The Lenzing Group, world’s pioneer in wood-based specialty fibers, hosted a conclave in New Delhi. The conclave was aimed at connecting the supply chain partners with new generation of fibers and products for the textile industry through knowledge-sharing and rich discussion platform. A key focus at the event was the challenge faced by the industry due to cotton supply and costs. The discussions focused on the scope of end applications made using cotton – Lenzing fiber blends that provide comprehensive benefits throughout the supply chain and to end consumers.

India is among the key markets for the Lenzing Group and the conclave represents its journey of 80 plus years of fiber innovations and a path to the future of textiles and fashion. The conclave came to a successful conclusion with the dissemination of new ideas and an expanded network of partners interested in taking it to market. The participants shared a commitment to implement sustainable and value-driven production throughout the supply chain, all the way to the end consumer. These concepts centered on meeting the market's present fiber needs and solving the challenges related to cost, supply, and economic insecurity. The participants saw the value of better performing and sustainable products meeting the current market needs.

Myammar’s reputation as an ideal sourcing destination has been under scanner since the country’s military coup in 2021. Despite the apparel sector being Myanmar’s largest employers, accounting for 30 per cent of total exports in 2021, it faced substantial job losses and uncertainties due to the coup, indicates UNComtrade 2022.

Nevertheless, fashion companies’ continue to source from Myanmar due to its changing business environment and need to diversify away from China. From January-May 2022, Myanmar’s apparel exports to the EU and the US remained largely stable while those to Japan increased back to level before the military coup, shows UNComtrade data.

Supplementary sourcing base

However, Myanmar’s share in leading apparel import markets US, EU and Japan remain below 5 per cent as most fashion brands and retailers treat Myanmar as a supplementary sourcing base as part of their overall sourcing diversification strategy. On its part, Myanmar is diversifying exports to other countries post the military coup. In 2021, it increased exports to other Association of Southeast Asian Nations (ASEAN) members from 0.3 per cent in 2020 and 2.7 per cent in 2019. Its imports of textile raw materials from Asia also increased to 97.3 per cent, including 72 per cent from China.

Exports determined by trade sanctions

Myanmar’s apparel exports in 2022 were also determined by trade-related sanctions imposed by importing countries. The most significant sanctions were imposed by the US including suspension of 2013 Trade and Investment Framework Agreement and issuance of the Business Advisory for Burma in January 2022. These have made US fashion brands and retailers cautious about sourcing from Myanmar post the coup. The 2021 USFIA industry Benchmarking Study released in July shows, only about 9.4 per cent of respondents reported sourcing from Myanmar, much lower than 19 per cent in 2020 before the military coup.

In contrast, the EU continues to source from Myanmar as it enjoys duty-free benefits under the Everything But Arms (EBA) program. Similarly, Myanmar’s exports to Japan are also quality for duty-free benefits under the Generalized System of Preferences for Least Developed Countries.

Low-cost sourcing base for specialized products

Fashion companies also consider Myanmar a low-cost sourcing destination for specialized categories, particularly outwear. This encourages brands like Zara, H&M, Adidias, etc, to continue sourcing outerwear from Myanmar. The low-price of outwear ‘Made in Myanmar’ also attracts brands to source from there as against China and Vietnam. Myanmar remains a reasonable souring destination for certain types of orders and an ideal destination to diversify away from China.

However, despite these positives, Myanmar’s outlook as an apparel sourcing base remains uncertain due to the recent political turmoil. A few labor unions are calling for a suspension of Myanmar’s EBA eligibility. If implemented, this would cause Myanmar’s apparel exports to suffer substantially. Companies are therefore, urging brands and retailers to make a responsible exit from Myanmar and ensure transparency of operations.

To increase the quality of apparels and boost value addition, Bangladesh denim fabric and apparel manufacturers are opting for more advanced technologies. This is helping manufacturers reduce production costs by at least 30 per cent and lead the global high value denim market.

Technologies aid eco-friendly denims

World’s first LEED platinum-certified denim manufacturer Envoy Textiles has set up a state-of-the-art laboratory to manufacture sustainable products at lower costs. Set up in collaboration with Spanish company Jeanologia, the eco-efficient lab facility will cost Envoy Textiles €270,000 (some Tk2.62 crore) for every 12 months. The lab will be first of its kind at commercial level across the world, says Kutubuddin Ahmed, Chairman, Envoy Textiles.

Adoption of such technologies are helping manufacturers produce eco-friendly denims by using sophisticated washes and curbing water and chemical use. Pacific Jeans another denim manufacturer is also using latest technologies. This helps the company get all technology samples from the world’s most renowned denim technology providers, notes Mohammad Tanvir, Managing Director.

Meeting consumer demand

The only Bangladeshi denim exporter to work with Dutch Fashion brand G-Star Raw for the last 10 years, Genesis Denim adopted sophisticated technologies to meet consumers’ demand in terms of styles, washes and chemical usages. Today, the manufacturer supplies one million jeans worth about $20 million, to the company every year, points out Shafur Rahman, Regional Operations Manager. In return, G-Star RAW pays them up to $35 for a pair for denim pants, while low value denim exporters get $6 on an average, explains Munir Ahmed, Managing Director.

Strong backward linkage help retain position

Strong backward linkage has helped Bangladesh become a global leader in denim manufacturing. The country has maintained its position in the global market despite the ongoing economic recession. As the economic situation in the country improves, more buyers are expected to place new orders as the county offers denims at lucrative price and shorter lead time, points out Kutubuddin Ahmed, Chairman, Envoy Textiles.

Prolonged lead times prevent value addition

Bangladesh denim manufacturers also have an opportunity to add more value to their denim by exploring new quality washes. However, exporters are yet to tap this potential due to long lead times, says Sharif Zarif, Managing Director, Annata Apparels. Also, to produce high-value jeans, these manufacturers need to import fabrics from Turkey, China and Pakistan, he adds.

The restrictions imposed to curb the spread of COVID led to a marked decline in sportswear sales in Western Europe in 2020. However, the sector rebounded in 2021 and is expected to continue growing over the forecast period. As per a Euromonitor report, growth in the sector is being supported by the development of digital capabilities, increasing emphasis on sustainability and growing focus on health and wellness.

Expanding reach of sportswear

Sportswear brands such as adidas and Nike have started offering new athleisure styles that can be worn all day. The pandemic helped expand the reach of sportswear amongst adult consumers who earlier prioritized convenience over appearance. The category is being increasingly penetrated by general apparel brands as against earlier sportswear specialist.

adidas has launched innovative solutions to reduce and erode plastic waste. It has also ventured into several partnerships through its Three Loop Strategy. The brand has pledged to make all products virgin polyester free by 2024 besides reducing the company’s carbon footprint by 30 per cent by 2030, and acheiving climate neutrality by 2050.

High e-commerce penetration boosts market growth

High e-commerce penetration is boosting the sportswear market in Germany. The pandemic significantly boosted sales in 2020 with digital fashion platforms such as Zalando contributing hugely to this growth. Future e-commerce growth is likely to be supported by traditional brick-and-mortar players

Growth to slow down from 2023-2026

While annual growth will remain elevated in 2022, it is likely to slow down to around 1-2 per cent a year from 2023 until 2026. Consumers will continue to focus on health and well-being besides participating in various sporting activities. This will boost demand for sportswear and footwear.

The Q2 net sales of US lingerie maker Victoria’s Secret fell by 6 per cent year-over-year to $1.5 billion.

The brand’s adjusted gross margin slumped by 36.1 per cent owing to supply chain and raw material costs, in addition to uptick in promotions due to slowing footfall.

While the Q2 physical store comps dropped by 7 per cent, digital sales went down to touch low double digits.

The operating income of brand also fell by 37 per cent to $126.9 million during the quarter. The net income too dipped by 41 per cent to $ 89.3 million.

Amongst the products, bras continued to be the best performing merchandise segment for the company in the second quarter.

So, it wasn’t surprising to see the retailer lower its outlook for the full year. Victoria’s Secret now estimates the sales to fall in the mid- to high-single digit range.

The operating income, the retailer believes, is expected to be between $525 million and $575 million, while earlier it estimated the numbers to match last year’s US $ 870 million.

Despite the fall in traffic, the retailer, however, continues to bet on physical locations.

Leading computerized knitting machine manufacturer Shima Seiki along with its Turkish sales representative Tetas A.S., will exhibit its Whole garment knitting technology at the CAITME 2022 Central Asian International Textile Machinery Exhibition in Tashkent, Uzbekistan next month.

The Whole garment knitting technology can knit an entire garment and requires no post-process sewing. On display will be the MACH2VS Whole garment knitting machine. The flexible and versatile MACH2VS is capable of knitting a range of production styles. As a conventional shaping machine, it is capable of all-needle knitting in its available range of 8 to 18 gauge, while WHOLEGARMENT knitwear can be produced in half-gauge fabrics.

The range of usable yarn and material has also increased, thanks to i-DSCS+DTC as standard equipment. The R2CARRIAGE system that yields quicker carriage returns for greater efficiency, now features a lighter carriage for even higher productivity. MACH2VS is even capable of gaugeless knitting whereby a number of different gauges can be knitted in a single garment.

Meanwhile the N.SSR112 computerized flat knitting machine offers leading technology in an economical yet reliable package. Featuring industry-leading innovations such as the R2CARRIAGE, spring-type moveable sinker, DSCS Digital Stitch Control System, stitch presser and takedown comb, Made-in-Japan quality, reliability, productivity, user-friendliness and cost-performance combine to satisfy the high expectations of the world's fashion industry.

Demonstrations will be performed on Shima's SDS-ONE APEX4 design system. At the core of the company’s Total Fashion System concept, SDS-ONE APEX4 provides comprehensive support throughout the production supply chain, integrating production into one smooth and efficient workflow from yarn development, product planning and design, to production and even sales promotion.

Vietnam’s export earnings from the textile and garment industry are expected to increase to $45 billion, compared to $40.4 billion, as per an Vietnam Plus report.

Truong Van Cam, Vice Chairman, Vietnam Textile and Apparel Association (VITAS), says, the industry has been growing at the rate of 26 per cent annually since the last five years. Vietnam is currently the world’s third largest exporter in this regard.

Textile and garment products exports from the country hold a global market share of 5.2 per cent, with the biggest importers being the US, the Republic of Korea, Japan, and Europe.

Cam held that to sustain the growth trend, the State should quickly disburse the financial aid package for enterprises and reform the mindset in attracting investment to textile and garment material production.

Meanwhile, businesses should adopt green manufacturing practices, including reducing and recycling waste, to meet the growing preference for environmentally friendly products, he added.

PVH Europe has been signed on by Kingpins Shows as a sponsor of its Most Sustainable Product (MSP) initiative with plans for PVH to produce a collection of garments featuring select MSP fabrics and washes.

As per the Spin Off report, PVH will produce the garments in its Amsterdam atelier using fabrics and processes selected by Miguel Sanchez, Textile Engineer and Kingpins Technology Leader and Piero Turk, Denim Designer and Industry Consultant. The garments will be washed by Italian finishing machinery maker Tonello. The Most Sustainable Garment collection will be showcased at Kingpins Shows in Amsterdam and New York.

The MSP initiative was launched by Kingpins to showcase new sustainable innovations, developments and practices from exhibitors at Kingpins shows.

Prior to Kingpins shows in Amsterdam and New York, Sanchez reviews sustainable products and processes from Kingpins exhibitors and then meets with companies at the shows to scout additional sustainable innovations.

Kingpins publishes a list of MSP development on its website, Kingpinsshow.com, as a resource for designers and brands looking for the latest sustainable developments to help them make informed choices about their production and their products.

Spanish clothing giant Inditex, French biological recycling specialist Carbios, and French group Michelin are participating in the initiative titled Whiltecycle, a consortium of 16 European entities, both public and private.

Announced on August 9, the new gathering of businesses aims primarily to achieve the objectives set out by the European Union for 2030 concerning CO² emissions. The consortium predicts that, by the end of the decade, adopting circular solutions will make it possible to recycle over 2 million tons of PET (complex waste containing textiles) per year and to reduce local CO² emissions by two million tons.

The consortium has an overall global budget of €9.6 million and funding for Europe totaling close to €7.1 million. The business Michelin will be in charge of coordinating its operations and the group’s partners are based in five countries: France, Spain, Germany, Norway, and Turkey.

The consortium has highlighted four areas of innovation comprising the development of sorting technology for complex waste streams, pre-treatments and enzyme-based processes to sustainably decompose materials, the repolymerisation of recycled monomers into like new plastic, and the production and quality verification of new products made from recycled plastic.

Exports orders to the Cotton Textile Export Promotion Council of India, popularly known as Texprocilmay have crossed Rs470 crore ($59 million) at the three-day reverse buyer-seller meet held recently in Mumbai.

Having over 50 stalls of Indian suppliers displaying yarns, fabrics and home textiles, the show also featured international buyers from over twenty countries invited by Texprocil visited the event.

ManojPatodia, Chairman, Texprocil said the exhibitors and visitors had made on-site bookings to the tune of $6.4 million (Rs51 crore), while orders worth $59 million (Rs470 crore) are in the negotiation phase.

Given the current global market dynamics for cotton textiles, the orders reflect encouraging business prospects in the coming months, he added.

The China Plus One strategy of most international buyers has helped textile companies in India bag good orders at the event.

During the show, region-wise B2B meetings were held. Also, Indian sellers had the opportunity to meet all the overseas buyers during these pre-scheduled B2B sessions, said Texprocil.