As per reports, Premium Apparel LLC, an affiliate of New York City-based private equity firm Sycamore Partners, has inked an agreement with Ascena Retail Group to purchase its brands for $540 million. The apparel and footwear brands that Premium Apparel has committed to purchase include Ann Taylor, LOFT, Lane Bryant and Lou & Grey. The deal is expected to close by mid-December. According to this deal, Premium Apparel will acquire the brands on a cash-free and debt-free basis.

An operator of 1,500 stores across the US, Ascena Retail Group filed for Chapter 11 bankruptcy in July. In September, the company agreed to sell its plus-size chain Catherines to FullBeauty Brands for $40.8 million. The company has also ceased operating its Justice and Dressbarn brands over the last 18 months.

Kirkland & Ellis LLP is serving as legal counsel to the Ascena Retail Group, and Alvarez and Marsal Holdings LLC is serving as restructuring advisor. Guggenheim Securities LLC is serving as Ascena’s financial advisor. Davis Polk & Wardwell LLP is serving as legal counsel to Sycamore Partners and Premium Apparel.

The Ministry of Textiles plans to set up an Export Promotion Council for Technical Textiles. India already has 11 Export Promotion Councils (EPCs) for the textile and apparel industry. Through this EPC, the government now aims to focus on the potential in technical textiles in India. It had already notified 207 items as technical textiles in January 2019, Of these, 12 products belong to the apparel sector. The global market for these 12 products is estimated to be $11 billion, though India’s export is only $93 million.Hence, there is a huge potential for export of these products in India.

A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), has welcomed the government’s decision to form an EPC for Technical Textiles as it will not only boost exports but also strengthen the domestic manufacturing capacity in this sector.

Vietnam’s textile and garment exports are expected to decline by 14 per cent this year to reach $33.5-34 billion. As per the Ministry of Industry and Trade, this year was particularly difficult for Vietnamese textile and garment industry as the market was complex and difficult to forecast. Demand for textile products slowed due to COVID-19 as consumers around the world focused on essential appliances and disease prevention. And as Le Tien Truong, General Director, Viet Nam National Textile and Garment Group (Vinatex) says, the pandemic broke supply chains and resulted in declining demand for goods the world over.

However, the decrease in Viet Nam's textile and apparel industry was not as large as other countries since textile enterprises rapidly transformed from traditional to adaptable products such as switching from high-class suits, shirts to labour protection, knitwear and traditional shirts to maintain production and business activities. Also, Vinatex still maintained jobs for the whole system and no employees were laid off. The group’s average income expected to be realized in 2020 is $342 per person per month, adds Troung.

Nguyen Duc Tri, Chairman, Hoa Tho Textile-Garment JSC, advises the government to focus on development of industrial zones with wastewater treatment systems, ensuring environmental hygiene in the central region so textile and dyeing enterprises and supporting industries could focus on development and attracting workers from neighbouring areas such as HCM City, Bien Hoa and Dong Nai.

The Ministry of Industry and Trade has said textile enterprises need to introduce new solutions to change production and business methods to suit the new situation. At the same time, enterprises should exploit and expand the domestic market and link with customers to form production chains.

The number of countries growing genetically-modified (GM) cotton in Africa has doubled since 2018, says a International Service for the Acquisition of Agri-biotech Applications (ISAAA) report on the Global Status of Commercialized Biotech/GM Crops. Alongwith South Africa, Sudan and Eswatini, Ethiopia, Malawi and Nigeria were added to the list of countries adopting a biotechnological approach to reduce risks that pests and a sporadic climate pose to crops. Kenya may soon join this growing cohort of nations.

Across the six countries that now grow GM cotton – approximately three million hectares of land have been used over the past year-- with this sum likely to increase as Kenya looks to capitalize on the potential a biotechnological approach holds.

Encompassing Ethiopia, Malawi and Nigeria, 29 countries around the world planted GM crops last year, with the USA, Brazil, Argentina, Canada and India representing the largest markets. In total, more than 190 million hectares of land were used to harvest such crops.

In Africa, progress has been made in biotechnological crop research, regulation and acceptance in countries such as Mozambique, Niger, Ghana, Rwanda and Zambia.

The online HKTDC Autumn Sourcing Week (ASW) exhibition featured more than 2,600 exhibitors. Organized by the Hong Kong Trade Development Council (HKTDC), the exhibition attracted more than 27,000 buyers from 132 countries and regions including Hong Kong, India, Indonesia, Japan, Korea, Mainland China, Malaysia, Pakistan, the Philippines, Taiwan, the United Arab Emirates and the United States.

HKTDC's online business matching platform Click2Match used artificial intelligence (AI) to conduct automatic matching between potential business partners. The platform helped participants to schedule meetings, conduct video meetings, chat in real time and exchange e-business cards. The HKTDC conducted an online survey with exhibitors and buyers during ASWO in which respondents said that meeting scheduling was the most useful of the platform's functions, followed by video meeting and live chat capabilities.

Exhibitors used 3D virtual booths to showcase their products in a more visually striking way, attracting more than 65,000 views. In addition, more than 20 webinars were held during the event. The most popular webinars were the: Symposium on Innovation & Technology; Eco Asia Conference; Hong Kong International Optometric Symposium; Hong Kong International Watch Forum; and Hong Kong Toys Industry Conference. More than 100 industry leaders shared their insights at these webinars, allowing global exhibitors and buyers to stay close to the pulse of the market and get the most up-to-date information in the midst of the pandemic.

As per an International Labor Organization report, the COVID-19 pandemic has forced global wages down - particularly for women and low-paid workers. The ILO's Global Wage Report 2020-21 highlights wages declined during the first six months of 2020 in two-thirds of countries. Women were disproportionately affected by this and the crisis is likely to inflict further massive downward pressure on wages in the near future.

Though in some countries, averages wages appeared to have increased, it was mainly a result of many lower paid workers having lost their jobs thereby skewing average earnings. Without subsidies, the average amount of wages lost across all groups is estimated to be 6.5 per cent. However, wage subsidies compensated for 40 per cent of this amount.

The recovery strategy must be human-centered and wage policies need to take into account the sustainability of jobs and enterprises, and also address inequalities and the need to sustain demand, said Guy Ryder, Director General, ILO

The report analyses minimum wage systems. It says that minimum wages are in place in some form in 90 per cent of ILO Member States. However, the report found that 266 million people – 15 per cent of all wage earners worldwide – are earning less than the minimum wage with women, again, over-represented.

To control this, but measures were needed, including better compliance, extending coverage to more workers, and setting minimum wages at an adequate, up-to-date level, the report says.

Pakistan needs to collaborate with China to exchange cotton germplasms and share knowledge and scientific approaches for higher quality yield, says Muhammad Tehseen Azhar, Faculty Member, Department of Plant Breeding and Genetics, University of Agriculture Faisalabad (UAF), and Lecturer-Chair of Germplasm and Genetic Stocks, ICGI in a TexTalks report. Collaboration is imperative as Pakistan does not have the required cotton for machine picking. It is still on the list of developing countries, and there’re lots of differences in cotton research between Beijing and Pakistan, like the lack of proper infrastructure in agriculture, added Azhar.

Germplasm is the baseline of breeding, so a breeder cannot conduct any experiment without germplasm. Therefore, a gene pool that has all the desirable genes needed for the development of variety is longed by scientists and it calls for efforts from scholars of different nations

Azhar also emphasized on the consolidation and standardization in the cotton seed industry in Pakistan. He noted that cotton outputs in Pakistan have plunged to 21-year lows these days, threatening the livelihoods of growers and textile sector’s viability.

Held digitally, the recent Carved in Blue seminar, showcased the industry’s views on low-impact denim and the inclusion of wood-based Tencel branded fibers in new collections.

Denims from biodegradable materials

Pierette Scavuzzo, Design Director, Cone Denim, opened the discussion highlighting the company’s new range of Tencel Lyocell fabrics. Known as Indigo Revive, Sweet Leaf and Cone Community, these fabrics are made from a new innovative yarn upcycled from the brand’s mill dye waste. Each blend hemp with Tencel in the warp, creating a nice juxtaposition between the rustic nature of hemp and the softness that Tencel Lyocell brings.

Cone Denim also develops lower impact denims fabrics that promote circularity, are made from biodegradable material and reduce water, chemical consumption. Its product Bodh uses internal dye waste to create a new yarn and blends that with navy dyed modal. This reduces any additional dyeing and accounts for a 65 per cent water savings, Scavuzzo explained.

Mapping the product’s lifecycle

Mexico-based Global Denim has launched Circl-a new group of fabrics made from a blend of 100 per cent recycled cotton yarn. A part of its Ecoloop program, these fabrics are made at the company’s new recycled cotton facility from post-consumer and post-industrial waste, informed Anatt Finkler, Creative Director. The brand offers Circl fabrics both in rigid and comfort stretch.

The brand is expanding its Superflex collection by including fabrics with Tencel Lyocell into this product category. It believes in looking at the entire lifecycle of products. Hence, conceptualizes new dyeing, energy and water saving solutions from their inception through to end-use.

Offering an authentic 90s look, Tavex’s Nostalgic Cozy fabrics are the perfect combination of modern with retro. Made from recycled cotton, these fabrics have Tencel Lyocell finishing that reduce water consumption, noted Arlethe Sánchez, Marketing and Sample Room Coordinator. They keep consumers comfortable in their day-to-day life, offering them freedom of movement. Tavex has also launched a collection of Cotton Less Denim made from Tencel Lyocell fibers. Sanchez believes final garments should have an ecological story behind them that can help the industry change consumption patterns.

Blending environment with tradition

Having Tencel Lyocell and Modal fibers in several denim and denim colors, brand Vicunha mixes cotton, polyester and elastane threads in several products. The brand considers denim as the most democratic fabric in the world. Millennials, and especially Generation Z, are driving its growth, said German Alejandro Silva, Chief Marketing Officer.

Its constant investments in new innovations enable Vicunha reach new heights. The company has been emphasizing on the use of recycled fibers, residues from production, certified raw materials, water saving and water treatment processes. It is possible for a denim brand to be eco-friendly without sacrificing the traditional characteristics of their jeans, Alejandro Silva added.

A strong pillar supporting the country’s economy, the Pakistan textile sector is experiencing a massive contraction in its global trade value. This year, the country lagged behind Bangladesh, India, China, and Vietnam in textile growth. Factors that stalled growth included an o

vervalued rupee and exorbitant power tariffs. Though the issue of an overrated rupee was immediately addressed, Pakistan’s electricity costs continue to remain high. Local textile players are forced to pay 9 cents per kWh which is costlier than what exporters in other countries pay. This intensifies the industry’s grievances.

Relief package to foster productivity

To address these issues, the government has introduced a relief package that fosters productivity and employment in the industry. The package seeks to reduce the burden on textile and other manufacturing units. Currently, Pakistan has bagged numerous international orders including those rerouted from America. To execute these orders, exporters plan to operate double shifts. The energy costs of both these shifts will remain similar. However, suppressing additional electricity tariffs during peak hours will make second shift inevitable.

This will also include 50 per cent and 25 per cent concessions for small and medium enterprises (SMEs) and large-scale manufacturing (LSM) respectively. SMEs will now be charged 7.875 cents per kWh for LSM. According to a report ‘Pakistan in the Apparel Global Value Chain’, published by the World Bank and Duke Value Chains Centre, SMEs contribute roughly 10 per cent to Pakistan’s textile industry. Hence, the effective average tariff for the sector needs to be in the range of 7.76 cents or Rs 12.4 per kWh ($1 = Rs 160).

Stimulus to boost SMEs

The government package stimulates industry growth by reducing exporters’ tariff by 13.7 per cent. It not only provides a level-playing field in the post-lockdown global trade dynamics but also offers a greater relief to the SMEs. It enables SMEs to avail a 25 per cent markdown for further two years, even if the government decides against a renewal.

The favorable returns of the package will remain till the government reduces customs and regulatory duties on imported cotton yarn and machinery. Pakistan has been importing cotton yarn due to a reduction in local cotton production. However, productivity levels are being affected by duties on machinery. The country needs to relax these duties besides simplifying tax laws, and amending rules to further expedite the sector’s growth.

Chinese textile company Suvim will export 10 million towels for the upcoming Olympic Games in Tokyo. The company’s towel exports to Japan have increased despite the pandemic and tariff rates for China that are far above those for its neighbors like Vietnam. Significantly, the manufacturer is preparing ten million towels for the upcoming Olympic Games in Tokyo.

Since their first overseas order from Japan three decades ago, Sunvim has built a partnership with over 100 Japanese companies.Over the years, they've been among traders reshaping the two markets.

The company has R&D facilities in Japan where it hoped to benefit further from IP cooperation through joint programs,says Xiao Maochang, Chairman. This is a great chance for China's textile industry to showcase its competitive advantage in global trade, he adds.

Though the true effect of the RCEP pact remains to be seen, the company has already received orders of towels for Tokyo Olympic village and the Games' commercials.