Marking its foray into home textiles, fabric maker, Donear has announced an investment of Rs 400 crore in a carpets and rugs production unit in Jammu, reveals Rajendra Agarwal,Managing Director.

 The plant is expected to be operational within the next 24 months.  Approximately 90 per cent of the products manufactured in this facility will be exported, according to Agarwal. 

Donear debuted in the domestic market three years ago with the 'Neo Stretch' brand of fabric. Now, it plans to establish exclusive retail outlets dedicated to Neo Stretch products. Currently, Neo Stretch contributes to 10 per cent of Donear's domestic business. Additionally, Donear intends to inaugurate 50 to 100 multi-brand outlets showcasing its four national brands and eight sub-brands. The ambitious plan is to expand to 400 stores within three years.

With both the domestic and export textile markets expected to revive by July this year, Donear recently elevated its total spinleage to over 1 lakh. The company acquired two new spinning units. These units will help the company boost its revenues by Rs 400 crore, says Agarwal. 

Fast-fashion company founded in China, Shein, is poised to confront stricter regulations in the EU regarding online content, mirroring similar scrutiny faced by tech giant Meta Platforms. 

Under the new rules known as the Digital Services Act (DSA), companies with over 45 million users are categorised as very large online platforms (VLOPs) and are required to intensify efforts against illegal and harmful content, as well as counterfeit products, on their platforms.

Shein, which has been eyeing a US initial public offering, expanded its marketplace into the EU in August 2023. The company disclosed that from August 1, 2023, to January 31, 2024, it averaged 108 million monthly active users across EU member states, a figure that caught the attention of the European Commission.

The DSA, which became effective for all online platforms on Feb 17, encompasses sixteen tech firms, including Amazon.com, and three pornography sites. These companies are currently under the scrutiny of the bloc, which is seeking information regarding the measures taken to combat illegal content and goods sold online. Moreover, the EU is conducting investigations into social media company X and ByteDance's TikTok, with potential fines of up to 6 per cent of a company's global turnover for violations.

The tightening regulations may pose another challenge for Shein's IPO plans, particularly as the company seeks approval from Beijing for a public listing that is likely to face rigorous scrutiny from US regulators.

A renowned UK-based cosmetics company founded in 1976 by human rights activist and environmentalist Anita Roddick, The Body Shop is facing significant challenges. Recently, the company ceased operations in the United States and announced the impending closure of numerous stores across Canada due to bankruptcy proceedings.

In an official statement released earlier this month, The Body Shop declared the closure of its US subsidiary, effective March 1. Additionally, it disclosed plans to initiate liquidation sales at 33 out of its 105 Canadian stores immediately. Online sales through Canada's e-commerce platform will cease, although all Canadian locations will remain operational for the time being.

Celebrated for its commitment to natural, sustainable, ethical, and cruelty-free products, The Body Shop faced mounting challenges amid a shifting retail landscape and economic pressures. The rise in inflation in recent years particularly impacted the brick-and-mortar retailer, which primarily operated within malls and targeted middle-class consumers.

The Body Shop's ownership also changed multiple times over the years. The company was first acquired by cosmetics giant L'Oreal in 2006 for over $1billion. It was later sold to Brazilian company Natura in 2017 for a similar amount. 

Natura's 2023 report highlighted The Body Shop's declining fortunes, with a significant 13.5 per cent Y-o-Y decrease in 2022. The challenges of that year, compounded by the normalisation of consumer behavior post-pandemic, contributed to a drop in sales, especially through direct-to-consumer channels.

In a bid to address its financial woes, The Body Shop was sold to asset management group Aurelius in a deal worth approximately $266 million late last year.

Founded four decades ago in Barcelona, Spanish fashion retailer Mango plans to open over 500 new stores by 2026, mainly in the United States, the UK, and France — its second-largest market after Spain.

Following a slowdown prompted by the COVID-19 pandemic, the family-owned company unveiled several large-scale stores worldwide including a 400-sq-m (1,300-sq-ft) store in Los Angeles, a similar-sized establishment in Manchester, England, and a flagship store in Bengaluru, India. 

In the past year alone, Mango launched 115 stores, primarily in the United States, where its sales outlets have tripled, according to Cesar de Vincente, Global Director-Retail.

With stores spanning across 115 countries, Mango significantly expanded its presence, although it falls short of the nearly 6,000 stores worldwide owned by Inditex, the parent company of Zara, another Spanish clothing retail company.

This expansion drive propelled Mango's turnover, with expectations of it exceeding €3 billion ($3.3 billion) in 2023.

With roots tracing back to 1984, Mango opened its first shop on Barcelona's famed shopping street, Paseo de Gracia. Currently employing around 14,000 individuals, Mango aims to distinguish itself by elevating its position in the market. To enhance sales, Mango has enlisted high-profile ambassadors such as British model Kate Moss, Spanish actress Penelope Cruz, and French footballer Antoine Griezmann for its marketing campaigns.

One of Europe's leading fast fashion chains, Primark aims to source 100 per cent of its cotton from its sustainable cotton program, organic sources, or recycled materials by 2027. 

Additionally, the company has set a target to manufacture all its products from recycled fibers or sustainably sourced materials by 2030. Currently, nearly 40 per cent of Primark's clothing comprises recycled fibers or more sustainable materials.

Earlier, Primark had announced its commitment to train an additional 125,000 smallholder cotton farmers in India, Pakistan, and Bangladesh in sustainable farming methods by 2023-end. 

The company's sustainable cotton program educates farmers to use fewer chemical pesticides and fertilisers while conserving water resources. This initiative not only preserves biodiversity but also helps mitigate climate change impacts. Moreover, it reduces input costs for farmers, enhances yields, and boosts profits, according to Primark.

The recent show ‘The Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) 24’ sent a clear message: Vietnam's textile and apparel industry is a force to be reckoned with. The expo's success highlights a complex relationship between Vietnam and China, a story of competition and potential collaboration in the global market.

VIATT 2024: A Springboard for Vietnam

VIATT 2024 showcased Vietnam's growing capacity for mid-range apparel and value-added services, attracting new partnerships. Industry leaders believe the expo will strengthen regional collaboration within Southeast Asia, creating a more robust textile and apparel ecosystem. This new found confidence positions Vietnam as a key player, potentially influencing its future trade dynamics with China.

Data Table: Vietnam Textile & Apparel Exports (USD Billion)

Vietnam shares a symbiotic, yet competitive landscape with China

From China's perspective, Vietnam is both a competitor and a collaborator. Vietnam's garment exports have surged to $40 billion in 2023, fueled by rising labor costs and trade tensions faced by China. However, Vietnam still relies heavily on China for raw materials like fabric, thread, and zippers with only 30-40% sourced locally. This creates a complex interdependence.

Vietnam: Trade agreements with China & the USA

Both China and Vietnam are members of the ASEAN Free Trade Area (AFTA), promoting lower tariffs for regional trade. This facilitates the movement of textiles and garments between the two countries. Whereas, China recently implemented stricter quality control measures (Order No. 259) for imported textiles, potentially impacting Vietnamese exports in the short term.

The US trade war with China has fueled the "China+1" strategy, with American companies seeking to diversify their sourcing. Vietnam's lower labor costs and geographical proximity make it a prime candidate, benefiting its garment industry. However, Vietnam still faces stiff competition from China in the US market, especially for high-volume, low-cost production.

Looking Ahead: Collaboration or competition?

Both China and Vietnam are experiencing rising labor costs and are moving towards higher-value production and automation. This shift could create opportunities for collaboration in areas like technology and design. Meeting stricter sustainability standards set by the EU and US will be crucial for both countries to maintain competitiveness.

VIATT 2024 has highlighted Vietnam's ambitions in the textile and apparel industry. China will likely view this with a mix of caution and opportunity. While Vietnam's rise presents competition, collaboration in areas like raw material sourcing and technological advancements could be mutually beneficial. The future of China-Vietnam textile trade hinges on navigating this complex dynamic, with VIATT potentially serving as a springboard for a more balanced and collaborative relationship.

The fashion industry has long been synonymous with cheap, disposable clothing and a relentless pursuit of the latest trends. Social media influencers, showcasing their fast fashion "hauls," have propelled this culture of overconsumption. However, a counter-movement led by figures like climate activist Greta Thunberg has emerged, championing sustainability as a lifestyle choice. As consumer choices face increasing scrutiny, what we wear is deeply intertwined with our identities.

Environmental impact of textile production

Behind the allure of fast fashion lies a significant environmental cost. The energy-intensive processes and reliance on synthetic materials contribute to 10 per cent of global carbon emissions, surpassing even the aviation sector. Despite these alarming figures, there's a glimmer of hope as consumer sentiment shifts towards sustainability, with over 70 per cent expressing willingness to pay more for ethically produced goods.

The textile industry grapples with the challenge of meeting market demands while ethically sourcing environmentally friendly materials. The Asia-Pacific region dominates the ethical fashion market, reflecting a growing awareness and demand for sustainable practices. However, achieving this balance requires a holistic approach that considers both environmental and social impacts.

Materials matter: The role of MMCFs

A significant aspect of the industry's transition involves the adoption of sustainable materials, particularly Man-made cellulosic fibers (MMCFs) derived from plant-based sources. While these offer a greener alternative to synthetic fibers, challenges such as deforestation and ethical labor practices in their sourcing must be addressed. A comprehensive approach that encompasses the entire lifecycle of these fibers is essential for meaningful progress.

The Rana Plaza tragedy serves as a stark reminder of the human toll behind the fashion industry's relentless pursuit of profit. Exploitative labor practices, inadequate safety measures, and wage theft persist in many regions. Transparency emerges as a key solution, empowering consumers to make informed choices and holding brands accountable for their supply chain practices.

Toward a sustainable future: Accountability and transparency

Initiatives like Fashion Revolution and the Fashion Transparency Index aim to shed light on the systemic challenges within the industry. However, progress remains slow, with many brands failing to address labor and environmental concerns adequately. Independent certification schemes like PEFC offer promise in verifying sustainable sourcing practices, but their effectiveness in addressing social issues warrants further scrutiny.

While consumer demand for sustainable fashion grows, true transformation requires collaboration across the supply chain. Brands must move beyond superficial changes and actively engage with suppliers, communities, and NGOs to embed ethical practices. The challenge lies in ensuring that sustainability encompasses both material sourcing and labor standards, reflecting a genuine commitment to positive change.

As the ethical fashion segment continues to expand, the industry faces a critical juncture. Will brands rise to the challenge of aligning profit with purpose, or will superficial gestures overshadow genuine progress? The answer lies in a collective effort to prioritize sustainability, transparency, and ethical labor practices across the fashion ecosystem.

Denim Expert Ltd. emerges as a beacon of sustainability in the garment manufacturing sector, spearheading a transformative shift towards eco-conscious practices. Pioneering the charge towards zero impact, the company's unwavering commitment to environmental stewardship takes center stage with its pledge to achieve 100 per cent water recycling and eliminate the discharge of hazardous chemicals.

At the heart of this endeavor lies the unveiling of a cutting-edge effluent treatment plant (ETP), signaling a monumental leap in sustainable water management. This state-of-the-art facility underscores Denim Expert's relentless pursuit of reducing its ecological footprint and safeguarding local ecosystems through advanced water treatment technologies.

Mostafiz Uddin, Managing Director and CEO of Denim Expert Ltd., emphasizes the company's steadfast dedication to sustainable manufacturing practices. He champions the establishment of the new biological ETP as a testament to Denim Expert's commitment to upholding values that foster a healthier planet for generations to come.

Denim Expert's proactive stance on sustainability has earned global recognition, with accolades including being named a 'New Champion' by the World Economic Forum and partnerships with esteemed organizations such as the Sustainable Apparel Coalition, UNFCCC, and the Ellen MacArthur Foundation's Jeans Redesign program. 

The company's initiatives, including joining the Partnership for Cleaner Textile and implementing the 3E program, underscore its resolve to achieve 100 per cent water reuse and reliance on solar energy, cementing its position as a harbinger of positive environmental change.

Under Uddin's leadership, Denim Expert's sustainability initiatives have garnered prestigious awards, including the 'Sustainable Fashion Champion' at the Drapers Sustainable Fashion Awards 2021 and Uddin's recognition as a 'Sustainability Thought Leader' in the Vogue Business 100 Innovators list for 2023. These accolades underscore Denim Expert's role in leading the fashion industry towards a more sustainable future.

Beyond its environmental endeavors, Denim Expert champions corporate social responsibility by employing marginalized individuals and advocating for higher education for female employees. The company's support for worker welfare associations further highlights its commitment to social inclusivity and welfare.

In essence, Denim Expert Ltd.'s proactive approach to safety, sustainability, and responsible business practices positions it as a catalyst for positive change. With an unwavering commitment to continuous improvement, Denim Expert leads the charge towards a brighter, more sustainable future in the garment manufacturing industry.

The Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement, has shown promising results for Cambodia in its first year. Its total trade with RCEP members reached nearly $30 billion, with exports growing by 28 per cent and imports falling by 13 per cent. However, the story is not without its nuances, and challenges remain for the future.

Cambodia emerges biggest gainer 

RCEP has facilitated increased regional trade. Overall trade between Cambodia and other RCEP members reached nearly $30 billion in 2023, a positive sign for regional integration. Tariff reductions have benefited specific countries. Cambodia's exports to several RCEP members, like Indonesia, grew due to lowered tariffs. Indonesia emerged as the biggest gainer, becoming Cambodia's 6th largest trading partner with a 15 per cent trade volume increase. While imports also grew initially, they stabilized in 2023, potentially suggesting a shift towards higher value-added exports 

Concerns about gains

Even though RCEP promises tariff free trade among members, there are several concerns about its outcome. Viz.

Unequal benefits: Concerns exist regarding potential uneven distribution of benefits among member countries, with larger economies potentially dominating trade.

Competition: Increased regional competition within the textile and apparel sector could pressure smaller players like Cambodia to further enhance competitiveness.

Non-Tariff barriers: Simplifying non-tariff barriers remains crucial to fully unlock RCEP's potential. Concerns remain regarding non-tariff barriers. Complex customs procedures and regulations continue to hinder smooth trade flow in some regions. Some RCEP members saw declining exports from Cambodia, highlighting the need for diversification and value chain integration.

Road ahead

The RCEP is expected to further boost Cambodia's trade and economic growth. Diversifying exports beyond textiles and apparel remains crucial for long-term sustainability. Cambodia must address infrastructure gaps, improve logistics, and enhance competitiveness to fully capitalize on RCEP benefits. To move ahead, it’s important to eliminate trade barriers and foster regional cooperation to create a robust, integrated market. Streamline regulations, invest in infrastructure, and promote innovation for success. Moreover, countries need to look beyond traditional garment production and explore opportunities in higher-value segments like technical textiles and eco-friendly apparel.

Renowned for its pioneering digital textile dyeing solutions, Alchemie Technology will unveil the first-ever in-market demonstration of its innovative Endeavor digital textile dyeing process at Nantou, Taiwan, from April 10-12, 2024.

This exclusive event will offer attendees a unique opportunity to witness the Endeavor digital dyeing solutions in action, focusing specifically on polyester woven fabrics. Alchemie Endeavor represents a groundbreaking digital dyeing technology that empowers fashion apparel brands and dyehouses to drastically reduce their carbon and chemical footprint, while simultaneously achieving substantial operational cost reductions of up to 50 per cent.

The innovative solution by Alchemie dramatically cuts down energy and CO2 emissions by up to 85 per cent, facilitates chemistry savings of up to 30 per cent, and slashes water usage by up to 95 per cent, effectively eliminating wastewater pollution associated with traditional dyeing methods.

Alchemie Technology will also organise a demonstration of its newly launched breakthrough Discovery lab system at the event. The Discovery system serves as a cost-effective research tool designed to offer a comprehensive understanding of Alchemie’s digital dyeing technology. It replicates the production process of Endeavour and eliminates the need for traditional lab dip processes.

Furthermore, Alchemie will unveil its ambitious plans for 2024, showcasing a wide array of applications and fabrics that push the boundaries of innovation in the textile industry.

Dr. Alan Hudd, Founder and CEO emphasises the company's commitment to bringing about positive change by addressing climate change through clean-tech technology. He highlights the urgency for brands and governments to realise the importance of achieving Environmental, Social, and Governance (ESG) targets and to actively participate in this endeavor.