22 June 2023, Mumbai

The concept of the immersive metaverse holds immense potential in the apparel sector, revolutionizing the way brands, designers, and consumers engage with fashion.

By leveraging augmented reality and virtual reality technologies, the immersive metaverse offers a transformative experience that merges the physical and digital realms.

What all you need to know

The role of events presenting what the future holds

The concept of the immersive metaverse, as depicted in the given text, represents a significant advancement in the realm of experiential events and trade shows. 

By leveraging augmented reality and 3D technology, Milano Unica aims to create a virtual space where individuals can interact and engage with the event as if they were physically present, transcending spatial limitations.

The Metaverse Boom: Engaging Users and Unveiling the Dark Side

As Investment Grows: Investments in the metaverse are soaring, leading to powerful and affordable hardware and software. Tech firms have high expectations for this market.

Consumer Brands Enter the Digital Realm: Consumer brands are seizing digital real estate to cater to the growing demand for experiences beyond the physical world.

Importance of User Engagement: Engaging people on the metaverse platform is crucial for all stakeholders involved.

Introducing Immersive Time (ImT): Immersive Time (ImT) is the dedicated use of headsets and accessories to escape reality and engage in the metaverse. Multitasking becomes limited in ImT.

Recognizing the Dark Side: Prolonged ImT usage is important but one must acknowledge its inherent drawbacks.

Implications for Researchers and Practitioners: Understanding ImT is vital for researchers, tech developers, brand managers, and policymakers ensuring customer safety in the metaverse.

This immersive metaverse introduces a new level of engagement and interactivity for attendees. 

It allows visitors to explore the virtual environment, guided by the Milano Unica avatar, which serves as a virtual representation of the event. The avatar not only assists in navigating the metaverse but also provides updates, tips, and information on the showcased novelties.

Experiential

The thematic communities within the metaverse, such as Night, Family, and Culture, serve as creative cues for the upcoming Fall/Winter 2024/2025 season. By integrating fabric and accessory collections that align with these themes, Milano Unica creates an engaging and captivating environment for visitors, further enhancing the immersive experience.

Innovation & imagination

By blurring the lines between reality and the metaverse, Milano Unica aims to amplify its distinctive values and deliver an enriched experience for attendees. This concept goes beyond traditional trade shows by providing a platform where individuals can interact, explore, and be inspired by the showcased products and themes in a virtual space. 

The immersive metaverse offers a unique opportunity for innovation and creativity, transforming the way people participate in events and fostering a sense of connectivity in a digitally enhanced world.

Enhancing engagement: Stickiness

Overall, the concept of the immersive metaverse, as exemplified by Milano Unica, showcases the potential of virtual environments to revolutionize the way we engage with events, trade shows, and creative experiences. 

It opens up new possibilities for connecting people from diverse locations, eliminating spatial constraints, and creating immersive journeys that transcend physical boundaries.

Bridging the Gap Between Online and In-Store

In this virtual space, brands can showcase their collections in a dynamic and interactive manner. 

Dynamic Showrooms and Virtual Try-Ons; Consumers can explore virtual showrooms, try on virtual garments, and experience a lifelike representation of how the apparel would look and fit in the real world. 

This immersive experience bridges the gap between online shopping and the tactile nature of in-store experiences, providing a unique and engaging way for consumers to interact with fashion.

Unlocking Creative Expression

For designers, the immersive metaverse presents a platform for experimentation and creativity. 

Virtual Fashion Shows and Innovative Designs; They can create virtual fashion shows, where the boundaries of reality are pushed, and new forms of expression are embraced. 

Designers can manipulate digital fabrics, experiment with innovative patterns, and present their collections in fantastical virtual settings, offering a glimpse into the future of fashion.

Building Global Communities

The immersive metaverse also opens up opportunities for collaborative experiences. Brands, designers, and consumers can connect and interact in real-time, transcending geographical limitations. 

This fosters a sense of community and inclusivity, enabling fashion enthusiasts from around the world to come together and share their passion for style and creativity.

Paving the Way for a Sustainable Future: Minimizing Waste and Environmental Impact

Furthermore, the immersive metaverse offers sustainability benefits. Reducing the need for physical prototypes and samples minimizes waste and the environmental impact of traditional fashion production. 

Virtual garments can be showcased, experimented with, and modified without physical resources, paving the way for a more sustainable and efficient fashion industry.

Real-Time Connections and Inclusive Experiences

The concept of the immersive metaverse in the apparel sector represents a paradigm shift in the way fashion is experienced, designed, and consumed. It combines technology, creativity, and community, offering a seamless blend of the physical and virtual worlds.

The Path Forward: A research agenda is proposed to enhance comprehension of consumer behavior and engagement in the metaverse. 

With its potential to enhance engagement, foster innovation, and promote sustainability, the immersive metaverse has the power to shape the apparel industry's future.

Latest Textile Events

19 June 2023, Mumbai

Textile machinery is necessary for the manufacturing of fabrics, thread, yarn, and finishing procedures in the textile industry. The market for textile machinery is currently seeing a transition from basic machines to more complex ones that improve the quality of the finished product. 

What all you need to know

Milestones and Implications

The textile machinery industry's technological advancement is what led to this. Germany is recognized as the world's leading producer of textile machinery, particularly for nonwoven and technological textiles. However, over the past 10 to 15 years, sales of nonwoven and textile fabric machinery have increased. 

The provision of machinery with the most recent technological advancements and the delighted customers, who are extremely satisfied with the performance and quality of the machines, are the driving forces behind this continual success.

Textile industry in other countries

German textile machinery has a reputation for producing high-quality equipment. Their textile machinery is of the finest quality, with exceptional technical performance in a variety of applications. The makers of textile machines are always looking to innovate in this area because it gives them so many chances. 

The market for German textile machinery is growing internationally. To draw potential customers, the German Textile Machinery Association has organized exhibitions throughout Asia and the Middle East. 

Pathbreaking

On these occasions, the manufacturers can discuss the most recent technological advancements and breakthroughs in textile machinery that have improved the quality of textile production. 

Additionally, it strives to improve its position in the global market. Asia is where the German textile machinery industry has discovered the largest market for its goods. 54.9% of the machinery imported from Germany is bound for Asia alone.

German preeminence

Furthermore, China is the sole consumer of German textile machinery in Asia. China receives 26.1% of the textile machinery that Germany exports, with India taking second place in terms of purchases. 

The majority of the countries that purchase German textile machinery are China, India, Turkey, the United States, Italy, Brazil, Saudi Arabia, Pakistan, Bangladesh, and the Czech Republic. 

VDMA Textile Machinery Association consists of about 110 businesses. These businesses specialize in selling textile machinery or specialized textile parts. With their cutting-edge machinery, some businesses are doing well. India has been one of the main markets for the German textile machinery trade for the past few years. 

Germany continues to lead the global market for advanced textile machinery, despite China's problems in this area and its fierce competition.

Italy's importance cannot be overstated

Italy is a further market leader for textile machines. Italy is the third-largest supplier of textile machinery and is renowned for producing the highest calibre machinery available anywhere in the world. 

They have extensive understanding and have completed numerous large-scale textile installations in numerous nations. 

However, Italy is currently suffering difficulties as a result of the heightened rivalry from second-tier rivals like China, Turkey, and India. Globalization has caused a gradual shift in textile manufacturing in Asian nations. 

As a result, not only was the location of the textile industry changed, but the textile machinery sector in Asian nations has also experienced significant growth. Italy is currently the second-largest producer of textile machinery in the world, and its rivals deem the technology employed to be of the greatest caliber.

Growing Dependence on China

China's Progress in Textile Equipment Localization; Additionally, the rise of the local and foreign markets has contributed to China's textile trade expanding quickly. After over 30 years of growth, China has started trading in textile machinery. 

China dominates the textile machinery market

China's exports of textile machines surpassed $10 billion in 2007 for the first time. Since that time, exports have risen steadily, and China's textile machinery market is booming. 

Despite being one of the nations producing textile machinery worldwide, China does not uphold international standards. It cannot be said that China's textile machinery sector aims to produce standardized machines in addition to manufacturing a great number and variety of textile machines. 

China is luring international investment with favorable tax laws and lucrative commercial opportunities.

Manufacturing advancements in the sector.

Achieving Self-Sufficiency

China has made remarkable progress in achieving self-sufficiency in textile equipment production, as stated by the China National Textile and Apparel Council. 

Currently, over 80% of China's textile equipment is manufactured domestically, highlighting the country's growing capability to produce high-quality machinery with locally sourced components. 

This achievement is complemented by the stable growth of China's textile and clothing exports, which reached a substantial volume of 323.3 billion U.S. dollars in 2022.

Localization and Quality

The Chinese government has actively invested in the textile and apparel industry, a vital contributor to the nation's economy. By prioritizing localization, China aligns its efforts with domestic innovation and production objectives. 

This strategic focus is expected to reduce China's reliance on imported machinery and components, bolstering the industry's resilience against global supply chain disruptions. 

Furthermore, the increased self-sufficiency in textile equipment production is anticipated to enhance the competitiveness of Chinese textile and clothing manufacturers in international markets.

Stable Growth and Global Leadership

To facilitate these advancements, the China National Textile and Apparel Council is dedicated to guiding and supporting industry companies. 

This involves integrating resources along the industrial chain, addressing technological challenges, and elevating the overall capabilities of the textile machinery sector. 

China's progress in localizing high-end textile equipment components and achieving self-sufficiency in production marks significant milestones for the country's textile and apparel industry.

Resilience and Competitiveness

Guiding the Industry: Due to this, manufacturers of advanced textile machinery, such as German textile machinery, have established their facilities in China to take advantage of the country's affordable labor and advantageous tax laws. The industrialized countries produce and export textile machinery. 

In turn, this boosts machinery exports and improves China's standing in the textile machinery sector. 

One might get the conclusion that China's textile machinery market is undoubtedly expanding, but only domestically. When it comes to complex machinery with high-quality output, it has to contend with fierce competition from industrialized nations. 

By boosting its investment in R&D, China's textile machinery sector can increase the reliability of its products. China is resolving a number of issues to produce high-end goods with industrial safety and product dependability.

A scenario in the second-hand machinery industry

The second-hand machinery sector is growing in popularity globally as a result of the ongoing recession. Due to high labour costs and rigorous environmental regulations, the textile, paper, and leather sectors are collapsing in the US and Europe. 

Enhancing Capabilities; As a result, there are now more used machines from these industries available. In Europe and the US, Pakistan, China, and India are considered to be key markets for used machinery. 

Many Indian textile companies are keen to buy used textile machinery from Europe that is available to be sold for a pitiful sum. 

Fascinating opportunity; Due to the closure of mills in the US and Europe as well as machinery that is no longer useful to them, Indian enterprises are primarily interested in purchasing shuttle-less looms. Spinning, weaving, and finishing equipment is easily accessible.

Latest Textile Events

15 June 2023, Mumbai

As the global economy began to recover from the pandemic crisis of 2020, real GDP increased by 3.3 percent globally in 2022. Although a global recession is not anticipated in 2023, certain mature and emerging economies (such as those in Latin America) will likely cause growth to slow. 

What all you need to know

However, it is anticipated that Asia's rising economies will dominate global growth in 2023. One percentage point of the 2.3 percent worldwide growth this year is predicted to come from China alone. 

Stepping back; The last time China made such a significant contribution to global economic growth was in 2009, when almost all of the world's economies, save for China, entered a recession.

Global growth engine

China's resurgence in the textile industry post-pandemic holds significant global implications. With textile factories swiftly reopening in the Guangdong area, the workforce is rapidly gaining momentum. 

This resurgence is not limited to domestic operations but extends to China's outbound foreign investments in the textile and apparel sector. 

Impressively, these investments surpassed $6.7 billion between 2015 and 2020, emphasizing China's commitment to consolidating its position as a key player in the global textile market. As China's textile industry bounces back, its impact on the global economy and trade dynamics is poised to be substantial.

The textile factories in China are located in the Guangdong area. The reopening of these factories will have a positive impact on the global textile sector as it will increase the supply of textiles and apparel products.

China's Textile Demand Shows Signs of Improvement

China's textile industry is experiencing a potential upturn in end-user demand, especially in the domestic market, although sustainability remains uncertain. Analysts eagerly await the results of China's textile demand for the first quarter of 2023, as it shows some improvement compared to the second half of 2022.

While the end-user demand graph may approach the peak of the same period last year, the ability to sustain this growth throughout the season remains to be seen.

The East Asia and Pacific (EAP) region is expected to witness better growth figures, projected at 4.3% in 2023, as pandemic-related restrictions ease and business activity in China gradually recovers.

Challenges Ahead for Exports

A report by CCF Group highlights important facts about China's apparel segment's current growth. Firstly, improving exports in the first half of 2023 will be challenging, and performance in the second half will depend on the destocking situation in overseas markets.

Secondly, the sustainability of this demand hike is unclear, making it unreliable and difficult to maintain. Additionally, the upcoming autumn/winter demand is expected to be slow due to the high intermediate inventory from last year.

Domestic Demand Boosts China's Textile Industry

Currently, business is picking up in China's largest apparel wholesale markets, such as the Shisanhang Garment Wholesale Market in Guangzhou and the Sijiqing Costume Market in Hangzhou.

However, even the Spring Festival in February failed to significantly boost sales, with factories closed and workers returning home due to COVID infections.

The report also highlights the disparity between the East China and South China textile markets.

Sustainability of Growth; The South China market demonstrates stronger demand, driven by replenishment demand after the Spring Festival and a rebound in seasonal demand for the first half of 2023.

In contrast, the East China market lacks spring apparel, and the cotton yarn market is performing well despite previous declines in the cotton industry chain.

The printing and dyeing textile industry has faced challenges, with increased production costs leading to price hikes to recover losses. Supply chain confusion arises as dyeing factories rush to complete old orders while receiving new orders.

Uncertainty Remains

Although China's domestic fabric demand for the spring-summer season arrived early in February, demand for seasonal fabrics remains unreliable and unsustainable.

The first half of the year primarily sees three categories of textile demand: exports, seasonal fabric demand, and autumn/winter fabric stock preparation. However, there is poor demand for autumn/winter stock preparation in the first half of 2023 compared to the current positive demand.

The post-Zero COVID lockdown phase presents unpredictable demand for upcoming seasons, and the balance sheet of the autumn-winter 2023 season will reveal if China can regain its former glory in the global apparel export segment.

Changing paradigm

China's economic rebound in 2023 will be driven by industries in the service sector. We anticipate the service sector to be the engine of the recovery in 2023, just as it was in 2021 when the Chinese economy recovered from the pandemic downturn of 2020. 

The lockdowns had an impact on manufacturing sectors as well, but consumer-facing sectors including transportation, retail trade, lodging, and dining took the worst hit. 

However, the recovery of 2023 is not anticipated to be as great as it was in 2021 due to a considerably worse global growth environment coupled with a persistent property market downturn. 

Base effect; A mechanical increase in the year-over-year statistic from extremely low levels is responsible for some of the predicted 5.3 percent growth in China's GDP in 2023.

The impact of the rising inflation

Contrary to certain hypotheses, it is not anticipated that China's reopening will significantly lessen constraints on the global supply chain. Since 2021, sluggish global supply networks have been a major contributor to rising inflation. 

Could a complete liberalization of China's economy reduce inflation? We assert that "no" because of several factors. First, as shown by improved international shipping rates and delivery times towards the end of 2022 and into early 2023, supply chain stresses were already beginning to ease. 

Softening global demand

This is probably due to the general slowdown in demand in major export markets as well as a shift in family spending from products to less trade-intensive services, the latter of which was suppressed during pandemic lockdowns. 

As a result, exports of commodities from Asian economies began to trail in the second half of 2022 and were in the red by the beginning of 2023. Second, China's manufacturing output expanded by a robust 3% in 2022, so there was no discernible decline. 

As they took the brunt of the lockdowns, several service sector industries experienced contractions at the same time. Finally, it is likely that the ongoing conflict in Ukraine, together with labor shortages, is contributing to supply chain problems.

Global headwinds

On the other hand, the liberalization of China would significantly increase inflation in the world energy markets. A percent of the world's oil imports come from China, which is a significant energy importer. 

China purchased 12.7 million barrels of oil per day in 2021, which was comparable to imports from Europe. The Chinese economy's biggest oil consumers are the manufacturing sectors, which will account for 26% of GDP but 36% of oil demand in 2020. 

However, although being less oil-intensive, service sector activities still account for an estimated 46% (in 2020) of oil demand due to their sheer magnitude, with transportation operations making a sizable contribution. 

Oil Conundrum

Consequently, a significant rise in oil consumption is projected to follow China's economic recovery in 2023, which would be mostly driven by the services sector. Here, we focus primarily on the effect on energy demand. 

Although demand for other commodities may also rise, we believe that the impact on energy will be greater because a large portion of the rebound is anticipated to originate from activity in the service sector. 

It is not anticipated that manufacturing, which accounts for the majority of China's imports of commodities, will grow in 2023 at a rate higher than that seen in 2022.

Reopening of current projects and their impact

Due to China's reopening, global consumer price inflation may be 0.30 to 0.65 percentage points higher than current projections. Oil demand in China increased by 9.2 percent in 2021, decreased by 2.4 percent in 2022, and is expected to increase once again in 2023. 

We examine three scenarios for the recovery in China's oil demand and its impact on inflation both domestically and internationally due to the high degree of uncertainty.

We anticipate that China's oil demand will likely increase by about 5% in the base case. A rise of roughly 2.5 percent is predicted in the low-growth scenario and a rise of about 7.5 percent in the high-growth scenario. 

Inflationary expectations

According to Oxford Economics model simulations, the respective low, base, and high growth scenarios might increase global oil prices by 10, 15, or 20 US dollars per barrel. Global Consumer Price Index (CPI) inflation could rise by 0.3 to 0.6 percentage points as a result year over year. 

The regional impact on CPI inflation will differ; the US (0.40-0.83 ppt) and India (0.35-0.75 ppt) would see the greatest upward pressure, followed by the Euro Area (0.30-0.60 ppt) to a smaller but still significant level. China's regional inflection is one of the weakest among the main global economic blocs.

Macro-Prudential Policies

Increased inflationary pressures make monetary policy more difficult and may make harsh landings more likely. 

Globally, central banks have increased interest rates in reaction to strong inflation that began in 2021 and picked up significantly in 2022.

Due to a combination of falling commodity prices, decreased supply chain pressures, and fading base effects as high readings from the prior year disappear from the year-over-year print, total consumer inflation has slowed or even decreased since mid-2022. Price pressures, nevertheless, are still high and are predicted to stay that way. 

Pass-through of earlier increases in input costs, increased demand for services, and swifter wage rise in many economies are all contributing factors. 

We also include China's reopening on this list. This means that in many economies, monetary policy will remain tight or become even more restrictive, which will result in slower economic development and, in some circumstances, longer and/or deeper recessions than expected.

Latest Textile Events

21 June 2023, Mumbai

Cautious Consumer Behavior; Consumers are exercising caution when purchasing clothing and accessories due to the higher prices of daily goods, leading to a constraint on their discretionary spending. This cautious approach is affecting the demand for fashion products. 

What all you need to know

Lackluster Retail Sales and Early End-of-Season Sales

Retail sales have been lackluster in April and May, prompting companies to initiate early end-of-season sales to manage their inventory. The subdued sales performance is attributed to cautious consumer behavior and higher prices of goods. 

Slower Growth Rate for Fashion Retailers

Industry analysts anticipate a slower growth rate of 10% in revenues for fashion retailers in the current financial year. This growth rate is a significant decrease from the 51% increase reported in the previous year. 

Soft Demand Scenario and Weak Footfall

The demand for lifestyle products remains soft across various categories, price ranges, and geographical regions. Footfall in stores has been weak, although there has been a modest improvement in revenue trends in June.

Anchored Inflationary Expectations for FY24

Headwinds; Dampener Discretionary spending cut hurts Apparel Industry.

ICRA expects demand pressures on fashion retailers to persist in the first half of the fiscal year, with the hope of improvement during the festive season. However, revenue growth is expected to moderate in FY24 due to inflationary headwinds.

ICRA's analysis suggests a decline in revenue growth for listed retail entities and a decrease in operating profit margins. 

Impact of Higher Raw Material Costs and Discount Sales

Retailers have had to pass on high raw material costs to consumers, contributing to higher prices for the Spring-Summer 2023 collection. To stimulate demand and clear inventory, retailers have advanced discount sales by a week. Shifting Consumer Spending and Overall Footfall

Consumers may be shifting their spending from apparel to experience-led expenses like food and beverages, resulting in a decline of 7-8% in overall footfall across the country. 

Cautionary Consumer Behavior Impacts Fashion Retailers as Prices Rise

Weak retail sales have led to lackluster performance for fashion retailers, resulting in the early initiation of end-of-season sales. Analysts expect a slower revenue growth rate of 10% this year, down from the previous year's 51%. 

RAI prognosis

Demand for lifestyle products remains soft across various categories and regions, although there has been a modest improvement in June. In May, the Retailers Association of India reported a 7% sales growth, with moderate progress in jewelry and apparel, but the lowest growth in sportswear since the pandemic.

Festive season to perk up 

ICRA predicts ongoing demand pressure in the first half of the year, which is expected to improve during the festive season. However, inflationary challenges will limit revenue growth in FY24, with listed retail entities projected to experience a 10% decline in revenue and a 5.7% drop in profit margins.

Inflationary pressures

Since 2022, tepid demand has persisted due to high raw material costs being passed on to consumers. Prices for the Spring-Summer 2023 collection remain high due to previous increases in cotton prices, although cotton yarn prices are starting to soften. 

To stimulate demand and clear inventory, retailers are offering advanced discount sales. Footfall has decreased by 7-8%, potentially due to consumers prioritizing experiential expenses over apparel purchases.

Global view

The global apparel industry is bracing for a slowdown this year as macroeconomic tensions and dwindling consumer confidence eat into the profits of retailers, following a post-Covid surge in 2022. Key sectors like electronics, garments, furnishings, and automobiles are now scrutinizing the distinction between essential and non-essential products for daily living.

Apparel Industry Faces Slowdown as Consumer Confidence Wanes and Economic Tensions Rise

Consumers are less inclined to replace high-priced, long-lasting items such as electronics, luxury fashion apparel, and cars with newer versions in 2023. 

The apparel industry has also been impacted by rising cotton prices, leading to a decline in sales. While there was a strong sales performance in the second half of last year, the trend has become increasingly volatile in subsequent quarters.

US retail spending takes a hit

US consumers have significantly reduced their impulsive shopping for apparel and accessories, delaying the replacement and upgrading of electronics. PYMNTS, a reputable global leader in data analysis, highlighted in a recent report that US retail spending has decreased by approximately $8 billion in recent months. 

The research indicates that 67 percent of retail customers anticipate significant price increases next year, and the average global consumer does not expect inflation to normalize until the end of 2024. Data from the US Census Bureau also reveals a 1 percent decline in general spending on a seasonally adjusted basis, following a 0.2 percent decline from February to January 2023.

Prophecy

According to McKinsey's fashion forecast, fashion retailers are projected to experience slow sales growth of -2% to +3%, primarily due to a contraction in the European market (-1% to -4%). 

However, China and the United States are expected to have better performance, with growth rates of 2% to 7% and 1% to 6% respectively. Initially, during the pandemic, fashion took a backseat as consumers focused on more essential needs such as food and health, leading to a shift in demand.

Quick Comparison

Not only did the electronics and appliances segment experience a month-on-month decrease of 2.1 percent and a year-on-year decline of approximately 10.3 percent, but the home furniture and home furnishings segment also saw a decline of 1.2 percent and 2.4 percent, respectively. Spending on branded clothing, shoes, bags, and accessories also slipped by 1.7 percent month on month and 1.8 percent compared to the previous year.

Questionable claims

In addition to the slowdown, the Federal Trade Commission (FTC) has been cautioning advertisers to substantiate claims about their products, issuing notices to over 670 companies warning them of potential civil penalties if their ads contain unsubstantiated claims. As consumers tighten their budgets, many companies resort to making false claims and misleading advertisements to entice customers into buying their products.

Textile sales slow down in India

In India, the slowdown is not limited to apparel but has also affected fine dining restaurants and liquor segments, which had seen a surge in sales last year as consumers eagerly returned to wining and dining. 

However, the demand growth in feel-good categories like apparel, quick service restaurants, and lifestyle products has started to taper off, as the peak period has already passed. 

Although apparel players may appear to experience high growth in favorable seasons, overall demand trends remain relatively unchanged. Rising cotton prices have hit small-town consumers the hardest, as they are particularly price-sensitive.

Discretionary

According to a report by HDFC Securities, the peak demand in discretionary categories appears to be behind us. Growth was facilitated by higher ticket sizes, store expansion, and increased footfall, but many of these factors are now normalizing. 

In Q4, there are already signs of scaled-back expansion plans across various categories, and ticket sizes are also returning to normal levels. 

Discretionary spending may weaken in Q4, with apparel and lifestyle companies expecting sales growth of only 15-20 percent. Experts caution that pent-up demand cannot be sustained indefinitely as people revert to their normal consumption habits.

Uncertainty is the new certainty

The apparel industry faces challenges in the form of exposure to a downcycle and the sustainability of certain segments. 

Inflation poses the greatest threat, as deteriorating macroeconomics and job losses weighed heavily on the industry in the second half of 2022 and continue to create uncertainty in the fashion segment in the initial months.

Conclusion

The combination of cautious consumer behavior, lackluster sales, inflationary pressures, and shifting spending patterns poses challenges for fashion retailers. 

The industry expects a moderate growth rate for the current financial year and anticipates improved demand during the festive season. 

Retailers are adjusting their strategies by offering discounts and managing inventory to navigate these challenging market conditions.

Latest Textile Events

17 June 2023, Mumbai

The textile sector is on the brink of a remarkable turnaround following a challenging year characterized by various obstacles. 

The industry is poised for a revival in demand, especially during the third quarter of FY24, as global retailers take measures to reduce their excessive inventories and commence placing orders for the anticipated Summer/Spring 2024 collections. 

What all you need to know

Revival in demand expected

Experts in the field are optimistic about the sector's future, attributing this positive outlook to favorable market conditions, such as the geopolitical uncertainties faced by competitor countries. 

This factor is expected to infuse vitality into the textile industry, leading to sustained growth in earnings and improved cash flows for textile players.

Cautious optimism

The global textile industry is expected to experience a surge in demand, particularly in luxury apparel and footwear, with a projected 16% growth, according to McKinsey. 

From April to December 2021, the combined exports of textiles, apparel, and handicrafts reached $29.8 billion, compared to $21.2 billion in the same period the previous year. 

While the textile-clothing sector is benefiting from this rebound, it has been negatively impacted by reduced demand resulting from the global financial crisis and the Ukraine war. 

The International Textile Manufacturers Federation (ITMF) has identified "weakening demand" as the primary concern in the global textile value chain since July 2022.

Performance

With the completion of capital expenditure projects, textile companies will shift their focus toward reinforcing their balance sheets and optimizing return ratios. 

Furthermore, the decline in cotton and crude prices is anticipated to bolster profit margins and enhance India's competitiveness in international export markets. Remarkably, the textile sector has already made significant strides in capturing market share in key export markets, particularly in the realms of garments and home textiles.

Geopolitics

The potential for a UK free trade agreement and the implementation of the China+1 strategy serve as additional catalysts, augmenting the sector's prospects for realigning earnings and multiples. 

Sharekhan, a leading brokerage firm, has upgraded its outlook on the textile sector, now categorizing it as 'positive.' Notably, Sharekhan has identified Gokaldas Exports, KPR Mill, Himatsingka Seide, and SP Apparels as its preferred picks within the sector.

Tailwinds

The implications of this projected revival are significant, as the textile industry plays a pivotal role in the global economy, providing employment opportunities and driving economic growth. As demand rebounds and market conditions improve, the sector is poised to generate substantial revenue, contributing to overall economic recovery. 

The resurgence of the textile sector is a positive indicator for stakeholders, investors, and the broader business community.

Although the end-user demand graph may be nearing the peak of the same period last year, it remains to be seen if this growth in fabric demand can be sustained throughout the season. 

EAP view

The East Asia and Pacific (EAP) region is expected to experience better growth figures, projected at 4.3% in 2023, as pandemic-related restrictions are lifted and business activity in China gradually recovers.

Disruptions

The printing and dyeing textile industry has faced challenges due to the substantial increase in production costs, leading to price hikes to recover losses. The rush to complete old orders while receiving new orders after the Spring Festival has also created confusion in the supply chain for dyeing factories.

China Diary

A report by CCF Group, a premier consultancy in China, highlights some important facts about China's current growth in the apparel segment. Firstly, exports are expected to be difficult to improve in the first half of 2023, and the performance in the second half will depend on the destocking situation in overseas markets. 

Secondly, the sustainability of this demand hike remains unclear, and maintaining the upward trend may prove challenging. 

Additionally, the upcoming autumn/winter demand is expected to be slow due to unused inventory from the previous year, resulting in high intermediate inventory levels until the May-June season concludes.

Growth levers; China's domestic fabric demand for the spring-summer season arrived earlier than expected in February, but demand for seasonal fabrics remains unreliable and unsustainable. 

In the first half of the year, textile demand is mainly divided into three categories: export demand, seasonal fabric demand, and autumn and winter fabric stock preparation demand. 

However, compared to the current good demand, there is poor demand for autumn and winter stock preparation in the first half of 2023. The pandemic disrupted logistics in Guangzhou, leading to a missed opportunity for winter sales.

Currently, business is picking up in China's largest apparel wholesale markets, such as the Shisanhang Garment Wholesale Market in Guangzhou and the Sijiqing Costume Market in Hangzhou, after the pandemic disruptions. 

Challenges & opportunities; However, even during the Spring festival in February, there was a relatively low sales boost, as factories were closed and workers had returned home due to COVID-19 infections, resulting in fewer spring clothes available in the Guangzhou market.

Imbalance; The CCF report also highlights the disparity between the textile markets in East China and South China. The South China market shows stronger demand, driven by significant replenishment demand after the Spring festival and a rebound in seasonal demand for the first half of 2023. 

In contrast, the East China market lacks spring apparel, as brands typically prepare summer apparel directly in Guangzhou. Furthermore, the South China market benefits from low cotton yarn prices, even though the cotton industry chain experienced a decline the previous year.

China's Textile Industry: Rebounding Strongly in Guangdong

China's textile industry is experiencing a remarkable recovery after the pandemic, particularly in the Guangdong area.

This resurgence not only revitalizes domestic operations but also drives China's outbound investments in the textile and apparel sector. With investments surpassing $6.7 billion between 2015 and 2020, China aims to solidify its position as a key player in the global textile market. The rebound of China's textile industry carries significant implications for the global economy and trade dynamics.

Improved End-User Demand in China's Domestic Market

China's textile industry demonstrates signs of improvement in end-user demand, especially within the domestic market. 

Analysts eagerly await the first-quarter results of China's textile demand in 2023, expected to show improvement compared to the latter half of 2022. However, sustaining this growth throughout the season remains uncertain.

Export Challenges and Slow Autumn/Winter Demand

China's apparel segment faces challenges in enhancing exports during the first half of 2023, depending on the destocking situation in overseas markets. 

Boost in Domestic Demand and Market Disparities

China's major apparel wholesale markets, such as the Shisanhang Garment Wholesale Market and the Sijiqing Costume Market, experience a surge in business activities.

The South China market demonstrates stronger demand driven by post-Spring Festival replenishment and rebounding seasonal demand.

In contrast, the East China market lacks spring apparel but exhibits a well-performing cotton yarn market.

Uncertain Outlook for Seasonal Fabric Demand

While China's domestic fabric demand for the spring-summer season arrived early, the sustainability of seasonal fabric demand remains uncertain. 

However, the first half of 2023 lacks substantial autumn/winter stock preparation, contrasting with the current positive demand. 

China's Economic Rebound Driven by the Service Sector

China's economic rebound in 2023 relies on the service sector as the primary driver.

The recovery is expected to be less substantial than in 2021 due to a challenging global growth environment and a persistent property market downturn. 

Nevertheless, a mechanical increase in the year-over-year statistic and the rise of the service sector contribute to the projected 5.3 percent growth in China's GDP in 2023.

Impact of Rising Inflation on Global Supply Chain

China's reopening is unlikely to significantly alleviate constraints on the global supply chain. Sluggish global supply networks have been a major factor in rising inflation since 2021. 

While improved international shipping rates and delivery times indicate easing supply chain stresses, a general slowdown in demand and a shift towards less trade-intensive services have impacted exports from Asian economies. 

China's increased oil consumption, primarily driven by the services sector, is expected to raise global oil prices and contribute to higher global consumer price inflation.

Macro-Prudential Policies in Response to Inflationary Pressures

The increased inflationary pressures pose challenges for monetary policies globally, potentially leading to tighter monetary policy and slower economic development. 

Central banks have already raised interest rates to counter strong inflation, and price pressures are expected to remain high. This tight monetary policy may result in slower economic growth and longer or deeper recessions in some economies.

Post-COVID era

The post-Zero COVID lockdown phase brings unpredictable demand for the upcoming seasons, and it remains to be seen if China will regain its former glory in the global apparel export segment. 

The first quarter of 2023 is eagerly anticipated by analysts as they await the results of China's textile demand. 

There are some signs of improvement in textile end-user demand compared to the second half of 2022, particularly in the country's domestic market.

The textile sector worldwide is preparing for challenging times ahead, as the impending recession in the Western world, compounded by the pandemic and geopolitical tensions, disrupts supply chains, drives up raw material prices, and reduces demand.

SouthAsia view

Countries heavily reliant on textile exports, such as Bangladesh, India, and Pakistan, are particularly affected. Bangladesh, known for its readymade garments and textiles, is facing challenges due to a decrease in demand, affordability of raw materials, unfavorable trade policies, and internal security concerns. 

Bangladesh is considering diversifying into the growing global home textiles segment to mitigate the impact on its sinking sector.

India, with its skilled manpower and comparatively lower production, remains perpetually competitive in the textile world.

The textile sector is poised for a turnaround

Sum & substance; The textile sector's challenging year is giving way to a promising future. 

With a projected revival in demand, enhanced market conditions, and the potential for recalibrating earnings through strategic agreements and initiatives, the industry is set to experience sustained growth and improved financial performance. 

The upgraded outlook by Sharekhan reinforces this positive sentiment, highlighting specific textile companies as preferred investments. As the sector weaves its new story, it promises to be an essential driver of economic recovery and prosperity.

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14 June 2023, Mumbai
The Indian Women's Wear Market, with a valuation of Rs 1,02,358 Cr. in 2020, is a key driver of transformation in India's apparel industry.
Shifting Consumer Behavior and Empowered Women Propel Market Growth
This market has witnessed a significant shift in consumer behavior, with modern Indian women prioritizing not only beauty but also the preservation of their unique charm. Financial independence has empowered women, making affordability less of a concern.

What all you need to know
As a result, they seek clothing that enhances their self-esteem, fueling the demand for innovative designs and styles.
Fusion of Tradition and Modernity Reinvents Fashion Landscape
Traditional clothing is undergoing a remarkable transformation, blending with contemporary elements to create a fusion of ethnic and Western wear. This trend has gained immense popularity, especially among the younger generation of consumers.
The convergence of traditional and modern designs has breathed new life into the Indian Women's Wear Market, expanding its appeal and driving the market growth.
Economic Growth and Seamless Payment Experiences Boost Demand
Factors such as India's economic growth, increasing disposable incomes, and the availability of seamless payment experiences have contributed to the rising demand in the Indian Women's Wear Market.
The country's expanding middle class and thriving manufacturing industry have positioned India as a fashion hub. International brands recognize the potential of this market and are keen to establish their presence.
Comprehensive Research Provides Insights and Projections
Thorough research and analysis form the foundation of understanding the Indian Women's Wear Market. The report encompasses comprehensive market insights, incorporating real-world data from 2016 to 2020.
The projections until 2027 enable stakeholders to make informed decisions. The report covers various regions, including North America, Europe, Asia Pacific, South America, and the Middle East and Africa, providing a holistic view of the market landscape.
Ethnic Wear Dominates, with Sarees Leading the Pack
Ethnic wear holds a prominent position in the Indian Women's Wear Market. Sarees, salwar kameez, and blouse dresses contribute significantly to the market's growth, particularly sarees, with a market value of Rs 36,035 Cr. Sarees remain widely accepted across urban and rural India, symbolizing elegance and tradition.
Rising Working Women Population Drives Transformation in India's Women's Wear Market
The women's wear market in India is undergoing a remarkable transformation, reshaping the apparel industry.
With a projected market value of nearly 39 billion U.S. dollars by 2025, according to Statista, the sector is experiencing substantial growth driven by various factors, including the rise in the working women population in India.
Ethnic Wear Dominates the Market with Impressive Market Value
Ethnic wear holds the largest market share within the women's wear sector in India. In the financial year 2021, the market size of Western wear in women's apparel amounted to 147 billion Indian rupees.
Although this represented a decrease compared to the previous year, it is estimated to reach around 355 billion rupees in the financial year 2025.
Significant Valuation and Growth Potential of the Indian Women's Wear Market
The Indian Women's Wear Market was valued at Rs 1,02,358 Cr. in 2020, reflecting its immense size and impact on the industry.
Furthermore, it is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.8% during the forecast period from 2021 to 2027. This growth projection indicates the market's potential and attractiveness for industry players.
Summarisation
The Indian women's wear market is undergoing a transformative phase, driven by factors such as the increasing working women population.
Ethnic wear continues to dominate the market, while the overall market value and growth potential remain significant, making it a promising sector within the Indian apparel industry.
The Indian Women's Wear Market, valued at Rs 1,02,358 Cr. in 2020, is driving a transformative wave in India's apparel industry.
Shifting consumer preferences, the fusion of tradition and modernity, economic growth, and the dominance of ethnic wear are reshaping the fashion landscape and attracting international brands to tap into this thriving market.

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20 June 2023, Mumbai

India has long been the leader in the textile and garment sector, but the sector temporarily suffered from the worldwide pandemic between 2020 and the beginning of 2021.

India made sure to seize the positive and healthy demand in both the domestic and international markets with only a little push in the midst of the world economy's recovery. 

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Datapoints

The same is evident in the most recent statistics made public by prestigious textile and garment businesses as well as through official channels. Studies have been reporting on the performance of the Indian textile and apparel industry for the past several months, and the growth narrative will continue through the conclusion of FY '24. 

According to Ministry of Commerce and Industry data, India's textile and garment sector experienced the highest-ever rise in exports, rising by 40.55 percent to US$43.44 billion in FY'22 from US$30.90 billion in FY'21. In terms of overall numbers, ready-made clothing exports in FY 22 totaled US $ 16 billion, up 30.40% from FY 21.

Steady Growth: Indian Textile and Apparel Industry on a Promising Path

The Indian textile and apparel industry is set to experience robust and consistent growth, with a projected compound annual growth rate (CAGR) of 10% from 2019-23.

This upward trajectory aims to propel the industry to a remarkable market value of US$190 billion by 2025-26. Such impressive figures indicate a positive outlook for the sector.

Rising Market Potential: Energy Consumption and Environmental Impact

Notably, the Indian textile and apparel industry holds significant importance in terms of energy consumption, accounting for around 9-10% of India's total industrial energy usage.

Moreover, it contributes approximately 3% to global greenhouse gas emissions, emphasizing the need for sustainable practices within the sector.

Income Surge Driving Apparel Industry Growth

The driving force behind the thriving apparel industry in India is the escalating income of the population. With per capita income expected to grow at a CAGR of 7-9% over the next decade, more consumers have the means to invest in clothing and textiles, further fueling industry expansion.

Domestic Market Dominance: Expanding Opportunities

The domestic textile and apparel market in India, valued at over $100 billion as of 2018-19, is poised for remarkable growth.

Projections indicate a CAGR of 12%, propelling the market size to reach a substantial $223 billion by 2021. Currently, the domestic market holds sway, accounting for approximately 74% of India's total textile and apparel market, signaling ample opportunities for growth and investment.

Cautious optimism; the Indian textile and apparel industry's steady growth, driven by rising incomes and domestic market dominance, paints a promising picture for the sector's future.

As the industry strives to address energy consumption and environmental concerns, it has the potential to create numerous opportunities for stakeholders and contribute significantly to India's economic landscape.

India's Retail Revolution: Transition to Organized Retailing

India's retail industry undergoes a transformative shift from traditional to organized retailing, aligning with global trends. Despite initial hurdles, India is poised to claim the industry's second position.

Consumer Behavior: Unlocking Opportunities in a Booming Market

Understanding consumer behavior becomes paramount to leveraging the immense potential of the rapidly expanding apparel market. Adapting strategies accordingly holds the key to success.

Uptick

In reality, the fourth quarter of 22 proved to be a catalyst for the expansion of Indian garment factories, as they recorded US $ 4.81 billion in export revenues or an 18.11% Y-o-Y increase. If the clothing and textile sectors are combined, the rise is considerably greater due to the buoyant domestic demand for textile raw materials. 

Leading from the front, Indian public limited companies across the supply chain, including Arvind Ltd., Siyaram Silk Mill, KPR Mill, Gokaldas Exports, and Welspun, as well as other public limited entities like PDS Ltd., Raymond, and Maral Overseas, demonstrated positive results in the recently ended Q4 of FY '22, as well as for the entire financial year (see Tables 1, 2, and 3). Additionally, some of the organisations experienced exceptional growth on both the top and bottom lines. 

Export perspective in the industry

From an export perspective, the major garment retail markets in the world, including the USA, Europe, Australia, Japan, and South Korea, among others, have shown Y-o-Y growth in 2021 over 2020, which has benefited Indian factories with an export focus. 

Consumer interest in omnichannel commerce has been strong for the stores that have chosen it. apparel and apparel accessory store sales allegedly increased by 33.1% during the course of the holiday season, above projections for growth of 14.1% to US $ 886.7 billion. 

The most recent quarters have seen pretty strong results from a variety of international brands and shops. The National Retail Federation (NRF) recently stated that consumers used to inflation continued to spend in April '22, supporting the claim that the USA continues to experience strong demand.

Thus, despite higher costs, clothing retail sales in the US increased on a monthly basis compared to March 22.

The ascent 

A select few of the businesses were also active in diversifying their portfolio, which aided in their successful growth. Companies like PDS Ltd., which purchased a share in UK-based Filkor Limited, saw their most recent quarter and fiscal year break records as they not only beat expectations but also established a new standard for growth going forward. 

When discussing the efforts behind this achievement, the company's vice chairman, Pallak Seth, says, "This year we have witnessed long-term association with leading brands and retailers, offering them 'Sourcing as a Service' for exclusive territories, including Hanes Brands in Bangladesh and S.Oliver in India. 

Additionally, we are observing how sourcing opportunities are developing as more retailers and brands looking to connect with companies that have an integrated supply chain, such as PDS. 

Although the company's primary business is sourcing, its manufacturing operations just had a significant turnaround, and moving forward, this division is anticipated to contribute to the bottom line.

The manufacturing sector had a 92% increase in top-line revenue from Rs. 285 crore in the previous fiscal year to Rs. 547 crore this year.

Demand tailwind

In a similar vein, Australian retail sales on February 22 again exceeded expectations. Comparing the first two months of the year, the clothes and department store sectors both saw increases of over 11%.

The Australian Bureau of Statistics (ABS) notes that in March 2022, the total Australian retail turnover increased by 1.6%, setting a new record. 

Companies that are vertically integrated and have access to both the home and international markets also benefit from strong demand. The same is confirmed by Arvind Ltd., which also notes that fabric and apparel volumes were high in both local and international markets. The volume of fabric remained stable.

Growth Trajectory: Expanding Global Apparel Market

The global apparel market sets sights on surpassing $2.6 trillion, with a 5% CAGR for worldwide garment demand. India and China lead the charge, outpacing the global average with projected growth rates of 12% and 10% respectively.

Driving Forces: Factors Shaping Indian Organized Retail

Rising working women population, increasing disposable incomes, accessible credit, price differentiation, quality parity, and strategic use of media drive India's dynamic organized retail landscape.

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16 June 2023, Mumbai

Given its wealth of natural and human resources, Sub-Saharan Africa has tremendous potential to be competitive in the manufacturing of cotton textiles and apparel. 

Despite the industrial possibilities, the area is still having trouble competing on a worldwide scale. 

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The continent called Africa

The possibilities and difficulties faced by Sub-Saharan African nations are discussed in this article. A diversified region, Sub-Saharan Africa has a wealth of natural and human resources, and it has a great deal of potential to produce cotton competitively and achieve equitable prosperity. 

In terms of generating cash and jobs, its textile and garment sector is crucial. 

Conspicuous

Sub-Saharan African nations have caught the attention of textile corporations from around the world recently and have emerged as a promising locations for sourcing textiles and apparel. 

Foreign investments, investor trust in the continent's manufacturing and design capabilities, and the expanding cotton industry are the main drivers of this sector's spectacular growth. 

When compared to exports of $4.11 billion in 2020, the value of textiles and clothing from Sub-Saharan African nations climbed by 25% to $5.14 billion in 2021.

The devil lies in details

Statistics show that the import-to-export ratio for Sub-Saharan African nations is significantly greater. This suggests that, in contrast to other developing nations at a comparable stage of economic development, the region is unable to meet its internal demands. 

A financial imbalance and a lack of economic activity in the area are indicated by the larger import-to-export ratio. Due to the low prices of imports from Asian nations like China, India, and Pakistan, the textile and clothing sectors in the Sub-Saharan African countries are experiencing escalating rivalry in the local market.

With a population of 1.14 billion and a growth rate of 2.7% annually, Sub-Saharan Africa is home to 77% of the world's under-35 population. 

Positive demography

In the next 20 years, Sub-Saharan Africa will experience the greatest rate of growth in the working-age population worldwide. More than 900 million individuals in the region will be of working age by 2035, matching China's population size. 

The textile and clothing industries are among those paying attention to this enormous worker pool.

The cotton business in Africa

One of the most significant cash crops in Sub-Saharan Africa, cotton plays a significant role in generating foreign exchange, reducing poverty, and creating jobs. 

The fifth-largest producer of cotton in the world, Sub-Saharan Africa accounts for 7.12% of worldwide production, with about 75% of the region's output coming from West Africa. 

The output of cotton in Sub-Saharan Africa has increased significantly, and it will produce more than 1.84 million tonnes of cotton in 2021. 

Over 450,000 people are employed in the Sub-Saharan African region's cotton industry, which currently accounts for 15.93% of global exports. 

Cotton continues to be the most popular natural fiber used in the garment industry, where demand for natural fibers is anticipated to increase. 

Datapoint

According to the United States Department of Agriculture (USDA), by 2025, Sub-Saharan Africa's exports of cotton lint are expected to increase by 14%. 

A growing portion of these raw material exports go to China and Southeast Asia before being transformed into finished items and marketed to customers in the US and the EU. 

Sub-Saharan Africa is anticipated to be the third-largest exporter of raw cotton in 2029, according to the OECD agricultural outlook.

Enhancing Economic Ties: Kenya and the US Collaborate in the Clothing Industry

Kenya and the United States have forged a strong economic partnership with a series of new co-investments in the clothing industry, totaling $55 million. 

These strategic agreements, supported by Prosper Africa and the US Agency for International Development (USAID), highlight the unwavering commitment of the US to strengthening economic ties with Kenya.

Collaborative approach

The collaboration between American and Kenyan clothing firms will yield significant benefits, including increased employment opportunities in both countries and streamlined business operations. 

The US government, through the Prosper Africa program, is actively connecting US and African companies to new customers, suppliers, and investment prospects, fostering growth and prosperity.

Enduring impact

One of the key agreements involves MAS Intimates, a clothing company dedicated to enhancing the production of high-quality garments in Kenya. Through this partnership, Kenyan workers will receive education and training, leading to the creation of jobs in the formal sector. 

United Garment Liquidators (UAL), a discount clothing company, plans to bolster garment exports to the US market by establishing a comprehensive facility in Kenya that integrates every phase of the production process, from "Farm to Fashion." 

Mega Sports Apparel aims to expand its production capacity by incorporating new production lines.

Unfolding developments

Furthermore, Kenya's Coast Apparel will enhance its production and export capabilities through the acquisition of machinery, ultimately generating more employment opportunities, particularly for women and young people. 

Best Lifestyle, situated in Athi River, plans to scale up production in Kenya and hire and train additional workers. 

Nexgen Packaging, a US-based packaging company, will construct a facility in Kenya to manufacture tags and labels for clothing and footwear, catering to both domestic and international markets.

To further promote investment, a trade mission to the United States, including a roadshow in New York, has been organized, aiming to attract additional US investments in Kenya. 

This mission signifies the determination of both countries to foster economic growth, strengthen bilateral relations, and unlock new opportunities in the clothing industry.

Snapshot

There are a total of six cotton basins on the African continent, with the West African basin being the most significant. 

The top cotton-producing nations, Burkina Faso, Benin, Mali, and Cote d'Ivoire, have seen their volumes increase over time due to an increase in harvested area, mostly as a result of rising government subsidies. 

The USDA estimates that 4,843 thousand hectares (ha) will be used to cultivate cotton across Sub-Saharan Africa in MY 2022–23. 

The greatest area, 740 thousand hectares, is anticipated to be planted in Mali, an increase of 2.78 percent from 2021–2022; however, Benin and Burkina Faso are anticipated to plant over 650 thousand ha each in MY 2022–2023, an increase of 1.56% and 9.24%, respectively, from the previous year.

In reference to the context

The African Development Bank Group (AfDB) has calculated that along the cotton value chain, which includes cotton production, spinning and twisting into yarn, weaving and knitting into the fabric, followed by dyeing, printing, and design, up to 600% of value can be created. 

Sub-Saharan Africa's textile sector includes a variety of micro, small, and medium-sized enterprises (MSMEs), which can quickly create jobs and support women's empowerment. 

The AGOA (African Growth and Opportunity Act) Since 2000, the US has had an AGOA trade strategy with Sub-Saharan Africa. It is a non-reciprocal US trade preference policy that gives the majority of exports from qualifying African nations duty-free access to the US market. 

AGOA encourages US exports and draws capital to Africa, which aids in accelerating economic growth. The AGOA's authorization was renewed through September 2025 by the Trade Preferences Extension Act of 2015. At the moment, 24 of the 36 Sub-Saharan African nations that qualify for benefits under AGOA do so for textile and clothing.

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13 June 2023, Mumbai

One of India's biggest producers of textiles, Vardhman Group has a dominant market position and an environmentally friendly business style. 

What all you need to know

History

The Group, which began modestly in 1965, set out to become a top-tier textile company, producing a wide variety of goods for the world textile market. 

In addition to being a good corporate citizen, the Group aims to deliver customer happiness via excellence in production and customer service, built on the creative integration of cutting-edge technology and human resources. At the moment, Vardhman exports to more than 65 nations worldwide!

The director's importance in the company

Under the active direction of S. P. Oswal, the chairman and managing director of Vardhman Group, the company has developed over time into a prominent player in the modern textile industry. He graduated with a Master's in Commerce with a Gold Medal from Chandigarh's Punjab University.  

For the years 1983 to 1987, he served as the founding president and director of the Ludhiana Stock Exchange, and from 1987 to 1991, he served as the president of the Ludhiana Management Association. 

He also served as the chairman of Nimbua Greenfield Punjab Limited, a group of Punjabi businesses working together to build a facility for the storage, handling, and disposal of hazardous wastes produced by the business with funding from the Indian government. 

Doyen of Indian Textile

In 2010, the Indian government gave him the Padma Bhushan Award for his significant contributions to commerce and industry.

He draws inspiration from Sri Aurobindo and The Mother's teachings and philosophy. 

Mr. Oswal, an industrialist with more than 50 years of experience in the textile sector, has guided the Group to an enviable position in the Textiles Sector because of his leadership, vision, and intelligence. 

The Group has effectively utilised its resources to innovate, diversify, integrate, and create a dynamic and modern enterprise out of its numerous operations. The Group, which manufactures Yarn, Fabric, Acrylic Fibre, Garments, Sewing Threads, and Alloy Steel, has grown over the years into a business giant with a presence in India and 65 other nations across the world.

Construct

The Vardhman Group's greatest strategic business unit is yarn, which has the capacity to dye 60 tonnes of yarn and fibre each day in addition to having more than one million spindles. 

The Group is the go-to company for a range of yarn needs of the top clients in India and the global markets. Vardhman provides the broadest selection of specialised grey and coloured yarns (NE 10 to NE 200) in cotton, polyester, acrylic, and other blends, in addition to a number of value-added goods. 

Setting lofty standards for the sector

The biggest exporter of cotton yarn from India to markets with the highest standards, including the EU, the USA, and nations in Asia, is Vardhman. One of the few completely integrated fabric suppliers in the nation is Vardhman. 

Modern manufacturing facilities in North and Central India are able to meet the buyers' highly specialised fabric needs by producing 114 MN meters per year of processed fabric and 180 MN meters per year of greige fabric. Customers benefit greatly from an integrated fabric supply chain that spans from raw materials to yarns and from weaving to processing.

Ventures and their Role in the Company

The market for sewing thread in India is also dominated by Vardhman. The joint venture with American & Efird (A&E Threads) of the USA offers comprehensive thread solutions for everything from industrial applications to tailoring. 

Vardhman is ideally situated to serve the garment makers worldwide with a 43 tonnes per day capacity distributed over five factories in North and South India. There are numerous textile applications for Vardhman's Acrylic Fibre. 

Versatility

Gujarat (Western India) is home to a cutting-edge manufacturing facility that uses the renowned Japan Exlan Wet Spun technology to create 22000 MT of acrylic Fibre annually. The fiber sold under the trade name VARLAN is well known in the Indian market and is one of the materials most frequently used to make winter clothing there.

Formal wear clothing is produced by Vardhman Nisshinbo Garments Company Limited for both domestic and foreign markets. For creating formal business/formal shirts, Vardhman has partnered with Nisshinbo Textiles Inc. of Japan. 

Larger than life

The facility has cutting-edge technology and strives to adhere to the highest standards for clothing manufacturing. The joint venture company serves the top formal wear brands like Louis Philippe, Van Heusen, Colour Plus, Benetton, Sisley, Wills Lifestyle, and many more while supplying the majority of its manufacturing to overseas markets through Nisshinbo. 

The group's steel division produces close to 10% of its revenue. Some of the most demanding consumers of high-quality steel, including Mercedes, Toyota, Porsche, and many others, are served by the organization. 

The plant's facilities include rolling mills, vacuum degassing, a ladle refining furnace, steel melting, and more. Plain carbon steel, case hardening steel, free/semi-free cutting steel, spring steel, and ball bearing steel are among the products that are in high demand.

Combining Excellence & Innovation

The Group works to achieve greatness by fostering an innovative and ongoing improvement-focused culture. As a company, it adheres to a deliberately conservative philosophy and believes in thoughtful, steady growth. 

The Group has been consistently making investments in the company through programs that focus on long-term sustainability. The Vardhman Group views its personnel as its most valuable resource and key differentiator. 

Philosophy of Science 

Most valued textile corporate; A culture of empowerment exists, one that recognizes and respects each person's unique potential and works to maximize it. 

People don't just do their jobs; they own them. It is one of the rare businesses today that is proud to have senior and top management that is totally domestic. 

Meritocracy; The company gives people opportunities only based on their merits, without showing favor or bias. 

Women-led growth; The Group is especially welcoming to women, who make up a sizable portion of the workforce. Vardhman is standing tall to demonstrate its value in the textile business with a force of over 28000 workers.

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