Indian textile producers are witnessing initial signs of a demand slowdown as high energy and food prices have weakened demand for products such as curtains and bedspreads in the top export markets of the US and Europe, says Upendra Prasad Singh, Textiles Secretary.

Due to high inflation in the US, demand has slowed, especially for home textile products as it is more price-sensitive than apparel and garments, Singh adds

The latest readings of manufacturing and services activity indicate that the economic outlook is darkening in the US and Europe. High energy costs because of the war in Ukraine, supply-chain disruptions because of pandemic-related lockdowns in China, surging commodities prices, and rising interest rates are increasing the risk of recession.

Japan’s Nomura said the US and EU could enter recession in the next 12 months as there are increasing signs of the world economy entering a synchronized growth slowdown", and that countries can no longer rely on a rebound in exports for growth.

India’s exports, too, have begun moderating on a sequential basis after touching a record high in FY22. Meanwhile, a sharp surge in oil and gold imports has pushed the nation’s trade deficit to a record in June. SachchidanandShukla, Chief Economist, Mahindra Group, adds, cotton prices are set to weaken amid slackening demand and global recessionary fears. A better crop outlook could also drive cotton prices lower, he opines.

The Indian government would soon launch the second round of production-linked incentives (PLI) in textiles to boost production of apparel and garments as they got limited benefits in the first round, Singh adds.

Italian manufacturer of high-quality recycled laces, Iluna Group will participate in the upcoming Première Vision to promote a new fashion that mixes artistic research with environmental responsibility. The collection focuses on offering consumers new solutions in style, sustainability, fabric blends, natural dyes and smart prints.

For the first time, Iluna’s team will introduce GOTS-certified cotton inside its gallons and allovers. The smart ingredients chosen by Iluna Group will include Renycle® and Q-Nova, both GRS-certified pre-consumer recycled polyamide yarns, in addition to premium recycled stretch ROICA™ EF by Asahi Kasei.

The Iluna Group will also introduce a yarn blend of FSC-certified viscose and polyamide, resulting in striking new Textronic designs. The 3D effect embossed designs create a cloud effect that combined with Lurex, shows unexpected glows. Besides, the group will showcase new developments in GRS (Global Recycled Standard) certified recycled yarns; experiments with 16 different natural dyestuffs; and continued investment in technologies that can ensure significant savings in water and energy consumption, including Greendrop, the new GOTS-certified digital pigment printing system.

During their meeting with Pakistan’s prime minister Shehbaz Sharif, All Pakistan Textile Mills Association (APTMA) leaders urged for a solution to finalize the competitive gas and electricity tariffs for export sector and restore gas to the captive power-run industry. The PM also urged concerned authorities to review the loadshedding policy of gas supply for dependent factories as the country’s economic stability depended on solutions to the problems faced by the industrial sector.

During the meeting, APTMA representatives briefed the PM about continued growth in textile exports and problems that are hampering the sector’s further growth. APTMA delegates informed, Pakistan’s textile exports grew to their highest levels of during FY22. This is 43 per cent, 26 per cent and 90 per cent higher than the FYs 2018, 2021, and 2010, respectively.

In June alone, Pakistan’s textile exports reached $1.7 billion. The zero-rated export industries, including textiles, used to earlier have a competitive gas and electricity tariff annually under a policy that ended on June 30, said APTMA delegates.

The delegates also requested the Sharif to introduce a five-year textile policy for a subsidized and regionally competitive gas and electricity tariff for the export sector.

Indian government has extended the deadline to import cotton without paying import tax till October 31. As per a Thrakika Ekkokkistiria report, the earlier deadline to import cotton without paying import taxes was September 30, 2022 as sowing of the fiber crop was delayed in some regions due to uneven railways. India, the world's biggest producer of cotton had allowed duty free imports in April as local prices surged to a record high due to a drop in the production and following rally in global prices.

The Sri Lankan, Joint Apparel Association Forum (JAAF) has alleged that Ceylon Petroleum Corporation has not directed the government to prioritize fuel distribution to it despite urging for an essential service status for industry. The Association added while the country was dealing with a fuel crisis, apparel exporters were managing daily operations to meet production deadlines to the best of their ability. Several factories claim to have sufficient fuel stocks to meet on-going production requirements. However, small and medium apparel factories were struggling to obtain fuel as the industry lacked the essential service status, said JAAF.

It is important for all manufacturers to remain fully operational as the country’s economy depends on it. They need to meet production deadlines as per order books. Only, this will ensure uninterrupted foreign exchange inflow in the country, the association added.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the Commerce Ministry to pay at least 10 per cent cash incentive for the shipment of non-cotton garment items made from man-made fibers (MMF). This will relieve exporters facing difficulties owing to the war, says Tapan Kanti Ghosh, Senior Secretary, Commerce Ministry.

The additional cash incentive will help accelerate garment shipment from Bangladesh and overcome the impact of the war, he added. The decision on new cash incentive will come into effect soon since orders are declining in some destinations due to higher inflation, Ghosh added. Despite the gloomy global outlook, exports from Bangladesh hit an all-time high of $52.08 billion in the just-concluded fiscal year. Garment exports from the country grew by 35.47 per cent Y-o-Y to $42.61 billion.

Currently, the government pays a 5 per cent cash incentive on the sales of garment items made from locally spun yarn, a 1 per cent additional incentive for exports in all markets and a 4 per cent cash incentive in non-traditional markets. Bangladesh considers all markets as non-traditional except the US, the EU, the UK and Canada.

Faruque Hassan, President, BGMEA, said, demand for non-cotton garment items are rising thanks to the change in fashion and styles. Of the total garment items exported from Bangladesh, 74 per cent is made from cotton fibre and the rest is manufactured from the non-cotton fibre.

The price gap between cotton and MMF-made items is also large. For instance, if a cotton-made garment item is sold at $5 apiece, the selling price of an MMF apparel item is $10, Hassan added.

Analysts are concerned over the fall of the rupee that hit a record low of Rs 79.03 per US dollar a few days ago. Experts expect weak demand to lead to a further decline in the value of the local currency. Since January 2022, the rupee has fallen by around 6 per cent. However, it recently recovered by 13 paise to hit Rs 78.90 against the dollar. The common man is reeling under rising inflation and drastic increase in prices of daily essentials.

High crude prices, outflows causing depreciation

As per an Outlook India report, the value of Indian rupee against the US dollar is determined by demand and supply factors. Higher demand for the US dollar causes the value of the rupee to depreciate. An increase in demand for the US dollar is caused by a country’s rising imports. The current fall in rupee’s value can also be attributed to high crude oil prices, a strong dollar overseas and foreign capital outflows.

Heavy foreign fund outflows from the domestic markets are also contributing to the fall in rupee’s value. The rupee has depreciated 5.9 per cent against the dollar so far this calendar year. This depreciation is also impacting the rupee-dollar exchange rates. Further, it’s causing import prices of crude and raw materials to rise, increasing production and retail prices.

The US Federal Reserve plans to hike interest rates, causing the Indian rupee to plunge further. India mostly pays for imports in US dollars. A weak rupee could compel it pay more for the same quantity of items. This threatens to increase the costs of raw materials and production for consumers.

Rising crude oil prices to make imports expensive

Meanwhile, a decline in the rupee’s value causes exports to surge as they become more competitive, giving buyers a wider choice. However, the current fall in rupee is not being supported by exporters.

India imports crude oil to meet over 80 per cent of its energy requirements. Rising crude oil prices are likely to make imports more expensive. It also indicates a rise in India’s imports, further signaling a weakening of the rupee. Since January, the Indian rupee has been on the decline, eroding its purchasing power in the international market.

Analysts expect a further decline in the rupee against the dollar in the next few years. To restrict this fall, the Reserve Bank of India is using the country’s huge stockpile of forex reserves. The RBI has so far sold Indian rupees at an exchange 78.97-78.98 per US dollar to boost its forex reserves and restrict the rupee’s fall. The bank may intervene further to contain the rupee’s depreciation. It will not allow such fluctuations in the value of the rupee, says Michael D Partra, Deputy Governor, RBI. The bank aims to work towards the stabilization of the Indian rupee, he adds.

To avoid waste accumulation due to unsold inventory, more fashion brands across the world are offering garments made according to customer specifications.

Offering 3D configured designs

Italian menswear brand Laneri has been offering made-to-measure garments to consumers since November 2020. As per The Spin Off report, the brand uses a 3D configurator to make its menswear garments. . The technology enables the brand to make suits, blazers, shirts, polo shirts and trousers. All these garments are made in Italy using a unique custom-fit pattern. They are made from fabrics supplied by the best Italian suppliers with measurements taken through a few dedicated ateliers in Italy, Paris and Bruxelles.

Complementing the female figure

Another brand Max Mara offers customized apparel collections to consumers. For S/S 2022, the brand launched ‘Tailored Suit’ project collection. The collection offers seven single and double-breasted jackets that have been carefully ironed to enable them to mold naturally to the female figure.

Others to have launched customized blazers for instance, JTB Custom launched a made-to-order blazer collection in collaboration with Rowing Blazer’. Founded by Jack Carlson, Rowing Blazer is an American clothing brand known for its authenticity, quality, and craftsmanship. Along with JTB Customs, the brand aims to deliver custom dress shirts, blazers, and sweaters within a span of two weeks.

Launched during the White Milano event, Italian company Blazer Bar offers a made-to-order and made-to-measure service for women blazers. Available in shop-in-the-shops or via web, this service delivers single edition jackets within six weeks at prices that start from €600 upwards.

Recycling fabric scraps for sustainable activewear

Indian activewear brand So What launched an sustainable collection made in compliance with environmental standards. The collection comprises garments from size XS to 6XL. So What also makes garments from fabric scraps, used plastic bottles and water-based vegan and Oeko-Tex certified dyes. Its latest collection offers customized leggings and high support sports bra in vibrant prints and contemporary shades.

Operating on a pre-order business model, the brand operates from its headquarters in Delhi while its design team is based in Florence, Milan, Delhi, Dubai and Barcelona.

Revolutionizing the footwear industry

A specialist of next-generation footwear, Japanese company Fuji Uni aims to revolutionize the future of custom-made footwear by using computer generated designs and resources chosen by manufacturing giants. The company uses instant digital imaging technology, UNI robotics and a 3D foot scanning process to offer a custom-made footwear solution.

The Japanese brand offers structural footwear in collaboration with podiatric physicians. Designed to overcome the discomforts of mass market shoes, this footwear boasts of modern designs created according to latest trends in the market. Launched simultaneously in Milan Tokyo and New York in March 2022, the first Fuji Uni collection offers upmarket, fashionable and comfortable sneakers, shoes and boots from the Italian specialized footwear design studio Black Cube.

Owned by expert shoe designer Andrè Maritan, the studio scans customers’ foot before allowing them to select their favorite shoe model, color and add their own unique touch to the shoe. The studio then uploads these digitized measurements and sends them directly to the manufacturer, which begins manufacturing the customized shoe.

The studio uses the 3D Goldilox-01 technology to design its shoes. The technology allows it to use all materials without creating any waste. Manufactured in Japan and Italy, the shoes are sold via the brand’s store in China, Japan and onine for prices ranging $300 to $800.

Iluna Group, the Italian company known for its high-quality recycled laces, is participating in the upcoming Première Vision, to promote a new fashion that combines aesthetic research and environmental responsibility.

This season, the Iluna team is introducing for the first time GOTS-certified organic cotton inside its gallons and allovers, to add a natural touch to its Green Label line. Among the smart ingredients chosen by Iluna Group are Renycle® and Q-Nova, both GRS-certified pre-consumer recycled polyamide yarns, in addition to premium recycled stretch ROICA™ EF by Asahi Kasei. The result is a comfortable and ultralight product that remains true to a high value of creativity and responsibility.

In terms of aesthetic innovation, explorations continue with a yarn blend of FSC-certified viscose and polyamide, resulting in striking new Textronic designs. The 3D effect embossed designs create a cloud effect that, combined with Lurex, shows unexpected glows.

Moreover, the continuous path through the new dimension of responsibility continues in several directions: developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in both look, performance and hands; experiments with 16 different natural dyestuffs; and continued investment in technologies that can ensure significant savings in water and energy consumption, including Greendrop, the new GOTS-certified digital pigment printing system.

Expanding its retail presence in India, Columbia Sportswear has launched its largest store in Bengaluru.

Spread across 2,500 sqft, the store is Bengaluru’s 4th and India’s largest experiential brand store. The brand plans to further expand its presence by opening stores in Lucknow, Mangalore, Indore, Mumbai, Ahmedabad, Jaipur over the next six months.

Ankur Bhatia, CEO, Chogori India Retail which retails Columbia Sportswear in India in a statement says, through the opening of this store, the brand aims to be the game changer and the best outdoor sportswear brand in India. The industry is witnessing a rapid growth projection and the enthusiasts need gear that is backed by superior technology and can withstand extreme conditions.”

The brand is also focusing on strengthening its digital presence with a dedicated online portal for outdoor sportswear products, he adds

Based in Portland, Oregon, USA, Columbia Sportswear is a global brand with a strong presence in the outdoor sportswear segment.