Despite being one of the top garment manufacturers in the world, Bangladesh has been suffering from low labor productivity for the last few years.

Lack of training lowers productivity

Both government and non-government organizations have introduced labor-training initiatives in the country. However, these have been grossly insufficient. Data from 2020 Asian Productivity Organizations show, the average productivity of garment workers in Bangladesh is lower than all competing countries except Cambodia. Its per-worker annual productivity is $10,400 while that of Vietnam is $12,700, India $15,800, and China $23,800. This is mainly attributed to lack of proper training, low wages, unhealthy living conditions, and a lack of proper working environment for women workers, says a report by the Business Standard.

Diversification to boost prices

Low labor productivity further results in low prices commanded by garments in the international market. Bangladesh also risks losing duty-free export status in many countries after moving to being a developing country in 2026. It also suffers from the changing trends in traditional working styles. To survive, Bangladesh needs to diversify project offerings besides increasing productivity, say experts. Failure to achieve this may result in a negative impact on the industry, says Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD)

Insufficient government skills programs

Government officials and sector insiders have initiated many plans to address this issue. However, they have done very little groundwork on them. Nazma Akter, Labour Leader and Executive Director, Awaj Foundation believes, the training provided to Bangladesh workers as per the initiatives launched by the government or donors is not sufficient. Workers’ productivity also suffers due to lack of nutritious food which they cannot afford due to low wages, she adds Kalpana Akter, Executive Director, Bangladesh Centre for Workers Solidarity (BCWS), also blames the lack of proper training as well as low wages for low productivity of Bangladesh workers. The lack of a women-friendly environment in workplace as well as a dearth of need based and institutional training are some of the reasons for the low productivity rate in the country, she adds.

Fazlee Shamim Ehsan, Managing Director, Fatullah Fashion and Vice-President, BKMEA states, mental health, nutritional deficiencies, family problems and poor living standards as some of the reasons for workers’ low productivity in Bangladesh. He also blames the lack of initiatives by authorities to increase workers productivity in line with an increase in garment exports.

Moreover government initiatives are mostly on paper. The three days of training provided by the National Productivity Organization (NPO) for mid-level management of factories does not increase the productivity rate of Bangladesh workers. Run by the Ministry of Finance, the Skills for Employment Investment Program also proves inefficient due to lack of transparency while formed in 2019, the National Skills Development Authority (NSDA) program is yet to start. Workers' skills or productivity cannot be increased through isolated programs at the government or private level, says Labor Leader Nazma Akter. They require an integrated curriculum that should be initiated by the government, she adds.

Industry initiatives to boost skill development

The industry has introduced many initiatives to increase productivity through skill development and other measures. BGMEA has established an innovation centre for the relatively advanced workforce including mid-level management. However, the centre is yet to be operational. Abdullah Hil Rakib, Director says, Bangladesh has established several in-house training centres to train unskilled workers. They are trained to use modern and automated machines.

Earlier, Bangladesh made low-cost clothes that did not require many skills. However, now it needs to shed its traditional mindset and start using high-tech machines to produce high-value products, point out Economist Dr Nazneen Ahmed. Workers are rarely trained abroad as manufacturers have installed high-tech machines in factories, says Shahidullah Azim, BGMEA. The concerned foreign companies come to Bangladesh and train workers. Around 70 per cent of Bangladesh’s garment exports are achieved by 450 factories that have introduced training programs for workers. The remaining 30 per cent are expected to join soon.

Focus on the value added MMF segment, technical textiles and manufacturing of indigenous textile machines, urged Ravi Capoor, IAS, Secretary, Ministry of Textiles at the 62nd Annual General Meeting (AGM) of Confederation of Indian Textile Industry (CITI) held in New Delhi on September 30, 2020. The meeting was inaugurated by T Rajkumar, Chairman, CITI who appreciated the historical reforms introduced in taxation, foreign trade policy, power, labor, MSME eligibility criteria, etc. He also appealed for a special package to boost cotton consumption in the country. T Rajkumar, Chairman, Sri Mahasakthi Mills was re-elected as Chairman, CITI while S K Kandelia, President & CEO, Sutlej Textiles and Industries was elected as Deputy Chairman. RL Nolkha, Chairman, Nitin Spinners was elected as the new Vice-Chairman.

More investments and long term contract farming

Citing a study conducted by the central government, Capoor said the share of MMF based textiles and clothing products is likely to go up 80 per cent by 2030 while the share of cotton segment may decline to 20 per cent. To meet growing demand for MMF, spinning companies should enter into long term contract farming for Extra Long Staple (ELS) cotton, advised Capoor. The industry should also focus on specialty cotton like organic and colored cotton.

Capoor advised the industry to use the MSME segment to cater to the low value-added markets in the domestic sector and make huge investments in the forward and backward integration, and Greenfield projects. He also recommended the use of two government schemes in this venture; Mega Textile Park and National Textile Fund.

Extend loan moratorium for two-years

Capoor said, the government has quite bold to introduce historical tax reforms like the implementation of GST, reduction of basic customs duty, removal of anti-dumping duty on all basic raw materials, including PTA, rejection of the proposed anti-dumping duty on several products and introduction of four Labor Codes in place of 44 Labor Legislations. He opined that New Labor Codes would facilitate new investments in the sector besides benefiting its employees.

The government also plans to extend a special export package for top 40 MMF HS lines and 10 technical textiles HS lines, informed Capoor. He appreciated CITI for interacting with the Government on various policy matters, creating a National Committee on Textiles & Clothing (NCTC) and a common platform to enable the Government to get the industry’s demand in a single voice. He advised stakeholders against making conflicting and contradicting demands that might harm the entire textile value chain in the long run. Capoor also hailed the financial relief packages announced for MSME and non-MSMEs. However, he recommended a two years’ moratorium period for all loans and extension of the relief package for all units irrespective of their status of accounts.

Microsoft and Eon are partnering to initially bring 400 million products online by 2025, through a collaboration that introduces an industry-wide digital foundation for a connected and circular economy across fashion, apparel and retail.

Eon’s CircularID Protocol and Connected Products Platform powered by Microsoft Azure make it possible for brands and retailers to provide unprecedented customer insight and enable brands to monetize and scale new circular business models such as rental, resale, digital wardrobing, peer-to-peer exchange, styling services, reuse and recycling.

The introduction of Connected Products at scale across industry could overturn the traditional fashion trope of “take, make, waste” by providing brands with the capability to manage, control and monetise these products through new circular business models. Historically, selling two products has always been more profitable than selling one, putting sustainability and business at odds in fashion retail. With Connected Products, brands are able to generate ongoing revenue from products, meaning they no longer need to rely on the production and sale of more new products as their sole means for generating revenue.

Eon’s vision redefines growth and opportunity for brands and retailers by decoupling it from resource consumption. The approach aims to give each and every garment in the world a digital identity, or a “digital twin”, giving each item its own unique digital fingerprint. Eon manages this digital profile, complete with identification data and transparency information, and embeds the data into the garment with a digital identifier that enables the garment to be connected for its entire lifecycle – from production, through sale, use, reuse and recycle.

Production in Azerbaijan clothing industry increased by 32 percent during the period of January-August 2020. During the period, production in textile, clothes, leather and footwear industries amounted to AZN 314.6 million. Thus, there was an increased in production of clothing by 32 percent, and in textile industry by 4.7 percent, compared to the same period of 2019.

In the meantime, production in leather and footwear industries decreased by 6.3 percent. Moreover, imports of air conditions to Azerbaijan decreased by 30.6 percent and amounted to 123,700 units during the reporting period. The total cost of air conditioners imported to the country amounted to $29.5 million. Likewise, some 361,700 units of computing machines, blocks and installation, which is by 22.8 percent more compared to the same period of 2019, were imported to Azerbaijan during the reporting period. The cost is estimated at $71.5 million.

In addition, 91,234 washing machines, with a decrease by 9 percent, worth $17.3 million were imported to the country during the period of January-August 2020. Furthermore, 132,300 tons of plastic and plastic products worth $225.7 million were imported to the country during the first eight months of 2020.

Amazon, the Seattle-based ecommerce giant, has infused fresh capital to the tune of Rs 1,125 crore into one of its India units — Amazon Seller Services.

The fresh infusion will provide more ammunition to Amazon to compete aggressively against Walmart-owned Flipkart and billionaire Mukesh Ambani-run Reliance Industries' JioMart in the upcoming festive season.

Amazon Corporate Holdings, Singapore, and Amazon.com Inc, Mauritius, have pumped in Rs 1,125 crore into Amazon Seller Services, regulatory documents sourced by business intelligence platform Tofler showed. Amazon Seller Services allotted equity shares to these entities for the said transaction on September 17, 2020.

In June this year, it had pumped in fresh capital to the tune of Rs 2,310 crore into Amazon Seller Services. In January, Founder Jeff Bezos had announced $1 billion (over Rs 7,000 crore) investment in India to help bring small and medium businesses online. Previously, the online retail giant had committed $5.5 billion investments in India, one of Amazon's most important markets outside of the US, and a key growth driver.

As per an Intel Asia report, Vietnam’s Ministry of Industry and Trade has announced the country’s textile and garment exports to the Eurasian Economic Union (EAEU) are about to exceed the trigger level, or the total amount subject to preferential tariffs allowed into the EAEU markets for this year. Vietnam’s dresses, skirts and other female clothing exports to the EAEU from January to July this year reached 79.4 percent of the quota, or the trigger level set for 2020.

As per the agreement’s Article 2.10 safeguard measures for 12 Vietnamese product lines for export, textiles and garments will be subject to safeguard measures while being shipped to the EAEU. Depending on the export volume that exceeds the trigger level, local textile-garment products will not be entitled to preferential taxes and will be imposed Most Favoured Nation import duties for a period from six to nine months.

The trade agreement came into force on October 5, 2016, enabling local enterprises and the EAEU, consisting of Russia, Belarus, Kazakhstan, Armenia and Kyrgysstan, to take advantage of trade and investment incentives and accelerate cooperation over the economy, trade and investment.

According to data from the general Department of Vietnam Customs, Vietnamese products enjoying preferential tariffs under the pact chiefly comprise textile-garments, footwear, seafood, agro items, phones and accessories.

New York City-based designer and founder of Pyer Moss, Kerby Jean-Raymond will be the new Vice President -Creative Direction at Reebok. He will provide creative leadership and work closely with the brand’s product, global marketing and development organizations to ensure consistency across all areas. Jean-Raymond will also be at the forefront of the brand’s Product With Purpose program, which is part of its commitment to United Against Racism. The program will launch in 2021 and the first products by Jean-Raymond will release in 2022. In addition, he will serve on the Reebok senior leadership team and report to president Matt O’Toole.

Jean-Raymond started working with Reebok in 2017 after meeting Damion Presson, Director-Entertainment Marketing. He was hired to support the launch of a shoe at the time called the ‘DMX Fusion. Reebok and Jean-Raymond have worked together for four years on the Reebok by Pyer Moss collection, a popular footwear line. Their work together led to Jean-Raymond winning Footwear News’ 2018 Collaboration of the Year Award and the 2019 FNAA Person of the Year Award. He took home the CFDA Award for Menswear Designer of the Year and Designer of the Year from Harlem Fashion Row this year.

Last year, he was named artistic director of Reebok Studies, a new division created to foster emerging talent, and this year launched with Kering, Your Friends in New York, a fashion, culture, wellness and philanthropy platform to foster the next generation of innovators.

Sustainability and innovation will be in focus at the AW22 season of Copenhagen Fashion Week that will host over 35 celebrated brands, including emerging talents like A Roege Hove and (di)vision. These will showcase alongside internationally renowned Nordic brands including Ganni, Stine Goya, Holzweiler, Saks Potts and Marimekko.

Return of the industry veterans

The upcoming edition will also mark a return of industry veterans like Martin Asbjørn and Wood Wood alongwith Jade Cropper, the winner of this season's Talent Slot. Poetism by Tobias Birk Neilsen, Fassbender and Tommorrow Denim will present their collections at the third season of the Zalando Sustainability Award with the winner being announced during the AW22 edition. Majority of the scheduled brands will showcase their collections both physically and online. Live streams of all their showcases will be available via Copenhagenfashionweek.com or through the fashion week’sYouTube Channel.

The Zalando Sustainability Award will boast of many innovative and inspiring finalists like Poetism by Tobias Birk Nielsen, Fassbender and Tomorrow Denim. Each finalist will showcase in the official Zalando venue. The winner will be announced at a ceremony during AW22.

Supporting emerging talent

The Talent Slot award, Jade Cropper, will showcase her collections that challenge conventional notions of female beauty, through her eponymous brand. She will demonstrate her signature deconstructed designs created using sustainable materials and handmade prints.

Julie Gilhart, CDO of Tomorrow Ltd & President, Tomorrow Projects, will continue to focus on supporting young voice as the event’s Talent mentor. She will offer a mentorship program to Jade Cropper as part of Copenhagen Fashion Week's focus on supporting young voices,

Menswear legends in focus

Copenhagen Fashion Week AW22 will host a carefully selected list of visionaries in the menswear sector like Schnayderman's and (di)vision. It will also host established names such as Henrik Vibskov, Soulland, Wood Wood, Martin Asbjørn and Samsøe Samsøe who will not only showcase their menswear collection but also focus on womenswear.

Curated by a committee of Nordic and international signatories, the AW22 schedule of Copenhagen Fashion Week will host international members representing various sectors of the creative industry. Some of the reputed members of the show Committee will include Laird Borrelli-Persson, Archive Editor, Vogue.com; Ida Petersson, Fashion Buying Director, Browns Fashion; Christopher J Morency, Editorial Director, Highsnobiety; Dio Kurazawa, Co-Founder, Bear Scouts; Julie Gilhart, CDO, Tomorrow Ltd & President, Tomorrow Projects.

It’s been a year since the denim supply chain has been facing logistical and financial challenges like congested ports, factory shutdowns and tight shipping capacity. Adding to its woes, cotton prices have reached record breaking levels, forcing companies to reorganize operations, as per Mark Ix, Director-Marketing, North America, Advance Denim. According to retail intelligence platform Edited, price inflation has affected the denim category the most as cotton makes up over 90 per cent of the raw materials used to make denims. It has also led to stocks of Kontoor Brands falling 6 per cent as investors feared margin erosion.

Not just cotton, prices of dyes too have increased 80 per cent alongwith the prices of other raw materials, says lx. To keep costs low, the China-based denim mill negotiates rates with suppliers on current order positions. However, the mill continues to get quotes from spinning mills based on the current cotton prices.

Price rise impacts larger denim brands

The price rise is impacting orders for larger brands. As Chip Bergh, President and CEO, Levi Strauss & Co explained, his brand is collaborating with partners to make purchases at optimal time for both parties. The company has negotiated most of its product costs through the first half of 2022 at very low single-digit inflation. In the second half it anticipates a mid-single digit increase in cost of goods sold, which it will offset with the pricing actions it has already taken.

However, anticipating a dip in pricing is especially challenging in the current climate as all inputs are in an inflationary mode, explains lx. But, Levi’s remains nimble despite its huge size. The brand refashioned its stores into mini-distribution centers at the start of the pandemic allowing it to ship from retail locations. The brand also reduced its markdowns and increased prices by 5 per cent in Q2 across all geographies and channels, leading to 1 per cent increase in gross margins, reveals Harmit Singh, Executive Vice President and CFO, Levi Strauss & Co. Following suit, other brands too slowed their discounts. This may help them offset the increase in cotton prices. Guess and Lee have reduced promotions to boost bottom lines.

Tapping low-cost fibers

Meanwhile brands like Advance Denim are tapping low cost fibers to offset the rise in cotton prices. However, this may prove to be a step backward in terms of sustainability. To bring the denim industry out of current mess, companies must continue to focus on sustainability, affirms a 2020 study by trend forecasting company WGSN. The Edited report shows, rise in material costs has actually unveiled opportunities for the industry to shift to other eco-friendly fibers like hemp, Lyocell and Tencel. This may end denim’s long dependence on cotton.

Many mills have been looking into blends with recycled and alternative fibers for the last few years to reduce the impact of cotton price rises. However, cotton will continue to remain important in the denim industry despite its widening menu of fibers, adds Aman Tata, Director, Naveena Denim Mills.

The 5th ITMF Corona Survey conducted by ITMF amongst 216 companies across the world states, integrated manufacturers are coping better with the negative effects of the pandemic than other segments. Conducted between September 5-25, 2020 the survey looked at different segments of the textile value chain. It observed that the finisher/printer segment expects a 30 per cent reduction in turnover than the other segments like chemicals, dyes and auxiliary materials suppliers.

The Corona-pandemic has proven in a brutal way how important digital capabilities are when physical interactions with suppliers or customers are impossible or restricted. Around 21 per cent of all companies hoped to improve their digital capabilities while 18 per cent opined that reducing the dependency on few customers is important followed by 17 per cent who viewed broadening products on offers and strengthening balance sheet as being the crucial factors for future success. While 15 per cent of the respondents opined that changing the products on offer is necessary, 10 per cent believed that reducing the dependency on few suppliers is important.