British luxury fashion house Burberry expects operating profit for FY24 upto March to be in the range of £410 million to £460 million as against an earlier forecast of £552 million to £668 million. The brand is being hurt by a slump in luxury demand triggered by the deflation of a boom in high-end spending that peaked during the pandemic.

Sales of the fashion house to the end of December declined by 7 per cent to £706 million, compared with £756 million for the same period in 2022.

The end-of-year slowdown has hit Burberry’s US retail sales hard, with store sales declining by15 per cent in its third quarter compared with the same period the previous year, with store sales in Europe, the Middle East, India and Africa falling 5 per cent.

Along with Burberry, other industry players including Richemont and LVMH have also being hit by a slowdown in luxury spending. 

Amidst a sluggish global economic landscape, South Asia has emerged as the fastest-growing region among emerging markets and developing economies. Fueled by India's powerhouse performance, with growth projected at 6.3 per cent in 2023-24 and 6.4 per cent in 2024-25, the region offers a beacon of hope, indicates World Bank's latest Global Economic Prospects report.

Indeed, India, driven by robust investments and vibrant services, remains the undisputed regional champion. However, a closer look reveals a diverse picture across South Asia, with both promising opportunities and lurking challenges.

Bangladesh: While growth dipped to 5.6 per cent in 2023 due to import restrictions and rising costs, a moderate rebound is projected for 2024. However, inflation and currency concerns, as highlighted by the World Bank, remain pressing issues.

Pakistan: After a drop in 2023 due to high inflation and currency depreciation, Pakistan's outlook remains subdued. Growth in 2024 is expected to hover around 4 per cent, with tight fiscal and monetary policies dampening expansion.

Sri Lanka: Mired in debt restructuring negotiations, the island nation's economic future hangs in the balance. Finding a sustainable solution will be crucial for Sri Lanka's recovery.

Maldives and Bhutan: These two nations offer bright spots. Tourism investments are expected to boost growth in the Maldives by 4.5 per cent in 2024, while Bhutan's commissioning of a new hydro plant promises 7.2 per cent growth in 2024.

Risks and Opportunities 

However, despite positive growth indicators, South Asia's road ahead isn't without its bumps. The World Bank warns of global headwinds like rising energy and food prices, tighter financial conditions, and geopolitical tensions, all posing significant risks. Domestic uncertainties surrounding elections in some countries add to the mix.

Amidst these challenges lie immense opportunities. South Asia's youthful population, rising consumption, and focus on infrastructure development offer a springboard for sustained growth. Implementing growth-friendly policies that attract investments, particularly in climate-friendly initiatives, will be crucial.

A Call to Action

Economic expansion is just one part of the bigger puzzle. South Asia faces the daunting task of tackling broader challenges like debt burdens, food insecurity, and climate change. Indermit Gill, World Bank's Chief Economist, warns without swift action, the 2020s could be a "decade of wasted opportunity." Boosting investment in climate-friendly initiatives and tackling these broader issues is essential for South Asia's long-term success and its contribution to global progress.

Policymakers and stakeholders across the region must seize this moment. By embracing the opportunities, navigating challenges and investing in a sustainable future, South Asia can not only secure its own economic future but also become a model for responsible and inclusive development on the global stage. The time for action is now.

Bharat Tex 2024, India's flagship global textile event, is set to take place in New Delhi from February 26-29, 2024, at Bharat Mandapam and Yashobhoomi. With the esteemed patronage of the Ministry of Textiles, Government of India, and organized by a Consortium of Textile Export Promotion Councils, this event aims to reshape industry standards through strategic alliances.

Strategic Collaborations for Growth and Innovation

Underlining its commitment to growth, innovation, and sustainability, Bharat Tex 2024 proudly announces collaborations with leading national and international textile associations, corporate entities, and Indian states. These partnerships signify a significant leap forward for the textile industry.

State Partnerships and Corporate Alliances

Bharat Tex 2024 proudly designates Uttar Pradesh as the 'Partner State' and Madhya Pradesh as the 'Supporting Partner State.' Corporate alliances include Aditya Birla Group, Reliance Industries Limited, Arvind Ltd, Indorama Ventures, Trident Group, Welspun Living, PDS Limited, Shahi, Chargeurs PCC, and WGSN.

Global Recognition and Commitment to Innovation

These collaborations, with recognized entities in the textile industry globally, reinforce Bharat Tex 2024's commitment to showcasing innovation, India's textile legacy, and sustainable practices on a global stage.

Bharat Tex 2024 and Prime Minister Modi's 5F Vision

Aligned with Hon'ble Prime Minister Narendra Modi's 5F vision, Bharat Tex 2024 embodies the 'Farm to Fibre to Factory to Fashion to Foreign' concept. Envisaged as the largest global textile event, it anticipates participation from 40+ countries, featuring 3000+ exhibitors and attracting 40,000+ visitors.

Comprehensive Showcase of Textile Industry Value Chain

Bharat Tex 2024 is positioned as a comprehensive showcase, spanning India's cultural heritage, textile traditions, and the latest technological innovations across the textile industry value chain.

Domestic and International Collaborations

Domestic collaborations include renowned associations such as CITI, SIMA, TEA, ATMA, CMAI, BSLA, SGCCI, GMEA, SPAI, PTAIA, DMA, IIGF, and HCC. International associations like BGMEA and ITMF also contribute to the event's global stature.

Corporate Voices on the Partnerships

Representatives from Aditya Birla Group and Reliance Industries express gratitude and enthusiasm for their roles as key partners, aligning with Prime Minister Modi's vision.

Leadership Perspectives on Collaborations

Leadership figures within Bharat Tex 2024 express gratitude for the invaluable collaborations, acknowledging the transformative potential these partnerships hold for the textile industry.

Bharat Tex 2024: Catalyst for Global Textile Advancements

This event stands as a testament to India's commitment to leading the textile revolution globally. Partnerships underscore its significance as a beacon for international collaborations, pushing boundaries, and propelling the textile industry toward growth and sustainability.

Propelling the Textile Sector Towards Transformation

Bharat Tex 2024 aims to catalyze advancements transcending geographical boundaries, positioning India as a textile industry powerhouse. Focusing on knowledge exchange, technological innovations, and sustainable practices, this collaborative effort aims to redefine the textile industry landscape for mutual growth and development.

Designer Pharrell Williams unveiled his third men’s collection for Louis Vuitton at the ongoing Paris Fashion Week. To run until January 21, the Paris Fashion Week is showcasing 74 brands, of which 41 brands will be introduced on the catwalks.

The show is being attended by all big luxury brands from Dior Homme to Hermes, Loewe, Dries Van Noten, Paul Smith, Rick Owens and Givenchy, alongside leading Japanese designers and creative brands such as Wales Bonner, Botter and Lemaire. 

Besides Pharrell William’s, the Paris Fashion Week will also host events like the Louis Gabriel Nochi show which will present the designers’ new collection inspired by Guy de Maupassant’s Bel Ami.  

This year, the Paris Fashion Week will start with Japanese brand Auralee followed by American brand Winnie and China's Ziggy Chen, who will close the week on Sunday, January 21.

On the presentation program, Paris Men's Week welcomes three new brands: Kartik Research, founded in 2021 by Indian designer Kartik Kumra; Meta Campania Collective, the discreet luxury brand born in Paris under the impetus of Jon Strassburg, Heiko Keinath and Constanze Walcher; and another French label, Ouest Paris, helmed by Arthur Robert, which will be joining the Sphère showroom, from January 17 to 21, alongside Jeanne Friot, Steven Passaro, Lagos Space Program Rolf Ekroth and Valette Studio.

Online fast-fashion retailer Shein has expanded its Shein X Challenge to include participants from around the globe. 

Launched under the Shein X Designer Incubator Program, The Shein X Challenge, celebrated its third anniversary this year. It was originally limited to submissions from EU member states and the United Kingdom in its 2023. However, from its 2024 edition, the competition has expanded and will now accept entries from across the world. The theme for Shein X Challenge 2024 is 'Radiance', and the deadline for submissions is February 15, local time.

Judges for the competition include seasoned professionals from across the fashion industry including Adrien Robers, International Fashion Education Consultant, Italy; Julien Fournie, Founder, Julien Fournie Haute Couture, Paris; Jill Wanless, Editor, United Kingdom and Colin Horgan, Independent Designer, Ireland. 

The 10 finalists will undergo a masterclass by the judges and workshops on sustainable fashion. They will present their submissions at the final round of the competition with winners set to be in March 2024.

The winner of the online competition will receive €10,000. The judges, on the other hand, will select three submissions for special awards, each winning €5,000. An additional six finalists will receive €3,000 each. The grand finale of the show will be, streamed globally.

In September 2023, Shein announced an additional investment of $50 million towards the Shein X Designer Incubator Program. This will help the e-commerce operator empower up to 5,000 emerging designers over the next five years to build their own successful brands. 

Having onboarded over 4,600 designers and artists globally, the program has launched more than 41,000 original creations.

Spurred by the growing integration of electronic devices into clothing, the global e-textiles and smart clothing market is project to grow at a robust CAGR of 32.3 per cent from 2024-2030 to reach $2.7 billion by 2030.

According to a report by Ameco Research, growth in the global smart clothing market will be led by upper wear including smart jackets and shirts, due to the speedy real-time data collection and processing capabilities of these garments. 

Growth in the e-textiles market will be led by active smart textiles that can adapted to environmental changes. The military and defense sector will drive the growth of this market as it continues to invest in cutting-edge uniforms. The leading region for this market will be Asia-Pacific region though North America will also dominate in this sector. 

The market is being driven by various innovative textiles that use body movements to generate electricity and integrated sensors and circuits that make smart textiles more useful and adaptable for daily usage.

European industry leaders, represented by EURATEX and 22 industry associations, have urgently appealed to the EU Presidents in a joint letter to expedite the finalization of trade negotiations with Mercosur. The letter, addressed to Presidents Metsola, Michel, and von der Leyen, emphasizes the time-sensitive nature of reaching an agreement. The associations, spanning diverse sectors from manufacturing to food-related industries, stress the potential economic benefits of the EU-Mercosur deal.

The proposed agreement is deemed crucial for enhancing economic integration, diversifying value chains, and bolstering the competitiveness of European export-oriented sectors, which contribute significantly to job creation and the well-being of citizens. Positioned as an opportunity for the EU to establish a first-mover advantage with one of the world's largest economies, the deal aims to dismantle trade barriers and open up Mercosur's market with over 270 million consumers.

Given the EU's reliance on external sources for key raw materials and the anticipated global growth outside the EU in the coming decade, the agreement is framed as an economic, social, and geopolitical imperative. The industry leaders emphasize the agreement's role in maintaining a robust industrial structure, safeguarding jobs, and supporting the EU's green and digital transition.

Acknowledging environmental concerns, the letter underscores the EU-Mercosur agreement as a mechanism to collaborate on maintaining the Mercosur region's sustainable development commitments, including the prevention of illegal deforestation. The industry leaders call on European leaders to swiftly conclude and ratify the agreement, emphasizing its significance in the face of economic challenges and the need for strategic partnerships.

Vickers Oils, a member of the British Textile Machinery Association (BTMA), has achieved a significant milestone in its collaboration with Lonati, a leader in knitting machinery. The company has earned Original Equipment Manufacturer (OEM) approval for its VICKERLUBE SOCK 46 needle oil, a mineral-based lubricant designed for modern knitting machines. Lonati, renowned for designing and manufacturing 8,000 knitting machines annually, officially recommends VICKERLUBE SOCK 46 for use in its single-cylinder GOAL series.

This achievement follows rigorous testing and trials, highlighting the lubricant's ability to reduce wear and deposit formation, ensuring trouble-free running and extended needle life. VICKERLUBE SOCK 46's compatibility with all machine components, including those producing challenging elastanes, underscores its significance in achieving high-quality end products.

Vickers Oils, based in Leeds, shares Lonati's commitment to research and development, technological leadership, and quality control. The lubricant's adherence to sustainability standards, including Global Organic Textile Standard (GOTS) and ZDHC MRSL Level 1 certification, aligns with the industry's emphasis on eco-friendly practices.

BTMA CEO Jason Kent emphasizes the importance of specified and sustainable lubrication for modern textile machines, acknowledging Vickers Oils' crucial role in ensuring the precision and longevity of Lonati's knitting machines. VICKERLUBE SOCK 46's role in enabling smooth, automated operation aligns with the industry trend towards increased automation through software advances.

India's value retail market, excluding food and grocery, is poised for meteoric rise, with a projected growth from $111 billion in FY23 to a staggering $170 billion by 2026. This translates to a robust compound annual growth rate (CAGR) of 15 per cent for the segment, outpacing overall retail sector's anticipated 10 per cent growth. This highlights the immense potential of value retail in India.

Apparel Takes Center Stage

Leading the charge is the apparel segment, with its diverse range of affordable clothing, footwear, and accessories attracting significant consumer interest. Pioneered by Max, a retail format from Landmark Retail, this trend is now fueled by the entry and expansion of major retailers like Reliance Retail's Yousta, Aditya Birla Fashion & Retail’s Style-Up, and Shoppers Stop's InTune, all capitalizing on the growing demand for value-oriented fashion. Trent's Zudio stands as a testament to the success of this strategy, paving the way for further investments in the sector.

Organized vs Unorganized: A Divided Landscape

Despite the organized retail boom, unorganized players still hold 79 per cent market share, primarily driven by their competitive pricing and focus on unbranded goods. Organized retail, encompassing both physical and digital formats, currently constitutes only 21 per cent, highlighting the significant room for growth in this space.

Accessible Pricing: The Key to Success

The key to unlocking the potential of value retail in India lies in offering accessible pricing across essential categories, targeting the mass, economy, and mid-economy segments. This requires a deep understanding of consumer preferences and a focus on delivering value for money.

Digital Drives Growth Beyond Metros

While organized brick-and-mortar retail faces challenges in smaller cities, digital channels are emerging as a powerful growth engine. Platforms like Amazon, Flipkart, and Snapdeal are expanding their reach beyond major cities, catering to the burgeoning demand for value-oriented products in Tier II and III markets.

Evolution of Value Retail

The Indian value retail market has undergone a distinct evolution over the years. It began in 1995-2010 with the rise of large retailers like Shoppers Stop and Westside, focusing on mid-to-premium brands in metros.

The scenario changed in 2004 with Max Retail owned by the Landmark Group making a splash in the value segment. It catered to the mass and mid-market segments offering a wide range of affordable clothing, footwear, accessories, and homeware. From 2010 to 2015 emerged more value-oriented players like M-Bazaar and Citi Style, catering to Tier II and III markets. This led to a clear segmentation between national chains and regional champions, particularly in the fashion segment.

Data Points 

• Average Transaction Value: Rs 500 to Rs 2,500, with average basket sizes of 2.5 to 7 items.

• Store Location: 50% of value retail stores are located in tier 3 or smaller cities and towns.

Frontrunners

• Max emerged the largest player with over 470 stores across India, with a large concentration in Tier II and III cities, with a revenue in FY23 standing at around Rs 8,000 crore.

• Despite pandemic challenges, retailers like Vishal Megamart with 120+ stores; Style Bazaar with 100+ stores and Rs 2000 crore turnover; V Bazaar with 100+ stores, and Rs1500 crore turnover have maintained a CAGR of over 15 per cent from 2018 to 2022.

A Promising Horizon

India’s value retail market has emerged as a lucrative opportunity for both domestic and international players. Some catalysts for growth are: rising disposable incomes, increasing urbanization, and growing adoption of e-commerce. Apparel is expected to remain at the forefront, with organized players making significant inroads into the unorganized market. However, challenges like supply chain disruptions and competition from online marketplaces need to be addressed for sustained success.

The market is poised for a transformative journey. By understanding key drivers, consumer preferences, and evolving trends, businesses can capitalize on this burgeoning market and contribute to the overall growth of the Indian retail landscape.

The American dream has long been stitched with visions of bustling factories and workers earning their fair share. But beneath the "Made in America" slogan lies a tangled reality, one where ethical production clashes with cost and convenience. Unravelling the complexities of ethical fashion, exploring the struggles of a small Maine-based manufacturer, the dark underbelly of the American garment industry, and the hopeful whispers of a future where fashion aligns with fairness,  the story is beyond just patriotism, delving into the intricate web of economics, consumer choices, and the human cost of cheap clothing. 

A Mission Stitched with Idealism

Ben and Whitney Waxman, the dreamers behind American Roots, embody the spirit of "Made in America." Their vision: to build a clothing company rooted in local sourcing, fair wages, and ethical practices. Yet, the path is fraught with challenges. Inexperience proves a cunning foe, leading them to navigate the treacherous waters of supplier scams and workforce management. But they persevere, bootstrapping their business to $3.5 million in sales by 2022, a testament to their unwavering commitment.

Beyond the Roots: A Critical Look at Free Trade's Legacy 

Slade's gaze extends beyond American Roots, delving into the history of free trade and its impact on American manufacturing. Her critique is sharp, highlighting how free trade policies have led to a "massive upward transfer of wealth" and the hollowing out of American factories. Five million manufacturing jobs vanished between 1994 and 2013, replaced by service industries offering lower wages and fewer benefits. This shift has left America "unable to make what we need," Slade argues, creating a stark dependence on foreign production.

A Blemished Canvas: The Dark Side of American Fashion

However, the American garment industry itself is far from a shining example of ethical production. Piece-rate pay, rampant wage theft, and abysmal working conditions plague major hubs like Los Angeles. Even manufacturers praised by Slade are later revealed to lack basic employee benefits like health insurance. This stark reality exposes the hypocrisy lurking beneath the "Made in America" label, throwing its rosy promises into sharp contrast with the lived experiences of American garment workers.

Can We Mend the Fabric? A Quest for Ethical Production

The central question remains: can ethical fashion truly thrive within the existing American garment industry? Slade argues that simply shifting production back to the US isn't enough. "Absent broader changes," she warns, "a return to US manufacturing alone won't improve wages and conditions for American workers." The average LA garment worker, for instance, earns less than half minimum wage and often works grueling 60-70 hour weeks. These are not the conditions upon which a sustainable and ethical fashion industry can be built.

Beyond Borders: A New Vision for Ethical Manufacturing

So, where does that leave the "Made in America" dream? Perhaps the answer lies not in geographical borders, but in a global commitment to ethical production. Slade proposes a system of universal labor and environmental standards, one that transcends national origin and ensures ethical practices wherever goods are made. This vision extends beyond the limitations of "Made in America," offering a broader and more sustainable path towards a future where both American workers and consumers can benefit from ethical fashion.

American Roots: A Beacon of Hope, a Call to Action

American Roots, with its commitment to fair wages and local sourcing, serves as a beacon of hope within the American garment industry. However, its struggles and the challenges it faces offer a sobering lesson. The "Made in America" dream must evolve beyond slogans and patriotism. It requires a critical lens, a commitment to fair labor practices, and a vision for ethical production that stretches across borders. Only then can this dream truly translate into reality, weaving a new fabric of economic prosperity and ethical responsibility for all.

A Fork in the Road: Cost vs. Value

The siren song of "Made in America" beckons, but its melody fades in the face of reality – often a price tag significantly higher than its outsourced counterparts. Americans face a stark choice: embrace ethically produced, locally-sourced apparel at a premium, or stick with cheaper, globally-manufactured options, potentially overlooking potentially exploitative practices. Polls are mixed, revealing a complex tapestry of consumer behavior. On one hand, a 2023 survey by McKinsey & Company found that 68% of American consumers express a willingness to pay more for sustainable and ethical products. Yet, another study by Retail Dive suggests price remains the primary deciding factor for 72% of shoppers.

The Value-Conscious Consumer

Within this dichotomy lies a spectrum of shoppers. For some, like Gen Z with its heightened social and environmental awareness, ethical considerations outweigh cost. They prioritize brands like American Roots, drawn to its transparent practices and willingness to pay a fair price for quality, ethically-made garments. On the other hand, cost-conscious consumers, particularly those on tighter budgets, prioritize affordability. For them, the extra dollars associated with "Made in America" can be a hurdle, leading them to prioritize lower-priced options, regardless of their origin or manufacturing ethics.

Navigating the Divide

Finding common ground between these seemingly disparate groups is crucial for the "Made in America" movement to reach critical mass. Transparency remains key. Educating consumers about the human and environmental costs of fast fashion, coupled with highlighting the benefits of ethical production for both workers and the planet, can shift perspectives. Additionally, exploring ways to bridge the price gap through innovative business models, collaboration with local producers, and government incentives can make "Made in America" more accessible for a wider range of consumers.

Data Points and Statistics

• Five million American manufacturing jobs disappeared between 1994 and 2013.

• Average salary at American Roots in 2022: $47,000.

• Average LA garment worker's pay: less than half minimum wage.

• 60-70 hour workweeks are standard in LA garment industry.