The Global Textile Industry Survey (GTIS) by ITMF, conducted in September 2023, reveals a cautious sentiment prevailing in the global textile sector. The key news angle is the persistent struggle of companies across the textile value chain, grappling with mounting costs and sluggish demand. 

The business situation indicator paints a grim picture, standing at -27 percentage points, while business expectations have stagnated at around +20 pp since July, defying hopes of a boost from the Chinese economy.

Despite concerns about weakening demand, a global economic hard landing remains unlikely. Order intake briefly improved in May 2023 but plummeted in July and hit a new low in September (-28 pp), with the entire value chain operating on minimal orders. 

The report does offer a glimmer of hope as order backlog slightly increased to 2.2 months in September, but the overall capacity utilization rate remains low at 69%, with manufacturers expecting this trend to persist.

One persistent concern is the impact of high inflation rates driven by soaring energy and raw material prices. However, the survey indicates that order cancellations are not a significant issue, and inventory levels remain steady along the textile value chain.

The Textiles and Clothing (T&C) sector in Tamil Nadu, known as the backbone of the state's economy, is grappling with multiple challenges that threaten its stability and global competitiveness. With the industry contributing significantly to the state's economy, generating employment for over 60 lakh individuals, and contributing substantial foreign exchange earnings and GST revenue, the current scenario demands attention.

The global recession, exacerbated by factors like the Russia-Ukraine conflict, has led to a reduction in the purchasing power of international consumers, resulting in decreased export orders. Additionally, issues such as the shortage of quality cotton, high import duties on cotton, price volatility, and stringent Quality Control Orders have led textile manufacturers to scale down production, eroding global competitiveness.

As Tamil Nadu prepares to host the Tamil Nadu Global Investors Meet 2024, with aspirations to become a USD 1 trillion economy by 2030, it is imperative to strengthen policy initiatives. Other states have enticed textile investments with lucrative incentives, including capital subsidies and power subsidies, making the power-intensive sector competitive.

The textile industry, which was once a magnet for investments due to its power cost advantage, now faces an uncertain future. Unless the state government revisits policies, especially power tariffs, the survival of textile mills in Tamil Nadu remains in jeopardy.

Dr. S.K. Sundararaman, Chairman of The Southern India Mills' Association (SIMA), has appealed to Chief Minister M.K. Stalin to reconsider energy policies, including annual banking facilities for older windmills and network charges for rooftop solar panels. These measures are critical to sustaining the industry's competitiveness amidst a challenging environment.

The ITMF's Global Textile Industry Survey (GTIS) conducted in mid-September 2023 found that survey participants exhibited a cautious sentiment regarding the current business situation. The indicator for the business situation stood at -27 percentage points (pp), as companies in the entire textile value chain were struggling with rising costs and weak demand. Business expectations have remained unchanged since July at around +20 pp.

Order intake recovered in May 2023, but flattened in July and remained very weak in September (-28 pp). The entire textile value chain is running on minimum levels of orders. As long as brands and retailers do not increase orders, the entire value chain will continue struggling. Order backlog slightly increased globally, from 1.9 months in July to 2.2 months in September 2023. This indicator had been on a falling trend since the end of 2021. 

The average capacity utilisation rate dropped again globally (69%). Textile manufacturers expect this rate to remain low in six months’ time as well.

Weakening demand has been the major concern in the global textile value chain for a year. In September 2023, this concern grew even stronger due to high inflation rates measured in the last few months, a phenomenon fueled by high energy and high raw material prices. Nevertheless, participants seem not to be concerned by order cancelations and inventory levels remain average along the textile value chain.

Apparel Group, a leading fashion conglomerate, has partnered with Forever New, a renowned global womenswear brand, to launch the brand in the Middle East.

The partnership will see the opening of three flagship stores in Kuwait and the launch of an online presence on 6thStreet.com in the UAE.

Forever New is known for its contemporary elegance and style, offering women timeless fashion pieces that blend seasonal trends with feminine silhouettes and distinctive detailing.

Neeraj Teckchandani, CEO of Apparel Group, commented on the partnership, saying that the company is excited to bring Forever New's unique aesthetic and quality collections to the fashion-savvy consumers of Kuwait and the UAE.

He added that the collaboration is a testament to Apparel Group's ongoing commitment to elevating the fashion landscape in the region and providing unparalleled shopping experiences.

Dipendra Goenka, CEO of Forever New, said that the company is proud to partner with Apparel Group to further expand its presence in the Middle East.