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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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

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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25 October 2023, Mumbai

Why India

India is attracting global apparel brands with its promising growth potential, abundant skilled workforce, competitive costs, growing domestic market, and strategic location.

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Favorable government policies
The Indian government has launched several favorable policies to encourage apparel manufacturing and innovation in the country. Some examples include:
Production-Linked Incentive (PLI) Scheme: The PLI scheme provides financial incentives to companies that set up manufacturing units in India and produce eligible products. For example, the PLI scheme for textiles and apparel provides an incentive of 7% to 11% on incremental sales of eligible products.
National Technical Textile Mission (NTTM): The NTTM is a government-led initiative to develop the technical textile sector in India. The NTTM provides financial assistance to companies for research and development, technology upgrades, and infrastructure development.
An abundantly skilled workforce

India has a large and skilled workforce in the apparel industry, with more than 45 million people working in the textile sector. The government also invests in skill development programs to improve the quality and productivity of this workforce. For example, the Apparel Made-Ups and Home Furnishing Sector Skill Council (AMHSSC) is a government-industry partnership that provides skill training to workers in the apparel industry.
Competitive costs
India offers low-cost production options for apparel brands, with lower wages, land, and energy costs than developed countries. For example, the average hourly wage in India's apparel industry was $0.58 in 2019, compared to $16.2 in the US. This cost advantage makes India an attractive option for brands looking to cut down on production costs.
Growing domestic market
India's domestic apparel market is growing rapidly and is expected to reach $100 billion by 2025. This rising demand creates a huge opportunity for global apparel brands to increase their market share in India.
Strategic location
India's location at the junction of Asia and Africa gives apparel brands easy access to key markets on both continents. Moreover, India has a well-developed infrastructure of ports and airports that enable smooth import and export of goods.
Case studies
Several global apparel brands have already expanded their operations in India, attracted by the country's favorable factors. Some examples include:
H&M: H&M, the Swedish fast-fashion retailer, has been present in India since 2015. The company has over 50 stores in India and plans to open more stores in the coming years.
Uniqlo: Uniqlo, the Japanese fast-fashion retailer, entered the Indian market in 2019. The company has over 10 stores in India and plans to open more stores in the coming years.
Zara: Zara, the Spanish fast-fashion retailer, has been present in India since 2010. The company has over 20 stores in India and plans to open more stores in the coming years.
Opportunities for further growth
India has the potential to become a global hub for apparel manufacturing and exports. However, there are some areas where the country can improve to further boost its appeal to global apparel brands. These areas include:
Infrastructure development: India can improve its infrastructure, such as roads, railways, and ports, to facilitate operations for apparel brands.
Bureaucratic simplification: India can simplify its bureaucratic processes and reduce red tape to make it easier for apparel brands to start and run businesses in the country.
Sustainability focus: India can focus on developing sustainable practices in the apparel industry, such as the use of recycled materials and renewable energy.
By addressing these areas, India can position itself as a global hub for apparel manufacturing and exports.

5 key insights:

• Promising growth potential
• Abundant skilled workforce
• Competitive costs
• Growing domestic market
• Strategic location

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23 October 2023, Mumbai

Why India

India is rapidly becoming a global center for fashion, as shown by its status as one of the world's fastest-growing and most competitive fashion markets.

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The growing interest from global brands highlights this remarkable change.

There are five main reasons why India is so appealing for global fashion brands:
India's population of over 1.4 billion and its expected middle-class of 547 million by 2025 make it a huge opportunity for global fashion brands.
The Indian people show positive spending patterns and high brand awareness, making it a land of possibility for international brands.
E-commerce: The development of e-commerce is expected to support this growth, creating opportunities for fashion retailers and producers.
Rising incomes: increasing brand awareness, along with rising incomes and internet access, motivates consumers to buy quality brands.
Global issues: Global issues have encouraged the international clothing and fashion industry to explore India's growth story, thus extending its global reach.
The fashion industry is valued at around $2.5 trillion worldwide, and India is poised to play a major role in this growing market.

5 key insights:

• $2.5T fashion industry
• India: fast-growing, competitive
• Global brands attracted
• 5 reasons for appeal
• Demographics, demand, e-commerce, rising incomes, global issues

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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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24 October 2023, Mumbai

Why India

Five D's

Democracy

Demand

Demographics

De-globalisation

De-regulation

Video Insights

India, with its large and growing population, booming economy, and rising middle-class, is a lucrative market for global fashion brands. By 2025, India will have over 1.4 billion people and 547 million middle-class consumers, who are increasingly opting for quality and branded products.

The fashion industry in India is also benefiting from the expansion of e-commerce and digital marketing, which enable brands to reach a wider and more diverse audience.

India's Fashion Industry: Going Global

India’s fashion scene is not only thriving domestically but also gaining recognition and influence globally.

The e-commerce boom is creating new opportunities for fashion retailers and manufacturers to showcase their products and services to the world.

India’s fashion sector is poised to become a major player in the global market with its unique blend of tradition and innovation.

India: A Reliable Partner for Global Fashion Brands

India’s democratic credentials also make it an attractive destination for international fashion brands. As the world’s largest and most vibrant secular democracy, India fosters a stable and conducive business environment. It shares common values with many of the world’s leading economies, making it a reliable partner for reshaping global supply chains and relocating production.

India's Fashion Industry: Responding to De-Globalization

India’s fashion industry is also responding to the challenges and opportunities posed by de-globalization. Globalization has increased competition and affected local artisans in the fashion sector.

This has prompted fashion brands to look for new markets and sources of inspiration in developing and lower-middle-income countries like India. India offers a rich and diverse cultural heritage, as well as a young and dynamic workforce, for fashion brands to tap into.

India's Fashion Industry Outlook: Optimistic

India’s outlook for the fashion industry is optimistic, as evidenced by the entry of numerous international brands into the market.

While some have faced difficulties adapting to the local context, India remains a prominent growth opportunity for the global luxury market.

India offers a stark contrast to the saturated and stagnant Western markets with its vibrant and diverse fashion culture.

In Summary

India is a rapidly growing and evolving fashion market with tremendous potential for global brands.

Its unique blend of tradition and innovation, as well as its young and dynamic population, make it an attractive destination for investment and expansion.

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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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