The National Textile University (NTU) recently launched the ‘Pakistan Textile Portal’ to facilitate the sector’s growth. As per Business Recorder, the portal was inaugurated in Faisalabad Chamber of Commerce & Industry (FCCI), in a simple ceremony, Atif Munir Sheikh, President, FCCI underlined the importance of the textile sector in the national economy and said that Faisalabad is the iconic representation of the textile sector.

He urged industrialists and businessmen related to the textile sector to switch from traditional textile to technical textile and in this connection NTU could also extend its services. Hafsa Jamsheed added, registration on the portal is totally free and will help the SME sector to showcase their products by uploading detailed information about their quality brands with their capacity of manufacturing. She urged the government to hold awareness sessions to popularize this portal and convince exporters to avail this free facility.

She said other related organizations could also be encouraged to arrange awareness sessions while its scope would be expanded gradually up to Pakistan and then throughout the world. She urged for the translation of information provided on this portal into multiple languages to ensure its acceptability in different regions and countries. She said that this portal could also be utilized for B2B and B2C negotiations and transactions.

Leading US fashion brand, Ralph Lauren has launched a new fabric that has Intelligent Insulation properties. As per a Textile Today report, the temperature-responsive fabric adjusts to cooler temperatures by extending and forming a layer of insulation that will be worn by Team USA for the Winter Games Opening Ceremonies. The technology was launched in partnership with textile innovation company, Skyscrape. It will be launched at the Team USA’s Opening Ceremony Parade Uniform.

The Intelligent Insulation technology extends the lifespan and usage of apparel. It makes the apparel suitable for all three seasons, and for all indoor and outdoor conditions seamlessly.

The technology adapts to differences in air temperature around the wearer without the help of battery-powered or ‘wired’ technology. The material itself is comprised of two different materials that extend or contract at various rates in response to temperature differences.

At the association’s annual general meeting held recently, Sharad Amalean, Chairman, MAS and JAAF, called for intensive dialogue and greater stakeholder collaboration to resolve the current forex crisis. He also urged stakeholders to reform laws for a more sustainable medium-long-term trajectory for Sri Lankan apparel. Commending the resilience shown by the sector in the face of an unprecedented pandemic and outlined measures, Amalean said, the sector aims to achieve its exports target of $8 billion by 2025, while maintaining GSP+ and enhancing bilateral trade.

Last year Sri Lanka exported apparels worth $5 billion amidst various challenges. However, there are still many obstacles ahead, Amalean added. It is essential for all stakeholders to act with unity, and continue to engage in dialogue with authorities on issues pertaining to foreign exchange and the adoption of regulations that can ensure sustainable growth for our vital industry, he emphasized.

Amalean also emphasized on the need to enhance Sri Lanka’s bilateral trade by engaging with regional partners and associations to enhance trade relations. The securing of a GSP+ extension beyond 2023 will be absolutely critical for the growth of its industry, he added.

Outgoing chairman A Sukumaran, noted the industry is likely to face continuous supply chain disruptions over the coming year, making the need for continuous engagement across industry stakeholders an essential pre-requisite to developing long-term solutions to the industry’s current and future challenges. Metakeys: Sri Lanka, JAAF

To stimulate deep processing, production and export of finished products with high added value by textile and clothing knitwear enterprises, Uzbekistan has issued a presidential decree to establish the Textile Industry Support Fund. The decree mandates several steps from February 1, 2022 to January 1, 2025. As per the decree, enterprises implementing projects for production of dyed fabric, mixed and dyed fabric products in the Republic of Karakalpakstan and regions will get a subsidy of 10 per cent of the cost of equipment purchased under these projects, but not exceeding the equivalent of $500,000.

Enterprises that purchase equipment for the production of dyed fabric, mixed and dyed fabric products, as well as yarn, in which man-made fibers account for more than 80 per cent, will be offered loans in foreign currency to pay a 15 per cent initial payment for up to seven years, including a grace period of three years.

Enterprises exporting dyed fabric, dyed fabric and ready-made garments and knitwear will be provided with loans in foreign currency in the amount not exceeding 3 million US dollars for a period of up to 1 year, including a grace period of up to 9 months;

Enterprises earning from the sale of dyed fabric, finished garments and knitwear, including through a commission agent, and whose share of exports of these products is at least 80 per cent, will be granted the right to pay a social tax at a of 1 per cent and deferral of debt repayment on property tax of legal entities for up to three years, according to Uzbek media reports.

According to the decree, it is necessary to extend the terms for the State Fund for Support of Entrepreneurship until January 1, 2024 to provide compensation and guarantees for loans received by exporters in commercial banks for pre-export financing, and also to extend this procedure to all exporting enterprises.

India’s imports of Supima cotton from the United States increased last year to 219,360 lakh bales from 1.74,822 bales in 2020, owing largely to leading US brands shifting their garment sourcing to India from China. Bruce Atherley, Executive Director, Cotton Council International (CCI) believes, brands are becoming more responsible in their sourcing strategies as sustainability and transparency are no longer optional. Leading brands are mapping their supply chains all the way back to spinning mills and looking for reliable supply chain partners.

Peush Narang, CCI Country Representative-India and Sri Lanka, adds, the Indian textile industry is at a critical juncture thanks to its growing cotton imports. India's textile exports have been brisk as a result of rising demand and government support. Between April and December 2021, India’s textile and apparel exports increased by 41 per cent to $29.8 billion, up from $21.2 billion in the same period last year.

From April-December, India’s textile sector's exports, including textile, apparel, and handicraft, increased by 15 per cent year on year. Exports of cotton yarn, fabrics, made-ups, and handloom products increased by 43 per cent year on year during the period, while jute product exports increased by 33 per cent. In December, India’s textile exports increased by a record 37 per cent year on year to $37 billion, the highest-ever monthly exports achieved so far. In the same period last year, exports totaled more than $27 billion.

Steve Lamar, President and CEO, AAFA has urged garment manufacturers in Karnataka to immediately clear the minimum-wage increase pending since April 2020. In a letter to the Clothing Manufacturers Association of India (CMAI) Lamar said, pending dues need be paid by March 2022 nearly two years after the government raised the so-called variable dearness allowance, which is based on the rate of inflation, to 417 Indian rupees ($5.56) per month. Over 400,000 workers are waiting to receive wages surpassing $55 million, as per estimates by the Workers’ Rights Consortium.

Owners of more than a thousand factories argue, however, they’re not liable for the hike, since the labor ministry issued a proclamation suspending the minimum-wage increase after COVID-19 started ravaging the country. They’re also appealing a decision by the High Court that the postponement was illegal and that manufacturers are required to pay the correct wage, plus all compensation previously owed. The CMAI did not immediately respond to a request for comment.

The Karnataka Garment Workers Union (KOOGU) has appealed to brands sourcing from the region to join workers and factories in collective bargaining talks with Shahi Group, India’s largest garment manufacturer, and others.

To push India’s apparel exports, AEPC is targeting new markets like Latin America, Australia and Israel. The council is also actively engaging with Indian missions to explore export opportunities for the sector, says Narendra Goenka, Chairman. In 2022-23, AEPC expects India’s apparel exports to reach $19 billion. It is also trying to create a brand India image for sustainable growth, Goenka adds.

Goenka says, production-linked incentive (PLI) scheme for man-made fibers and technical textiles will help attract investments and push domestic manufacturing and in turn exports from the country. FTAs with countries like the UK and the UAE will also boost India’s apparel exports, adds Goenka.

Goenka, feels the biggest hurdle in the growth of India’s apparel imports are raw high material prices and the removal of import duty could reduce these prices considerably, helping India’s apparel exports reach $20 billion in fiscal 2022-23 He has urged the government to reintroduce the duty-free facility for importing trimmings and embellishments that foreign buyers demand from outside India. He believes, besides removal of import duties, India also needs to build additional production capacity and promote brand India as there is good demand in the export market. It needs to create a brand India by promoting exports in the international market.

Pakistan’s textile exports are expected to grow 40 per cent to $21 billion in the 12 months period ending June 2022, says Abdul Razak Dawood, Commerce Advisor to the Prime Minister. He expects exports to further expand to $26 billion in the next fiscal year.

Textiles amount for about 60 per cent of Pakistan's exports. The textile industry is one of Pakistan’s few economic bright spots. Hence, the country allowed its textile factories to open ahead of India and Bangladesh when the pandemic began back in 2020. This led to them drawing orders from global brands including Target Corp and Hanesbrands Inc.

Moreover, the government also plans to announce a proposal next month to provide incentives for exports to new markets such as Africa, South America and Central Asia, Dawood adds. Ahfaz Mustafa, CEO, Ismail Iqbal Securities, adds, Pakistan's exports have become competitive over the past few years due to the fixed energy tariff regime and quick refund of money to exporters.

Pakistan is looking to increase exports to get out of regular boom-bust economic cycles. It is intensifying trade with Central Asian nations by signing agreements and allowing free movement of trucks. In the last six months, Pakistan’s trade has grown to $120 million from $14 million of the entire previous year, adds Dawood.

Dolce & Gabbana has decided to discontinue using animal fur in all its collections from 2022. The brand will continue to collaborate with master furriers, guardians of specific knowledge and skills to create eco-fur garments and accessories, a sustainable faux fur alternative that uses recycled and recyclable materials”.

The Italian luxury label’s new policy is supported by the Humane Society of the United States and Humane Society International, in accordance with the guidelines of the Fur Free Alliance. Fedele Usai, Group Communication & Marketing Officer says, Dolce & Gabbana is working towards a more sustainable future that can’t contemplate the use of animal fur. The brand will integrate innovative materials into its collections and develop environmentally-friendly production processes, while at the same time preserve artisans’ jobs and know-how otherwise in danger of fading”.

More and more luxury labels have axed real fur as a trim or main material in recent years but few make such a strong commitment to working with furriers on faux fur alternatives.

Showing their solidarity with small sellers in India, Reliance Industries recently urged the Union government to introduce stricter norms to treat small sellers indiscriminately against e-commerce biggies Amazon and Flipkart. For years, global e-commerce marketplaces Amazon and Walmart have been discriminating against smaller players by onboarding sellers with larger market share on their platforms. To discontinue this practice, the government passed a regulation in 2016 disallowing any seller from having more than 25 per cent sales on an ecommerce platform.

Government steps up norms to end foreign dominance

In 2019, the government had passed a law disallowing ecommerce platforms from owning significant stakes in seller firms. This led to Amazon reducing its stake in Prione, the parent of Cloud tail to 24 per cent. In 2021, the American e-commerce company acquired a few shares of Catamaran Ventures, which owns a 51 per cent stake in Prione.

If Amazon acquires Catamaran completely, it would automatically own 100 per cent of Prione. However, according to new government regulations, global marketplaces cannot own stakes in seller companies. They are confronted by domestic retailers including Reliance and Tata. Currently, Amazon and Walmart own 90 per cent of the Indian e-commerce market. This kind of market share is not available to them even in their home country. The e-commerce markets of most countries are dominated by domestic retailers.

Hence, Indian conglomerates are desperately trying to reduce the share of American retailers. Their argument about giving sellers a level-playing ground is actually an excuse to oust global biggies from the domestic market, points out a leading consulting company.

Stricter norms for foreign e-commerce companies

Policymakers too are helping protect Indian e-commerce market by introducing stricter norms for foreign companies. They have debarred MNC companies from retailers their own brands on marketplace.

However, Amazon and Flipkart continue to hold stakes in certain home care, personal care and other brand categories. These brands have not yet been identified by regulatory bodies, says retail expert. Amazon and Walmart have also picked up stake in various Indian companies through their investment arms. For instance, Flipkart owns a minority stake in Aditya Birla Fashion while Amazon holds a share grocery retail chain, More and Future Group.

Network to standardize onboarding on retailers

To deal with these discrepancies, the department for promotion of industry and internal trade (DPIIT) is building an open network for digital commerce (ONDC). The network aims to not just curb digital monopolies but also standardize the onboarding of retailers on ecommerce sites.

Recently, many direct-to-consumer brands decided to quit Amazon and Walmart marketplaces as their brands were not being given fair treatment. Many of these brands complained about the higher transactions fees on the platform to ensure brand visibility and customer interaction on the platforms. They had to pay 40 per cent commission to sell their products on the platform besides incurring advertising costs. Though, many of these brands have shifted focus to D2C market, they may not be able survive due to dominance of Amazon and Flipkart in the Indian e-commerce market.

Hence, retail biggies like Reliance and Tata Group are using lack of level playing field as a pretext to oust Amazon and Flipkart, as per a retail industry expert. How they succeed in their venture and how Amazon and Flipkart hold ground against Indian competitors, needs to be seen.