03 January 2023, Mumbai

The winter wear market is estimated to be worth Rs. 13,920 crore (as of 2013), and by 2023, it is anticipated to expand by 9% to Rs. 32,000 crore. More information on the winter wear market is provided by Amit Gugnani, SVP - Fashion (Textile & Apparel), and Kanti Prakash Brahma, Principal Consultant, Fashion, Technopak. India's Textile and Apparel (T&A) industry is currently valued at US$ 99 billion and is anticipated to reach US$ 237 billion by 2023, representing a CAGR of 9%. India was the second-largest exporter of T&A after China, with T&A exports totaling $40 billion.

Market pie

The domestic T&A market in India is thought to be about US$ 59 billion, with textiles and apparel accounting for 31% and 69% of that total. Due to demand factors such rising income levels, accelerating urbanization, and increased purchasing power, the industry is anticipated to experience rapid growth. The domestic textile and clothing market is predicted to grow by 9% by 2023, reaching a value of US$ 142 billion, with textiles and apparel set to contribute US$ 101 billion and US$ 40 billion, respectively.

Trade dynamics

Menswear, womenswear, boyswear, and girlswear are the four main categories into which the Indian clothing market is divided. Menswear currently accounts for the highest share of the garment market, with a 43 percent share, closely followed by womenswear (37%), menswear (10%), and girlswear (9%). By 2023, it's anticipated that womenswear will surpass menswear in terms of size.

Seasonality

Consumers have developed a demand for seasonal apparel and event gowns as a result of ongoing lifestyle changes brought on by rising globalization, industrialization, and purchasing power. One of these seasonal categories, winter wear, had an estimated 2013 market value of Rs. 13,920 crore and is predicted to expand by 9% by 2023 to reach Rs. 32,000 crore.

The four winter months of October through January, when there are also many festivals and weddings, are typically the times when winter clothing sales are at their highest.

As a result, some holidays encourage increased shopping and bargains. As a result, the majority of brands offer their biggest discounts at this time: Diwali sales, Christmas and New Year's discounts, and end-of-season sales in January and February. Summer or general sale sales for the majority of brands equal their sales from the other eight months in these four.

Consumer preference and choice

With customers becoming more brand aware, they prefer to purchase branded winter clothing at the end-of-season sales, which typically offer steep discounts. Additionally, since the length of the season affects demand, manufacturers seek to sell off the season's inventory at a profit.

In order to draw in new customers who now buy non-branded winter clothing, players in the branded category typically aim to introduce new product lines for the next season.

Competitive landscape

Additionally, there is fierce competition among brands to attract a larger market share; as a result, they place a greater emphasis on cutting-edge and stylish products.

In addition, the unorganized sector is competing on price, which forces brands to focus on mid-premium product lines. In order to meet these challenges, gain an advantage over rival brands, and increase their market share within this expanding segment, brands must work on their strategies.

Latest Textile News

 28 December 2022, Mumbai

Indians are more fashion aware due to their country's expanding economy and rising purchasing power. India placed third on the list of the world's most brand-conscious nations, behind Greece and Hong Kong, according to a poll on luxury brands by The Nielsen Organization, a worldwide information, and media research company.

More than 35% of Indian respondents said they spend money on luxury brands. According to the survey, Gucci would be the most wanted brand for Indians if money weren't an issue, even though Calvin Klein was the most popular luxury brand, with over 34% of respondents having bought it at some time. Gucci, Diesel, Christian Dior, and DKNY are some of the other brands that Indian shoppers spend the most money on.

Market Structure in India of various brands

The nation is Gucci's third-largest market after China and Japan. Similarly, India ranks as the sixth-most significant market worldwide for Fendi, Diesel, and Calvin Klein. According to Vatsala Pant, associate director of client solutions at The Nielsen Company, consumers traveling abroad have generally helped raise awareness of designer labels.

The quantity of stores that these companies have recently established in the nation is evidenced enough of Indians' growing fashion sensibility. Over 40% of respondents said they also buy Indian designer brands, placing India among the top six markets for local brands. This demonstrates that the growing brand awareness among Indians is not limited to just foreign names.

Brand metrics in India

Indians are among the top eight nations who think designer goods are of higher quality than unbranded ones, the study showed, even though 73% of them still think designer labels are pricey.

About 26,312 internet users in 48 marketplaces across 48 countries in Europe, Asia Pacific, North America, and the Middle East were surveyed in November 2007. 500 Indians participated in the survey. The Nielsen Company Associate Director (Client Solutions) Vatsala Pant said in a statement: Foreign brands are synonymous with prestige.

Our poll indicates that 57% of Indians surveyed buy designer goods as a status signal. India is the leading country in the Asia Pacific for the Italian brand Gucci, with 41% of its population preferring to purchase its goods, followed by the Philippines (39%) and Indonesia (39%). According to the survey, the "most sought" brands for Indian customers are Gucci (41%), Calvin Klein (31%), Christian Dior (26%), Versace (25%), Diesel, and Giorgio Armani if money were no object.

Latest Textile News

02 January 2023, Mumbai

This sector is characterized by a worldwide supply chain that is highly interconnected. This is a brief overview of the textile industry's supply chain against the backdrop of evolving/ever-changing dynamic business environment in the wake of constant consumer demands, amid fierce competition aiming to reduce the adverse impacts of the manufacturing process of fashion, textile, and footwear industries on the planet.

Apparel/Clothing collections often fluctuate since their lifecycles are brief, and prominent seasonal peaks mark their commercialization.

Today, in a VUCA (volatility, uncertainty, complexity, and ambiguity) world where uncertainty is new certainty and when all supply chains are vulnerable to disruptions the textile value is no different.

Disruption in Textiles GSCs

What makes the sector concerned

How bad are things in this highly interconnected global world where everything affects everything?

One family one earth one future

'Supply Chain Geopolitical Risk' is the top risk GSCs are facing

GSCs are vulnerable to disruptions in response to black swan events like the pandemic.

What moves the needle Rising consumer demand for sustainable textiles.

Good actors and bad actors

A Sector notoriously infamous for polluting the planet needs to reduce the adverse impacts of its manufacturing process.

Apparel collections since their life cycles are brief, and prominent seasonal peaks mark their commercialization again resulting in a deep impact on the planet sending great consumer waste to landfills given that clothes are hard to recycle and are not biodegradable most of it.

Technology trends shaping the industry. The growing sectoral influence of blockchain technology is evident and palpable and, there is a case for its intervention even in the textiles/apparel supply chains.

Turn Around Time Vs. Lead Time

Emerging technologies such as Technological solutions ranging from biotech textiles to predictive analytics are supporting the case. GSCs are consciously putting efforts to make sector supply chains more resilient and reliant through what you call assiduous & unambiguous friend-shoring by tightening those ties/bonds to achieve favourable outcomes.

New Paradigm

Reducing the lead time and cost of the product is the SCM's (Supply Chain Management) primary goal driving change. The COVID-19 epidemic has thrown up many questions, forcing clothing and textile (C&T) firms to reconsider their current processes and make immediate adjustments to manage their future and, in a greater sense; Re-adjustments to manage future Insights indicate sector needs to reconsider/revisit the current processes as a re-imagination.

VOCAL For LOCAL Realignment of the supply chain will take some time. Dialing back; Businesses have been struggling with supply chain problems as economies recover from the Covid pandemic.

Times, when China is interested in moving manufacturing out of China on the back of fast aging population. Additionally, global players having a large sourcing base in China, are in a state looking at especially China Plus/China plus two/China alternate/Europe plus one strategy given that China being globally is numero uno among garment and textiles exporters and dominates the show & supply chain diversification plan, provides chances for Indian players.

In the meantime, insurgent firms are upending the accepted paradigms of fast fashion and garment selling in response to a global supply-chain shock.

Complicated supply chains

Contrary to value-added chains for food or construction materials, textiles, and clothing (T&A) have numerous process stages carried out by various subsequent industry units, and what further complicates the process is a more comprehensive range of fiber materials is used to create textile fabrics.

As we see resources getting more scarce and, the impending "Law of Inverse Consequences" of the US-China trade war has already made the situation unamenable upending the global textile economy turning the supply chain on its head.

De-risking global supply chains (GSCs)

The Economic Scars of impending global recession; Realignment of the supply chain will take some time.

Their common goal is to make the global supply chains of the textile industry sustainable. The principle guiding force for GSC rejigs/reinvigorating figuring out how to de-risk & build credible alternate GSCs of intermediate goods and services is quite a challenge in the anxious times we are living in.

The disruption in GSCs caused/upended by covid-19 adversity, followed by another demand and in some sense supply shock battering the global textiles and garment industry's (T&C) supply chains gasping for revival, throwing companies and other stakeholders in a tizzy.

The scope of technology

Blockchain and supply chain management; This tech cost is becoming more affordable and efficient making (GSCs) global supply chains more supporting businesses to help complete transactions directly and without involving third parties therefore, facilitating greater integration/interdisciplinary of financial and logistics services, thus resulting in an augmented data collaboration between multi-stakeholders as a holistic business approach.

Supply chain mapping technology, and work ethos filtering all the variables in pursuit of operational & manufacturing excellence.

Turning the situation on its head; The execution challenge starts when you let technology take over and expect action-oriented, scientifically underpinned, and transformational as one bit is that intrusion of tech intervention needs the business leaders to be on the top of the agenda and in a mindset to replace the human interface with technology in part or complete for the technology sound effects to play out in this diverse world.

Times when transparency, traceability, and sustainability are the key issues.

The growing sectoral influence of blockchain technology is evident and palpable and, there is a case for its intervention even in the apparel supply chains, the use of blockchain replaces the centralized conventional distribution system which may not be as great/robust with a decentralized immutable ledger which is so much easier integrating the supply chain stakeholders/actors that too all with the real-time information sounding music to ears as in nutshell it is a power of collaboration at play.

If you can’t measure you can’t improve

Strategies for mitigation; The Higg MSI is an invaluable tool for assessing the environmental impact of processes and materials utilized in the products empowering us to make more sustainable design choices. The Higg MSI measures environmental impact across five areas: global warming potential, pollution in water, chemistry, water scarcity, and fossil fuel depletion.

Advanced tools and resources, like the Higg MSI, align with the customers’ goals to design and produce sustainable apparel.

Way to go

Exploration towards a new agreement for responsible supply chains in the garments and textile sector. Realignment of the supply chain will take some time this being a legacy issue. The industry needs innovation in order to transition from linear to circular ways of working.

Dialing back to pre covid for textiles supply chains were fragile & fractured and COVID-19 only exposed it and exacerbated it.

Space to watch out; What is the need of the hour is the industry’s serious sustainability commitment including establishing Supply Chain Standards and Responsibility Code, adopting a Responsible Sourcing Policy, conducting sustainability assessments for strategic suppliers, and capacity building for strategic suppliers on GHG emissions accounting, among others.

As we move ahead the enterprise's success will depend on how well it checks the boxes right in this competitive landscape and no better place to invest.

Latest Textile Events

 30 December 2022, Mumbai

The COVID-19 epidemic presented the globe with a significant problem in 2020, and industries experienced their worst-ever conditions. With revenues and margins under pressure, almost every industry is still experiencing uncertainty. Demand for clothing has decreased as a result of unbalanced economic activities.

In 2020, the McKinsey Global Fashion Index anticipated two cases of recovery: Earlier Recovery, which stated that global fashion sales would decline by 0–5% in 2021 compared to 2019; and Later Recovery, which stated that the sector would return to the same levels of activity as it was in 2019.

The second, titled Later Recovery, predicts that fashion sales would return in the fourth quarter of 2023 after falling by 10 to 15% over the previous year compared to 2019.

How the pandemic shook the apparel industry Due to the pandemic's growing need for digital access to everything, businesses now have more opportunities for innovation, efficiency, and scaling up. Additionally, it has emphasized the necessity of switching to more ethical and responsible working practices.

In the upcoming years, digital platforms will be the key engine of growth as people continue to be wary of large-scale gatherings.

It is anticipated that both consumer demand and working practices would undergo significant and long-lasting changes among industry participants. Brands may face short-term difficulties such as shifting their attention to casualwear, continued pressure on luxury, shorter production cycles, and cash flow issues that will slow down investment.

The building craze for athleisure

Work-from-home (WFH), at-home workouts, and meditation have changed the norm and raised demand for already popular categories. Additionally, since a few months ago, individuals have become more committed to an active lifestyle, which has increased demand for activewear, loungewear, etc.

One out of every four #covid-19 postings, according to Heuritech's Instagram study, is about living a healthy lifestyle. Activewear actually demonstrates a surge among customers in general.

Leggings and cycling shorts are popular since they are hot fashion products at the moment. As customers focus more on sports activities, meditation, yoga, or simply lounging around, loungewear is on the rise. These items appear to be the hottest fashion trend right now.

Athleisure market size

The size of the worldwide athleisure market was estimated at USD 306.62 billion in 2021 and is projected to increase at a CAGR of 8.9% from 2022 to 2030. Over the projected period, it is expected that the young population of the nation will become more passionate about sports and outdoor recreational activities, which will raise demand for athleisure gear.

An important factor influencing this trend is an increase in consumer fitness and health consciousness, which is fueling the desire for stylish yet comfortable clothing. Furthermore, a few companies promote happy customers while focusing on particular athletic product categories. Additionally, many organisations provide consumers with specialized equipment that is best suited to certain client types as well as qualified assistance to assist them in making the right decisions.

Athleisure is now joining hands with sustainability, which is the latest fashion trend. According to Forbes, consumers continue to seek out and spend money on new products made of long-lasting, high-quality materials, and many companies are working to make the connection between fashionable and cutting-edge designs.

With a market share of more than 60.0% in 2021, mass athleisure dominated the industry. Athletic-casual attire is now accepted in a variety of social contexts.

These clothes are now deemed appropriate for the workplace and are made from sports-inspired materials like spandex, lycra, and other synthetic fibres. Around the world, more people are shopping online and buying items to pick up in person, and both trends are expected to continue.

The COVID-19 lockdowns have also increased the number of people making their first online garment purchases: as a result of the epidemic, 14% of Americans and 17% of Chinese consumers made their first online apparel purchases.

Latest Textile News

 27 December 2022, Mumbai

Many businesses are convinced that their ability to compete will suffer the more environmentally friendly they become. They think it will increase costs and not provide quick financial gains and render them uncompetitive, suppose you spend enough time talking to CEOs, especially those in the United States or Europe.

What increasingly raises concerns of several businesses is and more commonly you are likely to hear all of their worries: Compared to competitors in poorer nations that don't suffer the same challenges, making our operations unsustainable and our quest to generate "green products" put us at a clear disadvantage.

Customers won't pay extra for environmentally friendly items during a recession, suppliers can't give green inputs or transparency, and sustainable manufacturing will require new tools and procedures. Because of this, the majority of executives view the need for sustainability as a corporate social duty distinct from business goals.

Sustainability saving the world

Unsurprisingly, the war to save the world has escalated into a conflict between governments and businesses, businesses and consumer advocates, and occasionally governments and consumer activists. It is comparable to a three-legged race in which you advance with the first two untied legs but lag with the third knotted leg. More stringent regulation is one idea put forth by environmentalists and policy professionals. They contend that more than self-initiative is required. Another group proposes educating and mobilizing customers to pressure companies to adopt sustainable practices.

Although both law and education are essential, they might need help rapidly resolving the issue. Executives act as though they must decide between the financial expenses of developing sustainable products or processes and the advantages, which are primarily social. But it simply isn't the case. We have been researching 30 major firms' sustainability programs for a while.

Studies show that the organizational and technological improvements that benefit both the bottom line and the top line are found in plenty in sustainability. Because businesses utilize fewer inputs due to being green, costs are reduced. Additionally, the approach helps organizations launch new ventures or generates more income from improved products.

Since those are corporate innovation objectives, forward-thinking businesses today view sustainability as the next frontier in innovation. The pursuit of sustainability is already changing the competitive environment, which will require firms to alter their perspectives on goods, technologies, operations, and business models. Innovation is the key to success, especially during economic downturns. Sustainable enterprises will emerge from the current recession to challenge the status order, just as some internet companies survived the bust in 2000 to challenge established players.

Early adopters prioritizing sustainability will build skills that competitors find difficult to match. They will benefit from this competitive advantage because sustainability will always be a key component of growth.

Evolution of the fashion industry with sustainability

Fast fashion also has a human cost, workers, primarily women in developing nations, are sometimes paid pitiful pay and made to work long hours in awful circumstances. These circumstances lead to violations of human rights in numerous locations.

Serious health issues are brought up by using chemicals in clothing production for customers and industry personnel. Pollution has other effects on health in addition to those already mentioned.

We must reconsider fast fashion in light of the industry's negative environmental and social impacts, highlighting the need for a sustainable business models and operations. The resources listed below provide additional details on the ecological effects of fashion and possible change approaches.

Latest Textile News

 31 December 2022, Mumbai

Clothing companies are suffering losses. As inflation is rising, industry leaders see higher-than-anticipated operational costs as having an impact on profits.

A challenging May earnings season throughout the industry has been followed by the reality of sustained inflation, a more vulnerable consumer, and the possibility of even more unstable economic conditions as the Federal Reserve works to control inflation. 1 Prices are increasing along the entire value chain, including for labor, commodities, and transportation.

For instance, inflation in the US reached 9.1 percent in July, marking the highest 12-month increase in more than 40 years.

In the past, the garment industry's price realization has fallen far short of inflation rates and increases in household income. For instance, between 2010 and 2019, US apparel prices increased at a CAGR of just 0.4 percent, trailing both the CPI overall and the median household income. Although the difference has lately closed, pricing increases in the United States still lag CPI growth by around 1%.

Inflation affecting the apparel business

Clothing/garment brands and stores are under pressure in this atmosphere. In addition to having to deal with growing prices for everything from freight and fuel to labor and manufacturing supplies, businesses also have to contend with a weakening economy and declining customer confidence.

In fact, from 44% in October 2021, the proportion of consumers who said they were optimistic in our May Consumer Pulse survey dropped to 38%.

The decline in consumer confidence was most pronounced among high-income consumers, and it also occurred in the eurozone throughout the latter half of 2021 and the first few months of 2022 as inflation accelerated. Consumers are now beginning to purchase in more value-conscious ways.

According to the Consumer Pulse study, US consumers switched brands and retailers more frequently in 2022 than at any other point since the pandemic started, and the majority of them indicate they plan to keep switching, mostly to find lower pricing. A little over one-third of those who switched decided to purchase private-label goods.

Challenges faced by clothing brands

Clothing/apparel brands and retailers may benefit from taking complete action on price, merchandising, and supply chains to deal with inflationary pressures and changing customer purchase behaviors.

Apparel/Clothing firms may need to tread carefully even as they try to safeguard their margins in order to avoid alienating clients who are already dealing with recent price rises.

In our poll, more than 75% of participants claimed to have seen price increases, notably in the clothing and fashion sectors. Some clothing firms might think about increasing ticket prices or cutting back on promotions as a way to pass along their costs to customers.

However, some have attempted to tolerate rising costs while holding the line on prices and promotions in order to gain or keep short-term market share due to the discretionary nature of the apparel business and the potential for lengthy production cycles.

In the meantime, insurgent firms are upending the accepted paradigms of fast fashion and garment selling in response to a global supply-chain shock.

Businesses like Shein are expanding quickly in order to control the Gen Z and masstige consumer bases. As a result, well-known companies and retailers may strike a compromise between the need to protect margins and control inflation without driving away their expanding core consumer segments.

Latest Textile News

 29 December 2022, Mumbai

Environment, Social, and Governance

The complex landscape of conflicting sustainability reporting frameworks and standards ESG; is a tripod of sustainability often referred to as the Triple Bottom Line. Companies must prioritize supply chain ESG concerns & actionable points for achieving sustainable goals.

The sector is reactive to growing regulatory compliance/government action as a push besides pull from conscious & evolving end-users.

Nuances

No brainer that the textile sector is tagged as one of the heaviest polluters to the environment and considering the climate change issue has gotten very high global attention at present; To cheer the 'Environmental Activists' The role of Environmental, Social, and Governance (ESG) factors has become increasingly important in the textile sector, as consumers demand more sustainable and ethical products.

Companies are now incorporating ESG principles into their core business strategies to enhance their credibility & reputation and gain an edge in the competitive landscape taking the leadership role. ESG factors such as reducing carbon emissions, using renewable energy, and promoting fair labor practices help to reduce the sector's negative impact on the environment and society.

Companies that adhere to high ESG standards are likely to attract more investment and gain consumer trust, leading to improved economic/financial performance. ESG considerations also play a considerable role in government policies and regulations worldwide, as countries/continents move towards more sustainable and responsible business practices.

The textile sector has a remarkable opportunity to lead the way in sustainable, ethical, fair, and responsible business practices, setting a positive/impactful example for other sectors to follow.

Outlining the developments in recent times, the sector has done well by making ESG a crucial consideration for the textile sector (T&C), offering benefits for businesses, the environment, and society, and given lenders/lending institutes are absolutely on top of the issue.

Textile Industry Outlook

Stepping back at the well-documented estimates of global textile market size which was projected at around $1000 billion in 2020, albeit it is sanguine to assume with the caveat that current global macroeconomic headwinds/geopolitics can always spoil the party; the same is likely to expand modestly at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028.

Reasons for concern

The social impact of ESG is that ESG today is constantly on the radar/carefully scrutinized to gauge its lasting social effect and footprints and, as per the trade estimates 'Fashion Industry' has a dubious distinction of contributing as much as 10% of humanity's carbon emissions & 20% of all water pollution through its production value chain.

Trade estimates are fashion sector will produce 26% of the world’s carbon footprint by 2050

Pockets of growth; As per the industry dashboard, the volume of apparel produced is poised to go all the way to a staggering 102 million tons in 2030 from 62 million tons clocked in 2015 necessitating the need for better governance/transparent company taking care of multi-stakeholders viz. health/human rights, safety, employee relations and labour standards and, that is the caution flag raised by the trade experts.

Bright spot

A case in point is trendsetter brands like Inditex fired up the space remarkably with something called "An ESG initiative of responsible sourcing" leading from the front pledging in the year 2019 indicating to use 100% recycled cotton and polyester and, 100% sustainable textiles before 2025 to prove a point.

Environmental Empathy

Environmental issues of concern such as greenhouse gas (GHG) emissions; waste management; climate change amongst other fringe components. Underlying organizational competencies, a rising consciousness, and regulatory overhang/ outreach are the name of the game. Companies must prioritize supply chain ESG concerns & actionable points for achieving sustainable goals.

An ESG Snapshot

Each sector needs a long-term ESG vision. The regulations through the years have elevated ESG requirements across industries/sectors.

Building blocks: Companies Are Increasingly Responding to Increasing Expectations Around ESG Becoming a Way Of Business Life Cycle (BLC). COVID-19 was only a fundamental tailwind that brought ESG to the center stage & accelerated its adoption.

Social Impact

Corporate ESG response is constantly on the radar/carefully scrutinized evaluating its lasting social effect and footprints. Environmental issues of concern such as greenhouse gas (GHG) emissions; waste management; climate change amongst other fringe components. Underlying organizational competencies, a rising consciousness, and regulatory overhang/ outreach is the name of the game. ‘S’ of ESG

The sustainability capability of textile and apparel (T&C) ESG innovation is central to solving the world’s sustainability conundrum and this consideration is reached an inflection point today.

The demand from the stakeholders puts them at the top of the agenda. ESG is receiving attention from younger customers focused on ethical buying.

Corporate stakeholders are currently emphasizing their commitments to ESG in the synergistic areas nudging business leaders to develop sustainability practices that benefit not just the bottom line but also have a more significant social impact.

Consider ESG accomplishments to be a crucial component of company performance intensifying, and integrating by aligning its goals of sustainable manufacturing and growth curve pivoted within their supply chains.

'S' in ESG

It is sanguine to maintain and argue global trade observers that total sustainable debt issuance reached a record high in 2021 and is set to keep sustainably growing in 2022/23 in the textile sector given its dubious image of polluting the planet.

ESG innovation in a sustainable supply chain management (SSCM) sticking to its principles leads to benefits not just to the bottom line but also has a significant social impact aligning businesses’ goals of sustainable manufacturing & growth curve pivoted within their supply chains.

‘G’ in ESG

G, governance, fundamentally is a framework of discipline built within the system of basic practices, controls, rejigging, and mechanisms/procedures businesses are ought to adopt for better governance aiming at making informed effective decisions, required adherence to the law of the land, and in the process meeting the expectations of multi-stakeholders involved in the eco-system.

Responsible sourcing and farming besides responsible manufacturing are essential components of ESG activities. The implementation of ESG in a company is an important consideration Businesses offering ESG more effectively are likely to perform better on traditional metrics.

Consumer-facing; To assess how processes and systems influence society and the environment at large. ESG is about ‘Good Governance’; Be a torchbearer by being a more transparent company with better governance.

Preface

Taking care of health/human rights, safety, employee relations, and labour standards type of issues in the supply chain of the communities they serve to involve the governance of firms and other investee entities. A legitimate yardstick to measure/assess companies, trusts, and entities on how well they fare on sustainability parameters.

The textile sector is one of the biggest polluters in this industrialized world producing a sizable amount of wastewater. Presents a significant chemical challenge to handle fabrics using several ecologically scarce, non-biodegradable substances.

Getting ESG right for the textile industry

Environmental issues of concern are greenhouse gas (GHG) emissions; waste management; climate change amongst other fringe components. The complex landscape of conflicting sustainability reporting frameworks and standards ESG; is a tripod of sustainability often referred to as the Triple Bottom Line.

Underlying organizational competencies, a rising consciousness, and regulatory overhang/ outreach are the name of the game Companies must prioritize supply chain ESG concerns & actionable points for achieving sustainable goals. Textile Industry Outlook ESG is more than ticking boxes.

The sector must protect customers' rights Concerns about exploitation & forced labor are rising. The risk of doing business with suppliers non-compliant with ESG frameworks is real Increasing pressure from NGOs, and regulations in the developed nations. Give manufacturers a sizable financial and physical duty for collecting and disposing of post-consumer trash

New Paradigm; Presently it is quite an accepted practice in business enterprises as an accretive dimension in their range of activities of aligning, integrating, and closely overseeing/monitoring these parameters of absolute importance such as giving manufacturers a sizable financial and physical duty for collecting and disposing of post-consumer trash.

ESG has a purpose

Businesses must commit to creating meaningful change.

As a larger purpose, responsible organisations are turning to ESG-friendly/generating positive effects for society. The business imperative for investors as the climate change/sustainable growth model clamour rises.

Supply chain managers are tasked with ensuring that suppliers/vendors adhere to ESG criteria. 

Given that the demand for greater ‘Transparency and Traceability’ continues to rise sanguinely, some trade studies estimate the global market for ESG ratings presently to be $200 million or thereabouts and optimistically is projected to go up to $500 million within the next five years or so.

SDGs & the climate action

Push for Sustainable Development Goals (SDGs) and the climate action movement gaining momentum. The sustainability framework is changing rapidly around the globe.

In India, ESG issues particularly given the clamour around climate change have become far more widespread as regulators are stepping up. Organizations are already implementing & complying with standards provided by the Global Reporting Initiative (GRI).

Organisations are trying to align with the Sustainability Accounting Standards Board (SASB), and with the UN's Sustainable Development Goals (SDGs). Sector commitment to the implementation of ESG and to support the achievement of the SDGs is only getting stronger.

Concerns around ESG

An overview; Investors focusing on responsible & sustainable investing ESG investing so far has got many takers in Europe thus far. It has also gained currency in the US and Asia is playing catch-up.

Asset managers start to take into account path-breaking sustainable ESG business solutions ideas. ESG business solution Investment exposure decisions critically look to decouple risks associated with ESG disputes and prospective claims. Challenges & threats

Need of the day; Make a business case underpinning Environmental, social, and governance (ESG). considerations Obtaining ESG metrics from supply chain partners and third parties to validate.

Unpredictability/precariousness around ESG is likely to impact the risk-return trade-off, social impact, and economic welfare and so are its natural outcomes. E&Y survey puts it; 74% of investors worldwide are more likely to divest from companies with poor ESG track records Distant regions where environmental and labor standards were previously less severely enforced are likely to be subject to increased scrutiny.

The ESG project provides an accurate and up-to-date map of the supply chains Mechanism to identify vendors and subcontractors for enabling the journey.

Regulatory compliance

Risk Premium/Disputes and prospective claims; It is a great yardstick to evaluate the robust health of any firm's/project's performance and risk evaluation overweighing it Vs. Conventional business metrics.

Sector investment outlook Given the challenging global business environment non-financial dimensions/criteria in harmonic sync/integration with criteria such as… environmental, social, ethical, and governance practices makes it business investment decision imperative both for lenders//VCs/investors/the stock market investors alike.

The Apparel Supply Chain Transparency Pledge, statute & transparency standards that may be met by businesses. The increasing investigation, auditing, and reporting around evaluating companies complying & putting in the required safeguards to achieve their ESG goals is the order of the day. ESG business solution investment exposure decisions critically look to decouple risks associated with ESG.

ESG compliance

What investors/stock market observers care for in any project/deal coming up for investing stares at the prominent concerns/important barriers of the evaluators. Green financing riding on ESG indicators such as green economic practices/clean energy drives future projects globally.

The asset pricing and portfolio implications and certain critical metrics around corporate. ESG profile Evaluating/mapping the effect/scrutiny of ESG performance on green innovation performance underpinning the health of any project/unit before any proposal/business.

BBVA in one of its trade reports on ESG mentions,", The new economic reality of the day is that up to 90% of investors will look into ESG regime compliance thus making informed decisions".

Businesses are contributing tangibly towards sustainable development, with sustainable framework/principles as their core DNA. Scrutinizing the impact of the unique ecosystem of ESG performance aligning with the intended R&D investment & day-to-day actionability across operations, processes, and practices.

Green innovation performance

As the cost of capital worldwide rises what is critical is; The scientific underpinning and validation of Green innovation performance evaluating sustainable returns as desired before drawing any conclusion. Factors like the number of green patents/green invention patents. The number of green non-invention patents possessed and subsequent work in progress.

ESG innovation leads to benefits not just to the bottom line but also has a significant social impact aligning businesses’ goals of sustainable manufacturing & growth curve pivoted within their supply chains.

Role of technology

AI & new-age technologies can help business stakeholders visualize their ESG data. Blockchain-based ESG reporting framework for accomplishing/facilitating the sustainability evaluation of any organization/listed company is a noble thought. Although, there are chinks such as inadequate levels of data authentication, consistency, and transparency, making ESG-based sustainability evaluation incomplete.

The emerging technologies are curated to support/facilitate the complex issue of raw data authentication to resolve this piece of a jigsaw puzzle. Need for standardization of ESG data collection and reporting.

Where is the action coming from

Fast Fashion & ESG; Fast fashion saw momentum is posed with greater scrutiny as lenders/investors and end-consumers in the ever-conscious globe weigh up the environmental cost of “disposable/use & throw” apparel.

The changing investor demands and consumer behaviour is driving a sustainable rise in the share of such clothes that ought to be manufactured in sustainable ways. Europe is setting the example by prioritizing a sustainable finance system at the top of its agenda.

With the EU Strategy for Sustainable and Circular Textiles, the Commission aims to ensure that by 2030, textile products have a longer life, recyclable wherever possible.

New York State earlier this year: The “Fashion Sustainability and Social Accountability Act”. The introduction of the "ESG index" in countries like Bangladesh which is trying & making green products for a while now. The extended Producer Responsibility (EPR) scheme launch is a right in the right direction.

Way forward

As there is a saying," We don't want the selective part of the world to be sustainable but overall world's selective part". Due to its longstanding reputation as a significant polluter, the textile sector is under pressure to become sustainable.

The textile sector should also concentrate on sustainability-related issues such as; Being a torchbearer by being a more transparent company with better governance. Protecting the environment and public health, workplace safety, gender equality, and satisfying customer demand for eco-friendly textile goods.

The urgency of implementing (ESG) environmental, social, and governance-based business is very important today than ever before.

Choose it before you are forced; Circular business models will no longer be an option but critical to the very basic fundamental need. Tick the green boxes as ESG is the wave of the future. In summary; The industry's future structure and character will depend on how it reacts to this need amid all sorts of complications.

Latest Textile News

 26 December 2022, Mumbai

One of the most enduring and practical aspects of decorative arts is the creation of beautiful designs on cloth. The use of attractively designed fabrics has become commonplace. The art of designing textiles for knitting, woven, and non-woven fabrics are known as textile design.

Fabric decorations are also a part of it. Making designs for cloth for household items like towels, rugs, etc., is what this process entails. Fabrics are woven or knitted, then printed to add decoration.

Surface design and fabric structure design are both elements of textile design. It is necessary to have a solid understanding of fibers, weaving, knitting, dyeing, and other finishing operations. Beautiful colors, designs, and patterns abound in the fantastic world of textile design.

The various spheres of designs

The process of producing a remarkable design, however, is more complex and demanding. An in-depth understanding of the many components of textile production, consumer expectations, and modern trends is essential.

The three talents that are fundamentally necessary for textile design are creativity, selecting the proper color palette, and repetition. It is profitable as well as challenging. The textile designer first conjures up the design, which is eventually turned into woven or printed textiles.

The development of the designing process benefits from the designer's in-depth knowledge of the technical aspects of fibers, dyes, and yarns. In the beginning, patterns were drawn on specialized graph paper.

However, with the development of technology, CAD software is now employed for the same purpose. A virtual fabric is constructed using electronically created weaves and designs of every kind.

Once the designer is content, the necessary data is gathered by specifications to translate the virtual design into tangible form. Nowadays, CAD technology is used in every power loom business sector.

Numerous industries might use the program, including the knitting industry, carpets, and blankets. Interior design for home furnishings, textiles for apparel, and other textile goods can be done using fabrics. Before a few years ago, there was no such thing as a career in textile design.

The expanding demand for textiles and textile products drives career choices in this sector. Creativity, technical know-how, research, data handling skills, and commercial understanding of the textile business are necessary for a successful career in textile design. The position requires a good balance of technical knowledge and creative thinking.

The uniqueness of the textile design industry

How does textile design differ from fashion design given the demands placed on designers, including creativity, the ability to use the proper color combinations, staying up to date with fashion, and being fashion-savvy? Both are naturally fiercely competitive, dependent on one another, and tightly related.

Comparatively speaking, fashion design is more glamorous than textile design. Therefore, despite all its advantages, the field needs to be better liked. Every section has a specific specialty. One necessary means of self-expression is fashion.

Given the wide range of textiles, textile design is becoming increasingly popular. One of a textile's primary characteristics is its design element, and textile design is where it all starts.

Latest Textile News