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Coats Digital’s FastReactFabric has been shortlisted in nine categories at The 2024 SaaS Awards, including Most Agile/Responsive SaaS Solution, Best Data-driven SaaS Product, and Best SaaS Product for CSR, Sustainability & ESG.
The SaaS Awards, known for recognizing innovative software solutions globally, received entries from organizations across North America, Canada, Europe, the Middle East, and Australasia.
Kunal Kapur, Managing Director of Coats Digital, expressed pride in FastReactFabric’s achievements and its impact on the fashion industry, particularly through enhancements like Roll Allocation and Remnant Planning. These features aim to improve competitiveness and environmental responsibility within the global apparel sector.
James Williams, CEO of The Cloud Awards, highlighted the exceptional quality of this year’s entries, congratulating the finalists for their achievements. Winners will be announced on August 13, 2024.
The SaaS Awards will reopen for new submissions in Spring 2025, continuing its mission to honor excellence in SaaS solutions.
E-commerce exports are growing globally, transforming how businesses reach international customers. But which country reigns supreme in this digital trade arena?
China tops the charts
China takes the crown for the largest volume and value of exports through e-commerce. Estimates suggest China's e-commerce exports reached $300 billion annually, dwarfing other major players. This dominance can be attributed to a vast domestic e-commerce ecosystem, strong manufacturing capabilities, and a government keen to promote cross-border online trade.
Fashion goes global
While data on the specific share of apparel and textiles in global e-commerce exports is limited, industry reports suggest fashion is a significant driver. The Business of Fashion and McKinsey & Company estimate apparel and footwear online sales could reach $762 billion globally by 2023. This trend highlights the growing consumer demand for convenient access to a wider variety of clothing and accessories.
India's e-commerce export potential
India presents a promising future for e-commerce exports. A report by the Directorate General of Foreign Trade (DGFT) suggests India's e-commerce exports could reach $400 billion by 2030, a significant leap from the current estimate of around $1 billion. This potential stems from India's diverse and competitive manufacturing sector, coupled with a growing pool of tech-savvy entrepreneurs.
To fully capitalize on this opportunity, India needs to address some key challenges:
Streamlining regulations: Implementing clear and efficient regulations for e-commerce exports can help businesses navigate the complexities of cross-border trade.
Logistics infrastructure: Investments in efficient logistics infrastructure, including robust postal systems and reliable international shipping options, are crucial for timely and cost-effective deliveries.
Digital literacy & support: Promoting digital literacy among small and medium-sized enterprises (SMEs) and providing dedicated support for e-commerce export operations is essential to empower businesses to tap into global markets.
The Indian textiles and clothing industry, the second-largest employment provider after agriculture, predominantly consists of MSMEs and employs around 11 crore people. The NDA government, under Prime Minister Narendra Modi, has significantly supported MSMEs by relaxing eligibility criteria, which now include asset values up to Rs 50 crores and annual turnovers up to Rs 250 crores. This has allowed over 80 per cent of textile manufacturing units to qualify as MSMEs, benefiting them during and post-lockdown periods.
SK Sundararaman, Chairman of the Southern India Mills’ Association (SIMA), praised the Union Budget's focus on employment, skilling, and MSMEs. He highlighted the Credit Guarantee Scheme for MSMEs, which offers term loans for machinery purchases up to Rs 100 crores without collateral. He also welcomed the mechanism for maintaining bank credit during stressed periods to prevent MSMEs from becoming NPAs.
The reduction of BCD on Methylene diphenyl diisocyanate (MDI) from 7.5 per cent to 5 per cent is expected to enhance the competitiveness of spandex yarn manufacturers. Increased allocations for export schemes RoDTEP and RoSCTL by 5.8 per cent and 10 per cent respectively will support the struggling textile export sector.
Sundararaman also lauded the Employment Linked Incentive Scheme and infrastructure improvements like roads, ports, and airports, which will reduce logistics costs. Additionally, the increase in Mudra loan limits from Rs 10 lakhs to Rs 20 lakhs will benefit small traders and weavers. The establishment of 12 industrial parks and initiatives for energy security, R&D, and skill development, PLI, PR-MITRA, NTTM will further bolster the textile industry.
Chairman of the Confederation of Indian Textile Industry (CITI), Rakesh Mehra, congratulated Finance Minister Nirmala Sitharaman on presenting her 7th budget, hailing it as forward-thinking for the Indian economy. He highlighted the need for bold measures in the stagnant textile and apparel industry to boost capacity, modernize, and enhance cost competitiveness.
Mehra emphasized the importance of MSMEs, which constitute 80 per cent of the textile industry, and praised the announced credit assurance schemes for aiding MSME growth and innovation. He lauded the recognition of e-commerce as a growth engine and the establishment of e-commerce hubs, industrial parks, and support for working women's hostels.
The budget’s focus on skilling, the Employment Linked Incentive scheme, and eased FDI norms were noted as positive steps for new investments. Financial support for clean energy transition and energy audits demonstrated the government's commitment to sustainability. Mehra also appreciated income tax relaxations, expecting an increase in consumer purchasing power to boost domestic textile demand.
However, Mehra pointed out the industry's struggles with raw material availability at competitive prices and the lack of investment incentives following the TUFS scheme's expiration in March 2022. He noted the need for capital subsidy schemes to ensure large-scale investments, as the current PLI scheme falls short. Mehra called for bolder steps to revive this employment-generating sector for a 'Viksit Bharat'.
The 14th edition of the India Tex Trends Fair was inaugurated today in Tokyo by His Excellency Sibi George, Ambassador of India to Japan, alongside Ishii Taku, Vice Minister of Economy, Trade and Industry, and Yoshitaka Sasakawa, Advisor, Japan India Industry Promotion Association (JIIPA).
Ambassador Sibi George praised the collaborative efforts of AEPC and JIIPA, highlighting the significant growth in exhibitors from 70 to 250 over seven years. He emphasized the potential for the textile sector to drive economic growth under the India-Japan Strategic Partnership, aiming to increase bilateral success stories from 1,500 to 15,000.
AEPC Chairman Sudhir Sekhi outlined the objectives to boost India's ready-made garment (RMG) exports to Japan and attract investments in India's RMG sector. He noted India's commitment to ESG compliance, renewable energy adoption, and the introduction of the traceable cotton brand, Kasturi.
Secretary General Mithileshwar Thakur highlighted the opportunity to increase India's current 1 per cent share of Japan's $23 billion garment import market. He stressed India's strengths in fibre availability, minimal import dependence, and a complete value chain, making it well-positioned to fill the gap left by China's declining market share in Japan.
With duty-free access under the Indo-Japan CEPA, Indian RMG manufacturers have a competitive advantage over Turkey and China, which face duties of 9 per cent and 9.5 per cent, respectively.
The fair features meetings with top Japanese brands and retailers, including Fast Retailing, Toray International, and MUJI, showcasing a diverse range of Indian apparel across various categories.
Better Cotton, the leading global initiative for cotton sustainability, has announced significant updates to its Council. The organization has appointed Bill Ballenden, Head of Sustainability and Innovation at Louis Dreyfus Company (LDC) Cotton, and Tamar Hoek, Senior Policy Director for Sustainable Fashion at Solidaridad, as its new co-chairs. Both bring diverse expertise and a shared commitment to advancing sustainability and traceability within the cotton industry.
Ballenden and Hoek will serve as ambassadors for Better Cotton, guiding policy decisions and promoting collaboration across the cotton value chain. They expressed enthusiasm about their roles, aiming to enhance sustainability and benefit the entire supply chain from farm to fabric through their combined expertise.
Joining the Council are five new members: Doug Forster, Chief Sourcing Officer at J.Crew Group; Elodie Gilart, Senior Sustainability Manager at Marks & Spencer; Nadia Bilal, Managing Director of Spinning at Nishat Chunian; Vicente Sando, Executive Coordinator at FONPA (Mozambique’s National Forum of Cotton Farmers); and re-elected members Rajan Bhopal from Pan UK and Shahid Zia from the Lok Sanjh Foundation.
Forster emphasized J.Crew's goal to source 100 per cent of its cotton sustainably by 2025, while Gilart highlighted Marks & Spencer’s commitment to traceability. Bilal will focus on capacity building and innovation in Asia’s cotton sector, and Sando aims to enhance transparency and inclusivity for small-scale farmers.
Departing members include Gerson Fajardo of Walmart, Pierre Chebab of LDC, and Kevin Quinlan. The Better Cotton Council remains central to shaping the organization’s strategic direction and advancing its mission to support cotton communities and protect the environment.
Revenues of LVMH Moët Hennessy Louis Vuitton increased by 1.4 per cent to €20.98 billion during Q2, FY 25. On a Y-o-Y basis, the company’s revenues during the quarter ended June 30, 2024 increased by 1 per cent, marking a decline from the first quarter where revenues had increased by 3 per cent.
Sales from the company’s fashion and leather goods (FLG) division rose by 1 per cent to €10.28 billion on a like-for-like basis compared to the same period last year. However, this was below the Visible Alpha forecast, which anticipated a 2 per cent increase. The division faced a ‘substantial’ negative impact from exchange rate fluctuations during the first half of the year. Despite a 6 per cent decline in profit from recurring operations for FLG, the operating margin remained at historically high levels, particularly for flagship brands Louis Vuitton and Dior.
Missing analysts’ expectations, LVMH reported a net profit of €7.27 billion during H1, FY24. The company’s profit from recurring operations decreased by 8 per cent to €10.65 billion, resulting in an operating margin of 25.6 per cent. In response to these challenges, LVMH recently undertook a management reshuffle in its watches and jewelry division, appointing new chief executive officers at Hublot and Tag Heuer.
The global apparel industry is currently navigating a complex and challenging landscape. A number of factors, including shifting consumer behavior, economic uncertainties, and geopolitical tensions, is impacting trade flows, retail sales, and overall market dynamics. The latest edition of ‘Apparel trade scenario in key global markets’ by Wazir Advisors’ reveal apparel imports by key global markets viz. US, UK, and Japan went down in May.
A contradictory import picture
One of the most striking trends is the divergent performance of apparel imports across key markets. While imports to the US, UK, and Japan contracted in May compared to the previous year, the EU bucked the trend with a robust 17 per cent increase. This disparity highlights the varying degrees of economic recovery and consumer sentiment in different regions.
The decline in imports to the US, the world's largest apparel market, is particularly noteworthy. This downturn is corroborated by retailers' inventory data, which indicates a substantial reduction in stock levels compared to the previous year. This suggests that retailers are exercising caution in replenishing their inventories amid uncertain consumer demand.
Export dynamics, a tale of two worlds
On the export side, the picture is equally complex. While India has registered impressive export growth at $12 billion a year on year change of 13 per cent, China and Bangladesh have witnessed declines. This shift in the export landscape could be attributed to several factors, including changes in production costs, trade policies, and consumer preferences.
Retail sales, a mixed bag
Retail sales data offers further insights into the state of the apparel industry. While the US has reported an increase in apparel and home furnishing store sales in June compared to the previous year. In June 2024, US monthly home furnishing store sales are estimated
to be $5.3 billion, which is 4 per cent higher than in June 2023. On YTD basis, the sales in 2024 are 8 per cent lower than in 2023.
The UK market has experienced a slight decline. In June 2024, UK’s monthly apparel store sales were £4.6 billion which is 2 per cent lower than in June 2023. On YTD basis, the sales in 2024 is 3 per cent lower than in 2023. In Q1 2024, UK’s online sales of clothing registered a growth of 7 per cent over Q1 2023. These contrasting trends underscore the regional differences in consumer spending patterns.
At the same time, for last several quarters, several major retailers like Walmart, Target, Kohl's, VF Corp GAP, PVH, Hanesbrand, Ralph Lauren have reported lower inventory levels compared to same period in the previous year
Economic headwinds
The broader economic environment is also exerting pressure on the apparel industry. The easing of inflation in the US is a positive development, but it has failed to boost consumer confidence. The decline in the Consumer Confidence Index and persistent unemployment challenges suggest that a revival in consumption is still elusive.
The study highlights, the apparel industry is at a crossroads. While the EU market is showing resilience, other major markets are grappling with challenges. Retailers are adopting a cautious approach to inventory management, and exporters are facing a shifting landscape. The industry will need to closely monitor consumer behavior, economic indicators, and geopolitical developments to navigate these turbulent waters. As the global economy continues to evolve, the apparel sector will undoubtedly undergo significant transformations.
Some key questions that still need to be seen are: What are the specific factors driving the divergence in apparel import trends between the EU and other major markets? How will the ongoing geopolitical tensions impact global apparel trade flows? What strategies can apparel retailers and manufacturers adopt to thrive in this uncertain environment?
By addressing these questions, industry stakeholders can develop effective strategies to mitigate risks and capitalize on emerging opportunities.
Leading vertically integrated denim manufacturer Soorty teamed up with key players including The Lycra Company, Lenzing, Tonello and Officina+39 to drive innovation in the fashion industry.
The collaboration was finalised at an event titled, ‘Collectively Better: Shaping Future Possibilities,’ that brought together industry leaders with a shared vision to transform the supply chain into a value chain. The event showcased collaborations aimed at creating a more environmentally, socially, and economically sustainable future for fashion.
At this event, Soorty unveiled a new shaping technology called ‘ShapeSync’, that allows designers to target specific areas using Lycra's patented technology to provide discreet shaping and stretchy comfort. The technology offers lift and support by combining Lycra's FitSense with Soorty's advanced garment treatment processes.
Ebru Ozaydin, Global Strategic Marketing Director –Denim, Wovens, and Ready-to-Wear, describes this technology as a ‘magic fiber’ created by merging Lycra's dual-core yarn structure with thermo-responsive fiber technology. This technology allows for targeted heat activation, creating a ‘locking’ memory of the shaping activation without damaging the Lycra fiber or altering its composition.
Additionally, Soorty and Lenzing presented a capsule collection titled, ‘Wildflower,’ that featured indigo modal for deeper hues and Ecovero Refibra for a circular-minded option. Accoridng to Tuncay Kilickan, Head-Global Business Development-Denim, Lenzing Group, the collection emphasises on circularity and durability.
The event also showcased Soorty’s vertically integrated setup with Officina+39's smart chemicals and Tonello's machinery. The collection included six Soorty fabrics made into garments utilising Officina+39’s Novascraper Indigo, Novastone Nebu enzyme, and Smart Bleach technology for nebulised systems, as well as the Oz-One Powder treatment for eco-friendly bleached or acid-washed looks.
Further, the event featured a trends presentation by design consultant Miles Johnson, who collaborated with Soorty on a circular denim collection earlier this year. A alumni of Patagonia alum, Johnson identified three emerging concepts: organic denim made for movement, timeless Americana pieces, and a reframing of Canadian tuxedos along with a warm embrace of gray denim.
The textile industry has expressed its disappointment at the Budget 2024-25 presented yesterday by Finance Minister Nirmala Sitharaman. The budget fails to reduce the duties on imported raw cotton and polyester fiber as demanded by the textile industry, says Sanjeev Arora, Member of Parliament, Ludhiana.
The budget also does not fix the minimum import rate for all HSN codes for Chinese fabrics, thus failing to provide any reprieve to the ailing Textile Industry facing issues like rising unemployment and growing NPA accounts.
Further, the budget also fails to fulfill the demands of the tax payers, adds Arora.
