Vietnam's exports declined by 10% year-on-year in the first seven months of 2023, but are expected to rebound in the fourth quarter as US inventories normalize and multinational companies relocate manufacturing to Vietnam.

The decline in exports was due to several factors, including high inventory levels in key export destinations, the conflict in Ukraine, and the ongoing COVID-19 pandemic. However, there are signs that these factors are starting to ease, which could lead to a rebound in exports in the coming months.

The US is in the process of normalizing its inventories, which will reduce the need for imports from Vietnam. Additionally, multinational companies are increasingly relocating manufacturing to Vietnam due to its strategic location and favorable business environment.

These factors are expected to lead to a rebound in Vietnam's exports in the fourth quarter of 2023. However, there are still some risks that could hinder this recovery, such as a global economic downturn or rising protectionism.

Overall, the outlook for Vietnam's exports is positive. The country is well-positioned to benefit from the relocation of manufacturing from China and the normalization of US inventories. However, there are some risks that could dampen the recovery, so it is important to monitor the situation closely.

Inditex, the Spanish multinational fashion group, is expanding its Zara Pre-Owned platform to France. The service, which allows customers to buy and sell secondhand Zara clothing, will launch on September 7.

The launch in France is the second for Zara Pre-Owned, which was first launched in the United Kingdom in November 2022. The company plans to expand the platform to all key markets by 2025.

Zara Pre-Owned is part of Inditex's sustainability strategy. The company aims to reduce its environmental impact by extending the lifespan of garments and reducing the consumption of new raw materials.

The platform offers a variety of services, including garment repair, online marketplace, and donation. Customers can also track their orders online and arrange delivery at their preferred Zara physical store.

The launch of Zara Pre-Owned in France is a significant milestone for the company. It is the first time that the platform has been launched in a major European market. The launch is expected to help Inditex achieve its sustainability goals.

Next, the UK-based clothing retailer, has finalized an agreement to acquire a majority stake in Reiss Group, a high-end fashion chain. The deal is worth £128 million ($162 million) and will see Next increase its ownership in Reiss from 51% to 72%.

The Reiss family will retain a 22% stake in the company, while the management team will hold the remaining 6%. The deal is expected to close in mid-October, subject to regulatory approvals.

Next has been steadily expanding its portfolio in recent years, acquiring other well-known brands such as Cath Kidston, Joules, and Made.com. The acquisition of Reiss is a strategic move for Next, as it will give the company a stronger foothold in the high-end fashion market.

Reiss has been performing well in recent years, with sales increasing by 26% in the 12 months leading up to the end of January. The company's online operations are managed through Next's Total Platform business, which also extends warehousing and distribution services to Reiss. This has helped Reiss to expand its international presence.

The acquisition of Reiss is a positive development for both companies. Next will gain a strong foothold in the high-end fashion market, while Reiss will benefit from Next's expertise in retail and e-commerce. The deal is also expected to create synergies between the two companies, which could lead to further growth in the future.

Last week, The Gap Inc. released its fiscal results for Q2 2023 ending in June. The lifestyle conglomerate ended the quarter with cash and cash equivalents of $1.4 billion, an increase of 91 per cent over previous year. A dive into details of fiscal performance shows in most segments, decrease is the common word, however slight that may be. 

A look at Q2 results showed net cash from operating activities was $528 million, year-to-date; net cash from operating activities less purchases of property and equipment, stood at $329 million. Also at the end of June, the ending inventory of $2.23 billion was down 29 per cent compared to last year. The year-to-date capital expenditures were $199 million. The corporation paid its second quarter dividend of $0.15 per share. Additionally, the board of directors agreed the paid dividend in the third quarter would be the same as the second quarter. It must be noted that the company’s annual yield in 2022 was 5.8 per cent. 

GAP, the all-American clothing brand founded by Donald and Doris Fischer in San Francisco in 1969 is a symbol of American informal urban wear worldwide. The Gap Inc. is its formal name and under it are equally famous American high street fashion brands: GAP, Old Navy, Banana Republic and Athleta.

Not so positive quarter

In Q2, Net sales saw a decrease of 8 per cent compared to last year at $3.55 billion while end of March 2023, the first quarter net sales was down by only 1 per cent. This downslide includes the 2 per cent point decrease in GAP’s China sales and a 1 per cent point decrease due to foreign exchange challenges. 

Comparable sales, also referred to as same store sales was down by 6 per cent, a further decline of 3 per cent compared to the first quarter of the year that ended in March. The report states online sales went down by 11 per cent this quarter compared to last year and contributed one-third of total net sales. Store sales decreased 7 per cent compared to last year. The company ended the quarter with 3,456 store locations in over 40 countries, of which 2,592 were company operated. 

In March 2023, The Gap Inc. had confirmed the closure of around 350 US stores by the end of 2023 and to date and it has officially closed 120 Banana Republic and 175 GAP stores across the country. A leading US-based reputed business journal had pointed out in May 2023 a general downturn of purchases from The Gap Inc’s lower end consumers worldwide was a key factor and the company despite management change at the beginning of 2023 has not been able to cater to this customer segment to drive sales. Additionally, all four brands under The Gap Inc., seem to suffer from poor choices in merchandising and procurement. The saving grace so far has been women’s wear for The Gap Inc. brands. 

Indeed, for the last two decades, the American clothing giant has tried hard just one thing as its panacea for everything – change in senior management. Did it work? Not really as all four brands are steadily losing the “all wholesome American” appeal for newer generations and instead of changing its positioning, its product portfolio and aligning with pop culture, yet another CEO, Richard Dickson is ready to play. Brand relevance doesn’t seem a priority. 

Dr. Gohar Ejaz, the Caretaker Federal Minister for Commerce, Industries, and Production, set an ambitious target of $25 billion in textile exports for this fiscal year, a notable increase from the $16 billion goal of the previous year. 

He also pledged to swiftly revive dormant industries within a month. During a meeting with the Pakistan Textile Exporters Association, he assured that closed industries would reopen by September 30. 

Dr. Ejaz expressed optimism in surpassing the $16 billion benchmark, emphasizing systematic solutions to challenges hindering industry operations. He committed to engaging with stakeholders, even visiting their premises if needed, to rejuvenate the industrial landscape. 

He requested a comprehensive list of dormant industries and assured the resolution of pending financial matters from governmental departments like the Federal Board of Revenue and customs. Furthermore, he invited associations and businessmen to collaborate for effective problem-solving, highlighting his commitment to resolving issues related to gas, electricity, energy, and fund disbursement. Dr. Ejaz's dedication aims to foster a thriving business environment.

New applications are being welcomed until October 31st for MMF apparel, MMF fabrics, and technical textiles products. 

The Ministry of Textiles has opted to prolong the application deadline for the PLI scheme dedicated to Textiles, specifically targeting MMF Apparel, MMF Fabrics, and technical textile products, by an additional 2 months, concluding on October 31st, 2023. 

This decision was prompted by appeals from various industry stakeholders. Initially, the Ministry had announced the reopening of the PLI Portal until August 31st, 2023, to accommodate new applications from companies interested in participating in the scheme.

The International Cotton Advisory Committee (ICAC) is hosting its 81st Plenary Meeting in Mumbai, India from December 2-5, 2023. The theme of the meeting is "Cotton Value Chain: Local Innovations for Global Prosperity."

The meeting is expected to draw about 500 senior government officials, researchers, and private-sector professionals from all sectors of the global cotton and textile value chains. Expert speakers will share their insights on the industry's greatest challenges and opportunities, including:

• Technologies to increase production

• Private sector recommendations for traceability policy

• Facilitating R&D investment

• Climate-smart production innovations

• Industry 4.0 for Textiles

The meeting is a unique opportunity for governments and other partners to gain a better understanding of the most pressing issues facing the cotton and textile industry. It is also an opportunity to develop global initiatives to support cotton value chains, address outstanding issues, and agree on global strategies to advance the interests of all stakeholders.

The 2023 AATCC Technical Committee on Research (TCR) Service Award is proudly presented to Jeffrey D. Krauss in recognition of his exceptional role in advancing AATCC's endeavors. 

Krauss, Research Operations Manager at Zeis Textile Extension within North Carolina State University's Wilson College of Textiles, receives this honor for his invaluable support in developing AATCC control fabrics. His expertise and hands-on involvement have significantly elevated the quality and consistency of AATCC products, notably fabrics for UV calibration, chlorine colorfastness, and ozone colorfastness. 

Since joining AATCC in 1999, Krauss has been a dedicated advocate for its methods, products, and activities. His contributions extend beyond his role, as he introduces students, faculty, and clients to the Association's mission. 

Krauss's dedication reflects in his active participation in AATCC conferences, including the upcoming AATCC Textile Discovery Summit from September 12-14, where he will be honored with the award. Established in 2008, the Technical Committee on Research Service Award celebrates individuals who have significantly contributed to AATCC through technical excellence. Jeffrey D. Krauss's continuous commitment exemplifies the award's ideals. 

The recognition includes a plaque and an honorarium, to be presented during the Textile Discovery Summit Awards Luncheon on September 14, 2023, at the Hyatt Regency in Greenville, South Carolina. 

LINEAPELLE to host talks on sustainable fashion.

This is the world's most important trade fair for global fashion, luxury, and design manufacturing.

This is a new event organized by LINEAPELLE in collaboration with SPIN360 to explore sustainable fashion solutions.

Sustainable fashion solutions: This refers to ways to make the fashion industry more sustainable, such as using recycled materials, reducing water consumption, and minimizing waste.

Apparel Group and Steve Madden Celebrate Grand Opening in Riyadh Park

Apparel Group, the renowned retail powerhouse, proudly announces the grand opening of Steve Madden’s 10th store in Saudi Arabia. Located in Riyadh Park, this latest expansion brings the brand’s strong GCC presence to 29 stores.

The store’s inauguration on August 25th was marked with anticipation. The first 100 fashion enthusiasts who visited the store on the launch date were delighted to receive an exclusive Steve Madden gift.

Steve Madden and Apparel Group Celebrate Milestone with Influencer Event

On August 26th, Riyadh Park’s Steve Madden location transformed into an epicenter of style and allure. The pinnacle of the evening was the ceremonial ribbon-cutting, a symbolic gesture that united the brand’s visionary team with the esteemed leadership of Apparel Group and Riyadh Park Management.

Following the official inauguration, an official influencer event was held graced by top-tier influencers and media personalities. The guests enjoyed the latest tunes played by the DJ, setting the perfect backdrop for a night of fashion, fun, and networking.