21 July 2023, Mumbai

India's T-shirt exports have experienced a setback, decreasing by approximately seven percent over the past six years. 

In contrast, Bangladesh and Vietnam have seen remarkable growth in their T-shirt exports, outperforming India in this segment. 

What all you need to know

Quick Backdrop

Both Bangladesh and Vietnam have leveraged their strengths to capture global markets; Bangladesh's T-shirt exports surged by 48 percent from 2017 to 2022, and Vietnam's exports grew by 34 percent during the same period. 

Global T-shirts market valued at $185.4B (Sep 2021). India's T-shirt exports declined by around 7% in six years. Meanwhile, Bangladesh and Vietnam saw impressive growth, capitalizing on strengths and capturing global markets. India's challenges include higher manufacturing costs, while Vietnam excels in premium T-shirt production.

The global T-shirt market is expected to grow, presenting opportunities for Indian exporters to focus on customized top-wear with trendy designs.

The Challenges Faced by India

India is facing challenges due to relatively higher T-shirt manufacturing costs, which have impacted its export competitiveness. 

Despite price reductions, Indian T-shirt exporters have not been able to achieve significant export growth. In contrast, Vietnam has established itself as a major player catering to high-end T-shirts for global sportswear brands like Nike and Adidas. 

One of the key factors contributing to this difference is that Vietnam possesses the necessary raw materials, expertise, and infrastructure to produce premium T-shirts, which India lacks.

Positive Outlook for T-shirt Consumption and Exports

Despite India's recent struggles, the global T-shirt market is expected to maintain an upward growth trend in the near term. 

This positive outlook is driven by the ongoing global economic recovery, urbanization, rising population, and increasing income levels. 

From January to October 2022, India's exports of knitted T-shirts grew by ten percent, with significant increases in exports to the US and various European countries.

Customized Top-wear on the Rise

Globally, the demand for customized clothing is on the rise, with T-shirts being the most popular item, owned by over 51 percent of fashion-conscious consumers. 

Smart and bold quotes, bright colors, and logos on the front are trending for both men and women. 

Looking ahead to summer 2023, tie-dye, shirt pockets, and portrait photography are expected to be emerging fashion trends for T-shirts, shirts, and tops.

India's Market Competitiveness

India and Bangladesh have achieved the highest growth rates in T-shirt production among major producing countries, mainly due to their export-oriented production methods with the advantage of cheap labor costs. 

While China remains a key global center for T-shirt production, other Asian countries, including India and Bangladesh, are gaining traction as production shifts to the region.

In Summary

India faces challenges in its T-shirt exports due to higher manufacturing costs, Labor costs rising, innovation lagging, and Market shifts while Bangladesh and Vietnam continue to excel in the market. 

However, the global T-shirt market is projected to grow, offering potential opportunities for Indian exporters. 

To thrive in this competitive landscape, businesses should focus on meeting customer demands for customized top-wear with trending designs and concepts.

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18 July 2023, Mumbai

The global kids' apparel market is projected to grow from USD 198.80 billion in 2023 to USD 318.34 billion by 2030, driven by social media influence, demand for stylish clothing, and parental awareness.

Over the forecast period, the market is expected to achieve a compound annual growth rate (CAGR) of 6.96%. 

What all you need to know

Quick overview

Cotton remains the preferred fabric, and the market has shown resilience during the COVID-19 pandemic. The impact of traditional and digital media on children's well-being should be carefully examined.

The casual clothing segment and the boys' segment are expected to dominate, while offline distribution channels remain significant.

Key players are implementing growth strategies to enhance their market presence. Asia Pacific and North America are the major growth regions, with India experiencing substantial growth due to changing demographics.

Invest in Stylish and High-Quality 

This expansion is primarily attributed to the increasing presence of children and tweens on social media platforms, influencing parents to invest in attractive, comfortable, and high-quality clothing for their kids.

However, it is important to recognize that there are also risks and potential drawbacks associated with these newer forms of media, which impact the well-being of children and teenagers.

Cotton Dominates

Cotton remains the preferred fabric for kids apparel, valued for its comfort, lightweight nature, ease of washing, and color retention. As parents prioritize these qualities, the popularity of kids clothing is set to soar, further fueling market growth.

COVID-19 & beyond

A comprehensive analysis of key market segments and recent trends is provided in the report, along with an examination of the driving and restraining factors that have shaped the market. 

Additionally, the report delves into the impact of the COVID-19 pandemic, highlighting the negative effects of transport and travel restrictions on market growth. 

However, the industry has exhibited resilience through measures such as automation, sanitation protocols, and production adjustments, paving the way for recovery in the post-COVID-19 phase.

The Impact of Social Media and Changing Fashion Trends on Children's Apparel Industry

Growing Parental Awareness and Demand for Fashionable Children's Clothing

In today's digital era, the children's apparel industry has experienced significant transformations due to the influence of social media and evolving fashion trends. 

Parents are now more conscious of their children's clothing choices, resulting in an increased demand for trendy and stylish garments.

Examining the Effects of Traditional and Digital Media on Children and Adolescents

Over recent years, children and adolescents have become deeply immersed in a diverse range of media formats, encompassing both traditional and digital platforms. 

While earlier research has highlighted health concerns and negative consequences associated with traditional media like television, there has been a notable surge in the utilization of digital media, including interactive and social platforms.

Evaluating the Benefits and Risks of Digital and Social Media for Young Individuals

Evidence-based studies have shed light on numerous advantages associated with the use of digital and social media among young individuals. 

These benefits include opportunities for early learning, exposure to novel ideas and knowledge, heightened social interactions and support, and improved accessibility to information. 

Nevertheless, it is crucial to acknowledge that these newer forms of media also entail risks and potential drawbacks that can impact the well-being of children and teenagers. 

Casualisation

The casual clothing segment is expected to dominate the market, owing to its high comfort and lightweight nature. 

In terms of end-users, the boys segment is projected to lead, driven by the rising birth rate of newborn boys. 

Furthermore, kids aged above 10 years are displaying a preference for stylish and trendy apparel, contributing to the market growth in this segment. 

Offline distribution channels are anticipated to hold a significant market share, as offline stores expand to meet the growing demand for kids' apparel.

Snapshot

Prominent players in the market, such as Nike, Burberry, and Carter's, are implementing various growth strategies, including store launches, partnerships, and business expansions, to enhance their market presence. 

For instance, Children's Place introduced Sugar & Jade, a new tween apparel, accessories, and footwear brand, featuring five apparel and accessory collections in November 2021.

Helicopter view

Growing Kids Apparel Market to Reach USD 318.34 Billion by 2030, Fueled by Social Media Influence and Comfort-driven Demand. 

Asia Pacific is poised to dominate the market, propelled by increased consumer spending on children's clothing, growing disposable income, improved childcare services, and a high standard of living. 

The North American market is also expected to experience strong growth due to parents' escalating concerns about their children's health and safety.

The market for Indian kidswear (0-14 years) was valued at US$ 16.4 billion in 2020, and it is expected to increase at a CAGR of 14.5 percent between 2021 and 2026. 

According to a survey by IMARC Group, the industry is largely driven by India's growing number of nuclear and dual-income homes.

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14 July  2023, Mumbai

However, the introduction of standardized sizing systems in the 1940s led to a shift towards ready-to-wear clothing, with the fashion industry producing mass-produced garments in a range of sizes.

What all you need to know

Prologue

1940s standardized sizes caused a move to personalized clothing, considering sustainability. Luxury and affordable brands fuel the custom market.

Indian startups drive the trend, while technology transforms it.

The Shift from Custom-Made to Ready-to-Wear Clothing; The concept of custom-made clothing may seem exclusive to the wealthy and those with access to couture ateliers, but not too long ago, it was the standard way of buying clothes for many people. 

Response to Environmental and Ethical Concerns

While this standardized approach made fashion more accessible and affordable, it also resulted in environmental issues and unethical labor practices associated with fast fashion.

As a result, consumers are now becoming more aware of the environmental impact of their fashion choices and are embracing made-to-measure clothing as a sustainable alternative.

Redefining Style 

According to research and analysis firm Proficient Market Insights, the custom clothing market is expected to grow at a compound annual growth rate of 9.56% between 2022 and 2027.

This growth is driven by both luxury brands and affordable retailers recognizing the demand for custom-made clothing. 

While traditional luxury labels like Ermenegildo Zegna and Ralph Lauren have long been associated with custom clothing, more accessible brands like H&M, Massimo Dutti, Mango, Zara, and Guess have also entered the market.

Market Growth; Europe currently holds the largest market share for custom clothing, followed by North America and China. 

Coats are the most popular product category, and both physical stores and online platforms are significant distribution channels.

Shift towards bespoke
The rise of bespoke fashion exemplifies the shifting perspectives on style and the growing demand for individuality and sustainability.

With an increasing awareness of the detrimental effects of fast fashion on the environment and workers, consumers are actively seeking alternatives that align with their values.
Embracing Personalized Fashion
Distinguishing itself from its made-to-measure counterpart, bespoke fashion involves the meticulous skills of pattern makers, seamstresses, and other custom clothing experts.

These knowledgeable artisans produce clothing samples that are then examined, refined, and approved by fashion designers, ensuring the highest level of quality and personalization.

The Custom Clothing Market in India

In India, custom-made clothing has always been a part of the culture, with individuals preferring tailored garments over ready-to-wear options. 

The rise of fashion startups in India has further fueled the demand for custom clothing, with these companies focusing on creating memorable shopping experiences and leveraging technology to offer personalized services. 

The pandemic has accelerated the adoption of digital solutions, such as virtual fitting rooms and augmented reality, to enhance the customer experience and enable contact-free shopping.

Custom Clothing Sector

While the demand for formal shirts and ties may decline, the market for well-made tailored suits and separates is expected to continue growing. 

The pandemic has led to a shift towards casual attire, but there is still a demand for tailored suits for special occasions. 

Designers are also introducing innovative styles and silhouettes, including anti-fit designs and sporty layering, to cater to changing fashion preferences.

The Impact of Technology

The use of technology, such as 3D modeling and AI-powered data analytics, is revolutionizing the custom clothing sector. Companies are leveraging these tools to accurately estimate customer demand, provide virtual try-on experiences, and create personalized garments based on individual measurements and style preferences. 

The Role of Technology; Digital marketplaces are also emerging, connecting buyers with designers, tailors, and manufacturers to offer a wide range of customization options.

The Global Trend Towards Custom-Made Clothing and Its Future Outlook

The demand for custom-made clothing is on the rise globally, driven by factors such as sustainability, individuality, and the desire for a better fit. 

Fashion brands are embracing new technologies to offer personalized experiences, and the market is expected to continue growing in the coming years for "Tailored Suits and Innovative Styles".

Custom Clothing Market on the Rise as Consumers Embrace Personalized, Environmentally-Friendly Apparel.

Pioneering Sustainable Luxury
In this realm, brands like Careste have successfully integrated sustainability with the essence of luxury bespoke fashion.

By combining the finest materials and employing skilled craftsmen, Careste embodies a commitment to both eco-consciousness and exceptional craftsmanship.

Bespoke fashion, characterized by its handmade craftsmanship and thoughtfully sourced sustainable materials, has emerged as a favored choice.

Sustainable, unique, and well-fitting custom fashion thrives globally.

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20 July 2023, Mumbai

Indian view; Cotton and cotton blend yarns are widely preferred for comfortable garments for adults, baby clothes, and household items across the globe, making cotton a crucial raw material in the textile industry. 

India, particularly in the Central zone encompassing states like Gujarat, Maharashtra, and Madhya Pradesh, produces excellent cotton. 

Gujarat stands as the highest cotton producer, and Mumbai serves as the largest center for the cotton textile industry.

What all you need to know

Datapoint

The global cotton yarn market has a substantial value, estimated at $62.50 billion in 2022, and is projected to reach $66.91 billion this year. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.19 percent, reaching $108.99 billion by 2030.

China's Declining Cotton Yarn Import Impacts Global Yarn Market; According to the latest data from the AI-driven market intelligence platform IndexBox, China continues to lead global yarn imports. 

In 2022, China's cotton yarn imports amounted to a staggering $7.241 billion, thanks to its vast and diverse market catering to both domestic and international demands. 

China's advantages include a large skilled labor force, a thriving e-commerce sector, advanced manufacturing technologies, and an extensive distribution network, making it a dominant player in the global cotton yarn market.

Bangladesh position

Bangladesh holds the second position in global trade, rapidly growing as an import market with imported cotton yarn worth $1.176 billion. 

The country relies on imported yarn to meet its domestic demand, benefiting from its large population driving the demand for clothes and household items, low labor costs, and a favorable investment climate.

Global view

Turkey ranks third in cotton yarn imports, with a value of $1.057 billion in 2022. 

It boasts the most advanced textile industry in the European region, dating back many centuries, and imports cotton yarn from countries like the US, India, and China to cater to both its domestic consumption and international markets.

Honduras secures the fourth position globally with imports worth $673.065 million. 

Its geographical proximity to the US and preferential trade agreements, like CAFTA-DR, have fueled the textile industry's growth, despite limited domestic production.

Italy stands as the fifth-leading European import market for cotton yarn, importing worth $526.369 million in 2022. 

Italy's market focuses on high-end fashion and luxury goods for cotton products, serving affluent consumers with niche markets and value-added products.

Trade dynamics

The global cotton yarn trade depends on various factors, including demand for textile products, strength of the textile industry, production capacity, and cost-effectiveness. 

Cotton blends and pure cotton yarns are significant drivers in the global trade, with various blends used for different apparel and home textile applications.

Challenging demand environment

However, the cotton market is currently facing challenges due to declining consumption worldwide. 

Major customers of cotton, such as China, India, and Pakistan, have reduced their cotton requirements, impacting the industry. 

Factors such as declining supplies, lower profit margins for spinning mills, and higher inflation have contributed to this trend.

China Seeks Self-Sufficiency in Yarn Supply

China's declining cotton yarn import has caused significant changes in the global yarn market.

While it has led to a short-term slowdown in demand for imported yarn due to sluggish market conditions and rising cotton prices, in the long term, China may become self-sufficient in yarn supply. 

This shift may open opportunities for certain varieties of fabrics and value-added products in the Chinese market.

China & beyond

The impact of China's declining yarn import is also felt in India and Pakistan, as Vietnam gains market share due to its competitive pricing. 

To sustain growth, Indian yarn manufacturers are adopting strategies such as increasing investments in downstream industries to boost domestic yarn consumption and diversifying the market mix to reduce dependence on the Chinese market. 

Cotton's global significance; India's advantage; China's impact.

The global cotton yarn market plays a crucial role in the textile industry, with cotton and cotton blend yarns widely favored for comfortable garments and household items worldwide. India, particularly in the Central zone encompassing states like Gujarat, Maharashtra, and Madhya Pradesh, excels in cotton production, and Gujarat stands as the highest cotton producer, while Mumbai serves as the largest center for the cotton textile industry.

Quick Gist

The global cotton yarn market had an estimated value of $62.50 billion in 2022, projected to reach $66.91 billion this year, and is anticipated to grow at a CAGR of 7.19 percent, reaching $108.99 billion by 2030.

China remains the leading global yarn importer, with $7.241 billion worth of cotton yarn imports in 2022, fueled by its vast market and distribution network. Bangladesh ranks second in imports, benefiting from a large population and a favorable investment climate.

Helicopter view

However, the cotton market is facing challenges due to declining consumption worldwide. Major customers like China, India, and Pakistan have reduced their cotton requirements, affecting the industry.

Factors such as declining supplies, lower profit margins for spinning mills, and higher inflation have contributed to this trend.

China's dominance; China's declining cotton yarn imports have caused significant changes in the global yarn market.

While it has led to a short-term slowdown in demand for imported yarn, China may become self-sufficient in yarn supply in the long term, opening opportunities for certain varieties of fabrics and value-added products in the Chinese market.

This shift is also affecting India and Pakistan, as Vietnam gains market share due to competitive pricing. To sustain growth, Indian yarn manufacturers are investing in downstream industries and diversifying their market mix.

Landscape

The recent market volatility raises concerns and may affect the global supply chain. India needs to address tariff barriers and establish an efficient global supply chain to retain its position.

Currency fluctuations have affected India's cost advantage, giving China a pricing advantage in the market, leading to global buyers negotiating prices. Uncertainty remains a key challenge for the cotton yarn trade.

Uncertainty is the new certainty

The recent volatility in the market is a cause of concern, and it may affect the global supply chain. 

To retain its position, India needs to address tariff barriers and establish an efficient global supply chain. 

The appreciation of the Indian rupee and the depreciation of the Chinese yuan have affected India's cost advantage and given China a pricing advantage in the market. 

As a result, global buyers have started negotiating prices.

Latest Textile Events

17 July  2023, Mumbai

Social shopping isn’t exactly new as an e-commerce technology that uses a shared social network of friends and contacts.

It replicates an individual’s shopping experience of being with friends or those who influence their choices – suggestions, recommendations, validations – all real-world influences, now online.

What all you need to know

Preview

Social shopping revolutionizes e-commerce by creating a shared network of friends and influencers that replicate real-world shopping experiences, now online. It empowers fashion retail through metrics and engages users on platforms like Facebook, Instagram, and TikTok.

This shift blurs the line between online and offline shopping, catering to evolving consumer expectations and enabling informed decision-making.

Digital adoption; Collaboration, technology adoption, and personalized touchpoints enhance the online-offline experience, while social commerce drives engagement, seamless shopping, and trend influence. It's a paradigm shift for fashion retail, making shopping exploratory, bespoke, and enjoyable. 

Technology is an enabler

For fashion retail, this technology has been very empowering as these come with metrics required to capture impressions, engagements, reach, and sales, all at a go.

Facebook, TikTok, Instagram, Snapchat, Twitter, and Pinterest among others continue to engage users with relatable content, making them spend hours scrolling through their feeds. 

The Emergence of Social Media

And as the just released ‘The State of Fashion 2023’ McKinsey & Company and The Business of Fashion report suggest, this network of social platforms is where fashion retail can directly engage in a personal way, even more than their physical stores. 

In a joint survey conducted by Magento and Hootsuite, almost 6 in 10 consumers claimed that one-quarter of their online shopping is influenced by Facebook and YouTube.

The report highlights, nearly 90 percent of APAC’s population surfing through mobile commerce, brands, and retailers jumped into what is now called Social Commerce. 

According to eMarketer, the US social e-commerce market skyrocketed by almost 38 percent to $26.77 billion in 2020 and is expected to surpass $50 billion annually by 2023. Fashion retail couldn’t have found a better platform.

Instagram emerges best social commerce platform for fashion retail

Instagram is indeed the ideal platform for fashion retail’s social commerce. This visual-rich app ticks all the right visual boxes which is why 70 percent of online shoppers globally rely on Instagram for product discovery and it helps that Instagram has over a billion active users. 

Instagram Live Shopping launched in 2020 leverages influencers recommending products live and in real time.

Living in a digital era

All-time favorite Facebook had 3.45 billion active monthly users as per statistics at the end of 2021. Launched in 2020, Facebook Shops actually helped small and medium size businesses to relocate from brick-and-mortar to online shop fronts for greater outreach and traffic. 

This fully-customizable feature has been a boon to many small fashion retailers.

Relatively new player Tik Tok was initially met with a certain amount of disdain from fashion retail, as they felt this was not their image platform. 

Well, that’s history now as more and more brands are jumping into the Tik Tik bandwagon. 

TikTok generation

The catchphrase “Tik Tok made me buy it” sealed the deal for brands, particularly those in fashion retail. TikTok’s USP lies in making unknown entities that include brands go viral overnight. 

Quick to seize the day, Tik Tok started offering shoppable posts, live-stream shopping capabilities, and opportunities for influencer marketing. Brands also have the option to build a shoppable storefront within TikTok through the Shopping tab. 

TikTok users can now add the shopping tab to their business profiles, where they can sync their static product catalog and allow customers to make purchases straight from the app. 

Experiential; Augmented-reality filters popularly known as catalog-powered shopping lenses introduced by Snapchat make for an extremely up-close and personal shopping experience online.

Boosting Collaboration

The Power of Cross-Channel Functionality in Fashion E-commerce

In today's rapidly evolving retail landscape, enabling cross-channel functionalities is crucial for boosting collaboration and enhancing the customer experience.

Basic actions, such as informing customers about omni-channel support options or facilitating in-store assistance through staff members, can make a significant difference.

Actionable Insights

From online reservations to in-person pickups, providing customers with seamless options is essential. 

Experts reveal that digital information already influences the majority of in-store sales, with the percentage continually rising.

Deloitte research shows that 84% of customers reach for their smartphones before or during store visits, underscoring the growing importance of digital engagement.

The Universe of eCommerce

As the lines between online and offline blur, it's crucial to consider scenarios like in-store ordering for out-of-stock items or leveraging smartphones for price comparisons and online purchases.

Retailers must adapt to an increasingly fragmented landscape, fostering collaboration and efficiency among employees.

Evolved Consumer Expectations

Today's always-connected consumers seek personalized experiences and expect brick-and-mortar stores to cater to their individual needs. Store employees serve as the frontline support for e-commerce, bridging the gap between online and offline.

Informed Decision-Making

Seamless access to customer data empowers representatives to provide tailored support. Whether online or in-store, customers anticipate personalized encounters based on their history, interests, and preferences.

Keys to Enhancing the Online-Offline Experience

To deliver exceptional customer experiences, retailers should incorporate physical and digital elements into their in-store personalization touchpoints. Effective communication and training are vital to overcome stumbling blocks and ensure that staff members can provide seamless support.

The Skill-Set and Technology Adoption

Equipping retail staff with the necessary technology and knowledge is key to their effectiveness on the sales floor.

When armed with the right tools, sales associates can access vast customer data, pricing information, and inventory details, enabling them to provide informed and timely advice.

In this era of cross-channel commerce, harnessing the power of collaboration, leveraging data insights, and embracing technology is essential for fashion e-commerce to thrive and meet the ever-evolving expectations of the modern consumer.

A paradigm shift for fashion retail

Forget carefully designed physical stores with their real-world limitations – fashion is now truly exploratory through the help of social commerce.

In fact such is the power of social commerce that engagements with consumers and influencers are beginning to influence collections and trends for the next collections. 

What is revolutionizing social commerce is its power to provide bespoke engagement, make shopping seamless, and of course, have loads of fun.

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13 July  2023, Mumbai

Introduction:

The global lingerie market is undergoing significant changes, influenced by the active role played by working women in propelling its growth.

Working women propel lingerie market growth, but challenges persist. The report offers industry insights, profiles major players, and analyzes regional dynamics for strategic advantage.

What all you need to know

This comprehensive market report provides valuable insights into the industry, profiling major players such as Hansbrands Inc., L Brands Inc., PVH Corp., Triumph International, Jockey International, Wacoal Holdings, and Zivame. 

Diversity; With diverse product lines and operations in various regions, these industry leaders are continuously striving to gain a competitive edge. 

The report employs a robust research methodology, combining primary and secondary research to provide a bottom-up analysis and determine the market size.

Bird's eye view
The lingerie industry has experienced substantial growth in recent years and is projected to continue expanding in the coming years.

According to a study conducted by Mordor Intelligence, the lingerie market is currently valued at USD 82.28 billion in 2023 and is anticipated to reach USD 121.01 billion by 2028.

This growth represents a compound annual growth rate (CAGR) of 8.02% during the forecast period of 2023 to 2028. Additionally, a report by Grand View Research reveals that the global lingerie market reached a value of USD 85.96 billion in 2021 and is expected to grow at a CAGR of 5.7% from 2022 to 2030.

Working Women as Growth Catalysts:

The report emphasizes the increasing number of working women worldwide as a driving force behind the market's expansion. 

As women actively participate in the business sector, spurred by education and economic growth, their improved disposable income fuels the demand for comfortable and fashionable lingerie. 

Furthermore, their modern lifestyle choices, including fitness activities and social events, contribute to the rising popularity of sports bras, shapewear, and other lingerie products.

Challenges from the Unorganized Sector:

While the market presents immense growth opportunities, the report highlights the presence of an unorganized sector as a significant restraint. 

Local suppliers dominate this segment, offering affordable and customizable lingerie options that pose a challenge to established companies. 

Pricing is about knowing your customer; These local players capture a substantial market share by catering to price-sensitive consumers. 

Moreover, the emergence of new entrants and the rise of direct-to-consumer sales through cross-border e-commerce platforms intensify competition, hindering the growth of established fashion brands and retailers.

Insights into Regional Variations:

To navigate regional variations and effectively leverage market opportunities, decision-makers can rely on the report's insightful analysis of key trends and market dynamics across different geographies. 

Know your customer; The report provides a comprehensive understanding of the lingerie market in various regions, enabling companies to tailor their strategies accordingly. 

It delves into factors such as consumer preferences, cultural nuances, regulatory frameworks, and distribution channels, providing valuable guidance to industry players seeking expansion or consolidation.

Research Methodology:

The report's research methodology encompasses primary and secondary research. Primary research includes interviews, surveys, and expert opinions, which validate the findings derived from secondary research. 

The latter involves an exhaustive analysis of press announcements, annual reports, government websites, and market research reports. 

By combining these research approaches, the report ensures a robust and reliable analysis of the market, enabling decision-makers to make informed strategic choices.

Bottomline:

Working women drive lingerie market growth, but challenges arise from the unorganized sector and intensified competition. Strategic insights help navigate opportunities and maintain a competitive edge.

Emerging paradigm; As the global lingerie market experiences shifting dynamics, working women are emerging as the key drivers of growth. 

Their increasing presence in the business sector, coupled with rising disposable incomes and modern lifestyle choices, fuels the demand for comfortable and fashionable lingerie. 

Challenges galore; However, challenges from the unorganized sector and intensified competition from new entrants pose hurdles to established companies. 

By leveraging the insights provided in this report, industry players can navigate regional variations, capitalize on market opportunities, and develop effective strategies to stay ahead in this highly competitive market.

Latest Textile Events

19 July 2023, Mumbai

ICRA has projected a 7% decline in revenue for Indian cotton spinners in the fiscal year 2024, primarily due to the decrease in cotton prices.

This decline is expected to have an impact on cash accruals, indicating a challenging year ahead for spinners. However, there is a positive aspect for spinners amidst the revenue decline.

What all you need to know

Quick background 

ICRA projects Indian cotton spinners' 7% revenue decline in FY24 due to lower cotton prices, impacting cash accruals.

However, steady yarn prices, improved margins, reduced borrowings, and potential capital expenditure offer some positive prospects.

Domestic cotton production is expected to rise by 10% in 2023. Exports and production face challenges, but industry optimism prevails with expectations of recovery. While FY24 may see marginally lower profits, operating efficiencies, and demand from developed regions may drive improvements.

Monitoring risks, including cotton price fluctuations and disruptions, remains essential.

Steady Yarn Prices Anticipated

ICRA anticipates improved operating margins as higher volumes and reduced logistics expenses contribute to better profitability. Furthermore, the forecast indicates a decrease in spinners' borrowings, leading to improved debt coverage ratios and a better capital structure.

Looking beyond the fiscal year 2024, there is potential for increased capital expenditure in the industry. Factors such as machinery modernization, demand arising from the "China Plus One" movement, and growing interest from consumers in the EU and North America are expected to drive investment plans.

Modest Increase Projected

Cotton prices experienced a significant decline in the second half of the calendar year 2022 and continued to decrease by 20% in May 2023. 

Despite this, domestic cotton production is projected to increase by 10% in calendar year 2023. However, slow progress in sowing has been observed in Maharashtra and southern states due to delayed monsoon.

Expected to Stay Below Historical Highs

In the near term, yarn prices are expected to remain steady, with a slight increase anticipated in the second half of the fiscal year 2024 as downstream companies' demand picks up. 

However, spinners are likely to face a contraction of approximately 5% in gross contribution margins for the fiscal year 2024, primarily due to unfavorable movements in cotton fiber and yarn prices.

Exports play a significant role in India's cotton yarn production, but there was a substantial decline in exports during the fiscal year 2023. 

Although there is a projected increase of 15-17% in cotton yarn production for the fiscal year 2024, both production and exports are expected to remain below the historical highs seen in the calendar year 2022.

Inflation and Uncompetitive Prices Impact Performance

Indian cotton spinners have faced significant challenges in the second quarter of fiscal year 2023 (FY23), as highlighted by ICRA, a leading credit rating agency. Inflationary pressures and uncompetitive prices have adversely affected their performance during this period.

Revenue Decline and Margin Moderation Revealed by ICRA Analysis

ICRA's analysis of a sample group of spinners reveals a 4% year-on-year (YoY) decline in revenue and a 950 basis point moderation in margins. Companies across different scales have experienced pressure on profitability, leading to a moderation in interest cover.

Profitability and Revenues Expected to Moderately Decline in Q3 FY23

ICRA's recent research report on cotton and manmade yarns suggests that the profitability and revenues of Indian cotton spinners are expected to sequentially moderate in the third quarter (Q3) of FY23. This projection is based on a slowdown in demand and lower contribution levels.

Factors Contributing to Performance Challenges

Factors contributing to the performance challenges include a substantial increase in cotton prices, reaching all-time high levels in May 2022. This surge has impacted the contribution levels for spinners. 

Additionally, downstream companies have resisted high prices, Indian yarn prices have been uncompetitive in the international market, and there has been a slowdown in demand from developed nations due to recessionary concerns.

Optimism for Industry Recovery

However, there is optimism for a recovery in the industry. ICRA expects volumes and contribution levels to improve from the fourth quarter of FY23 onward. This recovery will be driven by a rebound in demand and lower cotton prices with new arrivals. 

The previous fiscal year (FY22) witnessed robust revenue growth and profitability for Indian cotton spinners, supported by strong realizations and healthy demand following the lifting of lockdown restrictions.

Debt and Capital Expenditure Trends

The industry experienced high debt-funded capital expenditure in FY22, partly due to the deferral of major expenses during the COVID-19 period. This trend is expected to continue in the near term for capacity expansions and power-saving enhancements. 

As cotton prices soften and working capital requirements decrease, it is anticipated that debt levels will decrease, leading to an improved capital structure. ICRA predicts an improvement in the debt coverage ratios for the sector in FY24.

Export and Production Challenges

Indian cotton yarn exports sharply declined since April 2022 after reaching all-time highs in FY22. Uncompetitive pricing and a slowdown in demand from developed nations have contributed to this decline. 

Yarn production has also witnessed a significant YoY decline of approximately 15% in FY23, with cotton yarn exports plunging by 53% in the first seven months of FY23.

Outlook for the Future

Looking ahead, ICRA expects a near 10% YoY improvement in demand for India's domestic cotton spinning industry in FY24. This growth will be driven by shifting preferences away from Chinese cotton and an expected rise in demand from the USA and EU regions for the spring/summer season. 

Although a decline in revenues is anticipated, an improvement in operating margins is expected for Indian cotton-spinning companies in FY24. 

The industry is likely to benefit from operating efficiencies resulting from higher volumes and lower logistics expenses. However, profits and cash accruals are projected to be marginally lower in FY24 compared to FY23.

Cotton Price Trends

Cotton prices witnessed an upward trend until September 2020. However, in the calendar year 2022, the steeper increase in fiber prices compared to yarn prices led to a decrease in the average spot contribution. 

Since June 2022, cotton yarn prices have been declining due to softening in cotton fiber prices and subdued demand from downstream apparel companies. 

ICRA expects cotton yarn prices to remain steady in the near term and experience a slight increase in the second half of FY24 as demand from downstream companies picks up.

Monitoring Risks

In summary, while Indian cotton spinners have encountered challenges in FY23, including inflationary pressures and uncompetitive prices, there are expectations for a future recovery driven by lower cotton prices and increased demand. 

The industry is anticipated to experience improvements in FY24, such as higher volumes, better debt coverage ratios, and rising demand from various regions. However, close monitoring of risks such as fluctuating cotton prices and intermittent disruptions across the textile value chain remains crucial.

CREDITS: ICRA report

Latest Textile News

15 July  2023, Mumbai

Textile companies are addressing the growing issue of clothes piling up in landfills by adopting a circular fashion model.

Upcycling companies are pioneering groundbreaking fiber-recycling technology that separates and extracts materials from old clothing, which are then re-spun into new yarns.

What all you need to know

Closing the Loop: From Linear to Circular Fashion

The innovative textile-to-textile, chemical-recycling technology aims to demonstrate the commercial viability of circular recycling.

By converting reclaimed raw materials into yarn, creating new fabric, and fashioning garments, these tests provide an effective solution for recycling clothes and textiles in a circular manner. 

This process not only offers an eco-friendlier means of sourcing raw materials but also addresses the challenge of separating blended fiber clothes and removing dyes from polyester and cellulose.

Environmental Consciousness in Action

Textile companies are becoming increasingly environmentally conscious and working towards reducing waste in the industry. 

This shift has the potential to revolutionize the way fashion is made, reducing the need for extracting virgin resources from the planet. 

With climate change impacting major wool-producing countries, such as New Zealand and Australia, there is a renewed global interest in recycling wool.

From Economic Opportunity to Environmental Demand

Historically, wool recycling has been driven by economic opportunity and necessity. 

However, environmental concerns are now spurring the demand for recycled wool as consumers seek out clothes made from reused natural fibers instead of synthetic materials that require complex and costly recycling processes. 

This shift towards recycled wool helps address sustainability concerns and reduces reliance on chemical-intensive recycling methods.

Circular Fashion: Revitalizing Textile Waste for Sustainability and Prosperity

In the dynamic realm of circular fashion, a profound transformation occurs as textile waste is rejuvenated, propelling us toward the realization of sustainability objectives.

Upcycling

Through state-of-the-art recycling and upcycling methodologies, discarded textiles, which would have otherwise languished in landfills, are given new life, easing the environmental strain and diminishing the necessity for virgin resource extraction.

Emerging landscape

This paradigm shift towards circularity not only addresses the urgent ecological concerns associated with textile waste but also unveils promising economic opportunities for stakeholders in the fashion industry.

By embracing circular fashion practices, such as inventive material recycling and repurposing, businesses can achieve heightened resource efficiency, concurrently contributing to a more sustainable future.

By adopting circular fashion, the industry can effectively close the loop, converting textile waste into valuable resources.

Mitigate the ecological footprint

Through reimagining and repurposing materials, the fashion sector can curtail its ecological footprint, mitigating the harmful consequences of excessive waste generation. Furthermore, the integration of circular fashion models presents a chance for enterprises to tap into the surging market demand for ethical and sustainable apparel.

By assimilating circular fashion practices, the industry actively contributes to the reduction of textile waste, alleviating the strain on landfills and fostering a circular economy.

Recycling and upcycling textiles not only conserve precious resources but also help mitigate the greenhouse gas emissions associated with virgin material production.

Innovation-led future

Moreover, circular fashion fosters innovation, driving the advancement of novel technologies and processes that optimize resource utilization. By reconceptualizing the complete lifecycle of garments, from design to disposal, fashion companies can implement closed-loop systems that minimize waste and maximize product longevity.

The economic advantages of circular fashion are equally compelling. By harnessing the potential of recycled materials, businesses can reduce production costs, fortify supply chain resilience, and tap into emerging market segments.

Collaboration is the way forward

Circular fashion models also cultivate collaboration among stakeholders, engendering new opportunities for partnerships and industry-wide transformation.

Ultimately, embracing circular fashion is an imperative strategy for the fashion industry, enabling it to thrive sustainably and remain resilient in the face of evolving demands.

By rejuvenating textile waste through innovative recycling and upcycling approaches, businesses can minimize their environmental impact while simultaneously unlocking economic prospects and meeting the rising consumer appetite for sustainable fashion choices.

Hardwiring the existing

In the realm of circular fashion, the metamorphosis of textile waste symbolizes more than just a passing trend—it signifies a profound shift toward a more sustainable and accountable fashion ecosystem.

By wholeheartedly embracing this transformative approach, the industry can lead the way towards a brighter and truly circular future, where waste is minimized, resources are conserved, and fashion stands synonymous with sustainability.

Manteco SpA: A Wool Recycling Model for Circular Fashion

Manteco SpA, an Italian fabric manufacturer, stands as an example of successful wool recycling. Their factory in Prato, Tuscany employs a straightforward process: garments are manually stripped, scraps are mechanically shredded, fibers are blended with color, and a carding machine untangles and aligns the fibers before spinning them into yarn. 

Prato, home to numerous clothing and textile companies, plays a major role in wool recycling.

Striking the Balance: Recycled Wool's Quality and Environmental Benefits

The quality of old wool determines the amount of virgin fleece wool required to create strong yarn for textile manufacturing. Manteco adheres to best practices, incorporating recycled wool, virgin wool, or virgin nylon to achieve high-quality woolen fabrics. 

Technological advancements have reduced manual labor, energy costs, and emissions in Manteco's processes, resulting in recycled wool with a significantly lower carbon footprint compared to virgin wool and other textiles.

Making an Impact: Comparing Carbon Footprints

According to Manteco's life-cycle assessment study, producing a kilogram of their recycled wool generates 0.62 kilograms of carbon dioxide equivalent (CO2e), while shearing the same amount of fleece from a sheep creates 75.8 kilograms of CO2e. 

In comparison, cotton and polyester generate 4.69 kilograms and 4.31 kilograms of CO2e, respectively. While wool recycling has limitations due to decreasing fiber length, the addition of virgin wool or nylon extends the lifespan of existing materials, although new fibers are still needed.

Recycling Initiatives around the Globe

Sri Lanka has made significant progress in recycling waste, with 30% being transformed into fabric and brushes. 

Trischel Fabric, a subsidiary of MAS Holdings, has produced fabric using yarn made from waste plastic bottles, including those collected from Sri Lanka's beaches. MAS Holdings aims to eliminate the use of virgin polyester raw materials by 2025, leading the way in sustainable practices.

Innovative Fiber-Laying Technology for Sustainable Footwear

Coats, an industrial threads manufacturer, has introduced Lattice Lite Eco, a revolutionary fiber-laying technology. This eco-friendly approach precisely positions yarns to create footwear composite materials with the required thickness, flexibility, torsion, and rigidity. 

Lattice Lite Eco eliminates the need for additional resin steps, reducing material wastage and utilizing recycled carbon, recycled nylon, and natural resources such as basalt and flax. 

It enables the production of lightweight and durable components, elevating performance and comfort in footwear.

Recycling Challenges in Bangladesh

Bangladesh faces a shortage of waste cotton and textile scraps as a significant portion is exported due to higher global demand for recycled yarns and fabrics. The country has a vast volume of cotton textile scraps that often end up in landfills, get burned, or are recycled into low-quality fabrics. 

This missed opportunity to produce recycled yarn reflects the challenges faced in the local market, driven by pricing considerations.

Recycling as a Global Solution

Imported recycled yarns are sometimes made from waste and scrap fabrics exported from Bangladesh, further highlighting the demand for recycling. 

To combat textile waste and meet increasing global demand, better communication between clothing designers, apparel brands, and supply chains is crucial. 

Identifying the best materials for the environment requires considering the impacts of processes and supply chains, including recyclability. 

For example, wool can be mechanically recycled, but the methane emissions from sheep contribute to greenhouse gases, while synthetic materials shed microplastics during washing.

Revolutionizing Textile Recycling

The textile industry has a tremendous opportunity to make a significant impact on waste reduction and sustainability by embracing sustainable yarn recycling practices. 

Each type of fiber requires specific recycling methods, such as compressing fibers for textile filling, like those found in mattresses, rather than transforming them into yarns. 

Polyester garments can undergo shredding and granulation processes to create polyester chips for further applications. 

A multitude of companies specializes in recycling cotton to produce 100% recycled yarns, fabrics, and ready-made garments, promoting environmental friendliness by utilizing materials that would otherwise go to waste. 

Sustainable Yarn Practices to Reduce Waste and Promote Sustainability

Additionally, sustainable yarns and fibers are gaining prominence in the market. Notably, ECONYL, a synthetic yarn widely used in sustainable flooring and fashion, stands out for its complete reliance on recycled materials, without the need for raw petroleum resources. 

By embracing these sustainable practices, the textile industry can pave the way for waste reduction and sustainability in a groundbreaking manner.

Fashion Industry Innovates Circular Model: Prototyping Sustainable Clothing Recycling with Donation Bins and Online Retail App.

Cost-Efficiency and Sustainable Practices

Producing polyester fabrics solely from recycled PET bottles proves to be more cost-efficient, requiring less energy and heating. This practice aligns with sustainable textile supply chains, and circular economy principles, and effectively addresses plastic bottle waste.

Recycling: Crucial for Preserving the Earth

Textile Industry Embraces Circular Fashion: Transforming Clothing Waste

Recycling plays a crucial role in preserving the Earth for future generations. 

By transforming old and useless items into new ones, recycling actively benefits the environment and helps establish a more sustainable future.

India possesses a distinct advantage in utilizing its current infrastructure and resources to establish itself as a frontrunner in waste management. 

By implementing advanced sorting and recycling technologies, the country can effectively capture and repurpose textile waste, consequently reentering the global market as a prominent circular sourcing region. 

This strategic move would solidify India's position as a leader in sustainable practices and resource utilization.

Latest Textile Events

12 July 2023, Mumbai

Traditionally, global textile manufacturing has been dominated by China, the US, and the European Union (EU) countries such as France, Germany, Italy, Spain, and Portugal, along with India, Bangladesh, and Vietnam. 

However, a new wave of countries within the Association of Southeast Asian Nations (ASEAN) is emerging as strong players in textile manufacturing. 

What all you need to know

ASEAN's Dominance in Textile Manufacturing Continues to Grow

The ASEAN countries have established their dominance in the textile manufacturing sector, and this trend shows no signs of slowing down. The textiles and clothing industry in the ASEAN region is experiencing steady growth, evident from the import of textile machinery into the region and the strong resource base for value-added product manufacturing. 

ASEAN's integration in the textile and clothing industry is comprehensive, encompassing all aspects of the supply chain across multiple ASEAN members. This includes fiber production, yarn spinning, fabric knitting or weaving, as well as the cutting and sewing of finished apparel.

ASEAN's Sustainable Manufacturing Efforts Gain EU's Favor, Boosting Credibility.

Rise of ASEAN Nations in Textile Manufacturing

A similar situation can be observed in India, where inflation has become rampant, leading to higher input costs and increased prices for finished goods. 

As a result, many manufacturers have relocated their units from India and China back to the US, or they have sought out other more affordable manufacturing destinations. 

Consequently, India is no longer a preferred outsourcing destination.

Labor Costs Drive ASEAN's Textile Manufacturing Boom

The ASEAN nations are currently leveraging trade, migrant labor, and transferable capital to promote prosperity in Southeast Asia. Specifically, the international garment industry within ASEAN is facilitating regional investment integration, skill transfer, job creation, and economic growth.

US Obstacles Drive Manufacturing Boom; China's concerns over increasing labor costs, sluggish demand from the West, and the US's interference in its financial journey have created an opportunity for ASEAN nations to capitalize on.

Poses Strong Competition to India and China

ASEAN countries are gradually gaining market share in the global textile market. Cambodia, Thailand, Vietnam, Myanmar, and the Philippines have strong potential in the textile sector and are making significant advancements in their development. 

Upswing; Textile product exports from these countries are continuously increasing, posing tough competition for India and China. India's Inflation Woes Diminish its Appeal. They have a fair chance of dominating the global textile market in the foreseeable future.

Alfred Tan, the deputy chairman of the Cambodian AFTEX member Textile, Apparel, Footwear, and Travel Goods Association in Cambodia (TAFTAC), emphasizes the pivotal role of textile-related industries in ASEAN economies and their competitive presence in the market. 

He notes that the region has successfully captured a larger global market share, serving as an alternative supply source to China and other key countries. 

Tan also highlights the narrowing gap between production costs (including raw materials, labor, logistics, and compliance) and FOB and retail pricing over the past decade, expecting this trend to continue into the next decade. 

Growing appreciation; ASEAN governments recognize the sector's future potential in terms of domestic job opportunities and foreign exchange generation, providing tax incentives to manufacturing units and collaborating with the sector to attract local, regional, and international direct investments.

Region's Appeal for Outsourcing Increases as Manufacturers Seek Cheaper Destinations

Moreover, ASEAN's cooperation on environmental issues is guided by the ASCC Vision 2025, which aims to promote balanced social development and a sustainable environment. 

These efforts align well, particularly with the EU's focus on greener manufacturing methods, enhancing ASEAN's credibility in the global market.

ASEAN's Garment Industry Thrives

Towards stronger vertical integration, the ASEAN Federation of Textile Industries (AFTEX) has launched the Source ASEAN Full Service Alliance (SAFSA). SAFSA aims to establish a virtual vertical supply chain by connecting ASEAN apparel factories, buyers, textile mills, and apparel factories. 

This enables businesses to offer comprehensive service packages to international buyers. 

SAFSA currently has 45 members, including 27 buyers, with annual apparel sales exceeding US$50 billion. Major brands like Benetton Group, Colombia Sportswear Company, Debenhams, Guess, Marks & Spencer, Polo Ralph Lauren, and Hermes-OTTO are among SAFSA's customers.

A View on Vietnam:

In April 2023, Vietnam's textile industry experienced a mix of positive and negative trends. Robust growth was observed in cotton imports, with a significant increase of 27.9% Year over Year (YoY) and 29.9% Month over Month (MoM), indicating strong demand. 

However, yarn imports faced a temporary slowdown, declining by 16.4% MoM, despite a slight 0.8% YoY increase.

Vietnam's Textile Industry Faces Mixed Trends 

Yarn exports also witnessed a decline, with a 4.7% MoM and 1.4% YoY drop. China, South Korea, and the United States remained the primary export destinations for yarns. The net export of yarns decreased by 4.3% YoY, but there was a promising increase of 18.8% MoM.

Furthermore, imports of grey fabrics and finished textiles decreased by 9.6% MoM and 20.7% YoY. The textile and garment exports faced challenges, declining by 3.3% MoM and 19.4% YoY.

These trends highlight the challenges faced by Vietnam's textile industry, including global macro risks and weakening demand in key markets. 

To adapt to changing market dynamics, Vietnam's textile industry needs to navigate these obstacles and develop sustainable growth strategies.

Vietnam's Foreign Trade Performance Update

Tran Thanh Hai, the deputy general director of the Agency of Foreign Trade, reported double-digit growth in Vietnam's exports and imports during the first quarter of 2022, reaching $176 billion, a 14.4% year-on-year increase. Export growth accounted for 12.9% of this growth. 

Hai attributed the increase to the favorable impact of new-generation free trade agreements (FTAs) and regional trade agreements. 

Vietnam has established several FTAs, including those with Japan, Chile, Korea, the Eurasian Economic Union, as well as agreements within ASEAN and with India, Australia, and New Zealand.

Textile and Apparel Exports Contribute to 46.9% of Total Trade in RCEP Countries

According to recent data, textile, and apparel exports (T&C) from countries in the Regional Comprehensive Economic Partnership (RCEP) accounted for $374.6 billion, representing 46.9% of global trade. 

In contrast, imports amounted to $138.5 billion, making up 15.9% of global trade. Major exporting countries include Vietnam, Cambodia, Myanmar, and various ASEAN regions, while China, Singapore, Brunei, the Philippines, Japan, South Korea, Australia, and New Zealand were net importers.

Trade dynamics

China is actively investing in Vietnam to diversify and enhance the value of its exports. Meanwhile, Bangladesh, with its low labor costs, continues to compete in the market. 

Raihan Mahmud, the marketing director of Bangladesh's Tex Garment Zone, expressed that if exporters in Bangladesh can diversify their products and the government secures new free trade agreements, the country has a better chance of catching up.

Emerging paradigm

Both the apparel sectors in Bangladesh and Vietnam are poised to benefit from the "China plus one" strategy adopted by many garment sourcing companies, thanks to their diverse capabilities and advantages. 

According to WTO data, Vietnam is projected to surpass Bangladesh as the world's second-largest garment exporter in 2020.

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