During January 2022 to July 2022, the total exports of China’s textile and apparel goods were up 12 per cent year-on-year.

Apparel exports alone were up 13 per cent year-on-year.Viewed from the proportion of major products exported, knitted garments made of chemical fiber took the largest part, and cotton knitted garments came second, followed by woven fabrics made of chemical fibers and other fabrics.

From January to July, the share of fabric exports was rather large, accounting for about 23 per cent of total textile and apparel exports.China’s exports of textile and apparel made of chemical fibers performed better than cotton goods. One of the reasons lies in the ban on Xinjiang cotton and another reason is that the unit price of cotton products increases faster than the unit price of products made of chemical fibers.

Chinese export destinations

The EU countries, the US, Japan and Asean countries are still the major destinations for China’s textile and apparel exports. Year-on-year growth of exports to Asean and Bangladesh increased more rapidly to reach 23 per cent and 36 per cent respectively.The proportion of China’s textile and apparel exports to Europe, the US and Japan has moved down gradually. The proportion to the US, in particular, has declined rapidly since the US-China trade war.

Although China’s textile and apparel still hold a dominant position in those countries, especially in Japan, yet parts of the share are being squeezed by Southeast and South Asia countries. China is in the middle of an outward shift of its low-end textile and apparel industry, and this is expected to continue in the future. However, given the limited capacity and incomplete industrial chains, Southeast and South Asia countries are highly dependent on imports, particularly imports from China.

From 2007 till now, the share of China's textile exports in the total textile and apparel exports has risen gradually from 32 per cent to 47 per cent, up 14 percentage points.

Sluggish domestic sales

This year, domestic sales of textile and apparel were relatively sluggish. From January to July, retail sales of garments, footwear, hats and knitwear declined by five per cent year-on-year. In perspective of monthly sales, only June and July saw positive year-on-year growth, but the growth was limited.

So, from January to July, China’s textile and apparel exports were significantly better than domestic sales, and exports of textile and apparel made of chemical fibers were clearly higher thanthose of cotton goods.

Freudenberg has set up an Apparel Technical Solution Center in China. The aim is to offer technical expertise and innovations to apparel customers. The ATSC is equipped with cutting-edge technology. This includes a wide variety of fusing and bonding machines, laser and ultrasonic cutters, specialized sewing machines for sportswear applications, fiber filling machines for insulation applications, and washing and dry-cleaning machines that meet GB and AATCC standards.The ATSC offers unparalleled technical knowhow to help customers design complex apparel solutions.

In particular, it furthers Freudenberg’s dedication to finding technical solutions for performance applications. The factory as an important R&D and technical hub will advance the ongoing development of a robust supply chain. Dedicated to continuously improving production quality, the new factory also includes an innovative online defect detection system. The online weft density automatic adjustment system helps improve the stability of the drying process and the quality of semi-finished products.

Freudenberg, based in Germany, is a leading global supplier of innovative technical textiles for a broad range of markets and applications such as apparel, automotive, building interiors, building materials, healthcare, energy, filter media, shoe and leather goods as well as specialties. The company employs some 50,000 people in around 60 countries worldwide.

Tonello is having a presence at CAITME, Uzbekistan, September 7 to 9, 2022.

Tonello will present its full range of products including the Evolution 3 washing machines. Evolution 3 is the new generation of Tonello’s signature washing and dyeing machines. The innovations implemented in Evolution 3 washing machines further reduce water and energy consumption, increase productivity, and lead to lower energy and maintenance costs. In the Evolution 3, the tried-and-tested machine construction allows for maximum optimization of water use during each type of process as well as huge energy savings provided by several improvements. The new high-efficiency motors are built with materials that reduce losses and consumption and increase overall machine efficiency.

The optimized transmission with new high-efficiency belts absorbs less energy and promotes greater durability and wear resistance than previous models; the machine is also more compact. The entire transmission system has been improved to achieve greater energy savings than conventional systems. Tonello's Evolution 3 line of washing and dyeing machines enable energy savings of up to 20 per cent compared to previous models, reduce overall operating costs and contribute to greater competitiveness in an increasingly unpredictable market. CAITME is a textile machinery exhibition dedicated to all technologies used in the textile industry. Uzbekistan is one of the world’s leading cotton producers.

Intertex Tunisia will be held October 6 to 8, 2022.The event brings together professionals from all sub-sectors of textiles such as raw materials, fabrics, yarns, accessories, dyes, and chemicals.

It attracts thousands of professional textile buyers from African countries and also Europe and the Middle East.Over 8.000 industry professionals come together on the same platform and can meet with new suppliers, customers, and business partners. Intertex Tunisia is full of opportunities for exhibitors and visitors to do business on a global scale and Intertex Tunisia is where one can discover thousands of trendy products of widely known brands and chain stores.

In the previous edition which took place October 14 to 16, 2021, Intertex Tunisia welcomed 182 exhibitors/brands and 8.240 professional visitors from 18 countries.

Tunisia is emerging as one of the major production sites of clothing products in the Euro-Mediterranean zone. It’s the sixth largest supplier of textiles to Europe; more than 95 per cent of Tunisian exports go to Europe. The Tunisian economy offers businesses an environment of higher quality than those found in competing countries.The textile andclothing sector is positioned as a pillar of Tunisian industry and retains a prominent place in the national economy and makes a strong contribution to the socio-economic balance of Tunisia.

Bangladesh’s exports of denim fabrics and garment items to Europe have declined by nearly 40 per cent.

The main reason is inflation. International retailers and brands are already putting orders on hold as they have unsold inventory amid a slowdown in sales caused by higher inflation, which reached a record high of 8.9 per cent in July, led by costlier energy.

European buyers have cut a lot of orders for denim items because of a long dry spell in the eurozone. Usually, the temperature starts falling from June in Europe. But this year it is still running above 30 degree Celsius in some parts of the continent, hurting the exports of denim products to European markets.

One in every three Europeans wears a pair of denim pants made in Bangladesh.Italy, Spain, Portugal, France, Germany, the Netherlands, Belgium, Luxembourg, and the United Kingdom are under increasingly hazardous conditions. During summer, people prefer woven bottoms to denim. The demand for denim goes up during winter.

Denim production in Bangladesh has fallen by nearly 40 per cent because of a drop in demand from European customers.Retailers are also postponing orders as they are cutting expenditures owing to the higher cost of production caused by the Russia-Ukraine war.

Adidas, the mega German manufacturer of athletic shoes, apparels and sporting goods is currently floundering in post-pandemic murky waters of China. In the second quarter of 2022, Adidas observed a revenue drop of 35 per cent in China market while dragging operating profits down 28 per cent and net sales dropped from $2.4 billion to $1.7 billion, marking a fifth consecutive quarter of losses in the huge Chinese market.

Big brands incur losses, domestic ones grow

In the first quarter, Nike reported a 55 per cent reduction in earnings before interest and taxes (EBIT) in China that converted from $691 million to $311 million. Both Nike and Adidas have posted major revenue losses in China due to pandemic-related measures and have cut their growth outlook for the rest of 2022. But there is more to it than meets the eye, as Adidas CEO Kasper Rørsted explains, they don’t understand consumers well enough, so they left room for Chinese competitors who are better off.

Interestingly, big Chinese domestic competitors like Anta and Li Ning did not record similar losses, so there is much more to it. Li-Ning for example, recorded 12.4 billion yuan ($1.8 billion) in revenue for the first half of 2022, a year-on-year increase of 21.7 per cent. Similarl, Anta reported double-digit sales growth in the first quarter of 2022, Xtep reported a year-on-year increase in revenue of over 35 per cent in the second quarter.

To add to its woes, both Nike (which recorded its third consecutive quarter of revenue dip in the country) and Adidas were hit by consumer backlash from China over claims of abuses in the cotton-growing Xinjiang region. China has been targeting Western clothes retailers over the last two years with international reports highlighting how mostly Muslim Uighur minority groups in China are being used as forced labor. This has caused international backlash with claims of abuses in the cotton-growing Xinjiang region.

Global brands focus on maintaining lead

However, it's difficult for local brands to beat a mega-giant retailer in brand visibility and expansion plans. Since opening its headquarters in Shanghai in 1997, Adidas has expanded to 12,000 outlets with Adidas Originals opening a flagship store in Taikoo Li Chengdu in January 2022. Its strong focus is now on reaching the Gen Z trendsetters by launching new products exclusively for China to hosting cutting-edge digital events.

In May this year, Adidas Originals teamed up with Tencent Music Entertainment to host a virtual avatar rap show that featured Jay Park and MC Jin with seven million viewers. Adidas has sought out a range of homegrown partners, from streetwear clothing companies such as Melting Sadness to ceramic design like Yeenjoy Studio. Both Adidas and Nike have to go all out to localize more by working with domestic brands, athletes, and designers. And above all keep up their main USP of stringent quality as that is what sets them apart from local brands around the world.

While economic downturn rages and rise in nationalism in China increases, the appeal of the Western sportswear brands is rapidly diminishing as the national tide of cheaper brands sweeps the country. The days of going laughing to the bank with easy money may be over but the show will go on for Adidas and Nike for some more time.

he Indian fashion market has seen many changes after the pandemic, and one of the most prominent has been the sharp rise of private labels in both online and offline retail. These two advantages of high availability and cheaper pricing than national brands, have made private-label products considerably more appealing to consumers lately. There are many Indian private brands which are also known as private label and store brands, are made and sold for a specific big retailer and compete equally with national and international brand-name goods in shops, malls, and online apparel retail websites.

Reliance Retail, India’s largest retail company, with Rs 1,49,925 crore of revenues in FY21, has launched ver four dozen private-label brands across all cosumerwerables and grocery segments. Among them in the apparel segment are many private labels like Netplay (formal office wear), Performax (specialized activewear), Fusion (fusion-wear for women), Avaasa (ethnic wear for women), and Rio (fashion wear for working women). Reliance Retail’s annual report in FY21 says that the company has earned over 75 percent of its revenue from its fashion and apparel chain, Reliance Trends, from its in-house brands and for (Reliance) Trends Footwear. The contribution of private labels to its revenue is around 60 percent.

Private labels comprise almost 50% of the top brands currently sold on Ajio, a fashion and lifestyle brand of Reliance Retail's digital commerce initiative.Having outsold national and international brands such as Levi’s, Superdry, and US Polo Assn. on the platform, the company’s top private brands like Teamspirit, Mix N Match, and Avaasaare by far among its top-selling brands during festive season sales.

It’s the same story for Myntra, India's largest e-commerce store for fashion and lifestyle products, with its huge range of private labels across a lower price spectrum that contribute up to 35% of its revenue. Many of its owned labels, such as HRX and All About You, are developed with and backed by celebrities such as Hrithik Roshan and Deepika Padukone, respectively.

Even before the Covid 19 pandemic, offline retailers like the Future Group, Reliance Retail, K Raheja Corp-owned Shoppers Stop, and the Aditya Birla Group have been encouraging private labels with products contract-manufactured and sold by retailers. And now the big giants of e-commerce like Amazon and Flipkart are investing in their private-label portfolios as the margins here are better due to supply chain efficiencies and better control over operations.

Umashan Naidoo, head, of customer and beauty, Trent (which operates Westside), feels that every retailer must establish organic traction by building a community and brand loyalty. In the huge chain of Trent’s departmental stores across India, their brands in apparel, footwear, and other accessories contribute over 99% of sales. Naidoo adds, "We now have the luxury of being present online. When a brand owns and takes charge of its products end-to-end, it’s in control of its destiny. "

RutuMody-Kamdar, founder of Jigsaw Brand Consultants, says, "Private labels can be sold by retailers at a lower overhead cost and with more flexible branding strategies as there’s considerable leeway in designing promotions and advertising or even the packaging of the label." Industry analysts say that the average consumer is not usually aware if a brand is owned by a platform, a big fashion label, or a private label. So it’s time to play smart with store brands going from being used purely for their economic merit to helping market the overall online store image to ensure repeat purchases and keep the buzz alive. It’s time to party the private labels this Diwali season.

Woolmark has launched an anti-synthetic fiber campaign to raise awareness of the use of fossil fuels in textiles and promote wool as a natural, renewable alternative.

The campaign centers on a 60-second film showing three people struggling to swim through a pool filled with oil with a caption that reads “Every 25 seconds an Olympic-sized pool of oil is used to make synthetic clothing.” The models then peel off the oil to reveal wool outfits while walking through rolling green landscapes and a caption that reads “wool is 100 per cent natural, 100 per cent biodegradable and 100 per cent renewable”.The film is accompanied by additional digital outdoor advertising displays and a microsite.

Woolmark is a professional body that promotes and protects the interests of Australian merino wool including a certification scheme to ensure suppliers meet certain standards.

Most people don’t know that synthetic fabrics are derived from fossil fuels. Synthetics account for 1.35 per cent of global oil consumption and are expected to increase from 60 per cent of all fiber use to 73 per cent by 2030. Synthetic fabrics, such as polyester, acrylic, rayon and spandex, are responsible for 35 per cent of microplastics in our oceans.

The Regional Comprehensive Economic Partnership (RCEP) pact has facilitated the sound growth momentum of China’s exports to other member countries of the agreement.

RCEP came into effect in January2022. During the first six months, exports and imports between China and other RCEP countries accounted for about 32 percent of China’s total trade.China’s exports to other RCEP member countries grew 14 percent year-on-year, which was 2.3 percentage points higher than the average annual growth rate of China’s exports to other RCEP member countries in the past 20 years.

Chinese exports to other major RCEP member countries have increased significantly during the first half, except for Vietnam and Japan. Other RCEP countries’ contributions to China’s exports have also increased during the period, and the share of non-RCEP member countries in China’s outbound shipments dropped by 1.11 percentage points from a year earlier. In addition, shares of most RCEP countries in China’s exports have all risen, except for Japan, Vietnam and New Zealand.

The RCEP has facilitated China’s exports to Japan and South Korea. The implementation of the trade pact has for the first time established direct free trade relations between China and Japan, and Japan will eventually remove 88 percent of tariffs on Chinese imports.

Pakistan will import cotton after an estimated 1.4 million acres of the area where the crop is cultivated have destruction due to floods.

Date and sugarcane crops have also seen massive destruction while issues are being faced in transporting tomatoes and onions to major cities of Pakistan, which is in turn driving their prices upward. As a result Pakistan has suspended duty and taxes on import of onions and tomatoes. Already import of onion from Afghanistan resulted in reduction of its price in many parts of the country.

The US and Pakistan are working to help resolve issues relating to production of cotton and its trade between the two countries. The US is Pakistan’s largest trade and investment partner. There will be a technology transfer of high-yielding cotton seeds to Pakistan. The US will introduce improved, genetically modified, and certified seeds in Pakistan and share information on weather forecast. Pakistan will be updated on the best global practices in cotton and textiles being adopted by various countries. Mutual cooperation between American cotton growers and Pakistan’s textile industry is seen as offering a win-win situation for both countries where raw cotton imported from the US is converted into manufactured textile products and exported back to the US after enormous value addition.