Amidst supply chain constraints and growing inflation, Kontoor Brands has lowered its full-year outlook and now expects FY 22 revenues to grow by 6 per cent Y-o-Y.

The Q2 revenues of the renowned clothing retailer from the US surged by 25 per cent to $613.6 million.

The apparel retailer attributed the good numbers to its US business that grew by an impressive 40 per cent to post $510.2 million.

Notably, the retailer’s net income grew to $62 million from $23.6 million a year earlier.

Brand-wise, Wrangler’s revenue rose by 34 per cent to clock $417.9 million, with Lee posting a growth of 10 per cent to touch $193.1 million.

While revenue from China fell by 50 per cent owing to pandemic-induced restrictions, international revenue, on the whole, dipped by 18 per cent to $103.3 million.

North Carolina-based retailer, Kontoor Brands is known for marketing denim clothing under brand names Lee, Wrangler and Rock & Republic.

Major retail destinations across the globe struggled to sustain demand throughout 2020 and 2021 as they continued to grapple with domestic lockdowns and international travel bans. Landlords were forced to reconsider rental terms in a few markets as footfalls at stores declined. Extensive vaccination programs helped locations such as the UAE to open international borders and lift restrictions relatively quickly, boosting recovery across sectors such as real estate, tourism and retail. As per international property advisor, Savilles, key trends emerging in the sector post lifting of restrictions include:

Reinforcing their global status

Quicker to recover than other destination cities, New York, Paris and London quickly reinforced their positions as successful retail locations, as per the Savills Retailer Attractiveness City ranking, produced as part of its 2022 global Impacts research program. In contrast, cities dependent on the tourism industry, are likely to take longer to recover.

Expansion opportunities for retailers

The pandemic forced retailers to discover several new markets. These markets are set to present several new exciting opportunities in future. Some of these emerging markets are in the Middle East and China. In, particular, the Middle East market is set to provide retailers strong opportunities with demand shifting away from pure franchises to brand-owned stores in key locations, and a strong focus on luxury. Tier II and III cities in China are also set to provide significant new opportunities.

Stores transforming into experiential centres

Though most brands struggled to sustain demand across the pandemic, performance in sectors such as, athleisure, homeware, wellness, food and beverage and electric vehicles surged both online and offline. Capitalizing on strong revenues and attractive store opportunities, these sectors continue to trade well over the past 18 months. They can now acquire new sites and grow their physical footprints

Luxury brands meanwhile can relocate to large units in stronger locations. This has already transpired in the Middle East and will now accelerate. Physical stores were already transforming before the pandemic. They now expanded into aspirational destinations spanning leisure and entertainment.

New concepts to attract consumers

In the Middle East, retailers and mal operators have introduced several experiential concepts to appeal and stay relevant to their audience. Majid Al Futtaim, Mall Operator, Middle East launched a concept store named ‘That’ in Dubai’s Mall of the Emirates offering goods and experiences. Among other things, the store offers salons, a fitness studio and smart mirrors to try on their products and aims to become a lifestyle destination of sorts. Meanwhile, global sports labels Adidas and Nike also offer experience-based environments in their respective stores in The Dubai Mall where customers can play sports or personalise their products.

The reverse trend of brands taking on stores is also strengthening. These inevitable challenges have introduced many new trends including rationalizing of store footprint by mass-market fashion brands, the emergence of experiential brand spaces, and a refocusing on key streets and city centres.

Physical retail thus continues to remain a relevant tool for brands and retailers to connect with consumers. It helps them drive retail sales and provide consumers with an experiential space to satisfy their needs.

Currently worth $530.97 billion, the global textile market is expected to grow at 8.3 per cent CAGR to reach $575.06 billion in 2022. The sector’s market share is expected to grow at 7.2 per cent CAGR and be worth $760.21 billion in 2026. Growth will be dominated by the Asia-Pacific market valued at $234.2 billion in 2021. The market accounted for 0.69 per cent of the region's GDP during the year, as per a Press News Wire report.

Expanding economy drives textile growth

Rapid economic growth in Asia Pacific is driving textile market growth in these countries. World Bank data shows, in 2020, Bangladesh’s GDP increased to $324.24 billion from $302.56 billion in 2019. China’ GDP also averaged $2,820.59 billion from 1960 until 2021, to reach an all-time high of $17,734.06 billion in 2021.

The textile industry in the Asia-Pacific region is increasingly moving towards making clothes made from organic fabrics as they are easy to maintain and clean. More and more companies are adopting organic fibers such as cotton, wool, hemp, linen, etc as these are grown according to national organic standards without the use of any toxic pesticides.

Demand for organic fibers rising

Companies are using organic fabrics for both apparel and home textiles as demand for products made with natural raw materials is rising.

A Japan-based multinational corporation, Toray Industries is seeing increased demand for organic textiles. The company manufactures industrial products using popular technologies used in the organic synthetic chemistry, polymer chemistry, and biochemistry and other business areas like fibers and textiles, as well as plastics and chemicals.

Established in 1926, the Tokyo-headquartered Toray Industries strengthens its product portfolio by launching new sustainable products. In March 2022, the company developed a new high-strength textile employing Toyoflon™, a low-friction polytetrafluoroethylene (PTFE) fiber. The fiber will be used by Toray to broaden its application into industrial machinery, plant facilities, automotive parts and bearings.

The current trade balance between the European Union and India in textiles and clothing is hugely tilted in India’s favor. The EU annually imports clothing and textiles worth over €6 billion from India while exporting just half a billion worth of these products to India. India can leverage this opportunity by entering a free trade agreement with the EU. This agreement will enable the Indian market to acquire high-quality and innovative products from the European textile and clothing companies besides solutions to reduce the environmental footprint of the textile industry.

Explore new open and efficient markets

The India-EU FTA also offers an opportunity to the Union to make its trading system more fair and sustainable, introduce new rules and environmental and social standards that are respected by all. According to Euratex, the India-EU FTA will enable textile and clothing companies to explore new open and efficient markets besides introducing effective control where necessary. It opines, the FTA will provide EU producers the same level of access to Indian market – both in terms of tariff and non-tariff barriers. European companies today face non-tariff barriers while accessing the Indian market. They have to also deal with national or state-level support programs that are more favorable for Indian companies than EU.

Aligning with India’s sustainability goals

Euratex also recommends applying level playing field to sustainability targets. It recommends aligning the India-EU FTA to EU Textile Strategy. Dirk Vantyghem, Director General opines, the FTA provides EU an opportunity to align its sustainability goals with Indian industry and create a regulatory framework for companies to compete in a free and fair environment. With around 154,000 companies employing 1.47 million workers, the EU textile and clothing industry drives local economies across many EU regions. The industry has commercialized several high added value products in growing markets around the world.

Creating a favorable environment for companies

The voice of the European textile and clothing industry, Euratex strives to create a favorable environment within the European Union for design, development, manufacture and marketing of textile and clothing products. The organization works with EU institutions and other European and international stakeholders to develop an ambitious industrial policy, effective research, innovation and skills. It also aims to ensure free and fair trade, and sustainable supply chains.

Global fashion brand and part of Inditex Group, Zara has collaborated with Renewcell to launch a capsule collection made with Circulose®, a branded material produced from 100 per cent recycled textiles.

Developed by Renewcell, Circulose® is a biodegradable raw material used to produce textile fibers for fashion like viscose and lyocell. Fibers produced with Circulose® helps brands to limit the use of virgin textile fibers, reducing the climate and environmental impact caused by raw material production and waste.

Soon operating at commercial scale in their new plant in Sundsvall, Sweden, the 100 per cent textile-to-textile recycled material Circulose® by Renewcell continues to save waste from landfills by creating value through circular supply chains with brands around the world, now with Zara.

For Zara, this collaboration is part of Inditex's Sustainability Innovation Hub, an open-innovation platform. The aim is to work alongside start-ups, academic institutions, and tech centers to promote and scale initiatives developing new materials, technologies and processes that reduce the environmental footprint of fashion and help advance towards more sustainable production.

The US denim jeans market will grow at 3.14 per cent from 2021-2025 as against the global market growth rate of 3.65 per cent during the same period.

The US denim jeans market was estimated at 523.97 million units in 2021. It may grow to 561.29 million in 2022, 582.19 million in 2023, 593.80 million in 2024, 603.48 million in 2025 and 611.54 million units in 2026

The global market of denim jeans is expected to grow from 2,893.37 million units in 2021 to 3,461.56 million in 2026. The market size will grow to 3,145.55 million in 2022, 3,273.73 million in 2023, 3,351.19 million in 2024 and 3,409.81 million in 2025.

As for China, its denim market size is likely to grow to 588.82 million units in 2026. The growth rate will be 4.86 per cent between 2021 and 2026. Its market size was 464.55 million in 2021.

Similarly, India’s market size of denim jeans is projected to grow to 426.12 million units in 2026. The growth rate will be 4.38 per cent between 2021 and 2026. Its market size was 343.93 million in 2021.

Revenues from Vietnam’s garment and textile exports grew by 20 per cent Y-o-Y in July this year to $20 billion, as per data from the General Department of Vietnam Customs.

The value of exports from the sector increased by over $1 billlion. Vietnam exported its garment-textile products to 55 countries and territories worldwide, including 17 markets with a turnover of more than 100 million USD each.

The US, Japan, the Republic of Korea and Canada were among major importers of the Vietnamese products.

Earlier, the Vietnam Textile & Apparel Association said, textile-garment producers in the country aim to increase their exports to $21 billion in the second half of this year, raising total shipments of the year to around $43 billion.

Better demand led to few counts and varieties of polyester and polyester-cotton yarn trading higher in Ludhiana. The hike in price of polyester staple fibre (PSF) by Reliance Industries (RIL) supported prices of polyester value chain. But ease in freight charges and US dollar may cause decline in PSF prices.

As per a Ludhiana based trader, demand improved in polyester and PC yarn market. The Ludhiana market y witnessed better buying. RIL had increased PSF raw material prices due to stronger dollar and other factors. The market leader of PSF and its raw materials had increased prices by up to 2.5 per cent for this week.

However, there was certain degree of uncertainty about the demand in the north Indian market. According to trade sources, container freight charges decreased by about 3 US cent per kg. Weaker dollar may also reduce landed prices of imported PSF and other material. Therefore, polyester value chain can see downward trend in near future.

In Ludhiana market, few counts and varieties of polyester-cotton and polyester yarn prices improved due to rise in raw material prices and better buying. 30 count PC combed yarn was sold at Rs 260-274 per kg (GST inclusive) with increase of Rs 2 per kg, 30 count PC carded yarn (65/35) was priced at Rs 220-230 per kg. 20 count PC (recycled-O/E) PSF yarn was traded at Rs 180-190 per kg. 30 count poly spun yarn was sold at Rs 175-187 per kg. High tenacity recycled fibre was priced at Rs 88-92 per kg. The prices of 20 count PC (recycled-O/E) PSF yarn (40/60) increased by Rs 5 per kg. High tenacity recyclefibre also gained ₹2-3 per kg.

Reliance Industries had earlier increased prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT. The price of PSF remained steady at Rs 120 per kg. RIL has fixed prices of raw material as: PTA Rs 88.10 (+2.50) per kg, MEG Rs 56 per kg (+0.40) and MELT at Rs 94.81 (+2.29) per kg

Meanwhile, cotton prices gained further in north India as arrivals were minimal amid improving demand. According to traders, spot market prices gained ₹100-150 per maund of 37.2 kg. Cotton was sold at Rs 8,800-9,400 in Punjab, Rs 8,500-9,000 in Haryana and ₹9,250-9,450 per maund in Upper Rajasthan. Cotton was sold at Rs85,000-87,000 per candy of 356 kg in lower Rajasthan.

Presently valued at $16.760 million, the global zippers market is expected to grow by 4.1 per cent CAGR to $22.280 million by 2028.

According to an analysis by Market Research Guru, top five zippers producers including YKK, Coats Industrial, SBS, Weixing Group and YBS Zipper, account for around 20 per cent of the market.

The largest market is in the Asia-Pacific region, with a market share of approximately 60 per cent, followed by North America and Europe, each with a share of around 15 per cent. With a market share of roughly 65 per cent, Nylon Zipper is the most significant product category.

The research report includes a review of various market growth-enhancing elements. It consists of patterns, barriers, and forces that alter the market either favorably or unfavorably. The scope of various market segments and applications that may in the future have an impact on the market is also included in this section. The specifics are based on historical turning points and present trends. The amount of production for the global market and for each type is also analyzed in this section. The amount of production by region is discussed in this section. The research includes a pricing analysis from 2017 to 2028 for each type, manufacturer, area, and global price.

A statement from the United Nations Charter on Climate Action projects, waste from the fast fashion industry is predicted to reach 134 million tons by 2030. The industry has committed to achieve zero emissions by 2050 to tackle climate change.

The UN climate summit first inaugurated the fashion charter COP24 in Katowice, Poland in December 2018, then updated it as COP26 in Glasgow, UK, last November 2021.

The charter focuses on the impact of the apparel industry on the environment, as well as its role in achieving the goals of the Paris Agreement. It also urges the industry to adapt climate change in a systematic and in-depth manner.

The apparel industry has a unique opportunity to control climate action using its collective power to transform the industry into low-carbon technologies and products through the Fashion Industry Charter for Climate Action, says NiclasSyenningsen, UN Global Climate Action Manager.

The Charter also aims to introduce real actions to deal with environmental impacts that occur.