FW
Valued at $15.6 billion in 2021, the global silk market is projected to grow at a CAGR of 8.2 per cent to reach $34.1 billion by 2031, as per a report by Allied Market Research.
Titled, ‘Silk Market by Type (Mulberry Silk, Tussar Silk, Eri Silk, Others), by End User (Textile, Cosmetics, and Medical): Global Opportunity Analysis and Industry Forecast, 2021-2031,’ this report offers insights into major market segments, statistics, dynamics, regional outlook, investment opportunities, and the efforts of top players in driving market growth. It also highlights current trends and future developments that are expected to fuel market expansion.
The report identifies key challenges and restraints that could hinder market growth, alongside a Porter's five forces analysis to elucidate the competitive landscape, buyer and supplier bargaining power, threats from new entrants, and the emergence of substitutes. This analysis aims to help industry players understand growth potential and identify opportunities.
Textiles represent the fastest-growing application for silk, with the material being valued for its luster, soft feel, lightweight, durability, and strength. Silk is used in various textiles, including cushions, wall hangings, draperies, upholstery, wedding gowns, blouses, scarves, and neckties. Its comfort, especially in hot weather, makes it a preferred choice in the textile industry.
The growing demand for silk protein in cosmetics, personal care, pharmaceuticals, and nutraceuticals is a primary driver of the global silk market. Silk protein, rich in oligopeptides and amino acids, is increasingly used in cosmetic products like body lotion, shampoo, creams, and serums, spurring demand in the cosmetics and medical sectors.
As per the report, the global silk market is segmented by type into mulberry silk, tussar silk, eri silk, and others, and by end user into textile and cosmetic and medical sectors. Regionally, the market is analysed across North America, Europe, Asia-Pacific, and LAMEA.
Despite challenges posed by the COVID-19 pandemic, including disruptions in the upstream and downstream silk industries, the market is witnessing the rise of new marketing channels and consumption habits, adds the report.
Anticipating a robust recovery for the segment, ICRA expects the Indian cotton spinning industry to grow by 6-8 per cent in FY25
Following two years of decline due to subdued domestic demand and falling yarn realisations, this revival will be driven by a 4-6 percent increase in volume and modest realisation gains.
The agency expects exports to stabilise in FY25. Though these will face challenges from sluggish global demand, a shift in sourcing preferences away from other countries is expected to mitigate this impact.
Domestic cotton prices, which reached an all-time high of Rs 284 per kg in the first half of FY23, have been on a downward trend over the last two years. Average prices fell by approximately 26 percent year-over-year in FY24 due to a moderation in global prices and weak end-user demand.
In the near term, prices are expected to rise slightly due to recovering demand and a projected reduction in the cotton sown area. Cotton yarn prices, which have been declining since June 2022 amid softening cotton fibre prices and reduced downstream demand, are also expected to see a marginal increase in FY25, though they will remain sensitive to demand fluctuations, according to ICRA.
ICRA also expects a slight increase in capex announcements in FY25, driven by the need to modernise machinery, demand flow from the China Plus One scheme, and improved domestic demand from downstream apparel companies.
KSrikumar, Senior Vice President and Co-Group Head, Corporate Sector Ratings at ICRA, says, the gross contribution margins for spinners, which recovered by 5 per cent in Q1 FY25 after contracting sharply by approximately 20 percent Y-o-Y in FY24 amid weak domestic demand, is likely to continue growing for the remainder of FY25.
Accordingly, the operating profit margins of companieswill expand further by 100-150 basis points, supported by scale benefits and the cost-saving measures undertaken by industry players, adds Srikumar.
Dubai Fashion Week(DFW) has announced the list of global and regional fashion brands that would lead the Spring/Summer 2025 trends at its upcoming edition from Sep 01-07, 2024 at the Dubai Design District (D3).
To be organised by D3 in association with the Arab Fashion Council, the upcoming edition of DFW will showcase over 30 brands from countries including France, India, Indonesia, Italy, Kuwait, Lebanon, Libya, Malaysia, Palestine, Russia, the UAE, and the UK. These brands will present both streetwear and haute couture collections alongside internationally acclaimed guest designers.
The event will have a citywide impact, with 40 invitation-only presentations, private dinners, and collection launches hosted by global brands and industry stakeholders.
The first three days of DFW will be dedicated to haute couture collections. The final three days will highlight ready-to-wear collections by acclaimed designers such as Alia Bastamam, April & Alex, BenangJarum, BLSSD, DimaAyad, Born in Exile, Buttonscarves, Choice, Heaven Lights, Riva, Self Made, Viva Vox, and Weinsanto. These presentations are supported by the Fédération de la Haute Couture et de la Mode, the governing body behind Paris Fashion Week.
The last day of the event will focus on private appointments and a buyers’ market. For the first time, DFW will launch the International Buyers Program allowing retailers worldwide to enrol in DFW’s tier benefits. This program aims to expand buyers’ reach and talent discovery through DFW and within Dubai’s vibrant fashion ecosystem, reinforcing the city as the region’s leading fashion capital.
Fast fashion brand Zara is collaborating with the New York-based brand Sea to launch new ready-to-wear kids’ collection along with footwear and accessories.
Featuring vintage and relaxed styles, including denim pieces with patchwork details, a bomber jacket adorned with crochet elements, and sweatpants and shorts embroidered with lace, the collection also offers pastel-toned and floral-printed pajamas, along with Mary Jane-style ballet flats.
The new collection will be available from July 18 in select stores across the United States and Europe, as well as on Zara's e-commerce platform. Additionally, it will be presented at Zara's pop-up boutique in East Hampton on July 17.
This initiative is part of Zara's ongoing strategy to strengthen its Kids line, a category that has been part of the brand since its inception and gained significant momentum in 2020. This growth followed the closure of Massimo Dutti’s children's division and the complete integration of the Kiddy’s Class business, the conglomerate's children's fashion subsidiary, simplifying its structure.
Recent projects aimed at enhancing Zara's children's offerings include the launch of the "Timelesz" line for children aged 1.5 to 6 years and a new Japanese-inspired capsule featuring "jinbei," traditional summer garments similar to kimonos.
Founded in 1974, the Galician brand is part of the Inditex group's portfolio, which also includes the brands Massimo Dutti, Berkshka, Stradivarius, Pull&Bear, Oysho, Zara Home, and Lefties. As of the end of 2023, Zara operated 1,811 stores worldwide, both company-owned and franchised.
According to its latest fiscal data, Zara, which reports its results jointly with Zara Home, experienced a 13.1 per cent increase in net sales in the first half of its 2023 fiscal year, reaching €12.362 billion.
Chaired by Marta Ortega, the Inditex group also reported a 7.1 per cent increase in sales in the first quarter of the current fiscal year, totaling €8.150 billion.
The Q1 FY25 consolidated net profit of Century Textiles and Industries declined by 47.1 per cent to Rs 27.94 crore compared to Rs 52.82 crore in Q1 FY24. Despite this, the company’s revenue from operations increased by 28.36 per cent Y-o-Y to Rs 1,139.67 crore in Q1 FY25.
Century Textiles’ Profit before tax (PBT) fell by 41.4 per cent to Rs 50.13 crore in Q1 FY25 from Rs 85.55 crore in Q1 FY24. The company’s EBITDA for the quarter decreased by15 per cent to Rs 125 crore compared to Rs 147 crore in Q1 FY24. The EBITDA margin fell to 11 per cent in Q1 FY25, compared to 16.6 per cent in Q1 FY24.
Managed by the group company, Birla Century, the 100-acre, vertically integrated manufacturing facility of Century Textiles and Industries boasts of the most sophisticated machinery and equipment to produce an array of premium textiles — from suiting and shirting to fine fabrics and household linen.
The company imparts innovative finishes such as wrinkle-free, easy-care and anti-bacterial to fabrics through world-class automated processing with eco-friendly, non-toxic dyes and chemicals. Its research and development centre is equipped with a Design Studio for continuous innovations in designs and weaves in tune with the latest international trends.
India's textiles and apparel exports rose by 4.08 per cent to $8.785 billion during Q1, FY24 spanning April-June 2024. Textile exports increased by 3.99 per cent during this quarter while apparel exports grew by 4.20 per cent.
According to the Ministry of Commerce and Trade, India’s T&A exports increased by 6.04 per cent Y-o-Y to $4.935 billion in April-June 2024 from $4.746 billion in the corresponding quarter of the previous fiscal. Exports of cotton yarn, fabrics, made-ups, and handloom products rose by 5.71 per cent to $2.916 billion while man-made yarn, fabrics, and made-ups shipments increased by 0.37 per cent to $1.165 billion.
In June 2024, India’s T&A exports amounted to $2.919 billion. Textile exports saw amarginal growth of 0.05 per cent to $1.625 billion from $1.624 billion in June 2023. Exports of cotton yarn, fabrics, made-ups, and handloom products grew by 0.92 per cent to $959.55 million and man-made yarn, fabrics, and made-ups shipments increased by 2.79 per cent to $383.16 million.
Apparel exports improved by 4.20 per cent to $3.849 billion during the April-June 2024 quarter, compared to $3.694 billion in the corresponding quarter of the previous year. In May 2024, apparel exports increased by 3.68 per cent to $1.293 billion from $1.248 billion in May 2023.
On the other hand, imports of raw cotton and waste declined by 23.42 per cent to $152.01 million in Q1 spanning April-June 2024 from $198.49 million in the same period of 2023.
However, imports of textile yarn, fabric, and made-ups increased by 7.47 per cent to $557.2 million from $518.4 million. Specifically, the inbound shipment of raw cotton and waste dropped by 26.16 per cent to $70.22 million, while imports of textile yarn, fabric, and made-ups rose by 23.83 per cent to $209.23 million in June 2024.
RakeshMehra, Chairman, Confederation of Indian Textile Industry (CITI), attributes the increase in India’s T&A exports to a greater share of the US market relative to competitors.
The US accounts for about 27 per cent of India’s total T&A exports. From Jan-May’24, India’s T&A exports to the US increased by about 2.5 per cent compared to the same period in 2023, while exports from competitors like China and Bangladesh declined by about 1.3 per cent and 11.9 per cent, respectively.
Leaders from the Indian fabric industry are urging Finance Minister NirmalaSitharaman to implement measures to protect the domestic market from the dumping of fabrics and garments.
Industry leaders believe, without such measures in the upcoming Budget 2024-25, the country will struggle to achieve the double-digit growth necessary to meet its 2030 and 2047 goals.
Ashish Gujarati, Vice President, Southern Gujarat Chamber of Commerce and Industry (SGCCI), recommends, the finance minister should impose a Minimum Import Price (MIP) on all types of fabric under various HSN codes. He emphasiseson the importance of excluding fabric and garments from free trade agreements (FTAs) with various countries, as the domestic industry is suffering from massive imports.
He also highlights the need for a special incentive scheme for the weaving and knitting industry as the fabric sector is currently squeezed between dominant yarn and fiber producers and slow demand from the garment industry.
Furthermore, Gujarati proposes deferring of the MSME payment rule for at least one year to allow a gradual shift to a shorter credit system. He says, it is necessary to ensure the availability of raw materials at international prices and quality to compete globally, he says.
GaurangBhagat, President, Gujarat-based Maskati Cloth Market Association, notes,the domestic textile industry is in crisis due to cheap imports. The spinning, weaving/knitting, and dyeing and processing industries are suffering due to availability of finished fabricsat lower prices, he adds.
Subir Mukherjee, Business Head-Denim, Bhaskar Industries, recommends, cotton imports for fabric exports should be made duty-free to offset the impact on fabric exporters. Alternatively, the government could refund import duty to exporters, he adds. According to him, current schemes like duty drawback and RoDTEP (Remission of Duties and Taxes on Exported Products) do not sufficiently compensate for import duties on cotton. He also demands an increase in the RoDTEP value cap for chapter 5211 to match that of chapter 5209, as denim exports under chapter 5211 constitute over 40 per cent of India's total denim exports.
Mukherjee further recommends, duty-free imports should be allowed only if the fabric originates from Bangladesh or India. This would prevent Chinese fabric from entering India through Bangladesh, he adds. The Indo-Bangla textile trade should be conducted in Indian rupees instead of USD to reduce transaction costs, he proposes. Additionally, significant investments in infrastructure, including roads and warehousing facilities on both sides of the India-Bangladesh border should be made to ensure faster and more reliable transit times should be made, he adds.
Rieter has signed a historic purchase contract with Shanghai Digital Intelligence World Industrial Technology Group Co., Ltd. (DIW) for over 700 Autoconer X6 winding machines. This marks the largest order ever for Rieter China and strengthens the strategic partnership between the companies aimed at advancing spinning operations.
The Autoconer X6, known for its productivity, intelligent automation, and superior splicing and winding quality, plays a crucial role in quality assurance during the ring spinning and compact-spinning processes. DIW's order will enhance its vertical integration and support its growth strategy in the cotton spinning industry, reinforcing its leadership in global markets.
This order follows an initial batch placed in March 2024 when Rieter and DIW first partnered to develop intelligent yarn manufacturing technology through digitization and automation.
Liu Yifang, Vice Chairman of DIW, emphasized that the partnership positions the company for significant growth in the cotton spinning industry by enhancing operational efficiency. Michael Hubensteiner, Country Managing Director of Rieter China, noted that Rieter's high-performance machines will help DIW meet the increasing demand for higher efficiency, thereby strengthening their cooperation and enabling them to seize growth opportunities together.
This renewed collaboration aims to create a major player in the cotton spinning industry and ensure long-term, stable cooperation between Rieter and DIW.
Adidas announced preliminary Q2 2024 results, reporting an 11 per cent increase in currency-neutral revenues compared to the previous year. In euros, revenues grew 9 per cent to €5.822 billion, up from €5.343 billion in 2023. Excluding Yeezy sales, currency-neutral revenues rose 16 per cent for the quarter.
The gross margin for Q2 was 50.8 per cent, slightly down from 50.9 per cent in 2023. The core Adidas gross margin saw strong improvement due to better sell-through rates, reduced discounting, lower sourcing costs, and a favorable category mix. However, the reduced Yeezy business negatively impacted year-over-year comparisons. Operating profit for Q2 increased to €346 million from €176 million in 2023, bolstered by a €50 million contribution from Yeezy inventory sales.
Adidas raised its full-year guidance following the strong quarterly performance and positive momentum. The company now expects high-single-digit growth in currency-neutral revenues for 2024, up from the previous mid- to high-single-digit estimate. Operating profit is projected to reach around €1 billion, an increase from the prior forecast of €700 million.
The guidance assumes that remaining Yeezy inventory will be sold at cost, contributing approximately €150 million in additional sales without further profit impact. Despite this, Adidas expects significant unfavorable currency effects to continue weighing on profitability and gross margin development throughout the year.
For decades, Indian apparel brands and retailers relied primarily on domestic sourcing. However, in recent years, there's been a significant shift towards Bangladesh. This trend, spurred by several factors, is transforming the landscape of the Indian apparel market.
Bangladesh a cost-competitive edge
The primary driver for this shift is cost competitiveness. Bangladesh offers significant advantages over domestic sourcing for Indian companies.
Labor costs: Bangladesh boasts lower labor costs compared to India. A 2023 study by the Garment Manufacturers and Exporters Association (BGMEA) of Bangladesh revealed that average wages in the Bangladeshi garment industry are nearly 20 per cent lower than their Indian counterparts.
Duty benefits: The South Asian Free Trade Agreement (SAFTA) allows duty-free import of certain apparel items from Bangladesh to India. This significantly reduces landed costs for Indian companies.
Strong manufacturing base: Bangladesh has emerged as a global leader in apparel manufacturing, boasting a skilled workforce and efficient production lines. Leading brands like H&M, Zara, and GAP source heavily from Bangladesh, a testament to its capabilities.
Reliance Retail, one of India's largest retail chains, exemplifies this trend. In 2017, they established a sourcing office in Bangladesh and have since ramped up their procurement from the country. As Mohit Batra, Country Head of Reliance's Bangladesh operations explains, they are offering huge quantities and are looking for manufacturers that can offer 20 per cent of their capacity. This highlights the significant cost savings Reliance enjoys by sourcing from Bangladesh.
Table: Bangladesh apparel exports to India productwise
|
Product category |
Percentage |
|
Knitwear (T-shirts, polos, etc.) |
60% |
|
Woven Shirts and Blouses |
20% |
|
Bottoms (Jeans, trousers) |
15% |
|
Others (Dresses, jackets) |
5% |
Product diversification in focus
While cost remains a major driver, Indian brands are also looking at Bangladesh for product diversification. Bangladesh excels in knitwear production, particularly T-shirts, polos, and sweatshirts. This aligns perfectly with India's growing demand for casual wear. Sweaters, hoodies, and other knitted garments are popular Bangladeshi exports, leveraging the country's expertise in knitwear manufacturing. Jeans and denim clothing are another major category, as Bangladesh has emerged as a global leader in denim production.
|
Year |
Bangladesh apparel exports to India |
Growth rate |
|
2017 |
129.81 |
- |
|
2018 |
279.19 |
115% |
|
2023 (estimated) |
403 |
45% (CAGR) |
The increasing sourcing from Bangladesh presents a win-win situation for both countries. India gains access to cost-competitive, high-quality garments, while Bangladesh expands its export market. As Deepak Mohindra, Founder of Apparel Sourcing Week, predicts, "Bangladesh's exports of garments to India could exceed $1 billion in two years." This trend is likely to continue as Indian brands and retailers seek to optimize their supply chains and cater to the growing demand for affordable fashion.
