Global Fashion Agenda has been selected as an official Nominator for The Earthshot Prize 2022.

Launched in 2020, the Earthshot Prize is the most prestigious and ambitious global environment prize in history, designed to incentivise change and help repair our planet over the next ten years.

The Prize is scheduled to take place annually until 2030, each year awarding one-million-pound prizes to five winners with solutions in-line with five ‘Earthshot’ goals: Protect and Restore Nature, Clean our Air, Revive our Oceans, Build a Waste-Free World and Fix our Climate.

Among the 300+ nominators in 80 countries, Global Fashion Agenda is one of only a few fashion-focused not-for-profit organisations that were selected. As an official Nominator, the organization will identify the most notable solutions to be potential Earthshot Prize winners, playing a pivotal role in a truly global network.

Global Fashion Agenda will utilise its extensive sustainability network to seek out inspiring, inclusive, and impactful innovations and projects to nominate.

The Mumbai launch of GartexTexprocess India and Denim Show will take place from May 12 – 14, 2022 at the Jio World Trade Centre in BKC, Mumbai. This year, the show will focus on its Fabrics and Trims’ segment along with the co-located Screen Print India exhibition.

GartexTexprocess India will offer the industry a platform to bring forth industry innovations, hold creative and collaborative discussions with potential buyers and leverage the textile industry’s strong professional network. Innovative products and technologies, defining latest trends in the industry, will be showcased to the visitors through focused concurrent platforms such as Denim Show, Fabrics & Trims Show and Screen Print India during the three days.

While the focus segments under GartexTexprocess India will draw attention to innovations in garmenting and apparel machinery, Screen Print India will track technological advances in digital textile and screen-printing technologies expanding the machinery showcase. Owing to rapid technological changes, leading brands will conduct live demos of their latest technological offerings in screen printing, digital sublimation, heat transfer and textile printing, garment decoration to potential business visitors and traders.

Jointly organised by Messe Frankfurt Trade Fairs India and Mex Exhibitions, the platform will also host a series of insightful sessions on the latest developments in textile, garment machinery and screen printing with the objective to encourage investments, new market development and enable India to be a globally competitive textile manufacturing destination.

Drafted by the Union Textile Ministry, the new Technology Upgradation Fund Scheme, will incentivize textile machinery manufacturers also, says Upendra Prasad Singh, Textile Secretary. The scheme will replace the existing Amended Technology Upgradation Fund Scheme (ATUFS). The new scheme will include the spinning sector and the machinery manufacturers. It will be approved by March this year with fresh allocation of funds, adds Singh.

The textile industry will also be allotted additional Rs 11,000 crore benefits through the Rebate of State and Central Taxes and Levies Scheme and Remission of Duties and Taxes on Exported Products scheme. It will also approve the Silk Samagra II scheme for the integrated development of the silk sector with substantial budget allocation or Rs 875 crore for next fiscal. The Production Linked Incentive Scheme is also likely to see more investments as the government has extended concessional tax of 15 per cent for new manufacturing units that start production before the end of March 2024.

In 2021-22, textile and clothing exports are likely to cross $40 billion as against the target of $44 billion, says Singh. Apparel exports are also expected to increase during the year, he adds.

In Q2 FY 2021-22, listed textile manufacturers in Bangladesh logged a staggering 152 per cent higher profits year-on-year. Analysts attribute this to higher yarn prices, unexpended stocks of cotton, higher exports and devaluation of the local currency against the dollar. Total profits of the 44 companies rose to Tk 250 crore during the quarter from Tk 99 crore in the same period of the previous year.

Exports of the garments sector rose after the pandemic with all related sectors showing growth in their profits, says Shah Alam Miah, Company Secretary, Matin Spinning Mills. In 2021 calendar year, Bangladesh imported 8.5 million bales of cotton, spending more than $3 billion. One bale equals 480 pounds or 218 kg. Around Tk 600 crore was invested in the spinning sector to set up 26 new mills last year, according to Bangladesh Textile Mills Association (BTMA).

Among the 44 textile and garment companies, 25 saw higher profits in the last quarter. Five returned to profits from loss and 14 logged lower profits, the data shows.

Leaders of Bangladesh's apparel industry, believe, the new bill passed by New York may raise the cost of their business which needs to be compensated by fair prices. A major destination of global fashions, New York has introduced a bill that aims to make apparel retailers and makers disclose detailed information on environmental and social practices, including workers' wage and carbon emissions, at all levels of the global supply chain – from raw material sourcing to finished products.

Titled, ‘Fashion Sustainability and Social Accountability Act, the bill would require suppliers to the US fashion industry to disclose the source of their products. The bill compel suppliers to resort to responsible sourcing , says Rubana Huq, Former President, BGMEA. They would have change their product type, amend pricing structure and adopt sustainable business practices, she adds.

Faruque Hassan, President, BGMEA, the bill will increase the cost of business for exporters. Dr MA Razzaque, Chairman, Research and Policy Integration for Development,, adds the new law will not create problems for countries that have good documentation systems in the supply chain. According to The New York Times report, companies would be given 12 months to comply with the mapping directive, and if they are found to be in violation of the law, they would be fined up to 2 per cent of their annual revenues.

Noting a 24 per cent jump in its Q3 sales, Michael Kors owner Capri Holdings has raised its full-year outlook, extending a string of strong performances from luxury goods companies as demand for high fashion soars. The company now forecasts fiscal 2022 revenue to grow to $5.56 billion, compared to its prior estimate of about $5.4 billion. It lifted its full-year profit per share forecast to $6, from its prior estimate of about $5.30 per share.

In the third quarter ended December 25, Capri Holdings’ total revenue rose to $1.61 billion on account of higher prices and fewer promotions. The higher prices also helped expand the company's profit margins amid soaring shipping and manufacturing expenses. Capri also projects fiscal 2023 revenue to reach about $6.1 billion, above analysts’ estimates of $5.97 billion. The global fashion luxury group, consisting of iconic brands is an industry leader in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and apparel as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products.

The company aims to continue to extend the global reach of our brands while ensuring that they maintain their independence and exclusive DNA.

Dhiraj R Shah, Chairman, SRTEPC, has welcomed the Union Budget 2022-2023 as a growth-oriented and futuristic one. It focuses on four important pillars of the Indian economy: manufacturing productivity, financing investments, climate action and PM Gati Shakti Plan. Shah says, the allocation of Rs 105 crore for FY23 towards the Raw Material Supply Scheme and the duty-free availability of trimmings, embellishments, labels, etc will boost export of value-added items like made-ups, etc.

The imposition of 7.5 per cent import duty on knitting and weaving machines will encourage the textile engineering segment to manufacture more state-of-the art textile machineries within the country in line with the ‘Make in India,’ AtmanirbharBhart, initiatives of the government, he adds. The review of customs exemptions and tariff simplification for certain items including fabrics will simplify customs rates and tariff structure particular for sectors like chemicals, textiles and metals, and minimise disputes, he adds. Shah also welcomes the rationalization of customs duty including the ad valorem tax and specific duty as being helpful to the industry in the long term.

Welcoming the Union Budget 2022-2023, T Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) says, it aims at inclusive growth for new India and will help spur GDP growth to 9.2 per cent, highest among all large economies. T Rajkumar also hailed the 8.1 per cent increase in Budget allocation for textile sector to Rs 12,382.14 crore and the allocation for procurement of cotton has been increased by 9.5 per cent to Rs.9,243.09.

He also appreciated the increase in allocation for ‘Textile Cluster Development Scheme’ by 73.4 per cent to about Rs.478.83 crore in 2022-23. He reiterated the Production Linked Incentive (PLI) Scheme and PM Mega Integrated Textile Region and Apparel (PM MITRA) Scheme too saw an allocation of Rs 15 crore each for 2022-23. The government has allocated Rs 105 crore for 2022-23 towards “Raw Material Supply Scheme” which has already been approved for implementation during the period 2021-22 to 2025-26.

Welcoming the PM GatiShakti National Master Plan, T Rajkumar said, the scheme encompasses the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency. He also appreciated the steps taken for the extension of Emergency Credit Line Guarantee Scheme (ECLGS) up to March 2023.

Driven by a soaring demand for secondhand luxury goods, the resale market reached a value of $37.45 billion by the end of 2021, say analysts at Bain & Co, a management consulting firm. Analysts also attribute the growth in secondary luxury market with a rise in supply from an expanding area of players in the segment. The resale market offers brands and investors an opportunity to extend the lifetime of their products and reinfornce their commitment to sustainability, says Claudia D’Arpizio and Federica Levato, Analysts, Bain & Co.

Access to entry level buyers

Secondhand sales also offer brands an additional distribution channel, says a report by The Fashion Law. It enables brands to access entry-level luxury spenders as well as buyers of low-priced and licensed products. Luxury consumers also benefit from the network-based nature of luxury retail and its capacity to give brands a richer, data-led understanding of young consumers’ behavior. Resale brands like Alexander McQueen have partnered secondhand luxury marketplace Vestiare Collective for its ‘Brand Approved’ program. Gucci, meanwhile launched the Vault initiative to curate and offer up a selection of pre-owned items.

Concerns driving brands to resale

Though many luxe brands are looking at resale, the sector still faces many issues, say Bain analyst. These include: getting a suitable value for products; dealing with operational complexities like authentication; start-up stock and margins; introducing a successful branding strategy; widening customer base and ensuring correct pricing of resold products. These are some of the concerns driving brands to the resale market.

Few brands are also partnering pre-owned market players. For instance, Kering and shareholder Groupe Artemis have invested in resale companies like Vestiaire, Grailed, and GOAT; Chanel acquired Farfetch, which has a resale arm and venture of its own.

Rising 65 per cent from 2017, the luxury resale market has reached over €30 billion. Addressing the above issues can help brands sustain this growth momentum and outpace demand for new products in the luxury segment, adds the report.

In an unusual trend, US textile and apparel imports surged almost 31.1 per cent in November 2021. Most of this growth could be attributed to strong demand and holiday season. It could also be a result of the combined effects of price inflation and late arrival of goods due to shipping crisis, says a CCF Group report. The import volume of US textiles and apparels surged 32.6 per cent year-on-year to 9.05 bn sq. mt during the month. Compared to November 2019 also, growth volume was much larger while value was lower.

While the import volume of US textiles and apparels surged 31.9 per cent to 85.34 billion meters from January to November 2021 their value growth was relatively lower at 15.9 per cent compared to the same period in 2019.

China’s shipments to the US decline

A silver lining amongst dark clouds proved to be US’ declining imports from China. Compared to 2019, US’ imports from China decreased 15.9 per cent during period. This also led to a decline in the unit price of US textile and apparel from China. Till 2018, US’ imports of textile and apparel increased steadily. However, the Sino-US trade war in 2018 slowed imports, with shipments from China declining sharply. In H1, 2020, imports shrank sharply due to the pandemic though they recovered gradually in the second half.

In 2021, Covid led disruptions and shipping crises made US’ textile and apparel imports volatile. Imports rebounded during the first half of the year due to a rising demand while their growth rate declined in the second half.

Rising labor costs impacts China’s export share

China continued to be an important sourcing destination for US companies in 2021. Sino-US trade war increased the cost of textile and apparel trade between China and the US. Yet, clothing brands continued to opt for China due to its stability. However, in 2022, labor costs are rising, compelling brands to move their sourcing bases to other Asian countries. This is causing a gradual decline in China's market share from nearly half before 2018 to slightly above 40 per cent. On the other hand, the market share of India, Turkey and even the EU (27) countries are increasing significantly this year.

China’s textile and apparel exports are also affected by the ban on Xinjiang cotton by the US. The finalization of the RCEP in 2022 may prove give slight respite for China’s textile and apparel exports in 2022. However, domestic mills continue to face challenges.