Chinese viscose producer Sateri has joined the Fashion Industry Charter for Climate Action, an initiative led by the United Nations Framework Convention on Climate Change (UNFCCC). This commitment from Sateri is the latest in a series of moves made by the viscose producer to best address sustainability improvements in its supply chain operations. As the latest signatory to the Charter, Sateri will participate in relevant Working Groups which bring together stakeholders and experts in the fashion and textile sectors. It will formulate Sateri Vision 2030 focusing on carbon reduction for a sustainable business.

Signatories to the charter share the common goal of reducing greenhouse gas emissions in the fashion industry by 30 per cent by 2030 and achieving net-zero emissions by 2050, actions which align with the Paris Agreement’s aim of limiting global warming below 2oC. Sateri recently also joined the Sustainable Apparel Coalition (SAC), China Association of Circular Economy (CACE), and the European Disposables and Nonwovens Association (EDANA).

Macy’s Inc reported a staggering $3.58 billion loss with Coronavirus-hit first quarter of the current financial year as store shutdowns resulted in the department store chain recording a $3 billion impairment charge. Net sales for the first quarter nearly halved to $3.02 billion.

On a per-share basis, it reported a net loss of $11.53 in the first quarter ended May 2 compared with a profit of 44 cents a year earlier. Excluding one-time items, the company lost $2.03 per share, meeting expectations, according to IBES data from Refinitiv.

The company had raised $4.5 billion last month including a $3.15 billion asset-based loan to keep its business running as stores reopened. As of May 2, it had $1.52 billion in cash and cash equivalents, and $18.58 billion in total liabilities and shareholders' equity.

The acquisition of Stoll by Karl Mayer has set course for the formation of a trans-technology global player, who changes the world of its customers and of the textile sector. With this acquisition, Karl Mayer has become the leading provider of solutions for the two most important stitch- forming processes, flat knitting, and warp knitting. The company’s entire expertise in the fields of warp knitting, flat knitting as well as technical textiles, warp preparation for weaving and digital solutions is now housed under one roof.

Stoll will continue its activities within Karl Mayer as autonomous business unit. The brand will be carried on independently, and represents Karl Mayer’s expertise in the field of flat knitting technology. Karl Mayer also relies on Stoll’s proven management. The previous CEO, Andreas Schellhammer, will become president of the Stoll business unit within Karl Mayer, according to a press release by Karl Mayer.

Raja M Shanmugham, President, Textile Exporters Association (TEA) has urged Piyush Goyal, Union Minister of Commerce to help clear the 500 containers carrying apparel accessories and fabrics currently stuck in and around Chennai. These containers have come mainly from China. The imported consignments arriving from China have not been cleared by the Customs for the past 10 days even after duty has been paid. Shanmugham said garment exports are facing stiff competition from countries like Bangladesh, Vietnam and Cambodia, apart from China and foreign buyers are always very keen to get quality products at competitive prices and tight delivery schedules.

According to him, any delay in making sea shipments at the right time will push exporters to resort for Air shipment, otherwise the buyers won’t place any future orders and categorize the units as unreliable suppliers.

International Apparel Federation (IAF) launched a new initiative to help the worldwide fashion and lifestyle community to improve its CO₂ emissions through fashion logistics. The initiative will support the creation of the worldwide industry standard for measuring carbon dioxide emissions through fashion logistics. Additionally, it will support the fashion industry to reduce the carbon footprint of its logistics operations by innovating and by cooperating.

Currently, IAF is mobilizing all industry association members in various countries signing up for the initiative. The federation is working closely with both fashion-logistics and data analyses experts under direction of longtime partner Greenway Logistics. The initiative will offer practical, hands-on support to the SME and fashion community through a suite of services to measure and reduce their CO₂ levels in logistics through individual actions and particularly through collective industry projects.

International Apparel Federation( IAF) will launch maiden virtual Global Apparel Sourcing Expo on July 15. The month-long event, which concludes on August 14, will offer price benefits to those apparel manufacturers that are IAF members or members of one of IAF’s organizations. It will include conference programs where global industry experts will speak on varied topics like Sustainability and CSR post COVID-19, Shifts in Global Trade and Digital Product Development as the New Normal.

Before the start of this show, IAF will also conducting a webinar on 9 July titled ‘The New Fashion Delivery Calendar’, wherein the focus will be on the fact that regular flow of fashion calendar has been broken. Under the inspiring leadership of its president Han Bekke and his team, IAF is today committed to achieve all its missions, which also includes connecting and supporting all its members across the globe in expanding their own international network and thereby their ability to do or support the growth of their or their members’ international business.

As a part of its efforts to make cellulose fibers less environmentally impactful, Lenzing plans to expand assessment of its Materiality Analysis report to more stakeholders in 2020. Originally released in 2015, the report prioritizes sustainable topics that guide its efforts. The rankings in the report reflect the influence of these activities on stakeholder decision making and the impact of Lenzing’s efforts in this area.

Lenzing first identified the relevant topics by gathering information from employees at its Sustainability Day, as well as through interactions with external stakeholders. From there, a survey was sent out to key customers, as well as employees at varying levels within Lenzing Group. After this study, the results were plotted on a matrix and reviewed by Austrian sustainability consultancy Denkstatt GmbH.

Since the Materiality Analysis first came out, it has been reviewed in 2017, 2018 and 2019, but the topics and rankings have remained the same. It also served as the basis for the company’s ‘Naturally Positive’ sustainability strategy introduced in 2017.

A joint statement by the leading industry bodies of Cambodia states, over 15,000 workers in Cambodia are likely to be jobless as about 400 garments, footwear and travel goods factories in the country have suspended their operations due to the COVID-19 pandemic. The statement was released by associations like Garment Manufacturers Association in Cambodia, the Cambodia Footwear Association and the European Chamber of Commerce in Cambodia.

Statement says, numerous brands and retailers in Europe and North America have canceled or delayed orders due to the drop in retail sales in Europe from the pandemic. Consequently, millions of Cambodians could fall back into poverty due to this crisis as unemployed workers only receive a stipend of $30 from the factory and $40 from the government per month. The statement therefore, urged the European Union to postpone the effective date of partial withdrawal of Cambodia's Everything But Arms (EBA) trade benefits for a year due to the pandemic in Cambodia.

Apparel manufacturers invested lot of money in sustainable technologies in the pre-COVID period. However, now many of these manufactures have shifted focus on producing cheaper goods as retailers and brands began demanding discounts on the agreed price for their orders. They even threatened to cancel orders putting millions of jobs at risks. Hence, there is a need to redefine sustainability in the fashion industry in the post-COVID-19 pandemic world.

Embedding social causes in core business

Post COVID-19, manufacturers will have to integrate environmental, social, and purchasing considerations into their core business practices besides making new innovations in sustainability. They will also have to protect workers’ rights and livelihoods. Another way manufacturers can redefine sustainability is by forming greater collaboration and equitable partnerships across all parts of the value chain. They must avoid backsliding on progress by seeking practical and actionable guidance and preparing themselves for a changing industry.

They should resolve immediate inventory challenges by taking advantage of digitalization, innovative business models, and end-to-end solutions – with transparency playing a central role – to assess and demonstrate positive environmental and social impact to stakeholders.

Reinventing business models

The present system of placing new work orders enable clients to alter their ordered items or abandon contracts at any time without hesitation. It also enables them to demand discounts in case of any failure or flaws. Therefore, Bangladeshi apparel makers need to develop a new business model which would make both parties equally responsible for placing orders and purchasing raw materials

An ideal solution would be for buyers to pay for raw materials at the time of placing orders. Trade associations can formulate a set of guidelines including clauses such as no orders without irrevocable LC, views Mostafiz Uddin, Managing Director, Denim Expert.

While maintaining sustainability in their business, fashion companies not only need to safeguard human capital, financial capital, and supply chain relationships but also manage orders and preserve supply chain relationships. They also need to engage in collaborative conversations and respectful dialogue with suppliers on addressing these issues together.

Think out of the box

Lastly, thinking out of the box, manufacturers need to focus on creating a virtual marketplace (business to consumers) like Amazon, eBay as the consumer’s behavior towards purchasing changes rapidly, says Rubana Huq, President, BGMEA. They also need to emphasize on product diversification and technology up-gradation as demands for recycled, non-cotton based clothing goods and circular products items is on the rise, she adds.

The denim industry has been integrating new fabric technologies and retail formats to boosts sales for a while. However, increasing unemployment and store closures are forcing the industry to face an unfamiliar retail landscape. These were some of the views presented at a Kingpins24 panel moderated by Edward Hertzman, President, Sourcing Journal, John Deputato, President-US Apparel, The NPD Group and Mark Cohen, Director, Retail Studies and Adjunct Professor at Columbia Business School. The panel focused on how the COVID-19 pandemic is causing enormous changes within the global denim industry.

Boost to online retailers

According to Dupato, the pandemic has turned even the most reluctant consumers into online shoppers. This gave a boost to operations of those retailers’ with a legitimate online presence and able to fulfill orders in a reasonable way. Following their initial rush for essentials items like toilet paper and sanitizer, etc consumers have shifted focus to comfort-driven apparel categories like innerwear, socks and pajamas. These apparels are mostly being sold by retailers selling essentials like Walmart, Target and Amazon. Retailers, selling denims and workwear through these stores are currently doing very well.

Patience and focus to guarantee future success

Though this augers well for the industry, rising unemployment is a huge cause of concern for retailers as it will drive away millions of consumers who will now be unable to shop. Consumers’ priorities will once again shift to essentials as a result of which denim retailers may have to wait for a few years for demand to return.

This year as individual states reopen on different timetables, consumers will spread out their purchases across the year. They expect brick and mortar retailers to focus on sanitization and social distancing measures in their stores. On their part, retailers expect the holiday season to be quite dismal in 2020. However, they expect online sales to accelerate with BOPIS (buy online, pick up in store) purchases gathering momentum.

A bright outlook

Casual attire is unlikely to go out of fashion anytime soon. Hence, the outlook for the denim industry remains bright. As long as manufacturers deliver consumers demand for comfort and performance, denim stands a fair chance to be part of the casual apparel rebound, believes Dupato. Echoing the same sentiment, Cohen noted the denim business is unlikely to see any kind of decline from consumer usage point of view. It has always resonated with manufacturers across the world and will continue to do so.

In fact, retailers and manufacturers who have a powerful market share will easily tide over the crisis, said Cohen. They may not sell to as many customers as they were prior to the pandemic but will continue to sell to retailers that are doing business.