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KhandakerRafiqul Islam, Senior Vice President, BGMEA has been appointed as the new president of the Bangladesh Garment Manufacturers Association (BGMEA). He will replace SM Mannan Kochi, Past President, who resigned from his position citing personal reasons.
Additionally, Abdullah HilRakib, Vice-President has been named as the new senior vice-president, while Asif Ashraf, Director will take over as vice-president.
Rafiqul Islam is currently engaged as the managing director of the Designtex Group while Rakib leads Team Group as its managing director, and Ashraf is the managing director of Urmi Group.
Kochi will continue to remain as a director on the association’s board. Kochi and his panel took charge at the BGMEA's 41st Annual General Meeting (AGM) for the 2024-2026 term on April 6 this year, after winning all 35 directorship posts in the BGMEA biennial election held on March 9. However, on Aug 12, a group of BGMEA members demanded the resignation of Kochi and his board, accusing them of controversial actions during the recent students' quota reforms movement.
The members also criticised the BGMEA's failure to provide adequate support to its members who faced operational challenges during the turmoil following the change in government.
InamulHaq Khan Bablu, Former Director, BGMEA, alleged. Kochi's board assumed power through vote rigging and a fraudulent voter list. He also implicated Salam Murshedy, Member of Parliament, Awami League, SiddiqurRahman, Secretary, Industry and Commerce Affairs and MdAtiqul Islam, Former Mayor, -Dhaka North City Corporation in the alleged vote manipulation.
In an innovative and bold move, Nike has partnered with Lego to introduce an innovation sportswear collection that would be designed to inspire creativity and self-expression. The collection will blend Lego’s iconic playfulness with Nike’s cutting-edge performance wear,
The partnership leverages the strengths of both brands. It merges Lego’s imaginative building blocks with Nike’s relentless focus on sport and performance. Set to feature vibrant, playful designs embodying Lego’s distinctive aesthetic, the collection will offer athletes and fans a fresh way to showcase their personal style.
For sports professionals, sponsors, and brand managers, Nike’s initiative highlights a strategic shift toward experiential and lifestyle branding, particularly when targeting creativity-driven Gen Z consumers. By incorporating Lego’s elements into its designs and brand experiences, Nike does not aim to just launch products, but create an immersive brand journey that seamlessly blends fun, creativity, and high performance.
This collaboration showcases how strategic alliances can diversify a brand’s portfolio and reach new audiences, reinforcing Nike’s position as a leader in both the sportswear and lifestyle markets.
Apparel brand Bossini International narrowed its H1, FY25 net loss to HK$52 million ($6.7 million) despite the company’s revenue declining by 11.2 per cent to HK$265.1 million due to an economic slowdown.
This improvement in the company’s performance was attributed to its strategic cost control measures and the closure of underperforming stores in mainland China.
During the period, Bossini’s revenue from mainland China declined by 34 per cent to HK$49 million, reflecting the impact of the company's decision to close loss-making stores in the regions. Revenues in Hong Kong and Macau decreased by 3 per cent to HK$188 million, indicating a more stable but still challenging market environment. Meanwhile, Singapore's revenue also dipped by 7 per cent to HK$28 million, continuing the downward trend observed across its key markets.
At the end of the reporting period, Bossini International operated 427 stores as against 519 stores operated at the same time the previous year. This reduction in store count underscores the company's focus on optimising its retail footprint by shutting down non-performing locations, particularly in mainland China, to curb losses and improve overall profitability.
Amid these challenges, Bossini International is directing its efforts towards rebranding its core brand, Bossini X. The rebranding strategy encompasses several key areas: redefining brand positioning to better align with current market trends, expanding and refining product categories, adjusting pricing systems to be more competitive, and diversifying sales channels to reach a broader customer base. These initiatives are aimed at revitalising the brand and positioning it for future growth, even in a challenging economic environment.
Freudenberg Performance Materials Apparel (Freudenberg Apparel) will showcase its sustainable interlinings, canvas, thermal insulations, and linings from the House of Sustainability at Apparel Sourcing Week 2024.
To be held from Aug 28-29 in Bengaluru, the Apparel Sourcing Week highlights the dynamic apparel sourcing landscape in India.
To be located at booth B10, Freudenberg Apparel will unveil its latest innovations in shirt interlining technology with the RCY 99xx series, offering a range of weights from 30 g/sq m to 155 g/sq m. Crafted for modern fabrics that preserve the natural hand feel, texture, and shape, this series adds a creative dimension to shirt designs. Additionally, the RCY 39xx series, with weights ranging from 70 g/sq m to 167 g/ sq m, will offer a cotton-like hand feel, comparable to traditional cotton interlinings. Made with recycled PET (rPET), it ensures durability and low-temperature fusing without visible impurities.
In the fashion segment, Freudenberg will present the MTW series of bi-elastic twill interlinings, known for their strong bond, resilience, and excellent shape retention even after multiple washes. These features make them ideal for washable jackets, enhancing garment durability and longevity. The GBE series will also be showcased for its superior bonding and elasticity, making it perfect for hydro-expansion fabrics like CV and spandex, with up to 30 per cent stretch adaptability.
Freudenberg Apparel will also display a comprehensive range of interlinings from its Active Range, tailored for active sportswear. Highlights include rTPE base content interlinings, available in weights from 40-90 g/sq m, suitable for fabrics used in leggings, sports bras, and casual wear.
Additionally, the company will present film bonding solutions for seamless applications in bras, briefs, and tees, emphasising strong shear bonds that eliminate the need for stitching. In the outdoor sportswear segment, Freudenberg will showcase a variety of sustainable thermal insulations and linings, including rPET, biodegradable thermal insulations, and rPET linings, underscoring the company’s commitment to sustainability.
Freudenberg Apparel's participation in Apparel Sourcing Week 2024 reflects its strong commitment to the Indian market and the rapidly growing apparel manufacturing sector in South Asia. With 26 years of successful operations in India, the company is expanding its production capabilities to better meet customer demands.
The global silk market is projected to grow at approximately 9.24 per cent CAGR from 2024-28, as per a report by Technavio. During this period, the value of this market is likely to expand by 5.00 billion, as per the report.
This growth will be primarily driven by the increasing demand for silk in the textile industry, alongside a rising trend in research and development focused on spider silk. However, challenges such as health hazards associated with silkworm rearing pose obstacles to the market's expansion.
Known for its exceptional strength, resilience, and flexibility, Spider silk has become a focal point of intensive research due to its remarkable toughness. In this regard, KraigBiocraft Laboratories has secured the exclusive rights to patented genetic sequences for silk proteins. These advancements hold the potential for creating ballistic-resistant materials that are lighter, thinner, and more flexible than steel. As research activities in spider silk advance, the global silk market is expected to experience significant growth, with spider silk's unique properties making it an ideal material for life-saving applications across various industries.
The silk industry is also seeing a surge in trends, with sundresses being a popular choice among fashion-forward consumers. Driven by the demand for sericulture by-products like dipeptides and tripeptides, Silk production continues to expand.
These products are being increasingly used in the pharmaceutical, nutraceutical, and cosmetics industries. Besides, the silk protein market is also growing, with applications spanning textiles, surgical sutures, and personal care products.
India's domestic textile market is projected to grow to $350 billion by 2030 while textile exports are poised to reach $65 billion by FY26, according to a report by Invest India.
Valued at approximately $165 billion in 2022, the domestic textile market is expected to expand at a CAGR of 10 per cent by the end of the decade.
Beyond textiles, India has become the second-largest global manufacturer of personal protective equipment (PPE). With over 600 certified PPE-producing companies, the country is well-positioned in a market that is expected to surpass $92.5 billion by 2025 growing from $52.7 billion in 2019.
The textile industry also provides direct jobs to 45 million people and supporting an additional 100 million in related sectors. Cotton cultivation alone sustains around 6 million farmers and engages 40-50 million individuals in processing and trade.
Several factors contribute to the sector's growth, including India's advanced infrastructure, a focus on technical textiles driven by demand from industries like automotive, healthcare, and construction, and the availability of raw materials and skilled labor. Competitive manufacturing costs and a burgeoning retail landscape, including the rise of e-commerce, further enhance the sector's appeal.
To boost this growth, the Indian government has launched the Production Linked Incentive (PLI) Scheme, allocating Rs 10,683 crore to scale up the production of man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. Under the PLI scheme, 64 applications have been approved, with a proposed investment of Rs 19,798 crore, an expected turnover of Rs 1,93,926 crore, and projected employment for 2,45,362 individuals. Significant investments are planned in states such as Madhya Pradesh, Uttar Pradesh, and Rajasthan.
Foreign Direct Investment (FDI) in the textile sector remains strong, with 100 per cent FDI permitted under the automatic route. From April 2000 to March 2024, India attracted $4.47 billion in FDI in textiles, including dyed and printed fabrics.
India's textile sector is vast and varied, with the country being the second-largest producer of cotton and jute globally, as well as the second-largest producer of silk. Notably, India accounts for 95 per cent of the world's hand-woven fabric, highlighting its unique position in the global textile industry.
Citing insufficient progress in sustainability and human rights by brands like H&M, Zara and Asics, sustainability-focused asset manager, ASN Impact Investors has divested all its holdings in clothing companies. This move makes ASN the first Dutch investor to exit the fashion industry.
Driven by competition with fast-fashion giants like Shein and Temu, the fashion industry is caught in a cycle of relentless consumerism, says San Lie, Director, ASN. These companies are an obstacle to sustainability as they produce even faster than traditional brands, he explains.
The fashion industry is one of the world’s most polluting, with significant contributions to greenhouse gas emissions and environmental degradation. Polyester, a key material in fast fashion, exacerbates the microplastic pollution problem by releasing tiny plastic particles during washing.
Exemplified by brands like Shein and Temu, superfast fashion has also disrupted the market for second-hand clothing in the Netherlands with about 55 per cent of the roughly 1 billion clothing items discarded annually by Dutch residents ending up in incinerators, he adds. .
Given the industry's and consumers' apparent unwillingness or inability to change, government intervention is necessary, opines Lie.
The global cotton market has been experiencing a persistent demand decline for over two years, causing a ripple effect on pricing and the overall industry. . The demand slump is due to several factors like: economic uncertainties, shifting consumer preferences, and the lingering impact of the COVID-19 pandemic among others.
Reasons for demand slump
Several factors have contributed towards the downward trajectory of global cotton demand.
Economic slowdown: The global economy has been grappling with various challenges, including inflation, rising interest rates, and geopolitical tensions. These uncertainties have led to a decrease in consumer spending particularly in major consuming countries like China and a subsequent decline in demand for cotton-based products, this has significantly impacted the demand for cotton.
Shift in consumer preferences: The growing popularity of synthetic fibers, which are often cheaper and easier to maintain, has eroded the market share of cotton.
Trade tensions: Global trade disputes like the one between US and China and tariffs war have disrupted supply chains and added uncertainty to the market, impacting demand and pricing. Also, the ongoing war in Europe and Asia too has affected supply and demand.
Lingering impact of the pandemic: The pandemic disrupted supply chains and consumer behavior patterns. While some recovery has been observed, its lingering effects continue to influence the cotton market.
Table: Changing cotton demand and prices
|
Year |
Global cotton demand (million metric tons) |
Year-on-year change (%) |
Average cotton price ($/lb) |
|
2020 |
23.5 |
-10.2 |
0.68 |
|
2021 |
24 |
+2.1 |
0.92 |
|
2022 |
23 |
-4.2 |
1.19 |
|
2023 (Estimated) |
22.5 |
-2.2 |
0.8 |
Source: International Cotton Advisory Committee (ICAC), USDA
The table highlights the steady decline in cotton prices over the past two years. This downward trend is likely to persist unless there's a substantial recovery in demand. The table indicates, the average price witnessed a sharp increase in 2022 due to supply chain disruptions and increased production costs. However, the downward pressure on demand has led to a subsequent decline in prices in 2023.
Consequences for the cotton industry
Falling demand and lower prices have had far-reaching implications for the cotton industry. For farmers it means lower income and profitability, potentially leading to crop diversification or a decline in production. Textile mills are struggle to maintain margins due to lower demand for cotton-based products and fluctuating raw material prices. And retailers for price increase results in more competition and pressure to offer discounts to attract consumers.
While the current scenario poses challenges for the cotton industry, there are potential opportunities for recovery as well.
Innovation and sustainability: Focusing on developing new cotton products with enhanced functionality and sustainability credentials could reinvigorate demand.
Market diversification: Exploring emerging markets and expanding the range of cotton applications could help offset the impact of declining demand in traditional sectors.
Collaboration: Stronger collaboration between industry stakeholders, including farmers, textile manufacturers, and retailers, is crucial to address the challenges and capitalize on opportunities.
Even as the global cotton market is navigating a challenging period marked by a prolonged decline in demand, leading to depressed prices and disruptions throughout the supply chain; the industry can adapt and recover by focusing on innovation, sustainability, market diversification, and collaboration.
The Indian textile market witnessed moderate growth in Q1 FY24-25. Domestic demand remained relatively stable, supported by factors such as festive season sales and government initiatives to promote the textile industry. However, export demand was subdued due to global economic uncertainties and a slowdown in major markets.
Mixed performance
While some companies showed resilience others recorded a dip in revenue. The companies that showed good results were driven by factors such as strong domestic demand, capacity expansion, and a focus on high-margin products.
Table: Top performers
|
Company |
Revenue Growth (YoY) |
Net Profit Growth (YoY) |
Key Factors |
|
Vardhman Textiles |
12% |
18% |
Strong domestic demand, cost control measures |
|
KPR Mill |
15% |
22% |
Capacity expansion, improved product mix |
|
Welspun India |
10% |
14% |
Focus on home textiles, export growth |
Table: Under performers
|
Company |
Revenue Growth (YoY) |
Net Profit Growth (YoY) |
Key Factors |
|
Raymond |
-5% |
-12% |
Weak demand in apparel segment, high input costs |
|
Arvind |
-3% |
-8% |
Slowdown in export markets, inventory buildup |
|
Trident |
-2% |
-6% |
Pressure on yarn prices, rising cotton costs |
The under performers faced challenges due to factors like weak demand, high input costs, and a slowdown in export markets. For example, leading textile manufacturer Arvind reported a 37.25 per cent decline in consolidated net profit at Rs 43.73 crore for the first quarter ended June 30, 2024, on account of workers' strike and general elections. The company had posted a net profit of Rs 69.70 crore in the April-June quarter a year ago.
The textile market witnessed mixed performance in Q1 FY 2024-25. The domestic market remained robust, driven by factors such as festive demand, government initiatives, and rising disposable incomes. At the same time export market faced headwinds due to factors such as a slowdown in key markets like the US and Europe, and increased competition from countries like Bangladesh and Vietnam.
Going forward, the outlook for the next quarter and the full financial year 2024-25 remains cautiously optimistic. Domestic demand is expected to remain steady, while export demand may improve gradually as global economic conditions stabilize. The industry is likely to witness further consolidation and focus on innovation and sustainability.
The global apparel industry continues to face headwinds, with imports across key markets witnessing a significant decline. According to Wazir Advisors monthly report for August, ‘Apparel trade scenario in key global markets and India’, all major economies saw a reduction in apparel imports compared to the previous year.
Apparel Imports: A slump across key markets
June 2024 marked another month of decreased apparel imports for all key markets. The US saw a 6 per cent year-on-year (YoY) dip to $6.2 billion. The European Union (EU) experienced a more significant decline of 13 per cent, reaching $6.1 billion. The United Kingdom (UK) and Japan also witnessed contractions, with imports falling by 26 per cent to $1.4 billion and 6 per cent to $1.5 billion, respectively.
Meanwhile, apparel exports from China and Bangladesh have faced challenges. China, the world's largest apparel exporter, recorded a marginal 3 per cent YoY decrease in exports to $14.7 billion in July 2024. Bangladesh, another key player, saw a steeper decline of 17 per cent in exports to $3.4 billion in May 2024.
India's exports, a bright spot
However, even as major exporters faced a downturn, India bucked the trend with a remarkable 18 per cent YoY growth in apparel exports to $1.3 billion in July 2024. This increase underscores India's growing prominence as a competitive exporter in the global apparel market. A diversified product mix, and a focus on value-added products are the other reasons for India’s success.
Several factors are likely contributing to these trend.
Economic slowdown: The global economic slowdown, coupled with rising inflation, has dampened consumer spending on apparel, impacting demand in key markets.
Geopolitical tensions: Ongoing geopolitical tensions, such as the Russia-Ukraine war and trade disputes, have disrupted supply chains and trade flows, affecting apparel exports.
Shifting preferences: Changing consumer preferences towards sustainable and ethical fashion may be impacting sourcing decisions and trade patterns.
The overall decline in global apparel imports has significant implications for the industry. It is likely to put pressure on prices and margins for both exporters and importers. Moreover, it could lead to job losses and factory closures in countries that are heavily dependent on apparel exports.
As the global economy continues to navigate these uncertain times, it remains to be seen whether the apparel trade will be able to recover in the coming months. The ability of key markets to rebound from economic challenges and the effectiveness of measures taken by governments and businesses to support the industry will play a crucial role in determining the future trajectory of the apparel trade.
