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Driven by an evolving consumer demand in the country, Fast Retailing Co-owned Japanese apparel brand Uniqlo plans to replace smaller, less profitable outlets across China with larger outlets in premium locations to better meet market needs and ensure long-term profitability.
According to Pan Ning, CEO, Uniqlo China, this shift aligns with changing consumer behavior and positions Uniqlo to capitalise on China’s market growth while ensuring sustainable profitability.
Uniqlo also aims to enhance its integration of brick-and-mortar and e-commerce operations, fostering collaboration between the two and exploring new sales channels like livestreaming to boost growth.
Currently, Uniqlo has over 920 directly operated stores across more than 200 Chinese cities. The brand creates more than one million jobs across its industrial chain in the country, It plans to adopt a more localised approach by tailoring product assortments to regional preferences, climates, and cultural nuances.
Since 2021, Uniqlo has launched 18 co-branded collections in China featuring local cultural elements, collaborating with various artists to blend modernity with tradition. The brand’s revenue from the country rose by 9.2 per cent Y-o-Y to ¥677 billion ($4.4 billion) in FY 2024, according to the latest financial report. The Chinese market remains pivotal to Uniqlo’s global business strategy, as China’s consumption-driven transformation presents immense opportunities.
The company has also showcased new products at the China International Import Expo (CIIE) in Shanghai, introducing over 10 debut items, including down jackets and dresses, across five editions of the expo.
Beyond China, Uniqlo is extending its global footprint with new initiatives. In late October, it opened a global flagship store in Shinjuku, Tokyo, offering an extensive product lineup, including exclusive collaborations with local companies and unique in-store features like flower and coffee outlets.
The Northern India Textile Mills Association (NITMA) has announced its new office bearers following elections held during its 67th annual general meeting on December 21, 2024.
Sidharth Khanna, Director of Arisudana Industries Ltd, has been elected President. Joining him are Munish Avasthi, CMD of Sportking India, as Senior Vice President, and Ujjwal Garg, Director of Garg Acrylics Ltd, as Vice President.
In his inaugural address, Khanna expressed gratitude to the outgoing office bearers, Sanjay Garg and Mukesh Tyagi, for their contributions to the association. He also welcomed the new leadership team, emphasizing their diverse expertise and commitment to advancing NITMA’s mission.
“I am deeply honored to serve as President of NITMA and look forward to working with my colleagues to support our members and drive the textile industry forward,” stated Khanna.
NITMA reiterated its dedication to fostering growth in the textile sector under the guidance of its new leadership. The association expressed optimism about achieving its strategic goals in the years ahead.
The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has appealed to Nirmala Sitharaman, Union Finance Minister and Chairperson, GST Council to reconsider the proposed increase in GST rates for garments.
Under the proposed changes, the GST on garments priced between Rs 1,500 and Rs 10,000 would rise from 12 per cent to 18 per cent, while garments priced above Rs 10,000 would attract a 28 per cent tax.
Highlighting the potential consequences of these changes in a representation to the GST Council, Potluri Bhaskara Rao, President, AP Chambers, said, the proposed hike could severely impact the textile and garment sector in Andhra Pradesh, a major contributor to employment and the state’s economy.
The sector is already under pressure from rising input costs, global market uncertainties, and declining consumer spending, Rao emphasised. Increasing GST rates would further drive up garment prices, making them unaffordable for middle-income consumers and potentially leading to reduced demand, he warned.
Small and medium enterprises (SMEs), which dominate the garment industry and operate on thin profit margins, would bear the brunt of the increased tax burden. This could result in business closures, layoffs, and significant job losses across the sector, Rao cautioned.
The AP Chambers urged the GST Council to prioritise sustainability in the textile and garment industry, given its crucial role in job creation, industrial growth, and exports. The organisation appealed for the retention of the current GST rates to protect the sector's stability and ensure its continued contribution to the state’s economy.
The Chambers expressed hope that the GST Council would recognise the importance of the industry and take steps to avoid a tax increase that could jeopardise its future.
India’s garment exporters believe, the recent depreciation of the Indian rupee will help boost shipments of garments and handicrafts from India by around 5-10 per cent. However, a sharper fall in currencies like the Chinese yuan, Japanese yen, and Mexican peso may lead international buyers to demand price cuts, eroding long-term competitive advantages from the rupee's decline.
After crossing the Rs 85 mark for the first time recently, the Indian rupee reached an all-time low of 85.10 per dollar. With nearly 60 per cent of India's trade benefit, dollar-based, the depreciation is expected to benefit traditional export sectors like textiles and leather.
Sanjay Jain, Managing Director, TT, notes, the rupee depreciation will help the entire textile chain, with exporters retaining about 50 per cent of the benefit while passing the rest to buyers.
The handicraft sector also expects a 2-3 per cent rise in exports due to the rupee depreciation, says Rakesh Kumar, Chief Mentor, Export Promotion Council for Handicraft
Exporters without hedged positions could gain the most in the short term, though these benefits may not be sustainable, opines Ajay Sahai, Director General, Federation of Indian Export Organisations. Only 15 per cent of exporters operate without hedging mechanisms, according to estimates by industry experts.
Since the start of the year, the rupee has depreciated 2.2 per cent against the dollar, but other currencies have weakened more significantly—such as the Brazilian real (26.8 per cent), Mexican peso (19.6 per cent), Japanese yen (11.8 per cent), South Korean won (11.7 per cent), and Chinese yuan (2.6 per cent). The rupee has faced relatively less depreciation, except in the last two months, notes Madan Sabnavis, Chief Economist, Bank of Baroda. While a weaker rupee aids exports, the sharper depreciation of the yuan could give Chinese exporters a competitive edge, the bank highlights in a recent report
The rupee depreciation has been more pronounced since Donald Trump’s election as US president, reflecting global economic pressures. Despite short-term gains, exporters remain cautious about the long-term implications of the rupee’s fall, adds Sabnavis.
The US textile and apparel industry is a complex web of domestic manufacturing, imports, and exports, interwoven with trade agreements and policies that shape its competitive landscape. The US's textile and apparel trade relationship with the CAFTA-DR region has had a significant impact on the industry.
CAFTA-DR: A Cornerstone of US Textile and Apparel Trade
The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has significantly influenced US textile and apparel trade. Enacted in 2005, this agreement established a free trade zone encompassing the US, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
CAFTA-DR has fostered a strong trade relationship in textiles and apparel, with a focus on sourcing yarn and fabric from the US, producing garments in the CAFTA-DR region, and exporting them back to the US. This ‘yarn-forward’ rule of origin has been crucial in driving investment and job creation in the region.
Table 1: US imports of textiles and apparel from CAFTA-DR (2020-2022)
|
Year |
Apparel ($bn) |
Textiles ($bn) |
Total ($bn) |
|
2020 |
8.7 |
1.5 |
10.2 |
|
2021 |
10.5 |
1.9 |
12.4 |
|
2022 |
11.8 |
2.1 |
13.9 |
Table 2: US exports of textiles and apparel to CAFTA-DR (2020-22)
|
Year |
Apparel (($bn) |
Textiles (($bn) |
Total (($bn) |
|
2020 |
0.8 |
1.2 |
2 |
|
2021 |
1 |
1.5 |
2.5 |
|
2022 |
1.1 |
1.7 |
2.8 |
(Source: US International Trade Commission data)
US textile and apparel trade with the CAFTA-DR region has shown dynamic trends in recent years as the tables indicate. The data shows consistent growth trend in both imports and exports. However, the US maintains a significant trade deficit with the CAFTA-DR region in this sector, highlighting the region's role as a vital sourcing hub for US apparel brands.
The opportunities are immense, as rising transportation costs and concerns about supply chain resilience are driving a trend towards nearshoring favoring production closer to the US market. And CAFTA-DR countries are well-positioned to benefit from this shift. With growing consumer demand for sustainable and ethically produced clothing presents an opportunity for CAFTA-DR countries to differentiate themselves by implementing eco-friendly practices and ensuring fair labor standards. Meanwhile, investing in technology and skills development can enhance productivity and competitiveness in the CAFTA-DR region, enabling it to move up the value chain and produce higher-value garments.
Despite growth, the trade relationship with CAFTA-DR faces challenges. The CAFTA-DR region faces stiff competition from Asian countries like China, Vietnam, and Bangladesh, which often offer lower production costs. At the same time concerns persist on labor rights and working conditions in some CAFTA-DR countries, potentially impacting brand reputations and consumer perceptions. Political instability and security issues in certain CAFTA-DR nations can disrupt supply chains and create uncertainty for investors.
The future of US textile and apparel trade with CAFTA-DR hinges on several factors, including:
US trade policy: The current administration's trade policy, with its focus on labor rights and environmental protection, could influence sourcing decisions and investment flows.
Regional integration: Deeper integration among CAFTA-DR countries can enhance efficiency and competitiveness, making the region more attractive for investment and trade.
Technological advancements: Automation and digitalization are transforming the global textile and apparel industry. CAFTA-DR countries need to adapt to these changes to remain competitive.
Textile and apparel imports experienced notable growth from August to October, rising 9.8 per cent to 10.7 billion square meter equivalents (SME) in October, according to the Department of Commerce’s Office of Textiles and Apparel (OTEXA). This represents a 33.1 per cent increase compared to the same period last year.
Textile imports totaled 8.22 billion SME in October, up 14 per cent from August and 37.2 per cent year-on-year, while apparel imports stood at 2.51 billion SME, down 2.4 per cent from August but up 21 per cent from last year. Year-to-date imports through October reached 87.5 billion SME, a rise of 11.3 per cent from 2023, with textiles climbing 13.8 per cent to 65.7 billion SME and apparel increasing 4.4 per cent to 21.8 billion SME.
For the year ending October 2024, total imports grew 10.6 per cent to 101.4 billion SME. Textile imports jumped 13.5 per cent to 76.2 billion SME, while apparel imports edged up 2.9 per cent to 25.2 billion SME.
Among top source countries, China remained the largest supplier in October with 3.53 billion SME, up 3.8 per cent monthly and 17.7 per cent annually. India and Egypt showed significant gains, with annual increases of 90.7 per cent and 294.6 per cent, respectively. Vietnam (+30.8 per cent) and Turkey (+6.0 per cent) also contributed to the growth. Conversely, Malaysia and Israel saw declines of 15.8 per cent and 44.3 per cent year-on-year.
OTEXA’s data highlights robust global demand, particularly for textiles, despite variability among sourcing nations.
Myanmar Garment Manufacturers Association (MGMA) along with its member companies and factories plans to participate in India’s largest textile show Bharat Tex 2025, scheduled to be held from February 14-17, 2025 in New Delhi, India.
As per arrangement, MGMA’s members can join a buyer delegation visit. They will be provided with a four-night stay, lunch at the expo, sightseeing agendas and transportation facilities.
A great platform to connect textile buyers with suppliers, Bharat Tex 2025 will showcase India’s complete textile value chain with manufacturing capacities and cutting-edge technologies, its extensive heritage and expertise in the textile industry including handloom fabrics, embroidery and dyeing techniques.
The event will feature comprehensive pavilions exhibiting fibers and yarns, fabrics, apparel and fashion blending traditional and contemporary styles, home textiles, handloom, technical textiles, handicrafts, carpets and intelligent manufacturing.
The textile show will also include CEO roundtables, government-to-government (G2G) meetings, Business-to-Business (B2B) networks and textile tours.
ILO’s RISE for Impact project aims to address the deficits in decent work in India’s cotton supply chain by focusing on the Fundamental Principles and Rights at Work.
Initiated by a premium textile brand, the project highlights suppliers who focus on MNE’s roles in addressing the deficits in decent work. The project also emphasises on brands’ responsibilities in ensuring social compliance across their supply chain, starting at the farmer level.
Through its subsidiary, Cotton Development and Research Association (CDRA), the project partnered with Confederation of Indian Textile Industry (CITI) to host two farmers meets over two months. Between October and November, ILO-trained trainers from CITI-CDRI created awareness on safety and health for cotton farmers organised at Ratlam, Madhya Pradesh.
National and international stakeholders, representing the Indian government, brands and retailers, farm groups, suppliers, industry associations and civil society organisations came together to discuss the importance of decent work and sustainable cotton supply chain during organic cotton accelerator’s sector level event in November 2024.
A producer of textiles using cotton and man-made cellulose fibers like rayon and modal, synthetics, etc, C&T plans to open its third facility in Vietnam this month. This new facility will increase C&T’s total daily dyeing capacity by 150,000 kilograms.
A specialist in knitting as well as dyeing, C&T produces textiles using cotton, man-made cellulosic fibers (MMCF) like rayon and modal, synthetics, etc. The company recorded revenues of approximately $130 million in fiscal year 2024. It serves major retailers such as as Walmart, Target, Gap, Old Navy, Carhartt, Kohl’s, VF Corp. and SPARC Group.
C&T has built its third with cutting-edge solutions for both efficiency and sustainability. Powered entirely on biomass, the facility is also equipped with a rainwater capture and reserve system that improves its water footprint. Additionally, the factory employs eco-friendly dyeing technology. Adding differentiation from the rest of C&T, this plant uses European machinery.
Besides Vietnam, C&T also plans to open a factory in Guatemala in 2026, which will support Hansae’s Western Hemisphere garment production footprint. The company aims to establish establish a sustainable, vertical complex in Michatoya Pacifico Industrial Park to promote its nearshoring operations and enable it to make even quicker turns for its customers.
Exports of special technical textile products from India grew by 6.2 per cent to Rs 2,915 crore from April-November 2024 as against Rs 2,345 crore in the corresponding period last year.
As per Ashok Kumar Malhotra, Mission Director, National Technical Textiles Mission (NTTM), increasing consumption is fuelling the domestic demand for technical textile products in India. Exports of products such as diapers and sanitary napkins are rising, However, to sustain this growth, India needs to promote domestic production and restrict imports, he adds.
The packing technology and geo textiles segments of technical textiles are also growing rapidly. India needs to leverage its strong base of natural raw materials to develop these segments into functional textiles, he adds.
According ot Malhotra, the government has already spent over 50 per cent of the total outlay of Rs 1,480 crore for the Mission. It has earmarked another Rs 500 crore investment for creating the eco system by training the right personnel. These schemes are likely to benefit only those consumers who apply before March 2026, he warns.
Currently, India has 2 centers of excellence for technical textiles. The government plans to release a report in another three months to identify the centers that need to be moved to the next level of activities and construct new ones, he adds.
