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Valued at $2 billion in 2022, the global athleisure market is projected to grow at a CAGR of 5.2 per cent to reach $3.2 billion by 2032.
As per a report titled, ‘Athlesiure Market,’ by Allied Market Research, the female segment dominated the global athlesiure market in 2023 with their frequent purchases and adoration of athleisure wear.
According to the US Census Bureau, millennials, particularly in regions like Asia-Pacific, will soon outnumber baby boomers in the country. Similar trends will be seen throughout Asia-Pacific, particularly in nations like China, India, and Australia.
However, the industry continues to be threatened by counterfeit athleisure brands, especially in price-sensitive markets, hindering the growth of original brands. To combat this, the industry employs innovative marketing strategies, leveraging celebrity endorsements and social media to boost market penetration. Gaining popularity amongst male consumers, key items like bomber jackets and hoodies are expected to drive market growth.
The hoodies category is expected to register highest growth during the forecast period. Online sales channels will drive forth due to convenience and product variety they offer. North America will lead in sales revenue while Asia-Pacific is expected to witness rapid growth with the rise in consumer adoption.
Key players like Adidas, Nike, and Lululemon are employing various strategies to enhance market share and profitability. Their success is fueled by the athleisure trend's integration of fashion-forward designs, celebrity endorsements, and technological innovations in materials and manufacturing processes.
Swedish fast-fashion giant H&M has partnered Shanghai Fashion Week to release a collaborative collection with a Chinese fashion designer.
Having entered mainland China in 2007, H&M has been engaged with several local fashion creatives since 2015 when Ximon Lee scored the H&M Design Award. It later teamed up with brands Angel Chen and Pronounce to launch region-exclusive capsule collections.
However, the brand had to terminate its association with the Chinese fashion industry as it got mired in Xinjiang controversy in 2021. Having reiterated its commitment to stop using cotton sourced from the region, the brand was temporarily blocked from major Chinese e-commerce platforms.
The brand later made great efforts to restore its relationship with the local market. Since 2021, the company has continuously attended the China International Import Expo.
India’s retail space leasing across shopping mall and hi-street locations is likely to dip by 15 per cent to 6-6.5 million sq ft in 2024, as per real estate consultant CBRE.
Supply of retail spaces, particularly development of high-quality malls, is expected to remain steady in 2024 with Tier I cities expected to witness approximately 5-6 million sq ft of investment-grade mall space during the year. In 2023, India’s retail space leasing grew to 71 lakh sq ft across major cities, according to the CBRE report titled ‘2024 India Market Outlook.’
Anshuman Magazine, Chairman & CEO, CBRE - India, South-East Asia, Middle East & Africa, avers, besides Tier I cities, Tier II markets are also expected to attract new mall developers during the year. Malls are likely to be expanded into experiential centers with entertainment, dining, and shopping facilities to meet consumer demands.
Leasing across luxury retail will increase during the year with both established brands deepening their presence and new international players entering the market. This expansion will extend beyond traditional hubs like Delhi and Mumbai to emerging markets such as Hyderabad and Ahmedabad.
In 2024, retailers, including anchor tenants and established brands, are expected to prioritise locations with high visibility, foot traffic, and favorable demographics for leasing. Growth in rents is anticipated to stabilise across primary and secondary locations.
Techtextil, slated for late April in Frankfurt, anticipates a robust showing from VDMA member firms, with over 50 companies poised to showcase cutting-edge smart technologies across diverse textile applications. Among these, seven will command attention at the VDMA group stand. A central theme for exhibitors will be the integration of automation and digitalization.
VDMA members are positioned to spearhead the textile industry's evolution, offering innovative, resource-efficient production technologies and advanced recycling equipment. Digitalization emerges as a linchpin, enhancing process efficiency and product quality while addressing workforce shortages. Already, automation and digital tools have matured, promising heightened process reliability and transparency.
Recognizing the imperative of collaboration, VDMA convenes a panel discussion at their stand on April 24th, exploring the "Product Passport" and its industry implications. This regulatory stride toward a Digital Product Passport (DPP) for textiles, slated for mid-2027 implementation, underscores the sector's trajectory towards digital integration.
Moreover, Techtextil will serve as a platform for nurturing future talent. On April 25th, the Walter Reiners Foundation, under VDMA, will honor six young engineers for their contributions to sustainability, reinforcing the industry's commitment to innovation and growth.
In a resounding call to action, members of the Renewable Carbon Initiative (RCI) have highlighted the pressing need for Europe to transition from fossil to renewable carbon sources. The comprehensive survey conducted by RCI encapsulates the collective voice of various sectors within the European chemicals and materials industry. Among the key challenges identified are soaring energy and raw material prices, alongside the imperative to curtail carbon emissions to meet ambitious environmental targets.
A pivotal issue underscored by RCI members is the absence of policies incentivizing the adoption of renewable carbon feedstocks in chemical and plastics production. They urge policymakers to craft a regulatory framework that not only encourages the shift away from fossil fuels but also encompasses measures targeting feedstock and polymer levels. The current regulatory landscape, predominantly characterized by restrictive policies like Reach and the Single-Use Plastics Directive, falls short in fostering innovation and incentivizing the adoption of renewable carbon technologies.
Proposed solutions by RCI members include implementing minimum quotas for renewable carbon content across various application sectors and introducing a fossil carbon tax on the chemical industry. Additionally, measures such as carbon accounting mechanisms, carbon dioxide border adjustments, and Extended Producer Responsibility (EPR) schemes are touted as instrumental in driving the transition towards renewable carbon.
Overcoming barriers to sustainable carbon feedstocks, including acceptance issues with biomass and slow recognition of carbon capture and recycling technologies, is deemed crucial. The convergence of food and non-food biomass, carbon capture from biogenic and fossil sources, and mechanical and chemical recycling is emphasized as pivotal in achieving a closed-loop carbon cycle.
Furthermore, ensuring the availability of competitively priced green energy, including solar, wind, and hydrogen, is paramount for all production sectors to embrace sustainable practices. With Europe's robust educational infrastructure, cultural diversity, and advanced regulatory frameworks, the transition to renewable carbon presents an opportunity for the continent to solidify its position as a leader in sustainable innovation. Swift and decisive action, bolstered by supportive policies and incentives, is imperative for Europe to maintain its competitive edge and pave the way for a resilient renewable carbon economy.
Hong Kong Polytechnic University (PolyU)'s Chinese Culture Festival kicks off with the "Splendid China Embroidery - Traditional Chinese Embroidery Crafts and Ou Embroidery Works Exhibition," running until April 23. The opening ceremony, co-organized with the Wenzhou Municipal Culture, Radio, Television and Tourism Bureau, and the Zhejiang Industry and Trade Vocational College, was graced by distinguished guests including PolyU Council Chairman Lam Tai-fai and Wenzhou Municipal Culture, Radio, Television and Tourism Bureau's Zhang Zhihong.
Lam Tai-fai emphasized PolyU's dedication to promoting Chinese culture, highlighting its significance for both Hong Kong and the nation. Zhang Zhihong expressed hope for enhanced cultural ties between Wenzhou and Hong Kong through the exhibition. Wang Yan, Vice President of the Zhejiang Industry and Trade Vocational College, spoke on the importance of cultural exchange and cooperation.
The exhibition showcases Ou embroidery, a national intangible cultural heritage, known for its intricate artistry and economic value. To enrich the visitor experience, innovative technologies, including light and color techniques by Tommy Minchen Wei, are employed to accentuate the beauty of the embroidery. Augmented reality enhances certain exhibits.
The event offers lectures, workshops, and guided tours led by experts like Zou Shengzhu, providing insights into Ou embroidery's skill and cultural significance. Free for all, these activities aim to foster appreciation for craftsmanship and artistic sensitivity.
Upcoming is the "Indigo Dyeing from the Blue - The Silk Road Textile Dyeing Enters Hong Kong" exhibition, featuring silk dyeing artworks from Guan Lansheng. In collaboration with the College of Art of Beijing Union University, this event further enriches PolyU's cultural offerings.
Overall, PolyU's Chinese Culture Festival serves as a platform for cultural exchange, fostering deeper understanding and appreciation for traditional Chinese crafts while promoting collaboration and innovation.
In a recent interview, Lovis Kneisel, CEO of Fuse, shed light on their project aiming to develop an alpine ski using hemp-based composites, a move set to revolutionize sustainability in the industry. Collaborating with Karl Mayer Technische Textilien, Fuse seeks to significantly diminish the carbon dioxide footprint in ski production by transitioning to a circular economy model and harnessing hemp as a renewable material.
When asked about the rationale behind this project, Kneisel highlighted the ski industry's receptiveness to sustainability innovations, coupled with the sector's rapid feedback mechanism. Notably, Fuse's collaboration with Spurart has enabled them to replace 100% of glass fiber while maintaining exceptional performance, impressing professionals both on and off the slopes.
Discussing the advantages of hemp over flax in composite materials, Kneisel emphasized hemp's ecological and economic benefits, including its pesticide-free cultivation and wider availability. By leveraging secondary fibers, Fuse can ensure a competitive cost structure for their products.
Regarding the manufacturing process, Kneisel underscored the efficiency of producing tapes directly from fibers, streamlining production and enhancing impregnation behavior. He also expressed optimism about the project's potential impact across various industries, including construction and logistics, citing ongoing collaborations to develop innovative solutions such as circular Euro pallets.
Despite the industry's burgeoning interest in bio-based materials, Kneisel acknowledged challenges in ensuring consistent quality and reducing supply costs. However, he remained optimistic, emphasizing the industry's commitment to decarbonization and innovation.
Reflecting on their partnership with Karl Mayer, Kneisel commended the company's innovative ethos and openness to experimentation, highlighting their fruitful collaboration throughout the project's evolution.
Despite expecting a slight dip in organic sales in Q1, Ermenegildo Zegna Group remains optimistic about reaching its sales target of €2 billion in 2024. The group’s average annual sales are projected to grow by 10 per cent and adjusted EBIT by 20 per cent, showcasing its dedication to ongoing success and innovation.
Looking forward, the Zegna group has unveiled plans for a cutting-edge production center for luxury footwear and leather goods in Sala Baganza, Italy, slated to start operations in 2026. Spanning nearly 12,000 sq m and employing 300 individuals, this advanced facility will not only strengthen the group’s production capabilities but also serve as a research and development hub to enrich the its customisation offerings.
In 2023, the group achieved remarkable success across its various brands and segments. Following the announcement of sales rising by 27.6 per cent from previous year to €1.9 billion in January, the renowned Italian fashion conglomerate reported outstanding financial results. Its net profit more than doubled, soaring from €65.3 million in 2022 to €135.7 million in 2023, showcasing a notable margin expansion from 4.4 per cent to 7.1 per cent.
Listed on the New York Stock Exchange and known for its Zegna and Thom Browne brands, as well as its management of Tom Ford's pre-porter collections under license, the group witnessed a robust surge in adjusted operating profit (EBIT), which rose by 40 per cent to reach €220.2 million.
Within the Zegna segment, including the flagship brand and the conglomerate's textile activities, sales reached €1.32 billion, rising by 12.4 per cent increase, while the adjusted operating profit increased by 36.7 per cent to €193.5 million. This segment also saw a notable margin improvement to 14.6 per cent, attributed to strategic adjustments in distribution channels and a heightened focus on Zegna-branded products.
Moreover, the group's retail network, responsible for 85 per cent of total sales, experienced improved profitability, further contributing to the stellar results. Efforts to optimise Thom Browne's wholesale distribution also yielded positive outcomes, with sales rising by 14.9 per cent to €380.3 million in 2023and an impressive adjusted operating profit margin of 15.5 per cent.
The integration of Tom Ford Fashion, completed in April 2023, significantly expanded the group's luxury portfolio. Despite initial operational challenges resulting in an adjusted operating loss of €1.7 million, the segment, covering various fashion categories and managed directly by the group, recorded promising sales figures of €235.5 million within eight months.
Subdued demand from domestic consumers and challenging year-over-year comparisons with last year’s surge post lifting of COVID restrictions are expected to dampen the sales of luxury brands in mainland China during the first quarter.
The world’s largest luxury group, LVMH is set to report financial results for the first quarter on April 16, followed by competitors Kering, Prada, and Hermès a week later. Burberry and Richemont are expected to follow suit in May.
JPMorgan predicts, overall sales for LVMH are expected to remain flat during the first quarter, with the fashion and leather goods division growing by 2 per cent. Figures from UBS analyst shows, organic sales growth for LVMH are expected to remain at 3 per cent organic sales growth for LVMH during the first quarter ending in March, with projections for other luxury players varying.
Kering forecasts first quarter sales to decline by 10 per cent decline as against the 3 per cent anticipated by analysts. The company attributes this decline to a sharp drop in sales in Asia, particularly from its flagship label Gucci. This underperformance has raised concerns that other high-end fashion brands may also be facing challenges in the Chinese market.
Analysts at HSBC note that Chinese tourists in Hong Kong, Macau, and Singapore are showing less inclination towards lavish spending, further exacerbating the situation.
Kering's struggles in China have contributed to its lower valuation compared to rivals. Its 12-month forward price-to-earnings ratio of 16 lags behind LVMH's 24 and Hermès's 51.
There is uncertainty regarding the pace of recovery in high-end fashion consumption, even as year-over-year comparisons become less challenging. Analysts at Barclays predict a slowdown in global luxury goods sales growth to mid-single-digit percentages, down from nearly 9 per cent last year and double-digit growth in previous years.
As the cost of living rises, consumers are becoming more discerning about luxury purchases, leading to diverging performance among brands. Stronger performers like Louis Vuitton, Chanel, and Hermès are expected to fare better than brands like Burberry, which is undergoing restructuring.
Caroline Reyl, Head – Premium Brands, Pictet Asset Management, notes that certain brands will benefit more than others in this environment. Sales growth for companies like Prada, which has seen success with its Miu Miu label among younger Chinese shoppers, are expected is expected to remain slow. Global reail sales for Prada are expected to rise by 9 per cent in the first quarter, according to Jefferies.
Renowned fashion brand, Huemn has teamed up the iconic motorcycle manufacturer Royal Enfield to launch their new collection titled ‘Shot of Mumbai.’.
This exclusive collection boasts an array of apparel including t-shirts, hoodies, denim pieces, and helmets, all inspired by the essence of the Royal Enfield Hunter 350.
Mohit Dhar Jayal, Chief Brand Officer, Royal Enfield, states, this collaboration embodies the shared values of creativity, self-expression, and a bold sense of style between the two brands.
Pranav Misra, Co-founder & CEO, Huemn, adds, reflecting the dynamic and vibrant spirit of both brands, the collection serving as a convergence of worlds that resonates with the modern explorer and celebrates individuality.
Offering fashion enthusiasts a unique fusion of fashion and motorcycling culture, the ‘Shot of Mumbai’ collection will be available on Huemn’s and Royal Enfield’s online platforms.
