The just published report ‘The US $100 bn Investment Opportunity’ by Wazir Advisors highlights that for India’s textile and apparel sector to realize its potential of $350 billion by 2030, investments worth $100 billion would be required. This growth will see increased demand across the value chain of textiles in India – fiber, spinning, weaving and knitting, dyeing, washing, printing, finishing, made ups and retail. The potential target of $350 billion by 2030 should result in ad additional $197 billion in market value – the domestic market value will contribute $140 billion whereas exports will add a further $ 57 billion.

Investing to increase production capacity

The Report points out the numbers. It says, investments will be required to increase spindle capacity of 23 million spindles by 2030, which is an increase of nearly 40 per cent of the current number of spindles available. In weaving process, around 63,000 extra shuttle-less looms have to be introduced while in knitting process, 45,000 machines are required. 4.2 million sewing-machines will have to support garmenting and made ups segment to reach its target and older machines would need replacement annually.

The $100 billion worth of investments will ensure the increasing market demand can be catered to and replacement of old machinery. This investment includes the entire project cost including land, building, machinery, miscellaneous fixed assets, pre-operatives, etc.

From a socio-economic prospect, by 2030, with this kind of investment, the Indian textile and apparel manufacturing sector will employ an additional 15 million people. The readymade garment sector will attract the lion’s share of this investment as India is tapping the huge global opportunity it represents as well as the prolific rise in domestic demand that has kept it buoyant so far. Technical textile is another niche that India is paying attention to as demand in the domestic market as well as on the international ones surge. Further corresponding investments in the value chain in spinning, knitting, weaving, and processing will be required to balance the supply chain.

Machinery investment worth $50 billion

Out of the projected $100 billion investment by 2030, half will be on machinery – new and replacements. Whilst investment in adding new machinery would be around $40 billion; $10 billion would be used to replace old ones. Here technical textile machinery would be around $11 billion, spinning $10 billion, processing $9 billion, garmenting around $7 billion, man-made fibers $6 billion, weaving $3 billion, knitting at $2.6 billion and made-ups at $1.3 billion. The highest investments in machinery are expected in the technical textiles, spinning, and processing segments as they are more capital-intensive than garmenting where the higher investments will be in buildings and miscellaneous assets.

The projection has a lot of significance. For domestic and international investors, the buoyancy of the textile and apparel sector is an opportunity for higher returns on investments made. For textile and apparel machinery manufacturers, it represents an increase in production and whilst domestic manufacturers can increase their plant capacity, international ones can open operations in India. Furthermore, they can take advantage of the Indian government’s PLI schemes that is being supported through tax holidays and easy processing of starting manufacturing processes.

Year 2022 turned out to be one of exceptional challenge for the textile and apparel sector in Bangladesh and Pakistan. The challenge has started taking political overtones in Bangladesh as the country’s next general election is in 2023, adding pressure on the current government’s leadership as the main opposition rams into the electorate with the issues of inflation, high rates of unemployment and weakening of the economy. As Pakistan is in an internal political turmoil with no clear sight of the next election, the issue may not have become electioneering slogan but is hitting the fragile economy hard.

For Bangladesh all eggs in a basket

Bangladesh was the poster boy of an underdeveloped nation that dramatically turned its fate around by focusing on exports of RMG products worldwide, to the extent of displacing China as the number one exporter to Western markets. Such was its success in turning things around that its economy took off and it started the formal transition from being an underdeveloped to a developing nation. Well thought out investments were made to further strengthen their dominance in textile and apparel exports and Bangladesh was sitting pretty. Global buyers actually preferred relying on Bangladesh for an undisrupted supply during the pandemic-induced lockdown as it was one of the few nations that had its factories operating during Covid-19.

However, from mid-2022, things took a sharp turn and not in a good way. Bangladesh’s traditional export markets are experiencing a shift in purchase patterns of clothing – the prolonged war between Russian and Ukraine has had severe consequences in Europe and the UK. Devastating hike in energy prices as winter has set in, crippling mortgage and interest rates and overall high inflation in essential commodities. The early 2022 scenario that reflected the end of pandemic and saw enthusiasm in apparel purchase in the UK and the EU, has dropped significantly as consumers have deprioritized non-essentials.

As a spokesperson of the Bangladesh Garment Manufacturing Association (BGMEA) points out, clothing budgets in afflicted economies has been squeezed, leading to the slowing down or outright cancellation of orders to Bangladeshi apparel manufacturers. Some international retailers have asked for production to be delayed by at least three months or stop manufacturing all together. This has hit local manufacturers hard as they had already invested in fabric and on completion their inventories are rising, filing up warehouses with clothes that can’t be exported any more.

The beleaguered nation had a good run between June 2021 and 2022 as it exported RMG worth $42.6bn and textiles worth $2.6bn. The silver lining in this critical time is that it secured a $2.3bn credit facility from the IMF and another $1.3bn from its Resilience and Sustainability Facility, meant to help poorer countries address climate change and other long-term challenges. Of course, Bangladesh is not currently facing a liquidity crisis like Sri Lanka and Pakistan but its foreign exchange reserves are depleting against the strengthening dollar and the country is facing energy and essential commodity price crisis, leading to power outages affecting production as well as paying higher prices for raw material.

Bangladesh has realised that whilst it may be the second strongest exporter of apparel to the world, its vulnerability has been exposed because in the realm of textiles and apparels, any slight change in economies affects non-essential products first and the most.

Pakistan sees an addition to general woes

The thriving textile export sector in Pakistan is in the doldrums in this highly volatile and foreign exchange strapped economy, having experienced a major low for 17 months since May 2021. The sector experienced an 11 per cent drop in October this year with textile exports valued at $1.36 billion compared to September’s $ 1.53 billion. Year-on-year, the statistics show a 15.2 per cent drop from $1.6 billion in the same month last year.

The reason is the same as the one Bangladesh is facing but worsened due to extraordinary devaluation of the Pakistani currency, leading to very high energy and raw material costs. At this time, factories are closing one by one as they don’t have continuous supply of electricity to operate production lines, the energy bills are staggering, pushing up cost of production and the inability to source raw material as not only is it expensive but many banks are refusing to issue LCs to importers in the country.

MIM will be held in Morocco, December 14 to 16, 2022.

This international trade show for textiles and garments has been the meeting place for fashion and textile professionals in Morocco since 2003 and is a strong platform for professional meetings by offering a diverse and inclusive experience. The show will focus on innovation and environmental sustainability to highlight Moroccan textile and apparel industry knowhow. The edition will bring together the entire textile and clothing industry in one place for three days under the theme dayem, which means sustainable in Arabic. The Moroccan textile and apparel industry is engaged in a process of sustainable development which integrates environmental, economic and social aspects throughout the value chain.Morocco is becoming a growingly attractive destination for global textile companies. Several brands from the European Union, the UK and the US have been sealing deals with Moroccan companies in the textile industry. The world’s leading textile groups are migrating from traditional Asian manufacturers to closer markets offering favorable conditions, such as Morocco.Logistical costs, the downturn caused by the pandemic and the increase of salaries in China have induced western textile giants to look for more favorable partners. Distributors who used to buy exclusively in Asia are now shopping in Morocco.

From January 2022 to October 2022, America’s apparel imports grew by 30 per cent.

Imports so far in 2022 have been the best of all time surpassing previous best figures that were witnessed during the same period in 2019.With a substantial rise in import values, all Asian apparel exporting countries experienced increase in their shipment to the US during January 2022 to October 2022. Imports from Bangladesh grew by 48 per cent. Imports from China grew by 20 per cent. Imports from Vietnam grew by 18 per cent. Imports from India were up by 45 per centwhile shipments from Indonesia to the US were up 47 per cent.The US is the largest export destination for Bangladesh.There are three reasons for Bangladesh’s export growth to the US market. One is the shifting of orders from China to other manufacturing countries and another is increasing demand for knitwear products on the market. Also orders are being shifted from China. US buyers are shifting their orders from China in large volumes and Bangladesh is getting a portion of the orders. Apart from Bangladesh, some other countries, including Vietnam and India, are getting a share of the orders being shifted from China. Before the pandemic, Bangladesh’s export item to the US was mainly woven garments, but the demand for knitwear has increased on the market for the past two years.

From January 2022 to October 2022 jeans imports into the United States increased by 24 percent.

As retailers and brands brought in goods for their final fourth-quarter push, women’s and girls’ blue denim trouser shipments slightly surpassed men’s and boys’ jeans imports. Imports of women’s jeans rose by 25 percent while imports of men’s jeans were up 24 percent. In women’s and girls’, imports from Bangladesh increased 36 percent while Vietnam’s shipments rose 19 percent. Imports from Pakistan were up 37 percent, shipments from Cambodia jumped 35 percent, shipments from Sri Lanka increased 23 percent and imports from Macau were up 40 percent. Imports from Mexico increased 37 percent, Egypt’s shipments jumped 79 percent and imports from Turkey were up 20 percent. In men’s and boys’ jeans, imports from Mexico rose 17 percent, imports from Bangladesh rose 46 percent. Imports from Pakistan rose 33 percent. Imports from Vietnam were up 19 percent, shipments from Cambodia rose 47 percent and imports from India increased 46 percent. Imports from Nicaragua rose 25 percent, shipments from Egypt increased 21 percent and imports from Lesotho were up ten percent.

Who’s Next will be held in France, January 21 to 23, 2023.

The fashion show is dedicated to ready-to-wear, footwear and accessories. It's an opportunity to present brands that are more present in northern European markets. The Neonyt trade show will be part of the January edition.On the Who's Next side, this offer reinforces the 40 or so exhibitors already announced at Impact, with strong French players like Panafrica or 1083 but also newcomers like the Spanish Ecoalf and Alohas. Neonyt has been a player for over ten years, it is a reference and it reinforces Who’sNext’sresponsible offer, which has expanded compared to last season. The WSN teams will market the Neonyt Preview, Impact and Neonyt spaces, keeping their respective specifications.In September, Who's Next will occupy Hall 1 of the Porte de Versailles. The Salon internationale de la lingerie and Interfilière will be held in Pavilion 4, with a new scenography designed by the ATO Agency, which worked the last few seasons on the Premiere Classe shows, and also with a new approach for the fashion shows.For the rest of 2023, WSN Développement has already planned to bring its public event DRP, whose first edition took place last spring in the Grand PalaisEphémère, closer to Who's Next. The event mixing sports, fashion, sneakers and pop-culture will take place at the same time as Who's Next from September 1 to 3 at Porte de Versailles, Who's Next being planned from September 2 to 4.

C&A and Traceless Materials will work together to reduce the use of plastics in fashion packaging.

C&A is anEuropean apparel retailer. Traceless Materials is a German start-up that works to develop a circular bioeconomy. C&A will replace single-use hooks with advanced biodegradable hooks. The plastic-free hooks are made by Traceless Materials using only agricultural plant waste products and this is the first pilot product to hit the shelves made from Traceless’ bio-circular material innovation.They are naturally compostable and can reduce carbon emissions by up to 95 per cent. The introduction of Traceless Materials’ sustainable hooks is part of C&A’s circularity initiatives and is also part of C&A’s wider strategy to reduce its use of single-use plastics.Through these initiatives, the company aims to become a leading innovative player in the textile sector and achieve the goals of its 2028 Global Sustainability Strategy. The collaboration with Traceless is an important step toward C&A’s goal of replacing consumer facing single-used plastics in stores with sustainable alternatives by 2028.C&A operates more than 1,300 stores in 17 European countries, as well as a digital channel. It employs more than 25,000 colleagues in total.The retailer aims to provide quality and long-lasting fashion at affordable prices for all.

Mitch Hughes is director of menswear at M&S. This appointment comes at a crucial time for the business as years of work in its clothing and home operations yield real results, although the recovery remains a potentially fragile one given the weak consumer backdrop at present.

Despite having worked solely online in recent years, Hughes also has extensive physical retail experience, with both being relevant to M&S as it consolidates and improves its physical stores while growing its e-commerce operation.

M&S’ half yearly sales are up 13 per cent. Sales in its clothing and home operation rose 14 per cent, while sales via physical stores up 18.8 per cent and online up 4.9 per cent. It saw growth in both market share and profitability. Full-price sales participation was broadly level on last year and well above the historic average. Market share increased 50bps to 9.1 per cent and it generated growth across categories and channels.

The high-double-digit sales rise through physical stores was driven by stores in city centres and malls, reflecting the return to more normal trading patterns although high streets continued to lag.The rise in online sales meant e-tail made up 32 per cent of clothing and home revenue, with continued strong growth in traffic and increased average order values, partly offset by higher returns rates.

Maharashtra plans to develop textile hubs in the regions of Vidarbha and Marathwada.

Among the incentives offered are attractive power tariffs and steady rates for cotton. The aim is to correct the mismatch that used to happen in setting up textile hubs in non-cotton growing districts. The government will procure the cotton at fixed rates and then hand over the cotton at the procured rates to the textile industry. This is aimed at doing away with fluctuating rates of cotton that hurt the textile sector. The area under cotton cultivation in the state is 42 lakh hectares with almost 45 lakh farmers undertaking cultivation of the cash crop.The state accounts for 28 per cent of the country’s cotton production. Apart from this, the availability of skilled human resources has also become a major issue.Under the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme, the state has proposed developing a brownfield park in Amravati (Vidarbha region) and Aurangabad (Marathwada region). The focus on the textile sector is expected to attract investments and generate employment. The state has set a target of Rs 36,000 croreof investments in the sector, which is likely to generate ten lakh jobs.

Sweden is promoting sustainable practices in Bangladesh’s readymade garment sector.

Swedish green tech companies have a lot to offer in the wider domain of sustainability, both when it comes to services and solutions. Sweden and Bangladesh celebrate 50 years of bilateral relations. Made in Bangladesh Week was held from November 12 to 18, 2022. The event highlighted the progress of the Bangladesh apparel industry in safety and sustainability in recent years. The industry is now focusing on optimum use of resources, including making a shift from the linear to the circular model of business as Bangladesh’s apparel industry generates about 440 million tons of pre-consumer waste every year.Bangladesh’s policy makers, apparel manufacturers, buyers and stakeholders were given a platform to discuss the stories of transformation and progress in workplace safety, workers’ well-being, environmental sustainability and innovation, and to decide the ways forward for the sustainable development of Bangladesh’s apparel industry. Bangladesh is setting up 100 economic zones in different parts of the country, for which local and foreign investment will be encouraged. Made in Bangladesh Week provided industry stakeholders across the world an opportunity to see the take off of the apparel industry as Bangladesh continues to pursue new areas of expansion, manufacturing excellence and sustainable growth.