Garment Manufacturers Shift Focus to Direct-to-Consumer Sales Amid Global Market Uncertainty

International Apparel Federation highlights changing trade dynamics, supply chain collaboration, and growing opportunities in India's apparel market.

With geopolitical developments creating uncertainties in global markets, apparel companies are increasingly adopting direct-to-consumer shipments, Matthijs Crietee, secretary general of the International Apparel Federation, told The Hindu on Friday.

He said fibre consumption continues to rise due to the growth in the global population and the affordability of clothing. However, international trade is experiencing challenging conditions as consumers are reluctant to spend on clothing during periods of uncertainty.

Crietee noted that the apparel market offers a wide range of products, while spending on luxury goods is under pressure. He said that industries are able to address challenges where there are monetary and sustainability benefits. According to him, the largest costs are associated with selling garments rather than manufacturing them.

"Hence, apparel makers and sellers should work together so that the supply chain turns cost effective."

He added that free trade agreements provide duty-free market access to garment suppliers, but manufacturers in supplying countries also need to develop their businesses.

"The local apparel market in India is growing at almost 5% and direct-to-consumer selling is rising. 'We were with an international delegation at Bharat Tex. We are impressed with the size, diversity and dynamism of the Indian textile industry. It has a bright future," Mr. Crietee said.