The rapid increase in cotton prices this year has led to a widening of the price gap between cotton and PSF (Polyester Staple Fiber) and VSF (Viscose Staple Fiber). This trend was particularly noticeable in April and July, when the price differences experienced significant expansion. 

However, cotton prices have been undergoing adjustments in August, causing the price gap with other fibers to stabilize somewhat. Despite this stabilization, the price difference remains above the average value, serving as a catalyst for shifts in the fiber market.

The chart in the image shows the relatively consistent price difference between VSF and PSF, which has recently shown a minor narrowing. Similarly, the price difference between cotton and other fibers remains relatively stable. Although there has been a slight recent narrowing in this price difference, it still remains higher than the average level.

The second image shows a clear shift away from cotton to other fibers during the latter half of 2021 and the first half of 2022. This trend persisted for about a year. From late May 2023, the price difference between cotton and other fibers has been gradually widening, surpassing the five-year average and persisting for three months. In terms of the short-term trajectory of cotton, PSF, and VSF, this price difference is likely to continue for a certain duration. Whether it will further increase depends closely on cotton prices.

From the standpoint of downstream profits, various types of yarn such as cotton yarn, polyester yarn, rayon yarn, and major blended yarns are all experiencing unfavorable profitability. 

Among these, cotton yarn is facing the most significant losses, followed by polyester/cotton yarn. Yarns with a substantial cotton component are all encountering adverse profitability, discouraging manufacturers from shifting their production. However, the inclination towards substitution is observed when considering downstream pressures and the need for cost reduction.

Bangladesh's apparel exports to the European Union (EU) declined by 12.69% in the first half of 2023, totaling 9.06 billion euros compared to 10.37 billion euros in the same period of 2022. This decline can be attributed to a reduction in clothing demand within the EU's 27-nation economic bloc due to high inflation.

Exporters noted that although inflation was beginning to subside, the import of apparel by the EU continued to exhibit a significant downward trend. 

Eurostat, the statistical office of the EU, provided data indicating that knitwear imports from Bangladesh for January to June 2023 decreased to 5.38 billion euros from the 6.40 billion euros recorded during the same period in 2022. Similarly, Bangladesh's woven garment exports to the EU for the first half of 2023 decreased to 3.68 billion euros from the previous year's 3.96 billion euros.

Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), commented that although inflation was easing in key export markets and economic indicators were stabilizing, apparel imports by the EU and the United States continued to decline significantly. 

He noted the challenge of forecasting the market and suggested a cautiously optimistic outlook for the remainder of 2023. He anticipated a potential dip in apparel and overall global trade compared to the previous year.

Overall, the decline in Bangladesh's apparel exports to the EU is a sign of the challenging economic conditions facing the global apparel trade. The headwinds of high inflation and a slowdown in economic growth are likely to continue to weigh on demand for apparel in the coming months.

The eagerly anticipated annual Asian Textile Conference (ATEXCON), organized by the Confederation of Indian Textile Industry (CITI), returns for its 11th edition from August 31st to September 1st, 2023, in Coimbatore, Tamil Nadu. With the theme "2025 & Beyond: Asia’s Global Hub for Textile Manufacturing & Consumers," this event is set to gather over 400 participants from the global textile and apparel value chain.

Shaping the Textile Landscape

ATEXCON serves as a convergence point for Asian textile industry leaders, global input suppliers, and service providers to deliberate on crucial business facets. The conference will spotlight regional and global concerns within the sector while also emphasizing opportunities through cross-border collaboration. The event is renowned for spotlighting technological advancements and sharing best practices within the textile value chain.

Asia's Textile Ascendancy

Asia has risen as the epicenter of textile and apparel production, boasting substantial statistics: in 2021, Asia and Oceania commanded 89% of ring spinning capacity, 82% of shuttle-less weaving, and 85% of circular knitting capacity globally. Furthermore, half of the world's cotton and 80% of man-made fibers hail from Asia. This region holds a pivotal position in non-woven production, commanding more than half of the world market share.

Trends Shaping the Future

Asia's stature extends to global trade, with textiles and clothing ranking among the top five manufactured goods traded worldwide. The continent hosts 60% of the world's population, contributing to its substantial GDP share and per capita textile consumption. This demographic force spurs demand for consumer and technical textiles. Amid this growth, Asian textile and apparel manufacturers are embracing sustainability, technology, and circular production systems.

ATEXCON: Forging a Sustainable Path

The 11th ATEXCON, endorsed by the Southern India Mills Association (SIMA) and aided by the Government of Tamil Nadu, serves as a collaborative platform. Renowned figures like Piyush Goyal, Union Minister of Textiles, Commerce, and Industry, will share insights, while eminent speakers explore resilient supply chains, regional partnerships, sustainable textiles, and financial risk management. With vital industry players and associations in participation, ATEXCON is poised to guide Asia's textile industry toward a sustainable future beyond 2025. It garners support from leading trade associations such as ITMF, Joint Apparel Association Forum, AEPC, TEXPROCIL, SRTEPC, CMAI, HEPC, and TEA, and secures sponsorship from notable entities like The Sakthi Group of Companies, Lakshmi Machine Works (LMW), Birla Cellulose, Waaree, and India ITME Society.

Coats Digital's groundbreaking time-cost benchmarking tool, GSDCost, has achieved finalist status in the esteemed 2023 SaaS Awards. Competing in four categories—Best SaaS for Improved Productivity, Business Intelligence, Data-Driven Solutions, and Product Analytics—this recognition underscores GSDCost's unique contribution.

Global Innovation Recognized

Celebrating its 8th year, The SaaS Awards continues to honorSaaS advancements worldwide. With submissions spanning the globe, including North America, Europe, and Australasia, the competition highlights the industry's best.

Diverse Category Showcase

The 2023 program showcases a range of categories, spotlighting exceptional SaaS solutions. From "Bespoke SaaS Solution" to "Most Agile SaaS Solution," the awards highlight innovation across verticals.

KunalKapur's Perspective

KunalKapur, Managing Director of Coats Digital, expresses excitement about the four-category finalist position. GSDCost empowers brands and manufacturers through cloud-enabled collaboration, transparency, and sustainable supply chains. Recent module launches, like the Fair Wage benchmark tool, highlight Coats Digital's commitment to innovation and social responsibility.

The SaaS Awards' Perspective

James Williams, Head of Operations at The SaaS Awards, acknowledges the fierce competition and innovation in this year's finalists. The selection process is bound to be challenging, given the exceptional quality displayed.

Winners Awaited

The winners of The SaaS Awards will be announced on September 13, 2023, marking the culmination of this year's program.

Looking Forward

With the 2023 program attracting global submissions, The SaaS Awards promises a return in 2024 to recognize international SaaS excellence once again. Additionally, the Cloud Security Awards will return, seeking the latest in cloud security innovations.

The United Kingdom and the Association of Southeast Asian Nations (ASEAN) are jointly crafting the new ASEAN-UK Economic Integration Programme. The UK government's allocation of £25 million over five years to back ASEAN's economic integration was revealed during the recent Third ASEAN Economic Ministers (AEM)-UK Meeting in London.

Advancement of joint ministerial declaration

The gathering commended the advancement of the work plan for executing the joint ministerial declaration for future economic cooperation. Since its adoption the previous year, 26 activities across 11 priority sectors involving 26 ASEAN sectoral bodies have been initiated, with an additional 60 activities slated for the coming years.

Robust trade growth

In nominal terms, UK-ASEAN trade flows escalated by over 20% from 2021 to 2022, illustrating a post-pandemic rebound. Overall UK trade with ASEAN surged by 21.4%, climbing from £38.3 billion in 2021 to £46.5 billion in 2022.

UK's investment standing

In 2022, the United Kingdom held the seventh position among foreign investors in ASEAN. The outward foreign direct investment (FDI) from the UK to ASEAN in 2021 was at least £25.1 billion, as stated in a joint post-meeting release.

Addressing global challenges

The discussion delved into regional and global predicaments, including the pandemic's multi-dimensional impact, climate change, financial market volatility, inflation, and geopolitical tensions. These factors could potentially influence economic and trade ties between the UK and ASEAN.

Commitment to multilateral trade system

The assembly reiterated its dedication to a rule-based, equitable, and open multilateral trading system anchored by the World Trade Organisation (WTO). Strengthening the WTO's efficacy and pursuing reforms for a fully operational dispute settlement mechanism were underscored as priorities.

VF Corporation (NYSE: VFC) has named Brent Hyder as Chief People Officer, effective September 5. Reporting to President and CEO Bracken Darrell, Hyder will join VF's executive leadership team.

Proven track record at salesforce

Formerly Chief People Officer at Salesforce, Hyder led the company to prominent positions on workplace rankings, including Great Place to Work, Fortune, People, Glassdoor, and LinkedIn.

Rich retail experience

With nearly 30 years in retail, Hyder's background includes 15 years at Gap Inc., where he served as Chief Human Resources Officer, overseeing global human resources, communications, security, Gap Inc. Foundation, and sustainability. He also held key roles at Target Corporation, Best Buy, and Gap Inc.'s various brands.

Driving employee success

In his new role, Hyder will oversee global human resources, focusing on talent acquisition, retention, and employee programs, supporting VF's 30,000 employees' growth and success.

Enthusiasm for VF's vision

Hyder expressed excitement about contributing to VF's consumer-focused growth strategy, acknowledging the company's brand strength, environmental stewardship, and commitment to diversity and inclusion.

Education and Philanthropy

A Brigham Young University graduate in Retail Management, Hyder is a director at Enterprise for Youth, aiding under-resourced youth through transformative paid internships.

GoodWeave International and Fair Wear Foundation have united efforts to address child and forced labor within hidden corners of the apparel and textile supply chains. As the European Union develops mandatory human rights due diligence legislation, their combined expertise becomes a crucial asset for businesses aiming to uphold human rights and responsible practices.

Targeting the Hidden Exploitation

Urging Fair Wear member companies sourcing from India, the collaboration encourages them to become GoodWeave licensees. This facilitates comprehensive supply chain mapping and inspections, tackling labor exploitation beyond primary factories and encompassing sub-contracted and home-based setups where the majority of abuse occurs. Remediation and prevention initiatives are integral to the partnership.

Shared Expertise, Collective Progress

GoodWeave acts as Fair Wear's knowledge partner, aiding member companies in identifying, remediating, and preventing child, forced, and bonded labor. The alignment of both organizations' work on collaborative buyer-exporter partnerships strengthens the partnership.

Focused Vision for Ethical Practices

Silvia Mera, Senior Director of Strategic Partnerships and Advocacy at GoodWeave International, underscores the alignment of their work, emphasizing the commitment to bolstering human rights due diligence in the textile industry.

About GoodWeave International

Established in 1994 by Nobel Peace Prize laureate KailashSatyarthi, GoodWeave International leads the battle against child labor in global supply chains. Their collaborative approach partners with companies and local communities to ensure supply chain transparency, uphold workers' rights, and guarantee products' freedom from labor exploitation. The GoodWeave® certification label marks child labor-free rug and home textile products.

The August 2023 ‘Apparel Trade Scenario in Key Global Markets and India’ report by Wazir Advisors, spanning June and July 2023 shows no significant change in trade scenario. Comparing the report issued at the end of July 2023 to the soon-to-be-published one, there are no newsworthy changes but more affirmation that RMG imports are currently low in Western markets and in stagnation in Japan this month, having experienced a rise last month. Indian exports continue to lose ground, making exporters around the country nervous about 2024. 

Indian exporters continue losing orders

In July 2023, India’s RMG exports were estimated at $1.1 billion, 21 per cent lower than in July 2022 exports. On a year-to-date basis that reads 15 per cent lower than exports achieved in 2022. However, in some relief, from January to July, India’s RMG exports have not lost further ground after losing 6 per cent in 2022 compared to 2021. On the other side, India had gained 5 per cent extra share in 2022 in the US market compared to 2021 but lost 2 per cent this year between January and June 2023. 

A new angle is developing in India’s RMG export basket – India is steadily growing a diversified market as its ‘other’ markets are steadily growing, with the ‘others’ standing at 42 per cent between January and June 2023 compared to 37 per cent in 2021. 

Japan’s RMG import stagnate in June

The latest Wazir report also indicates import stagnation instead of growth setting in Japan. The country imported RMG worth $1.6 billion in June this year, which is exactly the same amount it imported in last June, indicating no change year-to-date. Between January and June this year, China lost 4 per cent of Japanese market share, with Bangladesh gaining 1 per cent and other sourcing destinations gaining 3 per cent. Vietnam and Cambodia experienced no growth in their respective market shares. 

EU arrests its downward slide by 12 per cent in June

The EU’s apparel imports in May 2023 decreased 22 per cent compared to May 2022 but come June, the decrease gap was 12 per cent less at 10 per cent, compared to June 2022. The value of RMG imports within the EU in June 2023 was $7 billion and on a year-to-date basis overall RMG imports are down by 4 per cent. 

UK sees positive growth all around in June

In June 2023, the UK imported RMG worth $1.9 billion, which was 5 per cent higher than in June 2022. Moreover, in July 2023, UK’s monthly apparel store sales were £3.7 billion, 3 per cent higher than July 2022 and its Q2 2023 online sale of RMG registered a 10 per cent increase compared to Q2 of 2022. 

US retail growth remains positive as imports drop

In July 2023, US monthly apparel store sales were estimated at $18.2 billion, 5 per cent more than in July 2022. On year-to-date, RMG sales in 2023 are 5 per cent higher than in 2022. In Q2 2023, online sales of RMG and accessories registered negligible 1 per cent growth over Q2 2022. In home furnishing category though it is negative growth – store sales were down in July 2023 by 10 per cent compared to July 2022. This July, total sales value was at $ 4.7 billion. 

However, the story is different in RMG import front – the US imported $6.6 billion worth RMG in June 2023, 23 per cent lower than June 2022. On a year-to-date basis, the figure is 22 per cent lower than in 2022. Thanks to the Xinjiang issue, China lost a 5 per cent market share since 2021. 

Textile giants in Pakistan to supply fabrics to Philippine garment exporters

The largest textile and garment factories in Pakistan have committed to supplying textiles and fabrics to Philippine garment exporters.This is a major development as the Philippines does not have a significant textile industry.The Pakistani factories will supply mostly 100% cotton sheets and denim.The Pakistani factories are able to offer lower prices than other countries due to their lower production costs.

Philippines has unparalleled access to key markets

The Philippines has unparalleled access to key markets, including ASEAN, APEC, Asia, Europe, and the United States.This makes it an attractive destination for Pakistani exporters.The Philippines is also a member of the World Trade Organization and the European Union's Generalized Scheme of Preferences Plus program, which gives it access to preferential trade terms.

Pakistan has invested in Philippines

Pakistan has already invested in the Philippines in various sectors, including garments, textiles, and pharmaceuticals.This investment is likely to increase in the future as the two countries strengthen their trade ties.

Sri Lanka has expressed its intention to join the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement. The announcement was made by President Ranil Wickremesinghe on August 8, 2023, during a speech marking the 56th anniversary of the Association of Southeast Asian Nations (ASEAN).

RCEP is a trade bloc that includes 15 countries in Asia-Pacific, including China, Japan, South Korea, Australia, and New Zealand. It covers a market of over 2.3 billion people and a GDP of $28.3 trillion.

Sri Lanka's membership in RCEP would be a major boost to its economy. The agreement would lower tariffs on goods and services, making it easier for Sri Lankan businesses to export their products to other RCEP countries. It would also open up new investment opportunities for Sri Lankan businesses.

In addition, Sri Lanka's membership in RCEP would help to demilitarize the Indian Ocean. The agreement includes a commitment to cooperate on maritime security, which could help to reduce tensions in the region.