31 May 2023, Mumbai

Cross-channel functionalities need to be enabled if you want to boost collaboration. This can be as basic as informing customers about omni-channel support options or letting them get in touch with a staff member in-store for assistance.

What all you need to know

Actionable insights

Customers can also make online reservations for things they want to buy or pick up in person.

According to experts, the majority of store sales are already influenced by digital information, and that percentage is rapidly increasing.

84 percent of customers reach for smartphones either before or during store visits, according to Deloitte research. And this figure is increasing.

Universe of eCommerce

Is it an eCommerce sale if a buyer visits a store, discovers the item is out of stock, and then utilizes an in-store terminal to have it shipped to their home from another location? What if a client is shopping in one store, finds a better deal at another using smartphone, then orders it online for in-store pickup?

Employees must cooperate in new, quicker, and more efficient ways as retailers become more fragmented than ever before.

Trailblazing; The last thing a customer wants after making the effort to visit your store is to be led to your website.

Additionally, in an omnichannel world, employees need to spend more time interacting with customers.

Evolved consumer

After all, the always-connected consumer is better informed than ever and can easily access whatever information a store associate can supply from their smartphone.

Consumer-facing industry; They want and expect the storefront to take care of their individual requirements; they are not there to be sold to.

Store employees serve as the customer support for eCommerce if brick-and-mortar stores are its physical representation.

Informed decision

When a customer requests help online, a representative has access to all relevant information about that particular customer, including purchase history, interests, and preferences.

When entering a store, customers anticipate the same thing. They anticipate that shop staff members would have access to the same data and use it to create tailored encounters.

Keys ways to improve the online-offline experience

To deliver the greatest possible customer experience through personalization, in-store personalization touch-points contain both physical and digital components, as well as points integrating both technology and people.

Intelligent event; Retail personnel, however, assert that communication stumbling blocks have a detrimental impact on both customer service and production.

Everything from not knowing how to return an internet purchase to receiving incomplete information on recently introduced programs from head office. These problems shouldn't be disregarded. The shop experience stays as convenient as the online experience when your staff is properly trained.

Skill set and adoption of technology are the key

Retail staff must have access to technology in order to arm themselves with the necessary knowledge and be available and effective on the sales floor in an omni-channel experience.

Innovations can be disruptive & transforming; Sales representatives have access to almost endless data about clients, as well as information on price and stock when they are equipped with the right equipment.

When sales associates are knowledgeable about a customer's past purchases, they can offer informed, timely, and relevant advice.

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Fashion Brand & Retail News

ARTICLE

An omnichannel experiential journey of Shoppers

09-11-2022

Omnification

Retail

Skill Development

E-commerce

Online

Offline

Festive Season

Diwali

09 November 2022, Mumbai:

Every adversity has a silver lining and a prelude to the onset of all-pervasive technology intervention in the day-to-day life of commoners was a fundamental tailwind we have directly experienced out of the COVID-19 era.

Thanks to the pandemic which had the power to impact and taught us many things and the learnings thereof, will hopefully permanently serve us in good stead in the coming times.

Like any other sector retail industry languished during the pandemic too staving off the crisis having learned, unlearnt, and relearned valuable lessons during these unprecedented times.

As the internet need and want grown disproportionately during COVID-19 and forces like internet service providers wasted no time in wresting the opportunity with both hands and more particularly the advent of Jio belonging to O2C conglomerate "Reliance Industries" helped trickle it to Urban-semi Urban-Peri Urban-Rural-Hinterland and ARPU went historic high on the back of world's cheapest data available to the last man on the street which did magic.

The great consumer shift

There is a famous adage," Often, some of the best things in life come out of the most difficult challenges".

Considering the ever-evolving speeds and technology of the internet and now the advent of the ambitious 5G roll, the shopping experience has undergone a sea-change in concert with the evolving timescape.

Kickers

What is driving all this is the back of super buying ease E-Tailers have made possible today with merely a swipe of the consumer's finger while using a smartphone taking her to a great marketplace where stunningly she gets spoilt for choices.

On the back of evolving technologies

More importantly, technology fully backed this emerging changing consumer behavior crystallized by Social media (SMs) platforms of the day such as Facebook, Instagram, and WA (WhatsApp) using portals/web tools/curating strategy cashing in on this mouth-watering opportunity which is only getting bigger by the day.

By the way, this presented e-biggies with an all-time high chance of engaging and, directly reaching out to the customer, alluring them with a direct shopping experience interestingly enough all this tech evolution has led to.

The Rise of Omni-Channel Presence

During a recent roundtable discussion hosted by ETRetail in association with Salesforce, industry experts concluded that having an omni-channel presence is no longer a luxury but a necessity for brands to stay relevant in today's retail landscape.

This change has been driven by the evolving buying behavior of Indian consumers, who now expect to engage with their preferred brands from anywhere, giving rise to the concept of omni-channel presence.

Unlocking Growth through Omni-Channel Strategies

India, being the world's fifth-largest economy and a digital powerhouse, presents unprecedented potential for retail growth.

It is projected that India's retail market will reach $1.7 trillion by 2029. With a large number of mobile phone users in India relying on smartphones for product information and purchases, online touchpoints have become the primary channel for engaging with consumers.

Overcoming Challenges

The roundtable discussion highlighted the success of brands that have embraced omni-channel strategies. Godrej Interio, a prominent furniture company, exemplified this by establishing an online presence alongside their physical stores, leading to increased sales.

They observed that while consumers still prefer to inspect furniture in person, many purchase decisions were made online, showcasing the importance of omni-channel presence.

Fashion's Omni-Channel Advantage

Retailers face challenges in ensuring accessibility across various touchpoints and providing 100% inventory visibility to customers across all channels. However, creating a superior customer experience through a well-rounded omni-channel approach, logistics, inventories, and customer service is crucial for brands to establish themselves firmly in the retail market.

Gen Z and the Digital Shift The entry of digitally native Gen Z consumers have further driven the demand for digital channels and online purchases. Luxury brands, such as Tata Cliq, have witnessed a significant shift towards e-commerce as younger generations prefer online shopping over offline options.

Adapting to Trends

Integrating technology into the retail journey has become essential. Customers expect a seamless, hyper-personalized shopping experience across all touchpoints, whether physical or virtual. Brands must find the right balance between technology integration and human interaction to enhance service quality and customer experience.

Evolving Customer Journeys in the Omni-Channel Era

Fashion brands have also embraced the advantages of an omni-channel approach, particularly in offloading seasonal collections and ensuring quick product delivery.

Online apparel shopping has gained popularity due to lower prices, easy logistics, and the ability to ship products across multiple locations in India. However, industries like electronics and luxury products face challenges in providing the same convenience and instant gratification to customers.

AI and Personalization

To stay relevant in a market driven by trends, fashion brands must continuously evolve their customer journeys and experiences.

Technology, particularly AI, will play a crucial role in enabling personalization, easy access to product information, trials, and returns, and delivering value to price-sensitive consumers.

Latest Textile Events

02 June  2023, Mumbai

The first quarter of 2023, which ended March 31, 2023, saw consolidated sales of €3,380 million for the French luxury design company Hermès.

Kering, a French luxury conglomerate, announced Q1 FY23 sales of €5,077 million, an increase of 2% over reported figures and 1% over comparable statistics. Adidas announced flat sales for the first quarter of 2023, currency-neutral.

What all you need to know

The first quarter of 2023, which ended March 31, 2023, saw consolidated sales of €3,380 million for the French luxury design company Hermès. Revenue increased by 22% at current and 23% at constant exchange rates.

Hope and Optimism Prevail

The sales demonstrated dynamism across all business lines and geographical regions. With the opening of its 21st leather products facility in Louviers in April, the firm has increased its production capabilities and solidified its artisanal business model.

However, by the end of March, the impact of currency movements on revenue was negative by €21 million. With the exception of transactions that took place under the parameters of the liquidity contract, Hermès International did not redeem any shares.

Unfolding story

At the time of reporting, there was no information about profitability. The group reiterated an aggressive target for revenue growth at constant exchange rates in its medium-term forecast.

The group was inspired to enter 2023 with confidence by the highly integrated artisanal model, the balanced distribution network, the innovative collections, and the devoted customer base.

Hermès will keep pursuing its long-term development plan, which is built on originality, holding onto know-how, and unique communication.

Factors Driving Growth

Another French fashion company, LVMH Mot Hennessy Louis Vuitton, released Q1 FY23 results with revenue of €21 billion, up 17% from the same quarter in 2022. The organic growth was also the same, despite the geopolitical and economic situation continuing unstable. All business sectors had double-digit growth with the exception of wine and spirits.

While sales of leather and fashion products jumped 18% to €10,728 million, selective retailing saw the highest growth rate of 30% during the first three months of 2017.

Asia experienced a big rebound when health restrictions were lifted, while Europe and Japan experienced great growth momentum because of strong demand from domestic consumers and foreign tourists.

The US continued to develop gradually. Additionally, LVMH limited its reporting to simply sales performance. At the beginning of the year, LVMH maintained both vigilance and confidence.

LVMH will continue to follow its strategy centered on the growth of its brands, motivated by a consistent policy of innovation and investment as well as by a never-ending pursuit of excellence in its goods and distribution.

Apparel Retail Sees Global Boom, but Challenges Loom Ahead

Hugo Boss, a German fashion brand, maintained its momentum from 2022 in the first quarter of 2023 as well, putting forth strong financial and operational results while generating appreciable top and bottom-line gains. Sales for the group totaled €968 million, up 25% from €772 million in Q1 FY22.

All regions saw double-digit sales growth, with the growth rate being the same in both adjusted currency and constant currency terms. When compared to the final quarter of 2022, the revenues significantly outperformed pre-pandemic levels by 44% in adjusted currency terms.

In Q1 FY23, the group produced an operational profit, or EBIT, of €65 million, up 63% from €40 million in the prior year. This resulted in an increase in EBIT margin of 160 basis points to 6.7%.

Growth levers; Significant top-line gains were the primary driver of the growth, more than offsetting a little fall in gross margin, which fell 30 basis points to 61.4%. As part of its CLAIM 5 strategy, the company is dedicated to continuing with additional investments in the company.

The group upgraded its top- and bottom-line projections for 2023:

Sales will climb by 10% at €4 billion, and EBIT will rise by 10% to 20%, or €370–€400 million, compared to a prior increase of +5% to +12% (€350–€375 million).

Continuous investments in its brands, products, and digital know-how as part of CLAIM 5 are expected to be more than compensated by a gross margin growth that is at least constant in 2023 and additional efficiency improvements for its brick-and-mortar retail store network.

Strong Growth Amidst Pandemic Challenges

Cause & effect; The apparel retail sector has witnessed significant growth worldwide, despite the ongoing challenges posed by the COVID-19 pandemic. In 2022, the industry demonstrated resilience in navigating through various obstacles such as the Omicron variant and the Russia-Ukraine conflict.

US Leads Retail Sales Growth, Imports Soar

The United States emerged as a leader in retail sales growth, with revenues reaching $264.05 billion in 2021, representing a 36.37% increase compared to the previous year.

This growth continued into 2022, with sales in the US rising by 13.76% to $81 billion during the January-April period. Furthermore, clothing imports by the US surged by 40.55% year-on-year to $32.43 billion.

Industry's Trajectory

Bangladesh dominated clothing imports to the US, accounting for a 65% share in 2021 and the first four months of 2022. During this period, clothing imports from Bangladesh and India increased by 65% and 56%, respectively.

The growth in the industry can be attributed to pent-up demand, wage growth, revenge buying, and the reopening of economies in the US and the UK.

Additionally, the introduction of new fashion styles by retailers has further fueled this growth.

In the UK, apparel retail sales grew by 15% to £38.10 billion in 2021, while clothing imports declined by 9.50% to £20.80 billion. EU apparel imports also rebounded in 2021, increasing by 5.60% to €72.30 billion, with imports from Bangladesh growing by 20% to €14.30 billion.

Japan Faces Fluctuations

Japan experienced fluctuations in apparel retail sales and imports from 2019 to 2021, but the market is projected to grow at a compound annual growth rate (CAGR) of 4.13% until 2026.

Skepticism and Challenges Ahead

Despite the positive trends, experts remain skeptical about sustaining this growth in the coming months. Reports indicate that retailers such as Target have canceled orders and reduced prices to clear excess inventory.

Additionally, the global industry-wide Christmas sales fell short of projections, negatively impacting profits in the first quarter of 2023. Retailers are now focusing on stabilizing profit margins by reducing excess inventories and cutting unnecessary hiring.

Optimism and Strategies for Bouncing Back

The future outlook for the industry remains uncertain, with recession fears and a potential slowdown in sales growth after the sharp increase observed in the post-COVID period.

However, retailers are optimistic about bouncing back by implementing focused product portfolios and expanding sales and distribution channels. The next quarter will be crucial in determining the industry's trajectory and profitability.

Latest Textile Events

 29 May 2023, Mumbai

Streetwear is, in its most basic definition, the casualization of frequently sportswear-inspired clothing, with key fixations like hoodies and graphic logos. When examined more closely, streetwear can be seen as more of a lifestyle orientation of various subcultures, such as hip-hop, DIY punk, graffiti, the skate and surf scene, and, most importantly, the sneaker fandom.

What all you need to know

Youth drives streetwear craze Together, these subcultures make up the ecosystem of "streetwear," a youth-oriented lifestyle trend that first gained popularity in California in the 1970s.

Street fashion is youth culture in its purest form, and youth culture sells! It is an international phenomenon that is now nearly 50 years old and highly commercialized. Simply said, the entire fashion system has become democratic as a result of its global popular dominance.

Stepback

When Hypebeast filed for an IPO on the Hong Kong Stock Exchange in 2016, the sneakerhead online media brand and retailer shocked the fashion industry. This led up to the crucial moment in 2017 when streetwear entered the mainstream.

Venture capitalists were in a tizzy hunting for the next billion-dollar brand after the highly anticipated and sought-after Louis Vuitton X Supreme capsule collection debuted and the Carlyle Group purchased a stake in the Streetwear titan, effectively valuing Supreme at $1 billion.

Brands in the nexus of skate and fashion have become more popular as a result of skateboarding's inclusion in the Olympics starting this year. Present market scenario

Today, it is impossible to discuss streetwear without bringing up the rapidly expanding secondary market known as the "Resell Market." The VCs have probably been most titillated by this portion.

The market is dominated by StockX, which counts Mark Wahlberg and Eminem as investors, Goat, which also counts Ashton Kutcher as an investor, Grailed, and Stadium Goods, which received an investment from LVMH for an unknown sum.

Streetwear's top online marketplaces, including StockX, Goat, Grailed, Stadium Goods, and Highsnobiety, received a combined investment of around $179.8 million between 2017 and 2018. This indicates that investors are interested in the industry.

Most people don't really understand what streetwear is. Others believe that all graphic shirts and hoodies are streetwear, while others believe that streetwear is simply clothing that is found on the streets, such as Fashion Street.

Yes, streetwear includes items like t-shirts, hoodies, and sneakers, but as Bobby Hundreds of the original streetwear company The Hundreds puts it, "without community" streetwear is just fashion.

The culture of streetwear and the market trends

Streetwear culture was greatly influenced by utility and small-town life. The streetwear subgenre is frequently credited to Shawn Stussy and the Stussy brand, which is frequently said to as the greatest streetwear company ever. Skate culture has a significant aesthetic impact on streetwear.

Skaters on the west coast were known for having a unique style and for claiming to be outcasts. They showed their loyalty to the culture by wearing graphically printed t-shirts, ripped jeans, and shoelaces as belts.

This community was catered to by companies like Supreme, Vans, HUF, and Thrasher, which gave them t-shirts, jeans, skateboards, accessories, thick rubber-soled footwear, and media.

Since then, streetwear has expanded its influence and sources of inspiration to encompass hip-hop, sneaker culture, street art, the military aesthetic, Euro-street, Japanese fashion, and more. 'Drops' culture is a crucial aspect of streetwear.

"Drops" are product debuts in which, in contrast to the typical spring-summer, autumn-winter fashion seasons, limited edition streetwear and trainers, and occasionally even only one model, are brought to market.

Youth fuel streetwear's soaring popularity

At the very least, 4 to 5 lakh, Gen Z and millennials live in India and make up a substantial portion of the streetwear community.

The uniform of this group of hip people who are a part of India's burgeoning streetwear scene includes oversized fits, logo t-shirts, chunky "dad" sneakers, snapback and bucket hats, long-sleeve tees, coach jackets, tactical clothing, fanny packs (bags meant to be worn around the waist but frequently slung over the shoulder), slides with interesting socks, tracksuits, Yeezy, Jordans, and Nike SBs.

It has been observed that an eclectic mix of buyers, including Gen Z buyers adore luxury inspired by streetwear, sometimes known as street-luxe. There are also some who enjoy the "hype," or the newest, most valuable drop, treating streetwear almost like an asset class.

Products that are hyped up tend to be celebrity-driven, the result of collaborations, or available in incredibly small numbers and impossible to 'cop' at retail.

There are also some who avoid the hype yet fall for the love tales that streetwear companies propagate. There are also fashion enthusiasts in India who follow international trends and love the silhouettes and styles of streetwear.

Streetwear's Multifaceted Growth in Luxury Fashion The Fusion of Streetwear and Metaverse

The global luxury fashion industry is undergoing a transformation as it embraces streetwear and invests in the metaverse.

According to a report by Edited, the streetwear-inspired luxury market is projected to reach $382.6 billion by 2025, growing at a CAGR of 5.4 percent. Key categories experiencing substantial growth include sweatpants (59 percent), sweatshirts (26 percent), and T-shirts (14 percent).

A resurgence of Workwear and Extended Sizes

The pandemic has fueled increased investments in traditional workwear, while luxury brands are witnessing a surge in demand for extended sizes, with a 130 percent YoY increase.

However, the availability of extended sizes is still limited, comprising only 7 percent of luxury apparel sold online. Efforts are needed to extend size offerings to offline retailers as well.

Additionally, the demand for animal furs and exotic skins has declined, leading to a 27 percent and 42 percent YoY drop, respectively. The industry is shifting towards animal-free alternatives like vegan leather, which has seen a 20 percent YoY increase in demand.

Streetwear Staples and Evolving Accessories

Hoodies, sweatpants, sneakers, and T-shirts remain quintessential streetwear items that luxury brands continue to incorporate into their collections. However, there has been a shift away from bumbags to crossbody bags or duffels in the luxury market.

Brands like Fear of God and Stone Island have made investments in third-party luxury sites, acquiring stakes of 680 percent and 81 percent, respectively.

Brighter Luxury Collections and New Shades

Luxury assortments are expected to become more vibrant with the introduction of new shades. The percentage of pink in women's wardrobes declined to 37 percent in 2021, while green, yellow, and purple saw the increased representation. The luxury market needs to cater to this changing color preference.

The Rise of Genderless Styles and Metaverse Integration

Customers seeking non-binary styles are driving the streetwear market, followed by those specifically seeking male and female styles. Genderless or unisex fashion is gaining traction, with brands like Telfar, Cold Laundry, and Rastah launching genderless styles.

The integration of metaverse technology and NFTs is helping luxury brands push boundaries, with 42 percent of brands adopting these technologies on their home pages. Collaboration with metaverse experts can further enhance their presence in this digital space.

Women's Streetwear Market Grows

Women's streetwear is experiencing faster growth than men's, with new product categories launching and selling 47 percent faster than in 2019. Brands like Goat and StockX are witnessing a significant rise in female customers. However, men's streetwear still dominates the market, occupying a larger share of retail space.

Popular Streetwear Styles and Quality Concerns

Streetwear styles like colored soles, smiley designs, relaxed denim, puffer jackets, and coordinated sets are highly sought after. However, concerns regarding the quality of streetwear products have emerged as more brands enter the market, with questions raised about the actual quality and durability of these products.

The Future of Streetwear

Streetwear has become a dominant force in the fashion industry, appealing to people of all ages. The global streetwear market is projected to reach $193,217.4 million by 2027, growing at a CAGR of 1.82 percent.

With the return to normalcy post-pandemic, winter streetwear trends like oversized outerwear, pleated skirts, and balloon cargo pants are gaining popularity.

Winter 2022 Trends and Tailoring's Dramatic Evolution Cargo pants, moto jackets, varsity bomber jackets, football jerseys, and fuzzy fleece.

Latest Textile Events

01 June 2023, Mumbai 

The global textile industry holds significant size and strategic importance. Currently, it is worth US$ 309 billion. Its growth is accelerating and it will likely soon reach US$ 856 billion.

In addition to the conventional fashion markets, emerging economies like China and India are expanding quickly. In the near future, they are anticipated to dominate the textile industry.

Logistics is at the heart of the business

The logistics sector has been and will continue to be vital to the textile industry. Without the proper transfer of goods from one location to another, no enterprise can endure.

The textile sector is not an exception! Transporting raw materials and textile equipment to production facilities is made easier by textile logistics. Additionally, it aids in the finished goods' distribution to the intended market.

Role & scope of the Logistics sector

Textile logistics is a rapidly developing industry. Manufacturers and merchants are aware of how crucial transportation is for getting products to their customers.

They will spend any amount of money to obtain high-quality services, however, price does not totally control the process. They make sure that their final products and raw materials are transported precisely on time.

Textile logistics place a high value on timeliness. If one of the two parties consistently fails to deliver the items by the scheduled date, its market reputation will undoubtedly deteriorate.

If the assignment is not finished and delivered on time, the deal might not produce the expected results. The development of a textile firm depends heavily on timeliness.

Competitive landscape

This issue is of vital importance to any organization involved in textile logistics. It must always keep time, regardless of the nation, state, city, or area it is in. If not, it might not be successful in the market.

Customers pay them mostly to ensure that their items get to the specified location on time.

Numerous events illustrate the value of timeliness in textile logistics. When products were delivered late, a logistics company with headquarters in China was sued by the client. All of the company's couriers' responsibilities were placed in its capable hands.

Due to internal staff inefficiencies, a key courier carrying documents arrived after the scheduled time. As a result, the client organization suffered significant losses because an essential message could not be delivered.

Differentiability

Another instance included a textile manufacturing company that experienced losses due to the late delivery of raw materials. It contacted an unreliable UK textile shipping business and could not get its cargo of raw materials on schedule.

This incident caused its final goods delivery to be delayed, which had an impact on the company's profitability. The cost has some bearing on timeliness in the logistics of textiles. The planet has many different forms of transportation.

Each has a different charge and speed. The delivery methods by air, water, and land vary. The fastest is air. It, therefore, costs extra. Additionally, goods can be transported via road, rail, goods ships, and other forms of transportation.

Key parameter

Many textile logistics service providers consider timeliness to be a quality indicator. If they can consistently deliver the requested goods or materials on time, they offer great quality.

Their quality is bad if they are unable to provide the goods to their client on schedule.

Timeliness is the face of quality in the logistics sector of the textile industry. This method is used to evaluate the service providers' quality. Everything is transient in the textile and fashion industries. Anything that is popular today might not be available tomorrow.

The raw materials must be moved quickly and processed. Any logistics company may fail to fulfill its objective if it is not prompt in the transfer of goods and raw materials. Time Vs Money

Additionally, under the "list of importance in textile logistics," timeliness now has a point added. The bulk of the time, the costs of the raw materials utilized in the textile industry are very volatile. For instance, cotton has a price that varies greatly.

The company will be obliged to offer the finished goods at a cheap price if it purchases cotton at a higher price and later sees cotton prices decline. Without a doubt, textile logistics place less emphasis on timeliness than the edible goods sector does.

Value for time

In the textile industry, raw materials virtually never deteriorate. They can be kept for a long time in go-downs. They are not edible, hence they don't have a shelf life or expiration date. However, the textile logistics sector also takes punctuality into grave account. It is absolutely impossible to disregard the value of timeliness in textile logistics.

Actually, punctuality is crucial in every area of logistics. But it occupies a unique position in the textile sector. Making a concession in this area is absolutely detrimental to the company. Because of this, textile logistics service providers take extra care to complete all tasks on time.

E-Commerce Boom Drives Logistics Expansion

India's e-logistics sector is experiencing an impressive compound annual growth rate of 35 percent, making it one of the largest and fastest-growing logistics markets globally.

The surge in e-commerce has played a significant role in this growth, with e-commerce logistics shipments expected to quadruple in the next five years.

The convenience factor and accelerated online adoption, driven by the COVID-19 pandemic, are propelling the overall online gross merchandise value (GMV) to reach $49-52 billion, a 37 percent increase from last year. Tier-II-plus cities and towns are emerging as key drivers of growth, representing a significant portion of the total shopper base.

Super Apps and D2C Revolutionize Markets

India's direct-to-consumer (D2C) market is thriving, thanks to the emergence of super apps introduced by major companies like the Tata Group and Reliance Group.

These super apps consolidate various services and offerings, providing consumers with a seamless experience. This innovation is reshaping the e-commerce landscape and further fueling the demand for efficient logistics solutions.

Growing Geopolitical Tensions

In India, e-invoicing and the implementation of the goods and services tax have streamlined interior logistics processes.

Meanwhile, global shipping and logistics have faced significant challenges due to geopolitical tensions and disruptions. However, recent data from Container xChange indicates that trade is starting to see relief, with a persistent downward trend in container prices, making businesses more competitive.

National Logistics Policy (NLP)

Transforming India's Logistics; The availability of multiple payment options and the growing popularity of digital commerce, such as UPI, no-cost EMI, and buy now, pay later (BNPL), are driving the adoption of e-commerce logistics.

The National Logistics Policy 2022, formulated by the commerce ministry, aims to improve India's trade competitiveness by reducing logistics costs.

The goal is to bring down logistics costs from the current 14 percent of GDP to less than 10 percent within the next 4-5 years.

Technology is an enabler

Tech-enabled logistics service providers are addressing multiple segments of the Indian logistics market, offering full-stack solutions. With the rise of e-commerce and increased awareness of the industry's challenges and growth opportunities, investors are funding new ventures in the logistics sector.

Promising Growth 

The convergence of e-commerce growth, digital adoption, favorable policies, and tech-enabled solutions is shaping a promising future for India's logistics industry.

Tech-enabled logistics players are venturing into adjacent segments, such as hyperlocal delivery, express delivery, trucking, and more. This expansion opens up further avenues for growth and innovation within the industry.

As India's logistics sector undergoes significant transformation driven by technology, it is becoming increasingly efficient and accessible for businesses, particularly small- and medium-sized enterprises, to transport goods.

Latest Textile Events

 27 May 2023, Mumbai

The textile industry in India is one of the nation's oldest, having existed for many years.

The sector contributes 2% of the GDP and 7% of the total industry output. It also holds 5% of the world's textile and clothing trade and contributes 12% to export earnings.

What all you need to know

Due to its labor-intensive nature, the Indian textile sector ranks second after agriculture in terms of its contribution to employment creation, accounting for 10% of the nation's manufacturing.

In comparison to other major textile producers, India also has a competitive edge in terms of trained labor and production costs.

Snapshot

The yarn and fiber segment and the processed textiles and apparel segment make up the bulk of the Indian textile and apparel market.

The textile business is incredibly diverse, with the capital-intensive sophisticated mills sector at one end of the spectrum and the hand-spun and hand-woven textiles sector at the other. The main segment of the textiles industry is the decentralized power looms/hosiery and knitting sector.

The share splits and the market leaders

Since over 70% of the industry's output is based on cotton, as opposed to the global average, where goods made of man-made fibers account for a bigger share, the industry is therefore extremely vulnerable to changes in the cotton market.

India is the world's fourth-largest producer and exporter of garments after China, Bangladesh, and Vietnam and the world's second-largest producer and exporter of textiles after China. Nearly two-thirds of India's textile exports go to the US and the UK due to its enterprises' commitment to high quality.

Due to the technical textiles' low cost, long lifespan, and versatility, India is another important market for the sector's growth.

Seatbelts, sticky tapes, thermal protection materials, and blood absorption materials are some of the technical textile industries' main service offerings. The technical textile business is primarily driven by the healthcare and infrastructure sectors.

Recessionary pressures

The growth and demand for the textiles sector have reduced this fiscal year from epidemic highs. Exports have slowed as a result of the conflict between Russia and Ukraine, high inflation, and the potential for an impending recession in important markets like the US and Europe.

However, the sector has had strong domestic demand and new areas of expansion. Arun Roongta, the managing director of HGH India, speaks with ET Digital about industry trends, challenges, and possibilities. Market obstacles and ways to overcome

Home textile a bright spot

Despite a number of obstacles, the Indian home textile and furnishings business is still expanding. Currently, exports to Europe and the EU, which account for 80% of India's market in these sectors, are stagnant. The domestic market, meanwhile, is still expanding at a 15% annual rate.

Instead of having products customized, consumers are gravitating towards ready-to-use items like ready-made sofas, cushion covers, curtains, blinds, bed sheets, and towels. In 2022, the domestic market for home textiles and furnishings was estimated to be between $18 and $19 billion, including the unorganized sector.

Of this amount, $8.2 billion was exported, while the remaining $10 billion was used for internal consumption. Only the bed & bath category of home textiles accounted for about 40% of household spending. However, the unorganized and MSME sectors satisfy more than 95% of domestic demand.

These numbers would increase since a more inclusive definition of furnishing would also cover furniture and home décor accessories.

Island of growth

India wants to grow its economy by over 7% annually and reach a $5 trillion mark by 2025 or 2026. With a population of 1.4 billion and the fifth-largest economy in the world, it is currently one of the biggest and most rapidly developing markets in the world.

Young, aspirational customers in India are adapting to better goods, better designs, and a global way of life as their incomes rise.

The Indian market will continue to provide domestic and international firms with more prospects for business expansion as the demand for household goods grows at a 20% annual rate.

Finding the correct business partner in India's vast but very diversified market is a significant issue for both foreign and domestic companies and producers.

Indian Textile Industry Aims for Growth Amidst Challenges

Macroeconomic Factors Impact Textile Players' Performance In the second quarter of 2022-2023, the textile industry faced challenges due to macroeconomic headwinds. Indian spinners experienced a decline in revenue and margins, while the apparel segment saw flat revenue and margins amid recessionary conditions in key markets.

Inventory levels decreased as cotton stocks from the previous harvest season reduced, and volatile cotton prices made players cautious about purchasing.

Apparel Exporters Show Resilience, but Challenges Persist

Unlike cotton spinners, apparel exporters in India witnessed a 4.5% increase in revenue year on year. However, India's textile industry has faced a decline in recent years, with textile exports dropping by 18.7% in 2020, while countries like Bangladesh and Vietnam experienced a surge in exports.

Overcoming Cost Disadvantages and Setting Ambitious Targets To regain its position in the global market, India aims to achieve a 9% compound annual growth rate (CAGR) in textile exports until 2026, with a target of $65 billion in textile exports.

The Ministry of Textiles has set an even more ambitious target of $100 billion in exports over the next five years. To achieve these goals, India needs to address cost disadvantages, negotiate free trade agreements, and invest in key areas.

Strategies to Boost Exports and Increase Investments

India aims to position itself as a regional fabric hub, targeting $4 billion in fabric exports by focusing on cotton and expanding into other sub-categories. Increasing the share of man-made fiber (MMF) products in the global market can help reach a $3 billion target for MMF exports.

The growth potential of technical textiles also requires building capabilities in select sub-segments to tap into domestic demand. Achieving these targets necessitates investments of $20 to $25 billion and implementing schemes like PLI, MITRA, and RoDTEP.

Enhancing Competitiveness and Global Market Reach

To maximize efficiency and competitiveness, India must focus on cost-effectiveness, digitization, design capabilities, sustainability, and traceability. Becoming a one-stop destination for sustainable textile products manufactured through transparent value chains with high-quality standards and reduced lead times will differentiate India from competitors.

The industry and government must work together to attract investments, reduce import duties on machinery, and pursue free trade agreements. Positive Outlook for the Textile and Apparel Sector

The Indian textile and apparel sector is poised for growth, with a projected value of $350 billion by 2030. Apparel is expected to grow at a CAGR of 9.6%, reaching $45 billion, while textiles will reach a value of $55 billion with an 8.2% growth rate.

Bilateral agreements with countries like the UAE and Australia, along with upcoming agreements with the US, UK, and EU, offer opportunities for India to increase its market share.

Sum & substance

Despite challenges, the Indian textile industry is determined to revitalize itself through strategic initiatives, policy support, and collaboration with global markets.

By addressing cost disadvantages, leveraging its strengths, and implementing targeted growth strategies, India aims to regain its position as a major player in the global textile and apparel sector.

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