Driven by a heightened global concern for environmental and social impacts of the fashion industry, the sustainable fashion market is witnessing transformative trends. 

As per the report titled, The Sustainable Fashion Market, the industry is supporting initiatives like the UN Fashion Industry Charter for Climate Action, further emphasising its commitment to reduce emissions. It is witnessing the emergence of several trends including the booming second-hand market, projected to reach $84 billion, fueled by eco-awareness and facilitated by platforms like Thrift and Depop. 

The rental market, exemplified by platforms like Rent the Runway, offers access to designer fashion without ownership, although questions about transportation emissions arise.

Having dominated the sustainable fashion market in 2023, North America is expected to continue its dominance during the forecast period. North America's market expansion is driven by a surge in ethical consumerism, with the United States particularly emphasising sustainable practices in clothing, footwear, and accessories.

The Sustainable Fashion Market Report covers various aspects of the industry's sustainable practices and trends. It analysis includes the entire value chain, from raw material sourcing and production processes to distribution, consumption, and end-of-life considerations. The report digs into the evolving consumer preferences and increased awareness regarding environmental and ethical concerns, shaping the dynamics of the sustainable fashion market. It provides stakeholders with a holistic view of the sustainable fashion market by exploring its size, growth potential, challenges, and opportunities.

The Indian textiles and clothing industry, primarily reliant on domestically grown cotton, faces a tumultuous period marked by surmounting challenges. Despite grappling with issues like high capital costs, tariff barriers, and soaring power expenses, the sector traditionally leveraged competitive domestic cotton prices against international counterparts. However, the tide turned following the removal of cotton from the Essential Commodities Act in February 2007 and its subsequent inclusion on the MCX cotton trading platform. This move ushered in an era dominated by multinational cotton traders, leveraging cheaper funds and hedging facilities abroad.

MSME spinning sector squeezed by supply shortages

India's MSME spinning segment, constituting over 85 per cent of the total spinning capacity, finds itself in a perennial struggle to secure cotton, especially during the peak season from November to March. Limited working capital, compounded by exorbitant interest rates and a mandatory 25 per cent margin, hamper procurement efforts. Consequently, to bridge the deficit during the off-season (April to October), spinners resort to trade purchases and imports. The existing 11 per cent import duty on all cotton varieties except ELS cotton further exacerbates dependence on traders during lean periods, particularly when market prices fall below the Minimum Support Price (MSP), necessitating intervention from the Cotton Corporation of India (CCI).

Global cotton dynamics: Oversupply looms

Internationally, Australia anticipates a cotton production of 4.7 million bales with arrivals expected from May 2024 onwards. Meanwhile, Brazil forecasts its largest-ever cotton harvest of approximately 14 million bales, positioning itself as the world's leading cotton exporter. With crop arrivals projected from June 2024 onwards, the global market is poised for a surplus post-July 2024.

Against this backdrop, fabric, garment, and made-ups segments, typically bound by three to four-month export contracts finalized in February and March, confront mounting challenges. Increased yarn prices, driven by speculative cotton pricing, impede their ability to meet export commitments. Addressing this recurring issue necessitates the implementation of a comprehensive "National Fibre Policy" ensuring raw material security and fostering harmony across the textile manufacturing spectrum. Such a policy framework would level the playing field among industry stakeholders, ensuring sustained growth and competitiveness.

Industry voices alarm: Cotton price surge

In press release, S K Sundararaman, Chairman of The Southern India Mills’ Association (SIMA), sounded the alarm over a sudden surge in cotton prices. Within a mere 15 days, cotton prices skyrocketed by 10 to 12 pr cent, sparking panic across the textile value chain. The price of Shankar-6 variety surged from Rs. 55,300 to Rs. 62,000 per candy, intensifying industry concerns.

Sundararaman of SIMA revealed that the Committee on Cotton Production and Consumption (CoCPC) forecasts the cotton crop size for the 2023-24 season at 316.57 lakh bales, with imports estimated at 12 lakh bales. Consumption is projected at 310 lakh bales, with exports at 25 lakh bales, leaving a closing stock of 57.65 lakh bales. He highlighted a surge in mill sector capacity utilization to 80 per cent to 90 per cent, up from 70 per cent to 75 per cent, with approximately 20 lakh bales already contracted for exports. Anticipating a decline in export demand as international cotton prices align with domestic rates, he assured of ample cotton availability owing to the high closing stock.

With 215 lakh bales of cotton already in the market by February 2024, daily arrivals surpassing a lakh bales, Sundararaman noted the influx of high-quality cotton this season. However, he cautioned that the sharp price hikes primarily benefit traders over farmers, posing a significant challenge for the industry. Considering the global cotton landscape, he foresaw increased availability post-July 2024 due to heightened production in Australia, Brazil, and other countries. Expecting a subsequent softening of Indian cotton prices, he advised spinning mills against panic buying, emphasizing the comfortable supply position globally and the need for cautious procurement amidst prevailing rumors.

Call for government intervention

In a bid to stabilize prices and bolster industry competitiveness, Sundararaman urged government intervention. He advocated for a return to CCI's price stabilization policy implemented in June 2016, along with temporary exemptions from the 11 per cent import duty on all cotton varieties during April to October. Such measures, he argued, would mitigate import parity pricing and enhance export competitiveness, facilitating sustainable growth across the textile value chain.

Amidst global production surges and domestic supply uncertainties, the Indian textile industry stands at a critical juncture, clamoring for proactive policy measures to navigate the storm and emerge resilient.

Medium textile and apparel enterprises adopting the SCORE methodology witnessed a remarkable 19 per cent surge in productivity, while small enterprises experienced a commendable 15 per cent enhancement.

The initiative also yielded tangible improvements in operational efficiency. Medium enterprises reported a significant 58 per cent reduction in unnecessary movements, with small enterprises following suit with a commendable 9 per cent decrease. Moreover, rework rates saw a notable decline, with medium enterprises achieving a 21 per cent reduction and small enterprises making strides with a 12 per cent improvement. Concurrently, absenteeism rates dropped by 5 per cecnt, indicative of a more engaged and satisfied workforce.

Many enterprises established internal committees or revamped their hiring processes, leading to a noticeable uptick in LGBTQIAPN+ representation within their workforce.

The impact extended beyond individual enterprises. Brazil's premier training institution for the industry SENAI incorporated SCORE Brazil's methodology into its training programs. This integration solidified the ethos of responsible business practices within Brazil's vibrant apparel sector, setting a precedent for sustainable and inclusive growth in the region.

The Sustaining Competitive and Responsible Enterprises (SCORE) methodology was introduced jointly by the Brazilian Textile and Apparel Industry Association (Abit), the Brazilian Association of Textile Retail (ABVTEX), the National Service of Industrial Training (SENAI) São Paulo, and the International Labor Organization (ILO) Country Office for Brazil in 2023. This groundbreaking approach targeted Small and Medium Enterprises (SMEs) in the metropolitan area of São Paulo, Brazil's bustling industrial hub.

SCORE Brazil brought tailored modules—Work Cooperation and Responsible Enterprises—developed by the ILO to the forefront of the garment sector, customising them to suit the local landscape. Over the course of the initiative, 67 workers and managers from 15 SMEs participated in rigorous training activities. 

Brazilian textile and fashion companies made a notable mark at the latest Première Vision Paris edition, held from February 06-08, buoyed by the support of Texbrasil, a program fostering the internationalisation of Brazil's textile and fashion industry through collaboration between ApexBrasil and Abit.

This year witnessed the largest Brazilian delegation in 14 years, comprising esteemed brands like Atelier Lucius Vilar, Brand Têxtil, Ecosimple, Estúdio Rocha, Finileather, Innovativ, Lúdico Estampas, Moltec, Natural Cotton Color, Nina Galle, Nomad Studio, Nova Kaeru, Oficina Caramelo, Savyon, Stampa Studio, Studio Icertain, and Studio Paraizo.

The event yielded promising outcomes, with over 700 new connections established and sales exceeding $728,000 over the course of three days. Notably, business expectations soared to an impressive $6.5 million for the year. Carina Prieto, Creative Director, Lúdico Estampas, highlighted the invaluable connections forged with clients from key markets such as Russia, the United States, England, and France.

Lilian Kaddissi, Executive Superintendent -Strategic Projects, Abit, emphasised the positive reception from both brands and buyers, dubbing it the best February edition in five years. Buyers exhibited a heightened willingness to engage with Brazilian companies, signaling a prosperous outcome for the delegation.

The Brazilian presence at the event was further underscored by its commitment to sustainability, a central theme that garnered significant attention and recognition. 

With 30,340 visitors and 1,180 exhibitors, sustainability emerged as a focal point, echoing the growing global interest in eco-conscious practices within the textile and fashion industry.

YKK Corporation has achieved a significant milestone, securing the highest "A List" rating in the 2023 Climate Change survey conducted by global environmental disclosure nonprofit, CDP. 

Out of over 21,000 companies evaluated across climate change, deforestation, and water security criteria, only just under 400 (2 per cent) earned a spot on the prestigious A List for their high-quality environmental data disclosure.

The recognition highlights YKK's unwavering commitment to sustainability, as evidenced by its ambitious Sustainability Vision 2050. Aligned with the United Nations' Sustainable Development Goals, this initiative outlines rigorous targets across five key areas, including climate change. 

YKK aims to achieve climate neutrality by 2050, aligning with the Science Based Targets initiative's 1.5°C goal. By 2030, the company aims to slash emissions significantly compared to 2018 levels.

Minoru Maeda, Vice President of the Environment & Safety Management Department, underscored YKK's dedication, rooted in their corporate philosophy of the Cycle of Goodness. Maeda emphasized YKK's implementation of energy-saving measures, adoption of renewable energy, and transparency enhancements through third-party audits.

Collaborating with stakeholders, including customers and suppliers, YKK is committed to reducing greenhouse gas emissions across its value chains, intensifying efforts to minimize environmental impact.

The US apparel industry is undergoing a significant paradigm shift, driven by evolving consumer preferences, changing global dynamics, and technological advancements. Gone are the days of solely relying on low-cost, mass-produced garments from traditional suppliers like China. Consumers are demanding more, pushing the industry towards sustainability, ethical sourcing, and diversification.

There are various reasons for this transformation. These include shifting consumption patterns, evolving buying behaviour, choosing experiences over ownership among others.

A changing consumer 

Today's consumers are increasingly concerned about sustainability, ethics, and transparency in their purchases. This is driving demand for eco-friendly materials, ethical production practices, and brand’s promoting social responsibility states McKinsey & Company ‘State of Fashion 2022’ report. Millennials and Gen Z prioritize ethical and sustainable practices. Studies by McKinsey & Company show 60 per cent of global consumers are willing to pay a premium for sustainable products.

Meanwhile fast fashion is facing backlash due to its environmental impact and fleeting trends. Consumers are seeking clothing that reflects their individual style and values, leading to a rise in personalized shopping experiences and on-demand production states Deloitte’s ‘Fashion & Apparel - Industry Outlook 2023’.  Demand for ethical and sustainable production practices is prompting brands to diversify sourcing and prioritize eco-friendly materials. As per Euromonitor International ‘Apparel: United States, 2023’ millennials and Gen Z prioritize experiences over material possessions. This translates to a rise in clothing rental services, subscription boxes, and resale platforms, impacting traditional ownership models. 

Table: Shifting consumption landscape

• Source: Total US apparel imports data: OTEXA

• Import source shift data: World Trade Organization

Online shopping has revolutionized the buying experience, fostering personalized recommendations and faster delivery, impacting import patterns. Trade tensions and supply chain disruptions are driving some manufacturers to shift production closer to the US market.

Evolving buying behavior

As per Statista’s ‘Digital Commerce Share of Total Retail Sales in the United States 2023’ e-commerce is the primary channel for clothing purchases, growing at a faster rate than physical stores. Mobile shopping and social media platforms are increasingly influencing buying decisions. Brands are bypassing traditional retail channels and selling directly to consumers, offering greater control over brand image and profit margins. This trend is prevalent in athleisure, streetwear, and sustainable fashion brands. Also, as per McKinsey & Company ‘The Age of Personalization’ retailers are leveraging customer data to tailor marketing campaigns, product recommendations, and shopping experiences, leading to more personalized interactions. 

Category-specific trends

A look at categories reflects the pattern is similar to many other markets including Europe. In menswear for example, athleisure and casualwear segments is growing, increasing focus on comfort and performance. In women’s wear the demand is for versatile pieces, athleisure, and sustainable materials. Rise of activewear and modest fashion. As for kid’s wear the focus is on comfort, functionality, and sustainability. Also, there is growing demand for gender-neutral clothing and ethical production. 

Knitwear continues in popularity especially with demand for athleisure and loungewear with increased focus on natural and recycled fibers. In denimwear the shift is towards sustainable production and demand for comfortable and versatile styles. There is growing demand for performance outerwear and sustainable materials like recycled down. 

A look at various segments shows, premium segment continues as consumers are willing to pay more for quality, ethical production, and unique designs. Sustainability credentials are increasingly important in this segment. In value segment, price sensitivity remains high, but demand for quality basics persists. This segment is still sizable, but competition is fierce due to rising raw material costs and labor wages. Value retailers are focusing on innovation and private label offerings to differentiate themselves. Meanwhile, resale platforms, rental services, and subscription boxes are gaining traction, representing new segments within the market.

Table: US apparel imports in volume

Source: U.S. Census Bureau, OTEXA

The bottomline is paradigm shift in apparel imports reflects a changing consumer landscape. As sustainability, ethics, and personalization become priorities, the US is reshaping its wardrobe. The future holds exciting possibilities for brands and consumers alike, with a focus on innovation, responsibility, and a more conscious approach to fashion.

The ongoing ‘Bharat Tex’ exhibition highlights regional varieties in the textile industry at the ‘Vastra Katha’ show at the Bharat Mandapam in Delhi. 

The ‘Vastra Katha’show unfolds narratives from textile hubs like Panipat, highlighting regional varieties from Uttar Pradesh to Tamil Nadu. It highlights the Tangaliya creations of Rathod Baldevbhai. 

Amongst displays of renowned designers, stories emerge of tribal women from Madhya Pradesh, seamlessly blending organic farming with textile production, bridging tradition with contemporary demands.

More than just an exhibition, Bharat Tex 2024 is a celebration of India's textile heritage, where threads of the past weave into the fabric of the future, showcasing the nation's enduring creativity and resilience. Culminating in a fusion of traditional heritage and modern fashion, the exhibition echoes the ethos of 'local going global'. 

Grand textile event receives praise from industry leaders

The Polyester Textile Apparel Industry Association (PTAIA) expresses sincere appreciation to Prime Minister Narendra Modi, Union Textile Minister Piyush Goyal, Minister of State for Textile Darshana Jardosh, Textile Secretary Rachna Shah, Textile Advisor Shubhra, and the entire Textile Ministry, including Chairman SRTEPC, for their instrumental role in organizing Bharat Tex 24. This significant event, hosted in Delhi from February 26-29, 2024, marks a pivotal milestone for India's textile sector.

Positive reception from exhibitors and global brands

During the past three days, RK Vij, Secretary-General of PTAIA, toured the stalls of Bharat Tex 24, where he was met with overwhelmingly positive responses from attendees. Supported by the Ministry of Textiles, the event received commendation from international brands and buyers in attendance, serving as a platform to showcase India's textile excellence. The array of capabilities and innovations on display left a lasting impression on visitors, reaffirming India's prominence in the global textile arena.

India: A rising sourcing destination

Global buyers left impressed by the comprehensive display of yarns, fibers, fabrics, and accessories, affirming India's potential as a sourcing destination. Many expressed keen interest in procuring from India, recognizing the country's ability to deliver high-quality products. Bharat Tex 24 served as a catalyst in altering perceptions, positioning India as a premier hub for textile sourcing.

Vij's interactions with global buyers reinforced India's strengths and ongoing progress in meeting global demands. He assured stakeholders of India's capability to fulfill the requirements of global brands, reflecting confidence in the industry's trajectory.

Optimism for future editions

Exhibitors view Bharat Tex 24 as an instrumental platform for showcasing India's prowess on the global stage. Their confidence in the event's future editions reflects the industry's optimism and anticipation for further growth and recognition.

Textile exhibitions like Bharat Tex 24 provide invaluable opportunities for aspiring textile students. The exposure to diverse products and developments in yarns and fabrics enriches their understanding, transcending the confines of classroom learning.

A testament to Make-in-India initiative

The success of Bharat Tex 24 stands as a testament to India's Make-in-India initiative, resonating with the collective efforts of the textile fraternity. Their dedication and commitment have transformed the exhibition into a resounding success, showcasing India's potential on the global textile landscape.

In conclusion, Bharat Tex 24 emerges as a beacon of India's textile prowess, uniting industry leaders, global brands, and aspiring talent in a celebration of innovation and excellence. As the curtains draw on this edition, anticipation mounts for the next installment, promising even grander achievements for India's textile industry.

Influenced by factors including US stock levels, export demand, and global economic conditions, the global cotton market is expected to remain volatile in future 

The market experienced notable fluctuations recently as it initially surged to reach the 5 cent limit before retreating slightly by midday. Despite this pullback, futures managed to trade 200 points higher for the day, with May contracts surpassing the $1 benchmark. However, new crop prices witnessed a decline, dropping by up to a penny. This market activity stems from the tightening of US stocks combined with sustained export demand, prompting a price increase to balance out demand dynamics.

A critical indicator of global cotton prices, the Cotlook A Index decreased by 80 points, settling at 100.70 cents. Meanwhile, the Adjusted World Price (AWP) of cotton increased, jumping 168 points to reach 75.12 cents. ICE certified stocks were reported at 997 bales. These figures underline the volatility within the cotton market, driven by various economic factors such as supply constraints and export demand.

Fluctuations in cotton prices have significant implications for both traders and consumers. Traders face both risks and opportunities in the current market conditions, depending on their position and strategy. Consumers, especially in the textile industry, may encounter increased costs as raw material prices like cotton escalate. These cost pressures could potentially be passed on to final consumers, impacting the overall pricing of cotton-based products.

Brandix Apparel India (BAI) has bagged the prestigious ‘Best HR Practices’ award at the CITI Textile Sustainability Awards 2024, organised by the Confederation of Indian Textile Industry (CITI). This esteemed accolade underscores BAI's unwavering dedication to cultivating a sustainable and inclusive workplace ethos.

During the ceremony held at the Bharat Tex Expo 2024, Suchira Surendranath, Director – Strategy & Investments, Brandix India, accepted the award from Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, Textiles, Government of India, alongside Darshana Jardosh, Minister of State for Railways & Textiles, Government of India.

Surendranath says, Brandix considers its associates as its most valuable assets. The company cultivates an environment where they can flourish both professionally and personally. This award resonates with the company’s enduring dedication to sustainability and employee well-being.

Brandix Apparel India has consistently championed initiatives aimed at augmenting employee satisfaction, championing diversity and inclusion, and safeguarding the welfare of its workforce. Notably, the company boasts an exemplary talent acquisition and induction program, actively engaging with academic institutions to recruit individuals from the local communities surrounding the Andhra Pradesh region.

Furthermore, Brandix has curated comprehensive training programs designed to perpetually enhance the skills and knowledge of its employees, thereby equipping them with the requisite tools to excel in their respective roles.

The recognition bestowed upon Brandix underscores the company's holistic approach to human resource management, which transcends conventional paradigms by prioritising sustainability, inclusivity, and continuous employee development.

Moving forward, Brandix remains steadfast in its commitment to pioneer initiatives that not only elevate organisational performance but also empower its employees to realise their full potential