Cotton Futures

Cotton futures closed near the lows on Monday after giving back their initial strength out of the weekend. The front month cotton futures contract lost 147 points to close at 82.91. Weekly NASS data showed that 49% of the cotton crop has been harvested as of 10/29, which is up from 41% last week and 2ppts ahead of the average pace. Cotton conditions improved by 2 points during the week for a final Brugler500 rating of 269.

Pakistan Market

The local cotton market in Pakistan remained easy on Monday, with modest trading volume. The spot rate of cotton in Sindh is Rs 18,000 per maund, while the rate of phutti (seed cotton) is in between Rs 5,500 to Rs 7,400 per 40 kg. The rate of cotton in Punjab is Rs 16,000 to Rs 17,800 per maund, and the rate of phutti is in between Rs 6,500 to Rs 8,200 per 40 kg.

China Reserve Auction

Yesterday's China cotton reserve auction had a turnout rate of 74.82%, with 20,000.0617 tons of cotton offered for sale and 14,963.0787 tons actually sold.

Pakistan Market Remains Easy, and China Reserve Auction Turnout Rate at 74.82%.

CREDITS: Cotton Market Bulletin

Shein, the world's largest online fashion retailer, has acquired Missguided, a British fast-fashion brand, from Frasers Group. The deal marks Shein's first acquisition of a major Western brand and its latest move to expand its global reach.

Missguided is a popular brand among young women, known for its edgy and affordable clothing. Shein plans to integrate Missguided's product offerings into its platform, giving customers access to a wider variety of fashion choices.

The acquisition is part of Shein's broader strategy to become a one-stop shop for all things fashion and lifestyle. The company has been rapidly expanding its product offerings in recent years, adding everything from home goods to beauty products to its platform.

Shein is expected to leverage its expertise in e-commerce and supply chain management to help Missguided grow its business. The company also has a strong track record of marketing to Gen Z and Millennial shoppers, which is Missguided's target demographic.

The acquisition is a win-win for both companies. Shein gains access to a new customer base and a popular brand, while Missguided benefits from Shein's resources and expertise. The deal is also a sign of Shein's growing ambitions as it seeks to become a global fashion powerhouse.

Aracne's system uses photonics, the Internet of Things, and artificial intelligence to predict potential manufacturing defects before the fabric is made.

This can help to reduce production defects by more than 50%, foster the circular economy, and improve the sustainability of the textile industry.

The company plans to release its first product in the second half of 2023 and expects to generate €6 million in sales by 2025.

Aracne's technology has been nominated for several awards, including the Innovation in Sustainability Award at the most recent ITMA trade fair.

The company is based in Argentona, Spain, and draws on a number of patents for technologies which identify and show defects.

Each of these technologies can be purchased as a module, which means that manufacturers can tailor the solution to their knitting machines.

Overall, Aracne is a promising new company with the potential to revolutionize the way that knitwear textile manufacturing is done.

The fact that one country’s loss is another one’s gain is coming true for India’s top knitwear hub Tirupur. Its slowly losing space due to the progress made by Bangladesh knitted fabrics manufacturing segment. The Free Trade Agreement (FTA) between India and Bangladesh is negatively affecting India’s textile exports and its market share within the domestic industry. Customs exemption on Bangladesh fabrics has made them far cheaper and resulted in increased imports into India’s mid-market segment. This has led to demand for the more expensive high-tech Tirupur products going down. 

By importing cost-effective raw materials from China, Bangladesh is now exporting high-tech finished apparels to the EU and US markets where they are exempt from duties due to Bangladesh’s status as a least-developed country. Also, the cost-effectiveness and durability of man-made fibres in the apparel segment has added to the downfall of the knitwear segment that Tirupur is well-known for.

Moreover, growing import of dyed knitted fabrics, despite import duty, is a matter of concern. As Prabhu Dhamodharan, Convenor of Coimbatore-based Indian Texpreneurs Federation (ITF) points out, dyed knitted fabrics are used to make all types of garments. During the first five months of the current fiscal, India imported knitted fabrics worth Rs 2,270 crore, mostly from China.

The influx of dyed knitted fabrics directly impacts various sub-sectors, including spinning, knitting, and processing.

Tirupur manufactures around Rs 35,000 crore worth of knitwear apparels like T-shirts, innerwear, women’s leggings and shorts for exports and Rs 20,000 crore worth products for the domestic market.

Rapid decrease in Tirupur’s global exports, domestic markets

The Tirupur Exporters Association highlights, import of knitted fabric from Bangladesh have risen to Rs 2,489 crore as compared to Rs 1,576 crore in the previous fiscal 2021-22.  While it is estimated the value of Indian exports is around $16.5 billion, Bangladesh has already crossed this figure with exports over $44 billion, making it necessary for the Tirupur knitwear industry to buck up with stiff competitive.

Although it seems that Tirupur’s export share increased during the past two years in comparison to clothes coming from other Indian garment centers. However, the dollar share in export of clothing has decreased, since the apparent increase in export is in reality more due to the rupee’s devaluation rather than volume increase. In reality, Tirupur exported fewer clothing in 2022–23.

Exports have decreased consistently from Tirupur when measured in dollars from August 2022 for the following seven months, with exports falling the most in February-March 2023 by around Rs 1,100 crore less than the same months in 2022. Also, there was a sharp decline in shipments in October 2022 worth Rs 2,164 which was a sharp drop from Rs 3,290 crores in October 2021.

Popularity of man-made fibres affecting business

Orders for knitted fabrics from Tirupur are also dropping due to competition from cheaper and durable man-made fibers that are flooding the fast fashion segment. Export orders from mills producing man-made fibers in Surat and other places in Gujarat is affecting Tirupur’s business. Other leading Asian apparel exporting countries such as Vietnam, Bangladesh are also facing lower order volumes but somehow doing better than India due to their lower labor costs, lower input costs, and duty exemptions in trade practices.

Although the Tirupur cluster has around 30,000 units including ancillary ones, most of them are not being used to capacity due to slow global demand. Currently, the bigger mills have some bulk global orders but the medium and smaller units are suffering with fewer orders. International export orders have reduced by 40–50 per cent from last year as most companies have not placed big orders for the upcoming Christmas season. Tirupur manufacturers will now have to wait it out for 2024 spring-summer orders which are placed by the end of this year, meaning profits will not come in for a long time.

 The downturn in important apparel markets of the US and EU has affected the entire global trade and knitwear industry remains apprehensive that the worst is yet to come.

Guangdong, a cornerstone of China's textile manufacturing sector, particularly Shenzhen, is gearing up to take center stage at the Intertextile Shenzhen Apparel Fabrics event, which is set to be held from November 6 to 8, 2023. This annual event has a rich history of bringing together various players from the apparel value chain, ranging from wholesale markets, fabric producers, clothing processing plants, and fashion enterprises, such as Shenzhen's renowned Dalang Fashion Town.

This year, the organizers anticipate a substantial turnout of exhibitors and visitors from China and beyond. Messe Frankfurt HK Ltd's General Manager, Ms. Wilmet Shea, highlights the wide variety of domestic and foreign textiles and clothing accessories on display across all four halls. She emphasizes the return of the International Hall of the Japan and Korea Pavilions, offering high-traffic areas for suppliers looking to expand their presence in South China.

The Japan Pavilion will showcase accessories, pattern designs, and high-quality cotton and man-made fabrics for various fashion segments. Meanwhile, the Korea Pavilion will display a diverse array of fabrics, including polyester and rayon jacquard double knitting and recycled and woven materials.

Additionally, exhibitors from other countries will present products ranging from functional fibers to denim fabrics. Notable exhibitors include Bossa from Turkey, Henglun Textile from Vietnam, and PT WinnerSumbiri Knitting Factory from Indonesia.

Beyond the array of sourcing options, the event will feature a comprehensive fringe program offering insights into fabric trends and sustainability. Experts will lead discussions and seminars, with topics such as Fabrics China Trend A/W 24-25 forum and Empowering Sustainability and Circularity through Innovation.

This event, held concurrently with Yarn Expo Shenzhen, DPARK (Fashion Design), and PH Value, is organized by Messe Frankfurt (HK) Ltd, Messe Frankfurt (Shenzhen) Co Ltd, the Sub-Council of Textile Industry, CCPIT, and the China Textile Information Center. After a challenging period due to the pandemic, the textile industry is poised to regain momentum, with the Intertextile Shenzhen Apparel Fabrics event serving as a crucial platform for industry players to reconnect and showcase their latest offerings.

Connect with key buyers and decision-makers from the Indian subcontinent's mother and children sector.

CBME India 2024, the 8th edition of the prestigious trade show, offers an unparalleled opportunity to connect with key buyers and decision-makers from the Indian subcontinent's mother and children sector.

Forge alliances with leading Indian and international buyers.

With 150 influential exhibitors, 8 country pavilions, over 6000 trade visitors, and 200 top hosted buyers, CBME India 2024 is the perfect platform to showcase your flagship products and solutions to a captive audience.

The revision of the Textile Labelling Regulation (TLR) seeks to bring about significant changes aimed at standardising practices across the EU. This includes standardising fibre composition testing methods, rules on leather, and sizing standards, as well as shifting from traditional physical labels to digital ones. The revision is also expected to refine the fibre classification process, making it more transparent and efficient.

Challenges: One anticipated challenge is the potential transition from the current GINETEX symbols to a new EU standardised code for Product Care Information. This shift could lead to misalignments with widely accepted international standards. Additionally, there is a debate on whether the revision should strictly address material composition or embrace a wider spectrum by incorporating expansive sustainability metrics.

What's next: The Commission has planned to initiate the revision in the 4th quarter of 2023. Brands will need to implement more comprehensive and standardised labelling practices to ensure that consumers have access to accurate information about the composition and origin of textile products.

The 21st edition of MarediModa, the premier trade show for the beachwear, lingerie, and athleisure sectors, will take place from November 7 to 9 at the Palais des Festivals in Cannes. This year's event promises to be bigger and better than ever, with a growth in the number of exhibitors, product offerings, and the outsourcing area, along with a busier schedule of events.

MarediModa's tried-and-true format provides visitors with access to every aspect of the supply chain, from superior European fabrics and accessories to quality outsourcing, design studios, labeling, and packaging.

Emphasis on Traceability, Outsourcing, and Sustainability

MarediModa's President, Claudio Taiana, emphasizes the significance of their commitment to traceability, which has safeguarded the brand and the companies that present their collections. The event maintains its reputation for showcasing the premium segment of the industry.

MarediModa also collaborates with The LYCRA Company to showcase the European premiere of two new fibers, LYCRA® ADAPTIV BLACK and LYCRA® ADAPTIV XTRA LIFE. These fibers combine the benefits of the original LYCRA fiber with additional branded technologies for an enhanced wear experience, with a focus on sustainability.

Trends 2025 and Beyond

The Summer 2025 trends, presented by David Shah and The View Team, are marked by the keyword "Boost." Five dynamic and creative themes will shape the upcoming collections: Exuberant, Conscious, At ease, Magical, and Transformed. Visitors will have exclusive access to the TREND BOOK 2025 and trend presentation video.

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) hosted the Surat Start-Up Summit 2023 from October 27th to 29th at the Surat International Exhibition and Convention Centre. The three-day event aimed to strengthen the start-up ecosystem in Surat and inspire entrepreneurs.

Over 55 start-ups from Surat, Ahmedabad, and Vadodara showcased their creative ideas at the summit. The event also featured a roadshow for the Gujarat Vibrant Start-up Summit, scheduled for December 2023.

The summit witnessed the participation of 50 venture capital managers from across the country, who interacted with start-ups and entrepreneurs. Unicorns also joined the event and led sessions on technology and artificial intelligence.

The Surat Start-Up Summit 2023 envisioned making Surat, a major manufacturing centre in South Gujarat, a financial hub for start-ups as well. Industrialists from all over the country showed interest in the summit and attended the event.

The Confederation of Indian Textile Industry (CITI) will host the 3rd Global Textiles Conclave (GTC'23) in Jaipur, India, from March 15-17, 2023. Themed "Strategies for Achieving a Sustainable and Profitable Textile Value Chain," the event will explore ways to reduce the environmental impact of the textile industry while maintaining profitability.

GTC'23 is expected to attract over 1,000 participants, including industry leaders, policymakers, and sustainability experts. 

The event will feature a variety of keynote speeches, panel discussions, and breakout sessions on topics such as circular fashion, sustainable design, green manufacturing, renewable energy, fair labor practices, ethical sourcing, waste management, pollution control, and emerging technologies for sustainability.

In addition to GTC'23, CITI will also present the 1st CITI Textile Sustainability Awards and the 1st India Textiles & Apparel Fair (ITAF). The awards will recognize outstanding contributions to sustainable textile production, while the trade show will showcase the latest products and innovations from the Indian textile and apparel industry.