Textile trade plays an integral
part in manipulating the economic output of many countries. It generates
employment opportunities for 40 million people worldwide; and is one of the two
most dynamic sectors in the world for the past two decades (the other one being
electrical and electronic goods). Many developed countries attempt to protect
their domestic industries from the clutch of international competition through
quotas and tariffs. There are many recent trends in the nature of textile and
clothing industry. With the proliferation of trade agreements, market
consolidation has become a growing trend. Global clothing trade has seen an
ever increasing pace during the past decade. During 2003, it increased by
12.9%, and 11.6% in 2004. In 2006, world textile trade rose to $530 billion
USD, which was 9.7% higher than the previous year. Observing the demand and
supply trends, industry analysts predict that by 2010 world consumption of
textiles will exceed 127 billion tons.
After the termination of ATC
(Agreement in Textiles and Clothing), textile and apparel production is
expected to shift to countries that posses a competitive advantage over the
others. Availability of abundant labor in developing countries like Asia, are expected to confine a higher level of production. Simultaneously, this will lead
to increase in the textile imports of developed countries that lack comparative
advantage in textiles.
In 2006, EU was the biggest
exporter of textiles, followed by China. As far as textile imports were
concerned, EU was again the largest importer followed by US, and China; ranking third. China had the biggest textile and clothing trade surplus. Followed by
this were India, Italy, Turkey and Pakistan. The ongoing financial turmoil
started in US, and which gradually spread all across the globe has left ugly
scars on many industrial sectors, and textile industry is not immune to it. Still,
as a Chinese proverb quotes, "A crisis is an opportunity riding the
dangerous wind", textile companies are optimistically confident to face
the challenges, and look for opportunities in threats.
Global Textile Trends:
- Increased Demand for Home
Textiles:
Consumers will dominate the
market demand, towards home textiles. While commenting about the current
economic downturn and sharing the rationale behind his forecast of such high
growth in world market of textiles by 2010, Mr Olaf Schmidt, Vice President,
Textile Fairs Messe Frankfurt, said "We do rely on long term developments
in the production and consumption of textiles including home, contract,
technical and apparel. This is what gives the industry and major organiser of
textile fairs worldwide like us, the basis of our forecasts. We watch the
market, but, as no one can at this early stage, we also cannot foresee to what
extent the current worldwide crisis will affect our markets".
Consumers nowadays are not just
seeking fashionable garments. Apart from that, they also consider comfort and
health related aspects. More than just textiles, functional fabrics are being
manufactured with special functional effects. Textiles that protect the skin from
allergies, fabrics with antibacterial and antimicrobial abilities, clothes that
do not need ironing, and apparels that keep the body warm even during cold
weather are some examples for this. Functional textiles will be the hallmark to
seize the global market in the years to come.
- Eco-Friendly Clothing sets
the industry under spotlight:
Rising temperature, melting
glaciers, and other calamities are crystal clear indications of the hazards,
modern life has caused to the environment. Presently, there is an increasing
awareness of global warming. Many regulations are passed addressing the issues
on evaluation, authorization, and restriction of chemical substances on fabrics.
'REACH' in EU is one to name. Eco friendly textiles include fabric qualities
which are non-toxic, carbon-reducing, recyclable, energy saving and
biodegradable. Textile industries worldwide; are now responding to the global
trend of environmental protection. Much investment is being made in research
and development of eco-friendly fabrics. They are a potential niche market
right after functional textiles.
Dr. M.P. Agarwal, CMD, Shri Lakshmi
Cotsyn Limited, who has introduced the first eco-friendly brand in India says, "World over, consumers are increasingly becoming environment and health conscious.
There is a huge market worth over Rs.100 crore waiting for our eco-friendly
products. We are getting an overwhelming response from our distributors in India and clients in US & Europe. We have already bagged orders for about 80,000 bed
sheets on the day of its launch from our distributors".
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