There is strong opposition in Indian garment industry against the government's move to increase goods and service tax (GST) on textiles as the costs of raw materials are already rising. The Confederation of All India Traders believes, status quo on GST rates on finished goods be maintained and changes should be made only after a consultation with the textile ministry and industry stakeholders In fact, Praveen Khandelwal, Secretary General also plans to approach Finance Minister Nirmala Sitharaman and state finance ministers requesting them to reverse the proposed hike.

Contrasting views from the industry

Though the proposed hike is being opposed by many industry associations, a few consider it beneficial for the industry. A Sakthivel, Chairman, AEPC opines, the GST hike rates will lessen the burden of tax compliance and help in releasing input tax credit residues accumulated on account of the inverted tax structure, saving crucial working capital for small businesses. Dealers in finished goods, however, disagree with him. Kumar Rajagopalan, CEO, Retailers Association of India, opines, such a steep hike will impact the remaining 85 per cent of the industry while benefitting only 15 per cent. It may also lead to a rise in garment prices.

BC Bhartia, National President, CAIT, believes the tax may block the capital of small traders and may prove to be a regressive step for the industry. The Retailers Association of India recommends a flat 5 per cent GST on the entire textile value as a solution to this problem. The will not only resolve the issue of inverted tax structure but also boost sector’s growth.

Clothing Manufacturer’s Association of India also calls the hike unjustifiable. The market may see a 15-20 per cent price increase in apparel costs in coming season even without the revised GST rate as prices of raw materials, especially yarn, packing material, raw cotton and freight are already rising.

The prices of raw cotton have increased by Rs 130 per kg so far this year compared to the preceding year, informs MP Muthurathinam, President, Tiruppur Exporters and Manufacturers Association. Further hike could force many units to shut down.

Mixed response from manufacturers

Tax experts say, the 7 per cent hike is substantial and would have a mixed effect on textile manufacturers depending on their business model. If they absorb the hike, it will erode their profit margins. On the other hand, if they pass it on to consumers, it will further strain their monthly budgets, adds Bipin Sapra, Indirect Tax Partner, EY India.

In 2020, fast fashion retailer Zara released a pair of sneakers with Playstation. In 2021, Zara partnered with Everlast in January, Kassl Additions in September and Charlotte Gainsburg in October. And in the last three weeks, it’s rolled out collaborations with Korean streetwear label Ader Error, biotech company LanzaTech and TRX, a company that makes at-home fitness equipment and publishes digital workout videos.

Each of these collaborations connects Zara with a buzzy area of fashion. The Ader Error collaboration encompasses physical and digital outfits. The LanzaTech collab focuses on sustainability by making clothes from captured carbon emissions, and the TRX partnership links Zara to on-the-rise at-home fitness.

Zara’s strategy is to tap partners that specialize in emerging spaces and gain a foothold in those categories. While collaborations are often planned months in advance, Zara’s change in strategy around collabs comes just as parent company Inditex is going through a leadership transition. Longtime CEO Pablo Isla stepped down in November and will be replaced by Oscar Garcia Maceiras, and Marta Ortega has been promoted to chair of the company. Between November 1, 2021 and December 10, 2021 Inditex’s sales increased ten per cent over 2019 and 33 per cent over 2020.

Uwe Rondé has a strong technical background and extensive management experience. He brings with him over 30 years of experience in the machine tool business and the manufacturing space. Most recently, he was managing director of EMAG in Germany, having previously headed up the machine tool and production systems supplier’s Chinese subsidiary. He was also CEO of Franz Kessler, one of the biggest motor spindle manufacturers in the world, and of Intercontec Pfeiffer, a manufacturer of connectors. He will continue to drive the further development of technological innovation, product competitiveness and management as well as the success of Saurer’s future strategy.

Saurer plans and instal transport systems, especially between roving frames and ring-spinning machines. The company has successfully implemented over 100 systems worldwide. The new product line serves as customers’ expert engineering partner for integrated automation solutions across the entire textile value chain. It consists of specially designed automation elements that the project engineering team combines into tailored system solutions that are seamlessly integrated into customers’ processes. These offer tailor-made automation solutions in the areas of staple fiber spinning and twisting, filament twisting and cabling and project engineering. Thanks to these solutions, Saurer is meeting the growing demand for cost-effective automation of spinning.

Vicunha has launched denim made with hemp. Hemp is one of the most versatile and sustainable fibers in the world. Among the advantages of hemp are its high-yield culture and a renewable resource. This means that it produces much more fiber per acre compared to other raw materials, requiring even less water and land in the crop.

Vicunha is one of the first Brazilian textile companies to invest in manufacturing fabrics with hemp in the country. Among the novelties produced with the mixture of cotton and hemp, there are four products: hemp and hemp light (in denim) and Itacaré and Maragogi (in twill).

The launches are part of the Vicunha’s V.Eco product line. Vicunha is in a constant search for sustainable innovations and solutions that save resources and reduce the impact on the environment. And it saw this opportunity in hemp, to deliver to the market a sustainable product, of high quality and low environmental impact.

In addition, the Brazilian jeanswear brand has also created, in partnership with the Swedish company Polygiene, an innovative technology that inhibits the growth of odor-causing bacteria created from sweat, heat or humidity. The products developed by Vicunha are available in denim and denim color bases.

The Republic of Korea has invested heavily in the textile, garment, leather and footwear industries of Vietnam. Korea is investing in Vietnam’s textile and garment industry in a big way. As per Vietnam Trade Promotion Agency, Korea is one of the biggest trading partners. The move is to satisfy growing orders from US importers, mostly leading retailers such as Target, Walmart, Kohls, Kmart, Sears and Tesco. With more than 500 businesses based in Vietnam, and nearly two billion dollars in total committed capital, Korean investment has helped bolster Vietnam’s textile and garment industry.

Korea is one of the leading economic partners of Vietnam, ranking first in foreign direct investment and third in trade with Vietnam. Bilateral trade in the first ten months of 2021 was up 17.6 per cent year on year. Korea hopes to invest more in Vietnam’s industry, especially in material production and design, so as to benefit from preferential treatment under free trade agreements.

Vietnam is the second biggest exporter of leather and footwear products in the world. There are nearly 2,000 enterprises in this sector, and they engage in all production steps. Meanwhile, the Republic of Korea is one of the five main export markets of this industry. Given this, Vietnamese businesses have relatively big opportunities to cooperate with Korean importers to boost exports.

Desolina Suter is the new fashion director of Première Vision. Of dual French/Italian origin, Suter is an expert in materials, colors and trends. She began her career as a textile designer for the Boussac Group, and later worked for Habitat. She oversaw the development and launch of Armani’s home collection. After working for four years at the Italian fashion house, and interested in taking on new projects and challenges, Suter founded her own consulting firm, specialised in fashion, home and decoration. For 20 years, she has worked to imagine and propose creative solutions to inspire and assist professionals - industrialists and fashion and design brands - in developing their products.

Suter will be in charge of coordinating the Première Vision fashion team, charged with planning the organisation of forward-looking fashion information at a time of important changes to the Première Vision show calendar. This involves developing seasonal directions in advance of the shows, in collaboration with international experts and professionals, and in association with exhibiting manufacturers. She will also help in adapting key seasonal, material and color directions to the needs of the market, to provide concrete support to manufacturers as they develop their collections of materials. Further, she will be responsible in developing new communication channels and tools to transmit Première Vision's fashion information in an impactful manner to its target audiences: exhibiting manufacturers, designers and creative fashion and accessories brands and more.

Entrepreneurs in Namibia are positioning themselves to seize the opportunities created under the African Continental Free Trade Area (AfCFTA) agreement. Hurdles in paperwork due to stringent requirements for compliance and long wait often thwart their efforts. The duration for imports and exports also eats into their cost of doing business and adds to the operations of the business. The trade barriers are many and thus discourage traders from stimulating cross-border trade. To leverage the free trade area, entrepreneurs are positioning their ventures to maximize opportunities under the agreement. Operators in the tourism fraternity are also exploring ways to expand market share within the continent.

They are looking at collaborating with other ventures in the African continent through inclusive packages for the continental market and populace. The sector is pleased about AfCTA as it contributes to the movement of capital and natural persons, which would be an added advantage for the tourism sector. The agreement also presents more opportunities for the local economy and contains strong potential to promote industrialization in sectors including textiles, apparel, leather, milk and dairy products, wood and paper, metals, chemicals, vehicle and transport, electronics and other machinery. Namibia has always taken part in negotiations to reduce non-tariff barriers and remove trade barriers of products manufactured in Africa.

Tencel has launched a campaign to combat carbon emissions caused by the fashion industry. The campaign wants to continue to raise awareness and inspire action to make a change. The movement has managed to plant over 7,500 trees to combat carbon emissions from the fashion industry. Within the initiative, Tencel has also begun a partnership with renowned artist Bodil Jane to create the artwork for the campaign.

TikTok and Instagram users are encouraged to post a 15-second video while wearing their favorite outfit by eco-friendly brands or created with sustainably made pieces, showing how cool it is to wear eco-friendly fashion. At the end of the posting, they can redeem the certificate to plant a tree in their name. The fashion industry is responsible for eight per cent to ten per cent of global carbon emissions. Fast fashion has only exacerbated the problem as consumers are increasingly purchasing clothes with reduced shelf lives. Although the world is striving to achieve net-zero carbon, fashion isn’t doing enough. The industry has a long way to go in combating waste and fast fashion, but with such movements people are finally empowered to take action and choose brands that are caring for the planet.

Cotton production in India during the cotton season 2021-22 is expected to be above 350 lakh bales, says Indian Cotton Federation. The increase in minimum support prices has encouraged farmers and helped maintain the area under cotton. It incentivised farmers to take up better crop management practices. On the export front, too, the demand is robust. The Indian textile industry saw good demand during Covid because of the market for protective garments and later because of the market going up for garments and made-ups.

The challenges now are the need for fiber quality, proper grading, improved seed and initiatives to realise better yields. It is believed that with the right initiatives Indian farmers can reach an yield of 1000 kg. Also many brands in the US and Europe are forcing suppliers to go in for the sustainable tag and Indian cotton has not been recognised as sustainable. So there is a need for simple sustainable guidelines, which can be easily implemented by the Indian farmer.

Out of India’s total cotton exports, 40 per cent is exported to China. Similarly China has a 28 per cent share in India’s yarn exports. In cotton and cotton yarn, Vietnam is the third largest importer for India.

A new market research report ‘Smart Textiles Market’ estimates, the market will grow at a CAGR of 23.2 per cent from $2.3 billion in 2021 to $6.6 billion by 2026. Growth will be mainly driven by adoption of advanced technologies, miniaturization of electronic components, expansion of wearable industry, etc.

The sudden outbreak of COVID-19 impacted global demand for smart textiles with many companies being forced to adopt remote working practices. Lockdowns in almost all major countries disrupted supply chains, halting manufacturing activities and delaying production. As a large share of the global population is working from home, there is growing preference for indoor fitness activities, leading to a surge in demand for apparels and accessories integrated with smart applications and sensors that can monitor heart rate and oxygen levels. Some countries like the US are also using smart textiles in other forms like heated blankets and socks in some countries like the US.

Passive smart textiles used in military and protection

The first generation of smart textiles is known as passive smart textiles. These can only sense environmental conditions or stimuli but cannot adjust according to external changes. Some passive smart textiles include optical fiber-embedded fabrics, conductive fabrics UV protective clothing, antibacterial fabric textiles, multilayer composite fibers and textiles, plasma-treated fabrics, ceramic-coated fabrics, conductive fibers, and fabrics with optical sensors. These are majorly used in the military and protection vertical due to their ruggedness.

Companies offering passive smart textiles across the world include DuPont, which provides fibers, industrial fabrics, and covers used in the medical, military, and aerospace verticals, and Outlast Technologies, which provides acrylic, viscose, and polyester fabrics used in bedding, apparel, and footwear applications.

Sensitive to external stimuli

Smart textiles are sensitive to environmental conditions or stimuli generated through mechanical, thermal, chemical, electrical, magnetic, or any other sources. They can monitor body heat, heart rate, respiration rate, motion and speed through various sensors. On being used in gloves, shirts, and pants, these smart textiles can also sense different health parameters of a wearer. They can also track the wearer’s psychological movements such as bending, location, movement, and pressure.

In terms of growth, North America holds the largest share in the smart textiles market due to its technological innovations and advancements. The country is witnessing a demand boom from the electronics and medical industries. Some key players are: DuPont, Alphabet , Jabil, AIQ Sensoria and Gentherm from the US; Interactive Wear and Adidas from Germany, Hexoskin from Canada and TenCate from the Netherlands.