Sri Lanka’s ongoing crisis is leading to a loss of 10-20 per cent of orders that are being diverted to India and Bangladesh, warns Felix Fernando, Joint Apparel Association Forum.

As per a Tamil Guardian report, major brands have had to meet with buyers in recent weeks to reassure them that the ongoing unrest in the country would not disrupt their orders.

According to a report by the Export Development Board, Sri Lanka’s apparel and textile turnover increased by 13 per cent Y-o-Y to $1.9 billion between January and April 2022. However, the country may not be able to sustain this if it fails to restore buyers’ faith

The situation may further worsen by concerns of a coming global recession which would further dampen the buying power of apparel buyers and badly damage Sri Lanka’s export sector.

Fernando noted that road closures due to protests had caused difficulty for apparel companies in getting their workers into the factories leading to missed deadlines. However, he notes that trade unions have recognized the seriousness of the challenge and have not taken to strikes. Fernando further states:

Gap Inc, a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the US reported fiscal 2022 financial results for its first quarter ended April 30, 2022.

As per the company’s figures, its net sales declined by 13 per cent to $3.5 billion, from last year. Sales growth was negatively impacted by an estimated 5 percentage points related to lapping the benefit of stimulus last year and approximately 3 percentage points from divestitures, store closures, and the transition of the company’s European business to a partnership model.

Comparable sales declined by 14 per cent Y-o-Y. Online sales declined by 17 per cent compared to last year and represented 39 per cent of total net sales. Store sales declined 10 per cent compared to last year. The company ended the quarter with 3,414 store locations in over 40 countries, of which 2,825 were company operated. The company’s gross margins declined by 930 basis points from last year to 31.3 per cent.

Footwear brand Crocs has launched its first ever India-specific collection in collaboration with lifestyle retailer Chumbak, The collaborative venture titled, ‘It’s a Vibe,’ speaks a contemporary and Gen- Z inspired fashion vocabulary.

As per a Vogue report, the Chumbak X Crocs collection features a vibrant reinterpretation of the staple clogs. The signature Chumbak designs known for their joyous color palette and patterns of ikat and paisley rejuvenate the footwear through an Indian lens. Synonymous to everything exciting and inventive, the collection inspires a new generation of street style and elevates any look that passes the vibe check. (pun intended)

The one-of-a-kind colorful clogs are decked with fun jibbitz featuring cultural motifs, logomania and cute doodles. Practical, quirky and decorative, these shoes retain the best of both brands. Their traditional Indian patterns and designs retain the magpie vibrancy that is often typical to an Indian wedding.

In 2021, GOTS increased the number of certified facilities by 19 per cent to 12,338 facilities across 79 countries, shows the firm’s 2021 Annual Report.

As per Textile Network, the report details the growth achieved by the firm in 2021, which included an increase of 19 per cent in GOTS certified facilities around the world, with Certification Bodies (CBs) reporting 12,338 facilities in 79 countries.

Three new GOTS-approved Certification Bodies brought the total to 18, nine of which have chemical input approval in their scopes. The additional CBs are helping meet an ever-increasing demand for certification. The rise in certifications also allowed GOTS to expand internally, adding representatives as well as colleagues with expertise in Standard Development and Implementation, Quality Assurance, Communication, and IT. Visits to the GOTS website jumped 43 per cent from 2020 and GOTS’s following on social media expanded significantly, gaining 57 per cent across platforms.

Additional highlights covered in the report include chronicling the implementation of the most recent update to the standard document, GOTS version 6.0, and the release of ‘Conditions for the Use of GOTS Signs (CUGS)’, which outlines the rules for using the GOTS logo and labeling and updates to GOTS Scope and Transaction Certification policies which are a crucial part of the certification process.

South India’s largest multi-brand footwear chain, Centro has teamed up with American lifestyle brand Toms to launch its footwear in India.

As per an Indian Retailer report, Toms will introduce its iconic collection of slip-ons having a durable and flexible sole. A few of the footwear styles also have earth-friendly elements like uppers crafted in heritage canvas or recycled cotton canvas, and insoles with 50 percent eco content. The Alp is the ultimate throw-on-and-head-anywhere shoe, it’s pragmatic and uncomplicated and a statement of people’s values. All products designed by Tom help support efforts to build equity at the grassroots level. Their packaging is earth-friendly with carton boxes/paper bags made from recycled paper and filling, making it a great gift for earth-conscious consumers.

The Alp and along with a wide range of fashion-forward and sneaker-sized iterations is being sold throughout India with the latest Spring Summer 2022 collections. With an expansion plan of 20 dedicated - Free Standing stores in the next three years. Currently, Toms is available on the brand website, Tata Cliq, Tata CliqLuxe, and Centro. Style and coming soon on Myntra, MyntraLuxe, Ajio Gold, AjioLuxe, and Nykaa Fashion. Further customers can experience the brand offline across Centro Stores and coming soon at Shoppers Stop, Regal, Venus Steps, D-lounge, and in cities in India like Mumbai, Delhi, Hyderabad, Bengaluru, etc.

Blaming the government for driving up fiber prices, textiles and garment firms have urged for a ban on futures trading of cotton. Domestic cotton prices have more than doubled to breach Rs 100,000-mark per candy of 356 kg in the past one year. Consequently, cotton yarn prices, too, have jumped substantially.

In December 2021, to regulate rising prices, stock and commodity markets regulator Sebi suspended futures and options trading for one year in seven farm commodities: chana, mustard seed, crude palm oil, moong, paddy (Basmati), wheat and soyabean and its derivatives. However, it did not ban cotton trading completely. However, now exporters have requested the government to ban futures trading of cotton completely. Similarly, they have requested the government to formulate a long-term strategy to ensure adequate availability of cotton to consuming industries, informs Raja Shanmugham, President, Tirupur Exporters Association.

Cotton yarn prices surged 20 per cent to Rs 446 per kg in May, points out Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC) in a letter to Piyush Goyal, Textile Minister. This continuous price-rise may make India highly uncompetitive in the global textile markets, he adds. The AEPC has recommended quantitative restriction on export of raw cotton and cotton yarn and besides reducing declaring cotton as essential commodity to help government regulate its supply. Sanjay Jain, former Chairman, CITI opines, rising cotton prices are eroding India’s competitiveness vis-à-vis the world’s largest textiles and garment player.

To enable footwear brands to better serve Indian consumers, the Central Leather Research Institute, under the Council of Scientific and Industrial Research, has launched the 3D foot mapping project. The project involves developing India-specific footwear-sizing chart. The project involves a survey of over 100,000 people in the age group of 05-55 from across 73 Indian districts. The size chart will be developed upon completion of the survey.

The survey involves collecting of 29 data from each Indian foot examined, says Sreeram, Director, Central Leather Research Institute. Indian feet generally have a wider front portion compared to European feet. This can make European-sized footwear uncomfortable for many Indians, he adds. Indian sizing standard for footwear will be published in the Bureau of Indian Standards by the end of 2022, By then, footwear makers will starting manufacturing shoes and closed footwear for men, women, and children, he adds.

Founded in 1948, the Central Leather Research Institute is also celebrating its 75th year platinum jubilee this year. The organization has released a commemorative stamp with the Indian postal department to celebrate the occasion.

Anticipating no COVID-19 related shutdown during the year, American retailer Guess Inc expects fiscal 2023 revenues to increase by 4 per cent. The company’s revenues increased 21 per cent to $593 million during Q1 FY’23 from $520 million in the same prior-year quarter due to a surge in licensing sales and Americas wholesale revenues.

Retail revenues from the Americas increased 7 per cent while composite sales including e-commerce, increased 3 per cent. Wholesale revenue from the American region increased 50 per cent. Revenues from Europe increased 14 per cent, while the region's retail composite sales, including e-commerce, decreased 6 per cent. Revenues from Asia increased 1 per cent while the region's retail composite sales, including e-commerce, decreased 11 per cent.

Despite the sales uptick, net earnings for the three months ending April 30 fell to $10.5 million, from $12.9 million in the quarter last year, said Guess.

Naveena Denim Mills launched a new collection in collaboration with denim design studio, Endrime Studio during the May edition of Denim PV in Berlin. As per a report by Spin Off, the collection explores alternative ways to design modern denim garments using a mix of cellulosic fibers like Tencel Lyocell and Modal mixed with cotton.

Aydan Tuzun, Executive Director, Sales and Marketing, Naveena Denim Mills opines, designing a circular economy requires a shared vision and actions to support it. This collaboration will lead to not just amazing denim with authenticity but it will invite all industry leaders to close the loop together. Tencel Lyocell and Modal fibers used in this collection will add softness and strength to traditional denim looks, addsTricia Carey,Director, Global Business Development, Lenzing Fibers Inc.

India’s apparel imports increased by 43.58 per cent Y-o-Y in FY’22 to $1,28 billion. As per an Apparel Resources report, India’s imports of knitted garments surged by 54.12 per cent while the import of woven garments increased by 35.09 per cent to $ 659.61 million.

Imports from Bangladesh increased by 78.87 per cent to $523.04 million and accounted for 41.34 per cent share in total Indian apparel import values. Bangladesh surpassed China to become top destination for India buyers as imports from China remained stagnant at $297.73 million in FY ’22.

India’s apparel imports from Spain increased by 36,28 per cent Y-o-Y to $104.24 million. India’s apparel imports will continue growing as its fashion retail market is registering a M-o-M increase in its sales revenues.