Guess, a renowned lifestyle brand operating in over 100 countries, has released its latest ESG Report titled "Our Best Today, Better Tomorrow." This comprehensive document highlights nine years of impressive sustainability accomplishments and sets the course for future commitments. 

A notable feature of the report is GUESS' inaugural 'double materiality assessment,' a meticulous process that identifies, updates, and prioritizes sustainability topics, thereby rejuvenating the brand's ESG strategy. 

The ESG assessment conducted by GUESS adopts a double materiality approach, carefully analyzing the significance and impact of various topics on both society and the environment, as well as their financial implications. 

The report focuses on three impact pillars: respect nature, be a good teammate, and get things done. GUESS' ESG Report adheres to globally recognized frameworks such as the Global Reporting Initiative (GRI) Universal Standards, the Sustainability Accounting Standards Board (SASB), the GHG Protocol, and the United Nations Sustainable Development Goals (SDGs). 

The company ensures strong accountability by seeking reasonable assurance from a third-party provider for key ESG metrics and disclosures during the FY 2022-2023 reporting periods. 

The brand also aims to ensure that 75% of global apparel materials are environmentally preferred by 2030, thereby elevating its design portfolio. GUESS intends to promote a circular economy through partnerships that focus on repair, reselling, and upcycling in key markets, as well as prioritize positive change for women through training opportunities with suppliers. 

The Europe India Centre for Business and Industry (EICBI) collaborated with Morten Lokkegaard, a Member of the European Parliament from Denmark, to invite leaders from Europe and India's textile industries. 

Unlocking opportunities 

They convened at the European Parliament in Brussels to discuss the pros and cons of an EU-India Free Trade Agreement (FTA) focused on the Textile & Clothing Industry. The conference emphasized the need for a strong partnership between the regions to transform the global textile market and drive progress in various sectors. 

Highlights the potential of ‘Textile Collaboration’

Government representatives, industry heads, academics, and civil society from both Europe and India explored avenues of collaboration, particularly in textile cooperation and the proposed FTA. Key discussions addressed challenges faced by European companies in India, advocated for a zero-duty policy for textiles, focused on market access privileges, eliminated non-tariff barriers, and emphasized policy alignment. 

Demonstrability 

The event showcased the complementary strengths of the EU and India in the textile industry and discussed the possibility of an early harvest approach to expedite progress and foster confidence. This milestone event lays the foundation for an enhanced textile partnership, creating remarkable opportunities for a prosperous future.

H&M Group CEO Helena Helmersson's recent visit to Dhaka, where she met with Prime Minister Sheikh Hasina, was seen as a positive encounter. 

However, the company now faces backlash for its decision to lay off 46 employees from its Dhaka office just before the Eid al-Adha festival, prompting concerns about compassion and violating sustainability principles. As one of the largest buyers in Bangladesh's apparel industry, 

H&M sources from over 250 factories and purchases approximately $3 billion worth of products annually. While the company claims to follow local laws and regulations, critics view the terminations as brutal and part of a larger cost-cutting plan amid the global economic slowdown. 

This move follows H&M's previous layoffs during the COVID-19 pandemic, further fueling discontent. Many individuals and organizations emphasize the need for H&M to take responsibility for its staff, considering its substantial profits earned through cheap labor in countries like Bangladesh. 

They argue that companies should share their profits and establish emergency funds to support employees during crisis periods. Meanwhile, despite challenges such as energy shortages, inflation, and declining foreign exchange reserves, Bangladesh's apparel sector has shown progress, with a 10.3% year-on-year growth in apparel exports for the fiscal year ending June 30. 

The industry's expansion has been fueled by higher-value items and increased market shares in nontraditional markets like Japan, Korea, and India.

Luxury fashion, characterized by its premium, exclusive, and high-price tag products, is experiencing remarkable growth in the global market. With the expanding fashion industry and the increasing demand for aesthetic products, the luxury fashion market reached a size of US$ 237.0 billion in 2022. Looking ahead, market analysis by IMARC Group projects a significant growth rate (CAGR) of 3.60% during the period of 2023-2028, with an expected market value of US$ 294.7 billion. 

Luxury fashion encompasses various categories, including clothing and apparel, footwear, watches, jewelry, fashion accessories, designer handbags, perfumes, cosmetics, and more. These products are renowned for their elevated quality, exclusive nature, and high-value aesthetics. 

Crafted with high-grade materials and superior craftsmanship, luxury fashion items often serve as a status symbol, driving their extensive demand among both male and female consumers worldwide. Several factors contribute to the growth of the luxury fashion industry. 

Shifting consumer preferences towards high-quality and stylish clothing, featuring advanced technical fabrications and craftsmanship, are key drivers of market expansion. 

The rise of social media promotions and celebrity endorsements has propelled the popularity of premium fashion brands, further establishing them as status symbols. Additionally, leading market players' adoption of sustainable production methods, such as utilizing ethically sourced, recycled, or eco-friendly materials, reflects the industry's heightened environmental concerns and positively impacts market growth. 

The incorporation of augmented reality (AR) in the fashion industry has revolutionized the shopping experience, enabling customers to virtually explore and make purchases from the comfort of their homes. This technology-driven innovation has significantly stimulated the global luxury fashion market. 

Moreover, the growing demand for customization, premiumization of superior quality and designer products, and the increasing brand loyalty among customers are expected to further propel the market's growth in the forecasted period. As the luxury fashion market continues to flourish, key players in the industry are actively driving its evolution. 

In-depth profiles of these influential market players can be found in the comprehensive report, offering valuable insights into their strategies and contributions to the market's competitive landscape.

EU apparel imports from the world experienced a significant decline of 7.62% during January-April 2023, reaching a total of US$29.83 billion. The quantity of clothing imports also saw a steep downturn of 15.45%. 

Winners and Losers in EU Apparel Imports 

Among the top ten sourcing countries for EU apparel, Vietnam and India demonstrated positive growth, while imports from other countries declined notably. 

Bangladesh: Decline in Imports 

In terms of EU apparel imports from Bangladesh, there was a 6.25% decrease in dollar value, amounting to US$7.06 billion from January to April 2023, compared to US$7.53 billion during the corresponding period in 2022. The quantity of imports from Bangladesh also declined by 12.48% during this period. 

China and Turkey: 

Decrease in Imports EU imports from China witnessed a dip of 17.07% in dollar value and 21.05% in quantity. Similarly, during January-April 2023, the EU’s imports from Turkey, the third-largest apparel source, declined by 13.68% in value and 24.66% in quantity. 

India and Vietnam: 

In contrast, the EU’s imports from India and Vietnam experienced slight growth of 0.45% and 3.41%, respectively, in value terms. However, imports from both countries declined by 8.17% and 7.26% in quantity, respectively. 

Decline in Imports from Other Sourcing Countries 

Simultaneously, the EU’s imports from other top sourcing countries, such as Cambodia, Pakistan, Morocco, Sri Lanka, and Indonesia, decreased by 5.59%, 7.52%, 16.61%, 17.16%, and 7.99%, respectively, in value terms. 

Unit Price Analysis 

Analyzing the unit price (USD value/kg), the EU’s cumulative unit price of imports from Bangladesh increased by 7.12% (from US$16.98 to US$18.19). 

This rise reflects higher raw material and production costs,  ignalling progress towards the higher price segment. Average unit prices of imports from other countries also experienced an upward trend during the mentioned period.

According to Amazon, Indian exporters participating in the Amazon Global Selling program are expected to surpass $8 billion in cumulative overseas sales this year. In the Exports Digest 2023 released by Amazon, it was revealed that exports from India through the program reached $5 billion in the previous year. 

The report highlighted the program's growth since its inception in 2015, with a current count of 125,000 exporters onboard. Notably, in 2022, 1,200 Indian exporters achieved sales exceeding Rs 1 crore. 

The report also provided insights into popular export categories, which include toys, home and kitchen products, and beauty items. Furthermore, emerging product categories like apparel, groceries, and health and sports equipment demonstrated promising potential for exports. 

In terms of regional distribution, Delhi emerged as the leading exporter, followed by Rajasthan, Maharashtra, Uttar Pradesh, Gujarat, and Madhya Pradesh. 

Amazon India optimistically highlighted recently the inclusion of a dedicated chapter on e-commerce exports in the FTP'23. This initiative aims to enable $20 billion in cumulative e-commerce exports from India by 2025. 

The report also disclosed that more than 266 million 'Made in India' products have been exported to customers in the US, the UK, the UAE, Canada, Spain, France, and Italy through the Amazon Global Selling program.

Italian textile machinery production recorded a remarkable 13% growth in 2022, reaching €2.7 billion. The exports also surged by 15% (€2.3 billion), as reported by Alessandro Zucchi, president of ACIMIT. These positive figures, presented during ACIMIT's general assembly, indicated another year of expansion following the sector's strong performance in 2021. 

However, uncertainties in the latter half of the year caused a slowdown, posing challenges for the Italian textile machinery industry. Nevertheless, the industry remains optimistic, buoyed by the success of the ITMA exhibition held in Milan in June. 

The event attracted over 111,000 visitors and showcased the innovative technologies of Italian manufacturers, highlighting the significance of innovation in the sector. ACIMIT expects the positive outcomes of the exhibition to drive further growth and generate tangible orders for 2023. 

ACIMIT, in collaboration with the textile supply chain, has been instrumental in promoting sustainability and circularity in the fashion industry. 

They have introduced initiatives such as the Green Label, Digital Ready program, and the Recyclability Index for machinery, aligning with the European Union's Green Deal initiatives. Innovation continues to play a crucial role, differentiating those with promising futures from those who follow suit. During the general assembly, Marco Salvadè was appointed as the new president of ACIMIT, succeeding Alessandro Zucchi.

Two global sportswear giants, Nike from the USA and Adidas from Germany, are preparing to open showrooms in the city within the next two months. 

Facilitated by the DBL Group, the same group that introduced Puma to Dhaka in 2019, this move reflects the growing confidence of these renowned brands in Bangladesh's promising growth prospects. 

The entry of Nike and Adidas into Bangladesh signifies their recognition of the country's rapid growth, boasting around 35 million affluent and middle-class consumers. While their products have been available in Bangladesh to some extent, their high prices have been a challenge. For instance, Bata sells the Adidas Adizero Select sneaker for men at a significantly higher price than in international markets. 

Nike, Adidas, and Puma primarily offer a wide range of shoes, especially sports shoes, along with sportswear, bags, caps, and other apparel products. Their global presence includes thousands of stores worldwide, and the opening of showrooms in Dhaka has been well-received by the upper middle class and upper-class buyers in the area. 

Reducing import taxes and granting permission for local manufacturing could potentially make these products more affordable for consumers. While local brands like Apex Footwear Limited, Bay, Bata, and Lotto have made progress, their products often lack the quality and brand value of Puma, Nike, and Adidas. 

Factors such as low demand, affordability, inadequate quality, limited technological advancements, and a lack of innovation hinder the development of high-quality local footwear products. To bridge this gap, industry experts suggest investing in quality development centers and innovation, as well as improving customer perception of local brands. By doing so, local companies can aim to match the international standards set by renowned brands like Nike and Adidas.

The idea of bespoke, made-to-measure clothing may sound like the preserve of the wealthy and those with couture ateliers at the tap of their ritzy smartphones, but it isn’t actually that long ago that made-to-measure was, for many, the standard way of buying clothes. They remained popular until the 1940s when the introduction of a standardised sizing system in the US, and from those foundations, the fashion industry forged into a future of rails of identical dresses, shirts and jackets in an industry-approved range of sizes. 

This more standardised approach drove costs down, and as high-end department store paved the way for the high street shop, and later, online shopping, fashion undoubtedly became more accessible and democratised. Shopping became a pastime and ready-to-wear clothing became the norm. Things heightened with the entry of fast fashion, and Zara led the way back then and later mimicked by many, the most successful one today being Shein. The consumer mantra for fashion became ‘More is less’. 

The dark side of readymade garments

However, the world is now well-aware of the cost of volumes of standardized readymade garments and fast fashion that have flooded every market on the planet. Landfill after landfill of discarded garments that did not pass muster or remained unsold, exploitation of labour in under-developed and developing countries, questionable child labour malpractices, unhealthy work conditions and toxic dumps into water bodies – the consumer now realises the trail of environmental damage their appetite for fashion has caused. With these issues making headlines, consumers are beginning to embrace made-to-measure once more. As Megan Crosby, founder of the eponymous label By Megan Crosby says about made-to-measure “Made-to-measure feels like a refreshing dive into a more innovative, caring and sustainable future for fashion.” 

Custom clothing to grow at 9.56 per cent CAGR

According to Proficient Market Insights, a research and analysis firm, custom clothing is expected to grow at 9.56 per cent CAGR between 2022 and 2027. In this period, its value could be over $78,902.04 million. The global Custom Clothing (made to measure) market size was valued at $45,623.19 million in 2021. Traditionally, the reputable labels that were in custom-made clothes globally were Ermenegildo Zegna, Ralph Lauren, Brioni, Baoxiniao, Kiton, and Pierre Cardin. Now Armani, Gucci, Versace, Chanel, Saint Laurent from the world of haute couture and they deep-dived into this sector still considered niche. Clearly, the fashion big houses don’t make custom-made affordable for the masses and seizing this opportunity, H&M,  Massimo Dutti, Mango, Zara and Guess have started their more affordable custom-made clothing line. 

Europe is the largest market, with about 35 per cent share, followed by North Amercia and China, with around 45 per cent share. In terms of products, coats are the largest segment with 55 per cent share. In terms of application, the largest application is store, followed by online. 

Custom-made clothing in India through startups

Devoid of the hype and glamour, even today custom-made clothing is a quietly run business flourishing cheek by jowl next to glittering high streets and dazzling malls. Until the late 90s, most Indians had their garments tailored – based on economics, from the neighbourhood tailors to the ritzy ones ensconced in premium areas and exclusive five star shopping arcades. 

Young and digital savvy, new Indian business owners have started companies that specialize in custom-made clothing that goes beyond the product as in, they are selling an experience. As the Indian consumer has been hailed as one of the more sustainability conscious consumer, return to customized clothing of quality is the natural choice. Today’s start-ups incorporate the best the world of digitisation has to offer to produce not only the perfect garment for the individual but to keep them engaged all the way to the end. 

Viscose rayon, a textile with a complex history and multiple aliases, has often been touted as eco-friendly. However, its production from tree pulp raises environmental concerns. As the fashion industry seeks a more sustainable alternative, recent developments have showcased two potential next-generation viscose textiles.

These alternatives were presented at a London trade fair, sparking hope for a greener future. One promising option involves producing viscose from recycled cotton. The abundance of clothing waste makes it an exciting feedstock, despite the challenges of collecting and sorting textile waste. Companies like Renewcell are leading the way in textile recycling, processing shredded cotton garments into cellulose sheets and ultimately extracting viscose yarn.

This new material, known as Circulose, boasts lower carbon emissions, reduced water usage, and fewer chemicals compared to traditional viscose. Another innovative approach involves using coconut water waste to create cellulose for viscose production.

Nanollose, an Australian company, harnesses a fermentation process with bacteria that converts sugars into cellulose.

This translucent yarn, similar to lyocell, shows potential for scale due to minimal resource requirements and a short production cycle. With these sustainable alternatives emerging, the fashion industry faces the critical question of whether a large-scale transition is possible.