The global online footwear market is growing by a CAGR of eight per cent. The market is witnessing significant growth in the non-athletic footwear segment.

The segment is primarily driven by increasing fashion consciousness among consumers. In addition, the rise in the number of private label brands, the high demand for trendy non-athletic footwear from Generation Z and millennials, and the rise of e-commerce companies are fostering the growth of the segment.

The market is driven by the rising popularity of digital payment systems.Online shopping offers various payment options such as credit cards, cash on delivery, internet banking accounts, demand drafts, and cash on order. Customers can also rely on payment service providers such as PayPal to make payments without revealing their personal information.Popular players such as Amazon, Google, MasterCard, and PayPal are investing heavily in digital payment technologies.Mobile payment options such as Apple Pay, Android Pay, and Samsung Pay are becoming a standard feature on new smartphones.The availability of such payment options is increasing the convenience of shopping for footwear online. The advent of smart and customized footwear is the key trends in the market.Vendors are offering customization and personalization options to diversify their product portfolios.

Some vendors are introducing smart footwear to attract customers engaged in athletic and fitness activities.

The United States has accused Bangladesh of exporting counterfeit clothing of popular American and French brands.

The US has initiated a special review against Bangladesh and if the charge is found justified quotas, sanctions and additional duties loom over Bangladesh’s garment exports to the United States.

Bangladesh will have to brace for multiple forms of penalties. This is the first time the US has decided to conduct such a review against any least-developed country. On its part Bangladesh has promised to investigate the allegations and take disciplinary action against the accused.

Raids across the world testify

Counterfeit goods sourced in Bangladesh have been seized in countries like Australia, Italy, the UK, the US, Germany and Saudi Arabia.Out of the roughly 1,75,000 items seized in 2022 from across 17 raids in Malaysia and the Philippines, all the goods were manufactured in Bangladesh. Some 5,000 listings linked to counterfeit Bangladesh-sourced goods have been identified on online platforms such as Facebook, LinkedIn, Whatsapp, Lazda and Shopee, among others.

What do Intellectual Property rights say for low develop countries?

Bangladesh is preparing to respond. As a least developed country Bangladesh has some flexibility in terms of intellectual property rights. Moreover, Bangladesh has implemented the Trademark Act, where counterfeiting is a punishable offence. The country will concede that export consignments were not as thoroughly checked as import consignments, which may have resulted in the trade of some counterfeits, but in that case, it will argue, customs authorities of the countries where counterfeit garments are imported are also responsible for stopping those and that the responsibility of punishing those who import and sell counterfeit products in different countries lies with the countries concerned. But the problem also lies with factories in Bangladesh. While garment manufacturers maintain that they have never engaged in such practices, sometimes there are stocks left, which are sold in the open market. Some foreigners buy these products and sell them in their own country. Some products do go through this process.

Zero exports from Bangladesh amid order cancellations during Covid might have led to more stocks and, thus, more products reaching foreign destinations through black markets.

Source Fashion was held in the UK, February 12 to 14, 2023. This was a highly successful and impactful event bringing together a global array of manufacturers and leading retailers.

There were exhibitors from Peru, Cambodia, Pakistan, Portugal, Hong Kong, Italy, Greece, UK, China, India and Turkey. Visitors came with the intention of doing business and there was a good mix of buyers, small and big brands.

A seminar program was packed with informative talks from internationally renowned designers, professionals, and experts from across the industry. One session explored shifting consumer patterns, the rise in resale and how to integrate reCommerce into existing business models.

Across all three days the Source Catwalk Show delighted and inspired visitors with its exciting use of innovative materials, new textiles and trend-driven designs by fashion designers and manufacturers showcasing at Source Fashion. There was a huge variety of beautiful fashion, textiles, products and even product solutions on the show floor.

People from all around the world with incredible stories who are leading change in the industry were given a platform to network, make connections and share and sell their products. The aim was to help buyers and sourcing professionals to buy better, and connect them to responsible suppliers.

Indonesia’s textile and textile product industry grew nine per cent in 2022.

In the first quarter and the second quarter of 2022, the growth was 12 percent and 13 percent. However, in the third and fourth quarters, the quarter to quarter growth indicator has slowed down. The export market has weakened but on the other hand the domestic market has been flooded with imported goods, which has led to the closure of several factories.

The global crisis as a result of the impact of the Russian-Ukrainian war is being felt by the textile industry in Indonesia. Indonesia’s textile exports have dropped dramatically after the Russia-Ukraine war. The loss of this export market has made textile companies in Indonesia overstock. Because, on the other hand, the domestic market is not available since it is flooded with imported products. So this condition causes domestic textile products to go nowhere and the impact of which has been that textile companies in Indonesia are experience overstock. This has also caused textile companies to take policies to lay off their employees.

In just 16 days, more than 85,000 employees throughout Indonesia have been laid off. It is difficult to predict when the textile industry in Indonesia will recover from the current crisis caused by the war.

India’s footwear and leather exports may be affected by the slowdown in advanced economies. So says Crisil.

Labor-intensive categories such as leather articles, footwear and textiles have the highest export dependence on economies like the US and Europe. A global slowdown is predicted in 2023 as a result of the manifestation of continued tightening of monetary policies across the globe.

The forecast of a global slowdown, says Crisil, is worrisome since, over the years, India’s growth cycles have become highly synchronised with the advanced economies of the US and Europe. Much of the leather apparel and accessories produced in India are exported, with Europe and North America accounting for 75 per cent of orders.

Though domestic demand for the leather apparels and accessories segment remains resilient, the overall sectoral revenue is seen declining in the medium term. As costs remain high, operating margins of companies are expected to compress by 150 basis points this fiscal and will remain range bound at six per cent to 6.5 per cent over the medium term. Given the increased raw material cost, inventory holding has become costlier.

Additionally, due to lower cash generation, the working capital requirement at the sector level will be 15 per cent to 20 per cent higher in the near term.

After five years of exponential growth, luxury in China is slowing down. So says Bain.

2022 was a difficult year. Despite strong momentum at the beginning of the year, Covid-related lockdowns hampered Chinese shopping from the second quarter onward, along with a declining housing market, rising unemployment, and pandemic fears. Most brands in China declined in 2022 due to challenging conditions. The watch market saw the sharpest decline, with sales plummeting 25 per cent year on year. The fashion and lifestyle categories dropped by 15 per cent to 20 per cent while jewelry and leather goods performed slightly better, with a fall of ten per cent to 15 per cent.

The economic slowdown hit entry-level luxury consumers more than high net worth customers. Segments with a strong online presence were less impacted, and put up a slightly better performance than others. Some Chinese luxury brands achieved sales through high-spending customers that were 40 percent higher than the global average, especially in digital channels.

However positive conditions are expected to return by the first quarter of 2023. Consumer fundamentals are still solid, thanks mainly to the concentration of middle- and upper-income consumers, a cluster that will double by 2030.

G-Star Raw has partnered with David Laport to launch a denim line.

G-Star Raw is a Dutch denim brand. David Laport is a Dutch designer known for his circular couture approach to dressmaking, signature pleats and celebrity clientele. The two-piece capsule collection features a strapless top and a tiered dress—each defined by Laport’s sculptural accordion-style pleating. The top mimics the shape of a bow while the layers fan out into an explosion of pleats on the dress.

The intent was to make something glamorous, something feminine, something totally different and something in denim. G-Star Raw and Laport wanted to make something festive, a statement piece that was easy to wear. So it’s possible to party and go out in both pieces. The top can be worn with G-Star trousers and sneakers.

In keeping with G-Star’s roots, the pieces are made with 100 per cent cotton Japanese selvedge denim. The 10 oz. 2×1 right hand twill fabrics have an authentic green cast while the weft gray adds vintage appeal. G-Star also plans to begin launching a new sustainable production innovation every other year. The innovations will be based on either materials or washing levels—steps that will help close the loop in denim.

Home textile exports from India have fallen by almost 18 percent in the current fiscal year as compared to the previous fiscal year.

Demand for these products has slowed, particularly from the US and Europe.Home textiles are a significant contributor to the textile sector and have seen substantial growth, with exports increasing by 34 percent in fiscal year 2021 and further by 12 percent in fiscal year 2022, second only to readymade garments.

However, despite the initial growth, exports began to level off in the second quarter of fiscal year 2022 due to a combination of rising commodity inflation and the onset of a global recession, which have had a significant impact on growth.

The operating margins for the leading four listed home textile companies, which hold a market share of 35 percent in India’s home textile exports, have seen a decline on a quarterly basis and are predicted to decline further by 400 to 500 basis points in fiscal year 2023. The reduction in demand and increased operating costs due to decreased capacity utilisation have impacted margins despite a decrease in cotton prices.

However growth is expected to pick up in the second half of the fiscal year 2024 since the recessionary effect in the US may be out of the way by the second half of the fiscal year 2024.

H&M has formed a joint venture with Remondis to collect, sort and sell used and unwanted garments and textiles.

H&M is the world’s second biggest fashion retailer. Remondis is a German recycling group. The 50-50 owned venture, called Looper Textile, is starting its operations in Europe and aims to extend the life cycle of some 40 million garments in 2023.

The venture plans to test new collection schemes and implementing automated technologies, including near-infrared sorting, and hopes to become a preferred feedstock provider to companies and innovators engaged in textile resale and recycling.

Conscious consumption is on the rise. People are looking for natural fibers, customers are increasingly looking for honesty. It’s estimated that 300,000 tons of textiles go to household bins. It’s the UK’s fastest-growing household waste stream. Brands are trying to find solutions whereby these materials can be repurposed or reused. By reusing and repurposing these donated textiles, it is possible to greatly reduce the amount sent to disposal, creating an efficient way to combat climate change.

Currently the demand for recycled fibers is growing, but access to the waste supply is limited. Key elements to supporting the growth of textile-to-textile recycling include understanding material composition, volume and location of used textiles as well as expanding access to textile recycling.

Kering’s net profit climbed 14 per cent in 2022. Sales jumped 15 per cent.

The French luxury giant’s empire includes Gucci, Balenciaga, Yves Saint Laurent, Bottega Veneta and Alexander McQueen. Kering’s sales fell two per cent in the fourth quarter, dragged down by an 11 per cent drop at Gucci and three per cent at its other brands, which include Balenciaga, in the last three months of the year.

The results were weighed down by China which still had Covid restrictions most of last year. The world’s second biggest economy, a major market for luxury brands, lifted its zero-Covid policy in December 2022. Gucci sales were up eight per cent for the full year in 2022. Sales at Yves Saint Laurent soared by 31 per cent. Other brands were up 16 per cent for the year.

Kering is a global luxury group that manages the development of a series of renowned brands or houses in fashion, leather goods and jewelry. By placing creativity at the heart of its strategy, Kering enables its houses to set new limits in terms of their creative expression while crafting tomorrow’s luxury in a sustainable and responsible way. Kering has more than 42,000 staff members.