The international textile landscape has been in the throes of an unparalleled and prolonged downturn since the latter half of 2022. Despite an initial surge in demand post-COVID lockdowns, the global textile industry now faces significant challenges. In a recent press release, Dr. K. V. Srinivasan, the newly elected President of the International Textile Manufacturers Federation (ITMF), highlighted the multifaceted factors contributing to this downturn.

Weakening demand, inflation, and geopolitical tensions take a toll

According to the ITMF's Global Textile Industry Survey conducted in November 2023, weakening demand, inflation, geopolitical tensions, raw material price volatility, energy cost hikes, labor shortages, and rising interest rates collectively spell out the major causes of the industry's slump. Notably, 76% of respondents pointed to weakening demand as the primary culprit.

Cancellations and outlook

Approximately 44% of survey participants reported order cancellations in the past four months, with 5% experiencing major cancellations exceeding 30%. Looking ahead, 44% anticipate a more favorable business situation in the next six months, reflecting a cautious optimism that surpasses the sentiment in September.

India's textile industry bears the brunt

Dr. Srinivasan emphasized the detrimental impact on India's textiles and clothing sector, attributing it to challenges in raw material supply, soaring power costs, and policy shortcomings. Urgent corrective measures were urged, including the elimination of the 11% import duty on cotton, addressing Quality Control Order (QCO) issues, and resolving pricing concerns related to key materials.

Policy reforms urged for industry revival

Addressing the Indian government, Dr. Srinivasan urged a halt to short-sighted policies affecting raw materials, power, labor, and new investments until industry revival. Financial relief measures such as a one-year loan moratorium, conversion of short-term loans into long-term options, and increased working capital were suggested to prevent textile units from becoming non-performing assets and safeguard jobs.

Competitiveness and global strategies

Despite being the second-largest global raw material manufacturer, India's textile exports remain stagnant at USD 35 billion. Dr. Srinivasan recommended a holistic approach, emphasizing the need for appropriate policy measures to enhance global competitiveness and capitalize on the China+1 policy.

In the face of unprecedented challenges, the textile industry awaits decisive action from governments and stakeholders to navigate the current storm and revive its global standing.

A key contributor to the country's exports and GDP, Pakistan’s garment sector is currently struggling with rising gas prices and the removal of energy subsidies under the International Monetary Fund (IMF) program.

As per a report by Pakistan Credit Rating Agency (PACRA), the recent gas tariff hike of November 2023, which increased the cost of gas to $10.3 per million British thermal units (MMBTU), is likely to impact the sector's margins and competitiveness.

The garment sector, which includes textiles, clothing and leather products, contributed 3.0 per cent to Pakistan’s GDP in FY 2023, increasing by 8per cent Y-o-Y to Rs2.6 trillion.

However, textile exports, which accounted for 59 per cent of the country's total exports, declined by 14.6 per cent in FY 2023, due to supply chain disruptions caused by import restrictions imposed by the central bank and flash floods in August 2022. Textile imports also declined by 21.8 per cent, as the central bank restricted the import of raw materials and machinery to conserve foreign exchange reserves.

The garment sector is dominated by 59 organised composite units, with 32 listed on the Pakistan Stock Exchange (PSX), PACRA said.

The rating agency said the sector's margins were expected to remain rangebound, owing to domestic factors such as higher expected cotton production in fiscal year 2024, stable interest rates and consistent demand, both locally and globally, with global economic activity expected to rebound.

Increased cotton arrivals in the spot markets of Madhya Pradesh and amid lower prices, has led to an increase in Cotton Corporation of India’s (CCI) procurement to 55,000 bales (1 bale is 170 kg) at the government fixed minimum support price (MSP).

Currently medium staple cotton is being sold at a MSP of Rs 6,620 per quintal while long staple cotton is being sold at MSP of Rs 7,020 per quintal.

Daily 40,000 quintals of cotton arrives at the spot markets of MP. Over 60 per cent of this is procured by CCI. The nodal agency purchases raw cotton from farmers after checking the moisture content in the produce and other quality parameters.

CCI has set up 21 procurement centres in MP. Most of these centres were set up in Nimar and Malwa region like Khargone, Khandwa, Kukshi, Dhamnod and other trading centres.

CCI gives the procured produce to the contracted ginning units for processing in every state.

As 2023 draws to a close, the global fashion industry presents a tapestry woven with contrasting threads. While glimmers of recovery and innovation shine through, the year has been marked by uncertainty, economic anxieties, and the ever-present shadow of climate concerns. Let's unravel the key trends that shaped global fashion in this tumultuous year:

Comfort Reigns Supreme

The pandemic's lingering influence, coupled with rising inflation, saw consumers prioritize comfort and practicality over fleeting trends. Loungewear, athleisure, and oversized silhouettes dominated wardrobes, with brands like Lululemon and Uniqlo experiencing significant growth. Comfort wasn't just about casual dressing, though. Tailoring saw a resurgence, with a focus on comfortable yet stylish work-from-home attire.

Sustainability Takes Center Stage

Consumers became increasingly conscious of the environmental and ethical impact of their clothing choices. Sustainable brands like Patagonia and Veja flourished, while established players like H&M and Zara ramped up their sustainability efforts. Upcycling, recycled materials, and ethical sourcing became buzzwords, pushing the industry towards a more responsible future.

The Digital Push Persists

E-commerce continued its relentless march, further fueled by pandemic restrictions and convenience-seeking consumers. Brands embraced omnichannel strategies, seamlessly blending online and offline experiences. Social media remained a powerful tool for marketing and trendsetting, with platforms like TikTok and Instagram influencing purchasing decisions.

Diversity and Inclusion Gain Momentum

The conversation around diversity and inclusion in fashion gained much-needed traction. Body positivity campaigns, gender-neutral collections, and increased representation of marginalized communities became commonplace. Brands like Chromat and Gypsy Sport championed inclusivity, paving the way for a more diverse and representative fashion 

Challenges and the Road Ahead

Despite the promising trends, the industry faced significant challenges. Inflation and supply chain disruptions led to rising costs and production delays. The war in Ukraine further exacerbated these issues, casting a shadow over global trade and economic stability.

Looking ahead, the future of fashion remains uncertain. However, brands that can adapt to changing consumer preferences, embrace sustainability, and prioritize ethical practices will be best positioned to thrive. Embracing technology, fostering inclusivity, and offering value beyond just trends will be key to navigating the tangled threads of the global fashion landscape in the years to come.

Carrington Textiles has introduced three new stretch fabric ranges–‘Tahoe’, ‘Lugano,’ and ‘Meteo.’

Designed for shirts and workwear applications, the ‘Tahoe’, range offers 20 per cent stretch, thanks to the inclusion of 4 per cent EOL fibers by ‘Xlance’. The fabric is made from a combination of polyester, recycled polyester, and cotton, aligning with the Better Cotton initiative.

Ideal for making trousers and jackets, the ‘Lugano’, range offers 2-way stretch, durability, and comfort as it is incorporated with ‘Lycra T400’ eco made elastomultiester, a fibre that provides this textile with a durable stretch that withstands the rigors of repeated industrial laundering and maintains consistency of fit, aesthetic and performance over time and recycled polyester. 

Suitable for applications across sectors including railways, the ‘Meteor’, range offers the heaviest fabric in Carrington Textiles' new workwear range.

Carrington Textiles has also expanded its flame-retardant range with the introduction of ‘Flametougher 290AS Flex’ and ‘Flameflex 300AS.’ Featuring EOL fibers, these fabrics offer comfort and safety. 

The ‘Flametougher 290AS Flex ‘ range is ideal for workers in high-risk industries, while ‘Flameflex 300AS’ combines full certification for flame retardancy with the comfort and durability of a stretch product. Carrington Textiles has also relaunched ‘Flameban 240’, offering a range of colors ideal for workwear applications. The company has also expanded the color range of its ‘Balance Range’ of sustainable fabrics, enhancing the aesthetics and versatility of their product offerings.

Current global economic uncertainties have made the extension of the RoSCTL scheme for three more years, a dire necessity; says Naren Goenka, President, AEPC. 

According to Goenka, in order to boost exports to $40 billion by 2030, the industry needs to focus on innovation and faster clearances. It also needs to expand market and product basket, adopt cluster-based model, bring in investments and enhance branding efforts, he adds. 

Goenka also urges the industry to focus on harnessing the potential of e- commerce segment and Free Trade Agreements (FTAs), practise sustainability, and responsible business practices. 

The RoSCTL scheme was approved in 2021to provide garment exporters a rebate on central and state taxes on their outward shipments till March 2024. Under the RoSCTL scheme, the maximum rate of rebate for apparel is 6.05 per cent, while for made-ups this is up to 8.2 per cent. Garments and made-ups segments such as home textiles products are covered under the scheme. Global economic uncertainties are increasing due to Russia-Ukraine and Israel-Hamas conflicts. Attacks on ships at the Red Sea are also impacting smooth supply of goods across countries.  

An initiative by the Korean sustainable store, the Circular Library project was launched in the American market, with sustainable fashion brands Le Cashmere and Re Code.

Embodying the principles of circularity and sustainability, Circular Library offers upcycled workshops, musical experiences, inspiring art installations, and narratives that champion sustainability.

The store acts as a communal store for local artist exhibitions, workshops and yearly gatherings on sustainability and fashion, says Brandon Yu, Head, Circular Library project.

The store’s launched with Cashmere, a brand renowned for ethically sourcing naturally shed sheep hair. Showcasing a unique array of clothing items—jackets, sweaters, bags, tops, bottoms, dresses, skirts, etc, the Re Code store was filled with installations showcasing sustainability, like oval-shaped décor from unused airbags and fabrics repurposed from backpacks. 

To make its entire operations sustainable, technical textile manufacturer, Heathcoat Fabrics, has launched the new ‘Succession Collection.’

Crafted from 100 per cent recycled yarn, the collection majorly uses nylon from industrial waste and polyester from recycled bottles. Heathcoat seeks to introduce new bio-based and natural fibers to enhance sustainability further. It also promises to use resource-efficient manufacturing processes and eco-friendly machinery, like low liquor dye machines that reduce water usage, without compromising product quality. 

The company’s ‘Synchrotec’ products empower consumers to be environmentally friendly.. The fabrics in this collection help reduce environmental impacts through improved fuel economy, lower emissions, and less noise pollution.

With over 3,000 solar panels, a hydro scheme, and a 2 MWh CHP engine, Heathcoat generates more than 70 per cent of its electricity on-site. Furthermore, the company exclusively buys imported electricity from 100 per cent natural renewable sources, ensuring their commitment to clean energy. The company has not only introduced segregated waste bins, reduced virgin plastic packaging, but also initiated schemes like “Cycle to Work” to combat climate change and environmental harm.

The global home textile products market is estimated to grow at a CAGR of 6.9 per cent between 2023-2031and reach a value of $195.7 billion by 2031, as per a study by Transparency Market Research (TMR). 

Offering insights based on an industry SWOT analysis, the report provides detailed information on market growth drivers, restraints, trends, economic and financial structure, etc.

The report also focuses on the market segments formed by combining different prospects such as types, applications, and regions. Apart from this, it discusses, key growth drivers, restraints, potential growth opportunities, and market challenges.

Bangladesh’s RMG exports to all its major markets declined during the July to November period due to global economic situation, a decline in demand and policies of the Western countries. 

As per a report by the Export Promotion Bureau (EPB) and BGMEA, Bangladesh’s RMG exports to the EU fell by 0.15 per cent in the five months from July to November of the current fiscal year compared to the same period of the previous fiscal year. Exports to the largest markets within the eu, Germany fell by 15 per cent to $231 million in the last five months..

Bangladesh’s apparel exports to the United States declined by 5.76 per cent to $328 million in the last five months. The US share of total apparel exports fell to 17 per cent during the period..

According to Dr. Abdur Razzaq, Chairman, Rapid, the reason for this decline in exports to the US market is the fear of sanctions, and reduced demand in the country. 

Exports to Canada decreased by 2.71 per cent to nearly $61 million with the share of this market in the total exports of garments decreasing from 3.40 to 3.22 per cent.