India’s apparel exports earnings are expected to recover by 8 per cent to Rs 28,150 crore in FY2025 from Rs 26,000 crore in FY2024. As per the rating agency ICRA, this recovery will be fueled by a replenishment of stock in the US and the EU regions, coupled with the advantage of a low base.

Retail apparel brands in the US and the EU are anticipated to clear their high inventory backlog and place orders for the Summer 2024 season in the first half of FY2025. As per ICRA, the industry outlook is expected to remain stable during this period despite certain challenges. 

Priyesh Ruparelia, Vice President & Co-Group Head, Corporate Sector Ratings, ICRA, highlights, apparel exports are expected to recover in FY2025 as exporters replenish stocks in the US and the EU. These benefits will be passed on to the consumers despite cost rationalisation in raw materials in FY2024. 

Government initiatives like the Production Linked Incentive (PLI) schemes, PM Mitra parks, proposed Free Trade Agreements (FTAs), are also expected to foster growth in apparel export revenues.

In April 2022, out of 64 applicants for the PLI 1.0 scheme, 56 fulfilled mandatory criteria and received approval letters. Additionally, twelve applications are currently under evaluation. Investments totaling approximately Rs. 2,119 crore were made by 30 selected applicants until September 2023. These schemes, along with PM Mega Integrated Textile Region and Apparel (MITRA), are poised to enhance India's position in the global apparel trade.

Despite a 22 per cent in US apparel imports, clothing store sales in the US and the EU grew by 4 per cent Y-o-Y in CY2023, notes ICRA. The operating margins of apparel companies grew at a moderate rate of 9.8-10 per cent in FY 24 compared to 11.3 per cent in FY2023, primarily due to weaker performance in 9M FY2024 and volume contractions. 

In FY2025, profitability of these companies is expected to remain unaffected despite lower cotton yarn prices, weak demand, stability in export incentives and economies of scale in FY2025.

The upcoming edition of ITMA ASIA + CITME promises to drive regional growth with its pivotal showcase of textile technology.  To be held at the Singapore Expo from October 28 to 31, 2025, this significant event will be co-organised by Cematex, CTMA, and CCPIT-Tex. 

Spanning across 60,000 sq m, the exhibition aims to host over 600 exhibitors and attract around 30,000 visitors. With its strategic location in Singapore, the event aims not only to cater to South and Southeast Asia but also to tap into vital markets in the Middle East.

Highlighting the immense potential of Singapore, where a large number of textile and garment companies are setting their production hubs, Ernesto Maurer, President, Cematex, emphasizes its accessibility and visa-friendly policies that make the country an ideal platform for engaging with a broader spectrum of buyers.

Gu Ping, President, CTMA, opines, the combined exhibition in Singapore opens up fresh avenues for exploring regional opportunities.

Leading textile technology providers, such as Dilo Systems GmbH also view the Singapore edition of ITMA Asia + CITME 2025 as a prime opportunity to showcase their latest innovations.

Chandrima Chatterjee, Secretary General, CITI, emphasises, the exhibition will address the industry growing needs for optimising production, quality control, and sustainability and help leverage the latest in technology and innovation.

Kering has announced the immediate appointment of Melanie Flouquet as Chief Strategy Officer and Armelle Poulou as Chief Financial Officer to the Group's Executive Committee. This brings the total number of committee members to 13, with women now comprising 46 per cent of the group.

Melanie Flouquet, who holds a degree from EM Lyon and is a Chartered Accountant in the United Kingdom, joins Kering from JP Morgan, where she served as Managing Director leading the Luxury Goods Equity Research team for 20 years. She assumed the role of Chief Strategy Officer at Kering in May 2021.

Armelle Poulou, a graduate of HEC, brings extensive financial experience from her tenure at Procter & Gamble, Hewlett-Packard, and EDF. She joined Kering in 2019 as Director of Corporate Finance, Treasury, and Insurance, before being appointed Chief Financial Officer in September 2023.

The Executive Committee, headed by François-Henri Pinault as Chairman and CEO, also includes key figures like Francesca Bellettini, Jean-François Palus, and Gregory Boutte. These appointments signify Kering's commitment to diversity and expertise in its leadership team.

Amid a global shift away from China, India is positioning itself as a top manufacturing destination in Asia. However, the country needs to address certain challenges like high taxes and supply chain inefficiencies to surpass Vietnam and attract foreign investment.

To diversify its supply chain away from China, the US is increasingly focusing on countries like India and Vietnam. India offers low labor costs and a warming relationship with the US. However, its complex regulatory landscape with 29 states having different policies, poses challenges compared to Vietnam’s streamlined processes.  

Vietnam also leads in exports due to its established electronics manufacturing prowess. 

Although US tech giants like Apple and Google are expanding operations in India, import duties on information and communication technologies hinder India's competitiveness. Prime Minister Modi's government aims to gradually reduce tariffs to attract foreign investment, particularly in electronics manufacturing.

Despite India's ambitions to become a developed economy by 2047, infrastructure shortcomings, including lengthy shipment delays, remain a concern. The government has allocated significant funds to modernize logistics systems, emphasising the importance of improving transportation networks.

While Vietnam enjoys a close relationship with China, India's potential lies in its strategic advantage as a non-China alternative for supply chain resilience. 

However, India must demonstrate its ability to compete effectively in electronics manufacturing to sway global corporations from Vietnam.

Iconic apparel brand under Levi Strauss & Co, founded in 1986, Dockers is transforming its operations to appeal to millennials and Gen Z. 

Over the past few years, the brand has been expanding its customer base to target the 25-to-35 age demographic. It has also been updating styles and embracing Dockers' vintage roots while introducing minimalist yet comfortable clothing options. 

Dockers has revamped its product range by introducing a range of bottoms and tops crafted from comfortable fabrics, catering to the preferences of younger consumers.

The brand has ramped up its e-commerce efforts and expanded its global retail footprint by opening stores worldwide. Besides, it has unveiled a new marketing campaign, ‘Living Original,’ featuring a diverse lineup of ambassadors, including model Taylor Hill and NBA player Jordan Poole. The campaign showcases how classic khaki pants can be styled with contemporary staples like sneakers, denim, and button-downs, resonating with the fashion sensibilities of younger generations.

The brand's transformation journey began four years ago with the goal to broaden its appeal and position its products as trendy and versatile options for casual wear, emphasises Natalie MacLennan, CEO of Dockers. 

To achieve this, Dockers is leveraging various sales channels, including new wholesale partnerships and its direct-to-consumer platform. The brand's international expansion efforts, particularly in markets like southern Europe and Mexico, have been instrumental in driving sales growth.

In line with its efforts to appeal to younger consumers, Dockers is tapping into the trend of secondhand fashion through a vintage-inspired collection and collaborations with influencers like BMX world champion Matthias Dandois. This approach aligns with the brand's overarching goal of modernising its image while staying true to its khaki roots.

Bangladesh’s RMG export earnings are expected falter in the second half of the current financial year, says a report by Bangladesh Bank. 

According to the report, the apparel sector in Bangladesh faces numerous challenges at present. These include high interest rates, inflation, precarious geopolitical environment and concerns regarding productivity growth.

To address these issues, the report makes certain recommendations including diversifying of garment production, Key recommendations include diversifying garment production, enhancing productivity and efficiency, reducing lead time, fostering product innovation, exploring new markets, conducting effective research, improving the skills of garment workers, and modernising production processes to sustain export momentum.

Currently, Bangladesh's export earnings form the RMG sector has been badly impacted by the Russia-Ukraine conflict and global inflation. However, the sector is witnessing resurgence in purchase from major international brands and retailers. This rebound signals progress in mitigating the impacts of the Covid-19 pandemic and the Russia-Ukraine conflict.

However, amidst these developments, the export of apparel manufactured in Bangladesh may face difficulties in the upcoming months due to high interest rates, price inflation, geopolitical uncertainty, sluggish productivity growth, and a complex financial landscape..

According to the report, in the second quarter (October-December) of the current financial year, the revenues from the RMG sector increased by 1.35 per cent from the previous quarter to $1,177 crore while it decreased by 7.46 per cent  from corresponding quarter last year. 

Knitwear exports experienced a steeper decline of 0.67 per cent to $671 crore from the previous quarter and a 4.17 per cent decline from the same period last year.

Exporters attribute this crisis to reduced garment imports by developed countries, including the United States, due to high inflation. 

The Textile Recycling Association (TRA) is urging the UK government to intervene and regulate the industry to stave off a potential collapse. One of the key recommendations of the association includes the implementation of an Extended Producer Responsibility (EPR) scheme by the association.

Representing over 75 per cent of the textile recycling industry, the TRA has expressed concerns over its collection of textile waste from various outlets like charity shops, recycling centers, and community textile banks. The association is particularly concerned about the capacity exhaustion by processing plants, which has raised fears of operational limitations.

Warning of dire environmental consequences on faltering of textile collection operations, TRA cites the potential for microplastic and water pollution that has led to generation of 92 million tons of textile waste annually. 

Recent policy shifts in European countries like France, Denmark, Sweden, Finland and Austria have further compounded these challenges leading to European countries like France, Denmark, Sweden, Finland, and Austria, proposing bans on the export of used textiles within the EU. 

Emphasising on the urgency of the situation, Dawn Dungate, President, Textile Association, calls for swift government action to implement necessary reforms. 

She highlights the industry's pivotal role in waste management, supporting charity, retail, and local authorities, particularly amid the rise of fast fashion.

The crisis in the Red Sea emerges also contributes to the sector's woes, leading to longer shipping routes and skyrocketing costs. Combined with escalating taxation from African and Asian markets and mounting pressure to curtail waste exports, this places immense financial strain on the industry.

Moreover, the proliferation of low-quality textiles from fast fashion exacerbates operational challenges, driving up costs and pushing many textile merchants perilously close to financial collapse.

For the fourth consecutive month, Pakistan's textile exports grew by 3 per cent Y-o-Y to $1.3 billion in March 2024 as against $1.26 billion during the same month last year, shows provisional data from the All Pakistan Textile Mills Association (APTMA).

However, despite this monthly improvement, Pakistan’s textile exports for the first nine months of the fiscal year 2023-2024 declined by 0.3 per cent or $0.04 billion to $12.44 billion.

On a monthly basis, exports dropped by nearly 8 per cent compared to February's $1.41 billion.

Textile exports play a crucial role in Pakistan's economy, particularly in addressing foreign exchange shortages. They constitute a significant portion of the country's exports and help bolster its reserves, which are often supplemented by borrowing in foreign currencies.

Recently, APTMA strongly opposed a 223 per cent increase in gas tariffs over the past year, citing its detrimental impact on Pakistan's export-oriented textile industry. The association highlighted concerns that such hikes make it difficult for the industry to compete internationally, leading to a loss of market share.

APTMA urged the federal government to reconsider the steep rise in gas tariffs to ensure the competitiveness of Pakistan's textile exports in the global market. It emphasised the significant contribution of the textile sector, accounting to 60 per cent of the country's total exports, and warned of the adverse effects of the recent tariff increase on the industry's viability.

Intensifying its expansion into the Middle East, fashion brand Dolce & Gabbana is particularly focusing on the Saudi Arabia market. The brand has inaugurated its flagship store in Riyadh. Additionally, it is forging a formal partnership with Diriyah Company, a state-owned organisation entrusted with the restoration and management of the historic Diriyah area.

Alfonso Dolce, CEO, Dolce & Gabbana, says, the brand had a long-standing interest in Saudi Arabia for its entrepreneurial and dynamic economy alongwith a rich cultural heritage. However, the brand is adopting a cautious approach towards this expansion as it aims to deepen its understanding of the local market over the years.

Besides Riyadh, Dolce & Gabbanna plans to expand in Jeddah by setting up stores in the city by 2024-end. It was one of the first international brands to host a fashion show in the Gulf region post-pandemic, showcasing its Alta Moda collections in Saudi Arabia.

Underscoring the brand’s pioneering spirit, Stefano Gabbana, Co-founder, also emphasises on its integration with local culture and traditions, as showcased in its participation in events like the Tantora Festival in Al Ula and the fashion show in Dubai. 

Euratex, alongside CEC and Cotance, is launching the SkillBridge project to tackle the lack of qualified workers in the textile, clothing, leather, and footwear (TCLF) industry. Backed by the EU, SkillBridge will create regional partnerships with industry, education, and authorities.

The project will develop action plans to address evolving skill needs and offer mobility programs for industry stakeholders. It will also support small and medium-sized businesses in upskilling or reskilling their workforce.

SkillBridge complements similar initiatives like MetaSkills and Aequalis, all aiming to fulfill the goals set in the TCLF Pact for Skills. Euratex hopes these projects will strengthen collaboration across the EU's TCLF sector.

Euratex Director General Dirk Vantyghem emphasized attracting young people with the right skills is essential to strengthen the European textiles industry. He expressed gratitude for the EU's support and called on regional authorities to collaborate on designing a successful skills strategy.