2 AO India | December 2023 December 2023 | AO India 3 CONTENTS 30 COVER STORY The Uniform Code: A Sector Poised For Growth Image courtesy: maharishi’s FW ‘23 campaign INDUSTRY VERDICT 12 I What Have You Learned From Overseas Brand And What Are The Areas Where Indian Brands And Retailers Are Lacking Compared To Them? RETAIL RIGHT// //NATIONAL 14 I The Surpassing Surplus Business p14 Indian stocklot market size of US $ 3 billion or even more RETAIL RIGHT// // NATIONAL NEWS 16 I Apparel Retailers Poised To Expand Their Offerings RETAIL RIGHT// //INTERNATIONAL 20 I Gamification Of Fashion: A Combination That Is Fast Becoming A Hit RETAIL RIGHT// // INTERNATIONAL NEWS 24 I Luxury Brands See Increased Sales p20 Fashion is embracing gaming as a great opportunity EXPERT SPEAKS 26 I India: The World’s Manufacturing Hub For Apparel And Textiles Or Has It Missed The Train Yet Again? BUYING & SOURCING 36 I Sourcing 2.0: Pioneering The Next Era Of Apparel MANUFACTURING// //NEWS 40 I Trade Organisations Enthusiastic About The Growth Of Textile And Apparel Industry 4 AO India | December 2023 p36 Focusing on the evolution of procurement through ‘Sourcing as a Service’ (SaaS) using AI and ML November 2023 | AO India December 2023 | AO India 5 5 CONTENTS SUSTAINABILITY 42 I Organisations Helping In Sustainable Manufacturing SUSTAINABILITY// //NEWS p42 There are many non-governmental organisations which not only talk about sustainability but also actively help the industry move forward with their sustainability initiatives and provide services to aid them 46 I Organisations Collaborating With Focus On Recycling TRENDS IN FOCUS// //RUNWAYS 48 I Runway Recap: Unveiling The Accessories, Bags And Footwear Trends Defining S/S ’24 FASHION BUSINESS 54 I Eco-Pioneers Of Change: Meet The Circular Design Challenge Champions Redefining Sustainable Fashion On A Global Scale DESIGNERS & LABELS p48 From the revival of nostalgic classics to the introduction of daring accessories, the runways depict a season marked by versatility and bold experimentation 62 I From Clusters To Couture: Five Point Five’s Saree Odyssey Championing India’s Weaves START-UPS 68 I Decoding India’s Fashion Start-up Landscape START-UPS// //NEWS 70 I Groyyo’s B2B Trading Business In Trouble As Investors Contemplate Closure TRADE STATISTICS 72 I US Apparel Imports (January-September 2023): Apparel Imports Fall In September ’23 Over August ’23! p62 At Five Point Five, every saree tells a story and carries a piece of India’s rich heritage p68 In the past decade, the Indian fashion industry witnessed a profound shift propelled by the rise of start-ups 6 AO India | December 2023 The smart choice for decorators worldwide. 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EDITIONS INDIA BANGLADESH VIETNAM 8 AO India | December 2023 www.apparelresources.com December 2023 | AO India 9 December 2023 | AO India 9 EDITOR’S NOTE FROM THE EDITOR-IN-CHIEF’s DESK… Indian apparel exports are stuck in a rut! The Apparel Export Promotion Council, under the Ministry of Textiles, has set a target of US $ 40 billion by 2030. No doubt, India holds significant export potential. However, being pro-industry, my concern lies in the stagnation of India’s apparel exports, which has remained around US $ 16 billion since 2014-15. Even in 2022-23, the apparel exports increased by just 1.1 per cent to US $ 16.20 billion from US $ 16.02 billion in 2021-22. Exports reached their peak at US $ 17.4 billion in 2017. Back then, industry stakeholders were confidently projecting a rapid growth of apparel exports, predicting a surge to US $ 42 billion by 2025. However, contrary to this ambitious target, we have been unable to even surpass the 2017 peak. In October 2023, India’s apparel exports declined by 8 per cent compared to October 2022. In the current fiscal year (April to October), garment exports have decreased by 14.58 per cent. So, how can India raise its exports by a staggering 150 per cent to achieve the apparel exports target within the next seven years? The primary government initiatives such as PLI and PM MITRA Park aren’t specifically tailored for apparel exports and even if these schemes are optimally executed, achieving this target seems improbable. The PLI scheme, which has seen multiple extensions in terms of application dates, has only 10 apparel exporters out of 64 approved applications. Additionally, amongst the 25 companies associated with apparel exports, their combined turnover is less than US $ 4 billion. Most of the approved applications are from different segments and product categories within the textile supply chain. Goyal—ambitious targets for apparel exports have been consistently announced. Amongst these aims stood the audacious target to reach US $ 100 billion by 2030. But have we ever met these targets? No. This makes me wonder: Is there a strong roadmap in place by the Government, AEPC, or any other body to ensure a substantial increase in apparel exports? APEC claims a projected target of US $ 40 billion by 2030, citing initiatives like exploring new markets and nurturing strategic alliances. However, these initiatives have undergone a repetitive cut-and-paste cycle across successive governments for years. Where is the comprehensive, detailed roadmap that covers every intricate aspect crucial to achieving this target? The Government has recently placed its bets on the Bharat Tex event, claimed as the largest textile show in the world in terms of exhibition area and which promises to showcase India’s capabilities as a reliable supplier of textile products spanning the entire value chain under one roof. But who is going to execute this initiative? 11 Export Promotion Councils (EPCs) under the MoT will together organise this event. The same EPCs, particularly AEPC, so far have failed to beef up exports. Similar initiatives have been attempted previously, such as Tex-Trends India 2012 in Delhi and Textile India 2017 in Gandhinagar, both yielding no significant outcomes. The question arises: Are our policymakers, government or stakeholders overlooking this history? Why hasn’t there been any fresh approach, new leadership or innovative ideas brought to the table to improve India’s textile and apparel exports and achieve the target set? The effectiveness of 7 PM MITRA parks in boosting apparel exports even remains uncertain as the thrust of these parks is not just on apparel exports but on the entire supply chain. If things go according to plan, these parks will be established by 2026-27. Throughout the tenure of various ministers —from Kashiram Rana, Syed Shahnawaz Hussain, Shankersinh Vaghela, Dayanidhi Maran, Anand Sharma, Kavuri Samba Siva Rao, Santosh Kumar Gangwar, Smriti Irani to Piyush 10 AO India | December 2023 Deepak Mohindra Editor-in-Chief e-mail me at dmohindra@apparelresources.com Deepak Mohindra NEXT-GEN BRANDING TRIMS THE LEADER IN SERVICE AND QUALITY India's largest branding trims manufacturers with short lead time, best price and excellent service! Design & Product Development Support Dedicated Customer Service Teams Latest Trims Technology And Design Range Of Product Options Woven Labels Heat Transfer Labels Trimming Tapes Printed Care Labels Badges And Patches LEADER IN SUSTAINABLE PRODUCTS Nimit Mardia (Managing Director): +91 96878 34711 Shreya Mardia (Executive Director and Marketing Head): +91 96878 34711 Siddarth Trivedi (BDM): +91 98792 27372 11 December 2023 | AO India 11 December 2023 | AO India INDUSTRY VERDICT Q&A It is a strong perception that most Indian apparel brands and retailers follow the international retailers at various levels when it comes to strategies for pricing, marketing, visual merchandising, use of technology, store experience etc. As a brand or retailer, how do you see this? What has influenced you the most in international brand and retail scenario? What you have learned from it? Many international brands and retailers have established strong foothold and command good scale of operations. What are the areas, according to you, where Indian brands and retailers are lacking? future, they will grow exponentially and would have more space in western world. It may take time but will happen for sure. extensively uses RFID technology in all its processes including retail. On similar lines, we are also trying to learn from Jockey (Page Industries) right from the way it deals in its manufacturing processes to its strong brand presence in most of the Indian villages. Hemant Jain Director, KKCL India is one of the fastest growing markets across the globe, however, still most of the Indian brands have not been able to make it that big compared to western brands when it comes to quality, designs, growth etc. One must understand that brand building takes time and most of the international brands which are successful and doing well in global and Indian markets, are very old as they have been into the market for five to six decades or even more. All these require a lot of investment, so we have to invest in our brands. But seeing the high aspirations of Indian brands to excel through innovation, diversification, flexibility and value addition, I am sure that in 12 AO India | December 2023 Sunil JhunJhunWala Director, Techno Sportswear We can learn many things from various international brands, especially those which are doing well in India. Uniqlo is one of the biggest inspirations in this regard as without investing much in marketing and having comparatively less number of products, its performance has been really good. It offers superior quality material and comfort to the wearer and that too at reasonable pricing. Similarly Decathlon is very strong in supply chain management and Ashmeer Sayyed Chief Retail Officer, DaMENSCH Perceptions are based on the origin of brands. If Indian brands have taken inspiration from western/international brands, undoubtedly, they would not reinvent the wheel. Brands with ‘Made in India’ ethos adapt strategies like pricing and marketing to suit Indian consumers. They may embrace deep discounts INDUSTRY VERDICT or maintain a premium image without discounts. While using international models has been the norm to convey a premium image, there’s a growing trend of adopting locally relevant technology and innovation. So, the reality falls somewhere in between, with Indian brands balancing global inspiration with domestic insights. From DaMENSCH’s perspective as a brand, we prioritise an indigenous approach to pricing. As a D2C brand, we closely understand and align with consumer expectations, reflecting this understanding in our pricing strategies. As we expand into offline retail, we are committed to maintaining price parity as much as possible across our multi-channel approach. This ensures that our customers can expect consistency and fairness in pricing, regardless of where they choose to shop, be it online or in physical stores. Our biggest influence from the international brand and retail landscape has been the recognition of the legacy that some of these brands have built over time. Many of these brands have established themselves as market leaders, often benefiting from factors like intellectual property protection and formidable entry barriers. In the current Indian retail scenario, the post-pandemic era has presented exciting opportunities, especially with the rise of D2C models. This environment has allowed emerging brands like DaMENSCH to identify and capitalise on niche opportunities. We are open to challenge the existing norms and are committed to disrupting the status quo. Our journey reflects the dynamic nature of the Indian retail market, where innovative approaches can thrive and create new legacies. The number of years that international brands have been able to enjoy the space, has helped them grow (slower or faster) in absence of newer entrants. Indian brands are currently focusing on enhancing their R&D efforts and improving the consumer experience. To do so, there’s a need to give priority to expanding their access to research or investing in this domain. In contrast, IT companies have successfully accomplished this over the past 25 years, while consumer brands continue to heavily draw inspiration from established international brands. Boosting the consumer experience is crucial, especially within the Indian market, where consumers are regarded as royalty and rightly so. Furthermore, given the vast consumer base served by Indian retailers, the importance of this endeavour gets augmented all the more. On the other hand, there are several Indian brands that are clear about their brand voice and design handwriting. While some of them are in the designer and luxury segment such as Sabyasachi, others are more in mainstream (such as Tata Group’s brands). More such Indian brands need to be confident in presenting themselves in a unique way, rather than copy pasting looks and practices from European and American brands. As far as organisational processes, technology and customer interface are concerned, Indian companies tend to lag behind their western counterparts. The international brands are built on well-defined systems and promise greater reliability, which are significant enablers in scaling up quicker. Most of the Indian brands are still relatively young in their lifecycle and the abundant ‘lower cost’ people in India often make technology an afterthought. This is something that has to change. NEXT INDUSTRY VERDICT QUESTIONS Devangshu Dutta Chief Executive, Third Eyesight A large segment of Indian consumers have been seeing international brands as aspirational and trendsetting for decades. This has led to a situation where most Indian brands have become followers, in terms of styling, product design, visual merchandising and customer experience. In some cases such as advertising, Indian brands (especially for westernwear) are using foreign models as a conscious choice to capitalise on the conscious or subconscious bias in the consumer’s mind that an ‘international look’ is more premium or desirable. Festivals and weddings, the biggest shopping seasons, are the most awaited for by the Indian apparel retail industry. How was this recent season for you, and looking forward, how do you see the upcoming fourth quarter which has weddings and few of the festivals on cards? Have you observed something interesting, different or new in the recently concluded season? Based on your observations, what strategies do you plan to incorporate for the future? SEND YOUR COMMENTS contact@apparelresources.com December 2023 | AO India 13 RETAIL RIGHT//NATIONAL THE SURPASSING SURPLUS BUSINESS Garment surplus comes from three major segments: first, the extra garments manufactured (for exports as well as domestic) to cover up for quality issue; secondly, garments or shipments rejected by the buyers due to quality, timely delivery or any other issues; and third, leftover (unsold) garments of various retailers, brands etc. Rather than sending these remaining garments to landfill, they are picked by the specified firm dealing in surplus garments. It is also being observed that in the name of surplus, few of the manufacturers sell fresh garments similar to styles already selling as hot items in market. From top brands to high-quality unbranded garments, innerwear to blazers and fashion accessories, nearly all products come under this surplus range. Value for money, good quality products and aspirations of brands are a few of the main reasons ensuring the growth of this market segment, which according to industry survey conducted by Apparel Online and views shared by various stakeholders, may have a market size of US $ 3 billion or even more. Huge market size India’s apparel export is around US $ 16 billion, and taking a conservative approach, even if 10 per cent of this goes as the stock lot, the figure stands at US $ 1.6 billion. These sell at a 20 per 14 AO India | December 2023 cent to 30 per cent reduced value from the prices originally quoted by the buyers that translates into an approximate market value of US $ 480 million. With a similar conservative approach, the surplus from the domestic manufacturing market is more than US $ 1,200 million, considering that the manufacturing market is worth US $ 40 billion. Another aspect of surplus items comes from retail store perspective. Consider this – a retailer fails to sell a section of its inventory and is then bound to bring these products at much cheaper rate to the surplus market. In general, as reports and retailers state, this unsold inventory at retail level is worth US $ 4 billion in India. These products, when introduced to the surplus firms/sellers, get value depreciation of 70 per cent – 80 per cent depending on the brand value, which makes this leftover inventory worth around US $ 1,200 million in stock lot market. One of the senior executives of Reliance Trends states on the request of anonymity that whatever remains unsold in Trends stores, they try to sell it at higher discounts on various online platforms. If apparel remains unsold even after a heavy discount, Jio Mart is the last option to sell it directly to the consumers. In worst case, the garment goes back to the stock lot firm. On an average basis, at least 3 per cent of apparel go to the surplus firms. Markets in India and working of surplus Nearly all the manufacturing hubs have surplus firms, be it in Delhi, Tughlakabad, Seelampur and Laxmi Nagar. These firms have strong relations with various manufacturing units and approach them time to time for surplus. Agents working with manufacturing firms, brands and surplus firms are also instrumental to this business. A similar approach is followed in most of the hubs. Priorities to consider while selecting stock lot Like in fresh products, in stock lot too, quality, price and brand value are important for nearly all Indian wholesalers and retailers. The lot size also matters to a great extent as good wholesale firms prefer big lot orders so that they can have more variety and maximum sizes. Fashion trends and brand aspirations are also highly important as they fetch more value at every stage. For many, ‘brand’ matters the most as consumers have aspirations to wear top brands and when they purchase a lot of branded garments, quality is not a challenge. And in branded garments, sellers get comparatively good prices too. If the lot is of good quality, it becomes the priority of surplus firms, but to ensure RETAIL RIGHT//NATIONAL quality, they randomly check around 10 per cent of products of the total lot. One segment in this category are into selling apparel with minor defects which is a concern for top brands or established retailers but this does not bother customers as these defects are rarely visible. Such products get good value based on the level of defects or rejection. This is a growing segment for stock surplus sellers as they get reasonably good prices from the customers for such garments. “Few of the brands are equally preferred across India and such products are easy to sell, so branded garments are always a priority for us,” says Sunil Babber, Director, A Rose Inc. The Delhi-based stock lot company takes surplus from nearly all leading hubs of India and even keeps the stock for 3-4 months if the surplus is of good quality and is expected to sell. Megha of Delhi-based Western Apparel Hub, a banker who currently runs a successful apparel stock lot business says, “We got a stock lot of 1,000 pieces to 50,000 pieces and prefer to get as big as the lot, so that we can have more options and can serve more retailers.” Offline is a major market, Online can be good option Almost all the surplus garments get sold offline, be it specific showrooms proudly selling these as ‘Export Surplus’, or sellers selling at various places randomly including roadside. Delhi-NCR and other metro cities have many such stores whose stock includes a large range of surplus products of menswear, womenswear and kidswear. Though few of the sellers ‘anyhow’ manage to sell surplus garments online also, but it is minuscule as reputed online platforms prefer selling only fresh garments and they require those in all sizes while surplus doesn’t guarantee providing all sizes. However, industry stakeholders believe that selling such products online can be a good option but so far, they not been explored well. This process requires minimum investment and return is expected to be more. Growth avenues Almost following the system of fresh market, surplus suppliers are expanding their business for continuous growth. Adding new product ranges, new clients and new factories to get different types of stock lots are a few major steps being taken up by them to ensure growth. Many stock surplus firms now have the entire range of basic to fashion products which include even lingerie and underwear. Nowadays, stock lot suppliers are also offering accessories like bags and footwear. Few of the suppliers who work mainly Across India, there are many stores selling branded export surplus; selling such products online can be a good option India’s apparel export is around US $ 16 billion and taking a conservative approach, even if 10 per cent of this goes as the stock lot, the figure stands at US $ 1.6 billion. These sell at a 20 per cent to 30 per cent reduced value from the prices originally quoted by the buyers that translates into an approximate market value of US $ 480 million. for domestic market, are now eyeing the export market also so that they can sell stock lot which are welcomed in the overseas market. Legal aspects Garment surplus business is semiorganised as well as unorganised but when it comes to selling branded garments in surplus market, legal aspects have to be taken into consideration too. Obtaining a release order from the brands or retailers is the best way to sell branded garments through surplus. In case release order is not there, companies prefer to cut the label to avoid any further issues. “We try to get a proper piece of branded garment which matches the exact with a surplus. It creates a belief in our clients that they are getting a real branded garment but without a label,” tells a stock lot seller who doesn’t want to share his name. Getting approval from the brands for selling goods in the surplus market is a long and tedious process. As per market insiders, a lot of fake branded goods are available in the market and to avoid selling their ‘leftover’ garments in such markets, reputed brands and retailers don’t leave any stone unturned to clear their inventories through different channels. Many brands and top retailers clear their unsold stuff in their remote area stores and secondary stores at heavy discounts. December 2023 | AO India 15 RETAIL RIGHT//NATIONAL NEWS Apparel retailers poised to expand their offerings Apparel retailers are taking advantage of the growing opportunities in India to expand their stores across India with a focus on Tier-2 and Tier-3 cities. Men’s fashion brand Snitch is set to broaden its footprint in smaller cities and towns, with plans to launch seveneight offline stores in locations such as Surat, Mumbai and Pune in the current financial year, according to a statement from the company’s founder, Siddharth Dungarwal. Despite already having a strong presence in Tier-1 and Tier-2 cities, the brand aims to delve deeper into Tier-3 and Tier-4 markets with its expansion strategy. “The next set of strategies for us is to penetrate deeper into the tiers and geographies, into the Tier-3 and Tier4 plus in terms of team building,” said Siddharth. “Expanding our offline stores now, we’ll be having at least seven to eight offline stores in places like Surat, Mumbai, Pune and Hyderabad by FY ’24,” he added. The fashion brand started its journey as a B2B player in 2019. It expects a revenue of Rs. 250 crore in the current fiscal. “We did Rs. 11 crore in FY ’21 in terms of net revenue, in year two we did Rs. 44 crore in revenue (FY ’22). In our third year, we closed at Rs. 110 crore in FY ’23, and this year, we should close at Rs. 250 crore.” The company launched its app about two years ago with over two million downloads of the app and 55 per cent of the 16 AO India | December 2023 revenue coming through the same, Siddharth said. Similarly, CityKart, one of the leading value retail chains, is eyeing an investment of up to Rs. 100 crore across India and will open up around 25-30 stores by the end of FY ’23-24, with a significant investment also contributing to the employment of around 7001000. Currently, it is operating 95 stores in 73 cities across 8 states. In a press release, the retailer said that it has attained remarkable growth and success in the Indian market. Having raised Rs. 105 crore to date for the expansion plan of attaining 300 stores by 2026, CityKart is aiming to capture a significant market share and become a bustling shopping hub for residents and fashion enthusiasts. Ritesh Rathi, COO, Citykart said, “We are thrilled to have experienced such tremendous growth and success in the Tier-2 and Tier-3 market. The overwhelming response and acceptance that we have received from our customers has encouraged the entire Citykart team to expand our store presence and product offerings.” Additionally, Apparel Group India has announced expansion into six Indian Tier-2 cities – Udaipur, Ranchi, Kozhikode, Kanpur, Udupi and Mangaluru. This strategic move aims to capture the untapped potential of regional markets and marks a significant milestone in Apparel Group’s commitment to making international brands accessible to every corner of the country. This move also signifies the company’s commitment to capitalising on the evolving market dynamics and catering to the rising demands and preferences of consumers in these regions. “Apparel Group India’s expansion in these cities is a testament to our commitment to meet the evolving needs and aspirations of our customers,” stated Tushar Ved, President – Apparel Group India Pvt. Ltd., adding, “The Tier-2 cities are experiencing a surge in brand consciousness, influenced by the power of social media and increasing media exposure, as well as the availability of quality retail spaces. They represent an exciting opportunity for growth and we are eager to bring the latest trends to their doorstep.” SNIPS The Diwali season has witnessed a record retail sales of Rs. 3.75 lakh crore, according to CAIT, with textiles and garments accounting for a 12 per cent share of the sales. Styched, the leading Indian D2C fashion and lifestyle brand, has announced the revival of the casual sneaker label, Flatheads, following a significant acquisition deal. TMRW, the brands’ business of The Aditya Birla Group, has invested Rs. 155 crore (about US $ 18.6 million) in The Indian Garage Co (TIGC), one of the leading D2C brands. Brand Studio Lifestyle (BSL), a hub of fast fashion, reported a substantial growth of 132 per cent in annual shipments, totaling a record-breaking 43 lakh pieces in October, attributed to the sale of trendy Gen Z-focused styles. SBI Card and Reliance Retail have partnered to introduce the ‘Reliance SBI Card’, a lifestyle-focused credit card catering to diverse customer segments and spending needs. RETAIL RIGHT//NATIONAL 17 December 2023 | AO India 17 December 2023 | AO India RETAIL RIGHT//NATIONAL NEWS Apparel companies see a good Q2 with growing profits Trent is one of the leading players in the branded retail industry in India. Its apparel retail operation under Westside has over 22 labels while the Zudio brand is growing aggressively. Indian apparel companies saw good Q2 results with rise in profits and revenue. They are also banking on the festive and wedding seasons to further increase these profits. Indian textiles maker Raymond eked out a marginal rise in its net profit for the September quarter, despite a delayed festive and wedding season that typically boosts demand. The company’s consolidated net profit for the quarter ended 30th September inched up to Rs. 159.78 crore from Rs. 158.86 crore in the previous year. Revenue from operations, however, grew by 4 per cent year-on-year to Rs. 2,253.4 crore from Rs. 2,168.2 crore in the same period previous quarter. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at Rs. 382 crore, up by 7 per cent from Rs. 358 crore in the previous year. “With the onset of festivities and wedding season, we at Raymond are optimistic that there will be an uptick in consumer demand and overall sentiments should remain positive,” said Gautam Hari Singhania, Chairman and MD, Raymond Ltd. “Raymond continues to attest its growth momentum with strong quarter-on-quarter performance and Q2 FY ’24 was the 9th consecutive quarter that reported the highest-ever performance both in terms of revenue and EBITDA,” the company said. The company’s branded textile segment saw a stable top- 18 AO India | December 2023 line performance during the September quarter, with sales of Rs. 933 crore, compared to Rs. 912 crore last year. The quarter saw a reduced offtake due to postponed festivals and wedding dates, further impacted by the presence of an additional month (adhik maas) in the Hindu calendar this year. Despite these factors, the segment maintained a healthy EBITDA margin of 22.1 per cent. The branded apparel segment achieved significant growth in the second quarter of the fiscal year 2024, with sales reaching Rs. 437 crore, an impressive 18 per cent increase compared to Rs. 370 crore in the same quarter last year. This remarkable growth is attributed to the exceptional performance of the company’s own retail stores and the large format stores (LFS) channel. Garmenting segment sales grew by 18 per cent to Rs. 312 crore in Q2 of FY 2024. The business continues to leverage high demand in the US and European markets, the company said. Similarly, Tata Group’s Trent Limited reported a surge of 188.9 per cent in consolidated net profit at Rs. 228.06 crore in Q2 FY ’24 against the net profit of Rs. 78.94 crore in Q2 FY ’23. In a regulatory filing, the company said that its total income jumped 51.4 per cent to Rs. 3,062.47 crore in Q2 FY ’24 as against Rs. 2,022.66 crore in Q2 FY ’23. Noel N Tata, Chairman, Trent Limited commented on results, “Our lifestyle offerings across concepts, categories and channels witnessed strong momentum in Q2 FY ’24 despite challenging market conditions. We continue to see growing relevance for our offerings, resilience in our business model choices and attractiveness of our differentiated platform. We will expand and deepen our store presence with the aim of being ever more proximate and convenient to customers reinforcing our brand promise.” Additionally, during the second quarter for current fiscal, for Reliance, the fashion and lifestyle segment grew by 32 per cent year on year. Despite the fact that the holiday season falls entirely in the next quarter, the offline business grew strongly. Overall, Reliance Retail Venture’s gross revenue increased to Rs. 77,148 crore in Q2 of FY ’24 compared to Rs. 69,948 crore in Q2, FY ’23. It performed well online as well as offline as the company’s financials say that Ajio, the fashion e-commerce platform of Reliance expanded its catalogue by 50 per cent Y-o-Y. Its offline business delivered robust growth despite festive period falling in current quarter. The company recently launched a new format ‘Yousta’, offering fast fashion at affordable prices targeted the youth segment while Trends launched concept stores with futureready, immersive shopping experiences. “I am delighted to report that we have delivered yet another quarter of stellar performance and achieved an all-time high across financial matrices,” said Isha M. Ambani, ED, Reliance Retail Ventures Limited. 19 December 2023 || AO 19 October 2023 AO India India 19 December 2023 | AO India RETAIL RIGHT//INTERNATIONAL GAMIFICATION OF FASHION: A COMBINATION THAT IS FAST BECOMING A HIT Because of their increasing popularity and the possibilities for virtual sales, partnerships and influencer marketing, video games are being taken seriously by the fashion industry. There is nowadays an increasing desire for stylish virtual apparel and accessories because of the chance to connect with a new and interested audience, personalise avatars and showcase personal style. The gaming sector is valued at billions of dollars and the fashion industry now has access to new revenue streams, thanks to the growth of e-commerce. Prominent fashion retailers such as Gucci, Prada, Louis Vuitton and Moschino have ventured into the realm of virtual 20 AO India | December 2023 fashion by means of immensely popular game franchises, ranging from Roblox and other metaverse gaming platforms to The Sims and League of Legends. Why fashion and gaming are a good fit The relationship between identity and fashion has always been close. Customers use labels, fashion trends and apparel to visibly convey their individuality and sense of style. The same is true for gaming in many respects. Gaming and fashion also go hand in hand because both aim to give enthusiasts a world of larger-than-life, aspirational experiences. Avatars, the virtual representations of players, take on the appearance and attire of the actual players. Think about the multiplayer shooter game Fortnite, where a player's avatar and the ‘skins’ they choose to use to play can reveal their gaming history as well as their unique sense of style. Most skins are purchased, just like clothing and some have a finite shelf life. Furthermore, avatars and skins can convey cultural and trend knowledge, just like clothing in the real world, which is something that young customers are eager to flaunt. When these cultures are reduced to their most basic components, the cachet of sporting RETAIL RIGHT//INTERNATIONAL smartphone users to devoted PC and console owners. Even while gamers come in all different age groups, the great majority of younger viewers turn to gaming over more conventional media as their primary source of socialisation and pleasure. Fashion brands had to swiftly think outside the box in order to reach audience during the Coronavirus pandemic. They had to move away from the typical ‘shop window’ out-of-home model into the digital world. Premium fashion label Balenciaga collaborated with the well-known battle royale game Fortnite to showcase its apparel collections through exclusive skins that could be acquired in-game. Louis Vuitton x League of Legends Capsule collection a designer label is similar to that of using a prized skin to play a game. Apart from virtual skins, the market for apparel collaborations is also quite well. Capsule collections become a hit when they’re paired with hit games. Epic Games collaborated with Japanese fastfashion giant Uniqlo. The two teamed up to create a new apparel collection inspired by Fortnite, which launched in December 2020. The launch was a massive success, featuring characters from the game on the front (and often back) of sweatshirts, T-shirts and more. Louis Vuitton partnered with Riot Games to design a League of Legends Capsule Collection. The collection presents the game’s theme across T-shirts, sneakers, pants, bags and select items with price tags as low as US $ 170 up to a US $ 5,600 leather jacket. Diesel, H&M and recently, Moschino have all partnered with the Sims franchise for several capsule collections. League of Legends launched a streetwear collection with Aape by A Bathing Ape. The gaming-fashion collaboration is also seen in the game Animal Crossing’s design that allows players to dress their avatars in Prada, OffWhite, Ratberry (by Burberry) and Gucci Arcade. These projects have taken the ‘Lux x Gaming’ (luxury and gaming) world by storm and created an unlikely demographic of new gamers. How fashion and gaming combine and collaborate Over 3.2 billion individuals play video games globally, ranging from infrequent Over 3.2 billion individuals play video games globally, ranging from infrequent smartphone users to devoted PC and console owners, with the market in 2023 projected to have over US $ 240 billion in revenue. Additionally, reports revealed that a growing number of fashion enthusiasts are becoming major gamers. According to Anzu's study on American gamers, 76 per cent of them follow influencers and fashion companies and 66 per cent of them indulge in upscale brands. Many of the US gamers who participated in the survey turned out to be affluent buyers; 47 per cent said they bought Gucci, 43 per cent purchased Dior and 29 per cent bought Chanel. Additionally, fashion businesses are utilising gaming in more intelligent ways than in the past. Examples include Louis Vuitton gracing League of Legends' MOBA (Multiplayer Online Battle Arena) main stage, which attracts over 117 million monthly active players and is the fourth most popular PC game of 2022 and Prada showcasing its clothing in Ubisoft's thrilling racing game, Riders Republic. With League of Legends, the fourth most played PC game of 2022 and a well-known MOBA with over 117 million monthly active players, Louis Vuitton promoted its products with exclusive content. The emergence of metaverse, which gave fashion houses ranging from high-street to high-end access to a global audience of socially conscious gamers, has been another factor driving the growth of fashion brand gaming advertising. December 2023 | AO India 21 RETAIL RIGHT//INTERNATIONAL Fashion brands can now choose which games, audiences and genres to target with intrinsic in-game ads, which are ad placements that are specifically created in the game environment, as opposed to being limited to expensive ‘one-off’ collaborations, thanks to the rise and adoption of in-game advertising. Levi's, with the help of Anzu's in-game advertising solution, was able to advertise its 501 jeans brand range across a variety of thrilling PC and mobile games, including hugely popular titles like Trackmania, Tennis Clash and Gravity Rider Zero. This is a shining example of successful ingame ads. Gucci in Roblox Due to this, Levi’s saw a 6 per cent increase in brand consideration, a 16 per cent increase in brand ad recall amongst consumers of premium jeans and nearly two-third of exposed gamers took an affirmative action after seeing the ad in-game, such as visiting the Levi's website or shopping in its online store. Levi's Ad in Video Game In Roblox, a gaming metaverse platform with over 42.3 million daily active users worldwide, Gucci famously unveiled its Gucci Garden Experience. Meanwhile, American Eagle used the platform to create its own AE Clubhouse and advertise its 2022 Spring Collection in Livetopia, one of Roblox's top 10 experiences with over 1.5 billion visits at the time of the campaign. Apart from games, another untapped resource which is coming into the limelight are the gamers themselves. Top gamers are new celebrities and influencers since they earn their millions from leveraging their massive online followings into endorsements, fees and sponsorships. Ninja (Tyler Blevins) is one of the first pro-gamers to have his own sneaker collaboration. He has released his collaborative sneakers with iconic brand 22 AO India | December 2023 Adidas. His current fan following is 18.77 million on Twitch and he has 23.7 million subscribers on YouTube. His net worth in 2023 stands at US $ 17 million. Designer Heron Preston has collaborated with Puma to design jerseys that were worn by Esports organisation Gen.G during their League of Legends World Championship. Games: An alternative marketing strategy The gaming industry has developed creative ways to promote their collections, such as using prominent fashion companies to outfit game characters or inserting advertisements on mobile games. Subtle marketing that is incorporated into the game and plot itself is gradually replacing traditional marketing. Adidas and EA Sports teamed together to provide FIFA ’22 players with a special discount on select Adidas items. These partnerships and transactions benefit both businesses. Similarly, characters were outfitted in the recognisable Balenciaga clothing through a partnership with Fortnite. Some companies are even creating exclusive, one-of-a-kind products just for those games. Certain Fortnite-branded clothing were sold in fast-fashion stores like Primark and on well-known e-commerce sites like Amazon. The relationship between fashion and video games is becoming increasingly important and influential. Through collaborations, influencer marketing and e-commerce, the fashion industry is finding new and innovative ways to engage with players and sell products in the gaming world. The relationship between fashion and video games is expected to continue to grow and evolve in the coming years, providing exciting new opportunities for both industries. VASUDHA PRIMO CRAFTED FROM REGENERATIVE ORGANIC COTTON G IN UR SU L TERIA MA TE SOLU COMPO B A ST I AW NG 100% compostable Regenerative Organic Cotton RESPONS IBL ER ST AIN A B LE M A N CT A UF Solar Powered facility Energy and water efficient machines ZDHC MRSL V2.4 & ZLD Compliant Salt Free Dyeing Zero Waste Spinning Vasudha Primo by Pratibha Syntex Ltd is an eco-friendly product that embodies sustainability and circularity. Crafted from regenerative organic cotton, the product fortifies the well-being of farmers and biodiversity and enhances soil health. Its absolute composting, minimized emissions, and steadfast dedication to ethical labour practices, demonstrate a strong commitment to social responsibility and circularity. VASUDHA PRIMO PRATIBHA SYNTEX sales@pratibhasyntex.com | www.pratibhasyntex.com 23 December 2023 | AO India 23 December 2023 | AO India RETAIL RIGHT//INTERNATIONAL NEWS www.apparelresources.com Luxury brands see increased sales SNIPS John Lewis has launched its Black Friday sale ‘earlier than ever’ as more consumers begin preparing for Christmas in November. For the entire month of November, the department store is offering hundreds of deals in-store and online. Luxury brands have seen increased quarterly sales despite customers holding back for the holiday season, bringing confidence to the segment for the year ahead. Hermès, the French luxury brand, has reported sales of £ 2.8 billion (€ 3.3 billion) for the third quarter, up by 7.3 per cent but lower than previous quarters in the current fiscal year. Sales increased by 7 per cent in the leather goods business, thanks to ‘very consistent demand and high desirability’. The men’s and women’s S/S ’24 fashion presentations were ‘very well received’ and the ready-to-wear and accessories division saw 10.2 per cent growth. However, sales declined by 1.7 per cent in the company’s silk and textiles Sales increased by 7 per cent in Hermès' leather goods business, thanks to ‘very consistent demand and high desirability’. 24 AO India | December 2023 business. Sales in Europe increased by 16.4 per cent as a result of ‘loyalty of local customers and dynamic tourist flows,’ with ‘solid performances’ across the board. The company stated that it will continue the year with confidence, thanks to the “highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.” Axel Dumas, Executive Chairman of Hermès, said, “The solid performance in the third quarter reflects the desirability of our collections all over the world.” Similarly, Italian luxury group Moncler is expected to post a healthy rise in quarterly sales, thanks to a strong brand presence despite the warmer weather, although growth will be slower than in the first half. Analysts are concerned about the impact on the company, which is best known for puffy duvet jackets, even after diversifying through product range expansion and the nearly three-year acquisition of the Stone Island streetwear brand. The first and fourth quarters saw a higher concentration of Moncler’s retail sales due to the significance of coats and winter merchandise. According to a consensus offered by the business, Moncler’s sales in the third quarter are anticipated to increase by around 8 per cent at constant exchange rates, reaching € 670 million (US $ 711 million). In the first half, revenues increased by 24 per cent at constant exchange rates. The Asia-Pacific area will fuel growth, while sales in the Americas are predicted to decline even more as a result of certain US stores switching from wholesale to retail, according to Barclays analysts. The first and fourth quarters saw a higher concentration of Moncler’s retail sales due to the significance of coats and winter merchandise. The National Retail Federation (NRF) has introduced a comprehensive framework, titled Principles for the Use of Artificial Intelligence, to guide the ethical integration and strategic planning of AI in the retail sector. LVMH is currently ubiquitous in major sporting events, seeking to maximise their visibility in the sporting world ahead of the Paris 2024 Olympic and Paralympic Games, of which LVMH is a premium partner. SHEIN, the ultrafast fashion giant, has established Spain as one of its primary markets in Europe. Furthermore, Europe stands as the company’s secondlargest sales territory, with the United States taking the lead. RETAIL RIGHT//INTERNATIONAL NEWS www.apparelresources.com Shoplifting causing UK retail problems Boohoo has broken promises to make its clothes fairly, an undercover BBC Panorama investigation has found, with the fast fashion giant allegedly pressuring suppliers to drive down prices, even after deals had been agreed. This holiday season, shoplifting has become a major concern for retailers across the UK. In response, the authorities are cracking down on incidents and trying to prevent these crimes from happening. Shoplifting in the UK has hit record levels, official figures show. There’s been a 25 per cent increase in a year, reaching an unprecedented 1,000 offences a day, according to the data from the Office for National Statistics (ONS). A total of 365,164 crimes were reported, an increase of 24.6 per cent over the year prior and a larger number than the 24.4 per cent post-Covid increase in 2021–22. Additionally, detection rates have reached a historic low, with only 18.2 per cent of crimes being solved, which is less than half of the 46 per cent recorded when records first started in 2016. The percentage of shoplifters charged has also decreased throughout this time, falling from 29.7 per cent to barely 14 per cent. Retailers claim that since shoplifting is now so common, they must add 6p to every store transaction to cover the cost of the £ 1 billion in annual thefts as well as the additional £ 700 million they must spend on security measures. The figures come ahead of the government and police chiefs unveiling plans soon to tackle the surge in shoplifting with a pledge to investigate every crime where there is a ‘reasonable’ line of inquiry. Additionally, in a decisive move, UK Ministers, law enforcement SNIPS agencies and retailers are joining forces to combat the rampant issue of shoplifting with a robust ‘zero-tolerance’ strategy. Policing Minister Chris Philp chaired a meeting with senior police leaders and 13 of the UK’s biggest retailers to launch the Retail Crime Action Plan. The plan outlines a firm commitment from the police to prioritise immediate response to shoplifting incidents involving violence against shop workers, cases where security guards have apprehended offenders, or situations requiring evidence preservation. Police presence will be based on risk assessment, with a heightened focus on prolific or juvenile offenders. Police authorities have also reiterated their dedication to thoroughly investigating any leads that could lead to apprehending culprits. Law enforcement agencies will intensify targeted patrols in heavily impacted areas. The plan provides retailers with guidelines on how to present compelling evidence for police investigations. Retailers are urged to promptly submit complete CCTV footage of the entire incident, along with images of the shoplifter from digital evidence management systems after an offence occurs. Whenever CCTV or digital images are available, law enforcement will employ facial recognition technology, cross-referencing data through the Police National Database. This method aims to aid in identifying and prosecuting offenders, especially those with a history of prolific or potentially dangerous behaviour. Furthermore, a specialised police team, named Pegasus, will be established to develop a comprehensive intelligence network on organised crime gangs driving numerous shoplifting incidents nationwide. This initiative, a collaboration between businesses and law enforcement, will enhance information sharing between retailers and police. It will facilitate a deeper understanding of the strategies employed by organised retail crime gangs and enable the identification of more offenders. The project includes the creation of a new informationsharing platform and training programs for retailers. With an investment of more than US $ 9 billion, US retail chain Walmart will upgrade and modernise some US stores with improved layouts, expanded product selections and new tech additions. In total, it plans to modernise more than 1,400 of its 4,717 Walmart stores across the country. US athleisure brand Alo Yoga has made its mark in the UK with the opening of its first flagship store on London’s King’s Road recently. This marks the initial foray into physical retail for Alo Yoga in the UK, with plans for two additional standalone stores in London scheduled for 2024. Louis Vuitton has announced an extension of Nicolas Ghesquière’s contract as the artistic director of womenswear for another five years. December 2023 | AO India 25 EXPERT SPEAKS INDIA: THE WORLD’S MANUFACTURING HUB FOR APPAREL AND TEXTILES OR HAS IT MISSED THE TRAIN YET AGAIN? workforce, stable business environment, government support, favourable policies, strong democracy, a growing and robust economy besides active sustainable lifestyle practices. But, despite all these, India seems to have missed the bus many a times in over the last two decades, including in 2005, when the quota system was done and dusted with. Manish Tribhuwan Manish Tribhuwan is a fashion professional by qualification and entrepreneur by attitude, a sourcing and product wizard by skills, a life skill and transformation coach by passion and an athlete by choice. An alumnus of 1995-97 batch of NIFT, he comes with more than 26 years of learning experience in fashion and textile industry. He has worked with companies like VF Corp, Arvind Brands, Pratibha Syntex Ltd., and Blackberrys to name a few. With an ability to speak in 17 languages, Manish has coached, mentored over 10,000 youths and professionals through Niftwecare and Creatnet Education. Once known as the ‘Global Capital for Textiles’, India is perhaps the only country across the globe that has abundance of raw material, skilled 26 AO India | December 2023 Other subcontinents and Asian countries zoomed past us, despite not having the wherewithal that India has, right from fibre to finished product, complimented with strengths of embellishment, design sensibilities and craft. India’s craft capabilities have been second to none but are still extremely underrated and undermarketed. However, with the world exploring options beyond China, as an answer to the global manufacturing needs, it’s a huge opportunity for India to prove its mettle. Though India has moved many miles ahead in IT, electronics and in some other manufacturing industries, textiles and apparel has still been a laggard. India’s apparel exports for FY 2022-23, US $ 16.7 billion, stands at 10 per cent below the level from where it was in 2017 (US $ 18 billion). However, I still have a strong conviction that India will soon be the world’s manufacturing hub for apparel and textiles. To explain the reasons for the same, I have broken my vision into two parts which are further divided into seven points each: l Wonders that work for Indian apparel and textiles industry l Wanders (Distraction) that Indian apparel and textiles industry needs to work upon Seven wonders positively impacting the Indian apparel and textiles industry are as follows: World looking at China+1 or China’s Alternative: l With the world looking at China’s alternative or China + 1, whatever we would like to call it, India becomes a natural choice for various reasons that are stated further, one of them being the country’s majority population speaking English. Raw material abundance l India is the largest cotton producer (23 per cent) in the world and has the highest area under cotton cultivation (39 per cent of world area). l The country is the second largest producer and exporter of manmade fibres and textiles (polyester and viscose). l It holds the number one position in jute manufacturing and the second position in silk manufacturing. Multiple clusters with specific strengths l For individual product categories, India has several varied clusters like Surat, Ahmedabad, Vapi, Jetpur, Tirupur, Erode, Salem, Karur, Kolkata, Banaras, LucknowJaipur, Jodhpur, Pali-Ranchi, Patna, Bhubaneswar, Ludhiana, Jalandhar, EXPERT SPEAKS Delhi and NCR, Sonipat, Panipat, Kangra, Kashmir, Bengaluru, Bhagalpur and Kanchipuram Humongous and young workforce l Each of these clusters have skilled workers for products, processes, operations. l The workforce is young, energetic and committed. Fifth largest and fastest growing economy l India which is the fifth largest economy globally, aspires to become the third largest economy soon and hence it is focused on creating world-class infrastructure, skills, connectivity. l As the fastest growing economy, India has the wherewithal to provide support that apparel and textiles industry needs for further fuelling its growth engine. l India's tremendously growing economy provides an opportunity for the world to invest and partner with. opportunities at hand, the possible challenges and needs. These will help the government to collaborate and work in tandem with the industry. l Consistent and stable governance is key for any country to become a global hub. India, the largest democracy with vast geography and smooth transfer of power, provides the ideal platform to the world, when it comes to alternate or +1 manufacturing hub. 1) Lack of technological advancement Stable democracy and geography l IT, Electronics and Automobiles are big examples of India's abilities as a manufacturing hub. Agile and qualified leader as Minister of Textiles India’s textile industry is now being led by a professional Chartered Accountant who understands the business processes thoroughly, Seven wanders that are not in favour of Indian apparel and textiles industry are explained below: l Technologies involved in process of textiles lack advancement. Mills and machineries are outdated. l This is a big hurdle for India when it comes to meeting the quality needs of export customers. 2) Lack of leadership talent in manufacturing l While India has massive workforce as workers and supervisors, what is clearly lacking is great talent on the production floor as there is dearth of leaders with technical qualifications to enable technological upgradation and usage, human empowerment, process implementation and so December 2023 | AO India 27 EXPERT SPEAKS on. This is primarily because the educated youths do not want to work amidst the hard conditions of the production floor. l Production floor skills in India are low. Technicians are not respected as they are in other parts of Asia, EU, US. Because of this, most of the big talents are moving away from the production floor. l Mushrooming opportunities in buying, online businesses, brands, tech start-ups are attracting young and good talents because of easier working conditions. 3) Lack of scale l Bangladesh, Vietnam, Cambodia grew and went past India in global share of apparel exports because they created scale. It required some big investments for which both investors and government stepped in. l Shrinking margins, due to multiple reasons, like higher process loss, quality and efficiency loss in manufacturing, are negatively affecting business volumes. Now we are in a catch 22 situation. Government wants industry to commit investment for scaling up and industry is looking for incentives from the government to commit to investment. 4) Dyeing craft l India has been a country of unique arts and crafts. Each of the states are known for their innovative art forms like Bagru print of Rajasthan, Banarasi saree of Varanasi, Chikankari of Lucknow, Ikat from Odisha and Andhra, Silk from Bhagalpur of Bihar and Muddenahalli, Mysore of Karnataka. l We have not put in enough efforts for these crafts to gain global prominence. 5) Lack of Government focus l Apparel and textiles is a small ticket industry in comparison to an Apple iPhone factory or a semi-conductor factory. Hence, it lacks significant government attention, however, things are changing for good now. 28 AO India | December 2023 l India is historically an importer of large ticket products like CBU automobiles and electronics and exporter of low ticket products like apparel and textiles, food grains. So, a Blanket FTA makes it an imbalance agreement. l Countries like Bangladesh, Vietnam and Cambodia have apparel and textiles majorly contributing to their GDP and their FTAs were signed long ago, which gave them a straight advantage of 12 per cent in apparel and textiles. 6) Poor, cheap quality products l India has not been focused on making great quality products, particularly in weaving, dyeing and processing as it requires big investments on high technology machines. Most large manufacturing set-ups are established with old machines imported from other countries, which helped in keeping the capital investment at lower level but this has negatively impacted the product capability. l Because we were largely a craftbased manufacturing hub, using manual processes, inconsistency was considered as a design element and it became our DNA. We never focused on bringing consistency in our operations. l We have always looked at quality as For individual product categories, India has several varied clusters like Surat, Ahmedabad, Vapi, Jetpur, Tirupur, Erode, Salem, Karur, Kolkata, Banaras , Lucknow-Jaipur, Jodhpur, Pali-Ranchi, Patna , Bhubaneshwar, Ludhiana, Jalandhar,Delhi and NCR, Sonipat, Panipat, Kangra, Kashmir, Bengaluru, Bhagalpur and Kanchipuram. a cost centre, without realising that ‘Good quality is costly, poor quality is costlier’ or ‘Poor quality is cheap, good quality is cheaper’. 7) Lethargic supply chain process l If we look at the calendar of any brand, we primarily have 5Ds that take an inexplicable amount of time: i. Discovery of trend – Minimum 4-8 weeks ii. Designing of the product – 4-8 weeks iii. Developing the product – 4-8 weeks iv. Delivering the product – 8-16 weeks v. Distribution of the product – 2-4 weeks l With trends changing almost every thirty days and digital social media platforms and influencers playing a big role in it, such widely stretched lead times make a product redundant, irrelevant as it goes out of fashion by the time it reaches the retail outlets. This impacts the sell-through of products. Our supply chain needs to be a lot more nimble, agile and flexible to be able to deliver at least 50 per cent of the products (core and basic fashion) in under 30 days. Technology can be a great enabler in cutting down the timeline and making the entire discovery, design and product development and approval process far more efficient. However, despite the vast number of hurdles, abundance of opportunities; hardworking, ambitious and skilled youths; a supportive government; cutting-edge technology start-ups; and world’s belief in India’s ability and leadership ensure that India is ready to take on a journey of exponential growth like never before. Newer manufacturing geographies, young entrepreneurs jumping into fashion retail with new product categories are some of the growth engines that will drive India’s apparel and textiles industry much beyond US $ 40 billion by 2030. 29 December 2023 | AO India 29 December 2023 | AO India COVER STORY THE UNIFORM CODE: A SECTOR POISED FOR GROWTH In the world of workwear, uniforms are the unsung heroes—more than just outfits, they’re the superheroes of identity, safety and professionalism. From the factory floor to the corporate boardroom, these uniforms play dress-up while representing the serious business of looking good and staying safe. In India, the market for these work wardrobes is gearing up for some serious growth. Many companies, especially in industries like retail, food, pharmaceuticals, healthcare, automobiles, mining and more, provide uniform/workwear to their staff. After diving into available reports and data, we discovered that more than 11 crore individuals wear uniforms or 30 AO India | December 2023 specific work clothes across sectors. Whether it’s a security guard, a miner or a pilot, depending on their job, they could receive anywhere from one to five uniforms annually. If each person gets around two uniforms yearly, then considering a modest estimate of Rs. 2000 per uniform, this market hits a minimum of Rs. 44,000 crore (approx. US $ 5.5 billion) per year in India. The growing workforce, particularly the increasing participation of women in the professional arena, is further propelling the demand for uniforms. The management across the manufacturing and related fields is also becoming more aware of job-related risks. Vendor companies are now obligated to adhere to international safety standards stipulated by buyer requirements. This, along with the need to foster a strong corporate identity, has led to a heightened demand for both basic and protective workwear. Workwear types for different professions Workwear is diverse and tailored to meet the needs of various jobs and industries. For instance, coveralls and overalls offer full-body protection and find utility across multiple industries. Mechanics rely on overalls to safeguard against oil and grease, while workers dealing in hazardous substances opt for sealed coveralls. COVER STORY Private sectors and their workforce using uniforms Construction sector 71 Automobile sector 19 Corporate sector, institutional (including hospitality sector (hotels, aviation, food processing, restaurants petrol pumps) 27 Healthcare sector 5.7 Private security guards 0.5 Mining 1.3 Energy sector 0.1 Government, semi government workforce Army, navy, airforce and paramilitary forces 3.6 State Police, states’ home guard 3.1 Transport (including railway, metro, roadways) 2.1 PSU 1 Postal department 0.4 NCC and NSS students 5.2* (all figures in million) (*students get uniforms from Government) Additionally, flame-resistant clothing is essential for those facing fire hazards, like welders and electricians, protecting by resisting ignition or self-extinguishing if ignited. Workers in cold climates require insulated jackets, hats, gloves and thermal pants to combat extreme temperatures and frostbite. While not strictly workwear, Personal Protective Equipment (PPE) is crucial in diverse environments. The companies like Zomato and Swiggy have lakhs of delivery boys It includes safety helmets, gloves, masks, eyewear and boots designed to safeguard against specific hazards. Industries with strict hygiene standards such as food and healthcare require easily washable workwear, including aprons, hats, gloves, scrubs, lab coats and protective footwear. Corporate workwear comprises suits, ties, blouses and other professional attire. Workwear as a category includes a variety of features such as lightweight, anti-virus, antibacterial coatings, quick dry, self-sanitising and germresistant surface, water observance, stain-free, wrinkle-free and soft feel. Advancements in science have also introduced embedded sensors in uniforms to monitor health vitals and detect environmental risks. India’s growing demand for industrial workwear India stands out as a huge market for industrial workwear. The construction sector, being the second-largest employment generator, currently employs 71 million, with estimates predicting growth to 100 million by 2030. In FY 2023, the mining industry in India employed nearly 1.3 million people. Similarly, Primus Partners, a management consulting services company, revealed that the Indian automobile industry employed over 1.9 crore people in FY 2023. Additionally, India’s 12 major oil and gas Public “I am upbeat about the growth of this segment in the domestic market too as companies across various verticals are growing and their awareness for quality dresses is increasing. To overcome quality issues, various companies are now sourcing uniforms from a standard vendor having thrust on quality.” Ajay Mall MD, Mallcom India Sector Undertakings (PSUs) employed 110,000 permanent workers. While workwear clothing exhibits lower consumption compared to value-added apparel, its replenishment demand is high, especially as it is a State-owned defence company Troops Comfort Limited, private giants like Arvind, Radnik Exports and Wildcraft are also supplying uniforms and rucksacks to defence forces December 2023 | AO India 31 COVER STORY India’s flight crew, ground staff and security personnel by the end of 2023. necessity for individuals in various industries. Unlike fashion garments, which have limitations of season and style, the majority of the uniforms are free from such limitations. Even to start a uniform business, apart from technical garments, there is no extra requirement for machines and technology. The made-to-measure segment within the uniform industry is also experiencing growth. Top companies in the industrial workwear industry are confident about the growth in this segment. Kolkatabased Mallcom India Ltd., is one of them. This integrated manufacturer and distributor of head-to-toe protection equipment raked in a turnover of about Rs. 410 crore in the last fiscal year. A few years ago, textile and apparel player Arvind Ltd., collaborated with JCB India Ltd., a leading manufacturer of earthmoving and construction equipment in India, to launch a distinctive line of ready-to-wear industrial uniforms. Similar to upscale clothing, the rental business within the uniform segment is also on the rise in India. International companies like Lindström offer uniform rental services to numerous companies across various industries. The company, equipped with cleanroom facilities, is expanding its presence in India, recently branching out into NCR and Hyderabad. We reached out via email to prominent companies in various sectors like hospitality (Zomato, Swiggy, IndiGo); mining (Vedanta Aluminium Limited, Hindalco) and construction (Afcons Infrastructure Limited, Reliance Infrastructure Limited, GMR Group). The email aimed to inquire about their emphasis on design of uniforms, sourcing, costs, challenges and related aspects. Unfortunately, we did not receive any response from them. Designers revamp hospitality uniforms As per the Ministry of Civil Aviation (MoCA), the present direct employment in Indian Aviation stands 32 AO India | December 2023 “The next 10 years are going to be the Amrit Kaal (Golden Era) for the uniform sector in India, as we will be riding the wave of economic growth of the country. With the huge growth in the manufacturing sector, corporate uniforms and workwear segments will grow significantly. Premiumisation will push the demand for high-quality uniforms too. Customers will demand better quality and will be ready to pay a premium for high quality. Hopefully, in the coming decade, we will see the emergence of a national brand in the uniform category which has been missing till now.” Sachin Sahni CEO, YFM Uniforms at 250,000, covering pilots, cabin crew, engineers, technicians, airport staff, ground handling, cargo, retail, security, administrative and sales personnel. This figure is expected to rise to approximately 350,000 by 2024. Several airlines are modernising their uniforms to align with contemporary trends. For instance, renowned designer Manish Malhotra is collaborating with Air India to design new uniforms for over 10,000 of Air Airlines prioritise durability, functionality and breathability in fabric and trims for uniforms. Subpar fabrics can adversely affect both employees and the airline’s brand. Recently, a jury in California, US ruled that a clothing company should pay more than US $ 1 million to four American Airlines flight attendants who claimed that wearing its uniforms made them ill. The attendants argued that the uniforms contained traces of toxic chemicals, including formaldehyde and toluene, linked to health problems. Fabrics with formaldehyde-containing resins have been used for years to maintain wrinkle-free clothes and extend their lifespan. Experts emphasised the prevalence of PV blend as the most popular fabric for corporate and hospitality uniforms in both shirts and trousers and claimed that the sector is estimated to grow between 25 per cent to 50 per cent annually. There’s an increasing emphasis on the design of uniforms, not just in the private sector but also in some government organisations. For instance, the staff at the Indian Parliament recently underwent a uniform makeover designed by NIFT, featuring ‘Nehru jackets’ and khaki-coloured pants. The traditional bandhgala suit for bureaucrats was replaced with a vibrant magenta or deep pink Nehru jacket. The dress of the security personnel and marshals stationed at parliament also saw a change. Healthcare sector growing fast post-Covid In the post-Covid era, there is a heightened emphasis on the health sector. The demand for healthcare professionals in India is surging due to factors such as population growth, aging, changing epidemiology and an increased prevalence of noncommunicable diseases (NCDs). COVER STORY As of November 2021, reports indicate 13,01,319 allopathic doctors, 2.89 lakh dentists, 32.63 lakh nursing personnel and 13 lakh Allied and Healthcare Professionals registered with the State Medical Councils and the National Medical Commission. Recognising the importance of uniforms in private hospitals, state governments are also taking significant steps. Earlier this year, Haryana implemented a new dress code for doctors, nurses and paramedics in government hospitals. The objective is to establish uniformity and aid patient identification. Witnessing growth in this category, newer players are also entering into this segment. Suratbased Mediattire is one such company that entered into this business just a few months back and offers products like scrub suits, lab coats, OT gowns, patient gowns, etc. Seizing opportunities in defence and private security sectors India’s defence and security sectors offer substantial opportunities for uniform makers due to their sheer size. The Indian Army, comprising over 1.2 million troops, is in the process of procuring 11.7 lakh uniform kits for JCOs and ORs as of August 2023. The Army has secured Intellectual “Companies are now very much clear that their employees wearing the company’s uniforms are their brand ambassadors, so the thrust of the companies is now on good quality uniforms. The sector is growing almost 25 to 30 per cent on a Y-o-Y basis. Major challenge in this segment is quality that comes from a lack of awareness in the companies as most of the time they are not clear what exactly can serve their requirements. To overcome this, we discuss deeply to understand the companies’ requirements and ensure the best for them.” “Arvind Human Protection annually produces an impressive 4 million pieces of garments that transcend the conventional, catering to a diverse range of industries including oil and gas, metal manufacturing, utility, healthcare, defence, corporate institutions and more. What distinguishes us is our end-toend approach, meticulously overseeing the entire production processes from spinning to garmenting. Our commitment to innovation is underlined by the filing of more than 30 patents.” Hitesh Babariya Chief Marketing Manager, Human Protection Division, Arvind Limited Director, Atlas Infiniti Property Rights (IPR) for the design and camouflage pattern of its newly The present direct employment in Indian Aviation stands at 250,000, covering pilots, cabin crew, engineers, technicians, airport staff, ground handling, cargo, retail, security, administrative and sales personnel Parveen Kora introduced Camouflage Pattern Dress. The improved uniform, designed by the country’s top fashion institute NIFT, has a contemporary look and functional design and the fabric has been made lighter, more durable, breathable, quick-drying and easier to upkeep. Apart from ordnance factories like state-owned defence company Troops Comfort Limited, headquartered in Kanpur, private giants like Arvind, Radnik Exports and Wildcraft are also supplying uniforms and rucksacks to defence forces. What’s promising is the growing awareness amongst police departments, with several states seeking improved uniforms for their police force. Representatives from two Gujarat-based textile organisations, December 2023 | AO India 33 COVER STORY “Timely delivery with perfect fitting, quality materials and timely updates on the latest trends in the market are major challenges for us and we approve the sample before final order, to overcome finishing and fitting challenges.” Sachindra Yadav HR Head, JSS Group India Ahmedabad Textile Industry’s Research Association (ATIRA) and the Suratbased Man-Made Textiles Research Association (MANTRA), recently attended a key meeting of the committee formed for ‘one nation, one police uniform’ about a year after the idea was mooted by PM Narendra Modi. The members aboard the Ministry of Home Affairs (MHA) panel shared expertise linked to the idea. Similarly, the world’s largest private security industry in India has witnessed remarkable growth, extending its demand beyond the corporate sector to residential households and real estate complexes. With over 5 million private security guards outnumbering the 3.2 million police officers, the sector provides ample opportunities for uniform makers. In India, there are thousands of agencies providing security guards and most of them invest between Rs. 1000 to Rs. 3000 per pair, covering all accessories. Hurdles: Lack of security awareness and market fragmentation In India, the landscape for uniform makers is riddled with challenges due to a lack of awareness and the diversified needs across industries. Sectors like healthcare, construction and hospitality demand tailored uniforms that align with safety standards and functional necessities. However, addressing this wide array of requirements is no small feat for manufacturers. Ensuring adherence to evolving regulations and strict quality standards, especially for specialised gear like flame-resistant clothing and PPE, poses a continuous challenge. Leading overseas players in uniform segment • Delta Plus Group • UniFirst • Red Kap (VF Corp.) • Aramark • Cintas • Alsco • Workwear Uniform Group Ltd. (WWUGL) • Carhartt • Uniforms N’ More • Cherokee Medical Uniform (Careismatic Brands) • Alsico Group • Gallagher Uniform • Dickies • Alinta Apparel Few of the leading Indian companies • Mahavir Spinfab • Mafatlal Industries • Rama Overseas • Hirawats • HSD Uniforms • Uniform Bucket (JAF Enterprises) Kolkata is a growing hub of industrial workwear 34 AO India | December 2023 Moreover, the demand for customisation remains high. Each client seeks unique designs, logos, and specific colours, necessitating cost-effective yet efficient production. Fabric selection adds another layer of complexity. Finding materials that are both durable and comfortable while meeting industry-specific requirements at an affordable cost is an ongoing struggle. December 2023 | AO India 35 December 2023 | AO India 35 COVER STORY BUYING & SOURCING SOURCING 2.0: PIONEERING THE NEXT ERA OF APPAREL The fashion industry is currently facing mounting challenges in the form of economic uncertainty, geopolitical disruptions, supply chain management, changing consumer preferences, technological advancements and more. Therefore, we have started a three-part series to help the industry adapt and survive. The first article of the series explored the key growth drivers of the Indian apparel market. The piece underscored the need for keeping customers at the heart of business. By actively attending to their preferences, needs and concerns, apparel retailers gain the ability to make well-informed decisions that deeply resonate with their target audience. The power of compelling storytelling is essential in today’s bustling marketplace where distinguishing oneself amidst information overload is the key to brand success. That’s not all! We even delved into details about the incubation of start-ups within larger enterprises, personalisation as one of the most efficient marketing strategies, the growth of techdriven consumer experiences and numerous brands embracing sustainable technologies and materials. In this second article, we are discussing Sourcing 2.0, focusing on the evolution of procurement through ‘Sourcing as a Service’ (SaaS) using AI and ML. We explore the importance of enhanced collaboration between sales and sourcing teams, the proactive role of manufacturers in fostering innovation, India’s rise as a viable alternative to China and a whole lot more. Our final piece will explore the multi-pronged approach needed to mitigate risks in apparel sourcing. It will delve into methods such as balancing customer portfolios, implementing 3D virtual sampling, fostering global manufacturing partnerships, collaborating closely with specific mills to streamline fabric selection, adopting nearshoring and other contemporary approaches to reduce costs and enhance supply chain efficiency. These insightful articles feature inputs from a diverse range of experts working with retailers, brands, buying and trading houses. 36 AO India | December 2023 BUYING & SOURCING The apparel sourcing industry was by selecting suppliers with available capacity while avoiding overloaded ones. This real-time insight into capacity utilisation is a gamechanger in ensuring smooth and efficient operations, better inventory management, eliminating duplicity and ensuring transparency. hit hard by the Covid-19 pandemic, revealing vulnerabilities in global supply chains. Disruptions like factory closures, logistical hurdles and shifts in consumer behaviour underscored the necessity for more resilient and flexible supply chains. Looking ahead, it’s increasingly evident that supply-chain disruptions are not fleeting but a lasting reality. To thrive, the apparel industry must prepare for unforeseen challenges, fostering adaptable and flexible supply chains. This entails proactive risk management, contingency planning and enhanced collaboration among supply chain stakeholders. Brands must prioritise transparency in their sourcing strategies, ensuring robust visibility and traceability throughout the supply chain. This approach empowers them to effectively mitigate risks and respond to unexpected disruptions. Against this backdrop, industry leaders shed light on key trends shaping how brands and retailers approach their sourcing strategies, fostering innovation and adaptability. Sourcing as a Service (SaaS) In the ever-evolving landscape of the apparel industry, a new paradigm is emerging, one that promises to redefine the way brands and retailers approach their sourcing strategies. This shift, referred to as ‘Sourcing as a Service’ (SaaS), is gaining momentum and transforming the traditional model of apparel sourcing into a more agile, techdriven and consumer-centric approach. SaaS leverages the power of data, artificial intelligence (AI) and machine learning (ML) to create a seamlessly interconnected ecosystem. This interconnectedness offers unparalleled visibility into the supply chain, enhancing trust and predictability. At the core of this transformation journey is the integration of digital technology throughout the supply chain. Narendra Babu VP (Outsourcing) at Jockey India Page Industries Narendra Babu, VP (Outsourcing) at Jockey India - Page Industries, argues that while the SaaS model is not entirely new, its importance and impact have significantly increased in response to the challenges presented by the Covid-19 pandemic. The pandemic acted as a catalyst for change, revealing vulnerabilities within global supply chains, including volatile demand, rising costs, geopolitical complexities and an increased focus on social and sustainability responsibilities. One of the key advantages of adopting the SaaS model is its ability to automate data analysis. Through the use of artificial intelligence and machine learning, companies can not only detect delays or disruptions but also assess the ripple effect on various activities within the supply chain. This predictive analysis empowers businesses to proactively manage potential disruptions. Narendra explains, “Today, if I inquire about the timeliness of my goods from any of my vendors, they would initially claim that everything is on schedule. However, they rely on their Tier-2 suppliers, who, in turn, depend on their Tier-3 suppliers. Digitally, we can integrate these supply chains. When there is visibility, there is a high level of trust regarding the timing of my goods. This significantly improves my flexibility and agility.” Additionally, digital tools enable companies to optimise their orders Moreover, SaaS digitises various essential processes that sourcing professionals engage in on a daily basis. From vendor onboarding to cost negotiations, technical audits and quality management, these activities are streamlined, reducing reliance on time-consuming email exchanges and Excel spreadsheets, thereby enhancing efficiency and authenticity of data. This profound transformation has also brought sourcing professionals closer to consumers. In fact, it’s the consumers who hold the reins, influencing sourcing choices based on their acceptance or rejection of the final product. The ‘real disruption’ lies in this newfound closeness to the consumer, necessitating immediate changes in the supply chain. Collaboration between sourcing and sales teams Sourcing has often been seen as the unsung hero, unnoticed unless something goes wrong much like a wicketkeeper in cricket. However, this perception is gradually shifting, marking a significant transformation in the sourcing paradigm. According to Shirish Srivastava, Head of Apparel Sourcing, PUMA India, sourcing teams must work in close collaboration with sales teams. He suggests that sourcing teams must add substantial value beyond traditional roles. With automation threatening to streamline 80 per cent of sourcing tasks, the focus must shift towards innovation, product development and competitive pricing. Collaborating with the sales team, developing costeffective products, integrating new technologies and providing multiple solutions to challenges are paramount. December 2023 | AO India 37 BUYING & SOURCING product aesthetics and consequently, consumer satisfaction. Shirish Srivastava Head of Apparel Sourcing, PUMA India Arjun Puri Director at KAS India The goal is to become indispensable to the business, creating a symbiotic relationship where the absence of sourcing would render the brand incomplete. “I think sourcing teams which are especially for domestic industries, if they do not feel that they are an extension of the sales team and work closely with them, they’re going to get extinct. Trust me, 80 per cent of the job that any sourcing organisation does right now can be automated,” stresses Shirish. He also emphasises on the expertise expected from a sourcing organisation by a brand. For Arjun Puri, Director at KAS India, the exclusive direct sourcing arm of Kmart Group, cost, while important, is no longer the sole determinant of success. The focus has shifted dramatically towards value creation, fundamentally reshaping the role of sourcing organisations. The capacity of sourcing teams to identify market-winning products, meet deadlines and optimise inventories has become paramount, redefining the criteria for their success. Simultaneously, businesses need to recognise and invest in the invaluable expertise that sourcing partners bring to the table. “Brands think of sourcing organisations as product masters. For instance, cotton prices went up last year and commodity prices are going up. How can we still maintain the price or bring it down? We are subject matter experts. It is the responsibility of the sourcing team to reverse engineer, find innovative solutions, possibly localised, to maintain or reduce prices,” says Shirish. In essence, the future of sourcing in the apparel sector lies in the establishment of value-based partnerships. The traditional debate of Commission basis versus Free on Board (FOB) is evolving into a nuanced discussion about value creation. Leading industry voices are urging stakeholders to view sourcing not merely through the prism of money, but as a collaborative venture focused on mutual growth and innovation. 38 AO India | December 2023 Selection of buying houses and safeguarding data A crucial element of a successful apparel sourcing strategy is the careful selection of buying offices and ensuring seamless collaboration between design teams, all the while safeguarding data integrity. Narendra emphasises on the importance of selecting the right buying office. Each buying office possesses unique strengths, such as on-time, quality, sustainability or versatility. Therefore, meticulous due diligence in the selection process is crucial as it greatly influences the challenges faced during the partnership. Another significant hurdle is aligning the creative vision of brand designers with those of buying office designers. The struggle for alignment can impact In the era of technology, maintaining data integrity is a vital concern. While advanced systems may be in place, the accuracy and reliability of the data are of utmost importance. Errors in data can significantly disrupt the sourcing process, potentially leading to failures. Additionally, safeguarding this data from unauthorised access and ensuring it is not shared with competing brands is extremely critical. Narendra cautions, “Data integrity is crucial. Data can be inaccurate. Someone must be realistic in finalising how buying offices protect this data. Are they sharing this data with other brands? How can you secure it? This is one of the most significant risks I see.” Manufacturers as innovators Traditionally, manufacturers were viewed as entities responsible for production, adhering strictly to the specifications provided by brands and retailers. However, this perception is undergoing a significant transformation. Arjun briefed on the evolving role of manufacturers wherein they move beyond their conventional responsibilities to embrace a proactive approach. Manufacturers are no longer mere executors of designs; they are becoming trendsetters themselves. By investing in technology and fostering transparency, manufacturers are engaging in co-creation with brands, offering innovative solutions and ideas Shirish underscores the intelligence and creativity inherent in manufacturing units. He urges manufacturers to adopt a forward-thinking mindset, suggesting that they venture into showcasing their unique products and styles directly to brands. By doing so, manufacturers can explore collaborative opportunities, potentially leading to the creation of their own successful businesses. This shift from being passive executors to active collaborators is vital for their growth and sustainability. BUYING & SOURCING Moreover, there’s a need for manufacturers to demonstrate more appetite for ‘independence model’. Instead of relying solely on brands and buying offices for directions, manufacturers should showcase their capabilities in quality management, production timelines and compliance management. This demonstration of self-reliance adds significant value to the supply chain, fostering stronger partnerships between manufacturers and brands. “In the existing system, a representative from a brand or a buying office visits the factory, overseeing production and quality control full-time, managing inspections. If manufacturers can promise improved quality, adherence to deadlines, and efficient compliance management, it can significantly enhance the value within the entire supply chain,” says Rakhi Handa, Consultant and former Senior MD, Product Safety and Quality Assurance at Target Sourcing Services. India: Emerging as an alternative to China A combination of factors, including supply chain disruptions, escalating costs and apprehensions regarding working conditions, has prompted several Western fashion brands to reconsider their age-old reliance on Chinese factories. Companies that had prepared to navigate the lingering economic impact of the pandemic and Russia’s conflict in Ukraine now confront an additional crisis. The recent outbreak of conflict between Israel and Hamas underscores the growing challenge of safeguarding brands from frequent and unpredictable global shocks, potentially causing widespread disruption across the globe. In this shifting paradigm, India stands out as a beacon of opportunity for sourcing, especially as companies adopt China plus-one strategies to diversify their manufacturing bases. India boasts a distinct advantage-a youthful, Englishspeaking workforce. With approximately 65 per cent of its population below Rakhi Handa Consultant the age of 35, the country possesses a demographic dividend that can propel Indian manufacturing. According to Todd Simms, VicePresident, FourKites, a leading supply chain intelligence platform, the days of exclusive manufacturing in China and shipping products worldwide are waning. Disruptions have escalated costs associated with delivering finished goods, making it increasingly justifiable for companies to explore operations in new countries to enhance resilience. “China has been good at servicing. But if you look at things like co-creation, Chinese suppliers always lag. I think Indian suppliers always do better than them. We've got a lot of strength. We just have to make them work for us,” says Arjun. As global manufacturers expand their horizons beyond China, the Indian Government is also stepping up to seize the moment by taking proactive steps. This year, it announced the establishment of 7 PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, MP and UP. This initiative aligns with Prime Minister Narendra Modi’s 5F vision (Farm to Fibre to Factory to Fashion to Foreign). Role of B2B Marketplaces B2B marketplaces are speedily reshaping the procurement landscape, sparking a race amongst newcomers aiming to revolutionise supply chains and established players striving to maintain their positions. The retail sector has witnessed a surge in these platforms, with over 40 B2B marketplaces specifically catering to the apparel industry emerging in recent years. Unlike in the past, suppliers and buyers no longer need to invest extensive time and resources searching for each other or worrying about order status and financial transactions. This newfound ease has become a significant advantage. These platforms also offer reasonable prices and quicker delivery times, addressing the industry's pressing needs. However, some industry insiders, especially those deeply rooted in the fashion ecosystem, express reservations about the rise of B2B marketplaces. The core concern voiced by sceptics lies in the essence of these marketplaces which is primarily to consolidate. While they bring suppliers under one digital roof, the depth of their service offerings raises questions. Critics argue that these platforms, in their pursuit of providing a one-stop solution, often overlook critical aspects of the procurement process. Delivery logistics, product quality, design aesthetics, and most importantly, intellectual property protection are aspects that can’t be addressed adequately within the confines of these platforms, claims Devender Gupta, Founding Partner, Asmara International, a fashion company with a worldwide sourcing platform and GLOCAL expertise, focused on design and product. He further states, “The primary problem with these B2B marketplaces is that they fundamentally operate as aggregators. Their main pitch is, ‘Come to our platform, and you can find whatever you need to source. We'll provide you with a single solution for the product and its price.’ However, critical aspects like delivery, quality, design aesthetics and even adequate IP protection are often overlooked.” December 2023 | AO India 39 MANUFACTURING//NEWS www.apparelresources.com Trade organisations enthusiastic about the growth of textile and apparel industry Irrespective of recent downfall in Indian apparel export, down sentiments for textile business and unstable situation due to war, trade associations are upbeat that situation will improve soon. Indian apparel exporters’ national body, Apparel Export Promotion Council (AEPC), has set a target of US $ 40 billion by 2030. In a statement, the council said that this target, named ‘40 by 30’, reflects Indian exporters’ commitment to reaching new heights and pushing limits in the ongoing decade. Naren Goenka, Chairman, AEPC said, “AEPC is excited to share our ambitious goal. ‘40 by 30’ is not just a financial milestone; it’s a testament to our potential and our vision for the future.” He further added that, “To reach this target, we will need to focus on isnnovation, expand our market and product basket, practice sustainability and responsible business practices, foster strategic partnerships and empower our people.” It is worth mentioning here that for the last almost seven years, Indian apparel exports have been stagnant at around US $ 16 billion. Though the Government’s major initiatives — PLI Scheme and PM MITRA Park — are expected to increase India’s apparel exports. On the other hand, it is being said that Indian textile industry’s contribution to the GDP will more than 40 AO India | December 2023 double in next 7 years. The contribution of the textile industry to the GDP will more than double from 2.3 per cent to about 5 per cent by the end of this decade. The Gross Value Added (GVA) is anticipated to display a consistent annual growth rate of 9 per cent from 2021 to 2028. Claiming so, a report named ‘Decadal Outlook for Textile Industry: Threads of Transformation for Textile Industry’ by CII and Primus Partners states that India’s textile industry is targeting a substantial US $ 250 billion milestone by 2030, but it is also facing a variety of challenges in supply chain. The industry largely comprises of MSMEs, is highly fragmented, resulting in suboptimal coordination and resource utilisation. Home textile industry’s top companies are also expecting growth in near future. Thanks to an expected recovery in demand conditions and restocking by big retailers from the US market to realign their inventory levels, ICRA, the rating agency, expects its sample of four leading home furnishing companies to report a 7 to 8 per cent Y-o-Y increase in revenues to Rs. 215 billion for FY 2024. The operating margins also are set to improve by 250 to 350 bps in FY 2024 with expected improvement in revenues from Q2 of FY 2024 onwards with the festive season. It is being said that Indian textile industry’s contribution to the GDP will more than double in next seven years. The four listed home textile companies - Welspun, Trident, Himatsingka and Indo Count - account for about 35 to 40 per cent of India’s home textile business. “We expect home textile exporters to be on a road to recovery, as restocking by big retailers from the US markets has started since Q1 of FY 2024. Further, as our channel checks indicated, with the festive orders coming in for Q2 of FY 2024, the order book position is estimated to have improved for home textile exporters,” said Kaushik Das, VP and Co-Group Head, Corporate Sector Ratings, ICRA. India’s home textile exports reported a double-digit decline of 18 per cent and 12 per cent in FY 2023 and 4M FY 2024 respectively, amidst high raw material expenses and energy inflation, coupled with a muted demand scenario in the US and the EU markets. The US remains the largest market for Indian home textile exports, with a 56 per cent share in FY 2023 and a 58 per cent share in 4M FY 2024. SNIPS Mills in Andhra Pradesh struggling to survive Deeply concerned about the critical situation facing the textile industry in Andhra Pradesh, APTMA has raised its voice and urged the State Government to take immediate steps to support the textile industry. Arvind’s profit down in Q2 of 2023-24 Arvind Ltd.’s second quarter results have been negative as its earnings during Q2 for the financial year 2023-24 have seen a profit of Rs. 80.01 crore, down by 36 per cent as against Rs. 125.02 crore during Q2 of FY ’23 . Integrated textile city in Ahmedabad may take shape in future It has been reported that Narol Textile Infrastructure and Enviro Management (NTIEM) has decided to set up the textile city in Ahmedabad as part of expansion plans for the Narol textile cluster. An MoU can be signed in this regard in the next 2 months. MANUFACTURING//NEWS www.apparelresources.com Important decisions for textile and apparel industry In recent days, the government took few important decisions for the textile and garment industry and the most important of them was the revision of duty drawback rates. Cotton T-shirts now have a drawback rate of 3.1 per cent compared to 2.1 per cent earlier, rates for manmade T-shirts have also increased by 0.5 per cent. Babies’ garments (blended and cotton) have seen a little increase. Regarding drawback value cap per unit, there is a significant revision, as for babies’ garments, now the cap The Government has again extended the date of inviting fresh applications under the PLI Scheme up to 31st December 2023. is Rs. 29.4 which was earlier Rs. 13, similarly in case of blended babies’ garments, earlier the cap was Rs. 6 which is now Rs. 12.5. This revision has come after more than three years as prior to this, the last revision was done on 28th January 2020. The Department of Revenue, Ministry of Finance has issued a Notification recently on revision of the drawback schedule. This notification shall come into effect from 30th October 2023. The notification also says that with respect to the tariff items in Chapters 60, 61, 62 and 63 of the said schedule, the blend containing cotton and manmade fibre shall mean that content of man-made fibre in it shall be more than 15 per cent but less than 85 per cent by weight and the blend containing wool and manmade fibre should also have man-made fibre content of more than 15 per cent but less than 85 per cent by weight. The garment made up of cotton or wool or manmade fibre or silk shall mean that the content in it of the respective fibre is 85 per cent or more by weight. The Government has again extended the date of inviting fresh applications under the PLI Scheme up to 31st December 2023. The Ministry of Textiles (MoT) informed that in view of the requests from the industry stakeholders, MoT earlier decided to reopen the PLI portal till 31st August 2023 for inviting fresh applications from interested companies under PLI Scheme of Textiles for MMF Apparel, MMF Fabrics and products of Technical Textiles. The Ministry has now decided to extend the date of inviting fresh applications under the Scheme up to 31st December 2023. SNIPS Gokaldas Exports revenue down by 11 per cent in Q2 Gokaldas Exports Limited witnessed downfall in revenue and profit during the quarter ended 30th September 2023. Guntur Textile Park is struggling to survive Guntur Textile Park of Andhra Pradesh is now losing its charm as the overall industry scenario is not in the favour of textile players and the State Government’s policies are not as per industry expectations. Imported knitted fabric hurting growth From April to August 2023, India imported dyed knitted fabrics valued at US $ 276 million (Rs. 2,270 crore) predominantly from China. Prabhu Dhamodharan, Convenor, ITF says that the influx of dyed knitted fabrics is directly impacting various sub-sectors within Tamil Nadu’s textile manufacturing industry, including spinning, knitting and processing. December 2023 | AO India 41 SUSTAINABILITY ORGANISATIONS HELPING IN SUSTAINABLE MANUFACTURING Sustainability in the fashion and textile industry is a big thing in today’s times. As such, there are many nongovernmental organisations which not only talk about sustainability but also actively help the industry move forward with their sustainability initiatives and provide services to aid them. This includes providing certifications, rankings and sharing of essential knowledge. These industries are also instrumental in actively helping manufacturers, whether that be through direct funding for sustainability or via accreditation and certification. We will explore some of these renowned organisations. Fashion for Good Located in Amsterdam, Fashion for Good is a global initiative to promote and stimulate a sustainable and responsible clothing industry. Its core 42 AO India | December 2023 is the ‘innovation platform’ where it connects those working on sustainable innovation with brands, retailers, manufacturers and funders to bring in new ideas and technologies. This platform provides practical support to innovators depending on their stage of maturity. The organisation’s ‘scaling programme’ supports market-ready innovators who have passed the proof-of-concept phase and are ready to scale their innovations in the supply chain. The organisation also has a Good Fashion Fund which is the first investment fund focused solely on driving the implementation of innovative solutions in the fashion industry. Global Fashion Agenda (GFA) Global Fashion Agenda is a non-profit organisation that fosters industry collaboration on sustainability in fashion to accelerate impact. The organisation has been leading a positive movement for the fashion industry since 2009 and presents the renowned international forum on sustainability in fashion, Global Fashion Summit, in core industry regions around the world. GFA influences policies through its advocacy efforts including the Global Textiles Policy Forum, publishes articles on thought leadership including The GFA Monitor, Fashion CEO Agenda and Fashion on Climate, implements impact programmes including the Circular Fashion Partnership and the Global Circular Fashion Forum, presents educational guidance through the GFA Academy and connects companies with solutions through the Innovation Forum.FAdepth analysis and reports based on the SUSTAINABILITY latest industry data, which can help manufacturers stay up-to-date on and teclogies. Accelerating Circularity Inc Accelerating Circularity is a non-profit that catalyses new circular supply chains and business models to turn used textiles into mainstream raw materials. The organisation’s project focus is on Feedstock Collection, Sorting, Preprocessing, Chemical and Mechanical Recycling and Yarn Spinning. Its goals are on research to landscape materials and players, standardise grades for recycling inputs and inform the circular model; aggregate data and map a new circular supply chain with a focus on specific end products; outline missing links; and report on the development of commercially viable circular textile supply chains. Accelerating Circularity Inc The organisation’s data collection and research on materials, grade standardisation for recycling and reports on the sustainable supply chains can help manufacturers stay on track with sustainability. Textile Exchange Textile Exchange is a global nonprofit driving positive impact on climate change and nature across the fashion and textile industry. It guides and supports a growing community of brands, retailers, manufacturers, farmers and others committed to climate action toward more purposeful production, right from the start of the supply chain. The organisation’s goal is 45 per cent reduction in greenhouse gas from fibre and raw material production by 2030 in the fashion, textile and apparel industry. To give the fashion and textile industry a way to authenticate their sustainability claims from raw material to final product, it has developed a set of robust standards which help in accreditation and certification. Textile Exchange Its strategic partners include Apparel Impact Institute, Conservation International, Fashion for Good, Fashion Industry Charter for Climate Action, Global Fashion Agenda, Responsible Business Coalition, Sustainable Apparel Coalition, The Biodiversity Consultancy, The Fashion Pact, The Policy Hub and ZDHC. e organisation provides a scorecard for members to measure sustainability measures and also provides gap analysis and an impact dashboard. Along with this, edation and guidance on training, one-on-one support from experts and a materials summaries library. Apparel Impact Institute (AII) AII identifies, funds, scales and measures the apparel and footwear industry’s proven environmental impact solutions. It plays the critical role of a technical clearing house for partner brands, manufacturers and philanthropic donors, validating and aggregating proven environment initiatives. December 2023 | AO India 43 SUSTAINABILITY Apparel Impact Institute is building a US $ 250 million Fashion Climate Fund (combining industry and philanthropic sources) to unlock a total of US $ 2 billion in blended capital towards verified impact solutions, thereby removing up to 150 million tonnes of CO2 from the apparel supply chain, with US $ 150 million kept to benefit manufacturers. AII’s stakeholders will widely adopt proven impact solutions across all tiers and interventions. The organisation intends to partner with financial capital to de-risk and scale investment in proven clean energy solutions and fund the development of digital tools for transparent, standardised impact reporting. Good On You Good On You is an organisation that confers ratings to fashion brands based on analysis of the sustainable and ethical practices of said brands. The organisation’s ratings technology and independent analysts compile and verify brands’ own public reporting, the most robust thirdparty indices (like the Fashion Transparency Index and CDP Climate Change and Water Security projects), as well as certifications and accreditations (like Fairtrade, Fair Wear Foundation, Cradle to Cradle, OEKO-TEX Made in Green, Global Organic Textile Standard or the Responsible Wool Standard). Using publicly available information, it considers brands’ practices throughout their entire supply chains, from raw fibres to products’ end of use. Altogether, the evaluation is done using up to 1,000 data points across more than 100 key issues and indicators to arrive at each brand’s score. The ratings consider People – how well brands address their impacts on workers across the supply chain; Planet – brands’ environmental policies being under check and reduced greenwashing; Animals – From rating cruelty-free and vegan fashion to addressing animal welfare within fashion’s supply chain. These ratings are then given to various players along the supply chain and help in boosting sustainability efforts. Centre for Sustainable Fashion (CSF) Centre for Sustainable Fashion is a University of the Arts London research, education and knowledge exchange centre. The organisation collaborates with universities, businesses and other organisations around the world to promote Fashion Design for Sustainability as a field of study, industry and education practice. The organisation conducts research, engages in participatory practice with businesses, NGOs, government agencies and other organisations for knowledge exchange. It creates courses and resources for LCF and UAL students and for wider audience through digital learning and supports changes in policy and advocacy for social and environmental justice. The CSF Strategy (2020-25) has set the direction for the next five years with short and long-term aims and Policy Hub The Policy Hub (founded in 2019) unites the apparel and footwear industry to propose policies that accelerate circular practices. It consists of five partner organisations representing more than 500 stakeholders: 1. Sustainable Apparel Coalition (SAC) 2. Global Fashion Agenda (GFA) 3. Federation of the European Sporting Goods Industry (FESI) 4. Textile Exchange (TE) 5. Zero Discharge of Hazardous Chemicals (ZDHC) The Policy Hub’s vision is to encourage an ambitious policy framework to accelerate the transformation of the apparel and footwear industry towards circularity. It focuses on: ï‚Ÿ ï‚Ÿ ï‚Ÿ Good On You 44 AO India | December 2023 guiding the industry towards circularity educating the industry and the policymakers cooperating and facilitating policy discussions SUSTAINABILITY objectives, a delivery plan and a framework for accountability. It builds on academic research, knowledge exchange and educational practice undertaken by CSF since the Centre’s formation in 2008. The centre’s research and participation in businesses along with knowledge exchange of the newest sustainability practices and technologies is shared with businesses for a better sustainability process. PoliticallyInFashion Founded by entrepreneur Hilary Jochmans, PoliticallyInFashion is a community for all those in fashion – designers, manufacturers, artisans, retailers, models, lawyers, reporters, consumers – to learn about legislative and regulatory issues of key importance in the industry. The mission is to educate individuals on public policy and empower them with this knowledge; to then engage with elected representatives on how these issues impact companies and consumers. Recent initiatives from PoliticallyInFashion include spearheading advocacy for the creation of a Fashion Czar in the US and a Call to Action for the Federal Trade Commission to update the Green Guides, a federal regulation designed to assist businesses in making lawful environmental marketing claims and the public in understanding and appreciating these statements. These endeavours have been featured in WWD, Marie Claire, British Vogue and Fashionista, among others. The organisation is instrumental in educating businesses about the regulatory practices in the industry and how companies can educate themselves on the legislations practised in the industry. Sustainable Apparel Coalition (SAC) Sustainable Apparel Coalition is a leading alliance for sustainable production in the apparel, footwear and Sustainable Apparel Coalition (SAC) textile industry. The coalition develops The Higg Index, a standardised value chain measurement suite of tools for all industry participants. The tools measure environmental, social and labour impacts across the value chain. The SAC’s Higg Index provides certifications to companies and manufacturers. SAC Strategic Councils are designed to bring together a set of diverse members on a regular basis in order to discuss and consult on emerging issues and provide input and guidance on areas of strategic importance. Member Expert Teams (METs) are formed on an as-needed basis in order to garner expertise where specific and targeted member input is needed regarding certain aspects of a Higg Index Tool or SAC initiative. Fashion Takes Action (FTA) Fashion Takes Action is a Canadian non-profit organisation established in 2007 to advance sustainability in the entire fashion system through education, awareness, research and collaboration. This is achieved through its industry programs such as the annual WEAR Conference, its work to advance circularity, Employee Education workshops and Sustainable Fashion Toolkit. For citizens, a youth education program ‘My Clothes My World’ is offered. Since 2014, the World Ethical Apparel Roundtable (WEAR) Conference has brought together the entire fashion industry to learn, network and collaborate. The Sustainable Fashion Toolkit Is a free online platform that features hundreds of vetted, credible resources from global organisations that have been summarised and categorised. This is an important time saving resource that includes reports, guidelines, standards, articles, podcasts, case studies and more. Cradle to Cradle Products Innovation Institute The organisation is instrumental in providing a certification standard for manufacturers to make cradle-tocradle apparel i.e. apparel that can be effectively recycled after being used. Across the value chain, Cradle to Cradle Certified® is used to innovate and optimise materials and products according to the world’s most advanced science-based measures. The Cradle to Cradle Certified Product Standard features two product cycle pathways and five R-Strategies, offering the opportunity to learn about circular products, system methodologies and related requirements. December 2023 | AO India 45 SUSTAINABILITY//NEWS www.apparelresources.com Organisations collaborating with focus on recycling As textile industry is focusing on recycling in a big way, various organisations are joining hands to work together to promote recycling. are mobilising new technologies into the supply chain, thereby improving transparency, traceability and efficiency, while driving recycling. We are also actively engaging with brands, supply chains and government bodies to foster industrywide transformation and a sustainable future for India’s fashion and textile sector.” Despite India’s active textile recycling industry, there is tremendous untapped market potential to scale recycling initiatives and improve the quality and commercial viability of textile-to-textile recycled products in the country. Over the duration of the collaboration, IDH will extend subsidies to brands to facilitate the onboarding of their supply chains and offer training in textile waste segregation. The target is to onboard 520 manufacturing facilities, 65 recyclers and waste handlers on the RR platform and engage around 3500 factory workers. The goal is to trace approximately 50,000 metric tonnes of segregated waste from source to recycling by 2025. Reverse Resources (RR) – a SaaS platform for fashion textile waste – and IDH have partnered to revolutionise India’s textile-to-textile recycling industry. While high-end recyclers actively seek feedstock, a significant portion of highquality textile waste continues to flow towards low-value use cases. Adding to the challenge, brands are often left in the dark about the fate of their textile waste. In response to these challenges, RR says it is taking proactive steps to address them. After completing successful pilot projects as part of Fashion for Good’s ‘Sorting for CircularityIndia’ initiative, RR’s collaboration with IDH aims at expanding its presence in India. This collaboration focuses on harnessing the supply networks of both domestic and international brands operating in India, with the intention of revolutionising the way textile waste is managed and recycled. Jagjeet Singh Kandal, Country Director (India), IDH, commented, “It is a pivotal step in addressing India’s textile and apparel waste crisis. Through RR’s innovative platform, we 46 AO India | December 2023 Ann Runnel, CEO and Founder of Reverse Resources, highlighted, “The fashion industry is increasingly discussing the importance of data and digitisation. Circular economy, with its systemic complexity, cannot be scaled up without a data-driven approach to manage textile waste as the strategic feedstock for the industry in near future. This project is not only about scaling up textile-to-textile recycling, it is also about creating a backbone for the fashion and textile industry to plan, develop and verify the textile fibre flows through the circular system of the industry.” SaXcell, a textile recycling innovator, recently entered into an MoU with Birla Cellulose, an arm of India’s Aditya Birla Group and one of the world’s largest manufacturers of manmade cellulosic fibres. Combining SaXcell’s innovative textile waste pulping technology with Birla’s advanced wet spinning expertise, the partnership aims to produce high-quality sustainable fibres under the name ‘SaXcell’. These recycled fibres are tailored to meet the circular textile needs of customers on a commercial scale, marking a significant stride toward a more sustainable and circular textile industry, as highlighted in a joint press release by Aditya Birla Group and SaXcell. Erik van der Weerd, CEO of SaXcell, stressed on the urgency of transitioning from a linear to a circular economy within the textile industry and expressed optimism about the impact this alliance could create. “SaXcell’s and Birla’s combined innovation force and production power offer a great opportunity to create real impact,” he said. “Birla Cellulose is strongly committed to support innovators for expanding circular fibre offerings in the textile and non-woven value chain. We have been exploring innovative business models and partnerships. This collaboration is one such initiative, where we aim to help SaXcell leapfrog from pilot to commercial demonstration scale. Such partnerships will play an increasingly important role in accelerating circularity in the global textile value chain,” said Aspi Patel, Chief Technology Officer, Aditya Birla Group and Birla Cellulose. SaXcell B.V., a technology development company, specialises in recycling used textiles into feedstock for sustainable man-made cellulosic fibres. Birla Cellulose, a leading player in sustainabilityfocused man-made cellulosic fibres’ production, operates 12 sites globally, integrating environmentally efficient closed-loop technologies. SUSTAINABILITY//NEWS www.apparelresources.com Coats Group PLC named as one of the world's best workplaces Coats Group PLC, the world's leading industrial thread manufacturer serving the apparel and footwear industry, has been named one of the World's Best Workplaces 2023, a recognition bestowed by Fortune and Great Place To Work, which annually select top 25 companies that are dedicated to creating exceptional workplace cultures. This acknowledgment for Coats highlights the company's dedication to its people. The World's Best Workplaces award is based on a comprehensive analysis and surveys representing the perspectives of 15 million employees worldwide. This evaluation not only delves into employee sentiments but also gauges the breadth and impact of company workplace programs. At the heart of Coats' work culture lie three foundational pillars articulated by Rajiv Sharma, Chief Executive Officer at Coats Group. “We are humbled and proud to be recognised as one of the top workplaces worldwide. This achievement is a testament to our company's culture, employees and leaders. Three pillars underpin our culture. Firstly, it’s about 'doing the right thing', and this manifests itself in ethics, integrity, safety and sustainability. The second pillar is 'customer centricity', which gives us the edge in serving customers today and anticipating their future needs. The third pillar of our culture is 'family environment'. This promotes collaboration, sharing and caring. It’s also the basis for forging enduring longterm relationships with stakeholders," commented Rajiv. It's worth noting here that Coats Group operates across more than 50 countries with a diverse workforce comprising over 18,000 employees conversant in over 100 languages. Coats takes a global approach to valuing its people. To ensure equitable recognition, Coats introduced the 'Applause' program in 2022, a standardised global method that ensures all employees receive equal acknowledgment for their contributions, regardless of their geographic location. Furthermore, the company also launched its 'Coats for All' initiative, dedicated to fostering fair and equal opportunities for development amongst employees worldwide, irrespective of gender, age, disability, race, religion or belief. This commitment underscores Coats' aim to maintain a safe, diverse and inclusive work environment across its global operations. SNIPS Consultant appointed to study Tamil Nadu’s sustainability requirements and measures The Central Government has appointed a consultant to prepare a report on the requirements and measures taken up by apparel and textile units in Tamil Nadu on ESG. A Tirupur Exporters Association delegation met with Joint Secretary Prajakta L Verma to discuss the measures being adopted by Tirupur in this regard. Primark, CottonConnect and RUDI coalition win award Primark, CottonConnect and RUDI, part of the female farmers’ union Self-Employed Women’s Association (SEWA), have won Partnership of the Year for their coalition to deliver the Primark Sustainable Cotton Programme (PSCP) at the Reuters Responsible Business Awards 2023. Recycling start-up Recyc’ELIT secures € 3.2 million Recyc’ELIT, a French start-up that recycles all types of complex textiles and plastics, has secured € 3.2 million in a fresh round of funding. December 2023 | AO India 47 TRENDS IN FOCUS//RUNWAYS RUNWAY RECAP UNVEILING THE ACCESSORIES, BAGS AND FOOTWEAR TRENDS DEFINING S/S ’24 As the curtain falls on the Spring/Summer 2024 catwalk season, it's an opportune moment to reflect on the standout accessories that will undoubtedly leave an indelible mark on next summer's fashion landscape. The Spring/Summer 2024 sees innovation, revival and unabashed expression juxtaposed to redefine style in a compelling manner. This season, designers and high fashion brands alike, have woven a tapestry of trends that transcend the ordinary, presenting a sartorial spectacle that captivates and challenges conventional notions. From the revival of nostalgic classics to the introduction of daring accessories, the runways paint a vivid picture of a season marked by versatility and bold experimentation. The Soft Under Arm Bag emerges as a functional and chic departure from mini-bag trends, offering a spacious and understated elegance, while the Hobo Bag takes centre stage, with its linear, rounded pragmatism and varied styling choices, affirming its timeless and adaptable appeal. On the footwear front, The Ballerina gracefully pirouettes back into the limelight, appearing flat, often adorned with straps and captivating audiences with its diverse interpretations at Akris, Balenciaga and Andreas Kronthaler for Vivienne Westwood. Additionally, the Casual Pump disrupts the quiet luxury 48 AO India | December 2023 trend in ready-to-wear, adorned with spikes, faux fur or textured materials. These pumps, showcased at Bevza, Mugler and Carven, transcend mere footwear to become collectible pieces that are as Instagrammable as they are stylish. The revival of early 2000s aesthetics is unmistakable with The Choker or Choker Necklace making a bold comeback, spotted on the catwalks of luxury labels like Dior, Patou, Chanel and Givenchy. Its flashy, rocky or girly variations perfectly align with the Y2K trend, showcasing a fusion of nostalgia and contemporary flair. Basics like Socks, once considered a subtle accessory, have emerged this season as a niche trend, gracing the runways of Zimmermann, Vaillant and Givenchy. Worn in pastel shades or light denier black, knee-high socks pair harmoniously with long skirts, slit skirts, or pencil skirts, infusing outfits with a feminine, old-fashioned charm. In Spring/Summer 2024, fashion beckons the bold and the eclectic, inviting enthusiasts to embrace a diverse array of trends that redefine the boundaries of style and individual expression. Apparel Online India takes stock of the diverse range of trends, from the resurgence of pumps to the subtle allure of stockings, the graceful charm of ballerinas and the timeless and adaptable appeal of the hobo bag. Read on to discover what you should be adding to your assortments. TRENDS IN FOCUS//RUNWAYS THE SOFT UNDER ARM BAG The Spring/Summer 2024 showcased the prominence of the soft underarm bag, a substantial departure from the miniature bag craze that has been sweeping the fashion scene since the past few seasons. The runways featured this spacious, and at times, oversized handbag adorning the arms of numerous silhouettes. In a nod to practicality, this accessory, often designed with a unisex appeal, addressed the functional void left by the previous mini-bag trend. Crafted from supple leather or waxed canvas, these bags typically ditch the conventional use of handles. Instead, the preferred styling involves wedging it to the side, snugly positioning between the arm and the hips. Noteworthy depictions of the soft underarm bag were noted at Miu Miu, Rokh and Phillip Lim, underlining its popularity across diverse fashion collections. THE HOBO BAG The hobo bag emerged as a notable accessory trend during the Spring/ Summer 2024 international fashion shows, making appearances at esteemed fashion houses such as Hermès, Valentino and Dion Lee. Characterized by its linear, rounded pragmatism, the hobo bag embodies an easy-to-wear accessory style complete with a classic and accommodating charm. At Hermès, Chloé and Valentino, the hobo bag's half-moon shape took centre stage, often carried gracefully by hand. In contrast, at Bottega Veneta and Dion Lee, the trend was presented in oversized proportions, stylishly worn on the shoulder. This versatile approach to styling underscores the hobo bag's adaptability to different preferences and occasions. Having already established itself as a trend in 2022, the hobo bag's enduring popularity lies in its simple yet timeless design, offering a safe haven for fashion enthusiasts. Furthermore, its continued presence on the runways affirms its status as a steadfast and stylish choice for the upcoming season. December 2023 | AO India 49 TRENDS IN FOCUS//RUNWAYS THE BALLERINA The resurgence of the ballerina continues to captivate the fashion scene, evident in its presence at notable fashion shows for Spring/Summer 2024, including Akris, Balenciaga and Andreas Kronthaler for Vivienne Westwood. This timeless footwear style is expected to make a comeback for several seasons and remains a prominent choice for S/S ’24. The ballerina, typically flat and often adorned with a strap, rivals the practicality of trainers. Diverse interpretations of this classic style were showcased on the runways. Luisaviaroma featured sharp and metallic variations, while Balenciaga embraced a powdery pink aesthetic. Akris opted for a patent finish and Andreas Kronthaler for Vivienne Westwood presented a lace-like rendition, highlighting the versatility of the ballerina in adapting to various styles and preferences. The enduring appeal of this footwear underscores its continued relevance and prominence in the ever-evolving world of fashion. THE CHOKER OR CHOKER NECKLACE The resurgence of the choker necklace, reminiscent of the 2000s, made a strong presence on the catwalks of renowned luxury labels during the recently concluded international fashion shows for Spring/Summer 2024. 50 AO India | December 2023 This trend was notably observed at fashion houses such as Dior, Patou, Chanel and Givenchy. The chokers showcased a diverse range, from flashy and edgy to feminine, perfectly aligning with the Y2K aesthetic. Notable sightings of this accessory trend at prominent designer showcases emphasise its widespread adoption by prominent designers and make it a trend to look forward to. TRENDS IN FOCUS//RUNWAYS THE PUMP The casual pump emerged as a striking footwear trend during the recently concluded Spring/Summer 2024 international fashion shows. In contrast to the prevailing Quiet Luxury trend in ready-to-wear, shoes took centre stage as a disruptive element, injecting a bold and dynamic character into silhouettes. Luxury brands embraced the opportunity for extravagance, resulting in casual pumps adorned with spikes, featuring faux fur elements or crafted from textured materials. This season, prominent fashion players such as Bevza, Mugler and Carven, indulged in creative freedom, offering pumps that transcend mere footwear to become collectible pieces with aesthetics that are equally captivating on Instagram. The casual pump has the ability to revive classicism while incorporating avantgarde elements. THE BROOCH The brooch, once a classic accessory, has experienced a revival for the upcoming season, prominently featured at fashion shows including Schiaparelli, Pedro Del Hierro and Stella McCartney. At Schiaparelli, Stella McCartney and Chanel, the brooch has been granted a second lease of life, emerging as a key element to add vibrancy to both formal and everyday outfits. Luxury brands for S/S ’24 are embracing the brooch not only for its formal elegance but also for its artistic strength, exploring its romantic potential and versatile aesthetics. In the Spring/Summer 2024 season, the brooch comes in diverse forms, whether XXL, floral, animal-inspired or abstract. It manifests in various materials, ranging from fabric to metal, allowing for a wide spectrum of styles and expressions. The brooch, with its renewed significance, is making a strong statement as a multifaceted accessory that complements and enriches the contemporary fashion landscape. December 2023 | AO India 51 TRENDS IN FOCUS//RUNWAYS SOCKS Socks, one of the niche yet compelling trends for the Spring/Summer 2024 fashion shows, notably featured at Zimmermann, Vaillant and Givenchy. This emerging trend possesses a gripping appeal that can capture the collective fashion consciousness. The spotlight was on knee-high socks, particularly in pastel shades or light denier black. A revival of old-fashioned charm was evident as these knee-highs were expertly paired with long skirts, skirts with slits or pencil skirts. The result was a feminine and sophisticated look that embraced both nostalgia and contemporary style. The incorporation of socks into the ensemble, as witnessed at Zimmermann, Vaillant and Givenchy, suggests a nuanced and stylish approach to accessorising for the upcoming season. FLASHY EAR ACCESSORIES The Spring/Summer 2024 season showcased a dazzling range of flashy ear decorations, making a statement at fashion shows such as Laruicci, Saint Laurent and Zimmermann. Earrings took centre stage with their bold and eye-catching designs- often oversized and predominantly in 52 AO India | December 2023 gold, these accessories infused the silhouette with a joyful chic that exuded confidence without any apologies. Whether worn as a pair or as individual pieces, these XXL earrings played a pivotal role in elevating the overall aesthetic of the ensemble. They served as more than just accessories; they were a deliberate and stylistic expression, especially when paired with outfits that leaned towards minimalism. These flashy ear accessories emerge as a dynamic and expressive trend for S/S ’24 , adding a touch of glamour and playfulness to the fashion scene. Uncrushed Chinos Designed to keep you uncrushed all day long with a soft and smooth surface 100% premium cotton and synthetic blend wrinkle free Infused with ultra low temperature liquid ammonia for that flawless feel Engineered for revolutionary appearance with all-day comfort Crafted with extremely luxuriously soft texture with unmatched easy care Fabric Marketing Office: Auro Textiles, Sai Road, Baddi, Dist. - Solan, Himachal Pradesh - 173205, India Corporate Office: Chandigarh Road, Ludhiana Punjab - 141010. India. Email: fabrics@vardhman.com December 2023 | AO India 53 December 2023 | AO India 53 FASHION BUSINESS ECO-PIONEERS OF CHANGE MEET THE CIRCULAR DESIGN CHALLENGE CHAMPIONS REDEFINING SUSTAINABLE FASHION ON A GLOBAL SCALE The Circular Design Challenge (CDC), now a fixture during fashion week each season, was pioneered by RIL five years ago with a visionary mission to instill a sense of consciousness for sustainability and circular practices throughout every facet of the fashion industry. In a dynamic collaboration between RIL, the UN in India and Lakmé Fashion Week, this initiative sought to champion transformative ideals within the realm of fashion. Over the years, the Circular Design Challenge has played a pivotal role in propelling India’s fashion industry towards eco-consciousness. With the aim of giving a global platform to fashion design talent across the world, CDC announced, this season, its worldwide expansion that culminated in the latest season of Lakmé Fashion Week x FDCI. Presented by R|Elan, the nextgen fabric brand by Reliance Industries Limited (RIL), in association with the United Nations in India, the CDC focuses on cultivating eco-conscious creativity within the fashion industry for a greener and more sustainable future on a global scale. For half a decade, CDC has identified and supported remarkable winners who combine fashion with environmentally friendly innovations. Some past winners include I Was A Sari, which upcycles discarded sarees while empowering women artisans; Malai Biomaterials Design, which 54 AO India | December 2023 The Circular Design Challenge resonates with the global Lifestyles for Environment (LiFE) movement, recently endorsed by the G20. The CDC and LiFE are important threads in the UN partnership tapestry and we are thrilled that the CDC is bringing its message to the global catwalk for the first time. This reflects the centrality of India as a leader in both sustainable culture and climate action. Where India and its fashion industry goes, the world will increasingly follow.” Shombi Sharp UN Resident Coordinator, India creates sustainable alternatives to leather; Bandit, which masters the art of upcycling various materials into eco-cool products; and Pieux, which focuses on recycled materials and modular garment construction. Having successfully become a catalyst for change, this season saw the CDC extending its competition on a global scale across the UK, EU and APAC regions and inviting designers from around the world to contribute to a more sustainable and circular fashion future. The design challenge places emphasis on key sustainability parameters, evaluating aspects like biodegradability, durability and multi-functionality of products. Expert jury members then meticulously monitor factors such as energy efficiency, closed-loop systems and the ethical use of materials in production and aim to ensure that social and environmental impacts align with one or more United Nations standards of Sustainable Development Goals. CDC’s global partners span borders, with collaborations including the British Council for the UK, Redress for Hong Kong/Asia-Pacific and Istituto Marangoni for the European Union. This season saw Pei-Wen Jin from Taiwan being announced as a finalist from the APAC region, while the India edition recognised ‘Studio Medium’ by Riddhi Jain and Dhruv Satija, ‘Banofi’ + ‘Studio Beej’ (Consortium) by Jinali Mody and Arundhati Kumar, and ‘Without’ by Anish Malpani as the three finalists. During the UK Jury meet, Amesh Wijesekera, a Sri Lankan designer based in London, secured a spot in the finals and Felipe Fiallo emerged as the finalist from the EU jury meet. FASHION BUSINESS THE DESIGNERS/BRANDS Equipped with groundbreaking patentpending technology, Without utilises discarded Multi-Layered Plastic (MLP) packaging to manufacture high quality materials, offering a versatile array of ecofriendly products. Anish Malpani Without - INDIA Amongst its innovations, Without produces sunglasses crafted from repurposed chip packets, emphasising on practicality with features such as UV polarisation, durability and comfort. As an impactfocused start-up, Without champions a guilt-free consumption ethos by promoting circular products. The brand also plays a pivotal role in enhancing the livelihoods of waste pickers, highlighting their commitment to social empowerment within their innovative process. PRODUCT CATEGORIES, PRICING AND TARGET MARKET “Our main product is world’s first recycled sunglasses made from plastic waste, which is currently priced at Rs.1500 and can be customised as per consumer preferences,” Anish Malpani, Founder of Without, told Apparel Online India. The brand’s target market comprises Gen Z and millennials between the age group of 25 and 35 years based in Tier-1 cities of India. “Our main idea is to reach out to socially conscious folks, who care about sustainability and fashion.” PRODUCTION AND MANUFACTURING The brand conducts its production and manufacturing entirely in-house. Plastic waste is sourced locally from waste pickers and the extraction process is carried out within the brand’s facilities. Palettes are also locally sourced. For the glasses, lenses are typically procured from suppliers in China or India, while hinges are sourced from local distributors, emphasising a combination of local and international collaborations within the production process. Commenting on the lead times, Anish said, “If we had to design a new pair, then the process would take somewhere around three to six months internationally. This would involve the process of sketching to the process of manufacturing. However, for our current style in the market, our lead time is a week.” SOURCING Since the primary raw material for its products is plastic waste, the waste products are locally sourced from Indian markets to meet the growing demand. December 2023 | AO India 55 FASHION BUSINESS and select offline stores, with a nationwide reach across India. Additionally, it offers global shipping services. At Banofi, the team operates as a material science start-up specialising in the creation of a plant-based leather alternative derived from banana crop waste. The core product offering consists of Banofi leather panels, available in different thicknesses, colours and finishes, with prices ranging between US $ 30 and US $ 45. Jinali Mody and Arundhati Kumar Banofi + Studio Beej - INDIA The brand caters to individuals aged 20 to 45, appealing to a diverse audience, particularly those who prioritise environmentally conscious choices. Banofi’s products have garnered a global appeal, resonating with the international interest in conscious fashion. Presently, the majority of its clientele hails from the UK, USA and India. PRODUCTION AND MANUFACTURING Banofi, an innovative plantbased leather derived from banana crop waste, seamlessly aligns with the core values of India-based Studio Beej, a brand specialising in plantbased accessories. Their collaborative collection, Biparita, represents a fusion of cutting-edge bio research, traditional Indian craftsmanship and a strong commitment to climate awareness. Deeply rooted in Bengal, their home state, the collection not only engages with local craft communities for product development but also adheres to a vegan, cruelty-free and circular ethos. 56 AO India | December 2023 PRODUCT CATEGORIES, PRICING AND TARGET MARKET At Beej, there are currently two main categories: Fashion and Lifestyle. In the Fashion category, up on offer are bags, wallets, belts and small accessories. In the Lifestyle category, the brand provides products for home, travel and gifting. Beej’s primary market is in India, catering to both men and women aged between 30 and 50 years of age. The brand sells its products online through its website, channel partners Beej operates its own design, production and manufacturing unit based in Mumbai, handling the entire process in-house. On the other hand, Banofi also manages complete production in-house but opts for collaboration with other design studios to give life to its materials. “In terms of lead time, at Beej, we produce in small batches and ship directly from our studio in Mumbai. A design can take anywhere between three to five weeks to launch online from the time we start working on the idea. On the other hand at Banofi, lead time from raw material to a finished Banofi panel takes four weeks,” Jinali Mody and Arundhati Kumar, said. SOURCING “At Beej, all our materials are outsourced and we work with a mix of plant-based leathers as well as fabrics,” Jinali and Arundhati explained adding, “The plant-based materials we work with are patented and come from specific parts of the world: Cork- Portugal, Pinatex-Spain and MirumUnited States.” Additionally, the brand also works with a recycled handloom material called khesh that comes from the Birbhum district of West Bengal and a small weaver community outside Bengaluru that uses post-consumer recycled yarn to make products. Banofi, on the other hand, relies on banana crop waste as its primary raw material. The banana plant, being a perennial crop, generates abundant crop waste both in India and globally. The brand sources its raw material from over 30 smallholder farmers in India. STRATEGIES TO CAPTURE ONLINE DEMAND “At Beej, a large part of what we do is building consumer awareness and that we do through our social media channels, videos, interviews etc. We also do performance marketing, typically using Google and the Meta platform to reach out to new buyers.” the duo said. Considering the limited availability of alternatives in its marketing channels, Banofi primarily relies on LinkedIn, Instagram Direct Messages and email marketing for boosting its online demand. FASHION BUSINESS At Studio Medium, the essence of Bandhani is ingrained within its brand identity. Acknowledging the substantial waste generated by this technique in the form of thread waste and textile offcuts, Studio Medium has devised a template solution that allows it to transform significant quantities of silk offcuts and discarded cotton yarns into textiles and garments for future use. Riddhi Jain Studio Medium - INDIA The result is a collection of enchanting apparel and home textile pieces that serve as a testament to the idea of how inventive design is the key to the future of zero waste. PRODUCT CATEGORIES, PRICING AND TARGET MARKET The brand operates within two distinct categories, offering both womenswear and menswear. Its apparel range is priced between Rs. 24,500 and Rs. 75,000 with the target market comprising High Net Worth Individuals (HNIs) from both India and abroad. The brand primarily caters to individuals aged between 30 to 70, with a focus on customers located in India, the United States, United Kingdom and the European Union. PRODUCTION AND MANUFACTURING Studio Medium manages its production and manufacturing in-house. However, given its specialisation in working with textile and yarn discards resulting from the tie and dye process, the brand collaborates with artisans across Gujarat and Rajasthan. These artisans play a crucial role in collecting the discards and forwarding them to the brand. Looking ahead, the brand’s long-term strategy involves establishing production and manufacturing units directly at the source of this preconsumer waste, thereby streamlining and enhancing the sustainability of the production process. Commenting on the lead times for the products, Riddhi said, “The design process to sampling takes about four months. Once the samples are ready and locked, production takes about three to four weeks.” SOURCING “We primarily work in handwoven silk from Bengal. For this collection, we have extended our vocabulary to handwoven denim, kota doria as well as factory surplus cotton. The handwoven silks are commissioned by us to the weavers and they are woven as per our designs,” Riddhi explained. Studio Medium procures additional textiles from major vendors located in Kolkata, Bengaluru and Chandni Chowk. In certain instances, especially for specific surface techniques, the brand maintains a close collaboration with artisans situated in Kutch, Gujarat. This approach ensures a diverse and well-sourced selection of textiles while fostering partnerships with artisans for specialised techniques. December 2023 | AO India 57 FASHION BUSINESS exclusive pieces like jackets and coats are towards a higher range of around € 300-400 plus. “Our target market is predominantly in Europe, America and in the South Asian region. In terms of age, we cater to the age group of 28 to 45 because we cater to a seasonless, genderfluid wardrobe,” Amesh Wijesekera highlighted. PRODUCTION AND MANUFACTURING Amesh Wijesekera UNITED KINGDOM Everything within the brand is meticulously designed, crafted and sourced in Sri Lanka. The artisanal textiles, a showcase of skilled craftsmanship, are exclusively made in Sri Lanka by diverse communities spanning the entire island. The brand primarily collaborates with weaving communities and artisans specialising in knitting and crochet. Notably, the manufacturing process for clothing is entrusted to women-led Small and Medium Enterprises (SMEs), contributing to a diverse and empowered workforce. Based in London, Amesh Wijesekera is a Sri Lankan designer who collaborates with skilled craftspeople across the island, particularly engaging with artisan communities specialising in knitwear, crochet and handloom. As a semi-finalist for the LVMH prize, Amesh takes a diligent approach by working with surplus fibres from factories in an effort to close the loop on clothing waste within Sri Lanka and offering support to an industry that has historically been associated 58 AO India | December 2023 with unethical practices and mistreatment of craftspeople. PRODUCT CATEGORIES, PRICING AND TARGET MARKET Amesh Wijesekera essentially works with artisanal and non-artisanal materials which include ready-to-wear and bespoke exclusive items. Readyto-wear products include pieces like shirts, trousers, shorts, that range from € 100 and upwards whilst artisanal products range from upwards of € 300. Its “Because we work very handson, everything is made in Sri Lanka locally and we are still a small brand. However, when we do have interest from buyers, it usually takes a minimum of three months for the entire process – production, development and shipping,” Amesh explained. SOURCING The brand predominantly utilises materials such as cotton, cotton blends and wool. Notably, a significant portion of the wool used is sourced from deadstock materials in Sri Lanka. Given the country’s substantial apparel manufacturing industry, there is often an abundance of leftover textiles, trims and materials that typically find their way into landfills or second-hand street markets. The brand strategically acquires these discarded textiles from such sources and, in a sustainable approach, imparts them with a renewed value. Through various processes like printing, embellishments and washing treatments, the brand enhances and transforms these materials, giving them a second life and contributing to a more sustainable fashion cycle. Commenting on the same, Amesh said, “Because I come from a textile design background, we make our own materials, everything is made bespoke for the brand. In terms of raw materials and textiles, all the primary textiles, the artisanal textiles are handwoven, hand-knitted or crocheted in Sri Lanka and all our secondary textiles come from pre-consumer waste from the garment district.” STRATEGIES TO CAPTURE ONLINE DEMAND Something that has worked well for Amesh and his namesake label is their storytelling ability, especially in terms of how they do their photoshoots, editorials and campaigns. “I think consumers are more receptive to this communication as opposed to product first information and it really encourages them to be a part of this whole community movement and it has been doing really well for us,” Amesh said. FASHION BUSINESS embraces and promotes ecological principles. PRODUCT CATEGORIES, PRICING AND TARGET MARKET FELIPE_FIALLO® is a bio-digital couture footwear brand based in Milano with a Latin American spirit. The brand encompasses three primary lines: Bio-couture, Phygital Luxury and Readyto-Wear, targeting a price range spanning from € 475 to € 1200. Felipe Fiallo EUROPEAN UNION Catering to individuals aged 22 to 38, FELIPE_FIALLO® caters to both men and women. The brand’s focal markets include Europe, Asia and India, with its headquarters situated in Milan, Italy. PRODUCTION AND MANUFACTURING Production and manufacturing for the brand are carried out in collaboration with a partner network across Europe, specifically in Italy, Germany, Portugal and the Netherlands. Additionally, the brand collaborates with indigenous communities in Ecuador for certain aspects of the production process. Felipe, an Ecuadorian national residing in Italy, is revolutionising the luxury footwear sector by seamlessly integrating digital fabrication, sustainability and style. Guided by the principles of biomimicry, his design approach harmoniously blends technology and craftsmanship to produce exceptionally innovative footwear. With a focus on regenerative design, Felipe is deeply respectful of the environment and actively advocates for cradle-to-cradle practices. Through his work, he envisions a more sustainable fashion industry that Some biomaterials, such as crystal growing, are skillfully crafted in-house in Milano. “From the footwear design process, prototyping, material innovation, sampling and sales campaign to the warehouse, we take six months,” Felipe told Apparel Online India, adding, “We launch two collections yearly with two capsules for experimental drops.” SOURCING “Our materials are a mix of both. For our bio-couture line, we are creating our own bio-materials like mushroom leather, grown crystals and algae between Italy and Netherlands,” Felipe explained. The brand sources various materials from local producers and warehouses in Italy. Currently, the primary production areas, depending on the specific product lines, include Veneto, Tuscany and the South of Italy. There is an ongoing initiative to establish a network of local hubs for each target market, aiming to champion local production and foster innovation within those regions. STRATEGIES TO CAPTURE ONLINE DEMAND FELIPE_FIALLO maintains a robust offline presence, particularly during significant fashion events such as London and Milan Fashion Weeks. These events generate substantial traction, positively impacting the brand’s online visibility. At the moment, FELIPE_ FIALLO’s main digital channels are Instagram and LinkedIn where the brand shares news and product updates. It is also working on its own e-commerce platform to offer a more personalised service to its clients. For its phygital items, the brand is a part of The SYKY Collective, a first-of-its-kind digital fashion platform, for fashion lovers and WEB 3 explorers. December 2023 | AO India 59 FASHION BUSINESS determined during the design phase, Pei Wen firmly believes that for designers, prioritising sustainability in every decision is essential for fostering an industry that coexists harmoniously with nature. PRODUCT CATEGORIES, PRICING AND TARGET MARKET The Tangram by Pei Wen Jin is a modular fashion concept that represents a practical DIY approach for creating a circular wardrobe. Customers can disassemble their clothes into modules and reassemble them into various styles using a very simple action. The brand targets 20 to 45 year olds who love DIY and enjoy creating various styles. Pei Wen Jin ASIA-PACIFIC “Our modular clothing can be purchased individually as single modules, or customers can buy a kit, allowing them to follow the instructions to assemble different clothing and accessories, much like playing with Lego to create their own style,” Pei Wen Jin told Apparel Online India in an exclusive interview. Dedicated to mastering the craft of zero waste design for a circular future, Pei Wen is at the forefront of sustainable innovation. Holding patents for her modular zero-waste pattern invention and pioneering design techniques in Taiwan, she stands out as a trailblazer. 60 AO India | December 2023 Furthermore, her acclaimed collection, ‘Tangram Club,’ secured the runner-up position in the prestigious Redress Design Awards 2021, the world’s largest sustainable fashion design competition. Recognising that over 80 per cent of a product’s environmental impact is Pei Wen Jin provides a diverse array of price points determined by the materials employed, with The Tangram kits retailing from US $ 85 onwards. Having recently secured a patent this year, its designs are currently in the market development phase, with aspirations to make them accessible to international consumers. PRODUCTION AND MANUFACTURING Currently, the brand’s in-house team produces all its products internally. However, it is on the lookout for collaborations with various fabric suppliers or fabric brands to launch limited edition collections. In terms of lead times, the time from placing an order to shipping can range from two weeks to one month for regular consumers. However, Pei Wen Jin also aims to collaborate with various fabric material suppliers to develop a more diverse range of The Tangram modules. Such collaborative development, from design discussions to shipping, may take anywhere from three months to half-a-year. SOURCING So far, Pei Wen Jin has been sourcing waste materials locally, primarily purchasing surplus fabrics from garment factories. This approach not only supports environmental sustainability but also allows it to offer more affordable price ranges to consumers. However, “our modular concept can also be applied to luxury fabrics to create exquisite styles. Through the CDC, we had the opportunity to explore the intricate craftsmanship in India and we are very eager to collaborate with India’s local craftsmanship,” Pei explained. STRATEGIES TO CAPTURE ONLINE DEMAND Currently, the brand utilises social media, primarily Instagram, as a platform for online marketing where it shares short videos demonstrating how to easily create everyday styles. It also actively participates in international competitions and fashion weeks, showcasing The Tangram’s limitless potential, ranging from simple to intricate haute couture clothing designs. FASHION BUSINESS THE WINNERS up, was awarded funding worth Rs.5 lakh. Both the winner and runner-up will be under the mentorship of Orsola de Castro, Co-founder of Fashion Revolution and Creative Director of Estethica. The Circular Design Challenge serves as a testament to the potential of collaboration among industry players, the fashion eco-system and multilateral organisations like the United Nations. This alliance has proven to be a catalyst for transformative change, steering the fashion industry towards circularity and sustainable practices. The initiative aligns seamlessly with the principles outlined in Mission LiFE (Lifestyle for Environment) as announced by the Prime Minister of India, Narendra Modi. Since 2018, CDC champions are selected through an annual competition, judged by captains of the industry and the United Nations India teams. The jury for the final contest comprised Atul Bagai, Country Head, United Nations Environment Programme’s (UNEP) India Office; Christine Goulay, Founder, Sustainabelle Advisory Services, Ex-Head of Sustainable Innovation, Kering Group; Aditi Mayer, Sustainability Activist and Photojournalist; and Rahul Mishra, Fashion Designer. The winner, Anish Malpani, secured funding amounting to Rs.15 lakh, the prestigious CDC trophy and a six-month mentorship program. Additionally, Anish earned the opportunity for a stand-alone showcase at Lakmé Fashion Week in partnership with FDCI, scheduled for March 2024. Felipe Fiallo, the runner- Talking about Mission LiFe, Chief Guest, Honourable Minister of State for External Affairs and Culture, Meenakshi Lekhi said while addressing the audience, “Each one has a responsibility, and each one has to participate and each one needs to practice, and not just preach, be part of Mission Life. The intention is to increase positivity and work towards finding solutions, because that’s the very Indian way of finding solutions, taking the middle path between the two extremes.” December 2023 | AO India 61 DESIGNERS & LABELS FROM CLUSTERS TO COUTURE FIVE POINT FIVE’S SAREE ODYSSEY CHAMPIONING INDIA’S WEAVES In a vibrant tapestry of tradition and contemporary elegance, homegrown label Five Point Five emerges as a quintessential celebration of India’s rich textile heritage. Specialising exclusively in the resplendent world of sarees, the label’s name itself, Five Point Five, is a nod to the standard length of this iconic garment. Dedicated towards preserving and promoting India’s diverse weaving traditions, Five Point Five aims to unite the country’s skilled weavers and artisans on a single platform. Every piece in its collection is a direct reflection of the 62 AO India | December 2023 Five Point Five aims to bring the exquisite weaves of India together on one platform. All its products are directly sourced from the weavers and artisans of various clusters, across the country. skill and artistry rooted in India’s diverse cultural heritage and is sourced directly from the hands of talented artisans hailing from various clusters across India. Nitin Singla and Radhika Jain, the dynamic duo behind the inception of Five Point Five, embarked on their fashion journey in 2010 at the National Institute of Fashion Technology (NIFT) in New Delhi. While Radhika delved into the domain of Fashion Design, Nitin focused on Knitwear Design and serendipity brought them together in the same foundational batch. Their educational pursuits continued with both obtaining Master’s degrees in International Fashion Business from DESIGNERS & LABELS “In a world where many brands emphasise unique designs, often relying on techniques like appliqué, embellishment and embroidery, we’ve made a conscious choice to highlight the essential base weave that serves as the foundation of each saree. It’s the weave that anchors the artistry and we believe it should be celebrated and not obscured.” Nitin Singla Co-Founder of Five Point Five Nottingham Trent University in the United Kingdom. After completing their Master’s degrees, Nitin assumed the position of Manager - Communications and Digital at the Fashion Design Council of India (FDCI), while Radhika became a Lecturer in the Fashion Styling department at Pearl Academy. Over a period of seven to eight years, they amassed extensive industry expertise. However, it was during the second lockdown in 2022 that the seeds of a transformative idea sprouted within Nitin and he committed himself entirely to the establishment and growth of Five Point Five and Radhika too shifted her career trajectory, taking on the role of Marketing Manager with the Centre of Excellence for Khadi (CoEK) at NIFT, New Delhi. Their journey underscores the dynamic duo’s steadfast dedication and shared passion for championing the rich heritage of Indian textiles via Five Point Five. “At Five Point Five, we believe that every saree tells a story and carries a piece of India’s rich heritage. We are dedicated to providing a platform for saree enthusiasts to explore and celebrate this timeless garment in all its glory,” Nitin Singla, Co-Founder of Five Point Five told Apparel Online India in an exclusive interview. PRODUCT ASSORTMENT, PRICING AND TARGET MARKET As per Nitin, “Five Point Five is all about sarees. As the name implies, the label is predominantly dedicated to saree as its flagship product, featuring a diverse array of weaves sourced from the weaving hubs of Banaras and Kolkata that mark the beginning of our journey. These exemplify our premium range and are available for exclusive personal viewing through our innovative ‘Saris on Wheels’ concept.” Five Point Five’s website features a wide range of products with prices ranging from Rs. 3,000 to Rs. 15,000, ensuring that there’s a saree for every budget and occasion. For those seeking something truly extraordinary, the label also offers a premium range that extends up to Rs.1 lakh, making it possible for enthusiasts to discover and indulge in a saree that’s not just a piece of clothing but a work of art! “At Five Point Five, our products are thoughtfully crafted to embrace women of all ages, spanning from 18-yearolds and beyond. We believe that the saree’s grace and charm are ageless and its appeal knows no bounds,” Nitin explained, highlighting that the collection is curated to celebrate the beauty and individuality of women across generations. In terms of geographical reach, the label has managed to reach a diverse and widespread audience in a short span of December 2023 | AO India 63 DESIGNERS & LABELS Five Point Five’s website showcases a diverse product range priced from Rs.3,000 to Rs.15,000, ensuring options for every budget and occasion. For those who seek something exceptional, the label presents a premium collection reaching up to Rs. 1 lakh, inviting enthusiasts to explore sarees that transcend clothing, evolving into captivating works of art. time, both on a national and international scale. The brand has resonated with saree enthusiasts in locations such as Delhi, Maharashtra, Karnataka, Chennai, Rajasthan, Punjab as well as in countries like Qatar, USA and Australia. “This global recognition and appreciation of products highlight the universal appeal of the saree and its ability to connect 64 AO India | December 2023 people from different corners of the world. We are committed to continuing this journey of promoting the saree’s timeless allure and showcasing India’s rich textile heritage to a global audience,” Nitin added. TECHNIQUES AND DETAILS Over the course of many years dedicated to the study and practice of fashion, both Radhika and Nitin have consistently held Indian weaves and textiles in the highest regard. These elements form the narrative of the brand and underpin its core philosophy, which revolves around the restoration of the intrinsic value of weaves. Commenting on the same, Nitin said, “In a world where many brands emphasise unique designs, often relying on techniques like appliqué, embellishment and embroidery, we’ve made a conscious choice to highlight the essential base weave that serves as the foundation of each saree. It’s the weave that anchors the artistry and we believe it should be celebrated and not obscured.” Furthermore, Five Point Five aims to provide a range of sarees that showcases the beauty of the most revered and explored weaves after carefully understanding the preferences of their audience and the market demand for simplicity and understated elegance. The label aspires to present designs that are not only visually appealing but also honour the craftsmanship and artistry of these weavers. In doing so, it hopes to contribute to the revival and appreciation of these timeless textiles, ensuring that they continue to be treasured for generations to come. MANUFACTURING AND SOURCING Incepted in January 2023, Five Point Five started off with a relatively small but dedicated team, comprising 5-7 individuals, who have been privileged enough to collaborate with 20-25 skilled weavers located in and around the vibrant weaving hubs of Banaras and Kolkata. Commenting on the same, Radika said, “This partnership is at the heart of our mission and it enables us to bring the finest handcrafted sarees to our cherished customers. It not only allows us to source DESIGNERS & LABELS our products directly from the talented weavers but also aids in preserving and promoting the age-old art of weaving.” In future, the label plans to move to other states, in an effort to add more weaves under the brand umbrella. MATERIALS AND FABRICS Five Point Five’s saree collection encompasses a rich variety of fabrics, including kora, tissue, silk, tussar, chanderi, cotton and linen, offering a broad spectrum of choices to suit all saree enthusiasts’ tastes and preferences. In addition to their regular offerings, the label also takes immense pride in presenting some truly exceptional pieces that showcase heavy Banarasi weaving and intricate surface embellishments to create one-of-a-kind pieces. RANGE PLANNING AND REPLENISHMENT “Since our inception, we have proudly introduced four distinctive collections, each tailored to specific editions and aligned with the spirit of the festive season. These collections serve as a testament to our commitment to offering unique and seasonally relevant saree designs and we are excited to continue this tradition by unveiling more Five Point Five’s saree collection includes various fabrics like kora, tissue, silk, tussar, chanderi, cotton and linen, catering to diverse tastes ensuring there is something for every saree enthusiast and individual preference. captivating collections in the future,” Nitin explained. The label works on a format that allows them to restock their collections every two months, and in case of more sales, especially during festivities, even on a monthly basis. INTEGRATING SUSTAINABLE AND ETHICAL PRACTICES Sustainability is a multifaceted concept and Five Point Five is deeply rooted in this philosophy. “Our approach to sustainability encompasses various aspects. In the initial stage, we are committed to ensuring that the sarees we source are obtained at a fair price, which in turn provides artisans with the deserved value for their craft, thus sustaining their livelihoods. In addition to this, we have adopted environmentally conscious practices,” Nitin expounded. The brand’s small yet impactful initiatives extend to packaging where a focus is placed on reusing materials. Opting for alternatives such as paper and fabric instead of plastic, Five Point Five actively contributes to the reduction of plastic waste, aligning with its commitment to minimising environmental impact. LOOKING AT THE FUTURE “Our brand is rooted in a deep and unwavering commitment to saree as an absolute and comprehensive product. While we have made remarkable progress in this line, we acknowledge that there is still so much left to explore. The world of sarees is rich and diverse, offering a multitude of textiles, drapes and weaves and we are excited to embark on this journey of endless possibilities,” Nitin highlighted. He further added, “We look forward to continued exploration and innovation within the realm of the saree, ensuring that we provide our customers with the finest, handcrafted sarees that celebrate the artistry of Indian textiles and weaving traditions.” The saree is a remarkable garment with a storied past. It has evolved over time, with various techniques of making it and diverse draping styles, making it truly incredible. Each saree carries its own unique story and often evokes memories of loved ones. Whether it’s your mother’s cherished saree or the nostalgic sentiment of your grandmother, sarees are treasured heirlooms passed down through generations. For Five Point Five, sarees are more than just a piece of clothing - they are an enduring symbol of tradition and culture. “We firmly believe in the enduring allure of the saree and it will always have a place in every wardrobe. With great enthusiasm, we are curating the Five Point Five Sari Library, aiming to make the finest weaves accessible to our audience. Our journey is just beginning and we look forward to sharing this iconic garment’s rich heritage with all those who appreciate its timeless elegance,” Nitin said. Five Point Five currently retails its products via its own website www. fivepointfive.in that features the brand’s entire online collection as well as a few exclusive pieces from its premium range. Apart from that, the label can also be found at multi-designer stores such as Aza, Ogaan, Ensemble and Fuel. December 2023 | AO India 65 DESIGNERS & LABELS AOI: What unique business strategies have you implemented to stand out in the highly competitive womenswear industry? abroad, are embracing sarees for their special day, reaffirming its enduring appeal. NS: During our initial research phase, we recognised the abundance of saree brands in the market which posed a challenge for us to establish a distinctive identity. We have great confidence in Five Point Five’s ‘Sari on Wheels’ concept. This unique initiative allows us to personally showcase our premium saree collection to customers, offering them the convenience of shopping from the comfort of their homes. However, this realisation also led us to the understanding that there exists an audience that lies between mass-market saree brands and high-end designer saree labels. With this in mind, we devised a comprehensive plan that divides our approach into two main segments: online and personal shopping. For our online platform, we envisioned a clean and user-friendly shopping website that we fondly refer to as our ‘Sari Library’. This platform is designed to be an inclusive hub, where we continually add the exquisite weaves of India as we explore them. The primary objective is to bring the diverse weaves of India under one digital roof. All the products featured on our website are directly sourced from the skilled weavers and artisans located in various clusters across the country, ensuring the authenticity and quality of each saree. In addition to our online presence, we introduced the concept of ‘Sari on Wheels’ for personal shopping. This concept is inspired by our initial visit to Banaras and the nostalgic tales we’ve all heard about the days when merchants, known as pheriwalas would visit homes. These sellers offered a unique shopping experience, especially during weddings when families would come together to select their cherished sarees. We aim to recreate this personalised and intimate shopping experience. To access ‘Sari on Wheels,’ you can simply book an appointment with us on our website and we will bring our premium saree collection directly to your home. Each trunk of sarees is carefully curated and consists of exclusive handwoven pieces that we have personally hand-picked from the weavers. These sarees are one-of-a-kind and can be regarded as collectibles for saree enthusiasts, much like a collection of paintings by artists. AOI: What, according to you, is driving consumption in fashion categories in the Indian market? NS: The wedding and festive culture in India is undeniably significant and the spending potential in such occasions continues to grow with each passing year. This trend is not limited to India alone; it has also been observed in the international market. The Indian diaspora is spread across the globe and expanding, contributing to the global demand for Indian ethnicwear. The statistics speak for themselves, with approximately 3.2 million weddings taking place in India between November and December last year. Furthermore, the growing influence of Indian fashion has been evident on the global stage. Events like NMACC have drawn celebrities who enthusiastically endorse and promote the saree trend. Brides, both in India and 66 AO India | December 2023 As we gain traction and our brand continues to grow, we are well-prepared to accelerate the expansion of this innovative approach. Our aim is to cater to the evolving needs of our customers and make saree an even more accessible and celebrated choice for various occasions, be it weddings or festivals, both in India and globally. AOI: What do you have to say about the consumer’s shift in perception from quantity to quality? NS: The principle of prioritising quality over quantity is central to our brand’s identity and it has proven to be a favourable approach for Five Point Five. In a market saturated with numerous brands across different product categories, many focus on producing in large quantities. However, it is only a select few that genuinely emphasise on quality. It is the customer who has the discerning ability to identify and appreciate quality and, in doing so, they play a pivotal role in evaluating and endorsing a brand’s product. Taking into account the feedback we’ve received thus far, Five Point Five has been successful in establishing a positive reputation in the market. We are pleased to note that our commitment to quality is resonating with our customers and their reviews and feedback are invaluable in shaping our brand’s identity and ensuring that we continue to provide the level of quality that they deserve and expect. AOI: What inspired you to come up with the name Five Point Five for your label? NS: The process of naming the brand was a journey in itself. We explored numerous versions, considering typical synonyms of saree, or words that evoke the essence of draping, wearing, elegance and flawlessness. However, our overarching goal was to have a brand name that speaks for itself, requiring no additional tagline for explanation. The number ‘5’ always held a special significance for us personally. During the creative brainstorming process, recalling the length of a saree, the name ‘Five Point Five’ suddenly struck our mind and without any second thoughts, it was sealed. The name beautifully encapsulates the standard length of a saree, which is 5.5 metres. It also opens up a world of possibilities, allowing us to explore a myriad of products that can be crafted from this iconic 5.5-metre fabric. It’s a name that not only defines our brand but also symbolises our potential for creativity and innovation within the world of textiles and fashion. 67 December 2023 | AO India 67 December 2023 | AO India START-UP DECODING INDIA’S FASHION START-UP LANDSCAPE In the past decade, the Indian fashion industry witnessed a profound shift propelled by the rise of start-ups. From technological integration to innovative products and sustainable contributions, start-ups have reshaped the landscape. Global investors, recognising India’s potential, have poured over US $ 6 billion into these ventures. Despite market fluctuations, these start-ups are thriving, signalling a promising future. Notably, government bodies, celebrities and business magnates have joined forces to champion and invest in these ventures. In our upcoming January issue, Apparel Online will delve into this dynamic ecosystem, featuring valuable insights from start-ups, investors and experts. In this article, we explore the start-up scene in India, their success 68 AO India | December 2023 strategies to raise capital, their mantra for survival and many more. Stay tuned for a comprehensive Cover Story on this thriving industry! Tracing the Evolution of Fashion Start-ups The start-up wave in India, particularly in the fashion world, took root around 2006-07 with the inception of Myntra. This period also saw the formation of other major players like Flipkart and Snapdeal. The journey continued with notable milestones, including the founding of Zivame in 2011 and Nykaa, the country’s first woman-led unicorn, in 2012. Consequently, a plethora of startups, both large and medium-sized, have emerged in the fashion sector. Notable figures like Abhishek Ganguly, former MD of Puma India, have ventured into entrepreneurship, raising significant funding for their initiatives. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the fashion start-up domain encompasses 1,279 start-ups, indicating a glorious future for this industry. Diverse Categories in the Fashion Start-up Ecosystem Fashion start-ups in India exhibit diversity in scale, expertise and strengths, attracting consumers with unique value propositions. They typically fall into four main categories—technology-driven start-ups, direct-to-consumer (D2C) brands, those focusing on innovation and businessto-business (B2B) marketplaces—each experiencing substantial growth. START-UP These start-ups leverage advanced technologies like AI not only to sell products online but also to enhance customer understanding, increase sales, optimise product assortments and ensure timely and cost-effective delivery. Meesho and Myntra stand out as leading players in this sphere. India boasts thousands of D2C start-ups in the fashion segment, with a potential to grow to US $ 43.2 billion by 2025. Brands like Bombay Shirt Company, Blissclub, The Souled Store, FableStreet, FabAlley and Bewakoof.com are amongst the prominent names propelling the growth of this sector. Start-ups like XYXX, DaMENSCH, Zymrat, Bummer and Almo distinguish themselves through specific product innovations, particularly in categories like men’s innerwear and athleisure. Innovations often centre around raw materials and technological advancements, ensuring comfort and enhanced performance. For example, Bummer, an Ahmedabad-based startup which also got funding in famous reality show Shark Tank India, focuses on modal fabric with softness, funky designs, bold prints, bold design in men’s undergarments. A crucial segment within Indian fashion start-ups, B2B marketplaces connect stakeholders across the textile supply chain. ReshaMandi, Moglix, Zilingo and Fashinza are prominent names in this space, facilitating transactions beyond India’s borders. There are few other interesting start-ups for textiles like Textile Genesis (acquired by Lectra) which is a pioneering traceability platform custom-built for the textile ecosystem. C2C fashion recommerce platform CoutLoot is also a well-recognised start-up. Attracting a Spectrum of Investors The Indian fashion start-up sector has successfully attracted a spectrum of investors, ranging from global funding giants to individual investors with limited funds. Top start-ups like Meesho and Myntra have secured investments from renowned entities such as SoftBank, Peak XV, Fidelity Investments, Prosus & Naspers and Meta, amongst others. Investors like Eight Roads Ventures, Elevation Capital, Sixth Sense Ventures and Matrix Partners have also played a significant role in supporting various fashion start-ups, including D2C brands. In addition to financial backing, the sector has witnessed participation from individuals closely associated with the fashion industry, such as Harmeet Bajaj (Founding Member of NIFT); Vineet Gautam, CEO of Bestseller; former Myntra CEO Amar Nagaram; fashion influencer Masoom Minawala. Celebrities like Indian cricketer KL Rahul and actress Sara Ali Khan have also invested in fashion start-ups like XYXX and The Souled Store respectively. These investors have a tilt towards investing in tech-based and innovative product start-ups due to their technological edge and unique product differentiation. Start-ups primarily allocate their funding towards cultivating an omnichannel strategy, research and development, product enhancement and team expansion. The reality show Shark Tank India has proven instrumental in creating awareness for emerging start-ups, even if they didn’t secure funding from the show. The exposure has positively impacted sales for many, showcasing the significance of such platforms in the start-up ecosystem. Continuous Trend of Acquisitions The start-up landscape in India, particularly in fashion, has seen a continuous trend of acquisitions. Notable instances include Myntra’s acquisition by Flipkart in 2014. Reliance, one of India’s top corporate entities, has acquired established start-ups such as Clovia and Zivame, both renowned for lingerie and secured a 51 per cent stake in Ed-aMamma, a kidswear and maternitywear brand founded by actress Alia Bhatt. The success of D2C brands segment attracted fashion and business conglomerate Aditya Birla Group and it started TMRW House of Brands that has invested heavily in D2C brands like Bewakoof.com (Rs. 200 crore), The Indian Garage Co (Rs.155 crore), Berrylush, Juneberry, Natilene, Nauti Nati and Nobero, to mention a few. In a recent development, Styched acquired Flatheads, a D2C sneaker startup and Zymrat. In summary, the Indian fashion start-up industry reflects dynamism marked by exceptional innovations, diverse categories and a wide spectrum of investors. December 2023 | AO India 69 START-UP//NEWS Groyyo’s B2B trading business in trouble as investors contemplate closure Mumbai-based start-up, Groyyo, is facing challenges in its B2B trading operations, with investors Tiger Global and Alpha Wave Global engaging auditing firm Deloitte to assess the viability of the company’s trading business. It is reportedly being said that the trading business of Groyyo may be discontinued within the next three months. Groyyo is also confronted with the task of recovering a substantial amount of outstanding receivables issued over the course of this year. This aspect is considered crucial for both the company and its investors as they contemplate the closure of this business division. Over the past year, the twoyear-old start-up, valued at approximately US $ 155 million, significantly expanded its trading business, providing yarn and other raw materials to small manufacturers. This expansion reportedly resulted in a substantial increase in overall gross sales, but it also incurred notable negative margins. While the business grew substantially, the investors believe that this isn’t the most efficient use of capital for a company of this nature. Consequently, they have enlisted the services of Deloitte to oversee the winding down of this particular business division, as per sources. AJIO launches AJIOGRAM to empower D2C fashion brands AJIO – a leading Indian fashion e-tailer – has launched AJIOGRAM, a D2C-focused content-driven interactive e-commerce platform. With this initiative, the e-tailer aims to empower Indian fashion startups that are challenging the norms with their vision and innovative products. 70 AO India | December 2023 AJIOGRAM can be easily accessed by switching stores within the AJIO app. It aims to onboard 200 exclusive homegrown D2C brands by next year to offer customers a wide range of options from streetwear to fast, artisanal, minimalistic, quiet luxury, slow and sustainable fashion. Vineeth Nair, CEO, AJIO, remarked, “The emerging new generation of shoppers seek more than just a product from the brand; they seek a vision and a purpose. Over the past few years, the Indian D2C revolution has produced numerous brands that have aced innovative and mindful fashion. AJIOGRAM will bring these brands under one umbrella, helping them scale and accelerate their growth while leveraging AJIO’s seamless shopping experience. With this initiative, we aim to empower the next 100 fashion startups to emerge from India.” AJIOGRAM caters to shoppers who seek fashion aligning with their personality and interests, as well as purpose-driven niche brands with limited edition items. Top brands available exclusively on AJIOGRAM include Urban Monkey, Supervek, Quirksmith, KRÁ Life, Creatures of Habit, Cecil, Truser, Fancypants, MIDNIGHT ANGELS BY PC, Monks of Method, Crafts and Glory among others. AJIO will assist and offer dedicated support to the D2C brands to scale and achieve their strategic revenue growth. The platform offers a unique brand-centric approach wherein, unlike the status quo, brands get higher visibility with an immersive discovery experience to showcase their range of styles. START-UP//NEWS Showroom B2B raises US $ 6.5 million in pre-series A round (L to R): Shubham Gupta (CFO & CSO), Abhishek Dua (CEO), Showroom B2B Showroom B2B, the Indian platform for unbranded clothing, announced a preSeries A funding round, raising US $ 6.5 million. The round was led by Jungle Ventures and featured new investors like Accion Venture Lab, Saison Capital and ICMG Partners. Notably, previous supporters Strive, Gemba Capital, Titan Capital and debt partners Alteria Capital and Stride Ventures continued their backing. Showroom B2B had previously secured US $ 1.35 million in seed funding earlier this year and an angel round of US $ 180,000 in 2021. The newly acquired funds will fuel the expansion of the company’s phygital distribution model and the establishment of experience stores in India’s Tier-2 and Tier-3 markets. Additionally, Showroom B2B will enhance its private labelling capabilities, making premium and affordable fashion accessible to retailers in smaller cities. Abhishek Dua, Co-founder and CEO of Showroom B2B, shared their plans to fortify their supplier base for private labels, particularly sourced from Bangladesh, highlighting the significant margin gains compared to the regular marketplace. Founded in 2020 by Abhishek Dua and Shubham Gupta, Showroom B2B initially focused on ecofriendly furniture products but has since evolved into an asset-light business model. It connects retailers with an extensive inventory of unbranded garments from local sources. Showroom B2B has partnered with over 500 garment manufacturers and 3,000 retailers, offering an app-based ordering system with doorstep deliveries. The company currently operates three experience stores across different regions in the country, facilitating fashion retailers in inspecting manufacturing samples before placing bulk orders. Showroom B2B plans to expand its network of experience centres by November 2023. December 2023 | AO India 71 TRADE STATISTICS US APPAREL IMPORTS (January-September 2023) Apparel imports fall in September ’23 over August ’23! import values at US $ 5.65 billion. This decline is attributed to the lingering economic slowdown in the western hemisphere, leading consumers to exercise caution and reduce investments in clothing products. In September 2023, the value of apparel imports to the USA amounted to US $ 7.37 billion, reflecting a 4.41% decrease compared to the previous month’s figure of US $ 7.71 billion. Throughout the year 2023, apparel imports have consistently exhibited sluggish growth, with April recording the lowest Global Apparel Imports by the US (January-September 2023) Change in UVR 22.81% 3.14% (Average UVR in the review period was US $ 3.22 as against US $ 3.14 in the same period last year) Percentage change in top 3 product categories imported by USA T-SHIRTS TROUSERS 29.71% Cotton 16.64% Wool 23.11% MMF Silk & Veg Volume (-33.19%) Volume (-23.79%) Silk & Veg 6.35% Value (-23.72%) Value (-27.59%) Value (-17.53%) Percentage change in India’s top product category export (T-Shirts) to USA Oct. 22 Nov. 22 Dec. 22 Jan. 23 Feb. 23 Mar. 23 Apr. 23 May 23 Jun. 23 Jul. 23 Aug. 23 Sep. 22 US $ 3.14 0 Value-wise share to USA by top 5 apparel exporters 20.97% 1 2 8.14 6.34 6.60 7.27 5.94 6.26 5.65 6.40 6.52 7.70 7.71 7.37 3 4 5 6 7 8 (Value in US billion $) 19.09% Volume falls 21.52% 9.50% 5.96% 5.43% (The information has been extracted from US custom site and further analysed.) 72 AO India | December 2023 9 10 India’s unit prices of apparels shipped to the USA in the 9-month period of 2023 amount to US $ 3.78 China 18.20% Vietnam Value falls 0.42% Month-wise USA apparel import trend US $ 3.22 Jan.-Sep. 2022 21.43% MMF LADIES DRESSES Volume (-23.92%) 2.91% Wool UVR change in apparel imported by USA (2-year comparison) Jan.-Sep. 2023 26.37% Cotton Change in Value Change in Value 25.16% Change in Quantity Change in Quantity Bangladesh India Indonesia US $ 3.78 TRADE STATISTICS Total apparel exports to the US by 5 major manufacturing destinations (January-September 2023) Value-wise export to USA Volume-wise export to USA ( Qty in mn SME) -23.90% -26.51% -29.37% ( Value in US mn $ ) 6772.81 China 12752.79 2940.42 Vietnam 11068.83 1764.94 Bangladesh 5778.19 959.43 India 3622.38 787.23 Indonesia 3302.06 -22.56% -29.33% -28.13% -24.13% -23.33% -21.91% -25.61% Overall apparel imported by USA was worth US $ 60.82 billion in the said period with 22.81% decrease (Y-o-Y) Item-wise quantity increase/decrease in apparel imports by the US: Jan.-Sep. 2023 (Qty in doz, legwear in dpr, babieswear in kg) Exports to USA Total Imports by USA China APPAREL TYPE India Bangladesh Vietnam Indonesia 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change Babies Wear 11,02,84,984 7,13,79,287 -35.28 3,78,31,900 2,43,32,734 -35.68 1,41,40,837 86,33,405 -38.95 1,34,23,376 83,91,713 -37.48 1,34,67,518 97,55,698 -27.56 23,16,342 17,04,673 -26.41 Foundation Garments 4,83,70,600 3,15,44,328 -34.79 2,23,49,481 1,44,21,583 -35.47 6,79,901 4,19,698 -38.27 42,50,475 28,81,212 -32.21 70,63,855 46,97,945 -33.49 49,09,952 30,67,635 -37.52 Jackets & Blazers 4,18,24,476 3,47,41,591 -16.93 1,73,27,902 1,41,67,309 -18.24 8,01,542 6,56,812 -18.06 39,54,462 33,35,419 -15.65 95,01,160 81,47,340 -14.25 18,41,360 15,07,015 -18.16 3,45,80,276 2,73,78,275 -20.83 1,05,99,496 81,35,536 -23.25 64,06,151 51,17,376 31,74,286 23,31,881 54,74,515 -17.11 37,05,746 29,49,887 -20.40 Ladies Dresses 4,86,12,883 3,70,46,342 -23.79 1,94,45,449 1,48,93,682 -23.41 64,75,765 51,54,550 -20.40 22,56,864 16,48,869 -26.94 95,51,346 73,56,329 -22.98 35,92,323 25,95,979 -27.74 Ladies Skirts Ladies Blouses 1,17,43,215 95,73,674 -18.47 49,36,206 37,87,585 -23.27 9,16,247 7,44,421 -18.75 11,26,028 6,99,274 -37.90 21,63,282 20,36,463 -5.86 7,73,309 6,53,927 -15.44 19.87 Legwear -20.12 -26.54 66,04,584 30,76,77,820 25,03,27,258 -18.64 22,01,56,213 16,85,90,099 -23.42 25,11,116 24,23,615 -3.48 1,94,380 1,27,268 -34.53 84,94,815 1,02,36,567 20.50 5,05,589 6,06,042 Men's Shirts 2,81,00,640 2,53,00,589 -9.96 42,27,642 34,56,845 -18.23 32,77,450 31,04,205 -5.29 87,00,557 82,14,699 -5.58 40,84,680 33,31,865 -18.43 15,43,300 15,06,300 -2.40 Nightwear 6,25,72,851 3,32,33,582 -46.89 3,09,40,377 82,19,516 -73.43 39,16,289 31,16,818 -20.41 30,94,695 13,14,051 -57.54 95,40,307 66,37,090 -30.43 20,74,031 13,01,851 -37.23 82,58,195 84,47,919 2.30 47,99,983 48,86,851 1.81 3,20,146 2,57,877 -19.45 2,93,634 3,25,170 10.74 8,93,510 8,75,012 -2.07 2,38,164 2,18,228 -8.37 Sweaters 1,40,34,340 1,25,53,889 -10.55 99,87,838 79,10,991 -20.79 67,280 72,976 8.47 10,51,075 12,23,641 16.42 6,26,911 6,90,479 10.14 5,70,729 5,71,928 0.21 Trousers 27,66,63,496 18,48,27,112 -33.19 5,40,27,205 3,76,62,824 -30.29 73,56,662 47,68,404 -35.18 5,26,62,420 3,44,28,999 -34.62 5,37,32,056 3,57,22,892 -33.52 1,86,15,819 1,19,80,617 -35.64 T-Shirts 51,03,80,352 38,83,18,812 -23.92 6,93,08,115 5,33,80,896 -22.98 2,60,44,755 2,04,38,930 -21.52 4,03,55,204 2,63,43,747 -34.72 6,71,69,677 4,79,08,252 -28.68 2,35,89,968 1,66,42,048 -29.45 Undergarments 22,36,36,543 16,50,94,342 -26.18 4,55,61,395 3,52,93,098 -22.54 1,65,45,737 1,28,08,150 -22.59 2,79,64,401 1,97,86,228 -29.24 4,94,79,183 3,71,22,083 -24.97 24,12,561 20,85,709 -13.55 Suits / Ensembles Item-wise value increase/decrease in apparel imports by the US: Jan.-Sep.. 2023 (Value in US mn $) Exports to USA Total Imports by USA China APPAREL TYPE India Bangladesh Vietnam Indonesia 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change 2022 2023 % Change Babies Wear 2,154.88 1,403.01 -34.89 530.48 328.99 -37.98 363.86 223.71 -38.52 229.43 160.58 -30.01 325.30 224.68 -30.93 70.97 54.48 -23.23 Foundation Garments 2,340.26 1,526.27 -34.78 683.72 387.57 -43.31 46.80 24.17 -48.35 122.13 85.19 -30.25 527.26 366.09 -30.57 287.09 190.74 -33.56 Jackets & Blazers 6,245.41 5,460.09 -12.57 1996.41 1540.85 -22.82 167.07 130.28 -22.02 500.96 471.36 -5.91 1746.13 1542.35 -11.67 309.41 270.25 -12.66 Ladies Blouses 2,374.43 2,005.96 -15.52 529.00 416.85 -21.20 553.78 458.79 -17.15 172.16 146.99 -14.62 391.18 334.25 -14.56 292.35 241.66 -17.34 Ladies Dresses 4,303.20 3,548.72 -17.53 1406.60 1083.68 -22.96 745.92 630.54 -15.47 117.67 84.99 -27.77 712.64 574.78 -19.34 324.81 247.84 -23.70 759.46 699.06 -7.95 222.23 189.51 -14.72 76.69 65.20 -14.99 51.75 38.00 -26.58 156.64 149.14 -4.79 56.99 43.22 -24.17 Legwear 1,990.89 1,541.80 -22.56 1184.12 871.21 -26.43 46.97 16.84 -64.14 0.56 0.22 -61.06 65.92 63.89 -3.09 5.29 4.92 Men's Shirts 2,430.69 2,328.07 -4.22 262.10 211.12 -19.45 260.71 259.56 -0.44 564.39 546.95 -3.09 417.82 358.31 -14.24 148.20 152.79 3.10 Nightwear 2,780.76 1,317.15 -52.63 1147.93 304.36 -73.49 191.79 137.87 -28.11 127.86 65.46 -48.80 554.97 351.36 -36.69 122.49 85.14 -30.50 Ladies Skirts Suits / Ensembles 917.15 2.86 177.67 -16.28 45.28 7.14 Sweaters 1,400.93 1,252.43 -10.60 894.19 677.54 -24.23 7.45 6.12 -17.91 65.85 79.44 20.63 74.77 72.19 -3.45 43.47 43.23 -0.54 Trousers 18,703.99 13,543.05 -27.59 2388.18 1689.76 -29.24 498.34 347.84 -30.20 3,300.31 2,358.01 -28.55 3904.33 2747.49 -29.63 1138.71 807.02 -29.13 T-Shirts 21,580.89 16,462.33 -23.72 2702.33 1891.28 -30.01 1098.45 888.81 -19.09 1,261.88 883.32 -30.00 3591.84 2589.83 -27.90 1159.24 814.05 -29.78 3,628.43 2,646.66 -27.06 726.52 513.19 -29.36 346.42 243.97 -29.57 354.77 281.91 -20.54 754.40 540.49 -28.36 74.01 53.82 -27.28 Undergarments 891.63 212.22 42.26 26.16 29.91 14.34 119.58 125.31 4.79 53.50 47.25 -7.05 December 2023 | AO India -11.68 73 TRADE STATISTICS Canada Apparel Imports (Jan.-Sep. ’23) Canada’s apparel imports tumble again in September after a surge in August! During September ’23, Canada’s apparel imports declined by 13.61 per cent valuing US $ 979 million as compared to US $ 1.14 billion a month before. The fall was recorded not just on monthly basis but on yearly basis too as imports plummeted by a substantial 29.13 per cent on Y-o-Y basis. A week demand is believed to be the main reason of this downfall. Among top seven exporters to Canada, only Indonesia managed to see monthly increase in its apparel shipments to Canada, whereas all other countries including India fell drastically. APPAREL ALL ABOUT ONLINE FA S H I O N BUSINESS 9.91% The knitted apparel reported decline of 17.17% during the review period, whereas the woven segment fell by 0.17% in value terms. 8.85% Knitted garment exports from Vietnam to Canada dropped by 18.61%, while export of woven garments increased by 2.79%. 12.54% Bangladesh’s shipment to Canada declined by 21.73% in knitted segment, while woven garment exports decreased by 3.26%. 10.42% The value of Indian knitted apparel exports declined by 21.21%; while export value of woven segment grew by 2.17% on Y-o-Y basis. Canada Imports Vietnam Exports Our Editions B’Desh Exports AO INDIA AO VIETNAM AO BANGLADESH India Exports Japan Apparel Imports (Jan.-Sep. ’23) Japan continues to see monthly growth in its apparel imports In the 9-month period of 2023, Japan witnessed a significant surge in its apparel imports, reaching a remarkable total of US $ 16.66 billion, indicating an increase of 4.08 per cent. Notably, in September 2023, the value of Japan’s apparel imports spiked to US $ 2.63 billion, marking 17.41 per cent month-on-month growth. Despite an increase in valuewise imports, Japan failed to see any growth in its weight-wise apparel imports during January to September 2023 period. 4.08% Japanese apparel imports decreased by 4.25% in weight, while values increased by 4.08% in the review period. 13.28% Vietnam got a boost of 0.17% in weight-wise exports to Japan, while values increased by 13.28% on Y-o-Y basis. 1.95% Bangladesh’s garment exports to Japan saw degrowth of 3.84% in weight-wise exports and values increased by 1.95%. 8.90% Indian apparel exports to the Japan declined by 1.80% in weights and increased by 8.90% in values. Japan Imports SUBSCRIBE NOW Please call Customer Service at +91 98913 74725, 90509 90602 or email at contact@apparelresources.com www.apparelresources.com Vietnam Exports B’Desh Exports India Exports 74 AO India | December 2023 December 2023 | AO India 75 Ask About Zero Wasted Chemical Applications A Brand by Navis TubeTex World Headquarters 76 AO India | December 2023 113 Woodside Drive Lexington, North Carolina 27292 Tel: 336-956-6444 www.navistubetex.com