While India and Bangladesh launched rupee-based trade in June 2023 to reduce dependence on the US dollar, the initiative faces an uphill battle. With a turnover of just $0.46 million in nearly seven months, the program suffers from several challenges.

Current challenges

Dollar dominance: The global dominance of the US dollar for international trade settlements remains a major obstacle. Businesses are accustomed to dollar-denominated transactions, making them wary of the complexities and uncertainties associated with a new system.

LC complexities: The process of issuing and managing Letter of Credit (LC) for rupee-based transactions is still being established, leading to delays and complexities for businesses.

Exchange rate volatility: Fluctuations in the exchange rate between the rupee and taka introduce an element of risk for both exporters and importers, deterring them from adopting the new system. These factors, along with businesses' reluctance to embrace the new system due to initial hiccups with LCs, have contributed to the slow uptake.

Can rupee trade boost textile and apparel business?

Despite the current challenges, stakeholders believe in the initiative's potential, particularly for the crucial textile and apparel sector in both countries. However, India's perspective differs.

Bangladesh's dollar dilemma: Bangladesh struggles with dollar scarcity, making exploring alternatives like the rupee attractive from an import cost perspective. This could potentially lead to increased imports of raw materials like fibers, yarns, fabrics, and chemicals from India.

India's focus on raw material exports: For India, this initiative might hold greater significance for raw material exports to Bangladesh, which is more valuable than finished textile imports. It is important to note that India's primary interest in the rupee trade initiative lies in expanding its exports of raw materials like fibers, yarns, fabrics, and chemicals to Bangladesh. By settling payments in rupees, India can lessen its reliance on the US dollar, which is crucial for managing its foreign exchange reserves. Facilitating trade in local currencies can strengthen economic ties between India and Bangladesh, fostering a more integrated regional market.

Success can be achieved through reduced transaction costs to begin with. Eliminating the need for currency conversion can lead to cost savings for businesses, making them more competitive. Also, faster trade settlement as Rupee-based transactions can potentially streamline the settlement process compared to dollar-based transactions, leading to quicker access to funds.

The bottomline is despite the current challenges, stakeholders remain optimistic about the initiative's potential. Addressing operational hurdles, such as simplifying LC procedures and mitigating exchange rate volatility, is crucial for broader adoption. Additionally, exploring the possibility of using Bangladeshi Taka in bilateral trade, alongside the rupee, could help address the trade imbalance between the two nations. This initiative, while facing initial hurdles, holds promise for fostering regional economic integration and potentially benefiting the textile and apparel sector in the long run. However, overcoming existing challenges and exploring further development opportunities will be critical for its success.

This March, Moscow emerged as the epicenter of the fashion universe as it played host to the highly anticipated Moscow Fashion Week (MFW) 2024. The event, showcasing the creative brilliance of over 120 designers from around the world, proved to be more than just a display of style; it represented a convergence of global talents and emerging markets, solidifying Moscow's position as a burgeoning fashion capital.

A global stage for fashion innovation

With an eclectic lineup that transcended borders, MFW featured designers not only from Russia but also from diverse countries such as Brazil, Indonesia, China, India, Turkey, South Africa, Costa Rica, Ethiopia, and Egypt. This diverse amalgamation underscored Moscow's growing reputation as an international launchpad for rising designers. Moreover, the event provided a vital platform for international labels to unveil their latest creations and forge essential business connections across continents, with coverage extending to over 50 countries, including key markets in Europe and America.

Iconic venues and celebrity presence

The allure of MFW was amplified by its prestigious venues - the historic 'Manege' exhibition hall, nestled amidst landmarks like the Kremlin and Red Square, and the striking international Russia Expo at VDNH. The event commenced with a star-studded gathering, drawing media attention and the who's who of the fashion industry. Notable personalities such as Italian film icon Ornella Muti and Chinese actress Lily Ji graced the front rows, adding to the glamour of the occasion.

Innovative designs and cultural fusion

Russian designers showcased a blend of tradition and innovation, with brands like Ermi infusing ancient costume designs with modern textiles. Meanwhile, emerging labels like Bitte_Ruhe explored unique aesthetics, diving into the realm of mermaid-inspired fashion. The inclusivity of MFW was evident as the brand Kuzina received acclaim for featuring models with Down syndrome, reflecting the event's commitment to diversity. International contributions, such as the Indonesian brand Irmasari Joedawinata's collection inspired by mystic ocean shores, further enriched the cultural tapestry of the week.

A global phenomenon

Drawing over 70,000 attendees and garnering 5 million online viewers each season, MFW continues to serve as an unparalleled platform for designers aiming to captivate a global audience. Beyond the runway presentations, the event offered a professional showroom attracting numerous boutiques, a diverse program of lectures and masterclasses, and even a festival celebrating fashion in film.

A celebration of cultural diversity

Each year, Moscow Fashion Week not only strengthens its international stature but also celebrates the vibrant tapestry of Russian and global cultures. By embracing diversity and innovation, MFW cements its place as an essential fixture on the international fashion calendar, perpetuating the spirit of creativity and inclusivity in the ever-evolving world of fashion.

Leading global bedding company, Indo Count has launched several new innovations for its customers. 

The first innovation of the company includes Platinum Touch sheets that offer an unparalleled level of softness. Inspired by the craftsmanship of luxury Italian shirt makers, this breakthrough technology combines specially treated yarns with advanced finishing techniques to produce a stunning array of colors and irresistibly soft sheets. Available in luxurious sateen, soft twill, and crisp percale, the Platinum Touch line caters to diverse preferences.

Gautam Sareen, President-Marketing, Indo Count Industries, says, the exquisite experience offered by Platinum Touch will delight customers worldwide.

In alignment with its commitment to sustainability, Indo Count introduced the Pure Earth Collection, featuring exclusive agro-based dyes across its entire bedding range. Additionally, it launched the Rekoop range of fade-resistant sheets dyed using an innovative, water-efficient process, ensuring vibrant and durable colors along with 100 per cent plant-based origins.

Another product launched by Indo Count included Fiber Color, a unique sheeting collection derived from cotton textile waste, enhancing the company's circularity efforts. Besides, Indo Count made significant investments digitalisation to streamline business processes and enhance customer service. Furthermore, the company remains committed to green energy, investing in solar power to reduce its carbon footprint.

Another milestone achieved by Indo Count includes its inclusion in the Dow Jones Sustainability Indices (DJSI) of S&P Global, reinforcing its dedication to sustainability. 

Popular clothing retailer, Primark is poised to extend its click & collect facility to more stores and markets outside of the UK, according to Paul Marchant, CEO. Unlike many competitors, Primark doesn't offer home delivery but has been experimenting with a click & collect service in 57 stores for kidswear and womenswear.

Satisfied with the trial's progress, Marchant notes that it aligns with their bricks-and-mortar strategy by driving more foot traffic to stores. He highlights the growing trend of customers filling their online baskets for collection, then adding to their purchases once in-store.

Marchant plans to expand the click & collect facility to more stores and potentially expand into new markets. However, the economics of home delivery remain unfavorable for Primark due to its low average selling price and fulfillment costs, he laments.

Owned by Associated British Foods, Primark currently operates over 400 stores across 16 countries in Europe and the United States, with a target of reaching 530 stores by 2026. Marchant plans to expand into additional continents, citing potential appeal in regions such as South East Asia, the Middle East, India, South America, and Central America.

The Indian government has set an ambitious target of achieving $10 billion in technical textiles exports by 2030.

According to recent statistics, India’s exports of technical textiles reached $2.5 billion in 2022-23, albeit experiencing a slight decline compared to the previous year. However, in the current year (April to October 2023), exports saw a modest growth of 0.5 per cent. 

Despite this positive growth trajectory, the sector faces several challenges including lack of awareness and technical expertise, inadequate testing facilities, and limited availability of specialty fibers. To overcome these obstacles, the government plans to expand the number of Harmonised System (HS) codes for technical textiles and introduce more Standard Input Output Norms (SION) for these products.

Various government schemes have been implemented to bolster the industry, including the Production-Linked Incentive (PLI) scheme covering ten technical textiles products, and the National Technical Textiles Mission (NTTM) aimed at positioning India as a global leader in the field. Additionally, with 100 per cent FDI allowed through the automatic route and technical textiles products included in schemes like Duty Drawback and the Remission of Duties and Taxes on Exported Products (RODTEP), the government is actively supporting efforts to boost exports.

Following successful showcases in Paris, Milan and New York, Indian designers are making their mark in the Russian fashion scene. The recently-concluded Moscow Fashion Week (MFW) was attended by a diverse array of designers, including those from India.

Designer duo Shalini Jaikaria and Paras Bairoliya, along with Nitin Bal Chauhan, were among the Indian designers who presented their collections at MFW. This marks their second show in Russia in recent months, reflecting the growing interest in Indian fashion in the region. 

Additionally, designers Ritesh Kumar, Naushad Ali, Gaurav Khanijo, and Shruti Sancheti showcased their handloom collections at the BRICS+Fashion Summit in Moscow.

Citing the shared appreciation for handcrafted products in both India and Russia, Bairoliya introduced his label to the Russian market. Chauhan shared his positive experience of showcasing in Moscow, highlighting the warm reception and expressing confidence in the potential for growth in the Russian market.

As India-Russia fashion exchanges gain momentum, designers are exploring collaborations with Russian brands and fashion labels. Bairoliya emphasised the active consumption of fashion in Moscow and Russia, envisioning reciprocal engagements between Indian and Russian designers.

On the other hand, Chauhan emphasised the role of fashion in strengthening India-Russia ties, foreseeing future showcases in major cities like Mumbai, Delhi, and Moscow, with collaborations likely to follow.

Sympatex, a leading membrane manufacturer, is poised to make waves in the textile industry with its innovations in sustainability and collaboration. From March 20-21, 2024, the company will take center stage at Performance Days Munich, showcasing its commitment to eco-conscious practices and strategic partnerships.

One of the key highlights of the event is Sympatex's collaboration with e.dye, a pioneer in solution dyeing technology. By unveiling three new products sourced from e.dye, Sympatex demonstrates its dedication to reducing environmental impact. Solution dyeing not only conserves water but also slashes chemical usage by up to 90 per cent and minimizes carbon dioxide emissions. Kim Scholze, CSO of Sympatex, hails this partnership as a "paradigm shift" in textile dyeing, emphasizing its role in fostering a more sustainable future.

In response to the impending quotas on recycled plastic components set by the European Commission, Sympatex introduces its Fiber2Fiber (F2F) technology as an alternative to conventional bottle recycling. The Tokyo Fiber2Fiber Spring AS laminate, composed entirely of F2F yarn made from recycled pre- and post-consumer waste, exemplifies the company's commitment to closing the textile loop. This innovation paves the way for high-quality, sustainable fabrics in the outdoor and sportswear industry.

Furthermore, Sympatex spearheads digital product development through its partnership with DMIx, a platform facilitating real-time collaboration between brands and suppliers. By leveraging technology and collaboration, Sympatex accelerates innovation while reducing costs and conserving resources, marking a significant step towards a more sustainable future.

Additionally, the company launches its "Sustainability Impact Program," aimed at empowering young designers to incorporate responsible design practices. Through knowledge exchange, workshops, and lectures, Sympatex aims to cultivate a new generation of designers committed to sustainability.

With its bold initiatives and strategic collaborations, Sympatex reaffirms its position as a trailblazer in sustainable textile innovation, driving positive change within the industry and beyond.

The Wazir Advisors, a leading financial advisory firm, released its latest textile and apparel sector performance report. The report, based on the Wazir Textile Index (WTI) and Wazir Apparel Index (WAI), reveals a mixed bag for the industry in the first nine months of FY24 (April-December 2023).

Textile sector sales decline, profit margin squeezed

The WTI, which tracks the performance of top Indian textile companies, paints a concerning picture. Consolidated sales for top Indian companies including Vardhman Textiles, Arvind, Indorama Synthetics among others declined by 2 per cent on an average in the first nine months of FY24 compared to the same period in FY23. This drop in sales is accompanied by a sharper decline in profitability. The WTI EBITDA index, a measure of earnings before interest, taxes, depreciation, and amortization, fell by a significant 19 per cent year-on-year. This suggests that textile companies are struggling to maintain profit margins despite lower raw material costs (a trend observed in previous WTI reports).

While Vardhman Textiles saw its sales growth drop 7 per cent, Arvind’s dropped 14 per cent, KPR Mills saw 18 per cent drop. At the same time companies like Trident saw 18 per cent increase in sales growth, Wespun sa a 13 per cent increase and RSWM saw 2 per cent increase.

A consolidated analysis of major expenses reveals, the average cost of raw materials remained same in nine months of FY24 compared to the same period of FY23. Average employee expenses increased 2 percentage points same in nine months of FY24. At the same time other expenses remained the same in nine months of FY24 compared to the same period of FY23.

Apparel sector sales rise, but profits plummet

Interestingly, the Wazir Apparel Index (WAI) tells a different story for India’s apparel industry. While consolidated sales for leading apparel companies grew by a modest 3 per cent in 9M FY24 compared to 9M FY23, the WAI EBITDA index witnessed a steeper decline of 27 per cent year-on-year. Moreover, the consolidated EBITDA margin for apparel companies remained unchanged compared to the previous year. This suggests that apparel companies are managing to maintain profit margins despite lower sales growth, possibly due to cost-cutting measures. The companies under review in this category were: PDS, Pearl Global Industries, SP Apparels, Gokaldas Exports, Kitex Garments. Individually, only Pearl Global saw sales growth of 5 per cent while all the other under review saw negative sales growth. 

Consolidated analysis of expenses for the top apparel players reveal the average cost of raw materials dropped by 5 percentage points in the first nine months of FY24 compared to the same period in FY23. Average employee expenses increase 3 percentage points in the first nine months of FY24. And other expenses went up 2 percentage points in the first nine months of FY24 compared to the same period in FY23. 

Overall India picture

As per the report Index of Industrial Production (IIP) first nine months of FY24, remained the same for apparel but fell by 19 per cent compared to the same period in FY23. On the other hand the average Wholesale Price Index (WPI) for textiles decreased by -7 per cent and that of apparel increased by -1 per cent compared to nine months of FY23.

India’s overall T&A exports fell by -5 per cent first nine months of FY24. At the same time China’s cotton yarn imports from India increased from $53 million in nine months of FY23 to $554 million first nine months of FY24.  

India’s T&A imports have gone down by -17 per cent nine months of FY24; home textiles imports have gone up 4 per cent nine months of FY24.  

Overall growth in Q3 but concerns remain

The report offers a glimmer of hope with data for the most recent quarter (Q3 FY24). Consolidated sales for all listed textile and apparel companies combined actually increased by 5 per cent compared to Q3 FY23. Similarly, consolidated EBITDA for the combined sector witnessed a modest increase of 1 per cent in Q3 FY24. However, the performance of the first nine months raises concerns about the long-term health of the textile sector, particularly with regards to profitability. 

In a move to curb the environmental impact of fast-fashion retailers like Shein in France, lawmakers have proposed a penalty system targeting these companies.

 Under the legislation, retailers such as Shein, known for their rapid turnover of trendy clothing items, could face fines of up to €10 ($11) per item sold in France by 2030. Initially set at €5 per item, this penalty would double by the end of the decade, capped at 50 per cent of the sale price of each piece. The bill also aims to restrict advertising by ‘ephemeral’ fashion companies.

The legislation, which enjoys broad support, seeks to promote sustainable practices within the textile industry. It follows a recent European Parliament proposal mandating that producers cover the costs of collecting, sorting, and recycling textiles sold in the bloc. Additionally, the French government plans to prohibit textile waste exports, aiming to bolster domestic textile and retail sectors.

While proponents assert the bill's intention to support local industries and hold polluters accountable, critics, including Shein, argue that it unfairly targets budget-conscious consumers. The proposed penalties would be redistributed to French manufacturers deemed ‘virtuous,’ further incentivising sustainable practices.

In a bid for transparency, online retailers selling ‘disposable’ fashion would be required to disclose the environmental impact of their products. This move responds to concerns over the significant percentage of unsold textile items in Europe, attributed largely to returns and excess inventory.

The legislation's focus on fast-fashion retailers like Shein raises questions about fairness, especially regarding the differentiation between them and more established brands like Zara and H&M. French lawmakers estimate Shein introduces around 7,200 new products daily, potentially justifying the imposition of penalties to level the playing field.

Despite the bill's emphasis on foreign retailers, concerns persist about the practices of domestic companies like Decathlon. France's fashion industry has faced challenges from global competition, leading to the decline of traditional brands against the backdrop of outsourcing to countries with lower labor and material costs.

As Shein expands its presence in Europe through physical stores, it faces scrutiny not only in France but also in the United States, where regulatory hurdles loom over its planned listing. Similar concerns have arisen around other fast-fashion giants, such as Inditex, owner of Zara, highlighting a broader industry shift toward transparency and accountability.

The recent Moscow Fashion Week (March 1-8, 2024) wasn't just about Russian design prowess. International talents brought a kaleidoscope of influences and aesthetics, highlighting the global nature of fashion today. Some of the key trends that emerged from the non-Russian designers are as analyzed below.

Eastery influences

• IRMASARI JOEDAWINATA (Indonesia): Flowy silhouettes and a muted palette reminiscent of the ocean evoked a sense of serenity.

• BÜRO UNIQUE (Samara): This collection titled "Mysterious Garden" offered a romantic take on Eastern-inspired floral motifs.

• 致画ZHIHUA (China): This brand showcased Eastern artistic traditions with winter puffers in textured materials and prints resembling watercolors.

• Anissa Aida (Tunisia): Tunisian ceramic tile patterns and indigo hues offered a unique perspective on North African design.

Sustainable fashion takes center stage

• Ivonne Garita (Costa Rica): This designer prioritizes sustainability with eco-conscious materials and timeless pieces.

• NBC brand (India): Their collection offered stylish everyday wear crafted with intricate detailing.

Reinterpreting tradition

• Anissa Aida (Tunisia): This brand explored similarities between traditional clothing silhouettes from various cultures.

• Alia Abaza (Egypt): Intricate embroidery details and ethnic motifs celebrated the designer's local heritage.

• Boys of Soweto (South Africa): This brand offered a vibrant collection with a vintage twist, reimagining classic styles.

Modern takes on femininity

• AO brand (Brazil): This brand used modern materials to reimagine historical elements like corsets and crinolines for a contemporary look.

• Geisha Designs (India): This brand's evening wear collection offered a modern take on traditional Indian sarees with a touch of sparkle.

Individuality and self-expression

• DOPE store (South Africa): This brand championed self-expression with basics, oversized pieces, and bold colors.

• Waseem Khadra (Egypt): This collection aimed to empower individuals to feel confident regardless of their profession.

Global inspiration for everyone

Designers from Turkey and India showcased a range of styles, from classic menswear by Emre Erdemoglu to statement evening wear by Geisha Designs.

Moscow Fashion Week 2024 proved that fashion is a global conversation. These international designers brought fresh perspectives and a celebration of cultural heritage to the runway, inspiring fashion enthusiasts around the world.