For the third quarter Gokaldas Exports’ consolidated net profit was up by 34 per cent.

Consolidated revenues during the quarter were up by 0.8 per cent compared to the corresponding quarter of the previous year.For the nine months of the current fiscal profit after tax was up 123 per cent higher than the same period of the last fiscal.The company will continue to focus on optimal resource utilisation and drive operational excellence in the coming quarters.

Gokaldas Exports is an apparel manufacturer and exporter. The company exports garments to more than 50 countries. The company has improved its bottom line from incurring a loss to a profit and has grown substantially over the last five or six years. The emphasis on operational improvements and the increased focus on value-added pricing have helped Gokaldas gain better realisation from customers.

With all these factors, it has been able to deliver better bottom lines. Gokaldas Exports is building three new manufacturing facilities. These will be in Madhya Pradesh, Tamil Nadu, and Bangladesh. The new facilities will add an extra five million pieces annually to the company’s existing yearly production capacity of 30 million pieces.

Currently, Gokaldas Exports operates 19 manufacturing units.

The global denim fabric market is growing at 4.4 per cent a year. So says Allied Market Research. The obtainability of denim fabric at reasonable prices and new socio-economic trends are driving the growth of the global denim fabric market.

The rise of biodegradable denim fabric has opened new prospects. But price instability of cotton and ecological risks related with the use of synthetic dyes confine the market to some level. The Covid outbreak impacted the overall supply chain, thereby upsetting the overall growth of the global denim fabric market. The rise in the prices of raw materials, especially cotton and cotton yarn, cut the production of denim fabric, especially during the early phase. Moreover, the dropping income of customers has given way to a reduction in the demand for premium denim products.

The Asia Pacific region got the highest revenue share in 2020, getting nearly four-fifths of the entire market share, and is projected to continue its central lead by 2030.

From January to September 2021 Bangladesh’s denim exports to the US registered a whopping 31.40 per cent yearly increase. As the world slowly goes back to normal, fashion item consumption is once again showing signs of growth.

Upnext India was held in Gurugram, February 10 to 11, 2023.

The aim was to foster trade ties with Japan. This Japan-focused edition of the reverse buyer seller meet hostedapparel and fashion accessories exporters, providing them a platform to engage with Japanese brands and buyers. More than 80 prominent Japanese buyers including trading companies and retail chains/ stores were in India to source their requirements from the 112-odd Indian exhibitors who displayed a diverse range of readymade garments reflecting Japanese taste.

Japan is the fourth largest readymade garment importer in the world. India has duty-free access to the Japanese market and so is anxious to tap this huge trade potential in the readymade garment sector. Japan presents strong business opportunities for India since China, which has been a dominant garment supplier to Japan, has witnessed a decline in the past five years.

Japan has two competitive advantages as an apparel sourcing base: sourcing cost and flexibility and agility. Indian suppliers can cater to both small size customised orders of 300 pieces to large orders as huge as three lakh pieces of one style. Apparel imports into Japan have witnessed a positive uptick in the last three years despite Covid, which allows India’s apparel industry a huge opportunity.

India’s apparel exports to Japan are expected to grow by 20 per cent to 25 per cent year on year.

Indian readymade garments have duty-free access to Japan following the Indo-Japan Comprehensive Economic Partnership Agreement (CEPA).

As of now India’s share in Japan’s readymade garment imports is just 0.9 per cent. China, Vietnam, Bangladesh, Cambodia, Indonesia, Italy, Myanmar and Thailand are ahead of India in terms of garment exports to Japan. India has only a 1.63 per cent share of Japan’s home textile imports. India’s exports of textile products like yarn, fabrics and fiber to Japan are also negligible. So to begin with India is considering sending vessels directly to Japan so that logistics time and costs are reduced.

India and Japan signed the Comprehensive Economic Partnership Agreement (CEPA) in 2011.Indian textiles have not really penetrated the Japanese market. One opinion is that Indian exporters are unable to meet quality standards of Japanese buyers, which is the core issue. At India Trend Fair, held in Japan, July 20 to 22, 2022, around 150 Indian businesses showcased their latest collections to Japanese buyers, wholesalers, importers, and retailers. Businesses presented products specially designed to suit Japanese customer demand and local market trends.

As many as 84 prominent Japanese buyers, including trading companies and retail chains/stores, are in India to source their requirements from the 112-odd Indian exhibitors who have displayed garments at Upnext India 2023.

Adidas expects a high single-digit decline in sales in 2023. The sporting goods maker’s revenue grew by one per cent in currency-neutral terms in 2022.

Writing off the inventory altogether would lead to an additional 500 million euro drop in operating profit along with one-off costs in 2023 of up to 200 million euros as part of a review to return to profitable growth in 2024.

In 2022, Adidas revenues increased one per cent in currency-neutral terms.In reported terms, sales were up six per cent. The company’s gross margin reached a level of 47.3 per cent. In 2021 it was 50.7 per cent. In 2022 operating margin was three per cent. The company expects 2023 to be a year of transition to set the base to again be a growing and profitable company. Full focus will be put on the consumer, retail partners and employees.

The company’s underlying operating profit is projected to be around the break-even level.While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock. This would lower revenues and operating profit for this year.

In 2022 most international brands realised that consumers in Asia are much more resilient than their Western counterparts. As the West was the worst hit by the two-year long lockdown followed by the Russia-Ukraine war, which seems a night without end for Europe, most Western economies are reeling from never-seen-before hike in energy costs, inflation and the possibility of recession.

Hence, European and American consumers have tightened their expenses and become cautious about personal spends. In this scenario, Levi’s, the iconic American denim brand has followed the economic growth patterns that predict low single digit in Europe and the US and high single digit or low double-digits in Asia and unfurled its denim sails, hoping to breeze through Asia. Their eastern expansion will see more investment in the region including India.

In fact, the company predicts a more restrained performance in Asia in the first half of 2023 and a pick up after that. Levi Strauss’ expansion strategy in 2023 is focused on Asia and the South Americas, mainly Brazil. As for China which makes up 3 per cent of its global revenue, the company is waiting to see its recovery post lockdown.

Buoyancy after a successful 2022

The company currently operates over 500 stores in over 100 countries, with Levi’s, Dockers, Denizens and Beyond Yoga. Levi Strauss reported $6.2 billion net revenues in 2022 and hopes to reach the $10 billion mark by 2027. As per a Euromonitor Report the fourth quarter was an exceptional one in terms of revenue and profit. The company grew at 12 per cent and this stellar performance has been on for five out of the last six years with the height of Covid-19 being the one year of exception.

In the three months ending November 22, Asia including India grew at 17 per cent and South American growth was in slightly lower double digits. To leverage the growth of the Direct-To-Consumer model, the organisation is putting in newer and more innovative methods. Whether it is skinny or loose-baggie fits, low, mid or high rise, Levi’s is on trend always. It has regained its position as the leading denim lifestyle brand once again after having lost out to niche players 10 years ago and today it enjoys leadership position amongst America’s 18-35 year olds. In fact, it holds similar positions in many other parts of the world with the exception of Western Europe. Levi’s prides its American heritage and calls itself as a brand that’s in the centre of the world of pop-culture. And that’s why Levi’s has decided to be associated with the music industry and partners coolest music brands that rub off their trendiness to the denim brand. Moreover, it has revamped the e-commerce experience in a bid to capture Gen Z and young millennial wallets.

The Indian show

In India, 2022 the brand raked in profits of Rs 50 crores, up 41 per cent. However, India remains a franchise model although Levi’s has opened a few doors in few metros. The recently-opened global capability centre in Bengaluru is a talent pool of over 200 people largely made up of engineers who are responsible to provide expertise and enable growth through technology, particularly AI, ensuring the direct-to-consumer business keeps refining and growing. Whilst e-commerce is low at 8 per cent of the global business, Levi Strauss aims to make it grow to 25 per cent by 2027. For this to be achieved, the organisation has invested heavily in hiring talent from India for its US headquarters for general management, finance, merchandising, marketing and operations.

Uniqlo is opening a highway store in India. This will be in Punjab.

The highway store format – which is a standalone store located alongside a highway – is new for Uniqlo in India and further accelerates the company’s expansion in the country.

The store, spread across one floor and having a total sales floor area of 10,965 sqft, is the largest Uniqlo sales area on a single floor in India. It will open in April 2023.

This roadside-type store is popular in Japan. The highway format has played a crucial role in Uniqlo’s growth throughout Japan, and the model has also been very successful outside Japan, including in Korea, Taiwan and Southeast Asia. The highway store format is aimed at bringing convenience to the community and serving as a perfect one-stop destination and is carefully designed to ensure enough space and accessibility for all.

Further, this launch also supports Uniqlo’s underlying commitment to the Indian market and to make highly functional, quality apparel accessible to more customers. With this highway store Uniqlo, a Japanese retailer, will have ten stores in India.

Uniqlo has more than 12,000 products online and services 17,000 pincodes in India. Just about everything that is launched in Japan finds its way to the Indian market.

After a period of strained diplomatic and trade relations between Turkiye and Saudi Arabia, bilateral trade, including garment exports, has rebounded sharply, according to recent reports.

Following the 2018 assassination of Saudi journalist Jamal Khashoggi, garment exports from Turkiye to Saudi Arabia declined to $172.870 million in 2020, compared to $268.612 million in 2019. The COVID-19 pandemic further impacted the trade, resulting in a decrease to less than 10 per cent in 2021, with a shipment value of only $14.415 million.

However, recent efforts by both nations to normalize their relations have had a positive impact on trade. Leaders' visits have also played an important role in the normalization of relations. Turkiye's garment exports to Saudi Arabia have surged by 342 per cent, reaching $62.730 million in 2022. This recovery in trade has continued into the first two months of the current year, according to the same source.

Garment exports remained negligible until mid-2022, with a shipment value of only $5.038 million in Q2 2022. However, it increased significantly to $23.231 million in Q3 and $30.231 million in Q4 of 2022.

This is positive news for both countries as it indicates a return to healthy bilateral trade relations.

The Sustainable Apparel Forum (SAF) held its fourth edition in Dhaka, with both the European Union and United States reiterating their calls to protect labour rights and the environment for the sustainability of the apparel business in Bangladesh.

Peter D Haas, the US ambassador to Bangladesh, focused on the role of workers, which he described as one of the main driving forces in the sustainability of the garment sector. He called for labour law reforms to give workers the chance to exercise their rights to freedom of association and collective bargaining.

Charles Whiteley, the EU ambassador to Bangladesh, suggested improving labour rights to obtain the trade benefit under the new EU Generalised System of Preferences (GSP). The EU is finalising new GSP rules to be effective from January for the next decade.

Ziaur Rahman, regional country manager for production at H&M for Bangladesh, Pakistan and Africa, said "As a large buyer in Bangladesh, we recognise our responsibility to be at the forefront in driving the sustainability agenda," while speaking at the plenary session. According to Rahman, the most pressing issue right now is climate change. He said the fashion industry needs to reduce its carbon footprint and there is a pressing need for the use of more renewable energy in the manufacturing hubs like Bangladesh.

Some 60 speakers and 20 exhibitors from across the world gathered at the SAF to share knowledge on sustainability in the garment supply chain.

Malaysia's Ambassador to Vietnam has urged both countries to capitalize on initiatives such as the Regional Comprehensive Economic Partnership (RCEP) agreement to boost bilateral trade.

The RCEP, signed at the 37th ASEAN Summit hosted by Vietnam in 2020, positions the Asia-Pacific region as the new center of global trade, with total trade expected to reach almost US$42 billion (RM189.2 billion).

As the world's largest free trade agreement, covering 15 countries and 2.2 billion people, member countries can benefit from the absence of about 90% of tariffs among themselves. There’s an optimism that the relations between Malaysia and Vietnam would continue to grow, especially within the framework of ASEAN, highlighting Vietnam as one of the most attractive destinations for foreign investors.

Bilateral trade between Malaysia and Vietnam has been on an upward trajectory, with total trade reaching US$19.44 billion in 2022.

Malaysia established diplomatic ties with Vietnam in 1973, and in commemoration of the 50th anniversary of their diplomatic relations.