Under Armour exceeded market projections for first-quarter revenue on Tuesday, propelled by deeper discounts that facilitated the clearance of its excessive inventories in the sportswear realm. Nonetheless, the corporation encountered a drop in demand within its primary market, North America. 

During the quarter, Under Armour observed a 14% upsurge in sales within the Asia-Pacific region, as demand rebounded following the relaxation of pandemic-induced restrictions. 

Conversely, North American sales saw a 9% decline, as consumers curtailed non-essential expenditures in response to elevated prices, rents, and interest rates. In aggregate, Under Armour's quarterly revenue diminished from $1.35 billion to $1.32 billion compared to the prior year. Nevertheless, the company managed to surpass the average analyst estimate of $1.30 billion. 

The outcomes presented a blend of results for Under Armour, a company striving to reclaim its foothold in recent times. Intense competition from contenders such as Nike and Adidas, coupled with reduced demand for its attire in North America, have posed challenges. 

Nevertheless, the company's robust performance in the Asia-Pacific region and its ability to outpace revenue projections hint at a potential turnaround. To sustain this momentum, Under Armour must persist in executing its strategy and channel investments into novel products and marketing initiatives.

In the June quarter, CBRE's analysis indicated that global brands secured 25% of India's retail space, a substantial rise from the previous year's 14%. This surge in leasing resulted from established and emerging international brands, along with expanding domestic retailers. 

Throughout the quarter, retailers rented 1.3 million square feet, with the fashion sector dominating at 38%, followed by food and beverage at 18%. Luxury brands and home stores held 11% each, while consumer electronics composed 7%. 

Domestically, companies led leasing at 75%, while the rest came from Asia-Pacific, Europe, the Middle East, Africa, and the Americas. Anshuman Magazine, CBRE's Chairman & CEO for India, South-East Asia, Middle East & Africa, projected numerous international brands to enter across categories this year, particularly in luxury. 

India's growth rate continues to attract brands from EMEA and APAC, with some American brands consistently showing interest in the thriving market. Property experts forecast around 24 international brands to establish in India this year due to post-Covid consumption surge, contrasting significantly with one in 2020, three in 2021, and eleven in 2022. 

Prior to Covid, 12 to 15 brands usually entered annually. Samant Jerath from Jerath Properties emphasized that evolving Indian consumer preferences drive global brand growth via increased sales and expanded presence, propelled by social media. 

The trajectory for global brand market share remains upward. Renowned international brands like Roberto Cavalli, Dunhill, and Foot Locker, along with Lavazza, Armani Caffe, Jamba, and The Coffee Club, are expected to make their debut in India this year.

The United States Fashion Industry Association (USFIA) represents brands, retailers, importers, and wholesalers based in the US and doing business globally. It recently concluded a survey among 30 US-based fashion brands, most of them being large organisations with over a 1,000 employees. The survey conducted between April and June 2023 highlighted Asia continues to be the dominant source for American garment importers. Seven out of the top utilized sources for 2023 were: China and Vietnam at 97 per cent utilization, Bangladesh 83 per cent utilization and India 76 per cent utilization. Unanimously, Bangladesh emerged as the least expensive apparel sourcing nation.

Gains for being least expensive

Yes, Bangladesh is the least expensive and therefore, much of its sustainability comes from enormous volumes of basic apparel, a Catch-22 situation. Bangladesh garment manufacturers' claim they are constantly receiving lower prices from global buyers and underscore the importance of moving up the value chain. Moreover, India is slowly edging out this cost competitiveness as energy prices in Bangladesh soar and unravel the tight cost-controlled operations Bangladesh is known for, whereas energy prices in India remain stable and comparatively lower.

 Another fallout of being the least expensive has come in the form of criticism Bangladesh faced about its social and labour-related concerns, on which the nation has improved its operating standards in the last two years. Various rights groups in the US and Europe are already saying Bangladesh is involved in ‘cotton laundering’ by importing its cotton from Xinjiang. Such accusations have become detrimental to for the RMG industry. 

However, Bangladesh had to reiterate often the main source of raw cotton is the US and India and a small amount is imported from China. The study scores Bangladesh a good 4.5 in terms of sourcing cost, followed by Indonesia at 4 points. However, in speed to market, Bangladesh is the worst among Asian competitors with a mere 2 points. China leads with a 3.5. Similarly, in environmental compliance Bangladesh appears at the bottom with 2.5 sharing the place with India, Vietnam and China. 

Respondents rated China and Vietnam as the most competitive in sourcing flexibility and agility this year stating the lifting of Covid restrictions in these two countries has significantly reduced supply chain disruptions and facilitated smooth movement of goods. 

Commenting on the USFIA report that Bangladesh is the least expensive sourcing point, Fazlul Hoque, managing director at Plummy Fashions and former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said US buyers are convinced Bangladesh has developed the capacity in the last few years to produce garment products other than basic items and based on this, Bangladesh hopes to see an increase in orders. However, the ground reality is different as the USFIA also mentions that Bangladesh is behind India, Cambodia and CFTA-DR countries when it comes to planned growth of orders. 

Moving away from China to boost Bangladesh

Almost 80 per cent respondents are looking to diversify their order basket with the primary objective of relocating them from China. Bangladesh being among top four Asian sourcing destinations is therefore in a favourable position to gain new business taking away from China’s share. But will Bangladesh continue to be the cheapest to keep it in the running? India is slowly gaining ground in terms of being less expensive, Bangladesh rates poorly in speed to market as well as sourcing flexibility and agility and the US is also beginning to diversify to Central and Latin American countries. In this scenario, may be Bangladesh might have to step up its act beyond being the least expensive, especially when high energy costs and inflated raw material imports are proving costly as overheads. 

In a notable stride towards responsible business operations, the Global Organic Textile Standard (GOTS) has embarked on the Organisation for Economic Co-operation and Development (OECD) Alignment Assessment process for its upcoming version 7.0. This significant move underscores GOTS' commitment to harmonizing with the internationally recognized framework for conscientious garment and footwear supply chain due diligence.

The OECD Alignment Assessment, a rigorous three-stage evaluation comprising Standards, Implementation, and Credibility Assessments, marks GOTS' resolute dedication to sustainable principles, mirroring the OECD Due Diligence Guidance. Launched in July 2023 and anticipated to conclude by January 2024, this process is bolstered by support from the German Federal Ministry for Economic Cooperation and Development.

Central to this effort are the GOTS Due Diligence Criteria, providing a robust roadmap for enterprises to proactively address potential risks to human rights and the environment. In a bold stride towards responsible business conduct, these criteria catalyze tangible change. RuslanAlyamkin, overseeing Standard Development and Implementation (Social Responsibility) at GOTS, underscores their transformative impact: "The Due Diligence Criteria are not just guidelines, they are a powerful tool for real change. They empower companies to make informed and ethical decisions, helping to shape a textile industry that respects human rights and cares for our planet."

GOTS' proactive stance is particularly pertinent as global legislation places mounting emphasis on human rights in commercial operations. With burgeoning statutes like Germany's Supply Chain Act, France's Vigilance Act, and the UK Modern Slavery Act, stringent due diligence in assessing business impacts on human rights and the environment is paramount. Additionally, the European Commission's proposition for a Directive on corporate sustainability due diligence (CSDDD) accentuates the impending shift towards mandatory human rights and environmental due diligence.

Having steadfastly championed sustainable supply chains for over two decades, GOTS' version 7.0 offers textile companies a comprehensive six-step due diligence process, enabling them to identify, appraise, and mitigate adverse impacts throughout their supply networks. This propels GOTS as a pivotal tool in evidencing compliance with due diligence obligations set forth in the draft EU CSDDD and national legislations alike.

By aligning with OECD standards and adapting to evolving regulatory mandates, GOTS perpetuates its role as the epitome of responsible and sustainable practices within the textile domain.

San Francisco, May 20, 1873 is one of fashion’s iconic dates that are going to be etched in history forever. On this day, the US saw the birth of blue jeans. Levi Strauss and Jacob Davis obtained a US patent on the process of putting rivets in men's work trousers for the very first time. At that time, the proud inventors of the blue jeans would not have known how this humble bottom wear for manual labourers would not only take the world by storm but also become an enduring and loved clothing item forever. They knew even less that the humble pair of jeans consumes 3,800 litres of water as it journeys from the cotton fields to factories and then on the wardrobe. With the fashion industry being accused of being one of the key players in depleting the earth’s resources and contaminating its surfaces, brands are trying their best to work out innovative solutions. In the case of Levi Strauss & Co, it was their Water Action Strategy. 

Water Action Strategy 2025

Levi Strauss & Co. is aiming to do its part to save as much water as it can, particularly where it matters most, which is through its production processes. In 2019, the brand had announced a new Water Action Strategy where it committed to reduce the amount of water used in manufacturing in highly stressed areas by 50 per cent by 2025, those areas being home to half the world’s population. 

The pledge made through the Water Action Strategy is that the manufacturing units of Levi Strauss & Co in such water-stressed areas will only use as much water as can be naturally replenished. As a  spokesperson of Levi Strauss *& Co mentions, “To this end, we will help all of our key suppliers (representing 80 percent of total product volume) become distinguished Water<Less® facilities by 2025.” In the same communiqué, Liz O’Neill, Executive Vice President and President of LS&Co.’s Global Product, Innovation and Supply Chain said, “The Water Action Strategy announcement is an illustration of what sustainability means to us now: innovative, responsive, scalable programs that drive impact and inspire collective action to address the most pressing social and environmental issues facing our business, industry, and planet.”

Implementing Water Action Strategy

The first changes were innovation in design and manufacturing pipeline, having saved 3 billion liters of water since those changes were undertaken in 2019. Levi’s is using the best available water-stress data to develop manufacturing facility-level targets that addresses local water stress. If a factory or fabric mill meets its target by adherence to sustainable consumption levels appropriate for its local region – then that facility and its products receive the Water<Less® distinction. Through this targeted, contextual approach the brand believes it will make significant progress towards alleviating local water stress where it operates Furthermore, Levi Strauss is helping its key suppliers achieve the Water<Less® designation by 2025, utilizing tools and programs like its existing Water<Less® techniques, its collaboration with the Apparel Impact Institute’s Clean by Design program, and its partnership with the International Finance Corporation’s Partnership for Cleaner Textiles (PaCT).

Blue Jeans Go Green: The denim recycle programme

The Blue Jeans Go Green™ program collects cotton-made denim so that it can be recycled back to its original fiber state and transformed into something new - because cotton is a natural, sustainable fiber, and old and discarded denim can be kept out of a landfill and given a new life. A part of the garment industry’s move towards circularity, Blue Jeans Go Green has made an impact in the US. Since its inception, more than 4.5 million pieces of denim have been collected, over 2,290 tons of textile waste has been diverted from landfills, and more than 9 million square feet of insulation has been manufactured.

Amidst the economic challenges confronting Sri Lanka and the introduction of stringent EU sustainability laws, a transformative shift is underway in the country's apparel sector. With a growing recognition of the need for enhanced compliance processes, companies are turning to certification programs, such as the Worldwide Responsible Accreditation Production (WRAP), to streamline their operations and champion sustainable practices.

Sri Lanka's apparel industry has emerged as a trailblazer in embracing responsible manufacturing. Under the WRAP umbrella, an impressive 27 companies and 112 factory sites have obtained the coveted Worldwide Responsible Accreditation Production Certification. A recent interview with AvedisSeferian, President and CEO of WRAP, commended Sri Lanka's apparel industry for its resilience in the face of economic turmoil and the ongoing pandemic. He highlighted the unwavering commitment displayed by certified companies to uphold social compliance and sustainability standards.

Seferian emphasized the strategic importance of independent certification in the current landscape. As economic uncertainties persist, streamlined due diligence processes are essential. WRAP's comprehensive audit reports and resolutions of non-compliances provide a powerful testament to responsible sourcing practices, making it a compelling alternative to duplicative audits. The proliferation of legislative requirements further underscores the significance of independent programs like WRAP.

The interview shed light on Sri Lanka's substantial progress in embracing Environmental, Social, and Governance (ESG) criteria. Seferian praised the industry's consistent commitment to social compliance and sustainability, driven by a long-term investment perspective. This approach has led to positive outcomes, as Sri Lankan factories often exceed minimum compliance standards, incorporating worker-benefit initiatives and women empowerment programs.

Yet, challenges persist in the global apparel sector. Seferian identified short-term thinking as a prevailing hindrance to sustainable practices. The pursuit of immediate gains often overshadows long-term investments in social responsibility and sustainability. Overcoming this mindset, particularly in fast fashion, remains a universal challenge.

For future compliance, Seferian highlighted key trends, including the imperative to address forced labor concerns, ensure supply chain traceability, and proactively embrace sustainability. He underscored the role of transparent, independent validation processes and holistic supply chain mapping in creating a responsible industry.

As Sri Lanka anticipates labor law reforms, WRAP's adaptive approach ensures alignment with evolving regulations. Seferian emphasized WRAP's commitment to combating audit fatigue by collaborating with both manufacturers and buyers. The program's emphasis on independent, efficient, and credible audits aims to drive more sustainable practices.

In essence, Sri Lanka's apparel industry is at the forefront of an industry-wide shift towards streamlined compliance and sustainable manufacturing. Through independent certification programs like WRAP, the sector is not only weathering challenges but also paving the way for a more responsible and resilient future.

In 1997, Studio Ghibli's "Princess Mononoke" entranced Japanese audiences, becoming a box office record-breaker. Hayao Miyazaki's masterpiece, renowned for its animation and environmental themes, now teams up with Levi's. The Levi’s x Princess Mononoke collection merges iconic style and enchanting aesthetics, celebrating both brands' attention to detail and artistry.

The film delves into human-nature duality, using hand-painted backgrounds to depict lush landscapes. The collection, featuring denim like the San & Wolf Trucker Jacket and Ashitaka 501 '93 Jeans, seamlessly blends film scenery with denim. Graphic tees and hoodies echo characters' ideologies, mirroring the movie's contrasting moments.

Accessories include a bandana with San's red battle mask, an Ancient Forest Bucket Hat, and San &Ashitaka Tote. Coin bags feature San’s mask and a Kodama face, adding to the enchantment. The Levi’s x Princess Mononoke collection launches on August 10, 2023, available online and in select stores.

Sizekick, a Munich-based startup, has introduced an innovative AI technology aimed at tackling size-related returns in the e-commerce sector. Backed by strategic partner and investor Hohenstein, renowned brands like Black Diamond, Marc Cain, and Rrrevolve have already embraced the tool. By harnessing Hohenstein's apparel expertise and Sizekick's AI capabilities, retailers can provide a more eco-friendly and tailored shopping experience, reducing CO2 emissions.

The system offers personalized sizing recommendations based on individual body measurements through two AI-driven options. BodyFinder presents realistic body shapes for selection, while BodyScanner employs smartphone video scans for precise measurements. Integrating the technology into e-commerce platforms is seamless and swift, granting brands immediate access.

Sizekick's collaboration with Hohenstein, a size and fit authority with 75 years of industry experience, has resulted in a highly accurate and user-friendly solution. Size-related returns and environmental concerns in e-commerce may find mitigation through this pioneering endeavor.

Archroma, a global leader in sustainable specialty chemicals, gained recognition from the Swiss Embassy in Pakistan for its pioneering sustainable initiatives. During an official state visit by Switzerland's Foreign Minister, Ignazio Cassis, to Pakistan on July 9, 2023, Archroma'sCenter of Excellence in Karachi was showcased as a hub of innovation. Mr. Cassis, accompanied by high-ranking officials and Swiss Parliament members, was welcomed by Archroma employees.

The visit encompassed the inauguration of Archroma's "Wall of Pride," a testament to the company's achievements since its inception in 2013. Cassis explored the multi-floor Research & Technology facilities, Analytical Laboratories, and Training Academy. He witnessed ongoing fabric printing and research analyses, underlining Archroma's commitment to advancement.

Central to the tour were Archroma's groundbreaking sustainable practices: the globally acclaimed 'Zero Liquid Discharge Sustainable Effluent Treatment Plant' and aniline-free* indigo production in Jamshoro. These exemplars of sustainable innovation were extensively discussed, emphasizing their potential for industry-wide impact.

Foreign Minister Ignazio Cassis praised Archroma's initiatives, hailing the water-saving and pollution-combatting efforts. CEO of Archroma Pakistan, Mujtaba Rahim, underscored the company's role as a vanguard for sustainable practices, influencing both the industry and local community positively.

India and the United Kingdom are making gradual progress towards formalizing a free trade agreement (FTA), having wrapped up negotiations on the majority of chapters. While both sides have reached a consensus to exclude matters related to data and concessions in the dairy sector from the agreement, deliberations are ongoing regarding potential tariff reductions on automobiles and specific confectionery items. 

Recent visits by Indian officials to London have injected momentum into the negotiations, as they engaged in discussions with senior British counterparts. Presently, the focus lies on resolving a handful of remaining disparities, notably pertaining to investment treaties, intellectual property rights (IPRs), and rules of origin. 

In the context of FTAs, rules of origin carry significant importance, as they determine the eligibility of products for preferential tariff treatment. Within the framework of the proposed India-UK FTA, adherence to specific criteria concerning the processing and value augmentation of goods would establish their "origin" within the respective partner country. 

This safeguard would hinder attempts by nations to merely reclassify goods produced in third countries as originating from India or the UK, with the intent of exploiting the tariff benefits afforded by the FTA. The bilateral trade between India and the UK has displayed consistent growth in recent years, culminating in a figure of $20.36 billion during 2022-23. 

India's exports to the UK encompass a diverse array of goods, including ready-made garments, textiles, gems and jewelry, engineering products, petroleum derivatives, transportation machinery, spices, instruments, pharmaceuticals, and marine merchandise. 

Notably, the UK's foreign direct investment in India surged from $1 billion in 2021-22 to $1.74 billion in 2022-23. Should the envisaged India-UK FTA come to fruition, it holds the potential to significantly amplify trade and investment activities between the two nations. A successful conclusion would mark the UK's first major FTA with an emerging market since the Brexit transition.