26 October 2023, Mumbai

World Economic Outlook:

• Global growth is expected to plummet from 6.0% in 2021 to 2.7% in 2023. The World Economic Outlook predicts a sharp slowdown in global growth, from 6.0% in 2021 to 2.7% in 2023.
• The global economy is poised for a significant slowdown, with growth projected to decelerate from 6.0% in 2021 to 2.7% in 2023.

State of affairs

Garments imports decelerated in all key markets in August 2023, compared to the same month in 2022. The largest drop was seen in the US (25%), the EU (23%), and the UK (10%). 

China's market share fell in all four markets, while Bangladesh gained market share in the US, UK, and Japan.

Salient features:

• Global apparel imports are expected to decline by 10-15% in 2023, due to a combination of factors including inflation, the war in Ukraine, and rising labor costs in major exporting countries.
• China's share of the global apparel market is expected to decline from 39% in 2022 to 35% by 2025 as buyers diversify their supply chains and shift to more sustainable sourcing practices.
• Bangladesh, Vietnam, and India are expected to benefit from China's declining market share as they offer buyers competitive pricing, a large and growing workforce, and a commitment to sustainability.

Inference:

Key Insights

1. Manage supply chains
2. Access to products
3. Competitive prices
4. Meet sustainability
5. Consumer demands

Apparel brands and importers will need to carefully manage their supply chains in the coming years to ensure that they have access to the products they need at a competitive price. 

They will also need to focus on sustainability to meet the growing demands of consumers and regulators.

CREDITS: Wazir monthly apparel report

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21 October 2023, Mumbai

Personalized clothing is a growing trend in the fashion industry, as it helps brands reduce waste and excess inventory. It also allows consumers to express their style and have clothes that fit them perfectly.

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Here are a few examples of how different brands are offering customized garments to their customers:

• Using 3D Configurator Technology: Laneri, an Italian menswear brand, uses a 3D configurator to design its suits, blazers, shirts, polo shirts, and trousers. Customers can choose from various fabrics and styles to create their unique garments.
• Highlighting the Beauty of Women: Max Mara, a well-known brand, offers a customized clothing collection called the ‘Tailored Suit’ project collection. This collection includes seven jackets with single or double-breasted styles that fit the female form perfectly. Customers can customize the jackets, including the color, fabric, and fit.
• Collaborating with Trusted Partners: JTB Custom, a brand that offers made-to-order blazers, often collaborates with other brands, such as Rowing Blazers. The Rowing Blazer is famous for its quality and authenticity. Together with JTB Custom, they provide custom dress shirts, blazers, and sweaters with a fast delivery time of two weeks.
• Creating Unique Jackets for Women: Blazer Bar, an Italian company, offers a made-to-order and made-to-measure service for women’s blazers. Customers can choose from various styles and fabrics to create their unique jackets. Blazer Bar also offers a variety of customization options, such as embroidery and monogramming.
• Producing Eco-Friendly Activewear from Fabric Scraps: So What, an Indian activewear brand, is committed to sustainability. They produce their garments from fabric scraps, used plastic bottles, and water-based vegan and Oeko-Tex-certified dyes. Their latest collection offers customized leggings and high-support sports bras in vibrant prints and contemporary shades. Customers can choose the size, style, and fabric of their garments when they order.

These are just a few examples of how fashion brands are offering customized garments to their customers. As the demand for sustainable and personalized clothing continues to grow, we can expect to see even more brands embrace this trend.

Here are some of the benefits of personalized clothing:

• It allows consumers to express their personal style. Personalized clothing gives consumers the freedom to choose the colors, fabrics, and styles that they love. This allows them to create a unique look that reflects their personality.
• It ensures a perfect fit. Personalized clothing is made to the customer's exact measurements. This guarantees a perfect fit, which can be difficult to find with mass-produced clothing.
• It reduces waste. Personalized clothing helps to reduce waste by eliminating the need for brands to produce large quantities of clothing in different sizes and styles.
• It is more sustainable. Personalized clothing is often made from sustainable materials and processes. This is because brands are more likely to use high-quality materials and ethical manufacturing practices when producing made-to-order garments.

Overall, personalized clothing is a growing trend that offers several benefits for both consumers and brands. 

As the demand for sustainable and personalized fashion continues to grow, we can expect to see even more brands embrace this trend.

Key Insights

• Personalized clothing is on the rise.
• Benefits: Express style, perfect fit, reduce waste, and more sustainable.
• Examples of brands: Laneri, Max Mara, JTB Custom, Blazer Bar, So What.
• Trends: 3D configurator technology, collaborations with trusted partners, and eco-friendly materials.

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24 October 2023, Mumbai

Bangladesh's garment industry is diversifying its export markets and reducing its dependence on Europe and the United States, the traditional primary markets. This strategy has paid off, with positive results.

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The share of apparel exports to non-traditional markets, such as Asia, Latin America, Africa, and Australia, is growing and becoming more significant. 

Data points

Data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows that non-traditional markets accounted for 19.3% of the $11.6 billion garment exports in the first quarter of the current fiscal year 2023–24, up from 17.4% in the same quarter last year.

Moreover, garment exports to these non-traditional markets grew by a remarkable 25% year-on-year, while growth in Europe, Bangladesh's biggest market, was only 11.4%. 

In contrast, growth in the United States, the second-biggest market, was much lower, at about 3%.

Bangladeshi garment workers inspect clothes

One key reason for this shift is that exporters are looking for new opportunities as Europe's market is saturated. He also said that buyers in non-traditional markets are shifting away from Chinese suppliers.

The diversification of Bangladesh's garment export markets is a positive development for the industry and the country as a whole. 

It reduces Bangladesh's reliance on a few key markets, making the industry more resilient to shocks. It also opens up new opportunities for exporters to grow their businesses.

The government is supporting the diversification of export markets through initiatives such as export promotion campaigns and trade shows. 

It is also working to improve the infrastructure and business environment to make Bangladesh more attractive to foreign investors.

Set to consolidate its leadership

With its strong track record and the government's support, Bangladesh's garment industry is well-positioned to continue to grow and diversify in the coming years.

Short Point:

Bangladesh's garment industry is diversifying its export markets and reducing its dependence on Europe and the United States. This strategy is paying off, with strong growth in exports to non-traditional markets. 

The government is supporting this diversification through initiatives such as export promotion campaigns and trade shows. 

With its strong track record and the government's support, 

Bangladesh's garment industry is well-positioned to continue to grow and diversify in the coming years.

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21 October 2023, Mumbai

Advanced Production Capabilities

China has established itself as a global leader in manufacturing, thanks to its advanced production capabilities. 

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This is supported by several factors, including:

• Resilience and ingenuity: China has overcome technological challenges with its resilience and ingenuity. For example, despite the West's attempts to limit China's access to critical technologies, China has not slowed down its progress in areas such as AI, quantum computing, and advanced semiconductors.
• Large-scale and well-developed industrial sector: China has a large-scale and well-developed industrial sector that enables it to produce a wide range of products, from simple components to complex systems.
• Focus on innovation and high-end manufacturing: China is moving up the value chain, focusing on innovation and high-end manufacturing. This is evident in its growing investments in research and development, as well as its focus on emerging technologies such as electric vehicles, telecommunications, bioengineering, and artificial intelligence.

Heavy Reliance on China

The report shows that many multinational companies depend on China's supply chains and consumer market and cannot afford to cut ties with it. China is also expanding into new and strategic fields, which makes it even more difficult for the West to reduce its reliance on China.

The moral of the story

Despite the Western world's efforts to challenge China's manufacturing dominance, China remains the world's leading manufacturer. Its advanced production capabilities, large-scale industrial sector, and focus on innovation and high-end manufacturing make it difficult for other countries to compete. Additionally, the heavy reliance of multinational companies on China's supply chains and consumer market makes it even more difficult for the West to reduce its reliance on China.

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17 October 2023, Mumbai

A majority of Indian fashion designers blend Indian culture, modernity, and superb craftsmanship.

They have made a name for themselves in the premium apparel segment, creating both casual and lavish outfits.

Some are famous worldwide for their creative designs, while others work behind the scenes, providing exquisite embroidery, embellishments, and fabrics to renowned brands.

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Successful Indian Fashion Designers

Manish Malhotra is regarded as India's richest fashion designer.

Other successful designers include Tarun Tahiliani, Ritu Kumar, Rohit Bal, Sabyasachi Mukherjee, Neeta Lulla, Masaba Gupta, Anamika Khanna, and Anita Dongre.

New Trend: Collaborations

A new trend is emerging where designers collaborate with big corporates and companies with technical expertise to expand their reach and growth.

These partnerships benefit both parties and offer more opportunities than solo ventures.

Examples of Collaborations

Tarun Tahiliani got funding from ABFRL because of his long-term association with Chairman Kumar Mangalam Birla, who is a fan of Tahiliani's Ensemble.

ABFRL also bought a 51% stake in House of Masaba Lifestyle, owned by Masaba Gupta, and counting.

Reliance Brands also invested in Ritu Kumar, Abu Jani Sandeep Khosla, Manish Malhotra, and counting.

Conclusion

These collaborations are changing the luxury market landscape and offering more opportunities for Indian fashion designers.

5 key insights:

• Indian fashion: culture, modernity, craftsmanship
• Premium apparel: casual and lavish outfits
• Global recognition: creative designs, behind-the-scenes
• New trend: collaborations with big corporates
• Changing landscape: more opportunities for designers

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23 October 2023, Mumbai

Why India

India and the UK are close to finalizing a free trade deal that could boost trade between the two countries by $5 billion, according to a research group. 

The deal is expected to be finalized by the end of this year and will cover most of the goods and services traded between the two countries.

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Nuanced deal

The new deal is expected to be particularly beneficial for sectors like textiles, leather, and footwear, as it will lower tariffs on these goods. India currently exports more than $11 billion worth of goods to the UK every year, and more than half of them are already duty-free.

Historic Moments

The new deal is also expected to boost India's total trade, which crossed $800 billion in the first six months of 2023. Exports grew by 1.5 percent to $385.4 billion during this period.

The free trade deal is a significant development for both India and the UK. 

Boosting Trade & Creating Jobs; It will help to strengthen the economic ties between the two countries and create new jobs and opportunities.

5 key insights:

• Deal boost trade ($5 billion)
• Textiles, leather, footwear (sectors to benefit)
• $11 billion worth of goods (exported to UK annually)
• $800 billion trade (first six months of 2023)
• Stronger ties, new jobs (for both countries)

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19 October 2023, Mumbai

The metaverse, a virtual world that offers endless possibilities for social media users and fashion enthusiasts, is fashion's new horizon.

The internet and fashion are constantly evolving, and the metaverse is the latest frontier. 

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A close look

This virtual world offers designers and customers new ways to experiment with fabrics, designs, garments, and accessories. 

It also enables more than just fashion purchases, facilitating brand management, supply chains, recruitment strategies, career and education prospects, and customer experience.

The metaverse is still developing, but it promises to change the fashion industry in amazing ways.

Key Points

• The Metaverse: Fashion's New Horizon: The metaverse is a virtual world that offers new opportunities for fashion designers and consumers.
• How the Internet is Changing: The Internet is constantly evolving and expanding, and the metaverse is its newest domain.
• How Fashion is Changing: The fashion industry is also changing dramatically, moving away from fast fashion towards more sustainable practices and adopting advanced technologies like augmented reality (AR) and virtual reality (VR).
• How the Metaverse and Fashion are Compatible: The metaverse is ready to transform the fashion scene, giving a new platform for designers, brands, and consumers to experiment with.
• How Designers Can Express Themselves: In the metaverse, designers can unleash their imagination, without any physical constraints, and display a variety of fabrics, designs, garments, and accessories.
• Customers can choose functionality over aesthetics: Customers can also choose functionality over aesthetics through easy-to-use interfaces designed for different purposes, such as 3D experiences, gaming, virtual worlds, NFTs, AR, and VR.
• How the Gulf Region is Leading the Way: The Gulf countries are well-placed to lead the metaverse fashion movement, thanks to their young, tech-savvy population and favorable regulatory environment.
• How the Metaverse is More than Fashion: In the metaverse, fashion goes beyond just buying clothes. It enables innovative brand management, efficient supply chains, novel recruitment methods, improved career and education opportunities, and the creation of a unique and immersive customer experience.
• How the Future Looks Bright: The metaverse is still in its early stages, but it has the potential to revolutionize the fashion industry in ways that are hard to imagine. With its unlimited possibilities and immersive experiences, the metaverse is set to be fashion’s new horizon. 

  5 key insights :

  • Metaverse: Fashion's new frontier
  • Virtual world, endless possibilities
  • Designers and customers experiment
  • More than fashion purchases
  • Revolutionizing the fashion industry

In Summary

The metaverse is a virtual world that offers new opportunities for social media users and fashion enthusiasts. It allows designers and customers to experiment with different fabrics, designs, garments, and accessories. It also enables more than just fashion purchases. 

It facilitates brand management, supply chains, recruitment strategies, career and education prospects, and customer experience. 

The metaverse is still developing, but it promises to change the fashion industry in amazing ways. The metaverse is fashion’s new horizon.

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17 October 2023, Mumbai

Consumer Spending Drives Economic Growth

India is witnessing a strong festive shopping season in 2023, backed by a recent study from the Reserve Bank of India that shows the importance of consumer spending, which makes up 60 percent of GDP. 

The study also confirms the prediction of a 6.5 percent economic growth for this fiscal year.

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E-Commerce to Benefit from High Spending Activity

E-commerce platforms are set to benefit from this high spending activity, with forecasts suggesting not only a boost in the vibrant economy during the festive season but also a consistent spending trend in the next year.

Rise of E-Commerce Sales

The rise of e-commerce sales is especially remarkable. The Ministry of Commerce’s estimates indicate that the e-commerce market will grow to $350 billion by 2030, a significant jump from the estimated $63 billion in 2023.

Indians to Spend $1 Billion on E-Commerce This Year

Indians are likely to spend around $1 billion between October and November this year—a record-breaking amount, 20 percent more than the previous year, according to a consultancy firm based in Bengaluru that specializes in tracking 100 Indian e-commerce platforms, which account for nearly 90 percent of India’s e-commerce sales.

E-Commerce Giants See 15% Rise in Order Volumes

E-commerce giants such as Amazon, Flipkart, Myntra, Ajio, Nykaa, Meesho, and Snapdeal are seeing a 15 percent rise in order volumes during the initial days of their festive sales campaigns, due to the large number of orders.

Consumers Unaffected by Inflation and Higher Interest Rates

E-commerce platforms are happy that inflation and higher interest rates have not affected the excitement of Indian consumers.

This is consistent with the Reserve Bank of India’s finding that consumer confidence reached a four-year peak in September, supported by stable inflation and better employment conditions.

Major Players Breaking Records

Major players in the industry are breaking their records this year. Amazon India’s Great Indian Festival of 2023 has been their most profitable festive campaign so far, with Vice President Manish Tiwary stating that this year’s start has been “unprecedented.”

Long & Short

The strong festive shopping season in 2023 is a testament to the resilience of the Indian economy and the growing popularity of e-commerce. 

With consumer spending driving economic growth, e-commerce platforms are poised to benefit significantly from this trend.

Video Insights

5 key insights:

• Consumer spending drives growth
• E-commerce sales to reach $350B by 2030
• Indians to spend $1B on e-commerce this year
• E-commerce giants see 15% rise in order volumes
• Consumers unaffected by inflation, higher interest rates

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