FW
Bangladesh Denim Expo to adopt Kingpins’ standards
Bangladesh Denim Expo (BDE) plans to adopt Kingpins’ standards starting with its upcoming show from November 05-06, 2020.
This year Kingpins Amsterdam, the bi-annual denim supply chain trade show, began the process of requiring all exhibiting denim mills to meet or exceed standards in areas of corporate social responsibility (CSR), environment and chemical usage.
Kingpins believes that the adoption of a clear and unified approach on sustainable chemical management in the denim supply chain will reduce complexity, increase transparency, improve communication and ultimately lower costs – both in certification and in evaluation tests of chemical substances. To this end, Kingpins Show is collaborating with The ZDHC Foundation to develop the show’s sustainability protocol.
Now, Bangladesh Denim Expo has announced that it too will be requiring denim mills exhibiting at its shows to meet or exceed standards in the areas of corporate social responsibility (CSR), environment and chemical usage. BDE will use Kingpins Show’s CSR and chemical responsibility standards as a template for its exhibitor requirements.
QIMA survey names Bangladesh as top sourcing destination for foreign retailers
The survey ‘Evolution of Sourcing in 2020 conducted by Hong Kong-based QIMA names Bangladesh as one of the top destinations for foreign clothing retailers and labels after China due to favorable prices even during the pandemic. The survey draws from feedback from more than 200 companies worldwide across a range of consumer product segments and based on previous QIMA studies.
The study analyzes the evolution of global procurement in response to the ongoing COVID-19 pandemic, trade disputes between the United States and China, and other threats to global supply chains. The report notes that China continues to dominate as the global sourcing destination although its dominance is noticeably less dramatic than in previous years, particularly in industries such as textiles and apparel, where diversification of supplier portfolios has been a priority for some time now.
Consistently ranked among China’s regional rivals, Vietnam continues to reap the most benefits from the continued mass migration of Western buyers from China, with 40 percent of EU respondents and nearly as many U.S. brands listed Vietnam among their top sourcing regions. The US and EU brands are seeking closer to home sourcing options, but are more likely to target near-shore rather than re-shore.
Roberto Cavalli CEO to quit by 2020-end
Gian Giacomo Ferraris, CEO, Roberto Cavalli will step down from his role by the end of this year. Ferraris joined Roberto Cavalli in 2016, when he succeeded Renato Semerari. He was formerly the CEO of luxury brand Versace, where he is credited with getting the brand's finances back on track and repositioning it in the luxury segment after years of lacklustre sales.
Roberto Cavalli Spa is an Italian luxury fashion company founded by designer Roberto Cavalli in Osmannoro, Florence, during the 1970's. Known worldwide for its glamour and animalier prints on leather and textiles, the label is in charge of manufacturing and marketing haute couture, ready-to-wear, and accessories, including handbags, eyewear, watches, shoes, perfumes and jewellery. The company also develops interior design projects for high-end buildings and hotels.
In 2019, the Roberto Cavalli was acquired by the DICO group, owned by Emirati businessman Hussain Sajwani, who purchased the brand from Clessidra through private investment fund Vision Investments. The label's UAE-based parent company intends to take the historic Italian house in a new direction in order to successfully relaunch it.
Pakistan government committed to make textile industry competitive: APTMA
Pakistan government is committed to making the textile industry competitive and realize its true export potential, says Nadeem Babar. He says the government is committed to introduce a stable textile policy at the earliest to help the industry attract foreign exchange, create jobs and bring investment in the country. The government will ensure maximum relief to the industry within the ambit of the GIDC verdict announced by the apex court. It will ensure supply of gas to the industry during the winter season.
Moreover the idle capacity has become operational and textile exports have started rising over the past two months. Exports are projected to grow 14 per cent in September.
Adil Bashir, Chairman, APTMA adds the association is working with the government for a viable textile policy. He further suggested industries using gas for in-house consumption should be exempted from GIDC charges at captive tariff. He further recommended that a billing mechanism should be devised for disbursement of subsidy to SNGPL for providing gas to the five export-oriented sectors at $6.5 per mmbtu.
Pakistan government committed to make textile industry competitive: APTMA
Pakistan government is committed to making the textile industry competitive and realize its true export potential, says Nadeem Babar. He says the government is committed to introduce a stable textile policy at the earliest to help the industry attract foreign exchange, create jobs and bring investment in the country. The government will ensure maximum relief to the industry within the ambit of the GIDC verdict announced by the apex court. It will ensure supply of gas to the industry during the winter season.
Moreover the idle capacity has become operational and textile exports have started rising over the past two months. Exports are projected to grow 14 per cent in September.
Adil Bashir, Chairman, APTMA adds the association is working with the government for a viable textile policy. He further suggested industries using gas for in-house consumption should be exempted from GIDC charges at captive tariff. He further recommended that a billing mechanism should be devised for disbursement of subsidy to SNGPL for providing gas to the five export-oriented sectors at $6.5 per mmbtu.
Apparel sales in North America to decline by 30%: McKinsey report
As per McKinsey & Company, despite e-commerce boost, apparel sales in North America are poised to decline by 30 per cent in 2020 and by 25 per cent in 2021 from the 2019 levels. According to Althea Peng, Head, McKinsey’s-Americas, the earliest apparel sales might return to pre-pandemic levels is by the first quarter of 2023. If dire conditions persist through next year, retailers can expect to languish till the second quarter of 2025.
Though online sales will continue to gain market share, they won’t be able to compensate for the decline in brick and mortar sales. In 2020, online sales will constitute over one-third of total apparel sales. In 2021, e-commerce penetration may decline a bit as stores may reopen for the entire year. The absolute increase in e-commerce sales from 2019 to 2021 will be mostly offset by lower brick-and-mortar sales. Digital-first brands and retailers are projected to grow by 25 percent from 2019 levels in 2021.
However, Emma Spagnuolo, a McKinsey Associate Partner, does not view customers’ use of online channels even after the contagion to being a threat as according to a poll, consumers’ willingness to buy clothing and footwear online post-pandemic has jumped by just percent.
Spgnuolo also sees 35 to 40 per cent growth in users of omnichannel-type services—such as buy online, pick up in store and purchasing through social media or apps—post-COVID-19. According to her, successful retailers approach e-commerce from two angles: capturing a greater share of traffic by boosting conversion and retaining customers, and supercharging profitability by thinking outside the traditional legacy model to find ways to reduce costs across the system, increase data transparency and promote the proper attribution of costs to create clarity and accountability.
China’s sewing machinery exports decline by 21.90 per cent
As per Kohan Textile Journal, from January-June 20, China’s exports of the sewing machine decreased by 21.90 per cent on a Y-o – Y basis. The country’s overall sewing machine export revenues during the first half of 2020 declined to $934 million. Iindustrial machinery exports decreased by 26.03 per cent to $446 million.
As regards export volumes, Chinese industrial sewing machines dropped to 1.42 million sets by 26.41 percent. The average exportation cost per sewing machine for H1’20 was $371,66.
China exported $169 million sewing machines in June ’20, which was a 20.93 per cent dip from its past year. However, exports increased 23.14 per cent from May 20. In particular, the volume of exports of industrial sewing presses fell by 31,96 per cent to 221.700 sets , but compared to May’20, the volume of shipment increased by 16,91 per cent. Export of industrial sewing machines also declined by 43.96 per cent to $59.67 million. However, their value increased however by 4.17 per cent on the M-o-M basis.
Pakistan textile capacity reaches pre-COVID levels: Report
As containment of the pandemic led to many world buyers diverting orders to domestic manufacturers, Pakistan textile industry was able to scale up its production capacity to pre-COVID-19 levels, says a report by the Tribune. This growth in textile production has been achieved through a big jump in the import of basic raw materials as the recent heavy rainfall and pest attack damaged notable portion of cotton crops in the fields to a multi-year low.
Asif Inam, Former Vice-Chairman, All Pakistan Mills Associati(APTMA) says, precautionary measures to safeguard people from the virus and industry-specific economic measures by the government have helped the industry to resume production to full capacity. However, this full-capacity production excludes those textile units which closed down during the crisis, said Inam. Pakistan's textile industry is in a much better position compared to regional competitors as well. Many world buyers have diverted their orders to Pakistan from China, India and Bangladesh for different reasons including US-China trade war and halt in production in India with worsening of COVID-19 crisis there.
Secondly, the industry recovered on a fast pace with the government's support in the shape of rationalizing energy price to a regional competitive level, the continued supply of raw material and subsidized financing for the expansion of production and setting up new units.
Pakistan saw a jump of almost 1,000 per cent in import of cotton in dollar-term at $67.43 million in August compared to $6.30 million in the same month of last year, according to the Pakistan Bureau of Statistics (PBS). Cotton imports surged 255 per cent in the first two months (July-August) of the current fiscal year 2021.
BGMEA adopts safety protocol with ILO and government
Rubana Huq, President, BGMEA says the association has adopted a safety protocol prepared in consultation with the International Labor Organization and the Director-General-Health, Bangladesh government. As per Huq, the government’s stimulus package will help the industry. At the same time, other steps that will help include apparel manufacturers die-hard engagements with buyers who canceled orders and get them back on negotiation table. This has resulted in 80 to 90 per cent of the $3.18 billion canceled work orders been reinstated.
Huq says, COVID-19 has unleashed many truths which were never uncovered, some of those are about the country’s internal deficiencies which need to be overwhelmed, and some of those are about how manufacturers deal with their shareholders with proper policy measures.
Also the industry has learned about several disadvantages like a lack of proper contractual protocols between buyers and suppliers, and we did not even have any backup to reply to an emergency crisis. This pandemic has also shown its overdependence on the garment sector and the need for immediate diversification. She suggested exploring new opportunities that COVID has opened up like the market for personal protective equipment and also how more funds can be drawn in Bangladesh, and how the industry can diversify its product basket.
Government can help end forced labor in XUAR: AAFA
American Apparel and Footwear Association (AAFA) says, the US government alongwith its allies and stakeholders can end the terrible situation arising out of forced labor in China’s Xinjiang Uyghur Autonomous Region (XUAR). At a hearing of the House Ways and Means Committee trade sub-committee, Steve Lamar, CEO urged US government to use tools at the country’s disposal properly. He urged them to use withhold release orders (WROs) and other sanctions tools to declare all cotton from the XUAR ‘in part or in whole’ as products made with forced labor. Such a WRO would wreak unending havoc to human rights, economic development, and legitimate supply chains—which are already battered by COVID-19—all over the world, he said.
Lamar said, the government needs to keep the pressure focused on those actors in China that are perpetuating this system. It needs to evaluate its joint efforts through the lens of what would help them get their end goal. He called for a partnership between te industry, NGOs, unions, Congress, the US government, and other governments to take a comprehensive approach to resolving the horrific situation in XUAR,












