Pawan Gupta, CEO and Co-Founder at Fashinza, says his company plans to position itself as the defacto global leader in lifestyle manufacturing in the next two-three years. It plans to offer manufacturing in every continent of the world so that brands can outsource based on a beautiful combination of speed and cost to digitize the supply chain besides helping MSMEs to gain financial stability. The company also plans to implement strategies to improve trend forecasts, which in turn will optimize the SMEs’ capital investments. In the apparel industry, understanding the trends can be the key to improving demands.

Fashinza has created a one-of-a-kind digital marketplace where brands and manufacturers can freely work together with none of the usual supply chain complications being involved. Brands can state their detailed requirements with a few clicks and the marketplace manufactures the products based on their demands. Inventory risks are reduced because we enable brands to experiment with low MoQs. Selecting designs is super easy with its openly available catalogue. The company’s partnerships with fabric suppliers and financial partners further help to expedite the manufacturing process. It has also empowered SMEs to work directly with some of the biggest fashion brands, both domestic and international.

Professor Parikshit Goswami has been appointed to the board of non-profit organization UK Fashion & Textile Association (UKFT) to help the association increase its focus on innovation, R&D and sustainability. Goswami is currently the Director, Technical Textiles Research Centre and the Head of Department-Fashion and Textiles, University of Huddersfield.

Goswami mainly researches on developing products by using flexible materials and applying Chemistry to functionalize textiles. He manages a large portfolio of research concerned with fiber/polymer science, nonwovens, medical textiles, sustainable materials, nano and submicron fibres and plasma treatments for functionalising textiles. He is a member of Society of Dyers and Colourists (SDC), Education, Qualifications and Accreditation Board (EQAB) and is a Trustee of SDC.

Prior to joining the University of Huddersfield, Goswami was the Director -Research and Innovation, School of Design, University of Leeds and he led the Fibre and Fabric Functionalization Research Group.

UKFT works across a wide range of projects to help the UK industry take full advantage of these new technologies and markets and to help change the future landscape of the textile industry in the UK into one where circularity and environmentally sustainable supply chains are the new normal.

Most recently UKFT has started working with IBM, Tech Data and the Future Fashion Factory to design, prototype and pilot a new technology platform to help the UK fashion and textile industry to drive sustainability and profitability through increased transparency within the supply chain. Retailers Next, H&M (COS brand), N Brown, New Look and yarn manufacturer Laxtons will be part of the initial pilot.

Gujarat Cotton Corporation has teamed up with BTMA members to resolve issues over the non-issuance of transaction certificates for organic cotton supplied to Bangladeshi importers. For more than one year, nine Indian suppliers have not given transaction certificates to 18 Bangladeshi companies for 16,100 tonne of organic cotton imported by them against 23 LCs. Certificates were issued to only three importers, which were later revoked as they were fake.

Last month, BTMA sent a letter to the Indian High Commission in Dhaka, the Cotton Association of India, the International Chamber of Commerce Bangladesh (ICCB) and other parties concerned, seeking measures to this end. According to BTMA, Bangladesh imported 7.5 million bales of raw cotton in FY20, and more than a quarter of it came from India. But, the BTMA does not have information on the amount of organic cotton imported during this time.

Faruque Hassan, President, BGMEA, has demanded 10 per cent incentive on the export of garment items made from non-cotton fibers to encourage investment in the MMF sector. Hassan said, Bangladesh imported 20.52 lakh tonne of fiber in the last fiscal year, of which 93.57 per cent was cotton. Currently, 403 out of the 430 spinning mills operating in the country produce cotton fiber. Hence, investment and production in the MMF-based fiber industry is still low even though it has very high potential, he added.

Currently, Vietnam holds 10 per cent share of the global MMF-based garment market while Bangladesh is still struggling to attain a 5 per cent share in this segment, Hassan added. This market is growing 3 to 4 per cent annually with 75 per cent of garments being produced globally from MMF-based fibers. On the other hand, the global market share of the cotton-based garment industry is growing at just 1 or 2 per cent annually.

Hassan also demanded loan rescheduling facilities for up to December as garment manufacturers and exporters have been struggling amid the ongoing COVID-19 pandemic. He also urged the government not to classify the loans of the garment sector for up to December this year so that they can be more competitive in the business.

Los Angeles-based apparel retailer Guess’s net revenues increased 57.7 per cent to $628.6 million during the second quarter of the current financial year as improved margins boosted year-over-year revenue gains. Disruptions caused by the COVID-19 pandemic, had led to retailer’s sales declining to $398.5 million last year. Compared to the same period two years ago, when the company generated $683.2 million in revenue, sales decreased 8.0 per cent.

In last year’s second quarter, the retailer recorded a net loss of $20.4 million, or a diluted loss per share of $0.31. Operating margin for the quarter was negative 3.6 per cent compared to $1.22 billion in the same period two years ago. The company’s net earnings for the first half of the fiscal year came to $73.1 million, or $1.10 per diluted share. This compares to a loss of $178.0 million, or $2.72 per diluted share, in the previous year’s first half, and earnings of $3.9 million, or $0.05 per diluted share, the year before. At the end of second quarter, Guess directly operated 1,046 retail stores in the Americas, Europe and Asia, with a further 551 locations being run through the company’s global partners and distributers.

Zhongyuan Group’s exports to Vietnam, India and Honduras dropped dramatically in recent months due to rising logistics costs and container shortage. Zhongyuan started its export business in 2019. Earlier the company exported 1,000 to 2,000 ton of polyester every month before. However, in recent times, the company’s waiting period for a container increased from a week to a month. Its shipment costs also increased by three, four or even five times for some regions, informs Chen Yiren, Assistant President. The price of its container from China to UK has increased by five times to $14,000. This is affecting the company’s foreign trade

The value of China's textile exports declined by 26.78 percent in July, shows data from China Customs shows. Beside the rising logistic costs, the dropping demand of masks and protecting suits was the other factor behind the decline. Customs data shows that exports of masks and protective clothing accounted for only 6.3 percent of total textile exports in the first half of the year, compared with 22.4 percent recorded last year.

The British Textile Machinery Association (BTMA) has appointed Jason Kent the new Chief Executive Officer of the group. This also includes subsidiaries nw texnet and The Textile Recorder (Machinery & Accessories) Exhibitions (TREX), effective from Monday 23rd August 2021. A non-executive member of the BTMA board for over eight years, Kent has over 35 years of experience in carpet tufting machinery industry. He is a mechanical technician engineer who ascended through a series of positions of greater responsibility with Cobble Blackburn until its acquisition in 2013 by the Vandewiele Group, where he undertook the role of Managing Director for the tufting machinery business.

He also studied part-time for his MBA back in 2011 and is also a Chartered Fellow of the Chartered Management Institute. Alan Little, Director, says, Jason’s textile machinery background, business development skills and extensive knowledge of the BTMA and its members will help in delivering the strategic vision of the board.

Founded in 1940, the British Textile Machinery Association actively promotes British textile machinery manufacturers and their products to the world. The non-profit organisation acts as a bridge between its members and the increasingly diverse industries within the textile manufacturing sector.

Brands and unions have signed an agreement to extend the Accord agreement in Bangladesh and expand its scope to other garment- and textile-producing countries. The agreement has been hailed by labor groups across the country as it paves the way for more robust worker protections globally.

Titled the ‘International Accord for Health And Safety in the Textile and Garment Industry,’ the new agreement extends out to October 2023. It remains a legally binding commitment to ensure worker safety in Bangladesh. Companies including H&M Group and Zara-owner Inditex have signed the new agreement. A full list of signatory brands will be announced September 1, when the new Accord comes into effect.

The Bangladesh Accord was established in the wake of the collapse of the Rana Plaza factory complex in 2013. The disaster killed more than 1,000 people and remains one of the deadliest garment industry disasters to date. Amid widespread public outrage, more than 200 brands signed onto the initiative, which made them subject to legal action if their supplier factories in Bangladesh did not meet health-and-safety standards or failed to fix issues within an agreed-upon time frame. It was an unprecedented level of accountability and remains an unusually robust framework in an industry that is still largely governed by voluntary codes of conduct.

After rapid surge in 2020, demand for technical textiles in China is slowly stabilizing. Demand for surgical masks, protective clothing and related raw materials is gradually declining, slowing the industry’s annual growth rate. A survey by the China Nonwovens & Industrial Textile Association (CNITA) of member enterprises shows domestic and international demand for technical textiles in China dropped 40 per cent during January-May 2021. Demand indexes for both domestic and international market dropped to 49.0 and 43.4 during the first half of the year.

They have since dropped further to their lowest levels of 31.4 and 34.8. As per a China Textile Leader report, the operating rates of 36 per cent of manufacturers dropped to 80 per cent during the period while those of 18.8 per cent dropped to 60 per cent. The operating rate of 17.6 per cent companies dropped to less than 40 per cent.

Average growth stable but profits drop

The industrial added value of enterprises above designated size in China dropped 11.9 per cent year-on-year from January-May 2021, shows data from the National Bureau of Statistics. However, the two-year average growth of these enterprises still reached 15.2 per cent. Their operating income also increased 0.3 per cent year-on-year to CNY 117.51 billion. On the other hand, total profit dropped 54.5 per cent to reach CNY 7.02 billion while profit rate also declined 7.2 percentage points to 6.0 per cent. The industry is still in a relatively ideal state though it is growing at a slower rate than the chemical fiber and textile machinery industry.

Around 16 per cent companies surveyed by CNITA reported 50 per cent drop in their annual profits while 64 enterprises reported 20 per cent drop. Around 40 per cent of these 64 enterprises view this as a normal adjustment against the rapid growth witnessed in 2020. They believe, it would require one to two years to get out of this round of adjustment period.

Profit margins drop by 6.2 per cent

The surveyed nonwovens enterprises also reported a 7.7 per cent drop in operating incomes and 67.8 per cent year-on-year decline in total profits. Their profit margins also declined 6.2 per cent and 11.5 percentage points year-on-year. The operating income and total profit of twine and rope (cable) enterprises above designated size increased 24.6 per cent and 43.6 per cent year-on-year respectively. Their profit rate increased 0.6 percentage points to 4.2 per cent, up by 0.6 percentage points year-on-year. Similarly, operating income and total profits of textile belts and cord fabrics enterprises above designated size surged by 28.2 per cent and 198.0 per cent year-on-year, respective while their profit rate increased by 3.3 per cent to 5.7 per cent. On the other hand, the operating income and total profits of other technical textile enterprises above designated size declined by 10.3 per cent and 53.5 per cent year-on-year, respectively while their profit rate declined by 6.0 per cent year-on-year.

Travel ban impacts technical textiles demand

Around 50.4 per cent enterprises in China recorded a drop in demand for technical textiles during the period. They attributed this decline to stagnation in global travel, which prevented them from participating in international fairs and exhibitions. Around 37.8 per cent enterprises also reported difficulties in hiring qualified workers and increase in international shipping costs.

The surveyed enterprises also reported facing external challenges like the excessively rapid increase in raw material prices. Around 52.4 per cent enterprises believe, excessive expansion in production capacity has increased competition amongst the enterprises. However, these enterprises are confident that their ability to innovate and maintain the required quality standards will help them surge ahead of competitors.

Around 18 Bangladeshi spinners who imported organic cotton from India are yet to receive the authentication certificate – called a transaction certificate (TC) – from their suppliers even after a year of import. These spinners now fear huge losses following possible order cancellations as their buyers seek TCs as proof while buying raw materials from these mills.

The millers have repeatedly tried to reach out to the suppliers to get the certificates but have not succeeded, says Bangladesh Textile Mills Association (BTMA). Though some Indian suppliers have provided TCs for the supplied cotton, but these certificates were later proven to be fake and subsequently withdrawn by the Control Union.

According to the BTMA, Bangladesh imported 7.5 million bales of raw cotton in FY20, and more than a quarter of it came from India. But, the BTMA does not have information on the amount of organic cotton imported during this time. Indian suppliers are not giving transaction certificates for 16,100 tonnes of organic cotton imported by 18 Bangladeshi companies against 23 LCs. Certificates were issued to only three importers, which were later revoked as they were fake.

According to BTMA sources, they have identified at least nine Indian cotton exporters who are not certifying organic cotton or giving fake certificates. The list includes Agrotech Industries, Gujarat Cotton Corporation, Axiata Cotton, Glossy Impex, Ghanshyam Agro Resources, Basil Commodities, Kratos Impex, Sri Salasar Balaji Agrotech and Narendra Overseas.