26 July 2023, Mumbai

The Indian kids' apparel market has demonstrated significant growth, reaching a substantial US$ 21.1 Billion in 2022. 

Projections indicate further expansion, with expectations to reach US$ 24.5 Billion by 2028, reflecting a robust Compound Annual Growth Rate (CAGR) of 2.6% during the period of 2023-2028, as per IMARC Group's analysis.

What all you need to know

Perspective

Indian kids' apparel market thriving

Key drivers: rising disposable income, e-commerce, sustainable fashion, and social media influence.

Online shopping

sustainable practices

and

Trendy designs shape the market's bright future, attracting investors and industry players.

Trends and Growth Drivers in India's Kids' Wear Market

The Indian kids' wear market witnessed impressive growth, reaching a value of $16.62 billion in 2020. 

Forecasts indicate a promising future, with a projected Compound Annual Growth Rate (CAGR) of 5.89% through 2026, expected to propel the market to $22.53 billion by 2026, as per ReportsAndMarkets.com study. Several factors contribute to this upward trend.

Growing Demand Driven by Rising Disposable Income and Changing Lifestyles

The rising disposable income of Indian families, coupled with evolving lifestyles, is fueling the demand for kids' wear. 

As parents have more financial flexibility, they are more willing to invest in high-quality and stylish clothing for their children, contributing to the market's growth.

Distribution Channels and Retail Trends

The kids' wear market is categorized based on gender, category, season, sector, distribution channel, and competition. 

Among distribution channels, multi-brand retail outlets held a significant share of 1/3rd in FY2020, a trend expected to continue until 2026. 

Additionally, e-commerce platforms, such as Amazon, Walmart, and Target, are increasingly favored by kids for their convenience and wide product offerings.

Sustainable and Organic Fashion

Growing environmental consciousness has led to a rising interest in sustainable and organic children's clothing. Older parents, with higher disposable incomes, are more inclined to invest in premium designer outfits made of organic and natural fibers or recycled materials for their kids.

Performance Features and Preferences

Parents prefer performance features like shrink resistance, stain resistance, fade resistance, odor resistance, and durability in their children's clothes. 

These features influence parents to spend more on clothing that ensures long-lasting quality and convenience.

Influence of Kids and Online Shopping

The children's wear industry is experiencing a shift as kids have a growing influence on clothing choices. 

Brands are advised to consult kids while developing clothing assortments to align with their preferences. While parents still prefer offline stores for fitting and browsing, kids increasingly lean towards online platforms like Amazon, where they find diverse options and products.

Changing Fashion Trends

Denim clothing, especially in washed blue jeans, colored denim jackets, and distressed or embellished styles, is gaining popularity among kids. 

Additionally, knitwear is becoming preferred over woven garments due to its variety and comfort.

The Future of India's Kids' Wear Market

With the growth drivers of increasing disposable income, changing lifestyles, and a surge in online shopping, India's kids' wear market is set for exponential growth. 

Sustainable and organic fashion trends, along with performance-oriented features, will continue to influence consumer choices, making it vital for retailers and brands to adapt to the evolving preferences of parents and kids alike.

Rising disposable income

One of the key factors contributing to the market's expansion is the rise in disposable incomes among Indian families. 

As disposable incomes increase, parents are more willing to spend on high-quality clothing for their children. 

This growing purchasing power has facilitated the demand for kids' wear that prioritizes comfort and safety while offering a diverse range of clothing suitable for various occasions, including casual, formal, and festive events. 

Manufacturers have recognized this trend and are capitalizing on it by providing an array of materials, styles, and colors to cater to the diverse needs of young consumers.

Growth levers

Another pivotal driver of growth is the pervasive influence of social media and smartphones. The younger generation is increasingly exposed to fashion trends and styles through these digital platforms. 

Consequently, they develop a preference for fashionable clothing, prompting parents to invest in trendy and branded kids' apparel. 

Moreover, collaborations with popular cartoon characters have proven successful in captivating young consumers, leading to an increased demand for apparel featuring beloved fictional figures.

Sustainable clothing

In recent times, there has been a growing emphasis on sustainable fashion in the kids' wear segment. 

Consumers, including parents, are becoming more environmentally conscious and are seeking eco-friendly clothing options. 

This shift in consumer behavior has encouraged manufacturers to incorporate sustainable practices, such as using organic and recycled materials, into their production processes. 

As the market continues to prioritize eco-friendly choices, sustainable kids' wear is anticipated to witness significant growth.

Tailwinds

Furthermore, the expansion of e-commerce platforms has provided a tailwind to the Indian kids' wear market. Online shopping offers the convenience of browsing a wide selection of products, comparing prices, and making purchases from the comfort of one's home. 

This convenience has greatly appealed to busy parents and has facilitated access to a variety of kids' wear options. 

As e-commerce platforms continue to evolve and expand, the market is likely to experience further growth and meet the evolving preferences and demands of young consumers.

Synopsis

the growth of India's kids' apparel market can be attributed to multiple factors, including rising disposable incomes, social media influence, and the adoption of sustainable practices. 

The expansion of e-commerce platforms further supports the market's upward trajectory, making it an enticing prospect for manufacturers and investors alike.

Remarkably, the kids' wear segment has already established a significant presence within India's apparel market. 

This segment's impressive growth is anticipated to continue, as it is predicted to reach nearly Rs 1.7 trillion by 2028.

With such promising prospects, the Indian kids' apparel market presents lucrative opportunities for investors and industry players alike, driven by evolving fashion trends, rising disposable incomes, and a growing focus on children's clothing preferences.

Latest Textile Events

22 July 2023, Mumbai

Bangladesh Sweater Exports: A Journey of Growth, Challenges, and Opportunities

Introduction: Over the years Bangladesh's sweater exports surged from $3M to $4B, as the country gained increased access to international markets driven by automated factories.

Challenges include infrastructure, skilled workforce shortages, COVID-19 impacts, and geopolitical shifts. Exploiting high-value items and post-China market opportunities is vital.

What all you need to know

The growth is attributed to the establishment of 400 automated sweater factories that replaced manual hand knitting with advanced Jacquard machines. 

Odds; Despite the impressive growth, challenges such as infrastructure limitations, skilled workforce shortages, and the impact of COVID-19 and geopolitical shifts pose hurdles to the industry's continued success.

Sweater Industry's Rapid Growth:

According to a Business Standard report, the sweater factories in Bangladesh have experienced a significant 27% growth in the past six years, outperforming other sectors. 

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimates that this upward trend is likely to continue.

Post-COVID-19 Resurgence:

The sweater makers in Bangladesh are showing renewed interest in investments and expansions after overcoming the fear of COVID-19. In 2021, many manufacturers expanded their operations, while five others invested in new production units. 

Entrepreneurs like Shahidullah Azim and Mostafa Golam Quddus plan further investments in their production units, with Quddus emphasizing the need for training the local workforce to boost the country's business.

China's Exit and Expansion Opportunities:

China's exit from the international sweater market has created opportunities for Bangladeshi entrepreneurs. 

With China leaving the market due to rising production costs and complexities, Bangladeshi entrepreneurs like Rafiqul Islam see a chance to increase their investments in sweater production units by the end of 2022.

Unlocking the Potential for High-Value Items:

Bangladesh primarily exports low-cost sweaters, but there is an untapped potential for high-value items like 'cashmere wool sweaters,' which can be sold for $100-$150 apiece. 

Access to raw materials from India, China, and Mongolia opens up new avenues for growth in this area.

Infrastructure Limitations and Skilled Workforce Shortages:

Despite the growth, the sweater industry in Bangladesh faces challenges related to infrastructure and skilled labor. 

Many factories lack innovation and design centers and have weak backward linkages, hindering their ability to secure orders from big brands. Additionally, the cost of setting up new factories poses another challenge.

Impact of Geopolitical Factors:

The global market for sweaters has been affected by geopolitical factors. Europe, the second-largest market for Bangladesh's sweaters, experienced extreme heat, drought, and wildfires, coupled with high inflation rates. 

This situation led to delayed work orders and reduced order volumes, impacting Bangladesh's sweater makers.

COVID-19 and Supply Chain Disruptions:

The COVID-19 pandemic caused disruptions in the supply chain, particularly for raw materials imported from China, which affected almost 80% of man-made sweater yarns in Bangladesh. The country's sweater exporters faced cancellations and delays in orders, impacting the industry's overall performance.

Epilogue:

Bangladesh's sweater export industry has experienced remarkable growth and achieved a prominent position in the global market.

As per sources, the leading destination of Knit Sweaters exports from Bangladesh are Germany ($1.22B), the United States ($703M), Spain ($488M), the United Kingdom ($412M), and Poland ($376M).

Despite facing challenges related to infrastructure, skilled labor, and geopolitical factors, the industry continues to evolve and explore new opportunities. 

To sustain this growth and navigate crises, stakeholders must focus on technological advancements, skilled workforce development, and government support to ensure the industry's resilience and competitiveness globally.

Latest Textile Events

19 July 2023, Mumbai

ICRA has projected a 7% decline in revenue for Indian cotton spinners in the fiscal year 2024, primarily due to the decrease in cotton prices.

This decline is expected to have an impact on cash accruals, indicating a challenging year ahead for spinners. However, there is a positive aspect for spinners amidst the revenue decline.

What all you need to know

Quick background 

ICRA projects Indian cotton spinners' 7% revenue decline in FY24 due to lower cotton prices, impacting cash accruals.

However, steady yarn prices, improved margins, reduced borrowings, and potential capital expenditure offer some positive prospects.

Domestic cotton production is expected to rise by 10% in 2023. Exports and production face challenges, but industry optimism prevails with expectations of recovery. While FY24 may see marginally lower profits, operating efficiencies, and demand from developed regions may drive improvements.

Monitoring risks, including cotton price fluctuations and disruptions, remains essential.

Steady Yarn Prices Anticipated

ICRA anticipates improved operating margins as higher volumes and reduced logistics expenses contribute to better profitability. Furthermore, the forecast indicates a decrease in spinners' borrowings, leading to improved debt coverage ratios and a better capital structure.

Looking beyond the fiscal year 2024, there is potential for increased capital expenditure in the industry. Factors such as machinery modernization, demand arising from the "China Plus One" movement, and growing interest from consumers in the EU and North America are expected to drive investment plans.

Modest Increase Projected

Cotton prices experienced a significant decline in the second half of the calendar year 2022 and continued to decrease by 20% in May 2023. 

Despite this, domestic cotton production is projected to increase by 10% in calendar year 2023. However, slow progress in sowing has been observed in Maharashtra and southern states due to delayed monsoon.

Expected to Stay Below Historical Highs

In the near term, yarn prices are expected to remain steady, with a slight increase anticipated in the second half of the fiscal year 2024 as downstream companies' demand picks up. 

However, spinners are likely to face a contraction of approximately 5% in gross contribution margins for the fiscal year 2024, primarily due to unfavorable movements in cotton fiber and yarn prices.

Exports play a significant role in India's cotton yarn production, but there was a substantial decline in exports during the fiscal year 2023. 

Although there is a projected increase of 15-17% in cotton yarn production for the fiscal year 2024, both production and exports are expected to remain below the historical highs seen in the calendar year 2022.

Inflation and Uncompetitive Prices Impact Performance

Indian cotton spinners have faced significant challenges in the second quarter of fiscal year 2023 (FY23), as highlighted by ICRA, a leading credit rating agency. Inflationary pressures and uncompetitive prices have adversely affected their performance during this period.

Revenue Decline and Margin Moderation Revealed by ICRA Analysis

ICRA's analysis of a sample group of spinners reveals a 4% year-on-year (YoY) decline in revenue and a 950 basis point moderation in margins. Companies across different scales have experienced pressure on profitability, leading to a moderation in interest cover.

Profitability and Revenues Expected to Moderately Decline in Q3 FY23

ICRA's recent research report on cotton and manmade yarns suggests that the profitability and revenues of Indian cotton spinners are expected to sequentially moderate in the third quarter (Q3) of FY23. This projection is based on a slowdown in demand and lower contribution levels.

Factors Contributing to Performance Challenges

Factors contributing to the performance challenges include a substantial increase in cotton prices, reaching all-time high levels in May 2022. This surge has impacted the contribution levels for spinners. 

Additionally, downstream companies have resisted high prices, Indian yarn prices have been uncompetitive in the international market, and there has been a slowdown in demand from developed nations due to recessionary concerns.

Optimism for Industry Recovery

However, there is optimism for a recovery in the industry. ICRA expects volumes and contribution levels to improve from the fourth quarter of FY23 onward. This recovery will be driven by a rebound in demand and lower cotton prices with new arrivals. 

The previous fiscal year (FY22) witnessed robust revenue growth and profitability for Indian cotton spinners, supported by strong realizations and healthy demand following the lifting of lockdown restrictions.

Debt and Capital Expenditure Trends

The industry experienced high debt-funded capital expenditure in FY22, partly due to the deferral of major expenses during the COVID-19 period. This trend is expected to continue in the near term for capacity expansions and power-saving enhancements. 

As cotton prices soften and working capital requirements decrease, it is anticipated that debt levels will decrease, leading to an improved capital structure. ICRA predicts an improvement in the debt coverage ratios for the sector in FY24.

Export and Production Challenges

Indian cotton yarn exports sharply declined since April 2022 after reaching all-time highs in FY22. Uncompetitive pricing and a slowdown in demand from developed nations have contributed to this decline. 

Yarn production has also witnessed a significant YoY decline of approximately 15% in FY23, with cotton yarn exports plunging by 53% in the first seven months of FY23.

Outlook for the Future

Looking ahead, ICRA expects a near 10% YoY improvement in demand for India's domestic cotton spinning industry in FY24. This growth will be driven by shifting preferences away from Chinese cotton and an expected rise in demand from the USA and EU regions for the spring/summer season. 

Although a decline in revenues is anticipated, an improvement in operating margins is expected for Indian cotton-spinning companies in FY24. 

The industry is likely to benefit from operating efficiencies resulting from higher volumes and lower logistics expenses. However, profits and cash accruals are projected to be marginally lower in FY24 compared to FY23.

Cotton Price Trends

Cotton prices witnessed an upward trend until September 2020. However, in the calendar year 2022, the steeper increase in fiber prices compared to yarn prices led to a decrease in the average spot contribution. 

Since June 2022, cotton yarn prices have been declining due to softening in cotton fiber prices and subdued demand from downstream apparel companies. 

ICRA expects cotton yarn prices to remain steady in the near term and experience a slight increase in the second half of FY24 as demand from downstream companies picks up.

Monitoring Risks

In summary, while Indian cotton spinners have encountered challenges in FY23, including inflationary pressures and uncompetitive prices, there are expectations for a future recovery driven by lower cotton prices and increased demand. 

The industry is anticipated to experience improvements in FY24, such as higher volumes, better debt coverage ratios, and rising demand from various regions. However, close monitoring of risks such as fluctuating cotton prices and intermittent disruptions across the textile value chain remains crucial.

CREDITS: ICRA report

Latest Textile News

25 July 2023, Mumbai

Prologue:

The swimwear/beachwear market is experiencing remarkable global growth, fueled by a rising interest in water sports, beachside leisure activities, and a growing emphasis on fitness and aquatic pursuits.

This comprehensive analysis delves into the dynamic industry, exploring its evolving trends and cultural adaptations.

What all you need to know

Market Growth and Projections:

The global beachwear market is booming, valued at $19.8 billion in 2022, is projected to surge to $30.9 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 4.5% during the forecast period from 2023 to 2032. 

Evolving from function to fashion, beachwear now offers trendy styles and materials suitable for water sports and leisure. Women's beachwear dominates, but men's options are on the rise.

Key players and market segmentation play crucial roles in shaping this growing industry. As consumer preferences evolve, the market's future lies in strategic partnerships, innovative designs, and cultural inclusivity.

Evolving Beachwear: From Function to Fashion

Beachwear has transcended its traditional role for swimming and water activities, transforming into a fashion statement.

Modern swimsuits now offer various body coverage options and employ materials like polyester, nylon, spandex, and blended fabrics to ensure flexibility and resistance to elements like sun, chlorine, and salt water.

Women's Beachwear: Fashionable and Functional:

The women's beachwear segment dominates the market, providing an extensive range of options, including vibrant colors, asymmetrical designs, African and geometric prints, and classic yet contemporary silhouettes. 

Luxury beachwear brands cater to consumers seeking trendy prints and flattering effects, successfully blending functionality with style.

Men's Beachwear: A Growing Trend:

The men's beachwear market is experiencing significant growth, driven by changing trends. 

Beachwear options double as both beachwear and sportswear are gaining popularity, and specialized vendors are introducing innovative products to attract new consumers.

Market Segmentation:

The beachwear market is segmented based on fabric, end user, distribution channel, and region. Fabrics include polyester, nylon, neoprene, spandex, and others. 

End users comprise women, men, and children, while distribution channels encompass online and offline retail.

Key Players:

Key players in the beachwear market include Haddow Group Plc, Nike Inc., Boardriders, Inc., Arena Italia S.p.A., Beachwear Anywhere, Inc., Adidas AG, Dick’s Sporting Goods, Gap Inc., Phillips-Van Heusen Corporation (PVH Corp.), and Perry Ellis International Inc.

Key Findings:

The neoprene segment is projected to witness the highest CAGR of 6.2% in revenue terms during the forecast period.

The women's segment is expected to register the highest CAGR of 4.3% in revenue terms during the forecast period.

The online segment is projected to witness the highest CAGR of 6.0% in revenue terms during the forecast period.

The U.S. was the largest revenue-generating country for the beachwear market in 2022.

Asia-Pacific is anticipated to witness the highest growth rate, registering a CAGR of 5.4% from 2023 to 2032.

Future Prospects:

The beachwear market's growth is expected to continue, propelled by the increasing popularity of water-based recreational activities, advancements in fabric technologies, and the growing acceptance of fashionable beachwear. Strategic partnerships, mergers, and acquisitions will play a pivotal role in shaping the market's future landscape.

Epilogue:

The beachwear market is witnessing robust growth, driven by evolving consumer preferences, fashion trends, and a burgeoning interest in water-based activities. With innovative designs and an inclusive approach to cultural preferences, the industry caters to a diverse global audience. 

As the market continues to expand, industry players have the opportunity to seize new avenues and excel in this competitive and ever-changing landscape.

Latest Textile Events

21 July 2023, Mumbai

India's T-shirt exports have experienced a setback, decreasing by approximately seven percent over the past six years. 

In contrast, Bangladesh and Vietnam have seen remarkable growth in their T-shirt exports, outperforming India in this segment. 

What all you need to know

Quick Backdrop

Both Bangladesh and Vietnam have leveraged their strengths to capture global markets; Bangladesh's T-shirt exports surged by 48 percent from 2017 to 2022, and Vietnam's exports grew by 34 percent during the same period. 

Global T-shirts market valued at $185.4B (Sep 2021). India's T-shirt exports declined by around 7% in six years. Meanwhile, Bangladesh and Vietnam saw impressive growth, capitalizing on strengths and capturing global markets. India's challenges include higher manufacturing costs, while Vietnam excels in premium T-shirt production.

The global T-shirt market is expected to grow, presenting opportunities for Indian exporters to focus on customized top-wear with trendy designs.

The Challenges Faced by India

India is facing challenges due to relatively higher T-shirt manufacturing costs, which have impacted its export competitiveness. 

Despite price reductions, Indian T-shirt exporters have not been able to achieve significant export growth. In contrast, Vietnam has established itself as a major player catering to high-end T-shirts for global sportswear brands like Nike and Adidas. 

One of the key factors contributing to this difference is that Vietnam possesses the necessary raw materials, expertise, and infrastructure to produce premium T-shirts, which India lacks.

Positive Outlook for T-shirt Consumption and Exports

Despite India's recent struggles, the global T-shirt market is expected to maintain an upward growth trend in the near term. 

This positive outlook is driven by the ongoing global economic recovery, urbanization, rising population, and increasing income levels. 

From January to October 2022, India's exports of knitted T-shirts grew by ten percent, with significant increases in exports to the US and various European countries.

Customized Top-wear on the Rise

Globally, the demand for customized clothing is on the rise, with T-shirts being the most popular item, owned by over 51 percent of fashion-conscious consumers. 

Smart and bold quotes, bright colors, and logos on the front are trending for both men and women. 

Looking ahead to summer 2023, tie-dye, shirt pockets, and portrait photography are expected to be emerging fashion trends for T-shirts, shirts, and tops.

India's Market Competitiveness

India and Bangladesh have achieved the highest growth rates in T-shirt production among major producing countries, mainly due to their export-oriented production methods with the advantage of cheap labor costs. 

While China remains a key global center for T-shirt production, other Asian countries, including India and Bangladesh, are gaining traction as production shifts to the region.

In Summary

India faces challenges in its T-shirt exports due to higher manufacturing costs, Labor costs rising, innovation lagging, and Market shifts while Bangladesh and Vietnam continue to excel in the market. 

However, the global T-shirt market is projected to grow, offering potential opportunities for Indian exporters. 

To thrive in this competitive landscape, businesses should focus on meeting customer demands for customized top-wear with trending designs and concepts.

Latest Textile Events

18 July 2023, Mumbai

The global kids' apparel market is projected to grow from USD 198.80 billion in 2023 to USD 318.34 billion by 2030, driven by social media influence, demand for stylish clothing, and parental awareness.

Over the forecast period, the market is expected to achieve a compound annual growth rate (CAGR) of 6.96%. 

What all you need to know

Quick overview

Cotton remains the preferred fabric, and the market has shown resilience during the COVID-19 pandemic. The impact of traditional and digital media on children's well-being should be carefully examined.

The casual clothing segment and the boys' segment are expected to dominate, while offline distribution channels remain significant.

Key players are implementing growth strategies to enhance their market presence. Asia Pacific and North America are the major growth regions, with India experiencing substantial growth due to changing demographics.

Invest in Stylish and High-Quality 

This expansion is primarily attributed to the increasing presence of children and tweens on social media platforms, influencing parents to invest in attractive, comfortable, and high-quality clothing for their kids.

However, it is important to recognize that there are also risks and potential drawbacks associated with these newer forms of media, which impact the well-being of children and teenagers.

Cotton Dominates

Cotton remains the preferred fabric for kids apparel, valued for its comfort, lightweight nature, ease of washing, and color retention. As parents prioritize these qualities, the popularity of kids clothing is set to soar, further fueling market growth.

COVID-19 & beyond

A comprehensive analysis of key market segments and recent trends is provided in the report, along with an examination of the driving and restraining factors that have shaped the market. 

Additionally, the report delves into the impact of the COVID-19 pandemic, highlighting the negative effects of transport and travel restrictions on market growth. 

However, the industry has exhibited resilience through measures such as automation, sanitation protocols, and production adjustments, paving the way for recovery in the post-COVID-19 phase.

The Impact of Social Media and Changing Fashion Trends on Children's Apparel Industry

Growing Parental Awareness and Demand for Fashionable Children's Clothing

In today's digital era, the children's apparel industry has experienced significant transformations due to the influence of social media and evolving fashion trends. 

Parents are now more conscious of their children's clothing choices, resulting in an increased demand for trendy and stylish garments.

Examining the Effects of Traditional and Digital Media on Children and Adolescents

Over recent years, children and adolescents have become deeply immersed in a diverse range of media formats, encompassing both traditional and digital platforms. 

While earlier research has highlighted health concerns and negative consequences associated with traditional media like television, there has been a notable surge in the utilization of digital media, including interactive and social platforms.

Evaluating the Benefits and Risks of Digital and Social Media for Young Individuals

Evidence-based studies have shed light on numerous advantages associated with the use of digital and social media among young individuals. 

These benefits include opportunities for early learning, exposure to novel ideas and knowledge, heightened social interactions and support, and improved accessibility to information. 

Nevertheless, it is crucial to acknowledge that these newer forms of media also entail risks and potential drawbacks that can impact the well-being of children and teenagers. 

Casualisation

The casual clothing segment is expected to dominate the market, owing to its high comfort and lightweight nature. 

In terms of end-users, the boys segment is projected to lead, driven by the rising birth rate of newborn boys. 

Furthermore, kids aged above 10 years are displaying a preference for stylish and trendy apparel, contributing to the market growth in this segment. 

Offline distribution channels are anticipated to hold a significant market share, as offline stores expand to meet the growing demand for kids' apparel.

Snapshot

Prominent players in the market, such as Nike, Burberry, and Carter's, are implementing various growth strategies, including store launches, partnerships, and business expansions, to enhance their market presence. 

For instance, Children's Place introduced Sugar & Jade, a new tween apparel, accessories, and footwear brand, featuring five apparel and accessory collections in November 2021.

Helicopter view

Growing Kids Apparel Market to Reach USD 318.34 Billion by 2030, Fueled by Social Media Influence and Comfort-driven Demand. 

Asia Pacific is poised to dominate the market, propelled by increased consumer spending on children's clothing, growing disposable income, improved childcare services, and a high standard of living. 

The North American market is also expected to experience strong growth due to parents' escalating concerns about their children's health and safety.

The market for Indian kidswear (0-14 years) was valued at US$ 16.4 billion in 2020, and it is expected to increase at a CAGR of 14.5 percent between 2021 and 2026. 

According to a survey by IMARC Group, the industry is largely driven by India's growing number of nuclear and dual-income homes.

Latest Textile News

24 July 2023, Mumbai

Tirupur, a leading textile hub in India, aims to achieve a remarkable 40% growth in exports within the next three years, focusing primarily on active wear. 

Birds's eye view

Tirupur, India's textile hub, targets 40% export growth in activewear. Dope-dyed polyester yarns are a game-changer. Investors flock to the thriving DTC activewear market.

Athleisure remains a bright spot in the apparel industry, attracting brands and investors worldwide.

To accomplish this ambitious goal, knitters, dyers, processors, machine suppliers, dyes, and chemical suppliers must work collaboratively to make Tirupur a global sourcing hub for activewear products. 

Consumers are increasingly shifting from conventional clothing to high-performance, flexible, breathable, and versatile apparel made from polyester filament yarns, drawn by the performance and comfort benefits of activewear.

The Game Changer: Dope Dyed Polyester Filament Yarns

Dope-dyed polyester filament yarns and related technologies could prove to be a game changer for Tirupur. 

Exporters can leverage Techno Sportswear's state-of-the-art lab facilities to analyze their buyers' fabrics, paving the way for even more growth. 

The knitwear industry is also being encouraged to diversify into manmade fiber rapidly, with promising signals indicating a revival of knitted apparel exports in the near future.

Time for Investments in Technology and R&D

Tirupur exporters are urged to seize the opportunity and invest in technology, research, and development to reap the maximum benefits of the production-linked scheme's (PLI) second edition. 

With the upcoming trade agreement between India and the UK, garment exporters are hopeful of receiving more orders, expecting a 30% growth in orders throughout the year.

The Pandemic Boosted the Active Wear Trend

While the pandemic had a negative impact on the clothing industry as a whole, activewear emerged as a bright spot. It's popularity and staying power are evident as the market is projected to reach USD 276.61 billion in the next six years. 

Active lifestyles, coupled with the benefits of activewear such as quick-drying, thermal resistance, breathability, chemical resistance, and static resistance, have been driving the market's positive trajectory. 

However, counterfeit products and volatile raw material costs pose challenges to the global activewear market.

Activewear: Fashionably Fun and Inclusive

One of the key drivers of the segment's growth is how sports and lifestyle brands have made activewear a fashion statement. Reputable brands like Nike, Reebok, Puma, and Lululemon are driving the trend, offering sustainable, durable, and premium-quality fabrics that cater to diverse body types. 

Luxury brands like Gucci and Stella McCartney have also recognized the potential and are creating exclusive activewear lines.

Retail and E-commerce: Both Thriving Platforms

The accessibility of activewear through both retail stores and e-commerce channels has contributed to its popularity. 

Retail outlets are gaining popularity due to the visual appeal of brand stories and the ease of fittings. 

On the other hand, e-commerce, which surged during the pandemic, remains a popular channel for purchasing activewear.

Investors Capitalize on Rising Popularity

The growing role of D2C brands

The activewear market has attracted significant interest from investors, with DTC brands seeing numerous acquisitions and IPO launches. 

Notable DTC brands, such as Outdoor Voices and Vuori, are expanding their operations and attracting investments. 

Additionally, rising interest from investors like Norwest GV and Forerunner Ventures is fueling the expansion plans of activewear brands.

The Direct-to-Consumer (DTC) activewear market had a bustling year in 2021, witnessing numerous acquisitions and IPOs. Some notable deals included Sweaty Betty being acquired by Wolverine World Wide, 

Levi's purchasing Beyond Yoga, and Helen of Troy, the owner of Hydro Flask, snapping up Osprey.

In terms of website visits, Arc'teryx and Tracksmith were the fastest-growing DTC athletics brands, with Arc'teryx experiencing a remarkable 264% spike in monthly visits in the US. 

Snapshot

Alo Yoga also saw an increase of 124%, while Tracksmith experienced a 75% hike in website visits. SimilarWeb tracked this data and also highlighted growth in equipment makers like Hydrow, Tonal, and Mirror.

The rising popularity of activewear brands has attracted investors' attention. Outdoor Voices emerged as a significant DTC brand in the activewear market, while other brands like intimate brands ThirdLove and Thinx have also ventured into the activewear category.

Athleisure or activewear stands out as a bright spot in the otherwise challenged apparel sector. DTC brands can capitalize on this trend by selling through their own channels and wholesale avenues.

Expanding Market Across Categories and Regions

The athleisure and activewear segments continue to attract brands beyond DTC, with various fashion and lifestyle brands venturing into activewear. 

The global women's activewear market is projected to reach impressive figures, driven by increased female participation in fitness activities and the adoption of athleisure wear for everyday use.

Technology and Functional Properties Drive Growth

Comfort looks, and functional properties like moisture management, water repellency, and thermal regulation are key factors propelling activewear's popularity. 

Brands are incorporating innovative technologies, such as sewfree bonding solutions, to offer enhanced performance and aesthetics to consumers.

With consumers actively seeking activewear with specific features and increasing interest from investors, the activewear market shows promising growth and holds significant potential for the textile industry in Tirupur and beyond.

Short message

Athleisure trends fuel lucrative activewear investments.

Investor interest in the activewear category has further fueled expansion plans for various activewear brands. Investors such as Norwest GV and Forerunner Ventures have shown interest in this growing market.

Athleisure or activewear stands out as a bright spot in the otherwise challenged apparel sector. DTC brands can capitalize on this trend by selling through their own channels and wholesale avenues.

The popularity of athleisure spans across various categories, attracting streetwear, lifestyle, and women's wear brands. Major retailers like Target and Kohl's have also ventured into the activewear market, underscoring its appeal.

Latest Textile Events

20 July 2023, Mumbai

Indian view; Cotton and cotton blend yarns are widely preferred for comfortable garments for adults, baby clothes, and household items across the globe, making cotton a crucial raw material in the textile industry. 

India, particularly in the Central zone encompassing states like Gujarat, Maharashtra, and Madhya Pradesh, produces excellent cotton. 

Gujarat stands as the highest cotton producer, and Mumbai serves as the largest center for the cotton textile industry.

What all you need to know

Datapoint

The global cotton yarn market has a substantial value, estimated at $62.50 billion in 2022, and is projected to reach $66.91 billion this year. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.19 percent, reaching $108.99 billion by 2030.

China's Declining Cotton Yarn Import Impacts Global Yarn Market; According to the latest data from the AI-driven market intelligence platform IndexBox, China continues to lead global yarn imports. 

In 2022, China's cotton yarn imports amounted to a staggering $7.241 billion, thanks to its vast and diverse market catering to both domestic and international demands. 

China's advantages include a large skilled labor force, a thriving e-commerce sector, advanced manufacturing technologies, and an extensive distribution network, making it a dominant player in the global cotton yarn market.

Bangladesh position

Bangladesh holds the second position in global trade, rapidly growing as an import market with imported cotton yarn worth $1.176 billion. 

The country relies on imported yarn to meet its domestic demand, benefiting from its large population driving the demand for clothes and household items, low labor costs, and a favorable investment climate.

Global view

Turkey ranks third in cotton yarn imports, with a value of $1.057 billion in 2022. 

It boasts the most advanced textile industry in the European region, dating back many centuries, and imports cotton yarn from countries like the US, India, and China to cater to both its domestic consumption and international markets.

Honduras secures the fourth position globally with imports worth $673.065 million. 

Its geographical proximity to the US and preferential trade agreements, like CAFTA-DR, have fueled the textile industry's growth, despite limited domestic production.

Italy stands as the fifth-leading European import market for cotton yarn, importing worth $526.369 million in 2022. 

Italy's market focuses on high-end fashion and luxury goods for cotton products, serving affluent consumers with niche markets and value-added products.

Trade dynamics

The global cotton yarn trade depends on various factors, including demand for textile products, strength of the textile industry, production capacity, and cost-effectiveness. 

Cotton blends and pure cotton yarns are significant drivers in the global trade, with various blends used for different apparel and home textile applications.

Challenging demand environment

However, the cotton market is currently facing challenges due to declining consumption worldwide. 

Major customers of cotton, such as China, India, and Pakistan, have reduced their cotton requirements, impacting the industry. 

Factors such as declining supplies, lower profit margins for spinning mills, and higher inflation have contributed to this trend.

China Seeks Self-Sufficiency in Yarn Supply

China's declining cotton yarn import has caused significant changes in the global yarn market.

While it has led to a short-term slowdown in demand for imported yarn due to sluggish market conditions and rising cotton prices, in the long term, China may become self-sufficient in yarn supply. 

This shift may open opportunities for certain varieties of fabrics and value-added products in the Chinese market.

China & beyond

The impact of China's declining yarn import is also felt in India and Pakistan, as Vietnam gains market share due to its competitive pricing. 

To sustain growth, Indian yarn manufacturers are adopting strategies such as increasing investments in downstream industries to boost domestic yarn consumption and diversifying the market mix to reduce dependence on the Chinese market. 

Cotton's global significance; India's advantage; China's impact.

The global cotton yarn market plays a crucial role in the textile industry, with cotton and cotton blend yarns widely favored for comfortable garments and household items worldwide. India, particularly in the Central zone encompassing states like Gujarat, Maharashtra, and Madhya Pradesh, excels in cotton production, and Gujarat stands as the highest cotton producer, while Mumbai serves as the largest center for the cotton textile industry.

Quick Gist

The global cotton yarn market had an estimated value of $62.50 billion in 2022, projected to reach $66.91 billion this year, and is anticipated to grow at a CAGR of 7.19 percent, reaching $108.99 billion by 2030.

China remains the leading global yarn importer, with $7.241 billion worth of cotton yarn imports in 2022, fueled by its vast market and distribution network. Bangladesh ranks second in imports, benefiting from a large population and a favorable investment climate.

Helicopter view

However, the cotton market is facing challenges due to declining consumption worldwide. Major customers like China, India, and Pakistan have reduced their cotton requirements, affecting the industry.

Factors such as declining supplies, lower profit margins for spinning mills, and higher inflation have contributed to this trend.

China's dominance; China's declining cotton yarn imports have caused significant changes in the global yarn market.

While it has led to a short-term slowdown in demand for imported yarn, China may become self-sufficient in yarn supply in the long term, opening opportunities for certain varieties of fabrics and value-added products in the Chinese market.

This shift is also affecting India and Pakistan, as Vietnam gains market share due to competitive pricing. To sustain growth, Indian yarn manufacturers are investing in downstream industries and diversifying their market mix.

Landscape

The recent market volatility raises concerns and may affect the global supply chain. India needs to address tariff barriers and establish an efficient global supply chain to retain its position.

Currency fluctuations have affected India's cost advantage, giving China a pricing advantage in the market, leading to global buyers negotiating prices. Uncertainty remains a key challenge for the cotton yarn trade.

Uncertainty is the new certainty

The recent volatility in the market is a cause of concern, and it may affect the global supply chain. 

To retain its position, India needs to address tariff barriers and establish an efficient global supply chain. 

The appreciation of the Indian rupee and the depreciation of the Chinese yuan have affected India's cost advantage and given China a pricing advantage in the market. 

As a result, global buyers have started negotiating prices.

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17 July  2023, Mumbai

Social shopping isn’t exactly new as an e-commerce technology that uses a shared social network of friends and contacts.

It replicates an individual’s shopping experience of being with friends or those who influence their choices – suggestions, recommendations, validations – all real-world influences, now online.

What all you need to know

Preview

Social shopping revolutionizes e-commerce by creating a shared network of friends and influencers that replicate real-world shopping experiences, now online. It empowers fashion retail through metrics and engages users on platforms like Facebook, Instagram, and TikTok.

This shift blurs the line between online and offline shopping, catering to evolving consumer expectations and enabling informed decision-making.

Digital adoption; Collaboration, technology adoption, and personalized touchpoints enhance the online-offline experience, while social commerce drives engagement, seamless shopping, and trend influence. It's a paradigm shift for fashion retail, making shopping exploratory, bespoke, and enjoyable. 

Technology is an enabler

For fashion retail, this technology has been very empowering as these come with metrics required to capture impressions, engagements, reach, and sales, all at a go.

Facebook, TikTok, Instagram, Snapchat, Twitter, and Pinterest among others continue to engage users with relatable content, making them spend hours scrolling through their feeds. 

The Emergence of Social Media

And as the just released ‘The State of Fashion 2023’ McKinsey & Company and The Business of Fashion report suggest, this network of social platforms is where fashion retail can directly engage in a personal way, even more than their physical stores. 

In a joint survey conducted by Magento and Hootsuite, almost 6 in 10 consumers claimed that one-quarter of their online shopping is influenced by Facebook and YouTube.

The report highlights, nearly 90 percent of APAC’s population surfing through mobile commerce, brands, and retailers jumped into what is now called Social Commerce. 

According to eMarketer, the US social e-commerce market skyrocketed by almost 38 percent to $26.77 billion in 2020 and is expected to surpass $50 billion annually by 2023. Fashion retail couldn’t have found a better platform.

Instagram emerges best social commerce platform for fashion retail

Instagram is indeed the ideal platform for fashion retail’s social commerce. This visual-rich app ticks all the right visual boxes which is why 70 percent of online shoppers globally rely on Instagram for product discovery and it helps that Instagram has over a billion active users. 

Instagram Live Shopping launched in 2020 leverages influencers recommending products live and in real time.

Living in a digital era

All-time favorite Facebook had 3.45 billion active monthly users as per statistics at the end of 2021. Launched in 2020, Facebook Shops actually helped small and medium size businesses to relocate from brick-and-mortar to online shop fronts for greater outreach and traffic. 

This fully-customizable feature has been a boon to many small fashion retailers.

Relatively new player Tik Tok was initially met with a certain amount of disdain from fashion retail, as they felt this was not their image platform. 

Well, that’s history now as more and more brands are jumping into the Tik Tik bandwagon. 

TikTok generation

The catchphrase “Tik Tok made me buy it” sealed the deal for brands, particularly those in fashion retail. TikTok’s USP lies in making unknown entities that include brands go viral overnight. 

Quick to seize the day, Tik Tok started offering shoppable posts, live-stream shopping capabilities, and opportunities for influencer marketing. Brands also have the option to build a shoppable storefront within TikTok through the Shopping tab. 

TikTok users can now add the shopping tab to their business profiles, where they can sync their static product catalog and allow customers to make purchases straight from the app. 

Experiential; Augmented-reality filters popularly known as catalog-powered shopping lenses introduced by Snapchat make for an extremely up-close and personal shopping experience online.

Boosting Collaboration

The Power of Cross-Channel Functionality in Fashion E-commerce

In today's rapidly evolving retail landscape, enabling cross-channel functionalities is crucial for boosting collaboration and enhancing the customer experience.

Basic actions, such as informing customers about omni-channel support options or facilitating in-store assistance through staff members, can make a significant difference.

Actionable Insights

From online reservations to in-person pickups, providing customers with seamless options is essential. 

Experts reveal that digital information already influences the majority of in-store sales, with the percentage continually rising.

Deloitte research shows that 84% of customers reach for their smartphones before or during store visits, underscoring the growing importance of digital engagement.

The Universe of eCommerce

As the lines between online and offline blur, it's crucial to consider scenarios like in-store ordering for out-of-stock items or leveraging smartphones for price comparisons and online purchases.

Retailers must adapt to an increasingly fragmented landscape, fostering collaboration and efficiency among employees.

Evolved Consumer Expectations

Today's always-connected consumers seek personalized experiences and expect brick-and-mortar stores to cater to their individual needs. Store employees serve as the frontline support for e-commerce, bridging the gap between online and offline.

Informed Decision-Making

Seamless access to customer data empowers representatives to provide tailored support. Whether online or in-store, customers anticipate personalized encounters based on their history, interests, and preferences.

Keys to Enhancing the Online-Offline Experience

To deliver exceptional customer experiences, retailers should incorporate physical and digital elements into their in-store personalization touchpoints. Effective communication and training are vital to overcome stumbling blocks and ensure that staff members can provide seamless support.

The Skill-Set and Technology Adoption

Equipping retail staff with the necessary technology and knowledge is key to their effectiveness on the sales floor.

When armed with the right tools, sales associates can access vast customer data, pricing information, and inventory details, enabling them to provide informed and timely advice.

In this era of cross-channel commerce, harnessing the power of collaboration, leveraging data insights, and embracing technology is essential for fashion e-commerce to thrive and meet the ever-evolving expectations of the modern consumer.

A paradigm shift for fashion retail

Forget carefully designed physical stores with their real-world limitations – fashion is now truly exploratory through the help of social commerce.

In fact such is the power of social commerce that engagements with consumers and influencers are beginning to influence collections and trends for the next collections. 

What is revolutionizing social commerce is its power to provide bespoke engagement, make shopping seamless, and of course, have loads of fun.

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