FW
Renowned exporter of fabrics and garments to both global and domestic markets for the past two decades, Globe Textiles India plans (GTIL) to augment its garment processing capacity by up to 20,000 units per day and 6 lakh units per month, aiming for a robust top line of 520 crore in the next three years.
Committed to maintaining environmental sustainability, GTIL’s eco-friendly facility features a Zero Liquid Discharge system and leverages solar energy to reduce operational costs. Aligning with the company's ethos, this initiative also contributes to its bottom line, with its revenues expected to increase by 30 per cent by 2027.
An industry leader in environmental responsibility and customer satisfaction, particularly in the realm of fashion, GTIL employs nature-friendly dyes and chemicals, along with pioneering sustainable processing techniques to deliver superior quality apparel while minimising its ecological footprint.
Further GTIL plans to soon introduce denim tops for women, affirms Bhavin Parikh, CEO. Through strategic initiatives such as a successful rights issue and acquisitions, GTIL aims to not only expand its asset base, margins, and top-line growth but also introduce innovative sustainable fashion garments.
With revenue of Rs 399.4 crore and a production capacity exceeding 2.5 lakh sq ft in December 2023 GTIL demonstrated consistent financial performance, boasting a 10-year Compound Annual Growth Rate (CAGR) of 13 per cent in both revenue and net profit.
Vietnam's garment and textile sector is actively implementing certain strategies to boost production and business operations amidst formidable challenges including dwindling demand, mounting inventory, and geopolitical unrest across various regions.
Enterprises within the sector have reported an influx of export orders, albeit with no corresponding improvement in prices. The value of several contracts has decreased by 30-50 per cent. Additionally, speculation and logistical hurdles are expected to boost cotton prices across the sector. Vietnamese firms are also grappling with fierce competition in the Chinese market, where domestic production is bolstered by tax incentives and support policies.
Cao Huu Hieu, General Director, Vietnam National Textile and Garment Group (Vinatex), says, it is important to seize these opportunities, make informed forecasts, and stay abreast of the evolving situation to take timely action. He advocates for a thorough restructuring of organisations, adoption of advanced management techniques, and prioritisation of projects aimed at enhancing productivity.
Echoeing this sentiment, Le Tien Truong, Chairman, Vinatex, highlights, these obstacles present ample opportunities for firms with robust business strategies, diversified product offerings, active engagement in the supply chain, and a strategic approach towards the digital and green economies. The association pledges to closely monitor market trends and member operations, devising flexible and innovative measures to develop products and explore new markets to ensure sustained business efficiency.
Nguyen Xuan Duong, Chairman, Hung Yen Garment Corporation Joint Stock Company, underscores the challenges faced by firms due to high input costs and workforce transitions to other markets such as South Korea and Japan. Moreover, the sector contends with a global demand downturn of 5-10 per cent, compounded by the risk of major fashion brands facing bankruptcy, resulting in substantial losses for Vietnamese firms.
Duong urges relevant ministries and sectors to enact policies facilitating access to capital for enterprises to strengthen investment and bolster production. He also emphasises the need for assistance programs to improve workers' livelihoods.
Despite these challenges during January to March, Vietnam’s garment and textile exports expanded by 10 per cent Y-o-Y to reach approximately $10 billion. This growth serves as a beacon of hope for enterprises striving to achieve the set target of $44 billion for the entire year.
Norway based-Tomra Textiles and London-located Circle-8 Textile Ecosystems have teamed up to advance the first automated textiles sorting and pre-processing facility for non-reusable waste textiles in the UK.
The companies will conduct a comprehensive feasibility study to design a scalable automated textile sorting and pre-processing facility. Leveraging Tomra's expertise and experience, Circle-8 aims to develop solution designs tailored to the UK's needs for an automated sorting and pre-processing facility for non-reusable textiles.
A key member of ACT UK, Circle-8 is actively engaged with stakeholders across the textile value chain to foster a circular textiles ecosystem. Tomra brings invaluable insights from its involvement as the main technology provider for SIPtex, the world's first fully scaled automated textile sorting facility, located in Malmö, Sweden. Drawing from lessons learned in this project, Tomra is committed to optimizing and reconfiguring its technology for industrial-scale sorting of post-consumer garments. The feasibility study seeks to devise an automated solution capable of sorting textiles by fiber composition and color, as well as removing disruptors such as buttons, zippers, and trims, while preparing materials for textile-to-textile recycling processes.
Cyndi Rhoades, Co-founder and CEO, Circle-8 Textile Ecosystems, emphasises the critical role of automated sorting and pre-processing in creating a truly circular textiles value chain. She asserts the collaboration with Tomra will highlight the potential for positive progress in this endeavor.
Vibeke Krohn, Head, Tomra Textiles, stresses the importance of collaboration across the value chain, citing Tomra's extensive experience in developing technologies for the transition to circularity. Together with Circle-8 and its network of retailers and brands in the UK, Tomra aims to drive meaningful progress towards designing a solution for the sorting and pre-processing of non-reusable textiles.
The already fragile global garment industry faces fresh challenges as tensions escalate between Iran and Israel. This adds another layer of disruption to a supply chain already strained by the Red Sea crisis and the war in Ukraine. The apparel industry being a complex web, and the Iran-Israel conflict presents a significant threat to its stability. Rising costs, declining demand, and shifting sourcing strategies could have long-term consequences for both producers and consumers. Analyzed below is the likely impact and the potential consequences of the conflict that’s threatening to loom larger.
Rising production costs, disruption in raw material supply
A full-blown war could send global oil prices soaring. This translates to higher shipping costs and production expenses for apparel manufacturers, especially in countries like Bangladesh that rely heavily on imports for raw materials and finished goods transportation. And the conflict could disrupt the flow of key raw materials like cotton and synthetic fibers. Iran is a significant producer of petrochemicals, essential for synthetic fiber production. Any disruption in supplies could lead to shortages and price hikes.
Consumer behavior and declining demand
The rising production costs will likely be passed on to consumers through higher garment prices. This could lead to decreased demand, especially in a period of economic uncertainty. Consumers, increasingly aware of ethical sourcing and global events, might become more cautious about purchasing apparel produced in regions with heightened geopolitical tensions.
Impact on sourcing strategies for fashion brands, retailers; near shoring to accelerate
Fashion brands and retailers are likely to diversify their sourcing strategies to mitigate risks. This could lead to a decline in orders for countries like Bangladesh, further impacting their garment industry. The trend of near-shoring, where companies source from geographically closer countries, might accelerate. This could benefit countries like Turkey and Vietnam, located closer to major European markets. Further, brands might increase their inventory levels to buffer against potential supply chain disruptions caused by the conflict.
The broader impact
Loss of Momentum for countries like Bangladesh, where apparel exports is a major foreign currency earner, it was just beginning to recover from the pandemic and the Ukraine war. This new conflict could derail their progress. The ongoing tensions could also hamper efforts to expand the garment sector's reach into emerging Middle Eastern markets like Saudi Arabia and Iran.
The value of illegal garments imported in to Indonesia is projected to have increased to $2.9 billion per year with around 3 million pieces imported every day, says Ian Syarif, Chairman-West Java branch, Association of Indonesian Textiles (API).
According to Syarif, this rise of illegal clothing imports is impacting domestic apparel sales in Indonesia. Apparel exporters in the country are currently being compelled to pay an import duty of Rp-20,000-70,000 per piece to sell their garments, notes Redma Gita Wirawata, Chairman, Indonesian Filament Fiber Association (APSyFI).
Against this, imported clothing is being sold on ecommerce websites at Rp 40,000-50,000. This is possible only if they have not paid import duties, adds Wirawata.
In a strategic alliance set to redefine color management in the textile industry, Archroma, a leading provider of sustainable specialty chemicals, and ColorDigital GmbH, the innovator behind DMIx textile supply chain digitalization, have joined forces. This collaboration will seamlessly integrate Archroma's Color Atlas, boasting 5,760 engineered color standards, into ColorDigital's DMIx platform.
By incorporating Archroma's Color Atlas into DMIx, fashion brands and suppliers gain access to an extensive library of color references, fostering unparalleled creativity while ensuring precision. Leveraging digital twin technology, DMIx streamlines color alignment across the design, sourcing, and production phases, slashing sampling costs and development time while enhancing color accuracy and product quality.
Central to this partnership is a shared commitment to sustainability. Archroma's Color Atlas hues comply with leading eco-standards, aligning with DMIx's ImpAct approach, which provides crucial environmental data on raw materials. This synergy empowers brands to select inputs that meet their sustainability objectives without compromising on color integrity.
Chris Hipps, Global Head of Archroma Color Management, emphasized the shared ethos, stating that Archroma takes a 'Planet Conscious' approach to color and aims to empower designers to make sustainable choices. Similarly, Gerd Willschütz, COO and Co-Founder of ColorDigital, highlighted the transformative potential of strategic color management in driving commercial success.
A highlight of the collaboration is the introduction of DMIx eXcite, an innovative hub for material and color trends. Through interactive mood boards, designers gain insight into upcoming trends, directly utilizing colors from Archroma's Color Atlas for enhanced creativity and efficiency.
This partnership not only streamlines color development and production processes but also underscores a shared commitment to environmental responsibility. Archroma's Color Management+ solution, featuring the Color Atlas, paves the way for a more sustainable future in textiles and fashion.
Kraig Biocraft Laboratories, Inc.strides forward in its quest for cutting-edge biomaterials as it commences spring production trials for its latest breakthrough, the BAM-1 hybrid. The trials, crucial to the Company's trajectory, are proceeding according to plan, marking a significant milestone in its production roadmap.
CEO Kim Thompson's direct oversight in Asia underscores the strategic importance of the BAM-1 parental strains' performance evaluation. Notably, meticulous health screenings reveal an unprecedented vigor and vitality among the silkworm colonies, attributed to the enhanced genetics and resilience of the BAM-1 strains.
The absence of disease signals a triumph for Kraig Labs, a testament to its commitment to excellence. Nirmal Kumar's contributions in knowledge transfer and rearing technology bolster this success, amplifying prospects for a record-breaking year in spider silk production.
Thompson's optimism resonates as he underscores the pivotal role of these trials in shaping the Company's future. With Kumar's on-ground support, Kraig Labs is poised for a breakthrough, aligning with its vision for commercial-scale spider silk production. As the industry eagerly awaits further developments, Kraig Biocraft Laboratories stands at the forefront of innovation, poised to redefine biomaterials as we know them.
YKK Corporation is embarking on a significant shift towards eco-friendly practices by introducing low-carbon aluminum into its production of zippers. This move marks a strategic step towards fulfilling its Sustainability Vision 2050, aimed at achieving climate neutrality.
Collaborating with Sumitomo Electric Industries and Sumitomo Electric Toyama, YKK has committed to purchasing alloy wires utilizing low-carbon aluminum, gradually transitioning from conventional materials.
Aligned with its ambitious sustainability goals, YKK aims to reduce greenhouse gas emissions across its supply chain. By adopting low-carbon aluminum for zipper production, the company endeavors to slash Scope 1, 2, and 3 emissions by significant margins by 2030. This initiative underscores YKK's dedication to mitigating climate change and fostering a more sustainable society.
Terry Tsukumo, Vice President of the Product Strategy Division at YKK Corporation, emphasizes the company's ongoing commitment to environmental responsibility. Tsukumo highlights YKK's multi-faceted approach, which includes integrating recycled and plant-based materials alongside the introduction of low-carbon aluminum.
This concerted effort reflects YKK's determination to minimize its environmental footprint while collaborating with partners to drive sustainability throughout the supply chain.
Nitin Spinners Ltd has clinched prestigious awards at the Cotton-Textiles Export Promotion Council (Texprocil) for its exemplary performance in export and employment generation. The company secured the following accolades for the years 2021-22 and 2022-23:
In 2021-22, Nitin Spinners received the Silver Trophy for achieving the second-highest exports of Cotton Yarn of Counts 50s and below in Category III.
In 2022-23, the company marked a significant achievement by bagging the Gold Trophy for the highest exports of Cotton Yarn of Counts 50s and below in Category III. Additionally, they received a Gold Plaque for leading in exports of Cotton Yarn of Counts 51s and above in Category I, and another Gold Trophy for top-notch performance in employment generation.
This recognition underscores Nitin Spinners' commitment to excellence and its pivotal role in bolstering India's textile export sector. The news buoyed investor sentiment, reflecting positively on the company's stock performance. Nitin Spinners Limited's shares closed marginally lower at Rs 351.80 on the Bombay Stock Exchange (BSE) following the announcement, after trading 11770 shares across 672 transactions during the day.
The fashion industry is notorious for waste. Unsold garments and excess fabric often end up in landfills. Fabric stock services are emerging as a potential solution, offering a platform for manufacturers and designers to buy and sell leftover materials. But is this a new trend poised to dominate, or a niche market with limitations?
Growth and potential
Data suggests a growing market for fabric stock services. A report by Textile Exchange suggests the global market for recycled textiles is expected to reach $21.8 billion by 2025. Fabric stock services offer a way to tap into this trend by giving pre-existing fabrics a second life.
Studies show, a growing interest in fabric stock services. Indeed, concrete sales figures are difficult to obtain due to the industry's fragmented nature, anecdotal evidence and the increasing presence of online platforms dedicated to fabric stock point towards a positive trend. Companies like Fabric Stock Exchange report a constant influx of new fabrics, indicating a growing pool of excess inventory.
A change driver
Direct comparisons between stock service sales and traditional manufacturing are challenging due to different business models. However, the rise of sustainability concerns and the ever-changing fashion landscape make stock services an attractive option.
Stock services offer a sustainable solution by giving these materials a second life. "We are diverting tons of fabric from landfills," says Michael Goldberg, CEO of Fabcycle, a prominent fabric stock service company. Veja, a sustainable sneaker brand, is a prime example of how stock services can work. Veja utilizes fabric stock services to source deadstock materials for their footwear. This allows them to create unique designs while minimizing environmental impact
As Sarah Jones, a fashion sustainability consultant points out, "Fabric stock services offer a win-win situation. Manufacturers can recoup costs from leftover materials, while designers gain access to unique fabrics at potentially lower prices, all while promoting sustainability." The push for sustainable practices and rising consumer demand for eco-conscious clothing are key drivers of this trend.
So what’s pushing this change? Sustainability is top reason as it reduces textile waste by giving leftover materials a second life. Cost-effectiveness is another driver as manufacturers can access high-quality fabrics at discounted prices. Reduced lead times is another lure, as stock services offer readily available fabrics, allowing for faster production cycles.
Currently, stock services primarily cater to small and mid-sized businesses, who benefit from access to premium materials without minimum order quantities. Also, sustainable designers source eco-friendly materials for their collections. The variety of fabrics available through stock services is vast. From natural fibers like cotton, linen, and wool to synthetic fibers like polyester and nylon and blends.
The future of fabric stock services
The future of fabric stock services holds a lot of promise. As sustainability concerns escalate and the fashion industry seeks more agile solutions, these services are likely to see continued growth. Additionally, advancements in online platforms and data analysis could further streamline the process, making it even more accessible.
However, challenges remain. Standardization and quality control across different platforms need improvement. Also, educating both manufacturers and consumers about the benefits of stock services is crucial for wider adoption. What’s more selection is limited. Stock services typically offer a broader range of colors and patterns for basic fabrics like cotton or linen. Finding specialty or high-end materials like silk or intricate lace might be challenging. Since stock relies on leftover materials, designers may have difficulty planning large-scale productions around specific fabrics
Overall, fabric stock services offer a compelling solution for a more sustainable and efficient textile industry. The traditional ‘manufacture and sell’ model will likely persist for large, mainstream fashion brands requiring consistent fabric availability. However, fabric stock services offer a complementary approach, promoting sustainability and fostering creativity within the fashion industry. As the industry evolves, these services are likely to play an increasingly important role.
