Blockchain technology was introduced to provide immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members.  The technology is yet to be widely adopted in the fashion industry though stakeholders have been eyeing it for years to trace fashion’s notoriously opaque supply chain. 

Transparency, regulations drive blockchain adoption

As per a Business of Fashion report, to implement this technology in the fashion industry, suppliers along the chain, from cut-and-sew factories to fabric weavers, yarn spinners, ginning mills, and even farmers, need to be transparent in their operations. Post pandemic, transparency has become top priority for brands and retailers. This has given a boost to blockchain projects across the world. For example, UK Fashion & Textile Association (UKFT) and H&M have launched new blockchain projects sometime ago. The dual impact of Brexit and COVID is encouraging suppliers to adopt blockchain in their operations, says Adam Mansell, CEO, UKFT, which launched a tracing project in IBM and others including Next and H&M’s COS brand in August.

The technology is also getting a boost from new regulations by governments across the world. Earlier this year, the US banned imports made from cotton grown in China’s Xinjiang region on accusations of being made by forced laborers belonging to Uighur and other minority Muslim communities. Germany introduced a law making it compulsory for large companies to ensure their supply chains comply with social and environmental standards. The law is scheduled to take effect in 2023. 

These developments have caught the attention of global textile traceability champions. Blockchain-based tracing platform for fashion, TextileGenesis has launched pilot projects in collaboration with the US Cotton Trust Protocol, and a viscose tracing project with Kering and Bestseller. The company has teamed up with H&M for these projects. 

A verified record of garment history

Blockchain provides brands and retailers a verified record of the garment’s history at each step of its production. However, it mandates companies to ensure that the data they receive is accurate, says Nate Herman, Senior Vice President-Policy, American Apparel & Footwear Association. Funded by a research grant from the UK government, the UKFT’s traceability project is endorsed by Future Fashion Factory, which supports innovation in the UK garment sector, and Tech Data, a technology firm. Contrary to the fashion industry’s traditional tracing methods, the IBM project aims to capture information around each step of the chain, adds Keric Morris, Head-Standards, IBM. 

Focusing solely on cotton products, the project is onboarding suppliers in countries like Bangladesh, India, Turkey, and Portugal. It focuses specifically on tracing sustainable and differentiated materials such as organic cotton by using a digital token called Fibercoin, adds Amit Gautam, Founder and CEO, TextileGenesis. The project has enabled H&M to improve supply chain transparency and traceability. 

New tools to ensure accuracy 

To ensure the information logged on the blockchain is accurate, companies are using tools such as forensic verifications that test genetic or chemical markers in material fibers. Companies like TextileGenesis are focusing on organic cotton as it requires a certain amount of effort, and investment to deliver traceability.

Tarun Kumar Agarwal, Production Logistics Researcher, KTH Royal Institute of Technology predicts, many big brands will adopt blockchain in future. However, future development will depend on the returns it generates for brands. In coming years, the top 100 brands will trace most of their products, predicts Gautam. Meanwhile, the rest of the apparel retail market, including domestic retailers in Asia or Europe will continue to remain largely untraceable, he adds.

The Chinese down jacket brand Bosideng is the leading brand in the global down jacket market. So says Euromonitor, an authoritative global market research institution. Since it began to focus on down jackets in 2018, Bosideng has been racing ahead with excellent performance. In terms of design, Bosideng excels at integrating global designer resources for international IP collaboration. The great fusion of eastern and western cultures thus becomes a starting point to meet the needs of the international audience. Bosideng has launched collaborations with international designers. 

As consumption is upgrading, and young people are becoming the main consumers, down jackets need to be both warm and fashionable to meet their increasingly demanding needs. With growing concentration of the down jacket industry, Bosideng, the world-leading down jacket brand, has benefited from its strong core competitiveness. As a 45-year-old devoted and professional down jacket brand, Bosideng has forged ahead through product changes and technological innovations, developing strong competitive barriers in product quality and performance. Moreover, in terms of operations, Bosideng actively works on digital innovation in the supply chain for an active web presence. It has set up a data middle platform to connect all the links on the supply chain for a streamlined and efficient online service. 

The Indonesian textile industry is unable to handle the soaring coal prices. When global coal prices soar, many domestic industries that using coal such as cement, petrochemical, and textile experience difficulties. The fertilizer industry, the cement industry, the petrochemical industry, textiles are all energy-intensive industries. 

If the price of products rises, it reduces competitiveness. The textile industry wants the government to take emergency steps to maintain the sustainability of the user industry. Government intervention is needed, especially to prevent price fluctuations of strategic goods such as cement products, textiles, fertilizers, steel, paper, and others. Meanwhile, the textile and textile product sector has had to dig deeper into its pockets for production costs. Currently there are two factories that have turned off their power plants. Meanwhile, six more factories have reduced their generating capacity. 

Moreover, so far the majority of Indonesian coal is used for export. In 2021, of the production target of 625 million tons, the domestic market only absorbs a maximum of around 150 million tons. This means that there are still more than 450 million tons exported.

Bangladesh saw a marginal six per cent increase in overall FDI inflows in fiscal 2021. In fiscal 2020, FDI inflows into the textile and apparel sector saw 11 per cent increase. The FDI figure in textile and apparel sector is not as much as expected but is seen as a positive sign for the country when total investment is going through an immobile situation. Foreign investment is seen as an opportunity to grow in high-end products. One reason FDI was much lower than anticipated could be the country’s harsh regulations and bureaucratic complexities. 

In fiscal 2020-21 new investment, or equity capital, did not meet expectations and grew 12.08 per cent. Rather foreign companies operating in Bangladesh mainly reinvested their earnings. Reinvestment grew by 4.63 per cent year-on-year, keeping the country’s FDI trend steady. Bangladesh will invest in synthetic fibers. The country sees this as the future of export-oriented garment sector. Reputed brands and consumers are leaning towards manmade and recycled fiber to achieve sustainability. Buyers are choosing the fabric as a substitute to cotton fiber for sustainability and environmental issues. In keeping with sustainability many well-known brands may stop buying apparels produced from non-recyclable material. 

Commerce and Textiles Minister Piyush Goyal has asked the domestic industry to get into innovative partnerships for developing 100 textile machinery champions, which can be recognised across the world. Interacting with manufacturers, the minister urged them to get out of the command-and-control mindset and work through plug and play mode to make the textile sector vibrant. He asked them to focus on speed, skill and scale in order to develop 100 champions and bring the textile sector out of inertia. 

He further said that India should be aiming at becoming a global player in producing textiles machinery, producing at scale, quality as well as quantity, the kind of machinery which is required at global levels. He said the Center was not averse to imports but there is a need to reduce import dependency of textile machinery in India through concerted efforts of both the textile engineering industry as well as the government in order to capture bigger markets. The aim is to create a few global champions especially in the areas of manmade fiber, technical textiles, apparel, fabrics and made-ups because of the substantial value addition in these sectors. 

The government has set a target of achieving $100 billion in textiles and garment exports over the next five years and the textile sector has been assigned an important part to play in achieving it. 

The government and industry needs to act as a combined force to build Brand India in the textiles and apparel sector, says a CII-Kearney joint report. It suggests the government should focus on putting in place key enablers to attract investments in the domestic textiles sector and optimise operations like improved market access and cost-competitiveness while creating an enabling business environment. The report also underscored the need for industry players to adopt global best practices in terms of manufacturing competitiveness, enhancement of service levels, capabilities in design, innovation and need for more investments in sustainability and traceability.

It advises India to carefully strategize actions in five key areas, including apparel, fabric, home textiles, manmade fiber and yarn and technical textiles. The report calls for targeting a $16 billion increase by riding the China Plus One sentiment. India is suitably positioned on this, thanks to its relatively large strategic depth compared with Vietnam or Bangladesh. Besides, it recommends a $4 billion jump by positioning India as a regional fabric hub, starting with cotton wovens and then extending to other sub-categories. 

The Indian textile industry is one of the largest manufacturing sectors by employment. To realise its full potential in the global market, strengthening of the textile industry value chain and broader market access is a must. 

Textiles major Trident’s net profit rose 13 per cent in the second quarter. The company’s revenue for the quarter rose 44 per cent compared to the corresponding period previous fiscal. Trident continued its positive momentum from previous quarter and delivered the best performance in second quarter. The company is committed to embark inclusive growth for all its stakeholders and continuing to excel in future. During the quarter, the company also launched its new e-commerce website to strengthen domestic market presence and expects strong online sales in the coming quarters. 

Trident is one of the largest players in the home textile space in India. It currently has around 400 points-of-sales across the country and plans to further expand its retail presence by doubling its point-of-sales next year. Trident believes in offering innovative solutions and delivering high-quality value-added products to customers. The company is expanding spinning capacity at its Madhya Pradesh plant. The project will help strengthen existing home textile business and further expand market presence. Trident’s existing capacity is 5,43,744 spindles and 6,464 rotors, and the current capacity utilisation is 99 per cent. It has planned for small maintenance capex in the form of de-bottlenecking and upgradation of capacities.

Free from harmful chemicals and pesticides, organic products can make a huge difference to human lives in the 21st century. Adoption of organic products in fashion chain can help save the planet from rising ecological pollution. Demand for organic cotton has been rising steadily over the years. As per a report by Textile Today, demand for organic cotton is expected to increase 84 per cent by 2030. Demand will mostly be spurred by increasing use of fiber in their product lines.

Safety factors enhance organic farming growth

One reason for rise in demand is the environmental safety ensured by organic farming. Organic farming is known to be a safe option as it does not harm animal habitats like traditional farming methods. Organic farming is also known to be sustainable, functional and durable. In 2019-20, a total of 249,153 tons of organic cotton was grown on 588,425 hectare of certified organic, as per Textile Exchange’s ‘2021 Organic Cotton Market Report’. This is expected to surge further 2020-21.

Rising demand for organic cotton is also boosting prices in the global market, encouraging producers to dedicate a larger share of their certified organic land to cotton against other crops. These producers are also being driven by the rising demand for organic cotton in global market.

As organic cotton requires little water and is free from pesticides and insecticides, production across the world is increasing. As per reports, India is the largest producer of organic cotton and supplies around 51 per cent of the global requirement. China with 19 per cent share stands second, Kyrgyzstan with 7 per cent, Turkey with 7 per cent and Tajikistan with 5 per cent of global supplies. The organic cotton industry has a great scope for development as it currently accounts for only 1.1 per cent of the total cotton production of the world. In 2019, number of facilities certified to leading voluntary organic textile standards increased substantially. Facilities certified to the Organic Content Standard (OCS) increased 48 percent during the year while those certified to the Global Organic Textile Standard (GOTS) surged 35 percent. Supply of organic cotton fibers increased 392 per cent to 25,394 metric tons during the 2004-05 crop years.

This encouraged Rui Fontoura, Fiber Strategist, Textile Exchange to urge all brands to plant more organic cotton fibers. However, this shift needs to be supported by the government by introducing new market-friendly policies and wider international trade pacts.

Brands face price and availability issues

According to the Demand Insights Report, brands face several challenges while sourcing organic cotton. They are unable to meet sourcing goals due to both price barriers and lack of in-conversion cotton. Organic Cotton Association (OCA) believes, without proactive steps being taken by retailers and brands, farmers will not be able to scale organic cotton which will further impact the environment.

The use of organic cotton is projected to grow 10 per cent every year till 2025, and by 15 per cent annually from 2025-2030. However, only 27 per cent companies have so far, incorporated in-conversion cotton into their sourcing strategies. They need to take action immediately and invest in cotton conversion programs.

As per the Demand Insights report, retailers and brands have often listed as pricing as one of the major obstacles in sourcing organic cotton. However, this can be dealt with by investing in new agricultural programs. Brands and retailers need to also focus on creating a fair and honest value chain. Many of these brands and retailers have already confirmed their long-term commitments to farmers by entering into new investment programs. This is encouraging new leaders to join this initiative.

COVID-19 pandemic has changed the US wedding industry forever. With shopping, meetings and social events all moving online, global supply chain issues are escalating. This, in turn, is threatening to spoil the special day for many brides- to-be.

Manpower shortage increases delivery time, costs

As per a report by My Central Oregon.com, many couples in the US have had to reschedule their weddings due to delivery delays of gowns and dresses. Pennyslvannia-based upscale bridal shop L’Fay Bridal expects deliveries of wedding gowns to be delayed by atleast two months this year, says McKenzie Custin, Shop Manager. Would-be-brides may also have to pay additional fees for speedy delivery of gowns, adds Custin. They also need to reserve at least a month for alterations of gowns before confirming wedding dates, she adds further.

In 2022, the United States is estimated to hold the most number of weddings since 1984, as per the Wedding Report. However, delays in delivery of wedding dresses are unlikely to slowdown as designers continue to operate with reduced staff, says Custin. This may also increase the rush price and minimum turnaround time for customers.

Pandemic survivors

The disruptions in supply chain have affected arrivals of not just wedding gowns but also bridesmaid dresses. For instance, New York City-based pediatric nurse practitioner Allyson Tauber received her wedding dress rather quickly. However, she had to cancel her order as bridesmaids dresses were expected to be delayed.

Though supply chain issues have impacted many bridal suppliers in the US there are few who have been able to tide over the problem. For instance, New York-based Kleinfield Bridal did not face any issues. Similarly retailer, David’s Bridal has reported 45 per cent increase in store sales. The company stocks over 300,000 gowns in its stores in a variety of styles. These retailers are helping to uplift the bridal fashion industry in the country, opine experts.

VF Corp’s earnings have fallen short of expectations. Revenue in the active segment, which includes the Vans footwear line, also fell short of estimates. Port congestion and the ongoing coronavirus outbreaks have constrained suppliers. VF is the latest apparel company to blame operational woes on a snarled global supply chain, with clogged ports and factory shutdowns in countries such as Vietnam.

A resurgence of Covid-19 lockdowns in key sourcing countries has resulted in additional manufacturing capacity constraints. The Vans brand also experienced lower-than-expected sales during the back-to-school season. Supply chain bottlenecks have affected the company’s ability to source and move products to the US. Virtually all of its brands are experiencing delays in shipping merchandise, while consumer demand remains high.

VF gets about 10 per cent of its products from factories in Vietnam. For its Supreme brand, the percentage rises to 25 per cent. VF Corp also owns brands such as the North Face and Timberland. Vietnam, which has become a hub for the global apparel industry, has struggled to contain the Covid-19 pandemic.