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Bain & Company’s Spring 2024 “Luxury Goods Worldwide Market Study” reveals a challenging start for the personal luxury goods market, declining by 1 per cent to 3 per centY-o-Y in the first quarter at current exchange rates. This follows a progressive slowdown in 2023, with 12 per cent growth in the first quarter, 8 per cent in the second, a 3 per cent decline in the third, and a slight 2 per cent increase in the fourth. Claudia D’Arpizio, Lead Author, states, as many brands are navigating a momentary crisis due to macroeconomic pressures and a polarised customer base, luxury brands need to rethink their value propositions to prioritize trust and connection with consumers.”
Despite the downturn, Bain projects modest growth of 0 per cent to 4 per cent in 2024, potentially reaching $388 to $403 billion (€362 to €376 billion). However, the report suggests that the luxury industry faces deeper challenges, including restrained GDP growth, geopolitical uncertainties, reduced consumer confidence, and shrinking disposable income.
Internally, Bain highlights weaknesses such as a loss of creativity, a supply-demand gap, declining trust in brands, and stagnant business models. Federica Levato, Co-author, emphasises on the need for luxury brands to rethink their value propositions to maintain and expand audience reach while delivering exceptional experiences across all price points.
While luxury brands introduce new collections, true innovation—conceiving and scaling new products and business models—is often lacking. Legacy brands like Hermès and Louis Vuitton, rooted in tradition, are slow to adapt to changes such as e-commerce. A Unity Marketing survey found that while 71 per cent of luxury executives value quality and 63 per cent craftsmanship, only 32 per cent consider innovation crucial to resilience.
A study by the Kearney Consumer Institute (KCI) recommends a customer-driven approach to innovation, emphasizing consumer needs, appropriate market speed, and delivery methods such as category diversification or new technology. KCI’s lead, Katie Thomas, suggests that luxury brands should learn from mass-market strategies, focusing on broader lifestyle approaches and ongoing experimentation in products and channels.
Thomas also stresses the importance of a structured feedback loop from frontline staff to executives and collaboration opportunities, like Loewe’s partnership with On Running. Ultimately, luxury brands must embrace innovation, prioritize consumer engagement, and adapt to navigate current market challenges successfully.
Inaugurated by Giriraj Singh, Union Minister for Textiles from June 25-27, 2024 in Dwarka, the 71st edition of the India International Garment Fair (IIGF) highlighted India’s capabilities in the global apparel industry.
Held at the Yashobhoomi Convention Centre, the event by the Apparel Export Promotion Council (AEPC) alongside major Indian garment association, the event was attended by many business owners and enterpreneurs including representatives from the Howrah-based kidswear brand Mimino.
Though the show’s organisers noted a lower than expected footfalls on the first day, the event overall received a positive response.
Featuring over 600 buyers from 50 countries, IIGF included several sessions on global trade challenges, manufacturing excellence, and sustainable fashion trends. The event also featured daily fashion shows displaying collections from various exhibitors.
Speaking at the show, Singh reaffirmed India’s dedication to strengthening the textile industry through strategic initiatives and partnerships, mentioning free trade agreements with over a dozen countries.
Overall, the fair served as a crucial platform for MSMEs in the textile sector to display their offerings and engage with international buyers, enhancing India's position in the global apparel market.
In its 2023 Comfort Report, footwear firm Crocs Inc highlights significant strides in corporate responsibility while acknowledging areas where it lags in sustainability. This third annual report underscores the company’s commitment to ‘Creating a More Comfortable World for All.’
Crocs has made progress in promoting a circular economy through its successful pilot of the ‘Old Crocs New Life’ takeback program. In 2024, this initiative, which repurposes collected shoes in any condition, was expanded to all retail locations and online customers across the continental United States.
As of August 2023, Crocs reported achieving a monthly average of 20 per cent bio-circular content in its Croslite compound, marking a milestone in material innovation. This advancement has contributed to meeting the company’s goals of a 50 per cent carbon reduction for the Classic Clog by 2030 and achieving Net Zero by 2040. The carbon footprint of the Classic Clog has reportedly been reduced by 6.1 per cent compared to 2021 levels.
However, Crocs’s timeline for reaching net zero emissions has faced criticism. Compared to initiatives like Copenhagen’s pledge for climate neutrality by 2025, the company’s 2040 target appears less ambitious. After acquiring HEYDUDE, Crocs adjusted its net-zero goal to 2030, citing challenges in reducing emissions across the expanded company.
Hong Kong Polytechnic University (PolyU) has partnered with Parisian fashion house Aelis Couture to introduce the Fall/Winter 2024/25 Couture Collection, unveiled during Paris Haute Couture Week on June 27, 2024. The collection features sustainable metal-coated textiles developed by PolyU, showcasing a blend of cutting-edge technology and luxury fashion.
Under the guidance of Kinor Jiang, PolyU's team created ultra-thin, nano-scale metal films applied to textiles without releasing pollutants. This non-aqueous process produced visually stunning yet eco-friendly materials. The standout piece is a gold and silver-coated sustainable silk organza with a metallic pearly sheen, maintaining traditional textile comfort and flexibility.
The collaboration highlights PolyU’s commitment to textile technology advancement and its practical applications in fashion. Christopher Chao, PolyU’s Vice President (Research and Innovation), emphasized the partnership as a prime example of bridging technology and artistry, bringing sustainable innovations to the forefront of couture fashion.
Sofia Crociani, founder of Aelis, lauded the collaboration, stemming from joint "sustainable lectures" by PolyU and the French Consulate in Hong Kong. She praised the innovative textiles for enabling new design explorations, marrying eco-conscious couture with technological expertise.
This partnership marks a significant moment in fashion, combining sustainability with luxury, and setting a new standard for future couture.
The fashion industry is baby steps towards a more sustainable future, but a significant shift towards circularity is still far off, reveals Kearney's latest report, the ‘2024 Circular Fashion Index’. This year's edition marks the fourth iteration of the index, which measures how effectively fashion brands extend the life cycle of their products. The report analyzes 235 global brands across various categories, assigning a Circular Fashion Index (CFX) score on a scale of 1 to 10.
Slight improvement, major room for growth
The headline finding reveals a modest improvement from 2023. The average CFX score across all brands rose by 8 per cent to 3.20 a mere 0.23 points higher than 2023. While this signifies progress, it also highlights the vast gap that remains between current practices and true circularity.
The report emphasizes that beyond the top 10 performers, none of the seven dimensions used to assess circularity – including use of recycled materials, repair services, and second-hand offerings – are being widely adopted.
Category leaders and encouraging shifts
However, there are some bright spots. The outdoor category achieved the highest overall CFX score, indicating a stronger focus on product durability and extended lifespan in this segment. Additionally, the report highlights positive movement within the affordable luxury market, which saw the most significant improvement in scores year-on-year.
Highlights from the report
Gradual improvement: The fashion industry is acknowledging the need for change. The average score increase signifies a collective shift towards circularity, albeit slow.
Top performers: The report highlights that the top 10 brands are leading the way in implementing circular practices. This suggests that significant progress is possible.
Category leaders: The Outdoor apparel category achieved the highest overall score, indicating a focus on garment durability and potentially longer life span.
Shifting gears: The report identifies the affordable luxury segment as demonstrating the most significant improvement. This suggests that a focus on circularity can be financially viable for a broader range of brands.
Regulations and redefining value
The report underscores the growing importance of circularity in fashion. Stringent regulations on sustainability are emerging in the EU and US, making circular practices not just environmentally responsible but commercially necessary. Beyond compliance, Kearney suggests that embracing circularity can unlock new value propositions for brands, fostering customer loyalty and differentiation in a competitive market.
Consumer confusion and brand action
The report doesn't shy away from addressing the challenge of consumer awareness. While many brands are taking initial steps, a significant knowledge gap persists among consumers regarding circular fashion options. Kearney emphasizes the need for brands to bridge this gap through clear communication and education around their circularity efforts.
The Kearney CFX report serves as a wake-up call for the fashion industry. While there's a start, significant work needs to be done. Investors, brands, and policymakers all have a role to play in creating a more circular fashion ecosystem. This will require not only innovation in garment design and production but also investment in infrastructure and education to shift consumer mindsets. The fashion industry has the potential to be a leader in sustainability. The 2024 CFX report highlights the path forward, but the industry must accelerate its efforts to achieve a truly circular future.
Europe's leading sustainable sourcing show, Source Fashion, is set to take place July 14th-16th at Olympia London. The event promises thought-provoking discussions on achieving sustainable practices within the fashion industry.
Each day focuses on a key theme: Day 1 explores collaboration and innovation, Day 2 dives into trends, legislation, and big-brand approaches, and Day 3 emphasizes education and certification.
Event Director Suzanne Ellingham highlighted the event's purpose, stating that Source Fashion aims to create a platform for addressing significant questions and fostering discussions about the future of fashion, sustainability, and better business practices. The agenda will bring together a diverse group of industry experts to discuss various challenges, including responsibility in fashion, legislation, certification, evolving trends, new materials and processes, transparency, and accountability.
Industry leaders will share their experiences and insights. Caryn Franklin MBE, a fashion activist, and Nick Beighton, former CEO of ASOS, will discuss the realities and challenges of implementing positive change.
Attendees can learn about tangible sustainability solutions from Jo Mourant, head of sustainability at Next Plc. A panel discussion will explore the potential of alternative materials to revolutionize sustainable fashion.
PepsiCo's design director, Hayley Shore, will share their commitment to reducing environmental impact and collaborating with sustainable designers, offering valuable lessons for both big brands and smaller businesses.
Fashion Futurist Geraldine Wharry will delve into the future of fashion infrastructure and supply chains. Sourcing expert Jack Stratten will discuss consumer trends and the role of AI in retail, providing inspiration for storytelling strategies.
The event will also address legal aspects with updates on environmental claims regulations from the Competition and Markets Authority (CMA). Additionally, attendees can learn about the Global Organic Textile Standard (GOTS) certification process.
Rounding out the program, a session on ethical sourcing essentials will equip attendees with the knowledge to navigate new regions and build a profitable sourcing strategy.
Source Fashion promises a platform for open dialogue on critical sustainability issues, fostering collaboration and progress within the fashion industry.
Fuelled by strategic investments and ambitious capacity expansion plans, GHCL Textiles plans to add 25,000 spindles with an investment of Rs. 215 crore by the second quarter of FY26, projecting a revenue increase of Rs 250 crore. This follows the successful installation of 40,000 spindles and 15 MW of renewable energy over the past two years. With revenue of Rs 1060 crores for FY24, GHCL Textiles aims to double its revenue within the next five years.
RSJalan, Non-Executive Director, GHCL Textiles, highlights the company's commitment to maintaining its status as a premium yarn manufacturer renowned for exceptional quality. The company continues to focus on catering to the specific needs of customers in the premium segment. The diverse product portfolio includes synthetic fiber, double yarn, open-end, and cotton yarn ranging from 24 to 120 counts, showcasing the company’s adaptability to dynamic market trends and reinforcing its competitive position.
Founded in 1927 as SreeMeenakshi Mills, the company began its modern journey with the acquisition of a distressed spinning unit in 2002. It has since transformed into one of India’s leading yarn manufacturers and exporters. In 2021, the GHCL Group demerged its Textile business into GHCL Textiles Limited and sold its Home Textiles Business to Indo Count. GHCL Textiles boasts state-of-the-art manufacturing infrastructure with advanced textile machinery. The company’s manufacturing capacity includes 2.25 lakh spindles, 3,320 rotors, 5,760 TFO drums, and 5 air jet spinning machines, with a total production capacity of 38,000 MTPA. Plans are underway to expand the product range and increase spinning capacity by 1.5 times.
The company is planning vertical integration of its textile manufacturing to include knitted and woven finished fabrics, which yield superior margins and integrate seamlessly with the existing business. GHCL Textiles has announced a total investment of Rs 1,045 crore, with Rs. 350 crores already invested in adding 40,000 spindles, Rs. 250 crore currently being invested to add 25,000 spindles, and another Rs. 500 crore planned for vertical integration in the coming years.
Pioneer Denim is set to make its debut at Premiere Vision this July. A vertically integrated denim fabric manufacturer from Bangladesh, Pioneer Denim boasts one of the largest spinning units in the country.
For this edition, the company plans to introduce its new Pineapple Fabric, continuing to offer Pioneer’s super-soft fabrics achieved through unique mechanical weaving techniques that use no enzymes. Looking ahead, it plans to develop new denims combining cotton with Merino wool and linen, says Christian Reca, Expert Denim Insider, Designer, and Chief -Marketing and Merchandising, Pioneer Denim
Pioneer will unveil its new Fall/Winter 2025/2026 Renaissance collection, developed using cutting-edge technologies and extensive research in collaboration with its partners.
Among the bio-based fibers and advanced recycling technologies Pioneer is launching is a unique denim made from cotton and pineapple fibers. These fibers, recycled mechanically from food crop waste, help reduce the carbon footprint by minimising water, pesticide, and insecticide use during cultivation.
The collection features a variety of exclusive denim shades and innovative fabric constructions. Notably, some fabrics have been developed in partnership with DyStar to maximize water savings and minimise the use of hydrosulfite and aniline.
The collection also includes materials such as organic and BCI cotton, T400 Ecomade, Lycra Adaptiv and Tencel.
Pioneer guarantees high-quality fabrics produced from premium cotton in its own yarn facilities. The company handles R&D, dyeing, weaving, finishing, and inspection in-house, utilising state-of-the-art machinery from the US, Germany, Italy, Switzerland, and Belgium.
According to the fourth edition of Kearney’s Circular Fashion Index (CFX), to achieve circularity, brands need to prioritisethree strategies. First, focus on materials that are biodegradable or mono-materials for easier reclamation at the product’s end of life. Second, design products with modularity in mind to simplify disassembly. Third, integrate recycled, upcycled, or downcycled materials into new designs, ensuring a clear path for second-life uses. Additionally, extending product life through repair and recovery services can foster consumer loyalty and market strength.
Operating within the traditional linear models, most fashion brands environmentally suboptimal choices from raw material selection to consumer education. Despite extensive discussion around circularity, actual redesign and implementation lag behind. Debates often focus on material choices, like cotton versus polyester, without consensus on their environmental impacts, overshadowing the need for comprehensive end-to-end assessments.
Current life cycle assessments are limited and often lead to debatable conclusions. Kearney PERLab's study found that cotton, while worse for land and water use, is better in terms of emissions compared to polyester. However, a holistic approach is needed to embed circular principles throughout a product’s life cycle, from sourcing to recycling.
Despite challenges, there are promising developments. The CFX 2024 expanded to include 235 brands across 18 countries and five categories, with refined price segmentation. The average CFX score improved to 3.20 out of 10, driven by better care instructions and increased emphasis on circularity in brand communications.
Top performers like Patagonia and Levi’s, and strong improvers like Coach, Uniqlo, and Zara, are leading the way. Coach’s Coachtopia focuses on minimising new materials and extending product life, while Uniqlo’sFurugi Project expands its pre-owned segment. Zara’s Pre-Owned platform offers repair, resale, and recycling services.
Footwear brands like Allbirds, Timberland, Brooks Running, Golden Goose, and Ugg show significant progress in circular initiatives. However, widespread adoption of circular practices is still limited. Regulatory changes in the EU and US are pushing brands to increase transparency and accountability, potentially accelerating circularity efforts.
Premier Turkish denim manufacturer, Calik Denim plans to launch it new Royal Denim collection at the upcoming Premiere Vision trade show in Paris from July 2-4, 2024. This new luxury denim capsule is designed for creating elegant yet stylish garments.
Inspired by tailored apparel, the Royal Denim collection features clean image indigo denims that resist fading better than traditional denim. The weft yarns in these fabrics ensure minimal shrinkage, ranging from zero to three percent, making them ideal for ‘cut-sew-wear’ clothing, suitable for both ready-to-wear and bespoke apparel such as distinctive suits, pants, and blazers.
The fabrics are primarily made from cotton, enhanced with up to 10 per cent of precious fibers like cashmere, silk, linen, and organic cotton, adding value and meeting the standards of smart apparel. Additionally, these fabrics include a small percentage of stretch fiber, ensuring that classic tension points like shoulders, elbows, and knees accommodate the wearer's movements for maximum comfort.
