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Over the past month, most global benchmark cotton prices have decreased. Set to expire soon, the July NY/ICE futures contract dropped from 77 to 72 cents per pound. However, a surge in the second half of May saw July prices rise as high as 82 cents per pound. Similarly, the December NY/ICE futures contract fell from 75 to 72 cents per pound, despite a late May rally that brought prices up to 79 cents per pound, according to Cotton Incorporated.
The A Index also declined from 86 cents to 83 cents per pound. The Chinese Cotton Index (CC Index 3128B) slightly decreased from 104 to 102 cents per pound in international terms, and from 16,500 to 16,200 RMB per ton in domestic terms. The exchange rate of the RMB remained relatively stable against the dollar, near 7.24 RMB/USD, Cotton Inc reported in its Monthly Economic Letter - Cotton Market Fundamentals & Price Outlook for June 2024.
In India, spot prices for Shankar-6 quality cotton fell from 88 to 85 cents per pound, with domestic values decreasing from Rs 57,500 to Rs 55,900 (~$688 to $669) per candy. The rupee held steady around Rs 83 per US dollar. Meanwhile, Pakistani spot prices remained stable near 86 cents per pound, with domestic values constant at 19,700 PKR per maund. The PKR was steady around 278 PKR/USD.
Lenzing Group, a global leader in wood-based specialty fibers, has announced a partnership with renowned fashion brand Diane von Furstenberg (DVF) to integrate Tencel and LenzingEcoverofibers into DVF’s fashion collections. These fibers, derived from sustainably managed wood sources, offer resource-efficient production and are certified with the EU Ecolabel for environmental excellence. This collaboration emphasizes both companies’ dedication to sustainability and responsible fashion.
DVF’s iconic designs, known for empowering women, now feature Lenzing’sfibers, enhancing the brand’s aesthetic with sustainable materials. The partnership has already debuted in DVF’s online store and global locations, with new collections launching from Q3 2024.
The 2024 Summer collection, “The Festival of Color,” highlights vibrant garments inspired by global festivals, incorporating LenzingEcoverofibers alongside silk, linen, and cotton. This collection underscores the versatility and environmental benefits of Lenzing’sfibers, known for their rich colors, breathability, and softness.
Jessie Chen, DVF’s Global Strategic Partner and CEO of Greater China, expressed excitement about the partnership, stating it reflects DVF’s commitment to fashion that empowers women and contributes positively to the world. Harold Weghorst, Lenzing’s Senior Director of Marketing and Branding, emphasized the collaboration's role in promoting sustainable fashion, noting that TencelLyocell and LenzingEcoverofibers significantly reduce carbon emissions and water consumption.
This collaboration between Lenzing and DVF exemplifies a shared vision for a more sustainable fashion industry, merging style with environmental responsibility. New flagship collections featuring these fibers will be available from Q3 2024, with further details to follow.
Valued at $202.64 billion in 2023, the global sports apparel market is projected to grow at CAGR of 5.2 per cent annually to reach a value of $302.98 billion by 2032.
As per a report by ABNewswire, designed for physical activity and performance, sports apparel provides comfort, flexibility, and performance enhancement to athletes and sports enthusiasts. This category includes jerseys, shorts, pants, jackets, socks, and shoes, tailored to the specific demands of different sports and athletic pursuits. The materials used to makethese sports apparel are lightweight, breathable, moisture-wicking, and stretchable, optimising comfort, mobility, support, and durability.
Increasing global health consciousness is driving the demand for specialised clothing that enhances not just performance but also comfort during physical activities. Blurring the lines between sportswear and casual wear, the rise of athleisure wear, has made sports apparel more versatile and appealing to a broader consumer base.
This trend is being further fueled by social media and digital platforms, where celebrities and influencers showcase their active lifestyles, inspiring others to adopt similar habits. The popularity of athleisure wear, which combines performance-oriented features with fashionable designs, has grown as a result. The COVID-19 pandemic has also accelerated the adoption of home-based fitness activities and outdoor recreational pursuits, increasing the demand for versatile, weather-resistant sports apparel suitable for various conditions.
Aggressive advertisements featuring bold messaging, visuals, and strategic placement are a powerful tool for brands to penetrate the market. These ads highlight the functionality, style, and performance of apparel, creating urgency and desire among consumers. Celebrity endorsements further enhance marketing strategies by aligning brands with athletes, fitness influencers, and celebrities who embody values of athleticism, excellence, and success. These endorsements lend credibility and aspirational appeal to the apparel line, making consumers more inclined to purchase.
North America is expected to experience significant growth in the sports apparel market during the forecast period. On the other hand, expenditure on sports apparels by the European Union is expected to rise.
Meanwhile, a large young population and high consumption rates in countries like India will drive the growth for sports apparels in the Asia Pacific region. Growth in this region will be driven by a rising demand for clothing items such as t-shirts, pants, joggers, and shorts
During the forecast period, the global sports apparel market is expected to be dominated by shorts and tights. Popular among men for various sports activities, these itemsprovide protection and support besides reducing painful rubs and burns. Tights also improve blood flow, delivering more oxygen to muscles, which is crucial for athletes. They support and stabilise muscles during training, speeding up muscle repair and reducing post-workout fatigue.
Recognising the sector’s significant role in the regional economy and its substantial employment potential, the Tamil Nadu government has launched a comprehensive skill development program in textiles through the state's Skill Development Corporation. The initiative aims to train young people with industry- relevant skills across various aspects of textile manufacturing and production.
As per government officials, including a detailed curriculum combined with hands-on training, the program will offer participants practical experience and valuable insights to enhance their career opportunities in the textile sector. Available to both women and men, the training will be conducted by the renowned South India Training and Research Society (SITRA).
The program reflects the state government’s commitment to empower youth and enhance industry’s competitiveness, states the state textile minister. A cornerstone of the state's economic development, the textile industry contributes significantly to employment generation and export earnings in Tamil Nadu.
Designed to strengthen the industry's workforce, the skill development program providesvarious upskilling and career advancement opportunities to the region's youth.
Giving a huge boost to the domestic industry, India’s textiles and apparel exports rose by 9.7 per cent in May this year compared to the same period in 2023.
As per a report by the Confederation of the Indian Industry (CITI), India’s textile and apparel exports increased to $3,089.19 millionduring the month, from $2,816.1 million registered in the corresponding month of the previous year. Textiles exports rose by 9.59 per cent Y-o-Y while apparel exports increased by 9.84 per cent.
However, India’s import of textile yarns, fabrics and made-ups declined by 0.45 per cent during April-May 2024 compared to the same period last year. Apparel imports fell by 16 per cent in April 2024 compared to April 2023. From Jan-Apr’24, India’s apparel imports declined by 18.4 per cent compared to corresponding period last year.
According to ChandrimaChatterjee, Secretary General, Confederation of Indian Textile Industry, a slight improvement in global demand has spiked India’s textile and apparel exports.
Bangladesh and China continued to be the primary destinations for garment imports by India. However, apparel imports by India have been on a decline due an increased demand from Western markets and higher production costs in Bangladesh. Whether this trend continues, remains to be seen.
Terming the newly unveiled federal budget as ‘extremely regressive, All Pakistan Textile Mills Association (APTMA) warns that it may pose a threat to the textile sector and its exports.
Setting ambitious revenue targets for the fiscal year ending June 2025, the budget was presented by Muhammad Aurangzeb, Finance Minister last week. A total outlay of Rs 18.87 trillion ($68 billion) was earmarked in it for the year.
A few of the key objectives outlined in the budget include, reducing the public debt-to-GDP ratio to sustainable levels and improving Pakistan’s balance of payments position, according to the budget document.
The budget also aims to boost non-tax revenue, such as petroleum levies by 64 per cent, while sales tax on textile and leather products, as well as mobile phones, is expected to rise by 18 per cent.
However, the new budget could have ‘dire consequences’ for employment, external sector stability, and overall economic and political stability in Pakistan, warn textile mill owners.
The tax rate on exports has increased from a 1 per cent final tax regime to a staggering 29 per cent on profits, plus a 2 per cent advance tax on export proceeds. This excessive taxation eliminates incentives for export-oriented activities and drains liquidity from the sector as the 2 per cent advance tax will soak up all liquidity from low-margin high-volume industries like textile, adds APTMA.
The 18 per cent sales tax and turnover tax might erode the competitiveness of local manufacturers by reducing domestic value addition in exports and worsening the trade balance, the association further states.
After peaking at $19.3 billion in FY2021-22, Pakistan’s textile exports fell to approximately $16.5 billion in FY2022-23, with a similar downward trend continuing throughout FY2023-24, with monthly exports consistently falling over $600 million below the installed capacity.
This drastic decline highlights the urgent need for governmental intervention to support the sector. No measures have been proposed to resolve the industry-wide energy crisis, APTMA notes.
APTMA points out , rising energy costs, high-interest rates, and a dysfunctional sales tax refund mechanism had pushed many firms to the brink of bankruptcy. The association warns of a severe deterioration in both foreign and domestic investment prospects and destabilisation of the external sector and overall economic growth in the coming years if the government fails to o reconsider the FY25 budget and implement measures to address the prohibitive energy costs, rationalise taxation, and provide a conducive business environment to avert an imminent collapse of the textile sector.
India's cotton industry, a leader for years, finds itself under the watchful eye of the international trade fraternity. While acknowledged as a major player, its future trajectory remains a subject of debate.
India boasts of several advantages. Fertile land, ideal climatic conditions, and a long history of cotton cultivation, make it a natural producer, explains Arjun Khanna, President of the Cotton Association of India (CAI). This translates to a diverse range of cotton varieties, catering to various market demands. As per a report by the Textile Ministry of India, India is the world's largest cotton producer, accounting for roughly a quarter of global production. This on ground means a reliable domestic supply chain, a key factor for international buyers. And as veteran cotton trader Amitabh Roy states, "The sheer volume of Indian cotton is a magnet. Buyers know they can find the quantity they need here."
Unravelling yarn
However, challenges loom large. Yields in India are significantly lower compared to major competitors like the US and China. A 2023 report by the International Cotton Advisory Committee (ICAC) highlights lower yields compared to major competitors like China and the US. This inefficiency is compounded by fragmented landholdings and inadequate infrastructure, leading to higher production costs. As textile industry analyst Lisa Wang observes, while India has the raw material, translating that into competitive pricing remains a hurdle.
India has a growing niche in organic cotton production. This sustainable alternative is gaining traction internationally. The ‘Sustainable Better Cotton Initiative’ (BCI) reports a significant rise in Indian BCI cotton production. However, the lack of standardized certification processes and limited processing facilities create bottlenecks.
Weaving a brighter future
The future of the Indian cotton industry hinges on its ability to address these challenges. Investment in research to improve yield and fiber quality is crucial. Additionally, widespread adoption of sustainable practices is essential to cater to a growing global demand for eco-conscious textiles. Modernization, quality focus, and a commitment to sustainability are the threads needed to weave a brighter future. Government initiatives like the ‘Textile Mission’ aim to modernize infrastructure and improve farm productivity.
The international trade fraternity views the Indian cotton industry with a mix of admiration and apprehension. While the potential is undeniable, overcoming existing hurdles is crucial to realizing its full potential. Through focused investments in infrastructure, improved farm practices, and a commitment to sustainability, India's cotton industry can weave a successful future.
Jeanologia has been awarded the title of 'Best Business Project' at the first Spanish Fashion Academy Awards, held on June 13 at Madrid's TeatroFernan Gomez Centro Cultural de la Villa. This accolade celebrates the company's leadership in sustainable and technological innovations within the fashion industry.
At the gala, which honored Spanish fashion talent and commemorated the 129th anniversary of iconic designer Cristobal Balenciaga, Jeanologia stood out for its three-decade-long commitment to revolutionizing textile production. The company has drastically reduced water and energy consumption and eliminated harmful chemicals, setting new standards in eco-friendly fashion.
Chosen from over 400 nominees by 129 founding academics, Jeanologia's global impact and visionary approach were unanimously recognized. CEO Enrique Silla accepted the award, a statuette by Helena Rohner inspired by Balenciaga’s headdress, emphasizing the importance of creating beautiful products sustainably.
Silla emphasized that fashion loses its beauty if it is created in a harmful way, noting that Jeanologia's technologies allow designers to produce beautiful garments while being environmentally responsible. He also underscored Spain's leadership in sustainable fashion technologies and expressed appreciation to the Spanish Fashion Academy for recognizing the team's contributions, acknowledging the convergence of fashion, the environment, and science.
Jeanologia's win marks a significant milestone, reinforcing its dedication to a future where fashion embodies beauty, innovation, and environmental responsibility.
In October 2023, the Karl Mayer Group launched a new production company in Romania, aiming to bolster its resilience and competitive edge. Named Karl Mayer Romania SRL, the facility will commence operations in rented premises in Baia Mare from February 2024, with plans to eventually relocate to a dedicated factory nearby.
Patrick Mack, appointed as General Manager in May 2024, brings valuable experience to the role, having previously established a factory for another foreign company in Romania. He will collaborate with Manfred Reinhold, another key leader at the subsidiary. Mack's strategic vision focuses on integrating the new site seamlessly into Karl Mayer's global manufacturing network.
Patrick Mack emphasized the strategic importance of Karl Mayer Romania, expressing his goal to build a facility that upholds the company's high standards, enhances overall performance, and embodies its brand values. He plans to leverage German quality, Romanian ingenuity, and efficient processes to create a world-class production environment, fully backed by the Karl Mayer Group.
Growing concerns over unsold inventory, sparked by a decline in consumer spending, are leading to unprecedented discounts being offered by a few luxury labels in the Chinese market.
From this month, the price of a mall beige crocodile-pattered version of Balenciaga’s iconic hourglass handbag has been reduced by 35 per cent to $1,947on Alibaba Group Holdings’s the mainland’s dominant e-commerce platform, Tmall. This price is lower than those listed on the brand’s official websites globally and major luxury platforms like Farfetch.
A part of French luxury giant Kering SA, Balenciaga averaged a 40 percent discount on sale items during three of the first four months of 2024. The brand has also more than doubled its number of discounted products on Tmall, with these items accounting for more than 10 percent of its inventory on the platform from January to April. Last year, Balenciaga only offered discounts in January at an average of 30 percent and had no markdowns at all in the first four months of 2022.
Last year, online orders accounted for nearly half of China’s luxury revenues, according to consultancy Yaok Group. A majority of these orders were captured byTmall.
The decline in demand from the Chinese market has already impacted luxury earnings. Kering warned in April of a potential first-half profit drop of up to 45 percent, driven by weak Gucci sales in China. Burberry’s stock has more than halved in the past year due to weak demand in China and the US. Chanel also cautioned that conditions are becoming more challenging, even at the higher end of the market.
Additionally, Japan’s weak yen is contributing to the slowdown in sales in China, as consumers seek the lowest prices available by shopping in Japan.
