09 January 2023, Mumbai

The pandemic has hit the hardest blow to the luxury fashion segment of the apparel industry. Inflation has led to a sharp rise in the costs of fibres and technology leading to a massive gap in demand and supply levels.

No one could have foreseen this disruption, but now we know the risks we face, and our key lesson has been to build our business in such a way that we can manage this risk effectively. A closer partnership, better understanding, and greater communication between brands and suppliers are even more important today than ever before.

Catch 22 situation

Cautious optimism is the mood of the street in India despite Sales of personal luxury goods including apparel, accessories, and footwear posted high double-digit growth in the first quarter of this year, and women’s luxury brands grew by only 14 percent in 2022 & Fifty-seven percent of men claimed that their fashion spending has increased, albeit momentum carried till the festive/wedding season on the whole but given the cloudy global economic outlook, the worries mount.

Inflation has started to bite; Experts feel that global luxury goods prices increased by 15% between January 2021 and January 2022, Eurostat reported its highest levels in June 2022, when it stood at an 8.6 percent annual rate.

As the pandemic subsided all was going right but given the challenges and difficult conditions & constraints prevailing inflation at this stage the situation has turned heads on ever since the black swan event of 2022 i.e. Russia @ war played out. Knowing that we are going into 2023 with expenses increasing for everything raising concerns about the growth of the luxury industry.

Focal point

Fashion suppliers are now focussing on prioritizing vertical integration, strengthening relationships with brands, and diversifying and simplifying their supply chains to face the new economic situation.

No one could have foreseen this disruption, but now we know the risks we face, and our key lesson has been to build our business in such a way that we can manage this risk effectively. Collaborative communication and planning the tipping point when brands begin to push back as well as improving the supply-demand chain is the key for luxury brands this summer of 2023.

Bright spot

Border reopening in 2023 brings hope; As mainland China and Hong Kong reopen borders, 2023 brings a ray of hope to global luxury retail.

The quick rebound in sales led to a hike in prices of luxury brands from Louis Vuitton to Gucci and Carter earlier this year.

The Indian luxury market is expected to grow by ten percent over the next five years as the country’s fashion market is driven by premiumization presently as there's also a surge in the number of Indian ultra-high-net-worth individuals. Global brands have been making a beeline into India through strategic tie-ups.

This growth has been driven by accelerated digital adoption & the theme of digitization is really playing out well.

Latest Textile Events

 05 January 2023, Mumbai

With the winter season and winterwear sale coinciding this year, winter apparel and accessories are literally flying off the shelves with many retailers, thanks to the huge discounts on them.

Excess inventory can happen for a variety of reasons, including unfulfilled orders, out-of-season merchandise, overproduction, and manufacturing mistakes, among others.

In order to maintain a healthy cash flow and succeed in business, brands must find a way to sell surplus inventory that they are unable to sell at full price (or even at a little discount) in shops.

Consumer exuberance

During the last few days of December 2022 shopping centers across India experienced high footfalls and crowds even during weekdays. Brands added to the festive cheer with end-of-season sales. From 20 percent to 60 percent off to half-price sales and buy one get one free, brands across the country began offering great discounts to customers. Retailers advanced the annual mega sales season by almost two weeks this year. Generally, sales are conducted in the first or second week of January.

Necessary evil

In the retail sector, it is inevitable. Off-price merchants can nevertheless make money by selling goods to customers at prices that are much lower than those offered by boutiques, department stores, and other full-price merchants because they purchase goods at such a cheap cost.

Brands are under increasing pressure to take action to fight waste at every level of the inventory life-cycle as environmental concerns rise. Fashion brands like Nautica, American Eagle, The Body Shop, Ritu Kumar, Marks & Spencer, Vero Moda, Guess, Mango, Iconic, Massimo Dutti, Charles and Keith, H&M, Rosso Brunello, Forever New, Hidesign, Rareism, Lacoste and Beverly Hills Polo Club are offering up to 50 percent off to customers.

Brands like Bath and Body Works, Aldo, Aldo Accessories, and Global Desi Girl are going all out this season by offering a flat 50 percent off on everything in the store.

With the offers continuing into the new year, brands and shopping centers alike are hoping that the shopping frenzy goes on.

Trade-off

After all, consumers are avid supporters of off-price commerce, which makes sense. Revenue is further reduced by holding expenses such as warehousing, insurance, and taxes. Further hindering a company's financial predicament is the inability to obtain loans at the best rates due to the sluggish monetization of inventory.

Off-price merchants can help in this situation. If the off-current price's success is any indication, things are looking up.

Latest Textile News

02 January 2023, Mumbai

This sector is characterized by a worldwide supply chain that is highly interconnected. This is a brief overview of the textile industry's supply chain against the backdrop of evolving/ever-changing dynamic business environment in the wake of constant consumer demands, amid fierce competition aiming to reduce the adverse impacts of the manufacturing process of fashion, textile, and footwear industries on the planet.

Apparel/Clothing collections often fluctuate since their lifecycles are brief, and prominent seasonal peaks mark their commercialization.

Today, in a VUCA (volatility, uncertainty, complexity, and ambiguity) world where uncertainty is new certainty and when all supply chains are vulnerable to disruptions the textile value is no different.

Disruption in Textiles GSCs

What makes the sector concerned

How bad are things in this highly interconnected global world where everything affects everything?

One family one earth one future

'Supply Chain Geopolitical Risk' is the top risk GSCs are facing

GSCs are vulnerable to disruptions in response to black swan events like the pandemic.

What moves the needle Rising consumer demand for sustainable textiles.

Good actors and bad actors

A Sector notoriously infamous for polluting the planet needs to reduce the adverse impacts of its manufacturing process.

Apparel collections since their life cycles are brief, and prominent seasonal peaks mark their commercialization again resulting in a deep impact on the planet sending great consumer waste to landfills given that clothes are hard to recycle and are not biodegradable most of it.

Technology trends shaping the industry. The growing sectoral influence of blockchain technology is evident and palpable and, there is a case for its intervention even in the textiles/apparel supply chains.

Turn Around Time Vs. Lead Time

Emerging technologies such as Technological solutions ranging from biotech textiles to predictive analytics are supporting the case. GSCs are consciously putting efforts to make sector supply chains more resilient and reliant through what you call assiduous & unambiguous friend-shoring by tightening those ties/bonds to achieve favourable outcomes.

New Paradigm

Reducing the lead time and cost of the product is the SCM's (Supply Chain Management) primary goal driving change. The COVID-19 epidemic has thrown up many questions, forcing clothing and textile (C&T) firms to reconsider their current processes and make immediate adjustments to manage their future and, in a greater sense; Re-adjustments to manage future Insights indicate sector needs to reconsider/revisit the current processes as a re-imagination.

VOCAL For LOCAL Realignment of the supply chain will take some time. Dialing back; Businesses have been struggling with supply chain problems as economies recover from the Covid pandemic.

Times, when China is interested in moving manufacturing out of China on the back of fast aging population. Additionally, global players having a large sourcing base in China, are in a state looking at especially China Plus/China plus two/China alternate/Europe plus one strategy given that China being globally is numero uno among garment and textiles exporters and dominates the show & supply chain diversification plan, provides chances for Indian players.

In the meantime, insurgent firms are upending the accepted paradigms of fast fashion and garment selling in response to a global supply-chain shock.

Complicated supply chains

Contrary to value-added chains for food or construction materials, textiles, and clothing (T&A) have numerous process stages carried out by various subsequent industry units, and what further complicates the process is a more comprehensive range of fiber materials is used to create textile fabrics.

As we see resources getting more scarce and, the impending "Law of Inverse Consequences" of the US-China trade war has already made the situation unamenable upending the global textile economy turning the supply chain on its head.

De-risking global supply chains (GSCs)

The Economic Scars of impending global recession; Realignment of the supply chain will take some time.

Their common goal is to make the global supply chains of the textile industry sustainable. The principle guiding force for GSC rejigs/reinvigorating figuring out how to de-risk & build credible alternate GSCs of intermediate goods and services is quite a challenge in the anxious times we are living in.

The disruption in GSCs caused/upended by covid-19 adversity, followed by another demand and in some sense supply shock battering the global textiles and garment industry's (T&C) supply chains gasping for revival, throwing companies and other stakeholders in a tizzy.

The scope of technology

Blockchain and supply chain management; This tech cost is becoming more affordable and efficient making (GSCs) global supply chains more supporting businesses to help complete transactions directly and without involving third parties therefore, facilitating greater integration/interdisciplinary of financial and logistics services, thus resulting in an augmented data collaboration between multi-stakeholders as a holistic business approach.

Supply chain mapping technology, and work ethos filtering all the variables in pursuit of operational & manufacturing excellence.

Turning the situation on its head; The execution challenge starts when you let technology take over and expect action-oriented, scientifically underpinned, and transformational as one bit is that intrusion of tech intervention needs the business leaders to be on the top of the agenda and in a mindset to replace the human interface with technology in part or complete for the technology sound effects to play out in this diverse world.

Times when transparency, traceability, and sustainability are the key issues.

The growing sectoral influence of blockchain technology is evident and palpable and, there is a case for its intervention even in the apparel supply chains, the use of blockchain replaces the centralized conventional distribution system which may not be as great/robust with a decentralized immutable ledger which is so much easier integrating the supply chain stakeholders/actors that too all with the real-time information sounding music to ears as in nutshell it is a power of collaboration at play.

If you can’t measure you can’t improve

Strategies for mitigation; The Higg MSI is an invaluable tool for assessing the environmental impact of processes and materials utilized in the products empowering us to make more sustainable design choices. The Higg MSI measures environmental impact across five areas: global warming potential, pollution in water, chemistry, water scarcity, and fossil fuel depletion.

Advanced tools and resources, like the Higg MSI, align with the customers’ goals to design and produce sustainable apparel.

Way to go

Exploration towards a new agreement for responsible supply chains in the garments and textile sector. Realignment of the supply chain will take some time this being a legacy issue. The industry needs innovation in order to transition from linear to circular ways of working.

Dialing back to pre covid for textiles supply chains were fragile & fractured and COVID-19 only exposed it and exacerbated it.

Space to watch out; What is the need of the hour is the industry’s serious sustainability commitment including establishing Supply Chain Standards and Responsibility Code, adopting a Responsible Sourcing Policy, conducting sustainability assessments for strategic suppliers, and capacity building for strategic suppliers on GHG emissions accounting, among others.

As we move ahead the enterprise's success will depend on how well it checks the boxes right in this competitive landscape and no better place to invest.

Latest Textile Events

 07 January 2023, Mumbai

Ladies' intimate wear, so-called lingerie in the apparel/garment bucket entails such as undergarments and sleepwear is in effect close to the fair sex skin and, so to say the second skin spans a handful of categories like bras, panties, sleepwear, camisoles, shapewear, and so forth.

However, In the contemporary world, there is a new paradigm of witnessing empowering women to view their intimate wear as an explicit intent to express in some way flaunting their individuality, comfort, and self-confidence to carry themselves. 

This has catapulted the category bracing to cash in on the marketing opportunity leading broadly to spoiling her with options in the manner of an array of styles, sizes, and designs being made accessible at the drop of hat to her; where amongst all these parameters fit to take the prominence in this clothing, where in the right size, the overall comfort it offers to the wearer and style of bra, for once has become the core feature for any woman deciding the brand and the product.

Over here issues like the material used in making a product more comfortable and breathable are the key factors that play out, thus influencing the marketing give it any clever name one wants to give it to market one's label.

Other marketing opportunities to tap into underserved & underpenetrated categories like the options for plus-size women and women of color entailing different body types, diversity, and skin tones for their brands in their push to go for an inclusive sustainable growth model within the intimate wear market. 

Bird's eye view

Intimate wear is a second skin. The phrase "innerwear is coming out of the closet" has been bandied for over a decade. Still, at last, it is openly displayed in shops and on internet marketplaces, where more and more customers feel at ease purchasing basic and upscale innerwear.

A bra is a piece of women's clothing & it has become a significant aspect of today's society for women to express themselves and carry her self confidently.

Bras, in particular, have developed valuable aspects like comfort, shape, fit, and support. Women's lingerie has changed over time. Many multinational lingerie producers are diversifying their product lines, which has caused them to concentrate on important markets and their diverse segmentation.

Fast forward

Increasing consumer awareness of personal hygiene, more excellent disposable money, an on-the-go lifestyle, higher living standards, and shifting customer tastes are all driving this fast-moving industry globally. Businesses increasingly businesses have made great efforts to meet the diverse needs of end users across all market segments.

We investigate the industry's current situation, concentrating on product trends, sustainability, and pricing to support planning decisions in light of the rise in demand for the quality end of it.

Emerging scenario

Yusuf Dohadwala, Chief Organiser of INTIMASIA and CEO of IAAI explains, “We are in the golden era for the intimate wear industry, in India, and the next 10-15 years will see immense growth and opportunity in the segment. With the complete industry supply chain from brands to manufacturers to suppliers and distributors to retailers, all gathered in one common pursuit, we will witness an event like none other before.”

The 'Make in India campaign" offers a compelling story to help secure it to earn the tag of supply chain credible preferred partners. Increasing consumer awareness of personal hygiene, more excellent disposable money, an on-the-go lifestyle, higher living standards, and shifting customer tastes are all driving this fast-moving industry globally.

Proliferation

Increased product visibility and the proliferation of contemporary retail forms, both offline and online, are contributing factors. The market is divided into two categories under the general heading of innerwear: men's wear and the fancier women's wear market.

Emerging scenario

Additionally, both markets are expanding significantly. The global womenswear market is anticipated to rise at a CAGR of 6.4% to reach US $ 55.83 billion by the end of 2024, while the international men's innerwear segment is expected to grow at a CAGR of 5.8% to reach US $ 13.6 billion by that time. Sales are being boosted by the global expansion of mono-brand and multi-brand stores and organized retail penetration.

Lowdown

According to a new report published by Allied Market Research, titled, Intimate Wear Market by Gender (Women and Men), Age Group (1317 Years, 1835 Years, and 36 Years & Above), Price (Luxury, Super-Premium, Premium, Medium, Economy, and Low), Distribution Channel (Mass Merchandizers, Mono brand Stores, Specialized Stores, and Others): Global Opportunity Analysis and Industry Forecast, 2018-2025 the global intimate wear market is expected to generate $325.36 billion by 2025, growing at a CAGR of 8.1% from 2018 to 2025. In 2017, Asia-Pacific led the intimate wear market, followed by North America. Growth in the region is supplemented by an increase in national per capita disposable income and growth in fashion consciousness among the young generation.

Competitive landscape

It makes sense that domestic players are growing. Numerous well-known companies, such as Rupa and Co. Ltd. (MacroMan, Frontline, and Euro), Lux Industries Ltd. (Lux Cozi), Dollar Industries Ltd. (Bigboss, Club), and Maxwell Industries, have carved out a special place for themselves in the Indian innerwear market (VIP, Frenchie).

Despite the recent challenges faced by the island nation, production volumes of most of the global brands depending on SL for the supply chains have been holding up and eyeing further expansion of its manufacturing base in Sri Lanka. Not only that some of them have already added/announced additional production lines in recent months on the back of deepening the relationship with the supply partners up & downstream.

Latest Textile News

 04 January 2023, Mumbai

In order to maintain a healthy cash flow and succeed in business, brands must find a way to sell surplus inventory that they are unable to sell at full price (or even at a little discount) in shops.

They normally accept whatever they can get for their unwanted goods when they look to off-price retailers to buy their product at a discount of 40–60% from the wholesale price. Excess inventory can happen for a variety of reasons, including unfulfilled orders, out-of-season merchandise, overproduction, and manufacturing mistakes, among others.

In the retail sector, it is inevitable. Off-price merchants can nevertheless make money by selling goods to customers at prices that are much lower than those offered by boutiques, department stores, and other full-price merchants because they purchase goods at such a cheap cost.

Working of this model

Depending on a brand's strategy, excess inventory might either represent a significant opportunity to free up cash flow or a potential loss of income. Brands frequently find themselves forced to offer excess stock below MSRP. It gets tougher for firms to get rid of their surplus inventory as time goes on since both customer demand and product value fall.

Revenue is further reduced by holding expenses such as warehousing, insurance, and taxes. Further hindering a company's financial predicament is the inability to obtain loans at the best rates due to the sluggish monetization of inventory. Off-price merchants can help in this situation.

Profiting from the erratic nature of customer demand and mistakes made in the production process by retailers wanting to ensure that their stores are always stocked, they operate by purchasing products from thousands of different designers.

Advantages of Off-price model

Consumers are avid supporters of off-price commerce, which makes sense. After all, discount stores let customers shop whenever they want and don't require them to wait for annual promotions because they sell name-brand and designer goods for a small portion of their original cost. The first allure for customers is that they don't know what they're going to buy when they walk into the store.

It's like going on a quest for the best offer, cost, or thing. The off-price retail industry is booming more than ever as consumers have grown accustomed to discounts and like looking for the greatest offers available.

This industry is solely based on excess inventory. Off-price merchants are in a much better position to maintain client engagement than typical merchants due to their constantly changing inventory. The off-price retail business plan, in many ways, transforms the erratic nature of the retail sector into a reliable framework for off-price shops.

Future Scope of the off-price model

Off-price shops have a great opportunity to continue gaining market share as a result of the rising number of department store closings, safeguarded by their "more value for less" business model.

Off-price is sometimes heralded as the way of the future because it caters to swiftly shifting consumer tastes and because consumers have grown accustomed to paying low rates for designer brands.

Brands are under increasing pressure to take action to fight waste at every level of the inventory life-cycle as environmental concerns rise.

In light of this, off-price is emerging as a more alluring option for businesses searching for a more sustainable strategy to transfer older, slow-moving, and excess inventory. If off-current price's success is any indication, things are looking up.

Latest Textile News

 31 December 2022, Mumbai

Clothing companies are suffering losses. As inflation is rising, industry leaders see higher-than-anticipated operational costs as having an impact on profits.

A challenging May earnings season throughout the industry has been followed by the reality of sustained inflation, a more vulnerable consumer, and the possibility of even more unstable economic conditions as the Federal Reserve works to control inflation. 1 Prices are increasing along the entire value chain, including for labor, commodities, and transportation.

For instance, inflation in the US reached 9.1 percent in July, marking the highest 12-month increase in more than 40 years.

In the past, the garment industry's price realization has fallen far short of inflation rates and increases in household income. For instance, between 2010 and 2019, US apparel prices increased at a CAGR of just 0.4 percent, trailing both the CPI overall and the median household income. Although the difference has lately closed, pricing increases in the United States still lag CPI growth by around 1%.

Inflation affecting the apparel business

Clothing/garment brands and stores are under pressure in this atmosphere. In addition to having to deal with growing prices for everything from freight and fuel to labor and manufacturing supplies, businesses also have to contend with a weakening economy and declining customer confidence.

In fact, from 44% in October 2021, the proportion of consumers who said they were optimistic in our May Consumer Pulse survey dropped to 38%.

The decline in consumer confidence was most pronounced among high-income consumers, and it also occurred in the eurozone throughout the latter half of 2021 and the first few months of 2022 as inflation accelerated. Consumers are now beginning to purchase in more value-conscious ways.

According to the Consumer Pulse study, US consumers switched brands and retailers more frequently in 2022 than at any other point since the pandemic started, and the majority of them indicate they plan to keep switching, mostly to find lower pricing. A little over one-third of those who switched decided to purchase private-label goods.

Challenges faced by clothing brands

Clothing/apparel brands and retailers may benefit from taking complete action on price, merchandising, and supply chains to deal with inflationary pressures and changing customer purchase behaviors.

Apparel/Clothing firms may need to tread carefully even as they try to safeguard their margins in order to avoid alienating clients who are already dealing with recent price rises.

In our poll, more than 75% of participants claimed to have seen price increases, notably in the clothing and fashion sectors. Some clothing firms might think about increasing ticket prices or cutting back on promotions as a way to pass along their costs to customers.

However, some have attempted to tolerate rising costs while holding the line on prices and promotions in order to gain or keep short-term market share due to the discretionary nature of the apparel business and the potential for lengthy production cycles.

In the meantime, insurgent firms are upending the accepted paradigms of fast fashion and garment selling in response to a global supply-chain shock.

Businesses like Shein are expanding quickly in order to control the Gen Z and masstige consumer bases. As a result, well-known companies and retailers may strike a compromise between the need to protect margins and control inflation without driving away their expanding core consumer segments.

Latest Textile News

 06 January 2023, Mumbai

Among the reasons for the slowdown are the overall market recession, competition with China and Bangladesh delayed winter season, etc. Every year, manufacturers wait for the winter season for orders, but this year they are worried owing to the low sentiment of buyers.

Facing major competition from industries located in other states, the micro and small units dealing in the garment and textile products in Ludhiana have pinned high hopes on the next Punjab government to equip them with the latest technology by starting new schemes.

Hosiery Town

Ludhiana is known for its hosiery and woolen products worldwide. The products manufactured here are sent to Uttar Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh, and Bihar, among others.

Ludhiana in Punjab accounts for over 90 percent of the total winter wear production in the country. There are around 12,000 units, a majority of them in the micro, small and medium category, which are engaged in the production of winter wear in Ludhiana.

Manufacturers of winter clothing in Ludhiana claim that the warm start to the season this year has left them perplexed with the advent of the winter season. Adding to the woes is weak demand, especially from the stores distributed across the nation, the business is on the verge of losses.

LUDHIANA OFFERS, HOSIERY, WOOLEN GARMENTS, WOOLEN KIDS' SUITS, QUALITY PRODUCTS, FIXED PRICE, FACTORY MANUFACTURER UNITS, AND WARM SUITS.

Shortening season

Ludhiana's hosiery cluster is staring at losses on account of lower offtake of garments. Because of the delayed winter repeat orders are hard to come by and retailers have been left with a heavy stock of winter wear.

The weak demand for clothes for the cold weather has forced the hosiery industry to offer discounts in early December to attract customers at retail counters and clear the stock. Otherwise, big brands in the hosiery sector start offering discounts only in the last week of December or the first week of January.

October, November, and December are the key months for Ludhiana's hosiery sector.

Landscape

Key markets for the hosiery industry are Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar, and some northeastern states. The industry is famous for winter garments like jackets, sweaters, thermals, cardigans, pullovers, innerwear, shawls, etc.

But there has been a very low demand for garments in this season from wholesalers and retailers. They placed orders only once and have not come back for placing orders for a second or third time.

Some manufacturers are offering a ten percent to 20 percent discount on winter wear” Atul Saggar, general secretary of the Apparel Manufacturers Association Ludhiana, said, “The new state government can save garment units by subsidizing the purchase of new machinery and opening a technology upgrade center which can guide the garment units about the latest technologies.

Demand woes

The economy's unpredictability and excessive inflation are the major factors preventing customers from purchasing anything a little more expensive. The marriage season in December also failed to lift demand for winter wear, which came as another setback for the industry.

More money is being spent on vacation and eating out than on new winter clothing, according to Munish Avasthi, MD of Sportking India Ltd.

Industry looking at credible alternatives Given the weather vagaries trade is looking at exploring alternatives to secure its future Garment manufacturers from Ludhiana are planning to shift to Jammu Kashmir.

In view of the incentives provided to set up industries in Jammu Kashmir, they feel the cost of production will be very low as compared to Punjab.

Latest Textile News

 03 January 2023, Mumbai

The winter wear market is estimated to be worth Rs. 13,920 crore (as of 2013), and by 2023, it is anticipated to expand by 9% to Rs. 32,000 crore. More information on the winter wear market is provided by Amit Gugnani, SVP - Fashion (Textile & Apparel), and Kanti Prakash Brahma, Principal Consultant, Fashion, Technopak. India's Textile and Apparel (T&A) industry is currently valued at US$ 99 billion and is anticipated to reach US$ 237 billion by 2023, representing a CAGR of 9%. India was the second-largest exporter of T&A after China, with T&A exports totaling $40 billion.

Market pie

The domestic T&A market in India is thought to be about US$ 59 billion, with textiles and apparel accounting for 31% and 69% of that total. Due to demand factors such rising income levels, accelerating urbanization, and increased purchasing power, the industry is anticipated to experience rapid growth. The domestic textile and clothing market is predicted to grow by 9% by 2023, reaching a value of US$ 142 billion, with textiles and apparel set to contribute US$ 101 billion and US$ 40 billion, respectively.

Trade dynamics

Menswear, womenswear, boyswear, and girlswear are the four main categories into which the Indian clothing market is divided. Menswear currently accounts for the highest share of the garment market, with a 43 percent share, closely followed by womenswear (37%), menswear (10%), and girlswear (9%). By 2023, it's anticipated that womenswear will surpass menswear in terms of size.

Seasonality

Consumers have developed a demand for seasonal apparel and event gowns as a result of ongoing lifestyle changes brought on by rising globalization, industrialization, and purchasing power. One of these seasonal categories, winter wear, had an estimated 2013 market value of Rs. 13,920 crore and is predicted to expand by 9% by 2023 to reach Rs. 32,000 crore.

The four winter months of October through January, when there are also many festivals and weddings, are typically the times when winter clothing sales are at their highest.

As a result, some holidays encourage increased shopping and bargains. As a result, the majority of brands offer their biggest discounts at this time: Diwali sales, Christmas and New Year's discounts, and end-of-season sales in January and February. Summer or general sale sales for the majority of brands equal their sales from the other eight months in these four.

Consumer preference and choice

With customers becoming more brand aware, they prefer to purchase branded winter clothing at the end-of-season sales, which typically offer steep discounts. Additionally, since the length of the season affects demand, manufacturers seek to sell off the season's inventory at a profit.

In order to draw in new customers who now buy non-branded winter clothing, players in the branded category typically aim to introduce new product lines for the next season.

Competitive landscape

Additionally, there is fierce competition among brands to attract a larger market share; as a result, they place a greater emphasis on cutting-edge and stylish products.

In addition, the unorganized sector is competing on price, which forces brands to focus on mid-premium product lines. In order to meet these challenges, gain an advantage over rival brands, and increase their market share within this expanding segment, brands must work on their strategies.

Latest Textile News

 30 December 2022, Mumbai

The COVID-19 epidemic presented the globe with a significant problem in 2020, and industries experienced their worst-ever conditions. With revenues and margins under pressure, almost every industry is still experiencing uncertainty. Demand for clothing has decreased as a result of unbalanced economic activities.

In 2020, the McKinsey Global Fashion Index anticipated two cases of recovery: Earlier Recovery, which stated that global fashion sales would decline by 0–5% in 2021 compared to 2019; and Later Recovery, which stated that the sector would return to the same levels of activity as it was in 2019.

The second, titled Later Recovery, predicts that fashion sales would return in the fourth quarter of 2023 after falling by 10 to 15% over the previous year compared to 2019.

How the pandemic shook the apparel industry Due to the pandemic's growing need for digital access to everything, businesses now have more opportunities for innovation, efficiency, and scaling up. Additionally, it has emphasized the necessity of switching to more ethical and responsible working practices.

In the upcoming years, digital platforms will be the key engine of growth as people continue to be wary of large-scale gatherings.

It is anticipated that both consumer demand and working practices would undergo significant and long-lasting changes among industry participants. Brands may face short-term difficulties such as shifting their attention to casualwear, continued pressure on luxury, shorter production cycles, and cash flow issues that will slow down investment.

The building craze for athleisure

Work-from-home (WFH), at-home workouts, and meditation have changed the norm and raised demand for already popular categories. Additionally, since a few months ago, individuals have become more committed to an active lifestyle, which has increased demand for activewear, loungewear, etc.

One out of every four #covid-19 postings, according to Heuritech's Instagram study, is about living a healthy lifestyle. Activewear actually demonstrates a surge among customers in general.

Leggings and cycling shorts are popular since they are hot fashion products at the moment. As customers focus more on sports activities, meditation, yoga, or simply lounging around, loungewear is on the rise. These items appear to be the hottest fashion trend right now.

Athleisure market size

The size of the worldwide athleisure market was estimated at USD 306.62 billion in 2021 and is projected to increase at a CAGR of 8.9% from 2022 to 2030. Over the projected period, it is expected that the young population of the nation will become more passionate about sports and outdoor recreational activities, which will raise demand for athleisure gear.

An important factor influencing this trend is an increase in consumer fitness and health consciousness, which is fueling the desire for stylish yet comfortable clothing. Furthermore, a few companies promote happy customers while focusing on particular athletic product categories. Additionally, many organisations provide consumers with specialized equipment that is best suited to certain client types as well as qualified assistance to assist them in making the right decisions.

Athleisure is now joining hands with sustainability, which is the latest fashion trend. According to Forbes, consumers continue to seek out and spend money on new products made of long-lasting, high-quality materials, and many companies are working to make the connection between fashionable and cutting-edge designs.

With a market share of more than 60.0% in 2021, mass athleisure dominated the industry. Athletic-casual attire is now accepted in a variety of social contexts.

These clothes are now deemed appropriate for the workplace and are made from sports-inspired materials like spandex, lycra, and other synthetic fibres. Around the world, more people are shopping online and buying items to pick up in person, and both trends are expected to continue.

The COVID-19 lockdowns have also increased the number of people making their first online garment purchases: as a result of the epidemic, 14% of Americans and 17% of Chinese consumers made their first online apparel purchases.

Latest Textile News