Changes in global trade between nations have been the most drastic in post-Covid years and the World Trade Organization (WTO) is working hard to ensure that smooth trade flows return at the earliest, especially in the apparel segment. A recent study by The World Trade Statistical Review 2023 and data from the United Nations (UNComtrade) have showcased some interesting trends in international trade, especially in textiles and clothing space that were affected by rising geopolitical tensions and changed trade policies with China.

Four key trends emerge in changed global trade relations

As per Sheng Lu, Associate Professor, Department of Fashion & Apparel Studies, University of Delaware four strong patterns have emerged which are quite different from the past couple of years. Firstly, after the unprecedented frantic buying trend with a stupendous 20 per cent growth in 2021 - right after the global lockdown clothing exports recorded a decrease in 2022. This could be attributed to the economic slowdown and high inflation in leading apparel import markets of the US and Western Europe. Also, reducing demand for raw materials needed to manufacture the personal protective equipment (PPE), led to global textile exports falling 4.2 per cent in 2022, touching $339 billion. This was far lower than other sectors.

The second pattern as per Sheng Lu is, although China remained the world’s largest apparel exporter in 2022, it continued to lose market share, with other low-cost Asian apparel exporters taking over. Countries like Bangladesh surpassed Vietnam and emerged the world’s second-largest apparel exporter. China’s global market share in clothing exports came down to 31.7 per cent in 2022, which was its lowest point ever in its recent history, having lost market share in the US, the EU, Canada, and Japan. Heightened apprehensions about forced labor and the deteriorating US-China relations became important factors in China being nudged out of smooth and ethical global apparel trading markets.

The third pattern that emerged is, the EU countries and the US remained at the helm steering the apparel markets, while accounting for 25.1 per cent of the world’s textile exports in 2022, up from 24.5 per cent in 2021 and 23.2 per cent in 2020. Textile exports in the US increased 5 per cent last year, which was the highest among the world’s top 10 countries. However, the middle-income developing countries are steadily increasing their share with China, Vietnam, Turkey, and India’s market shares in world’s textile exports together making up 56.8 per cent of global clothing exports last year.

With increased focus on near-shoring, particularly in the Western countries, the regional textile and apparel trade models have become far more integrated in 2022, in the fourth emerging pattern. Almost 20.8 per cent of these countries’ textile imports came from within their region last year, which increased from 20.1 per cent in previous year.

China’s diminishing strength  

Not just the western countries, The World Trade Statistical Review 2023 has proven that even Asian countries are now diversifying their textile imports away from China to mitigate supply chain risks and all this is leading to a changed expansion for the better, states Sheng Lu. The after-effects of the pandemic has been felt by the fashion industry much more than the others as the unpredictable customer demand in various countries has affected business and the international textile and apparel industry globally. 

The WTO and other global organizations are now putting renewed commitment to multilateralism, better transparency and global opportunities for collaboration and reform as other smaller countries join the bandwagon to compete with the biggest but not necessarily the best in in the trade segment.

A new research report by Advance Market Analytics titled "Insights into the Western Wear Market up to 2028" provides a comprehensive overview of the global western wear market. The report covers the market size, growth drivers, restraints, and opportunities, as well as profiles of key players.

The report estimates that the global western wear market will reach USD 82.8 billion by 2028, growing at a CAGR of 4.6% from 2021 to 2027. The growth of the market is being driven by the increasing popularity of western wear clothing, driven by the rise of e-retailing. 

The report notes that online platforms have emerged as preferred channels for purchasing western wear due to their appealing offers and extensive apparel selections. Additionally, swift delivery services and flexible return policies offered by online retailers are bolstering sales through this channel.

The report also identifies several opportunities in the market, including the growing popularity of casual wear among consumers, the expansion of the corporate sector in developing economies, and the significant potential in untapped markets driven by social media trends.

US authorities have recalled over 100,000 pairs of baby jeans produced in Kenya due to safety concerns. The jeans, which were sold at The Children's Place stores in the US, have metal snaps that could detach and pose a choking hazard to young children.

The recalled jeans were sold in sizes 0 to 24 months and were priced at around $25. They were manufactured in garment companies located in the Export Processing Zones (EPZ) in Nairobi and Machakos counties, and were exported to the US under the provisions of the African Growth and Opportunity Act (AGOA).

Retail outlets have been directed to contact purchasers of the affected items and facilitate the return process. No injuries have been reported to date.

This is not the first time that children's apparel has been recalled due to safety concerns. In June, the CPSC recalled flammable kids' pajamas, and in February, Amazon's robes were also identified as posing burn injury risks to children.

Parents should always inspect children's clothing carefully before putting it on their children, and should immediately remove any clothing that has loose or missing parts.

The rapid increase in cotton prices this year has led to a widening of the price gap between cotton and PSF (Polyester Staple Fiber) and VSF (Viscose Staple Fiber). This trend was particularly noticeable in April and July, when the price differences experienced significant expansion. 

However, cotton prices have been undergoing adjustments in August, causing the price gap with other fibers to stabilize somewhat. Despite this stabilization, the price difference remains above the average value, serving as a catalyst for shifts in the fiber market.

The chart in the image shows the relatively consistent price difference between VSF and PSF, which has recently shown a minor narrowing. Similarly, the price difference between cotton and other fibers remains relatively stable. Although there has been a slight recent narrowing in this price difference, it still remains higher than the average level.

The second image shows a clear shift away from cotton to other fibers during the latter half of 2021 and the first half of 2022. This trend persisted for about a year. From late May 2023, the price difference between cotton and other fibers has been gradually widening, surpassing the five-year average and persisting for three months. In terms of the short-term trajectory of cotton, PSF, and VSF, this price difference is likely to continue for a certain duration. Whether it will further increase depends closely on cotton prices.

From the standpoint of downstream profits, various types of yarn such as cotton yarn, polyester yarn, rayon yarn, and major blended yarns are all experiencing unfavorable profitability. 

Among these, cotton yarn is facing the most significant losses, followed by polyester/cotton yarn. Yarns with a substantial cotton component are all encountering adverse profitability, discouraging manufacturers from shifting their production. However, the inclination towards substitution is observed when considering downstream pressures and the need for cost reduction.

The rapid increase in cotton prices this year has led to a widening of the price gap between cotton and PSF (Polyester Staple Fiber) and VSF (Viscose Staple Fiber). This trend was particularly noticeable in April and July, when the price differences experienced significant expansion. 

However, cotton prices have been undergoing adjustments in August, causing the price gap with other fibers to stabilize somewhat. Despite this stabilization, the price difference remains above the average value, serving as a catalyst for shifts in the fiber market.

The chart in the image shows the relatively consistent price difference between VSF and PSF, which has recently shown a minor narrowing. Similarly, the price difference between cotton and other fibers remains relatively stable. Although there has been a slight recent narrowing in this price difference, it still remains higher than the average level.

The second image shows a clear shift away from cotton to other fibers during the latter half of 2021 and the first half of 2022. This trend persisted for about a year. From late May 2023, the price difference between cotton and other fibers has been gradually widening, surpassing the five-year average and persisting for three months. In terms of the short-term trajectory of cotton, PSF, and VSF, this price difference is likely to continue for a certain duration. Whether it will further increase depends closely on cotton prices.

From the standpoint of downstream profits, various types of yarn such as cotton yarn, polyester yarn, rayon yarn, and major blended yarns are all experiencing unfavorable profitability. 

Among these, cotton yarn is facing the most significant losses, followed by polyester/cotton yarn. Yarns with a substantial cotton component are all encountering adverse profitability, discouraging manufacturers from shifting their production. However, the inclination towards substitution is observed when considering downstream pressures and the need for cost reduction.

Bangladesh's apparel exports to the European Union (EU) declined by 12.69% in the first half of 2023, totaling 9.06 billion euros compared to 10.37 billion euros in the same period of 2022. This decline can be attributed to a reduction in clothing demand within the EU's 27-nation economic bloc due to high inflation.

Exporters noted that although inflation was beginning to subside, the import of apparel by the EU continued to exhibit a significant downward trend. 

Eurostat, the statistical office of the EU, provided data indicating that knitwear imports from Bangladesh for January to June 2023 decreased to 5.38 billion euros from the 6.40 billion euros recorded during the same period in 2022. Similarly, Bangladesh's woven garment exports to the EU for the first half of 2023 decreased to 3.68 billion euros from the previous year's 3.96 billion euros.

Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), commented that although inflation was easing in key export markets and economic indicators were stabilizing, apparel imports by the EU and the United States continued to decline significantly. 

He noted the challenge of forecasting the market and suggested a cautiously optimistic outlook for the remainder of 2023. He anticipated a potential dip in apparel and overall global trade compared to the previous year.

Overall, the decline in Bangladesh's apparel exports to the EU is a sign of the challenging economic conditions facing the global apparel trade. The headwinds of high inflation and a slowdown in economic growth are likely to continue to weigh on demand for apparel in the coming months.

The eagerly anticipated annual Asian Textile Conference (ATEXCON), organized by the Confederation of Indian Textile Industry (CITI), returns for its 11th edition from August 31st to September 1st, 2023, in Coimbatore, Tamil Nadu. With the theme "2025 & Beyond: Asia’s Global Hub for Textile Manufacturing & Consumers," this event is set to gather over 400 participants from the global textile and apparel value chain.

Shaping the Textile Landscape

ATEXCON serves as a convergence point for Asian textile industry leaders, global input suppliers, and service providers to deliberate on crucial business facets. The conference will spotlight regional and global concerns within the sector while also emphasizing opportunities through cross-border collaboration. The event is renowned for spotlighting technological advancements and sharing best practices within the textile value chain.

Asia's Textile Ascendancy

Asia has risen as the epicenter of textile and apparel production, boasting substantial statistics: in 2021, Asia and Oceania commanded 89% of ring spinning capacity, 82% of shuttle-less weaving, and 85% of circular knitting capacity globally. Furthermore, half of the world's cotton and 80% of man-made fibers hail from Asia. This region holds a pivotal position in non-woven production, commanding more than half of the world market share.

Trends Shaping the Future

Asia's stature extends to global trade, with textiles and clothing ranking among the top five manufactured goods traded worldwide. The continent hosts 60% of the world's population, contributing to its substantial GDP share and per capita textile consumption. This demographic force spurs demand for consumer and technical textiles. Amid this growth, Asian textile and apparel manufacturers are embracing sustainability, technology, and circular production systems.

ATEXCON: Forging a Sustainable Path

The 11th ATEXCON, endorsed by the Southern India Mills Association (SIMA) and aided by the Government of Tamil Nadu, serves as a collaborative platform. Renowned figures like Piyush Goyal, Union Minister of Textiles, Commerce, and Industry, will share insights, while eminent speakers explore resilient supply chains, regional partnerships, sustainable textiles, and financial risk management. With vital industry players and associations in participation, ATEXCON is poised to guide Asia's textile industry toward a sustainable future beyond 2025. It garners support from leading trade associations such as ITMF, Joint Apparel Association Forum, AEPC, TEXPROCIL, SRTEPC, CMAI, HEPC, and TEA, and secures sponsorship from notable entities like The Sakthi Group of Companies, Lakshmi Machine Works (LMW), Birla Cellulose, Waaree, and India ITME Society.

Coats Digital's groundbreaking time-cost benchmarking tool, GSDCost, has achieved finalist status in the esteemed 2023 SaaS Awards. Competing in four categories—Best SaaS for Improved Productivity, Business Intelligence, Data-Driven Solutions, and Product Analytics—this recognition underscores GSDCost's unique contribution.

Global Innovation Recognized

Celebrating its 8th year, The SaaS Awards continues to honorSaaS advancements worldwide. With submissions spanning the globe, including North America, Europe, and Australasia, the competition highlights the industry's best.

Diverse Category Showcase

The 2023 program showcases a range of categories, spotlighting exceptional SaaS solutions. From "Bespoke SaaS Solution" to "Most Agile SaaS Solution," the awards highlight innovation across verticals.

KunalKapur's Perspective

KunalKapur, Managing Director of Coats Digital, expresses excitement about the four-category finalist position. GSDCost empowers brands and manufacturers through cloud-enabled collaboration, transparency, and sustainable supply chains. Recent module launches, like the Fair Wage benchmark tool, highlight Coats Digital's commitment to innovation and social responsibility.

The SaaS Awards' Perspective

James Williams, Head of Operations at The SaaS Awards, acknowledges the fierce competition and innovation in this year's finalists. The selection process is bound to be challenging, given the exceptional quality displayed.

Winners Awaited

The winners of The SaaS Awards will be announced on September 13, 2023, marking the culmination of this year's program.

Looking Forward

With the 2023 program attracting global submissions, The SaaS Awards promises a return in 2024 to recognize international SaaS excellence once again. Additionally, the Cloud Security Awards will return, seeking the latest in cloud security innovations.

The United Kingdom and the Association of Southeast Asian Nations (ASEAN) are jointly crafting the new ASEAN-UK Economic Integration Programme. The UK government's allocation of £25 million over five years to back ASEAN's economic integration was revealed during the recent Third ASEAN Economic Ministers (AEM)-UK Meeting in London.

Advancement of joint ministerial declaration

The gathering commended the advancement of the work plan for executing the joint ministerial declaration for future economic cooperation. Since its adoption the previous year, 26 activities across 11 priority sectors involving 26 ASEAN sectoral bodies have been initiated, with an additional 60 activities slated for the coming years.

Robust trade growth

In nominal terms, UK-ASEAN trade flows escalated by over 20% from 2021 to 2022, illustrating a post-pandemic rebound. Overall UK trade with ASEAN surged by 21.4%, climbing from £38.3 billion in 2021 to £46.5 billion in 2022.

UK's investment standing

In 2022, the United Kingdom held the seventh position among foreign investors in ASEAN. The outward foreign direct investment (FDI) from the UK to ASEAN in 2021 was at least £25.1 billion, as stated in a joint post-meeting release.

Addressing global challenges

The discussion delved into regional and global predicaments, including the pandemic's multi-dimensional impact, climate change, financial market volatility, inflation, and geopolitical tensions. These factors could potentially influence economic and trade ties between the UK and ASEAN.

Commitment to multilateral trade system

The assembly reiterated its dedication to a rule-based, equitable, and open multilateral trading system anchored by the World Trade Organisation (WTO). Strengthening the WTO's efficacy and pursuing reforms for a fully operational dispute settlement mechanism were underscored as priorities.

VF Corporation (NYSE: VFC) has named Brent Hyder as Chief People Officer, effective September 5. Reporting to President and CEO Bracken Darrell, Hyder will join VF's executive leadership team.

Proven track record at salesforce

Formerly Chief People Officer at Salesforce, Hyder led the company to prominent positions on workplace rankings, including Great Place to Work, Fortune, People, Glassdoor, and LinkedIn.

Rich retail experience

With nearly 30 years in retail, Hyder's background includes 15 years at Gap Inc., where he served as Chief Human Resources Officer, overseeing global human resources, communications, security, Gap Inc. Foundation, and sustainability. He also held key roles at Target Corporation, Best Buy, and Gap Inc.'s various brands.

Driving employee success

In his new role, Hyder will oversee global human resources, focusing on talent acquisition, retention, and employee programs, supporting VF's 30,000 employees' growth and success.

Enthusiasm for VF's vision

Hyder expressed excitement about contributing to VF's consumer-focused growth strategy, acknowledging the company's brand strength, environmental stewardship, and commitment to diversity and inclusion.

Education and Philanthropy

A Brigham Young University graduate in Retail Management, Hyder is a director at Enterprise for Youth, aiding under-resourced youth through transformative paid internships.