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Article 15-05-2023

GSP impact on apparel exports

5 May 2023, Mumbai

Impact on South Asia

Proposed reforms to the General System of Preferences (GSP) program threaten Southeast Asian countries such as Thailand, Indonesia, Cambodia, and the Philippines, which have been significant beneficiaries of the tariff reductions provided under the program.

What all you need to know

The GSP scheme, which has been inactive since the end of 2020, requires renewal and reauthorization by the US Congress. The latest revision introduces new eligibility criteria for tariff reductions, including considerations of human rights, environmental enforcement, poverty reduction, corruption, and women's empowerment.

Critics argue that the program should recognize the efforts made by beneficiary countries in addressing discrepancies in law. However, introducing too many eligibility requirements could render the GSP impractical and unenforceable, impacting low-income countries with limited government capacity.

The final decision on GSP renewal remains uncertain, and there are calls for balancing eligibility changes with expanded product coverage to aid compliance for Southeast Asian countries. Failure to renew the GSP could have disastrous consequences for industries in these countries.

Inside Indian story

Art of possible; The commodity market bubble has deflated due to monetary tightening and slowing growth in major economies like China, the European Union, and the United States. This, coupled with temporary export restrictions on key products, has adversely affected India's exports.

After experiencing robust growth of 20-25 percent in the first half of the year, India's merchandise exports slowed down in the third quarter and contracted significantly by 16.8 percent year on year in October.

Despite these challenges, India has the potential to increase its exports. Currently, India's share in the global export market is less than 2 percent, amounting to $421 billion out of a $22 trillion market. Even if global exports remain stagnant, India can enhance its export share by implementing several corrective measures.

The continuous rise in cotton and cotton yarn prices has been a major concern for the industry, affecting its cost competitiveness. The council has actively addressed this issue by explaining the factors and trends influencing cotton prices and submitting suggestions to stabilize yarn prices.

In response, the government temporarily removed the 10 percent import duty on cotton from April to September 2022 to enhance supply from countries like Australia, the US, and Africa and alleviate yarn prices until the next cotton harvest in October.

The Apparel Export Promotion Council (AEPC) has consistently raised concerns about the rising prices and advocated for export calibration to mitigate the impact. India is already losing ground to competitors like Bangladesh, which benefits from FTAs and GSP privileges in prominent export markets.

With Bangladesh surpassing India's garment exports by 2.9 times, AEPC emphasizes the need for action.

During a meeting chaired by the Minister of Commerce and Industry, Textiles, stakeholders in the cotton textile value chain discussed high raw material prices. AEPC's chairman highlighted the challenges posed by increased yarn prices and the industry's struggle to meet customer demands.

The Commerce Minister urged the textile industry to reduce cotton and yarn exports by 25% compared to the previous year. Furthermore, duty-free import of cotton was announced for a bill of lading dates up to September 30, 2022.

The Minister emphasized the importance of collaboration over competition and excessive profit-seeking, encouraging stakeholders to resolve the cotton and yarn price issue without relying on government intervention, which could have long-term consequences.

The establishment of the Cotton Council of India was also announced to address these concerns. The baggage of history; At the outset, it is goldilocks time for India as India is doing something right.

Impact on Bangladesh's garment industry

EuroCommerce, the European body representing retail and wholesale sectors, has raised concerns about the forthcoming European Union Generalised System of Preferences (GSP) scheme, stating that it does not favor Bangladesh.

The proposed safeguard measures in the new GSP could have severe implications for Bangladesh, which currently benefits from the "Everything but Arms" arrangement of GSP for least developed countries (LDCs).

As Bangladesh's per-capita income has reached $2,457, classifying it as a low-middle income country, the new GSP Regulation set to take effect in 2024 could remove the zero custom duty and most favored nation tariffs currently enjoyed by Bangladesh.

With 58% of the country's exports directed to the EU and UK markets, the potential exit of Bangladesh from the group of LDCs in 2024 poses significant challenges in terms of preferential market access. Upgrades in status could lead to average duties of 8.7% for exports, and 12% for readymade garments.

EuroCommerce has highlighted the detrimental impact of these proposed measures on Bangladesh's overall economy and has urged for negotiations on the new GSP regulation to mitigate potential job losses and ensure sustainable development in the sector.

To address these concerns, Bangladesh aims to qualify for the GSP+ scheme, which offers a special incentive arrangement for sustainable development and good governance. Qualification requires ratification of 27 international conventions and meeting vulnerability criteria set by the EU.

The government of Bangladesh, in collaboration with relevant stakeholders, has been actively working towards fulfilling these criteria and has developed an action plan shared with the European Union.

However, the pandemic has temporarily halted progress, and a tripartite committee has been established to address the issues, consisting of representatives from the government, entrepreneurs, and workers. The fact that over 50% of Bangladesh's exports go to the EU poses a significant roadblock, triggering the new GSP Regulations.

It is crucial for the EU lawmakers, EuroCommerce, and the Bangladesh government to engage in tripartite discussions and find a balanced solution that safeguards the well-established textile and readymade garment sector, which serves as the backbone of Bangladesh's export-based economy, without causing extensive damage to revenue and job generation.

GSP and Pakistan apparel exports

Role of FTAs & GSP; Pakistan benefits from a free trade agreement with the EU. Pakistan's textile sector has helped to foster positive relations with the EU. Pakistan is no longer subject to import duties from the European Union, and a bill passed in December 2013 gave it a Generalized Scheme of Preferences status (GSP Plus).

Pakistan's eligibility for the European Union's Generalised Scheme of Preferences Plus (GSP+) benefits beyond 2023 is being questioned. The GSP+ scheme, which provides duty-free access to most of Pakistan's goods in the EU in exchange for adherence to international standards, has not achieved its intended objectives, according to a report by Geo-Politik.

Despite experiencing significant growth in exports to the EU, Pakistan has been slow in implementing necessary reforms, particularly in areas such as human rights, labor rights, women's working conditions, and environmental protection. The report highlights the lack of improvement in the quality of life for workers, especially women, and criticizes the government's insufficient response to these issues.

The textile and apparel industry, which constitutes approximately 60% of Pakistan's exports, has played a significant role in the country's increased exports to the EU under the GSP+ scheme.

However, the report argues that the benefits of the scheme have not been adequately reciprocated with compliance with EU values and economic cooperation.

The EU now faces a decision on whether to continue the GSP+ scheme beyond 2023 or explore alternative approaches to promote adherence to international standards in Pakistan.

Srilanka & GSP factor

Recovering the GSP+ status in 2017 was a significant achievement for Sri Lanka, as it reinstated duty-free access to the EU market for a wide range of products, including textiles and fisheries. However, concerns have arisen once again regarding the potential loss of GSP+ concessions due to Sri Lanka's human rights obligations.

The apparel sector, a key contributor to Sri Lanka's export revenue, is particularly vulnerable to the outcome of GSP+ discussions. The EU is the second-largest market for Sri Lankan apparel, and any fallback from GSP+ to standard GSP would result in increased import tariffs, impacting the competitiveness of Sri Lankan apparel in the EU market.

Despite the importance of GSP+ concessions, it is interesting to note that only 49% of Sri Lanka's apparel exports have taken full advantage of these benefits since 2017. This can be attributed to the stringent rules of origin requirements imposed by the GSP+ scheme.

Duty-free access is granted only to apparel manufactured in Sri Lanka from the yarn stage, excluding garments made from imported fabric. However, fabrics produced in SAARC countries and the EU are exempt from this rule.

In conclusion, while the retention of GSP+ concessions is crucial for Sri Lanka's economic prospects, the low utilization rate suggests that the strict rules of origin requirements pose challenges for exporters.

Sri Lanka's ability to comply with human rights obligations and effectively leverage the GSP+ scheme will play a vital role in securing its continued access to the EU market under preferential terms.

Decoding GSP factor

The Generalized System of Preferences (GSP) is a significant U.S. trade preference program that offers opportunities for impoverished nations to foster economic growth and escape poverty through trade.

Established in 1974, GSP plays a crucial role in promoting sustainable development by eliminating duties on a wide range of products imported from 119 designated beneficiary countries and territories. By encouraging increased trade and diversification of exports,

GSP contributes to the economic expansion of developing nations. Furthermore, the program provides additional benefits for products originating from least-developed countries.

The comprehensive list of eligible products for duty-free treatment can be found in the GSP Guidebook, facilitating access to the U.S. market.

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Article 15-05-2023

Bangladesh's Apparel Industry: A Closer Look

13 May 2023, Mumbai

Bangladesh's garment industry is facing a challenging situation due to a significant decline in garment exports to major destinations, raising concerns about its future.

What all you need to know

The decline in exports to the United States and the European Union has prompted Faruque Hassan, the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), to urge the government to implement measures to address the crisis.

The devil lies in details

According to the BGMEA's report, there was a 12.65% year-on-year decline in garment exports to the US in terms of US dollars between November 2022 and April 2023, with a decline of approximately 25.95% in quantity.

Apparel exports to major markets such as the USA, Germany, and Canada have experienced negative growth during the January-March period of 2023.

In contrast, garment exports to the EU increased by 7.10% in terms of US dollars, but there was a decline of 4.12% in quantity. The increase in unit price can be attributed to the rising costs of raw materials and freight charges, leading to international retailers and brands adjusting their pricing strategies.

Bangladesh's RMG Transformation

In an eventful journey spanning more than 40 years, the RMG industry of Bangladesh has come across a good number of formidable challenges and risen to them, even becoming stronger with renewed vigour and zeal to move ahead.

Although they may not have physically visited Bangladesh, countless individuals have experienced the country's warmth through its production of world-class apparel.

Despite pandemic setbacks, Bangladesh is set to become a middle-income country, with the ready-made garment industry accounting for 84% of its exports.

The RMG sector's growth and modernization over the past decade have been remarkable, though global fashion sourcing shifts could affect Bangladesh's position in the industry supply chain.

Improved factory safety and value-chain responsibility have led to the sector's success, though challenges persist in maintaining its economic vibrancy.

Vision

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has unveiled its vision -- a vision for a sustainable future, a better future. BGMEA consistently maintained that “sustainability is a marathon, not a sprint”. The industry has made a silent revolution in green transformation.

“The BGMEA has announced its 'Vision 2030' committed to hitting USD 100 billion in apparel export which ambitiously is aiming to account for some 10 percent of the world's apparel market share and, stated confidently that the same is quite achievable by taking multi-stakeholders work coherently for a collective cause.”

BGMEA appeals

Faruque Hassan, President, of BGMEA has emphasized the need for more collaboration between industry and academia to support the development of the RMG industry.

Hassan called on the government to implement several measures to address the challenges, including reducing the source tax to 0.5%, lowering the corporate tax on subcontracting incomes to 12%, and withdrawing the 10% tax on cash incentives for export earnings.

Additionally, he urged the government to provide a special 10% stimulus for the export of garments made from manmade fibers (MMF) and emphasized the importance of diversifying the types of garment items exported.

Hassan also highlighted the high global demand for non-cotton items, as 75% of all garment items sold worldwide are made from non-cotton fibers. Encouraging investment in MMF-based garments could enable Bangladesh to capture a larger share of the global garment market.

BGMEA sees $5bn from recycled garments

The RMG industry of Bangladesh is increasing the capacity of renewable energy generation in the sector.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimated that exporting value-added garments made from recycled yarn could generate $5bn in revenue.

During a pre-budget discussion, the BGMEA suggested Bangladesh could become a hub for recycled garments and highlighted the export potential of recycled ready-made garments (RMG) products. BGMEA sought policy support from the government and suggested exempting local textile mills from the value-added tax on selling scraps to encourage investment in recycling.

BGMEA Urges VAT Waiver, Duty-Free Textile Waste Imports to Boost Recycled Fiber Production

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is urging the government to waive the 7.5% and 15% VAT imposed on locally recycled fiber to attract foreign investment in the industry. The BGMEA also calls for the establishment of an HS code and duty-free facilities for importing textile waste to meet demand from buyers.

As international consumers shift towards circular fashion and recycled products, the BGMEA believes it is crucial to focus on reusing post-industrial waste or jute cloth as raw materials to increase the use of recycled fiber in the industry and ensure access to the European market for apparel items made from recycled fibers.

Measures undertaken

On 21 December 2022, the National Board of Revenue (NBR) of the Government of Bangladesh issued a gazette that permits the import of yarns from India through four new land customs ports, namely Bhomra of Satkhira, Sonamasjid of Chapainawabganj, Darshana of Chuadanga, and Banglabandha of Panchagarh. Furthermore, the government has waived the restriction on partial/multiple shipments while importing raw materials through Benapole port.

The government is currently working to enhance the infrastructure and administrative capacity of all land customs ports, including building road and rail networks and warehousing capacity.

BGMEA seeks duty-free access for US cotton exports

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has once again requested duty-free access to cotton imported from the United States for the country's RMG exporters.

The move aims to reduce production costs, enhance competitiveness, and foster bilateral trade relations between the two countries.

While this appeal is a step towards strengthening the garment sector, Bangladesh must also address challenges such as worker safety, compliance with international labor standards, and diversification of its product range to move up the value chain.

The outcome of the BGMEA's appeal remains uncertain, but it signifies Bangladesh's efforts to strengthen its garment sector.

Snapshot

BGMEA analysis puts it like this, the top exportable apparel items of Bangladesh in 2022 were cotton t-shirts, men's or boys' cotton woven trousers, women's or girl’s cotton woven trousers, cotton jerseys & pullovers, MMF jerseys & pullovers, men's or boys cotton woven shirts, w/g cotton knitted trousers, men or boys synthetic woven trousers, men or boys cotton knitted shirts, and men or boys cotton knitted trouser.

True potential

The COVID-19 pandemic and shifting global markets have presented significant challenges to Bangladesh's garment industry, which is a key contributor to the country's economic success.

The sector has made great strides in improving conditions for its workers and achieving transparency in factory safety and value-chain responsibility since the tragic workplace disasters of 2012 and 2013.

However, the pandemic has slowed the industry's growth, and competition from other sourcing countries, particularly Vietnam, threatens Bangladesh's position in global supply chains.

To maintain its economic vibrancy, the sector must invest in innovation, upgrade its infrastructure, and diversify its offerings to include more sustainable and flexible options while continuing to prioritize worker welfare.

Despite facing increasing competition, Bangladesh's RMG sector remains attractive to global sourcing executives, but it must take transformative steps to capture its full potential and remain a leading garment exporter in the years ahead.

Bangladesh’s garment export to India will continue to grow, says Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Panorama

While the export growth for RMG in Bangladesh has shown positive year-over-year growth for July to March in FY2022-23, the recent decline in export earnings in March 2023 highlights the challenges posed by the global economic depression and rising inflation.

The garment industry is a crucial pillar of Bangladesh's economy, and the decline in exports has raised concerns about its future

The Bangladesh Garment Manufacturers and Exporter Association (BGMEA), in partnership with Bangladesh Apparel Exchange (BAE), organized the Week between 12th–18th November 2022 which included events such as Dhaka Apparel Summit.

However, by implementing measures to address the challenges and diversifying the types of garment items exported, Bangladesh can potentially capture a larger share of the global garment market and secure the industry's future.

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Article 13-05-2023

Denimwear market: An overview

10 May 2023, Mumbai

The jeanswear market is expected to experience substantial growth, with a projected value of USD 118.28 billion by 2030, up from USD 66.77 billion in 2021, representing a CAGR of 8.51% from 2023 to 2030.

This growth is attributed to several factors, including the popularity of jeans among younger consumers due to their comfort, durability, and versatility.

Genesis

Later developed in American mills, the latter was initially invented in England. The durable and rigid fabric known as denim is created from cotton or cotton blends using a two-toned weaving technique that produces a diagonal pattern from tightly packed fibers. The method described above, which places natural or white yarn in the weft (horizontal) position and dyed thread in the warp, gives jeans their distinctive blue appearance.

Story of cotton or a cotton blend

Clothing made of denim is often made of cotton or a cotton blend. Before being packed into bales, it is first gathered and sorted into fibers. Our denim fabric construction tutorial on Textile School explains that the fabric goes through a weaving process to create yarn dyed into indigo or other colors, depending on the design, to make a pair of jeans.

Sustainability angle

Water thirsty; As was previously said, cotton or cotton blends are used to create modern denim. So, since it's primarily made of natural fiber, how much influence may it have on the environment?

Despite being a raw material, cotton is a very thirsty crop and is not as sustainable as it may seem. A standard cotton pair of denim jeans can require more than 9,000 gallons of water to create, accounting for 69% of the water footprint of textile fiber manufacturing.

Manufacturers in developed economies are investing in creating the "perfect fit" jeans, which has driven product innovation in the market.

They are also incorporating synthetic fibers to offer stretchability, enhancing customer appeal. Moreover, rising living standards and increased consumer awareness of various jean styles, including boot cut, high rise, cropped, skinny, tapered, and regular fit, are contributing to market expansion.

A bird's eyeview

For decades, denim has been a staple in wardrobes around the world and an essential in the fashion industry. The global denim market is predicted to grow at a CAGR of over 6.5% between 2015 and 2020, increasing from $113 billion to $153 billion.

In India, the denim market is experiencing the fastest growth rate among apparel fabrics, with a consistent CAGR of 15% to 18% annually.

Due to high demand, the current installed capacity of nearly 1,200 million meters is expected to rise to 2,000 million meters in the next three to four years. India has a significant advantage in the global market, as it has access to all types of cotton and MMF fibers and attracts top global brands.

Industry experts predict that the denim share in international trade could achieve a CAGR of 10% over the next decade.

In terms of retail sales, the Indian denim wear market is forecasted to grow at a CAGR of 15% due to rising disposable incomes, a rapidly expanding retail sector, a westernization trend, a booming internet retailing sector, a young population with higher spending power, and a wide range of consumer segments that consider denim as comfortable and stylish attire of choice.

Potential unlimited

Despite robust growth in the industry in recent years, India's denim market has significant untapped potential. For most of the Indian youth, denim is not just casual wear but a fashion statement.

Nearly 85% of the market is dominated by men, with 10% contributed by the female segment and 5% by the kids segment.

The growth in the male segment of denim wear is quite significant, and it is no longer limited to urban centers but has gradually expanded to semi-urban and rural markets.

The increasing awareness of global fashion has led to the development of premium and super-premium categories of denim products with smaller base numbers. The Latin Americas and Asia are expected to lead the growth in the segment.

The demand for branded apparel is on the rise, propelling the growth of the jeans market. Additionally, the preference for sustainable denim clothing is increasing globally, presenting opportunities for jeanswear manufacturers to produce denim from recyclable materials, including plastic.

Changing paradigm

The market is witnessing a shift in consumer preferences towards distressed, cropped, and patched jeans, with trendy styles like cropped hems, boyfriend jeans, two-tone jeans, and skinny jeans gaining popularity, especially among the younger generation.

Decorative denim featuring patches, laces, and embroidery is also selling rapidly in the market.

The growing demand for fashionable apparel among the youth population is a key driver of market growth, with denim widely available in casual wear in a range of colors and shades.

Emerging E-commerce; The presence of apparel retail chains and the growth of e-commerce are expected to further boost market expansion. Changing lifestyles, coupled with rising disposable income, are fueling the demand for premium designer denim.

Furthermore, the demand for denim accessories such as bags and shoes is also increasing, creating additional growth opportunities for the jeanswear market.

Sum up

The jeanswear market is expected to experience significant growth in the coming years, driven by product innovation, changing consumer preferences, and the rise of sustainable fashion.

The market presents an array of opportunities for players to capitalize on, particularly in the areas of sustainability and fashion-forward designs.

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Article 10-05-2023

Indian Apparel industry today needs to go global

07 May 2023, Mumbai

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

What all you need to know

Snapshot

India seized the positive and healthy demand in domestic and international markets with only a little push amid the world economy's recovery.

The same is evident in the most recent statistics made public by prestigious textile and garment businesses and through official channels.

According to one industry report on the performance of the Indian textile and apparel industry (T&C) for the past several months, the growth narrative continues through the conclusion of FY '23 despite of cloudy global economic outlook.

Quick data points

According to the Ministry of Commerce and Industry, India's textile and garment sector (T&A) experienced the highest-ever export rise, 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.

Notably, the fourth quarter of 22/Q4FY23 proved to be a catalyst for expanding Indian Apparel/garment factories. They recorded US $ 4.81 billion in export revenues or an 18.11% Y-o-Y increase.

If the clothing and textile sectors (RTW) combine, the rise is considerably more significant due to the buoyant domestic demand for raw materials when the inflationary pressures have byfar eased and the supply side is broadly stabilized post-pandemic.

The global market scenario

Leading from the front, Indian public limited companies across the supply chain, including Siyaram Silk Mill, Gokaldas Exports, KPR Mill, and Welspun, as well as other public limited entities like PDS Ltd., Raymond, and Maral Overseas, including apparel groups such as KKCL, Cantabil Retail Ltd results showed optimism having demonstrated positive results in the recently ended Q4 of FY '23, as well as for the entire financial year.

Happy reporting; Additionally, some companies experienced phenomenal growth on the top and bottom lines.

The fascinating thing is that the apparel/clothing segment fared exceptionally well for a few vertically integrated corporations.

Exports perspective

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

Although for FY23 global outlook is not as promising given that the global demand environment continues to be challenging, the silver lining is China plus one/shifting global supply chains continues to be a fundamental tailwind for Indian Apparel exporters and strong backing of the domestic market provides a strong base case to the sector, so semblance is demand is holding out for the industry.

Tailwinds

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

The most recent quarters have seen strong results from various international brands and shops.

The National Retail Federation (NRF) recently stated that despite CPI/inflationary forces consumers spending hasn't dented as per its study conducted way back in April '22, exports also have not really got seriously impacted supporting the claim that the USA (given that it is biggest import destination exports market for Indian Apparel exporters) continues to experience better than expected strong demand.

Thus, despite higher prices, apparel/clothing retail sales in the US increased every month compared to March 22.

Other countries and their industry scenario

Similarly, Australian retail sales on February 22 again exceeded expectations. Comparing February to January, 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. Vertically integrated companies with access to the home and international markets also benefit from solid demand.

Cautious optimism

The same is confirmed by Arvind Ltd., which also notes that fabric and apparel volumes were high in both local and international markets.

Consider Raymond Ltd., which experienced its highest-ever revenue and profitability in its textile and clothing operations during Q4 of FY '22.

Bottomline

The importance of apparel in the quarter reached an all-time high, and the volume of fabric remained stable.

Even in the domestic retail sector, the apparel category continues to grow. Since the second half of CY '21, Indian fashion merchants have seen more substantial sales revenues, which has encouraged them to move through with stalled plans for store openings.

The domestic textile and garment industries have profited from this trend as they experience improved profit margins.

Winsome Lose Some; China plus one strategy China plus two strategies China's supply chain alternate plans All of the above led to several companies/supply chains re-aligning/recalibrating giving way to businesses having migrated their manufacturing plants from China to other credible sourcing hubs such as south Asia, Southeast Asia, Africa, and where not.

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Article 08-05-2023

Eco-Fashion Revolutionizing Apparel Industry

12 May 2023, Mumbai

Sustainability in the fashion sector has been a topic of concern for several decades now.

It all started when apparel companies began to introduce environmental practices into their businesses in the late 1980s. This was part of a more significant movement that aimed to create awareness about various environmental problems since the 1960s.

What all you need to know

Global events

The movement started gaining momentum as disastrous events in the textile and apparel industry impacted the world, consumers, and businesses alike, and contributed to the rise of sustainable fashion over the last 30 years. The catastrophic event in Dhaka’s Rana Plaza in 2013 was perhaps the watershed moment after which sustainability in fashion was no longer just on paper and in seminars.

Huge environmental impact

The fashion industry's environmental impact is enormous, as it is among the largest polluters globally. The industry is responsible for producing massive amounts of waste, and its production processes consume significant amounts of natural resources.

Furthermore, the use of unsustainable materials and poor working conditions in garment production has led to concerns about the ethical implications of fashion production.

Sustainability drives ethical consumerism

In recent years, there has been a growing trend towards sustainability and ethical consumption.

The evolved consumer of the 2020s is perhaps the most heightened in their consciousness of what climate change means and how the wasteful consumption culture is degrading the planet continuously with business models like fast fashion.

The indulgent ‘selfi-moments’ social influencers are no longer icons of style and trend as they are being edged out by social influencers who understand what environmental consciousness is and have changed the narrative to ‘less is more’.

Consumers' Dilemma

Consumers are becoming more aware of the impact of their purchasing decisions and are looking for sustainable and ethical options. From pre-loved fashion items going on sale to increasing the longevity of clothing and accessories, ethical consumption is gaining ground.

It is not only about wasteful consumption but also the use of material that does not deplete the Earth’s natural resources and the working and living conditions of people who produce textiles and garments.

Sustainability vs Convenience

According to Europe’s Institute of Entrepreneurship Development, 85 percent of consumers today are conscious of the effect their behavior has on the planet, and 34 percent are willing to spend more to support sustainable and ethical consumerism with their product choices.

The Horizon program run by the EU is about supporting young European entrepreneurs to build sustainability and ethical sourcing as one of their businesses’ key pillars.

However, consumers are facing a dilemma. The recession in several Western societies is making it difficult for them to make ethical choices as prices of necessities such as food and utilities continue to escalate.

A report published by Deloitte Netherlands in February 2023 titled ‘Conscious Consumerism’ analyzed the ground reality by interviewing over 2000 Dutch adults 18 years and above.

The most important finding was the dilemma between being an ethical consumer and surviving Europe’s worst recession in decades, wherein substantial lifestyle sacrifices were being made.

Is Fast fashion slowing down?

As the recession continues worldwide, particularly in the larger Western economies, it doesn't look like fast fashion will cease anytime soon.

However, as Gen Z is spearheading the conscious consumer movement and is willing to purchase pre-loved clothing, repair old ones, and most importantly read labels to understand the provenance of fashion items, the sector is already making massive changes through innovation, technology, and the digital world.

Being seen as a fashion brand that mirrors the consumers’ consciousness is going to make brands continue doing business rather than have short-term goals of making profits.

Balancing Style and Sustainability

Sustainable yet affordable; The fashion industry has to find a middle ground between being sustainable, ethical, and profitable. This can be achieved through innovations that focus on using sustainable materials, minimizing waste, and reducing environmental impacts, and creating transparent supply chains.

In addition, brands should focus on educating consumers about the impact of their choices and working towards making ethical and sustainable fashion more affordable.

The Hidden Environmental Costs of Fashion; The textile industry is the second greatest polluter of local freshwater in the world and is culpable for roughly one-fifth of all industrial water pollution.

The environmental price

The fast fashion industry is notorious for its negative impact on the environment and occupational hazards, from the production of synthetic fabrics to the cultivation of cotton. Synthetic fabrics require a significant amount of crude oil and emit harmful pollutants such as volatile organic compounds and acid gases.

On the other hand, cotton production has a substantial environmental footprint, driven by its subsidized low prices. In contrast, sustainable fashion aims to promote eco-friendly consumption, create thriving communities, and preserve natural resources.

Despite its growing popularity, critics question whether sustainable fashion is an oxymoron, given the perceived incompatibility of fashion and sustainability. However, sustainable fashion offers solutions to reduce the environmental impact of clothing manufacturing, improve working conditions, and support resource conservation.

The slow fashion movement is gradually gaining momentum, advocating for conscious and responsible consumer choices. According to a National Institute of Standards and Technology (NIST) textile workshop, clothing production has almost doubled since 2000, with nearly 50 billion items being discarded within a year of their creation.

The report also revealed that an article of clothing has been worn an average of seven times in the US before being thrown away. NIST links this surge to the rise of fast fashion, which offers trendy apparel at low prices by using inexpensive materials and shoddy construction.

Setting Green Goals for the Textile Sector

What augers well for global trade are developments in advanced markets like the EU aspiring/mandating for textile goods to be resilient, recyclable, safe, and made with consideration for both people and the environment by the year 2030 aiming to make growth sustainable, climate-neutral, and energy- and resource-efficient as a single biggest agenda separating 'Greenwashing from Genuine Sustainability' in Fashion.

Short point

Finding Fashion's Middle Ground; The evolution of sustainable fashion from environmental has to be well understood by manufacturers and the entire supply chains in the given eco-system as it's critical for brands to be cited for their customer centricity.

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Article 12-05-2023

Indian Textile Inc Q4FY23 Results Raise Alarms

10 May 2023, Mumbai

As businesses begin to release their financial information, a credit rating agency predicted on Thursday that India Inc. would likely report a halving of revenue growth in the fourth quarter of FY23.

According to Crisil's Market Intelligence and Analytics division, the revenue growth will drop to 10–12% from 22.8–% for last year's January–March period.

What all you need to know

Ground reality

Indian textile companies are facing a challenging environment due to multiple headwinds. The industry needs to focus on cost optimization and innovation to stay competitive.

Moreover, adopting digital technologies can help improve efficiency and agility in the supply chain, enabling companies to respond to market changes quickly. While government support is necessary, companies must also take proactive steps to navigate the current crisis.

How are the financials stacked up

According to the report, revenue is predicted to have increased by 19–21% for the entire fiscal year FY23, less than the above 27% growth seen in FY22. The operating margin is also predicted to have slowed by 3 percentage points.

The major causes of the substantial deceleration in topline growth for Q4FY23 were noted as the high base and the ongoing export challenges that have impacted volume growth, according to Crisil, which examined 300 businesses from 47 different industries to determine the expectations.

Snapshot

According to the report, sales from export-focused industries and commodities such as textiles, gems and jewelry, and information technology-enabled services decreased year over year.

Steel goods, which make up about 11% of the set's income, are predicted to have had a 7-9% year-over-year revenue decline during the March quarter as a result of the application of an export charge in May 2022 and a reduction in worldwide demand due to higher input costs.

Similarly, it stated that the aluminum industry should have seen a 17–19% decline in revenue due to weak global demand. Ankit Dani, the company's research director, stated that while the need for consumer necessities like pharmaceuticals and fast-moving consumer goods (FMCG) continued to expand, consumer discretionary products like airlines, hotels, media and entertainment, and retail were the main drivers of revenue growth.

Thesis

According to the CRISIL SME Tracker, the textile sector in India is expected to sustain the growth it experienced in Financial Year (FY) 2021-22 and recover from the lows it faced during the onset of the pandemic. This growth is due to an improvement in demand for textile products as economic recovery is felt internationally.

The Indian textile sector has also benefited from the US ban on China's Xinjiang cotton, and this trend is expected to continue in the medium term. However, the impact of the Russia-Ukraine crisis remains a concern and needs to be monitored.

In FY21, the cotton yarn market is expected to grow at an impressive rate of 38-42 percent, led by exports, which rapidly picked up from the second quarter. This market is anticipated to grow a further 8-12 percent year-on-year in the upcoming fiscal year due to sustained recovery in both domestic and export markets.

In contrast, Readymade garments (RMG) faced a decline in the previous financial year, but the projection for this year is a growth of 16-20 percent, with a further increase of 13-18 percent expected in FY23. The reopening of offices, commercial premises, and educational institutions is the key driver of this growth.

Furthermore, with the heightened focus on health and hygiene brought on by the pandemic, the home textiles segment is also expected to grow in the upcoming fiscal year.

Overall, the Indian textile sector's growth is driven by improving demand, increased exports, and a focus on health and hygiene, and this trend is expected to continue in the upcoming fiscal year. However, the Russia-Ukraine crisis's impact remains a concern that needs to be monitored closely.

Various important textile parks

The Mega Integrated Textile Region and Apparel (MITRA) Park scheme, valued at Rs. 4,445 crores (US$ 594.26 million), was approved by the government to establish seven integrated mega textile parks with cutting-edge infrastructure, shared utilities, and R&D labs over three years to give impetus to this sector performance.

Promotion agencies

Similar to Tiruppur, the Indian government plans to create 75 textile centers that will significantly enhance employment prospects, encourage the export of textile goods, and ensure the use of environmentally friendly technology.

In conjunction with handloom exporters and weavers, the Handloom Export Promotion Council (HEPC) participates in several international fairs and events to promote the export of handloom items worldwide in support of the National Handloom Development Programme (NHDP).

In addition, the Ministry of Textiles has been executing the National Handloom Development Programme (NHDP)'s Handloom Marketing Assistance (HMA) component all over India.

Through the organization of expos and events in domestic and international markets, HMA develops and promotes the marketing channel by giving handloom weavers and agencies a platform to sell their goods directly to consumers.

The recent trade pacts are also likely to give a fillip to Indian textile exports case in point are India-Australia & India-UAE anticipated to ramp up total textile exports considerably.

Bird's eye view

Textile exports have also been affected due to the ongoing pandemic. As per the latest data, India's textile and apparel exports declined by 20% to $27 billion in FY22, compared to $34 billion in FY19. The industry is urging the government to provide support and incentives to overcome the current crisis.

The Q4FY23 results of Indian textile companies have raised alarms as the industry faces multiple challenges. Rising input costs, supply chain disruptions, and sluggish demand have impacted the profitability of the sector. The Q4FY23 results indicate that Indian textile companies are grappling with margin pressures due to higher input costs and supply chain disruptions.

Cautious optimism; For the clothing and textile sectors (RTW) combine, the outlook is cautious given the buoyant domestic demand and moderating raw materials prices when the inflationary pressures have byfar eased and the supply side is broadly stabilized post-pandemic but the elephant in the room is the global challenging demand environment.

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Article 10-05-2023

Indian Textile Inc: A bird's eyeview

06 May 2023, Mumbai

The Indian textile sector is vital at every point along the value chain, from garments to home furnishings, from natural to synthetic fibers. It contributes 13% of exports and 6% of the country's GDP. The industry employs more people than any other after agriculture.

The performance of India's exports has fallen short of expectations after the gradual elimination of export limitations in 2005. Its percentage of world exports is currently about 5% and is one of the largest producers of cotton and jute in the world.

Bird's eye view

India's textile industry has a rich history dating back several centuries and spans from hand-spun and hand-woven textiles to sophisticated mills. The industry's strength lies in its diverse production base, including natural fibers like cotton, jute, silk, and wool, as well as synthetic fibers like polyester, viscose, nylon, and acrylic.

India, a key Textile & Apparel (T&A) production hub, benefits from lower labor costs and abundant raw material (cotton). However, regulatory ambiguity has limited the sector's growth and competitiveness globally, compared to Vietnam and Bangladesh.

These countries have industry-friendly measures that provide textile manufacturers with a cost advantage. As a result, Indian textile companies face challenges like rising debt, shrinking margins, and declining volumes. Despite this, some companies have managed to perform well. The emergence of the domestic apparel industry in the last 5-6 years has helped Indian T&A manufacturers, but there is still room for improvement to compete globally.

Growth prospects of the textile industry

In any scenario, attaining an export growth rate of 15% should be possible. Maintaining a 12% yearly growth rate in the domestic market should be fine. This suggests that the industry should reach a production level of US$ 350 billion by 2024–25 from the current status of roughly US$ 100 billion for the domestic market, assuming a 12% CAGR in domestic sales.

By 2024–25, India will be exporting over US$ 300 billion of textiles and apparel at a 20% CAGR. In contrast, at a lower 15% CAGR, the country would be exporting about US$ 185 billion of textiles and clothing.

India should therefore have a market share of 15% to 20% of the global textile and apparel trade, up from its current level of 5%, taking into account the targeted growth in exports.

During this time, India should also undergo a structural change to become a net exporter of completed goods. This would suggest that export growth rates for fiber and yarn should slow down while growth rates for clothes, home furnishings, technical textiles, and other completed goods should soar.

Creating value and employment within the nation would be maximized, and the Prime Minister's vision of "Make in India" would be realized. 180–200 billion dollars would be invested, and 35–40 million jobs would be produced.

A drawback in the worldwide market is that most manufacturing facilities have modest capacity and low manufacturing efficiency. It is necessary to promote quick expansion and modernization of existing enterprises with success potential to bring them on a level with their international rivals.

Zero defect zero effect manufacturing (ZED)

To realize the Prime Minister's vision of "Make in India" with "Zero Effect; Zero Defect" at each value chain level, attracting large-scale investment to production facilities of the highest caliber would also be necessary. Extensive manufacturing facilities with economies of scale can help India become more competitive globally. With the creation of 35 million new jobs, India will be able to realize its goal of increasing its share of global trade and eradicating poverty.

To enable the realization of the Vision, man-made fiber production would need to expand exceptionally quickly to reach several levels.

Panoramic view

India's textile industry was valued at USD 223 billion in 2021, up from USD 150 billion in the previous year. The industry is expected to reach USD 220 billion by 2026.

That's an interesting piece of information! India is one of the largest cotton producers in the world and cotton is an important crop for the country's economy. It's good to hear that cotton production in India is projected to increase in the future, driven by increasing demand from consumers.

The growth in India's textile and apparel exports is also significant, with a 41% increase YoY in FY22. This shows that the demand for Indian textiles and garments is strong globally. The fact that exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22 highlights the importance of cotton in India's textile and apparel industry.

Overall, these developments indicate a positive outlook for India's cotton industry and textile sector.

How do the finances look like

Investors need to find the sector to be sufficiently alluring. To reach a production capacity of roughly US$ 650 billion by 2024–2025, it needs to receive investments of US$ 180–US$ 200 billion. This is a significant obstacle. Investment returns must be sufficiently alluring to attract this level of investment. Assets must be sufficiently encouraged. The upkeep of a competitive exchange rate is the most vital prerequisite.

The most important conditions for attracting investments on the scale needed would be the ready availability of developed land with sufficient infrastructure, trained labor, and simple access to ports.

The best plan would be to build additional giant textile parks. It would be crucial and should be given utmost attention to reducing the cost of manufacturing and logistics. Attracting new entry through start-ups and FDI is essential and requires concentrated effort.

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Article 06-05-2023

Shift in Indian Apparel Consumer Behavior

11 May 2023, Mumbai

After the pandemic, at least 68 percent of Indians want to maintain healthy eating and living practices. More information and analysis should be provided regarding the availability of clean and green products in India.

In collaboration with Kadence International, OneGreen, one of Asia's largest online marketplaces for conscious, healthy, clean, and sustainable products, undertook a poll to gauge consumer attitudes towards conscious, eco-friendly products and healthy living.

What all you need to know

Since women are the primary decision-makers and are responsible for most lifestyle changes in Indian households, their influence on purchasing behavior has been discovered to be significant.

Green is the colour to go

Going green is the new black, and the statistics show how Indian customers move in that direction. While 6 out of 10 respondents claimed to base their purchasing decisions on their environmental impact, 8 out of 10 Indians reported a change in their purchasing behavior centered on their health and well-being.

Even in price-sensitive Tier I and II cities, almost 57% of consumers are willing to spend more on authentic green and healthy items.

In 2023, around 71 percent of respondents stated they planned to lead a greener lifestyle. According to the report, 8 out of 10 respondents now purchase high-quality goods, such as organic and secure products.

And seven out of ten survey participants purchase eco-friendly or sustainable goods out of concern for the environment.

Dynamic landscape

The Indian retail industry is undergoing a significant transformation from traditional structures to modern organized retailing, similar to global trends. Despite the slow start in organized retailing, India is predicted to lead the industry and secure the second position shortly.

Factors such as an increasing number of working women, rising disposable incomes, cheap credit availability, price differentiation, similar product quality, and the use of media for product positioning and sales have driven the dynamic Indian organized retail landscape.

Changing lifestyle

To leverage the benefits of this exponentially growing market, it is essential to study consumer behavior.

However, Indian literature is deficient in this regard. Retail offerings cater to changing lifestyles, fashion, and ever-changing consumer behavior, particularly in the apparel industry.

Understanding the factors that influence consumer buying behavior in the apparel segment of the Indian retail sector is crucial.

Pandemic impact

The pandemic has accelerated the growth of e-commerce across all industries, with consumers opting for online shopping for even their daily necessities to avoid public spaces. The new-age consumer is well-informed and aware of possible limitations in product availability and delivery delays.

Consequently, they tend to buy products in bulk, preparing for future needs while seeking bulk discounts for volume purchases.

Adaptability is the key

To capitalize on this trend, fashion and apparel brands need to understand their customers better and create bundles of fashion wear that consumers are more likely to put to use today.

Brands that can offer discounts on bulk purchases will be more likely to capture this market segment. By understanding customer preferences and behavior, brands can tailor their offerings to meet the evolving needs of the Indian retail market.

Consumer choices and their importance

Consumers in India change their clothing preferences frequently. The clothing choices firmly anchored in the vastness and complexity of Indian culture are now aligning with more sophisticated and globally in-vogue styles.

More variety and market sectors exist in modern Indian clothing than ever before.

Formal, semi-formal, casual, athletic, ethnic, seasonal, leisure, party clothes, and more categories are included. This change is the result of Indian consumers' extensive exposure.

With a median age of 27 years and the largest Generation Y population in the world, Indian consumers tend to be more experimental, inclusive, and tolerant of various social structures.

The reality of the day

Since they began earning money at a younger age, they are more time-poor, financially wealthy, and more likely to spend their money on better and more aspirational things.

Their clothing consumption also reflects these cultural, psychography, and conduct changes. Over the following ten years, India's economy is gauged to grow at a CAGR of 7 to 9%, resulting in higher per capita income.

Consumers will have more to spend and be more enthusiastic about buying clothing as wallet sizes grow.

By 2023, clothing spending per person will increase from INR 3,900 in 2018 to INR 6,400. It is anticipated that by 2023, total Indian garment consumption expenditures will increase to INR 9.35 lac crores.

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Article 11-05-2023

Indian Textile Inc: An overview

06 May 2023, Mumbai

What all you need to know

Bird's eye view

Growth prospects of the textile industry

India should therefore have a market share of 15% to 20% of the global textile and apparel trade, up from its current level of 5%, taking into account the targeted growth in exports.

Zero defect zero effect manufacturing (ZED)

To enable the realization of the Vision, man-made fiber production would need to expand exceptionally quickly to reach several levels.

Panoramic view

India's textile industry was valued at USD 223 billion in 2021, up from USD 150 billion in the previous year. The industry is expected to reach USD 220 billion by 2026.

Overall, these developments indicate a positive outlook for India's cotton industry and textile sector.

How do the finances look like

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Article 09-05-2023

Kids-wear Indian segment & rising aspirations

05 May 2023, Mumbai

Compared to the entire clothing market, the Indian kids' apparel segment experienced the most growth in 2021. To stay current with fashion trends, manufacturers utilize dazzling materials.

Neighborhoods and unorganized enterprises dominate India's demand for children's clothes. Organized players will be able to do so, giving them a solid foundation to grow their market share.

What all you need to know

The Indian market for children's clothes was worth INR 669.04 billion in FY 2017. According to a study by ReportsAndMarkets.com, the Indian kids' wear market was valued at $16.62 billion in 2020 and is projected to grow at a CAGR of 5.89% through 2026, reaching $22.53 billion by 2026, reaching a market size of USD 23.89 billion by 2028.

The increasing disposable income and changing lifestyles of people are driving the demand for kids' wear in India.

Common observations

The most common fabric used in kid's clothing is cotton. Approximately 86% of the clothing worn by children is made using it. Only a few domestic and foreign brands are active in India's emerging branded kid's apparel market.

By the end of 2022, major market participants for banded children's clothing, including businesses like Ruff Kids, Ruff Baby, Gini & Jony, ZAPP, Li'lTomatoes, and Weekender Kids, are anticipated to generate INR 10 Bn in sales.

India's Aspirational Society

Aspirational brands are desirable and bought as people's income increases. Although pricey, they are perceived as a status symbol, and companies often maintain the image by charging a premium and avoiding discounts.

India is emerging as a hub for kids' apparel and fashion retailers, with the boys-wear segment currently dominating the market share. However, the girls-wear segment is showing strong growth, with a shift in preferences toward contemporary and comfortable clothing.

The country's huge population of around 375 million individuals below the age of 15 years provides a substantial consumer base for the kid's apparel market. The increasing disposable incomes of Indian parents, particularly in urban areas, have led to a willingness to spend more on children's clothing.

A quick look

This growth is expected to be fueled by the rise in the number of nuclear families and the increasing number of dual-income households in the coming years. The market is segmented based on gender, category, season, sector, distribution channel, and competition.

Among these, the distribution channel is further divided into multi-brand retail outlets, online, exclusive stores, supermarkets, hypermarkets, and others. Multi-brand retail outlets held a 1/3rd share of the market in FY2020, and this trend is expected to continue until 2026.

Pack of aspirational brands

Gini & Jony, a leading and established kidswear brand in India, offers a wide range of quality and unisex apparel for children aged from 1 to 16 years old. The brand has a strong presence in the Indian market and its products are available on various online shopping websites such as Amazon, Myntra, and Ajio.

Cucumber, a well-known and reliable kidswear brand founded in 2001, caters to newborns, infants aged 1 to 2 years, and toddlers aged 3 to 5 years old. Its Cucufun sub-brand features products for children aged 3 to 16 years. The brand offers high-quality clothes made of chemical-free cotton and follows a stringent multi-level quality check process.

Although Cucumber stores are limited to Eastern India. Nauti Nati, an exclusive online store for kidswear in India, offers a wide variety of baby-friendly and high-quality apparel for girls and boys.

The collection includes everyday clothes, formal dresses, party wear, summer and winter dresses, jackets, skirts, jeans, and more. The brand also offers accessories such as hats, hairbands, sunglasses, and handbags.

Conscious, Sustainable Brands with Indian Inspiration

Some of the brands that need mention here having a strong eco-friendly positioning are Nigh Nigh, Masilo, Smartivity Labs, etc launched around kids' sustainability narrative in the 0-12 age group.

Desire for success

An aspirational brand is one that customers tend to buy as their income increases, considering it a symbol of wealth. Though the price may deter some potential buyers, these brands often maintain their status by charging a premium and refraining from offering discounts. Examples of aspirational brands are commonly found in various industries.

What do the store lines for the sector look like?

Both physical stores and online retailers saw an increase in sales of children's clothing from April 2021 till date as we write. Businesses including Arvind Fashions, Flipkart, Amazon, Madura Fashion & Lifestyle, Puma, and Myntra witnessed a sales volume boost due to improved customer sentiments.

Parents in both tier-I and tier-II cities purchased more children's clothing online between April and till date, as we publish due to the rapid rate at which children outgrow their clothing.

Late in July 2022, under strict regulatory guidelines, malls, and shopping centers were permitted to operate (in part). Despite this, sales on Flipkart, Amazon, and Myntra increased due to the rising demand for baby clothes.

This was due to the attractive offers and range of available possibilities. Children's clothes sales on Myntra soared three times before the lockout. Infant apparel was the most often used category of clothing.

Customers had higher average bills, with the majority prioritizing daily necessities and children's needs. Between April and Dec 2023, there was a high demand for summer clothing and baby walking shoes albeit in the last couple of months there is a cautious optimism as the world stares at recession/already part of the world is under recession presently.

Westernization peeking into the Indian cultures

One of the oldest and richest cultures in the world is Indian culture. However, rising westernization, nuclear families, and purchasing power positively impact consumers and the country's Kids Wear.

Nowadays, parents spend more money on their children and want them to wear the newest branded clothing. This trend is widespread in Tier I and II cities.

The growth of the Kid's Wear industry in the nation is also aided by expanding store space and online commerce. Due to television and internet advertisements, people are more aware of foreign companies today. As a result, they buy kids' clothes with the newest fashion trends and designs.

The growing fashion trends among children these days

Many brands, whether established or new, are attempting to market their kid's collections exclusively in the market after realizing that kids are receiving more exposure these days. By releasing various lines of childrenswear, brands are fostering distinctive client experiences.

They are entering the Indian kidswear market to establish and develop a new niche. Children today are more stylish and affluent thanks to our current culture and society. Kidswear buying today is actually on par with purchasing for young people. The latest children's fashion trends in the Indian market are luring their parents out to shop.

The expanding kidswear sector in India is mainly due to Bollywood children's fashion, another critical factor. Because people are interested in learning more about them, celebrities' children always receive the same attention and spotlight as their famous parents.

The paparazzi constantly pursue the small ones for exclusive photos of their attire.

People are usually curious to see what their favorite B-town kid is wearing, whether they are attending birthday parties, vacations, or even visits to relatives' homes. Taimur, Jeh of Saif Ali Khan, Kareen Kapoor Khan, Princess Inaaya of Soha Ali Khan, and Kunal Kemmu are just a few of the celebrity kids that people are interested in learning more about.

The fashion trends for kidswear have naturally adopted the looks and labels of Bollywood children.

Unfolding story

Organized retailers and foreign investors are targeting both parents and children with better visual merchandising, product assortment, and advertising strategies.

The Indian kids' apparel market presents numerous opportunities for entrepreneurs, investors, and business strategists, as the market continues to grow and evolve.

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Article 05-05-2023