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The Confederation of Indian Textile Industry (CITI) has applaudedPrime Minister NarendraModifor being re-elected for the third consecutive time and also implementing beneficial schemes and policies for the textile sector.
In its last two terms, the government has introduced several beneficial schemes like the Production Linked Incentive (PLI) scheme for textiles, the National Technical Textiles Mission, and also reinforced ongoing support for MSMEs toboost the industry’s growth, says RakeshMehra, Chairman, CITI
CITI also reinforced its commitment to support the government in its efforts to transform India into a global textiles and apparel hub. The organisation will work closely with government in foster innovation, sustainability and competitiveness within the textile sector, adds Mehra.
The organisation’s robust partnership with the government will help address challenges being faced by the industry, such as raw material security, etc, and achieve sustainable growth, he adds further.
Premium lifestyle brand Napapijri has launched a new collection of sustainable summer essentials manufactured using Good Earth Cotton, a production system known for net zero emissions.
Available online and in select stores from June 06, 2024, the collection comprises premium knitwear such as T-shirts, polos,etc for men, women and kids.
Powered by FibreTrace® technology, the Napapijri Good Earth Cotton range allows consumers to experience supply chain sustainability and integrity firsthand. They can trace the garment’s journey form soil to store by simply scanning a QR code, saysDani Statham, Founder, Good Earth Cotton.
Each product in Napapijri’s Good Earth Cotton range comes with a QR code on the label that can be scanned to display the products supply chain journey from fiber to store. The FibreTracetechnology enables the brand to validate the data of the raw cotton fiber and sustainability improvements through the supply chain.
The partnership between Napapijri and Good Earth Cotton highlights the brand’s aim to source 100 percent of its materials from regenerative, responsibly sourced, renewable or recycled sources by 2030. The product and design teams of the two companies work together to explore new possibilities in the textile industry, adds Silvia Onofri, President, Napapijri.
The Australian-grown Good Earth Cotton program focuses on regenerative farming that improves soil health, enhances biodiversity and sequesters carbon ensuring that it not only has a neutral impact on the environment but net positive one.
Fostering a regenerative approach for a positive impact on the earth, the Good Earth Cotton program uses the FibreTrace technology to verify fiber integrity.The fiber is verified using a unique signature created by inserting luminescent pigments into the raw cotton.
Berlin Fashion Week (BFW) and Copenhagen Fashion Week (CPHFW) have forged an innovative partnership, marking a pivotal moment in the industry's shift towards sustainability. The newly announced alliance sees BFW adopting CPHFW's Sustainability Requirements framework, a move set to revolutionize the fashion landscape.
Originally introduced by CPHFW in collaboration with Knowledge Partners InFuturum and Dansk Fashion & Textile in January 2020, the Sustainability Requirements have since evolved to reflect the latest industry trends and EU policies. Now, BFW is embracing these standards as a mandatory criterion for brands participating in its shows.
Supported by the Berlin Senate Department for Economic Affairs, Energy, and Public Enterprises, this initiative underscores Berlin's commitment to becoming a global leader in responsible fashion. With an investment of €180,000 until 2025, Berlin aims to integrate sustainable practices like upcycling and the use of recycled materials into its fashion ecosystem.
Scott Lipinski, CEO of Fashion Council Germany, lauded the partnership as a catalyst for innovation, emphasizing the importance of meeting society's evolving expectations. CecilieThorsmark, CEO of Copenhagen Fashion Week, echoed this sentiment, highlighting the global impact of the Sustainability Requirements.
Approximately 35 brands participating in BFW's official show schedule will undergo a phase of onboarding and piloting before the Sustainability Requirements take full effect by February 2026. This collaboration between BFW and CPHFW sets a new standard for the fashion industry, driving meaningful change towards a more sustainable future.
Shenzhen, China's tech powerhouse, also holds a leading position in the China's apparel and textile industry. For decades, Shenzhen has been a manufacturing hub, churning out garments and textiles that feed global markets. Its strength lies in its well-established supply chain, with everything from fabric mills to dye houses and garment factories readily available. This concentration allows for fast turnaround times and efficient production. The sheer volume of business is staggering.
A production powerhouse
The modern fashion industry in Shenzhen boasts a market size of nearly 1 trillion yuan ($140 billion) with over 2,500 clothing companies operating in the city alone. Shenzhen contributes a whopping 10% of China's total garment industry output. The city is known for its dominance in the high-end market, with a 60% share.
Shifting Gears: Design and innovation
However, Shenzhen’s role in fashion is undergoing a significant shift and is transforming itself. Recognizing the industry's shift towards higher-value products, the city is strategically moving up the fashion value chain. There's a growing focus on design and innovation. This is evident in the rise of homegrown fashion brands like Ellassay and Marisfrolg, targeting the high-end womenswear market. The city is also nurturing a design ecosystem, with events like Shenzhen Fashion Week showcasing local talent.
The "Shenzhen Fashion Industry Development Plan" positions fashion as a key industry cluster, fostering domestic brands and design talent, establishing as why Shenzhen will emerge as China's fashion capital. This focus on design is evident in the city's growing number of fashion brands, many catering to the high-end market. Shenzhen boasts a 60% share of China's high-end garment market, showcasing its ability to produce luxury items with a production value exceeding 270 billion yuan annually.
This transformation reflects a broader trend in the Chinese apparel industry. As consumers become more sophisticated, the demand for high-quality, and original design is rising. Shenzhen is well-positioned to meet this demand by leveraging its existing manufacturing base and fostering a vibrant design scene.
Intertextile Shenzhen: A catalyst for change
Events like the Intertextile Shenzhen Apparel Fabrics trade fair play a crucial role in bringing about this change and attracting global attention to the city's fashion scene. The 2024 edition concluded recently after a successful three-day run at the Shenzhen Convention & Exhibition Center in Futian. The event, which took place from June 5th to 7th, served as a central hub for the Chinese textile industry, attracting around 900 exhibitors, a high number of visitors, including international trade visitors from many countries. The fair isn't just about showcasing products; it fosters collaboration and knowledge sharing.
The future of fashion in Shenzhen
While Shenzhen's manufacturing prowess remains undeniable, the future lies in marrying production efficiency with design innovation. The city is actively nurturing a creative ecosystem, attracting designers and fostering collaboration between design houses and factories. This focus on both fashion and technology positions Shenzhen to become a true trendsetter in the global apparel industry.
The ITM 2024 International Textile Machinery Exhibition concluded successfully, reaffirming its status as a vital event for textile technology leaders.
Held at Tuyap Fair and Congress Center from June 4-8, 2024, the exhibition was organized by Tuyap Tum FuarcılıkYapım Inc. and Teknik Fairs Inc., in collaboration with the Textile Machinery and Accessories Industrialists Association (TEMSAD).
Spanning 120,000 square meters across 13 halls, the event set new records with participation from 1,385 companies and representatives from 71 countries.
The exhibition drew 66,200 professional visitors from 99 countries, with a mix of 45 per cent international and 55 per cent domestic attendees. The event's success was marked by significant machinery sales and a business volume reaching billions of euros over the five-day period.
The ease of transportation to Istanbul and visa liberalization contributed to the diverse international attendance. Visitors came from a wide array of countries including Afghanistan, Australia, Brazil, China, Germany, India, Japan, Mexico, Russia, and the United States.
This global turnout underscored the event’s importance as a hub for innovation and business in the textile industry, injecting much-needed vitality into the sector post-pandemic.
Pakistan's exports of cotton yarn to China rose by 65.85 per centto over $166.37 million in Q1, FY24.
Data from the General Administration of Customs of the People's Republic of China (GACC) shows, in Q1, FY24, China’s imports of uncombed single cotton yarn, of which over 85per cent came from Pakistan, increased to over $99.12 million from $72.70 million in the corresponding period of the previous year.
Furthermore, China’s imports of cotton yarn increased to over $65.78 million compared to $26.28 million during the same period last year.
SajjadMazahir, General Manager-China, Keywin Trading, opines, China's growing demand for Pakistan's cotton textiles can be attributed to the industry's ability to balance both exports and local downstream orders.
Cotton holds significant importance as a cash crop in Pakistan, with the country ranking among the top cotton-producing nations globally. Pakistan is now a key supplier of Griege fabric, cotton, and cotton yarns, prized for their competitive pricing and high quality. However, there is still scope for Pakistan to diversify its textile exports.
In recent years, Pakistan's textile products have gained importance not only in international exports but also in China's domestic market. Despite challenges such as the high cost of power and sluggish global demand, the Chinese market offerssufficient opportunities for Pakistani exporters.
Emphasising on the importance of diversification, Mazahirurged Pakistan to focus on providing finished products to the local Chinese market and leverage the advantages of the Pakistan-China Free Trade Agreement (FTA). While many products are covered under the zero-duty structure, some, such as home textiles, towels, and apparel, still face challenges in gaining significant volume in the Chinese markets.
Backed by the US-headquartered global investment firm Platinum Equity, intimate apparel designer and manufacturer,Hop Lun has finalised the acquisition of Hong Kong-based PH Garment. This transaction represents Hop Lun's second add-on acquisition in the last six months, following the acquisition of Rainbow West Apparel in December 2023.
Jacob Kotzubei, Co-President and Matthew Louie, Managing Director, Platinum Equity reiterated the company's commitment to expand and diversify Hop Lun's capabilities, enhance its scale, and deliver added value to its customers.
A specialist in private label manufacturing of bras, shapewear, and active wear, PH Garment has three manufacturing facilities located in Bangladesh and China.
Established in 1992, Hong Kong-headquartered Hop Lun boasts a workforce of over 28,000 employees spread across its operations in Bangladesh, Indonesia, China, and Hong Kong.
In a united front against the proposed tax changes in the upcoming 2024-25 budget, value-added textile exporters have vehemently rejected the introduction of a minimum tax regime that includes extensive scrutiny. They argue that this move would replace the existing Final Tax Regime (FTR) and create unnecessary complications, potentially increasing the risk of corruption.
At a press conference held at the PHMA House, representatives of the Value-Added Textile Exporters Forum voiced their concerns. Muhammad Jawed Bilwani, Chief Coordinator of the Value-Added Textile Associations Forum, stated, this proposed shift will lead to unnecessary hassle and involve Federal Board of Revenue (FBR) officials, which may increase the risk of corruption.
Currently, under the FTR, a 1 percent tax is deducted electronically from export remittances, with no human intervention. Bilwani explained, from the next fiscal year, it has been proposed that this 1 percent should be treated as a minimum tax, requiring exporters to submit documents justifying their income and expenditures.”
Bilwaniemphasised that the FTR allows income tax to be deducted directly at the source when remittances are received, regardless of profit or loss. He highlighted the issue of corruption within the FBR, referencing the recent ‘speed-money case’ in LTU Lahore where FBR officials were implicated in corrupt practices.
The textile exporters urged the government to maintain the current Final Tax Regime without changes. They also requested a reduction in the income tax rate from 1 percent to 0.5 per cent. Bilwani noted, exporters file their Sales Tax Refunds electronically through the FASTER system, which ensures no human intervention and efficient claim processing and disbursement.
The exporters warned that the proposed changes would be counterproductive, potentially leading to a significant reduction in Pakistan’s export revenue and foreign exchange earnings. They cautioned,if these changes go through, Pakistan could lose out to countries like India, Bangladesh, Cambodia, and Vietnam.”
Moreover, they criticised the lack of consultation by the Finance Minister, Chairman FBR, and Commerce Minister with the Textile Export Associations regarding the Federal Budget 2024-2025. Despite forming 14 Tax Reform Commissions over the years, effective restructuring and reforms have not been achieved, they noted.
The export industry is already burdened with multiple taxes from federal, provincial, and local governments, as well as other surcharges and levies. Bilwani urged,the industry needsto bring back policy discount rates back to single digits and return Export Finance Scheme (EFS) rates to previous levels. Additionally, the industry needs to allowexporters back-to-back Letters of Credit (LC) on a model similar to Bangladesh.
The press conference was attended by key industry figures including Abdul JabbarGajiani, Chairman PHMA (SZ), Sheikh Shafiq, Chief Coordinator, PRGMEA, and other notable representatives from various textile associations. The Value-Added Textile Associations encompass major groups such as the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Pakistan Readymade Garment Manufacturers & Exporters Association (PRGMEA), and several others.
China's deepening economic ties with Pakistan are sending ripples through the South Asian textile industry, particularly impacting India, a long-standing competitor in the global market.
Collaboration that fosters growth
As per WTO, China is the world's largest textile and apparel exporter, accounting for over 33 per cent of global textile exports in 2022. India meanwhile is the second-largest exporter, holding a 13 per cent share. Though smaller, Pakistan holds a significant 4 per cent share in global textile exports. : As per Pakistan Bureau of Statistics the country’s textile exports have been steadily increasing, reaching $35 billion in 2023. This growth is partly due to the China-Pakistan Economic Corridor (CPEC) initiative, which has seen significant Chinese investments in Pakistani infrastructure and textile production facilities. As per CPEC Authority, China has invested over $25 billion in Pakistan's textile sector since 2015. This investment is expected to create numerous textile zones and modernize Pakistan's textile infrastructure.
Indeed, China's strategic investment in Pakistan's textile sector, through the China-Pakistan Economic Corridor (CPEC) initiative, is fostering closer collaboration. Existing FTAs between China and Pakistan allow duty-free movement of raw materials and finished goods, making Pakistan a competitive production hub for Chinese companies. Also, CPEC projects are improving transportation and logistics networks within Pakistan, facilitating faster movement of textiles between China and global markets.
Sector-wise scrutiny
Fiber: India enjoys a natural advantage in cotton production, a key textile fiber. However, China's dominance in synthetic fibers like polyester could pose a threat if Pakistan leverages Chinese technology and lower production costs. Pakistan signed a $1.5 billion deal with China in 2023 to import high-yielding cotton seeds, potentially reducing reliance on Indian cotton. The Spinners' Association of India (SAI) has expressed concerns about rising yarn imports from China into Pakistan, which could be re-exported to other markets at lower prices. India however, can focus on specialty fibers like organic cotton or high-performance fibers to cater to niche markets.
Yarns: Both India and China are major yarn producers. Increased competition from China-Pakistan collaboration could put pressure on Indian yarn exports, particularly in low-cost segments.
Fabrics: Here, the story is nuanced. India has a strong reputation for high-quality fabrics like silk and cotton. China excels in mass-produced, cheaper fabrics. Pakistan can potentially bridge the gap, offering a mix of quality and affordability. This could create a three-way competition, potentially benefiting consumers. However, India's strength lies in diverse fabric production. Focusing on traditional textiles and value-added fabrics can create a unique market position.
Apparel: China is a powerhouse in ready-made garments. While Pakistan has growing apparel industry, India boasts a strong domestic market and established brands. The impact on India's apparel exports hinges on Pakistan's ability to scale and cater to international markets. Joint ventures between Chinese and Pakistani apparel companies could lead to increased competition for Indian garment exporters, especially in low-cost segments. In Tirupur, the knitwear hub for example, while some fear job losses due to rising competition, others see it as an opportunity to innovate and focus on high-value knitwear segments. In Surat, the MMF hub of India, the industry acknowledges the challenge but emphasizes the need for skill development and technological advancements to stay competitive.
Indeed, China's growing presence in Pakistan's textile sector presents both challenges and opportunities for India. While competition might intensify in certain segments, India can leverage its strengths in diverse fabric production, skilled labor, and a large domestic market to carve a niche in the global textile landscape. Investing in research & development, technological advancements, and brand building will be crucial for India's textile industry to thrive in the face of this evolving dynamic.
Diesel is revamping its image of sustainability with a five-part documentary series titled ‘Behind the Denim’. The fashion brand, known for its bold and irreverent style, recognizes that conversations about sustainability can often feel bland. Their solution: a fun and informative approach that stays true to Diesel's DNA.
"We wanted to say something in Diesel style, still rigorous but avoid being tedious," explains Andrea Rosso, Diesel's sustainability ambassador and son of the brand's founder Renzo Rosso. Each episode of ‘Behind the Denim’ dives into a different aspect of Diesel's denim production process, following the journey from cotton fields to factory floors and ultimately, to customer closets. The focus: highlighting Diesel's commitment to creating lower-impact denim.
An indepth look with a light touch
Hosted by Lea Ogunlami of I-D magazine, each episode tackles a core principle of Diesel's denim production. With titles like ‘All Aboard and ‘Waste to Treasure’, the series promises a comprehensive look without shying away from tough questions. Ogunlami will ask about the true meaning of ‘circularity’ in fashion and explore Diesel's use of recycled materials in its ‘Rehab Denim’ line.
The lighthearted and informative approach extends to interviews with key figures at Diesel. Glenn Martens, Andrea Rosso (Diesel's sustainability ambassador and son of the founder), and Sara Betteghella (OTB Group chief sustainability officer) all feature in the series.
Transparency and a commitment to progress
Diesel is aware that sustainability requires constant effort. The brand acknowledges it's not perfect and is still working on areas like complete supply chain certification, a notoriously complex and expensive endeavor.
However, Diesel is taking concrete steps. They've joined initiatives like the Aura Blockchain Consortium and the Fashion Pact to promote transparency and responsible practices across the fashion industry. They've also significantly reduced water and chemical use in their denim production processes.
Sustainability as a journey, not a destination
Diesel emphasizes sustainability is a journey, not a destination. The brand highlights its use of organic and recycled cotton, reaching 50 per cent of its denim collection made with these lower-impact materials. They are committed to finding new, innovative solutions while acknowledging the need for balance with creativity in fashion design.
‘Behind the Denim’ launched on Diesel's social media channels and online platform in April 2024. New episodes will be released monthly until November, with a break in July and August. This fresh take on sustainability education has Diesel hoping to raise awareness and inspire positive change within the fashion industry.
