India’s apparel exports in November 2022 rose by 11 per cent. Exports of readymade garments from India witnessed a rough patch in the past few months since most of the traditional markets such as the UK, the EU and the US have been witnessing recession and global headwinds, leading to falling demand in these countries.Inflation and rising costs of raw material and freight, aggravated by the Russia-Ukraine war, added to the burden of exporters.

However, after a few months of slipping, readymade garment exports have again turned positive signaling the resilience of the industry to adjust to the prevailing challenges. Exporters have flagged certain issues such as the production-linked incentive scheme for apparel, extension of ATUFS (Amended Technology Upgradation Fund Scheme), RoSCTL (Rebate of State and Central Levies and Taxes) disbursements through bank transfer, and one time relaxation on account of bankruptcy / insolvency / discounting / cancellation of export orders.

India’s readymade garment exports may see a compound annual growth rate of 12 per cent by 2027.This will help India achieve an ambitious textile export target of $100 billion by 2030.With a level-playing field due to trade agreements, India’s share in the UAE and Australian markets could rise and the free trade agreement with the UK likely to be completed in 2023 will be a game changer.

Color Digital has joined ITMF as corporate member. Being a part of ITMF can help Color Digital meet and connect with industry players from around the globe, understand the needs of the industry and the value of new technologies and to be part of the discussions about industry trends and initiatives.

Based in Germany, ColorDigital is the company behind DMIx, which is an ecosystem combining industrial manufacturing processes and digital product development workflows and which provides an end-to-end solution for brands and suppliers in the textile, fashion, and lifestyle industry. Based on the DMIx digital twin standard the system enables the exchange of all relevant data for color and material development, 3D virtualization and the real time exchange of product master data between stakeholders and relevant software solutions. DMIx and its multiple modules enable qualitative efficiency in collaboration between all tier stages of the supply chain leading to highly efficient processes and a sustainable way of working – reducing unnecessary physical sampling while saving time and cost.

Founded in 1904, ITMF (International Textile Manufacturers Federation) is the international forum of the global textile value chain for producers of fiber to finished products. Its members are from textile and apparel-producing countries representing approximately 90 per cent of global production.In addition, ITMF offers its members information that helps better understand the dynamics of the industry.

The levy of import duty on cotton has led to a distortion in Indian cotton prices.

The trade and industry finds it difficult to import the raw material and has asked for the removal of the import duty which is seen as necessary to create a stable price environment and to compete internationally. Since the industry has to compete with other textile producing nations it is losing orders because of the difference in prices.

In such a scenario, the industry says it is difficult for to bear the distortion in prices created by the 11 per cent import duty. Since Indian cotton prices are higher than world cotton prices by about 15 per cent availability of cotton for the domestic textile industry has been severely impacted. At present, the Indian textile industry functions at only 50 per cent to 60 per cent capacity due to high raw material prices and the lack of a level playing field.

Import duty removal is expected to play a crucial role in determining the competitiveness of the value chain in immediate future order bookings for apparel exports. This is one of the primary reasons for the decrease in the export of cotton yarn, cotton, and cotton fabric.

China has become the biggest FDI source for Bangladesh.

Trade volume between the two countries increased by 58 per cent in 2021. China has been the largest trading partner of Bangladesh for the past 12 consecutive years.

China ranks top among foreign investors with 104 investors at eight export-processing zones in Bangladesh.Chinese companies have created 1,29,000 jobs in export processing zones.

Vietnam’s garment exports will rise by nine per cent this year. The US is the biggest importer of Vietnamese garments and textiles, followed by South Korea and Japan and China.

Vietnamese garment and textile manufacturers saw declining orders in the second half of this year due to weakening global consumption and rising inflation. The falling orders and low price situation, however, will likely continue until the first or second quarter next year.

Vietnam’s earnings from exporting textiles and garments in the first 11 months of 2022 were up 18 percent from the same period last year. In November 2022 alone, however, Vietnam’s textile and garment export earnings decreased eight percent year on year. Inflation, currency devaluation and decrease in purchasing power of major countries are among the risks for Vietnam’s textile and garment sector. These factors have forced Vietnamese textile and garment enterprises to seek and diversify export markets.

Despite difficulties, many businesses are still growing in production. The country’s textile and garment industry is hopeful of meeting its export targets this year. In 2021, Vietnam’s export turnover from textile and garment products was up nine percent from 2020. Vietnam’s textile and garment exports rose by 21 per cent during January 2022 to October 2022.

Austrian fiber firm Lenzing is steering the industry toward a circular economy and carbon neutrality. 

Lenzing’s flagship brand Tencel is a consumer-facing fiber brand known for its branded lyocell and modal fibers and is produced by environmentally responsible processes. Tencel’s collaborations across denim, ready-to-wear and intimates seek to further Lenzing’s circular economy vision.

Lenzing created the Tencel Limited Edition initiative in 2021 to explore the use of alternative raw materials, such as hemp or orange pulp, in textile production. The aim is to push the traditional boundaries of fiber production by leveraging natural resources. Lenzing sees scope to expand the use of TencelLuxe branded lyocell filament yarns in the high-fashion and premium segment. Already in motion is a push toward textile and fabric applications with carbon-zero Tencel branded lyocell fibers, in furtherance of Tencel’s mission to deliver True Carbon Zero.

As more brands and retailers see fit to green up their value chains, they have selected carbon-zero Tencel lyocell fibers to do so. Circularity and closed-loop systems have been recognized as the most important lever fashion can leverage to address its environmental impact. Fashion executives have already invested in or plan to invest in closed loop recycling this year. 

Sitex will be held in Surat, January 7 to 9, 2023. This will showcase spinning, texturing, weaving, knitting, embroidery, dyeing, braiding, and garment making machinery.

Exhibitors will showcase specialised textile equipment and machinery based on the latest technology including waterjet machines, rapier machines, airjet machines, high speed warping machines, needle loom machines, circular knitting machines, warp knitting machines, web formation machines, bonding and finishing machines, nonwoven andfelting machines and other tools and accessories.

The seventh edition of the event is aimed at entrepreneurs, industrialists and all other stakeholders and at supporting medium and small scale units. Sitex provides an excellent opportunity to textile manufacturers, dealers and suppliers to discuss the latest market innovations. Sitex is committed towards showcasing the Indian textile and textile machinery industry and provides an opportunity to stakeholders of the textile industry to showcase their wide range of products and services related to the textile industry and industry experts to discuss the latest market innovations.

Industrialists of Surat are known for quick adaptation to the latest trends and changes. Sitex is one of the most successful textile expos in India and Sitex 2023 aims at being a step higher in terms of lucrative business and upcoming visitors to the expo.

Cotton had enjoyed significant growth and prices for a while but the current status is that its consumption worldwide is on the downslide with China, India and Pakistan, the three of cotton’s largest customers, slow down on cotton requirement. As per recently released US Department of Agriculture (USDA) figures, China being the largest customer and importer is the industry barometer on the direction in which cotton heads and statistics reveal in China, consumption projected down one million bales this month to 35.5 million, marginally above the previous year but more than five million below two years prior. USDA cites many reasons such as declining supplies, downsizing of orders for yarn from fabric and apparel companies, lower profit margins for spinning mills and the overall higher inflation across the board.

China impacts the sector

Cotton-yarn imports into China plunged this year to its lowest level in a decade, sending exporting countries such as India on a hunt for alternative destinations. China is the world’s largest importer of cotton yarn from countries like India, Vietnam, Pakistan and Uzbekistan, as its own spinning mills do not produce enough to feed its apparel and textile industry. However, the value of China’s cotton-yarn imports declined 33.2 per cent in the first nine months of this year to $2.8 billion, from $4.3 billion in the same period last year, indicates the country’s customs data. The world’s second-largest economy accounts for more than 30 per cent of global apparel exports, and its major buyers are the European Union, US, Japan and Association of Southeast Asian Nations countries.

However, with Russia’s invasion of Ukraine, fuel and raw material prices have increased substantially. Annual inflation in the European Union was at 10.9 per cent in September and as costs for garment manufacturers and retailers have increased, consumers are spending less and retail sales have declined across Europe. China’s domestic apparel sales and cotton-product exports each fell by 5 per cent from January to September, reflecting the declining demand for the country’s apparel.

India experiences domestic downturn

As per Cotton Association of India (CAI) estimates, India’s domestic cotton demand for the 2022-23 season up to September is estimated to be lower by about 18 lakh bales (170 kg each) at 300 lakh bales or nearly 6 per cent less than last year’s 318 lakh bales. The association’s Cotton Crop Committee meeting attributed the decline in domestic consumption to a reduction in operations of mills due to slack demand for yarn and cloth. The cotton trade body said spinning mills operated at 40-60 per cent capacity in the first quarter, which may cause cotton consumption to drop in India for the year. India’s domestic cotton demand for the 2022-23 season up to September is estimated to be lower by about 18 lakh bales (170 kg each) at 300 lakh bales or nearly 6 percent less than last year’s 318 lakh bales.

Pakistan’s cotton crisis

In Pakistan, demand for cotton has dropped by 20 per cent to 12 million bales this year, compared to 15 million bales last year. The 40-year high inflation in the West, and a fear of recession, resulted in demand for Pakistan-made textiles dropping with textile manufacturers reporting a drop in exports. Without continuous availability of electricity and the inability to import cotton due to foreign currency crisis has led to a sizeable number of mills shutting down, thereby lowering consumption. As per experts, cotton will remain down in 2023 but not completely out as 2024 may see a new situation.

The Islamic clothing also known as Modest Fashion market is growing at five per cent a year. Modest Fashion is basically the type of clothing which is worn by Islamic people and is interpreted as being in accordance with the teachings of Islam.

The different types of Islamic clothing are abayas and hijabs, prayer outfits, burkha and naqaab, thobes and jubbas, sportswear and other. These clothings are generally worn by Islamic men and women.

The surging expenditure by the Islamic population on lifestyle and apparels are the major factors fostering the growth of the market. The growing popularity of Modest Fashion in the sports industry on account of favorable changes in regulations of international games and rising consumer investments in online retail distribution are also projected to bolster the market’s growth.

Additionally, the preference for modest fashion wear coupled with the increasing Islamic population also accelerates the demand for Islamic clothing. The extensive growth of the Islamic clothing market is commanding attention and attracting huge investments generating growth opportunities in the long run.

Based on product, the Modest Fashion market is segmented into ethnic wear, sustainable fashion and sportswear. Challenges such as maintaining a balance between changing fashion trends and upholding core Islamic principles pose a challenge for the market.

The global denim fabrics market size is growing at four per cent a year. India is likely to witness the highest growth followed by China and Latin America, while the US will be the largest market.

The market was 3,299.36 million meters in 2016. It grew to 3,429.93 million meters in 2017, 3,576.68 million meters in 2018, 3,737.21 million meters in 2019, 3,914.09 million meters in 2020 and 4,105.64 million meters in 2021. It is expected that the market will reach 4,313.56 million meters in 2022 and 4,541.05 million meters in 2023.

India’s market is smaller than that of China, Latin America, and the US but it is likely to have the highest growth up 2023. India’s market is expected to reach 419.26 million meters in 2023 from 228.39 million meters in 2016. The market’s size was estimated at 349.51 million meters in 2021 and 319.99 million meters in 2020. The US will remain the largest market in the world, but its average growth will be lower than the global average. It may grow by two per cent to reach 876.76 million meters by the end of 2023. Latin America and China may see an average growth of 7.31 per cent and 7.34 per cent respectively.