Once the current challenges subside, market is expected to grow again
The International Apparel Federation (IAF), founded in 1972 by industry visionaries Joachim Hoffman (Europe), Komataro Kondo (Japan), and Thomas Roboz (US), was built on a dream: to unite apparel manufacturers globally by fostering collaboration, sharing best practices, and supporting businesses in the ever-evolving apparel industry.
Over the decades, this dream has grown into a reality, with the IAF emerging as the world’s foremost federation for apparel manufacturers, their associations, and supporting industries.
Today, IAF’s global influence spans over 40 countries, representing more than 150,000 companies and over 20 million employees. The federation’s membership includes leading apparel associations and prominent companies in technology, business services, logistics, etc.
Its mission, redrafted in 2006, reflects the rapid changes in the apparel sector, embracing not only manufacturing but the entire apparel supply chain.
As the industry navigates the challenges of globalisation and increasing competition following the liberalisation of trade in 2005, IAF stands at the forefront, advocating innovation, sustainability, and cooperation across the demand chain.
Fibre2Fashion spoke with Cem Altan, President of the IAF, on the sidelines of the IAF summit in Samarkand, Uzbekistan, to know his views and thoughts on the global apparel and textile sector, with a special focus on Uzbekistan and India.
Cem Altan, a renowned figure in Türkiye’s apparel industry, has a background in textile engineering from the UK and boasts a successful career in apparel manufacturing even as his leadership continues to shape the industry towards sustainability and innovation during his second term as the IAF President.
His vision aligns with IAF’s ongoing mission to build bridges across the apparel chain worldwide.
Following are the excerpts from the interaction.
As geopolitical and economic developments continue to unfold across different regions, how do these changes shape the textile industry globally, and what implications do they hold for Uzbekistan?
The textile and apparel industry plays a crucial role especially in countries with large populations and abundant labour resources. Key production hubs span from Türkiye to Bangladesh, India, Pakistan, and further to China, which is currently the largest player in this domain.
However, the global market is constantly seeking new production destinations that offer competitive prices and larger capacities.
In recent years, challenges like COVID-19, post-pandemic disruptions, and geopolitical conflicts have significantly impacted global demand. However, these issues are temporary, and as they gradually subside, the global market is projected to recover. This recovery will likely boost demand, encouraging industry to increase production capacity to meet growing needs.
In the given scenario, countries that possess both human resources and raw materials, like Uzbekistan, are in a strong position to capitalise on the same.
Uzbekistan, as a member of both the International Textile Manufacturers Federation (ITMF) and the International Apparel Federation (IAF), has made significant investments in textile and apparel production. One major advantage for the country is its domestic cotton production, which facilitates the development of a robust supply chain.
However, Uzbekistan faces certain logistical challenges as well; it is a landlocked country and the current geopolitical dynamics only complicate things. The ongoing war in Ukraine has emerged as a major challenge in this direction including that related to transportation of goods through the Black Sea routes.
Uzbekistan holds potential in partnerships with BRICS nations, given its established trade relationships with Russia, India, and China even if it needs to further solidify its trade agreements, particularly with the EU and the US, to enhance market access.
What is the way forward for Uzbekistan in view of the existing challenges?
Uzbekistan is geographically close to Europe, yet owing to logistical bottlenecks, it takes almost 14-15 days to transport goods there.
To overcome these obstacles there is a need to explore new ways and means of exports including air freights while also investing in infrastructure development locally.
However, the good thing about Uzbekistan is it has made rapid progress in past years in terms of business readiness in general and with regards to creating an enabling environment for the textile and apparel industry. The reforms it undertook have resulted in remarkable growth both in terms of investments as well as international trade.
The supportive stance of the government towards the industry provides an additional advantage for businesses.
So, how would you rate Uzbekistan’s future growth potentials?
I firmly believe if Uzbekistan focuses on sustainability and transparency, its textile industry has enormous potential to thrive. Transparency has become very crucial in today’s age—consumers and regulators alike want to trace the entire journey of a product, from where the cotton is grown to where the finished product ends up.
Additionally, ensuring proper working conditions is also vital for long-term success.
The most important thing in the given milieu is staying competitive in the market, particularly with the European Union’s stringent new regulations on decarbonisation, recycling, and other sustainability practices. Compliance with these standards is essential for exporting to EU countries, and with the US too adopting similar regulations, it becomes even more important.
There is a growing urgency to implement the sustainability measures quickly, as both the EU and US expect rapid action.
The advantage for Uzbekistan is, since it is still developing its textile sector, the country has the opportunity to build the required sustainable practices and regulations into its framework from the very outset. This is a massive advantage, and I believe it can position Uzbekistan as a competitive player in the global textile market in the days to come.
As to India, the country is unique in the sense that it offers dual opportunities as a leading apparel manufacturing destination and a growing consumer market. What is your perspective on India’s rise as a key player in the global textile and apparel space?
As you rightly pointed out, India has a large population and a vast domestic market. Many Indian manufactures naturally find it easier to focus on the domestic market initially, and as a result, they experience good growth domestically. However, once they reach a certain scale, they begin to explore export opportunities.
Based on my experience, visiting India several times, I have observed that many Indian companies tend to split their focus, with 60-70 per cent of their efforts directed towards the domestic market and 30 per cent towards the global market.
In the global textile and apparel sector, however, growth in exports requires a concentrated focus on the export market. When companies try to balance both domestic and export markets simultaneously, it can be difficult to achieve the same level of success.
Countries that primarily focus on exports, such as Bangladesh, Vietnam, Cambodia, and even Türkiye, tend to experience faster growth. In Türkiye, for instance, we see two distinct sets of industries: one focused entirely on exports and the other on the domestic market.
That said, India holds tremendous potential. In the coming years, India could pose a serious challenge to China and Bangladesh. Unlike Bangladesh, which lacks raw materials and heavy investment in textiles, India possesses a complete ecosystem—from raw materials and accessories to textiles, recycling, and organic cotton. This gives India a significant advantage, positioning it to become an even more important player in the global textile and apparel market.
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