Despite the pandemic cotton yarn makers in Gujarat are set to surpass their 2019-20 revenues. As per All Gujarat Spinners’ Association (AGSA) estimates, the industry’s turnover was Rs 29,000 crore in 2019-20. Spinning units in the state already achieved this by the end of third quarter of 2020-21, riding on increased demand and higher prices of cotton yarn.

Cotton yarn prices have increased 56 per cent from April to November 2020, when prices stood at Rs 265 per kg. Cotton yarn price was Rs 195 in the first half of March 2020, after which it fell to Rs 170 in April soon after the lockdown. With a sharp increase in prices recently, the industry regained momentum. At this price, realisation from orders has increased for cotton yarn makers. Consequently, revenues of Q4 of 2020-21 will be growing at 25% from the corresponding quarter last year, stated AGSA.

Cotton yarn prices rose over the past two months or so due to an unprecedented increase in demand, especially in the export market. Pipeline stocks dried up a few months of the lockdown and demand sharply increased. Currently, all units are operating at full capacity while at least 70% of the stock is being exported to countries like Vietnam, Bangladesh and China.

The surge in demand also helped industry players make up for revenue lost during the lockdown and after it. Industry players said that with fatter margins due to higher prices, the industry turnover for 2020-21 will grow by 10% against 2019-20. Gujarat is home to at least 140 spinning units with an installed capacity of some 50 lakh spindles according to AGSA. Daily production is at 40 lakh kg.

How has the pandemic accelerated digitalisation, nearly 100 fashion brands shared their plans for the future and strategies until 2023 on the Zalando platform with Zalando Marketing Services (ZMS). The study was a peer-to-peer intelligence-share comprising quantitative survey data and interviews. And as Michele Pilati, Head of digital Transformation at Karl Lagerfeld explained Zalando condensed the feedback of all the brands into one strategic direction for the industry.

Investing on own platforms

Not depending fully on wholesale, Karl Lagerfeld and others that sell on Zalando, like Coach and Vivienne Westwood, are taking greater control of their e-com businesses. They are investing on own DTC platforms and customer journeys while marketplaces are fast becoming shop windows that can express brand DNAs. Brands expect online sales to account for 57 per cent of all sales by 2023. With consumers still looking for experience, and convenience, brick and mortar stores will still be very important.

Brands also agreed long-term investments in brand image and relevance is as important as short-term sales wins. They emphasized accountability matters and brand relatability and experience needs to prove itself commercially and adhere to a set of clear performance goals.

Especially smaller brands need to focus on commercial performance for the next two years. Almost 69 per cent surveyed brands say they plan to invest in ROI driven sales campaigns versus only 45 per cent with an annual turnover of $100 million or greater.

Almost 84 per cent digital leaders in the study are planning to focus more on campaigns along whole user journey. While only 20 per cent of those who do not deem themselves at all prepared to digitalise are ready to think long term and bigger picture. This highlights “the more digital a fashion brand is, the more set up it is to build and retain loyal customers. This also suggests that digital brands are more likely to become a consumer-centric flywheel that doesn’t need to repeatedly bring in new customers at the top of the funnel.”

And as Andreas Antrup, SVP advertising at Zalando says this reflects the purpose-led consumer-centric view. “It’s now less about a transactional view and more about customer lifetime value.”

The study also shows “going forward, storytelling and experiences that provide emotional connection, education and brand content will come from an increasing amount of touchpoints, and at various stages of the journey.” And digital fragmentation, accelerated by social media, sees the journey no longer linear, meaning brands need to plan for an omnichannel customer journey that travels around a constellation of touchpoints (offline and online).

Moreover digital brands are using data for quick decisions. Decisions on varied topics including budgets are also being facilitated. However, constant evolution in digital marketing requires precise planning with 85 per cent brands prepared for digitalisation and prioritizing agility.

The study highlights brands foresee digitalisation naturally affecting how they market and sell. However, only 39 per cent expect this to have a strong impact on their overall organisational structure, while only 25 per cent see digitalisation having an effect on product. As Antrup points out, digital retail has the capacity to test and scale new products in a way that brick-and-mortar can’t. “The scale of opportunity and loss is much greater than with bricks-and-mortar. You aren’t asking how much more could I have sold? You get more data earlier on in the funnel.”

While suits or tailor-made suits were a must in every man’s wardrobe, the pandemic has changed the scenario as formals have lost their appeal. In fact, as per a BFG Magazine report, since 2013, the US suits market for both men and women dipped almost 23 per cent from $3 billion to $2.3 billion. And COVID-19 has fast forwarded this decline as is evident from the way the 200-year-old menswear brand Brooks Brothers faced bankruptcy with dipping revenues.

With only 21 per cent people wanting to return to their normal way post pandemic, and almost 32 per cent preferring a permanent switch to remote working practices, demand for formals is not expected to move north anytime soon. A PwC report had suggested prior to the pandemic, two-thirds of the US workforce spent four or more days a week in the office but that mindset has changed now. So, what does it mean for made-to-measure brands when workwear means sweatpants and tees.

Made-to-measure market could still grow

Of course, work from home has pushed down demand for regular formal work wear. But any webenair or web meeting still requires formal outfits. And as

Pandemic effected made-to-measure business will ride on technology to move forward a Twingate survey shows, 45 per cent employees say they are attending more meetings now than before the pandemic. With video conferencing and remote meetings the new normal, one still needs formals in their wardrobe.

And as the BFG Magazine report suggests, “past scientific studies have found links between the clothing that we wear, brain activity, and productivity, so well-fitting, high-quality workwear can still serve a purpose – even when we’re not at the end of a Zoom call.”

Of course, made to measure will change and this period could actually see a revival of the suit. “Following a period of making do, we tend to dress up in the wake of a crisis — women turned to luxurious dresses following the Great Depression. Once the lockdowns, health and safety concerns, and financial difficulties of Covid-19 pass, we will undoubtedly want to ditch the loungewear.”

Demand to continue

A McKinsey report highlights demand for made-to-order fashion continues despite the odds. Indeed, fast fashion has dominated the industry for the last few decades but consumers now prefer well fitted, long-lasting clothes that meet changing attitudes towards ethics and sustainability, over inexpensive, poor quality apparels. With some 65 per cent shoppers planning to buy less, but better following the pandemic, no wonder retailers like J. Crew, Neiman Marcus, and J.C. Penney are fighting to survive. And brands that are changing their product basket as per demand for more sustainable, better quality, and size inclusive requirements of the consumer are thriving.

For example, Giorgio Armani defied predictions of tailored fashion’s demise with the launch of new made-to-order line of women’s customizable jackets, trousers, skirts, and outerwear, recognizing that “Now, more than ever, clients want something meaningful.”

However, to survive through the current crisis, made-to-measure business will need to adapt, change and incorporate new technologies. For example, 3DLOOK’s Mobile Tailor enable made-to-measure businesses to collect precise body measurements remotely, without the need for in-person fittings. With smartphones, customers can capture their own body measurements anytime and anywhere using two photos taken on any smartphone device.

The bottomline is COVID-19 is just a temporary stumbling block, going forward made-to-measure business will adapt, change and move forward.

The Australian Wool Innovation (AWI) has released its Wool 2030 strategy. The strategy represents the fulfilment of recommendation 1.3.4 from the 2018 Review of Performance of AWI by EY, to ‘Develop a ten-year wool strategy to inform AWI’s three-year Strategic Plans’.

AWI asked the Woolgrower Consultation Group (WCG) to provide oversight of the development of the Wool 2030 strategy. The WCG has a membership of 29 wool industry groups as well as a representative of the department of agriculture, water and the environment and the independent chair of AWI’s woolgrower industry consultation panel. Each WCG member was asked to invite a ‘next generation’ counterpart to participate in Wool 2030, effectively doubling the size of the group. More than 800 woolgrowers helped write the report that was overseen by AWI’s Wool Consultation Group (WCG) and the Wool Industry Consultative Panel (WICP).

The key themes from the strategy include the need for better communication and understanding along the wool pipeline. Sustainability is a key attribute sought by today’s consumer, and Australian wool will continue to be promoted for its ‘natural’ advantages of being renewable, recyclable and biodegradable. Improved animal welfare will be also on focus. The Merino ewe will continue to be the cornerstone of the Australian flock, AWI said in a media statement.

The harnessing of new technology promises on-farm efficiencies and solutions to longstanding challenges such as wool harvesting and parasite control. People are also a focus of the plan, which envisions a united, cohesive industry that attracts younger generations.

Oversight of the plan will be provided by Wool 2030 steering group comprising an independent chair, and representatives of national woolgrower and stud breeder organisations and members from all sectors of the wool pipeline.

Midwestern retailer Stock+Field, that sells a range of categories such as apparel, footwear, farm supplies, outdoor goods for camping, boating, fishing and hunting, power tools and even firearms is closing all 25 shops, hosting a chain-wide liquidation sale.

Despite its limited presence, Stock+Field, catered to enthusiasts of the rural lifestyle, offering price cuts on products from top brands. Available brands include: Under Armour, Wolverine, Wrangler, Lee, Justin Boots, Dickies, Cherokee, Carhartt and Oakley, among others.

Seeing these big-name brands offered at last-call prices is likely to get the attention of local shoppers before Stock+Field liquidates and closes down brick and mortar stores. But the closure of the stores illustrates a major issue many of these brands have faced not only since the start of the pandemic, but in the years prior as more retailers went bankrupt—their trust in wholesale is waning.

Stock+Field’s liquidation is being overseen by a joint venture of financial services firms Tiger Capital Group and B. Riley Retail Solutions. The going-out-of-business sales will take place across stores in Illinois, Indiana, Ohio, Michigan and Wisconsin.

The liquidation discounts will only be offered in stores and not on the company website, which shows products but doesn’t currently give shoppers the option to buy them. Stock+Field’s “Order Online/Pickup In-Store” program has been discontinued.

After the crackdown of US Custom and Border Protection on cotton imports from China's Xinjiang region, the government agency has asked retailers to ensure their supply chains are free of forced labor involving Uighur Muslims. The CBP has issued it would detain all imports of cotton and tomato products from Xinjiang and require companies to either prove the products were slavery-free or ship them elsewhere.

The United Nations estimates at least one million Uighurs and other Muslims have been detained in Xinjiang, and many are said to be put to work. China denies mistreatment and says the camps are vocational training centers needed to combat extremism.

CBP said seizing imports would send a message over forced labor concerns in Xinjiang but that businesses had an even bigger role to play in preventing tainted cotton from entering the United States. The CBP expected US retailers to do due diligence down to the third or fourth tiers of their supply chains. Yet labor rights campaigners say most brands have limited to no knowledge about sourcing beyond their main Tier I suppliers.

The US government agency estimates about $9 billion cotton goods were imported from China in the past year. Under a 2016 law, it is illegal to import goods into the US that are made entirely or in part by forced labor – which includes prison work, bonded labor and child labor. The western province of Xinjiang – home to about 11 million ethnic Uighurs – produces about 85 per cent of China's cotton and 20 per cent of the global supply, which is used by fashion brands worldwide. Labor rights and supply chain experts have welcomed the Xinjiang-wide order but said enforcing it would be difficult.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has once again sought extension of loan repayment packages in view of uncertainties caused by the 'second wave' of the pandemic. Industry says garment buyers’ new approach to managing their supply chain amid second wave of Covid-19 has put local apparel exporters in an awkward situation, especially with their management capacity.

The buyers are now deferring order placements and divide them into smaller orders with shorter lead time, though cancellation is not that rampant this time around, exporters say.

Following a surge in new cases in major importing countries, buyers are now deferring order placements and splitting them into batches with shorter lead time, instead of cancelling orders, the BGMEA says. This has an adverse impact on the industry, since factories are not being able to make a forecast and plan their capacity.

Against this backdrop of multipronged crisis, it was becoming increasingly difficult for factories to stay on course without additional financial support by the government. Since factories were already struggling to meet regular expenses and cash flow with exports falling, prices dropped 5 per cent in recent months. Repayment of wage loan incentive, which was availed during April-July 2020, at equal instalments in 18 months would mean an estimated 20 per cent additional wage burden on the factories, the letter mentioned.

Messe Frankfurt, the trade fair organiser, has announced with regulations and travel restrictions imposed due to COVID-19, all international physical trade fairs planned for April and May 2021 mainly - Prolight + Sound, the International Consumer Goods Show, Heimtextil, Techtextil and Texprocess are being postponed.

An annual spring event is essential for the trend-based order cycles in the entertainment, technology, consumer goods and textile industries, which means postponing these events until the second half of the year would not serve the interests of exhibitors. In addition, this is the time when industry participants normally shift preparations into high gear logistics lead time particularly essential for exhibitors at Techtextil and Texprocess, some of whom need to bring machinery to Frankfurt for their presentations. Due to the current situation and on-going travel restrictions, exhibitors are faced with huge uncertainties about who will be allowed to be present and their customer contacts, making it extremely difficult to commit to trade fair participation.

Due to the fact that physical events are not possible, Messe Frankfurt has created numerous digital offerings for its customers. Consumer Goods Digital Day on April 20, 2021, for example, offers customers the opportunity to get together at a digital location where they can engage in dialogue and obtain information.

The content of Digital Day will be focused on ways in which retailers can help their businesses, particularly since it has not been possible to hold any international flagship fairs in Frankfurt featuring the relevant presentation possibilities and supporting programmes since Ambiente 2020. This content will be supplemented by the opportunities presented by Nextrade, the first order and data management portal for the home and living sector.

The International Apparel Federation (IAF) has published its ‘2021 Priority Issues’. IAF’s vision leading to the formulation of priority issues is built on its conviction that the keys to building a better industry can be found in the operation of the supply chain, including the processes, the relations, the contracts and the flows of finance that comprise it. To escape a deflationary spiral the apparel industry is making a transition to a sourcing model based on flexibility and the reduction of uncertainty. The current predominant adversarial relations in the supply chain are a barrier to this transition. Flexibility requires investments in processes that stretch across the supply chain and so these processes can only be carried out when buyers and their suppliers collaborate.

Following this vision, in 2021 therefore IAF’s fulfilment of its mission to unite the industry to enable and promote stronger, smarter and more sustainable supply chains will be a strong focus. Institutional infrastructure is another area of focus. IAF believes the apparel industry needs a better global, institutional industry infrastructure. Similarly, bringing knowledge to associations, training them and coaching them can have a great multiplier effect as they in turn educate their member companies. IAF also believes the industry needs all-out, all-forces-joined drive for digitization. The industry must accelerate its efforts to increase the transparency of its supply chains.

The essence to the greening of the industry is a supply chain wide, collaborative approach. Pledges to reduce CO2 emissions are important but not sufficient. The costs and the rewards of transformation need to be shared better in the supply chain. IAF will focus on bringing the manufacturers’ voice more clearly into the global industry infrastructure that is being built to reduce apparel’s global environmental footprint.

A.T.E. has entered an exclusive agreement with GA Morgan Dynamics, India, for marketing and sales of cutting room machinery and software systems for technical textiles, home textiles, and shoe upper cutting. All machines are manufactured by Morgan Tecnica, Italy. A.T.E. offers world-class products and solutions spanning several segments.

Morgan Tecnica’s fusion line can be used for 3D and 2D design, cut planning and consists of auto loaders, auto spreaders, auto labelling and auto cutters. This flexible automated line can be used for soft as well as hard materials and ensures increased productivity with savings in material wastage and labour cost.

Morgan India serves more than 500 top performing apparel companies in India today, including Arvind, Page, JG Hosiery, Kitex Garments, S. P. Apparels, Orient Craft, Shivalik Fabrics, Bodycare, Nahar Spinning, Pratibha Textile, Rupa, Lux, Dollar, TT, and more. With a team of professionals, Morgan Industrial Training Centre, centralised parts warehouse, and direct service centres at Bangalore, Delhi, Kolkata, Ludhiana, Tirupur, Ahmedabad, and Mumbai, GA Morgan is committed to provide top quality products and services to the Indian textile industry.