Milan, Italy - Candiani SpA, renowned for its sustainable practices, has clinched the prestigious ITMA Sustainable Innovation Award for the second year running. The award recognizes their groundbreaking Candiani Custom project, featuring a cutting-edge micro-factory that produces tailor-made jeans on demand. The eco-conscious customers can choose from an array of Candiani Denim fabrics.

The ITMA Sustainable Innovation Award, initiated in 2015 by CEMATEX, celebrates collaborative endeavors between exhibitors and customers, highlighting industry excellence. This year's event, held in Milan, also witnessed the ITMA 2023 Research & Innovation Award, which encourages academic institutions to pioneer textile industry research.

Denim stole the spotlight at the ITMA Sustainable Innovation Award 2023, showcasing concepts focused on sustainability, zero-waste production, and reduced water and energy consumption.

Candiani SpA secured the top accolade, thanks to their visionary Candiani Custom project and the bespoke cutting machine designed specifically for it. Their urban micro factory embodies sustainable practices, minimizing waste throughout the production process.

Denim Moda Srl and Limonta SpA were the other finalists in the Industry Excellence category. Denim Moda earned recognition for the establishment of the Denim Moda Urban Factory, equipped with cutting-edge technologies for sustainable denim and cotton production. Limonta impressed the judges with its Bio-Freed dyeing system, which drastically reduces water consumption by 90% and lowers energy usage by 67%.

The Industry Excellence Award judging panel comprised Amina Razvi, CEO of the Sustainable Apparel Coalition (SAC); Dirk Vantyghem, Director General of the European Apparel and Textile Confederation (EURATEX); Ernesto Maurer, President of CEMATEX; and John Mowbray, Founder & Director of MCL News & Media.

In the Research & Innovation Excellence Award category, Philipp Benjamin Weigel emerged as the winner for his thesis on the numerical simulation of parametrically generated profiled carbon polymer yarns. Eva Wingerath and Maryam Sodagar were the first and second runners-up, respectively, for their research on composite pressure vessel end-of-life recycling and the use of banana fiber as reinforcement for polylactic acid.

The ITMA Sustainable Innovation Award serves as a platform to promote research and innovation in the textile industry.

Cambodia's exports in the first five months of 2023 reached $9.18 billion, a 2.4% drop compared to last year, as reported by the General Department of Customs and Excise. Apparel, footwear, travel goods, bicycles, rice, rubber, cassava, bananas, and mangoes were the major exports. 

The United States remained the leading market, with exports worth $3.19 billion, a 14.3% decrease from the previous year. Exports to Vietnam rose by 22%, reaching $1.32 billion, while exports to China increased by 13.3% to $588 million. 

The government aims to attract foreign investment and boost the economy, especially with trade agreements like RCEP and FTAs with China and Korea. Import figures declined to $10,109 million, a 22.6% decrease from the previous year, with key items including oil, raw materials, machinery, and electronics.

Luxury brands face uncertainty as investors grow cautious amidst market decline. Recent meetings with top investors in Los Angeles, Tokyo, and Monaco reveal nervousness regarding the industry's direction.

Changing consumer values and expectations poses a significant challenge. Younger demographics prioritize experiences and ethical, sustainable brands, demanding net-positivity. Failure to adapt may lead to declining market share, especially with evolving brand preferences in China.

Global economic and geopolitical uncertainties further compound the situation. Geopolitical tensions, trade wars, and Europe's soft recession threaten discretionary spending. Luxury brand CEOs express concerns about overdependence on the Chinese market.

The digital realm presents a crucial next chapter for luxury brands. Reluctance to embrace digital technologies risks losing market share to digitally-savvy competitors. Although the pandemic pushed brands to catch up, a lack of digital mastery remains vulnerability.

Luxury's transition from glamour to caution prompts investors to reconsider their positions. CEOs must navigate operational challenges and meet investor expectations to thrive in this shifting landscape.

The Joint Apparel Association Forum (JAAF) has expressed deep concern and disappointment over the recent decision to abolish the well-functioning Simplified Value Added Tax (SVAT) scheme. 

Representing the apparel industry, JAAF firmly believes that this move will have detrimental effects on the sector, exacerbating the challenges faced by declining exports and putting the cash flows of businesses at risk.

JAAF highlights that the abolition of SVAT will burden an already stressed industry, particularly impacting company cash flows as funds will be tied up in refund systems. This impulsive decision, made without consultation, will have disastrous long-term consequences for the sector's operations.

Moreover, JAAF emphasizes that the removal of SVAT is revenue-neutral to the Department, failing to contribute significantly to the government's revenue targets. Sri Lanka's history with VAT refunds is poor, and the SVAT system has effectively curbed fraud in the non-export sector. Exporters rely on SVAT to purchase local inputs for their exports, minimizing the potential for abuse.

The decision also overlooks the possibility that apparel exporters may resort to importing raw materials instead of purchasing from domestic manufacturers, leading to increased imports and negatively impacting the trade balance. 

Additionally, reintroducing a VAT refund system would require significant resources from the Inland Revenue Department, resulting in higher administrative costs for all parties involved.

In light of these concerns, JAAF strongly recommends that the removal of SVAT from the export sector be approached cautiously. 

Preserving SVAT for the export sector is crucial to safeguarding the industry from unnecessary internal shocks during a period of declining exports and adverse effects on companies and employees.

US retailers and brands have reduced imported readymade garment shipments by almost 25%, impacting exports from China, Vietnam, Bangladesh, India, and Indonesia. 

The latest data from the US Department of Commerce's Office of Textiles and Apparel (OTEXA) reveals that in the first four months of this year, the US imported apparel worth $25.21 billion, a decrease of approximately 22.15% compared to the same period last year when imports amounted to $32.39 billion. 

China experienced a significant drop in readymade garment exports to the US, with a 32.45% decline, exporting garments worth $4.52 billion in the first four months of this year compared to $6.69 billion in the corresponding period last year. 

Vietnam saw a 27.33% decrease in garment exports, while Bangladesh and India experienced declines of 17.88% and 16.59%, respectively. Indonesia's apparel exports to the US fell by 25.57%. 

Inflation in the US, which spiked last year due to the Russia-Ukraine conflict, has now decreased to 4.9% in April. As a result, Bangladesh apparel businessmen anticipate an increase in garment orders for the upcoming summer season. The US remains the largest market for Bangladesh's apparel industry.

London Fashion Week commences, highlighting the industry's overlooked environmental impact. A recent study reveals that fashion shows, business travel, and collection transportation contribute significantly to carbon emissions.

The study by Carbon Trust & ORDRE unveils shocking findings: 11,000 retail buyers and 5,000 designers produced a staggering 241,000 tonnes of carbon emissions, surpassing Saint Kitts and Nevis' 2017 greenhouse gas emissions and capable of powering Times Square for 58 years.

New York's fashion week ranks highest with 60,000 tonnes of emissions, followed by Paris with 45,000 tonnes and London with 28,000 tonnes. Buyers average 12.1 tonnes, while designers' employees average 7.6 tonnes of carbon footprint.

This report intensifies global pressure for sustainable fashion practices. Recommendations include economy class travel, combining trips, prioritizing trains over flights, and consolidating seasons and collections.

The research encompasses fashion weeks in Amsterdam, Tokyo, Barcelona, and other cities, emphasizing the urgent need for industry-wide changes.

The European labor market offers a significant breakthrough for Bangladeshi garment workers as the Bangladesh Overseas Employment and Services Limited (BOESL) initiates the first-ever opportunity. At the expense of the government, 55 skilled workers from Bangladesh will be sent to Bulgaria, a Southeast European country known for its thriving garment and textile industry.

The selected workers, including swing and pressing machine operators, textile tailors, and other skilled professionals, will join Bulgarian garment factories, fulfilling the demand specified by the Bulgarian government. They can expect a monthly salary ranging from 35,000 to 50,000 taka, inclusive of overtime, and accommodation facilities provided by the employing organization.

This landmark move marks the creation of employment opportunities for Bangladeshi garment workers in the European Union, a crucial milestone for the country's workforce. To ensure successful integration into Europe's labor market, the Bureau of Manpower, Employment, and Training (BMET) has devised a special action plan.

With Bulgaria expressing interest in hiring Bangladeshi garment workers in 2022, the process of visa processing and candidate selection is currently underway. Bangladesh has also set an ambitious target of sending 1.2 million workers to various countries this year, according to the BMET.

Italian textile machinery association, ACIMIT, recognized two of its member companies, Pafasystem and Brazzoli, with Green Label awards for their achievements in reducing carbon dioxide emissions generated by their machines. The awards were presented at an event held during the ITMA exhibition in Milan.

Pafasystem, based in Prato, specializes in spinning machinery, while Brazzoli, located in Senago, focuses on fabric dyeing technologies. The Green Label Awards are part of ACIMIT's Sustainable Technologies project, which began in 2010 and involves over 40 member companies dedicated to environmental improvements.

ACIMIT President Alessandro Zucchi highlighted the long-standing commitment of Italian manufacturers to sustainability, emphasizing their dedication to providing effective and cost-saving technological solutions.

Pafasystem CEO Francesca Fani expressed gratitude for the recognition, attributing the achievement to the collective efforts of their team in enhancing production efficiency. 

Greta Banfi, Technical Department Manager at Brazzoli, emphasized the company's early participation in the Green Label project, showcasing the prominent role of Italian textile machinery manufacturers in promoting eco-friendly technology trends.

With 422 exhibitors, Italy, as the host country for ITMA 2023, enjoys the largest presence at the exhibition.

In a recent McKinsey report, a group of experts from the consulting firm’s Retail Practice point out, Asian readymade garment manufacturers need to be strategic in the context of changing scenarios in their importing markets that were primarily driven by the 2020-2021 lockdown, the Ukrainian conflict and the ever-rising environmental concerns that the garment industry has been facing for decades. 

Post pandemic, most fashion brands have changed their buying strategy to make it more seamless and foolproof, especially the ever-important supply chain. Western buyers now seem more interested in their resources in Asia undergoing digital transformation and be analytics driven thus enable themselves to provide smooth interaction. So much so that in the near future Western importers might make digital transformation a mandatory feature if the supplier wants their business. The other strategy gaining grounds is “near-shoring” or having manufacturing hubs closer to the consumer market which lowers logistical costs and saves on carbon miles. The idea is suppliers invest in creating hubs closer to their long-term partners’ markets. 

Asian manufacturers face serious issues

China, India, Bangladesh, Indonesia, Malaysia, Vietnam and Sri Lanka are at the helm of global exports of readymade garments. However, with the US and EU reducing orders steadfastly it has created a crisis-like situation so much so that in an all-time first for the region, Vietnam and already financially-crippled Sri Lanka shut down factories or operated at a bare minimum starting January 2023 until  round April. Even Bangladesh and India have run units at 60 or 70 per cent capacities and the challenged situation is seeing profits spiral downwards. 

The key challenges these nations face are that fashion brands are paying less to balance their retail sales in an economic crisis-hit west, which in turn is adding to the cost pressure as Asian nations too are paying more on operational costs and raw material. The other main challenge is the speed and flexibility of suppliers, which raises the point of near-shoring for the benefit of a long-term partnership, and flexibility so supply chains can be rearranged effortlessly if and when situations arise. Digital transformation, an element that is poorly represented in Asian manufacturing hubs has to be deployed immediately and sustainability has to be taken seriously to gain credibility in conscious consumers. That is a lot to take on and in this situation McKinsey has some insightful recommendations to the beleaguered sector in Asia. 

Five-deck strategy to meet challenges 

An important recommendation for the future will be partnerships that large Asian manufacturers invest in. As the fashion sector becomes increasingly polarized, it has been observed that the top 20 brands are resilient and steady since 2019 until now. It may be worthwhile deciding who suppliers envision as long-term partners and initiate their choices based on honest appraisals of their own capacities and capabilities.

Future-proofing manufacturing units by leveraging digital and analytics to drive productivity and provide strategic benefits to partners that are categorized as long-term ones – the value on offer will play a key role in sustaining such partnerships. 

Recalibration of commercial negotiations that are based on customers, their product portfolios and the economic situation of their markets will help fortify the relationship as credibility and practicality of the business engagement will enable its continuity. 

Structural overhauling is the fourth part of the strategy that requires alignment of the commercial aspect of the business with demand and specification-based initiatives in external spends. Done well, this can end up with about ten per cent cost benefit for manufacturers. 

Lastly, diversification of geographic customer portfolio and investing in targeted markets thereby onboarding near-shoring is a key strategy. The manufacturers that have already adopted the “local for local” are winning on logistical costs already. 

With heightened awareness on health and fitness worldwide, Indian attitude to swimwear has been swimming against the tide of a relatively nascent apparel segment. Many Indian fashion brands have now entered the swimwear market with innovative designs in the bikinis and one-piece cut-away swimsuits that are the most popular although other silhouettes like monokinis, swimming dresses and even burkinis are also part of the extended portfolio in India and other traditional countries. 

Growth in the swimwear retail market can be attributed to a thriving beach travel industry, influence of social media, rise of physical fitness and even destination weddings where swimwear is now a part of the bride’s trousseau. Experts say, that the segment makes a profit margin of around 40 per cent especially due to the New Age social media. 

Global swimwear segment to grow 2.16 per cent CAGR

Latest Statista report the leading global provider of market and consumer data- the revenue in the sports and swimwear global segment amounts to $817.70 million in 2023 with the market expected to grow annually at 2.16 per cent CAGR  from 2023-2027. In global comparison, most of this revenue is from the US with $12,600 million in 2023 and expected to show a volume growth of 2.4 per cent in 2024. 

In India too, many domestic brands have sprung up over the last decade, giving stiff competition to international brands as they have versatile designs more suited to the Indian woman’s shape and likings. As fashion comes of age in India, more homegrown labels are jumping into this bandwagon and more international niche swimwear labels are launching here.

Many international retailers such as Madewell are expanding their third-party brand mix to diversify their range and acquire new customers which currently stocks 14 external brands while M&S has extended its branded offering with stocking Sosandar and Fantasie.

Allied Market Research, a well-known consulting and advisory firm had valued the global swimwear market at $18,454 million in 2017 and new reports indicate that there has been a  healthy  growth rates in India and the market is currently pegged at Rs 150-200 crores while growing at the rate of 15-20 per cent year on year.

Bespoke and innovative swimwear making waves 

As per Ajay and Kalpana Rajpal of Mezzaluna who have a innovative portfolio of bespoke swimsuits, the swimwear segment is now vast, ranging from tiny bikinis to covers-more silhouettes like monokinis and even burkinis and it is now a category that caters to all cultures. With destination weddings on the rise, bikinis are not only part of the trousseau, but even entering traditional dressing as they can double up as sari blouses and maillots can be worn as bodysuits. 

Neha Gupta, Founder of  Exchange4Fashion, says international luxury labels in India are focusing on innovative styling on Indian women’s body shapes and working with overlay styles. As the market grows, entry-level prices of most brands are increasing while including  inclusive product descriptions with mentions of  slimming designing abilities having drastically decreased to inspire body confidence while retaining  shape and fit. Specialized niche design such as long-torso designs and special period and leak-proof swimsuits made from recycled fabrics with Modifier Swim Technology that is absorbent, stain and odor-resistant, is also making an all-new entry into the category.