Despite malls witnessing an uptick in footfalls during the Christmas weekend, consumption across apparel category remained muted. 

Apparel retailers witnessed a subdued demand during the October-November festive season as consumers continued to spend with caution. While demand surged during Christmas, the weakness in consumption spilled into December. 

This year, consumers seem to have directed their spending to other essential categories. However, this may normalise next year, says Rajneesh Mahajan, CEO, Inorbit Malls.

Footfall in malls remained below expectations at 12 per cent of last year, notes Pushpa Bector, Senior executive Director, Head - Luxury and Shopping Malls, DLF Retail. Brands declared early discounts on account of weak winters which helped boost sales. The company expects sales to grow by over 15 per cent this year, she adds. 

To boost demand, brands pre-poned their end-of-season sales. The like-to-like sales of a few companies stablised. However, conversion on apparel remained low compared to previous years, adds Akhil Jain, Executive Director, Jain Amar, which retails a women’s fashion brand Madame.

Demand for fashion and gadgets remained strong, says Jayen Naik, CEO, Nexus Select Trust, the operator of portfolio of premium malls. The retailer recovered almost 130 per cent of its revenues before holidays. It expects fashion, jewelry, and gadgets to perform strongly this holiday season. 

Data released by the National Bureau of Statistics of China, shows, sales of garments and accessories grew by 11.50 per cent Y-o-Y from January-November 2023 to RMB 1,259.50 billion ($ 177.93 billion). 

Specifically in November 2023, China’s revenues from garments and accessories surged by 22 per cent to RMB 150.30 billion ($ 21.23 billion). 

The nation’s cumulative retail sales, during the period, grew by 7.20 per cent to RMB 42,794.50 billion or $6.045.72 billion. 

In November 2023 alone, China’s retail sales surged by approximately 10.10 per cent, to RMB 4,250.50 billion or $600.48 billion.

China’s retail growth in 2023 aligns with the shifting sentiment of Chinese consumers to increase their spending on apparel and fashion accessories.

KV Shrinivas, President, International Textile Manufacturers Federation (ITMF) urged the Indian government to make urgent policy changes to ensure uninterrupted access to raw materials at competitive rates. 

The Indian textiles and clothing industry has been facing significant challenges related to raw materials, including cotton and man-made fibres, and a drastic increase in power costs across various manufacturing states, said Srinivasan. He urged the government to remove the 11 per cent import duty on cotton, addressing the Quality Control Order (QCO) and price issues concerning PTA, MEG, Polyester, and Viscose, to establish a level playing field for the industry. He also condemned the government’s move to enforce QCOs on raw materials, stating it had negatively impacted the man-made fibre value chain.

Further, Srinivasan said, the government’s substantial incentives for new investments were making the industry’s existing capacities financially nonviable. India is the second-largest producer of raw materials. However, the country is yet to leverage this advantage, while neighboring countries like Bangladesh and Vietnam, lacking such resources, have experienced exponential export growth rates, he added. 

In the period from January to October 2023, the United States encountered a significant 27.45% year-on-year decrease in trouser imports, tallying up to a worrisome $5.64 billion loss in the total value. This downturn raises concerns for global trouser exporters reliant on the US market.

Amid this challenging landscape, Vietnam managed to retain its lead as the top exporter to the US, despite a 29% decline, with exports totaling $3.02 billion. Bangladesh, the second-largest exporter, faced a substantial drop of 29.74%, reaching $2.57 billion, intensifying the competition with Vietnam in a sluggish market.

China, Indonesia, and India also grappled with significant declines in trouser exports, marking a broader trend of economic challenges in the global apparel industry. The industry now faces the critical task of navigating these hurdles and adapting to the evolving dynamics of international trade.

WHP Global has successfully acquired G-Star RAW, marking a pivotal step in the New York-based brand management company's expansion into the European market. 

The move includes plans for a new Amsterdam office. With the original owners retaining a minority interest, G-Star RAW's leadership, led by CEO Rob Schilder, will continue overseeing operations. 

This marks WHP Global's third successful venture in 2023, bringing their portfolio to over ten brands with a cumulative global retail sales exceeding $7 billion. 

In a separate development, WHP Global has entered a long-term licensing agreement with Fashioncenter, a Schmidt Group subsidiary, to enhance Lotto's presence in Central Europe.

Xinjiang Uygur autonomous region in Northwest China maintains its stronghold on the nation's cotton output, surpassing 5.1 million tons this year, marking over 20 years of uninterrupted leadership. 

The National Bureau of Statistics reveals Xinjiang's output constitutes a remarkable 89.5% of the country's total, driven by a 2.5 million-hectare planting area. 

Boasting unique natural conditions, Xinjiang emerges as China's foremost high-quality cotton production hub, orchestrating a shift in the nation's cotton landscape since the 1990s. 

The region's adoption of mechanized and intelligent cotton planting reflects advancements, positively impacting the livelihoods of growers and textile workers alike.

Data from Italy’s fashion sector body, Confindustria Moda shows, turnover of Italy’s fashion sector grew to €111.7 billion in 2023 as compared to 2022. However, the growth was solely restricted to values as sales volumes registered a notable decline. 

Italy’s apparel exports grew by 5.1 per cent €54.5 billion in the first eight months of 2023 compared to the same period in the previous year. Exports to the European Union grew by 47 per cent, while exports to non-EU regions covered 53 per cent. Confindustria Moda expects Italy’s exports to China to suffer with demand for domestic products rising in the country against imports,

Despite the growth in revenues, the fashion sector in Italy continues to suffer from a reduction in profit margins due to rising energy and raw material costs. Though energy costs are expected to return to pre-COVID levels, the industry remains uncertain over the future of raw material costs. 

Acknowledging these challenges, Ercole Botto Poala, President, Confindustria Moda urges the industry to make collaborative efforts to address shared needs in training, sustainability, and innovation, preparing for the sector's future challenges.

Forget your traditional fashion capitals! In 2023, the world's most captivating runways stretched far beyond the cobbled streets of Milan and the Champs-Élysées. From the vibrant bazaars of Mumbai to the sun-drenched shores of Rio de Janeiro, local designers and age-old traditions took center stage, redefining luxury fashion with a kaleidoscope of cultural influences and sustainable practices.

As 2023 gracefully twirls towards its finale, the global luxury apparel industry finds itself draped in a tapestry woven with shimmering threads of reinvention, resilience, and a dash of uncertainty. Let's embark on a sartorial odyssey, unraveling the key trends that defined the year and peeking into the crystal ball for 2024's prospects.

Comfort Takes the Crown: The pandemic's lingering touch painted a new chapter in luxury, where loungewear shed its sleepy connotations and strutted onto center stage. Loro Piana's cashmere tracksuits and Brunello Cucinelli's elevated sweats redefined cozy chic, proving that indulgence can bloom even in relaxed silhouettes. The trend's reign shows no signs of waning, with activewear giants like Lululemon ($384.29, -0.54%) venturing into the luxury realm through collaborations with brands like Roksanda.

Sustainability Stitches a New Narrative: Eco-conscious consumers flexed their buying power, propelling brands like Stella McCartney and Gabriela Hearst to the forefront. Upcycling, once relegated to the realm of niche labels, became a boardroom buzzword, with luxury giants like Dsquared2 and Gucci breathing new life into pre-loved garments. This eco-awakening isn't a passing fad; expect innovative materials like Econyl and plant-based dyes to become the new black in 2024.

Digital Threads Weave a New Reality: From virtual try-on sessions powered by Zegna's Try-On Mirror to Burberry's AR filter fashion shows, technology became the industry's new runway. Livestream shopping, a phenomenon ignited by platforms like Douyin and WeChat in China, is rapidly seeping into Western markets, with luxury houses scrambling to adapt. As we step into 2024, the metaverse beckons, with the likes of Ralph Lauren and Prada prepping for a future where virtual wardrobes become coveted possessions.

Regional Riches Reimagine Luxury: Borders blurred as local treasures adorned global catwalks. Valentino's embrace of Japanese kimono motifs and Dior's ode to Indian embroidery shattered the confines of Eurocentric fashion. African designers like Thebe Magugu and Kenneth Ize painted the world with their vibrant narratives, proving that cultural heritage is the ultimate luxury. This trend promises to blossom in 2024, with collaborations and cross-pollination becoming the new normal.

Redefining the Lexicon of Luxury: The very definition of luxury is undergoing a metamorphosis. While impeccable craftsmanship and exclusivity remain hallmarks, inclusivity and social responsibility are gaining equal billing. Gucci's Chime for Change and Chanel's Métiers d'Art initiatives are testaments to this evolving landscape. Expect to see more purpose-driven partnerships and philanthropic endeavors in 2024, as conscious consumers seek brands that align with their values.

Challenges and the Road Ahead: The path ahead isn't without thorns. Inflationary pressures and geopolitical uncertainties could dampen consumer confidence. Supply chain snarls continue to cast a shadow on production and logistics. Yet, the industry's inherent adaptability and relentless innovation offer a beacon of hope.

Prospects and Outlook for 2024: The coming year promises to be a kaleidoscope of change and opportunity. Brands that prioritize personalization, curate seamless omnichannel experiences, and foster a sense of community will likely waltz ahead. Embracing technology not just for sales but for storytelling and emotional connection will be key. Remember, in the ever-evolving world of luxury apparel, the threads that win hearts are woven with empathy, purpose, and a dash of audacious imagination.

Data and Statistics:

• According to Bain & Company, the global luxury apparel market is expected to reach €336 billion ($358 billion) by 2025, growing at a CAGR of 6%.

• The Asia-Pacific region is expected to be the fastest-growing market, driven by the rising middle class and increasing disposable income.

• Online sales are expected to account for an increasing share of the market, reaching 30% by 2025.

• Sustainability is becoming a major priority for luxury brands, with consumers increasingly seeking

RMG exports by Bangladesh have been declining continuously since the last five months. As per a report by the BGMEA, exports of knitwear and woolen garments combined declined to $4,360 million in June 2023 from $6,165 million in October 2022.

According to factory owners, reduction in purchase orders by 20 per cent is one of the major reasons for the decline in RMG exports by Bangladesh, says Rakibul Alam Chowdhury, Vice President, BGMEA

A 35 per cent increase in production cost including workers increased wage, together with lack of purchase orders is likely to lead to many factories closures in the next three months, he adds. 

According to an analysis of Monthly Utilisation and Declaration Report of Readymade Garment Exports, as well as date of BGMEA, BKMEA and Chattogram EPZ, Bangladesh’s RMG exports decreased by 13.93 per cent in October due to lack of export orders resulting from  global economic recession and the recent increase in  garment workers wage by 56.25 per cent.

Also due to delayed and slow purchase orders, exports got delayed leading to a delay in payments. As per BGMEA data , Bangladesh’s apparel exports decreased consistently  in last five months.

In June, Bangladesh’s RMG exports stood at $4,360 million. These decreased to $3,943 million in July.to further increase by$91 million to $4,444 million in August, In September 2023, Bangladesh RMG exports declined to $3,618 billion before increasing once again in October. 

Export data of Chattogram EPZ shows, RMG exports stood at $ 219 million in June, and $153 million in October. In September, value of exports from Ctg EPZ increased to $150 million, from $172 million in July. The value of exports increased to $181 million in August.

Syed Mohammad Tanvir, Managing Director, Pacific Jeans warns, increased production cost together with  increased workers’ wages will make it very difficult for the owners to run their factories in future.

Data filed with the Registrar of Companies shows, the cumulative ad revenue of e-commerce giants Amazon and Flipkart rose by 39 per cent to Rs 8,705 crore in the fiscal year through March 2023.

The ad revenue of Amazon Seller Services grew by 29 per cent to Rs 5,380 crore, according to the RoC filings sourced from business intelligence platform Tofler. Ad revenue of Flipkart Internet, the marketplace arm of Flipkart, rose by 60 per cent to Rs 3,325 crore.

India’s digital ad revenue is is expected to increase by 13.8 per cent to Rs 56,703 crore in 2024, according to a Magna Global 

Uday Sodhi, Senior Partner, Kurate Digital Consulting notes, increasing ad spends on ecommerce platforms allows brands to target their audience more effectively on the basis of category, brand and user behavior.

According to an Amazon spokesperson, customers’ fluid movement between browsing, streaming and purchasing across channels and devices, makes the digital landscape more complex.

Shashank Rathore, Vice-President – E-commerce, Interactive Avenues, the digital arm of IPG Mediabrands India, adds ecommerce as an ad platform now rivals performance marketing giants like Google and Facebook.

Hareesh Tibrewala, CEO, Mirum India, avers, ecommerce portals are proving as a valuable touch point for brands, encouraging them to increase their investments in such platforms. In future, ad revenues are like to shift from social to other channels like e-commerce and OTT, he adds.

Vishal Chinchankar, CEO, Madison Digital adds, brands on e-commerce platforms benefit from a sophisticated mix of creativity and data