Indonesia's textile and footwear industries have demonstrated resilience in the face of global economic shocks, achieving a surplus in their trade balance despite recessionary conditions in key export destinations such as the United States and Europe.

The country's Coordinating Ministry for Economic Affairs reported that the textile and textile products (TPT) industry had a surplus of USD 3.71 billion, up 3.34 percent from the previous period, while the footwear industry achieved a surplus of USD 1.03 billion, a rise of 41 percent compared to 2021.

The high level of exports was driven in large part by sales of Adidas products manufactured in Indonesia. In 2022, the export value of Adidas textile and footwear commodities from Indonesia reached USD 2.54 billion, making the company one of the biggest contributors to the country's overall export performance.

Of the total exports, 33 percent of production was shipped to European countries, amounting to USD 826.6 million. Indonesia's strong economic fundamentals, including a large domestic market and stable political and economic conditions, make it a prime location for the production and export of TPT and footwear products. However, the integration of supply chains remains a key challenge that must be addressed for the industry to continue to thrive.

The government hopes that executives from Adidas and other industry leaders will invest in filling the gaps in Indonesia's supply chain, enabling the country to become a major player in the global textile and footwear industries.

Indonesia's textile and footwear industries have demonstrated resilience in the face of global economic shocks, achieving a surplus in their trade balance despite recessionary conditions in key export destinations such as the United States and Europe.

The country's Coordinating Ministry for Economic Affairs reported that the textile and textile products (TPT) industry had a surplus of USD 3.71 billion, up 3.34 percent from the previous period, while the footwear industry achieved a surplus of USD 1.03 billion, a rise of 41 percent compared to 2021.

The high level of exports was driven in large part by sales of Adidas products manufactured in Indonesia. In 2022, the export value of Adidas textile and footwear commodities from Indonesia reached USD 2.54 billion, making the company one of the biggest contributors to the country's overall export performance.

Of the total exports, 33 percent of production was shipped to European countries, amounting to USD 826.6 million. Indonesia's strong economic fundamentals, including a large domestic market and stable political and economic conditions, make it a prime location for the production and export of TPT and footwear products. However, the integration of supply chains remains a key challenge that must be addressed for the industry to continue to thrive.

The government hopes that executives from Adidas and other industry leaders will invest in filling the gaps in Indonesia's supply chain, enabling the country to become a major player in the global textile and footwear industries.

The once looked-down upon as the poor woman’s go-to, second hand fashion is no longer the poor country cousin but all the rage as societal changes are amply clear about today’s aware and evolved consumers habits, their relationship with ownership of material things and their buying behavior. These factors have not only challenged the fashion sector’s attitude but more importantly, their business models. The circular economy perspective is gaining followers in the market beyond a simple trend and studying the prediction, fashion brands are gearing up to close the loop.

Second-hand fashion market to be $ 64 billion next year

The second-hand market is expected to hit $64 billion in 2024, overtaking the tradition thrift and donation segment, according to Thredup’s Annual Resale Report in partnership with GlobalData. Forbes Magazine predicted that by 2025, resale of fashion goods, such as sneakers and other collectibles, could reach $6 billion in sales. What these figures show is an obvious statement - the resale market is growing from strength to strength and here to stay. Thanks to Internet and digital ventures through all fashion segments, resale fashion will become bigger and not be dismissed as a passing fad of activism. It is not only a shift inside the consumer’s process of product acquisition equation, it is a rediscovery of the value of things made to last, at least longer, and completely opposed to fashion’s rapid obsolescence.

Resale, vintage fashion, or the second-hand market have been around for ages and as concepts are not new at all. However, these clothing items did not have the exposure or the visibility to a wider audience who could appreciate their value and want to own such pieces. The ease of e-commerce, peer-to-peer exchanges, or even auction services, the consumer has found a valuable offer of clothing and accessories to buy compared to the full-price market. Additionally, when consuming second-hand, the customers are cultivating a responsible commitment to sustainability and curbing wasteful consumption.

Sustainability through circular fashion

KirsiNiinimäki, the reputable Finnish researcher of the Fashion/Textiles Futures research group says that a circular economy approach in the fashion industry aims to develop a more sustainable and closed-loop system where the goal is to extend the use- time of garments and maintain the value of the products and materials as long as possible. She adds that in the circular economy it is necessary to take a system perspective on fashion’s valuable supply chain, including all members as designers, producers, manufacturers, business entrepreneurs and of course, the customer. in March 2020 the European Commission presented the new circular economy action plan under the “European Green Deal”, including proposals on more sustainable product design, reducing waste, and empowering consumers to demand new industrial commitments in resource intensive sectors, such as electronics, plastics, construction, and of course, textiles and fashion.In February 2021, the EU Parliament demanded additional measures to “achieve a carbon-neutral, environmentally sustainable, toxic-free, and fully circular economy by 2050, including tighter recycling rules and binding targets for materials use and consumption by 2030”. Fashion brands are changing their attitudes to ensure they are vested in their commitment to sustainability through circularity. From here on, the focus will change from fashion providing instant gratification to long-lasting relationships with clothing items and follow the less is more principle.

The Real Real and Vestiare Collective champion resale

The San Francisco giant, The Real Real and Paris-based, Vestiaire Collective are a luxury destination for vintage clothing and second-hand luxury items and premium brands that are using the strategy of collaborative consumption. In March 2022, the Kering Group and Tiger Global Management invested a sizeable $ 178 million in financing the Vestiaire Collective reinforcing that second hand fashion is not only going big but profitable.

Pakistan, a significant beneficiary of the European Union’s GSP Plus scheme, is finding it tough to secure renewal for the next period starting 2024.

GSP Plus booster for exports

The GSP Plus is a special incentive arrangement for sustainable development and good governance and Pakistan has been enjoying it since 2014. The benefits include zero import duty on 66 per cent tariff lines. The country’s exports to the EU have increased substantially, from €3.56 billion in 2013 to €6.64 billion in 2021, mostly in textiles, leather, sports and surgical goods sectors. In return, the EU expects Pakistan to implement 27 UN Conventions to improve compliance with globally accepted standards of corporate and social behavior.

Review and compliance include human rights issues

However, Pakistan is facing challenges in complying with UN conventions and the EU is expected to lengthen the list of conventions under the new GSP Plus scheme, effective from 2024. It will now include additional conventions on the rights of persons with disabilities, involvement of children in armed conflict, labor inspection and trans-national organized crimes.

The EU is presently conducting the fourth biennial review of GSP Plus scheme that will determine continuation of benefits beyond 2023. As per an ANI report, the EU has been pressing Pakistan on human rights issues, including freedom of religion or belief, importance of civil society organizations, freedom of expression and media, and violations of labor rights, including the inadequacy of labor inspection system, occupational safety and health, ineffectiveness of labor courts, and denial of workers’ rights to strike.

Moreover, the blatant misuse of blasphemy laws in Pakistan is a major concern for the EU. Despite being a signatory to nine of the core human rights treaties in International Human Rights Law, Pakistan has not been able to achieve any real implementation.

The EU is now demanding Pakistan to sign and ratify the relevant international agreements on human rights, including the Rome Statute of International Criminality Court (ICC) and the First and Second protocols of International Covenant on Civil and Political Rights (ICCPR). However, the country’s leaders and authorities are in denial and are repeatedly citing Pakistan’s unique situation with respect to domestic laws and Shariah norms to express inability in ratifying the conventions.

Extension not only based on economic conditions, poverty

The country’s powerful exporter lobby, which enjoys significant tariffs benefits while depriving the weaker section of its basic rights, is hindering any meaningful reform. The EU plans to link the scheme beyond 2024 to Pakistan agreeing to its migration and readmission policy. While Pakistani authorities continue to point at its vulnerable economic condition, poor population, and domestic laws, analysts have suggested that vested interest groups in the country will hamper any improvement in human right conditions, while cornering all benefits from the GSP Plus.

WRAP, the UK environmental charity, is urging the government to adopt extended producer responsibility (EPR) for the country’s fashion and textiles sector.

A series of reports have been published outlining policy options and cost-benefit analyses for such a scheme, and delivered evidence that it believes will enable informed decision-making regarding the development of a sustainable, circular sector. The reports recommend eco-design criteria, restrictions on landfill and incineration, grants and loans to enhance recycling capacity, and an increase in bring banks and kerbside collections.

The Textile Policy Options report sets out “extensive” options for cutting waste and the carbon impact of a sector that accounts for between 8-10% of global greenhouse gas emissions.

The report predicts that the volume of new products consumed in the UK could grow to 2.37 million tonnes by 2030, up from 1.66 million tonnes in 2018. It recommends a combination of grants, EPR, and separate collections supported by eco-design and eco-labelling.

The accompanying Cost Benefit Analysis report evaluates the environmental, social, and financial impacts of the suggested policy options. The report suggests that an EPR will play a vital role in shifting to a circular economy and that a simple fee modulation will be required to disincentivise the production of problematic textiles.

WRAP is recommending that the government introduce an EPR for the UK’s fashion and textiles industry, with supporting measures that include setting standards for eco-design to ensure that products last longer and are made to be recycled.

Tiruppur, India's hub for knitwear exports, is projected to experience a 4% decrease in dollar terms for FY23. Despite this decline, exports may see a marginal increase in rupee terms. This follows the region's record-breaking year for annual exports in FY22.

Industry analysts are cautiously optimistic about the growth outlook for FY24. They expect gradual improvements in orders from Q1 of FY24, although the recovery is dependent on global macroeconomic factors.

For the period of April 2022-February 2023, knitwear exports from Tiruppur totaled around $3.95 billion, while all India knitwear exports amounted to $7.2 billion (compared to $8.17 billion in FY22). The Tiruppur Exporters Association estimates that for FY23, total knitwear exports from Tiruppur will be $4.31 billion, a decrease of 4.22% from FY22. However, in rupee terms, there will be a marginal increase of 3.12% to 34,570 crore from ₹33,525 crore in FY22.

Knitwear exporters attribute the decline in exports to a drop in orders from key markets such as Europe and the U.S. due to the Russia-Ukraine conflict. Despite a slight recovery in the last few months, exports remain lower than in previous years.

Online retailers are finding it increasingly difficult to sustain free shipping as costs continue to rise, and the e-commerce industry faces a possible recession.

Retailers are taking measures such as adding fees for faster service, raising minimum purchase requirements, and shifting more costs to consumers. Product inflation and soaring shipping costs are making the service unsustainable as the industry rethinks the financial cost of habituating shoppers to free shipping.

Retailers' top priority is lowering shipping costs, with speed a close second. Shipping cost reduction goals of up to 25% have been set by some retailers. Amazon has recently raised the annual Prime subscription price by $20 to $139 and is now offering "free" same-day shipping for Prime members in some U.S. cities with strings attached, meaning that the service is free only on orders of at least $25 and costs $2.99 when orders fall below that.

As cost pressures continue to rise, free, fast shipping is fading, with many retailers dropping free shipping altogether or taking product prices up again.

Levi Strauss & Co. is making efforts to enhance its customer experience by investing in emerging technology. The company is exploring ways to utilize AI-generated models to supplement human models in its product line.

To this end, the company has partnered with a digital fashion studio that creates hyperrealistic models of every body type, age, size, and skin tone. The partnership aims to provide a more inclusive, personal, and sustainable shopping experience for customers. While human models will continue to be an essential part of Levi Strauss & Co.'s product line, the AI-generated models will enable the company to diversify its models further, creating a more diverse and inclusive customer experience.

The company is excited about the potential capabilities that AI-generated models could offer for the customer experience, and Levi Strauss & Co. believes that this technology could help unlock a future where customers can see products on more models that look like themselves, adding value for both customers and the business.

A new report released earlier this week by the Intergovernmental Panel on Climate Change (IPCC) has issued a dire warning about the state of global greenhouse gas emissions.

The Climate Change 2023 Synthesis Report, the final installment of the IPCC's sixth Assessment Report, has called for immediate action to control rising emissions, stating that the world must cut emissions by almost half by 2030 to limit the effects of global warming.

The report has highlighted that the global fashion industry, which generates over $2.5 trillion in revenue and employs more than seven million people, is one of the biggest contributors to carbon emissions, accounting for 10% of the total.

Additionally, the industry produces almost 20% of wastewater and consumes more energy than the aviation and shipping industries combined.

The report cites "A New Textiles Economy: Redesigning Fashion’s Future" by the Ellen McArthur Foundation and the Circular Fibres Initiative, which states that the current linear approach to the textile system results in the extraction of large amounts of non-renewable resources to produce clothing that is often used for a short time before being discarded. More than $500 billion is lost every year due to underutilization of clothing and the lack of recycling.

To combat these issues, the fashion industry's stakeholders must adopt practices that significantly reduce carbon emissions. This includes utilizing sustainable materials, implementing circular business models, and encouraging consumers to engage in eco-friendly behaviors such as clothing rental and upcycling.

The industry's response to this crisis will be crucial in determining the future of our planet.

The Europe Textile Chemicals market is expected to experience steady growth in the coming years, with a projected valuation of US$ 857.7 million by the end of 2027. This growth is attributed to a compound annual growth rate (CAGR) of 3.2% during the forecast period of 2019-2027, as per Transparency Market Research.

Textile chemicals are used in various stages of textile production, from fiber production to dyeing and finishing. Factors driving the growth of the market include increasing demand for textile products, technological advancements in textile production processes, and the emergence of eco-friendly and sustainable textile chemicals.

The market is highly competitive, with several large players dominating the industry. The market is expected to experience steady growth in the coming years, driven by increasing demand for textile products and advancements in textile production processes.