Over a nine month period Ralph Lauren’s profit shot up by 58.6 per cent. Revenues grew 1.6 per cent. The company adopted strategies that allowed it to elevate the brand. North America continues to be Ralph Lauren’s most successful market, although it’s the market that least grew in the year. Sales in the region increased 0.6 per cent. The company’s sales in Asia grew the most, 4.7 per cent more. Additionally, in Europe, the group’s sales increased by 2.7 per cent. America continues to be Ralph Lauren’s most successful market, although it’s the territory that grew the least in the year. Online sales of the company grew by two per cent with the Asian continent boosting sales of up to 36 per cent compared to the same period of 2019.

By the end of fiscal year 2020, Ralph Lauren expects revenue growth of between two per cent and three per cent in constant currency. On the other hand, the company expects the foreign currency to have a negative impact on revenue growth of up to 130 points.

Ralph Lauren will power all of its offices, distribution centers and stores with 100 per cent renewable electricity by 2025.

Almost 50 per cent of the top 10 global retailers are from America. The array of companies in top 10 pertains to five American companies. These are fashion giant distributor Gap, Nike, the L Brands group, Foot Locker and the TJX Max group. TJX is an apparel and footwear group operating in ten countries. Gap’s labels include Banana Republic, Old Navy, Forth & Towne, Piperlime, Athleta, among others. L Brands owns the lingerie company Victoria’s Secret. Foot Locker is a sportswear and footwear company. The company operates in 26 countries. Nike is into sportswear and footwear.

French luxury group Kering controls companies such as Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, among others. LVMH is a French luxury company which operates in 70 countries. The holding house controls labels such as Louis Vuitton, Sephora, Loewe, Céline and Balenciaga. H&M is a Swedish fast fashion retailer which operates in 69 countries across the world. Inditex is a Spanish giant. The distributor operates in 96 countries. The Spanish group also owns Massimo Dutti, Bershka, Oysho, Pull and Bear, among others. Fast Retailing is a Japanese group. The Japanese group whose principal subsidiary is Uniqlo controls several other brands, including J Brand, Comptoir des Cotonniers, GU, Princesse Tam-Tam, and Theory, among others.

An impending economic downturn, a shift in sourcing and demand-based supply chains are the key apparel sourcing challenges faced by US companies. Driving end-to-end process efficiency and cross-functional collaboration is crucial for companies to address such challenges.

The key economic indicators point towards an economic downturn in the United States. Companies need to prepare themselves better and develop cost-effective strategies to address sourcing challenges. Creating a centralised supply chain platform could help companies gain a comprehensive understanding of the end-to-end operations. Due to rising uncertainties, apparel sourcing has become a major challenge for many companies. Local sourcing is gaining popularity and companies are compelled to improve their transportation efficiency to address changing customer preferences. Nearshoring could increase, thereby, increasing the proximity of manufacturing operations to customers. Consumers today shop the latest fashions, creating pressure on businesses to keep shaving time off production and transit. Businesses need to integrate product line management with the supply chain strategy to improve the apparel sourcing process and reduce the time to market.

The US and China have embarked on a trade war that has seen them impose tariffs on a combined $360 billion worth of tariffs on imports, causing turmoil for financial markets and concern in sourcing circles.

Lenzing has opened a supply chain solution hub in Mumbai. The hub is expected to build connections between the supply chain and brands looking to adopt sustainable practices that are the need of the hour. The hub will become a center of innovation by building accessibility across its customers in India, bringing together Lenzing’s global expertise and network connections in the industry. Along with the specialty fibers solutions, the hub will house products and innovations created using Tencel and Ecovero fibers to attract both buyers and supply chain experts in India.

Lenzing came to India in 2007 and India is a key market for exports as well as a huge domestic consumption. Lenzing has been present across all major apparel categories in India such as ethnic wear, intimate wear, general outerwear, denims and home furnishings. The company has been associated with ace designers and leading brands. As part of the company’s country developments, Lenzing plans to increase its footprint by launching multiple hubs across key textile centers in India in the next couple of years. These strategic hub launches are expected to help our partners offer sustainable solutions with an ecologically responsible footprint to ease out the supply chain process.

While the idea of ethical fashion is becoming increasingly popular globally, few are willing to pay the price. Ethical brands have to compete with companies that rely on mass-production and use cheaper fabrics. Sustainable fabrics such as bamboo and linen are derived from plants, often cost more to produce than the typical synthetic fabrics of fast fashion. But the price tag should reflect environmental costs, health hazards and exploitation – or the lack thereof.

Fast fashion in its current unsustainable form is cheap as prices do not reflect the true cost. A change in consumer attitudes can allow ethical fashion to be made at a more affordable price. Giving away unloved clothing, attending garage sales and participating in local clothes-swapping events can move fast fashion out of the mainstream, putting ethical fashion in the spotlight. Through this hoped-for transition, companies can become more innovative in their means of production, leading to lower prices in the long term.

There are ethical brands making garments that cost more as they are created to show customers that what they are buying rivals the underpriced and decaying quality of fast fashion. Buying something from a fast fashion company and the cost per wear is say, Rs 5, wear it twice and it costs Rs 10. But buy a shirt for Rs100 and wear it 20 times, it ends up being the same.

"UK Trade Policy Observatory foresees, Brexit to impact the manufacturing sector which would lead to a significant drop in exports. However, continental manufacturers and retailers fear that UK operating outside the regulatory sphere of EU will be at an unfair advantage. Britian want to finalise this trade deal within a year as it will end the transition period for UK when it aligns with single market rules."

UK Trade Policy Observatory foresees, Brexit to impact the manufacturing sector which would lead to a significant drop in exports. However, continental manufacturers and retailers fear that UK operating outside the regulatory sphere of EU will be at an unfair advantage. Britian want to finalise this trade deal within a year as it will end the transition period for UK when it aligns with single market rules. However, fashion firms consider this time frame unrealistic as it may lead to negotiators overlooking some detailed protections they want, or even miss some opportunities of a post-Brexit world.

Focus on tariff-free market

The UK Fashion and Textile Association says, the deal needs to focus on creating a tariff-free market as British manufacturers rely heavily on exports to the EU. The British government should promote zero-tariff, zero-quota trade. The EU negotiators on the other hand are likely to agree to this only if Britain aligns with the bloc on issues like state aid, environmental rights and taxes.

Also, even if a free trade agreement covering these issues is reached, there are bound to be some disruptions post-Brexit as authorities will have to face increased border checks and other holdups caused by increased border regulation. Exporters will also have to fill in declaration forms, which add to the administrative costs — UK mid-market retailer Next estimated a cost of £150,000 per year under a no-deal scenario. This is likely to be a bigger problem for small exporters, since major retailers like Next that export more than £250,000 per year into the EU, already have to declare all the goods moved out of the UK.

Making laws more flexible

Another area of concern is the difference in regulation and standards of both as all goods manufactured in the UK and sold in the EU will need to comply with the regulatory standards of the latter — and vice versa. However, UK may ensure that all EU standards are properly matched.

An even more challenging question is to prove “rules-of-origin” for the clothing sector whose supply chain stretches across multiple countries. Adam Mansell, CEO, UK Fashion and Textile Association has been lobbying with the British government for more flexibility on rules. One possible change could be stipulating single transformation, which would mean just one production process, such as tailoring material into a suit, would be needed. Fashion firms such as H&M, which sources significantly from non-EU countries, are enthusiastic about the potential for a more liberal approach.

New migration system could lead to skill shortage

The British government has also pledged to introduce a new migration system according to which, British subjects will also lose their right to work and live in the EU freely. This has led to fears of a skills shortage if the government imposes a new points-based immigration system as soon as the transition period ends. Both Fashion Roundtable and the UKFT have expressed willingness to work with the government on upskilling domestic workforce but there are concerns about the readiness of the industry to adapt to changes in the short-term.

Mansell called for clarity on freedom of movement of goods-not-for-sale like samples. If the UK mirrors the rules of other third-party countries, these will now likely be subject to the ATA Carnet or “passport for goods” system. This also presents another challenge for London Fashion Week and the British Fashion Council. If models, creatives and extra garments cannot be sourced at short notice, then it becomes a less favorable environment for luxury brands to be a part of.

Cambodia’s exports of garment, textile and footwear products in the first nine months of last year were up 13.18 per cent. However, the country may lose its Everything But Arms (EBA) benefits for exports to the EU. If that happens the EU will initially impose 20 per cent tariffs on garments imported from Cambodia and 30 per cent on footwear.

It is estimated Cambodia will incur $500 million loss in exports from the withdrawal of EBA. Cambodia is confident of overcoming this loss. A rise in exports to the US and a boom in non-garment sectors are expected to generate many jobs and help absorb the impact of a potential withdrawal. So losing around 35,000 jobs is seen as no big deal since other industries can make up for the losses. The possible withdrawal of the EBA scheme by the EU would reduce many companies’ profits but would not hurt the garment industry as a whole. Though tariffs imposed by the EU would remove some of Cambodia’s attractiveness for investors, garment and footwear will have new destination markets aside from the EU, like the US and Asean countries. So losing EBA does not mean that Cambodia will lose investors altogether.

Levi Strauss & Co has returned to the public equity markets with a Spring IPO. The company also expanded its direct-to-consumer presence and international offerings. In 2019, Levi’s unveiled several creative collaborations with the likes of Star Wars, Hello Kitty and Stranger Things. It also worked with Nike to launch an exclusive collection of footwear and partnered with Google to create an improved version the Smart Trucker that allows consumers to control their phone from the comfort of their jacket.

On the retail front, with 100 new stores are planned for 2020, the company opened six ‘Next-Gen” stores across Europe and Asia in 2019 that amplify the Levi’s brand through redesigned storefronts, tailor shops, updated fitting rooms, etc. It launched its largest ever popup in Miami spanning 45,000 sq. ft. The popup showcases the best of the brand and the future of retail, [with] Levi’s premium products.

Levi’s is also expanding its digital business across pure-play and wholesale dot-com and its own e-commerce site, while growing its presence with mass-channel partners, like Target. In its US direct-to-consumer channel, Levi’s plans to open more mainline doors leveraging the successful model we deployed internationally–smaller footprint, more profitable, more capital-efficient stores in better locations.

Athletic footwear sales in the US rose slightly in 2019. Men’s, women’s, and children’s athletic shoes grew in the low singles, with children’s doing better. The top five brands in women’s athletic footwear all posted negative results. Women’s business remains the industry’s greatest challenge and its greatest opportunity.

Premium department stores fared the best of any channel, with a mid-single digit increase in sales. Mid-tier department stores suffered a decline in the low singles. Athletic specialty/sporting goods grew in the low singles, while shoe chains were flat. Sport lifestyle footwear—the largest category—improved in the high singles, as casual athletic inspired sneakers continue to be the market driver. The major performance categories were all negative – performance basketball shoe sales declined in the low teens (now representing less than five per cent of all athletic shoes sold), and performance running shoe sales declined in the low singles. Looking at other key categories, hiking shoes and cold weather boots were essentially flat for the year. Skate shoes grew in the low teens.

Nike had a low single-digit increase. Jordan grew in the mid-singles. Converse declined in the mid-teens. Adidas had a mid-singles decline, after a weak fourth quarter. Yeezy sales appeared to be down against 2018.

C&A has introduced the first Cradle to Cradle Certified Platinum denim fabric. The denim was created in partnership with Rajby Textiles and Eco Intelligent Growth. This is the first fabric worldwide to be certified at the Platinum level by the Cradle to Cradle Products Innovation Institute, a global non-profit dedicated to transforming the safety, health and sustainability of products through the Cradle to Cradle Certified Product Standard.

C&A is the first fashion brand to achieve the highest certification level within the Cradle to Cradle Certified Products Program. To achieve the highest levels of Cradle to Cradle Certified requirements, Rajby, its supplier, Archroma, and C&A teamed up to research and identify the most suitable materials and chemicals for the fabric. The resulting denim is optimized for material health–including the use of Global Organic Textile Standard (GOTS)-certified organic cotton fiber–made with 100 per cent rapidly renewable resources. The fully recyclable denim is also produced using a closed-loop process water system and is 100 per cent carbon neutral in the manufacturing stage.

As with its other circular innovations, C&A aims at sharing its knowledge open source to create a pathway toward circularity for the industry. The Cradle to Cradle Certified Product Standard can be used to power innovations that ultimately have the potential to transform the fashion industry.