14 July  2023, Mumbai

However, the introduction of standardized sizing systems in the 1940s led to a shift towards ready-to-wear clothing, with the fashion industry producing mass-produced garments in a range of sizes.

What all you need to know

Prologue

1940s standardized sizes caused a move to personalized clothing, considering sustainability. Luxury and affordable brands fuel the custom market.

Indian startups drive the trend, while technology transforms it.

The Shift from Custom-Made to Ready-to-Wear Clothing; The concept of custom-made clothing may seem exclusive to the wealthy and those with access to couture ateliers, but not too long ago, it was the standard way of buying clothes for many people. 

Response to Environmental and Ethical Concerns

While this standardized approach made fashion more accessible and affordable, it also resulted in environmental issues and unethical labor practices associated with fast fashion.

As a result, consumers are now becoming more aware of the environmental impact of their fashion choices and are embracing made-to-measure clothing as a sustainable alternative.

Redefining Style 

According to research and analysis firm Proficient Market Insights, the custom clothing market is expected to grow at a compound annual growth rate of 9.56% between 2022 and 2027.

This growth is driven by both luxury brands and affordable retailers recognizing the demand for custom-made clothing. 

While traditional luxury labels like Ermenegildo Zegna and Ralph Lauren have long been associated with custom clothing, more accessible brands like H&M, Massimo Dutti, Mango, Zara, and Guess have also entered the market.

Market Growth; Europe currently holds the largest market share for custom clothing, followed by North America and China. 

Coats are the most popular product category, and both physical stores and online platforms are significant distribution channels.

Shift towards bespoke
The rise of bespoke fashion exemplifies the shifting perspectives on style and the growing demand for individuality and sustainability.

With an increasing awareness of the detrimental effects of fast fashion on the environment and workers, consumers are actively seeking alternatives that align with their values.
Embracing Personalized Fashion
Distinguishing itself from its made-to-measure counterpart, bespoke fashion involves the meticulous skills of pattern makers, seamstresses, and other custom clothing experts.

These knowledgeable artisans produce clothing samples that are then examined, refined, and approved by fashion designers, ensuring the highest level of quality and personalization.

The Custom Clothing Market in India

In India, custom-made clothing has always been a part of the culture, with individuals preferring tailored garments over ready-to-wear options. 

The rise of fashion startups in India has further fueled the demand for custom clothing, with these companies focusing on creating memorable shopping experiences and leveraging technology to offer personalized services. 

The pandemic has accelerated the adoption of digital solutions, such as virtual fitting rooms and augmented reality, to enhance the customer experience and enable contact-free shopping.

Custom Clothing Sector

While the demand for formal shirts and ties may decline, the market for well-made tailored suits and separates is expected to continue growing. 

The pandemic has led to a shift towards casual attire, but there is still a demand for tailored suits for special occasions. 

Designers are also introducing innovative styles and silhouettes, including anti-fit designs and sporty layering, to cater to changing fashion preferences.

The Impact of Technology

The use of technology, such as 3D modeling and AI-powered data analytics, is revolutionizing the custom clothing sector. Companies are leveraging these tools to accurately estimate customer demand, provide virtual try-on experiences, and create personalized garments based on individual measurements and style preferences. 

The Role of Technology; Digital marketplaces are also emerging, connecting buyers with designers, tailors, and manufacturers to offer a wide range of customization options.

The Global Trend Towards Custom-Made Clothing and Its Future Outlook

The demand for custom-made clothing is on the rise globally, driven by factors such as sustainability, individuality, and the desire for a better fit. 

Fashion brands are embracing new technologies to offer personalized experiences, and the market is expected to continue growing in the coming years for "Tailored Suits and Innovative Styles".

Custom Clothing Market on the Rise as Consumers Embrace Personalized, Environmentally-Friendly Apparel.

Pioneering Sustainable Luxury
In this realm, brands like Careste have successfully integrated sustainability with the essence of luxury bespoke fashion.

By combining the finest materials and employing skilled craftsmen, Careste embodies a commitment to both eco-consciousness and exceptional craftsmanship.

Bespoke fashion, characterized by its handmade craftsmanship and thoughtfully sourced sustainable materials, has emerged as a favored choice.

Sustainable, unique, and well-fitting custom fashion thrives globally.

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11 July 2023, Mumbai

China's spandex exports witnessed a significant drop of approximately 30% or 6,758 tons on an annual basis to 17kt in the first quarter of 2023, as per China customs data. The export unit price also decreased by $3.999/kg to US$5.193/kg compared to the previous year.

The global textile industry faces a challenge as spandex prices drop significantly, impacting both manufacturers and consumers. Adaptation becomes crucial. 

Spandex Industry's Response to Evolving Textile Market

The textile industry is currently encountering various obstacles, including a decline in new orders and inflation. However, the spandex sector is rising to these challenges by implementing sustainable practices and introducing innovative solutions.

As indicated by Wood Mackenzie, there are three significant challenges that will impact the spandex industry in 2020. 

The first challenge arises from the disruptive effects of the Covid-19 pandemic, which have caused growth patterns to reverse. This has necessitated the spandex industry to reassess its strategies and adapt to the changing market conditions.

The third challenge revolves around the growing demand for sustainable textiles and apparel. 

Exports Witness Drop 

However, monthly spandex exports showed a slow recovery, with noticeable growth in March after being affected by the Spring Festival celebrations in January and February. Despite the recovery, spandex exports in Q1 2023 remained considerably lower than in the same period in the past two years and were similar to Q1 2019 levels.

View on China exports

Turkey, Vietnam, South Korea, and Egypt were the primary destinations for China's spandex exports, accounting for 48.2% of the total. However, Turkey's imports from China witnessed a substantial decline of 64% in Q1 2023, while Vietnam's imports increased by 89.1%.

Datapoints; On the other hand, spandex imports to China experienced a remarkable surge of 86.2% on an annual basis, reaching 9,010 tons in Q1 2023. The import unit price declined significantly by $5.602/kg to US$5.784/kg compared to the previous year. 

Vietnam, Singapore, and South Korea were the major import origins, with Vietnam's imports alone increasing by 5,350 tons in Q1 2023, driving spandex imports to a five-year high.

Driving Atmanirbhar Bharat:

The government has implemented numerous significant reforms and taken proactive policy measures to transform Atmanirbhar Bharat into a tangible reality and establish India as a highly competitive global manufacturer.

It has recently announced the removal of antidumping duty on a wide range of man-made fibers and their raw materials, including PTA, MEG, PSF, VSF, acrylic fibers, and now elastomeric filament yarn.

The global textile industry faces challenges

Globally, the textile and apparel industries faced challenges, including a decrease in new export orders since Q4 2022 due to factors like high inflation outside China and interest rate hikes, which also impacted Vietnam. 

Consequently, Vietnamese fabric mills experienced a sharp decline in orders, leading to a decrease in textile and apparel exports.

In Vietnam, local consumption of spandex also declined, resulting in some being exported to China. 

The Vietnam Textiles and Clothing Association reported that textile and clothing exports reached US$3.298 billion in March 2023, indicating an 18.11% increase from the previous month but a 12.91% decrease compared to the same period last year.

Declining spandex consumption

The industry is expected to face difficulties in the second quarter due to a significant decline in purchasing power in markets such as the US and the EU, resulting in a lack of new orders in April. China's spandex exports have already shown a decline in the first two months of 2023, according to China customs data.

During the Jan-Feb period, the total spandex exports amounted to 10.5kt, reflecting a decline of 36.4% or 5,993 tons compared to the same period last year. 

The export unit price also decreased by $4.162/kg on an annual basis, reaching $5.182/kg. In January 2023, spandex exports reached 4,831 tons, showing an 8.2% monthly increase but a significant 42.8% decrease compared to the same month in the previous year.

Declining purchasing power

The export unit price in Jan-Feb was $5.244/kg, slightly up by $0.006/kg compared to the previous month. In February, the total amount of spandex exports increased to 5,645 tons, representing a 16.9% rise from the previous month but a 29.7% YoY decline. The export unit price in February was $5.128/kg, showing a monthly decrease of $0.116/kg.

Although spandex was exported to 85 nations or regions in Jan-Feb, marking an increase of 8 compared to the same period last year, the top four nations, namely Turkey, South Korea, Vietnam, and Egypt, still accounted for 47.3% of the total exports. 

Exports to Pakistan, Taiwan (China), Mexico, Italy, and South Korea declined, while exports to Uzbekistan, Malaysia, and the Netherlands increased by 100-200 tons.

Reflecting the global economic slowdown

Diminishing global trade; The decline in spandex exports can be attributed to the global economic slowdown and diminishing global trade, which have affected the textile and apparel industry in emerging markets like India and Vietnam. In early 2023, several large shoe factories in Vietnam downsized due to inadequate orders. 

Earthquakes and falling demand from Europe and the US also led to a 66.3% decline in spandex exports to Turkey, amounting to 4,868 tons in Jan-Feb 2023, which was the second-lowest export rate in the past five years, surpassing only Jan-Feb 2020. The foreign exchange shortage in Pakistan has also impacted spandex exports to the country.

Versatility is key to category growth

Chinese exporters shifted their focus to neighboring Bangladesh due to payment problems in Pakistan, resulting in a rebound in exports to Bangladesh since February. 

Moreover, exports to India witnessed medium-digit growth YoY. Persistence Market Research predicts that the global spandex market will reach $9,100.0 million by 2023, with a steady growth rate of 8.3%. By 2033, the market is expected to soar to $20,198.8 million. 

Spandex or elastane has gained popularity due to its exceptional stretch and recovery properties, finding applications in clothing, sportswear, swimwear, and more.

Spandex Industry Confronts Challenges and Embraces Sustainability and Innovation

The industry faces challenges such as fluctuating raw material prices and environmental concerns. 

The Asia Pacific region leads the spandex market, followed by North America and Europe. The industry trends include adopting sustainable practices, developing smart textiles, customization, and technological innovations.

Recent developments in the industry focus on sustainable fibers, enhanced products, and collaborations to provide innovative solutions.

Lack of innovations

Another challenge stems from a lack of yarn innovation, which poses a potential risk of commoditization. As spandex transitions away from its specialized niche, the industry needs to prioritize innovation in order to maintain its competitive edge and prevent becoming a commodity.

Sustainability is no longer an option

Consumers are increasingly seeking environmentally-friendly options, and this trend extends to the textile industry as well. 

In response, the spandex sector is actively embracing sustainable practices, such as incorporating recycled materials and implementing eco-friendly production processes.

By addressing these challenges head-on and adopting sustainable practices and innovative solutions, the spandex industry is poised to overcome the obstacles and thrive in the evolving textile market.

Latest Textile Events

07 July  2023, Mumbai

US Readymade Garment Imports Drop by 11.86% in Early 2023

The US import of readymade garments from around the world declined by 11.86% to $13.21 billion in the first two months of 2023 compared to $14.99 billion in the same period last year, according to the US Department of Commerce's Office of Textiles and Apparel.

Trigger point

The decrease in imports is attributed to a combination of factors, including a slowdown in the economy due to the Russia-Ukraine war, high inflation, and interest rates, leading to reduced consumer spending. 

As a result, imports are expected to grow slowly in the coming months.

US apparel imports have experienced a remarkable 27.4% growth in value in 2021 compared to the previous year, driven by a strong US economy and robust consumer demand. This growth surpasses the rebound seen after the 2008 global financial crisis, which was only 13%.

It is anticipated that consumption will gradually recover and reach pre-pandemic levels in the coming years, with a projected value of US$2,007 billion by 2025.

China and Vietnam are the top two importers in the US market, with 21.08% and 18.31% shares, respectively. 

However, China's import of apparel to the US decreased by 29.65%, and Vietnam's readymade garment imports fell by 10.62% in the same period.

Growth faces headwinds

Bangladesh, Indonesia, and Cambodia also experienced declines in their apparel imports to the US, while India's readymade garment exports to the US market grew by 0.41%.

In the European Union (EU), apparel imports decreased by 2.03% in the first two months of 2023 compared to the same period last year. China remained the top supplier with a 26.27% share, but its imports to the EU fell by 13.11%. Bangladesh's imports increased by 5.47% during the same period.

The average price of imported garments in the EU increased, with varying price hikes among different countries. 

Bangladesh saw an 8.75% year-on-year increase in the unit price of garment items, while China had the lowest price hike with 3.97% and Indonesia had the highest with 22.97%.

Dynamic situation

The global market for apparel imports is constantly evolving, and the EU's imports highlight the need to adapt to changing economic conditions.

The US experienced a decline in apparel imports in April 2023, with China's share reducing by 5% since 2021 and India's share increasing by 2%. However, apparel retail sales in the US showed a slight improvement in May 2023.

Similarly, the UK and EU saw decreases in apparel imports, with China and Bangladesh being the top suppliers. The UK showed some diversification in its buying basket, while the EU's diversification was relatively less.

Indian diary

Indian apparel exports continued to decline, with May 2023 exports estimated to be 14% lower than in May 2022. The industry is concerned about the impact of geopolitical events and cautious spending in the EU and US markets.

India's textile and readymade garment exports, as well as gems and jewellery exports, have been declining in recent months, affecting these labor-intensive industries. 

The country's ambitious target of increasing exports to $100 billion in the next five years may be challenging to achieve.

The cotton yarn sector in India has faced challenges due to high prices and import dependency, affecting spinning mills and the knitwear sector. The slowdown in the US and EU markets has also impacted Asian exporting hubs like Tiruppur in India.

The EU

EU Apparel Imports Dropped by 7.62% in Early 2023, Vietnam and India Thrive EU apparel imports from the world experienced a significant decline of 7.62% during January-April 2023, reaching a total of US$29.83 billion.

The number of clothing imports also saw a steep downturn of 15.45%.

Winners and Losers in EU Apparel Imports

Among the top ten sourcing countries for EU apparel, Vietnam and India demonstrated positive growth, while imports from other countries declined notably.

Bangladesh: Decline in Imports

In terms of EU apparel imports from Bangladesh, there was a 6.25% decrease in dollar value, amounting to US$7.06 billion from January to April 2023, compared to US$7.53 billion during the corresponding period in 2022. The number of imports from Bangladesh also declined by 12.48% during this period.

China and Turkey:

Decrease in Imports EU imports from China witnessed a dip of 17.07% in dollar value and 21.05% in quantity. Similarly, during January-April 2023, the EU's imports from Turkey, the third-largest apparel source, declined by 13.68% in value and 24.66% in quantity.

India and Vietnam:

Slight Growth Despite Quantity Decline In contrast, the EU's imports from India and Vietnam experienced slight growth of 0.45% and 3.41%, respectively, in value terms. However, imports from both countries declined by 8.17% and 7.26% in quantity, respectively.

Decline in Imports from Other Sourcing Countries

Simultaneously, the EU's imports from other top sourcing countries, such as Cambodia, Pakistan, Morocco, Sri Lanka, and Indonesia, decreased by 5.59%, 7.52%, 16.61%, 17.16%, and 7.99%, respectively, in value terms.

Unit Price Analysis

Analyzing the unit price (USD value/kg), the EU's cumulative unit price of imports from Bangladesh increased by 7.12% (from US$16.98 to US$18.19). This rise reflects higher raw material and production costs, signaling progress toward the higher price segment. Average unit prices of imports from other countries also experienced an upward trend during the mentioned period.

The State of Fashion 2023: Resilience in the Face of Uncertainty

The seventh annual State of Fashion report, jointly presented by The Business of Fashion and McKinsey & Company, delivers a sobering outlook for the fashion industry in 2023. 

The report highlights a forthcoming global slowdown, attributed to macroeconomic tensions and a decline in consumer confidence, which threaten to erode the gains made in 2022. Moreover, a worldwide recession looms over the fashion industry in the coming year.

Global Slowdown and Recession Expected in Fashion Industry

As the industry grapples with these challenges, inflation emerges as the primary concern. However, opportunities lie in exploring down-cycle exposure and promoting sustainability. 

Fashion executives are anxiously looking toward 2023, as the negative effects of deteriorating macroeconomic and geopolitical conditions in the latter half of 2022 continue to cast a shadow over the industry.

Prognosis

According to the BoF-McKinsey State of Fashion 2023 poll, an overwhelming 85% of fashion executives believe that inflation will continue to pose challenges in the market. 

Additionally, 58% of these executives express concerns about the fashion sector being adversely affected by the energy crisis and disruptions in the supply chain resulting from geopolitical unrest, particularly the ongoing conflict in Ukraine.

In the face of these circumstances, the fashion industry is expected to witness the return of dichotomies that have historically shaped the business. 

McKinsey projects a global sales growth of 5 to 10 percent for luxury items, while the remainder of the industry may experience growth rates ranging from -2 to +3 percent in 2023.

Latest Textile Events

13 July  2023, Mumbai

Introduction:

The global lingerie market is undergoing significant changes, influenced by the active role played by working women in propelling its growth.

Working women propel lingerie market growth, but challenges persist. The report offers industry insights, profiles major players, and analyzes regional dynamics for strategic advantage.

What all you need to know

This comprehensive market report provides valuable insights into the industry, profiling major players such as Hansbrands Inc., L Brands Inc., PVH Corp., Triumph International, Jockey International, Wacoal Holdings, and Zivame. 

Diversity; With diverse product lines and operations in various regions, these industry leaders are continuously striving to gain a competitive edge. 

The report employs a robust research methodology, combining primary and secondary research to provide a bottom-up analysis and determine the market size.

Bird's eye view
The lingerie industry has experienced substantial growth in recent years and is projected to continue expanding in the coming years.

According to a study conducted by Mordor Intelligence, the lingerie market is currently valued at USD 82.28 billion in 2023 and is anticipated to reach USD 121.01 billion by 2028.

This growth represents a compound annual growth rate (CAGR) of 8.02% during the forecast period of 2023 to 2028. Additionally, a report by Grand View Research reveals that the global lingerie market reached a value of USD 85.96 billion in 2021 and is expected to grow at a CAGR of 5.7% from 2022 to 2030.

Working Women as Growth Catalysts:

The report emphasizes the increasing number of working women worldwide as a driving force behind the market's expansion. 

As women actively participate in the business sector, spurred by education and economic growth, their improved disposable income fuels the demand for comfortable and fashionable lingerie. 

Furthermore, their modern lifestyle choices, including fitness activities and social events, contribute to the rising popularity of sports bras, shapewear, and other lingerie products.

Challenges from the Unorganized Sector:

While the market presents immense growth opportunities, the report highlights the presence of an unorganized sector as a significant restraint. 

Local suppliers dominate this segment, offering affordable and customizable lingerie options that pose a challenge to established companies. 

Pricing is about knowing your customer; These local players capture a substantial market share by catering to price-sensitive consumers. 

Moreover, the emergence of new entrants and the rise of direct-to-consumer sales through cross-border e-commerce platforms intensify competition, hindering the growth of established fashion brands and retailers.

Insights into Regional Variations:

To navigate regional variations and effectively leverage market opportunities, decision-makers can rely on the report's insightful analysis of key trends and market dynamics across different geographies. 

Know your customer; The report provides a comprehensive understanding of the lingerie market in various regions, enabling companies to tailor their strategies accordingly. 

It delves into factors such as consumer preferences, cultural nuances, regulatory frameworks, and distribution channels, providing valuable guidance to industry players seeking expansion or consolidation.

Research Methodology:

The report's research methodology encompasses primary and secondary research. Primary research includes interviews, surveys, and expert opinions, which validate the findings derived from secondary research. 

The latter involves an exhaustive analysis of press announcements, annual reports, government websites, and market research reports. 

By combining these research approaches, the report ensures a robust and reliable analysis of the market, enabling decision-makers to make informed strategic choices.

Bottomline:

Working women drive lingerie market growth, but challenges arise from the unorganized sector and intensified competition. Strategic insights help navigate opportunities and maintain a competitive edge.

Emerging paradigm; As the global lingerie market experiences shifting dynamics, working women are emerging as the key drivers of growth. 

Their increasing presence in the business sector, coupled with rising disposable incomes and modern lifestyle choices, fuels the demand for comfortable and fashionable lingerie. 

Challenges galore; However, challenges from the unorganized sector and intensified competition from new entrants pose hurdles to established companies. 

By leveraging the insights provided in this report, industry players can navigate regional variations, capitalize on market opportunities, and develop effective strategies to stay ahead in this highly competitive market.

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10 July 2023, Mumbai

To be honest, the notion that Indian consumers are flocking to retail outlets to make purchases may not be entirely accurate. 

Despite the optimism expressed by analysts and retail experts regarding the resurgence of physical retail, many brands are not experiencing the expected increase in customer footfall. So, what is the true situation for India's growing retail spaces?

India's retail industry is projected to recover and grow at nearly 10% CAGR, reaching $2 trillion in the next decade, despite challenges. The COVID-19 pandemic has reshaped consumption patterns, highlighting the complex reality of India's retail growth.

Slowing Discretionary Spends 

A recent report by PwC, published in early April 2023, sheds light on why discretionary spending has not met expectations this year. The report revealed that 74 percent of surveyed individuals felt the need to curtail non-essential spending due to uncertain financial situations. 

Financial Concerns; Ravi Kapoor, Partner, and Leader of Retail & Consumer at PwC India, explains that the survey underscores the ongoing financial stress experienced by consumers, with 74 percent expressing deep concerns about their financial situation. 

This sentiment is likely to have a restraining effect on spending in highly discretionary categories such as electronics and luxury goods.

Retail Leasing Soars 

Despite the decline in consumer spending, retail leasing is expected to reach 5.5-6 million square feet in 2023, the highest level since the peak of 6.8 million square feet in 2019, according to a report by CBRE. The primary driver of retail space demand in 2023 is expected to be leasing in newly completed malls.

Signaling Confidence

Economists have been predicting a more financially stable consumer base as India's GDP growth remains strong and is projected to solidify further by the end of 2023, providing stability for businesses and salaried workers. 

It is anticipated that the financial uncertainty felt by many Indians will be replaced by a more confident approach in 2024. Although not guaranteed, this projection is pushing retailers to prepare for the return of discretionary spending in 2024.

Attractive Deals

Attractive discounts and deals are currently being offered in high-street commercial spaces, making them a sought-after investment for both investors and retail businesses. With favorable leasing contracts and malls providing multiple-benefit deals, 

Quick Serve Restaurants (QSRs) and fashion brands, in particular, are seizing the opportunity to invest and prepare for a surge in spending next year. Malls are also creating new sections to attract customers with innovative and creative approaches. 

Among all regions in India, the Delhi-NCR region seems to be the most favored by brands for expansion.

Leading Brands Push Forward

Leading retail players such as Aditya Birla Fashion & Retail, with brands like Shopper's Stop and Trends, are displaying signs of bullish physical retail expansion. 

Jubilant Foodworks, the Indian franchisee of Domino's Pizza and Popeyes, Restaurant Brand Asia, the local franchisee for Burger King, and Westlife Foodworld, the master franchisee for McDonald's, are also not holding back despite a weak performance in the fourth quarter of the fiscal year 2022-23. 

According to rating agency ICRA, the top five QSR brands in India are planning to add 2,300 stores between the fiscal year 2023-24 and fiscal year 2024-25, with an estimated capital expenditure of Rs. 5,800 crores.

Growth is the way forward

Fashion brands are following a similar expansion trajectory, with growth seen across apparel, accessories, footwear, and kids' wear. 

For instance, Tata's Zudio plans to add another 130 outlets by the end of fiscal year 2023-24. Shopper's Stop will expand its department store model by 24 stores and add more beauty stores during the same period, while Westside aims to have a total of 214 outlets by then. 

Retailers across India are planning to accelerate their expansion plans, expecting fewer disruptions from a potential third COVID-19 wave. Many top retailers, including Reliance Retail, Shoppers Stop, and Aditya Birla Fashion & Retail, have reported better-than-expected sales before COVID-19 during the October-December quarter of this fiscal year. Reliance Retail and Aditya Birla Fashion & Retail recorded their highest-ever quarterly revenue and profit.

Gain Momentum

The growth in sales can be observed across all channels, with both physical stores and e-commerce experiencing increased revenues due to the surge in online sales during the pandemic. Reliance Industries, for example, witnessed footfall levels reaching around 95 percent of pre-COVID levels in its stores, indicating a complete recovery of its retail business. 

The company saw rising demand across various consumption categories, including consumer electronics, apparel, footwear, and grocery. 

Similarly, Aditya Birla Fashion & Retail reported a 55 percent growth in sales, while Bata India's sales surpassed pre-COVID levels. Titan, known for its jewelry business, saw a 36 percent increase in revenue, with other segments also surpassing pre-COVID sales.

Retailers Adapt; Retailers in India experienced a boost in-store footfall during the Diwali season as COVID-19 infections declined and restrictions eased. This positive trend led to a decrease in discounts and a reduction in the number of sale events held.

Expansions Fuel Growth

Encouraged by the growth, retailers are ramping up their expansion plans. Shoppers Stop, for instance, announced its intention to expand its store network to Tier II markets, which offer significant growth opportunities. 

The department store chain plans to open 8-10 stores in fiscal year and another 10 in fiscal year 2023. Reliance Retail also aims to accelerate its growth momentum and expand operations as the situation normalizes. 

The company opened 1,700 stores between April and December 2021 and plans to continue rolling out new stores at a faster pace. 

Apparel brands are also strategizing expansion of their brick-and-mortar businesses in the third quarter. 

Shoppers Stop, for example, plans to increase its private-label offerings and open 20 department stores and 20 beauty stores over the next six months and two years, respectively. The focus is on deepening its presence in smaller towns with smaller-sized stores to improve efficiency.

Sales Flourish Across Channels

The positive growth trajectory has led to increased optimism and aggressive expansion plans among retailers. 

Reliance Retail, Tata-owned Trent, Aditya Birla Fashion & Retail, and Shoppers Stop, among others, have all seen sales surpass pre-COVID levels during the festive season. 

This boom has prompted them to announce new expansion plans, including store expansions, the launch of new store formats, and the addition of new product categories.

Anticipating a Confident Future

Positive Trends; the Indian retail sector is experiencing a mixed scenario. While discretionary spending has not met expectations, there is still significant retail leasing activity and optimistic projections for future consumer spending. 

Retailers adapt by offering attractive discounts, exploring new strategies, and expanding their physical store presence. 

The growth in sales across various channels, particularly during festive seasons, has further fueled expansion plans. 

With improving economic conditions and increased consumer confidence expected in the future, retailers are gearing up for a potential surge in spending. They are investing in the necessary infrastructure to capture the market's potential.

Latest Textile Events

06 July  2023, Mumbai

The Potential of the Indian Denim Industry; The global denim market is projected to reach $64.1 billion by 2020.

India's denim industry has demonstrated consistent growth, with a current manufacturing capacity of approximately 1.1 billion meters per year. The industry operates at utilization levels of 80-85 percent. 

What all you need to know

Despite these impressive figures, the Indian denim manufacturing sector only contributes 5 percent to the global market, reflecting the overall performance of the textile industry.

Advantages of India as a Denim Manufacturing Hub

Unleashing the Potential; However, experts believe that denim is the only segment within the Indian textile industry with significant potential for growth. Global denim manufacturers are increasingly considering India as an emerging export region due to its adherence to quality standards, cost-effectiveness, and availability of a skilled workforce. 

Domestically, the demand for denim wear is driven by rising disposable incomes, the westernization of work culture, and the growing popularity of denim jeans as business casual attire. 

Furthermore, the younger generation in India, influenced by globalization, considers denim an essential part of their daily wardrobe.

Importance of Textile Industry in Make in India
The textile industry plays a vital role in the Make in India initiative, offering immense potential for growth and employment opportunities.

The government has undertaken various measures to support the sector, such as providing financial aid and subsidies, establishing special economic zones, and streamlining regulations.
The Make in India scheme has already proven to be beneficial for the textile industry, attracting investments from multinational corporations, thanks to the increasing presence of organized retail, favorable demographics, and rising income levels that are expected to drive textile demand.
Government Measures
To capitalize on these opportunities and achieve sustainable growth, India should focus on medium-term policy priorities. Firstly, it is crucial to maintain macroeconomic and financial stability.
Additionally, India should continue to liberalize trade and foster greater trade integration to fully leverage its current exports and production structure.
Sustainable Growth
Mission-Driven Execution; One strategy to streamline the sector is by establishing large-scale clothing parks and shared textile manufacturing infrastructure. Upgrading outdated equipment and technologies should be a key priority to modernize the industry.

Furthermore, India needs to develop a comprehensive plan specifically tailored to the textile industry. Once the plan is in place, the nation should adopt a mission-driven approach to diligently execute it.

Emerging Opportunities 

India possesses several advantages for denim manufacturers. It is one of the few countries with a presence across the entire textile value chain, from cotton production to garment manufacturing. 

Additionally, India has a large skilled workforce and offers quality products at competitive prices. 

Most textile companies in the country have adopted global safety and environmental compliance standards to remain competitive internationally. 

Walmart's ambitious plan to export goods worth $10 billion annually from India by 2027, will support the Make-in-India program. It also discusses the Production-Linked Incentive (PLI) scheme, aimed at encouraging investment in textile manufacturing, particularly man-made fibers, and technical textiles. 

Furthermore, India's demographic factors, such as an expanding purchasing power and a modernizing fashion sense, contribute to the growth of the sector. In fact, India is ranked as one of the top destinations for retail investments among emerging markets.

Challenges and Opportunities in the Indian Denim Sector

Despite rapid growth in the Indian denim manufacturing industry in recent years, there are still challenges to overcome.

Technological expertise remains an issue, and the "Make in India" initiative must provide specific support to the indigenous denim industry for it to be successful. Integration of technology and capacity building is crucial to increasing fabric production, both for domestic consumption and exports.

The Role of the "Make in India" Initiative in Denim Manufacturing

The "Make in India" initiative holds immense potential for the Indian denim industry. Its vision has the power to transform the industry's perception and increase India's contribution to the global denim market. 

Continual Growth; To realize this vision, the denim manufacturing sector needs supportive mechanisms and effective implementation. 

Once these are in place, India's domestic denim market and its export capabilities will become unparalleled.

India's Position in the Global Textiles and Garment Market

India's affordability in terms of raw materials and labor, advancements in textile technology, and the "Make in India" policy make it an attractive destination for foreign investment in the textile and garment business.

The initiative aims to not only position India as a global producer but also cater to the growing consumer base. This also applies to the global fashion industry.

From Mass Production to Handwoven Heritage; Unleashing the Potential of Indian Handicrafts By Balancing Industrialized and Handmade Textiles in Make in India.

Bridging the Gap in Global Textiles

Recognizing the potential of India's textiles and garment category, the government has allowed 100 percent foreign direct investment (FDI) in the sector. Previously, protectionist measures limited international companies from conducting business in India without partnering with local entities.

Impressive Manufacturing Capacity; While India has natural advantages in cotton production, cheap labor, and rich history, it has lagged behind other ASEAN countries such as Myanmar, Bangladesh, and Vietnam. The importance of free trade agreements that facilitate.

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12 July 2023, Mumbai

Traditionally, global textile manufacturing has been dominated by China, the US, and the European Union (EU) countries such as France, Germany, Italy, Spain, and Portugal, along with India, Bangladesh, and Vietnam. 

However, a new wave of countries within the Association of Southeast Asian Nations (ASEAN) is emerging as strong players in textile manufacturing. 

What all you need to know

ASEAN's Dominance in Textile Manufacturing Continues to Grow

The ASEAN countries have established their dominance in the textile manufacturing sector, and this trend shows no signs of slowing down. The textiles and clothing industry in the ASEAN region is experiencing steady growth, evident from the import of textile machinery into the region and the strong resource base for value-added product manufacturing. 

ASEAN's integration in the textile and clothing industry is comprehensive, encompassing all aspects of the supply chain across multiple ASEAN members. This includes fiber production, yarn spinning, fabric knitting or weaving, as well as the cutting and sewing of finished apparel.

ASEAN's Sustainable Manufacturing Efforts Gain EU's Favor, Boosting Credibility.

Rise of ASEAN Nations in Textile Manufacturing

A similar situation can be observed in India, where inflation has become rampant, leading to higher input costs and increased prices for finished goods. 

As a result, many manufacturers have relocated their units from India and China back to the US, or they have sought out other more affordable manufacturing destinations. 

Consequently, India is no longer a preferred outsourcing destination.

Labor Costs Drive ASEAN's Textile Manufacturing Boom

The ASEAN nations are currently leveraging trade, migrant labor, and transferable capital to promote prosperity in Southeast Asia. Specifically, the international garment industry within ASEAN is facilitating regional investment integration, skill transfer, job creation, and economic growth.

US Obstacles Drive Manufacturing Boom; China's concerns over increasing labor costs, sluggish demand from the West, and the US's interference in its financial journey have created an opportunity for ASEAN nations to capitalize on.

Poses Strong Competition to India and China

ASEAN countries are gradually gaining market share in the global textile market. Cambodia, Thailand, Vietnam, Myanmar, and the Philippines have strong potential in the textile sector and are making significant advancements in their development. 

Upswing; Textile product exports from these countries are continuously increasing, posing tough competition for India and China. India's Inflation Woes Diminish its Appeal. They have a fair chance of dominating the global textile market in the foreseeable future.

Alfred Tan, the deputy chairman of the Cambodian AFTEX member Textile, Apparel, Footwear, and Travel Goods Association in Cambodia (TAFTAC), emphasizes the pivotal role of textile-related industries in ASEAN economies and their competitive presence in the market. 

He notes that the region has successfully captured a larger global market share, serving as an alternative supply source to China and other key countries. 

Tan also highlights the narrowing gap between production costs (including raw materials, labor, logistics, and compliance) and FOB and retail pricing over the past decade, expecting this trend to continue into the next decade. 

Growing appreciation; ASEAN governments recognize the sector's future potential in terms of domestic job opportunities and foreign exchange generation, providing tax incentives to manufacturing units and collaborating with the sector to attract local, regional, and international direct investments.

Region's Appeal for Outsourcing Increases as Manufacturers Seek Cheaper Destinations

Moreover, ASEAN's cooperation on environmental issues is guided by the ASCC Vision 2025, which aims to promote balanced social development and a sustainable environment. 

These efforts align well, particularly with the EU's focus on greener manufacturing methods, enhancing ASEAN's credibility in the global market.

ASEAN's Garment Industry Thrives

Towards stronger vertical integration, the ASEAN Federation of Textile Industries (AFTEX) has launched the Source ASEAN Full Service Alliance (SAFSA). SAFSA aims to establish a virtual vertical supply chain by connecting ASEAN apparel factories, buyers, textile mills, and apparel factories. 

This enables businesses to offer comprehensive service packages to international buyers. 

SAFSA currently has 45 members, including 27 buyers, with annual apparel sales exceeding US$50 billion. Major brands like Benetton Group, Colombia Sportswear Company, Debenhams, Guess, Marks & Spencer, Polo Ralph Lauren, and Hermes-OTTO are among SAFSA's customers.

A View on Vietnam:

In April 2023, Vietnam's textile industry experienced a mix of positive and negative trends. Robust growth was observed in cotton imports, with a significant increase of 27.9% Year over Year (YoY) and 29.9% Month over Month (MoM), indicating strong demand. 

However, yarn imports faced a temporary slowdown, declining by 16.4% MoM, despite a slight 0.8% YoY increase.

Vietnam's Textile Industry Faces Mixed Trends 

Yarn exports also witnessed a decline, with a 4.7% MoM and 1.4% YoY drop. China, South Korea, and the United States remained the primary export destinations for yarns. The net export of yarns decreased by 4.3% YoY, but there was a promising increase of 18.8% MoM.

Furthermore, imports of grey fabrics and finished textiles decreased by 9.6% MoM and 20.7% YoY. The textile and garment exports faced challenges, declining by 3.3% MoM and 19.4% YoY.

These trends highlight the challenges faced by Vietnam's textile industry, including global macro risks and weakening demand in key markets. 

To adapt to changing market dynamics, Vietnam's textile industry needs to navigate these obstacles and develop sustainable growth strategies.

Vietnam's Foreign Trade Performance Update

Tran Thanh Hai, the deputy general director of the Agency of Foreign Trade, reported double-digit growth in Vietnam's exports and imports during the first quarter of 2022, reaching $176 billion, a 14.4% year-on-year increase. Export growth accounted for 12.9% of this growth. 

Hai attributed the increase to the favorable impact of new-generation free trade agreements (FTAs) and regional trade agreements. 

Vietnam has established several FTAs, including those with Japan, Chile, Korea, the Eurasian Economic Union, as well as agreements within ASEAN and with India, Australia, and New Zealand.

Textile and Apparel Exports Contribute to 46.9% of Total Trade in RCEP Countries

According to recent data, textile, and apparel exports (T&C) from countries in the Regional Comprehensive Economic Partnership (RCEP) accounted for $374.6 billion, representing 46.9% of global trade. 

In contrast, imports amounted to $138.5 billion, making up 15.9% of global trade. Major exporting countries include Vietnam, Cambodia, Myanmar, and various ASEAN regions, while China, Singapore, Brunei, the Philippines, Japan, South Korea, Australia, and New Zealand were net importers.

Trade dynamics

China is actively investing in Vietnam to diversify and enhance the value of its exports. Meanwhile, Bangladesh, with its low labor costs, continues to compete in the market. 

Raihan Mahmud, the marketing director of Bangladesh's Tex Garment Zone, expressed that if exporters in Bangladesh can diversify their products and the government secures new free trade agreements, the country has a better chance of catching up.

Emerging paradigm

Both the apparel sectors in Bangladesh and Vietnam are poised to benefit from the "China plus one" strategy adopted by many garment sourcing companies, thanks to their diverse capabilities and advantages. 

According to WTO data, Vietnam is projected to surpass Bangladesh as the world's second-largest garment exporter in 2020.

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08 July  2023, Mumbai

The EU Commission has introduced regulations to promote sustainability and circularity in the textile sector.

These regulations align with the EU Strategy for Sustainable and Circular Textiles, holding producers accountable for their products' entire lifecycle and encouraging sustainable management of textile waste throughout the EU.

What all you need to know

Waste reduction

The main objective of the proposal is to transform the industry by accelerating the separate collection, sorting, reuse, and recycling of textiles. This will increase the availability of used textiles, create local jobs, reduce consumer costs, and mitigate environmental impacts. 

A crucial element of the proposal is the mandatory and harmonized Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States.

Under these schemes, producers will bear the costs of textile waste management, incentivizing waste reduction and the design of circular products based on their environmental performance. 

The proposal includes common EU rules for extended producer responsibility, intending to facilitate separate textile collection by 2025. 

Green financing

The funds generated by producer contributions will be used to invest in infrastructure for collection, sorting, reuse, and recycling, with an emphasis on efficient sorting for reuse and prioritizing recycling for non-reusable items. 

Social enterprises engaged in textile treatment will benefit from expanded business opportunities and a larger second-hand market.

Disruptive innovations

The proposal also promotes research and development in innovative technologies like fiber-to-fiber recycling to enhance circularity.

In addition, measures are being taken to address illegal textile waste exports by clarifying waste and reusable textile definitions and ensuring environmentally sound waste management during exports through forthcoming waste shipment regulations.

The revision of the Waste Framework Directive will separately address food waste. The proposal will undergo a review by the European Parliament and Council through the legislative procedure.

Conservation of resources

The European Commission is determined to enforce regulations for sustainable fashion by 2028 to address its environmental impact. Textile consumption ranks as the fourth-highest contributor to environmental and climate effects, following food, housing, and transport. 

Major fast fashion companies like Inditex and H&M are actively seeking ways to reduce water and energy usage and increase the use of recycled textiles. 

The Commission plans to introduce 16 legislations that will hold fashion companies accountable for their environmental consequences. 

These measures will pose challenges for fast fashion brands, as they will require waste collection or financial contributions. 

The Role of Recycling 

The EU aims for durable garments that prioritize reuse and easy recycling by 2030. Currently, the EU discards 5.8 million tonnes of textiles annually, equivalent to 11 kg per person, contributing to rapid landfill and incineration rates worldwide.

To address deceptive eco-labels, the Commission will implement regulations effective next year. 

Furthermore, EU governments have agreed to ban the destruction of unsold textiles, promoting their reuse and recycling. The ban's implementation is expected to take around six months. 

Apparel industry experts in Bangladesh believe that the country is fully equipped to cope with the European Union's decision to end fast fashion by 2030.

Growing Greenwashing concerns

The EU has recently expanded its eco-design rules for textile products and urged major companies to disclose the volume of unsold inventory they hold. The new rules mandate companies to refurbish their clothing designs to meet specific criteria, including disclosing information on the garment's shelf life and the amount of recycled materials used. 

Each reviewed garment will be provided with a digital product passport to verify its recyclability and prevent greenwashing. The rules also prohibit the destruction of unsold or returned goods.

Coordinated policy framework

To ensure conformity, Bangladesh is collaborating with brands like H&M, M&S, and G-Star. Ziaur Rahman, Regional Country Manager for H&M-Bangladesh, Pakistan, and Africa, expresses support for the European Commission's efforts to establish a coordinated policy framework and a level playing field. 

Rahman emphasizes the importance of collaboration between local authorities and brands to enable the transformation of the entire industry.

BGMEA vision 

Bangladesh apparel manufacturers have renewed their vision to align with international strategies. 

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) unveiled their renewed vision, which includes reducing greenhouse gas emissions by 30% by 2030, increasing the use of sustainable materials by at least 50%, and reducing the blue water footprint by 50%. 

The sector also aims to reduce energy consumption by 30% and use at least 20% renewable energy. Additionally, apparel manufacturers plan to invest $1 billion in sustainable communities, ensure complete sustainability in data reporting, increase the number of green factories by 80%, and improve production efficiency by 60%. 

The BGMEA is working with the European Commission and the Circular Fashion Partnership (CPF) initiative, funded by P4G, to achieve a long-term transition to a circular fashion.

Circularity

The recent decision by the European Parliament to ban the destruction of usable surplus stock and returned goods, combat aggressive and false advertising, and introduce reduction targets for material and consumption footprints aligns with the European Commission's Strategy for Sustainable and Circular Textiles. Stakeholders commend the parliament's actions and urge the European Commission to develop a robust plan for managing and reducing clothing waste in the EU. 

Companies are encouraged to take responsibility for their textile waste, including supporting waste management efforts in countries like Ghana and Kenya that receive excessive amounts of second-hand clothes from Europe. 

Experts emphasize the importance of the textile industry adhering to social and environmental rights and call for a swift ban on destructive practices across all product categories. 

They urge the European Commission to embrace the parliament's ambition by establishing binding reduction targets for the EU's material and consumption footprints.

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06 July  2023, Mumbai

The European Union's implementation of new ESG laws necessitates that apparel brands disclose extensive information about their supply chains, including supplier names, working conditions, and environmental impact. 

What all you need to know

New ESG Laws Drive Supply Chain Transparency

Failure to comply with these laws carries significant penalties, making it crucial for brands to ensure ethical sourcing and manufacturing. This requires full visibility into operations, which can also confer a competitive advantage.

However, the textile supply chain is intricate, involving multiple players in sourcing, manufacturing, and distribution. This often leads to information silos, hindering executives' ability to respond swiftly to disruptions. The pandemic has underscored the importance of supply chain visibility, as even minor disruptions can have far-reaching consequences. 

Brands that recognize the significance of visibility at every stage of the supply chain can enhance agility, and resilience, and avoid major ESG violations.

The Triple-A Supply Chain: Agility, Adaptability, and Alignment in a Globalized World

In today's supply chain landscape, achieving optimal performance goes beyond mere speed and cost-efficiency. The most successful supply chains embody the principles of agility, adaptability, and alignment. 

This concept, known as the triple-A supply chain, has received significant attention in both academic and trade literature and has been widely integrated into various supply chain management curricula.

Global village

As the world becomes increasingly globalized and interconnected, supply chains have grown more complex and interdependent. This heightened complexity has made it challenging to maintain the necessary visibility required for effective management. 

As a result, leaders worldwide have had to adapt their managerial approaches to cope with these changes and ensure their supply chains remain efficient and resilient.

Growing ESG concerns

Moreover, the interconnectedness of diverse stakeholders in the supply chain has given rise to unforeseen environmental and social concerns. Navigating these relationships and their potential impact on the supply chain has become a crucial aspect of modern supply chain management. 

In this context, Professor Lee's emphasis on the triple-A supply chain remains highly relevant and significant.

To ensure ethical sourcing and avoid penalties

Improved supply chain visibility not only helps prevent ESG violations but also offers significant benefits for apparel brands. It enables informed decisions regarding inventory management, product development, and logistics.

To address the challenge of limited visibility, technology solutions such as production tracking software and digital quality management and inspection tools are available. 

Brands can utilize these solutions to closely monitor global suppliers, maintain constant communication, establish safeguards and approvals, and receive timely updates on all activities. Technology solutions offer solutions to help achieve.

Benefits of Agile Methodology 

Achieving agility and resilience in supply chains relies heavily on having visibility. Resilient supply chains demonstrate the required agility and responsiveness to effectively sense, predict, and respond to changes, especially during turbulent times. 

Within these resilient supply chains, incorporating an agile methodology into distribution or wholesale operations yields numerous advantages. 

Enhanced Supply Chain Visibility

By establishing enhanced visibility throughout the entire supply chain, organizations can anticipate and proactively address potential disruptions before they escalate into significant problems. 

Low Resilience Levels in Supply Chains; According to a recent survey conducted by Gartner, only 21% of respondents currently possess a highly resilient network, indicating that they have both good visibility and the capacity to quickly adapt sourcing, manufacturing, and distribution activities. 

Prioritizing Resilience; This suggests that increasing resilience will become a prioritized goal for many organizations as they navigate through the ongoing crisis.

Pathbreaking

In terms of corporate citizenship and ESG performance, sportswear brand Nike has recently ranked first in 3BL Media's evaluation of the top corporate citizens in the United States. 

The evaluation assessed the environmental, social, and governance (ESG) transparency and performance of the 1,000 largest publicly traded U.S. companies.

Triple Bottom Line

The textile sector faces a complex landscape of conflicting sustainability reporting frameworks and standards. ESG, often referred to as the Triple Bottom Line represents a sustainability tripod that companies must prioritize in addressing supply chain ESG concerns and taking actionable steps towards achieving sustainable goals. 

The sector is responding to growing regulatory compliance and government actions, driven by conscious and evolving end-users.

Given the textile sector's heavy environmental impact, it is no surprise that it is considered one of the biggest polluters. 

With increased global attention to climate change, incorporating ESG principles into core business strategies has become crucial for companies. 

Competitive edge

Doing so enhances credibility, reputation, and competitive advantage. ESG factors such as carbon emissions reduction, renewable energy use, and fair labor practices help mitigate the sector's negative impact on the environment and society. 

In making a sound business case, environmental, social, and governance (ESG) considerations are paramount for business and investment decision-making.

Moreover, ESG factors serve as a robust yardstick for evaluating a firm's/project's performance and risk. In many instances, investors prioritize environmental issues over conventional business metrics, highlighting the importance of ESG in investment decision-making.

Supply chain visibility brings benefits beyond ESG compliance

A shifting approach towards result-based financing, focusing on green growth, has become the new norm. The complex landscape of conflicting sustainability reporting frameworks and standards that guide businesses and investors in ESG disclosure may become more apparent as awareness and regulatory oversight increase.

According to McKinsey & Company, achieving sustainable goals is a comprehensive organizational challenge that often requires product portfolio transformation. Therefore, organizations/companies must prioritize supply chain ESG concerns.

Investors prioritize ESG considerations

ESG investing surges as companies incorporate sustainable goals; ESG investing raises concerns as well. 

Bloomberg reports indicate that investors poured around $120 billion into ESG ETFs in 2022, marketed as comprising companies with a strong and credible ESG performance history. 

This figure is projected to reach $1 trillion by 2025 as investors seek to mitigate risks associated with ESG disputes and potential claims.

In conclusion

In today's globalized and intricate supply chain landscape, the principles of agility, adaptability, and alignment play a vital role in ensuring the success and sustainability of supply chain operations. 

Leaders and managers must continuously strive to optimize their supply chains with a focus on these key factors to stay ahead in an ever-changing business environment.

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