The Bangladesh government may consider another stimulus package for garment exporters such that they can pay workers' wages of August, said Finance Minister AHM Mustafa Kamal.

On the eve of Bangladesh embarking on a countrywide shutdown on 26 March, the government announced a Tk 5,000-crore special package to pay the wages and allowances of export-oriented industries' workers for three months starting from April.

As the fund was later found to be inadequate, the government released another Tk 2,500 crore from the bailout package rolled out for the large industries affected by the pandemic.

Banks disbursed the amount directly to the workers' bank accounts or mobile financial service accounts. The interest-free loan carried a 2 per cent service charge.

Then on June 22, the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), whose members generate most of the export receipts, jointly wrote to Kamal seeking continuation of low-cost loans for three more months to September.

Garment factory owners are in deep worry about carrying out various activities, the future of the industry and how to pay wages to the workers, said the joint letter, which was also sent to the prime minister's principal secretary. Garment factories in Bangladesh faced order cancellations or suspensions worth more than $3 billion since the pandemic took form.

Subsequently, earnings from apparel shipments in the immediate past fiscal year fell to its lowest in a decade of $27.8 billion. The amount is 18.5 per cent lower than in fiscal 2018-19.

A group of more than 2,000 online sellers has filed an antitrust case against Amazon in India, alleging the US company favors some retailers whose online discounts drive independent vendors out of business, a legal filing seen by Reuters showed.

The case presents a new regulatory challenge for Amazon in India, where it has committed $6.5 billion in investment but is battling a complex regulatory environment.

In January, the Competition Commission of India (CCI) had ordered an investigation of Amazon and rival Flipkart, owned by Walmart, over alleged violations of competition law and certain discounting practices, which Amazon is challenging, according to court filings.

In the latest case, the All India Online Vendors Association, members of which sell goods on Amazon and Flipkart, allege Amazon engages in unfair business practices. Reuters was first to report the case filing on Wednesday.

The group alleges that Amazon India’s wholesale arm buys goods in bulk from manufacturers and sells them at a loss to sellers such as Cloudtail. Such sellers then offer goods on Amazon.in at big discounts.

Amazon said in a statement it complies with all laws and its India website is a pure third-party marketplace where sellers have discretion to decide product prices. Amazon’s statement also said its wholesale unit allows businesses to buy products and anyone can register on it.

Ermenegildo Zegna, the Italian manufacturer and retailer of luxury menswear has sold Agnona, its women's ready-to-wear brand specialized in knitwear. The company has nonetheless maintained a 30 per cent minority stake in the label. The brand's new owners are the husband and son, respectively, of Laura Zegna, who represents the third generation of the family to lead the company. The brand's current CEO Alessandra Carra, has led the label for the last six years. Simon Holloway, the Anglo-American designer, who has held the role of creative director at the brand since 2015, is leaving the company to focus on new professional challenges.

Since acquiring the historic manufacturer Laneri Agnona, a specialist in women's knitwear, in 1999, the Zegna group has never really succeeded in relaunching the brand, which was founded in 1953 and has been hosting runway shows in Milan since September 2018.

Starting from August 25, the first digital edition of Inspiramais, a material design salon for fashion, was organized by Texbrasil, a partnership between Abit (Brazilian Association of the Textile and Apparel Industry) and Apex-Brasil (Brazilian Trade and Investment Promotion Agency). With the theme “Free Spirit”, Inspiramais includes virtual business roundtables, lectures, showrooms and materials research. Representatives of retailers Cornejotex, Rondina, Lemon, Formfit and Johanna Ortiz participated alongwith 11 brands including Lunelli, MaciasTêxtil, RVB, Rhodia, Kirimure, Innovativ, Sancris, Castanhal, Ecosimple, Hi Etiquetas, and Audaces.

The idea of the event was to promote an exclusive experience, with the possibility of getting to know launches and products, participating in the entire program and conducting direct business with companies in the virtual environment. It focused on the presentation of innovative products, virtual stands and the presentation of color charts.

Another of its highlight was + Estampa, which presented the work of studios that sell illustrations, designs, patterns and prints, offering the market new materials, textures and sensations that will provoke new perceptions by the public. The + Estampa project is carried out by the Brazilian Association of Companies of Components for Leather, Footwear and Artifacts (Assintecal), the Brazilian Association of the Textile and Apparel Industry (Abit), the Brazilian Tannery Industry Center (CICB) and the Brazilian Export and Investment Promotion Agency (Apex-Brasil).

Munich Fabric Start will welcome back exhibitors to its first edition post COVID-19 on September 1. The fair will be renamed ‘Fabric Days’. Having backed out on an earlier decision to host the exhibition in its original form, due to reasons related to COVID-19, show organizers plan to host a consolidated event that would feature around 300 companies.

Returning to its home at Munich’s MOC – despite registering earlier interest in the Messe Munchen exhibition grounds that could have provided more space – the show will feature 700 collections. The inspiring trend of the event will be ‘Hopetimism’ – which nods to the industry’s resurgence from the pandemic. Sebastian Klinder, Managing Director, Munich Fabric Start, said, by organizing Fabric Days, it aims to set an example and offer the industry a trade fair that will be the first event of its kind on this scale.

The Children’s Place is on a path to replace its over-reliance on traditional retail revenue with a stronger focus on e-commerce. After suspending all store operations in the US and Canada due to the pandemic, the children’s wear company started reopening stores on May 19 in 10 states and restored the majority of its remaining stores during the last two weeks of June. As of August 1, it opened 771 of its 824 stores in the US, Canada and Puerto Rico, with the majority of the stores located in California.

The retailer permanently closed 98 stores in the three months ended August 1. It ended the quarter with 824 stores and square footage of 3.9 million, a decrease of 13.2 percent compared to the prior year. As of August 1, The Children’s Place had approximately $36.1 million in cash and cash equivalents with no long-term debt and $250.8 million outstanding on its revolving credit facility. The company used approximately $42.7 million in operating cash flow in the three months. Its net sales during the second quarter ended August 1 decreased by 12.3 percent to $368.9 million while digital sales increased 118 percent.

The company reported a net loss of $46.6 million during the three months compared to net income of $1.5 million in the year-ago quarter. Its gross profit fell by 51.7 percent to $67.1 million compared to gross profit of $138.8 million in the three months ended August 3, 2019. Adjusted gross profit was $93.8 million in the quarter compared to $138.8 million in the comparable period last year.

Adverse currency movement due to COVID-19 has impacted profitability of S P Apparels. Indian currency depreciated significantly in Q4FY20 compared to last year. This impacted the company’s hedged positions and resulted in hedging losses and loss of revenue which is expected to impact its operations in Q1 and Q2 of FY21 also.

Despite COVID-19 uncertainties, lockdown and supply chain disruptions, the garments division of the company did not witness any significant order cancellation from the export customers. All its factories and the corporate office were closed from March 21, 2020 as per directives from the government. The company resumed plant operations from May 11, 2020 onwards over different dates for different factories. As of today, all its factories are operating at around 60 per cent capacity due to social distancing norms imposed by the Government authorities.

International Labour Organisation’s (ILO) Action in the Global Garment Industry strategy hopes to tap into $14 billion in finance from the International Finance Corporation (IFC) and the World Bank to help those impacted by the pandemic. Many Indonesian textile workers’ unions and employer associations have issued the joint commitment to plan first outlined in April. It proposes to take coordinated action to protect garment workers’ income, health and employment. It also calls for more sustainable systems of social protection.

Leading brands and retailers including Primark, H&M, Inditex, C&A, Adidas and VF Corp were amongst the first to endorse the cross-industry plan to provide urgent financial relief to vulnerable garment factories and workers in response to the COVID-19 pandemic.

The Indonesian Employers’ Association (APINDO), the Indonesian Textile Association (API) and the Garment and Textile Trade Union Federation are amongst the latest cohort of industry stakeholders to align with ILO’s ambition, having taken part in an online meeting earlier this month. Aligning industry heavyweights, the ILO is supported by the International Organization of Employees (IOE), International Trade Union Confederation (ITUC), and the IndustriALL Global Union, along with NGOs and finance institutions.

Crisil Research expects credit outlook for cotton spinners to remain negative this fiscal. The firm says, most companies may manage the situation by availing moratorium on debt servicing, additional COVID-19 related bank lines, and government measures such as the relief package to micro, small and medium enterprises.

It also noted one-time restructuring of loans announced by RBI will be a viable option amidst tightness in accruals to repayments in current fiscal. That said, the benefit of continuing soft cotton prices and liquidation of high-cost inventories from past fiscal should help cotton spinners perform better in the second half of the current fiscal, provided demand limps back.

Revenue of cotton spinners is likely to decline 30-35 per cent to a six-year low in the current financial year due to tepid domestic as well as export demand following the COVID-19 pandemic, according to Crisil Research. This revenue loss along with inventory losses and lower profitability is expected to result in moderation in credit quality of cotton spinners this fiscal.

Domestic demand for cotton yarn, which accounts for over 70 per cent of overall demand, has been impacted because of slack in end-user segments such as readymade garments (RMG) and home textiles. Similarly, cotton yarn exports have been affected because of fewer orders from China and Bangladesh, which account for over half of India's exports, Crisil report said.

The Fashion Positive initiative has launched its first ever Circular Materials Guidelines designed to help manufacturers and brands build a more resilient fashion industry. The non-profit's Circular Materials Guidelines 1.0 promotes the use of circular fibers and yarns to create clothes and footwear that are cleaner, safer and designed for the longest-lasting use.

Developed in close collaboration with industry stakeholders, these guidelines eature 'better' and 'best' recommendations to incorporate recycled or reclaimed feedstock into fibre content, and to address chemical safety, cleaner water and renewable energy. They incorporate existing globally-used standards and certifications such as Cradle to Cradle, Bluesign, ZDHC, Oeko-Tex, Higg Index and Canopy.

Through these guidelines, Fashion Positive aims to create coherence and a roadmap to drive a path toward action, innovation, and systems change. Launched in 2014, Fashion Positive is an initiative of the Cradle to Cradle Products Innovation Institute, and now comes under the wing of Textile Exchange which acts as its fiscal sponsor and serves on its advisory council.