Exporters in Tiruppur are against an increase in the export credit rate. As per Tiruppur Exporter’s Association (TEA), if banks resort to increase the export credit rate at this juncture, competitiveness of Tiruppur’s knitwear export sector will be reduced and this will happen at a time when India’s competing countries have reduced the rate of interest and have gone in for a deep depreciation of their currencies.

Tiruppur wants an increase of the interest subvention provided under the Interest Equalization Scheme from three per cent to five per cent across the board as existing in the pre-Covid period. Exporters also want the export refinance scheme to be extended to banks to augment export credit. Under such a mechanism, banks would be encouraged to provide export credit in rupee to exporters and the same amount could be refinanced by the RBI at the repo rate.

This is expected to bring down the interest cost for export credit and provide the much needed competitiveness to Indian exports. Tiruppur’s knitwear exports have been falling for the last four months due to the challenging unusual business scenario in the global market and the twin impact of the Ukraine war and Covid pandemic. Tiruppur’s apparel exports fell 21 per cent in October 2022 from October 2021.

Shein’s global brand operations will be headed by Jessica Liu.

She comes to the role from southeast Asian e-commerce giant Lazada, where she served as president from 2020 to 2021. Prior to that, Liu has also been with Alibaba and Amazon. So she brings rich experience in the e-commerce sector across global markets. Shein founded in 2008 is a Chinese fastfashion company. In 2021, Shein managed to break into the US and European markets and achieved a gross merchandise value of $20 billion. Shein is upgrading hundreds of factories in its supply chain. Shein is the most searched fashion brand globally, topping searches across 113 countries, and is the largest online-only retailer in the world, producing between 35,000 and 1,00,000 new garments a day. The Chinese e-commerce store has exploded in popularity, and its fast-rate production has made rivals unable to keep up. While the clothing retailer has steadily fed the appetite for super trendy, budget-friendly threads, the true cost of the fast-fashion giant has led activists to criticize its business model and call for change. Shein is known for extremely low-priced and trendy apparel and accessories but is trying to sell more higher-price products with fatter profit margins. Shein currently ships its merchandise from China to more than 150 countries.

Global Sourcing Fair will take place in Vietnam, April 26 to 28, 2023.

The fair, the first of its kind in Vietnam, is expected to bring together more than 500 booths and attract more than 6,000 buyers from the US, Europe, Asia and other parts of the world. Global Sourcing Fair is expected to give visitors an opportunity to discover new and popular products of key industries in Vietnam, including household appliances, furniture, gifts, handicrafts, fashion, accessories, textiles and fashion accessories. Suppliers participating in the fair are mainly those who are qualified for exporting goods. From now on Global Sourcing Fair is scheduled to be organized every year in the country.

Vietnam is one of the important and strategic destinations for supplies, and is becoming a manufacturing center of the world thanks to its advantages in terms of geographic location, import-export taxes and improved infrastructure. Businesses and buyers have started looking for supplies of goods from Vietnam. The country’s textile and garment exports rose by 21 per cent during January 2022 to October 2022. The US had a 46 per cent share in these exports. Other major destinations for Vietnam’s textile and garment exports are Japan and South Korea.

Fibre52 may change the way cotton is prepared and dyed. The technology will minimize the use of water and energy and eliminate harsh chemicals while also offering a more durable and vastly improved natural-performance cotton fiber to rival synthetics. Traditional cotton treatment method, used for nearly 80 years, has involved hazardous chemicals and high heat that weaken the cotton fibers.

Fibre52’s process replaces harmful chemicals with bio-active products and uses lower levels of heat in the pretreatment process, saving up to 50 per cent in water, energy use and process cycle time. By including Fibre52’s dye technology, the cotton retains its natural properties and allows moisture to be transferred away from the skin, as opposed to the normal clingy feel of cotton. Fibre52’s technology combines the comfort of cotton with strength properties and moisture-management performance.

This inexpensive, eco-friendly alternative technology is easily transferable, allowing textile manufacturers to utilize current machinery with no additional capital investments and repeatable in resultant coloration and shade of material with no need to change dye recipes. Fibre52 cotton provides a steady heat flux and a short drying time, proving the wearer would feel more comfortable in hot and cold temperatures due to the slow change of the micro-climate.

Bangladesh wants zero tariffs on exports of finished apparel products — made with American cotton — to the US. This means Bangladesh is hoping for preferential market access of its readymade garment exports to the US. Compared to other countries, Bangladesh now pays the highest tariff on its apparel products exported to the US, which seriously reduces Bangladesh’s competitiveness in the US market.

Bangladesh will also request the US Food and Drug Administration to facilitate the registration process for Bangladeshi drug products and for US technical assistance in building quality certification infrastructure. On the other hand, the US wants to discuss the provisions of the SEED Act to reduce import duties on tree nuts (walnuts, almonds) in Bangladesh, opportunities for the export of agricultural biotechnology and seeds to Bangladesh, draft data protection law, draft regulations on digital, social media, OTT platforms and other digital systems and intellectual property rights. Other issues, the US wants to discuss relate to labor rights, such as freedom of association and collective bargaining, safe and healthy working environment, labor rights in EPZs, child labor and forced labor.

Bangladesh cannot access US Development Finance Corporation (DFC) funding for private sector energy, healthcare, critical infrastructure and technology projects after the suspension of GSP (Generalized System of Preferences) benefits in the US market since June 2013.

Heimtextil will be held in Frankfurt am Main, from January 10 to 13, 2023. Manufacturers and weavers will be offered a global range of fibers and yarns for decorative and upholstery fabrics, from the preliminary stage to textile finishing. Trevira will show the wide range of possibilities CS fabrics offer in the textile design of interiors. The focus will be on the functions and properties that Trevira CS fabrics offer in addition to their flame retardancy.

Other leading suppliers include Korteks and Reliance, Turkish manufacturer Bulut Tekstil. Architects, hotel decision-makers and designers will find a high quality range of outdoor fabrics, technical textiles for the contract sector, and imitation leather, including a large number of Spanish outdoor and contract specialists.

Italian manufacturer Tendaggi Paradiso as well as leather and imitation leather suppliers such as Turkish brand Flokser and German companies mah-ATN and Vowalon will also showcase their new products. The range will be rounded off by exhibitors Ambienta, Futura Leathers, Gebruder Munzert, Gruppo Mastrotto, and Indetex, who will present their high-quality fabrics for contract business directly on the boulevard in the form of selected complete stands. Citel has completely changed the finishing of its fabrics to reduce the environmental impact and will present new designs with thicker textures that the market is demanding.

As per latest Technavio study the baby clothing market is expected to grow $30.62 billion from 2022 to 2027 at a CAGR of 7.86 per cent during the forecast period. The market is fragmented due to the presence of a large number of players. Some key vendors are dominating, with their wide range of product lines and popular fashion brands.

Vendors operating in the global baby clothing market compete on different factors such as price, quality, brand, and variety. Companies incorporate different strategies to increase their share in the global market. The expansion of product lines provides an opportunity for leading players to maintain their dominance.

The outerwear segment accounts for the highest share of the market's growth. Outerwear baby clothing is further segmented into dresses, pyjamas, bodysuits, socks, cardigans, sweatshirts, and others. Among these, bottom wear products such as trousers and leggings hold a higher share, as they are available as unisex products, which has increased their demand.

The Asia Pacific and China account for 38 per cent of the market's growth. China, India, Japan, and Australia are the key markets for baby clothing in this region. The growth of the market in these countries is driven by factors such as the rising birth rate and changing lifestyles of the population. In addition, the rising disposable incomes of consumers in these economies are influencing consumers to purchase premium baby clothing products.

Bangladesh’s apparel exports in November 2022 were 26 per cent higher than the same month a year ago. The country’s total exports in the first five months of the current 2022-2023 fiscal year were up 10 per cent year on year. Of the total earnings, the country's income from readymade knitwear and woven garments surged 15 per cent.

Bangladesh saw exports soar more than 34 per cent in the 2021-22 fiscal year. Bangladesh’s readymade garment exports to non-traditional markets grew by 24 per cent from July 2022 to October 2022. Of the total amount, export revenue from woven products grew by 29 per cent. Earnings from knitwear goods were up by 19 per cent. From July 2022 to October 2022 apparel exports to Japan rose by 26 per cent. Exports to India rose by 55 per cent. Garment exports to Australia grew by eight per cent.

Apparel exports to South Korea saw a 40 per cent growth. Apparel export earnings to Mexico grew by 46 per cent. Bangladesh is exploring new destinations to make the garment sector sustainable. Exports to non-traditional markets have grown from less than a billion dollars to five billion dollars in the last 12 years.

Economic activity in the US manufacturing sector contracted in November 2022 for the first time since May 2020.

The November manufacturing Purchasing Managers’ Index registered 49 percent, 1.2 percentage points lower than the 50.2 percent recorded in October 2022. Six manufacturing industries reported growth in November, led by apparel, leather and allied products, while among the 12 industries reporting contraction were textile mills, furniture and related products.

The past relationship between the manufacturing PMI and the overall economy indicates that the manufacturing PMI for November corresponds to a 0.1 percent increase in real gross domestic product on an annualized basis. The US manufacturing sector dipped into contraction, with the manufacturing PMI at its lowest level since the coronavirus pandemic recovery began.Of the 18 manufacturing industries, only one reported growth in new orders in November–apparel, leather and allied products, while 14 industries reported a decline.The production index registered 51.5 percent in November, down 0.8 percent from October, but indicating growth for the 30th consecutive month.

The ISM prices index declined 3.6 percent in November to 43 percent, indicating raw materials prices decreased for the second time in 29 months. This was the index’s lowest level since a reading of 40.8 percent in May 2020.Over the past eight months, the index has decreased 44.1 percent, including a combined 26 percent plunge in July and August.

Price declines continue to be driven by relaxation in energy markets, copper, steel, aluminum, plastics and corrugate, as well as volatility in freight costs. The ten industries which paid decreased prices for raw materials in November were topped by textile mills and included furniture and related products. Seven industries, including apparel, leather and allied products, reported no change in prices for the month.

Employment

A number of companies reduced employment levels through hiring freezes, attrition and now layoffs. Turnover rates remained consistentand retirement issues generally the same rate since September 2022. Apparel, leather and allied products led the list of seven of the 18 manufacturing industries reporting employment growth in November. The five industries reporting a decrease in employment in November were topped by textile mills, while furniture and related products were among the six industries reporting no change in employment month to month.

Supplier deliveries

The delivery performance of suppliers to manufacturing organizations was faster for a second straight month in November. The Supplier Deliveries Index registered 47.2 percent, 0.4 percent higher than October. Prior to October, the last reading under 50 percent was in February 2016.Six of 18 manufacturing industries reported slower supplier deliveries in November, topped by apparel, leather and allied products and textile mills. The 11 industries reporting faster supplier deliveries in November compared to October included furniture and related products. Companies continue their efforts to reduce their total supply chain inventories, indicated by the contraction in new orders, slow expansion in manufacturing inventories and the right level of customers’ inventories. Of 18 manufacturing industries, the eight reporting contracting inventories in November included textile mills, and apparel, leather and allied products.Six industries reported customers’ inventories as too high in November, led by textile mills.

Order backlog

Only two industries reported growth in order backlogs in November–apparel, leather and allied products, and machinery. Twelve industries reported lower backlogs in November, including textile mills and furniture and related products.Weakness in European economies and China’s economic sluggishness, as well as the strong dollar, continued to constrain new export order activity and negatively impact new order rates. Apparel, textiles and furniture were among the ten industries reporting no change in new export orders for the month.

The pandemic-induced lockdown has catapulted online shopping for garments and accessories to a huge business for the fashion sector. As a great leveler, fashion became accessible beyond metros and Tier I cities, reaching out to larger consumer groups with purchase power in Tier II, III cities where many brands did not have a physical presence.

Traditionalists may have spoken about the advantage of tangible experience of shopping in a physical store, engaging ones senses of sight and touch, the success story of online shopping begs to differ to these pundits. What’s more, smart use of social media, technology and rich content, brought to life clothes and accessories for a customer to make a purchase decision. To corroborate this fact, many reputable brands have disclosed figures.

Gen Z takes the lead in online shopping

Puma for instance relies on online shopping for half its sales whilst H&M, Woodlands, Marks & Spencer and Arvind Fashions (Tommy Hilfiger, Calvin Klein, Arrow and U.S. Polo Assn.) attribute online sales as 42 per cent, 35 per cent, 25 per cent and 26 per cent respectively.

This phenomenal success story is being led by young consumers categorized as young millennial and Gen Z as they are natural inhabitants of the digital world and see no problem in living their fashion desires from online shopping. Many fashion and accessories brands are leveraging the popularity of e-platforms like Amazon, Myntra, Ajio and Flipkart to channel their sales whilst the big brands not only use these platforms but also offer their own branded e-stores.

Surprisingly, India’s department store chains are yet to experience the success story as substantially as individual brands. Westside, Pantaloons, Shoppers Stop and Lifestyle have reported positive growth but currently online sales contribute only between 6 to 10 per cent.

Growing online fashion marketplaces

As India surges ahead with the introduction of indigenous 5G network, online and smartphone penetration across the country is continually growing. Fashion marketplaces have become immensely popular after Myntra revolutionized this channel. Reliance’s Ajio and Tata’s Cliq are also catching up and consistently growing market share. Unhindered by individual brand guidelines, these e-commerce fashion sites are agile, quick to respond and provide customized portfolios for individual shoppers that have proven to be a winning strategy. Additionally, these marketplaces with their huge portfolio of brands don’t get as impacted on fickle brand loyalty.

Unprecedented growth of e-commerce

A recent Bain & Co. report projected for the next five years states, India will experience an annual growth rate of 25 to 30 per cent in online shopping. If this projections turns out to be true, India will then nudge the US out to become the world’s second largest online shopping market by 2024. In 2021, the Indian online shopper base was between 180 and 190 million. By 2027, the figures would read 400 to 450 million and valued at $150 billion. In 2022, the value is $50 billion, up 40 per cent compared to 2021. As online became the dominant channel and continue through 2022, many brands are now dedicating exclusive online collections and products that cater to a wider segment across price points.

Online shopping has spread across categories such as groceries, personal electronic devices, pharmaceuticals, etc but it is still the fashion sector that retains its pole position as the driver of India’s e-commerce boom.