Evolving Market

In hindsight of 2016 and emergence of 2017- Retail is a constant evolving market.

According to analysis, 2016 can be can be summarized in three words: uncertain, changing, and
challenging. With emerging Digital retail markets fashion has evolved exponentially. Rising from
its modest roots when fashion retail was all between 4 walls and a roof to now its
manufacturing and delivery through robotic technologies, fashion has come a long way. Fashion
quite profoundly evolved from rags to riches but has it reached its limits?
According to 2016 BoF-McKinsey Global Fashion Survey. This has been the toughest year for
global fashion industry. Terrorist attacks in France, the Brexit vote in the UK, and the volatility of the
Chinese stock market have created shocks to the global economy, which has not been as volatile as
ever.

The Consumers
Consumer buying patterns also evolving, demanding more for less influenced by emerging competition
of digital fashion retail market and emerging fast fashion brands, There is new styles every month. This
is causing a radical change in Fashion retail overhauling the consumer buying patterns entirely. With
Brands striving for innovation at every step by providing consumers sustainability, minimizing waste and
going green for their fundamental product designs. The Global Fashion Market is changing from within

The Restructuring

However there is restructuring in works as China, the European Union and India remained the top three
exporters of textiles in 2015. Altogether, they accounted for 66.4 percent of world exports. The United
States remained the fourth top textile exporter in 2015. The top ten exporters all experienced a decline
in the value of their exports in 2015, with the highest declines seen in the European Union (-14 percent)
and Turkey (-13 percent). The smallest decline was recorded in China (-2 percent). Top three exporters
of apparel include China, the European Union and Bangladesh. Altogether, they accounted for 70.3
percent of world exports. Among the top ten exporters of apparel, increases in export values were
recorded by Vietnam (+10 percent), Cambodia(+8 percent), Bangladesh (+6 percent) and India (+2
percent). The other major exporters saw stagnation in their export values (United States) or recorded a
decline (all other top ten economies).

Global Garment Industry

The Global Textile Industry, particularly the Apparel Industry has seen remarkable changes in
the past few years. The Garment Manufacturing Industry and the Garment Companies in
developed countries are now always on a lookout for cheap source of garment production. The
days are gone when textile garment industry was concentrated in the consumption hubs of US,
EU and other developed countries of the world. The clothing wholesale supply is increasing
worldwide in all the sectors of the industry, whether it be mens clothing, womens clothing, kids
wear or infant wear. The elimination of global export quotas has led to a shift towards low cost
countries having strong and established Clothing Industry especially the Asian countries. (Ficci
2016)

Global Market

According to Dr. Sheng Lu The global apparel and footwear industry enjoys a 5 percent value growth in
2015. Asia Pacific remains the worlds largest apparel and footwear market, with market value
increased by $30 billion USD in 2015. In particular, the United States, China and India contributed more
than half the absolute increased value with this in mind comparing to the latest stats.

According to the newly released World Trade Statistical Review 2017 by the World Trade Organization
(WTO), the current dollar value of world textiles (SITC 65) and apparel (SITC 84) exports totaled $284
billion and $443 billion respectively in 2016, marginally decreased by 2.3 percent and 0.4 percent
respectively from a year earlier. This is the second year in a roll since 2015 that the value of world
textiles and apparel exports grew negatively. But despite the stagnant growth the fashion industry is
booming into a world of innovation it is still striving and there is still hope for recovery, the global
apparel market is valued at 3 trillion dollars, 3,000 billion, and accounts for 2 percent of the world's
Gross Domestic Product (GDP).

The global textiles and garments industry forms an important component of world trade flows,
particularly for some developing and least developed countries where clothing accounts for a
large proportion of total exports. About 60 million to 75 million people are employed in the
textile, clothing and footwear sector worldwide (2014). To compare: in 2000 only 20 million
people were employed in the industry. (Lina Stotz & Gillian Kane)

The global apparel market size is expected to reach US$ 2.6 trillion in 2025 growing by a
projected rate of 4%. The major growth drivers of the global apparel market will be the
developing economies, mainly China & India, both growing in double digits. China will become
the biggest apparel market adding more than US$ 378 bn. in market size by 2025 while India
will be the second most attractive apparel market adding around US$ 121 bn. by 2025. A large &
growing domestic demand coupled with increasing spending power of people in these two
countries will result in the combined addition of around US$ 500 bn. in the global apparel
market size by 2025. The combined apparel market size of China and India i.e. US$ 795 bn. is
expected to exceed combined market size of EU and USA i.e. US$ 775 bn, by 2025. (Euro stat)

The global textile and apparel trade stood at US$ 820 bn. in 2014 growing at a CAGR of 5.6 %
over the last decade. Apparel categories had a larger share of 56% while textiles categories had
the remaining share of 44% in the overall trade.
The global textile and apparel trade is expected to reach at a level of US$ 1,600 bn. in 2025
growing by a CAGR of 6.3% over the next decade.
With EU & USA being the largest markets for textile and apparel with a share of 36% and 14%
respectively.
On the supply side, China is the largest supplier of textile and apparel in the world with a
dominating share of 40%. It is distantly followed by countries like India, Italy, and Germany etc.
each with an approximate share of 5% in the global textile and apparel exports. (Ibisworld, 2014)

Garment industry has seen a noteworthy move over the recent decades regarding its
manufacturing bases. Till the 1980s, generation of material and clothing was focused in USA and
EU however manufacturing of garments has moved significantly to Asian nations

Summarizing This very restructuring in light of recent events begs the question whats going to
happen? and through further analysis will bring to light the answer. With the Global fashion industry
stabilizing and adapting timely it will be quite fascinating to see scales tip from one end to another till it
finds equilibrium in coming years

Indian Garment Industry

T he Indian Textiles Industry has an overwhelming presence in the economic life of the
country and is one of the leading textile industries in the world. Though was predominantly
unorganized industry even a few years back, but the scenario started changing after the economic
liberalization of Indian economy in 1991. The opening up of economy gave the much-needed
thrust to the Indian textile industry, which has now successfully become one of the largest in the
world. (Dr. Sudha Dhingra, 2012)

Indian textile industry largely depends upon the textile manufacturing and export. It also plays a
major role in the economy of the country. India earns about 27% of its total foreign exchange
through textile exports. Further, the textile industry of India also contributes nearly 14% of the
total industrial production of the country. It also contributes around 3% to the GDP of the
country. Indian textile industry is also the largest in the country in terms of employment
generation. It not only generates jobs in its own industry, but also opens up scope for the other
ancillary sectors. Apart from providing one of the basic necessities of life, the industry also plays
a vital role through its contribution to industrial output, employment generation, and the export
earnings of the country. (Dr. Sudha Dhingra, 2012)

India has one of the finest textile traditions in the world with respect to dyeing, weaving and
surface embellishment. The richness of its crafts is evident in the excavated findings of Harappa
and Mohenjo-Daro in the Indus Valley, which can be dated back to 5000 years. Indian textile
history has been layered and enriched by nuances of migratory weavers, foreign invasions and
religious influences. The wide range of design and weave, specific to the region of their origin,
are masterpieces enhanced by the skills of the particular craftsmen and their tradition. The crafts
thrived on the exploration and ingenuity of the craftspeople and their knowledge of locally
available material. (CBSE, Academic)

Indias expertise in vegetable dye dates back to ancient times, as the remnants of madder-dyed
fabrics, printed in Gujarat were found in early Egyptian excavations in Fostat. The Indian dyers
expertise was known worldwide, for their mastery of the craft and their skill was unparalleled in
coloring textiles using natural material. Apart from some literary sources, the visual evidence of
expertise in dyeing is witnessed in the 6th or 7th century dated fresco paintings of Ajanta Caves
of Aurangabad in Maharashtra. The exquisite and intricate resist dyed ikats and tie - dyed fabrics
in the attires of people, as painted in the frescoes are evident of proficient dyeing skills of
craftsmen.
Each state of India displays a variety of designs, producing distinct textiles and crafts indigenous
to the region. Thus traditional Indian textiles can be classified according to the region of
production. Another classification of Indian textiles can be based on the technique of production.
(CBSE, Academic)