T E X T I L E I N D U S T R Y

5 Mega Trends That Will Influence Future Strategies

SHIFTSHIFT

P

THE BIG

CONTENTS

Introduction

Fibre Shift

Manufacturing Shift

Technology Shift

Consumption Shift

Environmental Shift

Implication of These Shifts on Future Strategies of Textile & Apparel Companies

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Over the years, the global textile & apparel

industry has been influenced by several

disruptive changes that have shaped the

textile landscape to what it is today. The

textile & apparel industry has continued to

evolve driven by changes in consumption

patterns, sourcing and manufacturing

trends, technology changes, and overall

market demand-supply dynamics. This

report highlights some of the major trends

that will impact the industry in the future

and will have a far reaching impact on the

business strategies of textile & apparel

companies globally. It takes a look at various

components of the textile & apparel value

chain- fibre, manufacturing, technology,

consumption, and sustainability to

understand the pattern of changes within

them and their influence. Through our

analysis, we have arrived at 5 major trends

that will mark the big shift in the textile

industry.

INTRODUCTION

1

P

FIBRE SHIFT

Polyester will continue to

drive global fibre market

MANUFACTURINGSHIFT

Manufacturing landscape

will be influenced by 3Cs -

Cost, Competitiveness and

Closeness

TECHNOLOGYSHIFT

Adopting Industry 4.0 will

be the key for achieving

manufacturing and supply

chain excellence

CONSUMPTIONSHIFT

Fashion consumption will

continue to evolve driven

by technology and

innovation

ENVIRONMENTALSHIFT

Sustainability will be a

strong pillar of future

growth

Global fibre consumption has increased

from 29 million tons in 1980 to 97 million

tons in 2018, and the growing market has

brought with it a remarkable change in

the consumption patterns. The industry

has been witnessing a gradual shift from

cotton to synthetic fibres over the past

few decades. More than half of the global

textile & apparel product pie comprises of

items made out of synthetic fibre and its

use is growing faster than cotton textiles

and apparel. Polyester fibre

consumption, especially, has been

steadily gaining momentum with the

highest CAGR of 6% from 1980 to 2018

amongst other fibre categories. Polyester

has a dominant share of fibre

consumption globally and continues to

grow.

1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018

10

20

30

40

50

60

70

80

90

100

17% 18% 23% 28%37% 42%

49% 54% 54% 54% 55%

48% 47%48%

44%38%

37%33% 28% 28% 29% 29%10% 9%

8% 5% 4%5%

5% 6% 5% 5% 5%24% 26% 23% 23% 21% 17% 13% 12% 12% 12% 11%

1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018

COTTON

2%POLYESTER

6%VISCOSE

1%OTHERS

1%TOTAL

3%

Value CAGR (1980 - 2018)

Cotton has been used to create clothing

since millennia because of the perfect

combination of its inherent lightness,

softness, and breathability. However,

cotton has some inherent limitations which

have led to the decline in its consumption

share.

COTTON HAS LIMITATIONS FOR FUTURE GROWTH

1. Inability to Meet Growing Fibre Demand

• Per capita fibre consumption for

apparel use grew at a CAGR of 4.4%

between 1960 & 2018 while cotton

production could only grow by 2.0%

during the same period, thus unable

to match the demand.

• Further, there is a limitation in land

area for cotton cultivation for future

use.

PER CAPITA FIBRE CONSUMPTION(APPAREL USE)

GROWTH IN COTTON

PRODUCTION

+4.4%

1960

2018

+2.0%

1960

2018

2

Figure 1: Global Fibre Consumption (Million Tons)

Source: PCI and Wazir Analysis

Source: PCI and Wazir Analysis

Figure 2: Category Wise-Share

5 6 9 12 19

27 37

49 50 51 53

14 16 19 19

20

24

25

25 26 27 28

3 3 3 2

2

3

4

5 5 5 5

7 9

9 10

11

11

10

11 11 11 11

29 34

40 43

52

65

76

90 92 94 97

Figure 3: Growth In Per Capita Fibre Consumption Vs. Cotton Production

Source: World Bank, UN Population Database, ICAC, Wazir Analysis

P

FIBRE SHIFT

POLYESTER WILL CONTINUETO DRIVE GLOBAL FIBRE MARKET

3. Limitation in End-Use and Product Innovation

Chemical and physical properties of

cotton made its application area

limited and unsuitable for several

growing product categories like

technical textiles, sports textiles etc.

2. Environmental Concerns

Cotton production requires a large

amount of water and pesticides

which is detrimental to the

environment. It is estimated that

around 20,000 litres of water is

needed to produce 1kg of cotton.

Over the years, the supply gap left by

cotton has been suitably filled by

synthetic fibres especially polyester.

Polyester’s share in world’s fibre

consumption grew from 17% in 1980

to a dominant 55% by 2018.

The following properties of polyester

fibre make it the most consumed fibre

globally:

FUTURE BELONGS TO POLYESTER

20,000 litres of water is neededto produce 1kg of cotton.

3

Source: PCI and Wazir Analysis

Figure 4: Global Fibre Consumption Share Projected (Million. Tons)

Going forward, polyester will continue to be

the dominant fibre and is expected to maintain

the largest share of fibre consumption. It is

expected that by 2030, polyester fibre

consumption will grow by another 25 million

tons to reach a level of 78 million tons annually

and will form a share of 60% of global fibre

consumption of 130 million tons.

• Scalable and economical to produce

• Suitable for a large variety of end

uses due to enhanced fibre

characteristics

• Continuously evolving in terms of

fibre properties

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018 2020 2030

Polyester Cotton Viscose Others

97 130

Since its origin, there have been many

developments in the field of polyester to

enhance its inherent properties, to make it

more eco-friendly and even to add some

extra properties in its structure which

together have made polyester suitable for a

large array of applications. Following are

some of the major developments in

polyester:

Further developments in improving

properties of polyester will help in

increasing its usage in more textile & apparel

categories in future. The growth of polyester

will further drive growth in the downstream

Continuous improvement in polyester fibre properties will further drive future market demand.

4

DEVELOPMENTS FEATURES APPLICATIONAREAS

Hollow FibreLight weight,

superior resilience,

thermoregulatory

Premium pillows,

cushions, quilts

Micro FibreFast dying, ultra soft

touch

Sweater, garments,

business suit,

home textiles

Eco Friendly Flame

Retardant FibreSlow combustion and

self-extinguishment

Home textiles,

kids wear,

work wear

UV Retardant Fibre Cooling effect in

heating environment

Casual wear,

sportswear,

swimwear, uniform

Anti-Microbial Fibre

Ecofriendly and

permanent

antimicrobial effect

Home textiles,

kids wear, inner wear,

gloves, towels

value chain of fabric & apparel. Hence, it is

important for textile & apparel companies to

increase their focus on polyester-based

products.

5

Textile & apparel manufacturing has always

been associated with low-cost

manufacturing. Over the years, high-cost

destinations such as USA, European countries

(incl. Italy, Germany, Belgium, France, and

UK), Turkey, Japan, and South Korea have

dropped their combined share in the global

textile & apparel trade from 45% (1995) to

22% (2018). While low-cost destinations such

as China, India, Bangladesh and Vietnam have

increased their share from 26% to 49% during

the same period. These countries have further

added key competitive advantages over

other countries to maintain their share.

Over the last two decades, global textile &

apparel trade has doubled in its value to reach

USD 790 billion in 2018 (E) (growing at a CAGR

of 4%). Anticipating a similar growth (CAGR

3.5%) over the next decade, the textile &

apparel global trade is estimated to reach USD

1,200 billion by 2030. That is a trade addition of

US$ 410 billion in the next 11 years. While global

trade will continue to grow, the shift in

manufacturing will be driven by other

parameters besides cost. Factors like

competitiveness and closeness to markets will

also influence the shift in the manufacturing

bases in the future.

COST HAS PLAYED A MAJOR ROLE IN TEXTILE & APPAREL MANUFACTURING SHIFT OVER THE YEARS

23%

35%

3%0%1%

1%2%

5%

5%

4%

9%

4%

8%

4%

6%

3%

6%

2%4%

2%3%3%

1%3%3% 3%

1995 2018

Turkey

Japan

UK

Belgium

France

S. Korea

USA

Germany

Italy

Vietnam

Bangladesh

India

China

45%

26%

22%

49%

Figure 5: Global Textile And Apparel Trade Share

Source: UN Comtrade & Wazir Analysis 1995 2018

MANUFACTURING SHIFT

MANUFACTURING LANDSCAPE WILLBE INFLUENCED BY 3 Cs - COST, COMPETITIVENESS & CLOSENESS

6

While all countries would like to increase the

share of manufacturing, the top textile &

apparel manufacturing hubs i.e. China, India,

Bangladesh, and Vietnam have developed

themselves over the years to become

competitive in their respective segments.

These countries have established strong

manufacturing ecosystem, large scale, and

complete value chain presence to fulfill the

demand of international buyers and provide

them with one-stop solutions for their textile

& apparel needs. They have also developed

segmental expertise which has become their

USPs in the global industry. China has

established dominance in synthetics, India in

value-added garments (especially

womenswear), Bangladesh has become the

go-to apparel manufacturing destination

(especially in cotton knits) while Vietnam is

known for its expertise in value-added

COUNTRIES WILL NEED COMPETITIVE ADVANTAGE TO SUSTAIN THEIR SHARE

These countries will be looking to further

consolidate on their competitive advantage

and other countries will need to build some of

these advantages in their manufacturing

ecosystem to become competitive and attract

investments.

Reasons

Developing Product Expertise

Diversified Products

Large Scale

Integrated Supply Chain

FTA Advantage

Manufacturing excellence

FDI

Govt. Policy Support

China Vietnam Bangladesh India

Table: Competitiveness Matrix

*

*

* Vietnam’s FTA with EU is finalized, however, it is not under implementation yet

MostFavourable

LeastFavourable

synthetic garments. Bangladesh has leveraged

its market access arrangement (FTA with EU) to

boost its textile industry while countries like

India and China have supported their industry

through unprecedented government support in

terms of incentives & subsidies. However, these

manufacturing nations have to prepare

themselves to face stiff competition in the

coming years. They will need to further add to

their existing competitiveness in order to sustain

and grow their share. Textile companies will also

have to focus on developing manufacturing and

service excellence to gain competitive

advantage.

Figure 6: Global Textile & Apparel Trade (US$ Billion)

Source: UN Comtrade & Wazir Analysis

165 179 238 293 332 314 320 330430

139 184267

348444 429 444 460

770

304363

505641

776 743 764 790

1200

1995 2000 2005 2010 2015 2016 2017 2018 (E) 2030

5.3%

3.1%

CAGR1995 -2018

4.2%

CAGR2018-2030

3.4%

4.4%

2.0%

Textile Apparel

5

Fast fashion has changed the buyer’s prime

requirement from an earlier ‘low cost’ stance,

now to ‘shortest possible lead time’. Buyers

are increasingly looking for full package

suppliers who can give them variety and

quality in the shortest time period at

reasonable costs. Closeness of manufacturing

destinations to their respective markets thus

becomes an important advantage.

CLOSENESS TO MARKETS WILL ALSO INFLUENCE MANUFACTURING

NEAR-SHORING RE-SHORING

European brands adopted this trend of

near-shoring for its fast fashion sourcing

requirement from countries such as

Turkey, Tunisia, etc. while sourcing its bulk

orders from established suppliers such as

Bangladesh, China, and India. With

growing fast fashion and need for reduced

supply chain lead times, this trend will

further grow. Similarly, brands in the

United States will look to take advantage

of trade agreements with neighboring

regions such as Mexico, Central American

countries to cater to its demand for fast

fashion.

Re-shoring: This trend is particularly

visible in the US as spinning has come

back in a major way in the country.

Between 2013 and 2017, the US saw an

investment of more than US$ 2.3 billion*

in textiles within which spinning had a

52% share. Other areas of investment

included fibres and technical textiles.

One of the big attributes of this change

has been increasing automation in

manufacturing of these products. High

automation in spinning, fibre, and

technical textiles have led to a significant

reduction in manpower requirement.

Given the low cost of power, an

abundance of natural resources and

governments increasing interest in

bringing manufacturing back to the US,

these segments are expected to flourish

in the near future. With more

automation, other segments can also get

attracted to the US in future and further

downstream segments will need to be

developed in nearby regions as well to

cater to the growing requirement.

While earlier manufacturing shift occurred on

the basis of low cost, the next shift will also be

driven by the competitive advantage of

countries and their closeness to major markets.

Going forward, the 3Cs will influence how

future textile manufacturing landscape

evolves.

1

3

2

Low cost of manufacturing

COST

Geographical closeness between buyers and manufacturers

CLOSENESS• Manufacturing excellence• Product expertise• Zero duty market access

COMPETITIVENESS

TEXTILE & APPAREL MANUFACTURING

7

*Source: USITC | United States International Trade Commission

1995 2018

The industry is going through another

paradigm shift in technology, popularly

referred to as the “Fourth Industrial

Revolution” or “Industry 4.0”. It is a

transformation that makes it possible to

gather and analyze data across machines;

enabling faster, more flexible and more

efficient processes to produce quality goods

at reduced costs. The textile & apparel

manufacturing industry is also expected to

be impacted by Industry 4.0 and companies

will have to adapt to this to survive and grow

in the future.

FACTORS DRIVING THE RISE OF INDUSTRY 4.0

Industrial revolution commences with the introduction of disruptive technology. There are

numerous factors that contribute to the birth of these innovations and technologies within the

manufacturing industry. Some of the forces that are acting to bring about the Industry 4.0

paradigm are:

The fashion industry is

moving towards shorter

product cycles and faster

launches. Also, there is a

shift from high volume,

low mix to low volume,

high mix in terms of the

product basket that

brands have to offer.

Scarcity of skilled labour

and rising wage costs

have been the two key

inhibitors in terms of

production costs that

most of the organizations

are facing.

Technology has been the

major driver of any

industrial revolution. The

new trends are inclined

towards automation and

efficiency in production as

well as gaining scale in

advanced material,

robotics, nanotechnology,

AI, and IoT.

Changing Demand & Supply Dynamics

Rising Limitations in Factors of Production

Ever-Evolving Technology

Strong Emphasis on Sustainability

Growing population and

changes in lifestyle

require development of

new technologies that

will be able to reduce the

use of resources. (water,

material, energy, etc.).

8

ADOPTING INDUSTRY 4.0 WILL BE THE KEY TO ACHIEVING MANUFACTURINGAND SUPPLY CHAIN EXCELLENCE

TECHNOLOGYSHIFT

KEY LEVERS THAT WILL RESHAPE THE TEXTILE INDUSTRY

MANUFACTURERS

Increased

Productivity

Increased Quality

Higher level of automation reduces production time, enables better

machine utilization and inventory management. This also contributes to

manufacturing flexibility which allows manufacturers to offer a larger

product basket.

Sensors and actuators on the shop floor monitor the production in real

time and immediately intervene in case of errors.

HOW INDUSTRY 4.0 WILL BENEFIT THE TEXTILE INDUSTRY

Industry 4.0 can positively impact the textile

industry across the value chain in the following

ways:

The concept of Industry 4.0 envelops many

technologies. These building blocks have the ability

to open up a wide range of possibilities in redefining

the textile industry.

Big Data Analytics : This refers to the collection and analysis of large sets of data. Big data

poses varied applications such as discovery and analysis trends, interaction among various

entities, supply chain management, market segmentation, trade surveillance, real-time

decision making, predictive analytics, and price optimization.

Artificial Intelligence (AI) : AI involves the recognition of patterns and machine learning by

analyzing large chunks of data. Applications of AI range from video games to intelligent

robots, which can detect physical data from the real world. AI is increasingly becoming a tool

for enhancement of product quality, increase productivity and reduce costs in the textile

industry.

Advanced Robotics : Advanced robotics can aid in automation with concepts wherein robots

handle the entire production system including material handling in the cut and sew industry.

Application of robotic automation provides many benefits such as labour savings, reduced

lead times, improved quality and safety, increased productivity and efficiency.

3D Printing/Additive Manufacturing..: 3D printed garments are made by building up

successive layers of the material using CAD software. The software is capable of producing

complex designs and easily incorporating variations, bringing about flexibility in

manufacturing. Other benefits include a less raw material requirement, less wastage, creation

of identical complex objects repeatedly, reduction in lead times and costs.

Internet of Things (IoT) : IoT allows machine to machine interaction and exchanges of data

through the internet. This helps in making decentralized decisions, which are faster and more

efficient. IoT finds application in e-textiles, automated monitoring, predictive maintenance,

increasing efficiency, product development, virtual reality - garment fit, etc.

9

Reduced Costs

Fewer quality problems will lead to less material wastage and hence,

lower personnel and operating cost. Moreover, predictive maintenance

will prevent costly repairs and unplanned downtime.

Effective PlanningReal-time information and predictive analytics will help in more efficient

planning and forecast upcoming bottlenecks.

BRANDS

Sampling &

Technical Inputs

Quality

Right Costs

Inventory

Management

TImely Delivery

Technologies like 3D printing achieve faster prototyping, reducing the

accelerating time to market.

With the help of technology, production cycles can be made more

transparent, which will provide brands with verified information about

the material, process, and people behind the product.

Analysis of consumer buying patterns can be carried out for real-time

pricing of products. The smart system can decide what discount to offer

on a specific product, comparing with the outside market situation.

Brands can utilize real-time analytics to predict buying behaviors of

customers. By pairing the inventory management system with data

analytics, brands can improve their demand forecasts. This will help in

optimizing inventory levels and reducing the potential cost associated

with it.

Industry 4.0 enables information transparency across the supply chain

which can help track the delivery of goods and avoid stock-outs or lose

opportunities to sell to a consumer and potential cost associated with it.

CUSTOMERS

Customization

Right Price

Instant Delivery

Good After Sales

Service

Technologies like 3D printing and virtual reality have made it possible for

products to be customized for an individual within a small time frame and

at a reasonable cost.

Due to efficient manufacturing, brands are able to offer more reasonable

prices for the product to the consumers.

Delivery methods offer real-time product tracking and improved visibility

in the delivery process.

With the help of technology, brands can keep a proactive approach in

customer relationships and providing after-sales services. Brands can

utilize data analytics to design customized experiences for customers

such as notifications for offers, loyalty discounts, product suggestions

based on buying behavior, recommendations for occasions, etc.

10

The notion of fashion as solely fulfilling the need

to protect oneself from the environment is a

concept of the past. Over the years, apparel has

evolved into a style statement and is conceived

as a desire rather than a need. Today, the global

fashion market has attained a value of US$ 1.9

trillion and is expected to grow at 4% to reach a

value of US$ 3 trillion by 2030. This surge in the

fashion market is owed to the ever-evolving

consumer desires and the increased expenditure

on clothing. The fast fashion trend has been

reshaping the fashion industry by catering to the

consumers’ needs of trendy clothes for a lower

price. The market for fast fashion has been

growing significantly by 21% over the past three

The fashion industry is witnessing a constant

stream of innovation, with a myriad of

technologies creating new experiences for

consumers. The future structural shifts that will

govern fashion consumption will be based on:

• Influx of technology in fashion

• Developments in material science

a) Growth of online fashion industry

The big impact of technology in consumption

patterns has been witnessed in the last few years

by the high growth of online apparel sales at the

cost of physical stores. The influence of the

internet has increased significantly in consumer

purchases and it is shaping sales patterns across

the globe. The growth of this category is evident

from its significant share of 27% in the USA’s

overall apparel sales.

years owing to the high growth of fast fashion

pioneers like Zara, H&M, and Forever21, and is

expected to continue this growth momentum.

FASHION CONSUMPTION WILL FURTHER EVOLVE

INFLUX OF TECHNOLOGY IN FASHION

Online Fashion Industry

•Consumers can shop sitting in the

comfort of their homes; growth of

online fashion retail

•Online brands offering vast variety of

fashion choices

Conventional Fashion Industry

•Customers visit stores physically to

shop

•Stores offer a limited design variety

•Fashion choices are limited to

geography and culture

11

Growth in Visits to Select Fast Fashion RetailEcommerce Sites* WorldWide, H1 2018

US$ 3.0 tn.

US$ 1.9 tn.

Figure 7: Global Apparel Market

Source: PCI and Wazir Analysis

FASHION CONSUMPTION WILL CONTINUE TO EVOLVE DRIVEN BY TECHNOLOGY AND INNOVATION

CONSUMPTIONSHIFT

OVER THE YEARS FASHION HAS BECOME ALL PERVASIVE

2018 2030

New developments in the field of material

science are greatly enhancing the

functionality of the existing products.

Innovations in the textile value chain are

incorporated right from the raw material

stage with addition of desired properties

in the fabric. These developments are

aimed at making textile commodities

more durable, ecological, sustainable, and

at the same time, futuristic. Further

developments in material science will

determine the nature of fashion products

consumed in the future. The fashion

industry is uniquely competitive and its

growth doesn’t represent any sign of

slowing down in the near future. Brands

are taking an active stance to adjust to

changing consumer behavior by

increasingly embracing the avenues of

technology and product innovation.

DEVELOPMENTS IN MATERIAL SCIENCE

b) Technology adoption in fashion will be fast tracked

With advanced manufacturing

techniques like 3D printing and

waterless dyeing, the industry is

weighing different inventions to

manufacture the most

cost-effective and desirable

garment. With the introduction

of interactive garments and

wearable technology, these

innovations are not only limited

to how the manufacturing

industry functions, but are also

modifying the manner in which

products interact with the

environment and consumers.

Going forward technology will

play a bigger role in determining

fashion consumption.

INTERACTIVE GARMENTS

DIGITAL PRINTING

WATERLESS DYEING TECHNOLOGY

COLOR CHANGING GARMENTS

3D PRINTED FABBRICS

12

WEARABLE TECHNOLOGY

SHAPE ADJUSTING FABRIC

BULLETPROOF COATED FABRICS

MOISTURE CONTROL FABRICS

SELF CLEANING FABRICS

PHOTOSENSITIVE FABRICS

Textile & apparel is one of the largest

manufacturing industries in the world, but it is

also a major polluter of the environment.

China, the largest textile manufacturing hub

in the world has polluted 90% of its

groundwater. It is estimated that till 2050

WHAT CAN BE DONE TO MAINTAIN THIS BALANCE? Sustainability is the solution to maintain

harmony between increasing global demand

and decreasing natural resources. To achieve

it, a combined effort from every value chain

member starting from fibre production to

manufacturing to consumption will be

required. In the coming years, sustainability

will be driven by the following three wheels:

1. Manufacturing Excellence

2. Adherence to Compliances

3. Changing Consumption Habits

Adopting manufacturing excellence is the first

step towards achieving manufacturing

sustainability. It is a combination of small but

significant steps such as:

global fashion industry will account 25% of the

carbon budget. On an average, 12.8 million tons

of global textile waste ends up in landfills

emitting methane gas which is more potent than

carbon when it comes to harming the

environment. Every washing cycle of synthetic

clothes accounts for around 1,900 microfibers in

the ocean and as per an estimation, there are

already 1.4 trillion microfibers in our ocean.

These facts reflect a global challenge which

needs to be mitigated immediately.

WASTE GENERATION

WATERSCARCITY

ENVIRONMENTALPOLLUTION

BILLION LITRES

of water is required

for one year’s worth

of global textile

production

95 MILLION TONS

textile waste ends

up in landfills each

year globally

12.8

of local ground water

in China is polluted,

mostly due to the

textile industry

90%25% of world’s

carbon budget will be

used by fashion

industry

2050

13

•Efficient production planning to enhance

operational efficiencies and resource utilization

•Use of new and improved technology to obtain

maximum production efficiency, output quality,

and cost optimization

•Incorporating product lifecycle management to

achieve material saving and obtain zero defects

•Integration with IT for achieving the best

process control

•Skill training to improve productivity and

reduce wastage

1. Manufacturing Excellence: Producing More Emitting Less

SUSTAINABILITY WILL BE THE MAIN PILLAR OF FUTURE GROWTH

ENVIRONMENTALSHIFT

TEXTILES IS ONE OF THE LARGEST POLLUTING INDUSTRY IN THE WORLD

Achieving manufacturing excellence ensures

not only the optimum utilization of machinery

and infrastructure but it also ensures the most

efficient use of natural resources thus

maintaining the right balance.

Due to growing concerns about the

environment and improving transparency in

the supply chain due to IT integration,

adherence to compliances and standards is

no longer an option. International brands use

these compliances as a filtering tool for

selecting their suppliers and demand strict

adherence across the value chain.

Environmental compliance is an issue of

grave importance owing to its positive

impact on our ecosystem. Use of

pesticide-free cotton, incorporation of zero

water discharge, recycling and reuse of

wastes and by-products, etc. are components

of environmental compliances. Complying

with these standards helps in creating an

environmental balance which is the need of

the hour.

The efforts required to achieve sustainability

are not just limited to the manufacturer and

brands, consumer awareness about the impact

of product lifecycle on the environment also

has an important role to play in sustainability.

The principles of the circular economy i.e.

Recycle, Reuse, Resale, and Rentals are

re-defining the ways in which people consume

fashion.

REcycle: New breakthrough have happened in the area

of material recycling wherein used polyester

clothing can be recycled through chemical

processing to re-produce base raw material i.e.

polyester granules which can be used further in

the value chain. This technology holds the

potential to disrupt the recycle clothing

industry by utilizing the existing clothing dump

and creating new products from it.

14

Chemical Recycling Process Recycled Garments

Recovered FibreProducts

Processed Materials

Polyester RawMaterial

Polyester Polymer

FilamentEnd Product

ProcessingChemical

Purification

Polymerization

2. Compliance norms will need to be met for future survival

3. To Revive or even to Remain, the industry will need ‘RE’-defining

REuse: Reuse of garments or other textile products

either by fixing or transforming them is

another way of extending the lifecycle of

textile commodities. Re-using of waste

generated throughout the manufacturing of

textile products is another way of getting

closer towards achieving sustainability.

REsale: Another way of utilizing used clothing is

through second-hand sales (resale and thrift

& donations). In the US, approximately 15% of

the discarded clothing is given for resale.

Currently, the African population is the major

consumer of these second-hand garments

mainly imported. However, 12-15% of

Americans are estimated to shop for their

clothing at the resale stores, indicating a shift

in consumption patterns. Currently, the

second sales market stands at US$ 24 billion

and is expected to reach a level of US$ 51

REntals: In present day scenario, renting your outfits is

no longer a stigma but is surely a sign of

changing and evolving mindset towards

textile consumption. The global online

clothing rental market was valued at ~USD 1.1

billion in 2018 and is estimated to reach USD

1.8 billion by 2023, with a CAGR of 10% from

2018 to 2023. Fashion rental has the potential

to reduce waste and increase the lifespan of

garments, but the most important factor that

can lead this trend in future is the

engagement and openness to change of

consumer and business practices. Adopting

billion by 2023 (16% CAGR). The Resale market is

expected to register high growth (36% CAGR)

during the same period to reach a level of US$ 23

billion by 2023. Reselling of used garments is both

an ecological and economical way of achieving

consumption sustainability in the future.

24

11 12 14 15 18 2028

3237

4351

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Resales Thrift & Donations

sustainable practices is the need of the hour and it

reflects an outstanding opportunity for companies

to make a significant difference environmentally,

economically and socially.

Garment Cutting Waste

Polyester YarnProcess Waste

Pillow with Polyester FIlling

Rag Rugs

SelectTryRentRepeat

15

1 1 2 3 5 7 10 13 17 2311 12 13 14 16 17 19 21

2224

2628

Figure 8: Second-hand Sales Market (US$ Billion)

Source: ThredUP Annual Report 2018

IMPLICATION OF THESE SHIFTS ON FUTURE STRATEGIES OF TEXTILE & APPAREL COMPANIES

P

Fibre Shift• Companies need to align their product mix with global demand and

going forward need to incorporate polyester-based products in their

basket.

•.Need to develop required product expertise, technical know-how

and build capabilities to produce high-quality synthetic textiles.

Manufacturing Shift• Companies need to focus on achieving excellence in manufacturing

and service in order to compete in the global market.

• Countries need to develop a key competitive advantage to attract

manufacturing in the future, besides cost.

Technology Shift• Companies need to adopt new technology like industry 4.0 in their

operations in order to achieve manufacturing and service excellence.

• Realign existing set up with a view to incorporate new technology.

Consumption Shift• Companies need to adapt to flexible manufacturing to cater to the

growing online market.

•..To be focused on innovation and development of new product

categories that will change consumers’ buying patterns

Environmental Shift• Companies will need to incorporate sustainable practices in their

operations.

•..Align products and services to reflect in changing consumption

patterns due to sustainability

16

Wazir Advisors is a Management Consulting

company assisting its clients in strategy

formulation and implementation, forming

alliances and joint ventures, investments and

market understanding, sector analysis and due

diligence-thereby providing end to end solutions

spanning the complete business cycle in the

textile value chain. Having worked with leading

Indian and International companies, public

sector organizations, Government departments,

development agencies, trade bodies, etc., Wazir

ABOUT WAZIR ADVISORS

has a deep understanding of global textile sector

dynamics and right connect with the decision

makers. Wazir’s team of textile experts possess

experience across function – projects,

operations, sourcing, and marketing in the

sector. The team members have worked on

strategy and implementation assignments in all

major textile & apparel manufacturing and

consumption base. Wazir leverages its body of

knowledge, contact and combined expertise of

its team to deliver value to clients.

Wazir delivers practical,

implementable strategies for

clients to meet their objectives.

We assist clients to

conceptualize, evaluate and

select business opportunities in

the textile & apparel sector. Be it

corporate strategy intending to

enhance profitability or new

market opportunity identification

or sector growth strategy to

support MSMEs, we are geared to

advise our clients efficiently and

effectively.

• Corporate Strategy

•Market Opportunity

Assessment

• Market Entry Strategy

• Location Analysis

• Business Performance

Enhancement

• Product Diversification

• Marketing and Distribution

Strategy

• Sector Mapping and Growth

Strategy

• Policy Formulation Support

• Government Scheme

Evaluation

Wazir provides

implementation services to

textile & apparel sector

entities to convert the plans

into reality. Wazir has the

capability to execute every

strategy that it recommends.

Whether it is to manage a

Government scheme or to

improve productivity in

apparel factories or to

identify the most suitable

technology; we have in-house

competence to cover all the

critical elements of

implementation.

• Project Management and

.Monitoring

• Re-modelling of

.Manufacturing Plant

• Process Re-engineering

• Productivity Improvement

• Supply Chain Optimization

• Feasibility and

.Techno-Economic Viability

.(TEV) Study

• Investment Promotion

• Cluster and Industrial Park

.Development

Alliances

Partnerships and collaborations

are ways to achieve accelerated

growth, expand market reach

and attain technical

advancement. Realizing the

importance and need for inter-

organization alliances in the

textile and apparel sector, Wazir

has developed broad range of

services to support companies

and organizations looking for

inorganic growth globally.

• Company Due-diligence

• Joint Venture

• Marketing Tie-up

• Technology Transfer

• M&A Execution

• Strategic and Financial Funding

Strategy

Implementation

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Wazir Advisors Pvt. Ltd. 3rd Floor, Building No. 115, Sector 44, Institutional Area,

Gurugram - 122 002, National Capital Region, India.

www.wazir.in

B. Prakash prakash@wazir.in +91 9810866927

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Sanjay Arora sanjay@wazir.in +91 9971110566

Prashant Agarwal prashant@wazir.in

+91 9871195008