John Lewis & Partners plans to fund a three-year program run by the Sustainable Fibre Alliance (SFA), to support the expansion of the SFA’s new Cashmere Standard from Mongolia to the Inner Mongolia region of China.

Climate change and increased global demand for cashmere are putting pressure on the fragile ecosystems the cashmere industry relies upon. In response to this, a global standard has been developed by the SFA to promote best practice in land management, animal welfare, fibre processing and supply chain transparency, ensuring the long-term viability of the cashmere sector.

This work will protect the welfare of the goats, the land and the livelihoods of thousands of families who are dependent upon the production of cashmere fibres

John Lewis is funding the training of 420 herders in Inner Mongolia, on the global standard. Training will be provided by a leading animal welfare NGO, the International Cooperation Committee of Animal Welfare (ICCAW), together with experts from a local agricultural university. Once the herders have completed their training, they will carry out self-assessments against the requirements of the Standard and undergo independent farm inspections before being given SFA accreditation.

In the first year, the program will focus on animal welfare, and then it will be expanded to cover the protection of biodiversity and how to secure herder livelihoods in the long term.

Japanese apparel sales fell by 20 per cent in January on a year-on-year basis. As per the data obtained from 10,997 stores of 56 companies associated with Japan Chain Stores Association (JCSA), these stores clocked revenues worth 59,288.98 million yen in January ’21, which valued 74,204 million yen in January ’20.

Menswear clocked 11,002.90 million yen revenues during January ’21, which is a significant fall of 26.40 per cent on Y-o-Y basis The revenues were down on M-o-M basis too as there was a 20.70 per cent decline noted in January as compared to December ’20.

Womenswear revenues valued 14,559.98 million yen in January with a drastic fall of 29.40 per cent on Y-o-Y basis. However, M-o-M decline was not huge as the sales of women clothing in Japanese chain stores dropped by 14.80 per cent as compared to December ’20.

All other types of clothing, including kidswear, clocked revenues worth 33,726.23 million yen, a decline of 12.60 per cent; however the drop was discouraging for the retailers as compared to December ’20 as a huge 31.80 per cent drop was recorded on monthly note.

The Indonesian Safeguards Committee (KPPI) recommended that the Indonesian government take safeguard measures against Bangladeshi apparel import to save the Indonesian domestic industry, according to a senior official of commerce ministry of Bangladesh.

The KPPI recommended imposing the safeguard measures as the body thinks its domestic industry is being hampered by import of Bangladeshi garment items as Indonesia is also a major garment producing nation, said Md Hafizur Rahman, director general of World Trade Organisation (WTO) Cell under the Commerce Ministry.

Earlier, in a hearing held in November last year, Bangladesh opposed the Indonesian safeguard measures against Bangladeshi apparel items in Indonesian markets.

The logic of Indonesian authority is that Bangladeshi apparel is exported to Indonesia more but that is not true. China is the largest clothing exporter regionally and internationally, he said. "We will start contacting the Indonesian government in this connection soon," Hafizur added.

Rubana Huq, President, BGMEA said bilateral trade between Bangladesh and Indonesia is in Indonesia's favour. Huq also said the safeguard petition in table 4.2 (a) reports applicants claiming 7.02 percent decrease in domestic industry and non-applicants reporting 3.91 percent decline.

Increasing producers' prices in between 2015 and 2019, minimum wage increases of 8.97 percent in between 2016 and 2020 have also contributed to the lack of Indonesia's competitiveness, and safeguard measure is not appropriate to check such systematic erosion of competitiveness since safeguard duties are imposed only temporarily.

The Fashionist Virtual Fashion and Apparel fair organized by Osmanbey Textile Export Businessmen Foundation (OTIAD) and Istanbul Ready-Made Garment and Apparel Exporters’ Association (IHKIB) has opened its gates virtually.

The online event will focus on fashion trends of the spring and summer seasons of 2021. “Fashionist,” which will be held in four languages, will host fashion parades from 41 different firms and several conversations with industry experts. OTIAD Chairperson Rıdvan Kandağ stated at the launch of the event that the online fair would provide a unique opportunity to people as they will be able to access private collections with one click.

The unique digital fair will feature menswear, womenswear, kidswear and evening wear that will take place every day of the event with more than 7,700 products aiming to capture the new season’s fashion trends.

The fair, curated by Ferhan Aral, intends to introduce brave, diverse and innovative new clothing this year as well as offer insight on what’s to come next with a discussion titled, “A Look into Fashion’s Future.” The talk will feature industry expert Ahu Barut who will explore subjects like factors that determine trends, the new digitalization of fairs and sales and the approach of brands regarding sustainability.

The event will also host the Swedish Exhibition, which will attempt to answer questions on the fashion revolution, future of textile and paper’s place in textiles with guests from Sweden, one of the leading countries in sustainable fashion.

American footwear, accessories and apparel group Steve Madden reported a 32.8 percent decrease in full year revenues as the company continues to feel the effects of the COVID-19 pandemic.

For the full year ended December 31, 2020, the company, which owns brands including its namesake Steve Madden label, Dolce Vita and Betsey Johnson, reported revenue of $1.2 billion, down from $1.8 billion in 2019.

Net loss was $18.4 million, or $0.23 per basic share, for the year, compared to net income of $141.3 million, or $1.69 per diluted share, for the year ended December 31, 2019.

Likewise, in the fourth quarter revenue decreased 15.9 percent to $353 million compared to $419.6 million in the same period of 2019. The Long Island City, New York-based company’s wholesale business posted the biggest decline, dropping 16.2 percent to $263 million in the fourth quarter, including a 19.7 percent decline in wholesale footwear and a 5.9 percent decline in wholesale accessories/apparel.

Similarly, its retail revenue decreased 14.9 percent to $86.1 million in the fourth quarter of 2020 due to a significant decline in its brick-and-mortar business, partially offset by continued strength in its e-commerce business.

In the fourth quarter, net income was $22.6 million, or $0.28 per diluted share, compared to $17.8 million, or $0.21 per diluted share, reported in the same period last year.

This year, the 36th IAF World Fashion Convention is set to take place in Antwerp, Belgium. The theme of the convention; Transition in the Global Fashion System, recognizes the fact that the demand from societies and from consumers, the restraints posed by the earth’s ecosystem and the possibilities offered by technology converge to create a necessity for transition. Merely adapting does not seem to be enough in 2020. Adapting is too slow. New successful companies based on entirely different business models shape the industry’s transition, as do existing companies embarking on bold programs of change. Transition will not involve the industry alone but requires all in the entire fashion ecosystem to work together. It requires a good and close collaboration with governments, creating regulatory environments that are supporting transition without stifling entrepreneurial drive. Educational institutes are engines of transition not only by training new employees, but also by actively nurturing new business.

The IAF World Fashion Convention will bring together the entire global industry ecosystem to share high level industry insights and to jointly discuss concrete actions to create faster industry transition. It is a unique opportunity to gain the insights necessary to understand where our industry is heading and to join the conversation on concrete ways to make the necessary transitions. The first day of the convention will be devoted to plenary sessions with top speakers from across the globe. On the second day, parallel workshops with participants from across the fashion ecosystem will discuss major topics driving transition such as circular textiles and implementing new technologies.

This year, the 36th IAF World Fashion Convention is set to take place in Antwerp, Belgium. The theme of the convention; Transition in the Global Fashion System, recognizes the fact that the demand from societies and from consumers, the restraints posed by the earth’s ecosystem and the possibilities offered by technology converge to create a necessity for transition. Merely adapting does not seem to be enough in 2020. Adapting is too slow. New successful companies based on entirely different business models shape the industry’s transition, as do existing companies embarking on bold programs of change. Transition will not involve the industry alone but requires all in the entire fashion ecosystem to work together. It requires a good and close collaboration with governments, creating regulatory environments that are supporting transition without stifling entrepreneurial drive. Educational institutes are engines of transition not only by training new employees, but also by actively nurturing new business.

The IAF World Fashion Convention will bring together the entire global industry ecosystem to share high level industry insights and to jointly discuss concrete actions to create faster industry transition. It is a unique opportunity to gain the insights necessary to understand where our industry is heading and to join the conversation on concrete ways to make the necessary transitions. The first day of the convention will be devoted to plenary sessions with top speakers from across the globe. On the second day, parallel workshops with participants from across the fashion ecosystem will discuss major topics driving transition such as circular textiles and implementing new technologies.

Though the pandemic affected the entire fashion sector, its impact on workers was massive. Halting of thousands in-progress or finished order by retailers led to revenues worth $22billion being stuck with brands, says Scott Nova, Executive Director, Workers Rights Consortium, a labor rights advocacy group. This resulted in layoffs and reducing payroll costs in many suppliers’ factories, says a Vox report.

Even workers having full-time employment suffered. As a Clean Clothes Campaign report published in August shows, garment workers across the world failed to receive wages worth $3.19 billion and $5.79 billion in March, April, and May due to COVID-19 cutbacks, while workers in South and Southeast Asia received 38 per cent less pay than usual during those three months.

Brands driving down apparel prices, place fewer orders

Almost 29 of the 50 apparel brands surveyed by the Business & Human Rights Resource Centre recorded profits during the pandemic. Yet, nine of them have still not committed to pay for suspended or canceled orders. As Thulsi Narayanasamy, Leader-Senior Labor Rights, BHRRC says, brands are driving prices down further than they were before the pandemics. Retailers are also squeezing margins in subtler ways.

Also, brands are placing 30 per cent lesser orders than they usually do this time of year, says BGMEA in a survey of 50 factories. This has led to governments of many South East Asian nations urging brands to establish a wage assurance fund to ensure all workers receive their dues in accordance with labor laws and international standards. Nonprofit organization Remake has initiated the #ShareYourProfits campaign that urges 12 top-performing brands — Adidas, Amazon, Asos, Gap, H&M, Levi Strauss, Lululemon, Primark, Under Armour, Uniqlo owner Fast Retailing, Nike, and Inditex — to donate 1 per cent of their net revenue for garment worker relief.

Brands like H&M are donating funds worth billions of dollars to nonprofits including Save the Children and WaterAid. This will help brands provide emergency relief to 76,000 Bangladeshi women and their families. Workers’ rights groups including the Asia Floor Wage Alliance, the Clean Clothes Campaign, and the Worker-Driven Social Responsibility Network plan to sign an agreement to make brands legally liable to pay an additional living wage contribution on every order they place with their suppliers.

Winds of change

There are signs of the industry changing. Earlier this year, nine trade organizations from Bangladesh, Cambodia, China, Myanmar, Pakistan, and Vietnam came together to create the Sustainable Textile of the Asian Region to negotiate better purchasing practices with brands. This initiative is likely to be adopted by other countries.

Though fashion companies often argue they don’t own these factories they source from, many of them have offices based in the countries they produce in. They share a close relation with these suppliers and hence, can determine the fate of these workers.

The unlocking of Indian economy has helped revive demand for MMF fibers in the country. As a report by Textile Value Chain highlights, from October to December 2020, fall in MMF production was restricted to the range of 3 to 6 per cent as against a cumulative decline 18.2 per cent Y-o-Y during April-December 2020. Like production, decline MMF exports also narrowed down to 2-8 per cent range during June-August 2020. On a cumulative basis, MMF exports declined 17.5 per cent Y-o-Y to 580,000 tons during April-November 2020. While exports grew 8.4 per cent in September 2020, they declined in the range of 10 per cent -14 per cent during October-November 2020.

The largest share of these exports was accounted by polyester whose exports declined by 20.1 per cent to 520, 000 tons during April-November 2020. Exports of Polyester Staple Fiber increased by 2.6 per cent to 191,000 while that of Polyester Filament Yarn declined by 29.1per cent to 329,000 tons.

Demand, raw material costs lift MMF prices

Growth in demand for MMF led to a substantial increase in prices of both PSF 1.4 den variety and POY 130/34 variety of polyester fibers during August 2020-January 2021. Increase in raw material prices also contributed to this price rise which was highest on m-o-m basis in December 2020 as the prices of both the varieties increased by about 12 per cent.

The raw materials, whose prices increased, included Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG). The prices of these materials increased in the range of 12 per cent -18 per cent in December 2020 due to an improved downstream demand amid lower inventory in China, their prices increased by 12 per cent-18 per cent in December 2020. In January 2021, the prices of PTA increased by 9.9 per cent to Rs.58 per kg while those of MEG declined by 9 per cent to Rs.50 per kg on m-o-m basis.

The recovery in crude oil prices and feedstock prices of polyester are likely to boost polyester prices in coming months. The global uptick in demand is also expected to support polyester prices.

Low demand, increased competition for Indian apparels

India’s RMG exports on a cumulative basis declined by 28.6 per cent Y-O-Y to $8.2 billion during April-December 2020. Exports to major markets like Europe and the US declined by 30 per cent to $2.6 billion and $ 2.1 billion, respectively, in the first nine months of FY21. Exports to other markets declined by 30.7 per cent to $ 2.4 billion, while those to UAE declined by 13.4 per cent to $1.1 billion compared during April-December 2020

During April-December 2020, US’ apparel imports declined 27.2 per cent to $46.2 billion. Of this, imports from India decreased at a faster pace of 35.3 per cent to $1.9 billion compared to other nations. Therefore, India needs to strengthen its position in global exports in order to gain the benefits of US’ import ban on China’s cotton products from Xinjiang region or any other global development.

Apart from this, apparel exports from India also face tough competition from the Bangladesh and Vietnam as they get preferred access to India’s other major market – the European Union. In order to support exports, the government plans to continue its RoSCTL (Rebate of State and Central Taxes and Levies) scheme until it is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.

Government schemes

The government has decided to extend the benefits of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to boost exports with effect from 1st January, 2021. Additionally, it has introduced a one-time additional ad-hoc incentive of upto 1 per cent of FoB value on export of apparel and made-ups. The government has also removed anti-dumping duty on PTA, a key raw material for the manufacture of MMF fibre and yarn. It has announced a scheme to set up seven Mega Integrated Textile Region and Apparel (MITRA) Parks over the next 3 years.

To gain from US’ ban on China’s cotton and boost MMF exports, India needs to not just effectively implement these schemes but also sign trade pact agreements with other export destinations.

The number of GOTS certified facilities have grown by 34 per cent to 10,388 globally in 2020. As per 16 GOTS approved certification bodies, over 3 million people in over 72 countries worked in GOTS certified facilities during the year.

The top ten countries where GOTS certified facilities are located include India (2,994), Bangladesh (1,584), Turkey (1,107), China (961), Germany (684), Italy (585), Portugal (449), Pakistan (391), US (167), and Sri Lanka (126). GOTS approved chemical inputs now number 25,913, an increase of 13 per cent in 2020.

GOTS version 6.0, to be implemented from March 1 2021, includes stricter social and environmental criteria. Certified entities will now have to calculate the gap between wages paid to ‘Living Wages’ and will be encouraged to work towards closing this gap. Specific references to OECD due diligence guidance and good practice guidance for social criteria and risk assessment as well as ethical business practises have been explicitly included, according to GOTS.