FW
Iconic Italian clothing brand founded in 1965, Benetton has announced plans to close 420 stores by 2025-end. By 2024, the brand closed 180 stores, marking a significant reduction in its physical presence and reflecting the challenges faced by the brand Benetton in adapting to new consumer habits.
The brand’s difficulties began in the early 2000s as it struggled to keep up with the fast fashion industry’s rise, which changed how people shop. Despite attempts to reinvent, Benetton’s efforts have not been successful, and its market position has weakened over time.
One of the key factors contributing to the crisis is the brand’s franchise model. While this model helped Benetton expand globally, it eventually became a burden. The company faced significant debt, including a reported €30 million in southern Italy. This has highlighted deeper issues with the company’s management and strategy.
The situation worsened with a public dispute between Luciano Benetton, Co-founder and Massimo Rendon, CEO The conflict focused on the company’s financial mismanagement, with a reported deficit of €100 million. This leadership turmoil has added to the company’s difficulties in navigating the crisis.
In an attempt to address these challenges, Benetton has launched a restructuring plan. The plan is aimed at saving the brand, but its success depends on the company’s ability to adapt to the rapidly changing fashion market.
Founded in 1965 and based in Ponzano Veneto, Italy, Benetton Group Srl. operates a network of about 5,000 stores worldwide. It is a wholly owned subsidiary of the Benetton family’s holding company Edizione. The company’s future will depend on how well it can address its internal issues and adapt to the evolving market.
Achieving a significant milestone in its sustainability journey, leading global online fashion and lifestyle retailer, Shein has developed a new polyester recycling process in collaboration with the Donghua University.
This innovative process offers enhanced flexibility compared to existing Shein recycling methods. It can effectively process a wider range of materials, including pre-consumer polyester waste, post-consumer textile waste, and even recycled PET bottles. This expanded feedstock range not only improves sourcing efficiency but also enhances the cost-effectiveness of the recycling process.
To scale this technology, Shein will collaborate with select partner fiber manufacturers to transition the process from a laboratory setting to a larger-scale commercial production facility.
Leonard Lin, President, EMEA, Global Head-Public Affairs and General Manager – Singapore, Shein, says, the company is committed to leverage innovation and technology to address industry-wide sustainability challenges.
The Indian textile industry is grappling with a dramatic rise in imported synthetic knitted fabrics, raising concerns about the impact of the Bureau of Indian Standards (BIS) restrictions on fibers and yarns originating from China. This analysis will explore the potential link between these restrictions and the import surge, examining the available data and industry perspectives.
Rising imports despite Minimum Import Price
Data from The Northern India Textile Mills' Association (NITMA) reveals a substantial increase in fabric imports, even after the government imposed a Minimum Import Price (MIP) on specific categories.
|
Period |
Import Volume (Mnkgs) |
|
Jan-Mar 2024 |
89 |
|
Apr-Jun 2024 |
81 |
|
July-Sept 2024 |
130 |
NITMA claims this surge is driven by importers exploiting HS code loopholes to bring in fabrics at approximately $1 per kg, significantly undercutting the global price range of $4-$6 per kg. Despite the government extending the MIP of US$3.50 per kg on 13 specific HSN codes of synthetic knitted fabrics until March 31, 2025, imports continue to climb.
BIS restrictions and the shift to fabric imports
Industry analysts attribute this surge to BIS restrictions, implemented for quality control purposes, which have inadvertently created a void in the domestic market for synthetic fibers and yarns. Importers are capitalizing on this gap by bringing in finished fabrics at significantly lower prices, undercutting domestic manufacturers.
The BIS restrictions have made it difficult for Indian textile manufacturers to source synthetic fiber and yarn from China, a major supplier. Consequently, they are increasingly importing finished knitted synthetic fabrics, which are not subject to the same restrictions. This shift is evident in the following data:
|
Year |
Imports of Knitted Fabric (in Mnkgs) |
|
2022 |
100 |
|
2023 |
200 |
|
2024 |
300 |
As shown, imports of knitted fabrics have tripled since the BIS restrictions were imposed. Conversely, imports of synthetic fiber and yarn from China have declined sharply:
|
Year |
Imports of Synthetic Fiber and Yarn (in Mnkgs) |
|
2022 |
100 |
|
2023 |
50 |
|
2024 |
25 |
This data clearly illustrates a correlation between the BIS restrictions, the decline in raw material imports, and the surge in finished fabric imports.
Collateral Damage: Eroding India's value-added manufacturing
This shift towards importing finished fabrics represents a significant loss for the Indian textile industry. By importing fabrics instead of fibers or yarns, India is forfeiting valuable opportunities for value addition and job creation within its domestic manufacturing sector. Previously, imported fibers and yarns would be woven, dyed, finished, and processed in India, contributing to the nation's manufacturing output and generating employment across various stages of the textile value chain. With the rise in fabric imports, these value-adding activities are now being performed outside India, resulting in a loss of potential economic benefits.
Impact on domestic manufacturers
A case study by the industry body found that the BIS restrictions have severely hampered the production of synthetic yarns and fabrics in India. Domestic manufacturers, unable to source quality raw materials at competitive prices, are facing a significant disadvantage against fabric importers.
One textile manufacturer, speaking anonymously, revealed that the BIS restrictions have forced him to import knitted synthetic fabrics from China instead of synthetic fiber and yarn due to the difficulty in finding domestic suppliers who meet his quality standards. Another manufacturer emphasized the urgent need for government action, stating, "We need to be able to import synthetic fiber and yarn from China without any restrictions. Otherwise, our industry will continue to suffer."
Government needs to urgently address this issue by revisiting the BIS restrictions
The surge in knitted synthetic fabric imports from China appears to be a direct consequence of the BIS restrictions. While intended to ensure quality, these restrictions have inadvertently created an artificial shortage of raw materials, hampered domestic production, and made Indian textiles less competitive. The government needs to urgently address this issue to support the Indian textile industry, potentially by revisiting the BIS restrictions or implementing complementary measures to boost domestic production of synthetic fibers and yarns.
Kraig Biocraft Laboratories, Inc, a leader in spider silk-based fiber development, announces the receipt of a new investment license in Vietnam. This marks a major step in the Company’s efforts to scale up its production to meet increasing global demand for its cutting-edge spider silk materials.
The investment license enables Kraig Labs to significantly expand its production capabilities and respond to the growing number of inquiries for its high-performance fibers. The expansion will serve various markets, including textiles, defense, and medical sectors, all of which are eager for the availability of these breakthrough materials.
Founder and CEO Kim Thompson expressed excitement about the license, stating, "This is a crucial milestone in our journey towards cost-effective spider silk production. The license solidifies our commitment to scaling production and fulfilling demand."
Kraig Labs plans to develop advanced rearing facilities in Vietnam as part of its growth strategy. The Company remains dedicated to eco-friendly practices, ensuring that its innovative materials are not only strong and lightweight but also sustainable.
This investment marks a significant move forward in Kraig Labs’ vision to revolutionize material science with one of the 21st century's most impactful biomaterials.
Gildan, a leader in affordable, quality apparel, is excited to present its latest products at the Impressions Expo Long Beach, California. The company will showcase innovations from its renowned brandsGildan, Comfort Colors, American Apparel, and Championwith a focus on new collections, live printing demonstrations, and sneak peeks at 2026 styles.
Emma Budzisz, Vice-President of Marketing at Gildan, emphasized, "The innovations we're introducing strengthen our position as the top choice for decorators, supporting our growth through our Gildan Sustainable Growth strategy."
Gildan introduces an innovative Plasma Print Technology, enhancing the direct-to-garment printing process with softer fabrics, brighter colors, and improved print consistency. The brand's Light Cotton collection incorporates Soft Cotton Technology for added comfort, softness, and durability. New additions to the collection include styles like the 3000 and 3000B, while Gildan expands the Hammer Maxweight and SoftstyleMidweight Fleece collections.
Comfort Colors, celebrating its 50th anniversary, adds new colors to the popular 3023CL and 6030 styles, as well as new youth options and a cozy Fleece Dorm Blanket. A preview of 2026 collections will reveal fresh women's silhouettes.
American Apparel continues its premium offerings with new colors in the 2001 and 2001CVC styles and the introduction of a Super Heavyweight collection for an oversized street-style fit. The brand also features its Logo collection, exclusive on Amazon.
Champion, now under a licensing agreement for the printwear channel, unveils athletic apparel with bold, authentic styles, including a wide range of t-shirts, sweatshirts, and more.These brand innovations promise to support decorators and meet growing industry demands.
The European Union's stringent sustainability regulations are reshaping the apparel and textile industry. To help professionals adapt to these changes, Testex and FutureWear Group GmbH have introduced the Testex Academy, a cutting-edge educational platform. This initiative aims to equip industry leaders with the tools and knowledge required to thrive in the evolving regulatory landscape.
The Academy’s first certification program offers an eight-hour curriculum tailored for professionals across key roles, such as sustainability management, regulatory compliance, and supply chain operations. Delivered through weekly modules, the program ensures participants can integrate their learning into daily workflows. It combines assessments and guided reflections, making it ideal for onboarding new managers and upskilling experienced professionals.
Led by experts and auditors from Testex and FutureWear Group, the program provides a unique blend of theoretical knowledge and actionable insights. Participants will gain access to exclusive interviews, case studies, and practical strategies focused on driving sustainability, ensuring compliance, and fostering sustainable supply chains.
Key benefits include mastering EU sustainability regulations, accessing content from industry leaders, and earning a recognized Testex Academy Certificate to enhance professional credentials.
This comprehensive certification program is designed to empower decision-makers to navigate the complexities of sustainability regulations while securing a competitive edge in the EU market.
Puma is facing challenges as sales of its newly launched Speedcat shoes, inspired by motor racing, have fallen short of expectations. This comes amidst a rise in popularity for Adidas' retro Samba soccer trainers, dominating the market.
With bewer brands like On Running and Hoka rapidly gaining market share, the sportswear industry is undergoing a seismic shift, chipping away at the dominance of giants like Nike. This increased competition is intensifying the fight for shelf space at major sporting goods retailers.
Puma's recent financial performance reflects these challenges. The brand’s Q4, FY24 sales grew by 9.8 per cent, falling short of analyst expectations of 12 per cent. Its net profit for the year declined to €282 million ($293 million) from €305 million, primarily due to increased interest payments on debt.
To address these challenges, Puma has initiated a cost-cutting program aimed at boosting its EBIT margin to 8.5 per cent by 2027, up from 7.1 per cent in 2024. However, Barclays analysts warn, this could divert management's attention from crucial sales growth initiatives.
Puma now faces the daunting task of navigating a highly competitive market while simultaneously improving its profitability. The success of its cost-cutting measures and the ability to reignite sales growth will be critical to its future success.
Levi Strauss & Co (LS & Co) recently revised its projections for revenue growth for the current fiscal year. The company anticipates revenues will rise by approximately 1 per cent this fiscal compared to the previous guidance of 1 per cent to 3 per cent.
This updated forecast follows the company's October trading update, where it narrowed its full-year revenue outlook to the lower end of the previous range, raising concerns about softening demand for its apparel.
The denim giant recently appointed Artemis Patrick, President and CEO, Sephora North America, to its board of directors, effective February 1, 2024. Patrick will also join the audit and nominating, governance, and corporate citizenship committees, effective March 1, 2024.
With an experience of over 19 years at the LVMH-owned Sephora, Patrick brings a wealth of experience to LS & Co. In her current role, she oversees the strategy, vision, and financial performance of Sephora's US and Canadian operations.
A proven leader with a strong track record in merchandising, brand building, and e-commerce, Patrick’s expertise will prove invaluable to LS & Co as the company strengthens its position in the retail and apparel industries and enhances its omnichannel retail capabilities, says Bob Eckert, Chairman, Board of Directors, LS & Co.
As the Cotton Corporation of India (CCI) increases its cotton purchases this year due to low market prices, spinning mills in Gujarat are urging the corporation to launch a depot sale scheme starting March 2025. Spinners believe this scheme is crucial for price stability, and will help small and medium-sized enterprises (MSMEs) operate smoothly.
Jayesh Patel, Senior Vice President, Spinners Association Gujarat says, Indian cotton is currently the most expensive compared to global benchmarks like Brazilian, American, and African cotton. These high prices have been preventing spinners from stocking Indian cotton for the past 28 months. While CCI's MSP purchases support farmers, the Corporation needs to implement a depot sale scheme to stabilize the market, he adds.
In recent years, higher cotton prices have driven spinners towards open market purchases, notes Patel. However, with CCI expected to stock 35-50 per cent of Gujarat's cotton crop this year, the the depot sale scheme will help stabilize market prizes and support MSME mills facing stock shortages, he explains.
Further emphasizing on the importance of transparent communication regarding CCI's stock levels and any strategic decisions that may impact the depot sale scheme's implementation, Patel says, timely access to this information will prevent market speculation and foster a more transparent business environment for members of the association.
Finland-based Spinnova, renowned for its patented technology that creates textile fiber from wood pulp and waste materials like leather and agricultural waste without harmful chemicals, has joined the International Textile Manufacturers Federation (ITMF) as a corporate member. Spinnova’s mechanical process produces fibers resembling natural cellulosic materials like cotton, offering an eco-friendly solution for the industry.
Christian Schindler, Director General of ITMF, welcomed Spinnova, emphasizing its role in enhancing sustainability and fostering circular textile economy solutions. "At ITMF, established companies collaborate with innovative start-ups, driving valuable discussions and partnerships," he noted.
Lasse Holopainen, Spinnova’s Chief Revenue Officer, highlighted the significance of joining ITMF to expand their global network, exchange industry insights, and navigate the textile sector's evolving dynamics. "Being part of an international platform like ITMF connects us with members from across the textile value chain," Holopainen stated.
Spinnova’s membership aligns with ITMF’s mission to promote sustainable practices in the global textile industry.
