The Export Development Board (EDB) collaborated with Sri Lanka Missions in the US to organise the Sri Lanka country pavilion at the Sourcing at Magic Exhibition in Las Vegas, US. This event featured the participation of 11 esteemed Sri Lankan companies.

One of the globe’s largest fashion marketplaces, ‘Sourcing at Magic Las Vegas’ offers a dynamic fashion experience. The fair is held biannually in February and August at the Las Vegas Convention Centre and serves as a hub for fashion enthusiasts and industry professionals alike.

The Sri Lanka pavilion showcased the diverse offerings of renowned companies such as Timex Garments, Aitken Spence (Garments), Eskimo Fashion Knitwear, Trendywear Adhikarigama, Nobleswear, Garment Services Meegoda, Colmans Garments, Nasna Impex Garments Industries, Rainco Industries and Insomnia. 

These companies highlighted and promoted a broad spectrum of apparel products to the US market, including ladies' dresses and blouses, active wear, work wear, men’s shirts, underwear, children's wear, and raincoat capabilities.

Indika Liyanahewage, Chairman, Sri Lanka Garment Exporters Association, actively participated in the country focus session held concurrently with the exhibition. His presence aimed to shed light on Sri Lanka’s commendable strides in sustainable and ethical manufacturing practices within the garment sector, showcasing the country's ongoing improvements and commitment to responsible production.

In the midst of a retail landscape characterised by dwindling consumer foot traffic and cautious inventory management, India's apparel retail sector is witnessing a strategic shift among major players like Aditya Birla Fashion & Retail and Arvind Fashions. Led by influential figures such as Ashish Dikshit and Shailesh Chaturvedi, these companies are moving towards minimising discounts to safeguard profit margins, signaling a deliberate focus on profitability amidst challenging market conditions.

Following a surge in activity during the post-pandemic recovery phase, the apparel retail sector has encountered a notable slowdown, prompting industry leaders to reassess their strategies. Ashish Dikshit, Managing Director, Aditya Birla Fashion & Retail, revealed the company's decision to reduce reliance on discounts, a move that notably bolstered margins in the recent quarter. Similarly, Arvind Fashions has opted to forgo early end-of-season sales in favor of full-priced sales and increased investments in marketing, resulting in improved profitability.

The deliberate reduction in discounting has not only strengthened the bottom line for these retailers but has also catalysed a broader trend towards premiumisation among consumers. Aditya Birla Fashion & Retail witnessed a significant expansion in its EBITDA margin, reaching 14.5 per cent, while Arvind Fashions reported an 18 per cent growth in EBITDA last quarter, attributed to disciplined discounting policies and effective inventory management. This strategic shift reflects a nuanced understanding of market dynamics and consumer behavior, with retailers prioritizing brand equity and product value over short-term sales boosts.

Despite initial concerns, consumer response has been largely positive, with companies like Shoppers Stop's Intune reporting higher than anticipated full-price sell-through rates. This evolving consumer mindset, where value and brand reputation outweigh the allure of discounts, signals a maturing retail market embracing sustainable purchasing practices. However, questions persist regarding the sustainability of this trend amidst ongoing economic pressures and evolving consumer expectations.

As retailers navigate through this period of adjustment, the industry stands at a critical juncture. The move towards reduced discounting and enhanced profitability may herald a new era in retail, one that balances consumer desires with financial prudence. Yet, maintaining this delicate equilibrium amidst an ever-changing market landscape poses significant challenges, making the road ahead both intriguing and uncertain.

Despite relentless pressure from the US and its Western allies since 2020, the Xinjiang's cotton industry continues to thrive, says Liang Yong, Member, CPPCC and Director, Xinjiang Cotton Industry Development Leadership Office.

Highlighting the industry's sound development and rising competitiveness, Yong says, despite a decline in exports to the US, China remains a global leader in cotton consumption, production, and importation.

Tech innovation and large-scale cultivation have propelled Xinjiang's cotton industry forward. Mechanisation rates for harvesting have surged to 89 per cent in 2023, up from 21 per cent in 2014. Moreover, Xinjiang's cotton yield per unit area rivals that of top-producing countries like the US and Australia, reaching 143.85 kilograms per mu. In 2023, Xinjiang accounted for 91 per cent of China's cotton output and a significant portion of global production.

Looking ahead, Liang aims to establish a homegrown quality tracing and certification system while fostering domestic cotton brands. The Xinjiang cotton industry is also expanding into Belt and Road Initiative (BRI) partner markets to stabilise the global textile supply chain. Liang's proposal for a joint cotton market with Shanghai Cooperation Organisation (SCO) members seeks to counter US-led measures and enhance China's cotton industry influence globally.

Xinjiang's strategic geographic position, along with policy support and relatively low production costs, positions it as a potential hub for China's western textile industry cluster. With the recent launch of the Xinjiang Pilot Free Trade Zone (FTZ), the region anticipates increased trade opportunities. Textile exports from Xinjiang surged by 34.6 per cent to 107.59 billion yuan in 2023.

Furthermore, Xinjiang aims to become a core area of the Silk Road Economic Belt, leveraging the Belt and Road Initiative to enhance regional cooperation and facilitate China's westward opening-up process. With its 20 border ports and pivotal role in China-Europe freight transportation, Xinjiang anticipates accelerated development in the next five years.

Sri Lanka's apparel industry is making strategic moves to stay relevant amid impending legislative changes affecting the global fashion and apparel sectors. 

Collaborating with organisations like GS1, the Asian Development Bank (ADB), and the International Financial Reporting Standards (IFRS), Sri Lankan manufacturers are embracing transparency and traceability initiatives.

In a proactive effort, Sri Lanka's apparel manufacturers have announced the implementation of QR code tags on all apparel items. These QR codes will provide stakeholders and consumers with comprehensive information, including details about the brand, materials used, care instructions, supply chain traceability, and end-of-life guidelines.

Nick Allison, GS1 New Zealand emphasised the enhanced capabilities of these QR codes, which will offer dynamic data updates on apparel items. This initiative aims to meet evolving Environmental, Social, and Governance (ESG) information requirements, thereby facilitating export market access.

Despite a slight decline in apparel exports from Sri Lanka in 2023 compared to the previous year, optimism remains high. The Ceylon Chamber of Commerce reported that 39 per cent of Sri Lankan exporters anticipate moderate growth in the country's economy in 2024.

The decision to implement QR code tags was not driven by legislative mandates in Sri Lanka but rather by a forward-looking approach to align with global trends. With increasing regulations in major markets like the United States, United Kingdom, and European Union focusing on supply chain transparency, Sri Lanka's initiative positions it ahead of regional competitors.

For instance, regulations such as the US Uyghur Forced Labor Prevention Act (UFLPA) and the UK Modern Slavery Act highlight the growing importance of supply chain traceability and accountability. In Europe, ongoing debates surrounding the EU's Corporate Sustainability Due Diligence Directive (CSDDD) underscore the urgency for companies to demonstrate responsible sourcing practices.

By proactively addressing these regulatory trends, Sri Lanka's apparel industry aims to enhance its global competitiveness and attractiveness to international brands. Initiatives like digital passport-style tags, already adopted by brands like Mara Hoffman and Coach, signify a broader industry acknowledgment of the importance of supply chain transparency.

Signaling a concerted effort to integrate sustainable textile solutions into Athleta products, Gap Inc. and Ambercycle have unveiled a groundbreaking partnership. 

Known for its commitment to sustainability and inclusivity, Athleta is collaborating with Ambercycle to revolutionise its product offerings. The partnership will include the integration of Ambercycle's cycora regenerated polyester to replacing traditional polyester in Athleta's lineup. This bold move positions Athleta as a pioneer in embracing cycora on a large scale, commencing in 2026.

With a focus on designing apparel tailored for women by women, Athleta's range prioritises inclusivity and functionality, catering to various aspects of women's active lifestyles, from yoga and training to travel and recovery.

Chris Blakeslee, CEO, Athleta, emphasises the brand's commitment to sustainability and quality. He says, the brand is dedicated to reducing environmental impact by integrating recycled materials like cycora into its products. This not only aligns with the brand’s core values but also upholds its uncompromising standards of quality.

Ambercycle's innovative molecular regeneration technology is instrumental in transforming discarded polyester into cycora, a high-performance material that rivals virgin-grade polyester in quality while mitigating greenhouse gas emissions and reducing dependence on landfilling or incinerating end-of-life textiles.

Shay Sethi, CEO, Ambercycle, adds, together, the companies are propelling the circular fashion movement forward.

Gymshark has recently introduced its upscale athleisure line named 'everywear' in collaboration with its inaugural wholesale partner, Selfridges.

This exclusive collection finds a permanent home within Gymshark's retail space on Level 3 of the Womenswear Body Studio and Level 1 of the Menswear Designer Street Room at Selfridges Oxford Street. Additionally, it is accessible both online and at Selfridges Trafford in Manchester. Until early to mid-April, the department store will solely carry these items.

Traditionally, Gymshark has solely released products through its initial physical retail outlet and its official website. However, this summer, plans are underway to inaugurate a second Gymshark location.

The ‘everywear’ range epitomises the ultimate leisure attire by blending sportswear with contemporary lifestyle trends. With lifting-inspired technical elements, on-trend muted tones, and luxurious heavyweight fabrics, it exudes a timeless streetwear aesthetic.

Noel Mack, Chief Brand Officer, Gymshark says, during the collection's conceptual stages, the brand aimed to unveil it in a location as equally captivating.

Bosse Myhr, Director-Menswear & Womenswear, Selfridges, adds, Gymshark enriches the company’s brand basket and offering customers access to cutting-edge activewear.

Cascale, formerly known as the Sustainable Apparel Coalition, has unveiled the latest iteration of the Higg Brand and Retail Module (BRM), a pivotal component of the Higg Index suite of tools. This update underscores Cascale's unwavering commitment to advancing and refining sustainability standards within the textile, apparel, and footwear sectors.

The Higg BRM serves as a primary framework tailored specifically for brands and retailers to assess and enhance their Environmental, Social, and Governance (ESG) performance. By evaluating 11 critical impact areas across global value chains, the tool promotes a comprehensive approach to sustainability management.

Developed in collaboration with Worldly, a leading platform for environmental and social impact data in the apparel and footwear industries, the Higg BRM 2023 update introduces subtle yet significant enhancements. These include refined guidance, integration of new social metrics, and an adaptive framework aligned with the swiftly evolving sustainability landscape.

Maravillas Rodriguez Zarco, senior director of Higg Index Strategy & Operations at Cascale, emphasized the community-driven nature of the Higg BRM, positioning it as a beacon guiding industry stakeholders toward sustainable practices. Zarco highlighted its compatibility with prominent sustainability frameworks like the Textile Exchange's Material Benchmark and the ZDHC Brands to Zero program.

The updated Higg BRM offers several benefits, including streamlined corporate sustainability strategies, avoidance of redundancy in sustainability initiatives, and support for reporting obligations. Notably, upgraded benchmarking capabilities provide a holistic view of companies' performance, enabling identification of emerging trends and avenues for improvement.

Cascale's journey to enhance the Higg BRM involved an extensive discovery phase in 2022, including consultations with industry stakeholders and evaluation of multiple assessment frameworks. Collaborations with key industry players such as Textile Exchange, ZDHC, Fair Wear, and STTI informed the development process, resulting in a refined, industry-specific ESG framework.

A verification pilot conducted in 2023 with Cascale member brands and verifier bodies underscored the organization's commitment to data accuracy and industry relevance. To facilitate understanding and adoption of the updated tool, Cascale will host a members-only webinar, showcasing key features and outlining future enhancements.

The launch of the enhanced Higg BRM signifies a pivotal step in advancing sustainability within the fashion industry, empowering stakeholders to drive meaningful change towards a more sustainable future.

The recently concluded Bharat Tex 2024, held from February 26th to 29th in New Delhi, lived up to its name as the "largest textile event in 2024." The mega event, organized by a consortium of textile export promotion councils and supported by the Ministry of Textiles, served as a vibrant platform showcasing India's textile prowess and fostering global connections.

A showcase of innovation

One of the event's key highlights was the plethora of exciting product launches from various textile and apparel companies. Here's a glimpse into some of the innovations that stole the show

Sustainability in focus: Eco-consciousness remained a central theme, with several companies showcasing sustainable fabrics and technologies. A leading manufacturer Nature Textiles unveiled its new line of organic cotton clothing, emphasizing traceability and ethical sourcing. GreenFab presented their innovative recycled polyester fabrics.

Tech meets textiles: The event witnessed the convergence of textile and technology, with companies introducing smart fabrics equipped with features like temperature regulation and self-cleaning properties. SmartWeave launched their range of smart clothing integrated with temperature regulation technology, while TechTex showcased their advancements in functional fabrics for athletic wear.

Fashion forward: Leading fashion houses like Bombay Dyeing and Fabindia presented their new collections, drawing inspiration from both traditional Indian textiles and contemporary trends.

Handloom heritage: Many companies presented their collections that blended traditional weaving and embroidery techniques with contemporary designs, catering to the growing demand for authentic yet modern textiles. Several handloom companies, including those specializing in iconic weaves like Kanchipuram silk and Pochampalli Ikat, showcased their exquisite craftsmanship, highlighting the rich heritage of Indian textiles.

Building collaborations

Bharat Tex 2024 wasn't just about product launches. The event facilitated crucial business interactions and collaborations as well.

Government-to-Government (G2G) meetings fostered international trade partnerships and explore potential collaborations in the textile sector. For example, the Textiles Committee, under the Ministry of Textiles, Government e-Marketplace (GeM), Ministry of Commerce and Industry, and Standing Conference of Public Enterprises (SCOPE), Department of Public Enterprises, signed a MoU to promote upcycled products made from textile waste and scrap. Through these MoUs, GeM will collaborate with stakeholders in the upcycling ecosystem, particularly underserved seller groups, to enable them direct market connections in public procurement, without middlemen, via #Vocalforlocal GeM Outlet Stores. These businesses will feature recycled things manufactured from textile waste and trash.

 Business-to-Business (B2B) networking sessions provided a platform for companies to connect, share ideas, and explore potential business opportunities. Knowledge sharing sessions saw industry experts and thought leaders conducting insightful sessions on various topics, including sustainability practices, technological advancements in the textile industry, and future market trends.

Bharat Tex 2024 concluded with a sense of accomplishment, having brought together stakeholders from across the textile value chain. The event served as a catalyst for innovation, collaboration, and growth, solidifying India's position as a global leader in the textile industry.

Marking the third consecutive month of year-on-year increase, Pakistan's textile exports grew by 20 per cent Y-o-Y to $1.41 billion in February this year as compared to $1.18 billion in the same period last year, shows provisional data released by the All Pakistan Textile Mills Association (APTMA). 

However, Pakistan’s textile exports for the first eight months of the fiscal year 2023-2024 declined by 1per cent to $11.15 billion.

Pakistan’s monthly textile exports also declined by over 3 per cent compared to January, which recorded $1.46 billion in exports. 

Textiles form a significant portion of Pakistan’s exports as they enable the country to address foreign exchange shortages. 

According to the latest data from the Pakistan Bureau of Statistics (PBS), textile group exports decreased by approximately 2.99 per cent during the first seven months (July-January) of the current fiscal year, amounting to $9.738 billion compared to $10.038 billion during the same period in 2022-23.

In a letter addressed to Muhammad Ali, Caretaker Minister for Energy, APTMA urged authorities to eliminate cross-subsidies to nonproductive sectors. The association warned that without urgent corrective measures, over 50 per cent of firms in the textiles and apparel sector could cease operations in the coming weeks.

The association highlighted the continuous erosion of Pakistan's textiles and apparel exports in international competitiveness due to increasing energy prices, which are, on average, over twice those in competing countries. It urged authorities to address this issue promptly.

Pakistan's hosiery exports to China surged by 45 per cent in 2023, as per a report by Gwadar Pro

Pakistan’s hosiery and cotton footwear exports combined surged by 51 per cent during the year to $11.55 million compared to $7.61 million in 2022, notes Muhammad Irfan, Trade and Investment Counselor, Consulate General of Pakistan.

This surge not only underscores the strengthening trade ties between the two nations but also highlights Pakistan's growing prominence in the global textile market, adds Irfan. 

According to him, the growth could be attributed to several factors including supply of good quality products and cost-effectiveness.  In 2023, Pakistan exported hosiery products worth over $14.32 million to China, compared to $9.81 million in 2022.

The participation of the largest Chinese delegation in Texpo, one of Pakistan's largest textile exhibitions held last year, also facilitated this increase in Pakistan's exports to China. The upcoming Texpo exhibition in 2024 is expected to fuel further growth in bilateral trade between the two countries. .

The momentum gained from this surge will enable Pakistan to capitalise on the evolving dynamics o international trade and enhance its economic standing on the global stage, avers Irfan. The surge in hosiery exports to China will boost the country’s export earnings, bolster foreign exchange reserves, create employment opportunities, and stimulate growth in the domestic textile sector, he adds.