The Surat textile cluster is facing a labor shortage. These units are heavily dependent on migrant labor, especially from Uttar Pradesh, Bihar, Orissa and Rajasthan. These workers haven’t returned after Holi and have taken a prolonged vacation especially in view of the elections. And this is happening at a time when textile units are flooded with orders for fabrics, dress materials, sarees and home furnishing due to the peak marriage season. Production has fallen by nearly 30 per cent. On an average, the daily minimum dispatch of textiles from Surat to other cities is around Rs 125 crores, but this has fallen to Rs 90 crores.

Surat’s textile cluster is one of the biggest textile clusters of India. Mandap cloth manufacturers in Surat and neighboring places are facing a similar issue. Surat is the biggest manufacturer of mandap cloth in the country with more than 250 units manufacturing only mandap cloth. There are nearly 1000 other units manufacturing mandap cloth as well as other fabrics. Surat’s textile cluster consists of more than 6.50 lakh power looms, nearly 4.50 lakh process houses and about 70,000 traders who add value in terms of making dress material, sarees and readymade garments. The industry is often plagued with labor absenteeism in case of natural calamities or disasters in the states from where migrant laborers hail.

Bangladesh has the potential to expand its share of leather and leather products in the global market if it can make its tanneries fully compliant with international standards. This is possible since Bangladesh has the advantage of a secure domestic supply of raw hides and skins and can gain from a higher value addition by making products from processed leather. Since China is moving toward high-end markets of leather and related goods including footwear this has created opportunities for countries like Bangladesh. For Bangladesh, leather is the second largest earner of foreign currency after garments.

However, for now solid waste is not treated properly in the leather industry. Sludge is not properly managed, dumping yards are open and poorly managed and the drainage systems require more maintenance. Pipelines and motors used in central effluent treatment plants are not capable of taking the load of the peak season. Tanneries need incentives for better environmental management and ensuring occupational safety.

Bangladesh needs tanneries compliant with a Leather Working Group (LWG) standard. LWG is made up of member brands, retailers, leather manufacturers, chemical suppliers and technical experts that have worked together to develop an environmental stewardship protocol specifically for the leather manufacturing industry.

"The ongoing trade standoff between the US and China is likely to affect not only the Chinese but also the US apparel industry. The war is already taking a toll on supply chains, with apparel companies pulling their sourcing away from China and moving to other Asian countries. These issues were the highlight of discussion at this year’s American Apparel & Footwear Association’s (AAFA) Executive Summit."

The ongoing trade standoff between the US and China is likely to affect not only the Chinese but also the US apparel industry. The war is already taking a toll on supply chains, with apparel companies pulling their sourcing away from China and moving to other Asian countries. These issues were the highlight of discussion at this year’s American Apparel & Footwear Association’s (AAFA) Executive Summit.

There is concern across the board about the ongoing crisis. President Trump has twice extended the deadline for a deal with China and the industry has been collectively holding its breath. In February, he delayed tariff and increase citing “substantial progress” on issues including IP and technology transfer. US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer will now work towards a final deal with a delegation of government officials from China scheduled to come to Washington for additional talks.

Deal needs upgradation

The trade deal between Washington and Beijing needs evaluation on several fronts. It requires a breakthrough including market access for the United States into China, as well as some structural reforms. The US has also demanded provisions for protecting IP and eliminating forced transfers of US technology. Negotiations will also determine whether these provisions are enforceable. Also, there’s a lot on the line from an image perspective, with the US administration setting high expectations for outcomes.

The negotiators will have to work on multiple fronts. One of the biggest hurdles in the enforcement of this deal is ensuring China actually follows through in areas such as opening its economy and respecting IP rights and technology ownership. Negotiators will also have to deal with issues such as the unpredictable behavior of President Trump and the uncertainty it throws into the process often compromising efforts by others.

Political crises hangs over the US

The next few weeks will be crucial for both the country as it will determine which country is more desperate for the deal. In the past five months, the economies of both the countries have suffered, although China’s slowing growth can be attributed to its deleveraging process, not the trade war. In 2007, China exports amounted to 37 per cent of its GDP, today this figure has declined to just 20 per cent, making the trade deal less important for China.

However, it doesn’t mean China doesn’t want the deal. But everything points toward the fact that US needing it more, especially given the political fallout that will result from continued tariffs going into the election season.”

Competition in the $60 billion global jeans market is heating up with major denim brands chalking out robust expansion plans. While Levi Strauss & Co. is going for an Initial Public Offering (IPO) to raise about $587 million, VF Corp plans to hive-off Wrangler and Lee into new entity Kontoor Brands. Gap and Old Navy also plan to demerge into two separate public companies to increase their market share. With mounting pressure from the Wall Street to increase volumes, these initiatives will generate fresh funds for expansion.

Fresh funds to fuel expansion

The Levi’s IPO, through which the company aims to raise up to $587 million, provides funds for retail, category and international expansion. The brand is on a roll right now and the infusion of cash will allow it to further expand its retail footprint.

The company plans to deepen its presence in emerging markets like China, India and Brazil, in order to drive long-term growth. Its net revenue in top five markets including the United States, France, Germany, Mexico and the United Kingdom collectively increased to $3.5 billion in fiscal year 2018. The company plans to expand across these markets though a combination of new stores, expanded wholesale relationships and an increased e-commerce presence. It might even acquire some other business and strengthen further their position in the market place.

Mixed response for the VF Corp’s Kontoor spinoff

The Kontoor spinoff has garnered a mixed response. Andreas Kurz, a former CEO at Hugo Boss USA, Diesel USA and 7 for All Mankind, doesn’t think the spinoff is a good move for Wrangler and Lee because the brands had benefitted over the years from VF’s structure. He feels, the company by separating from VF is creating additional costs in areas like sourcing, legal and overhead, thus making it less efficient.

Stefano Aldighieri, President of Another Design Studio, however believes the Kontoor spinoff will enable VF to create an independent powerhouse, which can reassert its dominant position in the jeans market. He believes it to be a great opportunity for VF to refresh the Wrangler brand and possibly expand it from its traditional Western wear market and to finally relaunch Lee and make it again the leading brand that it used to be.

Levi’s to strengthen men’s bottoms business

While Levi’s plans to maintain its core brand positioning, it will also enhance other labels. The brand is actively focused on maintaining and strengthening its men’s bottoms business, which will continue to be a key driver of its operating results.”

The company will also invest in marketing and advertising to increase engagement with brands, including TV, digital and influencer marketing. In addition, it will target value-conscious consumers through the Signature by Levi Strauss & Co. and Denizen brands sold through wholesale accounts, growing its business with accounts such as Walmart and Target.

Diverification to maximise focus

The Gap-Old Navy breakup will enable each company to maximise focus and flexibility, align investments and incentives to meet its particular business needs and optimise cost structures for greater profitability. However, it will also reduce the diversification that the brand provides to overall entity. It is indeed difficult for brands to stay on course when their demanding shareholders expect short term profit at all times. How these brands balance this pressure and continue to grow, remains to be seen.

The trade deal that the US and China are crafting would give China time until 2025 to meet commitments on commodity purchases and allow American companies to wholly own enterprises in the Asian nation. Under the proposed agreement, China would commit by 2025 to buy more US commodities, including soybeans and energy products, and allow 100 per cent foreign ownership for US companies operating in China.

The limited time frame raises questions about how much a deal would reshape the longer-term economic relationship. While some progress is being made, resolving more contentious issues such as the forced transfer of technology is taking longer. The US is pushing for China to front-load a big chunk of the commodities purchases in the first two years the agreement is in place.

One of the key issues is what will happen to the tariffs the two sides have imposed about $360 billion of each other’s goods in the past nine months. At least some of the tariffs may stay in place. The text will also include benchmarks, likely set at 90 days and 180 days after signing, by which China is asked to fulfill key pledges. The US wants the right to take unilateral, proportional action against China if it fails to abide by the rules.

A survey by McKinsey & Company and Camera Nazionale della Moda Italiana, Italian fashion’s governing body shows, sustainability has become an increasingly important factor in what buyers choose to stock. Researchers surveyed buyers at the most important international department stores including Saks Fifth Avenue and Barneys in New York, Takashimaya in Japan, Printemps in France, and Hyundai in South Korea. They shared the results at the Italian group’s third international roundtable on sustainability in Milan on March 26, 2019.

As per the survey, buyers expected to double their purchases of sustainable products over the next five years, raising it from 23 per cent of their total budgets to 42 per cent. A quarter of those surveyed had also stopped selling a brand or product that fell short on sustainability. What mattered most to store buyers was how a brand sources its fabrics, its transparency, and the treatment of workers at the factories making its clothes. They were ready to even pay a small premium for sustainable products.

Research funded by Australian Wool Innovation claims the Sustainable Apparel Coalition’s Material Sustainability Index (MSI), a product-focused tool that compares the sustainability of different textile materials, also needs better data inputs, improved transparency, to account for microfibre pollution and to consider the full lifecycle of products.

Researchers Dr Stephen Wiedemann and Dr Kalinda Watson performed a comprehensive analysis of the Sustainable Apparel Coalition’s MSI in a bid to provide a “constructive contribution” to increasing the reliability and quality of information in the rating system, which is increasingly an important reference tool by many international apparel brands and retailers.

Among key recommendations are the tool is improved to adhere global standards and guidelines for best practice in LCA. A key issue the researchers have is that the tool in its current guise excludes the product use phase and end of life.

The research also argues for microplastic pollution to be included in the MSI, although in fairness to the SAC, there is not – as yet – a universally agreed upon means of measuring microfibre impact, and the SAC has already told us that as soon as one is available, it will be incorporated.

The researchers claim the quality of data in the MSI is, in many instances, poor. They point out that it is common practice in LCA – and other fields of science – to report the scientific confidence in the results, indicating whether the differences are meaningful or just ‘noise’.

Nitin Spinners is investing in the best global technology to offer high quality products. Nitin Spinners was established in 1993 in Bhilwara. Today, Bhilwara produces about 80 million meters of fabric a month. Its strategic location is another plus point. It is located on the borders of Gujarat and Madhya Pradesh, which are cotton-producing states. At present, the company has two production units. One in Bhilwara which is a parent unit with a capacity of 2,25,000 spindles and the other one at Chittorgarh. Both these facilities are a composite unit. The decision to expand the open-end spinning capacity by upgrading the technology was important since the machines eliminate waste and increase production significantly.

In the last 20 years, the company has seen continuous growth. The compound annual growth rate in volumes and financial numbers has been more than 20 per cent. In the spinning sector, 3,00,000 spindles are in operation, producing 180 tons of yarn a day. The open-end capacity has increased to 3500 rotors producing 25 tons of yarn. As of now, knitting produces 800 tons of knitted fabric a month. Currently, the company is looking into expand into weaving. The reason is that the company is having high profits from the yarn business. The company has further expanded its profile to worsted spinning and woolen spinning.

Apparel Textile Sourcing Miami will be held from May 28 to 30, 2019. More than 10,000 fashion industry representatives will converge for a first-hand discovery of new developments and insights in the apparel and textile market — from concept to consumer. Among the key topics to be presented are latest updates on US trade policy, customs and imports, investment opportunities for apparel brands and retailers, industry trends and forecasts, and the future of fashion, technology and sustainability. The show will put together the most comprehensive sourcing seminars, expert panels and Q&A segments to arm representatives across all segments of the industry — brands, retailers, e-commerce sellers, designers, importers and buying offices — with the knowledge, tools and practical solutions they need to address current industry issues and navigate through the rapidly-transforming sourcing ecosystem.

There will be updates on latest developments in global trade, tariff and non-tariff barriers, and new sourcing opportunities. Navigating through the complex supply chain and other complicated issues associated with trade present a challenge for businesses, small and large. They can learn about ensuring compliance with current trade laws and policies surrounding imports, exports and customs, and reducing duty exposure. Global color authority Pantone will unveil trends for autumn/winter 2020/2021.

Kingpins Amsterdam will take place on April 10 to 11, 2019. The show will host 99 exhibitors. Different initiatives will be explored on the show floor. For this edition, initiatives by companies will be showcased. The most important attraction will once again be a mix of exhibitors and educational opportunities. The Kingpins Transformers area will return. New additions include installation of student work from a competition Kingpins supported earlier this year. Winning and runner-up collections will be displayed at the show. Avery Dennison will join Kingpins for the first time and highlight their products.

The show will ask denim spinners who exhibit to comply with, or exceed, current CSR regulations relating to environmental protection and the use of chemicals. The show’s goal is to become even more engaged in promoting environmental responsibility within the industry. Advise and support will be offered to exhibitors in order to help them transform their approach. Kingpins does not wish to introduce new certifications, but the organisers are keen to promote the strictest existing ones. Once they have drawn up a set of social responsibility specifications for exhibitors, they plan to share them with other textile shows, in order to promote collective change across the supply chain.