In April’20, the Lithuanian Association of Clothing and Textile Companies (LATIA) predicted one third of its clothing and textile companies would go bankrupt and a quarter of people would lose their jobs. The association welcomed the government’s post-quarantine assistance measures, in particular the subsidies provided to these sectors for up to six months. However, to maintain sustainable jobs, the share of these subsidies needs to increase, especially in the fifth and sixth months, viewed Kestutis Dauksys, President, LATIA. In addition, export guarantees and support for companies with over 250 employees also needs to be increased, he added.

Consumption decline leads to loss of export orders

COVID-19 restrictions have severely impacted apparel and textile production volumes in Lithuania. The country exports around 80 per cent of its textile and apparel products to Europe. In 2019, its tailors sold 70 per cent of their products to five European countries namely Germany, Sweden, the United Kingdom, Denmark and Norway. Decline in consumption in any of these markets results in reduced orders for Lithuanian clothing manufacturers. The pandemic has caused a significant decline in clothing consumption in Germany which has adversely impacted the performance of many Lithuanian clothing and textile companies.

A shift to casual clothing and other market

To deal with this situation, LATIA members urge textile and clothing companies to diversify their activities. Vidas Butkus, Head, Kauno Baltija AB recommends a shift to casual wear which is currently in high demand. The company currently produces certified work and medical clothing. It has also diversified exports from Scandinavia to Germany.

The pandemic has neither affected the volume of work for Omnitekas UAB nor its income. Though the company recorded 20 per cent sales decline in the first half of this year, it aims to stabilize operations by diversifying to new markets and products. It focuses on customers’ needs and opportunities and plans to launch its Autumn collection depending on the weather and pandemic situation.

Cambodia is preparing a five-year (2020-2025) development strategy for the garment, footwear and travel bags sectors from to promote their competiveness, according to the ministry of economy and finance (MEF). The sectors are now facing some challenges that require more development and competitiveness by the end of 2025, said Aun Pornmoniroth

This strategy will set out a vision to transform Cambodia’s garment, footwear and bag industry into a high-value, supportive, diversified and more competitive industry.It will continue to strengthen human resources, increase productivity and create business lines for workers.

It will as well as continue to improve working conditions and the welfare of workers, promote direct domestic and international investment in value-added products, attract investment in industries that support the sector and promote export market diversification, according to the brief draft.

The strategy aims to set common development directions, increase independence, strengthen the appraisal and stability of the garment, footwear and bags sector to further promote the sector’s sustainability and environment.

VF Corporation is working with suppliers to minimize COVID-19 disruptions. Majority of the company’s vendors have resumed operations with full compliance to government rules. The company has opened all stores in the APAC region, including Mainland China, which re-opened during the first quarter while in the EMEA region, 90 per cent stores re-opened during the same period. In North America, 75 per cent of all retail stores opened by the end of the first quarter. Additional stores have re-opened since the end of the quarter, partially offset by over 120 retail stores that have since temporarily re-closed due to localized resurgence of COVID-19 outbreaks and resulting Government action and public health advisories.

VF Corp has announced the financial results of the first quarter ended on June 27, 2020. Revenue from continuing operations fell 48 per cent to reach $1.1 billion while revenue from the active segment revenue decreased 54 per cent and outdoor segment revenue slumped 44 per cent, including a 45 per cent decrease in The North Face® brand revenue.

The only positive aspect in this result was an increase of 78 per cent in digital revenue. Overall, international revenue decreased 39 per cent. While revenue from Europe was down 48 per cent, Greater China revenue was flat. The company also expects second quarter’s revenues to decline to 25 per cent.

To offset the effects of COVID-19 and shape the future of denim in the country, Turkish denim mills are turning to new innovative digital solutions, says Tricia Carey, Director-Global Business Development, Lenzing. Foremost amongst these is Orta Anadolu which recently launched a new sales kit featuring concept boxes with a fabric swatch and information card that includes a QR code. Users can scan the code on their mobile device and be taken directly to the fabric’s wash gallery to see exactly which washes are available for the specific material, as well as the Lifecycle Assessment (LCA) of the garment.

Similarly, Calik Denim has doubled down on its mobile app to include both a video and content component. Users can turn to this app for videos on each of the mill’s concepts as well as the latest news surrounding the denim industry. The company, which currently operates at 60 per cent capacity, has seen an uptick in online business. Likewise, Bossa, which operates at 70 per cent capacity, is collaborating with partners to help its business recover from the pause and spread positivity. The mill now receives new payments and orders regularly.

Texworld USA and Apparel Sourcing USA hosted its inaugural digital event from July 21-23, 2020 at the Javitts Centre in New York. Organized by Messe Frankfurt North America, the event attracted visitors with its innovative approach. Almost 4,000 visitors attended the event. Jennifer Bacon, Show Director- Fashion and Apparel, Messe Frankfurt North America, also noted a 20 per cent increase in attendance of industry professionals from 93 countries over previous shows for its global presence. In the virtual space.

Texworld USA vendors found the virtual show to user-friendly and an efficient way to tell buyers about their products. Design Knit Inc, a Los Angeles–headquartered textile knitting mill, exhibited new fabrics and sustainable textiles, while Fashiondex’s Local Loft provided attendees with fabric and apparel manufacturers providing nearshore-sourcing opportunities. Max Andrew, President, Local Loft noted the presence of emerging designers starting off with an ecologically sound or ethical mission.

David Prentice, Co-Founder and Senior Vice President, OnPoint Manufacturing opined that the virtual model would provide great accessibility to fresh designers. Smaller exhibitors also welcomed the shift to a more-affordable show option. Ben Hostetler, Operations Manager, Mountain Meadow Wool, found that he spent about 10 times less to exhibit at the virtual show. He connected to buyer meetings at an office at his mill, which allowed his mill colleagues to help conduct meetings, an impossible option for a trade show in New York.

Lori Wyman, the representative for North America at the Global Organic Textile Standard, felt the event was organized well and afforded useful tools to connect with attendees.

The organizers of Kingpins Show aim to build digital denim supply chain platform through an agreement with Material Exchange, which has created a sourcing database with nearly 20,000 digital materials from the biggest suppliers around the world.

With an aim to push the denim industry to evolve and behave responsibly, Kingpins has always relied on its physical shows in New York, Amsterdam, Hong Kong and China to bring its mix of vetted and selected supply chain partners and its invite-only guests together around the globe.

The platform’s first foray into providing digital solutions for exhibitors and attendees was Kingpins24, an online event featuring live-streamed content, webinars, interviews, panels and product demonstrations. Its new agreement with Material Exchange represents the next step in the process to complement Kingpins’ successful in-person events with new digital solutions.

The new digital supply chain will allow Kingpins exhibitors to showcase textiles to denim brands year-round. It will create new opportunities for business and build new ways for brands to conveniently source denim fabrics from Kingpins’ exhibitors. Through this supply chain, the organizer aims to provide denim brands with tools to be able to source denim and denim related fabrics instantly, view detailed product data online and help buyers make informed decisions about the materials needed for product design and creation process.

Apparel Retailers in America are reopening stores in accordance with the guidelines issued by the National Retail Federation (NRF). In addition to plexiglass dividers at the cash wrap stations, retailers have made floor markings in their stores to help everyone maintain social distancing.

Apparel retailers are also ensuring the provision of masks for workers and customers and maintaining social distancing between people in the store. Some of them are limiting their store hours to maintain a balance between meeting customer demand and giving their employees sufficient time to receive inventory and keep the store clean and organized. In some cases, retailers are also reconsidering the layout of areas of their stores where sales associates and customers are most likely to come in close contact, such as entrances, cash wraps and fitting rooms.

They are also introducing new practices for the dressing area, including wiping down fitting rooms after each customer and moving any garments tried on but not purchased to the back room to be steamed and then left overnight before returning them to the sales floor.

Lord & Taylor and Tailored Brands have joined the list of retailers aiming to restructure their operations in the wake of COVID-19. Lord &Taylor has been struggling due to a shift in consumer habits from offline to online shopping. In its bankruptcy filing, the company listed assets and liabilities between $100 million and $500 million. Tailored Brands, which operates Men’s Warehouse stores, also filed for Chapter 11 bankruptcy and announced plans to shut as many 500 of its stores.

A company that files for Chapter 11 bankruptcy under US law usually continues operating by reorganizing its business and payments to creditors. This year, two major US department stores, JC Penney and Neiman Marcus also filed for Chapter 11 bankruptcy in May. Major clothing brands have also sought reorganization through bankruptcy. The more-upscale Brooks Brothers sought Chapter 11 protection last month, as did the parent company of women’s fashion brands Ann Taylor and Lane Bryant.

Other sectors have also been hit by the changing habits of consumers, with lockdown orders stifling travel and forcing places like restaurants and gyms to temporarily close their doors to try to stop the spread of the virus. Rental car giant Hertz, gym chain 24 Hour Fitness and Gold’s Gym and vitamin and supplement retailer GNC also filed for bankruptcy.

Coterie, a traditional women’s fashion and accessories tradeshow, held biannually in New York City, plans to launch its online edition in September. The action is the result of a partnership between Informa Markets, which organizes the event, and the NuOrder platform, a B2B e-commerce specialist, which has 500 thousand retailers and 2 thousand brands.

The virtual show will be an extension of the tradeshow, offering brands the opportunity to exhibit and interact with buyers. In addition to displaying their catalog, the show will also provide a 360-degree showroom to participating companies.

The show will run for two months and will be joined by 500 thousand retailers. Supported by the Texbrasil Program, Coterie is used by brands such as Joulik, Haes, Skazi, and Patbo to exhibit their spring/summer and autumn/winter collections at its two editions.

Bangladesh fashion companies like Aarong, Sailor, Yellow, Twelve, Klubhaus, SaRa, Infinity, Mbrella, Smartex, Cats Eye, Anjon’s, Bibiana, Kay Kraft, Rang, Shadakalo, Nipun, Deshal, Shoishob, Bishwo Rang, La Reve etc launched their new online collections after Eid-ul-Fitr to protect demand, trust of the fashion lovers and brand image.

While the collection of Sailor is oriented with washed, printed and embroidered designs and smooth layering fashion, Yellow’s summer collection speaks of vivid colors and pretty prints. Thinking about the intense heat, SaRa’s collection will be dominated by cotton fabrics, south Asian motif prints and Minimi style. The brand produces knitted mask with good filtration capacity. ‘Bishwo Rang’ brings some pattern innovations along with tie-dye, batik style while Twelve has introduced Equal Monthly Instalment (EMI) facility for the first time in Bangladesh.

These fashion houses are also emphasizing on easy browsing with attractive offers and reasonable prices along with store sales. They take orders from web and Facebook fan page too. Motiur Rahman, Assistant Director of SaRa Lifestyle revealed the brand’s online business has boomed by about 30-40 per cent in the last four months. Azharul Haque Azad, Managing Director, Sadakalo said it is organizing an online fair being participated by almost all fashion houses. These fashion house leaders believe it may take several months for fashion lovers to go to the store spontaneously, even if the shopping malls are opened in compliance with the hygiene rules.