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To capitalise on the opportunities presented by the current political instability in Bangladesh, Indian textile companies need to first focus on skills development and address labor shortages, says KR Nagarajan, Founder and Chairman, Ramraj Cotton.
Emphasising on the current skills gap in the industry, particularly garment production, Nagarajan says, despite automation modernising areas such as spinning, weaving, and dyeing, processes like designing, cutting, sewing, and finishing continue to rely on human labor.
The garment sector lacks skilled workforce, adds Nagarajan. With many workers being migrants, most of them often lack the necessary expertise. Though some manufacturers invest in training, others do not. This disparity makes it difficult to scale up production efficiently. He therefore calls for a greater investment in skill training from both central and state governments to address this issue.
Drawing comparisons with Bangladesh and China, Nagarajan opines, India should follow a similar path by addressing labor shortages through skill development. This would also help combat unemployment in the country, he adds further.
A part of ENES Textile Mills, Ramraj Cotton recently opened a new store in Jayanagar, Bengaluru, and plans to add 15 more stores by March 2025. The company aims to expand its presence in the North, East, and West of India besides increasing its international reach. Currently exporting to Sri Lanka, Singapore, and Malaysia, Ramraj Cotton plans to enter the UAE market.
However, before embarking on an international expansion, Ramraj Cotton aims to become a pan-India brand over the next two years, adds Nagarajan. The company currently has 304 stores across India besides production units in Tiruppur, Erode, Salem and Madhurai.
Sales of fashion items made from the Suede material are rising in South Korea with consumers eagerly embracing the unique leather made from the soft underside of animal skin.
According to the fashion industry, search for suede items has rose across multiple fashion platforms with fashion-forward shoppers quickly snapping up these trending pieces.
From Sep 01-18, 2024, fashion platform W Concept reported a 700 per cent increase in sales of suede jackets and bags compared to the same period last year. Suede-related searches on the platform also increased by 488 per cent. Popular products in demand include suede jackets from brands like Unedit and le917, and suede bags from Elbategev.
Customers are gravitating toward unique colors, with shades like pink and brown seeing increased popularity, says a representative from W Concept.
Kakao Style’s ZigZag platform also experienced a similar growth with searches for suede bags spiking by 1,496 per cent and sales rising by 264 per cent compared to last year. Suede jackets followed suit, with searches up by 328 per cent and sales increasing by 64 percent.
Another major fashion platform, Ably also reported significant gains, with searches and sales of suede bags both increasing by 600 per cent between Sept 1 and 15. The platform also saw a 30 per cent rise in boot searches, with sales increasing by 350 per cent, while searches for suede jacket grew by 240 per cent and sales increased by 80 per cent. Bestsellers on Ably included Slow and End’s Rento suede boots and Highclassic’s suede crop jackets paired with tennis skirts.
One of South Korea's largest online fashion retailers, Musinsa also noted a 342 per cent Y-o-Y rise in suede-related searches. Searches for suede bag alone rose by 456 per cent.
Musinsa’s women's fashion platform, 29CM, recorded an 812 per cent increase in users searching for suede products.
This growing enthusiasm for suede aligns with the rise of the ‘demure look, a key trend for the fall/winter season characterized by understated elegance and minimal embellishments. Luxurious materials like suede are playing a central role in this trend, helping outfits stand out with their refined, tactile appeal.
As the US Bureau of Labor Statistics prepares to release its Annual Consumer Expenditure Survey next week, the data is expected to confirm what many Americans are already experiencing: financial hardship. Over 50 per cent of US households are likely to have seen their after-tax income drop not only below 2022 levels but also below 2021 and 2020 levels. This decline comes after a period of pandemic stimulus subsidies, which artificially boosted incomes in previous years.
The struggling majority
For over half of US households, 2023 will mark the first year since the pandemic without any Covid stimulus subsidies. Pre-tax incomes for those earning under $70,000 annually saw little change in recent years. However, after-tax incomes increased significantly due to stimulus checks. With subsidies gone, a sharp drop in after-tax income is anticipated, highlighting the struggle many families now face. Despite this widespread financial strain, the US economy continues to show strength. This resilience is attributed to two key groups: high-income households and Gen Z & Millennials.
Companies like Dollar General and Dollar Tree have already noted a shift in consumer behavior, with customers increasingly "cash strapped" and opting for cheaper alternatives. The upcoming BLS survey is expected to show a sharp decline in after-tax income, particularly compared to 2021 when stimulus checks were still being distributed.
The spending power of the young and affluent
Despite the financial challenges faced by many Americans, the US economy remains surprisingly strong. This resilience can be attributed to two key groups: high-income households and young adults, particularly Gen Z and millennials.
High-income households, representing about 17.5 per cent of all US households, have largely been unaffected by the economic downturn. Their spending has remained relatively constant, even as they shift their focus from discretionary items to essentials.
Meanwhile, Gen Z and millennials, aged between 24 and 38, have emerged as a major force in the consumer market. This generation benefits from a unique form of subsidy: their parents. Many still live at home, remain on their parents' cell phone plans, and enjoy other forms of financial support. This gives them significant discretionary spending power, which they are using to drive growth in categories like French-press coffee, leisure experiences, online gaming, and sports betting.
A divided economic landscape
The BLS survey is likely to reveal a deeply divided US economy. For many households, the cost of living has risen significantly while incomes have stagnated or even declined. However, a smaller, more privileged group continues to enjoy a comfortable lifestyle and drive consumer spending.
As long as these trends continue, the US economy will likely remain a tale of two consumers. The spending power of young adults and high-income households will continue to prop up the economy, even as a growing number of Americans struggle to make ends meet.
The Spring/Summer 2022 collection by Italian luxury menswear brand Boglioli is inspired by the vibrant colors of Venetian palaces as reflected in the waters of the canals, capturing radiant plays of light with shades that range from bold and vivid to soft and ethereal.
Launched under the guidance of Michele Brustia, Creative Director, and the expertise of Marco Re, this collection blends luxurious raw materials with unique and unexpected nuances, creating garments that exude both elegance and subtlety.
Focusing on key fabrics like cotton, linen, wool, the collection reimagines these in fresh combinations, such as cotton with tencel, cotton with linen, and cotton with silk, resulting in fabrics that are both innovative and luxurious. Light, pure linens and soft velvets with a snappy, crisp texture set the tone for summer, while cotton and jersey are treated with an eco-friendly ‘mineral’ dye made from natural sources like coal, avocado, and peach. This sustainable dyeing process reflects Boglioli’s commitment to environmental responsibility.
The collection redefines traditional outerwear with modern twists. The deconstructed Picasso jacket, the Hemingway jacket with safari details, and the Biker jacket crafted from garment-dyed denim all illustrate Boglioli’s signature blend of softness, craftsmanship, and innovation. Shirts are styled as deconstructed jackets, featuring hollowed-out collars and soft cuffs, made from premium garment-dyed, washed, or ultra-light jersey. Meanwhile, the knitwear collection embraces streetwear influences with cashmere cotton sweatshirts and jogging pants, while sweaters in crisp crepe cotton offer relaxed, yet refined, silhouettes.
Inspired by the past to create a future-forward collection, Boglioli introduces a new way of dressing—one that prioritises quality, responsibility, and timeless style. A testament to slow fashion, the collection reflects a conscious, thoughtful approach to style.
Valued at about $30 billion in 2023, the Saudi fashion market is expected to reach $42 billion by 2028, as per the annual report published by Saudi Fashion Commission.
Tilted, ‘The State of Fashion Sector in Saudi Arabia 2024,’ the report states, from 1.4 per cent in 2022, the fashion industry's contribution to Saudi Arabia’s GDP increased to 2.5 per cent in 2023 with contribution to jobs increasing by 320,000 jobs and the share of women in the fashion workforce was 52 per cent in the same year.
Burak Cakmak, CEO, Saudi Fashion Commission, affirms, the Commission aims to provide a data center to make the report available to the public, and highlight showcase opportunities across the value chain.
The report is a part of the Saudi Fashion Commission’s commitment to promote a vibrant and sustainable fashion ecosystem in Saudi Arabia. Through this report, the Commission aims to provide latest insights that help shape the regional fashion industry besides highlighting the value chain of the local fashion industry.
Sales figure of major global apparel retailers paints a vivid picture of the dynamic fashion industry, where top brands like Zara (Inditex), H&M, Uniqlo (Fast Retailing), and Gap have carved out their empires. Each brand has its own distinct philosophy, target audience, and growth strategy, contributing to a vibrant and competitive landscape.
Business philosophies, a study in contrasts
Zara, the fast-fashion pioneer: Zara's meteoric rise is attributed to its "fast-fashion" model. It prioritizes speed and agility, bringing designs from runway to retail in weeks. This strategy resonates with trend-conscious consumers who crave the latest styles. Zara's vertically integrated supply chain gives it unparalleled control over production, enabling rapid response to market trends.
H&M, affordable fashion for the masses: H&M champions "democratic fashion" by offering stylish clothing at accessible prices. It collaborates with high-profile designers and celebrities, creating buzz and exclusivity around its collections. H&M's sustainability initiatives, including its focus on recycled materials, attract environmentally conscious shoppers.
Uniqlo, functionality meets simplicity: Uniqlo's philosophy centers on "LifeWear," emphasizing timeless, high-quality basics that fit seamlessly into everyday life. The brand's focus on innovation and technology, exemplified by its Heattech fabric, appeals to practical and value-driven consumers.
Gap, classic American style: Gap has built its reputation on classic American casual wear. While facing challenges in recent years, it remains a household name with a strong presence in denim and casual basics. Its diverse portfolio of brands, including Old Navy and Banana Republic, caters to a wide range of consumer preferences.
Appealing to diverse tastes each of them have carved a niche. Zara caters to fashion-forward individuals who prioritize the latest trends and are willing to pay a premium for quick access to new styles. H&M is more focused on budget-conscious shoppers seeking trendy and accessible fashion, including families and young adults. Uniqlo is for more practical and value-driven consumers who appreciate quality basics and functional clothing. And Gap, is for those seeking classic American style and casual wear for everyday life.
Table: Retail presence
|
Retailer |
Number of Stores Worldwide |
Key Regions |
|
Zara (Inditex) |
7,500+ |
Europe, Asia, Americas |
|
H&M |
5,000+ |
Europe, Asia, Americas |
|
Uniqlo (Fast Retailing) |
2,400+ |
Asia, Europe, North America |
|
Gap |
3,000+ |
North America, Asia, Europe |
Table: Business performance
|
Retailer |
Revenue |
Profit |
|
Inditex (Zara) |
$32.60 |
$4.80 |
|
H&M |
$22.30 |
$1.40 |
|
Fast Retailing (Uniqlo) |
$21.30 |
$2.00 |
|
Gap Inc. |
$15.60 |
$0.30 |
Future plans and growth markets
Zara continues its aggressive global expansion, particularly in emerging markets like Asia and Latin America. It is investing heavily in e-commerce and omnichannel capabilities. H&M is focusing more on sustainable and ethical practices to appeal to conscious consumers. It is expanding its online presence and exploring new store formats. Uniqlo aims to become the world's leading apparel retailer by opening more stores in key markets and enhancing its digital capabilities. It is expanding its product offerings to include sportswear and outdoor apparel. And Gap meanwhile is undergoing a transformation plan to streamline operations and focus on core brands. It is investing in e-commerce and closing underperforming stores.
All four retailers see significant growth potential in emerging markets, especially in Asia, where rising disposable incomes and a growing middle class are boosting demand for fashion. Each brand has a unique approach to the global apparel market. Their contrasting philosophies, target audiences, and growth strategies create a dynamic and competitive environment. As these fashion giants continue to evolve and expand, their battle for supremacy will shape the future of the industry. The graph serves as a reminder of their past achievements and a glimpse into the exciting possibilities that lie ahead.
The synthetic fiber market in China is one of of stark contrasts. While polyester and nylon prices have navigated a volatile year with some resilience, spandex has plunged into a downward spiral, hitting record lows. This difference in prices reflects not only shifts in the Chinese market but also broader trends in global fiber consumption.
Changes in the domestic & export landscape
China, one of the most important player in the global textile industry, has seen a decline in spandex exports, mirroring the domestic price slump. Overcapacity, triggered by the industry's rapid expansion after the 2021 boom, has led to fierce competition and price wars. In contrast, polyester and nylon, with more moderated capacity growth, have maintained steadier prices and export volumes.
Table: Changes in China's fiber exports (year-on-year)
|
Fiber |
2023 (Jan-July) |
2024 (Jan-July) |
Change (%) |
|
Polyester |
10.5 million tons |
10.2 million tons |
-2.90% |
|
Nylon |
2.1 million tons |
2.3 million tons |
+9.5% |
|
Spandex |
0.45 million tons |
0.4 million tons |
-11.10% |
Source: China Customs
Global & Indian consumption trends
The global textile industry is witnessing a shift in fiber preferences. While demand for polyester and nylon remains relatively stable, fueled by sectors like sportswear and automotive, spandex is facing headwinds. The oversupply in China, coupled with growing environmental concerns about synthetic fibers, has dampened its appeal.
However, in India, the world's second-largest textile producer, the situation is nuanced. Polyester, being cost-effective, continues to dominate the market. However, there's a growing appetite for sustainable and performance-driven fibers like recycled polyester and nylon. Spandex, despite its price drop, faces challenges due to its limited applications and competition from natural fibers like cotton.
The trends in the Chinese fiber market have implications for India, a major consumer and producer of textiles.
First and foremost it creates opportunities for Indian manufacturers. Declining spandex prices in China could present opportunities for Indian manufacturers to procure this fiber at competitive rates. This could boost the production of spandex-based products in India, such as sportswear and athleisure wear.
The global shift towards sustainable and eco-friendly products is likely to impact fiber consumption patterns in India. Manufacturers may need to adapt and focus on producing sustainable fibers to cater to evolving consumer preferences.
The bottomline is, the slump in spandex signals a need for the industry to recalibrate. Consolidation, innovation in sustainable production, and diversification into high-value applications are key for its revival. Polyester and nylon, while currently stable, need to adapt to the evolving demands for eco-friendly alternatives. Meanwhile, Chinese market's dynamics will continue to influence the global textile landscape. Its efforts to balance supply and demand, coupled with its push towards sustainable practices, will shape the future of synthetic fibers. For India, striking a balance between affordability, sustainability, and performance will be crucial in navigating the changing fiber landscape.
As a part of the government’s plan to set up seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks across India, Prime Minister Narendra Modi launched the PM MITRA Park project in Amravati, Maharashtra. The park is being developed by the Maharashtra Industrial Development Corporation (MIDC), across 1,000 acre.
During the event, PM Modi also participated in the National 'PM Vishwakarma' Program, which marked the one-year anniversary of the PM Vishwakarma initiative. As part of the program he launched the ‘Acharya Chanakya Skill Development Center’ scheme, a Maharashtra government initiative that aims to provide skill development training to youths aged 15 to 45. To be established in renowned colleges across the state, these centers will offer free training to around 1.5 lakh youths annually, equipping them with the skills to become self-reliant and access various employment opportunities.
Additionally, PM Modi introduced the ‘Punyashlok Ahilyadevi Holkar Women Startup Scheme,’ which will provide early-stage support for women-led startups in Maharashtra. Under the scheme, financial assistance of up to Rs 25 lakh will be granted to qualifying startups.
PM Modi also visited an exhibition held alongside the National 'PM Vishwakarma' Program, where he interacted with beneficiaries of the PM Vishwakarma Yojana. He distributed credit to 18 beneficiaries across 18 trades and released certificates and loans to artisans under the scheme.
To commemorate the occasion, he unveiled a stamp celebrating one year of progress under PM Vishwakarma, symbolising the government's tangible support for artisans and their significant contributions to society.
The event was attended by Eknath Shinde, Chief Minister, Maharashtra, Devendra Fadnavis and Ajit Pawar, Deputy Chief Ministers along with Jayant Chaudhary, Union Minister.
The textile industry and apparel (T&A) industry in Vietnam needs to capitalise on its global position to maintain momentum and compete effectively in the international market, opine industry experts.
Despite witnessing growth in exports, Vietnam’s T&A industry continues to face significant challenges due to rising market demands and evolving customer expectations.
The industry witnessed a 6.2 per cent Y-o-Y rise in exports in the first eight months of FY24 bringing the total export revenue to $28.3 million during the period.
In Aug ’24 alone, Vietnam’s textile and apparel exports revenue reached $4.3 billion, as per Vu Duc Giang, Chairman, VITAS. Giang attributes this growth to the shift in global orders toward Vietnam, driven by factors such as the US-China trade war, conflicts in Europe, and instability in Bangladesh, a key apparel exporter. He notes, the current growth presents an opportunity for Vietnam's textile industry to set new export records.
Emphasising on the industry long-term strategy to diversify its product range, Giang also acknowledges the challenges faced including the rising volume of orders and the need for businesses to adapt to new purchasing strategies from global partners. He emphasises on the importance to enhance connectivity across the supply chain, from raw materials and machinery to marketing. Giang also highlights the need to adopt advanced technologies and artificial intelligence to boost productivity, improve quality, and create distinctive products.
Nguyen Van Hoang, General Director, Dong Tien JSC, points out, the shift is also happening domestically, with more partners prioritising factories that comply with environmental, social, and governance (ESG) standards. He notes, the industry is increasingly emphasising on sustainability and ethical production.
Jimmy Qiu, Vice President of Jack Technology, emphasises on Vietnam's growing significance in the global textile-garment supply chain, attributing the country’s success to its rapid adoption of smart technologies and green production practices.
Pham Van Viet, Chairman, Viet Thang Jean Co (VitaJean) and Vice President, Ho Chi Minh City Association of Garments, Textiles, Embroidery, and Knitting (Agtek), remarks, Vietnam's competitive edge no longer lies in low-cost labor. Instead, the focus has shifted toward optimising science, technology, and digital transformation. He underscores the need to establish clear policies and strategies to ensure a smooth transition to new market dynamics.
Viet also emphasises on the importance of building a domestic textile-garment supply chain through high-tech systems at every stage—from raw material production and weaving to design, sewing, and branding. However, his transformation requires substantial capital and human resources, particularly in terms of technology innovation and workforce training, he acknowledges. He urges small and medium-sized enterprises (SMEs) to support in this green transition through technology upgrades, and design capabilities.
Additionally, Viet highlights on the need to strengthen communication efforts to enhance the branding of both individual companies and the national textile industry, ensuring a strong global presence.
In a meeting attended by Jam Kamal Khan, Commerce Minister, and Awais Ahmed Khan Leghari, Power Minister, Pakistan’s Board of Investment signed an MoU with Chinese textile giant Ruyi Shandong to establish international-standard textile parks in Pakistan. The MoU signed in the presence of Shehbaz Sharif, Prime Minister and a nine-member delegation from the Ruyi Group, led by Qiu Yafu, Chairman, aims to boost Pakistan’s textile exports to $5 billion and create up to 500,000 jobs.
According to the terms of this agreement, Pakistan will develop textile parks in the provinces of Sindh and Punjab, with approximately 100 Chinese textile firms invited to invest in these parks.
These textile parks' aim to position Pakistan as a leading global hub for textile and garment manufacturing, said Yafu at the meeting. They will be powered by solar energy and fully automated, with a goal of achieving $2 billion in exports during the first phase, followed by $5 billion in the second phase. The project is expected to generate between 300,000 and 500,000 jobs.
Construction on the textile parks will begin by the end of the year, with the project estimated to complete in around three years. Additionally, Ruyi plans to establish wholesale commodity centers in Karachi and Lahore.
The meeting also led to the creation of working groups in Islamabad and Beijing to fast-track the project’s development. Prime Minister Sharif appointed a special committee, led by Ishaq Dar, Finance Minister to oversee the process. The committee includes federal ministers for commerce, investment, industries, production, and privatisation, as well as senior officials from the Special Investment Facilitation Council and the Ministry of Foreign Affairs.
Yafu emphasised on Ruyi’s longstanding relationship with Pakistan, noting that the company's involvement extends beyond investment to friendship.
