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.

Characterized by rapid market recovery combined with a regional shift in demand, in Q3 Rieter has reported a 294 per cent year-on-year growth in order intake, over the same period of 2020.

A major reason for this regional shift in demand has been the growing costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China.

Rieter is a Swiss supplier of systems for short-staple fiber spinning. Demand for new systems is expected to gradually return to normal in coming months. The machines and systems business achieved 447 per cent jump in order intake during the first nine months of 2021, attributed to the regional shift in demand. While the components business recorded a jump of 95 per cent after sales were up 123 per cent.

The realization of sales from order backlog continues to be associated with risks, in the light of bottlenecks in material deliveries and freight capacities as well as the ongoing pandemic in countries that are important for Rieter.

China's garment industry reported higher revenue and profit in the first eight months of 2021. From January to August, the combined operating revenue of 12,520 major garment companies was up 9.6 per cent year on year. Total profits of these companies rose 9.5 per cent from a year earlier while the combined output expanded 12.9 per cent year on year to 15.2 billion pieces.

The country's exports of garments and accessories increased 28.1 per cent year on year.

Nearly 62 per cent of the 250 biggest brands publish their carbon footprint in their own facilities, says responsible fashion advocacy group Fashion Revolution. However, most carbon emissions occur at processing and raw material levels. Only 26 per cent of brands disclose emissions information at the processing and manufacturing level, and only 17 per cent do so at the raw material level. More than one third big brands have published their progress towards reducing the use of virgin plastics for packaging, but only 18 per cent did so for textiles deriving from virgin fossil fuels.

There has been slight progress with regard to supply-chain transparency. Almost 27 per cent major brands now disclose some of their processing facilities, compared to 24 per cent last year. Additionally, 11 per cent brands publish some of their raw material suppliers, up from seven per cent last year. According to the report, shoppers would like more transparency among fashion brands: They also believe ethical labor policies are important. Shoppers are interested in purchasing sustainable clothing but don’t know how or where to find sustainable clothes. More than a third say, if there were a store for sustainable clothes, they would do all their shopping there.