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The global apparel trade is undergoing a significant transformation, says a recent report by Wazir Advisors. Titled ‘Apparel Trade Scenario in Key Global Markets and India’, the report offers a comprehensive analysis of the changing dynamics in the industry, highlighting key trends in imports, exports, and retail sales.
Imports on the rise
The report reveals that apparel imports in major markets such as the US and the EU have seen a slight increase in 2024 compared to previous year. This growth comes despite a challenging economic environment, marked by inflationary pressures and lower consumer confidence.
Table: Changing imports
|
Region |
2023 imports ($ bn) |
2024 imports ($ bn) |
YoY change |
|
USA |
78.8 |
73.8 |
1% |
|
EU |
86.1 |
67.9 |
-0.30% |
|
UK |
19.9 |
15.4 |
-9% |
|
Japan |
23.7 |
18.9 |
-6% |
Mixed report on exports
On the export side, the report reveals a mixed picture. While major suppliers like China and Vietnam have experienced growth in 2024, Bangladesh and India have seen their exports decline. This decline can be attributed to factors such as increased competition and rising production costs.
Table: Exports mixed results
|
Country |
2023 exports ($ bn) |
2024 exports ($ bn) |
YoY change |
|
China |
152.4 |
138.9 |
0% |
|
Bangladesh |
47.6 |
34.8 |
-9% |
|
India |
14.4 |
14.2 |
8% |
|
Vietnam |
33.4 |
30.6 |
10% |
India's perspective
The report highlights that India's apparel exports have shown a slight increase in 2024, despite the overall decline in exports. This growth can be attributed to the government's initiatives to promote the textile and apparel industry, as well as the increasing demand for Indian-made products in key markets.
The report concludes that the global apparel trade is undergoing a shift, with new suppliers emerging and existing suppliers facing increased competition. The report also highlights the importance of factors such as sustainability and ethical sourcing in the current market. Overall the report provides valuable insights into the changing dynamics of the global apparel trade. The report's findings suggest that the industry is in a state of flux, with both challenges and opportunities for businesses operating in this space.
Retail scenario
The report also gives an insight on the apparel retail market scenario especially in the US. The market is showing mixed signals, says the Wazir Advisors report. While apparel store sales have remained flat, home furnishing sales have seen a significant uptick. E-commerce sales, however, have experienced a slight dip.
Monthly apparel store sales in the US remained relatively flat in 2024 compared to 2023. This indicates a stable but not booming market, with consumers maintaining their spending levels despite economic uncertainties. In contrast, home furnishing stores have seen a significant sales rise. This suggests a shift in consumer spending habits, with more focus on home improvement and comfort.
Online sales of clothing and accessories saw a slight decline in 2024. This comes after several years of strong growth in the e-commerce sector, indicating a potential saturation of the online market.
Table: US retail sales
|
Sales Category |
2023 ($ bn) |
2024 ($ bn) |
YoY change |
|
Apparel Stores (Jan-Nov) |
196.4 |
196.5 |
0% |
|
Home Furnishing Stores (Jan-Nov) |
55.3 |
55.9 |
1% |
|
Online Clothing & Accessories (Q3) |
16.8 |
16.4 |
-2% |
The mixed trends in the US apparel retail market therefore reflect the complex economic conditions prevailing in the country. While stable apparel store sales indicate resilience in consumer spending, the decline in e-commerce sales suggests caution and a potential shift in consumer behavior. The growth in home furnishing sales could be attributed to factors such as increased focus on home improvement and nesting trends.
The rise of dark stores is transforming the e-commerce landscape, and the fashion and apparel sector is no exception. This analysis looks into the participation of this sector in the dark store model, its impact on e-commerce and traditional retail, and the potential for existing small apparel stores to become dark stores.
Fashion's growing presence in dark stores
While groceries remain the dominant category in quick commerce, fashion and apparel is emerging as a significant player. And it’s a growing trend as platforms like Zepto are expanding their dark stores to include apparel alongside electronics, beauty products, and other categories. While precise figures for fashion's share of the quick commerce market are scarce, anecdotal evidence and company statements suggest steady growth. Zepto, for instance, reports "steady growth and gaining momentum" in categories beyond groceries, including fashion.
Impact on e-commerce and small businesses
Dark stores are boosting e-commerce by enabling faster delivery times, a key factor in customer satisfaction and purchase decisions. This is particularly relevant for fashion, where immediacy and impulse purchases are common.
The impact on small apparel stores is twofold. First, dark stores pose a competitive threat by offering greater convenience and speed. Second small stores can potentially leverage the dark store model to expand their reach and compete more effectively.
Indeed, the prospect of converting existing small apparel stores into dark stores has many opportunities for brands. It helps to leverage existing locations for faster delivery in their immediate vicinity. It potentially reduces costs associated with in-store displays and customer service. It integrates offline and online operations, offering customers multiple touchpoints.
However, there are challenges as well as it requires investment in inventory management systems, order fulfilment processes, and delivery networks. Also, many small stores may lack the space for efficient order completion and storage. Moreover competing with established players with extensive networks and resources can be difficult for small stores.
Table: Data and projections
|
Aspect |
Current situation |
Potential impact |
|
Dark Store Growth |
Rapid expansion, with companies like Swiggy aiming to double their dark store area. |
Increased density of dark stores will bring faster delivery times to more customers. |
|
Fashion & Apparel Share |
Growing steadily, driven by demand for quick delivery of apparel and accessories. |
Could become a significant segment within the quick commerce market. |
|
Impact on Small Businesses |
Mixed; competition but also opportunities for collaboration and adaptation. |
Potential for revitalization if small businesses can integrate into the dark store ecosystem. |
Success story
US-based quick commerce platform GoPuff provides a relevant case study. Initially, focused on snacks and convenience items, GoPuff expanded into fashion and apparel through partnerships with brands like Champion, Lacoste, and Psycho Bunny. This move illustrates the potential for quick commerce to cater to fashion consumers' desire for speed and convenience.
However, the integration of fashion & apparel into the dark store model is still in its early stages but holds significant potential. While challenges remain, particularly for small businesses, the opportunities for growth and innovation are undeniable. The future of this sector lies in a hybrid model, where traditional retail coexists with dark stores, offering customers a seamless omnichannel experience.
The proposed PM MITRA Park in Dhar, Madhya Pradesh is likely to not only attract over Rs 10,000 crore investment but also generate employment opportunities for over 1 lakh people, says Giriraj Singh, Union Minister of Textiles,
The textile park aligns with Prime Minister Narendra Modi’s vision to establish India as a self-reliant nation, and a global textile hub, adds Singh. The government aims to establish seven such textile parks across the country, he informs.
Spanning across approximately 1,563 acre in Dhar, the project is being developed by the Madhya Pradesh Industrial Development Corporation (MPIDC).
The Union Government also plans to develop similar PM MITRA Parks in other states like Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
To be developed with an investment of Rs 4,445, these parks will be operational by 2027-28. The current political crisis in Bangladesh has helped domestic textile companies enhance capacities and boost export growth, avers Singh. In October and November 2024, India's garment exports rose by 35 per cent while textile exports expanded by 11 per cent compared to the corresponding period a year ago, he adds.
Offering a temporary relief to powerloom weavers in Surat, the Union Ministry of Textiles has delayed the imposition of an anti-dumping duty on nylon yarn.
The decision was prompted by a petition filed by nylon spinners Century Enka and Orilon, who sought an anti-dumping duty citing substantial losses caused by the influx of low-cost imported nylon yarn. However, powerloom leaders, including Mayur Golwala, Ashish Gujarati, and Vimal Bekawala, vocally opposed the petition. They challenged the spinners' claims of financial distress and warned that imposing additional duties would harm the weaving sector.
Golwala emphasized, the Ministry of Textiles had previously advised against anti-dumping duties in 2020. He also highlighted the steady growth in domestic nylon yarn production, which has kept pace with imports in recent years.
Emphasisng on the need for high-quality yarn, industry representatives pointed out, many Surat weaving units have invested in high-speed machines with capacities of 300 to 1,200 rpm, requiring superior yarn quality. Domestic spinners currently struggle to meet this demand, forcing weavers to depend on imported yarn to maintain operations.
Outlining the potential consequences of restricting nylon yarn imports, Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce and Industry (SGCCI), points out, Surat’s textile industry consumes supports approximately 80, 000 weaving machines besides employing 1 lakh workers by consuming 8,000-10,000 tons of nylon FDY yarn monthly. Any import restrictions could lead to machine shutdowns, turning them into scrap and causing widespread unemployment, he warns
Weaver leaders also refuted claims that imported yarn was responsible for the financial distress of companies like Praful Overseas, which recently became a non-performing asset (NPA). They argued, multiple factors contribute to an NPA status and rejected the notion that imported yarn was the sole cause. Instead, they asserted that imposing duties would merely increase profits for spinners at the expense of weavers and the broader textile sector.
The government’s decision to delay the imposition of anti-dumping duties has provided much-needed relief to Surat’s powerloom weavers. Industry leaders view the move as essential for sustaining Surat’s position as a major MMF textile hub, preserving jobs, and ensuring continued growth.
Year 2024 proved to be a dynamic one for the global apparel sector, marked by a complex interplay of economic, social, and technological forces. This report looks at the key trends, challenges, and triumphs that shaped the industry, examining its performance against projections, highlighting winners and losers in global trade, and offering an outlook for 2025.
Factors that shaped 2024
Several factors exerted significant influence on the apparel industry in 2024.
Economic volatility: Global economic uncertainty, pushed up by inflationary pressures and geopolitical tensions, impacted consumer spending and supply chain stability.
Sustainability concerns: Consumers increasingly demanded ethical and sustainable practices, pushing brands to adopt eco-friendly materials and transparent production processes.
Technological advancements: Automation, AI, and data analytics continued to reshape manufacturing, design, and retail experiences.
Shifting consumer preferences: Demand for personalized experiences, comfort-driven apparel, and inclusive sizing grew, forcing brands to adapt.
While the year began with cautious optimism, growth projections were tempered by economic headwinds.
|
Metric |
Projected growth |
Actual growth |
|
Global Apparel Market Value |
4.50% |
3.80% |
|
E-commerce Share |
25% |
27% |
|
Sustainable Apparel Market |
15% |
18% |
(Source: Statista, McKinsey & Company)
The apparel sector showed resilience, exceeding expectations in e-commerce adoption and sustainable apparel sales. However, overall market growth fell slightly short of projections due to inflationary pressures and reduced consumer spending in key markets.
Winners and losers in global trade The global apparel trade landscape witnessed shifts in 2024 with some clear winners and losers.
Winners
Bangladesh: Continued its strong performance in fast fashion exports, capitalizing on its competitive labor costs and efficient production capabilities.
Vietnam: Further solidified its position as a key manufacturing hub, attracting investment from major brands seeking to diversify their supply chains.
India: Witnessed growth in exports of high-value garments and textiles, driven by government initiatives and a skilled workforce.
Losers
China: Faced challenges due to rising labor costs, trade tensions, and a shift towards higher-value production in other countries.
Cambodia: Experienced a slowdown in export growth due to concerns over labor rights and political instability.
Table 1: Apparel exports in $ million
|
Country |
2023 |
2024 |
% Change |
|
China |
158 |
150 |
-5.10% |
|
Bangladesh |
42 |
45 |
+7.1% |
|
Vietnam |
40 |
43 |
+7.5% |
|
India |
20 |
23 |
+15% |
|
Cambodia |
8 |
8.5 |
+6.3% |
Table 2: Apparel imports in $ million
|
Country |
2023 |
2024 |
% Change |
|
EU |
220 |
215 |
-2.30% |
|
USA |
180 |
175 |
-2.80% |
|
Japan |
35 |
33 |
-5.70% |
|
Canada |
20 |
19 |
-5.00% |
|
Australia |
15 |
14 |
-6.70% |
(Source: WTO, World Bank) Innovations shaping the industry
2024 saw significant strides in apparel innovation. For example, 3D printing and customization were strong trends. On-demand manufacturing and personalized designs gained traction, reducing waste and catering to individual preferences. Integration of technology into fabrics, enabling features like temperature regulation, health monitoring, and interactive elements also became populer. And brands explored clothing rental, resale platforms, and recycling programs to minimize environmental impact. For example, Adidas's ‘Made to be Remade’ initiative, where garments are designed for circularity, allowing consumers to return them for recycling and receive credit towards new purchases, gained significant attention in 2024.
Challenges faced
Despite progress, the apparel sector grappled with significant challenges. Supply chain disruptions were primary due to geopolitical instability, climate change events, and transportation bottlenecks continued to disrupt supply chains, leading to delays and increased costs. Sustainability concerns also increased as greenwashing remained a concern, with brands facing scrutiny over the authenticity of their sustainability claims. At the same time, ethical sourcing and fair wages continued to be a pressing concern, particularly in low-cost manufacturing hubs.
Looking forward to 2025
The upcoming year has its own promises. As Achim Berg, Senior Partner, McKinsey & Company puts it, "The apparel industry is at a critical juncture. Brands that embrace innovation, prioritize sustainability, and adapt to evolving consumer needs will be best positioned for success in 2025 and beyond."
In 2025, anticipated global economic recovery may boost consumer confidence and spending, driving market growth. At the same time, the continued integration of AI, data analytics, and omnichannel strategies will be crucial for success. And brands will need to embed sustainability across their entire value chain to meet consumer expectations and regulatory requirements.
The opportunities are many. Expect to see further growth in personalized apparel and on-demand manufacturing. Meanwhile, the circular economy will gain momentum, with increased investment in resale platforms and clothing rental services. And brands will prioritize inclusivity in sizing, representation, and product offerings.
The maiden bridal collection launched by fashion label Nobody’s Child blends timeless romance with latest fashion trends. The collection includes dresses for both the bride and the bridesmaid.
Comprising 12 styles, Nobody’s Child’s debut bridal collection offers styles ranging from minimalist to soft, fluid tailoring in ivory shades with heavy satin, jacquards and crepe styles.
The bridesmaid collection includes 25 ‘versatile’ designs in a pastel color palette of pale pink, lemon and green, alongside deeper hues of navy and forest green. Thin strap cowl neck designs sit alongside off-the-shoulder floor length, halter neck and empire line styles.
The launch of this collection follows the brand’s foray into the beauty sector and launch of a sustainable fragrance, body and home collection.
The label also launched its debut accessories collection including bags, bows, corsage scrunchies, jewelry, sunglasses and caps.
Devendra Fadnavis, Chief Minister, Maharashtra Government recently urged for the establishment of the Maharashtra Technical Textile Mission (MTTM) and Maharashtra State Textile Development Corporation (MSTDC) in the state. He also highlighted on the state’s participation in Bharat Textile 2025 in New Delhi.
Emphasising on the need to invite Expressions of Interest (EOIs) for setting up technical textile parks across the state, Fadnavis also emphasised on the importance of implementing the Captive Market Scheme effectively to boost the local textile industry. He directed officials to implement an age-old pension scheme to ensure the social security of an old-age pension scheme for their social security.
Emphasising on innovation and efficiency within the textile department, Phadnavis instructed officials to digitise and automate schemes to improve operations. Furthermore, he encouraged increased use of solar energy in spinning mills across Maharashtra.
Under the Integrated and Sustainable Textile Policy 2023-28, Fadnavis called for developing Urban Haat centers. These centers aim to promote and support handloom artisans. He also proposed collaboration with Prasar Bharati to broadcast ‘Kargha,’ a series on the traditional textile industry.
The Chief Minister's directives included measures to support handloom weavers through social security initiatives. The old-age pension scheme is part of these efforts, ensuring financial stability for weavers in their later years. This initiative aligns with broader goals to sustain traditional crafts and provide economic support.
Fadnavis's focus on technical textiles reflects a strategic approach to modernising Maharashtra's textile sector. By establishing MTTM and MSTDC, the state aims to foster growth and innovation in this field. Participation in Bharat Tex 2025 further underscores Maharashtra's commitment to advancing its textile industry on a national platform.
Struggling with severe financial challenges, pivotal cotton research institution, the Pakistan Central Cotton Committee (PCCC) plans to transfer its operations to the All Pakistan Textile Mills Association (APTMA) or the National Agricultural Research Centre (NARC).
Criticizing the PCCC for its inefficiency, the Economic Coordination Committee (ECC) has recommended its dissolution. A key factor in the committee's financial troubles is the refusal of textile millers to pay the cotton cess—a Rs 50 levy per cotton bale—which funds the PCCC’s operations. It has reduced employee salaries by 50 per cent, and pensions by 80 per cent since June 2022.
The government allocated Rs 656 million in the federal budget for FY2024-25 to cover employee-related expenses, following earlier supplementary grants and loans that proved insufficient. Despite this, the PCCC remains financially unstable.
Established in 1948 under the Cotton Cess Act of 1923, the PCCC operates under the Ministry of National Food Security and Research. Its mandate includes cotton research, production enhancement, and marketing improvement. However, resistance to cess payments has crippled the committee's ability to fulfill its responsibilities.
The ECC has tasked the Ministry of National Food Security with preparing a case for the Cabinet Committee on Rightsizing to determine the future of cotton research. The ministry has also been directed to consult the Attorney General and provincial advocate generals to expedite court case resolutions.
The ECC has proposed shifting cotton research to the private sector, suggesting that transferring the PCCC to APTMA could better align research with industry needs. Alternatively, integrating the PCCC into NARC could embed its work within broader agricultural research efforts.
As the government weighs its options, the fate of the PCCC remains uncertain, highlighting the urgent need for a sustainable approach to revitalize Pakistan’s cotton sector.
Smartex’s mission to transform the textile and fashion industry through zero-waste and full transparency remains unwavering, thanks to the invaluable support of clients, distributors, investors, partners, and friends.
This year, Smartex inspected nearly 100,000 km of fabric, achieving remarkable savings in fabric, water, carbon dioxide, and energy. The ‘Smartex Inspected Fabrics’ Advantage proved 10x more impactful in reducing inefficiencies across knitting, dyeing, and garment factories.
Key outcomes from Smartex’s efforts in 2024 include an impressive 80 per cent reduction in garment waste, leading to significant cost savings and environmental benefits. Fabric waste was reduced by 50 per cent, turning inefficiencies into increased profitability. Additionally, cutting panels saw a 30 per cent increase, optimizing resource utilization across the supply chain. Smartex also achieved a reduction of 3 cents per garment, further enhancing profitability for brands and solidifying its role in driving sustainable industry transformation.
Smartex forged impactful industry partnerships in 2024, including a innovative initiative with a Portuguese facility collaborating with Zara and Hugo Boss. This facility became the first in the industry to specifically request and pay a premium for Smartex Inspected Fabrics. Additionally, a successful pilot project with H&M in Bangladesh catalyzed factory-wide adoption of Smartex technology, demonstrating its value in improving efficiency and quality across the supply chain.
Smartex technology now handles intricate fabrics like jacquard and tubular, overcoming challenges with 99 per cent flawless inspections and 90 per cent+ accurate machine stops. Core Hardware V2 upgrades increased reliability, resilience, and speed for seamless operations.
Smartex showcased innovations at events worldwide, including DTG Dhaka, Bharat Tex, Knit Tech, H&M Tech Forum, Indo Intertex, Saigon Tex, Igatex, ITM, CAITME, and ITMA Asia. Partnerships with six OEMs strengthened the industry’s adoption of cutting-edge solutions.
Looking to 2025, Smartex aims to scale supply chain efficiency initiatives, driving waste reduction, garment quality improvement, and sustainability. Expanded partnerships with garment facilities and brands will continue transforming the industry.
The MTF 2.0 Report released this year provides a roadmap for sustainable, data-driven supply chain transformation, reinforcing Smartex’s leadership in operational excellence.
From product upgrades to strengthened global partnerships, Smartex is setting a new standard for a sustainable and profitable textile-fashion future.
Addressing yield challenges in rain-fed cotton growing regions, Cotton Association of India (CAI) has urged the government to grant funds worth Rs 500 crore to help farmers implement drip irrigation systems.
Speaking at the association’s annual general meeting, Atul Ganatra, President, CAI highlighted, around 67 per cent of India's cotton production relies on rainfall, leading to inadequate water supply during critical flowering and fruiting stages.
This yield disparity between rain-fed and irrigated areas is particularly pronounced in Maharashtra, where approximately 95 per cent of cotton cultivation depends on rainfall.
Similar challenges affect cotton-growing regions in Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka, and Gujarat. The proposed drip irrigation technology could potentially save 40-60 per cent of water compared to traditional flood irrigation methods.
The association has also called for the removal of import duties, including 5 per cent Basic Customs Duty, 5 per cent Agriculture Infrastructure Development Cess, and 1 per cent Social Welfare Charge, being implemented since 2021-22, to facilitate more affordable cotton imports.
CAI estimates, from 12.68 million hectare in the previous year, cotton acreage in India is expected to decline by over 10 per cent to 11.36 million hectare during 2024-25.
Combined with excessive rainfall damage in major growing regions, this reduction is likely to cause a 7.70 percent decline in production to 30.22 million bales, compared to 32.74 million bales last year.
As per CAI forecasts, from 1.52 million bales last year, India’s cotton imports are likely to rise to 2.5 million bales in 2024-25, while exports are expected to decline to 1.8 million bales from 2.83 million bales.
Reflecting a global price reduction of 13-15 per cent, India’s cotton prices declined from 2.54 to 3.5 per cent.
