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"US men’s underwear and women’s lingerie market will witness significant growth over 2015 to 2021, owing to increased proliferation of modern retail formats such as supermarkets, discount stores, and pharmacy stores; rising personal income of US households; rising fashion consciousness, change in lifestyle, and rising awareness regarding health & fitness and personal hygiene among men and women in the country, says a report by Persistence Market Research."
US men’s underwear and women’s lingerie market will witness significant growth over 2015 to 2021, owing to increased proliferation of modern retail formats such as supermarkets, discount stores, and pharmacy stores; rising personal income of US households; rising fashion consciousness, change in lifestyle, and rising awareness regarding health & fitness and personal hygiene among men and women in the country, says a report by Persistence Market Research. On the other hand, high competition due to the presence of a relatively high number of global and local intimate apparel manufacturers is expected to be the major restraining factor for the growth of the US men’s underwear and women’s lingerie market during the forecast period.
According to the latest market report published by Persistence Market Research, ‘US Market Study on Men's Underwear and Women's Lingerie: Driven by Proliferation of Modern Retail Format and Online Store during the Forecast Period’, the online store segment is expected to be the most valuable segment in terms of revenue throughout the forecast period. The US men’s underwear market is estimated at $3,236.4 million in 2015, and is expected to register a CAGR of 5.1 per cent over the forecast period. On the other hand, the US women’s lingerie market revenue is anticipated to expand at a CAGR of 5.4 per cent from 2015 to 2021.
Boxers to gain significant share
The boxer brief segment is expected to remain dominant throughout the forecast period, with high revenue contribution. By the end of 2021, the boxer brief segment is expected to hold a share of 34.9 per cent in volume terms. In terms of size, XXXL size segment is expected to expand at the highest CAGR over the forecast period. However, in 2014, revenue generated by L size segment was higher as compared to other segments. On the basis of the price range, the mid-range segment is anticipated to contribute highest in value terms by 2021. By age-group, the 65+ segment is expected to generate maximum revenue by 2021 in terms of value. On the basis of the distribution channel, online store segment revenue and volume is anticipated to register remarkable CAGRs over the forecast period.
Data segmentation
Based on product type, brassiere segment is expected to register the highest CAGRs in terms of both value and volume between 2015 and 2021. By size, the medium segment is projected to contribute highest over the forecast period. On the basis of the price range, premium range segment revenue is expected to register a CAGR of 6.8 per cent over the period 2015–2021. On the basis of age-group, 65+ segment accounted for 19.7 per cent revenue share in the US women’s lingerie market in 2014, which is projected to expand at a CAGR of 3.9 per cent from 2015 to 2021.
"The 48th edition of Hong Kong Fashion Week for Fall/Winter which concluded this week hosted 15,000 buyers from 77 countries during the four-days. HKTDC Deputy Executive Director Benjamin Chau noted the fashion industry is facing immense challenges amidst economic and political uncertainties and lacklustre retail sales. “In spite of that, Hong Kong companies are versatile and with e-commerce developing steadily, companies can capture the opportunities to turn the situation around. "
The 48th edition of Hong Kong Fashion Week for Fall/Winter which concluded this week hosted 15,000 buyers from 77 countries during the four-days. HKTDC Deputy Executive Director Benjamin Chau noted the fashion industry is facing immense challenges amidst economic and political uncertainties and lacklustre retail sales. “In spite of that, Hong Kong companies are versatile and with e-commerce developing steadily, companies can capture the opportunities to turn the situation around. At this year's Fashion Week for Fall/Winter, buyer numbers from Italy, Iran, Germany and Israel saw good growth. This shows that buyers from certain regions are not as cautious as expected and their sourcing sentiment is gradually improving.”
Upbeat buyers from emerging markets
Buyers from emerging markets demonstrated a more positive sourcing sentiment at the fair. Muhammad Yasin, Owner of United Arab Emirates’-based company Imperial Clothing FZE, said he had visited more than a hundred exhibitors on just the first day of the show, and identified about 15 potential suppliers from Hong Kong, the Chinese mainland, Vietnam and Pakistan. He expected to work with two of the companies and place initial orders worth about $10,000.
Israeli buyer Moshe Silverstain said that, after the fair, he would visit some of the supplier factories in Nanjing and expected to place orders for 12,000 raincoats and 20,000 denim trousers. Russian company Forward, which supplies sports uniforms for Russian national teams, visited the fair. The company’s Head of Logistics Department, Ruben Nariyants, said his company had found three potential suppliers from the mainland. To facilitate smooth delivery to Russia, Nariyants said his company is willing to offer logistics assistance; and he expected to finalise cooperation arrangements soon.
Hong Kong’s designer collections in demand
Hong Kong Fashion Week has long been a launch pad for up-and-coming young designers to showcase their designs to international buyers. This year, the HKTDC organised two Fashionally Collection shows to spotlight emerging local designers from 14 fashion labels. Buyer Takayuki Kubota from renowned Japanese fashion group HP France said he had found suitable Hong Kong designer collections through the Fashionally Collection shows and expected to place initial orders of five to ten styles per brand. He was glad that Hong Kong designers were willing to accept small-quantity orders. Singaporean buyer and designer Samuel Wong said customers in Singapore are receptive to designer brands. He attended the fair to source designer collections and was in talks with Hong Kong label MODEMENT for its women’s and men’s apparel.
Online retailers a new force
Korean department store Shinsegae which opened an e-shop was there too. Mae Hong, the company’s Buying Manager, said she came to Hong Kong Fashion Week for the first time to look for blouses and knitwear for kids and adults and found three potential suppliers and was in advanced talks with them. She was hoping to buy at least 1,000 pieces per item. Nitin V Tewari, Senior Manager at Flipkart also visited the fair for the first time. With fashion being their biggest business segment, he hoped to find new brands and OEM manufacturers and identified a number of suitable bags and sportswear brands. He anticipated purchasing between $50,000 to $100,000 per order.
Inspiring fashion seminar
Zalora’s Head of Acquisition, Giovanni Maria Musillo, spoke at the seminar titled ‘Zalora: Navigating the Wave of Omni-Channel Retailing’ and shared keys to success and opportunities in omni-channel retailing. “Smart phone penetration in Southeast Asia is set to exceed 100 per cent by 2019 and that is conducive to e-commerce development. It is also expected that the market share of fashion in e-commerce would double from four per cent in 2015 to eight per cent in 2019. All these signify immense business opportunities. With the ‘Korean wave’ sweeping across Asia and Europe in recent years, ZALORA is also actively sourcing different Korean brands to further capture the opportunities,” he said.
Hong Kong Fashion Week for Fall/Winter saw more than 1,500 exhibitors from 21 countries and regions to showcase the latest fashion collections of international brands, garment, accessories, fabrics and sewing supplies. More than 20 fashion events were organised during Fashion Week, including 10 fashion shows as well as industry seminars and networking activities. The Hong Kong Fashion Week for Spring/Summer will be held from July 10-13, while the second edition of Centrestage will run from September 6-9.
The first edition of the Textyle-Expo organized by SARL CGCOM Event will open to public on April 2 at Oran, Algeria. The four-day fair that ends on April 5, is expected to attract excellent opportunities for the Algerian textile sector to establish new business contacts and break into new markets.
The Expo, which is under the patronage of the Algerian minister of industry and mines, is the first international fair for textiles, leather & fashion in Algeria. The Fair will be a one-stop destination for exhibitors to identify new customers and offer good deals and also find Algerian and foreign partners for investment. On the other hand, visitors will get to meet professionals who best match with their requirement.
All members of the international and national textile industry viz manufacturers of machinery and equipment, specialists of innovation and transformation, producers of raw materials and finished products, wholesalers and distributors will attend the Expo. The high-profile exhibition will deal with all processing stages of production, from raw materials and leather through machines to semi-finished and finished products, designers and distributors. The range of textile products offered will include both home textiles, such as bed linen, tablecloths or curtains, and clothing for men, women and children as well as garment accessories. Countries that have confirmed their participation in the Expo are Algeria, China, Pakistan, India, Bangladesh, Italy, Turkey and Tunisia.
Along with the actual exhibition, the Textyle-Expo is set to offer numerous interactive seminars and meetings to share experiences and ideas in the field of textile, latest fashion trends and investment opportunities in Algeria. Besides this, the fair will also host a fashion show presenting new collections of exhibitors and designers, during which the major brands of ready-to-wear will display their products.
A new study by non-profit organisations Fair Action and Future in Our Hands has targeted H&M for not doing enough to prevent discrimination of Syrian migrants and refugees working in their supply chains in Turkey. The report also takes aim at other Nordic fashion brands like Lindex, KappAhl, Gina Tricot and Varner.
As the world's third-largest supplier of clothing after China and Bangladesh, Turkey is also the third biggest non-European exporter of clothing to Sweden and Norway. It is also an important sourcing location for many fashion retailers including H&M.
Although Syrians can legally work in Turkey, data indicates that only 7,000 of the estimated 400,000 Syrians who work there have been able to obtain work permits. This means most Syrian workers are undocumented that makes them prone to working long hours in Turkey’s garment factories coupled with unsafe conditions and wages far below the minimum wage. Adding to this is how Syrians are less likely to complain about low wages and poor working conditions out of fear of losing their only source of income, and because of a lack of access to employment contacts and social security. The study also found that a few Syrian refugees working in the Turkish suppliers’ factories of the retailers mentioned.
The fashion brands often liaise with a third-party organisation to conduct audits at their supplier’s factories which could lead to a conflict of interest. According to the study, the five retailers’ current monitoring processes do not offer an accurate estimate of the exact number of Syrian refugees working in their supply chain in Turkey.
H&M and Varner have taken initiatives to address the issue while Lindex has just begun to do so. Future in Our Hands says, Gina Tricot and KappAhl have not done so yet.
As major British apparel retailer Next Plc slashed its work order volume, Bangladesh has already started feeling the pinch of Brexit, claims a senior official of a sourcing company. The UK is the third largest garment export destination for Bangladesh after the US and Germany.
Next, is the largest clothing retailer in the UK. It had planned to buy about $260 million worth apparels from Bangladesh in 2016. But in the end, the clothing, footwear and home products retailer sourced about $180 million of garment items, it is understood. Next usually purchases $10-$20 million more than its annual target. Last year was an exception. Next sources clothing worth more than $500 million from Bangladesh in two ways: either directly from garment factories or indirectly through sourcing companies. The purchase volume of Next through third party vendor agencies might have also shrunk last year.
Simon Wolfson, CEO of Next, held a meeting with suppliers in Bangladesh on December 22 last year to inform them about the challenging landscape it was staring at. Established in 1982, Next has around 750 stores, of which 550 are in the UK and Ireland. In 2016, its total sales stood at £4.1 billion, up slightly from the previous year. In fiscal 2015-16, Bangladesh's garment exports to the UK soared 21.37 percent to $3.52 billion, reads a data of the Export Promotion Bureau.
Indian textile industry wants the next Union Budget to reduce the excise duty on manmade fibers and bring it on par with that of cotton. The industry has been demanding a level-playing field with respect to cotton for a long time now and some rationalisation is expected from budget 2017-18. The argument is that garments produced through manmade fibers are primarily used by the economically weaker sections of society.
The manmade fiber requirement of the Indian textile industry is expected to jump by at least five times by 2025 from what it is now. Yarns made of polyester and synthetics are in good demand. Fibers like nylon and polyester have an excise duty of 12.5 per cent while for other yarns like cotton the excise duty is negligible.
The industry also wants a 20 per cent excise duty subsidy on handicrafts and handloom sector goods destined for export to the US and East Europe. A long term plan, says the industry, to boost textile exports from India which would enable India to pull ahead of China by 2020 would help. GST also comes into the picture. Since fabrics in the unorganised sector are not covered under excise, the question is how fabrics will be brought into the GST chain.
Austria-based Lenzing produces premium sustainable cellulosic fibers including tencel, viscose and modal in production sites around the world, including the United States, Europe and Asia. The company produces 9, 65,000 tons of fiber for the global textile and nonwoven markets.
Lenzing is setting up a facility in the US for producing tencel fibers. The new facility will have a capacity of 90,000 tons of fiber. Once completed, the new facility will be the largest tencel fiber plant in the world. The facility is scheduled to start production in 2019.
Lenzing's current global tencel capacity is 2, 22,000 tons a year. The new plant will increase total tencel fiber capacity by more than 50 per cent. The company’s target is to earn 50 per cent of its revenue from specialty fibers by 2020.
Lenzing has a focus on profitable growth based on environmentally friendly specialty fibers. The company will expand its production capacities for specialty fibers. It will also expand and modernize its existing dissolving wood pulp production.
Additional new specialty fiber capacities of around 35,000 tons will be added over the next two and a half years. The aim is to increase dissolving wood pulp production from 56 per cent to 75 per cent of the group’s requirements for the production of botanic cellulose fibers by the end of the decade. The modernization will increase efficiency of the plants.
Indian handicrafts exports rose 8.3 per cent in the April to December period of this fiscal year from a year ago. Usually the last quarter does see a lot of handicraft exports but it’s possible that handicraft exports will rise ten per cent in 2017-18 over the current fiscal year. Even the country’s overall merchandise exports during the April to December period saw only a marginal rise of 0.75 per cent from a year earlier.
Considering exports in the overall textile and garment sector have witnessed a contraction in recent months, the performance of this segment is noteworthy. Attractive designs, quality products and aggressive promotion have been instrumental in boosting handicraft exports in recent years. Hit hard in the immediate aftermath of the global financial crisis in 2008, India’s handicraft exports bounced back in recent years, as outbound shipments more than doubled over the last five years, exceeding the growth in the country’s overall merchandise exports.
The US and the EU account for more than a half of India’s handicraft supplies. Handicraft exports have consistently exceeded the target set each year since 2009-10. While overall merchandise exports continue to suffer in recent years due to the gloomy external environment, the handicraft segment has bucked the trend.
In order to promote the fashion sector in Italy, the Italian government has allocated €35 million to the Italian Trade Agency (ITA), Industria Chimica Emiliana (ICE) . Confirming this, ITA President Michele Scannavini said this is a 45 per cent increase in resources, compared to that of 2016. This fund trade shows, multichannel marketing and distribution, expanding ‘Made in Italy’ brands into the world's most important department stores and e-commerce.
Another difficult year is predicted for Italian fashion throughout the world. But there is only one winning strategy to overcome stagnant sales, geopolitical tensions, and looming protectionism: play aggressively. This means investing, internationalising and innovating Industry 4.0 factories.
Minister for Economic Development Carlo Calenda is pushing for the fashion industry to adapt to rapidly-changing markets and it will do so with the government's help. Money isn’t the problem, the projects are, the minister says.
Product finishers, weavers and thread makers are all part of what Florence Center for Italian Fashion (CFMI) President Andrea Cavicchi calls Italy’s immense fashion expertise heritage. The CFMI controls trade show firm Pitti Immagine, which should be defended by all means.
Due to increased adulteration with substances like comber noil and other cotton waste by Gujarat’s ginners, textile mills in Tamil Nadu have drastically cut back cotton procurement from Gujarat in favour of states like Telangana and Maharashtra.
The Southern India Mills’ Association (SIMA) has also written to the Union textile ministry seeking intervention in this regard. Till 2015, mills of Tamil Nadu used to procure about 50-60 lakh bales from Gujarat alone. Last year, owing to adulteration, procurement was reduced by almost 60 per cent and shifted to other states. This year, a similar trend is seen. Probably the practice of adulteration is only followed by 10 per cent of ginners in Gujarat. But SIMA is worried about farmers in Gujarat. If prices drop because the products are not quality-compliant, what the poor farmers will do, asked K Selvaraju, secretary general of SIMA.
Interestingly, prices for cotton waste like comber noil which is used in large quantities for currency printing and medical textiles, have also seen an increase over the last couple of months. From Rs. 60 per kg in October, cotton waste is now sold at Rs. 80 per kg. Several mills in Tamil Nadu allege this is due to increased demand by ginners in Gujarat, who are looking to mix the waste with virgin cotton. More than 50 per cent of the cotton used by mills in Tamil Nadu are from Gujarat.
Meanwhile, ginners in Gujarat aren’t worried about Tamil Nadu’s mills shifting purchase orders. As Dilip Patel, President, All Gujarat Ginners’ Association said only 20 per cent of cotton produced in Gujarat is sent to mills of South India. Earlier, demand was more now consumption by local mills has increased along with export orders. By later this year, about 40 lakh spinning units are expected to come up in Gujarat alone, which will increase the state’s consumption to 65 lakh bales.
