- 1 Global Textile Business In Markets
- 2 Global Textile Business & Apparel Business Overview
- 3 Global Apparel Market – Present and Future
- 4 Future Projections In Textile Business
- 5 Indian Textile & Apparel Industry Overview
- 6 Trade Pattern In Textile Markets
- 7 Conclusion
The world saw the major changeover in the textile business with British industrial revolution, where the British took the technology to the colonies they ruled like India etc. & so the developed countries became the origin of technology while the developing countries moved towards being the manufacturing hubs due to the abundant manpower.
With the world, the textile business industry in India being the largest employer after agriculture. It contributes to the 16% of country’s total exports.
India has faced the global textile business market with 2nd largest manufacturing capacity in the world.
The global textile business & clothing business 2017 is estimated to be worth about the US $4395 billion and also, global trade in textiles & clothing stands around the US $360bn.
According to the world trade organization forecast. Global trade is set to expand by 3.3% this year & 4% in next year.
The success of the modern industry of world textiles is dependent largely upon continuing major investment in innovation and invention.
The reason which forces the textile business to the promotion is increasing the share of Technical Textiles.
Globally, the technical textiles contribute to about 27% of the world textile industry, in some of the western countries its share is even 50 % while in India it is 11%.
Transparency market research (TMR) forecasts that the global technical textile market is growing with CAGR of 3.3% from 2012.
In 2018, The global technical textiles market will reach a market value of US$160.38 billion from US$133.93 billion in 2012.
All the above clearly suggests a better than expected outlook for our textile industries. In fact, there already are indications that 2016 is going to be a good year.
Thus, recently ended holidays sales comprised of a good percentage of textile and apparel products increased by some 4 percent, a full percentage point faster than the previous year-end.
Supporting this finding are new apparel store numbers that show similar gains. More importantly, this upbeat industry trend is likely to continue. Our paper discusses the same scenario.
Global Textile Business In Markets
After up-downs, a global textile business and apparel industry are flourishing at high speed. The world is on a new corridor of the industrial revolution. Analysts are anticipating more expansion with latest technologies in textile machinery.
The textile machinery hubs like China, Germany, Italy, Switzerland, and India have already jumped in gigantic competition to craft and bid best technologies in textile machinery.
Global industry analysts, Inc.(GIA) has declared that the global bazaar for textile machinery is estimated to reach US$ 24.9 billion by 2018 demand for sophisticated machines that produce high-quality clothes is increasing whatever is the technology, the purchasing decision is greatly influenced by the machines versatility, flexibility, and price offers.
Key factors for dynamic growth in the textile machinery market contain economic revival post-recession, rising demand for the nonwoven disposable textile product, increasing demand from promising regions, especially Asia-pacific and going up demand for environmentally-friendly fibers. this article analyzes some of the world leading textile machinery manufacturing countries.
Global Textile Business & Apparel Business Overview
- The T & A trade was worth USD 773 billion, in 2013, and is expected to grow at a CAGR of 5% over the next decade. The growth of the apparel trade is expected to out space that of the fabric trade.
- China dominates global T&A exports with 40% share of made ups, 37% of apparel, and 39% of fabric. India, Bangladesh, Vietnam, Turkey, Pakistan etc. are the other major T&A exporters.
- The top five Textile & garment importing nations are US, China, Germany, and Turkey. China is the single largest exporter with 39 percent share while India stood at a distant second place with 5 percent share.
- The global fabric trade was worth USD 137 billion in 2013 while the global apparel trade was worth USD 428 billion. It is expected that the rate of growth of the trade in knit fabric and apparel will be higher than that for the woven counterparts.
- Asia is the leader in terms of the installed capacity of textile machinery,86% of short-staple spindles,45% long staple spindles, 55% rotor spinning machines,73% of shuttle fewer looms & 85% of shuttle looms are installed in Asia alone. China, India, Pakistan, Indonesia & Thailand are among the leaders in terms of this installed capacity.
- The US, EU-27 countries and Japan remain the key apparel importers. However, The appeal imports of emerging countries like Russia, China and India have registered some momentum in recent times.
Global Apparel Market – Present and Future
Global Apparel Consumption
The current Global apparel market is estimated at approximately US$ 1.15 trillion which forms nearly 1.8% of the world GDP.
Almost 75% of this market is concentrated in EU-27, USA, China and Japan.
The next largest markets are Brazil, India, Russia, Canada, and Australia, in descending order with a share of approximately 18%.
Textile Global (Regional) Market Size
Within the top markets, there is a major distinction between developed countries and the emerging ones in terms of per capita spends on apparel.
The lowest per capita spending is on apparel among these markets is of India (US$ 37).
Australian per capita spending on apparel is highest one with US$1131.If we compare, then Indian people spend only 4% compared with Australian per capita spend on apparel.
Leading Exporters In Global Textile Exports
China is a consistent leading exporter in the global textile market whereas India, Italy, Germany, Bangladesh are other leading countries.
China’s 2013 export textile business was worth of 274$ bn whereas India places 40$bn export.
If we compare Indian and Chinese exports by relating their 2012 export then we can surely see the difference change.
Indian exports increased by 21% compared to 2012 export whereas China export trading grows with 11%.
Indian and Chinese apparel markets shown robust growth, despite global uncertainties and slackened demand.
From 2009 to 2013, the Chinese market registered a CAGR of 13% whereas the Indian market registered a growth of 10%.
If we see the nature of countries, per Capita spend on apparel in India is only one-third of that in China so the Indian apparel market needs less import than Chinese apparel market which increases the CAGR%.
Leading Exporters In Global Textile Machinery Exports
China & India are developing as major production hubs whereas Germany & Italy showing constant Growth in textile machine manufacturing.
In the global textile business, Italy & Germany trade textile machinery to worldwide from a number of years whereas.
China, Japan &Switzerland are also come up with their new technologies. Germany’s global export is with the highest revenue of 2,724 million euro in 2014 Whereas the Italy export revenue is 1510 million euro.
Italy’s major export revenue share came from major production hubs. Italy exports 42% of its whole production to Asian countries.
Future Projections In Textile Business
- The growth of the apparel market is stagnating in the traditional consuming hubs of EU, USA, and Japan.
- Countries like China, India, Russia & Brazil are emerging as apparel retail markets and will form significant alternate markets to US, EU-27, Japan.
- India had 46 US$bn apparel market size in 2013 which is estimated to grow for 200US$ with 12% of CAGR in between 2013 – 2025. India is upcoming with a fastest growing market.
- In 2013, Surpassing Italy and Germany. India exported textile & apparel garments goods worth $40 billion, With a share of about 5 percent of global textile & garment trade.
- China market will continue to lead all over the global market with 540 US$bn in 2025. China has led 165 billion US$ market which is growing at CAGR of 10%.
- In the years China and India will only have huge growing markets.
- EU-27, USA, Japan have 2% CAGR which shows the steady growth of Developed countries. As the Per the Capita spend on apparel is more in these countries, Markets needs importing of apparels so it makes more chances for growing apparel markets for trading.
|Rest of the world||80||195||8%|
Indian Textile & Apparel Industry Overview
- With over 45 million people, the industry is one of the largest source of employment generation in the country.
- The size of India’s textile market in 2014 was US$ 99 billion; the market is expected to expand at a CAGR of 9.6 percent over 2014–23.
- The Indian T&A market was estimated at INR 3,20,000 crore (USD 58 billion), in 2013, and is projected to grow at a CAGR of 9% to INR 7,57,000 crore (USD 138 billion) by 2023.
- The INR 21,160 crore (USD 4 billion) domestic home textiles market is expected to grow at a CAGR of 8% to reach INR 43,970 crore(USD 8 billion) by 2023.
- India’s technical textiles market is estimated to be worth INR 70,880 crore (USD 13 billion), and, at an estimated CAGR of 8%, is expected to reach INR 1,52,000 crore (USD 28 billion) in 2023.
Trade Pattern In Textile Markets
In 2013, India became the second largest exporter of textile & apparel in the world surpassing Italy and Germany. With an export value of approx.
US$ 40 billion, India has a share of approx. 5% of the global textile and apparel trade.
Indian textile and apparel exports have grown at a CAGR of approx. 9% since 1995 while global trade during this period has grown at a CAGRof 5%.
Indian textile business market imported 5.4USD bn on Textile & Apparel in 2013 in which 5.0 USD bn spend on Textile importing only.
In India, Textile & garments are imported mostly for re-importing. Textile materials like cotton, fabric are mostly imported.
India is a net exporter in the textile and apparel segment. In 2013, India imported US$ 5 bn. of textile and apparel goods against an export of US$ 40 bn. worth exports.
The historical growth rate of exports is also higher than that of imports. Increasing exports of Indian market are an uplifting scenario of Indian textile business.
As Established Indian textile business getting more chances for exporting goods in the global market where indirectly in the domestic market there is scope for upcoming new companies.
There is a positive correlation between consumer’s spending on various categories and the economic stature of each country.
In lesser developed economies, consumer’s spending is highest on food followed by clothing, housing, and other items.
In developed economies, as the consumer’s disposable income increases, the share of basic categories such as apparel reduces, whereas the share of new categories like entertainment, recreation, consumer durable, travel etc. increases.
Though in absolute value terms, the spending on clothing will not go down, but the increase will be slower than the overall increase in disposable income.
This behavior in aggregate form causes per capita spends on clothing to rise faster initially and slow down later.
In developed economies, this growth slows down or stagnates, while in value terms the spending on apparel continues to grow.
Based on this fact, it is expected that the per capita spends on apparel will grow at a faster rate than the economy in Brazil, Russia, India, and China; whereas it will be slower or at par with the economic growth in developed markets over next few years.