Prada SpA returned to profitability in 2021 due to a sharp acceleration in retail sales, including online, and a growth in all product categories, especially in the Americas and Asia-Pacific markets.

In the 12 months ended Dec. 31, Prada’s net profit climbed to €294 million compared with a net loss of €54 million in 2020. In 2019, net profit amounted to €256 million, but that figure was lifted by the Patent Box tax benefit.

In 2021, revenues totaled €3.36 billion euros, climbing 41 percent from €2.42 billion in 2020. Compared with 2019, sales rose 8 percent. In the second half of 2021, sales grew 16 percent compared with the same period in 2019.

In 2021, retail sales climbed 40 percent to €2.93 billion compared with 2020, and 15 percent compared to 2019. The growth last year was driven by full-price sales and local spending with a strong acceleration in the second half of 2021. The trend further accelerated in the year as the group’s retail sales the fourth quarter rose 24 percent compared with the same period in 2019.

Online sales accounted for 7 percent of retail sales, growing fivefold compared with 2019. Compared with 2020, they rose 61 percent.

German sportswear maker Puma recorded more revenues during FY21, than the combined sales of its rivals - Adidas, Nike, and Reebok - last fiscal year. With revenues of Rs 2,044 crore Puma surpassed footwear company Bata for the first time in sales. It also outsold sports retailer Decathlon and apparel brands Hennes&Mauritz (H&M) and Zara, according to the latest filings with the Registrar of Companies.

The demand for fitness wear and sports equipment for sporting disciplines other than cricket has expanded in India. Last year, Puma sold 1.2 lakh pairs of footwear and opened a new store every week on average to take the total outlet count to 411. The brand also generated robust online demand as it had invested in e-commerce a few years ago.

Despite restrictions, Puma continued to invest in retail expansion, local supply chain and new products at a time when most others were considering store closures and cutting down inventory size.

Bangladesh is fast emerging as a highly lucrative market for Indian consumers look to buy cheap ready-made garments. The country is home to several local and international brands and merchants setting up production units and increasing their sourcing from the country.

A robust supplier of formal shirts, tops, denim trousers, underwear, polo shirts, T-shirts, and bottoms to India’s middleclass, Bangladesh supplied garment products worth $365.94 to India's middle class from July to December this fiscal year. Garments worth $365.95 million were supplied during the period an increase of 58.07 per cent in exports from the same period last year.

Widening middle class fuels demand

Demand for Bangladesh garments in India is being driven by growing middle-income groups. Many Indian stores offer western clothing from Bangladesh. Garments are imported from Bangladesh and sold in the Indian markets. A few retailers also import clothing items from Dubai to make orders with Indian manufacturers, who then purchase items from Bangladesh.

As Md Shahidullah Azim, Managing Director, Classic Fashion Concept says, a large number of Indian manufacturers are making orders in Bangladesh and re-exporting them to other nations. Another leading Bangladeshi apparel manufacturer, Ananta Group sells garments worth $1 million in India each year, informs Sharif Zahir, Managing Director. India also permitted duty-free import of Bangladeshi garments under the SAFTA agreement in 2010. This has helped boost imports steadily.

Geographical proximity, cheap transportation drive export

RMG exports from Bangladesh are on the rise due to its geographical proximity to India. The country offers cheap transportation encouraging importers to acquire items for both local and global brands. Bangladesh now aims to boost garment exports with new government initiatives and improvement in bilateral connectivity between the two nations. For the first time, Bangladesh's exports to India are set to exceed $2 billion by the conclusion of this fiscal year, says Faruque Hassan, President, BGMEA. In June 2022, BGMEA will attend a clothing trade event in Bengaluru comprising exhibitors from Bangladesh, Myanmar, and Vietnam. The association will also send a business team to India to examine commercial and investment opportunities in Bangladesh.

Adapting to changing demands

The ability of Bangladesh's RMG exporters' to recover quickly from the pandemic is an indication of its perseverance, resilience, and innovation. These attributes are helping RMG exporters adapt and evolve with customers’ changing needs and bridge trade deficit with India.

The latest textile index of 10 companies done by Wazir Advisors show sales and EBITDA recorded a tremendous growth during the nine months in fiscal 22. The 10 reviewed companies were: Welspun India, Vardhaman Textile, Arvind Ltd, Trident Group, KPR Mills, Indo Count India, RSWM, Filatex India., Nahar Spinning Mills and Indorama Indi.

Sales grow by 30%

The Wazir Textile Index shows overall sales of the 10 companies under review grew 30 per cent compared to 9M FY20. Consolidated sales grew 14 per cent to Rs 38,094crore as against Rs 29,195 crore in 9MFY20. EBITDA margins improved almost 75 per cent during the fiscal year 2022 compared to the EBITDA in 9M FY20. Average EBIDTA margins of these companies grew 5 per cent, 17 per cent and 20 per cent CAGR respectively from 2020-2022.

Raw material and other costs decline

In terms of expenses, the average raw material costs of these companies decreased 4.0 percentage points to form 60 per cent of overall sales during the period. Their average employee costs decreased 1.0 sales percentage points during the nine-month period compared to 9MFY20. Other expenses decreased by 1.0 percentage points during the period compared to 9MFY20.

Apparel outpaces textile growth

The consolidated earnings of these companies have seen significant recovery since FY21. The Index of Industrial Production Index (IIP) recovered to pre-COVID levels. While IIP for he apparel category increased by 78 per cent during 9MFY22 as compared to the corresponding period in FY, the average Wholesale Price Index (WPI) for apparels increased 3.5 per cent compared to textiles which went up 12 per cent each in 9M FY22 as compared to 9MFY20.

11% growth in textile and apparel exports

Textile and apparel exports of grew at 11 per cent CAGR during 9M FY22 since 9M FY20. Export of fibers recorded highest growth of 58 per cent followed by 36 per cent growth in yarn exports. In Q3 FY22, fiber exports grew at 50 per cent CAGR as export of cotton increased due to US ban on cotton purchases from China. India’s textile exports to the EU declined from 23 per cent to 14 cent whereas exports to Bangladesh increased to 11 per cent from 7 per cent seen during the same period last year.

Imports decline 3%

Overall textile and apparel imports by these ten companies declined 3 per cent during 9M FY22 as compared to 9M FY20. Import of filament yarn grew 24 per cent CAGR since 9M FY20. However, import of fiber and home textiles declined during the period as compared to 9M FY20.

China dominates T&A imports from India

China continues to be the largest importer of textiles and apparels from India with a share of 41 per cent in 9M FY22. However, the country’s import share declined 4.0 percentage points from the corresponding period of 9M FY21.

EU’s import of share of textiles and apparels from India also declined 6 per cent in 9MFY22 compared to 9M FY20 in 9M FY22. Imports were hit by multiple nationwide lockdowns and restricted movements. However, in recent times EU-27 countries have been increasing imports from countries like China, Bangladesh, Turkey, India and Pakistan.

The Worldwide Responsible Accredited Production (WRAP) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have renewed their longstanding partnership for another year under a newly revitalised memorandum of understanding (MoU).

The MoU was signed by AvedisSeferian, President and CEO, WRAP, and Faruque Hassan, President , BGMEA,.

Under the agreement, WRAP will develop a series of training courses for BGMEA members which will be available at no charge and will be held either virtually or in-person, circumstances permitting.

Additionally, the association's affiliate program dedicated to the development of human resources in Bangladesh's readymade garment (RMG) and textiles sectors, BGMEA University of Fashion & Technology, will facilitate WRAP training for students, employees, and independent auditors. The agreement also covers additional commitments regarding events and sponsorships.

PiyushGoyal, Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, said the next Textile sector Unicorn should come from the ICT.

Addressing the e-Summit 2022 of the Institute of Chemical Technology, Mumbai on Atmanirbhar Renaissance, he called upon the ICT students to take the leadership in Tex-preneurship, the Textiles sector entrepreneurship.

Goyal said the ICT has played an important role in making India Aatmanirbhar, particularly in the Chemicals and Pharma sectors. The government is working as an enabler and has taken transformational initiatives to promote the textiles sector, including the PLI, setting up of 7 mega textile parks, launching the National Technical Textiles Mission (NTTM) to position India as global leader in Technical Textiles and 31 projects have been already approved.

Goyal said India is going through the Aatmanirbhar Renaissance. It has become a global leader in digital transactions within 5 yrs of UPI launch. IIt has the3rd largest Startup ecosystem today, over 65,000 Startups registered in five years, more than 90 Unicorns and lakhs of jobs created by these Startups.

Goyal added,the current decade is the ‘Tech-ade’ of India, a decade where technology and innovation will be the driving force of India and our economy.

Bangladesh aims to increase export earnings from leather and leather goods by tenfold over the next nine years.

As per the Business Standard report, the commerce ministry is drawing up a ten-year perspective plan, which includes a target to increase the leather sector's export earnings from below $1 billion to $10-12 billion by 2030.

If Bangladesh can live up to the target, it will be among the top ten global exporters in the sector, says Shaheen Ahmed, President, Bangladesh Tanners Association.

Leather Working Group's certificates are important in attracting foreign buyers. If factories are not fully compliant, it is not possible to get this certificate. And to get foreign buyers and higher prices for products, it is a must, he adds

He called for the government's policy support and said foreigners are now buying leather goods at lower prices due to poor compliance. The price will go up once the factories get compliant. Export income will also increase.

The Denim Deal, officially known as the Dutch C-233 Green Deal on Circular Denim, is laying the groundwork for its mission to promote the use of high-grade post-consumer recycled cotton (PCR) by 2023.

. Using data from seven of its 38 signatories, including recyclers, producers, brands, retailers and public authorities, the group published a report that will serve as a baseline for achieving the Denim Deal’s goals.

Established in October 2020 in Amsterdam with 28 parties, the Denim Deal signatories committed themselves to the joint approach of working as quickly as possible toward a new industry standard at 5 percent PCR cotton used in the production of all denim garments. A public-private initiative, the Denim Deal was established by the Dutch Government, following the EU Green Deal and Circular Action Plan.

With December 2023 as the common target, brand and retailer signatories aim to achieve a minimum of 5 percent PCR content in their own denim collections; set and achieve higher goals for PCR content; and commit to “individual ambitions” designed to meet the joint goal of using 20 percent PCR cotton in 3 million pairs of jeans.

Signatories include local companies like PVH Europe, Scotch & Soda and Kings of Indigo, as well as Calik Denim, Ereks and Recover from the supply chain.

Athletic wear continues to drive apparel sales despite most people returning to their offices. Recently brands Abercrombie, Express’ UpWest and Revolve launched their first athletic wear collections following the first sneaker collection launched by footwear brand Birdies. Continued launch of athletic collections is also sustaining demand for high-performance fabrics and silhouettes. It is also boosting activewear apparel sales that surged 37 per cent year-over-year last year, says the NPD Group.

Athleisure dominated not just apparel but also footwear sales last year with sports-leisure footwear lifestyle sneakers emerging as one of the most popular shoe subcategories during the year. The category captured over one third of all footwear revenue in 2021, indicates a Modern Retail report. Athleticwear became almost a permanent fixture in shoppers’ closets with the trend continuing even this year.

Sustained demand leads to new launches

After the soft launch of a few styles earlier, Abercrombie recently launched its new athletic sub-brand, YPB. Denoting Your Personal Best, the brand offers products like leggings, bike shorts, sports bras and gym bags. The products were designed after almost 18 months of research post the launch of another sub-brand called 96 Hours in 2017, notes Kristin Scott, Global Brand President. For the last few months, the brand has been a witnessing demand for activewear on its website, explains Corey Robinson, SVP, Design and Merchandising. This has encouraged it to launch an active wear range focusing on quality and fashion alongside traditional athleticwear concerns like performance or fit.

Similarly Birdies has forayed into athleticwear space with two new shoe launches —tennis sneaker and a running sneaker. The brand that earlier focused on more formal footwear like velvet flats or tasseled loafers, has now riveted to sneakers, adds Marisa Sharkey, Co-Founder, Birdies.

Category positioning poses a challenge Besides Birdies and Abercrombie, other fashion-focused apparel and footwear brands that have launched athletic or athleisure collections this year include resort wear brand Ona, Express ’DTC subbrand UpWest and fashion retailer Revolve. Similar activewear collections were launched last year by non-active brands like intimates brand ThirdLove and luxury house Roland Mouret..

The activewear market has become bigger and more crowded, affirms Kristen Classi-Zummo, Director-Market Insights, NPD Group. The pandemic has made it a staple in all wardrobes. Most fashion brands are adding athletic-inspired shoes to subcategories like boots and sandals. These days, sport leisure footwear sales are largely being driven by athletic brands, adds Beth Goldstein, Executive Director, NPD Group. Similar developments are been witnessed in the apparel segment.

On the other hand, fashion brands are struggling to position their new athletic or athleisure assortments into their existing portfolio. For instance, Birdies was compelled to release its new sneakers collection under the main brand to highlight its versatility. The brand also launched a new marketing campaign focusing on athleisure values.

Abercrombie is highlighting the performance qualities of its new range. The aim is to make a clear distinction between earlier products and the new offering. Classi-Zummo points out, athleisure category will continue to grow in 2022 as customers look for apparels spanning occasions. Versatility will be key to athlesiure’s future growth as brand continues to focus on innovative styles, patterns and customization, adds Zummo.

The American Apparel and Footwear Association (AAFA) has partnered with Bangladesh's apparel apex body- BGMEA- to explore opportunities and work together to increase the country's trade access to the US market and improve purchasing practices.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the AAFA signed a Memorandum of Understanding (MoU), As per the understanding, the AAFA will support Bangladesh in promoting its trade interests in US market, especially advocating for the withdrawal of GSP suspension to recognise the progress made in the local industry in the area of workplace safety, workers well-being and environmental sustainability.

They will also work on creating joint scoping missions to explore bilateral investment opportunities, particularly in Bangladesh's backward linkage textile industries, especially in the non-cotton segment.

According to the MoU, the two groups will explore opportunities and work together to increase trade access for Bangladesh to the US market, improve purchasing practices, build on the great work already done by the Bangladeshi industry on sustainability, and expand the strong partnership between the US and Bangladeshi industry.

They will also work collaboratively on capacity building to cut time and cost, to make supply chain more sustainable, via developing joint programmes to train workers and mid/top management, and a special collaboration with BGMEA Center for Innovation, Efficiency and OSH, and a collaborative arrangement between the Parties and BGMEA University of Fashion & Technology (BUFT).

The two associations will inspire buyers-supplier collaboration to upscale product development and innovation capability to explore untapped segments of the export market, via joint research, coaching programmes, sharing of knowledge and information like fashion trend analysis and forecasting, matchmaking events, media campaign.

AAFA and BGMEA will collaborate to deepen discussion towards a unified code of conduct like symphonisation for social and environmental audits in manufacturing facilities, via setting up of a Joint Committee with clear terms of engagement.

They will also set up a corporate alliance on CSR initiatives to ensure well-being of the workers and communities.