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As the global fashion industry prepares to embrace greener practices, manufacturers in low-income countries are feeling the heat of the European Union's Corporate Sustainability Due Diligence Directive (CSDDD). The directive, aimed at making global supply chains more sustainable, has manufacturers worried about bearing the brunt of the cost and complexity.
The cost of going green
The financial implications of the CSDDD are significant. The fashion industry will need to invest over $1 trillion to transition to net-zero emissions. The Apparel Impact Institute (Aii) has created the Fashion Climate Fund to help suppliers with energy and water efficiency, but smaller producers might struggle to meet specific brand benchmarks.
Pressure on suppliers
These regulations, aimed at making global supply chains more sustainable, are expected to significantly impact garment factories and textile mills across Asia, which are often cited as major contributors to the industry's pollution.
Bangladesh, the world's second-largest clothing exporter, is particularly vulnerable, given its ongoing political transition and the economic challenges faced by its garment industry. Abdullah Hil Rakib, Managing Director, Team Group, a major Bangladeshi clothing supplier, stressed the need for support from both global buyers and the government to achieve a successful green transition.
For the fashion industry, this translates into a significant onus on factories in countries like Bangladesh, Pakistan, and Cambodia to address gaps in labor rights, human rights, and environmental protection. International brands will need to collaborate closely with these suppliers to meet the new requirements.
The CSDDD requires major European brands to ensure their suppliers are conducting due diligence to protect workers and communities from the adverse effects of their operations. Failure to comply could result in significant financial penalties. Industry associations and government agencies can encourage a collaborative approach between brands and suppliers. Bangladesh's garment makers' association, BGMEA, has taken the initiative by setting up the Responsible Business Hub and creating a platform for data collection and sharing.
Challenges and concerns
Financial burden: Manufacturers in developing countries often operate on thin margins and may struggle to finance the necessary investments in green technologies and practices.
Legal and regulatory complexities: The CSDDD will necessitate a raft of legal changes in producing countries, which could be a lengthy and complex process.
Capacity building: Smaller producers may lack the knowledge and resources to understand and implement the necessary changes.
Worker protection: The directive also aims to improve labor conditions, but ensuring effective implementation and enforcement remains a concern.
Meanwhile union leaders in Bangladesh are awaiting the implementation of the CSDDD to assess its impact on workers. They are demanding clear channels for addressing grievances and upskilling programs for workers. Kalpona Akter, executive director of the Bangladesh Center for Workers Solidarity, also highlights the need for support in dealing with climate impacts like flooding and heat.
Despite the challenges, the CSDDD also presents an opportunity for manufacturers to push for ethical commercial practices and more favorable contracts from international brands. Bangladesh, with its experience in improving worker safety and environmental standards, sees the directive as a way to maintain its position as a key sourcing choice.
China, once a seemingly insatiable consumer of luxury goods, is experiencing a change in its relationship with high-end brands. Interest in high-end Western labels like Burberry, Prada, and Louis Vuitton is waning, replaced by a burgeoning interest in ‘pingti’ o domestically produced ‘dupes’ that are replicas that offer comparable quality at a fraction of the price. Economic headwinds, evolving consumer values, and the rise of high-quality dupes are reshaping the luxury market in unexpected ways. This is leaving international brands scrambling to adapt while domestic players and pingti producers seize the opportunity.
The rise of pingti
While concrete figures for the pingti market remain elusive due to its nascent nature, anecdotal evidence and expert opinions point to explosive growth. Social media searches for dupes have tripled from 2022 to 2024, according to Laurel Gu, a market research analyst. This is primarily being driven by factors like the economic slowdown in China.
Table: The rise of pingti
|
Metric |
2022 |
2023 |
2024 (Projected) |
|
Social Media Searches for "Dupes" |
1x |
3x |
5x+ |
|
Youth Unemployment Rate |
16.70% |
18.80% |
20%+ |
|
Luxury Market Growth |
10% |
5% |
2-3% |
The data paints a clear picture: as economic pressures mount and youth unemployment soars, Chinese consumers, especially Gen Z, are becoming more price-sensitive and discerning. They are actively seeking value and questioning the traditional association of luxury with exorbitant price tags.
And this shift in consumer behavior has dealt a blow to international luxury brands. Burberry reported a 21 per cent year-over-year sales decline in the previous quarter, while Swatch cited a sharp drop in demand in China and Southeast Asia. Even luxury giants like LVMH have experienced a slowdown in growth.
Table: Luxury brands sales drop
|
Brand |
Sales change (year-on-year) |
|
Burberry |
-21% |
|
Richemont |
-10% |
|
Hugo Boss |
-8% |
|
LVMH |
+5% |
These figures highlight the challenges faced by international brands. Many have resorted to offering discounts and promotions, but even these efforts are proving insufficient to stem the tide. A recent Fortune report revealed that several brands are grappling with high return rates and purchase cancellations.
While international brands struggle, domestic players and pingti producers are capitalizing on the changing landscape. Domestic brands like Chando in skincare are offering comparable products at lower prices, resonating with value-conscious consumers. Pingti producers, meanwhile, are attracting buyers with near-perfect replicas of luxury goods, often using the same suppliers and materials as the original brands.
Emerging trends
Economic slowdown: China's economic downturn is a major factor. Rising unemployment, particularly among young people, and wage stagnation are forcing consumers to reconsider luxury spending.
Luxury shaming: A reluctance to flaunt expensive items in a time of economic uncertainty is contributing to a decline in conspicuous consumption.
Shifting values: Consumers are prioritizing value and functionality over brand names and status symbols. This is due to increased awareness of quality dupes or pingti that offer comparable quality at a fraction of the price.
Rise of domestic brands: Chinese consumers are increasingly supporting homegrown brands that offer high quality and competitive pricing.
E-commerce and social media: Online platforms are facilitating the discovery and purchase of pingti brands, further driving their popularity.
Therefore, the future of the luxury market in China hinges on several factors. Will the economic slowdown persist, further boosting the pingti trend? Will international brands successfully adapt their strategies to cater to the evolving Chinese consumer? Will domestic brands continue to gain market share?
The answers to these questions remain uncertain. However, one thing is clear: the luxury market in China is undergoing a profound transformation. Brands that can understand and respond to the new consumer values of quality, value, and authenticity will be best positioned to succeed in this evolving market.
The fashion division of the global trade show organiser, GL Events plans to organise the first Canadian edition of the textile supply chain event, Première Vision from Apr 22-23, 2025. To be held at the Grand Quai in Montreal, this new event will connect local manufacturers with global fashion brands, with approximately 100 exhibitors, mainly from Canada, expected to attend it.
The show’s launch in Canada marks an expansion of Première Vision's presence in North America, complementing its established events in New York, which take place in January and July. Première Vision Montreal will specifically cater to the needs of Canadian fashion brands, with a focus on products that meet the country’s climate demands, such as knitwear and outerwear.
According to Florence Rousson, Head-Première Vision, the Canadian edition will not only supplement the New York shows but also offer a unique value proposition tailored to the local market.
Through its diverse portfolio of events, GL Events plans to unite the global fashion ecosystem under one roof. According to Rousson, the organiser aims to foster connections between different segments of the fashion industry, from production to retail, without diluting the individual identities of the events. The company envisions creating synergies between shows in different regions, such as combining Denim Première Vision with Tranoï in Tokyo.
The February and September editions of Première Vision Paris will focus on distinct themes with the company strengthening partnerships with fashion schools to enhance its role in training and skill development within the industry.
Launched in 2018, the Première Vision B2B marketplace will be discontinued. Instead, data collected from the platform will be integrated into three key tools: the mobile app for matchmaking and networking, the website for company information, and Première Vision magazine. These resources will continue to support business connections before, during, and after the physical shows.
In the coming months, Première Vision will hold the Denim industry show in Milan on Dec 04-05, 2024 followed by Blossom Première Vision in Paris on Dec 11-12, 2024. Première Vision New York will be held on Jan 14-15, 2025, and Première Vision Paris is scheduled for Feb 11-13, 2025. Prior to these events, GL Events will organise the Tranoï designer show in Paris from Sep 26-29, 2024.
The 63rd edition of Filo is scheduled to be held from Feb 26-27, 2025 at the FieraMilanoCity Viale Scarampo in Milan.
The 62nd edition of the international yarn and fiber exhibition was held successfully from Sep 18-19, 2024 in Milan. Generating positive responses from both exhibitors and buyers, the event showcased high-value collections that highlighted the innovative capabilities and sustainability efforts of both Italian and international textile manufacturers. The continuous flow of buyers throughout the two-day fair reflected the strong interest in these cutting-edge products.
One of the striking features of the 62nd edition was a significant increase in foreign visitors, a testament to Filo’s global reach and appeal. This achievement was partly due to the ongoing partnerships with ICE-Agency and Regione Piemonte-Ceipimonte, which played a crucial role in drawing international buyers to the event.
Paolo Monfermoso, Head, Filo, notes, despite a challenging period marked by a slowdown in international markets, the 62nd edition of Filo reaffirmed its status as a key reference point for the industry. The event one again validated the belief any crisis can be overcome through hard work, innovation and production enhancement.
In anticipation of the World Cotton Day on Oct 7, UK-based sustainable cotton organisation, CottonConnect and the Cotton Egypt Association (CEA) have teamed up to raise awareness about and expand the scope of regenerative cotton practices in Egypt.
The two organisations have signed an MoU to advance regenerative cotton farming by supporting CottonConnect’s REEL Regenerative Program. The initiative aims to build more resilient cotton supply chains and improve the livelihoods of farmers in the face of climate change.
As a non-profit dedicated to protecting and promoting the Egypt’s Cotton identity, CEA will assist CottonConnect in scaling the REEL Cotton Program which has already demonstrated a tangible impact in Egypt. Participating farmers have reported a 15 per cent -30 per cent reduction in water and chemical usage, a 15 per cent increase in yield, and a 30 per cent boost in profits.
This collaboration is seen as a critical response to the country’s ongoing challenges with climate change, given that Egypt is projected to be classified as ‘water scarce’ by 2025 by the United Nations, By adopting regenerative farming techniques, CottonConnect and CEA aim to help farmers adapt to and mitigate the worst effects of these environmental pressures.
This partnership also aligns with the theme of World Cotton Day: ‘Cotton for Good’. Both organisations are committed to advancing sustainable cotton farming practices that support environmental resilience while enhancing the livelihoods of cotton farmers across Egypt.
During the International Cotton Advisory Committee Plenary Meeting, the Private Sector Advisory Council (PSAC) hosted its Fifth Open Session, titled ‘Traceability and Sustainability Requirements in Natural vs Man-made Fibers.’
Peter Wakefield, Chair of PSAC and Wakefield Inspection, introduced four speakers to discuss key topics related to cotton’s sustainability and traceability. Anees Khawaja from MG Apparel emphasized the need to focus on cotton’s biodegradability and role in providing jobs, contrasting it with synthetic fibers, which lack these benefits.
Marc Lewkowitz of Supima, representing the Producers and Ginners Committee, proposed three recommendations for cotton traceability: defining a common traceability standard, developing a streamlined bale ID system, and supporting a gradual transition to global traceability implementation.
Eimear McDonagh from Agri Direct Australia highlighted that cotton faces stricter standards than other fibers and stressed the importance of working with governments and brands for future success.
Debra Guo of Textile Exchange discussed ‘preferred materials,’ advocating for fibers that reduce environmental impacts and promote sustainability through improved production systems.
The session underscored the growing importance of sustainability and traceability in the global cotton industry.
Adjusting its full-year revenue expectations to the lower end of its previous forecast, Levi Strauss & Co has raised concerns about stagnating demand for its apparel. The company has lowered its expectations for net revenue growth for the current fiscal to 1 per cent as against the earlier estimate of 1 per cent to 3 per cent.
In Q3 FY25 that ended on Aug 25, the company’s sales fell slightly below analysts’ expectations. Notably, revenues for the Americas division of Levi’s experienced a decline. The
Levi’s has been focusing on increasing sales through its own channels, including its stores, website, and app, as shoppers shift away from department stores, which have traditionally been key for large apparel brands. While Levi's direct-to-consumer efforts showed progress with 10 per cent growth, its wholesale business declined by 6 per cent compared to the same quarter last year.
The company is also reviewing strategic options for its Dockers brand, which could include a potential sale. Sales of the brand fell by 15 per cent during the latest quarter, generating $73.7 million in revenue. Levi’s has hired Bank of America as a financial adviser for this process.
Despite these challenges, the company’s namesake brand is gaining momentum, emphasised Michelle Gass, CEO emphasised highlighting the strength of its direct-to-consumer segment.
Textile millers have expressed deep concerns over the ongoing challenges facing Pakistan’s textile industry, which is underperforming in export markets by a significant $9 billion below its potential.
A high-level delegation from the All Pakistan Textile Mills Association (APTMA), including Kamran Arshad, Chairman; Asad Shafi, Chairman-North and Naveed Ahmed, Chairman-South recently met Ali Pervaiz Malik, Minister of State for Finance and Revenue, and senior officials from the Federal Board of Revenue to address the industry's pressing issues.
The delegation acknowledged the positive impact of Pakistan’s successful negotiations with the International Monetary Fund (IMF) for a $7 billion loan program, crucial for stabilising the country’s economy. However, while they commended the government’s efforts to reduce cross-subsidies in industrial power tariffs, they stressed that more needs to be done to make electricity prices competitive within the region.
Currently, the industrial electricity tariff in Pakistan is around 15 cents per kWh, significantly higher than the 6-9 cents per kWh in neighboring countries like India, Bangladesh, and Vietnam. The millers also raised alarm over the government’s agreement with the IMF to halt gas supply to captive power plants (CPPs) of industrial units by Dec 2024. APTMA warned, industries relying on gas-fired power are unlikely to transition to the national grid due to the high cost of electricity. If gas supplies are cut off, many industries may seek alternative energy sources or be forced to shut down operations.
Another key issue discussed was the withdrawal of the zero-rating facility, or sales tax exemption, on local supplies required for manufacturing export goods under the Export Facilitation Scheme. The removal of this exemption has caused exporters to switch from domestically produced inputs to imported raw materials, as the 18 per cent sales tax on local supplies—though refundable—takes months to process, straining liquidity and driving up production costs.
This policy change has severely impacted the spinning sector, noted APTMA. By June 2024, yarn production had dropped by 41 per cent, while cotton yarn imports increased by 435 per cent Y-o-Y in August 2024. Over 40 per cent of spinning units have been forced to close, resulting in widespread unemployment and loss of livelihoods.
The association also raised concerns over the misuse of the Export Facilitation Scheme, where yarn imported under the scheme for exportable goods is being illegally sold in the domestic market. This practice is harming the local textile industry and undermining its competitiveness.
The delegation urged the government to reconsider its policies, particularly regarding energy pricing, tax exemptions, and the misuse of import schemes, to help revive the textile sector and restore its potential in export markets.
Cinte Techtextil China 2024, held from September 19–21, marked a significant milestone for the technical textiles and nonwovens industries, showcasing how these sectors are adapting to global demand. The event hosted nearly 400 exhibitors from 13 countries, attracting close to 17,000 visits from 77 regions. The trade fair featured an extensive display of innovations and sustainable products, underscoring the pivotal role technical textiles are playing across industries like medical, automotive, construction, and industrial sectors.
Expanding opportunities in technical textiles
Demand for technical textiles and nonwovens has surged due to various factors, including population growth, industrialization, and heightened public concern for healthcare. Technical textiles used in medical treatments, protective gear, and construction materials saw increased attention at the fair. The rise of e-mobility, particularly electric vehicles, has further driven demand for automotive textiles.
Exhibitors at the event showcased cutting-edge technologies and sustainable innovations, with a strong focus on nonwovens, weaving machines, and composite lines. Among the key international players, Autefa, JH Ziegler, Lindauer Dornier, Perlon, and Reifenhauser, all represented Germany’s advancements in the field. Meanwhile, industry giants like Andritz Nonwoven, Dilo Group, and Groz-Beckert highlighted their latest innovations.
Renewed market potential in China
The return of the German Pavilion and the European Zone was a major highlight, as these exhibitors capitalized on China’s recovering domestic market. Messe Frankfurt (HK) General Manager, Wilmet Shea, emphasized how the show continues to position itself as Asia’s leading technical textiles event, drawing in international visitors and offering diverse solutions across various application areas.
Shea noted that there was strong demand in sectors such as medical, protective, automotive, industrial, and construction textiles. She added that the fringe events enhanced the fair's appeal by focusing on innovation and sustainability.
Several international exhibitors participated in Cinte Techtextil China for the first time. Notable names included AiDLab from Hong Kong, FPC Industrial from Saudi Arabia, and Nihon Glass Fiber from Japan, who expressed optimism about the fair’s role in fostering business growth.
High impact exhibitor experiences
Exhibitors praised the fair for its effectiveness in connecting them with both domestic and international buyers. Kabilen Sornum, Vice President of Marketing & E-Commerce at Groz-Beckert East Asia, highlighted the event as a key platform for accessing China's vast market, noting the strong turnout from a wide range of countries.
Chinese exhibitors also made a strong impact, with six regional pavilions, including Foshan Jiujiang and Zhejiang Tiantai, debuting at the event. Zhao Chixian, Deputy General Manager of IBENA Shanghai Technical Textile, praised the fair’s high visitor turnout, which included industry leaders and VIP buyers.
Diverse global presence and buyer engagement
The increase in visiting countries and regions by 25, compared to the previous edition, underscored the growing international interest in technical textiles. Top countries represented included Korea, Taiwan, India, and Germany. VIP buyers from 15 countries were invited, representing diverse sectors, with key delegations coming from Mexico, Australia, and India.
Visitors were impressed by the variety of products and innovations showcased at the fair. Claudia Moreno, Sourcing Manager at Group Dragon in Mexico, emphasized the event's role as a gateway to the Chinese and Asian markets and appreciated the focus on sustainable products. She mentioned making valuable contacts for potential future collaborations.
Similarly, Zhang Guoping, Production Department Head at Shikishima Industrial Fabrics, China, noted the fair’s effectiveness in connecting them with potential partners, stating they were already planning detailed post-fair discussions for future collaborations.
Spotlight on sustainability and innovation
Fringe events at Cinte Techtextil China further solidified its status as a leading platform for innovation and sustainability. Panels, guided tours, and seminars focused on how sustainability can be integrated into various sectors, from automotive to construction. A standout event was AiDLab’s presentation on automating textile inspection using AI, which garnered significant interest from attendees.
Karl Borgschulze, Managing Director of Consulting Service International, emphasized the importance of innovation as a driver for sustainability, noting that fairs like Cinte Techtextil China provide critical solutions for complex industry challenges.
Cinte Techtextil China 2024 successfully demonstrated the global demand for technical textiles and nonwovens, bridging international markets and fostering collaboration. The next edition is set for September 2025, promising even more innovations and opportunities as the industry continues to grow and adapt to new challenges.
In his inaugural address, Kamran Arshad, Chairman, All Pakistan Textile Mills Association (APTMA), reiterated the association’s commitment to revitalise the textile sector in Pakistan.
Arshad recently assumed office for a two-year term (2024-26) alongside Muhammad Jameel Qasim, Senior Vice Chairman and Siddique Javed Bhatti, Vice Chairman. On the other hand, Shahzad Ahmed Sheikh was appointed as the Vice Chairman of the value-added sector.
Additionally, Fawad Anwar of Al-Karam Textile Mills has been appointed Chairman of the Pakistan Textile Council (PTC) while Musadaq Zulqarnain has been elected as the Vice-Chairman.
