29 November 2022, Mumbai

Over the last decade or two, technological advancements have accelerated assiduously and COVID-19 was just a turning point for smart technologies as a fundamental tailwind and paving the way to digital technologies applications super highway to emerge, enhance and improve novel ways of transacting through the last word has to be said.

E-commerce is expected to expand as more consumers shop online rather than going to physical businesses. The Covid-19 epidemic accelerated this trend. While more individuals are purchasing online, there are also changes in how people shop.

M-Commerce Architecture

M-commerce, also known as mobile commerce, is expanding quickly and is particularly well-liked by millennials and GEN Z consumers. Mobile payments can readily incorporate biometrics thanks to a device's built-in fingerprint security capabilities. For instance, customers can use their fingerprints to access apps like Google Pay and Kroger Pay. In its cashier-less stores.

Evolving Solutions

Amazon has disclosed that it is testing palm recognition software, which enables payments to be performed without the aid of a gadget. In 2017, Alipay tested facial recognition technology, making it available to users for payment processing.

Buy Now, Pay Later (BNPL)

In addition to digital wallets, BNPL is another payment option that is growing in popularity, particularly among younger shoppers. In recent years, BNPL has experienced tremendous expansion, a tendency further up by the Covid-19 epidemic. As it allows customers to make payments in numerous installments without penalties or interest, BNPL is positioned as a less expensive alternative to credit cards.

Fintech companies like PayPal, Affirm, and Klarna, the market leader, created and popularised BNPL. Since it is readily available with simple application procedures and accessibility offered by many new-age financial institutions like Klarna, BNPL fits well in online payments.

In the BNPL market, there has also been an explosion in the introduction of new products, with companies like Amazon and JPMorgan Chase launching BNPL services.

Blockchain

The most well-known application of blockchain technology is in cryptocurrencies. While most people generally only think of Bitcoin when they think of cryptocurrencies, there are over 9,000 different types. Stablecoins, privacy coins, utility tokens, security tokens, and others are among them; each has a unique purpose and set of qualities.

Ethereum, for instance, serves as the foundation for many decentralized financial apps and non-fungible coins (NFTs). Since 2020, cryptocurrency has gained significant attention primarily due to the unexpected increase Bitcoin saw during the lockout. Retail customers see it as a chance to transact.

Companies like Visa and PayPal have benefited from this perception by enabling customers to buy, sell, and store cryptocurrency on their platforms. Use-Case Model

By offering virtual apparel/clothing and accessories for their digital avatars, businesses and brands see NFTs as a way to market to customers who are digital natives and who are spending more time online. The Zepeto app is a world-building avatar software that enables users to create a virtual animation of themselves with changeable facial characteristics, hair, and garment/clothing.

Ralph Lauren, for instance, has introduced a line of digital attire. In-app purchases by users allow them to customize their avatars further. Such efforts will promote online payments, but the laws governing NFT copyright and patent infringement are still developing, and it is still being determined what the consequences will be.

Spotlight on Apparel Sector

This article assuredly has put out something which is not a new argument viz. 'Arrival of UPI moment'; A thesis highlighting and underscoring the changing payment habits amid the omnification of noteworthy contributions drawn both out of online retail and brick-and-mortal shoppers to adapt to the fast-changing digital transformation having a positive influence on purchase decisions for fashion apparel and quite certain it is a settled argument.

The worldwide apparel/garment manufacturing market was valued at USD 948.2 billion in 2020. It is expected to increase to USD 992 billion by the end of 2021, with the Asia-Pacific region accounting for more than half its value. The apparel business is one of the fastest-growing businesses in the world.

However, because manufacturers are hesitant to implement these changes, the industry needs to be faster to develop, particularly in the digital space. A group of solutions known as biometric technologies can help to strengthen the security of online payments while lowering transactional friction. Compared to password-based security, biometric identifiers like fingerprints, facial recognition, and voice recognition are challenging for cyber criminals to copy. This reduces the amount of online fraud.

But as consumers' needs for shorter fashion cycles grow and labor costs rise to match these demands, more firms are stepping outside their comfort zones to investigate digital alternatives for their operations.

Latest Textile News

28 November 2022, Mumbai

The Fourth Industrial Revolution is underway, which is reshaping the apparel/garment business which has the codename "Apparel 4.0." With the aid of cutting-edge technologies like IoT, AI, and cloud computing, it can keep an eye on businesses and deliver services during the manufacturing process in a completely impartial manner. The textile and apparel/garment industries (T&C) are significantly impacted by technology.

Technology for the Greater Good

The Bangladeshi garment industry has gained new potential because of this revolutionary transformation. It has been demonstrated through a few experiments that technology has a substantially better rate of return than industrial equipment.

The Internet of Things (IoT), radio-frequency identification (RFID), robotics, augmented reality, additive manufacturing, and cloud technology are just a few examples of the digital technologies that True claims industry 4.0 is pressuring businesses to include.

Occurrence of industry 4.0

Companies need help to attain stability through technology while investing in pricey, cutting-edge technologies. Sustainability can only be achieved by transforming the vast amounts of data generated by automation and digitization into helpful information.

The Cyber-Physical System (CPS), a significant element of Industry 4.0, is primarily responsible for addressing the difficulties of active and dynamic production. Industry 4.0's CPS relies on cutting-edge technology to operate the entire industrial system. ERP, RFID, the Internet of Things (IoT), cloud computing, additive manufacturing, augmented reality, and systems learning are just a few examples of the technologies that make up Industry 4.0.

Emerging technologies

The topic of blockchain has gained a lot of traction among clothing retailers. This is because they can quickly and easily gather information from retailers, manufacturers, carriers, and fiber sources. Sustainable products can also be tracked using data from the manufacturing process and the raw materials employed. These days, we can generate patterns using computer software, saving time and requiring comparatively little labor.

The leading apparel/garment industries in the nation are currently moving toward CAD software. This software makes it easy to quickly build designs for various clothing/garment sections and keep them in the computer's memory. This soft copy of the pattern can be expanded or contracted to create a way for apparel/clothing in various sizes.

Innovation Hacks

Innovation in AI is being used to create new solutions that will boost productivity and effectiveness. The fundamental operations of identification, observation, inspection, grading, prediction, and so on form the foundation of the concept of AI. These jobs are typically arduous, which frequently causes the workers to produce ambiguous findings.

Where we go from here

AI can improve the accuracy and efficiency of routine work with various categorized technologies. Even in industrialized nations, there is still limited use of AI in textile technologies.

However, wealthy countries—particularly the United States, China, and Germany—are developing new technologies to address the intricate issues with their textiles.

Latest Textile News

25 November 2022, Mumbai:

Before the internet existed and its democratization of the tools that traditional industry has used for decades, direct-to-consumer (DTC) selling was on the rise. DTC cut out the intermediaries, allowing brands to maximize their earnings.

D2C playbook

"Brand purpose" has become crucial for the overall positioning of brands as customers grow more aware of environmental challenges. It aids the brand in maintaining appeal among consumers who choose sustainable fashion over fast-fashion options.

The fashion industry has come to understand that adopting a direct-to-consumer (DTC) approach gives a brand more flexibility over how it presents itself to customers due to the sector's warming up to digital methods.

Retailers may develop at-home experiences, interact directly with customers, and foster brand loyalty by using subscription boxes. The advantage of a subscription service is that once customers sign up, they are less likely to go through the process of switching brands and will simply auto-renew.

Shopping needs can frequently be driven more by convenience than brand loyalty. COVID-19, A fundamental tailwind; The step is in tandem with the group’s aspiration, and vision strategy to launch and back to new-age digital ventures. Another benefit of DTC is that, in contrast to a traditional wholesale shop, brands can contact directly with consumers and better understand their specific needs.

DTC scenario

Studies indicate that the decade 2021-2030 will see D2C brands attract significant attention and investments as they keep growing. KPMG India reports that there are more than 800 D2C brands in the country today. The D2C sector is worth $44.6 billion currently, projected to touch $302 billion by FY 2030. Further to one of the Financial Express reports," The latest report reveals that D2C brands are estimated to be $60 billion industry by FY27, registering a CAGR of about 40%.".

Helps brands launch new products; Stakeholders believe the D2C brands' segment enables new retailers or brands and labels to launch their products as no big product development, lead times, and investment is required. India is witnessing a rapid rise of D2C brands in all segments, and the market is forecast to grow exponentially.

E-commerce majors take to D2C

With an expected market size of $100 million by 2026, D2C brands are expected to be the biggest drivers of the retail market. In 2021, these brands clinched around 174 deals to raise $1.81 billion in the capital. This not only resulted in the creation of thousands of new brands but also gave enablers and digital sellers new growth opportunities by launching new disruptive models such as e-commerce roll-ups, houses of brands, etc.

Aditya Birla Group

Aditya Birla Fashion and Retail Limited (ABFRL), India's leading fashion company part of Aditya Birla Group announced earlier this year the launch of its new D2C entity– TMRW to cash in on the fast-emerging business category, with the mandate to acquire as well as incubate 30 brands in the next three years. The newly incorporated entity will organically incubate and also acquire promising and scalable D2C brands.

It was on the back of "The Board of directors of the Company" in their meeting providing an omnibus approval to set up a new subsidiary towards building a portfolio of distinct, new-age, digital brands across categories in fashion, beauty, and other allied lifestyle segments. The D2C portfolio will be built through organic and inorganic means.

This venture will initially be funded through ABFRL's internal accruals. At an appropriate time, the company will look to bring in external capital to accelerate the growth journey.

The newly set up D2C entity TMRW intends to acquire as well as incubate direct-to-consumer fashion and lifestyle brands going forward. New Age consumers in focus; Many of these brands may not be able to expand their operations in the digital space yet, they can leverage ABFRL’s tradition, experience, and network by acquiring a plethora of brands like the company.

"We also plan to help ABFRL grow its brand portfolio by investing in other selective brands, as we do not want to miss out on consumers of the future. While our existing brands will grow and continue to remain relevant and (eventually) become more digitally-savvy, there is a whole bunch of new digital-first brands, which would come up and that's why we decided on this strategy.

Leveraging our core capabilities around design, product creation, sourcing, and brand building that have enabled us to create some of India's most loved fashion brands in the offline space, we now wish to craft a blockbuster portfolio in the digital space as well.

We are confident that this foray will successfully meet the aspirations of digitally native customers and also create long-term value for investors and other stakeholders.

The company will now accelerate the process of building the D2C framework and identifying key talent for this play. ABFRL will look to tap into the broader tech ecosystem and collaborate effectively with its e-commerce partners, tech service providers, and digital marketing agencies to scale this business rapidly.

The House of Brands business of Aditya Birla Fashion subsidiary will initially include 8 to 10 brands acquired through its own capital and continue to remain relevant and (eventually) become more digitally savvy. These small companies will have the required potential to become large brands over the next 5-10 years, In about three-four years, the ABFRL subsidiary will be created to invest in early-stage brands, as we are eying @10-15 percent of its revenue coming from its D2C subsidiary in the next five years, said Ashish Dikshit, Managing Director, ABFRL.

Prashanth Aluru is the Co-Founder & CEO, TMRW 'House of Brands'. To be known as the House of Brands, the initiative will help it align itself with evolving markets, says an Inc4 report.

The company has a bouquet of leading fashion brands and retail formats under its belt brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England established for over 25 years, while Pantaloons is one of India’s largest fast-fashion store brands and it also has partnerships with Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, Reebok & there is a whole bunch of new digital-first brands.

The company has forayed into branded ethnic wear businesses including Tasva, and Jaypore, and strategic partnerships with designers including Shantanu& Nikhil, TarunTahiliani, and Sabyasachi Mukherjee.

As of December 2021, the company had a network of 3,370 stores across approximately 26,744 multi-brand outlets with over 6,751 points of sale in department stores across India.

Other than providing growth capital, ABFRL's proposition is built around its strong operational expertise where it will utilize its rich experience and capabilities to scale up this portfolio.

Latest News Headline

As per ET dated 25-11-2022 breaking news on how the D2C trade landscape is unfolding," Aditya Birla Fashion & Retail (ABFRL) is in the advanced stages of buying a majority/controlling stake in apparel and accessories brand Bewakoof.com for 100 crores or thereabouts, consolidating its position in the direct-to-consumer (DTC) segment, the report further states that both entities have signed a non-disclosure agreement having finished due diligence and this is going to have a serious impact on the trade dynamics going forward".

Latest Textile News

 29 November 2022, Mumbai

Business is after all to build the competitive advantage of any business enterprise/service provider/retailer and, is well described as in how exactly to deliver services or goods value offerings to the valuable customers with the expected satisfactory outcomes; building in effect enduring loyalty, enhancing well-designed customer experiences.

Customer value propositions; at the end of the day it is the customer who defines what is valuable and what is not defining intended value propositions and desired profitability as a win-win approach to champion customers in their value-creating consumption activities.

Customer Touch Points

Over the past two years, the COVID-19 epidemic has changed consumer preferences, routines, and attitudes. This significantly affects how consumers purchase and use products and services. Multinational retailers are now using modern business tactics to seize fresh retail prospects. Consumers no longer make the distinction between offline and online consumption channels.

Large corporations are experimenting with various strategies to create seamless retail experiences that are integrated across all channels as a result. Retailers are experimenting with income models to enhance consumer value by utilizing well-established e-commerce platforms and conventional methods.

Customer Experience Journey

The country's e-commerce market is steadily growing. Customers have a wide variety of things to choose from at competitive prices. The retail business is experiencing the most significant change ever, thanks to e-commerce, and this trend is expected to last for many years. Retailers could use digital channels to increase customer reach in tier II-III cities while spending less on physical estate.

Momentous E-Commerce business; Due to an increase in online shoppers in the nation, the online retail business in India is predicted to grow from an anticipated US$ 55 billion in 2021 to US$ 350 billion by 2030. By 2024, retail's online penetration is expected to increase from 4.7% to 10.7%.

Growth levers; However, the industry's long-term prospects appear promising, supported by increasing income, favorable demographics, the entry of foreign competitors, and increased urbanization.

Spoilt for choice

Any segment's purchasing habits can be separated into utility and luxury categories. But commercialization gives consumers a wide range of choices, allowing them to classify things purchased for utility according to their quality and cost. The idea of "Value Retail" satisfies this aspirational and financial need of the consumer by offering high street designs at reasonable rates for the masses, while luxury companies preserve their exclusivity by remaining present in a few key locations.

Value retail stores in this scenario achieve their revenues thanks to their extensive reach and distinctive target group segmentation. The fact that value retailers are able to keep their goods at competitive costs is remarkable in this case.

Genesis; Value retailing's origins can be traced to periods of market distress when survival depended heavily on innovation. A change in consumer purchasing patterns brought on by the recession led to negative growth in the retail industry. Customers set stringent spending limits and choose to purchase things at promotional sales at discount prices.

Cause and effect

Consumers who were accustomed to purchasing goods at discounts and with special offers have continued to do so as the world has recovered from the recession. They preferred to purchase high-quality goods at prices that were lower than those of branded goods.

The comeback of retail and larger size value retail concept stores were aided by this. Value retailing, a big format store concept today, sells branded goods and accessories at the greatest prices. Value retailing uses only 1.5x multipliers to give customers the most cost-benefit, in contrast to premium brands that employ 3x multipliers to recover their costs. This idea is mostly intended for Tier II and Tier III cities where retail establishments sell goods at reasonable prices.

How Consumers Are Responding To Inflation

Consumers today are looking for ways to lower their clothes purchasing costs and demand and expect high quality at low prices. They are looking for worth. Their buying tastes have changed noticeably, with a greater emphasis placed on product pricing.

Value retailing relies on the strategy of selling high-quality goods at wholesale costs to be successful. Any bargain retail store's products are on par with what luxury brands are now wearing for the season.

Marketing Strategic Planning; The Tier-II & III category may access the most recent trends and fashions from around the world thanks to discount merchants. A few businesses in the retail industry in India have entered the Tier-II & III category market. Some of the major companies in India are 1-India Family Mart, Vishal Mega Mart, and Easy Buy Retail.

The article attempts to resolve the duality of customer value proposition and the organization's perspective/key strategic role and its larger purpose in pursuit of building a sustainable competitive advantage as a give-and-take relationship rather than a mere transactional relationship.

Latest Textile News

26 November 2022, Mumbai:

Key tenets of the retail industry Indian retail sector has been a point of discussion in trade discourse with noises/conversations around putting the customer at the center powered by business models, newer connectivity models on the back of the 5G rollout wherein live streaming, near real-time data, is taking you where your customer is heading to.

And levers like the burgeoning middle-class population, one life one chance syndrome, and where the debate on Spenders vs Savers drives consumerism.

Growth of Conventional Retail

One of the recent studies put out by consulting firm McKinsey & Co. is of great interest to the industry giving insight on conventional retail," Conventional retail starts to see shrinking space under its feet expected to fall from 85 percent currently to a much lower level of 65-70 percent in the coming say 4-5 years and surprising none as we have seen e-commerce and modern trade retailers are leapfrogging & clocking an increase of 30 percent or thereabouts".

E-commerce

The thesis," Increased internet penetration will enable India to become the second largest e-commerce market by 2034 globally from its current ninth rank. By 2030, 1.3 billion Indians will be able to access the internet and smartphones with 500 million online shoppers" says AkshayGulati, Co-founder, of Shiprocket, a logistics software platform.

Emerging technologies for Services and Solutions

As cliché goes technology is an enabler. The evolving technologies marching retail to the future enable retail transformation given retail industry is on the cusp of revolutionary growth. Modern retail alongside the rejig in conventional retail is responding to the fast-changing consumers' buying perceptions and preferences.

Essentially these dynamic technologies have started to help companies realize the greater purpose and meaningfully achieve the most complex business objectives.

The CBRE report recommends retailers infuse more technology in stores. Already, apparel retailers are using technology like virtual trial rooms and smart mirrors to for customers to ‘experience’ the outfit or accessory instead of actually putting them on.

The changing landscape

In hybrid mode, the cliché goes like this," The best of the two worlds". Given that the 'Online and offline channels in a very competitive environment' were once two altogether different worlds but no more particularly with the rise/dominance of e-commerce more importantly the emergence of mobile e-commerce, the line between online & offline is only becoming thin. As trade is trying to address a very different set of customers.

Digitization of retail

For a fashion retail brand, digitization means re-imagining how shopping in a digital world should play out, rather than merely digitizing the shopping process for a physical world. The digital transition is greatly impacting almost every industry. Effective data management or business management are just two aspects of this transition: cost savings and improved productivity.

After studying the possibilities of digital technologies, fashion retail firms have started integrating technology into every aspect of their operations. Geographical limitations are no longer an issue thanks to technology, as customers can now shop anywhere.

Innovations in payments

A case in point is a recent innovation hack e-tailer Amazon has demonstrated helping stores set up online outlets. Amazon has launched a new initiative called smart commerce that will help offline stores set up their own digital store-fronts in addition to selling on its India marketplace.

Another classical example is demonstrability comes from Snapdeal's e-marketplace with the integration of Cashfree Payments’ product ‘Cashgram’, Snapdeal will be able to process refunds with only the customer’s mobile number or email address, with credits automatically flowing to the customer’s UPI-linked bank account, or wallet.

Visual Merchandising

The ability to analyze client behavior, however, is a crucial talent. Let us look at some of the infectious In-store solutions enhancing customer engagement driving sales and volume growth. Visual merchandisers present, arrange, and display goods in shops and storefront windows, which are essential locations where buyers may view, choose, and purchase goods.

Personalization of the customer journey This is driven by the demand for plug-and-play outlets, particularly for small, independent firms. Showrooms with personalized designs are becoming more popular.

Improving In-store experience can help retailers not just boost sales, but also increase customer engagement, according to the findings of a report by realty consultancy CBRE released earlier this year.

Customer of the day

Direct touch with clothing and textiles, smells and odors, and music selections should all be in keeping with the brand, store type, and target demographic. That is a big debate point that customers are looking for engaging, immersive, and convenient experiences that give them a reason to visit stores instead of making online purchases.

As a result, experiential retail is counterbalancing the growing popularity of e-commerce, and ensuring profitability by increasing the brand’s physical presence, the report adds.

Retailers are favoring dynamic and flexible lease contracts as they meet rapidly changing consumer expectations.

D2C brands

The fashion industry has come to understand that adopting a direct-to-consumer (DTC) approach gives a retail brand more flexibility over how it presents itself to customers due to the sector's warming up to digital methods.

Retailers may develop at-home experiences, interact directly with customers, and foster brand loyalty by using subscription boxes.

Logistics & supply chain

The number of e-commerce logistics shipments is expected to grow by four times in the next five years.

Thanks to new-age tech-enabled players who have entered India’s logistics arena, it is now easier for small- and medium-sized businesses to transport goods, and there is a drastic increase in the speed and efficiency with which parcels are delivered.

Data Is The New Oil

Since many retail businesses still view their data infrastructure as a cost center, they should use the data to continually enhance every aspect of their operations to turn it into a profit center.

The majority of apparel/retail firms plan to increase supply chain transparency by 2027 but obstacles remain, a global survey by KPMG and Serai finds.

There is a tremendous possibility for any firm in the world to develop new goods and services across business lines by combining internal data with external data.

Ajay Banga, Mastercard’s CEO, added that data is even more valuable than oil, considering that oil is a scarce and finite resource, while data is inexhaustible and only increases.

Competitive Pricing is Tricky

When setting prices for items, it is essential to consider the target market's comfort level with price and purchasing power.

Latest Textile News

25 November 2022, Mumbai:

Setting context to how countries are responding to the Western world's impending slowdown/recession given the global economic outlook put out by IMF very recently which doesn't augur well considering global economic fragile health that has not yet quite fully recovered from the pandemic shock.

What all you need to know

Same here back home when one was to evaluate the Apparel Trade Scenario in Key Global Markets including India in the month of Nov 2022’ reflects apparel/garment export presently was nowhere up to the mark, given a serious fall witnessed to the tune of 24 percent compared to the period October 2021.

Albeit, it was noticed that its is YTD basis still 11per cent higher than in 2021. But the devil lies in details, to be borne in mind the persistently high inflation, there is no effective volume growth over the period 2019.

Understanding the Consumer Confidence

The article is an effort to debunk leaving you with insights that what ails the global economy and the persistence of red-hot inflation hurting business confidence. Putting a spotlight on Indian apparel exports reveals a rise of 8 percent in exports to the US market, whilst it reported a fall in exports to the UAE and the UK by 3% & 1%.

Furthermore, it reflected in the period of January-September 2022 on the whole apparel exports clocked were around $12billion & interestingly it was broadly attributable to the US exports achieving 35 percent share, at the same time the breakdown was; the UK had a 9 percent share, the UAE 8 percent, Germany 6 percent, France 4 percent and others made up 38 percent.

Given the gloomy global economic outlook, there is no point Tom-toming consciously knowing given Europe is undergoing currently inflation-ridden crisis on the back of an energy price crisis/cusp of energy poverty and the UK officially slumped into recession and prognosis that the US economy will likely fall into a mild recession by the end of 2022 as the Federal Reserve raises rates to tame prices, according to economists at Nomura Holdings Inc. is likely to have an infectious impact on apparel/garment exporters in 2023.

One man's loss is another man's gain

Around the world, Japan’s apparel imports as of August 2022 were worth $2.8 billion reportedly it was 23 percent more than the corresponding August 2021. Let us look at how has China fared; In the US market, China witnessed a steep fall in apparel/garment exports notably its market share gradually shrank by 8 percent since the year 2019.

Beneficiaries; No wonder Vietnam and Bangladesh were the clear gainers registering a growth of 3 percent apiece. Although India also had a marginal increase of 1 percent.

Stepping back a little let us shift focus to the US market in the month of September 2022, apparel imports there were worth $9.6 billion which is 18 percent higher than the corresponding period of September 2021. Although to have a broader understanding on a year-to-date (YTD) basis, the imports are 35 percent more than in the year 2021.

Bird's Eye View of Europe

The trade data pinpointedly stresses that China is holding out its share/steadfast in the EU in the evaluation period of the year 2019-2022 with a healthy 29 to 30 percent share. The same also goes for India's credit, holding steady at 5 percent.

Bangladesh view

However, one needs to state here that China and India both haven’t seen secular growth whereas Bangladesh has grown by 3 percent with a 23 percent share in 2022. What is commendable about Bangladesh was in the January-August period of 2022, it had hit €14.35 billion worth of exports Vs.€8.85 billion in the corresponding period in the year 2021.

It does not surprise many considering Bangladesh's ongoing initiative of stress on green production expectedly, it is well set to pickup/is in a good position today China’s share in the EU in coming years on the back of the "EU's New Regulations End Greenwashing".

Vietnam & Turkey

Turkey and Vietnam–holding out but clocking no great growth. No brainer visibly encouraging EU’s import figures does not really move the needle as much, knowing that impressive growth numbers are owing to a low base value and inflated prices. The lowdown on numbers clearly reflects that the EU’s apparel imports like to like comparison in the month of September 2022 were around 42 percent more compared to the corresponding period in 2021. Shedding light on The EU apparel/clothing imports bucket from January-August 2022 stood as follows; €73. 4 billion, with China at 29 percent, Bangladesh at 23 percent, Turkey, India, and Vietnam at 12, 5, and 4 percent, respectively; while others clocked in 27 percent.

The country called the UK

The UK market has a tad different story to reflect given China, Bangladesh and Turkey have experienced a rise in their exports by 5, 4, and 3 percent respectively.

Throwing light on the UK’s garment/apparel import bucket for January to August 2022 showing a figure of 15.4 billion with China’s share coming at 24 percent followed by the expected lines; Bangladesh at 19 percent, Turkey at 10 percent, India and Italy at 7 and 5 percent respectively; leaving others accounting for 36 percent. When it comes to garment/apparel sales, the year-to-date (YTD) performance in the UK is 23% higher, and while only in October, it was 3 percent higher than the previous October standing at a total value of £ 3.5 billion.

On the whole, the outlook of apparel sales, imports, and exports is positive but the uncomfortable reality of lack of global economic visibility makes 'Economic Predictions' difficult.

(CREDITS: Wazir Advisor’s latest report)

Latest Textile News

28 November 2022, Mumbai

One of the global quotable quotes in the realms of fashion is which is true and valid as a motherhood statement even today made by Oscar Wilde,“ Fashion is a form of ugliness so intolerable that we have to alter it every six months Essentially it is what drives The Future of Fashion.”

Today's generation is entirely stylish, and we live in a fashionable time. They are at ease residing in a modern environment. They have an excellent need for new-fangled weave designs as a result. Fashion designers need help to keep up with the rapidly evolving trends of the international market.

They may need help to meet market needs. This happened as a result of how time-consuming fashion design is. We know that using manual processes to design and produce clothing takes time. Every fashion designer should remember that "today's design gets out of trend tomorrow" to thrive in today's cutthroat market.

Decode CAD & CAM

CAD and CAM technology have improved the speed, accuracy, and enjoyment of textile and garment design in the textile and apparel sectors. A fashion designer can draw patterns using a pen or mouse in a concise amount of time.

It not only aids in quick and efficient creation but also aids in updating the design (Clipping of specific areas, adding new forms, changing the shapes, distortion, resizing, recoloring, and color reduction) at any moment following the buyer's requirements.

Based on the considerations above, anyone can decide that CAD and CAM technology are both overly significant in the textile and apparel/clothing industry (T&A). Computer-aided designing (CAD technology) and computer-aided manufacturing (CAM technology) are crucial for solving this issue and keeping up with the market's ever-changing trends.

Both CAD and CAM technology save time and money and make tasks easier. Additionally, they increase productivity, resource efficiency, and customer satisfaction levels.

Computer-aided design and manufacturing, or CAD/CAM, is the most excellent option for textile makers.

Portends limitless possibilities

CAD is frequently used to support the design process in the fashion industry. CAD makes it easy to ensure that designs flow together in a collection and enables the design to be even more detailed. The adoption of contemporary designs and color schemes made possible by the introduction of CAD/CAM is making textile designs (fabric) more appealing and competitive to suit the continuously shifting customer demand for stylish designs nationally and worldwide.

Computer-aided drafting and design (CADD) offer practically limitless possibilities for fashion and textile designers. The fashion sector underwent significant technological upgrading throughout the past ten years, as well as the widespread use of information technology and computer science. Computer-assisted design technology is being used increasingly in the fashion and textile sector to unleash designers' creativity (power loom and handloom). Removing the labor-intensive manual design procedure improves designing potential while simultaneously boosting productivity.

CAD/CAM Technology

To boost productivity and break up design monotony in today's very competitive world, both fashion designers and textile designers must utilize the two CAD & CAM systems. Textile development and production advancements can benefit from CAD/CAM technology.

Almost all composite textile mills in the textile manufacturing industry use CAD/CAM software to provide a smooth manufacturing process. This software's variety of tools and functions liberates the design's originality everyready to make its own path.

The software quickly generates all the outputs needed to enable the craftsman to weave magnificent pieces. Technical drawings can be precisely created using CAD/CAM, offering clear instructions for the pattern development process.

The pattern technologist and the fashion designer will clearly understand designs that can be adapted to various textiles and current fashion patterns.

Latest Textile News

26 November 2022, Mumbai:

Shifting GSCs geographically is not something new as it keeps shifting from country to continent. Breaking down the conundrum & dilemma of disruption by means of changed strategies, shifting priorities, and raising safeguards after the onslaught of the pandemic which is not still not gone out of the system and still is very much within the system.

Central banks have injected steroids into the economies through the last two and half years but anyone would know they are a big enemy to the system's health in the long term as it has debilitating effects. The burden on GSCs is immense as time is ticking in the face of everyday disruption and, the courage to pursue is the only silver bullet if one has any, help come out of the trough to the ilk.

Often it has been witnessed during the downcycle that companies have different ways to navigate by being productive in challenging, volatile times testing the resilience of any supply chain on the back of intense belief as a testament.

De-risking global supply chains (GSCs)

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.

Changing geopolitical landscape

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.

But it was 1st time when we saw the urgency of serious global players having a large sourcing base in China looking at especially China Plus/China plus two/China alternate/Europe plus one strategy given their recent commentary as a GSC narrative.

Therefore, one of the foremost considerations was cost mitigation by reconsidering/reinventing the supply chain building blocks of the critical-most need for many, given the transformation necessitated flexibility, competitiveness, innovation hack, self-help, and agility as cornerstones.

The ecosystem is trying to re-balance the risks well decoupling to the degree possible without being obligated to the stark reality of unfolding geopolitical developments and not giving away any intentional appetite to veer away from the past when the world is in a unique place to discover the world beyond China as far textile GSCs scenario is concerned and, the theme is so well fitting to create alternate pathways or Atmanirbharta/self-help models in the textile GSCs.

Where do we go from here?

There is no debate on China being globally numero uno among garment and textiles exporters, but one cannot close eyes to unleashing developments on the ground leading to several emerging markets pivoting likes of Bangladesh, Cambodia, India, Vietnam, and Indonesia lately taking a prominence portending a future trend of wresting control of a slice of global textile cake/pie playing a pivotal role in the global fashion industry's dynamics.

Albeit the trouble is there are pain points/prime obstacles/imponderables as inexperience plays out & suppliers in these countries are still in the infancy level of cultivating their production processes and the transition definitively is not going to be a cakewalk as rediscovering unrivaled China still remains challengingGlobal Supply Chains (GSCs).
What is remarkably arguable is," India is in a uniquely good place & well poised to be the next ‘+’ opportunity for the global supply chains as new narrative building in the globalized markets interestingly is discovery mechanism, The Geopolitical Economic Imperative for Reorganising Global Supply".

Supply Chain Management

Just to set the records straight; according to USDA, a deeply incisive survey result conducted earlier in one of China’s leading provinces for textile and apparel/garment manufacturing outlined the killing effect of the so-called PRC’s zero-tolerance COVID policy in what we regard globally as championing the cotton market/critical piece of textile and apparel/clothing (T&A) market where things have gone awry; 'LIKE NOBODY'S BUSINESS' and just not a tick box exercise, something unthinkable before faltering on the metrics of production estimates been down, escalating costs in a nation having exported deflation for decades, chronically delayed deliveries, constantly acute labour shortage and administration struggling to get the dichotomy right/need to take some tough decisions and it is proxy to the world trying to look at parallel GSCs as long as risks are priced well.

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24 November 2022, Mumbai:

Indian readymade garment exports are expected to surpass the $30 billion mark by 2027, says rating agency CareEdge. This will translate into a 4.6 to 4.9 percent share in world exports as against the current share of 3 percent. For this fiscal year, the Centre set a target of $44 billion in exports for the sector.

India’s average price per garment also increased to $4.08 in 2021, compared to $3.92 in 2020.

However, looking at Y-o-Y growth in 2021 and an increase in the first two months of 2022, India should recover previous levels of apparel export growth in the remaining months of this year.

Present state of affairs

India’s readymade garment exports have been stagnant and rangebound languishing within around 15-18 billion dollars in the past five years. Currently, India has a market share of around 5 percent in the EU and UK as Bangladesh, Vietnam, and Pakistan have a tariff advantage of around 10 percent vis-a-vis India in some of these markets.

Wazir Advisor’s latest report, ‘Apparel Trade Scenario in Key Global Markets and India - Nov 2022’ reveals India’s garment export was not up to the mark at all, having suffered a decrease of 24 percent compared to October 2021. However, on a YTD basis, the exports are 11 per cent higher than in 2021. However, keeping the high inflation in mind as global commodity prices are increasing, there is no volume growth over 2019.

Happy to report here that given the government sources' trade data, "In a post-Covid-19 era, India has in the FY (financial year) 2022 ended up hitting historic textiles and apparel (T&C) exports $44.4 billion numbers, which of course has Handicrafts share too.

What can go wrong

Industry preparedness; The Indian apparel sector is preparing for tough times in the international markets, where it will lose customers to competitors and see reduced unit value realization.

However, challenges from competing nations such as Bangladesh and Vietnam remain as they have gained market share in some of the major export markets due to duty-free access amid China’s decline.

Moreover, apparel exporters are also losing the confidence of the importers and the buying houses," Lalit Thukral, President, of Noida Apparel Export Cluster (NAEC) said, adding the major reason for this situation is unchecked export of cotton to competing countries like Bangladesh, Vietnam, and Thailand.

Over-reliance on China for 90% of "critical accessories," such as sewing machines, fasteners, needles, lapel pins, buttons, and fabrics takes winds out of sails. The Indian garment sector lacks internationally competitive capabilities and international quality.

Levers Of Growth

With the free trade agreements, India's share in the UAE and Australian markets are expected to increase and the trade pact with the UK would be a game changer as it will create a level playing field. Further having a presence across the entire value chain reduces transport costs and lead time, thereby providing a cost-effective solution to customers.

India needs to actively pursue free-trade agreements (FTAS) with major export destinations like the EU and the US to push apparel shipments amid increasing competition from Bangladesh and Cambodia that enjoy tariff concessions, an RBI article released earlier reported.

As per one of the recent AEPC reports," We are witnessing high growth in the apparel sector, with more and more new brands sneaking in and making a mark in the apparel sector it further mentioned that it is looking at new markets such as Latin America, Australia, and Israel to push the country's exports, which are expected to record healthy growth during the current fiscal and in 2022-23, even though rising raw material prices are impacting the industry.". The signing of the CEPA, according to Narendra Goenka, Chairman of the Apparel Export Promotion Council (AEPC), would further cement India's dominance in the UAE. The chairman emphasized that the government has taken a number of steps to enhance exports and create jobs in the country.

China plus one strategy China plus two strategies China's supply chain alternate plans All of the above led to several companies/supply chains re-aligning/recalibrating giving way to businesses having migrated their manufacturing plants from China to other credible sourcing hubs such as south Asia, Southeast Asia, Africa, and where not.

Lose Some Win Some; Post Covid-19 world and emerging geopolitical developments and brewing Anti-China sentiments/China getting internationally isolated. As per global apparel trade estimates," In the changing global sourcing landscape, China's market share in the apparel exports globally market has come down from 35.15% in 2016 to 29.91% in the first half of 2021 and expectedly it is a secular trend going forward. With anti-China sentiments on the increase in the US, and worldwide putting India in a sweet spot.

Another interesting piece of China's apparel trade data as per one of the industry studies is," Chinese apparel shipment is reflective of the state of 'Unit Prices' the same has shown a serious decline slipping to the US $ 1.76 per SME in 2021 from the earlier US $ 2.35 per SME way back in 2017; that’s sanguine 25.10% decline in unit prices and is clearly an upsetter giving width away to the competition.

Albeit as things stand China continues to boast of EU's single largest apparel exporter nation enjoying a whopping 30% of its imports (Extra EU-27) value in 2021, whilst notably its value-wise share shrank from € 21.90 billion in 2015 to € 21.67 billion in 2021 to drive the point home.

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