The fashion industry is facing numerous challenges across countries. These include obstacles in delivery of in-demand products from suppliers. Also, suppliers are not able to predict demand due to uneven consumption patterns, says Achim Berg, Senior Partner, McKinsey & Co.

Focus on new alliances and technologies

Situations like these demand focus on new alliances and closer exchanges with brands, Berg opines. This would help suppliers predict demand by giving access to data. Brands also need to be flexible in their operations and improve product costs and Tier II and III suppliers, Berg says.

Demand recovery varies across regions. Recovery is strong in Asia with China leading demand. On the other hand, Europe is struggling due to lack of international travellers and fragmented nature of markets. North America, that initially witnessed a V-shaped recovery, is still going strong. Technology is playing an important role in recovery of brands with digitization of supply chains becoming extremely important.

Categories like dresses, high heels, even suits made a strong return in the first five or six months of this year. Europe is recovering so are the US and Asia. Together, these nations are expected to drive future consumption.

Managing costs

Though consumers desire to spend on fashion, mounting energy bills are preventing them from doing so. The Russia-Ukraine war is boosting energy bills and cost of living. It may also impact the fashion industry, particularly, he discounts, value fashion and midmarket segments.

Brands are likely to face a recession induced by current inflation levels. Rising energy costs and interest rates are likely to impact consumption and refinancing patterns and cost structures of companies. To manage costs, brands will have to review their investment budgets and cost structures, and prepare for a challenging 2023. They will have to move away from physical stores toward a more digital business model.

Traceability gains traction for brands

Sustainability continues to be the big topic. In the next 18 to 24 months, brands will have to focus on sustainability. They will have to emphasize on traceability and digitalization to ensure transparency across the supply chain.

Big players will get bigger in future, given the resources, brands and business systems they have built. Low-performing players will face challenges in funding some of the things that the top performers are doing. Brands need to diversify to geographic regions to balance risk. They should also expand their product categories with a bigger focus on digitizing operations.

Activewear brand Lululemon plans to launch its Hike Collection on July 5, 2022.

The 33-piece line has been designed to make hiking easier and more enjoyable.Its abrasion-resistant seams reduce friction for chafe-free climbs while lightweight fabrics make the items more breathable.

One such example is the ‘Grid Fleece Hiking Overshirt’ which is made of a grid-textured mesh fleece fabric that is also breathable. It’s also water-repellant and has pockets on the chest, arm sleeve and side of the stomach for carrying items.

The ‘Convertible Ripstop Hiking Jacket’ features zip-off sleeves to maximize comfort in shifting. Other pieces are highly adaptable to enable hikers to be comfortable in a variety of climates, like the water-resistant and windproof ‘Convertible Ripstop Hiking Jacket’ which features zip-off sleeves and a mesh opening in the back to maximize airflow. It even has a shoulder bag built into the side pocket that can be easily zipped off and used as a lightweight purse. The jacket can be rolled up into a small bundle for easy packing.

Convenience and comfort is equally as prioritized with the eight accessories included in the collection. The ‘LiftOS Hiking Backpack 25L’ is made with a water-repellent material and has been designed so that once it’s packed, it sits higher on the back, removing strain from the shoulders. The back panel is also curved for added lumbar support and to help transfer weight to the hip.

The entire collection is packable, stretchable and highly adjustable to maximize convenience and encourage hikers to get outdoors. The phrase “detours are welcome” is subtly sprinkled throughout the line—on the back of sports bras and above the hip pockets on leggings. “For us it’s about a sense of adventure,” says Stubbington. “We want to invite people to get out and enjoy nature.”

The ‘Hike to Swim Bra’ are designed to be functional both while hiking and swimming, to encourage hikers to not let their clothing prevent them from experiencing all that nature has to offer. The bra is made with Esca fabric and Xtra Life Lycra for stretch and shape retention, and improved chlorine and salt resistance.

The collection has been designed to take hikers from the trails to everyday activities, like socializing in the city.

Due to the COVID-19 pandemic, the global zippers market, currently worth $16.760 million, is forecast to a readjusted size of $22.280 million by 2028 with a CAGR of 4.1 per cent during the forecast period 2022-2028.

As per a report by Market Research Guru, key players in the global zippers market include YKK, Coats Industrial, SBS, Weixing Group, YBS Zipper, etc. Global top five manufacturers hold a share about 20 per cent. Asia-Pacific is the largest market, with a share about 60% per cent followed by Europe and North America, both with a share about 15 percent. In terms of product, Nylon Zipper is the largest segment, with a share about 65 per centAnd in terms of application, the largest application is garment, followed by luggage and bags, sporting goods, camping gear, etc.

The research report incorporates the analysis of different factors that augment the market’s growth. It constitutes trends, restraints, and drivers that transform the market in either a positive or negative manner. This section also provides the scope of different segments and applications that can potentially influence the market in the future. The detailed information is based on current trends and historic milestones. This section also provides an analysis of the volume of production about the global market and about each type. This section mentions the volume of production by region. Pricing analysis is included in the report according to each type, manufacturer, region and global price from 2017 to 2028.

KraigBiocraft Laboratories, Inc, the biotechnology company focused on the development and commercialization of spider silk, in collaboration with its joint venture partner, Kings Group, has selected a high-quality garment manufacturer to produce first apparel line under its Spydasilk'sTMbrand.

The manufacturer selected has demonstrated its capacity and technical ability to deliver on Spydasilk's vision for apparel that blends performance and elegance with its exclusive spider silk materials. With more than 20 years in business and its strong ties to Vietnam's entire textile supply chain, this producer can leverage the capabilities of the best mills to bring the Spydasilk brand to life.

In partnership with Kings Group, the Company has already delivered its recombinant spider silk yarn and a non-spider silk fabric swatch for use in developing a brand new fabric built upon the performance and feel of the Company's spider silk.

Kraig Labs and Kings Group are simultaneously developing an accelerated product launch plan, including media, marketing, sales, and distribution systems for this first direct-to-consumer apparel launch.

The Indian government plans to setup 75 textile hubs like Tiruppur to support textile exports, said Piyush Goyal, Union Minister of Textiles addressing a exporters’ meeting in Tiruppur. The meeting was organized by the Federation of Indian Export Organizations (FIEO) and Apparel Export Promotion Council.

The textile hubs will not just promote textile exports but also create huge employment opportunities, Goyal added. In 1985, Tiruppur exported garments worth Rs 15 crore annually. Growing at a CAGR of 23 per cent, exports have reached Rs 30,000 crore in 2021-22. Tiruppur’s garment industry employs four crore people across the textile value chain and its current size is Rs 10 lakh crore, Goyal stated.

The government plans to introduce a production linked incentive (PLI) scheme for apparel manufacturers, says Piyush Goyal, Minister of Textiles, Commerce and Industry. The PLI scheme with an outlay of nearly Rs 2 lakh crore has been announced for over a dozen sectors including man-made fibre, technical textiles, white goods, medical devices, and automobiles and auto components.

The scheme may help Indian garment manufacturers scale up operations at the time when the government is negotiating tariff concessions under FTAs with the UK and the European Union. India’s textile exports may reach $100 billion in the next five years from $44 billion currently, says Goyal. It plans to double these to Rs 20 lakh crore in the above period by creating new job opportunities, attracting investments and promoting startups and MSMEs, he says..

The government is accelerating free trade agreements with Canada, UK, European Union and Israel. It also plans to sign FTAs with the GCC (Gulf Cooperation Council) and Eurasian Economic Union These FTAs will help India boost exports, create new jobs and attracts investments worth thousands of crores, adds Goyal.

Revenues of garment manufacturers could increase 9-11 per cent this fiscal to 1.25 times of the levels seen in 2020, says the SME Report 2022 by CRISIL. EBITDA margins of these manufacturers is likely to remain in the range 5 to 5.5 per cent. Over 25 per cent of micro, small and medium enterprises (MSMEs) operating in India lost 3 per cent market share due to the pandemic, while the earnings before interest, tax, depreciation and amortization (EBITDA) margins of over 50 per cent declined due to a sharp rise in commodity prices last fiscal compared to the pre-pandemic level.

The share of MSMEs in several sectors has erorded by 3 per cent while EBITDA margin erosion was equal to fiscal 2020. Despite a rise in freight rates, Ebitda margin of small fleet transport operators was impacted by 50 bps in fiscal 2022, over fiscal 2020, due to limited cost pass-through of rising fuel cost that forms about half of the total cost.

Sectors such as textiles offered a ray of hope for exports. Cotton yarn exports benefited from the US ban on Xinjiang, China-made items, besides the China+1 policy. Having 70 per cent share, the RMG industry gained from supply constraints in China, and from emerging global opportunities. Going forward, Tirupur-based garment manufacturers are likely to benefit from export orders diverted from an economically floundering Sri Lanka, says Elizabeth Master, Associate Director, CRISIL Research.

The CRISIL report covers 69 sectors and 147 clusters that achieved an aggregate revenue of Rs 47 lakh crore, representing 20-25 per cent of the GDP.

Brazil is looking to enter strategic partnerships in Asia by increasing its cotton supply to Bangladesh, says Cotton Brazil at a sellers’ mission event in the country. Certified by the Brazilian Cotton Growers Association (ABRAPA), the international market development program for Brazilian cotton, Cotton Brazil, visited Bangladesh and met officials of BTMA, BGMEA, Ministry of Industries, Cotton Development Board, and some prominent textile millers including Noman Group, MAS Group, NRG Group, ISRAQ Group, Viyellatex Group, Syed Group and Salma Group in Dhaka

The delegates disclosed their aim to promote sustainability and demonstrate Brazil as a reliable partner of high-quality and traceable cotton. The event also focused on Cotton Brazil’s commitment to ensuring short-term, medium, and long-term business continuity through its promotion of Brazilian cotton export. They discussed the issue of rising cotton prices on Asian garment manufacturers and the lack of supply due to top producers’ diminishing yields of cotton last year.

To overcome cotton shortage, demand for Brazilian cotton is increasing making it the fourth largest cotton producer and second-largest exporter in global market. According to Cotton Brazil, they supplied 166,000 tons of cotton to Bangladesh as of April 2022.

ABRAPA estimates, Brazil’s area under cotton cultivation increased by 15 per cent to about 1.58 million hectare. It forecast, cotton production will increase 20 per cent to 2.82 million tons in 2022, marking it the second-best season for Brazilian cotton’s history. Moreover, Brazil projects, its total shipments will rise to 1.90 million tons for the next cycle.

UBS Evidence Lab’s Global App Monitor has named Chinese fast fashion retailer Shein as ‘most downloaded’ shopping app as well as the ‘most searched-for apparel retailer in the US. The online-only retailer of inexpensive clothes, beauty, and lifestyle products grew from a $15 billion valuation in 2020 to 100 billion value in a recent funding round, as per a WSJ report.

Growth is attributed to its strong momentum with consumers, say UBS analysts. As per an AoI report, growth makes Shein an increasing threat to US specialty retailers such as American Eagle, Aberchrombie & Fitch, Urban Outfitters, Victoria’s Secret, The Gap, and department stores and off-price retailers. Despite having no network of physical stores, Shein has been ranked a top brand on TikTok and has been the second favorite website for shopping amongst teenagers for the last two years, according to Piper Sandler's semi-annual Gen Z Survey. The e-commerce company pursues an aggressive, data-driven fast-fashion business model that makes it a popular brand amongst price-sensitive consumers.

One of the leading events in apparel sourcing, The Apparel Sourcing Week (ASW) will organize its first physical edition after a two-years on July 1 and 2, 2022 at Sheraton Grand Hotel in Bengaluru. The two-day event will hold 10 seminars, 12 open house discussions, vendor sessions and workshops and accelerator program for start-ups, etc. It will include participants from 15 countries and over 10,000 brands, retailers, manufacturers, and analysts. Popular and established brands like the Shopper’s Stop, Being Human, Tata Cliq, Nykaa Beauty & Fashion, Adidas, Benetton, etc, will participate in the event.

Other key exhibitors such as Pacific Jeans, Giant Group, Laila Fashions, Liva, Vardhman, Reshamandi, Trace Network, Flix Stock etc, will also participate in this event. Mayank Mohindra, Director, Apparel Resources says, ASW 2022 has been curated for the industry and businesses to decode the post-pandemic business ecosystem and markets. It will also help generate productive and effective business opportunities, he adds.

The two-day will also host many thought-provoking sessions to discuss important topics such as ‘Reinventing physical retail’, ‘Fashion innovation using AI’, ‘Upcycling – the new frontier for sustainability, ‘Sourcing in times of Industry 4.0’, etc. The event also aims to encourate India-Bangladesh collaboration and promote South Asia as the global hub for apparel and textile innovations.