Chinese sportswear brand Li Ning entered Russia in H12022 as per a report by real estate consultancy Knight Frank’s Russian arm. Over 180 companies, including fashion brands like H&M and sportswear giants Nike and Adidas have exited the Russia market till date. This makes LI-Ning’s entry notable. The brand plans to open 15-20 stores in Moscow and St Petersburg, as well as ink partnerships with local e-tailers and sporting brands

Li-Ning aims to become a major brand for affordable fast fashion and sportswear in Russia. The country provides a favorable condition for Li-Ning’s expansion. However, the brand’s Russia launch isn’t risk-free. Li-Ning‘s entry into the Russian market risks alienating potential customers in markets like the US. Russian consumers’ reception of Li-Ning is yet to be seen as cultivating brand awareness and loyalty from scratch in a country with its own culture could be an uphill battle. Moreover, Russian designers could create the country’s own iteration of guochao and call for local consumers to support homegrown companies.

On the other hand, embracing the Russian market will help Li-Ning boost sales and brand awareness. However, the sportswear brand will need to balance between localizing in Russia and cultivating goodwill with potential shoppers elsewhere, and invest in new products tailored to the needs and tastes of Russian consumers.

After recovering swiftly from the havoc caused by the pandemic, Bangladeshi garment manufacturers are now anticipating a slowdown as sales at key customers such as Walmart are hit by inflation. Walmart recently cut its full-year profit forecast and pledged to reduce prices of clothing and general merchandise more aggressively than it did in May to reduce a spring backlog.

The retailers’ orders to Bangladesh exporters have slowed down, says Faruque Hassan, President, BGMEA. Bangladesh's garments exports last shrank in July 2021 when COVID-19 cases were high around the world. Since then, sales have surged, growing by a multi-month high of 60 per cent year-on-year in March this year and 41 per cent in June, according to BGMEA data.

Two Bangladeshi garments suppliers to Walmart said other Western customers were also sitting on huge inventories. The European Union accounts for about 60 per cent of Bangladesh's total garments sales, followed by about 20 per cent to the United States. Other buyers include Japan, Australia, India and China.

Industry players now hope sales to the smaller markets will help them see through the current slowdown without too much damage, while they try to optimise manufacturing.

Consumer’s desire for fast fashion continues to grow stronger with each passing year, shows the latest data from FactSet compiled with the data from United Nation’s Comtrade

Using UN customs export data by countries, the report shows, the apparel and footwear industry manufactured and exported goods worth $582,1 billion in 2021. The value of apparel and footwear products manufactured by the industry surged by $47.8 billion compared to levels seen in 2017.

Asia Pacific remains largest exporter with 61% share

Asia Pacific emerged as the leading exporter of apparel and footwear products during the year with exports accounting for 61 per cent of the total. The second highest exporter was Europe with exports constituting 37 per cent of the total.

All the top three exporters of apparels and footwear during the year were Asian. Led by China with exports worth 29,3 per cent totaling $187.6 billion of the total.

The second highest exporter was Vietnam with exports surging by 9.2 per cent with exports worth $58.7 billion. The third highest exporter was Bangladesh with exports increasing by 6.9 per cent to $44.3 billion. These three countries collectively represent nearly half the world’s total exports and three quarters of all Asian exports.

US tops imports of apparel and footwear

The largest importer of apparel and footwear products during the year was the United States that imported 14 per cent of the world’s apparel and footwear exports, totaling $90.2 billion. Of this, 47.1 per cent of goods were imported from China.

Imports from China had been declining since 2017. However, China’s exports rebounded in 2021. From 2017-2018, China’s exports to the US surged though they dropped by 21 per cent again in 2020. In 2021, demand again rebounded strongly, shows the report. ,

As per FactSet Estimates data, growth in Europe was significantly higher than other regions at 35 per cent during 2021. However, this growth is likely to taper down to high-single digits over the next few years.

In contrast, growth in Asia was much more modest last year. Future projections for the region are much flatter resulting in higher expected growth in 2024 than the rest of the world.

Sales of Asian companies recover

Sales of all leading companies in Asia grew marginally upto 2020 before dipping during the year. Sales of these companies have now once again recovered to double of the largest pre-pandemic growth

Sales of median performers grew by low single-digit year-on-year sales growth and a much harsher decline of 16 per cent in 2020. Corporates based in mainland China saw much larger pre-pandemic growth.

Companies based out of Hong Kong but having manufacturing in China saw much larger declines in 2020. Sales of top performers declined by 13 per cent, while those of median performers declined by 22 per cent.

Bad and doubtful debts plague China

China was the worst affected by pre- and post-pandemic levels of bad and doubtful debt. Pre-pandemic, its default levels rose by 3.4 per cent which further spiked to 6.3 per cent in 2020 before dropping to 4.7 per cent last year.

Debt across Asia and Hong Kong remained at slightly high levels in 2021 compared to pre-pandemic levels, which further highlights that there may be more work to do in China.

The apparel sales of the stores associated with Japan Chain Stores Association (JCSA) rose by 5.80 per cent on a Y-o-Y basis and 2.10 per cent on a M-o-M basis TO 66,962.65 million yen ($490.18 million) in June ’22.

Sales of menswear and womenswear declined on monthly basis and increased on yearly basis. On the other hand, sales of kidswear increased both on monthly and yearly basis.

Revenues generated by menswear products were 12,287.83 million yen ($90 million) in June ’22 and increased by 3.30 per cent on yearly basis, whereas the figures saw a marginal decline of 0.30 per cent on monthly note.

The sales of womenswear products valued 15,825.74 million yen ($116 million) – up 5.50 per cent on yearly note – in the sixth month of 2022 and declined significantly by 7.40 per cent on monthly basis.

All other types of clothing upped its revenues in chain stores by 6.70 per cent on yearly note as the sales valued 38,849.08 million yen ($284.40 million).

In view of the evolving pandemic situation in Shanghai, the Intertextile Shanghai Apparel Fabrics and Yarn Expo Autumn fairs has been rescheduled to October 21-23 October 2022 instead of its original August date. The fairs will be held at the same venue, National Exhibition and Convention Center (Shanghai) alongside CHIC and PH Value.

Intertextile Shanghai Apparel Fabrics is a comprehensive platform to showcase your supreme apparel fabrics and accessories.

The fair offers plenty of business opportunities to meet the potential customer, explore new market opportunities, learn about next season’s trends, and add value to your business. It is currently one of the biggest and most comprehensive apparel fabric and accessories exhibitions in the world.

With both the spring and autumn edition in Shanghai, this exhibition provides an excellent opportunity for overseas suppliers to build stronger relationships in the region and enhance their presence in the market.

China exported rayon yarn worth 123.324kt of rayon yarn in the first half of 2022, up 50.88 per cent Y-o-Y including 86.956kt of single yarn and 13.105kt of ply yarn, respectively up 54.57 per cent and 59.53 per cent on yearly basis. Thus, the export of pure spun yarn occupies 81 per cent of total rayon yarn exports. At the same time, the export of rayon blended yarn amounts to 41.57kt, up 140.78 per cent y-o-y. After 2020, the export growth in the first half of year has been rising rapidly. The percentage of single yarn has been expanding to around 71 per cent, while that of ply yarn is gradually squeezed.

Rayon single yarn exported to five destinations (Brazil, Bangladesh, Pakistan, India and Vietnam) in the first half of 2022 amounts to 78.878kt, up 55 per cent y-o-y, accounting for 91 per cent of total single yarn exports, which was 68 per cent in 20217 and the increment is mainly contributed by India. Therefore, the export dependency of China's rayon single yarn is still high.

Rayon single yarn exported from Jiangsu, Zhejiang, Fujian, Xinjiang and Sichuan totals 84.433kt in the first half of 2022, rising 56.24 per cent y-o-y. The percentage of major origins changes little, except for fast growth of Zhejian

Tamil Nadu Spinning Mills Association (TASMA) has decided to take stringent action after the International Cotton Association (ICA) and rejected its request for cancellation of contracts. As per A Venkatachalam, the association will soon blacklist suppliers that do not invoice back actual losses, refuse to cancel contracts and payback the advanced amount received by them.

Venkatachalam said the draft rules, which were framed under the bylaws of ICA, and the way the suppliers/shippers follow them, completely go against the concept of ‘Rules of Fair Practice’. TASMA believes, ICA did not respond its concerns raised in the letter. TASMA had said that there was no provision of compensation in the contract on account of inordinate delay. High volatility in cotton prices and exchange rates reversed market conditions because of inordinate delay on the part of suppliers. The importing mills could not consume cotton and supply yarn to their buyers as per plan because they did not get deliveries even after waiting for four months. TASMA has demanded modification of the draft rules of the contract to maintain a reasonable balance in the interest of buyers and sellers.

The Q1 FY’23 revenues of VF Corporation increased 3 per cent with revenues of North Face brands growing in double digits. Revenue of the Denver, Colorado-based company increased by 3 per cent to $2.3 during the three months ending July 2 with big four brands growing 2 per cent and the balance of the portfolio growing by 9 per cent.

Revenue of The North Face grew 31 per cent to $481.1 million over the same quarter last year. Revenue of Timberland grew 8 per cent to $269.5 million. On the other hand, sales of both Vans and Dickies fell 7 per cent and 15 per cent to $946.8 million and $170.4 million, respectively. The company's 'other brands' category grew by 9 per cent, to $393.9 million.

Region wise, revenues from the Americas, VF Corp's largest market, increased by 6 per cent to $1.4 billion while from EMEA market it increased 10 per cent to $594.6 million; offsetting a 20 per cent plunge in APAC revenues and a 1 per cent dip in the company's international segment for the three months.

Brazil’s Chamber of Commerce and the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) have signed an MoU to boost two-way Brazil-Bangladesh textile-apparel trade. The MoU will enable Bangladesh to penetrate deeper into Brazil market for its textile products, while boosting cotton imports from the country. Bangladesh depends on Brazil for cotton imports. On the other hand, it exports readymade clothes to the country.

However, Brazil’s imports of readymade garments have been on decline since March 2022. Imports decreased to $8.15 million in June from $10.379 million of May 2022. Annually, Brazil’s apparel imports from Bangladesh decreased to $99.700 million in 2021 from 111,984 million in 2022. Import peaked at $193.407 million in 2018. However, home textiles import of Brazil from Bangladesh was negligible at $1.125 million in 2021.

On the other hand, Brazil’s export of cotton to Bangladesh declined to $44.633 million in June from $46.387 of May 2022. Brazilian export of cotton to Bangladesh increased to $437.492 million in 2021 from $323.441 million in 2020.

Andrea Incontri is the new creative director of Italian fashion brand Benetton. Incontri’s will enable the brand to exceed the goals that characterized its birth and history, says Massimo Renon, CEO, Benetton Group. His arrival will bring new energy to the brand that aims to make a generational change and guide Italian industry in these years, he adds.

In August, Benetton will launch a new advertising campaign under Incontri’s direction on all channels to present United Colors of Benetton’s Fall/Winter 2022-23. The first to be designed by Incontri, the summer ’23 collection will be officially presented in September, on the occasion of Milan Fashion Week. An architect by qualification, Incontri has vast experience as creative director, both at his brand and at Tod’s. His style is rooted in a formal subtraction and guides Benetton towards creating complex designs for today’s complicated world.

Incontri says, his appointment to Benetton enables him to participate in a project of values that involves not only clothing, but a wide range of cultural issues concerning the variable aspects of modern humanism.