Home Textiles

By: Koushik Chakraborty

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Home Textiles - Global Vs Indian Market

Home Textiles: Global Vs Indian Market

Global Overview

There was a time when textile items such as bed linen, bedspreads, curtains and table linen were bought
only during major festivals by majority of the households in India. It was a common practice to have just
a handful of bed linens and wash them frequently till they tore apart! That was 20 years ago. Thanks to
the phenomenal growth of Indian retailing, increase in purchasing power of Indian people and growing
consumerism, the lifestyle of Indian middle class is transforming. Growing demand for fashion apparels
or home textiles is a part of this transformation. The young working couples of urban India take pride in
giving a trendy look to their homes by picking up the best home textile items from large retail
stores/multi-brand outlets. At present, the home textile in India is estimated at Rs150 billion and the
market is set to get bigger.

World over, home textiles always played an important role in the comfort, protection and decoration of
furnishings. Global home textiles market (consumption) was estimated at around US$105 billion in 2006
and is expected to grow at 15% per annum. The US happened to be the largest market and was estimated
at US$16 billion. While North America and Europe still take up the bulk of shipments, exports to
emerging destinations such as Eastern Europe and the Middle East are gathering pace. Japan, Australia,
New Zealand are also large consumers of home textiles. Global demand for home textiles has led to
increased investment in Indian textile industry. India is one of the big players in supply of home textiles
after China.

This article attempts to discuss global market overview of Home Textiles in the backdrop of home
textiles market in the US, the UK, India and China. Following home textile product categories have been
largely considered while giving the market overview:

 Bed linen
 Bedspreads
 Blankets
 Curtains
 Table linen
 Textile furnishing
 Toilet linen
 Kitchen linen

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Home Textiles - Global Vs Indian Market

US Market
The US market for home textiles is vast and its sheer size (estimated at about US$16.8bn in 2007)
indicates that enormous cultural variations drive the market demand for more style and design. Normally
two trends are common in the home textile market: more value additions and environment-friendly items.
Luxury home textiles are made of silk, satin, velvet, silk organza, suede and leather. Rich jewel, metallic or
lustrous colour palettes add to their appeal. The natural fibres such as cotton, linen, hemp, flax with
associate natural colour palettes use natural dyes. China and India dominate as suppliers of beaded and
embroidered items, particularly in the luxury fabrics like silk.

US Home Textiles Imports

The penetration of imports in the US clearly reflects the structural shift in global production to lower cost
regions like India, China, Vietnam and Pakistan. China remains to be top source country and the top 10
source countries accounted for 86% of the total known value of these imports. Northeast Asia accounts
for nearly 47% of the total imports in 2006. Imports from Southern Asia have also risen, but to a lesser
extent. The top import items are sheets, towels and blankets, accounting for 82% of the total home
textiles imports of the US. The top 10 source countries of the US home textile imports in 2007 were:
China
Pakistan
India
Turkey
Brazil
Thailand
Malaysia
Egypt
Korea
Bangladesh
Top 10 home textiles importers are:
Target Stores
Wal-Mart Stores
Springs Industries
Coaster Company of America
Standard Fiber
Sunham Home Fashions
Kohls Department Stores
PEM America
Baltic Linen

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Home Textiles - Global Vs Indian Market

After a slight belt-tightening early 2008, it is expected the US consumers would resume their purchases
more actively in the second half. As interest rates may be further cut down to check the recession,
personal consumption expenditure is projected to grow slightly by 1-2% over 2007, according to the High
Point Market Authority. Home textiles market is expected to benefit with the increase in private
consumption expenditure.

China continued gaining share of the US import market for home textiles. In the first half of 2007, US
imports of cotton bed sheets from China surged 53.65% in volume terms according to preliminary data
released by the US Department of Commerce. China’s share in the US import market increased from
26% to 34%, whereas Pakistan lost by 5%. Imports of cotton bed sheets from India rose by 33% and its
share in the imports of US went slightly up to 11%.

In piles towel category, imports from China increased by 16% in first half of 2007, while from Pakistan
rose by 11%. In the market for wool blankets, India faced a sharp decrease as US imports increased from
China. India’s share fell from 76% to 59%, while China’s share increased to 23% from 12%.

US Bed sheet Imports (Value) US Bed sheet Imports (Volume)

2006 2006
Others
Others 18%
24%
India
Pakistan 5%
45%
India Pakistan
8% 55%
C hina
22%

C hina
23%
Source: Emerging Textiles.com
Source: Emerging Textiles.com

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Home Textiles - Global Vs Indian Market

UK Market
The home textiles market in the UK
comprises major segments like bed linen,
filled products, bath textiles and table linen.
In 2006, these four segments were estimated
to be worth US$1.3 billion, growing 2% over
the previous year. The UK market has
experienced lower growth in the past and
indication for 2007 revealed growth of 3%. It
is estimated that home textiles market in the
UK will reach US$1.4 billion by 2010.

It has been observed that home textile products are purchased by people when they are moving into a
new home. There is always a direct impact of housing demand on home textiles. In the past few years,
bed linen has dominated the market with 43% share in value terms, followed by filled products and bath
textiles having market share of 29% and 23% and rest occupied by table linen.

Bed linen segment is estimated to grow by 5% in value terms in 2007. Low-end product segment in the
market has grown in volume over the years but bed linen has a significant place in fashion trends in the
middle and upper market segments.

Filled products are the second largest segment in the home textiles market and garden furniture market
remains a key driver for filled products. The pillows market continues to grow steadily due to relatively
short replacement cycle and it was expected to show a moderate growth in 2007.

Bath textiles are composed of towels, bath and pedestal mat sets. Towels clearly dominate this segment.
This segment holds an important place in the US as well. There is an increased tendency for usage of
quality fibres e.g. modal and silk. Current market trend may lead to meager 1-3% annual value growth and
the market is expected to be US$310 million by 2010.

Table linen is the smallest segment in the home textiles and is dominated by contract sector, with hotels
and restaurants being the important end users. The market has seen sourcing products from India and
China.

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Home Textiles - Global Vs Indian Market

Indian Market
The Indian Home Textiles Industry has access to excellent infrastructure facilities and uses the latest
technology and machinery. Many manufacturers have set up state-of-the-art processing houses to roll out
large volumes of high quality products to meet the international market demands and expectations.
Needless to say that India’s textile exports have grown exponentially over the last decade. Major
organised players in home textiles segment are putting all effort to climb up the value chain in export
market, although domestic market for home textiles is not far behind. Demand for housing has increased
the home textiles market in India. With increase in hygiene and fashion consciousness, the need for better
quality home textiles has increased within the country.

While Indian market is flooded with lots of bed linens, table linens and towels from various
manufacturing centres, trend for branded high value items is changing. Growth of retail chains has also
increased the demand for private labels and many organised industries are tapping this market potential
along with own retail chains. Branding in home textiles market is a big exercise; however all major
companies are opening up chains of retail outlets in major cities.

New Trends in Home Textiles Markets

Home textiles have emerged as one of the most dynamic and promising segments in the global textile
industry and functional fabrics with stretchable, thermally adaptive, stain protective and fragrance
encapsulating properties have gained thumbs up from end consumers. Odour-free home textiles are the
new trend in market and functionality has become a new force of competition in the home textiles
market. These days, the designs and colours of home textiles match the changing seasons, there is creative
use of new themes like “Women’s Freedom” and soft and fresh touch is given to make the living
environment more cheerful and colourful.

The bed range adds richness and elegance to the whole environment and an innovation in the bed sheets
is the colour co-ordinated sets with a combination of abstracts and florals. Designers’ choice is now
common in the upmarket home textiles in India. The kitchen and table linen range uses natural fabrics to
add a bright splash of colour to the kitchen and dining room.

Five years ago, Indian textiles market was characterised by the unorganised sector catering to the home
decor markets with limited exposure in terms of products and reach. However, now the focus has shifted
to incorporate the latest fashion trends and contemporary styles in home textiles products so that
customers never run out of choice. In-house design studio consist of a team of highly-qualified and
experienced designers and professionals who ensure that only the best designs are offered to the
customers. In the Indian fashion landscape, the preference for a subtle mix of traditional yet modern

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Home Textiles - Global Vs Indian Market

designs is unmistakable. Very unique floral designs, which add freshness, colour and vibrancy are
preferred in home decor. The in-house design studio has brought in an innovative combination by
marrying geometric prints to stripes, colour co-ordinated bed sheets, etc.

China Market
Certainly, China has emerged as strong player in the world home textiles market. What about their own
home turf in terms of capacity building in home textiles and market demand?

China's home textile exports are dominated by

bedding, towels, table linen and drapery. Segm ental share of China's hom e
textile m arket
Bedding, the largest line, amounted to US$4.3
billion (estimate) in exports in 2007, Table Linen
6%
accounting for 53% of the overall sales in Drapery
17%
2007. This figure excludes quilted products. Bedding
53%
The second largest export category, towels, Towels
24%

rose to US$2.1 billion, clocking a 20% growth

rate. Drapery exports amounted to US$1.6
billion, increasing 40%. Table linen raked in Source: Emerging Textiles.com

US$642 million worth of exports, growing moderately by 21%. Exports from China are projected to
exceed US$9.5 billion by the end of 2008, increasing by a robust 15% over 2007.

The home textiles industry in China is composed of more than 3,000 small, midsize and large suppliers
producing bedding, drapery and towels. Irrespective of the size, majority of the companies make bedding
products, with most offering both quilts and bed linen and some focusing on one or the other.

Suppliers that manufacture quilts can also produce bed linen, but those specializing in bed linen do not
necessarily offer quilts. This is because quilt production requires specialized machines for cleaning,
stuffing and quilting. Makers producing quilts usually also offer similar products such as pillows and
cushions.

Very few companies focus on drapery, and even fewer specialize in table linen. Most suppliers have one
or both of these product categories as their secondary lines and bedding as their primary line.

Makers offering towels usually specialize in the line, but some large companies offering multiple types of
home textiles have separate factories dedicated to the product. The few small and midsize companies that
offer towels as their secondary line usually subcontract production or dedicate a small portion of their

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Home Textiles - Global Vs Indian Market

factories to it. However, most of these makers might not be able to provide the expertise that towel
specialists can offer.

Growth Boomers
Real estate prices are also playing a role. The real estate boom that has been going on in first tier cities
across China for the past few years is spreading into second and third tier cities. Beijing has seen a second
peak in real estate prices due to the Olympic Games. Interior design and soft interior design are becoming
increasingly popular as house fees go up, with more money being spent on the interior to further increase
the value.

Already about 100 new brands have emerged onto the Beijing Home Textile market recently, covering
different customers’ needs and consumption ability. The most famous brands are ones in the luxury or
mid-quality class whose products retail in shopping centres and specialised shops. Other popular retail
outlets are supermarkets and wholesale markets, which generally offer slightly cheaper products.

The following are some of the trends we see in China's home textiles export industry:

- Embargoes on exports to the EU will not really affect the industry, as the region accounts for only 14%
of total home textile exports from China. However, limits on shipments to the US, China's top export
market for home textiles, could slow the industry's growth rate.

- Many China makers have started shifting emphasis to alternative markets in anticipation of the export
restrictions. Shipments to Japan and Australia, therefore, should rise in the next 2-3 years. Some
companies have also started to increase sales in the domestic market.

- Capacity expansion will be prevalent in 2008 and it is expected to be between 20-50%

- Although OEM orders will continue to dominate production, many suppliers will enhance their in-
house R&D capability in order to distinguish themselves from other makers.

- Suppliers will use more environment-friendly materials and functional fabric, especially for bedding and
towels. These include antimicrobial, hypoallergenic and nonflammable fabric, and those made of natural
fibers such as soybean. This is keeping Japan in view, where China has captured a good market share.

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Home Textiles - Global Vs Indian Market

Outlook
 Usage of organic cottons would increase
 In hospitality and contract market, functional fabrics like active wear apparels are going to be
more in demand
 Fast growing contract market is witnessed in the hotel and health services sector in UAE. Other
growth markets include the US and Eastern Europe.
 In China, hospitality sector has grown rapidly due to the recently-concluded Beijing Olympic
Games
 In India too hospitality sector looks optimistic with the current tourism boom and forthcoming
Commonwealth Games
 Medical tourism and spas are going to be key growth drivers in high-end home textiles items in
India
 New furnishings for commercial settings like upholstery materials with sound absorption quality
(plush fabrics with different thickness and jacquard fabrics, etc).
 Contract home textiles used in commercial or public environments (contractors are companies or
public institutions) is a new growth area for demand