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Kering, a prominent player in the luxury fashion industry, grappled with significant challenges in the first quarter of 2024, marking a stark decline in its performance. François-Henri Pinault, Chairman and CEO, acknowledged the tough start to the year, citing sluggish market conditions, especially in China, and strategic shifts within key brands, notably Gucci, as exacerbating factors impacting the company's revenue trajectory.
Consequently, Kering anticipates a substantial drop in operating profit for the first half of the year, underscoring the urgency to navigate through current headwinds and rebuild a resilient foundation for sustained growth.
In the first quarter of 2024, Kering reported a notable 11 per cent decrease in revenue, amounting to €4.5 billion. This decline, both as reported and on a comparable basis, reflects the ongoing transitions within the group's portfolio of luxury houses. Within its retail network, revenue plummeted by 11% on a comparable basis, primarily due to diminished store traffic, with Asia-Pacific experiencing a sharper decline compared to other regions.
Gucci, Kering's flagship brand, faced a substantial revenue drop of 21 per cent as reported and 18 per cent on a comparable basis, totaling €2.1 billion. Despite positive reception for its new collections, particularly in ready-to-wear and shoes categories, Gucci's retail network revenue suffered a 19 per cent decline on a comparable basis, prominently affected by the downturn in Asia-Pacific.
Yves Saint Laurent witnessed a more moderate decline, with revenue down 8 per cent as reported and 6 per cent on a comparable basis, amounting to €740 million. While the brand demonstrated resilience in certain regions like Japan and North America, tough market conditions in Asia-Pacific impacted its overall performance.
Bottega Veneta, however, showed signs of stability with a marginal 2 per cent decrease in revenue as reported and a 2 per cent increase on a comparable basis, totaling €388 million. The brand experienced growth in its retail network, particularly in North America, Western Europe, and the Middle East, offsetting a slight decline in Asia-Pacific.
The revenue from Kering's Other Houses totaled €824 million, marking a 7 per cent decline as reported and 6 per cent on a comparable basis. Notably, Balenciaga and Boucheron demonstrated resilience and growth in various regions.
Looking ahead, Kering remains committed to its long-term vision of fostering brand desirability, exclusivity, and sustainability. However, amidst ongoing economic uncertainties, the company anticipates a significant decline in recurring operating income for the first half of 2024. Despite this, Kering emphasizes prioritizing investments supporting the strategic development of its brands while implementing cost optimization measures to navigate through the current challenging landscape.
A recent nationwide survey conducted by the Council of Scientific and Industrial Research–Central Leather Research Institute (CSIR–CLRI), under the Ministry of Commerce, to establish the Indian Footwear Sizing System had led to the proposal of a new sizing standard called ‘Bha.’.
The new proposed sizing standard would have eight footwear sizes, covering all age groups from infants to adults. Initially focusing on sizes III to VIII, the system aims to accommodate the majority of the population.
CSIR-CLRI emphasised the necessity of developing an Indian Footwear Sizing System based on the foot dimensions of the Indian population. They highlighted the fundamental differences between Indian and English feet, indicating that the existing adapted English sizing system may not provide optimal comfort for Indian feet.
Conducted across 79 locations in five geographical zones from December 2021 to March 2022, the survey involved over 101,880 individuals. Utilising advanced 3D foot scanning technology, researchers gained insights into the size, dimensions, and structure of Indian feet. Surprisingly, the findings revealed that Indian feet tend to be wider compared to European or American counterparts, necessitating a tailored sizing approach.
The adoption of 'Bha' could offer significant benefits to both users and manufacturers. By standardising to eight sizes, manufacturers can streamline production processes, eliminating the complexity of half-sizes and enhancing efficiency.
CSIR–CLRI has submitted its recommendations to the Department of Promotion of Industry and Internal Trade (DPIIT) under the Union Ministry of Commerce, who then forwarded them to the Bureau of Indian Standards (BIS) for approval. This signals a potential shift in the footwear industry landscape in India.
Experiencing a rapid growth, the Indian fashion ecommerce landscape is projected to grow at a CAGR of 25 per cent, exceeding $112 billion by 2030-end. According to Inc42’s latest ‘State Of Indian Ecommerce, Q1 2024 report, over 200 fashion ecommerce startups have collectively amassed over $2.2 billion in funding between 2018 and 2023, with Delhi NCR emerging as the fashion capital, raising over $1.4 billion in 60+ deals, surpassing Mumbai and Bengaluru.
The report highlights the increasing frequency of wardrobe upgrades among Indians, particularly in Tier II cities and beyond. Women’s apparel and accessories are expected to dominate, capturing 50 per cent of the market share by 2030, presenting a $56 billion opportunity. Men’s and kids’ segments follow closely, accounting for 29 per cent and 21 per cent of the market share, respectively.
D2C fashion brands have secured 93 per cent of the total investments. LensKart leads with $1.3 billion, alongside notable names like Bewakoof, BlueStone, Melorra, and XYXX. Late-stage startups attracted 80 per cent of the total funding, indicating significant investor interest in the sector.
AI integration is reshaping the Indian ecommerce landscape, with startups employing AI for personalised recommendations and leveraging machine learning algorithms. Meesho uses AI-powered chatbots to manage inquiries, while Myntra’s 'My Stylist' provides personalised fashion recommendations, enhancing the shopping experience.
Despite facing funding challenges, the sector continues to thrive, fueled by D2C startups and innovative technologies like generative AI. This technological advancement is crucial for the industry's growth, projected to reach over $400 billion by 2030.
Fueled by a surge in fitness consciousness and a preference for comfortable, multipurpose clothing, the Indian athlesiure wear market is flourishing. Factors like remote work and accessible e-commerce have reshaped consumer choices, driving the demand for athleisure. This growth is further boosted by affordable local brands, with athleisure becoming a symbol of status.
India hosts numerous internet-first brands like HRX, Aastey, Blissclub, and Zymrat. According to industry analyses, the Indian sports apparel market was valued at $673.34 million in 2022, projected to reach $1926.10 million by 2029, growing at a CAGR of 16.2 per cent. The COVID-19 pandemic spurred a shift towards home fitness, contributing to the rise of athleisure, which blends fashion with functionality for everyday wear.
The emergence of sneaker culture and athleisure as a mainstream movement has reshaped the industry. While global giants like Nike, Puma, and Adidas dominate, there's a rising demand for affordable brands catering to Indian consumers. Indian brands like HRX focus on community engagement, fostering brand loyalty through initiatives like fitness challenges and workshops.
Direct-to-consumer brands like Blissclub tailor offerings to Indian preferences while aligning with global trends. They address diverse needs, such as offering plus-size ranges, carving unique market positions. Marketing strategies of homegrown brands emphasise online communities and engagement activities, leveraging social media to connect with consumers authentically.
An international player, Puma harnesses influencer marketing, engaging micro and nano influencers alongside celebrities. India's youthful demographic, with 50 per cent under 25 years old, drives the athleisure market. Millennials and Gen Z prioritise health and wellness, seeking trendy activewear for self-expression.
The increasing participation of women in the workforce, at 26.9 per cent in 2023, has spurred growth in women's athleisure products. Versatile options that transition from gym to work environments are in demand. Additionally, urbanisation, with over 35 per cen of the population residing in large cities, contributes to the market's dynamism. Urban dwellers lead active lifestyles and invest in fashionable athleisure, further propelling market growth.
In essence, India's athleisure market thrives on a confluence of factors, including shifting lifestyles, evolving consumer preferences, and targeted marketing strategies by both local and international brands.
Mango’s efforts to solidify its position as fashion powerhouse through strategic partnerships with esteemed brands like American Simon Miller and Italian Boglioni, has culminated in a significant collection in collaboration with Victoria Beckham, a move that aligns perfectly with Mango's vision of merging high fashion with accessible retail.
During the company’s recent annual results presentation, Toni Ruiz, CEO, Mango, unveiled a strategic plan to reinforce the brand’s value proposition centered on quality and in-house design, with ambitious targets to reach a net profit of €350 million and surpassing €4 billion in turnover by 2026.
The collaboration with Victoria Beckham marks a pivotal moment for Mango, coinciding with its 40th anniversary. Available in select stores across 26 countries and online in over 90 markets, the collection underscores Mango's commitment to expanding its presence, particularly in key markets like the UK and the US. Luis Casacuberta, Director-Product and Sustainability, Mango, emphasises the significance of this collaboration in democratising fashion.
Comprising 39 garments and 15 accessories, the collection blends Beckham's signature style with Mango's ethos of accessibility. With prices ranging from 40 to 250 euros, the capsule collection offers timeless pieces designed to resonate with a diverse audience.
Inspired by 1970s aesthetics and referencing the film 'La Piscine', the collection exudes a sense of sophistication and femininity. Beckham herself described the pieces as ‘sensual and feminine,’ catering to the modern woman seeking both style and functionality.
For Beckham, this collaboration represents more than just a business opportunity—it's about shared values and aesthetics. By leveraging their combined experience, Mango and Beckham aim to create a modern, inclusive wardrobe that resonates with their respective audiences.
Tonello, a pioneering force in garment finishing, is poised to dominate the stage once again at the upcoming Kingpins Show in Amsterdam. With a focus on innovative technologies and esteemed collaborations, Tonello promises to unveil new solutions and perspectives that shape the present and future of garment finishing.
Indigo Garment Dyeing Reinvented: Leading the charge is DyeMate, Tonello's latest patented innovation, poised to revolutionize traditional indigo garment dyeing. Notably versatile, it accommodates VAT and sulfur dyes, presenting an array of new indigo shades at Kingpins, boasting surprising hues and nuances.
Pushing Boundaries with Obleach: Tonello debuts "The Dark Side of Obleach," transcending the limits of their patented process to deliver authentic effects on black denim and fabrics, showcasing unprecedented results.
Ripper Mode: Redefining Breakages: Tonello introduces Ripper Mode, a breakthrough technology ensuring flawless breakages while preserving fabric integrity, promising a guaranteed "wow" factor.
Collaborative Showcases: Tonello shines in various projects and collaborations, notably:
• Deepindigo: A collaboration with Officina39 and Telariazul, presenting a collection that elevates indigo dyeing, craftsmanship, and artistry to new heights, resulting in garments that are true masterpieces.
• MSP Collection: Developed in partnership with Denim House and Kingpins Show, designed by Piero Turk and Serena Conti, featuring responsible finishing technologies processed in Tonello's R&D center.
• One Denim: Exploring the limitless potential of a single fabric, showcasing Kaltex fabrics designed by Piero Turk and finished by Tonello, highlighting the latest finishing technologies.
Tonello's presence at Kingpins is set to be a highlight of the event, promising an unparalleled showcase of innovation and collaboration.
Specialising in luxury menswear, Ermenegildo Zegna Group posted 8.1 per cent sales growth to €463.2 million during the Q1 FY24. These results were driven primarily by strong performances in the United States and on its direct sales channel, while like most of its competitors, the Piedmont-based group, which is listed on the New York Stock Exchange, has been heavily penalised by the slowdown in China.
The group closed Q1 FY24 with a double-digit growth at constant exchange rates. It also recorded double-digit growth in the Americas through the successful implementation of its Zegna One Brand Strategy, says Gildo Zegna, CEO.
Between Jan-Mar’24, the group’s sales in America soared by 57.7 per cent to €114.2 million. In Europe, its sales increased by 4.3 per cent. However, in terms of organic growth, the group’s sales declined by 6.5 per cent compared to the same period in 2023, reflecting a negative performance from Thom Browne.
In the Asia-Pacific region excluding China, the group’s sales rose by 28.7 per cent, thanks to the strong performance of the Japanese market and the conversion of Thom Browne and Zegna's Korean monobrand shops from a wholesale to a retail format.
In the first quarter, the group's flagship brand Zegna, led by designer Alessandrp Sartori registered a 4 per cent rise in sales to €282.9 million. The brand continues to grow, albeit at a much slower pace.
For its part, Thom Browne’s sales declined by 29.6 per cent to €79.2 million during Q1 FY24, compared to the same period a year earlier. While the brand continues to record good results in Japan, it is particularly down in Greater China and Europe, where it has decided to reduce and rationalise its multi-brand distribution network to support direct sales. In the first quarter, Thom Browne's wholesale sales almost halved, from €69.7 million in the first quarter of 2023 to €34.5 million a year later, while they rose by 4.4 per cent in its own shops.
The fashion business of the American label Tom Ford posted sales of €65 million in the first three months of the year, reflecting a good performance, mainly in the United States.
With ending of the quiet luxury trend, demand for bold designs amongst affluent consumers is expected to rise, says Rachid Mohamed Rachid, Chairman, Valentino.
Valentino is embarking a ‘new chapter’ in its entrepreneurial journey as the brand hired Alessandro Michele as its creative director last month.
The move reflects the brand’s move away from the minimalist and monochrome styles of its precedessor Pierpaolo Piccioli whose collections had created a buzz with their elegance and single-colored focus. Valentino’s recruitment of Michele surprised the fashion world as the designer helped Gucci triple sales between 2014-19. Under his direction, Gucci sales almost tripled between 2015 and 2019.
According to Rachid, conditions for luxury goods remain tough. This year, the markets are expected to grow between 2 per cent to 4 per cent. However, in reality, the markets in Europe, the US continue to remain flat.
The National Council of Textile Organizations (NCTO) President and CEO, Kim Glas, applauds the appointment of Katherine White as Chief Textiles and Apparel Negotiator for the U.S. Trade Representative’s Office (USTR). This move, reinstating the role as a political appointee, marks a significant shift under U.S. Trade Representative Ambassador Katherine Tai.
White brings a wealth of experience to the position, having served as an International Trade Policy Advisor on the House Ways and Means Committee, as well as holding roles at the U.S. Department of Commerce and the White House. Her expertise in manufacturing policy and textile-related trade issues positions her as an invaluable asset to the industry.
Glas highlights White's appointment as pivotal in shaping policies impacting the textile sector, emphasizing her role in advancing manufacturing and worker-centered trade policies. The NCTO expresses gratitude towards Ambassador Tai for the redesignation of the office and acknowledges Laurie-Ann Agama for her service during the transition.
White's appointment signals a commitment to strengthening the domestic textile sector and fostering collaboration between industry stakeholders and policymakers. The industry eagerly anticipates working with her to navigate evolving trade landscapes and support the textile workforce.
With 1,700 exhibitors from 53 countries, Techtextil and Texprocess 2024 continue to highlight the future of textile production and processing by showcasing some groundbreaking technologies and revolutionary materials.
Celebrating its 20th edition, Techtextil is being held at a bigger scale than Texprocess that assert its dominance across all product categories. The two trade fairs showcase the latest materials, machinery, and processes along with some newly formed business partnerships.
Emphasising the significance of these events, Detlef Braun, Member - Executive Board, Messe Frankfurt GmbH, states, both Techtextil and Texprocess events serve as crucial indicators and catalysts for advancements across various industries. The event opened with a titled ‘From Textile Recycling to Garment Processing – the Role of AI’ that ignited few forward-thinking dialogues. Experts including Chloé Salmon Legagneur, Prof. Dr. Ingo Rollwagen, Elgar Straub, and Olaf Schmidt explored AI's potential in revolutionising textile production and processing.
Artificial intelligence presents a myriad of opportunities for the textile industry, from enhancing traditional manufacturing processes to fostering innovative product development. Prof. Dr. Ingo Rollwagen highlighted AI's role in fostering circular and regenerative textile solutions with longer life cycles, thus aligning with sustainability goals.
Textile recycling, a pressing concern, receives a boost from AI integration, promising scalable solutions for differentiating and separating textile materials efficiently. Collaboration between research and industry, exemplified by initiatives like CETIA's innovative recycling solutions, is crucial for driving progress.
As AI permeates the industry, Techtextil and Texprocess serve as essential platforms for information exchange and collaboration. The events provide a plethora of opportunities for companies to explore innovative solutions and forge partnerships essential for navigating industry transformation. From expert forums to guided tours, participants gain insights into digitalization, AI-driven business models, and real-time energy optimization.
Moreover, exhibitors showcase AI-integrated systems that analyse trends, identify faults, and optimise production processes intelligently, signaling a transformative shift in the industry. Elgar Straub, Managing Director, VDMA Textile Fair, Fabrics and Leather Technologies, notes, AI advancements come at a critical juncture for addressing challenges such as labor shortages, sustainability demands, and resource scarcity.
Techtextil and Texprocess 2024 offer a comprehensive spectrum of technical textiles, production technologies, and disruptive innovations, reflecting the industry's innovative prowess. The events foster networking opportunities and present a diverse program of expert lectures, special shows, and thematic exhibits. The Techtextil and Texprocess Innovation Awards recognise pioneering research and technologies shaping the industry's future, further solidifying these events as paramount for the textile industry's advancement.
