Yarn manufacturers in Bangladesh are grappling with unsold stocks. Demand for locally manufactured yarn and fabrics have fallen amid decreased work orders. On the other hand, fabrics imported illegally by apparel makers by misusing the bonded warehouse facilities are taking a toll on the sector. It was assumed that work orders would flow into the sector due to the ongoing US-China trade war. But it has not happened as China has offered its manufacturers incentives while fabrics and yarn are entering Bangladesh by way of wrong declarations.

Apparel makers in Bangladesh prefer imported yarn and fabrics, which are cheaper than what’s made within the country. Bangladesh’s currency has gained against the dollar and eaten up the competitive edge. China and other countries offer better prices on yarn and fabrics as they have devalued the dollar while they have their own cotton against Bangladesh’s zero production.

There are 430 yarn manufacturing mills, 802 fabric manufacturing mills, and 244 dyeing-printing finishing mills in Bangladesh. In August, the apparel sector, which accounts for 84 per cent of national exports, witnessed a 11.46 per cent decline. Global buyers are not placing orders as the production cost in Bangladesh has gone up due to the new wage structure.

World Fashion Convention will be held in Pakistan from November 12 to 13, 2019. The main focus is to highlight the image of Pakistan, update participants about what Pakistan produces and ensure interaction among Pakistan exporters and international textile chains. The mega fashion show is expected to attract delegates from over 45 countries. There will be panel discussions, lectures and workshops about the textile and garment industry of Pakistan. A fashion competition will educate young fashion designers about sustainable design techniques and theories, besides providing a platform for aspiring designers. The competition will challenge young designers to put their creative powers to the test by proving their ability to transform textile waste into wearable, appealing and commercially viable products.

This convention organised by the International Apparel Federation caters to apparel industry leaders from across the supply chain, from all continents. Top speakers from across the globe will cover the width of the supply chain, from raw materials to apparel sourcing and from production to retail trends. On top of that, the convention provides an excellent opportunity to meet the global industry in one location. Delegates, many of whom would be visiting Pakistan for the first time, will review Pakistan’s products, and the standard of its textile and garment companies.

Indian textile and clothing industry is facing a severe liquidity crisis mainly due to the huge accumulation of dues, especially TUF subsidies.

The industry has requested that the dues and TUF subsidies be released along with stimulus measures such as debt restructuring, e-auctioning of CCI procured cotton and extension of export credit. Consequent to the 28 per cent increase in the minimum support price for cotton, Indian cotton has become expensive when compared to international cotton prices, making Indian cotton and textile products uncompetitive in export markets.

This has resulted in a sizeable increase in imported cotton during the current season. The country is likely to end with over 50 lakh bales in closing stock for the current season due to reduced exports and increased imports. The cotton spinning sector is currently facing an unprecedented crisis due to the excess production capacity to the tune of seven million spindles. This was created taking advantage of incentives offered by the textile policies of states like Gujarat, Maharashtra and Andhra Pradesh. Cotton yarn consumption in the domestic market has stagnated during the last four years. The 35 per cent fall in yarn exports in recent months has aggravated the situation. The sluggish demand has severely affected cotton farmers as the country is left with excess cotton production.

Lenzing will use blockchain technology to support its Tencel branded fiber business. This will ensure complete transparency and traceability for brands and consumers of its fibers in the finished garment. The supply chain transparency from wood to garment and home textiles will enable all customers and partners to identify Tencel fibers and the respective wood source in each production and distribution step. Thanks to a QR code on the final garment, consumers will be able to detect the origin of the clothes they intend to buy.

Lenzing, the world market leader in specialty fibers made from renewable material wood, is strengthening its leading position in sustainability in the textile industry. With Ecovero branded fibers Lenzing was the frontrunner in physical traceability and is now entering the age of digital traceability. Lenzing has issued blockchain based Tencel fiber coins to its supply chain partners in direct relation to physical shipments. These digital tokens serve as an authentication mechanism against any adulteration and provide secure digital chain-of-custody across the entire textile value chain. Lenzing is carrying out further pilot tests over the next few months involving partners along the entire value chain.

Consumers increasingly want to understand the ingredients and suppliers of the products they buy, requesting a new level of transparency and traceability.

H&M’s fall/winter line is made of sustainable materials like recycled polyester, recycled brass, recycled zinc and a blend of Tencel and Refibra. Inspired by masquerade balls, the collection includes eveningwear such as softly tailored check separates, figure-fitting dresses and oversized hoodies, in an earthy color palette of light neutrals, black, with pops of orange and red.

On the lookout for new innovations, new fabrics and new processes, H&M wants to show sustainable fashion doesn’t have to look boring or beige or like a burlap sack. The vision is to lead the change towards a circular and renewable fashion industry while being a fair and equal company. Using its size and scale, it is working to catalyze systemic changes across its operations, its entire value chain and the wider industry. The aim is to engage customers and provide great fashion and design choices. About 57 per cent of all materials for H&M’s products are recycled or other sustainably sourced materials. Ninety-five per cent of cotton used by H&M is recycled or otherwise sustainably sourced.

Today, fashion and sustainability is no longer a contradiction in terms. Reusing and recycling is an important initiative across fashion. Fashion-forward designs are being made from recycled materials.

Indian apparel exports to European markets and the UK declined by two or three per cent during the first four months of the fiscal. In addition to a general slowdown in EU’s import demand amid currency weakening, India’s position in the EU has been adversely affected by the preferred access to key competing nations such as Bangladesh and Vietnam, by way of free trade agreements.

While the trade war has opened up opportunities for Indian apparel exporters, there are doubts if they will be able to grab it. It would require companies to scale up their operations, maintain strict delivery schedules and meet stringent compliance requirements of the buyers in a short span of time.

Export incentives will play a crucial role in determining the ability of apparel exporters to garner a larger pie of the global apparel trade. While these incentives have proved partially useful, they have not helped Indian apparel manufacturers compete on price with their competitors. Some Indian apparel makers feel they can shift their existing manufacturing to Vietnam and Bangladesh to benefit from tariff arbitrage, labor laws, low wages, conducive business environment and, hence, better return on capital employed.

Despite Africa facing a sharp fall in global investment, Jiangsu Sunshine Group has decided to expand production in Ethiopia by about a third. The group recently held a recruitment drive in the country that received an overwhelming response. Three batches of 145 Ethiopian undergraduates were recruited for one-year training in China and the first batch went back to Ethiopia in March.

Zhao Jiang, Director-Operations, Sunshine Ethiopia Wool Textile, Jiangsu Sunshine Group feels, the country is rich in human resources with a labor force of over 50 million. It also has abundant water and power resources, without any tariffs when exporting to Europe and America.

The company began considering establishing their first overseas factory in Ethiopia in 2015 to offset the increasing labor cost in the domestic and preferential policies under the BRI.

American & Efird (A&E) has released a line of 100 per cent recycled, industrial sewing threads. The launch of this product line is driven by the company’s commitment to sustainability and a surge of sustainable product pledges and commitments by prominent brands and retailers around the world. The company is known in the industry for sustainable, ethically-made sewing threads.

A&E is a manufacturer of industrial and consumer sewing threads. Known for its leadership role in innovation, product quality, and sustainability, A&E supports many of the world’s top industrial and consumer brands with thread products that require strict quality and performance. Through its global network, A&E’s products are manufactured in 22 countries, distributed in 50 countries and sold in over 100 countries. The textile thread manufacturer achieved its initial targets for zero-waste-to-landfill in 2015. American & Efird has also launched a new recycled polyester sewing thread. This is designed especially for athletic wear and high-performance apparel. The new thread is derived from recycled post-consumer plastic bottles and aims to provide textile manufacturers within the performance apparel, active wear, athleisure, and intimate apparel markets a recycled alternative to existing sewing threads. The air-entangled sewing thread is made with Repreve recycled polyester, a brand of US yarn supplier Unifi.

Miriam Neale, a health and safety expert from the Amsterdam office of Bangladesh Accord feels, Pakistan industries needs to form an agreement similar to Accord to ensure workplace safety. Since 2014, Neale has led Bangladesh Accord’s signatory engagement work supporting almost 200 companies that are signatories to implement the accord’s workplace safety programs with their suppliers. She also supported the governance processes of the accord coordinating the steering committee and protocol development.

The Accord covers factories producing Ready-Made Garments (RMG) and at the option of signatory companies, home textiles and fabric and knit accessories, she said. It has benefitted the local exporting industries besides organizing their labour force and trade unions.

The Accord was signed in the immediate aftermath to the Rana Plaza building collapse on 24 April, 2013 which killed 1,133 workers and critically injured thousands. Over 220 companies signed the five-year agreement.

"Growing awareness about sustainable and ethical fashion is encouraging the fashion industry to become more transparent about its operations. Today, consumers are more concerned about the origin of their clothes than they were earlier. They are now familiar with every aspect of their garment’s production including the source of accessories, dyeing process, factory conditions and the environmental impact of overseas shipping, etc. They have also realised the benefits of being aware about such information for their business."

Growing awareness about sustainable and ethical fashion is encouraging the fashion industry to become more transparent about its operations. Today, consumers are more concerned about the origin of their clothes than they were earlier. They are now familiar with every aspect of their garment’s production including the source of accessories, dyeing process, factory conditions and the environmental impact of overseas shipping, etc. They have also realised the benefits of being aware about such information for their business.

A recent report by Sourcing Journal titled “Transparency: Opportunities, Obstacles & Outlook 2019” reveled around 85 per cent respondents have realised the importance of transparency in the success of their business and around 66 per cent of them have already introduced transparency initiatives while another 15 per cent plan to introduce them within the next year and 13 per cent expect to pursue these initiatives in the next 2-to-5 years.

Rising demand increases focus on transparency

The report also notes 35 per cent respondents viewed consumer demand as being the major trigger for increasing focus on transparency by brand. Around 53 per cent believe increasing consumer interest in transparency arises out of their curiosity to know everything about their products.

Around 56 per cent respondents believe focus on transparency has increased their brand’s reputation besides increasing customer’s loyalty. On the other hand, around 35 per cent measure the return on investment of their transparency efforts by how much they meet or exceed industry standards, while nearly one-quarter (24 percent) measure sales, monetary returns and good press coverage.

Transparency in supply chains and factories

Around 78 per cent executives advocate an improvement in transparency of their supply chain around 60 per cent preferred their factories and retailers to be more transparent. As per International Corporate Accountability Roundtable (ICAR), transparency improves a brand’s reputation, efficiency, legal compliance and access to capital. Around 66 per cent believe it is important for them to be known for their apparel product’s environmental impact. Out of this, 58 per cent are willing to pay around 20 per cent more prices for sustainable and eco-friendly products. Another 82 per cent would pay more for items they could recycle or dispose of sustainably.

Ensuring a fair treatment to their workers

The Global Consumer Transparency survey also indicated that around 78 per cent respondents would like to ensure fair treatment to apparel workers. An additional 78 per cent would like to understand the price dynamics of their products while 77 per cent would like to ensure their clothes are eco-friendly. Around, 81 per cent respondents expressed their willingness to buy clothes from transparent brands while 50 per cent are ready to abandon brands that make environmentally or socially harmful clothes.

Though the transparency report acknowledges improvements in accountability within the fashion industry, it advocates more government involvement to ensure that companies remain compliant with the law.