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A 2024 Bain & Company report predicts, Gen Z consumers, born between 1997 and 2012, will make up nearly a third of luxury purchases by 2030, while millennials will account for over half.
As Gen Z is projected to become the wealthiest generation, their influence is expected to drive growth in luxury retail, travel, and technology sectors. Jason Dorsey, a Gen Z researcher, notes, although Gen Z's current spending power is lower than other generations, it will increase, making early engagement with this demographic crucial for brands.
The luxury market is shifting as Gen Z’s preferences challenge traditional brand loyalty. Claire Tassin from Morning Consult highlights, luxury consumers are increasingly ‘mercurial’ and prioritise quality over brand status. Despite their growing buying power, Gen Z's loyalty is less consistent compared to older generations. As per a report by McKinsey & Co, over 50 per cent of Gen Zers would switch brands for better value or quality, indicating a preference for authenticity and trendiness.
Brands face the challenge of appealing to both classic luxury shoppers and aspirational buyers, particularly with Gen Z's emphasis on authenticity and value. This balancing act is critical as overall luxury spending is expected to rise from €1.5 trillion ($1.67 trillion) currently to €2.5 trillion ($2.79 trillion) by 2030.
To succeed, luxury brands must avoid assuming that Gen Z lacks sophistication. Instead, they should recognise this generation’s diverse influences, inclusivity, and the importance of staying connected with trusted trends and information sources. Brands need to adapt to these evolving preferences to remain competitive and relevant in the expanding luxury market, adds the report.
On May 24, the Korean fashion brand Matin Kim launched its first pop-up store in Tokyo, Japan, marking a significant milestone in the rising popularity of K-fashion among young Japanese consumers. This trend has ignited a wave of Korean fashion platforms expanding into Japan's market, both online and offline.
Last October, leading Korean women's fashion shopping mall, Ably introduced a service that allows vendors to enter the Japanese market through its platform, amood. By utilising the ‘Overseas Sales Integration’ feature in the Ablyapp, vendors can list their products directly on amood, making them accessible to Japanese customers. Ably handles all the complexities of international commerce, including translation, shipping, customs, and customer support.
As of August 22, nearly ten months after its launch, a mood has seen more than 5,500 stores expand into Japan through the platform, with a cumulative listing of 1.85 million fashion and beauty products. The platform’s monthly active users increased by 20% compared to the previous month, and its transaction volume grew by 30%.
The entry of K-fashion platforms into Japan has been gaining momentum since the early 2020s. Mediquitous launched the fashion platform Nuguin Japan in 2020, which has quickly established a strong presence. By last year, Nugu's transaction volume reached 46 billion won, and the platform now has 1.8 million monthly active users. Similarly, another major Korean fashion platform, Musinsa established its Japanese subsidiary, Musinsa Japan, in 2021, operating both pop-up stores and an online shopping mall.
A significant player in the global fashion industry, Japan has an estimated market size of 100 trillion won, double that of South Korea. During Japan's economic boom in the 1980s, prominent designers emerged, bringing Japanese fashion to global prominence and influencing trends in South Korea. While Korean fashion saw a brief surge in popularity in Japan during the early 2000s, interest waned as the initial wave of Korean cultural content, including K-dramas, subsided.
The recent resurgence of K-fashion in Japan can be attributed to the growing influence of Korean celebrities and the widespread use of social media. Korean fashion trends are now spreading rapidly among trend-sensitive young Japanese consumers, fueled by the increase in K-fashion content shared online. A recent Nikkei article highlighted that Korean products and services are thriving in Japan, where social media plays a crucial role in amplifying trends. Young Japanese consumers, particularly those involved in "oshi-katsu" (supporting their favorite idols), are at the forefront of this trend, driving the global popularity of Korean fashion.
Urban Outfitters’ net income increased to $117.5 million in Q2, FY24 with total net income for the first six months of the year amounting to $179.3 million. The company’s net sales for the quarter rose by 6.3 per centto $1.35 billion, driven by a 2 per cent growth in comparable retail segment sales and a 3.1 per cent increase in overall retail segment sales.
In H1, FY24, Urban Outfitters’ net sales grew by 7 per cent to $2.55 billion, supported by a 3.2 per cent rise in comparable retail segment sales and a 4.4 per cent increase in overall retail segment sales.
The growth was fuelled by a rise in all three segments – retail, Nuuly, and wholesale. Four of the company’s five brands delivered record operating profits during the second quarter, notes Richard A. Hayne, CEO.
Performance of the company’s individual brands also remained performance. Net sales of the comparable retail segment increased by 7.1 per centat Free People, by6.7 per cent at Anthropologie, and 9.3 per cent at Urban Outfitters.Net sales of the Nuuly segment rose by 62.6 per cent as the average number of members increased by 55 per cent increase in the average number of active members.
Net sales in the wholesale category also increased by 15.1 per cent. This was largely driven by a 17.5% increase in sales at Free People, although this was slightly offset by a decline in sales at Urban Outfitters.
During the first half of the year, Urban Outfitters expanded its retail footprint by opening 19 new locations, including nine Free People stores, five Urban Outfitters stores, and five Anthropologie stores. Simultaneously, the company closed nine retail locations, comprising four Urban Outfitters stores, three Anthropologie stores, and two Free People stores.
Inspired by India’s rich textile heritage and craftsmanship, the handcrafted apparel and home decor brand Abraham & Thakore, led by David Abraham, RakeshThakore, and Kevin Nigli, has introduced a new home décor range offering wallpapers, soft furnishings, bed linens, ceramics, and wall art, all designed to bring the beauty of local craftsmanship into everyday living.
The collection is inspired by the brand’s desire to create home decor range that highlights the art of Indian craftsmanship, seamlessly integrating it into daily life. Through this collection, the designers aimed to envision the effects of traditional craft on daily life.
Known for their distinct, instantly recognisable style, Abraham &Thakore’s designs are refined yet relaxed, blending contemporary sensibilities with a deep appreciation for cultural history. The brand’s creations are characterised by strong principles of proportion, form, and volume, paired with a clean color palette of blocks and monochromes. This new home living range continues their commitment to simplicity and essentials.
Materiality plays a central role in this collection, guiding the designers’ vision to ensure that each piece authentically reflects the creative intent. The handmade touch is evident throughout the range. Soft, neutral linens set the tone for dining, while ceramics celebrate traditional Indian textile patterns. In collaboration with Obeetee Carpets, a legacy rug design brand, the collection includes sophisticated carpets, covers, and cushions featuring revered crafts such as ikat and kantha, rendered on soft tussar fabric. The walls come alive with evocative creations that highlight multiple heritage crafting techniques, unified by a powerful motif—the dot, which may seem insignificant until it’s not.
With this collection, Abraham &Thakore meticulously adapt intricate traditional practices to a contemporary palette, making the designs suitable for modern living spaces. With this launch, they aim to extend their collection’s reach into both domestic and institutional settings, infusing everyday life with cultural significance and pushing the boundaries of heritage celebration in contemporary design.
In a new move, the government has extended the implementation of the Quality Control Order (QCO) on cotton yet again, now expected to take effect from August 2025. This decision underscores the complexities surrounding QCO implementation and its diverse impact on different segments of the Indian textile industry. This deferment is in response to opposition from the country's ginning sector, which is unable to meet the stringent quality standards set by the Bureau of Indian Standards (BIS).
The QCO, designed to improve the quality of cotton exports, requires ginning units to invest in modern machinery to meet specifications for moisture, trash, and other factors. However, many of these units are small and medium-sized enterprises that struggle to afford these upgrades. While QCOs on polyester, viscose fiber, and other synthetic products are already in place, the repeated deferrals for cotton highlight the unique challenges faced by this natural fiber.
QCO on cotton, a delayed reality
The QCO on cotton, initially planned for 2023, has been repeatedly postponed, reflecting strong opposition from the ginning industry, largely composed of Micro, Small, and Medium Enterprises (MSMEs). The stringent quality standards mandated by the QCO necessitate substantial investments in modernization, are a hurdle for many MSMEs.
Experts say, QCO on cotton is a good move but its implementation needs to be gradual and supportive of MSMEs. They feel, the government should provide financial assistance and technological support to enable ginning units to upgrade their facilities
It may be recalled, the Cotton Association of India (CAI) and other industry groups had petitioned the government to delay the implementation of the QCO, arguing that a gradual rollout would be more feasible. The government has now agreed to this approach, postponing the effective date to August 27, 2025. This extension provides the ginning industry with additional time to modernize their operations and comply with the QCO's requirements. It also raises concerns about the long-term sustainability of the industry and the potential impact on India's cotton exports.
Impact on imports from China
In fact, this delay in implementation has created a contrasting scenario where QCOs on synthetics are already operational, while cotton remains exempt. The QCOs on synthetics have led to a notable decline in imports, particularly from China. This decline is attributed to the stringent quality standards and the requirement for Bureau of Indian Standards (BIS) certification for imported inputs. The following table provides a snapshot of the import trend:
Table: QCQ’s impact on synthetic imports
|
Import item |
Pre-QCO import volume (2022-23) |
Post-QCO import volume (2023-24) |
Change |
|
Polyester Staple Fibre (PSF) |
150,000 tonnes (approx.) |
90,000 tonnes (approx.) |
-40% |
|
Viscose Staple Fibre (VSF) |
80,000 tonnes (approx.) |
50,000 tonnes (approx.) |
-37.50% |
Meanwhile, the absence of a QCO on cotton has resulted in a relatively stable import trend from China. However, the impending implementation in 2025 is likely to disrupt this trend.
Impact on India's export competence
While QCOs aim to improve product quality, the increased cost of raw materials due to limited imports and the complexities of BIS certification have impacted the competitiveness of Indian synthetic textile exporters. As experts opine, the QCOs have pushed the synthetic sector towards better quality, but the cost implications are significant. Result: India is losing ground in price-sensitive markets.
However, the current scenario, with no QCO on cotton, offers a temporary advantage to Indian cotton exporters. However, the looming implementation of QCO raises concerns about potential cost escalations and their impact on export competitiveness.
Impact on prices
The reduction in imports and high compliance costs has led to a rise in synthetic fiber prices.
Table: Rising price of synthetics
|
Fiber type |
Pre-QCO price (Rs/kg) (Jan 2023) |
Current price (Rs/kg) (Aug 2024) |
Change |
|
Polyester Staple Fibre (PSF) |
120 |
150 |
+25% |
|
Viscose Staple Fibre (VSF) |
180 |
220 |
+22.2% |
Source: Textile Commissioner’s Office
Interestingly, cotton prices have remained relatively stable due to the absence of a QCO. However, the anticipation of its implementation has led to some speculative price increases.
The implementation of QCOs highlights a critical juncture for the Indian textile industry. While the intent is to increase product quality and enhance consumer confidence, the diverse impact on cotton and synthetics underscores the need for a nuanced approach. Striking a balance between quality standards and the practical challenges faced by different segments of the industry is imperative.
The government's decision to extend the QCO on cotton provides a window for further deliberation and preparation. The success of QCO implementation hinges on collaborative efforts between the government, industry stakeholders, and technology providers to ensure a smooth transition toward a quality-driven textile ecosystem that fosters both domestic growth and global competitiveness.
Note: Statistics in this article are collated from different sources
Coterie New York, the biannual event spotlighting contemporary and advanced contemporary women's fashion, has announced its lineup of exhibiting brands, trends, and neighborhoods for the upcoming show, scheduled for September 22-24 at the JavitsCenter.
This season, nearly 40 per cent of the featured brands will hail from international designers, including Veja, Missoni, Rucoline, Farm Rio Footwear, and Alemais. These will be showcased alongside prominent American labels such as 7 for All Mankind, AG Jeans, Beyond Yoga, Jade Swim, Rebag, and Favorite Daughter.
Purvi Kanji, VP of Coterie, highlighted that Coterie New York serves as a global hub for both established and emerging designers, with the upcoming event set to feature fresh trends for Spring/Summer 2025 and a strong emphasis on technology, sustainability, and woman-owned brands.
The event will also introduce the International Guest Buyer Program in collaboration with Modem, fostering connections between international buyers and participating brands. This inaugural edition will host 13 prestigious stores from Italy and France, with support from the Camera Buyer Italia (CBI).
With over 750 brands on display, the event will attract top retailers including Anthropologie, Saks Fifth Avenue, Moda Operandi, and Rent the Runway, reinforcing its status as a key player in the global fashion market.
Taking a significant step forward in its retail refresh initiative, Foot Locker has reopened its Manhattan Herald Square store on 34th Street. The sneaker retailer unveiled the newly revamped 13,000-sq-ft store this week. It has been designed to align with Foot Locker’s broader retail enhancement strategy. The updated store features a modern interior design, a communal shoe try-on area, digital shopping enhancements, and a dedicated “sneaker hub” for personalized assistance.
A standout feature of the Herald Square location is the introduction of Foot Locker ‘Home Court,’ a specialised area developed in collaboration with Nike and Jordan Brand. This space showcases Foot Locker’s extensive range of basketball sneakers and celebrates basketball’s pivotal role in sneaker culture. The area also includes immersive experiences like a digital vertical jump challenge and advanced 3D foot-scanning technologies, ensuring customers find the perfect fit.
The Herald Square store also debuts Foot Locker’s new Kids Foot Locker experience, featuring a kid-friendly custom shoe scan station, an activity table, and an expanded selection of basketball merchandise for children.
This reimagined store is part of Foot Locker’s strategic Lace-Up plan, introduced in March 2023, to refresh its entire store fleet. The plan includes closing over 400 stores, including around 125 underperforming Champs locations, while expanding the WSS brand to more than 300 locations.
In addition to the Herald Square store, Foot Locker recently opened another revamped location in Paris ahead of the Summer Olympics and plans to open a similar store in Melbourne, Australia, in October. The company is also partnering with Metro Brands to launch its first Foot Locker store in Delhi, India.
Following the bankruptcy of Esprit's European operations in Germany on May 15, Boulogne-Billancourt-based Esprit de Corp France has also entered into administration. This decision was announced by the Nanterre Commercial Court on July 18,
Esprit Europe and six other German subsidiaries filed for bankruptcy in May this year. The brand’s owner attempted to revitalise Esprit in 2023 by infusing new creative energy from the United States, with the goal to upgrade the brand’s image. However, these efforts fell short.
The brand’s subsidiaries in Switzerland and Belgium, where it operates stores, had already filed for bankruptcy in March and April, respectively.
Esprit cited multiple challenges contributing to its financial difficulties, including high costs driven by inflation, rising interest rates, and increased energy prices, along with the lingering effects of the coronavirus pandemic and the impact of international conflicts. These challenges were further compounded by legacy costs like high rents and poorly sized stores, explains the company.
In 2022, Esprit de Corp France generated a turnover exceeding €40 million and managed to break even, employing 132 people at the time. The company has been granted a six-month observation period, but the outlook remains uncertain as the brand struggles to attract international buyers.
Bluesign has announced that ERCA, a leader in innovative chemical solutions for the textile industry, is now Brazil's first Bluesignsystem partner. This partnership marks a significant milestone in Bluesign's global expansion, further establishing its presence across multiple continents.
ERCA, part of the ERCA Group with operations in Europe, Latin America, and Asia, is known for its commitment to sustainability and responsible innovation. The company's revolutionary Revecol range, which transforms waste materials like exhausted vegetable oil into high-performance textile solutions, is Bluesign approved.
SidneiMaturano, President of ERCA Brazil, expressed pride in this achievement, stating, "Becoming a Bluesignsystem partner reflects our dedication to sustainability and responsible manufacturing. This certification ensures that our products are made using safe chemicals, aligning with the growing consumer demand for environmentally responsible products."
The partnership with Bluesignunderscores ERCA Brazil's commitment to reducing environmental impact, conserving resources, and improving energy efficiency. By adopting Bluesign’s rigorous standards, ERCA Brazil aims to minimize waste and enhance safety throughout its operations.
This collaboration not only highlights ERCA's leadership in Brazil but also strengthens Bluesign's influence in promoting sustainable practices worldwide. As Bluesign continues to expand its network of partners, it remains at the forefront of transforming the textile industry toward a more sustainable future.
For Q1, FY25 ending June 2024, net sales of Sutlej Textiles and Industries’ declined by 6.59 per cent Y-o-Y to Rs 658.07 crore as against Rs 704.48 crore recorded in the corresponding quarter last year.
However, despite this decline, the company managed to narrow its quarterly net loss, by 62.61 per cent Y-o-Y to Rs 11.40 crore in June 2024 from Rs 30.49 crore in June 2023.
Additionally, the company's EBITDA increased by 429.14 per cent Y-o-Y to Rs 25.24 crore in June 2024, up from Rs 4.77 crore in the corresponding quarter of the previous year.
On the Q-o-Q basis, the company’s net sales increased marginally from Rs 656.45 crore reported in Q4, FY24. Its net loss narrowed to Rs 25.55 crore
