generation CEO, revealed at the recent Heimtextil exhibition in Frankfurt that the company has maintained its position as the sole producer of pillows, mattress protectors, and quilts with manufacturing based in Sweden.
Facing fierce competition from Asian companies exporting high-quality bedding at lower costs, Värnamo strategically invested in the latest automation technologies around fifteen years ago. Collaborating closely with TMAS member ACG Kinna, the company implemented automated solutions, making production flexible, responsive, and cost-effective. This strategic move allowed Värnamo to compete and thrive against the backdrop of increasing challenges, particularly from Asian competitors.
A pivotal collaboration with ACG Kinna in the 1980s marked the beginning of their journey into automation, starting with the installation of automated overlock stitching units. Over the years, Värnamo expanded its automation capabilities, becoming one of the pioneers in installing an ACG Kinna robotic pillow line. This innovative line, capable of handling 3,840 pillows in an eight-hour shift, significantly increased production volume, positioning Värnamo as a leader in the market.
The COVID-19 pandemic further played to Värnamo's advantage, with disruptions in international shipping logistics and rising costs, leading to long lead times for products from Asia. Additionally, the company's recent collaboration with EyeTech, a developer of machine vision solutions, further enhances its automation capabilities. ACG Kinna's marketing and sales manager, Tomas Aspenskog, emphasized the comprehensive automation provided by the company, covering the entire production chain from fiber handling to final product packaging.
Värnamo's success story serves as a showcase for ACG Kinna's automation capabilities, positioning the company as a flagship showroom. The collaboration not only benefits both companies but also contributes to the broader textile industry by demonstrating the possibilities of cost-effective, sustainable manufacturing closer to customers. As the industry evolves, with the recent success at Heimtextil 2024, TMAS Secretary General Therese Premler-Andersson highlighted the emphasis on fully automated and highly integrated production lines, enabling resource savings and profitability in high-cost countries.
The yarn spinning industry anticipates a challenging year ahead as the dampened macroeconomic climate is expected to impact consumer confidence and spending. Industry leaders, including Boris Xue of Consinee Group and Alberto Conti of Monticolor, express concerns about the uncertainty and volatility in the market, citing factors such as inflation, geopolitical conflicts, and logistical challenges.
Executives highlight the impact of inflation on end products, particularly in the fashion sector, leading to a contraction in sales. The conflict in Ukraine, issues in Gaza, and high-interest rates are cited as significant roadblocks to growth. Despite challenges, companies like Botto Giuseppe and Cariaggi emphasize the importance of strategic consistency and investments in sustainable practices.
Italian yarn spinners, facing a demanding luxury market, are committed to research and development, focusing on luxury and high-end brands. Sustainability remains a priority for companies like Servizi e Seta, which is investing in a fully integrated manufacturing process and a photovoltaic system for energy self-sufficiency.
Despite a complex outlook, industry players are banking on sleek and crisp threads in subtle, colorful palettes for their spring 2025 collections. The demand for sustainable threads and a connection to nature-inspired collections are seen as opportunities in the market. Companies are experimenting with blends, including organic and recycled materials, to meet the growing demand for environmentally friendly products.
In conclusion, the yarn spinning industry is navigating a challenging landscape marked by economic uncertainties, geopolitical tensions, and changing consumer preferences. Despite the difficulties, companies are investing in sustainability and innovation to stay resilient in the market.
The US International Trade Commission (USITC) is diving deep into the apparel industries of five Asian giants – India, Bangladesh, Cambodia, Indonesia, and Pakistan – to assess their export potential in the lucrative US market. Initiated by the US trade representative, this comprehensive, fact-finding investigation aims to shed light on evolving market shares of these five countries, their changing trade patterns, and key competitive drivers.
To be published by August 30, this public report will offer a detailed breakdown of each country's apparel prowess, delving into areas like investments, vertical integration, duty-free access, labor costs, and product differentiation. It will reveal crucial shifts in the competitive landscape by comparing their current US market share with snapshots from five and ten years ago.
Beyond individual analyses, the USITC will meticulously assess the overall export competitiveness of each of these countries in the US market, taking into account critical factors like trade trends, industry structure, pricing and cost dynamics, product uniqueness, and delivery reliability. This in-depth evaluation will offer valuable insights for both policymakers and industry stakeholders.
To gather comprehensive data and perspectives, the USITC will convene a public hearing on March 7. This open forum will provide interested parties a platform to share their input and contribute to the investigation's thoroughness.
The bustling Tiruppur knitwear cluster, a global leader accounting for over 55 per cent of India's knitwear exports, has taken a monumental step towards environmental sustainability. Not only has it achieved carbon neutrality, but it aspires to become the world's first carbon-negative textile cluster, a groundbreaking feat in the industry.
The Tiruppur Exporters' Association (TEA), the cluster's backbone, has spearheaded a multi-pronged initiative to reduce the environmental footprint of its operations. This includes:
Embracing renewable energy: The cluster has invested heavily in solar power, with over 100 MW of capacity already installed and plans for further expansion. This ambitious shift towards clean energy has significantly reduced reliance on fossil fuels.
Wastewater treatment: Recognizing the textile industry's water-intensive nature, the cluster has implemented advanced wastewater treatment plants. This not only conserves water but also ensures responsible disposal of effluent, minimizing environmental pollution.
Sustainable practices: From adopting organic dyes and eco-friendly chemicals to promoting water conservation and energy efficiency measures within individual units, the cluster is pushing for holistic sustainability across the entire value chain.
The TEA's efforts haven't gone unnoticed. In a recent memorandum submitted to the Tamil Nadu government, the association has urged the state to recognize Tiruppur as a "sustainable cluster." This recognition would not only be a badge of honor but also provide crucial support for the cluster's continued green journey.
The association has requested assistance in various areas. First, the TEA seeks a revamp of the scheme in consultation with stakeholders to incentivize further adoption of sustainable practices within the cluster. Second, financial support for investments in renewable energy, wastewater treatment, and other green technologies would accelerate the cluster's transition towards carbon negativity. Third it wants establishing shared infrastructure for renewable energy generation and wastewater treatment would benefit smaller units within the cluster and ensure equitable access to sustainable solutions.
The Tiruppur knitwear cluster's ambition to become carbon-negative and its quest for sustainable recognition resonate with the growing global demand for environmentally conscious products. This initiative sets a precedent for other textile clusters and demonstrates India's commitment to responsible manufacturing.
