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• Blog,Fashion
• Jun 24, 2020

Textile & Fashion Industry: The Business Perspective

We have read and heard a lot of posts talking about the paradigm shift the consumer have taken over past couple of years due to the e-commerce boost. But, let’s give a thought about the entire industry keeping businesses at the center of it. Give a thought about why and how have businesses changed and evolved in the last two years.

We have bought to you the top 5 shifts that we observed in the apparel industry for the past two years.

• Foreign direct investment (FDI) in textile sector increased to US$ 2092 million in FY16 from US$ 1,424.9 million in FY14. With the influx of FDI, the Indian manufacturers are investing in automation and other high end technologies to increase their production. Increase in availability of raw materials for fabric is also becoming a major driver for apparel manufacturing that has a direct impact on exports.
• A couple of years ago, 65 percent of the garments exported to US and Europe was from China. Now China is facing stiff competition from India in this sector. India has taken over 25-30 percent of the garment and textile export market, bringing China’s exports down to 40 percent. This is also happening because China is struggling with high manufacturing costs, power shortages and stagnant growth of the economy. Even Bangladesh has its own share of labor safety issues. India with its advantage of manufacturing costs and better labor conditions and high production capacity with abundant raw material is surging ahead of the competition.
• Indian textiles and innovating fabrics that are being produced locally at lower costs by employing rural artisans. This helps to keep the production costs lower and the designs and the aesthetics of the fabric and design very Indian. It offers the dual advantage of providing rural employment and falling back on our own resources. This also helped in giving a huge impetus to the growth of the industry.
• India’s high profile fashion shows like Lakme Fashion Week and Amazon India Fashion Week have been working around the theme of Make in India. They have been reviving Indian fabrics and crafts, contemporizing them and offering a global stage to these creative modern attires. The presentation by designer Sanjay Garg at the recent Amazon India Fashion Week revived an ancient Indian fabric called Mashru. Using innovation the designer made this long lost, heavy Indian fabric, lighter and wearable. Such designers who can merge technology with aesthetics, are key to India’s future of garment manufacturing.
• The e-commerce shopping is on a rise in India. They are providing international platforms for the domestic suppliers, to showcase their products to the world. International consumers looking for premium designer brands from India are also meeting their requirements through such websites. This area has a huge potential which can revolutionize Indian customer service in terms of returns and exchanges and hold a new promise for the Indian apparel Industry.

Are there any other major shifts that you have observed? Do let us know!