The SS23 edition of Copenhagen Fashion Week will focus on menswear and feature brands like Jade Cropper, (di)vision, The Garment and A Roege Hove, PLN, Latimmierand OperaSPORT.

New brands BernerKühl and Sunflower will participate alongside schedule stalwarts Soulland, Martin Asbjørn, Schnayderman's and Wood Wood, as well as last season's Zalando Sustainability Award winner, Iso.Poetism by Tobias Birk Nielsen. This is matched by Holzweiler, HenrikVibskov and Mark Kenly Domino Tan who shall be presenting menswear within their collections for the season ahead.

With an aim to present the best of the Nordics, Ganni will be back physically for August, alongside the highly anticipated continued presence of Saks Potts, Helmstedt, Rotate, Skall Studio, Stine Goya, Hope, Baum und Pferdgarten, Lovechild 1979, Gestuz, Munthe, RabensSaloner, SamsøeSamsøe, Remain and Rotate.The Royal Danish Academy will present the MA collections of their graduating class.

This season, CPHFW will also include Hungarian brand Aeron to the schedule, bringing their international perspective and Nordic synergies to SS23.

Global leader in home textiles, Welspun India has received ‘Strong’ rating in the Sustainability Yearbook 2022, released by CRISIL, an S&P Global company and leading rating agency in India. As per a Business Wire India report, the ratings were based on analysis of ESG efforts of over 575 companies across 53 sectors by CRISIL Welspun India topped among the textile companies with the highest scores in all three dimensions of Environment, Social, and Governance.

Dipali Goenka, Joint Managing Director & CEO, Welspun India says, the company has always embedded ESG and circularity in every facet of its operations, setting benchmarks for the industry as a whole. Earlier this year, Welspun India was awarded with the 1st rank by the Union Ministry of Jal Shakti at the National Water Awards for its water stewardship and state-of-the-art 30 million litres per day sewage treatment plant at Anjar in Kutch. The company also baged the Jury Special Mention Award for its STP to recycle and reuse domestic sewage at the Frost & Sullivan and TERI’s Sustainability 4.0 Awards 2021, which honored companies embedding Sustainability with Economic Value Creation.

The consolidated net profit of textile brand Trident grew 137.1 per cent to Rs 181.25 crore in Q4 FY’22. Operations revenue from grew 39 per cent to Rs 1,869.85 crore during the quarter. Trident reported a 150.8 per cent Y-o-Y rise in consolidated profit before tax at Rs 244.26 crore in Q4 FY22. The company's operating margin grew to 21.67 per cent in quarter ended March 2022 as compared to 20.7 per cent as of March 2021.

On full year basis, the company’s consolidated net profit jumped 173.9 per cent to Rs 833.74 crore as net sales rose 54.5 per cent to Rs 6,997.66 crore durng the financial year ended March 31, 2022 over the financial year ended March 31, 2021.

The board of directors passed a resolution to raise funds and further recommended enabling resolution for approval of shareholders for an amount not exceeding Rs 500 crore by issue of non-convertible debentures (NCDs) by way of public or private offering, in one or more tranches. A vertically integrated textile (yarn, bath & bed linen) and paper (wheat straw-based) manufacturer, Trident is one of the largest players in home textile space in India.

Contrary to the forecasts of Ministry of Industry of the 10.44 per cent growth of the apparel industry and 0.95 per cent of the textile industry, the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) has predicted the textile and textile product (TPT) industry will grow 12.45 per cent on an annual basis in the first quarter of 2022. According to Redma Gita Wirawasta, Chairman, APSyFI, growth in the first quarter of 2022 was driven by domestic sales due to Ramadan 2022. However, Wirawasta believes growth will not continue in the second quarter of 2022.

Wirawasta attributes this to the opening of the textile import faucet for general importers or API-U.This step is strange because national textile manufacturers have proven they can supply the needs of the downstream textile industry since mid 2021. In addition, textile industry players have made investments to increase their production capacity. However, the restrictions on imports leads to lobbying by textile importers to the government to open the textile import faucet, he adds.

Suleman Chawla, Acting President, Federation of Pakistan Chambers and Industry (FPCCI) has urged the government to reduce customs duty on polyester filament yarn imports to 7 per cent from the current 11 per cent to enable textile manufacturers to use synthetic fibre during production. As per a report by the Tribune, Chawla urged the government to levy the same withholding tax at import stage for both manufacturers and commercial importers of polyester filament yarn.

Reduction in customs duty will encourage the industry to move away from cotton towards synthetic fibers, Saad Ziker, Analyst, Topline Securities explains. Chawla also emphasized on the abolition of 3 per cent value added tax at import stage on commercial importers of polyester filament yarn to make the raw material affordable for the textile industry. Ali Asif, Textile Analyst, Insight Securities termed duty reduction as an untimely decision as the government is trying to cut current account deficit. However, reduction in levies on synthetic fibre may boost textile exports in the long run, he added.

The relaxation in two-month long lockdown in Shanghai has relieved hosiery manufacturers in Ludhiana as they source over 80 per cent of their raw materials for winterwear production from Shanghai. Winter wear production in Ludhiana had halted to zero due to the lockdowns in Shanghai, says Sudarshan Jain, CEO, Apparel Manufacturers Association.

The lockdown also led to 25 per cent rise in winter wear costs in Ludhiana as manufacturers in the city are heavily dependent on Shanghai for raw material. The lockdown delayed raw material orders till July, hitting supply of the final product and increasing its prices. Shanghai imposed a city-wide lockdown on 25 million residents on April 1 to curb the COVID-19 spread. Authorities imposed harsh measures that caused widespread public anger over issues such as crowded quarantine centres, difficulties in accessing food and loss of income.

However, the two-month-long lockdown will be lifted from June 1, with private cars including taxis being allowed to ply back on to the roads and people being able to move freely in and out of low-risk housing compounds.

To maintain its competitiveness, China's textile and apparel sector plans to develop innovative fibers and focus on sustainable production while expanding its reach to markets covering the regions included in the Regional Comprehensive Economic Partnership agreement.

China’s textile and garment exports are currently under tremendous pressure owing to the ongoing Russia-Ukraine conflict. Uncertain global economic recovery and geopolitical issues have impacted growth, points out Sun Ruizhe, President, China National Textile and Apparel Council (CNTAC).

Recurrent COVID surges weakens consumer sentiment

Rising prices of commodities such as crude oil and cotton are impacting profits of MMF and cotton producers in the country. Recurrent COVID-19 waves and global divergence in prevention and control measures have weakened industrial production and logistics, affecting market confidence and consumer spending.

Covering 15 countries across Asia-Pacific, the RCEP agreement will facilitate a more comprehensive and deeper cooperation amongst industry leaders. It will protect the industry against the current economic and trade risks besides creating strategic value for the diversification of industrial and supply chains. Over 94 per cent textile and garment products from China will enjoy zero tariffs under the RCEP framework after a certain period. The number increases to over 95 per cent for textile and garment exports from other members to China.

Textile industry growth to slowdown in H1FY’22

China’s commitment to reduce tariffs, accumulative rule of origin and trade liberation and facilitation measures will enable it to strengthen ties with other countries such as Japan. The country reported 11.1 per cent rise in textile and garment exports to $72.25 billion in the first quarter, reveals CNTAC. Weak demand and supply chain issues will slowdown the industry’s growth in the first half of the year.

And as Sun Ruizhe, President, CNTAC says, the US Congress passed the H.R.6256 bill in December 2021 to prevent goods produced in China's Xinjiang Uygur autonomous region to be imported into the country, this move hit China’s cotton textile and garment exports.

New categories and brands emerge

CNTAC and its member companies have achieved significant breakthroughs in the development of new fibers, sustainable production and upgrading textile machineries. The rise in platform and content economy is leading to the development of traditional and new brands. Emergence of new categories is also facilitating the launch of new brands.

Besides integrating digitization in industrial development, China’s textile and garment companies will focus on developing new markets via new technologies and the country's dual-circulation development pattern.

Accounting for 54 per cent of China’s total exports, US, Association of Southeast Asian Nations (ASEAN), European Union and Japan were its four biggest export markets, reveal General Administration of Customs, China stats. Many domestic manufacturers benefitted from design, equipment and integration of the upstream and downstream industry chain despite facing fierce competition from rivals in Southeast Asia since the second half of 2021, affirms Deng Lijun, Chief Analyst, Northeast Securities.

The need to preserve their image and drive full-price sales is encouraging major luxury players like Prada and Kering-owned Gucci to find new ways to control discounts offered to consumers. As per a Business of Fashion report, luxury players are slowly phasing out end-of-season sales in their boutiques. They are also staying away from discount-prone wholesalers. Luxury retailers Gucci and Kering are urging brands to either transform to a concession model or pull out altogether.

Bridge, premium and sportswear brands including Ralph Lauren, PVH’s Calvin Klein and Nike are also planning to limit their discounts. They are being increasingly pressured by consumers and government regulators in markets like France to end the practice of discounting and destroying unsold goods.

Sustainable disposal of excess inventory

Off-price sales of brands are on a rise currently as they help clear unsold inventory. These sales are expected to continue growing from 2025 to 2030, revealed an April report from McKinsey.

Discounts help brands sell excess inventory in a sustainable way, as per a report by McKinsey & Co. Further digitalization of retail segment is expected to boost discounts by brands in future. The report states, online discounts in Europe are expected to increase 13 per cent annually from 2021 to 2025.

One such emerging discounter in the online segment includes the Munich-based BestSecret which reported 53 per cent sales growth to €943 million ($1.02 billion) in 2021. The online brand is known for its investments in foreign markets under owner Permira, the private equity fund that also owns Golden Goose and Reformation.

BestSecret sells sneakers from Bottega Veneta loafers at 70 per cent discounts. Givenchy logo cardigans and Adidas workout gear are sold only to registered members having a unique referral code. None of the brands or products sold on BestSecret are tagged for Google and other search engines. Advertisements for the site also do not mention the brands that manufacture them by name.

BestSecret sources 95 per cent products directly from brands, says Jason Visse-Demortier, Chief Supply Officer. The company plans to transition major brands to a concession model to access a deeper range of items and sizes, Visse-Demortier says.

Physical retailers step up luxury investments

With more online retailers taking the discounts route, physical retailers are stepping up investments in the luxury segment. One such retailer, Value Retail, which faced a downfall in last couple of years, is on track to resurge to 2019′s pre-pandemic levels this year. The retailer’s physical outlets help prevent cannibalization of full-price sales, says Scott Malkin, Founder and CEO, Value Retail. They also help brands control prices, selection, and client’s shopping experience, he adds.

British brand Burberry has often been criticized for resorting to discounts to boost sales. The brand’s reputation as an online retailer complements its significant exposure to physical outlets, explains Aurélie Husson-Dumoutier, Analyst, HSBC. Looking at the advantages and disadvantages of both online and offline discounts, luxury brands need to explore both opportunities. They need to find new ways to increase online discounts — without damaging full-price offerings and brand equity.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, and the Central America – Dominican Republic Apparel and Textile Council (CECATEC), the main apparel and textile group in the region, sent a letter to Kamala Harris, Vice Presidentoutlining critical issues, such as upholding strong rules of origin in the US free trade agreement with the region and maintaining China 301 tariffs on finished apparel imports, ahead of the Summit of the Americas taking place in Los Angeles next week.

NCTO leaders thanked Harris for her leadership in helping drive more investment to northern Central America and for the Biden administration’s commitment to strengthening the economic partnership forged between the United States and the region, which supports 1 million collective textile and apparel jobs.

The 30 largest listed fashion firms must do more to hit Paris Climate Accord Targets and UN sustainable development goals, although some are improving their social and environmental credentials, says Sarah Kent, Chief Sustainability Correspondent, The Business of Fashion.

Fashion brands face increasing pressure from consumers, particularly younger ones, and governments to show they are doing better on environmental issues.

Though a few front runners are making small steps, however, the industry is largely underperforming, adds Kent.

In its second report, the Business of Fashion Sustainability Index 2022 analyzed publicly-disclosed information on environmental targets and policies, including workers’ rights, in three categories - luxury, sportswear and high street fashion.

Puma was ranked highest, scoring 49 points out of 100, followed Kering , last year's leader, Levi Strauss , H&M Group and Burberry.

The report said companies could lose their cultural relevance and destroy long-term value by failing to act.

The companies’ overall scored highest for progress in reducing emissions out of the areas assessed in the report, but they scored worst in reducing waste.