Clean Clothes Campaign launched its new initiative: Good Clothes, Fair Pay on July 19. .The campaign was launched with an aim to collect one million signatures from European citizens to support the European Citizens Initiative (ECI) that urges the industry to pay fair wages to workers. The campaign urges brands and retailers to propose, implement, monitor, and publicly disclose a time-bound and target-bound plan to ensure fair living wages to workers. It urges them to identify risks groups hit hard by low wages. 

The Good Clothes, Fair Pay campaign will run for exactly one year. On collecting one million signatures, the Citizens Committee will discuss the content of the proposal directly with the European Commission. The issue of living wages has become more relevant than ever, Decades of poverty wages render workers helpless in providing basic needs for themselves and families, says Mario Ivekovic, Novi Sindikat, a labor union in Croatia.

Apparel retail has started buzzing again with prices increasing in both India and globally. The apparel and footwear segments in India are growing in double digits with offline retailers’ revenues rising almost 25 per cent this year, as CRISIL report indicates. Encashing on this, Indian apparel retailers are setting up new stores besides exploring new formats. Retailers are increasing their store count by 15 per cent this year, opines Pankaj Renjhen,COO & Joint Managing Director, Anarock Retail. 

Brands expand as sales surge

Apparel retail has so far remained unaffected, despite inflation in fuel and other commodities leading to a price rise across categories. Sales in discretionary segments such as fashion and jewelry, have surged past COVID levels.  A survey by the Retailers Association of India in May 2022 shows, retail sales in India jumped 23 per cent increase in April compared to the pre-pandemic period. Apparel brands including Shoppers Stop and Aditya Birla Fashion and Retail have announced plans to expand their physical store network. Shoppers Stop plans to open 20 small sized stories and 20 beauty stores over the next two years. 

Likewise, Indian Terrain plans to expand in Tier I and III cities. Aditya Birla Fashion and Retail (ABFRL), is also looking to add over 100 new stores of Ethnicwear and Pantaloons annually. 

International brands expand India presence

Meanwhile, many international brands are also opening large-format stores outside metros. Japan’s Uniqlo is now opening new stores in Tier-II cities, while brands like, Zara and H&M have been expanding in other Indian cities. German footwear brand Birkenstock plans to open 25 outlets while Italy’s Pianoforte Group aims to launch 20 stores each of the Yamamay and Carpisa brands.  

Cheap mall space boosting brand expansion

The pandemic has made mall space cheaper by around 20 per cent and the trend is likely to continue in 2022, says Kirti Khosla, Marketing Agent, Pianoforte, which is expanding its Yamamay and Carpisa stores. Similarly, DLF Malls is adding 130 unique brands across its retail and F&B categories in Delhi-NCR. The developer is seeing a heavy demand in athleisure and beauty segment, says Yogeshwar Sharma, DLF Retail - International.

Another trend that’s driving expansion is opening of more stores in Tier-II, III towns.  Tier-II cities such as Indore, Lucknow, Ahmedabad, Jaipur, Udaipur, Chandigarh and Mohali are set to witness supply of close to two million sq ft of Grade A malls space, notes Shibu Philips, Director-Shopping Malls, Lulu Group India.  

Fashion retail surges globally

And not just India, 2022 has been a good year for fashion retailers across the globe. Sales revenues of apparel retail in US increased 36.37 per cent over 2020. Growth continues in 2022 with apparel retail sales surging 13.76 per cent in January to April ’22 to $81 billion, as per OTEXA, reports. 

In fact, the first quarter income of Macy’s, the reputed clothing giant, grew 178 per cent to $286 million owing to its Polaris turnaround strategy. Sales rose 13.6 per cent to $5.3 billion. Similarly, the sales of Abercrombie & Fitch Co grew 4 per cent to $813 million.  Guess saw its first quarter revenue surge 14 per cent to $593.5 million – all thanks to licensing sales and Americas wholesale revenues.. 

Retailers, across the UK, have also witnessed consistent apparel sales growth. Sales of British athleisure brand Gymshark grew 54 per cent to £402 million while British luxury brand Burberry also saw its revenues increase 21 per cent to £ 2.8 billion for the year ended April 2022. 

To boost recovery of China’s cotton market, Beijing aims to buy half a million tons of Xinjiang cotton for state reserves. China’s cotton market has been on decline ever since US announced ban on cotton made in Xinjiang.

Beijing has announced plans to buy between 300,000 and 500,000 tons of Xinjiang cotton, indicates the China National Cotton Reserves Corporation (CNCRC). Cotton will be bought at domestic spot price of below 18,600 yuan ($2,770) a ton, says CNCRC.

Cotton demand declines

Having restocked reserves between December 2020 and March 2021, CNCRC has been witnessing lowered demand for its cotton since its purchase announcement. 

Cotton stocks on Zhengzhou Commodity Exchange have been on a decline since the announcement.

Last autumn harvest season, cotton-ginning mills purchased raw cotton at the cost of around 24,000 yuan per ton, says a cotton mill owner. This years’ purchase at below 18,600 yuan per ton indicates a loss of 6,000 yuan per ton, he adds. 

Labor law causes price decline

 The implementation of the US’ Ugyur Forced Labor Prevention Act is causing a steep decline in the prices of Xinjiang cotton. Lasting for eight years, the act has banned all US imports from Xinjiang which produces around 91 per cent of China’s cotton. In 2021, the region produced 5.27 million tons of cotton. 

Cotton produced in the region is either consumed locally or sold to other provinces to be converted into fabrics or garments for national and international markets. 

The pattern of weak demand continues

Now, with the US ban on Xinjiang cotton, downstream textile manufacturers, especially those that export their produce, are likely to avoid refilling stocks. This is likely to pressurize upstream suppliers in the prices. 

Wu Xinyang, Analyst, China Futures believes, stockpiling only provides manufacturers with limited liquidity, it does not boost prices. It aids processing enterprises increase sales but cannot restructure the pattern of weak demand and supply in the market. Wu says, the US ban will only boost sales of foreign cotton, and more purchases on Xinjiang cotton. 

Refreshing wardrobes has now become more expensive for consumers with apparel prices rising 0.8 per cent in June compared to May and 5.2 per cent year over year, according to the US Bureau of Labor Statistics’ consumer price index. 

In recent times, many apparel retailers including Target, Gap and Walmart announced markdown plans to rid themselves of the unsold inventory. Yet, apparel prices continue to rise, boosting jobs in the labor market. 

Apparel market growth is being driven by consumers return to normalcy, says Kristen Classi-Zummo, Analyst-Fashion Apparel, NPD Group. Retailers’ revenues including Levi Strauss & Co, grew 15 per cent Y-o-Y during the quarter ended May 29. However, revenues of value brands that drive a small amount of the company’s overall sales and are sold by Walmart, Target and Amazon, declined in mid-single-digit from a year ago, says Chip Bergh, CEO.

Walmart reported mixed results during the first quarter of this fiscal. On one hand, the retailer had to mark down some of its clothing items as shoppers curbed discretionary spending; on the other, it could not match demand for apparel from more fashionable and high-brands such as sundresses and tops from Scoop, avers Charles Redfiled, Chief-Merchandising. US apparel sales grew 5 per cent Y-o-U from January to May and 13 per cent over the same period in 2019, affirms Classi-Zummo

Demand for formal wear surges

Demand for formal attire has grown with more Americans are going for weddings or heading to offices, she adds. A few consumers are also buying clothing items not for sale, says Kristen Classi-Zummo. For NPD Group, sales of women’s dresses surged 42 per cent Y-o-Y from January through May. From 2019-levels, sales the growth was 14 per cent. 

Sales promotions to drive down inventory

Change in consumers’ demands impacted retailers who stocked wrong apparel items for example, GAP had stocked fleece hoodies and active clothes. The inventory levels of Abercrombie & Fitch and American Eagle Outfitters also rose 45 per cent and 46 per cent respectively from a year ago as few items did not sell and easing of supply chain delays led to piling of inventory.  To rid themselves of unsold inventory, retailers Walmart and Target launched aggressive sales promotion initiatives. Apparel sales declined 8 per cent in volume against the same year-ago period, as per figures from NPD Group.  This could pull down sales over time, analyst warn. Already, 35 per cent consumers are either buying or plan to buy less apparel, as per a survey by equity research firm Jefferies in June.  Consumers earning less than $100,000 plan to cut back apparel spending. 

Polarization in income groups

Contrary to last year, retailers have had to pass on more of their costs, including increased raw material or transport costs, to consumers. This has led to an increase in the prices of apparel.  The growth in apparel prices is also being driven by higher-income shoppers who still have the means to pay for more expensive brands and clothing items, adds Classi-Zummo. For instance, swimwear priced at or above $100 is witnessing the biggest rise in demand. 

This is polarizing consumers according to their income groups. While consumers with higher incomes continue to drive apparel sales, those with lower-income are deferring purchases, Classi-Zummo confirms. 

Apparel makers are urging European manufacturers of equipment ranging from embroidery machines to textile cutters to bring back production closer home.

Arthur Kitta, Head-Sales-Europe and Africa, Durkopp Adler GmBh attributes this to the desire of factories in Europe, North Africa and Middle East to expand and modernize their units. The sewing machine manufacturer from Bielefeld, Germany, is itself witnessing a surge in demand from the garment sector in and around Europe, as well as the Middle East. 

The pandemic has bled garment supply chain and the situation is yet to improve. Prices of container shipping have increased with deliveries also being delayed. These factors are prompting apparel companies to set up factories closer to demand. With garment customization, the trend for nearshoring has also grown, says Rolf Köppel, Segment Manager-Textiles, Zünd Systemtechnik AG. Companies are looking for technologies to accelerate production in Europe and America besides investing in digital cutting technologies. 

Technological innovations fuelling the nearshoring trend

Rise in the nearshoring is being propelled by innovations in technologies. Machine manufacturers are launching new tools to quicken production. For instance, D3 cutter machines from Zund Altstätten, Switzerland, have two heads to cut the laid-on textiles and are able to cut more textiles in the same amount of time. 

Krefeld-based company ZSK Stickmaschinen GmbH is modernizing its machines. The company showcased embroidery machine at Texprocess that requires a single process to stitch thick sewing threads and thin embroidery threads.  These machines will allow the company to produce garments faster in Germany, says Frank Giessmann, Sales Director-US, ZSK Embroidery Machine

Figures from the German Engineering Federation show, business for textile machinery manufacturers has been recovering since last year. New orders for German machinery manufacturers increased 66 per cent while sales surged 0.1 per cent. Exports of textiles machines from Germany grew 8 per cent to €442 million.

New orders are keeping the textile machinery sector alive after the pandemic-related slump, explains Elgar Straub, CEO, VDMA Textile Care, Fabric and Leather Technologies trade association. However, future outlook for the industry remains uncertain given the rising raw material prices, massive delivery delays and difficult transport conditions. Garment companies are also avoiding investments in new equipment. They are only upgrading their existing machines, adds Giessmann. 

Still, a distant dream

The willingness to invest amongst fashion manufacturers is on the rise. But, they are yet to receive orders, adds Kitta. Textile machinery manufacturers are now betting on nearshoring to boost orders. Nearly 40 per cent of the over 70 supply chain managers of leading companies surveyed by consulting firm McKinsey at the end of 2020 revealed plans to shift to a more local supplier base. However, only 15 per cent actually did so. 

Prominent amongst these is apparel company C&A, which has once again started manufacturing jeans in Mönchengladbach. Nearshoring still appears a distant dream for apparel companies though they continue to buy individual lines in Europe and new technologies in North Africa, adds Köppel. 

Apparel companies face delivery delays

Orders for apparel companies had earlier dropped due to the COVID-19 outbreak. Now, these companies are facing delivery delays. The order backlog at Dürkopp Adler has increased as the company has not been able to increase capacities as quickly due to delays in deliveries, Kitta says. The average waiting time for shipments has now increased to around 12 months from the earlier three months, he rues.

Making Textile and Textile Product (TPT) industry, is one of priority areas in the Making Indonesia 4.0 roadmap. the Ministry of Industry (Kemenperin) aims to use new technologies to produce clothing textiles for more specific needs and increase the competitiveness of the domestic textile industry. Indonesia's modern textile industry commenced operations with the establishment of Textiel Inrichting Bandoeng (TIB) in 1922. It completed 100 years in 2022. At this stage, the textile industry is expected to grow with innovations by adopting new technologies and manufacturing process, says Agus Gumiwang Kartasasmita, Minister of Industry. 

The textile industry is also expected to adopt the principles of a circular economy through sustainable textile and fashion, he adds. The Ministry of Industry continues to strive to improve the competitiveness of the textile industry through various efforts. In 2022, the ministry will continue to provide engine price discounts. Till date, 10 textile and textile industry companies have taken advantage of this program through the Agreement for the Granting of a Rebate Reimbursement (P4H), Kartasasmita adds.

In 2022, the Ministry of Industry will focus on providing incentives to purchase machines for the fabric improvement industry and the fabric printing industry, as well as on machines/equipment with 4.0 technology such as artificial intelligence, internet of things, augmented reality/virtual reality, advanced robotics, 3D printing and machine to machine communication, he notes. 

To increase the competitiveness of the textile industry sector, the Ministry of Industry aims to train and competent industrial human resources (HR), one of which is through vocational education, Kartasasmita adds. 

Parent company of Cone Denim, American & Efird, Burlington, Gutermann and Safety Components, Elevate Textiles has acquired membership of the Textile Exchange Organization a global non-profit driving positive impact on climate change across the textile and fashion industries. The membership will enable Elevate and its brands to accelerate and further expand adoption of preferred fibers. It will guide the company towards a more meaningful production starting at sourcing raw materials and fibers. 

Elevate Textiles currently participates in Textile Exchange’s 2025 Recycled Polyester Challenge. Launched by Textile Exchange and the United Nations Framework Convention on Climate Change’s Fashion Industry Charter for Climate Action, the challenge aims to help initiate a shift in the market toward the uptake of recycled polyester and the reduce greenhouse gases. 

According to Jimmy Summers, Chief Sustainability Officer, Elevate Textiles, the company currently uses Textile Exchange standards at many of its facilities, specifically Organic Content Standard, Recycled Content Standard and Global Recycled Standard.

It looks forward to continuing working with the organization and provide customers and stakeholders with responsibly and sustainably sourced materials possible, he adds.

In a recent meeting with Farque Hassan, President BGMEA, Anne-Laure Descours, Chief Sourcing Officer, Puma has said, the brand is keen to source more apparel products from Bangladesh, especially value-added and sustainable items. As per a Textile Today report, the meeting was also attended by Moyeen Hyder Chowdhury, Branch Manager, Puma-Bangladesh and Asif Ashraf, Director, BGMEA. 

Highlighting the potential of Bangladesh as a sourcing country for value-added sportswear, outerwear, swimwear, activewear and workwear Hassan also apprised Descours about the RMG industry’s increased focus on diversification of products, especially non-cotton and high-end apparels.

The 35th edition of Milano Unica ended successfully with 389 exhibitor companies presenting their A/W 2023/2024 collections of high-end textiles and accessories for menswear, womenswear and kidswear. In addition, the exhibition also held 56 research and innovation areas, taking the total number of exhibitor companies up to 445.

Held from July 12 to 14 in Italy, the event was attended by 4,052 visitors, of which 2,799 Italian and 1,253 from other countries. The event recorded increased participation from the US, with 162 companies attending the event. In addition, there were significant numbers of visitors from Japan Korea and Australia, with 20 companies attending the trade show for the first time, all indications of a positive trend in the markets of the Far East.

Introduced by Alessandro Barberis Canonico, President, Milano Unica, the exhibition opened with a speech by the Minister of Economic Development, Giancarlo Giorgetti, who thanked the entrepreneurs for overcoming the difficulties involved in moving towards innovation. He also emphasized on the government’s intention to support textile and clothing companies in promoting their development and internationalization by supporting the system.

The first trade show to hold an in-person edition, in September 2020, following the delicate health situation, Milano Unica also held its digital edition with the online marketplace, e-MilanoUnica Connect.

The next edition of Texworld Evolution Paris will be held from February 6-8, 2023 at the Parc des Expositions de Paris-Le Bourget. The last edition held in July recorded a 29 per cent increase in visitors and marked the return of foreign buyers. In total, around 3,700 buyers attended the event alongwith international textile and finished product manufacturers selected by  the Messe Frankfurt France team.

Over 3 days, around 3,700 professional buyers discovered 400 exhibitors gathered in Hall 4 of the Parc des Expositions de Paris - Le Bourget.  The event also marked by the return of foreign visitors, whose proportion reached 83 per cent compared to 65 per cent in February. International buyers, particularly from Europe, attended the event in large number, followed by Turkish buyers, Germans, Dutch and Americans. 

Exhibitors from China, India, Korea and Turkey attended the event. The products displayed by The Pakistani weaver Kohinoor Mills, which offers high-quality menswear cotton fabrics in the  Elite area generated many buyers’ interests. Indian embroiderer Veekay International met buyers from nations that are not usually present at European trade fairs, such as Kosovo, Nigeria or Ghana, who placed orders for local markets. 

At the Apparel Sourcing Paris show that was held concurrently, exhibitors also reported numerous contacts, such as the children's clothing manufacturer Raj Krupa Textiles, which had numerous engaging exchanges with buyers. Similarly, womenswear brand Smash Creations met with several European buyers looking for new sourcing opportunities to build a rather high-end offer.