Under Armour forecasts its full-year profit to be lower than analysts’ estimates. The sportswear makers’ bottom lines are likely to be impacted by higher transportation costs and renewed COVID-19 curbs in China. COVID led curbs resulted in a 14 per cent decline in the brand’s revenue from the Asia-Pacific region during the quarter ended March 31.

Shipping delays and labor shortages also prevented the brand from getting its hoodies and shoes to stores, forcing it to cancel orders. For fiscal year 2023, Under Armour projected an adjusted per-share profit between 63 cents and 68 cents, below Refinitiv estimates of 83 cents. The brand expects sales to grow between 5 to 7 per cent growth, while analysts expect a 5.4 per cent rise in sales.

A 30-minute roundtable conference tilted ‘Emphasize Hemp!’ is scheduled to be held during Denim Premiere Vision in Berlin on May 17, 2022. As per The Spin Off report, the round table will feature some key players from the industry. It will showcase the latest joint development by weaver and exhibitor Naveena Denim (NDL) and the German jeans brand Tom Tailor: denim made from hemp.

These two brands will be joined by Lenzing and The Flax Company–Marmara Hemp who will reflect on the latest denim innovations and disclose the properties of this unique natural fiber that produces very little emissions and ensures minimum waste of resources. The four companies will analyze some of hemp fiber’s weaknesses too. They will highlight the experience of growers, weavers and brands that recently started operating in the industry, and have already established significant relationships within the value chain.

The conference will be attended by Christina Agtzidou, Manager - Design Denim Female, and Juliane Nowakowski, Head - Sustainability & Corporate Responsibility, Tom Tailor; Rashid Iqbal, Executive Director, NDL; Denis Druon, President and CEO, The Flax Company–Marmara Hemp; and Michael Kininmonth, Product Development, Lenzing. The conference will be moderated by Maria Cristina Pavarini, Senior Features Editor International, The SPIN OFF/Textil Wirtschaft.

The Australian Fashion Council hopes, the newly launched trademark will identify Australian brands for global consumers and boost growth of the local industry to $38 billion within a decade. According to Leila Naja Hibri, CEO, the trademark will reflect effortless style, raw nature, boundless optimism and fearless innovation of Australian fashion. It will also demonstrate advanced social and environmental outlook, Hibri adds.

Funded by the government, the $1 million trademark will be a digital marker rather than just a clothing tag. The trademark was launched during the recent Sydney Fashion Week. To qualify for the Australian Fashion trademark, brands need to meet at least two out of five criteria. They need to be of Australian origin, their collections need to be made in Australia, need be to Australia’s taxpayers and have Australian employees. Hibri believes, these rules would help disqualify overseas competitors and qualify only a selective group of truly Australian brands.

The trademark was launched after a report by the accounting firm EY predicting $11 billion growth for the industry in the next decade. The report predicts, the industry would be worth $38 billion by 2032 and add 86,000 new jobs. The Council has urged the government to provide $69 million in funds to promote the trademark internationally, build manufacturing capabilities, fix skill gaps, and build a circular clothing economy.

After investing Rs 2,400 crore in two Telangana units, Kerala-based apparel manufacturer Kitex Group plans to invest another Rs 3,200 crore in the state. Sabu M Jacob, Managing Director informs, the group plans to set up two integrated fiber-to-apparel facilities at the Kakatiya Mega Textile Park in Warangal and Sitarampur in the Rangreddy district with an investment of Rs 800 crore. Inaugurating the KMTP plant, Jacob said the plant will create 50,000 additional jobs across both units. These will include 22,000 direct jobs and 18,000 indirect jobs.

Jacob expects the KMTP unit to be completed by January 2023, after various processes will be added in a staggered manner to start production in full swing by March 2023. The plant will be constructed on 460 acres with Telangana government allotting 210 acre at KMTP, another 250 acre at Sitarampur. Construction of the second unit will begin in September-October 2022 and complete in the June-September 2023 quarter. The plant’s technology will be imported from Switzerland while the entire pre-fabricated factory building will be shipped in from the Middle East.

Technological innovations offer fashion companies an opportunity to not just better serve customers but also improve business efficiency.

In 2021, fashion companies invested around 1.8 percent of their revenues in technology, as per a McKinsey & Co report. By 2030, this investment is likely to surge to 3.5 percent. The growth will be mostly driven by the conviction amongst consumers that technology offers them a competitive edge over others.

The COVID-19 pandemic caused a sharp rise in consumers’ involvement with digital sales channels. It gave rise to new shopping habits, and a rising interest in gaming and virtual worlds. The pandemic also increased customers’ digital interactions with brands with almost 72 percent of customers interacting with brands online in 2021. In the coming year, consumers digital interactions are likely to stabilize at about 66 percent on average, says the McKinsey report. .

The report further shows, by 2024, over half of consumers’ digital interactions with brands would be powered by an AI-generated speech. Over 75 percent of enterprise-generated data would be processed by cloud or edge computing. By 2030, over 80 percent of the global consumers will have access to 5G networks,

According to the McKinsey & Co report, the cash flows of fashion companies that embed AI into their businesses models are likely to rise by 118 percent. Over the next three years, the key focus areas for fashion companies would include personalization, store technologies, and end-to-end value chain management

Five themes to help explore potential

Both McKinsey and the Business of Fashion believe, five key themes that could help the industry explore its potential and overcome challenges include metaverse reality check, hyperpersonalization, connected stores, end-to-end upgrade, and traceability first.

Check revenue opportunities with Metaverse: Fashion brands would have to generate sustainable revenue streams presented by growing consumer engagement with the metaverse.

Focus on personalization: Brands would have exploreto big data and artificial intelligence to offer customized experiences to improve loyalty amongst consumers.

Apps to enhance in-store experience: Fashion executives would have touse in-store mobile apps and microfulfillment technologies to enhance customers’ in-store experience.

Value chain integration: Brands would need to integrate their value chain to improve operational efficiencies.

Ensure traceability: Brands need to use traceability systems powered by traceability software and big data to trace the entire life cycle of their products.

Metaverse to boost revenues by 5%

One of the technologies that have made a deep impact on the fashion industry is metaverse. As per the McKinsey report, fashion companies that focus on metaverse innovation and commercialization are likely to generate 5 percent of revenues from virtual activities over the next two to five years.

Personalized digital shopping experiences would also be the key to success for many fashion brands in coming years. These brands can explore all advancements in AI, analytics, and cloud computing to move to hyperpersonalization.

More brands to invest in technological innovations

In the coming year, more brands are likely to invest in in-store functionality and experiences. They would use in-store mobile “clienteling” apps to ensure seamless operations for store associates. Robotics and stock optimization software can help brands and retailers operate physical stores as digital storesfor distribution and delivery operations and reducing fulfillment costs by up to 90 percent. More than 60 percent of fashion executives say, creating integrated digital processes throughout their organizations would be amongst their top five priorities for 2025.

Ariound 50 percent of the executives, add,traceability can help brands reduce emissions in supply chains. These brands could adopt a common data language to enable comparability, besides setting new labeling standards and tracking software.

The opportunities offered by technology to fashion are limitless. Industry leaders need to find out ways to adopt technology to boost creativity and operations in the sector.

Denim imports by the US increased by 37.55 percent year to date though March to a value of $965.32 million. The sourcing of blue denim apparel by the US from Bangladesh, Pakistan, Egypt and Turkey increased significantly while those two mainstays posted more moderate gains.

As per a Sourcing Journal report, Levi’s shipments from Bangladesh rose by 47.26 percent in the period to $196.26 million, Pakistan’s imports jumped 69.65 percent to $116.04 million and Vietnam’s shipments increased 41.42 percent to $107.03 million.

Imports by No. 2 supplier Mexico, surged by 15.9 percent to $168.6 million, and China’s imports increased by 25.12 percent to $89.95 million.

Imports from Egypt skyrocketed 132.21 percent to $55.59 million, while shipments from Turkey rose 58.23 percent to $21.81 million.

Asian manufacturers Cambodia and Sri Lanka posted first-quarter gains of 29.52 percent to $50.51 million and 33.92 percent to $17.14 million, respectively, while Nicaragua rounded out the Top 10 with a gain of 8.23 percent to $31.73 million.

In spite of growth being expected throughout the forecast period, sales of Western European bags and luggage are not expected to return to 2019 levels before the current year-end.

Sales of Western European bags and luggage recorded a major decline in 2020. The closure of non-essential bricks-and-mortar stores and travel restrictions were among the main COVID-19-related problems for the industry in 2020, and which were also in place across the region in 2021 as well, limiting the recovery in this year.

As per a Euromonitor Report, Western Europe accounted for 16 per cent of global sales of bangs and luggage at US$24.7 billion in 2019. The UK, France and Italy represented over half of regional value sales, with the UK posting a high CAGR of 6 per cent over 2014-2019, boosted by the strong performance of the luxury segment. In comparison, the regional CAGR was 2 per cent, which reflects the instability caused by currency and economic volatility. However, growth in handbags, backpacks and luggage in particular continued to boost the performance of the category.

Owner of Wrangler and Lee brands, Kontoor Brands has raised its outlook for 2022. The company now expects revenues to exceed $2.7 billion, increasing approximately 10 percent compared to 2021, and compared to prior guidance of a high-single-digit percentage gain.

The company now expects first-half revenues to increase in the mid-teens range compared to the prior year versus a low-teens range in previous guidance. Second quarter revenue, consistent with prior guidance, is forecast to be in the range of $640 million to $650 million, increasing 30 percent to 32 percent compared to last year.

Gross margin is projected to be consistent with the adjusted gross margin of 44.6 percent achieved in 2021. Kontoor expects higher inflationary pressures on input costs, transitory expenses, including freight, and adverse mix due to COVID lockdowns in China to weigh on gross margin. However, the benefits from continued structural mix shifts to accretive channels such as digital, ongoing cost saving initiatives and strategic pricing are anticipated to offset these higher costs.

Upendra Prasad Singh, Union Textiles Secretary has directed private master developers to incur 70 per cent of the cost involved to develop an integrated value chain in a mega textile park. The government has received proposals from 17 states for the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme or the mega textile park scheme, which will be developed with a capital of Rs 4,445 crore within a span of seven years up to 2027-28.

Among the states that have expressed interest include: Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Madhya Pradesh, and Telangana. The mega textile parks scheme will help India expand its textile business besides reducing logistics costs, opines Singh. Announced in the Union Budget 2021, the PM-MITRA scheme aims to make Indian textile industry globally competitive. The scheme will create world-class infrastructure with plug-and-play facilities, besides giving rise to exporters of global standards. The scheme will also enhance the overall income and uplift the quality of life of textile workers associated with the PM-Mitra scheme,

Researchers at the Agroisolab in Jülich and the Hochschule Niederrhein University of Applied Sciences, in western Germany, have accused sportswear brands Puma and Adidas of using Xinjiang cotton in their T-shirts. It has also accused Hugo Boss and German Outdoor wear brand Jack Wolfskin of making shirts using Xinjiang cotton while fashion company Tom Tailor has been accused of launching a pullover made from it.

As the Guardian, the US banned cotton imports from the autonomous region in north-west China last year. Several large western clothes brands and fashion brands also banned the use of Xinjiang cotton in their collection. In October 2021, Hugo Boss claimed all new collections are being developed in accordance with global standards. In 2020, Puma refused having any direct or indirect business relations with manufacturers in Xinjiang. In the same year, Adidas also refused having contractual relationship with any Xinjiang supplier.