Traditionally an important contributor to economy, the performance of Indian textile industry has declined in recent years due to many factors some being global. Reports show, India’s textile exports declined 18.7 per cent in 2020. On the other hand, exports by Bangladesh and Vietnam surged during the period.

Compared to other exporters, India faces several cost disadvantages. Its power costs are almost 40 per cent more than Bangladesh. The country also lacks free trade agreements with key importers like EU, UK and Canada. Its high capital costs and import dependence for textile machines does not allow it to earn the deserved returns on investments. Additionally, the lead times of Indian manufacturers are longer than Chinese manufacturers, especially in the fashion segment.

Targeting $6 billion exports by 2026

However, things are beginning to change with COVID-19. The pandemic has led to a reformation of sourcing patterns, enabling Indian textile industry to regain its lost position in the global market. India now aims to grow its textile exports by 9 per cent CAGR till 2026. It aims to generate textile exports worth $65 billion by the period. The Ministry of Textiles has also set an ambitious target of $100 billion exports over the next five years. Export growth will also create 7.5 million to 10 million direct new jobs in the industry.

To achieve these targets, India needs to first target a $16 million rise in exports by exploiting the China-Plus One sentiment in Europe. India’s strategic depth compared to Vietnam or Bangladesh helped it achieve the status of a preferred supplier alongwith China.

Aim to be a regional fabric hub

India also needs to position itself as regional fabric hub to increase fabric exports to $4 billion. It can start by focusing on cotton exports and further extend to other sub-categories. It can also build on existing advantages in the home textiles market to increase exports to $4billion, write Neelesh Hundekari and Karan Dhal in The Economic Times. .

To boost MMF exports to $3 billion, it needs to increase its share of MMF products in the global market. It can achieve exports targets in technical textiles by building capabilities in select key sub-segments on the back of potential domestic demand growth.

$20 billion investments needed

To achieve these targets, both the industry and government need to take certain crucial steps. The government needs to follow its recent launches of schemes like PLI, MITRA and RoDTEP with their efficient implementation and leverage by industry players.

The government may also need to make fresh investments of $20 to $25 billion to achieve these targets. It will have to also ensure effective returns on these investments to attract newer ones. Reducing import duties on machinery or promoting indigenous manufacturing to bring down cost of capex can help India achieve this. It can also purse free trade agreements with key imports like the UK, EU and Canada.

Boost cost effectiveness and maximize services

To enable businesses to operate and expand effectively, India needs to boost cost competitiveness besides maximizing services, digitizing operations, building design capabilities and boosting global competitiveness by focusing on sustainability and traceability.

To distinguish itself from other competitions, India needs to become a one-stop destination for sustainable textile products manufactured by transparent value chain with best-in-class quality, at competitive rates and with minimum lead times.. The country needs to move at an accelerated pace to maintain not just its global position but also millions of jobs in the industry.

Until recently, Bangladesh’s dominance in the world apparel market remained unchallenged. However, in the last few years, Vietnam has slowly begun to usurp Bangladesh’s position as leading fashion manufacturer of the world. Recent World Trade Organization (WTO) report shows, Vietnam’s fashion industry is at least one score ahead of Bangladesh on 10 leading indices. On the other hands, its score on sustainability and political stability are 1.5 and 2 points ahead respectively.

Titled ‘Textiles and clothing in Asian graduating LDCs: Challenges and options’, the report was prepared after surveying at least 150 exporters and 30 global brands and retailers for their efficiency in creating value added products, innovation, efficiency, flexibility of order quantity, financial stability and political stability.

Bangladesh lags on many indices

As per the report, Vietnam’s score on product quality, lead time, and sustainability is also higher than Bangladesh which lags on 10 out of 12 indices covered in the report. Also, Vietnam can source raw materials in a better way and import them to its ports within 24 hours whereas Bangladesh takes 48 hours for the same, as per a Business Standard report.

Vietnam scores on labor efficiency and quick deliveries

In terms of labor efficiency also Vietnam scores as its workers are known to be 10 to 15 per cent more efficient in manufacturing. The country is able to deliver shipments to European buyers 10-15 days ahead of Bangladesh, says Shovon Islam, Managing Director, Sparrow Group. Also, Bangladesh is unable to send its products to buyers from seaports as it does not have any. It sends products first to Singapore and Sri Lanka and then transfers them to their final destination in Europe and the US. The country also lags in ports and customs management, explains Fazlul Hoque, Former President, BKMEA.

Price, tariff advantages save Bangladesh

However, Bangladesh manages to sustain some of its reputation by scoring on price and tariff advantage points, says the report prepared in collaboration with several UN agencies including the United Nations Conference on Trade and Development (UNCTAD).

Fazlee Shamim Ehsan, Vice President, BKMEA, adds, Bangladesh’s flexibility in terms of order quantity also remains unchallenged. The country manufactures products as per buyers’ demand. Faruque Hassan, President, BGMEA, challenges the wrongful citing of environmental compliance related risks as a downside for sourcing from Bangladesh. He says the country has made huge progress in terms of workplace safety, workers' wellbeing and environmental sustainability.

PTAs, FTAs to help sustain access to EU

Abdur Razzaque, Economist and Writer of the report believes, Vietnam scores with strong FDI in the apparel sector that help improve standards and bargaining power. Vietnam is also on its way to secure duty-free access to the EU apparel market with a FTA. On the other hand, Bangladesh stands to lose this access in 2029, three years after its graduation from LDC in 2026. The report estimates, Bangladesh may lose $5.37 billion with LDC graduation. To avoid this and continue enjoying access, Bangladesh needs to sign a preferential trade agreement and free trade agreement (FTA) with countries and trade blocs, adds Md Fazlul Hoque, former President, BKMEA.

Commerce Minister Tipu Munshi affirms, Bangladesh is looking at signing FTAs and PTAs with several countries this year. It also plans to avail duty-free export facility until 2031, he concludes.

Retailers in the US expect the rate of product returns to increase in 2022. As a report by the National Retail Federation and Appriss Retail, consumers are expected to return goods worth more than $761 billion sold last year to be returned by consumers.This accounts for an average of 16.6 percent of total U.S. retail sales, which soared to $4.583 trillion in 2021.

According to Mark Mathews, Vice President, National Retail Federation, the rate of returns in the US increased to 16.6 per cent in 2021 from 10.6 percent during 2020, but online returns are in line with recent years at an average of 20.8 percent. According to NRF, online sales accounted for $1.050 trillion of total US retail sales last year. Approximately $218 billion of online purchases were returned, with $23.2 billion deemed fraudulent.

The survey reveals, categories with the highest return rates were: auto parts (19.4 percent), apparel (12.2 percent) and home improvement and housewares (tied at 11.5 percent). Steve Prebble, CEO, Appriss Retail says, the retail industry is dealing with an influx of returned items. Retailers need to view this as an opportunity to truly engage with your consumers.

The 34th edition of Milano Unica will be held from February 01-02, at Rho Fieramilano in Milan, Italy and will feature < The Japan Observatory > (JOB).

To be co-organised by the Japan Fashion Week Organization (JFW) and the Japan External Trade Organization (JETRO), JOB will feature ten companies plus one group in the physical exhibitors’ space. It will also feature fabrics from twelve companies that will be displayed in a newly installed JOB Plus booth

Some of the companies that will participate in JOB include StylemTakisada-Osakathat will mark its 12th participation in JOB this year. Assisted by a local subsidiary in Italy and a business agency in Milan, the company will handle its business at the fair in absence of its staff from Japan due to COVID-19 related travel restrictions. It will showcase abundant products and color variations, plus scope to handle even small-batch orders.

Another exhibitor Silk Textiles Global Promotion Consortium will enhance alignment of the three traditional textile industry players: Nishijin, Tango and Yuzen, from each production hub in Kyoto Prefecture, with five of its companies set to make their debut in the JOB area on this occasion.Morisan from Nishijin will present the ‘Nishijinori-Kinran’ series

Third exhibitor Miyashinwill showcase outstanding textile development ability, including those with hard-twisting silk yarns that generate a three-dimensional surface effect, alongside silk-washifabrics representing a highly focused ecological material.

Tayuh Textile Industry Corp will showcase a collection leveraging twisting and weaving techniques nurtured in Tango chirimen manufacturing. Three companies representing Japan Denim from Hiroshima Prefecture will also join JOB.

UK Fashion and Textile Association (UKFT) I is hoping for the success of the North West Adoption Program. The technology adoption program urges textile firms to drive sustainability and growth through digitization of operations. The program is being adopted by 125 companies from the sector by tapping into impartial expert technology advice, organizing digital transformation workshops to help them take their first steps, a leadership program, digital technology internships, and skills development support.

Of these, 13 textile businesses are investing in new digital technology to solve key challenges while increasing productivity, growth, and creating new high value jobs. To continue building on its achievements and ensure the UK remains competitive against global competition, manufacturers need to embrace current and emerging technologies, and the huge potential digitization offers, as well as to raise the skills and productivity of the people who work in the sector to the highest level, says Adam Mansell, CEO, UKFT.

The Uttar Pradesh garment industry has suffered heavy losses due to the third COVID-19 wave. The garment industry in Noida and Kanpur in particular, reported a 40 percent slump in production and a considerable drop in export. The garment industry in these two cities had been showing signs of recovery from November 2021 onwards after a successive slowdown of two years, when the third COVID wave hit in January.

As per a Textile Value Chain report, there are over 10,000 textile and garment units across the state with most of them located in the Kanpur and the Noida region. The Noida region alone houses around 3000 textile units and each unit has a minimum workforce of around 100 employees.

Nearly all of them are facing a financial crisis as foreign buyers are reluctant to place orders. They are apprehensive about the capacity of these textile and garment units to fulfill the ordera due to the prevailing COVID-19 conditions.

Bangladesh's readymade garment (RMG) exports to the US surged 45.91 per cent during the July-December period of fiscal year 2021-22. Country-wise RMG export data published by the Export Promotion Bureau (EPB), shows, Bangladesh’s apparel export earnings surged to $4.2 billion in the first six months of the current fiscal year from $2.9 billion during the same period of FY21. As per a Dhaka Tribune report, Bangladesh’s exports of woven products grew by 39.97 per cent during the period to $2.83 billion. Its knitwear exports grew by 57.48 per cent to $1.54 billion.

Data from an affiliate of the US Department of Commerce, OTEXA, shows, Bangladesh’s RMG exports increased by 30.68 per cent to $6.36 billion during the first 11 months of 2021compared to $4.86 billion in the same period of 2020. Shahidullah Azim, Vice President, BGMEA says, Bangladeshi clothing has good potential in the American market as the US has shifted orders from China due to trade, from Myanmar due to the military rule and from India due to its worsening COVID-19 situation.

Besides the US, Bangladesh’s garment exports to the EU also increased 23.83 per cent to $12 billion in the first six months of FY22, from $9.7 billion in the same period of FY21. Exports to the Canadian market grew 23.78 per cent to $602.82 million in the first half of the current fiscal while to the UK market it grew 20.65 per cent to $2.14 billion during the July-December period of the current FY. However, Bangladesh’s apparel exports to China declined 21.04 per cent to $110.39 per cent during FY22 from $139.81 million in FY21.

Former executive at companies like IKEA and Google, Barbara Martin Coppola has been named as new Global CEO by French sports retailer Decathlon. Coppola will replace Michel Aballea, who held the role since 2015 till mid-March this year.

Currently in sound financial shape, Decathlon echoes bullish updates recently given by sportswear companies such as Puma and JD Sports, which have performed well despite the COVID-19 pandemic.

The company’s current good health encourages it to accelerate the transformation of its business model to reassert its position as a world leader in sport, says Fabien Derville, Chairman, Decathlon.

According to Decathlon's website, the company registered sales of €11.4 billion. The Mulliez family, which also owns the Auchan supermarket chain, owns the majority shareholding in Decathlon.

As per a new study by independent assurance and risk management provider, DNV, 35.8 per cent of the surveyed 2,900 consumers in the US and in Europe said, they had not heard of circular economy. Of them, 45 per cent indicated they have extensive knowledge and actively participate. DNV says, knowledge about and engagement in circularity are higher among younger generations, with more than 53 percent saying they actively participated.

Consumers are increasing their knowledge about circularity through traditional and social media, says the survey. This is followed by “political discussion” and through friends. Despite companies building QR Codes into their labels and working with eco-storetelling, only one in five respondents mentioned that they get their information from manufacturers and suppliers directly, indicating that businesses may need to do more to get their message out and build trust.

The survey showed, products with recycled properties are a priority for 48.1 per cent of the respondents, and 62.9 per cent said they prefer to buy less or opt for secondhand products. Those above 55 years do more repairs than their younger counterparts, while the younger respondents tend to buy more secondhand and rent instead of owning.

Although style and price continue to weigh heavily on purchasing decisions, price is especially relevant for younger consumers, which DNV said could be linked to their purchasing power. Besides cost, several factors influence consumers when deciding on whether to buy circular fashion products. Information on a product’s ecological footprint is important to nearly half of the respondents, closely followed by working and labor conditions, quality of the product, and certifications, verified labels and validated sustainability claims.

Most respondents believe companies and brands should take responsibility for a product’s recyclability and end of life as well as being more innovative—and many are willing to back this up with their spending.

Kong Sang has been elected as the new president of Garment Manufacturers Association in Cambodia (GMAC) elected its new president. He replaced Van Sou Ieng at the association’s recent Annual General Meeting. The meeting was presided by Ith Samheng, Labor Minister, who said, textiles, garments, footwear, bags and travel products are set to be the future growth sectors as they grew by an average annual growth rate of about 10 per cent for the last 10 years.

He said although a slight decline was seen in 2020, good recovery was made last year with exports in the first 10 months increasing significantly with garment exports amounting to $6,538 million, an increase of 6 per cent over previous year. He added footwear exports increased 20 per cent last year to $1.113 million compared to 2020 while exports of travel products also rose 49 per cent to $1.179 million.

GMAC works closely with the Ministry of Labor, Ministry of Commerce, relevant ministries, institutions, international labour organisations, unions and social partners to contribute significantly towards the socio-economic development of Cambodia, Samheng added.