10 July 2024, Mumbai

With the forthcoming Union Budget approaching, India's textile, apparel, and fashion industry is buzzing with expectations. This sector, a vital cog in the nation's economic engine, is hoping for a set of policies that will propel it towards achieving its ambitious growth targets. As Rahul Mehta, President of the Clothing Manufacturers Association of India (CMAI) explains, the Budget presents a golden opportunity to unlock the textile industry's true potential.

Current scenario

The Indian textile and apparel industry is a powerhouse, contributing 2.3 per cent to the country's GDP and 11.4 per cent to exports. It's the second-largest employer, providing jobs to over 45 million people directly and another 100 million in allied sectors. The government's initiatives like the PLI scheme for textiles (Rs 10,683 crore) have provided a welcome boost. Industry leaders are optimistic about the future, with a report by CII and Primus Partners predicting a potential doubling of the textile sector's GDP contribution to 5 per cent by 2030.

Budget expectations

Industry associations and leaders have outlined their key expectations from the upcoming budget:

Stable raw material pricing: Fluctuations in cotton and other raw material prices have impacted production costs. Industry bodies like the Southern India Mills' Association (SIMA) are seeking measures to ensure price stability.

Expanded incentive schemes: The current PLI scheme is seen as a positive step, but industry leaders are urging its extension to the garment sector to further incentivize investments and production.

Support for domestic branding and sustainability: The government's backing for creating strong domestic brands and promoting sustainable practices in the fashion sector is a priority.

Focus on e-commerce and digitalization: The industry seeks budgetary support for initiatives that enhance e-commerce capabilities and digital adoption across the textile value chain. This would improve market reach and operational efficiency.

Skill development and MSME funding: Investing in skill development programs to bridge the skill gap and facilitating easier access to credit for MSMEs (Micro, Small and Medium Enterprises) are crucial for long-term growth. SMEs are the backbone of the textile industry. However, they often struggle with access to credit and compete with cheaper imports. Anu Sharma, owner of a textile SME in Surat, Gujarat, hopes the budget will address these concerns. "Easier access to working capital and rationalization of import duties would be a game-changer for small businesses like mine," she says.

While budgetary measures are crucial, industry stakeholders also emphasize the need for long-term investments in infrastructure development and skill development programs. Upgrading textile parks and logistics infrastructure will enhance efficiency and global competitiveness. The textile sector has the potential to be a game-changer for the Indian economy. The upcoming budget should prioritize policies that make the industry globally competitive and create sustainable employment opportunities, say experts

With ambitious targets of $600 billion in textile exports by 2047 and a domestic market size of $250 billion by 2030, the textile sector holds immense promise. A supportive budget that addresses key industry concerns could be the missing thread to weave a success story.

Latest Fashion news

09 July 2024, Mumbai

Leading menswear designer, ArjunKhanna has launched a collaborative collection with the Bombay Shirt Company (BSC). Launched on July 06, the debut BSC X AK collection will be followed by several limited edition collections over the year. Reflecting Khanna’s deep passion and his expertise in denim, the debut collection features denim ready-to-wear shirts.

The BSC X AK collection comprises 12 exclusive ready-to-wear shirts, including 10 crafted in various shades of denim and 2 in a distinctive fabric. These pieces will be exclusively available for purchase at Bombay Shirt Company stores nationwide and online.

AkshayNarvekar, Founder and CEO, Bombay Shirt Company, opines, the collection reflects Khanna’s meticulous attention to detail and his extensive knowledge of the denim fabric.

Latest Fashion news

08 July 2024, Mumbai

Diverting from its previous plans to set up larger outlets in the Delhi NCR region, Ikea aims to introduce a scaled-down store concept in India. These stores will spread across 25,000 sqft, and will be significantly smaller than the retailer’s typical store sizes globally.

Through this move Ikea aims to ensure Indian consumers reach an Ikea location within a 30-minute radius.

Previously, Ikea had been exploring spaces in the range of 70,000 sqft to 100,000 sqft in Delhi NCR malls. However, Ikea’s parent company, Ingka issued a directive to prioritise smaller city-center stores. The retailer is currently negotiating with mall operators for these compact store formats.

Historically known for its expansive warehouse stores spanning 400,000 sqft to 500,000 sqft, Ikea initially entered India with similarly large outlets in Hyderabad, Mumbai, and Bengaluru. The company later experimented with smaller formats, such as an 80,000 sqft store in Mumbai's Worli area and a 72,000 sq. ft. outlet at R City Mall in Ghatkopar, which closed earlier this year due to poor performance.

Globally, Ikea has introduced Planning Studios in cities like Paris, Moscow, Toronto, and New York City, designed to showcase select product categories tailored for urban consumers. It remains unclear whether the new smaller stores planned for India will follow the Planning Studios model.

In addition to its retail initiatives, Ingka Groupis developing two IngkaCentres in Noida and Gurugram, which will feature large Ikea stores alongside other brands. This strategic expansion underscores Ikea's efforts to adapt to evolving consumer preferences and market conditions in India's retail landscape.

Latest Fashion news

10 July 2024, Mumbai

Aditya Birla Fashion and Retail, in collaboration with designer Tarun Tahiliani, had tasked men’s wear brand, Tasva with designing the ceremonial dress for Team India at the upcoming Paris Olympics 2024. The official dress was unveiled by Mansukh Mandaviya, Minister of Youth Affairs and Sports, in the presence of PT Usha, President, Indian Olympic Association.

Offering a fresh take on Indian traditional wear, the ceremonial attire is inspired by India's rich cultural heritage and embraces a patriotic spirit reflected in the iconic tricolour palette of saffron, green, and white.

At the opening ceremony, Team India’s male athletes will don a kurtabundi set, while female athletes will wear an elegant saree with ikat-inspired digitally printed panels in saffron and green. The design features blue buttonholes representing the Ashoka Chakra and an ivory base symbolising peace and unity. The look is completed with modern trainers adorned with traditional Benares brocade, seamlessly blending tradition with contemporary fashion.

Beautifully combining classic Indian style with a modern, athletic touch, the kurtabundi set is crafted from lightweight moss cotton, ensuring breathability and comfort, notes Tahiliani. A symbol of grace and cultural identity, the sareeis reimagined in viscose crepe for a natural drape and breathability, ensuring both elegance and comfort for the athletes, he adds.

AshishMukul, Brand Head, Tasva, adds, , crafted specifically for those who have earned the honor of representing India on the global stage, the official ceremonial dress not only captures the essence of Indian style but also stands as a symbol of national pride and achievement.

Latest Fashion news

09 July 2024, Mumbai

Coinciding with the festive season, luxury brands are gearing up to launch new stores in India, signaling a potential boost for the industry following a two-month slowdown due to extreme summer heat and general elections.

In Delhi, brands such as Aquazzura (accessories and shoes), Diptyque (perfumes), and Golden Goose (menswear) are preparing to open stores. Clothing and accessoris brand Amiriwill hold a small popup in Delhi to test the market.

The luxury sector is expected to see a gradual increase in sales starting this month, reaching normal levels as the festive season approaches. AmitPande, Business Head - The Collective & International Brands, ABFRL, observes a sector recovery in June following the summer and general elections, with expectations of good growth around the festive season.

DLF Emporiowill soon launch a new zone for 'pret' or ready-to-wear collections from young Indian designers. PushaBector, Senior Executive Director, DLF Emporio highlights the broadening of luxury categories and the influx of millennial and Gen Z consumers discovering luxury through digital media.

While walk-ins are declining globally, online shopping is growing rapidly, and strong client relationships reduce dependence on walk-ins, notes Pande notes. Leather goods and accessories are less affected by the slowdown than clothing, with work-wear making a comeback while categories like sweatshirts and loungewear are tapering off, he points out.

Operator of around 40 stores across The Collective, Ralph Lauren, Hackett London, Simon Carter, Ted Baker, Fred Perry, and others, ABFRL plans to add five more stores in the coming months. In 2025, luxury department store Galeries Lafayette plans to expand in Mumbai and Delhi.

India's growing appetite for luxury goods and services is being driven by rising disposable incomes and the booming ultra-rich population. According to a Goldman Sachs Research report titled 'The Rise of Affluent India,' the affluent consumer cohort is expected to grow from 60 million in 2023 to 100 million by 2027. This shift has led global luxury brands to target India, especially after luxury consumption slumped in China during the pandemic. Malls dedicated to the wealthy, like Reliance's Jio mall in Mumbai, have emerged, and brands like Brioni and Christian Louboutin have expanded their presence in India.

Latest Fashion news

Indian men's ethnic wear category is experiencing major growth spurt, with a market size estimated to be over Rs 2.2 lakh crore ($30 billion) in FY2023. This segment, though comprising only about 6 per cent of the overall men's wear market, is projected to move forward at a Compound Annual Growth Rate (CAGR) of nearly 20 per cent for the next four years, as per consulting firm Technopak. This is significantly higher than the projected growth rate of the overall men's wear market.

A market poised for takeoff

The organized market currently has only a fraction of the total pie, with estimates suggesting it's around 30 per cent. This vast unorganized sector, pegged at roughly 70 per cent, presents a massive opportunity for established players and new entrants alike].

Several factors are fuelling this growth.

Rising disposable incomes: India's burgeoning middle class has more money to spend on discretionary items like ethnic wear.

Increased significance of occasions: Weddings remain a key driver, with a surge in demand for premium wedding wear showcasing a consumer desire for high-quality occasion wear.

Shifting consumer preferences: A growing fashion consciousness among men is leading them to experiment with ethnic wear for festivals, religious ceremonies, and even casual outings. Moreover, the increasing popularity of online shopping offers convenience and wider product selection, further accelerating market growth.

Growing investor interest

This robust growth potential is attracting significant investor interest. Several startups in the men's ethnic wear space have secured funding. For instance, Manyavar, a leading brand, has received multiple rounds of funding with their valuation touching Rs 1,500 crore ($206 million). Other notable names receiving investor backing include Veilcraft and Sherwani Studio.

These investments highlight the investor confidence in the sector's ability to generate significant profits. This robust growth potential is attracting significant investor interest. The Indian wedding industry alone is expected to reach Rs 5 lakh crore ($68.7 billion) by 2025. This translates to a lucrative market for premium menswear brands.

The business model of men's ethnic wear companies typically involves a high-margin strategy. The focus on premium fabrics, intricate designs, and occasion-specific wear allows brands to command premium prices. This, combined with a growing customer base, translates to promising profit margins and high valuations for successful companies.

The Indian men's ethnic wear industry is poised for big growth. With a large and expanding market, rising disposable incomes, and a shift towards online shopping, this sector offers a compelling proposition for investors and entrepreneurs alike.

10 July 2024, Mumbai

A significant milestone for the firm, the annual turnover of Khadi and Village Industries Commission (KVIC) surpassed Rs 1.5 lakh crore in the fiscal year 2023-24.

The commission also created over 10 lakh new jobs during the same period, affirms Manoj Kumar, Chairman, KVIC.

As per provisional figures for FY 2023-24, KVIC reported a dramatic 315 per cent increase in production and a 400 per cent rise in sales over the past decade. Employment generation by the Commission also grew by 81 per cent since the financial year 2013-14.

This surge in performance marks a significant leap from previous years, with KVIC reporting a turnover of Rs 1.34 lakh crore in 2022-23. Over the past ten financial years under the Modi Government, sales of KVIC products have skyrocketed from Rs 31,154.2 crore in 2013-14 to an unprecedented Rs 155,673.12 crore in 2023-24.

KVIC's concerted efforts in FY 2023-24 resulted in the creation of 10.17 lakh new jobs in rural areas, bolstering the rural economy. The increasing market demand for Khadi and village industry products crafted by rural artisans is reflected in these impressive production, sales, and employment statistics.

As reflected in the production, sales and employment figures, the demand for Khadi and village industry products made by rural artisans is increasing rapidly in the market, adds Kumar.

This record-breaking performance underscores KVIC's crucial role in supporting rural artisans and strengthening the rural economy through sustainable development and job creation.

Latest Fashion news

09 July 2024, Mumbai

To compete with the French retailer Decathlon and capitalise on the rising demand for athleisure products post COVD-19, Reliance Retail plans to launch a new sports format across 8,000-10,000 sqft in top city malls and high streets.

Driven by increased fitness awareness and rising demand for athleisure wear, the sales of leading sports brands have surged in the past two years. Brands like Puma, Decathlon, Adidas, Skechers, and Asics have seen 35-60 per cent Y-o-Y growth since FY21, with combined revenues increased to Rs11,617 crore in FY23 from Rs5,022 crore two years prior.

With its first Indian store opening in 2009, Decathlon revenues’ rose from Rs 2,936 in FY22 to Rs3,955 crore in FY23, as per regulatory filings from the Registrar of Companies.

The company is currently negotiating with the Indian government to sell products from rival brands in its stores, potentially operating as a multi-brand retailer. Globally, rival brands contribute a fifth of Decathlon's revenue, but in India, the company currently sells only its own label products due to FDI regulations.

Latest Fashion news

Leading fashion hypermarket chain Vishal Mega-Mart has partnered with Officenet, a cloud-based HR solution provider, to enhance operational efficiency across its 650+ stores in India. This strategic collaboration aims to boost efficiency by 30 per centby using advanced AI and ML technologies.

Officenet’scustomised HRMS framework will streamline workforce management at Vishal Mega-Mart, tackling complex tasks like real-time headcount management and employee performance optimisation. The system features geofencing for security and employs facial recognition to ensure data integrity and privacy.

The platform centralises employee data, facilitates targeted training, and encourages engagement through feedback mechanisms. With real-time insights and robust analytics, Vishal Mega-Mart will be able to make informed decisions, maintaining competitiveness in the dynamic retail landscape.

SonaliChowdhry, CEO, Officenet, remarks, the collaboration signifies a commitment to enhancing Vishal Mega-Mart’s HR landscape, empowering its workforce, and elevating overall performance.”

Dhruva Kumar Dubey, CHRO, Vishal Mega-Mart, adds, a holistic approach to HR management, will enable the company to empower its workforce and propel it to new heights of success.

09 July 2024, Mumbai

A new study by online fashion brand Public Desire has sparked a conversation about changing consumer habits in India. The report, which examined apparel market revenue, clothing prices, and consumer buying behavior, suggests a trend where fast fashion is replacing traditional Indian clothing.

The study highlights several factors driving this shift:

Rapid urbanization and westernization: India's growing urban population is increasingly exposed to Western trends and fashion influences. This, coupled with a general trend towards westernization, is leading some consumers to move away from traditional attire.

Rising disposable incomes: With disposable incomes on the rise particularly among the young demographic, it’s giving consumers more spending power. An average Indian is spending around $2,500 per year on clothes, says the report by Public Desire. This allows them to explore new fashion options beyond traditional clothing.

Target market for fast fashion: The report identifies India as a prime target for fast fashion brands. With its large and growing population, India presents a lucrative market for affordable, trendy clothing.

The study reveals a surprising statistic: the average Indian spends approximately $2,500 per year on clothes. This puts India in second place globally (after Switzerland) for average annual clothing expenditure and third overall (behind the US and Norway) in terms of total clothing spending. This high spending is attributed to both the cost of individual items and the frequency of purchases, suggesting a growing appetite for new clothes.

In contrast, China adopts a more modest approach to clothing consumption. Despite having the second-highest apparel market revenue globally, Chinese consumers buy an average of 21 items per year and spend a total of $259.09—the lowest on the list. This equates to an average price of just $12.11 per item.

Impact on ethnic clothes sector

The potential decline of traditional ethnic wear raises concerns about the preservation of cultural heritage. The Public Desire report suggests a move away from the simple, homegrown cotton garments that were once a staple in Indian wardrobes. Some experts worry that the fast-fashion trend could lead to a homogenization of clothing styles, pushing aside unique regional textiles and designs.

While the study offers valuable insights, it's important to consider the limitations of a report conducted by a clothing brand itself. More comprehensive research is needed to fully understand the evolving fashion landscape in India. Additionally, fast fashion can empower women by offering them the freedom to express themselves through their clothing choices.

The future of Indian fashion is likely to be a blend of tradition and modernity. While fast fashion may be gaining ground, ethnic wear is unlikely to disappear entirely. The rich heritage and cultural significance of traditional Indian clothing will ensure its continued presence, albeit perhaps in a more modernized form.

Latest Fashion news

08 July 2024, Mumbai

Flipkart India’s intensified efforts to achieve profitability, particularly in its fashion and lifestyle segmentshave increased the pressure on major brand partners. Since January, Flipkart's B2B arm has directed its category managers to extract higher business volumes from brand partnerships, marking a significant escalation from initiatives that began during last October's Big Billion Days sale.

Through these efforts, Flipkart aims to achieve EBITDA positivity within six to eight months. However, this goal necessitates a stronger performance from its fashion category, according to insights from a former Flipkart executive.

Among the brands feeling the impact of Flipkart's strategy is Spykar Lifestyle, a longstanding denim-wear partner that generated Rs 200 crore (approximately $24 million) in annual sales on the platform in 2023. ShrikantTripathi, E-commerce Manager, Spykar, notes, Flipkart approached them in December 2023 for margin increases, a proposal they declined.

Flipkart's negotiation tactics extend to prominent brands such as Nike, Adidas, Puma, Woodland, Casio, and Aditya Birla Fashion Retail (ABFRL), all of whom are reportedly facing similar demands for enhanced revenue contributions. Sources familiar with the matter, including former executives from Nike and other brands, likened Flipkart's approach to annual rent negotiations, where the platform seeks increases while brands aim for stability or reductions.

This aggressive stance by Flipkart aligns with its broader goal of achieving profitability ahead of a potential IPO, underscoring its strategic shift towards tighter financial performance in preparation for public listing.

Latest Fashion news

With consolidated revenues rising to Rs. 2,409 crore in FY24 from Rs. 2,247 crore in the previous year, Gokaldas Exports is strengthening its global footprint in the apparel industry. The growth reflects the company’s dedication to enhancing production capabilities and market reach through strategic investments and acquisitions.

The company recently launched Phase I of a new sewing factory in Bhopal, Madhya Pradesh, with an annual capacity of 3 million pieces. Expected to complete next year, the Phase IIof this project, will double this capacity. Additionally, Gokaldas has also commissioned a new knits processing facility in Perundurai, Tamil Nadu.

Gokaldas has also acquired Atraco and Matrix Clothing (MCPL) for a combined investment of Rs. 934 croreto further strengthen its market position and diversify its product offerings.. These acquisitions will provide the company access to high-value knitwear, new customer bases, and cost-effective production locations.

SivaramakrishnanGanapathi, Vice Chairman and Managing Director, states, the acquisitions will provide a solid foundation for margin growth. Atraco and Matrix will complement the company’s existing business and enhance productivity through geographic diversification, new customer access, and strategic positioning.”

Founded in 1979, Gokaldas Exports has evolved into a comprehensive solution provider for some of the world’s leading apparel brands. With an annual turnover of $290 million in FY24, the company is one of India’s largest apparel manufacturers and exporters, supplying products to over 50 countries.

Following the acquisitions, Gokaldas Exports now operates over 30 production units with more than 30,000 advanced machines, capable of producing around 87 million garments annually. The company employs over 51,000 people, driven by a vision of becoming a globally reputed apparel manufacturer focused on innovation and sustainability.