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Visibility is vital for agility, resilience, ESG

06 July  2023, Mumbai

The European Union's implementation of new ESG laws necessitates that apparel brands disclose extensive information about their supply chains, including supplier names, working conditions, and environmental impact. 

What all you need to know

New ESG Laws Drive Supply Chain Transparency

Failure to comply with these laws carries significant penalties, making it crucial for brands to ensure ethical sourcing and manufacturing. This requires full visibility into operations, which can also confer a competitive advantage.

However, the textile supply chain is intricate, involving multiple players in sourcing, manufacturing, and distribution. This often leads to information silos, hindering executives' ability to respond swiftly to disruptions. The pandemic has underscored the importance of supply chain visibility, as even minor disruptions can have far-reaching consequences. 

Brands that recognize the significance of visibility at every stage of the supply chain can enhance agility, and resilience, and avoid major ESG violations.

The Triple-A Supply Chain: Agility, Adaptability, and Alignment in a Globalized World

In today's supply chain landscape, achieving optimal performance goes beyond mere speed and cost-efficiency. The most successful supply chains embody the principles of agility, adaptability, and alignment. 

This concept, known as the triple-A supply chain, has received significant attention in both academic and trade literature and has been widely integrated into various supply chain management curricula.

Global village

As the world becomes increasingly globalized and interconnected, supply chains have grown more complex and interdependent. This heightened complexity has made it challenging to maintain the necessary visibility required for effective management. 

As a result, leaders worldwide have had to adapt their managerial approaches to cope with these changes and ensure their supply chains remain efficient and resilient.

Growing ESG concerns

Moreover, the interconnectedness of diverse stakeholders in the supply chain has given rise to unforeseen environmental and social concerns. Navigating these relationships and their potential impact on the supply chain has become a crucial aspect of modern supply chain management. 

In this context, Professor Lee's emphasis on the triple-A supply chain remains highly relevant and significant.

To ensure ethical sourcing and avoid penalties

Improved supply chain visibility not only helps prevent ESG violations but also offers significant benefits for apparel brands. It enables informed decisions regarding inventory management, product development, and logistics.

To address the challenge of limited visibility, technology solutions such as production tracking software and digital quality management and inspection tools are available. 

Brands can utilize these solutions to closely monitor global suppliers, maintain constant communication, establish safeguards and approvals, and receive timely updates on all activities. Technology solutions offer solutions to help achieve.

Benefits of Agile Methodology 

Achieving agility and resilience in supply chains relies heavily on having visibility. Resilient supply chains demonstrate the required agility and responsiveness to effectively sense, predict, and respond to changes, especially during turbulent times. 

Within these resilient supply chains, incorporating an agile methodology into distribution or wholesale operations yields numerous advantages. 

Enhanced Supply Chain Visibility

By establishing enhanced visibility throughout the entire supply chain, organizations can anticipate and proactively address potential disruptions before they escalate into significant problems. 

Low Resilience Levels in Supply Chains; According to a recent survey conducted by Gartner, only 21% of respondents currently possess a highly resilient network, indicating that they have both good visibility and the capacity to quickly adapt sourcing, manufacturing, and distribution activities. 

Prioritizing Resilience; This suggests that increasing resilience will become a prioritized goal for many organizations as they navigate through the ongoing crisis.

Pathbreaking

In terms of corporate citizenship and ESG performance, sportswear brand Nike has recently ranked first in 3BL Media's evaluation of the top corporate citizens in the United States. 

The evaluation assessed the environmental, social, and governance (ESG) transparency and performance of the 1,000 largest publicly traded U.S. companies.

Triple Bottom Line

The textile sector faces a complex landscape of conflicting sustainability reporting frameworks and standards. ESG, often referred to as the Triple Bottom Line represents a sustainability tripod that companies must prioritize in addressing supply chain ESG concerns and taking actionable steps towards achieving sustainable goals. 

The sector is responding to growing regulatory compliance and government actions, driven by conscious and evolving end-users.

Given the textile sector's heavy environmental impact, it is no surprise that it is considered one of the biggest polluters. 

With increased global attention to climate change, incorporating ESG principles into core business strategies has become crucial for companies. 

Competitive edge

Doing so enhances credibility, reputation, and competitive advantage. ESG factors such as carbon emissions reduction, renewable energy use, and fair labor practices help mitigate the sector's negative impact on the environment and society. 

In making a sound business case, environmental, social, and governance (ESG) considerations are paramount for business and investment decision-making.

Moreover, ESG factors serve as a robust yardstick for evaluating a firm's/project's performance and risk. In many instances, investors prioritize environmental issues over conventional business metrics, highlighting the importance of ESG in investment decision-making.

Supply chain visibility brings benefits beyond ESG compliance

A shifting approach towards result-based financing, focusing on green growth, has become the new norm. The complex landscape of conflicting sustainability reporting frameworks and standards that guide businesses and investors in ESG disclosure may become more apparent as awareness and regulatory oversight increase.

According to McKinsey & Company, achieving sustainable goals is a comprehensive organizational challenge that often requires product portfolio transformation. Therefore, organizations/companies must prioritize supply chain ESG concerns.

Investors prioritize ESG considerations

ESG investing surges as companies incorporate sustainable goals; ESG investing raises concerns as well. 

Bloomberg reports indicate that investors poured around $120 billion into ESG ETFs in 2022, marketed as comprising companies with a strong and credible ESG performance history. 

This figure is projected to reach $1 trillion by 2025 as investors seek to mitigate risks associated with ESG disputes and potential claims.

In conclusion

In today's globalized and intricate supply chain landscape, the principles of agility, adaptability, and alignment play a vital role in ensuring the success and sustainability of supply chain operations. 

Leaders and managers must continuously strive to optimize their supply chains with a focus on these key factors to stay ahead in an ever-changing business environment.

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Uniqlo embraces ‘Make in India’ as it spreads its wings in India

05 July  2023, Mumbai

On October 4, 2019, Japanese retailer Uniqlo opened its first store in India, at New Delhi’s Ambience Mall, a new milestone for the company in what it believes will be one of its most important markets in the world.

The India launch also marked the debut of Uniqlo’s concept of LifeWear - apparel that comes from the Japanese values of simplicity, high-quality, and longevity, made for everyone, everywhere.

Today, Uniqlo has nine stores in India, with seven in Delhi-NCR and one each in Chandigarh and Lucknow. Mumbai and Bangalore stores are next on the list.

India to be the biggest South Asian production hub

Bangladesh is one of its most important manufacturing hubs, Uniqlo is now planning to set up its second South Asian manufacturing hub and has chosen India specifically for its domestic market which represents a huge growth opportunity for the brand.

USP; While the Bangladesh manufacturing hub follows the export model as do the current Indian ones, the Uniqlo manufacturing hub in India will follow the domestic sales model to support the Japanese label in its expansion across the country.

The brand is serious about Indian consumers as they see clothing preferences in India are aligning with international trends which is an advantage for Uniqlo to leverage. The new partnership will be a team of 20 Indian manufacturing houses.

India was the dormant but now active choice

Experts say, despite its clear visibility in terms of availability of raw materials, skilled labour force, manufacturing infrastructure, and relatively lower energy costs, India has been overlooked by most international fashion brands as the preferred partner as they are fully aware of the risk exposure.

First hand; Reiterating the brand’s strategic move, CEO, Tadashi Yanai says, Uniqlo’s ambition is to be the best retailer across India. The company is set to make a high-value investment to ensure local manufacturing partners are able to deliver as per Uniqlo’s standards.

It must be noted that globally, Uniqlo does not own a single manufacturing unit but partners locally. Called ‘Core Partner Factories’, Uniqlo has 227 factories in China, 54 in Vietnam, 33 in Bangladesh, 13 in Indonesia, and 16 factories in India and Japan among several other locations.

Currently, Uniqlo’s core partner factories in India include Shahi Exports, Brandix Lanka, Tangerine Designs, Maral Overseas, Shingora Textiles, Silver Spark Apparel, SM Lulla Industries Worldwide, and Penguin Apparels.

The Uniqlo Strategy for success in India

Surprisingly, when Uniqlo launched in India, it did not compete with high-street Zara and H&M. Instead, adding a whopping 25 percent to their pricing, worked. Uniqlo India reported a profit of Rs 21.4 crore for the fiscal year ending March 2022 compared to a loss of Rs 36.1 crore in the previous financial year.

The Japanese retailer’s India sales jumped 63 percent year on year to Rs 391.7 crore in 2021-2022. The other part of the strategy was deep penetration of a certain area, known as the cluster approach. Again, it worked as other regions wait in anticipation.

Fast Retail’s performance upbeat

Uniqlo’s parent company Fast Retailing has been doing consistently well across the globe.

As per its first-half results, the company said its revenue was  $10.2 billion, and operating profit rose to $1.53 billion, due to its strong performances from operations in several regions, including India where it generated a significant increase in both revenue and profit.

Uniqlo also stated regions like India have reported significant revenue and profit gains as they enter a full-fledged growth phase.

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Trousseau sales plummet, paradigm shift

03 July  2023, Mumbai

The wedding attire market experiences a notable sales decline due to the economic downturn and changing fashion trends.

CMAI's survey confirms a sharp drop in wedding clothing sales, reflecting evolving preferences and challenging economic conditions.

What all you need to know

The clothing industry is anticipated to undergo significant growth

Among the 110 wedding clothing manufacturers surveyed, approximately 77 percent reported average to poor sales during the May-June 2022 wedding season.

The weak performance was attributed to various factors, with over 60 percent of respondents citing the general economic slowdown and 14 percent pointing to high prices.

Additionally, 13 percent believed that a decrease in auspicious days compared to the previous season contributed to the drop in sales. The current market slowdown, driven by overall inflationary conditions, is expected to persist throughout the first quarter of the financial year.

This slowdown is affecting both the value and upper segments of consumers, according to CMAI President Rajesh Masand.

Youth embraces the Western cultural influence

Compared to the previous year, a significant majority (83 percent) of respondents reported no growth in wedding clothing sales this season. Approximately 40 percent indicated a decline of 10 to 25 percent in sales compared to the previous year.

The survey also highlighted changing consumer preferences, with economically priced products outperforming their more expensive counterparts. Lighter embroidery and pastel colors were in high demand.

The influence of Western culture and the accessibility of social media content are gradually shifting the fashion choices of the youth, particularly in the women's wear segment, where traditional clothing is being replaced by Western styles.

Men rediscover traditional attire

On the other hand, a resurgence of traditional attire among men during festivals and weddings is being observed.

Rising costs and Price-Led Growth challenge sales volume

The garment sector has been expanding at an annual pace of 8-10 percent, driven by the return of consumers to physical stores, rising costs of raw materials and production have posed challenges.

Despite an estimated overall industry expansion of 15-20 percent between 2022 and 2023, volume growth is projected to be 3-5 percent lower than the previous year, primarily driven by price-led growth

Dynamic fashion scene continuously evolves

The increasing demand for economically priced products, with lighter embroidery and pastel colors being favored.

The influence of Western culture and the accessibility of social media content have gradually shifted the fashion choices of the youth, particularly in the women's wear segment, where traditional clothing is being replaced by Western styles.

Interestingly, there has been a resurgence of traditional attire among men during festivals and weddings. This observation suggests a growing preference for cultural heritage and traditions in certain segments of the market.

While the garment sector is expected to expand at an annual pace of 8-10 percent, rising costs of raw materials and production pose challenges. 

Fashion makes a strong comeback

However, the wedding industry as a whole is experiencing a significant rebound after two years of pandemic-induced restrictions. The ethnic wear market is thriving, driven by the approximately 9.5 to 10 million weddings that take place in India each year.

As the concept of multi-day and multi-event wedding celebrations gains popularity, there is an increasing demand for occasion-specific clothes. The ready-to-wear boutique stores are replacing traditional tailor shops, offering a wide range of Indo-western wear and an expanded product portfolio for men, women, and children.

Vedant Fashions Limited (VFL) has emerged as a prominent player in this industry, propelled by the success of its Manyavar brand. With celebrity endorsements and a robust retail network, VFL dominates the wedding and festive wear segment. Their pan-India business strategy has contributed to their remarkable achievements.

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Swimwear Market Thrives with Innovative Designs and Demand

26 June 2023, Mumbai

With increased global awareness of health and fitness, the Indian attitude towards swimwear has been gradually changing, despite it being a relatively new segment in the apparel industry.
Many Indian fashion brands have recognized this shift and entered the swimwear market, offering innovative designs in popular styles such as bikinis and one-piece cut-away swimsuits.

What all you need to know
On the roll
Additionally, other silhouettes like monokinis, swimming dresses, and even burkinis have become part of the extended swimwear portfolio in India and other traditional countries.
Driven by Health and Fitness Awareness
The growth in the swimwear retail market can be attributed to various factors, including the thriving beach travel industry, the influence of social media, the rise of physical fitness, and even the inclusion of swimwear in destination weddings as part of the bride's trousseau.

Experts suggest that the swimwear segment boasts a profit margin of around 40 percent, especially due to the impact of New Age social media.
Global view
According to the latest report from Statista, a leading global provider of market and consumer data, the revenue in the global sports and swimwear segment is expected to reach $817.70 million in 2023, with an annual growth rate of 2.16 percent from 2023 to 2027.

In global comparison, a significant portion of this revenue comes from the United States, projected to reach $12,600 million in 2023, with a volume growth rate of 2.4 percent in 2024.
The Emerging Indian Swimwear Market
In India, numerous domestic brands have emerged over the past decade, posing stiff competition to international brands by offering versatile designs that cater to the shape and preferences of Indian women.
As fashion matures in India, more homegrown labels are venturing into the swimwear market, while international niche swimwear brands are also launching in the country.
Options galore; Notable international retailers like Madewell are expanding their range by incorporating third-party brands to diversify their offerings and attract new customers.

For instance, Madewell currently stocks 14 external swimwear brands. Similarly, M&S has extended its branded offerings by stocking brands like Sosandar and Fantasie.
Growing Demand
According to Allied Market Research, a renowned consulting and advisory firm, the global swimwear market was valued at $18,454 million in 2017.

Recent reports indicate healthy growth rates in India, with the market currently estimated to be worth Rs 150-200 crores and growing at a rate of 15-20 percent year-on-year.
Innovative Designs and Cultural Adaptations
Bespoke and innovative swimwear is gaining momentum, catering to diverse preferences and cultures.

For example, Mezzaluna, owned by Ajay and Kalpana Rajpal, offers a portfolio of bespoke swimsuits that range from tiny bikinis to covers-more silhouettes like monokinis and burkinis.
Beyond beachwear
Swimsuits are no longer confined to beachwear; they are now entering traditional dressing as bikinis can double as sari blouses, and maillots can be worn as bodysuits.

This shift is especially relevant with the rise of destination weddings. Neha Gupta, the founder of Exchange4Fashion, mentions that international luxury labels in India are focusing on innovative styling that suits Indian women's body shapes, incorporating overlay styles.
The Rise of Swimwear
As the swimwear market expands, entry-level prices of most brands are increasing while also providing inclusive product descriptions that emphasize slimming design abilities.

The emphasis is on inspiring body confidence while ensuring optimal shape and fitness.
Specialized niche designs, such as long-torso swimsuits and period-proof swimsuits made from recycled fabrics with Modifier Swim Technology (absorbent, stain, and odor-resistant), are also gaining popularity.

The focus on sustainability and ethical fashion is evident, with brands like Speedo and various startups producing swimwear from recycled materials. Startups are also adopting sweatshop-free production methods and using ecologically sound materials.

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Luxury Brands Tap India's Aspiring Youth

05 July  2023, Mumbai

Luxury brands in India have shifted their focus to target affluent young individuals who aspire to have a luxurious lifestyle. 

Over the next five years, the Indian luxury market is projected to experience a robust growth rate of ten percent. This has attracted a wave of global brands seeking to enter the Indian market through strategic partnerships.

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Gen Y and Gen Z to Dominate

According to Bain & Company, by 2025, Generation Y and Generation Z will constitute 70% of the global luxury market, and India is no exception to this trend.

The Indian fashion market is primarily fueled by the trend of premiumization, along with the increasing popularity of e-commerce and a growing emphasis on private labels. Additionally, the entry of international brands has further contributed to the market's expansion. 

Notably, affluent Generation Z consumers are flocking to high-end stores, displaying a strong desire to indulge in luxurious purchases and spend significant amounts of money at present.

Luxury Brands Flock to India's Booming Economy

Recognizing the immense growth opportunities in the world's fifth-largest economy, luxury brands have been flocking to India. In the fiscal year 2022, Indian consumers spent a total of $8 billion on luxury goods, as reported by Claudia D'Arpizio, the senior partner and global head of fashion & luxury at Bain & Company. 

The 21st edition of Bain & Company's luxury study predicts a rapid growth rate of three and a half times in the Indian luxury sector until 2030, attracting an additional 35 to 40 million consumers from the middle and high-income groups. These consumers, influenced by social media, have developed a strong appetite for luxury as a lifestyle choice.

The key strategy for luxury brands is to capture these consumers at a young age and witness their growth over time. They have redefined their target audience, focusing on young consumers from Generation Z and Generation Y, as they realize that their profitability lies in catering to this demographic. 

Traditional high-end glamour and lifestyle print media are no longer the primary means of reaching this audience. 

Luxury brands have embraced social media as their new best friend, capitalizing on the ecosystem it provides. Influencers with millions of dedicated followers have become the new arbiters of what's hot and what's not.

Collaborative Partnerships

The advantage of influencers is their ability to appeal to both Generation Y and Generation Z, as the former often desires a more youthful aesthetic. 

In India, several influential figures are making a significant impact. Luxury influencers hold more sway in the luxury and fashion sectors compared to film stars. 

Dilip Kapur, the founder of Indian luxury leather accessories brand Hidesign, attests to the success of Indian luxury influencers in spearheading their brand's community-level growth.

Defining Their Unique Style

What distinguishes high-end Indian Gen Z consumers is their conscious awareness of their shopping habits, surpassing their counterparts in developed markets. 

Embraces Sustainability; A 2022 Credit Suisse Research Institute report reveals that Gen Z and millennial consumers in India are more inclined to purchase sustainable products compared to those in developed countries.

Driving Luxury Brand Success in India

However, like their Western counterparts, Indian Gen Z individuals favor the fusion of luxury and streetwear styles. This generation sees no reason why everyday life cannot be luxurious. 

Achim Berg, a senior partner at McKinsey and global leader of its apparel, fashion, and luxury group, explains that combining statement luxury pieces with fast fashion is a major trend, unlike 10-15 years ago. 

Fashion designer Manish Malhotra, who recently launched "Diffuse" aimed at Gen Z, affirms that his new line strikes a balance between couture and streetwear, which resonates with younger generations.

Shifting Away from Traditional Print Media; Social Media Becomes Key Channel; Social media collaborations have become vital for luxury brands to master and fine-tune their targeted messaging. 

Social Media Landscape

India has been ranked as the seventh most valued national brand. With a notable 32 percent increase in its brand value, India has ascended one position in the list of the most valued national brands.

They leverage the assistance of social media influencers and celebrities who embody the brand's values and are relatable to their target audience. 

Often, these influencers are not exclusive brand ambassadors, and luxury brands find it advantageous to collaborate with other luxury brands, popular high-street retailers, or fast-fashion brands to stay on-trend and remain relevant.

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Workwear: Practical and Stylish Revival

01 July  2023, Mumbai

Fashion runways are witnessing a revival of smart and durable workwear styles in response to the increased demand for practical, comfortable, and inclusive fashion choices in the post-pandemic era. 

Workwear, including coveralls, uniforms, and overalls in denim or canvas with practical features and a multitude.

An overview

Revival of utilitarian workwear trends, driven by comfort and inclusivity, emerges post-pandemic, propelled by celebrities and Gen Z influencers.

High-tech innovations and sustainability shape its future.

The Rise of Utilitarian Clothing

Utilitarian clothing, encompassing workwear, army wear, sportswear, and streetwear, has expanded its presence in everyday fashion, thanks to the normalization of dressing-down days.

The influence of punk, skinhead, and football hooligan subcultures during the 80s has contributed to the ongoing trend of workwear clothing.

From Trendsetting Celebrities to Everyday Wardrobes

Sales Soar in Post-Covid Era; The comfort-focused dressing habits that emerged during the pandemic have significantly boosted workwear sales, particularly in the US market. This fashion culture has now gained popularity across Europe and other countries, finding its place in various casual settings.

Classic workwear pieces like overalls, cargo pants, jeans, and jackets are highly adaptable to different body shapes and sizes. Celebrity endorsements from icons like Rihanna, Kaia Gerber, Sydney Sweeney, and former US President Barack Obama have further popularized workwear in everyday life. 

Additionally, Generation Z and millennials are leveraging platforms like Instagram and TikTok to promote this fashion segment.

Workwear Redefines Changing Work Culture

Workwear fashion in India has witnessed a remarkable resurgence, combining practicality and style. This revival echoes the evolving work culture in the country, where traditional formal wear has given way to fashionable yet comfortable attire. 

The driving force behind this trend is the growing demand for workplace comfort and functionality. Indian workwear has become incredibly versatile, offering a wide array of styles and fabric choices. 

Spearheads the Fashion Culture

In a fascinating turn of events, many celebrities and individuals have embraced workwear as their go-to style. For instance, Timberland's renowned steel-toe work boots, originally designed for industry professionals, are now worn by a wide range of people, from plumbers to software engineers.

Timeless workwear staples such as Dickies' Classic Bib Overalls, known for their multiple pockets, have made a comeback and become a fashion statement for men in various casual settings.

Carhartt's famous hats and beanies, cherished for their quality, warmth, and personal style, have transcended their original purpose and are now worn by people of all ages. High school girls, in particular, adore them in vibrant rainbow colors.

Both Dickies and Carhartt, as century-old brands, have experienced a remarkable resurgence in the fashion scene, reimagining their image in the post-pandemic years.

Projections

According to a Grand View Research report, the global workwear market was valued at $16,773.3 million in 2021, and it is projected to grow at a compound annual growth rate (CAGR) of 5.6 percent from 2022 to 2030.

The sale of workwear is further propelled by sportswear brands. With their emphasis on durability, flexibility, and comfort, global sportswear players like Nike, Marmot, Puma, Adidas, Patagonia, Under Armour, Burton, ASICS, Columbia, and The North Face are integral to the workwear fashion movement.

Fashion Meets Function

Wearing well-fitted workwear is now considered a reflection of professionalism, especially in the manufacturing and corporate sectors. This demand is expected to continue driving the product's popularity.

While Kanye West and Julia Fox showcased workwear during New York Fashion Week, they were not the initiators of this trend. 

The rise in workplace accidents and fatalities worldwide has not only emphasized the need for appropriate work apparel and footwear but also given it a modern fashion twist, making it suitable for both casual settings and runway shows.

Denim or canvas coveralls, uniforms, and overalls, featuring numerous functional pockets and intricate details, are now gracing European fashion runways alongside women's evening gowns and men's tuxedos.

The Future of Workwear

High-Tech Innovation, Inclusivity, and Sustainability Shape Fashion Trends. 

The rising popularity of high-tech innovative outfits, designed for a perfect fit rather than a one-size-fits-all approach, as a fashion statement, presents immense opportunities for brands to thrive in the future. 

Workwear's resurgence is driven by a generation's embrace of gender fluidity, body positivity, authenticity, and environmentally friendly design choices. 

Embracing this trend, both men and women in India have embraced the blend of practicality and fashion, redefining their professional wardrobes to suit the changing times.

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Workwear: Practical and Stylish Revival

Hosiery Market: Growth Anticipated

27 June 2023, Mumbai

The fashion industry has taken notice of trendy tights, as seen on the spring/summer 2020 runways. Designers worldwide, including British designer Richard Quinn, have embraced this trend by creating tights adorned with bold floral patterns that complement their gown prints. 

Emerging opportunities; The trend of incorporating logos is also prevalent, with brands like Gucci, Saks Potts, and Fendi prominently featuring their signage on tights this season.

Balancing Fashion and Sustainability

However, the high cost of these fashionable stockings and environmental concerns have led to a boycott. 

The price of these tights often far exceeds their practical value, as they are typically worn only a few times before being discarded or torn apart, contributing to environmental issues. 

Environmental organizations such as Extinction Rebellion and the Environmental Audit Committee have investigated the impact of fast fashion and fur, and as a result, tights have come under scrutiny. 

Made from nylon emitting greenhouse gases, tights have become akin to single-use plastics in the textile industry. Their recycling process is challenging, and they often end up in landfills.

Tights Make a Statement

Fortunately, several hosiery manufacturers are now producing eco-friendly tights. Companies like Clayton offer socks made from a blend of yarns that incorporate eco-recycled nylon and microencapsulation technology. 

These yarns contain aloe vera, retinol, and vitamin E. Another brand, TLC runs a recycling program where customers can return their tights for melting, and the elastane content can be used in long-lasting plastic products such as car components. 

Environmental Concerns; Swedish Stockings is another brand that uses recycled polyamide, bio-cotton, and cashmere in their hosiery production, while also focusing on zero-waste facilities. 

Luxury hosiery label Wolford has launched a range of stockings made from recycled nylon waste and discarded fishing nets, with plans to expand their sustainable offerings. 

However, there remains skepticism about whether eco-friendly tights can be considered luxurious.

A Shift in Hosiery Manufacturing

Innerwear brand Heist also prioritizes durability in their tights. The brand has recently set sustainable goals for 2020, aiming to reduce energy consumption and greenhouse emissions. 

They plan to introduce their first line of tights made from recycled materials, utilizing sustainable technologies like Roica Eco Smart elastane and Fulgar Q-NOVA®, a sustainable Nylon 6.6 made in Italy from production waste.

The Downside of High Fashion

Despite the extra costs associated with these brands, consumers are compelled to consider sustainable options. Marks & Spencer addressed this issue by introducing ladder-resistant tights in 2007, offering extra durability and high-denier options, which have become the brand's bestsellers. 

However, the hosiery industry as a whole needs to undergo a revamp. While some brands have taken initial steps toward sustainability, substantial progress is still needed across the high street and among hesitant luxury brands.

US Market Diary

Technavio's latest market research report, titled "US Hosiery Market 2023-2027," predicts substantial growth in the US Hosiery market. 

Projected Market Expansion; The market is expected to increase by USD 2,992.99 million between 2022 and 2027, exhibiting a compound annual growth rate (CAGR) of 3.95%. The comprehensive report analyzes the market, encompassing key drivers, major trends, and challenges. 

Market Positioning

The report highlights the intense competition within the market, prompting vendors to implement growth strategies like promotional activities and increased advertising expenditure. 

Market positioning is emphasized, showcasing strategies employed by leading vendors such as Gildan Activewear SRL, Spanx LLC, Wells Hosiery, and Apparel USA. 

What drives market

Functionality Matters; Driving market growth are factors such as the high demand for designer and soft hosiery products, especially those made from organic and natural materials.

Additionally, the report identifies a significant trend of increasing demand for socks in the healthcare industry due to the rising prevalence of chronic diseases. 

Intense Competition Spurs Growth

However, changes in trade policies pose challenges to market growth, particularly with the influence of China as a major market contributor. 

Currently, over 80% of essential hosiery machinery and items are imported, creating a dependence on China and Taiwan. 

Holds limitless potential

The hosiery cotton industry in India holds significant potential and aligns well with the country's Make in India initiative. Over the past 30 years, hosiery production has grown in Delhi-NCR, Ludhiana, and Bangalore. 

However, there is still room for expansion in other cities like Jaipur, Indore, Pune, Kanpur, Varanasi, Nagpur, Surat, Bhubaneswar, Guwahati, Patna, and Ranchi. 

Promoting Domestic Manufacturing; To boost the industry, it is crucial to establish more hosiery mills and focus on self-reliance. 

By leveraging Prime Minister Modi's initiatives, India can become the world's largest hosiery producer and exporter, driving economic growth and employment opportunities.

Hosiery is in a sweet spot

The hosiery industry in India holds great growth potential, with expectations of a ten-fold expansion in the next 25 years. Emphasizing the long-term adoption of good cotton farming practices and striving for self-reliance, India can increase its global exports. 

Strengthening the Cotton Industry; Taking advantage of Prime Minister Modi's initiatives like 'Sabka Sath Sabka Vikas,' 'Make in India,' and 'Self-Reliant India,' Rikhab Chand Jain, Former President of the Federation of Hosiery Associations of India (FOHMA), highlighted the need for the industry to focus on becoming the world's largest hosiery producer and exporter.

Jain emphasized the importance of establishing more hosiery mills and expanding the industry beyond Delhi-NCR, Ludhiana, and Bangalore to cities like Jaipur, Indore, Pune, Kanpur, Varanasi, Nagpur, Surat, Bhubaneswar, Guwahati, Patna, and Ranchi.

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Textile & Apparel industry: An emerging paradigm in sustainability norms

03 July  2023, Mumbai

European Parliament Takes Bold Steps; In a decisive move to combat the detrimental effects of the "take, make, dispose" model on the environment, health, and economy, the Environment Committee of the European Parliament has made its stance clear. 

What all you need to know

Over a year ago, the committee proposed a regulation to establish eco-design requirements for sustainable products, aiming to replace the current focus solely on energy-related products. 

Now, with an overwhelming majority of 68 votes in favor, 12 against, and 8 abstentions, the committee has adopted its position on revising the EU's eco-design framework.

New product passports 

The adoption of this report in July 2023 will mark a significant milestone in Europe's journey toward a circular economy. The report will provide guidelines for the European Parliament's negotiation roadmap, facilitating directives and dialogues with individual European nations to bring about the necessary legislation. 

Members of the European Parliament (MEPs) emphasize the importance of easily accessible and comparable product passports online, enabling consumers to make informed choices. The report also recommends a ban on the destruction of unsold textiles, footwear, and other products, one year after the law's implementation.

Aim to promote transparency and longevity in the fashion industry

Under the new framework, manufacturers will be prohibited from setting product lifetime limits through design features. They will be required to provide software updates, spare parts, and accessories for an appropriate period, ensuring product longevity for the benefit of both the planet and consumers' finances. 

Every product should be easily repairable, and repair guidelines must be readily available. 

Mandatory product passports will provide transparent, authentic, and updated information, allowing consumers and businesses to make informed decisions, facilitate repairs and recycling, and increase awareness of the environmental impact of their purchases.

Circular Economy Practices Drive Sustainability

In response to the pressing need for ecological responsibility, businesses across various sectors have embraced sustainable supply chain practices, aiming to minimize the unintentional environmental damage caused by manufacturing and purchasing processes. 

Alongside this, the concept of circular economies has emerged as a powerful driver of environmental sustainability, emphasizing innovative approaches that harmonize ecosystems with economic growth.

Integrating Ecological Considerations into Supply Chain Management

This paper conducts a systematic literature review, focusing on four key themes: drivers, barriers, practices, and indicators of sustainable performance within the textile and apparel industry's adoption of a circular economy. 

While this industry plays a crucial role in employment and economic growth, it has also gained notoriety as one of the most polluting sectors globally. However, positive changes are underway as the industry embraces sustainability norms to reduce its environmental impact and improve working conditions.

Key themes

To achieve these objectives, the textile and apparel industry is implementing new technologies and processes to minimize waste, water usage, and carbon emissions. 

Ethical sourcing and fair labor practices are also gaining increased attention. As the industry transitions toward a circular economy model, the focus is on minimizing waste generation and maximizing resource efficiency through strategies like recycling and reusing materials.

Minimizing Environmental Impact

Through the adoption of circular economy practices, the textile and apparel industry demonstrates its commitment to innovation and reshapes its role as a promoter of sustainability. 

This transformation is critical not only for mitigating environmental damage but also for ensuring the industry's long-term viability. 

By fostering collaboration and prioritizing sustainable performance, the industry paves the way for a future where ecological concerns take center stage in decision-making processes.

Sustainability reporting standards protocol

MEPs also urge the Committee to prioritize specific product groups in its first working plan, including iron, steel, aluminum, textiles (especially garments and footwear), furniture, tires, detergents, paints, lubricants, and chemicals. 

Economic operators will be required to report the number and percentage of products discarded, along with the reasons, thereby enabling the Commission to identify products for a potential destruction ban. 

Furthermore, the International Sustainability Standards Board (ISSB) has developed global sustainability reporting standards that will become mandatory in various countries from January 1, 2024.

These standards will measure companies' protection against environmental risks and other sustainability issues, including labor practices.

Conscious consumerism gains traction 

The rise of sustainability in the fashion industry has been a long time coming. The movement gained momentum after disastrous events, such as the Rana Plaza collapse in Dhaka in 2013, highlighted the harsh realities of the textile and apparel industry. 

Consumers became more conscious of the provenance of their garments, and sustainability and ethics-driven consumers emerged. 

These consumers understand the impact of climate change and the consequences of a wasteful consumption culture, leading to a shift in the narrative from "fast fashion" to "less is more."

Fashion industry adapts to changing consumer demands 

Today, approximately 85% of consumers are aware of their behavior's effect on the planet, with 34% willing to spend more on sustainable and ethical products. 

The fashion industry has taken notice, with initiatives like the Horizon program supporting young 

European entrepreneurs in building sustainable and ethically sourced businesses.

However, there remains a dilemma for consumers, particularly amidst a recession, as they strive to balance their ethical values with the need to survive rising prices.

The sector embraces innovation for a more sustainable future

While fast fashion continues to dominate the market linking circular economy priorities with social benefits such as fair wages, and good working conditions, augmented by transparency in business practices, may open new business opportunities for the apparel and textile sectors.

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The Journey of Denim

29 June 2023, Mumbai

The Indian denim market is experiencing steady growth, expanding at a rate of 8 to 9 percent annually. India has long been a leader in denim fabrics, and its domestic jeans market has been growing even faster than the global expansion rate.

What all you need to know

An overview

With an annual capacity of over 1,600 million meters, India possesses the second-largest installed capacity for denim fabrics in the world, trailing only behind China. The organized segment of the industry consists of over 50 denim fabric mills, representing a 60 percent increase compared to a decade ago. 

Of the total capacity, approximately 850 million to 900 million meters are consumed domestically, including the production of jeans for export. 

The remaining fabric is exported to various countries, such as Bangladesh, Colombia, Venezuela, Egypt, and Sri Lanka.

Genesis

The origin of jeans dates back to England, but it was later developed in American mills. Denim, the durable and rigid fabric used to make jeans, is created from cotton or cotton blends using a two-toned weaving technique that results in a distinctive diagonal pattern.

This technique involves using natural or white yarn in the horizontal position (weft) and dyed thread in the vertical position (warp), giving jeans their iconic blue appearance.

Cotton or cotton blends are commonly used in denim production. The cotton fibers are gathered, sorted, and processed into yarn, which is then woven into fabric. The fabric is dyed with indigo or other colors, depending on the desired design, to create the denim used in jeans manufacturing.

Cotton's Thirsty Footprint

Story of cotton or a cotton blend; However, it's worth noting that cotton is a water-intensive crop and not as environmentally sustainable as it may seem. The production of a standard cotton pair of denim jeans can consume more than 9,000 gallons of water, accounting for a significant portion of the water footprint in textile fiber manufacturing.

To expand their denim manufacturing capabilities, some mills are investing in spindles to capture additional domestic and international markets while reducing dependence on the yarn market. 

This backward integration allows businesses to manage raw material availability more effectively and schedule timely and cost-effective manufacturing. While newer companies are striving to expand, larger and more established mills continue to consolidate their position in the market.

How Denim Fabric Evolved

India's denim industry has played a crucial role in transforming denim fabric into a global fashion staple. 

The industry's manufacturing capabilities, competitive prices, and production of high-quality denim products have contributed to its success. 

The Evolution of Denim; The country's ability to diversify its denim exports and tap into non-traditional markets has further bolstered its growth.

Stretchability and Style

To cater to consumer demands, manufacturers in developed economies are investing in creating jeans with the "perfect fit," driving product innovation in the market. 

They are also incorporating synthetic fibers to provide stretchability, enhancing the appeal of jeans. Additionally, the increasing living standards and growing consumer awareness of various jean styles, such as boot cut, high rise, cropped, skinny, tapered, and regular fit, contribute to the expansion of the market.

Global Denim Fabric Market Set for Impressive Growth, Projected to Reach USD 27.38 Billion by 2028

Projected Growth: Jeanswear Market to Reach USD 118.28 Billion by 2030. On a global scale, the denim market is projected to reach a remarkable $153 billion, with India's growth surpassing other regions. 

Several factors drive the expansion of the Indian denim market, including rising demand for denim products, the influence of Western fashion trends, and the thriving online retail sector.

The jeanswear market is poised for significant growth, with a projected value of USD 118.28 billion by 2030, a substantial increase from USD 66.77 billion in 2021. This growth is expected to be driven by a compound annual growth rate (CAGR) of 8.51% from 2023 to 2030.

Denim has been a wardrobe staple and a crucial component of the fashion industry for decades. 

The global denim market has witnessed steady growth, with a projected CAGR of over 6.5% from 2015 to 2020, increasing from $113 billion to $153 billion.

Opportunities Unlimited

Young Consumers Drive Growth: Comfort, Durability, and Versatility of Jeans; India's position in both domestic and international markets positions its denim industry for further growth. India's Growth Outpaces the Rest.

By consistently meeting the evolving demands of consumers, expanding into new markets, and embracing sustainable practices, the industry demonstrates its potential for sustained success in the coming years.

The popularity of jeans among younger consumers is one of the key factors contributing to this growth. Jeans are favored for their comfort, durability, and versatility, making them a preferred choice for many.

Sunrise

The Indian denim wear market is projected to grow at a CAGR of 15% in terms of retail sales. 

This growth is driven by rising disposable incomes, a rapidly expanding retail sector, the westernization trend, the booming internet retailing sector, a young population with higher spending power, and a wide range of consumer segments that consider denim as comfortable and stylish attire. 

Denim fabric exports from India reached US $190.78 million during the Jan.-Oct. '21 period, representing an 88.45% increase compared to the previous year. Bangladesh was the top market for Indian denim, importing $58.30 million worth of denim fabrics, showing a growth of 40.21% from January to October of this year.

Diversifying into Non-Traditional Markets; Colombia, Venezuela, and Egypt are the next three destinations for Indian denim exporters, with fabric shipments valued at US $32.71 million, US $13.32 million, and US $12.92 million, respectively, indicating significant growth.

In India, the denim market has experienced the fastest growth rate among apparel fabrics, with an annual CAGR of 15% to 18%. 

The current installed capacity of around 1,200 million meters is expected to rise to 2,000 million meters in the next few years. 

India has a significant advantage in the global market due to its access to various cotton and MMF fibers, attracting top global brands.

Industry experts predict that the denim share in international trade could achieve a CAGR of 10% over the next decade.

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Fashion Discovery Revolutionized by ChatGPT

26 June 2023, Mumbai

In April 2023, Zalando SE, the German online fashion and lifestyle platform operating in multiple European markets, including the UK, made an announcement about its upcoming launch of a personal shopping assistant powered by ChatGPT. 

What all you need to know

Introducing ChatGPT

This innovative assistant aims to help customers find the perfect products that align with their individual sense of style from Zalando's extensive range of brands and offerings. Initially, the beta version will be available to select customers in Germany, Ireland, the UK, and Austria, accessible through Zalando's app and web platforms. 

Generative AI, a subset of AI models, discovers trends and patterns within existing data, allowing for the generation of new information. ChatGPT is a powerful example of this transformative technology.

The personal shopping assistant will support both English and alternate languages subsequently.

Intuitive Shopping Experience

This new technology introduces a fresh approach to discovering Zalando's diverse assortment and provides customers with intuitive fashion inspiration. 

Fashion Discovery Redefined; For example, a Zalando shopper could inquire, "What should I wear to the office Christmas party in Berlin, where the entire board of directors will be present?" By leveraging ChatGPT's capabilities, the personal shopping assistant can understand the formality of the event, deduce the winter season in Berlin from the mention of Christmas, and generate a textual recommendation for suitable clothing and accessories. 

In the future, this functionality could be enhanced with customer preferences, including favored brands and available sizes, to deliver a more personalized selection of products.

The Power of Personalization

Zalando's adoption of ChatGPT as a personal shopping assistant follows in the footsteps of Adidas, which had previously introduced the AI-powered platform Findmine. Adidas successfully utilized Findmine to automatically generate complete outfit recommendations when customers browsed individual products. 

This implementation led to a significant reduction in the time spent by Adidas merchandisers on the online 'Complete the Look' recommendation feature and increased the number of items included in outfits for customers by an impressive 960%.

Revolutionizing Fashion Guidance

The fashion industry is undergoing a remarkable transformation, thanks to the revolutionary impact of ChatGPT.

Powered by advanced Large Language Models (LLMs) like ChatGPT-4, this technology is revolutionizing the way customers receive guidance and assistance. With its ability to create supercharged chatbots, hyper-personalized marketing copy, and innovative fashion discovery methods, ChatGPT is reshaping the landscape of fashion.

Unleashing the Power 

One groundbreaking application of ChatGPT is the development of the world's first AI stylist. This AI-powered stylist offers access to an extensive collection of curated fashion styles, meticulously tailored to specific occasions.

By leveraging the capabilities of generative AI and ChatGPT, fashion e-commerce is evolving in three key ways: personalized recommendations, enhanced product descriptions, and expert styling advice.

The Impact

Personalized recommendations are at the forefront of this revolution. ChatGPT's deep understanding of individual preferences, combined with its vast knowledge of fashion trends, enables it to deliver tailored recommendations that resonate with customers on a personal level.

This level of personalization enhances the shopping experience, helping customers discover items that perfectly align with their unique sense of style.

Groundbreaking Application

Moreover, ChatGPT enhances product descriptions, creating engaging and informative content that captures the essence of each fashion item. By leveraging its language generation capabilities, ChatGPT can generate compelling and detailed descriptions that go beyond basic specifications.

This enriched product information enables customers to make more informed purchasing decisions.

Empowering Fashion

Styling advice is another area where ChatGPT shines. With its vast knowledge of fashion styles and its ability to comprehend specific occasions or requirements, ChatGPT can serve as a virtual stylist, offering expert guidance and suggesting suitable outfits for various events or personal preferences. 

This personalized styling advice empowers customers to explore new fashion choices and experiment with their looks.

Enhancing the Shopping Journey

The versatility of ChatGPT positions it as an ideal candidate for a personal shopping assistant and more. The fashion industry can now view ChatGPT as a valuable partner. Tian Su, the Vice President of Personalization and Recommendation at Zalando, expressed excitement about experimenting with ChatGPT and helping customers discover fashion they will love. 

Zalando aims to gain a deeper understanding of its customers' needs and preferences and explore the potential benefits ChatGPT can bring to their shopping journey. Zalando's focus remains on continuously testing and introducing new solutions to provide the best possible experience for its customers.

How AI Revolutionizes Fashion

ChatGPT demonstrates an extraordinary level of personalization, utilizing data on current fashion trends, styles, and individual preferences. Through collaborative filtering, it presents comprehensive recommendations that are easy to comprehend and also consider the customer's budget if provided. 

The outcome is a highly rewarding and efficient personalized shopping experience.

A Valuable Partner

Beyond Zalando's personal shopping assistant, ChatGPT holds significant potential for various retail businesses. It can assist with successful product launches, analyze customer feedback, reviews, and social media conversations, conduct competitor analysis, drive social media engagement, facilitate upselling and cross-selling during customer interactions, forecast trends, and provide localization and language support for global brands.

The Versatility

The remarkable versatility of this software equips businesses with a refined and well-informed environment, enabling them to make informed decisions, remain competitive, and stay relevant in the ever-changing world of fashion.

The Future of Fashion

ChatGPT is spearheading a revolution in the fashion industry by delivering increasingly relevant and helpful guidance to customers. Through personalized recommendations, enhanced product descriptions, and expert styling advice, 

ChatGPT is transforming fashion e-commerce, enabling customers to make informed choices and discover new fashion possibilities. The future of fashion is being shaped by the powerful capabilities of ChatGPT and generative AI, leading to a more personalized and immersive shopping experience.

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