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Product Development and its Role in Apparel Industry

13 June 2023, Mumbai

The design and engineering of items that are functional for the intended consumer, marketable, producible, and lucrative are referred to as product development. 

A design team helps in the product development process to generate the next product in a company's product range. 

The developing methods remain the same, but new risks and uncertainties are introduced because it‘s the first time. 

What all you need to know

Decoding product development 

The manufacturing team is also kept in sync. In a broad sense, product development can be defined as the process of establishing seasonal goals, conceptualizing, producing, conducting market and trend research, introducing and delivering new products and services to consumers (new product development), or improving on the existing, developing product styles through the technical design process, creating samples of the products to finalize product styles with standards, selling the product line, and showcasing the product line. 

Functions like material requirement planning, inventory control, production planning and scheduling, quality control, logistics, and finance are all a part of this process.

The Importance of Product Development in the Apparel Industry

In any industry, the ability to adapt to changing times is crucial for survival, and product development plays a pivotal role in this process. 

The apparel industry is no exception, where the product development section serves as a vital gateway for potential buyers, offering them valuable information regarding pricing, sampling, and collection details. 

However, it is worth noting that the product development process within the apparel industry is intricate and time-consuming, requiring careful attention to detail.

Customer Satisfaction and Minimizing Returns

The primary objective of the product development process in apparel is twofold: to ensure customer satisfaction and to minimize the likelihood of returns. As competition within the industry grows fiercer, there is a heightened emphasis on implementing effective measures to monitor and manage product development. 

By doing so, industry players strive to stay ahead in the market, consistently delivering high-quality products that meet the ever-evolving demands and preferences of customers. 

This strategic focus on product development is instrumental in cultivating customer loyalty and maintaining a competitive edge within the dynamic landscape of the apparel industry.

Adapting to Change and Ensuring Longevity

Additionally, product creation offers a novel user experience, meets needs, offers answers to issues, expands a company's client base and market share, and increases sales and profits. Although many firms and companies historically kept product development (PD) and production in-house, today's approach is much more decentralized. 

The propensity to divide up the PD and production processes among many nations is a result of the globalization of the clothing industry. People in various locations all over the world are now able to seamlessly integrate, cooperate, interact, and manage the product development process thanks to the quick development of PD technologies and communication technologies. 

It is also clear that to allow retailers and brands to choose designs without investing time and resources in product development, apparel contractors, subcontractors, and specialty contractors have established design and development units within their organizations.

Underlying objective

As was mentioned before, the major goal of the product development process is to ensure customer happiness and reduce customer returns. The garment sector has focused more on procedures to oversee the product development process as a result of rising competition. 

These metrics can be applied to adopt best practices or benchmark against competitors. In terms of pricing, sampling, and information gathering, the product development division in the apparel business serves as a gateway for new customers. 

Nuances

In the garment sector, product creation is an extremely difficult and drawn-out process. In this article, I've tried to explain every step in detail. We will now talk about the functions that must be performed from the designer's notion or the basic design concept to prepare the product for final production.

Knowing the business mode and whether the product is an original design or a copy is crucial when designing products so that the functions in these stages can be suited to the business model's specific product situation. 

Breakdown

For this article, I will break down these strategies and processes into the fundamental steps that are necessary for the realization and success of any product development endeavor within the industry under consideration. 

Product development strategies and processes for the apparel industries vary as widely as the number of companies in this field, as well as the complexities and simplicities; values and visions; market share, and penetration of each company. 

In the garment sector, the following are the steps involved in product development: The merchandisers must classify various product styles and their specifics to organize the information provided in the specification sheet (tech pack) in a single format after receiving it. 

For the junior merchandiser to help the sample coordinators prepare the development samples from the sampling department, the merchandiser should give the junior merchandiser proper instructions on the product style.

Collaborative approach

The process of developing a product is a collaborative effort between many participants from many divisions in a clothing company. Planning a line of items for a specific season or period is the first phase in this process, based on the company's selling seasons or selling practices. 

The design, merchandising, research, and development (R&D) and/or raw material development, technical design or product engineering, sales and marketing, finance, graphic design, sourcing, operations, planning, and quality assurance teams typically make up the PD team. 

The PD team develops a plan for the new line using data from research on trends, colors, materials, past successes or failures, past sales records, experience from previous lines, mark-down reports, etc. 

The data gathered from this endeavor will help the designers and the PD team create a strategy for the new line with a favorable (brand) image to sway the market niche that the business is trying to sell to.

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Evolving Role: Fashion Designer’s Impact

10 June 2023, Mumbai

The Indian fashion sector, one of the fastest-growing in the world, is becoming more and more well-known throughout the world for its innovation, diversity, and sustainability as “Sustainable Fashion Initiatives Gain Momentum Worldwide”.

What all you need to know

Choosing a designer with originality as suitable clothing and the ability to produce something out of the ordinary is crucial for a fantastic start and maintaining dominance in the fashion industry.

Fashion Designers: Influencing Style Choices and Empowering Society

Fashion designers hold a remarkable sway over society, wielding the power to shape people's preferences and choices in clothing. 

Their ultimate goal is to inspire and captivate their target audience, enticing them to purchase their creations. One of the most prominent platforms for showcasing their creative skills and talent is through captivating fashion shows, where designers can exhibit a diverse range of meticulously designed garments. 

These shows not only expose the individual talents of designers but also provide them with a valuable opportunity to promote their unique creations.

Manifestation of yourself

Fashion serves as a means of expression, allowing both the designer and the wearer to communicate their personal style and aesthetic preferences. It fosters a sense of community among individuals who share similar fashion sensibilities, facilitating connections and bonds. 

The widespread influence of fashion is further amplified by the print and electronic media, which regularly feature the fashion choices and statements of celebrities, helping disseminate trends to a wider audience.

Evolving landscape

The ever-changing landscape of fashion trends creates a dynamic and competitive environment that inspires the upcoming generation of fashion designers and industry professionals to push their creative boundaries and strive for innovative designs. 

This, in turn, generates numerous employment opportunities for aspiring fashion students and enthusiasts.

Timeless heritage

Fashion has a rich history that spans centuries. From the earliest days of human civilization, when people adorned themselves with clothing made from plants, animal skins, and bone, to the emergence of distinct fashion houses in the mid-19th century, the evolution of fashion has been a fascinating journey. Charles Frederick Worth, often regarded as the world's first fashion designer (1826-1895), established a fashion house in Paris and pioneered the tradition of advising customers on suitable clothing choices.

Unfolding

While fashion gained mainstream recognition in the 16th century, significant changes and advancements truly emerged in the 20th century, transforming it into the influential force it is today. 

The evolution of fashion continues to shape our society, reflecting the ever-changing dynamics of culture, art, and self-expression.

Bullish outlook

Research claims that by 2025, the Indian fashion sector will have grown at a compound annual growth rate (CAGR) of 11–12% and will be worth between $115–125 billion. 

Evolving sector; However, the industry is confronting both possibilities and problems as a result of rising competitiveness, shifting consumer tastes, and technological changes. 

Observation

We will examine the trends, obstacles, and possibilities facing the Indian fashion business over the next two years in this post. 

Sustainability has emerged as a major fashion trend as a result of the increased awareness of social and environmental issues. 

Green is the colour to go

Eco-friendly and ethical practices are being adopted by Indian fashion firms more frequently in their supply chain, manufacturing, and marketing. 

For instance, many firms are supporting fair employment practices, minimizing waste and carbon footprint, and employing organic and recycled materials. 

Demand for sustainable clothes is anticipated to increase as consumers become more aware of their environmental impact.

Catalyst 

The Covid-19 epidemic has sped up the fashion industry's transition to digitalization. 

With the creation of e-commerce platforms, many Indian fashion firms are now concentrating on increasing their online presence. 

There are many online firms nowadays that use social media for interaction and promotion. 

More firms are anticipated to invest in e-commerce, virtual try-on, augmented reality, and artificial intelligence technology during the next two years, continuing the trend of digitization. 

Style statement 

This style is also gaining traction in the Indian fashion industry. In their designs, advertising campaigns, and communications, brands are now embracing diversity and inclusivity. 

For instance, several companies are developing collections specifically for plus-size, transgender, and disabled customers, defying conventional notions of beauty. 

This trend is anticipated to gain significance as customers want greater diversity and representation.

Challenges faced in the industry

Due to the entry of domestic and foreign businesses, the Indian fashion industry is getting more crowded and competitive. 

Consumers now have more options than ever because of the growth of e-commerce and globalization, which makes it challenging for brands to stand out. Indian fashion firms must set themselves apart through innovation, quality, and the consumer experience if they want to stay competitive. 

Supply chain disruptions

Disruptions to the supply chain, the Covid-19 pandemic has shown weaknesses in the worldwide supply chain of the apparel industry. Due to the lockdowns and travel restrictions, several Indian fashion firms had difficulty locating raw materials, making their products, and managing their logistics. 

Resilience in the supply chain; To handle the uncertainties, brands must make sure their supply chain is resilient and flexible. Lack of skills: Despite the potential for expansion, there remains a skills shortage in the Indian fashion business. 

What's necessary

Many fashion graduates lack the practical expertise and commercial knowledge necessary to succeed in the cutthroat profession. 

Indian fashion firms must make investments in mentoring, developing talent, and working with educational institutions to close the gap.

Technology Reshaping Fashion: AI, Sustainability, and 3D Printing Revolutionize the Industry

Tech Collaboration: Fashion Meets Innovation

Tech companies like Google are spearheading transformative projects in the fashion industry. An example is the groundbreaking collaboration between Levi's and Google for the development of a smart jacket. 

Fashion designers now utilize cutting-edge tools such as machine learning and AI, enabling them to create new patterns and styles and ushering in a new era for the fashion world. Innovations like bioengineered textiles and microbial leather further push the boundaries of style and material.

The Role of AI: Data-Driven Customization and Sustainability

Artificial intelligence plays a pivotal role in fashion, allowing brands to analyze vast amounts of data and personalize services based on consumer preferences. 

AI also assists designers in predicting trends and reducing environmental impact during the production process, fostering sustainable practices.

Sustainability Takes Center Stage

Fashion industry leaders like Stella McCartney champion sustainable fashion, offering cruelty-free alternatives and lab-grown materials like silk. 

Adidas earlier collaborated with 'Parley for the Oceans' to create limited edition sneakers made from ocean-collected plastic, promoting a more sustainable approach.

Empowering Creativity with 3D Printing

 3D Printing Unleashes Creative Possibilities; 3D printing revolutionizes fashion by enabling designers to bring their wildest concepts to life. From high-end fashion to more accessible markets, 3D printing breaks design barriers, allowing the fusion of diverse materials into a single fabric. 

Customization is another significant trend, tailoring garments based on individual parameters such as size and height.

The Need for Education and Awareness

Embracing technology in fashion goes beyond its visible benefits. Continuous education, and updates on projects, collaborations, and plans are crucial to amplify the value of tech integration in the industry. Stay informed on the latest developments shaping the future of fashion.

Scope of growth and improvement

India's fashion industry has significant export potential thanks to its diverse culture, skilled labor, and rich history. The demand is increasing, and several Indian fashion businesses are already exporting their products to the US, Europe, and Asia. 

Indian legacy

In the international market, Indian businesses have a unique selling pitch due to the growing interest in ethical and sustainable fashion. Indian fashion manufacturers must prioritize quality, design, and innovation while adjusting to global standards and laws in order to maximize their export potential. 

E-commerce market expansion

The partnership between Tech Giants and the Fashion Industry Drives Innovation as ‘Artificial Intelligence Transforms Fashion Design and Consumer Experience’ & an anticipated scenario by 2024, the Indian e-commerce market is expected to develop at a CAGR of 20% and reach $99 billion. For Indian fashion brands, this offers a big chance to connect.

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Advanced traceability technology in the apparel industry

08 June 2023, Mumbai

The narrative of Track & Traceability; The apparel and footwear industry recognizes the importance of transparency and traceability in addressing key challenges such as value chain management, labor rights, counterfeits, and sustainability. However, many businesses still lack a comprehensive understanding of their extended value chain. 

What all you need to know

Addressing Sustainability in the Textile Industry

The importance of tracking and tracing in the end-of-life phase of product lifecycle management lies in reducing costs and environmental impacts throughout the manufacturing process. 

Traceability aims to integrate value chain partners, enabling transparent tracking and tracing of articles across the textile supply chain. 

Simply put, it allows for tracing the entire lifecycle of a product, from raw materials to end-consumers, including waste disposal and recycling. The Textile Tracer Assessment offers a comprehensive guide to physical tracer technologies applicable to the textile supply chain.

Consumer Demand for Supply Chain Transparency

To bridge this gap, a global initiative led by UNECE and UN/CEFACT has been launched, aiming to establish a policy platform, develop traceability standards, and provide implementation guidelines. From 2019 to 2022, the project focuses on capacity building and testing of deliverables, while UNECE's "The Sustainability Pledge" urges industry stakeholders to adopt measures that uphold environmental and ethical standards.

The Call for Change in Fashion

In the fast-paced fashion world, brands grapple with the task of producing large volumes of clothing without the certainty of sales. The ability to respond swiftly to consumer needs becomes a key determinant of success. 

Embracing the latest technologies is crucial for pushing the boundaries of production, marketing, manufacturing, and wearability. Notable technological advancements in the fashion industry include artificial intelligence (AI), mobile commerce, 3D printing, and blockchain.

Unlocking the Potential of Technology

AI plays a vital role in enhancing customer experiences, analyzing data, boosting sales, predicting trends, and offering inventory recommendations. 

In-store touchscreens and chatbots elevate customer service by providing personalized product suggestions. AI algorithms track customer journeys, matching them with suitable products. 

The potential of AI extends beyond customer service, with applications in supply chain management and trend forecasting proving highly profitable. 

Real-time inventory tracking saves time and streamlines warehouse operations, while the integration of AI's predictive data tools enables brands to access timely information for designing and producing the right styles and quantities.

Fair sex

STITCH FIX, a notable example, leverages automation and analytics to create virtual wardrobes for its female customers. By monitoring their purchases and preferences, the platform empowers women to create unique styles using their existing wardrobes and shop from a diverse array of stores.

Fashion Buyers Seek Greener Shopping

In summary, the garment and footwear industry is being shaped by the twin forces of transparency, traceability, and technological advancements. 

Achieving sustainable production and consumption patterns requires collaboration among all stakeholders, as well as the adoption of common strategies and reliable technical solutions. 

By embracing transparency, leveraging technological innovations, and prioritizing ethical and environmental considerations, the industry can navigate the ever-evolving global landscape and pave the way for a more responsible and prosperous future.

The Urgent Need for Traceability

Avery Dennison, a material science company, highlights the growing consumer demand for supply chain transparency in the fashion industry. Their survey, conducted in collaboration with GWI, reveals that over 5,000 fashion buyers across the US, UK, France, Germany, and China express a desire for a greener shopping experience. 

Consumers want to trace the journey of their purchased items throughout the supply chain, verifying their fashion circularity. To achieve this, digital labels can be attached to clothing, allowing consumers to access supply chain information and recycling instructions through an app.

Retailers who effectively communicate through smart labels can strengthen brand loyalty while actively supporting fashion circularity.

Datapoint

The survey indicates that globally, 62% of respondents expect brands and retailers to provide accessible end-of-life options for their products. Furthermore, 58% believe that fashion brands should assist consumers in repairing items, and 57% think brands should facilitate resale when customers no longer want to keep the products.

Fashion's Business Case for Traceability

Leveraging technology can bring added value to consumers, retailers, and brands, enabling them to embrace behaviors that promote circularity. 

Scaling up circular practices not only benefits the environment and reduces waste but also provides consumers with more product information and deeper engagement with brands. Unfortunately, a report by Planet Tracker reveals that only 11% of brands disclosed their raw materials suppliers in 2022, with an overall traceability score of just 19% in 2021. 

Planet Tracker collaborated with Segura, a digital supply chain company, to assess the financial risks and opportunities associated with supply chain traceability. Opportunities for mitigating impact include reducing air freight, consolidating suppliers, and minimizing production.

Planet Tracker's Report on Supply Chains

Planet Tracker's report, titled "Lifting the Rug," emphasizes the business case for supply chain traceability in the fashion industry, addressing environmental and human rights concerns. 

The nonprofit also assesses the financial risks of maintaining the status quo in the plastics sector, which is particularly relevant given upcoming legislation.

Among the 52 publicly listed retail companies analyzed by Planet Tracker, only 37% disclosed a supplier list, with just 21% publishing suppliers beyond Tier I. Noteworthy approaches to supply chain traceability from companies such as Patagonia and LVMH are documented in the report.

Update

The report showcases the level of transparency displayed by major apparel producers in disclosing their supply chains. 

By implementing industry-wide traceability, the researchers estimate that apparel companies can improve net profit by an average of 3% to 7%, based on Segura's retail return on investment calculations and Planet Tracker's textile data points, totaling over 14,000.

In terms of funding, apparel companies have invested less than $200 million in supply chain traceability technology over the past decade. This figure pales in comparison to the $3.5 billion raised in public and private capital for the secondhand clothing market since 2015.

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China’s Impact on Australia’s Apparel Imports

05 June  2023, Mumbai

Quick background; A significant portion of the transactions inked at the China Clothing Textile Accessories Expo 2022, which was held in Melbourne from Tuesday to Thursday, indicate that Chinese and Australian businesses perceive a better potential for collaboration in the primary sector of bilateral trade of textiles. 

What all you need to know

152 businesses participated in the three-day expo, which was co-hosted by the Jiangsu Department of Commerce and the China Chamber of Commerce for Import and Export of Textiles (CCCT). 

During the first two days of the event, up to 2,810 business people attended, the majority of them being Australian clients, according to CCCT. 

Business & economic ties

The event was declared successful by Cao Jiachang, the chairman of the CCCT, based on the feedback from exhibitors and the active engagement of the attendees of the expo.

Deals were closed during the event in large numbers, and more are anticipated. For instance, a company from Shaoxing, a center for the textile industry in East China's Zhejiang Province, signed contracts worth a combined total of roughly $6.5 million on the first day.

Ma Ying, general manager of the domestic textile and fashion company HBT Garment, was one of the event's busiest attendees. Ma discussed potential business transactions with Australian clients frequently, as she had in earlier meetings. Ma's partners have made up the majority of the clients throughout time.

Due to an outbreak, they were unable to meet for three years, but it did not prevent them from agreeing on orders, which, according to Ma, demonstrates the confidence Australian customers have in China's high-quality products.

Global supply chains 

Australians are becoming more familiar with Chinese textiles, not only because we are pioneers in the development and use of sustainable and recyclable fabrics, but also because of China's seamless supply chain and effective business practices, which are more competitive than those of many other nations, according to Ma. 

Following high-level conversations at the G20 Summit in Indonesia, tense bilateral relations will start to loosen up. 

Dialogue 

Regular high-level discussions between the two nations have resulted in a major improvement over the impasse that has existed since 2019, according to experts. 

After reaching a low point, China-Australia relations are now steady and improving, which inspires tremendous confidence in the two nations' business and commercial communities, according to Cao. 

Reality check 

Australia is a net importer and consumer of goods that require a lot of labor because of its enormous landmass and small population. 

For instance, Australia imports apparel and textiles worth more than $10 billion annually. 

China is the greatest source, making up around 60% of the total, much exceeding its share of the global market by value, which is 38%, according to Cao. 

Trade dynamics 

Despite the epidemic, the trend remained relatively unchanged. Australia imported clothing and textiles worth $6.82 billion from China in 2021, a 13.3 percent rise from the previous year.

Australia imported $6.02 billion worth of goods from China in the first three quarters of the year 2022, up around 22% over the same period last year. According to Cao, this year's imports are predicted to be significantly higher than those of 2021. 

Construct

Wool and cotton, the primary raw materials for textiles and apparel, are two of Australia's largest exports, demonstrating the resource-based economy of both nations, according to Cao. 

Give & take

Always, breaking something is simpler than making it. 

Who will gain

Someone loss is someone gain; The Economic Cooperation and Trade Agreement between India and Australia came into effect on December 29, 2022. 

The two nations' business relations as well as the full range of goods and services are set to profit from this agreement, which is the first trade agreement between India and a developed nation in recent memory.

India-Australia trade can hit $50B in 5 years

Sam appreciated the Ministry for finalizing the Indo-UAE trade and Indo-Australian trade agreements within a short span of time. 

Such agreements reflect the trust created by India amongst various trade partners such as the UK, Canada, and other countries. The estimated bilateral trade of $50 billion between the two countries in five years would enable India to import high-quality cotton from Australia and export high-value-added textiles and clothing products to the country.

Kickers 

He also appreciated allowing duty-free import of around three lakh bales having staple lengths 28 mm and above from Australia under the ECTA. 

Earlier, an industry delegation comprising Members of the National Committee on Textiles and Clothing (NCTC) had requested the textile ministry to allow duty-free cotton imports to enhance cotton textile export to $16.963 billion and total textiles and clothing exports by 6 percent to $47.029 billion during the financial year 2022-23.

However, significant progress can be made rapidly as long as both parties/Australia-China are sincerely eager to mend the relationship, according to Chen as after all there are no permanent friends or foes in business and trade.

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E-commerce for everyone: Democratization

10 June 2023, Mumbai

It is hardly surprising that e-commerce companies are currently more successful in India than ever. E-commerce firms are more popular with consumers than ever thanks to the widespread adoption of internet connectivity, the Covid-19 effect, and simple delivery methods. 

What all you need to know

India's Economic Growth and Youthful Population Drive Expenditure and Shopping Evolution

India, the world's sixth-largest economy, is set to witness a remarkable surge in consumer expenditure, projected to reach $3.6 trillion by next year, fueled by the country's youngest population. As per the India Brand Equity Foundation, this surge is attributed to the transformative impact of emerging technologies on shopping experiences.

Ever evolving sector

Studies predict that by 2030, the Indian e-commerce business would be worth more than $350 billion. Key companies in the e-commerce business must improve the shopping experience and alter consumer behavior in order to support this hyper-growth and demand for online shopping.  

For the same reason, a large number of e-commerce facilitators and players have been making numerous efforts to democratize the entire online purchasing experience. So what do these steps entail? Let's examine those in more detail. 

Enhancing Checkout Experience

Improving the checkout experience is one of the key actions that e-commerce players have made to democratize the purchasing experience.  Even though the e-commerce sector is booming, we cannot deny that India is extremely close to experiencing a cart abandonment problem. 

According to studies, it may go as high as 70% in some circumstances. A large portion of cart abandonments is attributed to issues with the checkout process, such as having to fill out information repeatedly, lengthy load times, needing to open numerous tabs on a phone to complete purchases, and so on. 

Shorter Lead Times and Adapting to Changing Trends

Shorter lead times are gaining significance as customers increasingly prioritize same-day product delivery. Companies like Kalpataru Retail are proactively studying and adapting to these shifting trends, advising marketers to align their strategies with the latest available technologies to remain competitive in the market.

Focussing on proper delivery services

Ensure prompt and quicker deliveries Due to the blatant delays in delivery, clients frequently choose to cancel their orders.  In Tier III and Tier IV cities, where delivery frequently takes longer than usual, this is fairly prevalent. 

However, e-commerce companies have recognized how a customer's whole purchasing experience is impacted by delayed deliveries and are working to address this issue as well.  The 10-minute delivery approach is merely one aspect of this; there is much more to it. 

The Transformation of Indian Retail

To increase consumer happiness and lessen the issue of return to the origin, brands are finding solutions for prompt deliveries and precise position tracking.  In order to accomplish this, technical and logistical capabilities are being integrated, which helps to democratize the purchasing process. 

Shaping the Future of Retail: Personalization, Convenience, Social Commerce, and AI Technology

In line with industry experts like Prasad Shejale, Founder and CEO of Logicserve Digital, four dominant trends are poised to revolutionize the retail landscape in 2020. These include personalization, ultra-convenience, social commerce through platforms like inspirational blogs and celebrity engagement posts, as well as the integration of AI and VR through smart mirrors.

Unified Commerce, API Integration, and Visual Search: The Changing Face of Traditional Retail

The traditional retail industry is on the cusp of a monumental transformation, with stores evolving to function more like websites, while e-commerce platforms strive to provide experiences akin to physical stores.

Additional trends set to reshape the industry include unified API-driven commerce architecture, the direct-to-consumer approach, and the integration of visual search technology.

Offering Comprehensive Support 

E-commerce brands can improve customer experience by providing support at every stage of the purchasing process. 

These processes, which include chat support, phone calls, and WhatsApp updates at every stage of the purchasing process, are reducing customer anxiety and improving the shopping experience.  

Not only this but it has also been ensured that this aid is offered in all languages to meet the various India's vernacular demands.  

Growing Worries about Privacy and Security in the Digital Era

As online shopping becomes more and more popular, worries about privacy and security in the digital era have also been growing. Customers worry about who will have access to their personal information and how far it will be transmitted when they shop online in this era of recurrent data breaches.  

Another step towards improving their experience is to comprehend these problems and provide a safe, secure, and open atmosphere for them to buy in. More than ever, many e-commerce companies are making this commitment. 

Disruptive Strategies for Market Relevance

Makani Creative emphasizes the importance of retailers adopting disruptive strategies to maintain relevance in the age of e-commerce. The listing of Big Bazaar on Amazon India, for instance, opens new avenues for retail marketers, enhancing shoppers' agility and efficiency while providing retail stores with broader horizons across the country. 

Unleashing the Power of E-commerce and Digital Innovation; Innovating retail experiences and embracing change are essential for retailers to thrive in a highly competitive market.

The Fashion Sector Drives India's E-commerce Boom, Led by Young Millennials

The fashion sector has experienced a significant surge in online shopping during the pandemic-induced lockdown.

The accessibility offered by e-commerce platforms has extended beyond metropolitan and Tier I cities, captivating consumer groups with purchasing power in Tier II and III cities. Reputable brands, such as Puma, H&M, Woodlands, Marks & Spencer, and Arvind Fashions, have witnessed substantial online sales percentages, indicating the dominant role of young millennials and Gen Z in shaping the industry's success.

The Rise of Online Fashion Marketplaces and Brand Strategies

Online fashion marketplaces, led by pioneers like Myntra, have gained immense popularity in India, aided by the widespread penetration of smartphones and the introduction of indigenous 5G networks. Platforms like Ajio and Cliq, backed by Reliance and Tata, respectively, have emerged as competitors, leveraging their vast brand portfolios and customizable shopping experiences. 

However, traditional department store chains are yet to experience comparable success, with online sales contributing only 6 to 10 percent of their revenue.

Projected Growth and India's Ascent as a Global E-commerce Powerhouse

A recent Bain & Co. report forecasts an annual growth rate of 25 to 30 percent in online shopping for India over the next five years. 

If these projections materialize, India is poised to surpass the United States as the world's second-largest online shopping market by 2024. 

With a current online shopper base of 180 to 190 million, expected to reach 400 to 450 million by 2027, valued at $150 billion, online shopping in India continues to witness unprecedented growth.

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Indian apparel brands’ global prospects

07 June  2023, Mumbai

Indian apparel brands are experiencing promising global prospects as the industry continues to thrive.

According to IMARC Group, the Indian textile and apparel market was valued at $133 billion in 2021, with a projected compound annual growth rate (CAGR) of 13.8 percent from 2021 to 2026. 

What all you need to know

This growth is fueled by various factors, including the increasing prevalence of high-speed internet, which has facilitated the rapid expansion of online retailing in India.

Growth levers

The industry's growth can also be attributed to shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience offered by online portals. These platforms provide a wide selection of products and multiple payment methods, enhancing the overall shopping experience for consumers. 

Rising competition

However, the apparel business has become more competitive over time, with rival brands emerging from neighboring countries such as Pakistan, China, Bangladesh, Korea, and Japan, which all have thriving apparel markets.

Snapshot

One notable Indian apparel brand making waves in the industry is Saundh India, founded in 2019 by Sarabjeet Saluja, also known as Sabby. Saundh India offers a range of clothing items, including tops, Kurtis, jackets, sewn and unstitched kurta sets, loungewear, scarves, and masks. 

With its headquarters in Surat, Saundh India initially established its presence in Mumbai and later expanded to Delhi, with ten independent stores in northern India. 

Sabby's inspiration for entering the industry came from observing his father's hard work in establishing Sahiba Limited, a well-known garment firm. However, he aimed to create something new that would benefit the larger community, leading to the launch of Saundh India with a budget of Rs 10 crore.

In the ever-evolving world of marketing, brands now prioritize providing a seamless customer experience across multiple channels. While traditional multi-channel marketing aimed to reach a wide audience, the focus has shifted towards quality over quantity in omnichannel approaches. 

Growing Role of Social Media

This strategy allows brands to dominate their marketing campaigns on platforms like Instagram and e-commerce websites. Marketers are now concentrating on fewer platforms but enhancing the user experience by providing scrollable content and quick access to information about their clothing. 

This approach has proven effective in the post-pandemic "back to work" period, where women's formal attire is in high demand. Brands showcase their office attire on social media accounts, giving viewers a glimpse of their offerings and creating a sense of connection with potential customers.

Influencers, particularly micro-influencers, play a crucial role in the success of apparel brands. 

Stickiness

Their relatability and ability to produce logical and resonant content have earned them a loyal following that values their fashion and lifestyle opinions. 

Brands recognize the significance of this relationship and seek to establish a genuine presence in the social media community where they can directly engage with their customers. 

Social media platforms facilitate this direct connection and enable brands to become more consumer-friendly while generating new product ideas.

Shifting lifestyle paradigm

The global prospects for Indian apparel brands are promising, driven by factors such as shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience of online shopping. Saundh India is an example of an Indian apparel brand that has capitalized on these opportunities. Additionally, brands are focusing on providing a seamless customer experience on select platforms, emphasizing quality over quantity. The influence of micro-influencers and the power of social media further contribute to the success of Indian apparel brands in the global market.

Reliance Retail's Fast Fashion Venture Aiming for Global Recognition

India's fast fashion market is rapidly growing, as evidenced by the immense success of international brands like Zara and H&M. Reliance Retail, internally nicknamed Regalia, is poised to challenge these brands and establish its presence in the global fast fashion scene.

The Market Potential and the Reliance Advantage

Fast fashion is the fastest-growing segment in India's apparel and lifestyle sector. While international brands enjoy an advantage in terms of cachet and prime retail locations in major cities, there is still room for more fashion brands to thrive. 

Reliance Retail, currently the largest fashion and lifestyle retailer in India with nearly 4,000 stores, aims to create a viable product-retail mix and tap into the aspirational desires of consumers to compete with international brands successfully.

Securing Space and Finalizing Positioning

Reliance Retail is actively working to make its mark in the fast fashion market. 

While the official name for the brand is yet to be announced, preparations are underway for its brick-and-mortar stores. Selected outlets in Mumbai's High Street Phoenix and Gurugram's Airia Mall are being finalized, with plans to launch in Delhi, Hyderabad, and Bengaluru as well. However, securing suitable retail spaces in popular shopping destinations has proven challenging due to high mall occupancy rates.

Targeting the Young Consumer Segment

The new brand from Reliance Retail is expected to have mid-premium pricing, catering to the young consumer segment. It will directly compete with Zudio, a partnership between Tata and Zara that has already been launched. 

Reliance Retail likely took inspiration from Zudio's success, prompting its entry into the fast fashion market. Given that the market value of textiles and apparel in India reached USD 80 billion in 2021, with an estimated growth of USD 190 billion by 2026, it is a logical move for the retail giant.

India's Rise as a Fast Fashion Focal Point

India's fast fashion industry has become increasingly important on the global stage. A growing middle class, a robust manufacturing sector, strong economic fundamentals, and a tech-savvy population make India a key market that international brands cannot ignore. 

As incomes rise, a new class of consumers known as "gold collar" workers is emerging. These well-paid professionals have the desire and meaning to invest in looking and feeling good, leading to an expansion in consumption.

In summary

Reliance Retail's fast fashion venture, internally known as Regalia, is poised to compete with international brands like Zara and H&M in India's growing fast fashion market. 

With its extensive retail network, strong market position, and the rise of India's "gold collar" workers, Reliance Retail is strategically positioned to make a significant impact and establish its brand globally.

India's apparel industry gains global prominence as brand credibility rises, solidifying its position on the international stage.

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Apparel Imports & Retail Sales: Q1 2023

03 June  2023, Mumbai

The renowned Indian consulting firm, Wazir Advisors, recently published a report examining apparel imports and retail sales in four major economies: the US, the EU, the UK, and Japan. 

What all you need to know

An overview

The report also shed light on India's performance as an exporter of readymade garments. Let's dive into the key findings. 

Declining Imports in the US and UK

The report highlighted a downward trend in readymade garment imports in the US and the UK, posing a challenge for manufacturing hubs worldwide. 

In the US, imports experienced a 19% decline in the first three months of 2023, while the UK saw a slightly lower decrease of 14%. 

Notably, the sharpest decline occurred in March 2023, with a 32% drop in the US and an 18% decrease in the UK. Conversely, the EU and Japan witnessed a marginal increase of 10% and 3% respectively in readymade garment imports during the same period. 

Changing Dynamics of Apparel Imports 

Global diary; Ongoing disputes between the US and China have contributed to the downward slide of the Chinese market share. 

In the first quarter of 2023, China's market share fell to 18% in the US and 17% in the UK. Bangladesh and India, on the other hand, gained 1% each in the US, while Italy made gains in the UK. 

It is evident that the UK has diversified its sourcing options, with other countries collectively improving by 10%, reaching a total market share of 47%. 

Japan imported 5% less from China, while Bangladesh made gains in both the EU and Japan. 

Indian Apparel Exports Take a Hit 

India's apparel export industry faced significant challenges, with exports in April 2023 estimated to fall to US$ 1.2 billion—a 25% decrease compared to April 2022. Year-to-date exports were also 13% lower than the previous year. 

Within India's export basket, the UAE's share declined by 6%, while France and the UK saw an increase of 1% each since 2021. 

Store and E-commerce Performance on Track 

Despite the challenges faced by the apparel industry, both physical stores and e-commerce platforms demonstrated resilience. 

In the US, physical store sales in April 2023 were estimated at $18.6 billion, a 4% increase compared to April 2022. 

Online sales of clothing and accessories in Q1 2023 registered a 2% growth compared to the same period in 2022. 

In the UK, apparel store sales in March 2023 amounted to £4.2 billion, representing an 11% increase from March 2022. 

Online sales of clothing in the UK also witnessed a positive growth of 13% in Q1 2023 compared to the previous year. 

Insights 

The Wazir Advisors report highlighted the varying performance of apparel imports and retail sales in key economies. 

While the US and the UK experienced declining imports, the EU and Japan witnessed modest growth. 

India faced challenges as an apparel exporter, but both physical stores and e-commerce platforms showcased encouraging performance. 

These insights provide valuable information for stakeholders in the global apparel industry.

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Western Wear Trend Sweeps India

09 June 2023, Mumbai

With more people having disposable cash and more women entering the job, the Western dress is gaining popularity and acceptance, according to Sharad Walia, Brand Director at Park Avenue. Fast fashion and globalization have increased people's awareness of fashion trends and styling. 

What all you need to know

Uptick in the growth story

The rise in the number of working women has also fueled the market for women's Western clothing. In India, the need for women's clothing is now developing at a CAGR of 10%, while the demand for Western women's clothing is growing at a CAGR of 17%. 

In India, the market for women's clothing accounts for 38% of the country's total garment production. 

It is anticipated to expand at a CAGR of 9.9 percent to reach Rs 2,86,456 crore (US $44 billion in 2026) from an estimated value of Rs 1,11,467 crore (US $17.5 billion in 2016). Women's clothing in India includes innerwear, western clothing, Indowestern clothing, and ethnic clothing.

Changing fashion landscape

With a share of 66 percent, ethnic wear is the single largest category in women's clothing. The saree has a market of Rs 37,837 crore and is arguably the most popular traditional Indian clothing for women when it comes to ethnic wear. 

By 2026, it is anticipated to expand at a CAGR of 5% and reach Rs 61,632 crore. The saree will continue to be the most popular category among senior and middle-aged women in urban and rural India, despite a market shift anticipated from saree to salwar kameez and western clothing in urban and semi-urban markets.

Titbits

The overall number of tops/shirts, bottoms/skirts, t-shirts, jeans, sportswear, and suits (only for the men's category) is referred to as the Western wear market. 

Approximately 93% of the market is made up of products for men. 

Snapshot

The market for men's Western clothing is currently dominated by the shirt and trouser categories, which account for 34 and 27 percent, respectively, of market growth over the next ten years. 

In comparison to all other men's western wear apparel categories, activewear is anticipated to increase at the highest rate, with a CAGR of 15% by 2028. Denim is predicted to increase at a CAGR of 13% from 2018 to 2028, making it the second industry to experience rapid growth.

The market scenario

In 2018, the market for women's Western clothing in India is anticipated to reach $9,882. Ethnic categories currently hold a higher stake in the Indian women's wear apparel market. With a combined weight of 56%, denim and shirts/tops are the highest contributing categories. 

By 2028, the denim and activewear industries are projected to expand at a CAGR of 14% each. 

In the upcoming years, the Indian Western wear market is anticipated to expand due to a variety of variables, including a rise in the number of working women, an increase in the urban population, and a younger generation. 

Prognosis

The growth of Western clothing will outpace that of ethnic clothing during the next ten years. Denim and sportswear are anticipated to show good growth by 2028 and to contribute significantly to the industry as a whole.

The urban landscape is changing

The number of people living in cities has increased in India. According to a survey that was just published, India is urbanizing quickly, with every sixth person worldwide doing so being an Indian. 

By FY 2020, it is predicted that 35 percent of Indians will reside in urban areas and generate between 70 and 75 percent of the country's GDP. 

Consumer demand for Western-style apparel has changed as a result of rising urbanization, propelling sector expansion. 

Never Underestimate the Power of a Woman

An increase in the proportion of women working: women's fashion, generally speaking, used to be restricted to ethnic clothing. 

The rise in the number of working women has created new market prospects for clothing companies that specialize in western and workwear for women. In India, there are now much more working women than there were ten years ago. 

Women are entering the workforce, which has changed their way of life. Due to their limited shopping time, they favor more casual, western apparel.

Growing young generation seeking Western clothes

Young job applicants in the future want to be able to wear anything they choose to work. They think that wearing informal attire will help them function more effectively. Therefore, more businesses are moving towards accepting casual clothing at work. 

The rise in acceptance has created new opportunities for firms that are introducing the concept of smart casuals, which are comfortable yet differ from traditional formal attire. 

Age dependency, or the proportion of the population that is dependent on the population that is of working age, has decreased. 

This has increased the family's overall income, which in turn has increased disposable income, improving the ability to buy clothing overall.

Change the gears

Denim is now seen as a versatile piece of clothing that may be worn for both informal and professional occasions. 

Due to its comfort and durability, denim has become fashionable and is appreciated everywhere. An international brand like Levi's and a homegrown brand like Spykar have both been selling more during the past few years in India.

Global view

A new report by Allied Market Research reveals the substantial growth potential of the global western wear market. Valued at $74.5 billion in 2020, the market is projected to expand at a CAGR of 5.37% and reach $136.9 billion by 2031. The formal wear segment is anticipated to grow at a CAGR of 4.8% in value throughout the forecast period.

APAC is in the sweet spot; The Asia-Pacific region is expected to exhibit the highest compound annual growth rate (CAGR) of 6.6% during the specified period, propelled by developing lifestyles and an increase in disposable income among consumers. 

Meanwhile, Europe, which currently holds a one-third share of the total Western wear market, is forecasted to maintain its position with a growth rate of 4.1% CAGR.

The report emphasizes the influence of rising disposable income and the proliferation of fashion e-commerce on the demand for Western wear clothing. The market is further boosted by the growing number of young consumers and their heightened fashion consciousness. 

Manufacturers are collaborating with packaging businesses to introduce innovative garment packaging solutions, such as biodegradable barrier trays, contributing to the overall market development.

The Rise of India

Western Wear Market Set for Rapid Growth, Fueled by Rising Disposable Income and Fashion Awareness.

People used to only retain a certain amount of clothing in their possession, but as buying power has increased, both the quantity of clothing owned and the amount of time spent wearing it have increased. 

Large fashion and textile businesses are drawn to India since it is one of the countries with the quickest growth rates and is predicted to continue growing at the same rate. 

The majority of people in the nation live in Tier II cities, which also have strong economies. Large fashion and apparel companies believe that Tier 2 cities have great potential. 

An expansion into Tier II cities in India was recently announced by the Swedish international clothing store H&M. 

Notably, India is expected to experience a remarkable CAGR of 8.0% in terms of value, indicating its substantial contribution to the global Western wear market. 

With the industry poised for significant expansion, stakeholders are leveraging these trends to seize lucrative opportunities in the evolving market landscape.

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Embracing Sustainability: Clothing Recycling Gains Momentum

06 June  2023, Mumbai

In today's world, sustainability has become more than just a buzzword—it's a necessity. With increasing awareness about the environmental challenges we face, the demand for clothing recycling is gaining momentum.

What all you need to know

The clothing recycling market, projected to reach a valuation of US$ 16 billion by 2032, is witnessing a surge in adoption, driven by the need to reduce our carbon footprint and embrace circularity.
Embracing Sustainability
As the circular movement expands to various industries, clothing waste has emerged as a top concern. The recycling of shirts and t-shirts is expected to witness a significant rise in the coming years.

Developed economies like the U.S., the U.K., and Europe have already established designated clothing recycle bins, making it easier for people to donate their unused clothes and contribute to sustainability.
Observation

While the fashion industry is often associated with clothing recycling, there are numerous other sectors, including automotive, home décor, construction, mining, and apparel, that offer promising opportunities for recycling players. The demand for clothing recycling remains strong, driven by the desire to conserve resources, contain costs, and meet sustainability goals.
Over the years, the adoption of textile recycling has steadily increased, fueled by campaigns promoting responsible resource usage, particularly for materials like cotton and wool.

As industries evolve and prioritize environmental conservation, the demand for recycled clothing continues to grow. The clothing recycling market has seen a remarkable improvement in its growth rate, with a projected CAGR of 10.7% from 2022 to 2032, up from 6.6% in the previous period.
Paradigm shift
In this changing landscape, several key trends are shaping the clothing recycling market. The focus on textile-to-textile recycling has gained traction, as the fashion industry embraces circularity and turns used clothes into raw materials for new textiles.
Manufacturers are also exploring recycled fibers beyond traditional clothing materials, utilizing fruit pulp, wood, and wool to develop sustainable textiles.
Reshaping the Industry
The healthcare industry is making significant strides in adopting sustainable fabrics, reducing their environmental impact and carbon emissions.
Technological advancements enable the conversion of waste materials, such as PET water bottles, into textiles, reducing water consumption and carbon footprints.
Moreover, the upcycling of scraps and rags into new fabrics is eliminating the need for new resources and contributing to a circular fashion economy.
Innovative Start-ups and Established Players Reshaping the Industry
Innovative start-ups are revolutionizing the clothing recycling market, offering creative solutions to address sustainability challenges. Companies like Mini Cycle, Air Robe, and Ecohike are leveraging technology and consumer demand to promote reuse and upcycling.

These start-ups are reshaping the way we view and interact with clothing, inspiring a more conscious and environmentally-friendly approach.
Key Trends in Clothing Recycling
Leading players in the clothing recycling market, such as Blue Jeans Go Green, Circulose, and Circ, are spearheading the movement towards circular fashion. They are developing innovative processes and collaborations to transform discarded garments into insulation, circular cellulose, and raw materials for textile production.
Shifting Towards Circular Fashion
Regionally, Europe leads the clothing recycling industry, driven by campaigns against waste incineration and depletion of natural resources.

The European Commission's Textile for Textile initiative and the development of sorting technologies have further strengthened the region's position.
North America and the Asia Pacific are also embracing clothing recycling, with companies and consumers recognizing the need for sustainable practices in the textile industry.
The Growing Momentum of Clothing Recycling
As the momentum for clothing recycling continues to grow, it presents a smart option for a more sustainable future. By embracing circular fashion and investing in innovative recycling processes, we can reduce waste, conserve resources, and build a more environmentally-friendly industry.
CREDITS: Future Market Insights report.

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