FW
The General Authority for the Suez Canal Economic Zone (SCZone) plans to develop a $8.8 million RMG facility in partnership with Turkiye’s Denim Rise.
To create 1,000 direct jobs, the facility will span 26,000 sq m and export 70 per cent of its production. It will open in H2, FY25, coinciding with the launch of similar projects in the industrial zone.
Highlighting the strategic advantages of the Qantara West Industrial Zone, Walid Gamal El-Din, Chairman, SCZone, says, the zone’s proximity to Canal and Delta governorates makes it ideal for labor-intensive projects.
Reflecting robust economic times, the Denim Rise project marks the fourth Turkish investment in the zone which is set to also host facilities for garment accessories, textile printing and dyeing, and the manufacturing of bags and travel goods.
This project is a part of the Phase I of the nine-project deal signed by the SCZone with a combined investment of $317.8 million. Together, these projects are expected to generate over 15,000 jobs across the country.
Consolidating its position as the world’s second-largest exporter, Vietnam’s textile and apparel (T&A) exports are projected to rise to $44 billion in 2024, says Cao Huu Hieu, General Director, Vietnam National Textile and Garment Group (Vinatex).
To achieve these goals, Vinatex aims to enhance its management processes through digital transformation, integrate automation technology, and adopt artificial intelligence to reduce reliance on labor. These initiatives are a part of the group’s broader commitment to modernise operations and promote sustainability.
Noting encouraging signs form key markets such as the US and the EU, Hoang Manh Cam, Deputy Chief, Vinatex, says, economic recovery from these two markets and rising consumer demand are boosting opportunities for Vietnam’s textile exporters. A shift in orders from Bangladesh due to political instability further strengthens Vietnam’s prospects.
Despite a slow start in the first half of 2024, Vinatex’s consolidated revenues increased by 2.8 per cent Y-o-Y to 18.1 trillion VND ($724 million) in H2, FY24. The group’s consolidated profit increased by 37.5 per cent to 740 billion VND during the period.
Vinatex’s success stems from its focus on niche markets and high-tech products like fire-resistant fabrics developed with the UK’s Coats Group, along with innovations in filament core yarns and blended fibers. The group has also adopted an enterprise resource planning (ERP) system to streamline operations.
In its push for sustainability, Vinatex is expanding its wastewater treatment facilities at Pho Noi Textile and Garment Industrial Park, Hung Yen province, aiming to create a model green industrial park. With these initiatives, Vietnam’s textile and garment sector is poised for continued growth, supported by a strategic focus on innovation and environmental stewardship.
A multinational company worth over $2 million, Trident Group was honored by the renowned with the TBD Textile Connect – Textile & Apparel Industry HR Summit Excellence Award for its exceptional HR practices This award was presented to the Group by the Ministry of Textiles in several important categories including Best Employer Manufacturing, Best HR Practice, Excellence in Campus Hiring and Recruitment and Workforce Safety.
The awards were presented by Gririraj Singh Union Textiles Minister who hailed the group’s commitment to promote HR innovation and cultivate a diverse and inclusive workforce. The honor demonstrates the company’s steadfast dedication to create an environment where people from all backgrounds can succeed, says Pooja B Luthra CHRO, Trident Group.
To diversify its personnel, the Trident Group has launched the ‘Takshashila’ program. This innovative program empowers children from a variety of educational backgrounds, including ITI, diplomas, and 10+2. The program currently earns Rs 12 lakh annually and offers people worthwhile job options in the textile sector, enabling them to earn money and knowledge.
The company’s ongoing expansion, involving an investment of Rs 3,000 crore in Madhya, also impacts the state’s local economy in Madhya Pradesh. The expansion also generates 3,000 new employment opportunities, increasing it’s the state’s total workforce to over 15,000 people.
Indian Oil Corporation (IOCL) plans to set up a textile park in the Bhadrak district, Odisha with an investment of Rs 4,382 crore.
To be executed in 50:50 joint venture with MCPI, the textile park will be established on 56 acre at Dhamnagar. The park will also house a 900 tons per day textile plant to be built with an investment of Rs 1,971 crore, as per Dhananjay Sahoo, Head-Business Development (Petrochemicals), IOCL.
The establishment of this yarn manufacturing unit aligns with IOCL's strategy to diversify into value-added products and supports the development of a robust textile ecosystem in Odisha.
This project is poised to enhance Odisha’s industrial landscape, contributing to economic growth and creating numerous employment opportunities in the region.
Additionally, the project is anticipated to bolster the state's position in the textile industry, attracting further investments and fostering industrial growth.
Peter Ackroyd has succeeded Sir Nicolas Coleridge as the new Chairman of The Campaign for Wool with immediate effect.
A former COO of the non-profit orgnaisation, Ackroyd has been engaged with it since 2009 following a successful career in the textile industry spanning around 50 years.
During his stint in the textile industry, Ackroyd served as the President of the International Wool Textile Organisation, and Global Strategic Advisor for Australian Wool Innovation/Woolmark Company.
In the The Campaign for Wool, Ackroyd will be responsible for navigating the complex issues facing the international wool sector. In close collaboration with ITWO, he will work towards resolving the challenge facing the wool industry with respect to the Environmental Footprint legislation of the European Union.
According to Ackroyd, the new framework fails to address critical environmental factors, including microplastic pollution, the renewability and biodegradability of natural fibers and the full environmental footprint of fossil fuel-based fibers.
From 15.5 per cent in 2021, India’s mall vacancy rates declined to 8.3 per cent in H1, FY25, according to a report by Anarock. This decline highlights the growing demand for retail spaces, which has consistently outpaced supply for the third consecutive year. In H1, 2024, over 3.1 million square feet of retail space was leased across the country.
Anuj Kejriwal, CEO and MD – Retail, Industrial & Logistics, Anarock Group, highlights, retailers and brands continue to prefer smaller spaces, with nearly 70 per cent of leases being for spaces measuring up to 2,500 sq ft, he says. However, as new supply enters the market in the coming years, larger spaces are expected to account for a greater share of the total leased area, he notes.
The next few years are set to see substantial supply additions, with the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), and Hyderabad leading the charge. These three regions are projected to account for over 85 per cent of the total incoming supply over the next four to five years.
While the leasing momentum remains robust, rental values across prominent high streets are climbing steadily. The upward trend is expected to persist until fresh, quality retail supply enters the market.
The leasing activity in H1 FY25 mirrored the robust momentum of the past two years, with over 3 million sq ft of retail space leased across major cities. As demand continues to thrive, the retail sector remains poised for steady growth, driven by both increasing retailer interest and new supply pipelines in key markets.
The International Textile Manufacturers Federation (ITMF) has released its latest International Textile Industry Statistics (ITIS) for 2023, featuring updates on global spinning mill capacity and raw material consumption. The data reflects a comprehensive review with a new calculation method applied to historical series.
Globally, installed short-staple spindles reached 232 million units, with open-end rotors growing to 9.7 million. Air-jet spindle installations saw a sharp rise, hitting 637,000 units. Asia remains the dominant region for capacity expansion, while Turkiye led growth outside the continent. Installed shuttle-less looms globally increased to 1.7 million units.
Raw material consumption in the short-staple sector slightly declined to 43 million tons. Cotton and cellulosic fiber usage dropped by 4.4 per cent and 2.9 per cent, respectively. Conversely, synthetic fiber consumption rose marginally by 0.5 per cent, indicating a shift in material preferences.
The ITMF report underscores Asia's continued prominence in textile capacity building and highlights evolving trends in raw material utilization. These shifts reflect broader changes in global textile manufacturing and resource dynamics.
The athleisure market, a fashion phenomenon born from the fusion of athletic wear and leisurewear, is experiencing a seismic shift. While Lululemon has long reigned supreme, a new breed of challenger brands, led by the California-based Vuori, is vying for dominance. This feature delves into the competitive landscape of this dynamic industry, examining the distinct positioning of key players, their retail strategies, financial performance, and the overall market outlook.
The athleisure boom, a macro perspective
The global athleisure market is experiencing explosive growth. Driven by increasing health consciousness, a desire for comfortable clothing and the blurring lines between work and leisure, the market is projected to reach $547.01 billion by 2024, growing at a CAGR of 8.6 per cent from 2023 to 2028, as per Allied Market Research. This presents a lucrative opportunity for both established giants and emerging contenders.
Table: Global athleisure market
|
Region |
2023 market size ($ bn) |
Projected 2028 market size ($ bn) |
CAGR (%) |
|
North America |
181.28 |
275.47 |
8.7 |
|
Europe |
125.35 |
185.21 |
8.2 |
|
Asia-Pacific |
108.52 |
162.48 |
8.5 |
|
LAMEA |
31.86 |
47.85 |
8.6 |
|
Global |
447.01 |
671.01 |
8.6 |
Lululemon, the legacy leader
Luluemon is positioned as a premium athleisure brand with a focus on performance and style, primarily targeting women. It has an extensive global store network (700+ locations), strong online presence, and community-building initiatives like yoga classes. As of 2023 its revenue was $9.6 billion, and as of January it has a market cap of $65.44 billion. Its key strengths are brand recognition, loyal customer base, and robust supply chain. However, it faces several challenges like maintaining growth momentum, competition from emerging brands, and potential impact of economic slowdown.
Vuori, the rising challenger
Vurori has emerged as ‘Everyday performance apparel’ with an emphasis on comfort, versatility, and a relaxed aesthetic, initially targeting men. Its retail is focused on direct-to-consumer sales, expanding retail footprint with 79 stores in six countries, strategic partnerships with wholesalers like REI and Nordstrom.
As of 2023 Vuori revenue was $32.8 million (estimated) and its valuation as of November 2024 was $5.5 billion. The brand’s key strengths are strong product differentiation focus on profits, and effective social media marketing. However, scaling-up production and maintaining quality, building brand awareness, and competing with Lululemon's scale are some of its biggest challenges.
The athleisure boom has attracted a plethora of competitors. There is well established Nike which is expanding its dominance in sportswear into the athleisure segment. And Adidas, following a similar trajectory as Nike, leveraging performance-oriented roots. Under Armour on the other hand is transitioning into lifestyle and athleisure to diversify its offerings. And Alo Yoga is specializing in yoga-inspired apparel with a growing retail presence of over 100 stores.
The athleisure industry is expected to for continued growing with evolving consumer preferences and a focus on wellness. While Lululemon remains a dominant force, challenger brands like Vuori are disrupting the market with innovative products, strategic retail expansion, and a strong digital presence. The battle for market share will intensify, with brands needing to constantly adapt and innovate to capture the attention of increasingly discerning consumers.
Ahmet Oksuz, Chairman of the Istanbul Textile and Raw Materials Exporters Association (ITHIB), has proposed relocating Turkish textile production facilities to Syria, citing lower costs and strategic advantages. In an interview with Anadolu Agency, Oksuz emphasized Syria's potential as a promising investment destination, especially in the textile sector.
Ahmet Oksuz noted that many Syrians who settled in Turkiye have contributed to various industries and suggested that establishing production facilities in Syria as they return home could be advantageous for both countries. He pointed out that Turkiye is facing increasing labor costs and shortages in labor-intensive sectors, making Syria a more cost-effective option for production.
Currently, many Turkish textile firms are investing in Egypt, but Oksuz suggested that shifting focus to Syria would provide greater strategic benefits, particularly in regions close to Turkiye. He added that such investments could enhance Turkiye's production capacity while creating employment opportunities for Syrians.
Sinan Oncel, president of the United Brands Association (BMD), acknowledged the gradual pace of normalization in Syria but expressed optimism about future opportunities for Turkish retail expansion, including franchising.
As Syria’s reconstruction progresses following the collapse of its Baath regime, Turkiye’s textile and retail sectors are poised to play a pivotal role in boosting employment and rebuilding efforts in the region.
As 2024 concludes, the wool industry stands at a crossroads, balancing significant challenges with meaningful advancements. Australian wool prices reached a four-year low, straining growers with rising costs and declining volumes. Yet, the unwavering dedication of the supply chain highlights wool’s enduring value and potential.
This year underscored the need for strategic action. Without support, the availability of premium wool, a cornerstone of the fashion industry, risks falling short of future demand. Strategic partnerships and long-term commitments are vital to stabilizing supply chains, safeguarding livelihoods, and ensuring the continuity of this extraordinary fibre.
Despite obstacles, 2024 brought significant achievements. Woolmark+ set a bold, nature-positive vision for wool’s future, emphasizing environmental and social benefits. Campaigns like Wear Wool, Not Waste reached over 64 million people, promoting wool’s role in sustainable fashion. Woolgrowers also advocated for fair, science-based standards to reflect wool’s true environmental impact.
Consumer demand for natural fibres surged, aligning with wool’s unmatched sustainability credentials. Woolmark celebrated its 60th anniversary with a 6.8 per cent growth in licensees and introduced a Recycled Wool Specification to combat textile waste. Innovations like The Wool Lab, sourcing guides, and the new Supplier Search further strengthened connections across the supply chain.
As the industry celebrates its legacy of quality and innovation, it looks ahead with optimism. By driving sustainability and collaboration, wool’s future remains bright, ensuring its timeless appeal for generations to come.
