15 December 2023, Mumbai

Indian cotton spinners face a tough year, with revenue potential down 13–15% and profits shrinking 250–300 basis points, according to CRISIL Ratings. 

This gloomy outlook is fueled by lower yarn demand, higher cotton prices, and depressed yarn prices.

A study of 90 spinning firms, representing 40% of the industry, revealed record-low profit margins—7-8% lower than last year. Yet, CRISIL Ratings maintains that these firms remain financially strong and stable.

The culprit? 

A narrowing gap between cotton and yarn prices. Gautam Shahi, a CRISIL director, points to a decline from Rs 100 per kg to Rs 75–80 per kg this year, primarily due to steeper yarn price falls in the first half.

Knitwear and denim manufacturers, key domestic consumers, are tightening their purse strings. This dampens yarn demand, further impacting spinners.

Adding to the woes

The South Indian Mills Association (SIMA) raises concerns about a triple whammy impacting exports:

• 11% import duty on cotton: This hampers yarn competitiveness in global markets.
• High costs of man-made fiber and filament yarns: These pose additional challenges for yarn exports.
• Soaring power costs: These erode the industry's ability to compete domestically and internationally.

Seeking relief, the spinning industry appeals for government support and policy interventions. 

Measures to address these challenges are crucial to restoring the sector's health and securing its future.

5 Key Insights :

1. Revenue Tumble: Spinners face 13-15% drop in revenue, profits down 25-30%.
2. Demand Slump: Lower yarn demand from key consumers like knitwear & denim.
3. Price Squeeze: Narrowing gap between cotton & yarn prices hurts margins.
4. Export Woes: Triple whammy of import duty, high fiber costs, and soaring power.
5. Policy Plea: Industry seeks government support for relief and future revival.

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11 December 2023, Mumbai

WHY India

Indian retailers are doubling on in-store experiences to draw customers in the post-pandemic era. 

Despite high rental costs, they are expanding their retail spaces by 30-50%, betting on unique and immersive experiences to stand out from the crowd. 

Video Insights

The trick of the trade 

It's not just about attracting foot traffic, but also about converting visitors into loyal buyers. 

Retailers understand that in a $4 trillion economy, success hinges on experiences, not just products.

Data drives the trend:

• The top 7 Indian cities saw a 3.16 million sq. ft. gross leasing in retail in the first half of 2023, demonstrating consumer confidence and retailer commitment to experiential design.
• From January to September 2023, retail areas across major cities grew by 4.73 million sq. ft., reflecting the industry's agility in adapting to changing consumer preferences.

Beyond merchandise, experiences take center stage:

Pankaj Renjhen, COO and Joint-MD of Anarock Property Consultants emphasizes that physical stores are now about engaging the customer, not just displaying products. 

Retailers are expanding existing stores and opening new ones, capitalizing on a booming organized retail market. 

Data -points

CBRE India reports a significant 46% year-on-year growth in retail sector leasing during the January–September period of 2023.

In essence

Indian retailers are embracing a new paradigm, prioritizing experiences over mere merchandise to win the hearts and wallets of today's consumers.

| Key Insights |

| Retailers double store size |

| Unique experiences win customers |

| $4T economy rewards experiences |

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08 December 2023, Mumbai

Forget fleeting trends, Chinese shoppers are embracing practicality. 

A People's Daily Online article urges consumers to prioritize value over instant gratification, and the booming garment industry reflects this shift. 

Data-points

Sales soared to 725.7 billion yuan in just 9 months, with down jackets leading the charge.

Local brands like Skypeople are heating things up, offering premium jackets (2,800-7,000 yuan) packed with functional fabrics and local flair. 

While ten times pricier than average apparel, some consumers find the investment worthwhile.

State of affairs

China's vast market allows for diverse pricing, with basic jackets to luxury options coexisting. 

Take Bosideng, the down-wear kingpin. Their flagship brand thrives above 1,000 yuan, while their mid-priced Snowflying line saw sales surge a whopping 52.5%.

The message is clear

Ditch the cheap thrills and embrace quality pieces that last. 

Support local brands innovating with functionality, and be part of China's evolving clothing landscape.

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12 December 2023, Mumbai

A wave of closures and distress engulfed the Indian textile industry, mirroring the bleak landscape of the late 1960s. 

Video Insights

Dismantled machinery finds its way to scrap yards, as witnessed by Coimbatore's foundry owner, Sivakumar. In Somanur, weaver Kandasamy reports the monthly sale of over 10 looms within his village alone.

Nuanced View

Thulasidharan, head of the Indian Cotton Federation, paints a grim picture of the predominantly MSME-driven sector. 

Factories across the textile value chain are shutting down, selling off equipment, or even resorting to land sales to merely survive. Reduced work hours impact worker wages, while the textile and apparel share of the Index of Industrial Production plummets alarmingly.

Andhra Pradesh paints a similar picture, with P. Koti Rao, leader of the A.P. Textile Mills Association, reporting the closure of 8-9 mills. 

Soaring cotton prices, rising electricity bills, and a lack of government support threaten to push more mills towards closure.

This crisis is further compounded by sluggish domestic and international demand. Domestic demand remains stagnant, textile exports decline, and apparel exports experience concerning negative growth.

Several factors contribute to the industry's woes:

Rising Raw Material Costs: Raw materials (fibre), constituting 60-70% of production costs, have witnessed a dramatic surge, eroding the industry's competitiveness. Cotton prices are particularly volatile, with a decline in domestic production and yield exacerbating the issue.

Quality Control Orders (QCO) on Man-Made Fibre (MMF): 

The implementation of QCO creates hurdles and additional costs for MMF textile producers.

Unfettered Garment Imports: unchecked garment imports further disadvantage domestic manufacturers, making it difficult to compete.

Need of hour

The Indian textile and clothing sector stands at a critical juncture. Urgent attention and targeted solutions are needed to address these multifaceted challenges and ensure the industry's future. 

The collective effort of stakeholders, including the government, is crucial to creating a supportive environment that fosters growth and allows the sector to regain its competitive edge.

5 Key Insights :

1. Looms Abandoned: Closures and despair mark the industry, mirroring the 1960s crisis.
2. MSME Meltdown: Factories shut, equipment sold, survival a struggle for small textile players.
3. Costly Cotton: Soaring prices and declining yield erode competitiveness.
4. **Unfair Competition:**Unchecked imports and QCO hurdles disadvantage domestic producers.
5. Urgent Action Needed: Collective effort crucial to revive the industry at this critical juncture.

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11 December 2023, Mumbai

WHY India

Booming Growth:

• Young Power: The Economic Times forecasts that by 2028, youth will be 55% of consumers, a lucrative segment.
• Market Explosion: The clothing market is expected to reach $180 billion by 2030, growing 7% annually.
• Emerging Hub: India is not just a sourcing destination; it's a fashion enthusiast's paradise.

India's fashion arena is on fire

Video Insights

• India's fashion scene is ablaze with passion and talent.
• The flames of fashion are burning brightly in India.
• A fashion inferno is raging in the heart of India.

Challenges and Opportunities:

• Standing Out: Fierce competition from local and global players demands a unique brand identity.
• Customer Focus: Quality, improved experience, and embedded innovation are key to winning the market.
• Resilient Supply Chains: Building agile supply chains to handle disruptions like lockdowns.
• Bridging the Skills Gap: Investing in talent development to address the workforce skills gap.

  5 key insights for WHY India:

  Category	Insights
  Booming Growth	Young Power: The Economic Times forecasts
  Booming Growth	Market Explosion: $180 billion by 2030
  Booming Growth	Emerging Hub: Fashion enthusiast's paradise
  Challenges and Opportunities	Standing Out
  Challenges and Opportunities	Customer Focus
  Challenges and Opportunities	Resilient Supply Chains
  Challenges and Opportunities	Bridging the Skills Gap

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07 December 2023, Mumbai

The GFA Monitor 2023, launched at COP28, is your one-stop guide to building a sustainable fashion future. Packed with insights from 25+ industry organizations, it's your playbook for change.

Video Insights

Data-driven insights, real-world solutions

The report taps into the Fashion Industry Target Consultation (FITC), surveying 900 voices across 90 countries. This is the industry's lived experience, laid bare.

Five priorities, clear actions

Aligned with the Fashion CEO Agenda, the GFA Monitor focuses on five key areas: fair work, better wages, circularity, resource stewardship, and smart materials. It's not just talk; it's practical tools and proven best practices.

Industry united, progress cautious

The FITC reveals optimism about aligning on 27 action areas. But the report urges concrete impact. It sets clear goals for each priority and highlights where we need to step it up.

2025: A critical deadline looms

With the UN's 2030 goals approaching, the GFA Monitor sounds the alarm: peak greenhouse gas emissions must happen by 2025. Paris pledges made eight years ago aren't enough; projections are worse than expected.

COP28: Fashion steps up, GFA leads the way

This is our moment. GFA co-hosts a special COP28 session, ensuring fashion's voice is heard. The Global Fashion Agenda Assembly on December 5th reviews progress, shares financing solutions, and advises policymakers.

Federica Marchionni, CEO, of Global Fashion Agenda: "Partnerships are key. Together, we can make sustainability the new normal."

Join the movement. Let's build a net-positive fashion future.

5 Key Insights

1. Data-Driven Insights: Actionable solutions based on industry experience.
2. Five Priorities: Fair work, wages, circularity, resources, smart materials.
3. Industry United: Optimism for alignment on key action areas.
4. 2025 Deadline: Peak emissions must happen by 2025.
5. COP28: Fashion Steps Up: GFA leads the charge for change.

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12 December 2023, Mumbai

Moscow's Zaryadye Hall pulsated with the rhythm of international fashion from November 28th to December 2nd, 2023, as the BRICS+ Fashion Summit unfolded. More than just a showcase, it was a tapestry woven from diverse threads – industry titans, fashion education pioneers, and international associations, all gathered from 60 countries across continents.

Video Insights

From Asia and Latin America to the Middle East and beyond, the summit stitched together a dialogue of style. Renowned names like Lucas Leao (Brazil), CHNNYU (China), and David Tlale (South Africa) shared their creative visions, while Alena Akhmadullina (Russia), Sadaels (Argentina), and Arzu Kaprol (Turkey) added unique textures to the global fashion canvas.

Leading the Indian delegation, Sanjay Chawla of DFU Publications, along with representatives from the esteemed Fashion Design Council of India (FDCI) under Sunil Sethi's guidance, wove India's rich handloom heritage into the summit's fabric. Top designers like Ritesh Kumar, Naushad Ali, Gaurav Khanijo, and Shruti Sancheti presented exquisite collections, showcasing the country's vibrant textile traditions.

Beyond the runway, the summit fostered collaboration and knowledge exchange. Industry experts, designers, and buyers mingled in the Zaryadye Park, forging partnerships and sparking new ideas. Fashion education institutions and international associations joined hands, building a bridge for future generations of fashionistas.

The BRICS+ Fashion Summit wasn't just a fleeting spectacle; it was a catalyst for innovation. New trends were born, collaborations blossomed, and the seeds of a more connected fashion world were sown. This wasn't just a celebration of style; it was a stitch towards a brighter, more inclusive fashion future.

Stay tuned for the next chapter in this global fashion saga. The BRICS+ story is just beginning!

Key Insights

1. Global Threads: 60 countries, diverse voices, united by fashion.
2. Beyond Runway: Collaboration and knowledge, not just catwalk glamour.
3. Stitching Style: Renowned designers, unique textures, weaving a global tapestry.
4. Handloom Legacy: India's vibrant traditions, woven into the summit's fabric.
5. Future Stitched: Innovation ignited, partnerships forged, a brighter fashion world.

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08 December 2023, Mumbai

McKinsey's State of Fashion 2024 report

Video Insights

Luxury's Remarkable Recovery:

36% profit increase in 2023, surpassing all other segments.

More than doubled economic profit compared to 2011–2020.

Demonstrates resilience to economic and political challenges.

Global Fashion Growth:

Projected 2-4% top-line growth in 2024, with regional variations.

The luxury segment is expected to dominate profits again.

Luxury Faces Challenges:

3-5% global growth is expected, down from 2023.

Potential contraction to 1-4% if economic conditions worsen.

Euro News Predictions:

8–10% global revenue growth for luxury goods until 2030.

The market is flourishing despite the slow post-pandemic rebound.

Personal Luxury Goods:

It was expected to reach $391 billion in 2023, the pre-pandemic level.

Consumers prioritize experiences over ownership, driving growth in luxury services.

Luxury's Future:

Poised for continued growth, economic headwinds require adaptation.

Innovation and experience-driven offerings are key to success.

5 Insights:

1. Profit Powerhouse: 36% gain in 2023, surpassing all.
2. Resilient Growth: Doubled profit since 2011, defying challenges.
3. Leading the Pack: With 2-4% growth projected in 2024, luxury dominates profits.
4. Facing Headwinds: 3-5% growth expected, potential for contraction.
5. Experiences Over Ownership: 8-10% revenue growth predicted, driven by service demand.

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06 December 2023, Mumbai

WHY India

Facing rising costs and a post-pandemic world, Indian retailers are going big, not home. They're expanding their stores by 30–50%, betting on immersive in-store experiences to win over customers. Forget just getting you in the door; it's all about keeping you there and making that purchase.

Think interactive displays, personalized recommendations, and even AR/VR magic. Physical stores are no longer just places to buy stuff; they're destinations for discovery and delight. And with India's growing economy, people are willing to spend more on those good vibes.

Quotes

Pankaj Renjhen, a retail expert, puts it this way: "Stores are about engagement, not just products." Brands are listening. They're adding cafes, salons, and even workshops to their massive new spaces.

Multiple data-points

The numbers tell the story: 3.16 million sq. ft. of retail space leased in just the first half of 2023! That's a confidence boost for the industry and a sign that shoppers are craving something special.

And what's special? It's not just size. The share of medium-sized stores (2,000-5,000 sq. ft.) is booming, growing from 19% to 21%. Even larger stores are joining the party.

Prognosis

Indian retail is changing its tune. It's no longer a price war; it's an experienced race. And the stores that win will be the ones that can make you feel like you're not just shopping, you're having an adventure.

So, get ready, India. The future of retail is here, and it's more exciting (and maybe a little bigger) than ever before.

5 key insights :

1. Experiences over price: Indian retail is shifting from price wars to immersive experiences.

2. Bigger stores, bigger bets: Retailers are expanding stores by 30-50%, betting on in-store experiences.

3. Engagement, not just products: Stores are becoming destinations for discovery and delight, not just purchases.

4. Customers crave special: Growing economy fuels demand for unique retail experiences.

5. Retail's future is here: India embraces an exciting and immersive retail landscape.

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