New policies to curb production and disposal of fast fashion are likely to accelerate growth of the US secondhand clothing market. As per the 2021 Resale Report released by thredUP, the market is likely to double in the next five years to $77 billion.

A comprehensive study of the US secondhand clothing market, The 2021 Resale Report surveys 3,500 consumers to highlight growth drivers of the resale market during the pandemic. It also highlights the initiatives needed by the government to accelerate the adoption of circular fashion. The report’s ‘Impact Section’ details a company’s initiatives to ‘shift to thrift’ to extend its used garments’ life. This helps the platform compensate the environmental and financial damages caused by fashion. Till date, the platform has reduced carbon emissions by £1 billion, selling over 125 million secondhand items.

Secondhand sales to surpass fast fashion by 2030

As per Sustainable Brands -- the premier global community of brand innovators-- US resale market is projected to grow 11 times faster than retail clothing market over the next five years. It is expected to more than double the size of fast fashion market by 2030, with two in five consumers replacing fast fashion purchases with secondhand clothing.

The report shows, consumers’ purchase of secondhand clothing items increased by seven times last year. In the last 10 years, consumers have saved around $390 billion by buying 6.65 billion secondhand clothing items. Post pandemic, one of three consumers aims to shop for sustainable apparels. Around 60 per cent consumers aim to save money through sustainable shopping while 51 per cent aim to cut environmental waste. Around 50 per cent to opt for value shopping.

Collaboration to tackle fashion’s environmental impact

Consumers also aim to reduce their personal impact on the environment. However, for this, they need to collaborate with brands, says Chris Coulter, CEO, GlobeScan’s 2020 Healthy and Sustainable Living Study. Brands like Patagonia have already made this shift launching a repairs, returns and resale platform ‘Worn Wear’ in 2013. Companies including Levi’s, The North Face, Arc’teryx, REI, Eileen Fisher, and COS have also launched their own repair and resell schemes in recent years. Additionally, resale platform Rent the Runway has joined thredUP as a fully-fledged resale site.

Increasing brand accountability

To reduce fashion’s impact on the environment, around 44 per cent respondents urge the government to promote sustainable fashion. Around 47 per cent call for abolishment of sales tax or introduction of tax credit.

Respondents also urge the government to follow the UK’s example and make fashion brands more responsible for the waste created by them. They urge the government to levy on a £1p extended producer responsibility (EPR) charge on each clothing item towards its future recycling. Consultations on this strategy are currently underway in the US.

A vital sector for economic growth, the Pakistan textile industry has embarked on an ambitious plan to double exports by 2025. The industry has earmarked a $5 billion investment across textile value by the end of target year. It has already noted a growth in new orders that would help sustain for next few years. As per Global Village Space report, Pakistan expects this growth drive to continue for the next few years and consolidate its position in the global textile market.

A significant contributor to industrial exports, the textiles is one of Pakistan’s most dynamic sectors. However, since the last few years, the sector has been on a decline due to rising production costs, power shortages, faulty strategies, and lack of government support. The sector is also threatened by a worldwide recession and quality competence. Its contribution to global textile exports is negligible compared to other South Asian regional competitors due to low production base. On the other hand, rapid industrialization and evolving technologies are helping other nations install latest machines to produce new fabrics more efficiently.

Low profitability, technology raises cotton import bill

Over the years, the textile industry has suffered on several fronts. Current global economic crisis, increasing production, energy and raw material costs, obsolete technology, and lack of investment are slowing growth with consistent decline in cotton production adding to woes.

In 2020-21, Pakistan’s cotton production declined to 6.5 million bales compelling the sector to import raw cotton from the US, Brazil and Egypt. This year, low profitability, poor seed quality, and lack of technology and innovations is compelling the industry to import around 10 million cotton bales. It has already imported 331,560 tons of cotton worth $ 532.1 million compared to last year’s imports of 49,573 tons valued at $ 86.9 million.

Most of Pakistan’s current textile industry growth is being achieved through cotton and MMF imports. The country is utilizing full textile production capacity to cater to increasing orders. Many players are expanding production capacities to accommodate new orders.

Opportunity to target double digit exports

The pandemic gave Pakistani exporters an opportunity to improve their product quality and competitiveness in global market. It also gave exporters, an opportunity to target double digit growth from July to May 2020-21 compared to the same period a year ago. From July-May 2020-21, Pakistan’s textile exports increased by 18.85 percent to $13.74 billion compared to $ 11.56 billion in the same period of corresponding year. Home textile exports increased to $3.642 billion as against $2.879 billion over the last year while exports of men’s garments increased 16 per cent to $3.505 billion against $3.019 billion last year.

Pakistan’s exports of women’s garments increased 33 per cent to $646.49 million during the period against $486.52 million in the corresponding period previous year. Leather apparel exports rose 11 per cent to $584.02 million against $528.02 million while the exports of jerseys, pullovers, and cardigans surged by 57 per cent to 530.14 million against $ 337.39 million in the same period in FY20. Exports of T-shirts increased 14 per cent to $453.4 million against $398.79 million last year while exports of made-up articles of textile materials increased 15 per cent to $432.47 million against $ 377.24 million of last year.

Amazon listing boosts market Pakistan’s rising textile exports are also a result of its addition to Amazon’s sellers’ list. Pakistani entrepreneurs can now sell products through the platform which helps them promote their businesses and expand to newer markets. Its addition to the Amazon platform also provides online buyers easier access to Pakistani brands. Having recovered from the COVID-19, Pakistan’s textile exports are growing at a robust pace. Exports are being further advanced by new energy package announced by the government for the export industry and market- friendly exchange rates.

The Fabric and Apparel Accessories Manufacturers Association (FAAMA) has urged the Government to give due recognition for its growing value addition to the economy and foreign reserves as required support can help tap a $ 2 billion business opportunity faster

This key sub-sector of the $5 billion apparel industry has grown to account for $ 800 million up from $500 million a few years ago.

With imported raw materials amounting to $ 3 billion annually, FAAMA believes the local industry can significantly enhance its contribution with the right support and policies.

The raw material component of the apparel industry is 65 per cent. The import value of $ 2.8 billion signifies a huge gap and equally an opportunity. Whether Sri Lanka can locally produce the entire raw material requirement locally is a challenge and could take a long time. However, local manufacturers have progressed satisfactorily so far after much sustained effort, said Pubudu de Silva, President, FAAMA

He said the fabric and accessories segment has added a value of nearly 50 per cent to the apparel industry. Additionally, customers are preferring in-country sourcing by their suppliers/producers as part of efforts to manage the rising logistics cost as well as lead time. This dynamic certainly helps local manufacturers of fabric and accessories. “

Given these compelling factors there must be unwavering support to fabric and accessories manufacturers to further enhance their contribution which will benefit the country substantially. Apparel industry, including fabric and accessories, must receive a similar thrust or priority like for tourism or ICT,” FAAMA President emphasised.

To expand the local manufacturing, several new initiatives have been made, including the establishment of a dedicated Eravur fabric park in the Eastern Province, which FAAMA welcomed.

However, FAAMA is of the view that a broad infrastructure plan aligned to industry growth forecasts and goals will help. A level playing field in terms of cost as against overseas competitors is also important, it said.

Pakistan Yarn Merchants Association (PYMA) has urged the government to change the duty structure for the textile industry as announced in the budget document to create vast employment opportunities.

Hanif Lakhany, Senior Vice Chairman, PYMA and Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Farhan Ashrafi, Convener FPCCI Yarn Standing Committee demanded this while addressing the 1st meeting of the FPCCI Standing Committee on Yarns.

They said that 2 percent customs duty on filament yarn, 2 percent additional customs duty reduction and abolition of 2.5 percent regulatory duty were announced in the budget speech, but unfortunately, all the recommendations of the Commerce Division were ignored, and without stakeholders’ consultation, anomalies committee’s recommendations were made part of the budget, which is unacceptable

Khurshid A Shaikh, Former Central Chairman, PYMA, said that the user industry of the yarn sector is facing big loss as the cotton production is very low. Fibre and yarn are two major sectors which can boost the textile sector of the country.

M Usman, Leader, PYMA, said, nylon yarn and viscose yarn are major issues. He urged the government to resolve the issue of tariff over yarn and fibre.

Hafeez Aziz, Chief, PCLC said, yarn traders are facing a lot of problems at different stages and they don’t get refunds for many years. In exports, yarn traders play a major role but they suffer much. The Federal Board of Revenue (FBR) always keeps yarn traders in darkness and always demands tax more than income from traders, he alleged.

Junaid-ur-Rehman, Member Managing Committee, KCCI, said, the council should also discuss issues of cotton yarn and government policy for raw material of cotton must be pro-business and industry.

The Hong Kong Research Institute of Textiles and Apparel (HKRITA) will soon celebrate the 3rd anniversary of its Garment-to-Garment Recycling System (G2G) by holding an exhibition, The Garment to Garment Journey’, from July 06-August 31, 2021.

The exhibition will demonstrate the different stages in the recycling of old garments, in which they are reduced to fabric materials that are then refashioned into new garments. To reflect the highs and lows of research, the demonstration will feature both cheering and challenging examples of recycled popular garments and fabrics such as shirts and blouses, knitwear, and denim. Video footage will show G2G users sharing their very own recycling journeys. Also displayed will be physical artworks made by users, demonstrating the creative side of recycling.

G2G is the world’s first post-consumer garment recycling system that can be operated in retail spaces. It is an award-winning project. These awards include, a Red Dot Award: Product Design 2019, and a gold medal in both the 47th International Exhibition of Inventions in Geneva and in the Asia International Innovative Invention Award of 2019. G2G was also honored in Fast Company’s Innovation by Design Awards of 2019 (Retail Environments category).

The project is now in its second phase of development, during which system capacity will be expanded, functionality optimized and processes more fully automated. These enhancements will be taking place concurrent with the exhibition, and the improved G2G will open to the public in September 2021.

BGMEA has welcomed Walt Disney Company’s decision to reinstate production of branded merchandize in factories stalled eight years ago. The decision would help BGMEA attract orders worth more than $500 million in future. As per Faruque Hassan, President, BGMEA, Walt Disney would consider permitting production in Bangladesh in future, if factories agree to partner Better Work program.

The factories participating in ILO's Better Work program will be entitled to become a vendor, while they need to participate in NiIRAPON, an alliance of 23 foreign RMG brands and RMG Sustainability Council (RSC) along with specific remediation fulfillment criteria. Walt Disney stopped production activities in Bangladeshi factories in May 2013 following the fire at Tazreen Fashion in November 2012 that killed 112 RMG workers, and later, Rana Plaza Building collapse which killed more than 1,100 people, mostly readymade garment workers.

Now, it plans to reinstate Bangladesh as a permitted sourcing country list with International Labor Standard audits. It is the recognition of the all-out progress and transformation in the industry, particularly in the area of workplace safety, social standards, and environmental sustainability, Faruque added

India’s exports to Hungary grew by 658.41 per cent to $21.16 million worth of apparels in 2020, as compared to just $2.79 million in 2019. Hungary imported $1.56 billion worth of garments worldwide in 2020, reveals ITC data, and India’s share was 1.35 per cent. As per Apparel Resources, India’s RMG exports to top five EU destinations – Germany, France, Spain, Netherlands and Italy – declined to 73.48 per cent of India’s total export to EU during 2020.

Denmark was the sixth top apparel export destination for India in EU in 2020 with exports growing 3.29 per cent to $231.95 million. Since India’s garment export to Hungary seems to be weaving up strongly, the country has a good chance in 2021 and onwards to increase its market share. As per Statista, Hungary’s total revenue from apparel sector was $2.07 billion in 2020 which is expected to grow annually 16.2 per cent from 2021 till 2025.

Apparel Export Promotion Council (AEPC) has lauded the government and exporters for achieving the highest ever merchandise exports of $95 billion in Q1 (April-June quarter) FY 2021-22. A Sakthivel, Chairman, AEPC said, the $400 billion merchandise export target of FY22 is doable. As per Apparel Resources, export of cotton yarn/ fabrics/made-ups grew by 50.86 per cent in June 2021 over June 2019.

Export of the man-made yarn/fabrics/made-ups, etc grew well during the same period, while export of all textiles declined by 18.76 per cent. However, apparel exports could not benefit much from the resurgence in global demand despite a good order book due to lockdowns in many important states, Sakthivel added.

He said while overall global demand has remained buoyant, the lockdowns in different parts of the country had kept factories in partial shutdown. With decline in daily cases of infection and resumption of economic activities, India is now set to achieve unprecedented export figures this year, he said. He requested the government to ensure personalized management of MSME exports and early clearance of RoSCTL cases pending since January 2021.

Consumer boycott of foreign apparel brands in China have dipped fashion retailer H&M’s sales in the country in recent months. China is one of the biggest markets for Stockholm-based H&M and accounting for 5 per cent sales last year -- one of its two biggest purchasing sources -- has been singled out in particular. The company was wiped off from e-commerce platform Tmall and store locations from mobile phone maps in China, while its app has vanished from local app stores.

Some researchers and foreign lawmakers say Xinjiang authorities use coercive labour programs to meet seasonal cotton-picking needs, which China strongly denies. In March 2021, Chinese consumers and social-media users, including the Central Communist Youth League, excoriated H&M, accusing it of smearing China and calling for a boycott, after its September 2020 statement resurfaces in social media. On the same day, searches for H&M on Chinese e-commerce platforms were blocked.

To be launched in Genoa, Italy by Candiani, Diesel and Eco-Age, global jeans trade show GenovaJeans will demonstrate the future of denim with an emphasis on sustainability. GenovaJeans will be held from September 2 to 6, 2021. The fair will bring to life the evolution, and innovation of jeans in an experiential showcase with a series of immersive experiences. One of the highlights will be the Artejeans exhibition, containing 36 jeans canvas works donated to the city by internationally famous Italian artists to establish an International Jeans Museum.

Leading Italian jeans brand Diesel will showcase pieces from its private collection, along with the Genoa’s historical Via Pre’, which will be renamed for the occasion as La Via del Jeans and will feature interactive and performance lead installations.

Denim producer Candiani will curate an immersive experience stressing the harm caused by unsustainable production and present solutions to protect the environment and the future of the industry, including its latest Coreva technology, the world’s first compostable stretch denim.

Eco-Age, sustainability consultancy and owner of The Green Carpet Fashion Awards brandmark will lead the event concept and delivery of GenovaJeans, working with production company Pulse, who will debut a movie called ‘Jeans-The Genoa-R-Evolution’ with performer Jack Savoretti.