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The already fragile global garment industry faces fresh challenges as tensions escalate between Iran and Israel. This adds another layer of disruption to a supply chain already strained by the Red Sea crisis and the war in Ukraine. The apparel industry being a complex web, and the Iran-Israel conflict presents a significant threat to its stability. Rising costs, declining demand, and shifting sourcing strategies could have long-term consequences for both producers and consumers. Analyzed below is the likely impact and the potential consequences of the conflict that’s threatening to loom larger.
Rising production costs, disruption in raw material supply
A full-blown war could send global oil prices soaring. This translates to higher shipping costs and production expenses for apparel manufacturers, especially in countries like Bangladesh that rely heavily on imports for raw materials and finished goods transportation. And the conflict could disrupt the flow of key raw materials like cotton and synthetic fibers. Iran is a significant producer of petrochemicals, essential for synthetic fiber production. Any disruption in supplies could lead to shortages and price hikes.
Consumer behavior and declining demand
The rising production costs will likely be passed on to consumers through higher garment prices. This could lead to decreased demand, especially in a period of economic uncertainty. Consumers, increasingly aware of ethical sourcing and global events, might become more cautious about purchasing apparel produced in regions with heightened geopolitical tensions.
Impact on sourcing strategies for fashion brands, retailers; near shoring to accelerate
Fashion brands and retailers are likely to diversify their sourcing strategies to mitigate risks. This could lead to a decline in orders for countries like Bangladesh, further impacting their garment industry. The trend of near-shoring, where companies source from geographically closer countries, might accelerate. This could benefit countries like Turkey and Vietnam, located closer to major European markets. Further, brands might increase their inventory levels to buffer against potential supply chain disruptions caused by the conflict.
The broader impact
Loss of Momentum for countries like Bangladesh, where apparel exports is a major foreign currency earner, it was just beginning to recover from the pandemic and the Ukraine war. This new conflict could derail their progress. The ongoing tensions could also hamper efforts to expand the garment sector's reach into emerging Middle Eastern markets like Saudi Arabia and Iran.
The value of illegal garments imported in to Indonesia is projected to have increased to $2.9 billion per year with around 3 million pieces imported every day, says Ian Syarif, Chairman-West Java branch, Association of Indonesian Textiles (API).
According to Syarif, this rise of illegal clothing imports is impacting domestic apparel sales in Indonesia. Apparel exporters in the country are currently being compelled to pay an import duty of Rp-20,000-70,000 per piece to sell their garments, notes Redma Gita Wirawata, Chairman, Indonesian Filament Fiber Association (APSyFI).
Against this, imported clothing is being sold on ecommerce websites at Rp 40,000-50,000. This is possible only if they have not paid import duties, adds Wirawata.
In a strategic alliance set to redefine color management in the textile industry, Archroma, a leading provider of sustainable specialty chemicals, and ColorDigital GmbH, the innovator behind DMIx textile supply chain digitalization, have joined forces. This collaboration will seamlessly integrate Archroma's Color Atlas, boasting 5,760 engineered color standards, into ColorDigital's DMIx platform.
By incorporating Archroma's Color Atlas into DMIx, fashion brands and suppliers gain access to an extensive library of color references, fostering unparalleled creativity while ensuring precision. Leveraging digital twin technology, DMIx streamlines color alignment across the design, sourcing, and production phases, slashing sampling costs and development time while enhancing color accuracy and product quality.
Central to this partnership is a shared commitment to sustainability. Archroma's Color Atlas hues comply with leading eco-standards, aligning with DMIx's ImpAct approach, which provides crucial environmental data on raw materials. This synergy empowers brands to select inputs that meet their sustainability objectives without compromising on color integrity.
Chris Hipps, Global Head of Archroma Color Management, emphasized the shared ethos, stating that Archroma takes a 'Planet Conscious' approach to color and aims to empower designers to make sustainable choices. Similarly, Gerd Willschütz, COO and Co-Founder of ColorDigital, highlighted the transformative potential of strategic color management in driving commercial success.
A highlight of the collaboration is the introduction of DMIx eXcite, an innovative hub for material and color trends. Through interactive mood boards, designers gain insight into upcoming trends, directly utilizing colors from Archroma's Color Atlas for enhanced creativity and efficiency.
This partnership not only streamlines color development and production processes but also underscores a shared commitment to environmental responsibility. Archroma's Color Management+ solution, featuring the Color Atlas, paves the way for a more sustainable future in textiles and fashion.
Kraig Biocraft Laboratories, Inc.strides forward in its quest for cutting-edge biomaterials as it commences spring production trials for its latest breakthrough, the BAM-1 hybrid. The trials, crucial to the Company's trajectory, are proceeding according to plan, marking a significant milestone in its production roadmap.
CEO Kim Thompson's direct oversight in Asia underscores the strategic importance of the BAM-1 parental strains' performance evaluation. Notably, meticulous health screenings reveal an unprecedented vigor and vitality among the silkworm colonies, attributed to the enhanced genetics and resilience of the BAM-1 strains.
The absence of disease signals a triumph for Kraig Labs, a testament to its commitment to excellence. Nirmal Kumar's contributions in knowledge transfer and rearing technology bolster this success, amplifying prospects for a record-breaking year in spider silk production.
Thompson's optimism resonates as he underscores the pivotal role of these trials in shaping the Company's future. With Kumar's on-ground support, Kraig Labs is poised for a breakthrough, aligning with its vision for commercial-scale spider silk production. As the industry eagerly awaits further developments, Kraig Biocraft Laboratories stands at the forefront of innovation, poised to redefine biomaterials as we know them.
YKK Corporation is embarking on a significant shift towards eco-friendly practices by introducing low-carbon aluminum into its production of zippers. This move marks a strategic step towards fulfilling its Sustainability Vision 2050, aimed at achieving climate neutrality.
Collaborating with Sumitomo Electric Industries and Sumitomo Electric Toyama, YKK has committed to purchasing alloy wires utilizing low-carbon aluminum, gradually transitioning from conventional materials.
Aligned with its ambitious sustainability goals, YKK aims to reduce greenhouse gas emissions across its supply chain. By adopting low-carbon aluminum for zipper production, the company endeavors to slash Scope 1, 2, and 3 emissions by significant margins by 2030. This initiative underscores YKK's dedication to mitigating climate change and fostering a more sustainable society.
Terry Tsukumo, Vice President of the Product Strategy Division at YKK Corporation, emphasizes the company's ongoing commitment to environmental responsibility. Tsukumo highlights YKK's multi-faceted approach, which includes integrating recycled and plant-based materials alongside the introduction of low-carbon aluminum.
This concerted effort reflects YKK's determination to minimize its environmental footprint while collaborating with partners to drive sustainability throughout the supply chain.
Nitin Spinners Ltd has clinched prestigious awards at the Cotton-Textiles Export Promotion Council (Texprocil) for its exemplary performance in export and employment generation. The company secured the following accolades for the years 2021-22 and 2022-23:
In 2021-22, Nitin Spinners received the Silver Trophy for achieving the second-highest exports of Cotton Yarn of Counts 50s and below in Category III.
In 2022-23, the company marked a significant achievement by bagging the Gold Trophy for the highest exports of Cotton Yarn of Counts 50s and below in Category III. Additionally, they received a Gold Plaque for leading in exports of Cotton Yarn of Counts 51s and above in Category I, and another Gold Trophy for top-notch performance in employment generation.
This recognition underscores Nitin Spinners' commitment to excellence and its pivotal role in bolstering India's textile export sector. The news buoyed investor sentiment, reflecting positively on the company's stock performance. Nitin Spinners Limited's shares closed marginally lower at Rs 351.80 on the Bombay Stock Exchange (BSE) following the announcement, after trading 11770 shares across 672 transactions during the day.
The fashion industry is notorious for waste. Unsold garments and excess fabric often end up in landfills. Fabric stock services are emerging as a potential solution, offering a platform for manufacturers and designers to buy and sell leftover materials. But is this a new trend poised to dominate, or a niche market with limitations?
Growth and potential
Data suggests a growing market for fabric stock services. A report by Textile Exchange suggests the global market for recycled textiles is expected to reach $21.8 billion by 2025. Fabric stock services offer a way to tap into this trend by giving pre-existing fabrics a second life.
Studies show, a growing interest in fabric stock services. Indeed, concrete sales figures are difficult to obtain due to the industry's fragmented nature, anecdotal evidence and the increasing presence of online platforms dedicated to fabric stock point towards a positive trend. Companies like Fabric Stock Exchange report a constant influx of new fabrics, indicating a growing pool of excess inventory.
A change driver
Direct comparisons between stock service sales and traditional manufacturing are challenging due to different business models. However, the rise of sustainability concerns and the ever-changing fashion landscape make stock services an attractive option.
Stock services offer a sustainable solution by giving these materials a second life. "We are diverting tons of fabric from landfills," says Michael Goldberg, CEO of Fabcycle, a prominent fabric stock service company. Veja, a sustainable sneaker brand, is a prime example of how stock services can work. Veja utilizes fabric stock services to source deadstock materials for their footwear. This allows them to create unique designs while minimizing environmental impact
As Sarah Jones, a fashion sustainability consultant points out, "Fabric stock services offer a win-win situation. Manufacturers can recoup costs from leftover materials, while designers gain access to unique fabrics at potentially lower prices, all while promoting sustainability." The push for sustainable practices and rising consumer demand for eco-conscious clothing are key drivers of this trend.
So what’s pushing this change? Sustainability is top reason as it reduces textile waste by giving leftover materials a second life. Cost-effectiveness is another driver as manufacturers can access high-quality fabrics at discounted prices. Reduced lead times is another lure, as stock services offer readily available fabrics, allowing for faster production cycles.
Currently, stock services primarily cater to small and mid-sized businesses, who benefit from access to premium materials without minimum order quantities. Also, sustainable designers source eco-friendly materials for their collections. The variety of fabrics available through stock services is vast. From natural fibers like cotton, linen, and wool to synthetic fibers like polyester and nylon and blends.
The future of fabric stock services
The future of fabric stock services holds a lot of promise. As sustainability concerns escalate and the fashion industry seeks more agile solutions, these services are likely to see continued growth. Additionally, advancements in online platforms and data analysis could further streamline the process, making it even more accessible.
However, challenges remain. Standardization and quality control across different platforms need improvement. Also, educating both manufacturers and consumers about the benefits of stock services is crucial for wider adoption. What’s more selection is limited. Stock services typically offer a broader range of colors and patterns for basic fabrics like cotton or linen. Finding specialty or high-end materials like silk or intricate lace might be challenging. Since stock relies on leftover materials, designers may have difficulty planning large-scale productions around specific fabrics
Overall, fabric stock services offer a compelling solution for a more sustainable and efficient textile industry. The traditional ‘manufacture and sell’ model will likely persist for large, mainstream fashion brands requiring consistent fabric availability. However, fabric stock services offer a complementary approach, promoting sustainability and fostering creativity within the fashion industry. As the industry evolves, these services are likely to play an increasingly important role.
Having established a firm presence in the Middle East, Dolce & Gabbana now aims to swiftly expand in the region by focusing on Saudi Arabia which has relatively lesser luxury retail spaces.
Dolce & Gabbana has significant opportunities to expand in Saudi Arabia as the luxury market there is projected to double by 2030. The brand currently operates four shops in Saudi Arabia. One of its latest ventures includes a sizable shop in Riyadh to offer a wide range of collection, including homeware and beauty products.
One of the brand's most ambitious projects includes a flagship store in the Bujairi Terrace Complex in Diriyah, Riyadh. The store will offer a comprehensive brand experience besides having an Italian-design inspired Café. It will feature an exclusive section of abayas, showcasing the brand's commitment to cultural diversity.
The 4th edition of the Fabrics Accessories & Beyond Show 2024 (FAB Show), hosted by the Clothing Manufacturers Association of India (CMAI), commenced with grandeur on April 15, 2024. Esteemed sourcing heads from renowned brands and retail majors, including Aditya Birla Fashion & Retail, Bestseller, Reliance Brands, Mufti, Pepe Jeans, Shoppers Stop, Soch, graced the event with their presence. The inauguration also saw the felicitation of regional trade associations such as The Southern Gujarat Chamber of Commerce & Industry and Bangalore Apparel Manufacturers Association, among others.
A premier convergence hub
Set against the backdrop of the Bombay Exhibition Centre (NESCO) in Mumbai, the FAB Show 2024, spanning from April 15 to 17, promises to be a pivotal event for the garments manufacturing supply chain. Over 200 fabric suppliers, leading accessories manufacturers, machinery suppliers, and service providers from across India converge to showcase the latest trends and innovations.
Catalyzing industry evolution
Mr Rajesh Masand, President of CMAI, expressed delight at the FAB Show's rapid ascent as the premier convergence hub for the industry. He emphasized its role in not just showcasing technological advancements but also in driving awareness about sustainability and understanding evolving consumer preferences. With over 4000 primary members of CMAI expected to attend, the event holds immense significance for shaping the future of the industry.
Driving sustainability initiatives
Amidst India's evolving textile landscape, a significant shift towards sustainability and eco-conscious practices is evident. The Sustainability Zone at the FAB Show serves as a beacon for promoting circularity and waste management innovations. Exhibitors showcase fabrics crafted from waste materials, highlighting CMAI's commitment to fostering sustainability within the garment industry.
Unparalleled networking opportunities
Naveen Sainani, Chairman of the FAB sub-committee, underscored the unmatched opportunities the FAB Show 2024 offers for industry vendors to connect with reputed buyers from India and abroad. Exhibitors present the newest fabric trends, providing brands with prime opportunities to cater to evolving consumer demands. The event also champions sustainability, reflecting CMAI's vision for a greener, more resilient world.
Showcasing regional excellence
A standout feature of the FAB Show 2024 is the Surat Pavilion, organized by the Southern Gujarat Chamber of Commerce & Industry (SGCCI). This pavilion brings together over 40 prominent fabric manufacturers from the region, including Grasim, Arvind, and Siyaram’s. Its presence reinforces the event's stature as a premier platform for the fashion and apparel industry.
Global participation
With expectations soaring high, the FAB Show 2024 anticipates a substantial turnout of more than 10,000 buyers and manufacturers from over 400 cities, along with international buyers from various countries including the USA, Bangladesh, and the UAE. This global participation underscores the event's significance on the international stage.
Dignitaries gracing the inauguration
CMAI dignitaries, including Rajesh Masand, President; Jayesh Shah, Vice-President; and Naveen Sainani, Chairman of FAB Show, among others, graced the inauguration ceremony. Their presence highlighted the collective commitment of industry leaders towards driving innovation and sustainability within the garment sector.
The FAB Show 2024 stands as not merely an exhibition but a testament to the industry's resilience, innovation, and commitment to sustainability. With a focus on fostering collaboration, driving awareness, and showcasing cutting-edge technologies, the event paves the way for a more vibrant and sustainable future for the garment industry.
Santoni plans to unveil its latest innovation – the SM8-TOP2ST at the upcoming ITM 2024 in Istanbul. This groundbreaking single jersey electronic circular knitting machine boasts 8 feeds and 2 points of selection needle-by-needle per feed, available in diameters ranging from 13 to 20 inches and in gauges 24, 26, and 28.
The pioneering mechatronic device of the machine transforms the Santoni SM8-TOP2V into the first-ever seamless knitting machine capable of producing garments with needle-by-needle/sinker-by-sinker selective terry, with full electronic selection of the sinkers. While retaining the core specifications and fabric possibilities of the TOP2V, this advancement empowers the machine to craft sculptured terry patterns with precision.
The resulting knitted tubular garments offer versatility in wear, with the option to don them conventionally with the terry on the inside, or to flaunt the terry on the outside by simply reversing them. The terry, whether nestled within or showcased outwardly, delivers both functional and aesthetic benefits.
Internally, the terry lends a cushioning effect, elevating softness, comfort, and breathability. Externally, it enhances the garment's visual appeal, adding an extra dimension to its aesthetics.
The selective terry capability opens doors to heightened value, particularly for technical garments, a glimpse of which will be showcased at ITM 2024. The accompanying images illustrate the intricate patterns achieved through precise needle positioning, underscoring the machine's prowess in creating tailored, high-performance apparel.
