The apparel and textile MSME sector plays a crucial role in India's economy, contributing significantly to employment and exports. The industry is projected to grow at a 10 per cent CAGR, reaching $350 billion by 2030, with exports estimated at $100 billion. However, rising competition, fast-fashion demands, and logistics costs are major challenges.

A survey by Borzo, a global same-day delivery company, across 15+ cities, highlights key industry trends. It found that 78.5 per cent of MSMEs sell apparel, 31 per cent focus on fabrics, and 7 per cent on home textiles. Logistics issues affect 40.5 per cent of businesses, while 32.5 per cent struggle with fast-fashion trends. Skilled labor shortages impact 30.5 per cent, and 23 per cent face rising operational costs.

Most MSMEs (70.5 per cent) operate on a B2C model, while 19.5 per cent balance B2C and B2B. The festive season boosts sales, with 36 per cent reporting a 20-30 per cent rise in orders and 24 per cent seeing over a 50 per cent increase. Logistics remains a critical concern, with 63.5 per cent citing high delivery costs as the biggest challenge, followed by delays (49 per cent) and limited delivery options (20 per cent). Same-day delivery is essential for 81 per cent of businesses, and 58 per cent prefer a 30-60-minute delivery window.

Sustainable packaging adoption is growing, with 70 per cent of MSMEs using eco-friendly materials. However, high costs remain a concern, driven by expensive raw materials (47 per cent) and processing costs (19 per cent). Looking ahead, 59.5 per cent expect sustainable fashion costs to decline, while 40.5 per cent are less optimistic.

Alina Kisina, CEO of Borzo, emphasized the need for improved logistics, cost efficiency, and sustainability to maintain competitiveness. The survey underscores the urgency for MSMEs to adapt swiftly to evolving market demands.