FW
Juki America and Coloreel have unveiled an innovative partnership to introduce Coloreel's innovative thread dyeing technology to the sewing industry. Coloreel, renowned for its on-demand thread-dyeing printer, enables Juki sewing machines to access a vast array of precise colors in real-time.
Torbjorn Back, CEO of Coloreel, hails this collaboration as a strategic milestone, expanding their technology beyond embroidery into the broader sewing market. The partnership with Juki America, leveraging their market presence and technical prowess, signifies a significant step forward.
Under the agreement, Juki's distributors gain exclusive rights to market and sell Coloreel for sewing machines across North and South America. The inaugural installation of Coloreel alongside a Juki sewing machine will take place at Fabric Incubator in Arizona, USA, a prominent fashion incubator and garment manufacturer supporting emerging designers.
Masanori Awasaki, President and CEO of Juki America, emphasizes that this collaboration aligns seamlessly with Juki's trajectory. By integrating Coloreel's thread dyeing with their sewing solutions, they are setting a new standard in the industry, unlocking fresh possibilities in stitch design and precise color matching for customers throughout the Americas.
China's luxury market, once stimulated by conspicuous consumption and a booming economy, is undergoing a significant transformation. The current economic scenario, marked by slower growth and a focus on domestic brands, is reshaping consumer preferences and forcing international players to adapt.
The market resizes
The market size of China's luxury market reached an estimated yen 4.7 trillion ($730 billion) in 2023 as per Bain & Company, reflecting a slight decline from the previous year. However, the Compound Annual Growth Rate (CAGR) remains positive, albeit at a slower pace. Experts predict a CAGR of around 6-8 per cent for the next few years, compared to the double-digit growth witnessed in the past decade. This indicates a maturing market with a focus on quality and experience over mere brand logos.
The share of international luxury brands in China is declining. In 2018, they held an 80 per cent market share. However, by 2022, this number dipped to 65 per cent. This trend is projected to continue, with domestic brands like Huili (jewelry) and Anerdam (apparel) capturing a growing portion of the market. Their CAGR is estimated at a robust 10-12 per cent. This decline coincides with the rise of domestic brands. Pushed up by national pride and increasing brand quality, domestic players are capturing a growing share, currently estimated at 30 per cent. Domestic brands like Shanghai Tang and Feng Chen Wang are experiencing significant growth, resonating with a more nationalistic consumer sentiment.
Table: Market share of international vs. domestic luxury brands in China (2018-23)
|
Year |
International brands |
Domestic brands |
|
2018 |
85% |
15% |
|
2019 |
82% |
18% |
|
2020 |
78% |
22% |
|
2021 |
75% |
25% |
|
2022 |
72% |
28% |
|
2023 |
70% |
30% |
Luxury giants like Louis Vuitton, Chanel, and Gucci remain at the forefront of the market. However, their growth rates have tempered. Here's a glimpse at some leading brands and their estimated sales in China (2023).
Table: Leading luxury brands and estimated sales in China (2023)
|
Brand |
Estimated Sales (¥ billion) |
|
Louis Vuitton |
50 |
|
Chanel |
45 |
|
Gucci |
40 |
|
Dior |
35 |
|
Hermès |
30 |
Shifting consumer behaviour beyond the logo
Chinese luxury consumers are evolving. Previously, brand logos and conspicuous consumption were the primary drivers. Now, factors like quality, craftsmanship, and brand storytelling are gaining importance. Today's savvy consumer seeks a personalized experience that aligns with their values. This shift is evident in the growing popularity of:
Sustainable practices: Consumers are becoming more environmentally conscious, demanding transparency and eco-friendly practices from luxury brands.
Cultural resonance: Brands that incorporate elements of Chinese heritage or collaborate with local artists are resonating strongly with consumers.
Digital savvy: Millennials and Gen Z are driving the rise of online luxury purchases, influencing brands to invest heavily in e-commerce platforms.
Navigating the digital wave
Luxury brands are actively adopting strategies to overcome these challenges. They are integrating online and offline experiences with features like virtual try-on and click-and-collect services. Also on their to do list is, engaging consumers through live product launches and influencer endorsements on streaming platforms. Building communities on social media platforms like WeChat to foster brand loyalty and personalized experiences is also one way. Implementing robust return and authentication policies to build trust and encourage online purchases.
China's luxury market is entering a new phase characterized by slower but more sustainable growth. Consumers are becoming more value-conscious, seeking meaningful experiences and brands that align with their evolving preferences. This presents both challenges and opportunities for international and domestic brands alike. By adapting to the changing landscape, embracing digital innovation, and prioritizing a customer-centric approach, luxury brands can navigate the shifting sands of the Chinese market and secure their place in this dynamic space.
India's Man-Made Fiber (MMF) textile industry has been a crucial contributor to the nation's economic growth. However, the export scenario presents a complex picture, with recent trends showing a decline compared to previous years.
Shifting gears from cotton to MMF focus
Traditionally, India's textile exports has centered around cotton. However, recognizing the global shift towards MMF, the government implemented the Production Linked Incentive (PLI) Scheme for Textiles in 2021. This scheme, with an outlay of Rs 10,683 crore ($1.34 billion), aims to incentivize production of MMF fabrics, apparel, and technical textiles. This strategic shift reflects India's ambition to become a global leader in MMF textiles.
Policy initiatives
The government's efforts include schemes like:
Remission of Duties and Taxes on Exported Products (RoDTEP): This scheme aims to make Indian MMF textiles more competitive internationally by reducing export costs.
Production Linked Incentive (PLI) scheme for textiles: This scheme offers financial incentives for companies manufacturing MMF fabrics and apparel, boosting domestic production capacity.
While these policies hold promise, export figures for 2022-23 depict a decline of 15.3 per cent compared to the previous year. This could be attributed to factors like global economic slowdown which economy might have dampened demand for Indian MMF textiles. Also, increased competition as like Vietnam and Bangladesh are emerging as strong competitors in the MMF textile market.
However, the government's initiatives may pay off in the long run. The PLI scheme, coupled with the abolition of anti-dumping duties on key raw materials like PTA and viscose staple fibers, has lowered manufacturing costs. This, in turn, is expected to enhance India's competitiveness in the global MMF market. The ambitious target is to increase MMF textile exports to $11.4 billion by 2030, marking a significant jump from $6.5 billion in 2021-22. Interestingly, the demand for MMF fabrics continues to be strong within the export basket, constituting 39 per cemt of the total exports in Apr-Nov 2023.
Destination-wise dynamics
The US remains the top export destination for Indian MMF textiles, followed by Turkey and Bangladesh. However, even these markets witnessed a decline in imports during 2022-23. Here's a possible breakdown of reasons. The decline in US imports could be due to factors like rising inflation and shifting consumer preferences. Meanwhile, Turkey and Bangladesh might be increasingly focusing on domestic MMF production, potentially reducing their reliance on Indian imports. However, some bright spots have emerged. Sri Lanka's imports of Indian MMF fabrics have grown, indicating potential for market expansion in this region.
The bottomline is, Indian MMF textile industry possesses immense potential. By strategically addressing factors like global competition and continuously refining government policies, India can regain its export momentum. A focus on product diversification, technological advancements, and exploring new markets can further propel India's position as a global leader in MMF textiles.
Underscoring the company’s continued recovery and solid retail performance, the operating profit of Japanese clothing brand United Arrows increased by 5.9 per cent to ¥6.74 billion from ¥6.362 billion in fiscal 2022, indicating effective cost management and operational efficiency. Similarly, the company’s ordinary profit rose by 8.5 per cent to ¥7.486 billion, compared to ¥6.9 billion the previous year.
The company’s total sales increased by 3.2 per cent to ¥134.269 billion (approximately $862.16 million) during FY23 from the previous year's ¥130.135 billion.
Net income attributable to owners of the parent company climbed by 12.3 per cent to ¥4.876 billion from ¥4.341 billion in fiscal 2022.
The company’s net income per share increased from ¥152.37 in fiscal 2022 to ¥175.43 in fiscal 2023. United Arrows maintained strong financial health, with net income as a percentage of net worth edging up to 14.2 per cent and ordinary profit as a percentage of total assets rising to 12.3 per cent. Operating profit as a percentage of total sales saw a modest increase to 5 per cent.
Having experienced a slowdown in 2023, luxury store openings across the world are expected to rebound in 2025. With consumer spending appetite returning during the year, more properties are expected to become available during the year, according to a forthcoming report from international estate agents Savills.
The report recommends, luxury brands expand beyond capital cities and popular leisure destinations, and consider opening stores in emerging affluent regions across China, India, and Dubai.
Anthony Selwyn, Co-Head-Global Retail, Savills, emphasises, widening of the global luxury landscape will uncover new opportunities for retailers, encouraging them to further engage with their customers.
Despite a 13 per cent year-over-year decline in global luxury store openings in 2023, certain regions showed resilience as brands mostly targeted domestic audiences.
Luxury store openings in the Asia-Pacific region increased 31 per cent Y-o-Y, accounting for 17 per cent of global openings, during the year. This growth was led by China with 41 per cent of the global store opening. However, this pace later slowed to 12 per cent Y-o-Y due to weaker demand and fewer real estate opportunities.
Driven by higher tourist spending, a weaker yen and relaxed visa restrictions for the Mainland Chinese tourists, Tokyo and Singapore together accounted for 40 per cent of the store openings in the Asia-Pacific region
New stores across North America also boomed with New York leading with 12 per cent Y-o-Y growth compared to the previous year. This was followed by store openings in Los Angeles and other affluent cities, and leisure resorts around Atlanta, Dallas, Chicago, and Aspen.
However, store openings across lagged with a 17 per cent Y-o-Y decline in openings, primarily due to limited availability in key luxury streets after an 83 per cent surge in 2022.
Marie Hickey, Director-Commercial Research, Savills, attributed the 2023 slowdown to a normalisation after a significant post-pandemic expansion, particularly in China. She noted weaker consumer confidence and spending in China, coupled with availability constraints in prime luxury locations in Europe, North America, and the Middle East. Hickey expects this trend to continue into early 2025.
Despite the challenges, luxury brands continue to optimise their real estate portfolios, particularly in future growth markets in Asia and the Middle East. However, larger luxury groups with mature store portfolios are expected to be more selective in their expansion strategies.
Savills identified cities underserved by luxury brands relative to their market size and wealth. In China, cities like Shenzhen, Hangzhou, and Wuhan offer significant potential due to their growing affluence and lower occupational costs, compared to more saturated markets like Shanghai and Beijing. Other promising markets include Mumbai, Delhi, Jakarta, Bangkok, and Dubai, which all exhibit significant growth and affluence yet remain relatively underrepresented by luxury brands.
Copenhagen Fashion Week has unveiled its lineup for the SS25 season, featuring 46 brands and institutions set to showcase their collections in August 2024. This edition promises to continue the momentum of previous seasons with a diverse range of runway shows and presentations.
Notably, for the first time, the official schedule will merge runway shows and presentations, allowing for more expressive formats and reflecting the evolving creative landscape of the Nordic fashion industry. This change underscores Copenhagen Fashion Week’s position as a leading global fashion event.
Among the highlights is the introduction of Berner Kühl to the CPHFW NewTalent program He joins Alectra Rothschild / Masculina, Stamm, and Rolf Ekroth, who will present his third and final showcase within the scheme. The schedule also includes established names like A. Roege Hove, Jade Cropper, Latimmier, and Rabens Saloner, alongside an exciting mix of new designers over the four-day event.
Sinéad O’Dwyer has been awarded the prestigious Zalando Visionary Award 2024. This annual award recognises exceptional creativity, social impact, and innovation in fashion design. O'Dwyer was chosen for her innovative and avant-garde creations that challenge traditional boundaries, celebrating themes of identity, body positivity, and self-expression.
As part of the award, O’Dwyer will receive a €50,000 prize and support from Zalando for her show production. Her collection will debut at Copenhagen Fashion Week in August 2024, marking her runway debut in Copenhagen. The recognition emphasizes her dedication to diversity and innovation in fashion.
Global leader in athletic apparel and footwear, Adidas has officially entered the burgeoning market of Bangladesh with the inauguration of its flagship store in Dhaka’s Gulshan district. This milestone, involving a 4,000 sq ft retail space, was made possible through a collaboration with DBL Group.
The newly opened store is designed to cater to both dedicated athletes and lifestyle enthusiasts, offering a premium shopping experience. The state-of-the-art store represents a dedicated space for discerning athletes and enthusiasts seeking to elevate their active lifestyles and everyday wardrobes.
The store features a thoughtfully curated collection of Adidas Originals apparel, appealing to those who value a seamless blend of comfort and sophisticated style. From iconic streetwear classics to trend-setting pieces, the store offers patrons can deal ensemble to express their individuality in any setting.
This flagship store marks a significant step for Adidas in expanding its presence in South Asia, aiming to meet the growing demand for high-quality sportswear and fashion in Bangladesh.
ColossusTex continues to lead the fabric production sector, setting new benchmarks in sourcing, marketing, and logistics. With a meticulous approach, ColossusTex simplifies the complexities of the global fabric market, offering customers a superior experience.
ColossusTex excels in sourcing premium Aramid Yarn from India, renowned for its exceptional strength and heat-resistant properties. This high-quality yarn is vital for industries like aerospace and defense, ensuring reliability and confidence in innovation.
ColossusTex unveils Graphene Yarn, revolutionizing fabric crafting. This innovation boasts antibacterial properties inhibiting growth and eliminating odors. Additionally, its far-infrared technology enhances circulation and exhibits impressive antiviral properties, including against SARS-CoV-2, H1N1, and HFMD.
ColossusTex's Sewing Threads meet the highest industry standards, enhancing product quality and durability, whether for fashion or industrial applications.
ColossusTex's advanced infrastructure and global network ensure seamless logistics, minimizing lead times and costs while enhancing customer satisfaction through efficient product delivery.
As an industry leader, ColossusTex simplifies the textile journey with its expertise in sourcing, marketing, and logistics. Elevate your fabric experience with ColossusTex, where excellence is woven into every aspect of the process, delivering unparalleled value to customers worldwide.
In 2023, luxury store openings worldwide experienced a slowdown, dropping by 13 percent says a report by Savills, a global estate agency. However, prospects for 2025 appear promising as more properties become available and consumer spending rebounds.
The report advises luxury brands to explore beyond traditional locations like capital cities and leisure destinations, suggesting opportunities in affluent regions like China, India, and Dubai.
Anthony Selwyn, Co-head of Global Retail at Savills, emphasized the potential for growth, urging brands to seize opportunities in an expanding luxury landscape. Despite the overall decline, certain regions saw increased activity. The Asia-Pacific region witnessed a notable 31 percent rise in luxury store openings, with China dominating despite a slowdown in activity.
North America also experienced growth, particularly in cities like New York and Los Angeles. However, Europe lagged behind with a 17 percent decline, attributed to limited availability in prime luxury locations following an 83 percent surge in openings in 2022.
Marie Hickey, director of Commercial Research at Savills, attributed the slowdown to the normalization of markets following the pandemic-induced surge in store expansions, especially in China.
Despite short-term challenges, Hickey noted an enduring appetite for luxury brands to optimize their real estate portfolios, especially in emerging markets like Asia and the Middle East.
The report identified cities such as Shenzhen, Hangzhou, and Wuhan in China, along with Mumbai, Delhi, Jakarta, Bangkok, and Dubai, as underserved markets ripe for luxury store openings due to their size, growing affluence, and relative lack of luxury brand presence.
Overall, the report underscores the resilience of the luxury retail sector and the importance for brands to strategically expand into emerging markets to capitalize on future growth opportunities.
Edited has unveiled its Education Partner Program, aiming to integrate its Retail Intelligence Platform into educational curriculums worldwide.
This initiative empowers students and educators by providing access to real-world retail data, fostering practical skills for the dynamic fashion industry.
Sheng Lu, Director of Graduate Studies at the University of Delaware's Fashion and Apparel Studies program, lauds the partnership, highlighting how Edited transforms learning experiences.
By leveraging Edited's analytics tool, students gain insights into industry trends and business strategies, honing their analytical prowess.
CMO Shellie Vornhagen underscores the program's significance, emphasizing Edited's commitment to nurturing future retailers.
Through collaborations with educational institutions, Edited seeks to equip students with essential skills for thriving in retail and fashion careers, bridging the gap between academia and industry.
