Industry Voices: Mill Execs on the State of Denim
Along with the rest of the apparel industry, denim has recently faced some ups and downs due to economic fluctuations and changing consumer behavior. For a window into what is happening on the ground, Carved in Blue is catching up with industry figures—including executives at mills and consultants—to get their perspective.
Here, denim manufacturing leaders from Bossa, Tejidos Royo and Naveena Denim Ltd. weigh in on what they are seeing and the path ahead for the category.
Besim Ozek, strategy and business development director, Bossa (Turkey)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Besim: I am not sure about the denim market all over the world, but specially Bossa is performing very good. First and second quarters of 2023 was so good. We had the best production and shipment performance of Bossa. I hope that the rest of the year will be the same.
Almost all the Turkish textile industry had some positive effects during the “crazy” container prices. Turkey had increased the sales in the European market during this period. Bossa continued to perform good after the normalization of container prices and the value chain.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Besim: It was good. We got a wide range of customers all around the world. We performed very good.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Besim: Denim is flat. “Denim lovers” do not want to wear anything else. The challenge is “denim lovers” are getting older day by day.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Besim: I think this is the biggest challenge for the denim industry. “Denim lovers” are mainly Gen X and baby boomers. Millennials are preferring more comfortable, relaxing garments. Sweat suits, yoga pants, leggings, athleisure garments are more popular with the millennials for sure.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Besim: The denim industry had noticed the sustainability first compared to the other industries. I believe that denim industry sustainability solutions had inspired the rest of the textile industry. For example, the denim industry first started post-consumer recycled fiber usage in big quantities.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Besim: Circular denim production and supporting post-consumer denim could be a solution.
In order to be a part of this system, the consumer returns back their old denim pants to the brand. The customer gets some benefits from the brand for the next purchase. The brand resells the old denim pant in the secondhand shops, repairs it or if it is badly torn, recycles it to fiber.
A circular system just like this should be built in the near future. Denim is the most convenient industry in textile.
Jose Royo, sales director, Tejidos Royo (Spain)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Jose: Denim will always be denim. Now it is not the strongest trend in the market, but still the strongest fabric on earth. The biggest problem is too many fabric suppliers killing the price. Everything is possible—just ask for it.
Not everything should be volume. We need to create special denim, otherwise you have the actual problem: Everything looks the same. Creativity is disappearing and price is the driver. I hope a brand will break all this very soon.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Jose: Consumers are spending less money on textiles. With the high inflation, people need to pay for food and energy, and garments are a second (or third) priority. It is not an easy moment for anyone.
I do believe things are going to change, inflation will go back to normal and the world will turn again. Sadly, it all depends on the war, and it does not look too good. But humans have a great power of recovery.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Jose: At the moment, down. Colors are trendier. We need to add happiness in our lives, and colors help to do so.
But as I said before, denim will always be denim and will remain strong.
I have no idea what next year will be like. We are at a very strange world situation.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Jose: They have less money. They are comfortable with fast fashion and it is going to be difficult to change to slow fashion. They have to decide to buy an expensive garment that is sustainable, recycled, etc. versus two or three cheap garments. I do believe the youngers are more into the sustainable trend, but they are really tight with the money they can spend. It is quite a conflict. They will love to wear a recycled garment for many years, but most of them cannot afford it.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Jose: The industry is trying to cope with the sustainable trends, but there is too much greenwashing and somebody needs to put some order into all this mess. How is it possible that everybody is using organic, regenerative, recycled? Governments should take action and decided what is correct and what is not. If we depend only in accreditations, it will be a money business. It is not politically correct, but it is the truth. No company should be making money off the standards that the industry needs. They should make money on testing and controlling, not confirming what is good or bad.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Jose: Nothing, trends are always there. Today is down and tomorrow will be back up. That’s the great thing about fashion, creativity, unknowns and mystery. Let’s leave it uncertain; people will create the change.
Rashid Iqbal, executive director, Naveena Denim Ltd. (Pakistan)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Rashid: The denim market is presently experiencing notable disruptions due to adverse factors such as global recession, inflation and shifts in purchasing power. As a result of these challenges, the denim industry is witnessing a gradual decrease in its performance.
The current market decline is attributed to two factors: surplus inventory and the rise of non-traditional “non-denim” trends. The lasting impact of Covid-19 created industry gaps. The concept of “revenge shopping” caused rapid sellouts. The industry seized this opportunity to ramp up denim production, leading to surplus inventory, which unintentionally harmed the industry despite the initial intention to boost production and turnover.
The non-denim trend gained attraction as consumers favored creatively colored jeans, prompting a shift away from traditional indigo denims.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Rashid: Well, I am optimistic about denims as we have seen an upsurge in consumers’ trust and the buying behavior. I can say that denim is back on the rack. We’re witnessing multiple denim fashion shows lighting up the runway with their amazing collection, and influencers endorsing denims.
Denim is definitely getting all the attention it deserves. Furthermore, consumers are now enjoying the denims they desire, enriched with innovative features and designs that cater to their preferences.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Rashid: Regardless of the season, fashion’s obsession with denim never fades, as denim stands as a sole and consistent trend. Looking ahead, the consumer interest in denims looks promising. The industry’s focus on innovation, sustainable practices and catering to diverse consumer preferences is likely to sustain and even further boost consumer interest in denim.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Rashid: The consumer behavior of Gen Z differs notably from that of millennials, Gen X and baby boomers. Gen Z tends to gravitate towards denim that reflects their values of individuality and sustainability with an eco-conscious mindset, leaning towards minimal and relaxed fits for all-day comfort. Meanwhile, millennials and baby boomers are drawn to authentic, timeless fits, characterized by a variety of washes and vintage aesthetics.
Retailers must curate offerings that cater to the diverse preferences of each generation, from sustainable and vintage choices for Gen Z, to a blend of classic and contemporary for millennials. Gen Z are happy to pay some extra amount on a pair of jeans if they know it’s sustainable, while for millennials, brand names hold a greater significance.
The key lies in understanding and accommodating the requirements of each generation to create a denim retail experience that resonates powerfully with all.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Rashid: The diverse expectations within different demographics drive the denim industry to offer a variety of products. The industry’s response to this dynamic landscape is characterized by its effort to strike a balance, ensuring that all denim enthusiasts find their perfect pair of denim. The brands and mills are working on innovative products, styles and washes that cater to the consumer demands.
However, the denim journey encounters challenges along the way. The industry still needs to enhance transparency within its supply chains and prioritize the ethical manufacturing of denim products. The denim industry recognizes and aims to address these concerns to align with consumers’ growing demand for sustainability and ethical practices.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Rashid: In my opinion, I would highlight three things: analyze, innovate and transparentize.
The first involves examination of market trends that covers almost every aspect of denim manufacturing to resonate with changing consumer preferences and trends. The second focuses on innovative and groundbreaking technologies—sustainable materials, washdowns and styles.
Lastly, and the most significant, is the aspect of transparency. The consumers of today are more vocal and concerned about the pair of jeans they are buying. They are not only interested in the appearance and quality of the jeans, but also in the values, ethics and impact associated with the product. By prioritizing traceability in every process, from sourcing materials to manufacturing and beyond, the industry can bring more share in its wallet.