L Brands, Inc has partnered with Next PLC to acquire its Victoria’s Secret business in the United Kingdom and Ireland

This newly formed JV will operate all Victoria’s Secret stores in the U.K. and Ireland, subject to agreeing to terms with landlords. The UK digital (online) business will be merged into the JV in Spring 2021. Under the terms of the agreement, Next PLC will own 51 percent of the JV, while Victoria’s Secret will own 49 percent.

L Brands, Inc is an American fashion retailer based in Columbus, Ohio. Its flagship brands include Victoria's Secret and Bath & Body Works. L Brands posted $12.914 billion in revenue in 2019, and was listed as 248 on the 2020 Fortune 500 list of largest United States companies by revenue.

In February 2020, L Brands announced the planned sale of its Victoria Secret division to Sycamore Partners, private equity firm. Under the agreement, Sycamore Partners would gain a 55 per cent controlling stake in Victoria's Secret while L Brands would keep a 45 per cent stake, leaving Bath & Body Works to become L Brand's sole business.

According to an India-Ratings report, the face-off between the US and China will benefit India’s textile exports in 2HFY21. The agency expects the Indian players to increase their already strong market share in terry towels and bed linens, led by supply chain diversification away from China.

Even though the domestic demand is moderate, Indian textile companies have significantly increased their plant capacity use in August 2020, after the lockdown was gradually lifted in the country, says the report.

The agency expects textile players to record 15-35 per cent year on year (yoy) decline in their top line and 20-50 per cent yoy drop in operating profits over FY21. The prices of textile products have recovered broadly in August 2020 from the lows of April-May 2020. The prices of international cotton (US) are recovering steadily month on month — in August 2020 it witnessed 4 per cent rise, after dipping in April 2020.

Indian cotton prices increased about 5 per cent month on month in August last week, following a partial correction in the international prices over July 2020.

Messe Frankfurt North America is introducing a Pop-Up Sourcing Showcase at its New York Textile shows. The organizer is introducing Texworld New York City and Apparel Sourcing New York City editions of its popular events. These virtual events will take place January 12-14, 2021, along with the Pop-Up Sourcing Showcase at the Javits Center to collectively create the largest sourcing event of the season.

The Pop-up Sourcing Showcase” will be dedicated area on the show floor that will feature a unique display of the highest quality fabrics and garments provided by mills from around the globe who cannot be present at the event. Suppliers will submit the best of their collections to be curated by New York-based trend agency, The Doneger Group. The “Pop-up Sourcing Showcase” will be streamlined and integrated with the Virtual Platform giving visitors a unique and interactive sourcing experience.

The stocks of Zara-owner Inditex are likely to plummet if COVID-19 cases continue to surge across Europe and result in a second set of government-imposed lockdowns.

The stock could also come under pressure if its half-year (H1) earnings fail to impress investors on Wednesday 16 September.

In its first three months of trading, most markets of the group imposed restrictions on the operations of stores, which resulted in 51 per cent decline in sales. However, the retail fashion group remains confident of positive outcome in its upcoming results.

All high street fashion retailers like Inditex, Next and Hennes & Mauritz (H&M) have struggled significantly amid the coronavirus pandemic as lockdowns have wiped out sales from physical stores. However, the prices of online-only retailers like Boohoo and ASOS continue to move higher with online fashion is set to triple this year, accounting for around 23 per cent of all European sales in 2020.

The Trump administration has imposed new restrictions on import of apparel, hair products and technology goods from certain Chinese companies alleging these entities use forced labor in the Xinjiang region to make their products. These restrictions allow US customs agents to detain and potentially destroy goods brought into the country that are made by the named companies or entities in Xinjiang.

The withhold release orders were announced by Customs and Border Protection They target all products made with labor from the Lop County No. 4 Vocational Skills Education and Training Center in Xinjiang, which provides prison labor to nearby manufacturing entities. The orders also restrict hair products made in the Lop County Hair Product Industrial Park, apparel produced by Yili Zhuowan Garment Manufacturing Company and Baoding LYSZD Trade and Business Company, cotton produced and processed by Xinjiang Junggar Cotton and Linen Company, and computer parts made by Hefei Bitland Information Technology Company.

Under this withhold release order, importers can bring their products into the United States if they are able to provide proof to customs that the goods were not made with forced labor.

A new report by India Ratings says, man-made fibers and yarn segments are expected to recover due to pent-up demand and strong export order build up in all the segments. The report states, both segments will benefit from the low raw material prices in the third quarter this financial year. Their volumes have improved to 50-80 per cent of normal levels in August, led by pent-up demand and strong export order build up in all the segments. However, plant utilization of pure man-made fibers and yarn manufacturers was severely impacted due to the lockdown.

Ind-Ra expects raw material prices to remain moderate in the second half of FY21. It expects fabric and apparel prices to decline in August, led by a quick supply restoration than demand recovery. It expects demand for home textile exports to sustain in 2HFY21 at healthy levels achieved over August-September. According to Ind-Ra, Indian players are likely to increase their already strong market share in terry towels and bed linens, led by supply chain diversification away from China.

A virtual ASEAN-India ministerial meeting recently reviewed the strategic partnership between the two regions. The first major interaction with ASEAN after India walked out of the Regional Comprehensive Economic Partnership (RCEP), the meeting reviewed the progress in implementation of the ASEAN-India plan of action (2016-2020). It also adopted a new plan of action for the next five years besides reviewing the preparations for the upcoming 17th ASEAN-India summit.

Ministers discussed ways to strengthen cooperation to fight the pandemic and exchanged views on important regional and international developments. India, China, South Korea, Japan, New Zealand and Australia are the six prominent members of the ASEAN. The RCEP was to be a free trade agreement among these six countries. However, India stayed away as it does not safeguard our interests. Indian analysts hope ASEAN will tilt towards the Quad (US-India-Australia-Japan) in the contestation of South China Sea. However, China has been resisting Quad’s efforts to raise bilateral ties with member countries.

Bangladesh is developing 500 new eco-friendly garment factories. The country certified 19 new units as eco-friendly in the first eight months of this year. This has increased the number of eco-friendly apparel and textile units in Bangladesh by around 125. There has been a spurt in green manufacturing units in Bangladesh following the infamous Rana Plaza building collapse, which highlighted the importance of a safe and secure working environment. As per BGMEA, there 144 facilities Bangladesh received the LEED certificate, of which 125 are garment and textile factories.

Among the factories that received LEED certificate this year included Avitex Dress Shirt, EMS Apparels, Mayble and Frank Fashions, Anwara Fashions, Nippon Garments Industries, Pacific Casual, Karooni Knit Composite Ltd. and Karupannya Rangpur.

Burberry plans to live video stream its Spring/Summer 2021 collection in collaboration with service provider Twitch. The brand will use Twitch’s unique Squad Stream function that will allow its hosts to stream the show together in one window. This will enable virtual guests to view the show from multiple perspectives. The collaboration with Twitch will allow the brand to engage with its community through curated content and experiences.

A global luxury brand, Burberry is headquartered in London and listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index. Launched in 2011, Twitch is a global community that creates unique, live experiences through its interactions with millions of views. The community creates entertainment across a host of categories from casual gaming to world-class sports, sports, music and art streams.

With the direct-to-consumer model and digitization diminishing their importance, physical trade shows suffered even before the pandemic. A Business of Fashion (BoF) and MyKinsey’s State of Fashion 2020 report reveals, nearly 55 per cent brands and retailers view trade shows as having little or no relevance to their business. COVID-19 pandemic has exacerbated the relevance of these trade shows with all US B2B events in the second quarter either being cancelled or postponed, notes the Center for Exhibition Industry Research (CEIR).

For visitors, these shows offer an opportunity to network with other exhibitors, and physically showcase products. To boost their future appeal, organizers will have to reinvent the organizational structure of trade shows, believes Julie Gilhart, Industry Veteran and Brand Consultant. Well-curated and localized trade shows will continue to attract visitors in the post pandemic world, she says.

Adapting to changing times

The success of modern trade shows depends on their ability to swiftly adapt to last-minute lockdowns and travel restrictions. Over the last few months, Premiere Vision made heavy investments in digital operations. Its online marketplace allows buyers and vendors to make virtual appointments and attend some 20 online educational seminars. It has also set up 1,600 online shops on the marketplace which exhibitors can operate free of charge.

On the other hand, Florence-based trade show, Pitti Immagine Uomo, charges €2,500 per season for customers to use its online platform Pitti Connect. Since the first four weeks of its launch, 500 companies, 6,000 buyers and 270 media professionals have used the Pitti Connect service. One of the largest players in B2B exhibitions and events, Informa charges exhibitors $1,995 to showcase collections in its online marketplace. The organizer aims to complement its physical events with digital operations, says Nancy Walsh, President, Informa Markets Fashion.

Eyeing more acquisitions

As the industry has become more competitive, bigger companies are eyeing smaller digital trade shows with a strong sense of branding and point of view. They plan to acquire more virtual events which enable them to display all their showrooms under one virtual roof and become a one-stop-shop for buyers, says Nancy Drapeau, President-Research, CEIR.

Informa’s Market Fashions offers many finished-product trade shows like Coterie, Magic and Micam Americas. The group’s eight-week digital marketplace, launched in partnership with NuOrder, allows buyers to filter searches through product keywords or the names of the trade shows they typically frequent.

Taking the mid-route

Pre-COVID, physical shows were the biggest source of revenue for Brand Assembly, a business platform started in 2013. The company’s multi-city trade shows made up 60 to 70 per cent of total annual revenue. Now, the share of these trade shows has declined below 50 per cent, says Hillary France, Co-Founder and Chief Executive. The platform has launched virtual marketplaces in collaboration with e-commerce firm Alkeon for established contemporary brands and emerging designers. Though currently free to use for brands and designers, these marketplaces plan to introduce a software-as-a-service model where customers will have pay a monthly or annual subscription fee to showcase their products year-round.

Organizers also plan to take the hybrid route for their events. Besides organizing physical events, these organizers plan to make huge investments in their online platforms to attract customers with customized shopping experiences. Though digital events are not so lucrative for these organizers, they help them become data-rich, says Walsh.