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Woolmark+, the groundbreaking initiative being launched by The Woolmark Company will unite wool growers, the supply chain, and brands for a more sustainable future in the wool industry. This project outlines a comprehensive roadmap to accelerate low-impact wool production, promote circularity, and enhance both animal welfare and the livelihoods of wool growers.
The roadmap includes 13 practical initiatives focused on regenerating nature, reducing carbon emissions, and improving productivity. These initiatives not only support wool growers in achieving their business goals but also align with brands' increasing commitments to mitigate Scope 3 emissions and enhance supply chain sustainability.
A key component of Woolmark+ is an insetting program, designed to create a wool insetting market by connecting wool growers with global brands aiming to meet emission reduction targets through on-farm, nature-based solutions. The initiative also focuses on reducing methane emissions in sheep. Early results show a 19 per cent average reduction in methane emissions and a 27 per cent productivity increase in sheep consuming Agolin, with a 50 per cent methane reduction for those consuming Asparagopsis.
In collaboration with wool growers and industry partners, Woolmark+ aims to provide credible measures of on-farm environmental performance. Based on ecological assessments of 130 wool farms, the program has identified core metrics to verify sustainability outcomes cost-effectively. A pilot project will operationalise these metrics to further improve farm practices.
The initiative also includes a nature-positive impact program that connects investors with projects focused on reducing emissions, enhancing biodiversity, promoting climate resilience, and advancing circularity. Additionally, Woolmark has introduced Woolmark Recycled, a sub-brand within its certification program, to encourage the production of high-quality, recycled wool products and reinforce wool's status as the most recycled apparel fiber.
Woolmark+ aims to be completed by 2025, focusing on environmental stewardship, climate resilience, biodiversity, and circularity. It promotes a holistic approach that enhances both wool production and demand while positioning the wool industry as a leader in sustainable fashion.
At the 3rd Sustainable Textile Summit, organised by the PHD Chamber of Commerce and Industry, RSWM, the flagship company of the LNJ Bhilwara Group, launched its Sustainability Report, reflecting its commitment to eco-friendly practices in textile production.
A key highlight of RSWM’s sustainability initiatives is its contribution to addressing the global plastic waste crisis. By recycling around 1,830 million PET bottles annually, the company produces 51,850 metric tons of recycled polyester fiber, diverting plastic waste from landfills and creating sustainable textile products. Additionally, RSWM uses 8,818 metric tons of biofuel sourced from dry husks each year, reducing its dependence on fossil fuels and supporting circular economy principles.
RSWM has implemented Zero Liquid Discharge (ZLD) systems in its plants, enabling the complete reuse of water and saving approximately 2,336,792 kilolitres annually. The company also integrates renewable energy into its operations, generating 76.5 million kilowatt-hours of solar and wind energy annually, reducing its reliance on traditional power sources.
In its efforts to combat climate change, RSWM has adopted energy-efficient practices that reduce CO2 emissions by 800,000 metric tons annually. The company also incorporates 8,162 metric tons of recycled cotton into its production and is expanding its use of sustainable fibers such as organic cotton, linen, hemp, jute, and silk.
RSWM supports sustainable agriculture by using 72,357 kilograms of organic manure and fertilisers each year to enhance soil health, emphasises BM Sharma, Joint Managing Director.
Compared to the previous month, the global cotton market registered a modest growth in prices, as per a report by the Cotton Incorporated.
By mid-August, the US December NY/ICE futures contract, which had been trending downward since April, stabilised at 67 cents per pound. Since then, prices have fluctuated between 67 and 71 cents per pound.
The A Index remained relatively stable, averaging 80 cents per pound. In China, domestic prices ranged between 14,700 and 15,000 RMB per tons, with the Chinese Cotton Index (CC Index 3128B) holding steady at approximately 94 cents per pound.
According to Cotton Incorporated’s September 2024 Monthly Economic Letter – Cotton Market Fundamentals & Price Outlook, the renminbi (Chinese yuan) appreciated slightly against the U.S. dollar, moving from 7.17 to 7.11 RMB/USD.
In India, the spot price of Shankar-6 quality cotton rose from 86 to 90 cents per pound. Domestically, prices increased from Rs. 56,500 to Rs. 59,900 per candy, while the Indian rupee remained stable at around Rs. 84 to the U.S. dollar.
In Pakistan, the spot price of cotton increased from 76 to 81 cents per pound, indicating a rise in market value. While the Pakistani rupee held steady at approximately 279 PKR/USD, domestic prices climbed from 17,400 to 18,500 PKR per maund.
This overall trend reflects slight price increases and currency movements across major cotton-producing regions.
Despite increasing regulatory pressure, major fashion brands continue to rely heavily on synthetic fibers, shows a new report by the nonprofit Changing Markets Foundation.
Conducted in collaboration with organisations like the Clean Clothes Campaign, Fashion Revolution, No Plastic In My Sea, and the Plastic Soup Foundation, the study examines data from the responses to a survey sent to fashion brands, and information available on their websites.
The report notes, around fifty-four per cent of companies failed to respond to the survey, compared to 44 per cent in 2022 and 17 per cent in 2021, indicating a growing trend of corporate secrecy. Out of the 50 companies evaluated, only six, including Zara owner Inditex, Lululemon, Mango, and Nike, publicly shared the volume and percentage of synthetic fibers they use. However, other companies disclosed this information only through the survey.
As per the report, synthetic fibers currently make up 69 per cent of global textile production, a figure expected to rise to 73 per cent by 2030. Factors like affordability and versatility of synthetics, particularly polyester, have allowed fashion brands to flood the market with cheap clothing, driving fast fashion's cycle of consumption and waste, the report states.
Two companies, Reformation and Hugo Boss, are ‘leading the shift’ in reducing reliance on synthetic materials. Reformation has pledged to phase out virgin synthetics by 2030 and reduce overall synthetic use to less than 1 per cent by 2025. Hugo Boss aims to eliminate polyester and polyamide by 2030, but the report notes a 143 per cent increase in the company's polyester use from 2020 to 2023. It the brand aims to maintain its leadership position, it needs to set clear milestones and aim for consistent progress, the report emphasises.
With new EU regulations on the horizon, the fashion industry is at a critical juncture, the report warns. For the first time, the sector is at the risk of facing measures to address its environmental impact, it adds. Raising concerns about the industry's lack of support for such regulations, the report emphasises on the need for strong actions to reduce reliance on fossil fuels and plastic waste.
Lectra has partnered with Singapore-based Six Atomic to acquire an 18 per cent minority stake in the company through an investment of $2.5 million. As part of this collaboration, Lectraplans to support Six Atomic’s growth by gradually increasing its stake in the company.
Founded in 2020, Six Atomic revolutionises garment design through innovative technologies. The company offers solutions to automate labor-intensive, low-value tasks in product development, allowing fashion brands to harness the expertise of patternmakers and better utilise data assets. Key features of Six Atomic’s approach include creation of modular pattern libraries and rapid pattern grading, which streamline the garment ideation process and enhance collaboration within teams. This leads to a faster turnaround in finalizing collections.
An innovative company, Six Atomic blends Artificial Intelligence with a deep understanding of fashion design and development processes, says MaximilienAbadie, Chief Strategy and Product Officer, Lectra. Along with Lectra, the company aims to advance technological innovation for fashion companies, he adds.
A global leader in the fashion industry, Lectra shares Six Atomic’s vision to transform production development in the Industry 4.0 era, aver Tamie Koe and Marc Close, Co-founders, Six Atomic. The company’s vast experience and global network will help Six Atomic accelerate its solutions to the market, he adds.
A major player in the fashion, automotive, and furniture sectors, Lectra offers software, cutting equipment, and data analytics solutions. The company actively contributes to the Industry 4.0 revolution, empowering brands, manufacturers, and retailers with cutting-edge technologies.
The first half of 2024 has been a rough ride for luxury fashion. Once a seemingly invincible sector, major brands are grappling with declining sales, particularly in Asia, leading to significant drops in market value and billionaire fortunes.
Luxury's struggles by the numbers
• Market downturn: The S&P 500 Textiles Apparel & Luxury Goods Industry Index has slumped almost 30 per cent year-to-date as of July 29, 2024.
• Billionaire losses: A half-dozen luxury billionaires have seen their wealth drop by 4 per cent this year, or about $17 billion, as per Bloomberg Billionaires Index. The fortunes of luxury goods billionaires like Bernard Arnault (LVMH) and Francoise Bettencourt Meyers (L'Oreal) have been affected. This stands in stark contrast to the rest of the index, which has seen a 13 per cent increase in wealth.
• Brand impact: Companies like Burberry and Hugo Boss reported significant sales drops in Asia and the Americas, with Burberry experiencing a 23 per cent decline in both regions as per ‘Luxury Fashion Is Struggling In The First Half Of 2024—Here’s Why’.These companies reported significant sales drops, particularly in Asia, with some experiencing up to 40 per cent decline in operating profits compared to 2023.
• China's cooling market: A major contributor to the downturn is the slowdown in China, previously a major driver of luxury spending. China sales for Richemont and Swatch Group have fallen 27 per cent and 11 per cent respectively. Changing consumer landscape and rising return ratesdampened demand for luxury goods.Last month, Chinese retailers of luxury brands marked down product prices up to 50 per cent to fight the diminishing consumer appetite in China.
However, not all luxury brands are suffering equally. MiuMiu, with its focus on younger demographics and buzzy designs, saw a staggering 90 per cent year-over-year growth in the first quarter, demonstrating the importance of agility and brand relevance.
|
Statistic |
Impact |
|
Decline in luxury billionaire wealth (past year) |
$17 billion |
|
S&P 500 Textiles Apparel & Luxury Goods Industry Index (YTD) |
-30% |
|
Growth in China's GDP (2024) |
4.7% (below estimates) |
|
Luxury return rates in China (2024) |
50% |
|
Growth in MiuMiu sales (YTD) |
90% |
The industry anxiously awaits earnings reports from Kering (Gucci) and LVMH, hoping for signs of a potential turnaround.The ability to adapt to changing consumer preferences, navigate the economic slowdown in China, and foster brand loyalty will be crucial for luxury brands to regain their footing.
The luxury sector faces an uncertain future. Rejuvenating growth in China, the key driver in recent years, will be crucial. Additionally, adapting to changing consumer preferences and attracting new demographics, like those drawn to MiuMiu, might be vital for survival.
Recent reports by well-known organizations like The American Chamber of Commerce in Shanghai and the European Union Chamber of Commerce in China (EUCCC), have cast a shadow over conducting business in China. These reports, backed by statistics, case studies et al highlight the waning confidence, particularly within fashion, apparel, and textile sectors.
Waning confidence and its impact
Both the AmCham Shanghai and EUCCC surveys reveal a decline in business confidence, with fewer companies expressing optimism about the future of their operations in China. The EUCCC's 2023 Business Confidence Survey showed only 47 per cent of respondents considered China to be their top or one of their top three investment destinations, a significant drop from 60 per cent in 2019. Similarly, AmCham Shanghai's 2023 China Business Climate Survey Report indicated a decline in optimism, with 45 per cent respondents feeling less optimistic about the five-year business outlook compared to the previous year.
These statistics reflect broader concerns about China's economic slowdown, regulatory uncertainties, and geopolitical tensions. For fashion, apparel, and textile businesses, these challenges can translate into decreased demand, disrupted supply chains, and increased operational complexities.
Challenges in the fashion industry
The studies reveal several challenges are plaguing the fashion, apparel, and textile industries. A European fast-fashion retailer, once enjoying robust growth in China, has experienced a sharp downturn. "Consumer sentiment has shifted," laments a company executive. "The allure of foreign brands has diminished. Local brands, offering comparable quality at lower prices, are gaining ground."
Similarly, an American textile manufacturer, heavily reliant on Chinese suppliers, faces mounting difficulties. "Supply chain disruptions, rising labor costs, and regulatory uncertainties are making it increasingly difficult to operate profitably in China," the CEO reveals. These challenges resonate in the industry voices as well. For example, he President of the American Chamber in Shanghai warns, "The business environment in China is becoming increasingly complex and challenging. Companies need to reassess their strategies and adapt to the new realities."
The EUCCC President echoes a similar sentiment, emphasizing, "The decline in business confidence is a clear signal that European companies are facing growing difficulties in China. It is essential for the Chinese government to take steps to improve the business environment and restore confidence."
What’s more, several events highlight the challenges businesses are dealing with in China’s fashion, apparel, and textile sectors.
Xinjiang cotton controversy: The ongoing controversy surrounding allegations of forced labor in Xinjiang's cotton production has led to increased scrutiny and potential disruptions for companies sourcing cotton from the region. Major brands like H&M and Nike have faced boycotts and backlash in China, impacting their sales and reputation.
Supply chain disruptions: The pandemic exposed vulnerabilities in global supply chains, causing delays, shortages, and increased costs for many fashion, apparel, and textile businesses. These disruptions continue to impact the industry, particularly in light of ongoing lockdowns and transportation bottlenecks in China. "The business environment in China has become increasingly complex and challenging, particularly for foreign companies in the fashion, apparel, and textile sectors," says Bettina Schoen-Behanzin, Vice President of the EUCCC. Agrees Eric Zheng, President, AmCham Shanghai as he puts it, "Companies are facing a multitude of challenges, from supply chain disruptions to shifting consumer preferences, and it's essential to remain agile and adaptable in order to succeed in this market."
Shifting consumer preferences: Chinese consumers are becoming increasingly discerning, demanding high-quality, sustainable, and locally produced products. This shift in preferences poses challenges for foreign brands that may struggle to adapt their offerings to the evolving Chinese market.
The changing landscape in China carries profound implications for the fashion, apparel, and textile industries as companies must navigate a complex web of challenges. However, amidst the uncertainty, opportunities remain. Companies that can adapt to the new realities, leverage China's vast market potential, and build strong relationships with local partners can still thrive.
The reports serve as a wake-up call for both businesses and the Chinese government. Businesses must adapt to the changing landscape, while the government needs to take steps to improve the business environment and restore confidence.
The 63rd Dornbirn Global Fiber Congress (GFC), a premier event in the fiber and textile industries, concluded on September 13, 2024. Celebrated for over 60 years, the congress serves as a critical platform for innovation, networking, and knowledge exchange in the global fiber sector.
A global stage for innovation
The Dornbirn GFC, which began in 1962, has solidified its role as a Global Network Generator. This year, the congress showcased over 125 lectures across three parallel sessions, covering pressing topics such as energy innovations, industry drivers, the EU textile strategy, and efforts to tackle green washing. The emphasis was notably on fiber innovations, circular economy principles, recycling, and sustainability, reflecting the industry's ongoing transformation towards greener practices.
The 2024 edition introduced new focus areas, including energy solutions and a cross-industry session with experts from the paper and packaging sectors. This broadened scope underscores the event's commitment to fostering a comprehensive dialogue on sustainability and technological advancements. The congress attracted over 500 visitors from 31 countries and representatives from more than 260 companies, highlighting its global influence and the widespread interest in future fiber technologies.
Spotlight on emerging innovators
This year, Dornbirn GFC placed a strong emphasis on supporting emerging innovators. Twenty-five new companies showcased their innovative technologies, providing a glimpse into the future of fiber and textile advancements. An exhibition area featured 22 dynamic exhibitors, further enriching the event's offerings and facilitating interactions between innovators and industry professionals.
To extend the impact of the congress, attendees had on-demand access to approved presentations, allowing for continued engagement with the latest insights post-event. Looking ahead, the 64th Dornbirn GFC is scheduled for September 10-12, 2025. The upcoming congress will focus on advancing fiber and technology innovations, including biopolymers, natural fibers, and AI-driven solutions, continuing its role as a nexus for cross-industry collaboration.
Upcoming international events
In addition to the Dornbirn GFC, the Austrian Fibers Institute is gearing up for several significant international events. The 8th International Conference on Industrial and Hazardous Waste Management will be held in Chania, Crete, from May 27-31, 2025. This conference will address critical waste management issues and recovery processes, contributing to sustainability efforts.
The Asian GFC series will also expand the congress's reach. In November 2025, the TechTextil India event will be held in Bombay, India, in partnership with TechTextil India and Messe Frankfurt. This event will bring together global and regional players in the textile industry. Additionally, the GFC will make its presence felt in Bangkok, Thailand, in April 2026, further strengthening its influence in Asia.
The Dornbirn GFC remains an essential platform for driving the fiber industry's transformation towards sustainability, circularity, and green value chains. As it continues to facilitate critical discussions and collaborations, the congress reaffirms its pivotal role in shaping the future of fibers and textiles on a global scale.
The Indian textile and clothing industry, heavily reliant on cotton, remains a cornerstone of the nation's economy, contributing 12 per cent to industrial production, 8 per cent to exports, and generating approximately Rs 40,000 crores in GST revenue. Employing around 110 million people, the sector has been growing at a CAGR of 6 per cent, despite facing numerous challenges. This growth is attributed to the availability of domestic cotton and proactive government policies.
Ambitious growth targets
India aims to scale its textile industry from a current size of $162 billion to $350 billion by 2030. To achieve this, the industry requires a significant increase in raw material production. Presently, India produces about 5.5 billion kgs of cotton fibers and 4 billion kgs of man-made fibers (MMF). The target necessitates expanding raw material production to 20 billion kgs.
Government initiatives
The NDA Government, under the leadership of Prime Minister Narendra Modi, has recognized the urgent need to address raw material challenges to bolster global competitiveness and drive growth. Several policy initiatives have been implemented to support this goal:
Technology mission on cotton: The industry is calling for the announcement of TMC 2.0 to enhance cotton production.
Duty exemptions: Import duties on Extra Long Staple (ELS) cotton have been exempted, and FTAs with UAE, Mauritius, and Australia allow duty-free imports of 300,000 bales of ELS cotton.
Financial support: Rs 17,822 crores have been allocated to the Technology Upgradation Fund (TUF) Scheme, and a Rs. 6,006 crores special package has been announced for the garment industry.
Skill development: The National Skill Development Corporation and the PMKVY scheme are being utilized to improve skills, with a dedicated Samarth scheme for the textile industry.
GST and MSME support: The GST rate for the entire cotton textile value chain has been standardized at 5 per cent, enhancing GST revenue from Rs 3,600 crores to Rs 35,000 crores and reducing clothing costs. The MSME sector benefits from new eligibility criteria and Covid relief packages.
PLI scheme: Promotes scale operations and encourages man-made fiber (MMF) and technical textiles production.
NTTM scheme: Provides Rs1,480 crores for technical textiles, bolstering innovation and production.
Removal of Anti-Dumping duties: Duties on PTA, MEG, and other man-made fibers and filaments have been lifted to reduce costs.
Policy impact and future prospects
SK Sundararaman, re-elected Chairman of the Southern India Mills’ Association (SIMA) and newly elected Chairman of SIMA CD & RA, has appealed for further measures, including the Technology Mission on Cotton and addressing the inverted duty structure in MMF and textile processing. He commended the government for various policies that have fostered industry growth and innovation.
The introduction of "Kasturi Cotton Bharat" has created a brand for Indian cotton, while the Bharat Tex Expo, launched in 2023, showcased India's potential as a global textile hub. The next Bharat Tex event is scheduled for February 14-17, 2024, expected to attract substantial international participation.
Leadership and future direction
At the recent 65th AGM of SIMA, Sundararaman was re-elected as Chairman for 2024-25. Alongside him, Durai Palanisamy was re-elected Deputy Chairman, and S Krishnakumar as Vice-Chairman. Their leadership is expected to drive continued progress in the sector, supported by ongoing government initiatives and policy enhancements.
Sundararaman also expressed gratitude to Union Finance Minister Nirmala Sitharaman for her support, including facilitating industry interactions and addressing grievances related to policy and duty structures.
In conclusion, the Indian textile industry is set for substantial growth, driven by strategic policy interventions and a robust support system aimed at enhancing both domestic and international market presence.
The Biden administration has announced a new wave of tariffs on Chinese goods, targeting a range of products, including apparel and textiles, in an effort to protect American industries and maintain a tough stance on China ahead of the upcoming presidential election. The new tariffs, ranging from 7.5 per cent to 100 per cent, cover a wide array of products such as: clothing, solar panels, electric vehicles, steel, and syringes. The administration argues these measures are necessary to combat the threat of cheap Chinese imports undermining US manufacturing.
The new tariffs, which come into effect on September 27, aim to address long-standing concerns about China's trade practices. The Biden administration also proposed changes to the "de minimis" rule, which previously allowed Chinese goods worth less than $800 to enter the US without paying tariffs. This move targets major Chinese exporters like Shein and Temu that have become popular with American consumers.
Katherine Tai, the US Trade Representative, stated that the tariffs would target China's "harmful policies and practices" that negatively affect American workers and businesses. The administration released a 187-page report supporting the tariffs, stating they have been effective in reducing US dependence on China, with China’s share of US imports falling to 13.7 per cent in 2023 from 21.6 per cent in 2017.
Impact on apparel and textiles
The apparel and textile industry, a significant portion of US imports from China, is expected to feel the effects of these tariffs. Clothing and related goods have been included in the new tariff list, potentially driving up prices for US consumers and affecting the supply chain. Retailers and manufacturers that rely heavily on Chinese apparel imports may face increased costs, leading to price hikes for clothing in the US market. This move could force companies to seek alternative sources for textiles and apparel, a process that may take time and come with higher costs.
China's response, vows retaliation
China has expressed strong dissatisfaction with the US's new tariff measures. A spokesperson for China’s Ministry of Commerce (MOFCOM) called the tariffs a product of "unilateralism and protectionism" and urged the US to correct its "wrong doings" immediately. China has vowed to take necessary measures to protect the interests of Chinese enterprises.
The spokesperson for the Chinese Embassy in Washington labelled the tariffs as undermining the international trade order, stating that they fail to improve the US trade deficit or industrial competitiveness. China has criticized the US for wielding tariffs as a political tool, disrupting global supply chains, and ultimately pushing up prices for American consumers.
Industry concerned
The decision has sparked widespread criticism, with trade groups, port authorities, and international organizations raising concerns about the long-term economic impact. The Information Technology Industry Council, representing technology firms, warned that tariffs on chips and other electronics would further disrupt global supply chains. The American Association of Port Authorities (AAPA) argued that the tariffs would harm port efficiency, capacity, and increase consumer prices.
Experts warn the increased tariffs may ultimately harm US industries and consumers. Finding substitutes for some Chinese products, especially in sectors like textiles and apparel, could prove challenging and costly in the short term. Li Yong, Senior Research Fellow at the China Association of International Trade opines, the costs of tariffs are typically passed on to consumers, making them bear the brunt of these economic measures.
The Biden administration's new tariffs on Chinese goods may aim to address trade imbalances and protect American industries, but the move has sparked tension with China and raised concerns about its impact on global supply chains, particularly in the apparel and textile sector. The economic fallout of these tariffs remains to be seen, but both countries are preparing for potential further escalations in the ongoing trade dispute.
