India's commerce ministry's DGTR has started an investigation to review the necessity of continuing the anti-dumping duty on flex commonly known as linen yarn imported from China.

The probe comes following complaints from the domestic industry, and an application for initiation of the sunset review of the anti-dumping duty by Grasim Industries Ltd and Sintex Industries.

Linen yarn is used to make linen fabrics, which is used in apparel and home textiles. The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers regarding foreign producers and exporters.

According to the notification by DGTR, there is prima facie evidence of dumping of the product from China, despite the existing anti-dumping duties. As a result, DGTR would review the need to continue the duties and examine whether the expiry of existing duties is likely to lead to continuation or recurrence of dumping and impact the domestic industry.

The existing duties are set to expire on October 17, 2023. It is important to note that the lea count, which is a unit for measuring the length of yarn, is below 70 for the flax yarn imported from China.

This investigation will determine whether the anti-dumping duty on flax yarn should continue to be imposed on imports from China and will ensure fair trade practices between the two countries.

Sleepwear and loungewear market projected to grow at a CAGR of 10.21% and reach USD 29,398.4 million by 2027, according to a report by Technavio.

One of the key drivers of market growth is the introduction of products with advanced features and innovative designs. Rising disposable income has increased consumers' purchasing power and positively influenced their spending on premium sleepwear and loungewear.

The market is also witnessing a growing trend towards plus-size sleepwear and loungewear, designed to cater to the fashion preferences of women with larger body sizes.

However, the market faces challenges due to the presence of counterfeit products that hamper the market growth. The low price of counterfeit products increases their demand, and their availability adversely affects the sales and pricing strategies of vendors, leading to reduced profit margins. To overcome this challenge, vendors are compelled to price their products low, which affects their value sales in the market.

Bangladesh and Vietnam celebrated the 50-year anniversary of their diplomatic relations by establishing the Bangladesh-Vietnam Friendship Society. The two countries have enjoyed friendly relations since 1973, with bilateral trade projected to reach $2 billion by 2023.

The garment and textile industry plays a vital role in both countries' economies. Bangladesh is the world's second-largest garment exporter, accounting for over 80% of the country's total exports. Vietnam, on the other hand, is the world's third-largest textile and garment exporter, contributing 15% to the country's GDP.

The United States and the European Union are the largest importers of garments from both Bangladesh and Vietnam. In 2020, the US imported $5.82 billion worth of garments from Bangladesh, while Vietnam's garment exports to the US amounted to $13.8 billion.

Vietnam has shown resilience post-pandemic and benefited from the US-China trade war over Asia, giving it a potential opportunity to access South Asia through Bangladesh if the two countries develop closer ties. Although Bangladesh and Vietnam are seen as competitors in the global apparel market, both countries can share knowledge and information to enhance growth in the market.

Although the bilateral trade is on the rise, Bangladesh is running a trade deficit with Vietnam since as it imports $678.6 million worth of goods from Vietnam where it’s export’s to the country amount to only $61.29 million. Bangladesh has also struggled to attract significant investment from the country, with Vietnam only investing in one project in Bangladesh worth $27,900.

To attract Vietnamese investment, Bangladesh might provide easier ways to invest in its economic zones related to technology or tourism, where it may give country-specific services to Vietnam. Bangladesh already has a low minimum salary of US$ 95, making it a desirable location for Vietnamese investors to transfer their operations.

Closer ties between the two countries are expected to further enhance cooperation in various sectors, including the garment and textile industry, as well as emerging sectors such as ICT, agriculture, and tourism. Both countries recognize the value of cooperation and have contributed to each other's foreign investment.

Vietnamese garment companies should focus on niche markets rather than compete directly with foreign companies, according to the Vietnam National Textile and Garment Group (Vinatex).

Vietnam's domestic market is a potential growth area for its garment industry, with a population of over 100 million people. However, local companies have faced challenges in recent years due to declining demand and limited new store openings. In contrast, foreign companies investing in Vietnam often view losses in the domestic market as a strategic investment to expand globally and reap profits in other markets.

To compete with foreign brands, the Vietnam National Textile and Garment Group (Vinatex) suggests that local companies focus on niche markets rather than trying to directly compete. This means relying on internal analysis and doing business in a way that enables them to conquer niche markets that big foreign fashion brands cannot enter. Additionally, Vietnamese companies can fulfill small orders, which are becoming increasingly popular, by creating a variety of products using difficult production techniques.

In recent years, the Vietnamese garment industry has made significant strides in terms of productivity, technology adoption, and labor skills development. This progress has been driven by the government's efforts to support the industry and the increasing demand for textile and garment products in the global market.

Despite the challenges, Vietnam's garment industry remains an important contributor to the country's economy, providing jobs for millions of workers and generating significant export revenues. The industry has the potential to continue to grow and develop by leveraging its strengths, focusing on niche markets, and adopting innovative approaches to production and marketing.

With growing population and a an expanding middle classes, BRICS countries (Brazil, Russia, India, China, and South Africa) are becoming increasingly important markets for global textile sector and fashion brands. As per a predicts a McKinsey & Company report, the textile and fashion industry in BRICS countries is expected to grow at a compound annual rate of 6 to 7 per cent between 2019 and 2025.

BRICS a fast growing fashion market

In recent years, the BRICS countries have emerged as major players in the global fashion, apparel, and textile industry. China has long been a dominant stakeholder in the industry as the world's largest producer and exporter of textiles and apparel. However, other BRICS countries have also made significant strides in the business of fashion. India has emerged as a major hub for textile manufacturing and is home to several leading fashion brands, while Brazil has a thriving fashion scene and a growing number of textile companies. Russia is seeing a rise in luxury fashion brands and South Africa is becoming a key player in the African fashion market.

China produced over 30 billion pieces of clothing in 2019 and accounting for 35 per cent of global apparel exports. India is the world's second-largest producer of textiles and with leading fashion brands. Brazil's fashion industry is expected to grow by 3.5 per cent annually, while Russia's luxury fashion market is projected to grow at a 8 per cent per year.

Key growth drivers

Growth in BRICS fashion industry is being driven by the expanding middle class in these countries, which has more disposable income to spend on fashion and apparel. Increasing popularity of online shopping is also a significant factor, making it easier for fashion brands to reach consumers. The e-commerce market for fashion and apparel is also projected to grow, with the Indian e-commerce market estimated to reach $200 billion by 2026 and China's online fashion market expected to touch $287 billion by 2024.

Growth challenges

However, despite growth there are numerous challenges that need to be addressed. And foremost among them are sustainablity and ethical practices. Many BRICS textile manufacturers have been accused of using unsustainable production methods and exploiting workers, putting pressure on fashion brands and textile manufacturers to adopt more sustainable and ethical practices.

The industry also faces other challenges, including environmental impact and labor exploitation. Meanwhile several initiatives have also been launched, such as India's Sustainable Alternative Towards Affordable Transportation (SATAT) program and China's program to promote sustainable cotton production, to address these issues.

The pandemic has also shifted global economic power dynamics in favor of developing countries, with the BRICS nations contributing more towards global GDP in terms of purchasing power parity than the G7 industrialized nations.

The sustainable fashion market in India is expected to grow at a CAGR of 10.6% during 2021-2026 and is estimated to reach $9 billion by 2025, presenting a significant opportunity for growth and expansion, according to a report by ResearchAndMarkets.com.

The trend towards sustainable fashion in India has gained significant momentum, propelled by consumer awareness, government policies, and the availability of sustainable materials. Furthermore, sustainable fashion startups are emerging, utilizing innovative technologies and eco-friendly materials to develop unique products.

With India's large population and rich textile heritage, the potential for the sustainable fashion market in the country is immense. The use of traditional handicrafts, weaving techniques, and textiles to create sustainable fashion products caters to both local and global consumers, making the market highly promising.

However, the sustainable fashion market in India faces several challenges, such as a lack of infrastructure, fragmented supply chains, and limited market penetration. To overcome these obstacles, the government and stakeholders must invest in sustainable infrastructure, technology, and supply chains, and develop improved marketing strategies.

Influential Indian celebrities and influencers are also playing a vital role in promoting sustainable fashion and increasing consumer awareness, transforming the perception of sustainable fashion in India. The sustainable fashion market in India can continue to grow and promote sustainability and social responsibility in the fashion industry.

Hermes International, a French luxury fashion group, is now second top ranking fashion company with a market value of over $218 billion and has become the eighth-most valuable company on the pan-European Stoxx 600 index.

The company, second only to another French company LVMH Moet Hennessy Louis Vuitton valued higher, has outperformed other luxury goods brands. The catalyst for the company's recent success has been China, with demand re-emerging as Covid-19 restrictions in some cities lifted last summer. The return of free-spending American tourists to Europe has also driven sales in key luxury markets such as France, Italy, and the UK.

The company, famous for its silk scarves and the iconic Birkin bag, is increasingly confident in withstanding economic downturns, with China's post-Covid recovery and reopening seeing a bounce back in demand for high-end fashion and accessories in Asia. Demand for Hermes handbags has exceeded production capacity, with some airport stores only displaying the bags due to their unavailability, despite starting prices of $10,000 and upwards for the most popular models.

Hermes will open a new leather manufacturing plant in Louviers, Normandy, tomorrow, with plans to boost output.

India is expected to be the fastest-growing retail market this year, with retail sales increasing by 11.0% to $1.386 trillion. A swift growth in luxury spending, from less than €8 billion in 2022 to between €25 billion and €30 billion by 2030 is being fuelled by India's growing millionaire class and a rising upper-middle-class, according to Bain & Company.

As sales slow in the US and China faces an uncertain path to recovery, international brands and retailers are turning to India for growth. The opportunity has attracted a wide range of international brands, all looking to expand their footprint in the country. For some brands setting up shop in India could help offset declining revenues in other markets.

However, brands and retailers must tailor their approach to the preferences and expectations of local shoppers, such as optimizing for mobile commerce, which accounts for 82.1% of India's ecommerce sales.

With India's growing population of affluent consumers, brands and retailers view it as a key area of investment, especially as growth in other parts of the world slows.

Levi Strauss, the global denim major is bracing itself for a tough year as it faces increased costs and bloated inventories, resulting in a predicted crunch on margins. Despite surpassing quarterly result expectations, the company has been unable to protect its margins.

Levi's full-year gross margin is expected to decrease by approximately 50 basis points from the previous year's 57.5%. This is a significant change from its previous prediction of a 20 to 30 basis point expansion. Despite implementing multiple price hikes, the company has been unable to protect its margins from the escalation of costs for freight, labor, cotton, and supply chain disruptions.

Moreover, bloated inventories have forced the company to increase discounts and promotions to clear products, leading to further pressure on margins. Deliberate actions taken by brand to reduce inventories in the U.S. had coupled with a more promotional environment, resulting in greater-than-expected pressure on gross margin. However, the company still had to struggle to attract cost-conscious shoppers despite these promotions.

Levi reported an adjusted profit of 34 cents per share on revenue of $1.69 billion, which exceeded estimates. Nevertheless, the company's cautious outlook for the future has left analysts feeling uncertain.

Myanmar's garment industry has been plagued by multiple crises, from the COVID-19 pandemic to the 2021 military coup, leading to widespread exploitation and abuse of workers.

The industry was once a thriving export sector, generating $6.7 billion, but since the coup, it has seen a 25% decrease in the labor force. The situation has been exacerbated by the prevalence of "nameless factories" that operate as unlicensed workshops, where workers are more vulnerable and struggle to identify their employers when making complaints.

However, the exploitation and abuse in Myanmar's garment industry go beyond the lack of regulations and legal protections for workers. Human rights organizations have reported cases of forced labor and child labor in the industry, especially in remote areas where factories operate with little scrutiny. Workers often receive meager wages and work in hazardous and unhealthy conditions, with minimal access to healthcare or other benefits.

The COVID-19 pandemic has further worsened the situation, with factories suspending or terminating workers' contracts without proper compensation, and travel restrictions making it difficult for workers to return home or access medical care if needed. On top of these challenges, the 2021 military coup has brought increased harassment, intimidation, and violence, with some workers coerced into participating in protests or threatened with losing their jobs if they refuse to do so.

Despite these challenges, there are initiatives underway to improve the situation for workers in Myanmar's garment industry. International organizations are partnering with local groups to promote labor rights and better working conditions in factories, while others are advocating for greater accountability and transparency in the supply chain. Nevertheless, there is still a long way to go to ensure that the workers in Myanmar's garment industry receive fair treatment, decent wages, and safe working conditions.