In the first quarter of its current fiscal FY2020/21, H&M Group plans to focus more on digital growth. The brand also aims to optimize its store count by closing 250 stores and elevating remaining stores, as well as more closely associating them with one of H&M’s other priorities: sustainability.

H&M’s sales in the first quarter of this fiscal declined 23 per cent in local currencies. During the fourth quarter of last fiscal, its pre-tax profits fell to SEK3.67 billion from SEK5.4 billion a year earlier. The gross margin fell to 52.1 per cent from 54 per cent and post-tax profit dropped to SEK2.485 billion from SEK4.212 billion.

The brand’s net sales dropped by 10 per cent in local currencies to SEK52.549 billion as a strong recovery at the start of the quarter was derailed by the imposition of further pandemic restrictions. Its full-year pretax profit fell to SEK2.05 billion from SEK17.4 billion. Post-tax profit for the year was SEK1.243 billion, down sharply from SEK13.443 billion a year earlier. The gross margin fell to 50 per cent from 52.6 per cent.

According to recent survey of 610 factories in Bangladesh, nearly 357,000 of 4.1 million garment workers in the country have lost their jobs due to the pandemic, reports Apparel Resources

Between December 2019 and September 2020, the average number of workers per factory fell from 886 to 790, researchers from the Centre for Policy Dialogue and Mapped in Bangladesh have found. Some 232 factories, accounting for 6.9 percent of all factories in Bangladesh, have shuttered due to the pandemic, according to the study, titled “Vulnerability, Resilience and Recovery in the RMG Sector in view of COVID Pandemic: Findings from the Enterprise Survey.”

Researchers found that more than 59 percent of the factories they polled also drafted new workers during the outbreak, with the recruitment rate described as high at factories in Dhaka and Gazipur. As many as 37 percent of factories both retrenched and recruited workers amid the COVID-19 outbreak, with laid-off workers usually rehired with reduced pay, downgraded contracts and loss of benefits.

In addition, most garment factories did not adhere to labor laws and rules when laying off or terminating workers, researchers said. Just 3.6 percent of the facilities surveyed complied with the compensation principle, meaning they paid salaries, benefits and cleared dues, researchers said. Roughly 70 percent of the factories paid salaries only. Non-compliance, they said, was much higher in large-sized factories and factories located in Narayanganj.

Though the sector’s overall gender composition did not noticeably shift, as many as 33 percent of factories employed a lower post-outbreak share of female workers, a finding that squares with the International Labour Organization’s assessment that women are disproportionately affected by the fallout of the pandemic.

The study also found that most factories, including those belonging to large enterprises, did not have a plan or financial backup to help them cope with the immediate crisis. Only 44 percent of the factories polled said they were confident about the work orders coming in through April. More than half (56 percent) said they faced different levels of uncertainty and 11 percent reported experiencing high uncertainty.

Global innerwear brand Jockey and the TENCEL™ brand are broadening their horizons to China and Indonesia with Phase 2 of their collaborative campaign. Set to launch this December, Phase 2 will showcase the benefits of Jockey x TENCEL™’s underwear and loungewear with informative articles published in Cosmopolitan magazine.

To augment editorial content, Jockey and the TENCEL™ brand also created a global video, set to launch as part of Phase 2, highlighting how editors and influencers, who are redefining comfort from within, are staying productive whilst living more comfortably and sustainably from home. Jockey and the TENCEL™ brand don’t plan to stop there with sights already set on expanding to more regions for Phase 3 in 2021.

Determined to spread their sustainability message across the globe, and champion the use of sustainable fibers like TENCEL™ Modal fibers, Jockey joined forces with the TENCEL™ brand for a global co-branding campaign. United by a goal to inspire comfort from within, the Jockey x TENCEL™ brand campaign launched with a long form feature article in Vogue Australia in late 2019. Featuring Jockey x TENCEL™ brand’s collaborative 2020 innerwear collection, the article showcased the benefits of TENCEL™ Modal fibers including soft touch on skin, breathability and, of course, sustainable guarantees like biodegradability and the use of sustainably sourced wood.

The Jockey x TENCEL™ brand co-branding campaign forms a key part of the TENCEL™ brand’s global #FeelsSoRight campaign, designed to drive evolutionary change in the fashion and textiles industry. The #FeelsSoRight campaign has already reached over 40 million viewers, and with Jockey’s support, it will undoubtedly spread the message of sustainability to even more eco-conscious consumers across the world.

Fashion for Good has launched a new, two-year pilot project in collaboration with leading brands Kering and PVH Corp, and leading global textile manufacturer Arvind Limited to pilot a radically resource-efficient cotton farming technology provided by Fashion for Good innovator, Materra.

Materra’s innovative combination of precision agriculture, environmental control and real-time data tracking facilitate resilience for cotton farming in developing regions where climate and resources prove challenging for cotton cultivation, the Fashion for Good-led consortium said in a press release.

The project leverages Arvind’s local knowledge and network with a 1.5-hectare farm being set up in the Gujarat region in India. Fashion for Good initiated and will manage the project in addition to financing the project through an equity investment in Materra.

The farm will grow extra-long staple cotton, which is often used in more high-end products, and provides the region with opportunities to explore implementing the fibre that has historically not been grown in large volumes in Northern India as its cultivation requires specific climatic conditions that are only met in a limited number of regions. The cotton generated on the farm, which will total 3 tonnes by the completion of the project, will be divided amongst the three partners to produce garments that will be made commercially available from 2023.

The pilot officially kicked off on January 26, 2021. The next three months of the pilot will focus on installing the pilot farm to be ready for planting in April, with the first harvest taking place towards the end of the year.

The pilot includes collating data and key learnings to identify the next best location for the team to apply the technology. Focus will predominantly be in regions where cotton agriculture is challenged by limited resources such as water, few solutions for pest control and limited success at growing extra-long staple cotton.

The Ministry of Planning, Finance and Industry (MOPFI) of Myanmar revealed that Eastern Development International (Myanmar) Co. (Dongzhan Textile Group), based out of China’s Jiangsu province, has proposed to develop a textile-based industrial cluster in the country.

As per Apparel Resources, the cluster will cost around $371 million. It will be set up in a major town in Sagaing Region which is an economic hub in Myanmar.

Eastern Development International (Myanmar) was registered in 2018 as a garment manufacturer in Myanmar.

According to the Myanmar Project Bank, the proposed project will comprise two phases on 356.47 acres of land in Sagaing and it’ll involve construction of around 17 garment and textile factories.

Phase I includes 12 new garment factories, knitting units, dyeing and printing facilities, down and feather units and residential buildings for employees.

Phase II will include construction of 5 garment factories, an embroidery factory, a carton factory and a polyester wadding unit.

The construction is expected to complete by 2030 and will create over 20,000 new jobs.

Compelled by the decree of the Italian Prime Minister, the 55th edition of Filo, scheduled for February 24-25, 2021 at MiCo – Milano Convention Centre has been canceled. The decree of the Italian Prime Minister, published on the 14th of January 2021, suspends – throughout Italy – trade-fairs, events and congresses at least until March 5, 2021.

Filo is the only international trade show focusing on products of excellence; a business platform which showcases high quality collections of yarns and fibres, produced by environmentally-friendly processes, and in accordance with ethical values.

Filo has been cooperating with ICE-Agency (Italian Trade Promotion Agency) for several years in a program that brings to the trade show a delegation of high qualified international buyers coming from countries (and markets) of particular interest for Filo exhibitors.

Global apparel industry reports and experts alike have highlighted the ongoing pandemic has given a huge impetus to comfort wear with sale of leggings, track pants, tees et al clocking in huge growth since March 2020. And even after restrictions have eased, loungewear sales have not slowed down, say retailers. As Sanjay Jain, CEO, PDS Multinational Fashions told Mint, demand has shifted from formal to casual wear. “Fashion designers are predicting a move from tighter, body-fitting fashion to more loose apparel. You and I are going to see more baggies.”

Numbers too reveal, loungewear sales continue to remain high. For PDS for example, in 2019 the division between casual and formal wear was around 75:25 it changed to 95:5 in post-Covid. PDS offers product development, sourcing, design and manufacturing services to top global brands and retailers like Superdry, Primark and Next, and supermarket chains like Walmart, Woolworths and Sainsbury’s. In 2019-20 alone PDS did business worth Rs 6,000 crore. As per Jain, formal wears space has been taken over by an increase in demand for athleisure, denim and loungewear.

Shifting focus boosts casual wear business

Even though casual wear was always popular however, the lockdown has given it added boost. The trend has caught on with brands and retailers looking at it as a huge opportunity. PDS expects demand for athleisure and denim to dominate this year. And Jain says the trend has shifted from causal trousers to denim. Before Covid, the split was 70 per cent (causal trousers) and 30 per cent (denim), but post-COVID it has reversed. T-shirt dresses and polos are also seeing good demand in Europe and North America. Sale of casual and formals shirts are down 30-40 per cent.

Similarly, footwear retailer Bata India is looking at casual apparel category as consumer focus shifts to athleisure. As Bata Shoe Organisation’s global CEO Sandeep Kataria says the company was testing its training and fitness apparel under the Power brand.

In fact, retailers are sceptical about formal clothing sales bouncing back anytime soon. Jain told Mint “The revival of formal wear is based on the assumption that the vaccine will have an impact, Covid will go away and you and I will go back to office. The trends are encouraging, but a structural shift has taken place. There is a realization that work from home is doable.”

On similar lines, Kataria feels post-Covid the culture of work from home will continue. Therefore, comfort wear will have a lasting impact. He says, Bata consumers are looking for casual footwear with comfort and casualisation driving trends.

Formal wear sales down but will pick up

Even though retailers do not expect formals wear sales to recover, any time soon, they are eyeing next spring/summer season and working on collections accordingly.

One big thrust during the pandemic is growing awareness about sustainability among consumers. Stakeholders in the apparel industry are now focusing on eco-friendly methods as the momentum picks up. Bata for example has factories with zero-effluent. Besides, some of its footwear brands such as Power use recycled tyres in its shoes.

While awareness about sustainability is growing costs are a concern for consumers, feels Jain. Sustainable raw materials are definitely more expensive. However, with time consumers seeking shopping choices in sustainable products will grow even as their wardrobes get smaller.

VF Corp released Q3 results that ended December 2020 of fiscal 2021 and raises full year fiscal 2021 outlook. The company’s revenue from continuing operations decreased 6 per cent to $ 3.0 billion, while active segment revenue decreased 9 per cent including a 6 per cent fall in Vans brand revenue.

Outdoor segment’s revenue decrease 5 per cent, which included flat revenue in The North Face brand. The work segment revenue increased 8 per cent including a 9 per cent rise in Dickies brand revenue.

As far as region-wise revenue is concerned, international revenue was flat, while Europe revenue increased 1 per cent. The Greater China revenue rose 18 per cent, which included a rise of 22 per cent in Mainland China. Its full year fiscal 2021 revenue is now expected to be in the range of $9.1 billion to $9.2 billion, reflecting a decrease of 12 to 13 per cent on an adjusted basis.

The agreement is expected to boost bilateral trade between India and Japan by enhancing India's textile and apparel export to Japan, the world's third-largest export destination. The MoU between the Textiles Committee, under the Ministry of Textiles, and the Nissenken Quality Evaluation Centre of Japan will formalise mutual interaction.

The Union cabinet in its meeting held in September 2020, had given approval for signing the pact. However, there are several challenges related to stringent quality standards for exports to Japan. Although the Indian textile ministry is confident the pact will help in creating awareness on various quality parameters being sought by the importers based in Japan and extending hand-holding support to Indian exporters to adopt and upgrade their technology.

The main objective of the pact is to provide required support to textiles trade and industry for ensuring quality as per the requirement of Japanese buyers through testing, inspection and conformity assessment, training and capacity building, research and development, and consultancy.

Both institutions have agreed to share and exchange relevant technical information and documentation on a regular basis and carry out activities related to standards, quality assurance norms.

They will also share joint research projects on testing and development of user-friendly tools for dissemination of data to the industry and facilitate sourcing across the textiles value chain from both the countries.

India and Japan signed a Comprehensive Economic Partnership Agreement (CEPA) in 2011 which inter-alia facilitates import of garments from India to Japan at zero duty. Despite CEPA, the growth in trade in textiles and apparel between the two countries has been moderate. Japan is third-largest importer of textiles and apparel in the world and India is sixth-largest exporter, and there is huge untapped potential for trade that remains unharnessed.

Coats is joining the group of world’s leading and most influential organisations, brought together by the Ellen MacArthur Foundation to demonstrate how the transition to a circular economy can be accelerated. The Ellen MacArthur Foundation Network is leading the transition to a circular economy which represents systemic change.

Coats developed Epic EcoVerde, the world’s first 100 per cent recycled premium sewing thread and continues to develop a range of products, which are made from recycled materials as a stage towards full circularity. It is also designing products to help facilitate circular processing within the textile garment industry.

As an Ellen MacArthur Foundation Network member, Coats will be joining events, workshops and other collaborative activities. It will be looking to how it can work with the textile industry, and also other industries within which it operates, to make products to be used more, made to be made again and made from safe and recycled or renewable inputs.