After five years of exponential growth, luxury in China is slowing down. So says Bain.
2022 was a difficult year. Despite strong momentum at the beginning of the year, Covid-related lockdowns hampered Chinese shopping from the second quarter onward, along with a declining housing market, rising unemployment, and pandemic fears. Most brands in China declined in 2022 due to challenging conditions. The watch market saw the sharpest decline, with sales plummeting 25 per cent year on year. The fashion and lifestyle categories dropped by 15 per cent to 20 per cent while jewelry and leather goods performed slightly better, with a fall of ten per cent to 15 per cent.
The economic slowdown hit entry-level luxury consumers more than high net worth customers. Segments with a strong online presence were less impacted, and put up a slightly better performance than others. Some Chinese luxury brands achieved sales through high-spending customers that were 40 percent higher than the global average, especially in digital channels.
However positive conditions are expected to return by the first quarter of 2023. Consumer fundamentals are still solid, thanks mainly to the concentration of middle- and upper-income consumers, a cluster that will double by 2030.
G-Star Raw has partnered with David Laport to launch a denim line.
G-Star Raw is a Dutch denim brand. David Laport is a Dutch designer known for his circular couture approach to dressmaking, signature pleats and celebrity clientele. The two-piece capsule collection features a strapless top and a tiered dress—each defined by Laport’s sculptural accordion-style pleating. The top mimics the shape of a bow while the layers fan out into an explosion of pleats on the dress.
The intent was to make something glamorous, something feminine, something totally different and something in denim. G-Star Raw and Laport wanted to make something festive, a statement piece that was easy to wear. So it’s possible to party and go out in both pieces. The top can be worn with G-Star trousers and sneakers.
In keeping with G-Star’s roots, the pieces are made with 100 per cent cotton Japanese selvedge denim. The 10 oz. 2×1 right hand twill fabrics have an authentic green cast while the weft gray adds vintage appeal. G-Star also plans to begin launching a new sustainable production innovation every other year. The innovations will be based on either materials or washing levels—steps that will help close the loop in denim.
Home textile exports from India have fallen by almost 18 percent in the current fiscal year as compared to the previous fiscal year.
Demand for these products has slowed, particularly from the US and Europe.Home textiles are a significant contributor to the textile sector and have seen substantial growth, with exports increasing by 34 percent in fiscal year 2021 and further by 12 percent in fiscal year 2022, second only to readymade garments.
However, despite the initial growth, exports began to level off in the second quarter of fiscal year 2022 due to a combination of rising commodity inflation and the onset of a global recession, which have had a significant impact on growth.
The operating margins for the leading four listed home textile companies, which hold a market share of 35 percent in India’s home textile exports, have seen a decline on a quarterly basis and are predicted to decline further by 400 to 500 basis points in fiscal year 2023. The reduction in demand and increased operating costs due to decreased capacity utilisation have impacted margins despite a decrease in cotton prices.
However growth is expected to pick up in the second half of the fiscal year 2024 since the recessionary effect in the US may be out of the way by the second half of the fiscal year 2024.
H&M has formed a joint venture with Remondis to collect, sort and sell used and unwanted garments and textiles.
H&M is the world’s second biggest fashion retailer. Remondis is a German recycling group. The 50-50 owned venture, called Looper Textile, is starting its operations in Europe and aims to extend the life cycle of some 40 million garments in 2023.
The venture plans to test new collection schemes and implementing automated technologies, including near-infrared sorting, and hopes to become a preferred feedstock provider to companies and innovators engaged in textile resale and recycling.
Conscious consumption is on the rise. People are looking for natural fibers, customers are increasingly looking for honesty. It’s estimated that 300,000 tons of textiles go to household bins. It’s the UK’s fastest-growing household waste stream. Brands are trying to find solutions whereby these materials can be repurposed or reused. By reusing and repurposing these donated textiles, it is possible to greatly reduce the amount sent to disposal, creating an efficient way to combat climate change.
Currently the demand for recycled fibers is growing, but access to the waste supply is limited. Key elements to supporting the growth of textile-to-textile recycling include understanding material composition, volume and location of used textiles as well as expanding access to textile recycling.
Kering’s net profit climbed 14 per cent in 2022. Sales jumped 15 per cent.
The French luxury giant’s empire includes Gucci, Balenciaga, Yves Saint Laurent, Bottega Veneta and Alexander McQueen. Kering’s sales fell two per cent in the fourth quarter, dragged down by an 11 per cent drop at Gucci and three per cent at its other brands, which include Balenciaga, in the last three months of the year.
The results were weighed down by China which still had Covid restrictions most of last year. The world’s second biggest economy, a major market for luxury brands, lifted its zero-Covid policy in December 2022. Gucci sales were up eight per cent for the full year in 2022. Sales at Yves Saint Laurent soared by 31 per cent. Other brands were up 16 per cent for the year.
Kering is a global luxury group that manages the development of a series of renowned brands or houses in fashion, leather goods and jewelry. By placing creativity at the heart of its strategy, Kering enables its houses to set new limits in terms of their creative expression while crafting tomorrow’s luxury in a sustainable and responsible way. Kering has more than 42,000 staff members.
Copenhagen Fashion Week was held January 31, 2023, to February 3, 2023.
The event was home to fall/winter 2023-2024 collections that mixed denim with colorful outerwear, unique knitwear and monochromatic sets.
Double denim looks with a medium wash were all the rage in collections by Munthe, Rabens Saloner, and Skall Studio. Slouchy bottoms were typically paired with a relaxed button-down shirt or Trucker jacket. Opera sport went darker with its workwear-inspired shacket and trouser jeans.Dual-gender brand (Di)vision continued to focus on reconstructing denim garments.
A maxi skirt was upcycled from a pair of jeans.Rainbow-colored stitching added a youthful touch to carpenter jeans. The brand also brought back Y2K styling by pairing a belted tunic-length knit tank over ripped bootcut jeans.TG Botanical took a similar approach to styling by layering a denim tube dress over bootcut jeans. A denim corset top paired back to a maxi skirt. Though brighter shades of indigo were present, these pieces stood out for their brown- and green-tinted washes.Spray-paint effects colored Wood Wood’s grunge-inspired range. Alpha’s deconstructed approach spanned cuffed denim skirts to religious-themed coordinates embellished with clear crosses and pieces that mimicked a nun’s habit. A bodice with corset-inspired seaming broke up the long line of Gestuz’s long-sleeve denim dress.
Global apparel retailers are now realizing that what you see is not always what it seems and are seeking to verify the authenticity of their products from supply sources to protect themselves from fabric mislabelling and fraud. Many premium brands are implementing strict regulations and monitoring processes throughout their global manufacturing process to put an end to the mislabelling of a garment that claims to be what it is not.
The complex and fragmented supply chains of global brands sometimes rely on just a literal paper documented trail although each step in the chain is happening in a different country or factory which is helping to evade responsibility and mislabel garments. The Textile Fiber Rule requires that certain textiles sold in the US carry labels that specify the generic names and percentages by weight of the constituent fibres in the product, the manufacturer or marketer name, as well as the country of manufacture.
US retailer Target severed ties with textile manufacturer Welspun India in 2016 after realizing that over 750,000 bedlinens such as sheets and pillowcases were fake and mislabelled as Egyptian cotton and they were not the pure long- and extra-long-staple Egyptian cotton after all.
Further on, the Cotton Egypt Association estimated that 90 per cent of global supplies of Egyptian cotton in 2016 were actually fake. Not just Egyptian cotton, recently in 2020, the Global Organic Textile Standard (GOTS) opined around 20,000 tonnes of Indian cotton had been incorrectly certified as premium organic cotton which translated to a sixth of the country's total production. A famous silk brand from Vietnam also owned up that over half of its silk was inferior silk from China. Animal rights activists supported several British retailers in 2018 who withdraw their faux fur winter garments which were found to be from actual dead and skinned animals. Even synthetic fabrics such as polyester fabrics are mislabelled as over 60 per cent of those claiming to be from recycled plastic bottles with lower carbon footprint were made from virgin plastic.
There is always a gap between how much fibre is naturally produced globally and how much brands and retailers actually use in their finished products. The brands sometimes themselves don't know exactly where the fabric in their products comes from as only a third of the top 100 apparel companies track their supply chains.
As Crispin Argento, MD, The Sourcery point out there are indicators, from self-reporting of various fabric mills, spinners, farmers, brands, that the vast majority of cotton that is presented to consumers as organic is not, in fact, organic cotton. The Sourcery is an Amsterdam-based company for helping brands source organic cotton direct from growers- in a news report.
The way forward is for brands and retailers to focus on using tracing technology to verify the authenticity of their products and the first step would be to map out the whole supply chain. Companies must build large provenance databases to ensure each product's fingerprint is truly unique. Manufacturers may go have to go out and get soil samples from all the different major cotton farms in the world to build up these tracing systems. While forensic tracing methods like isotope analysis tend to work well with natural materials like cotton, silk and wool, they cannot trace synthetic materials which are mostly oil-based.
With a typical supply chain in the textile industry being very complex, with seperate facilities in different countries that complete each step in the process, fabric mislabelling and fraud is not an easy segment to tackle. However, the hundreds of hands that an item passes through before it comes into the consumer's hands are now being authenticated and the passing the buck on days may just be numbered.
Soorty’s new denim collection highlights the value of design and emphasizes Soorty’s commitment to making quality clothing.
Soorty, one of Pakistan’s largest vertically integrated denim companies, launched this collection in partnership with Lycra, Lenzing, Marmara Hemp and Jeanologia.
The capsule collection brings fiber innovation and bright laundry together and utilizes fabrics woven with the conscious fibers from Lycra, Lenzing, Marmara Hemp as well as recycled cotton that is produced in Soorty’s state-of-the-art recycling facility. The laundry and finishing was conducted by Jeanologia technologies such as G2 Dynamic and Laser. Focused on small-scale, and to-the-point production, the collection highlights that the route to circularity and sustainability is made possible when working collectively and producing responsibly.
Jeanologia provided the technologies, innovations and machineries that helped process both the fabric produced and the garments sewn together. Two sets of the collection were produced, with one finished by Soorty in Pakistan which owns a laundry set up that ensures lowered impact and responsible innovation while the other set was finished by Jeanologia. The impact of each piece was measured to ensure that each garment of the collection secures environmental and social safety. To tie in the main goal of transparently communicating sustainability, the supply chain partners attached labels to each garment where consumers can review not only what goes into making them but also how they were treated.
Intertextile Shenzhen Apparel Fabrics will be held in China, November 6 to 8, 2023. This is a global textile show.
The aim is to help industry players tap into market recovery and regain international orders. The fair provides a platform for exhibitors to showcase their latest products to quality buyers from across the globe.The previous fair welcomed over 880 exhibitors from eight countries and regions, while there were over 42,000 visitors from 26 countries and regions.
Intertextile Shenzhen is the best place to meet influential buyers and trend-setters, including some of south China’s leading garment manufacturers. China’s fastest growing city has designs on becoming a global fashion capital. Shenzhen is now home to over 2,500 clothing brands.
In the first three quarters of 2022, the city’s garment exports increased by nine per cent year on year. Notably, there was a sharp rise in exports to Asean countries, the UK, and the US.As China has removed pandemic restrictions for inbound travelers, its textile industry is on track to benefit.
The Chinese textile market is predicted to grow at a CAGR of over five per cent from 2020 to 2026. Despite the challenges facing the global economy, China’s textile industry aims to return to its pre-Covid business results.
Knitwear accounts for more than 55 percent of Bangladesh’s total garment exports.
In the 1980s, woven garments such as shirts and pants were the main export products of Bangladesh. At that time, the share of woven garments in total exports was more than 90 percent. After that, the capacity of knitwear is also created in Bangladesh. Gradually, the participation of woven and knit garments in the total exports was equalized.
However, this picture has changed in the last decade.More than 80 percent of the products exported from Bangladesh in the world market are readymade garments. These are basically divided into two categories based on type—woven garments and knitwear. Generally, T-shirts, polo shirts, sweaters, trousers, joggers, shorts are called knitwear. On the other hand, formal shirts, pants, suits, denim jeans are known as woven clothes.
The use of casual wear has started to increase since the Covid period. Also, the demand for people’s everyday clothes is also increasing. Most of these clothes are knitwear. Besides, the demand for manmade fibers is increasing in the international market, most of which is knitwear. As a result, the overall demand for knitwear is increasing in the global market.
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