gateway

FW

FW

Primark’s first-half operating margin was 11.7 per cent. This beats last year’s 9.8 per cent as a weaker US dollar, better buying and tight stock management all helped. Primark’s full-year sales are expected to be five per cent ahead of last year, with particularly strong sales growth in Spain, France, Italy and Belgium.

Primark is one of the strongest names in value-focused fashion. Q4 sales growth has been faster than in the previous nine months of the financial year due to an improving like-for-like performance. Primark performed well in the UK even though the country’s fashion market has been weak. Its new store in Birmingham High Street showcases its full product range and new food and beverage and beauty services. The group continued to deliver a significant gain in market share, with sales growth of three per cent and a like-for-like sales decline of one per cent.

The contribution from its new European stores exceeded its expectations. But eurozone like-for-like sales fell by three per cent with a weak performance in Germany. While the American business remains loss-making, the firm’s increased sales and the lower operating costs due to the selling space reduction in three stores will result in a significantly reduced US operating loss.

Considering the local market size, Bangladesh’s leading readymade garment exporters are operating their business with the assistance of reputed global brands including H&M, Walmart, Zara, Next, Primark C&A, etc. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says more than 50 local RMG manufacturing companies are producing dresses for domestic markets. The BGMEA data also estimated the country’s domestic market size of apparel products at around Tk 250 billion where the local brands could avail less than 25 per cent share.

Local brands are getting good response from the customers. At the same time, consumers are embracing new trends. The customers are getting western and tradition culture with local brand. Due to quality products locally made brand cloths are gaining popularity in the domestic fashion industry as youths are attracting largely.

Country’s leading garment exporters including Beximco, Standard Group, Epyllion Group, Sonotex Group, Giant Group of Companies, Evince Group, Saasco group, East-West Industrial Park, Babylon Group and Millon Clothings have been making their own clothing brands.

Beximco Textiles has decided to spread its wings on the domestic market with Yellow brand. This initiative will bring a positive impact on the country’s economy. Its brand “Sailer” already serves the country’s middle-class people. It has been receiving good response from consumers so far.

China has been pressuring western brands to apologise for perceived slights against its territorial integrity and/or for support for Hong Kong protestors — a trend that has already affected the likes of Givenchy, Coach, and Calvin Klein. In fact, Spanish fashion giant Inditex — the world’s largest retailer, selling in 200 markets via its online platform and 96 markets through 7,400 brick-and-mortar stores issued a public apology to distance itself from the Hong Kong protests and ensure its business won’t be frozen out in China.

This came on the heels of the unprecedented pressure China put on Cathay Pacific to publicly apologise for staff that were involved with the Hong Kong protests, which eventually led to the resignation of the company’s CEO and sent a message to the world that business will have to recognize the “one-China” policy or be punished. The world was waiting to see how long it would take for the Mainland to apply its brute influence across foreign businesses operating in China, and the response was fast.

On September 2, the Inditex-owned fast-fashion brand ZARA closed some stores in Hong Kong. Although it hasn’t been unusual for stores to close or change operating hours during the Hong Kong protests due to unsafe working conditions, staff taking leave to participate in demonstrations, or lack of customer turn-out, the Global Times nevertheless took the opportunity to call out the fashion giant.

Widely recognised as the noisy mouthpiece of the Communist Party of China, the paper published an editorial piece on September 1, entitled, Zara faces Chinese boycott after suspected support for the strike in HK, which accused the brand of closing its stores in support of the Hong Kong protests.

Monday, 09 September 2019 13:06

Inditex becomes a pure player

Inditex aims at being a pure player by 2020. In the second quarter, Inditex sales are expected to be up eight per cent, though demand is dropping. The first quarter was the most profitable for Inditex since 2013. Sales moderately rose by 4.8 per cent compared to the 4.5 per cent of the fourth quarter of 2018.

Inditex is one of the best positioned in the market, and at the same time it continues to sell through its stores and its online channel. The political instability may not affect the group. Despite this, the Spanish giant is not excluded from the currency effect that could probably erode its margins in the second quarter. Inditex still swims in turbulent waters, with the shade of a recession in several European counties, a weakened consumption and retail in a transformation phase.

Meanwhile competitor H&M closed its second quarter with a rise of 11 per cent in sales. Gap’s sales in the same quarter fell by four per cent. And sales at Fast Retailing fell by 7.3 per cent. Gap is in the middle of a restructuring. Fast Retailing is undertaking international expansion and H&M has started embracing digitalization after two consecutive fiscal years with disappointing results.

Monday, 09 September 2019 13:05

US jeans imports from China down 11 per cent

US blue denim apparel imports from China fell 11.01 per cent in this year till July. The drop is dramatic compared to overall apparel imports from China in the same period, which were up 2.33 per cent.

Most of US blue denim apparel imports are jeans. US denim apparel importers are reducing their exposure to China tariffs through a combination of partnering with vendors and diversifying their geographic production capabilities. They are reducing the percentage of their total apparel production which comes from China and reducing their dependency on China.

China’s jeans market share came down to 22.48 per cent, just a tick above Mexico’s 22.27 per cent. For the first seven months of the year, jeans imports from Mexico grew 12.53 per cent in value, topping China’s shipments so far this year. This was notably in contrast to Mexico’s overall apparel shipments in the period, which were down 2.94 per cent. Among the suppliers gaining ground this year from Asia was Vietnam, with imports to the US up 30.24 per cent, and Pakistan, with shipments rising 8.72 per cent. But imports from Bangladesh were down 1.51 per cent. Shipments from Cambodia declined 9.48 per cent and those Indonesia dropped 13.89 per cent.

Monday, 09 September 2019 13:04

Unifi sales up seven per cent

Unifi sales are up 7.6 per cent over the prior year.

This US company recycles PET into the brand fiber Repreve. But profits have fallen due to the significant competition from textured yarns imported into the US, unfavorable currency exchange rates, volatile feedstock costs and a higher effective tax rate.

Flake is produced at its PET bottle recycling facility. The site has a capacity of up to 75 million pounds per year. Unifi both sells the flake externally and sends it to the Repreve recycling center, where it’s processed into chips. The chips are both sold externally and converted by Unifi into Repreve yarn. Companies making outdoor wear, backpacks, socks or T-shirts use Repreve.

Unifi has production facilities in the US, Colombia and Brazil. It has sales offices in a number of locations in the Americas and Asia. The company has invested in capital projects, including improving production capabilities and technology enhancements in the Americas as well as annual maintenance work. There will be further production enhancements in the Americas, including purchasing Evo texturing machines. The machines, which can process Repreve recycled polyester, operate at higher texturing speeds than existing equipment, make a broad range of products and enable the production of new performance yarns.

Monday, 09 September 2019 12:52

Global textile waste increases by 811 per cent

Textile waste has increased by a massive 811 per cent from 1960 to 2015, says Retail Dive. The majority of this waste, approximately 66 per cent, is being dumped in landfills. Plastics show the largest increase in waste since 1960, a colossal 8,746 per cent. Rubber and leather, common materials used in footwear and clothing, have also shown a significant increase at 361 per cent.

Across the globe consumers now purchase more than 80 billion pieces of new clothing each year, with an increasing amount ending up in landfills. Companies want to be seen as being environmentally responsible. It’s about reducing waste during textile production and reusing or recycling waste to produce other products. Rugs and outdoor fabrics, for instance, are increasingly being made with recycled materials instead of new plastics. Fashion design students are experimenting using milkweed and flax to create luxurious fur from 100 per cent plant material. Another student design team has come up with the idea for a spandex-type elastic fabric using a protein found in oysters. An exhibit of textile innovations in the US included a dress made by a Japanese design team that features naturally glowing silk, made from silkworms injected with a green fluorescent protein derived from jellyfish.

Thursday, 05 September 2019 16:17

Marcella Wartenbergh is new CEO of Pepe Jeans

Wartenbergh is replacing Carlos Ortega, founder and shareholder of the Pepe Jeans Group. Most recently, she was chief merchandising officer at Calvin Klein, a role she took up just four months ago. But she spent many years at PVH, the American group behind global brands including Tommy Hilfiger, Arrow, Van Heusen, Izod, Speedo and Calvin Klein. Before being promoted to chief merchandising officer, Wartenbergh held many roles at the retail group, including group president of global licensing and strategic initiatives at Calvin Klein. She cut her teeth in the merchandising division of Tommy Hilfiger in the Netherlands in 1999.

Pepe Jeans owns the Pepe Jeans London, Hackett and Façonnable brands and distributes Tommy Hilfiger and Calvin Klein in Spain. The group is majority owned by L Capital Asia, a private equity unit backed by LVMH, and M1, a subsidiary of Lebanese investment firm M1 Group. Pepe Jeans has 355 stores, including 219 Pepe Jeans locations, 105 Hackett shops, 29 Tommy Hilfiger outlets, two Norton stores and 16 Façonnable sites. The company is looking at closing a number of Façonnable stores as part of a wider restructure to turn around its finances.

Monday, 09 September 2019 12:46

October apparel event in Cambodia

Textile and Apparel South East Asia Summit 2019 will be held in Cambodia, October 28 to 29, 2019. Ten to 50 exhibitors are also expected to display their products and services at the event. This will be one of the biggest and most important gatherings of stakeholders of Southeast Asia’s garment sector. The summit aims to provide an opportunity to industry stakeholders to grow the textile and apparel business and ensure growth in Southeast Asia. It will showcase latest opportunities and trends as well as good practice sharing to accelerate the growth and development of the industry. Industry leaders and experts from all over the world will speak at the event. Major topics to be discussed are: the influence of the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on the region’s textile and apparel industry; apparel procurement; different trends in the region’s labor markets; and the latest policy on investment in the industry.

Southeast Asia is among the leaders and plays an important role in global textile and apparel industry. The region has a strong comparative advantage for manufacturers, including market access, low labor costs, investment incentives, and a strong industrial base. In the region, Vietnam, Cambodia, and Myanmar have the fastest-growing textile and apparel industry.

Monday, 09 September 2019 12:44

Lyocell attracts worldwide attention

As a green regenerated cellulose fiber, Lyocell has attracted worldwide attention. With increasingly stringent environmental protection policies and awareness of social responsibility in enterprises and consumption, Lyocell is worthy of vigorous promotion and application.

The promotion of regenerated cellulose fibers is a concrete action for the industry to practice green development and promote sustainable development of the textile industry. It will significantly improve production technology and equipment level of new solvent-based cellulose fibers, and will also serve the structural adjustment of the textile industry. Transformation and upgrading of the regenerated cellulose fibers industry and the green manufacturing of textile fiber raw materials have made positive contributions.

With the continuous breakthrough of various basic research, equipment and process technologies in the green cellulose fiber industry and the advancement of industrialization, the industrial application of new solvent-based regenerated cellulose fibers will usher in a broad space for development. Of the 70 million tons of chemical fibers in the world, the total amount of regenerated cellulose fibers is less than five million tons, of which traditional viscose accounts for the majority. Major projects for the conversion of new and old kinetic energy include advanced basic textile new materials, key emerging strategic fiber new materials and bio-based chemical fibers.