Sweden-based fast fashion brand H&M has entered the metaverse space by launching a new virtual store. The metaverse connects artists, athletes and other digital content creators with their fans in a virtual universe. Located in Ceek city, the new virtual H&M store allows customers to roam around and buy clothes. However, these garments can only be bought with the Ceek currency and are available for trial in the digital world only, as per a Lifestyle Asia report. In this world, all the payments will be made through CEEK coin -- a metaverse coin project built on the Ethereum blockchain.

Additionally, one can also buy these clothes from the physical store using Ceek currency. The apparel bought in the metaverse will be worn by digital avatars in the synthetic universe. Customers would soon also have an option to purchase these clothes from physical stores across the globe soon. With this store, H&M became the first metaverse clothing retail store in the metaverse

US lifestyle and clothing retailer American Eagle Outfitters has acquired Quiet Logistics for $360 million. The move will help the company to strengthen its control over its supply chain. As per an Apparel Resources report, the deal will make Quiet Logistics a wholly owned subsidiary of American Eagle Outfitters. However, the logistics firm will continue to run its business independently.

The acquisition will support American Eagle Outfitters’s continued growth, while also driving economies of scale as it expands its customer base to other brands and retailers seeking advanced logistics capabilities.”

American Eagle Outfitters Inc. operates 901 American Eagle stores, 175 Aerie stores and 2 Todd Snyder stores in the US, Canada, Mexico and Hong Kong. In 2020, the company’s revenues totaled $3.759 billion.

Goodmove’s new collection includes a front-adjusting sports bra. This comes with innovative cup technology and front adjusting velcro straps for maximum support and a custom fit. The brand also stocks women’s padded reflective running jackets and orange anoraks for men. Highlights of the range include squat-proof leggings introduced in new prints.

Goodmove is a sportswear brand of Marks & Spencer that sells 1.6 million items annually and is the market leader for full price women’s activewear. Launched in January 2020, Goodmove expanded into men’s and children’s wear in January 2022.

Goodmove available at all M&S stores, has grown to become its biggest in-house brand. The growth of the brand has come as the wider M&S offer has pivoted towards casual wear and the Goodmove line-up now includes 275 products across women’s wear, men’s wear and children’s wear run by a strong team of experienced designers, buyers, merchandisers, and technologists.

Activewear is a key strategic focus for M&S, with the market now seeing 35 per cent growth over the last two years. M&S is continuing to maximise the strength of its own brand product: consistently focusing on everyday style and value, zeroing in on product categories that matter most to customers and developing unique in-house brands.

An essential component of clothing, garment labels were first introduced in 1963. Earlier labels were not standardized and contained no information about the garment’s source and fiber content. However, New Age organizations and brands are launching labels incorporating the required data.

Such organizations are offering consumers the required information on garments, says a report by Avery Dennison, a multinational label manufacturer, and the Global Web Index, an audience targeting company. The labels created by them are boosting garments repairs, recycling, resale and rental exchange, adds Jason Mander, Chief Research Officer. These brands are also using ID-level tools to fuel resale especially in the luxury resale market.

New technologies for transparent labeling

Brands can also use new technologies to make garment labels more transparent and traceable. Avery Dennison uses QR technology in its Digital Care Label hangtags. It partnered lifestyle brand UpWest and an apparel and footwear recycling-focused organization, ReCircled, to educate consumers about the end of life of their product. The brand’s products are structured with a view of their end-use to consumers, says Debbie Shakespeare, Senior Director-Sustainability, Compliance and Core Product Management, Avery Dennison.

In May 2021, Avery Dennison had partnered digital care label of science R&D company Ambercycle to educate consumers on new ways to convert end-of-life textile waste into new yarns for apparel brands and manufacturers. The collaboration is expected to not just improve visibility to the supply chain but also provide data relevant for reselling and recycling garments. This will benefit not just the product’s direct consumers but also secondhand buyers and recyclers.

Information on recycling and reuse

Aiming for garment labels standardization since 2013, the European Union launched the most influential consumer-facing reporting system. Known as Product Environmental Footprinting (PEF), the project will help brands determine future purchase choices of EU consumers.

However, provided information will be based on faulty Higg Index, which does not take into account the recycling and reuse benefits of natural fibers, says Harriet Vocking, Chief Brand Officer, Eco Age, which leads ‘Make the Label Count,’ campaign that aims to reform the issuance of PEF certificates by the EU. Hence, brands need to incorporate labels providing complete and accurate information on the garments instead of misleading consumers.

Implemented on January 1, 2020, the two trade agreements; Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA) are expected to boost the country’s economic growth in the post-COVID-19 pandemic era. As a Xinhua net report says, RCEP is a mega trade pact between 10 ASEAN member states and its FTA partners, namely China, Japan, South Korea, Australia and New Zealand. The agreement aims to eliminate around 90 per cent tariffs on goods traded between signatories over the next 20 years. On the other hand, CCFTA will increase the proportion of zero-tariff products in the goods traded between Cambodia and China to more than 90 per cent for both countries.

Together, the two trade deals will boost Cambodia’s exports and attract more foreign investment in the country, says Penn Sovicheat, Undersecretary of State, Ministry of Commerce, Cambodia. They will also offer great access to the Chinese market and encourage Cambodia to explore other RCEP markets.

Accommodating interests of all parties

Covering a region with about 30 per cent of global GDP, RCEP is a high quality, comprehensive and reciprocal mega-regional trading agreement. It accommodates the interests, conditions and priorities of all the involved countries. Cambodia will benefit from the agreements as they will bring in more investments to the country, says Anthony Gill. Country Director, Asian Development Bank (ADB)

Traditionally, known for its garments, travel goods and footwear exports, Cambodia has recently witnessed high growth in agriculture and other high-value products. Both agreements will help Cambodia expand agriculture production, agro-processing for exports, and non-GTF manufacturing. It will also offer opportunities to further promote the tourism sector to FTA partners, i.e. China, Japan, South Korea, Australia and New Zealand, adds Gill

Textile production to become cheaper

As per Enjoy Ho, Deputy Chairman, Garment Manufacturers Association in Cambodia, the two deals would enhance development in Cambodia's textile and garment industry and make production cheaper. They would also attract more Chinese investment in the country, enriching its product structure, adds Ho Kin Phea, Director-General, International Relations Institute at the Royal Academy of Cambodia opines, both RCEP and Cambodia-China FTA will accelerate Cambodia’s trade volume, boost forex reserves and will help rebuild its economy during the post-COVID-19 era.

Robust outlook for the future

Aun Pornmoniroth, Economy and Finance Minister projects, Cambodia's economy will grow 4.8 percent in 2022, while its GDP will increase to $30.5 billion. The kingdom's per capita GDP is forecast to increase to $1,842 in 2022 while the inflation rate is estimated to drop to 2.8 percent in 2022 from 3.4 percent in 2021.

The ADB projects Cambodia’s economy to grow by 5.5 per cent in 2022 thanks to the noticeable progress of the COVID-19 vaccination rollout. Government must continue to strengthen social protection systems and improve healthcare in the country to increase people’s well-being and sustain growth, adds Gill.

With thousands of employees quitting their jobs, 2021 proved to be an ‘unprecedented’ year for the textile and garment industry in Vietnam, says Cao Huu Hieu, General Director, Vietnam National Textile and Garment Group. Around 94 per cent of the Viet Tein Garment Corporation’s employees quit their jobs during the year. Many other firms had to stop production due worsening COVID-19 situation in the South.

The industry was particularly hit hard during the third quarter, says a VN Express International report. During the quarter, Ho Chi Minh City and Southern provinces witnessed massive disruption due to COVID-19. This compelled businesses to adopt ‘stay at work’ model for employees. The garment and textile industry faced enormous pressures in Q2 and Q3, 2021 as logistics and other costs increased, there were raw material shortages.

The pandemic forced many businesses in the Southern region to either close temporarily or operate at half capacity. This led to a fall in textile exports turnover by nearly 16 per cent in September compared to July, and the downward trend continued till the end of year.

Market reopening helps achieve targets

Relaxation of prevention and control measures in October provided some relief as the US, the European Union and Japan markets reopened, allowing Vietnam’s industry an opportunity to grow once more. Around 90 per cent employees returned to work after reopening, says Hieu. Production in the country returned to normal in Q4. This helped the industry meet its target of $39 billion exports during the year.

The US continued to be the largest market for Vietnam’s textile and garment sector with exports worth $16 billion in 2021. Other markets included, the EU with $3.7 billion, up 14 per cent; South Korea $3.6 billion, and China $4.4 billion in exports.

Growth in the midst of pandemic

Despite pressures, few companies in Vietnam experienced impressive growth amidst the pandemic. For example, Vietnam National Textile and Garment Group’s consolidated profits more than doubled in 202. The company succeeded on account of its business restructuring which boosted revenues and profit growth to 50-55 per cent.

Another company that experienced growth during the period was the TNG Investment and Trading Joint Stock Company (Thai Nguyen) Nguyen Van Thoi, Chairman, TNG Joint Stock Company (Thai Nguyen) points out the company remained operational during the pandemic as all factories are concentrated in Thai Nguyen Province. The company also benefited from shifting textile and garment orders to Northern plants.

Experts advise caution

Despite these successes, industry leaders have advised caution as a spike in Omicron cases may again affect business goals. The industry also needs to reduce logistic costs, make empty containers available, resolve congestion issues in sea transportation and other shipping difficulties, changes in major markets. The pandemic is expected to remain complicated and unpredictable in 2022. However, the industry may also experience few growth opportunities, says La Tien Troung, Chairman, Vinatex. In 2022, Vietnam’s garment and textile exports may rise to 43.5 billion, adds VITAS. However, new COVID cases, increased logistic costs and increasing competition from India, China and Bangladesh, could dampen growth.

Merchandize exports from Bangladesh have surged in the last one and half years due to a stunning rebound in the export of woven garments, driven by rising demand and inflow of increased orders. As per a Daily Star report, export of woven garments started recovering from August after going through more than 10 per cent negative growth for 18 months. In August, woven exporters fetched $1.15 billion, registering 4.48 per cent year-on-year growth.

In December, Bangladesh exported woven garments worth $1.86 billion, the highest in a single month and up 48.17 per cent year-on-year, according to data from the Export Promotion Bureau. In the second half of 2921, the shipments of woven garments grew by 24.30 per cent to $8.74 billion compared to the same period a year ago.

Desh Garments, the country's oldest garment factory’s 75 per cent business was non-existent up to June 2021 as international retailers and brands were not placing adequate orders. Shipment started picking up gradually from June with the reopening of economies worldwide. And at the end of 2021, export receipts from shipment of woven shirts witnessed 60 per cent growth.

Shahidullah Azim, Managing Director, Classic Fashion says, international retailers and brands are placing a lot of work orders for woven items. However, manufacturers may have to rely on Chinese suppliers for the rest of the fabrics. Faruque Hassan, President, BGMEA is hopeful about the continuation of the current pace of exports as work orders have not been cancelled or suspended because of Omicron. However, European and American buyers, retailers and brands are likely to shut their outlets if the situation worsens.

Another challenge is abnormal hike of freight charge, which increased as high as 500 per cent. The price of raw materials such as yarn surged in 2021, affecting the garment shipment. Knitwear exports maintained more than 15 per cent growth during the peak of COVID-19 as people were confined to homes in many countries because of stay-at-home orders.

The Commerce Ministry of Pakistan has been compelled to withdraw its Textile and Apparel Policy 2020-25 due to the finance ministry’s harsh conditions on new fiscal incentives. The policy has already been approved by the ECC and ratified by the Cabinet, according to the Business Recorder.

The Finance Ministry had said, the government is consistently supporting the export sector. During last three years, an estimated Rs 115.5 billion were disbursed to zero-rated sectors under DLTL schemes to textile exporters and over Rs 100 billion were given as power and gas subsidy. Further concessions included taxes and duty-free import of raw material and machinery, and market determined exchange rate and subsidized financing by the State Bank of Pakistan (SBP) were provided.

However, exports of five zero-rated sectors registered negative growth in 2019-20 vis-à-vis 2018-19 and annual cumulative growth rate remained 6 per cent in the last three years. Finance Division argues it is imperative for the Commerce Ministry to take a holistic picture of the unprecedented support and outcome thereof for informed decision making by the ECC/Cabinet.

From January to November end 2021, Egypt’s readymade garment and apparel exports increased by 38 per cent, according to the Marie Louise, Head, Readymade Garments Export Council of Egypt (RMGEC). Exports amounted to $1.7 billion, compared to $1.3 billion in the same period of 2020. Exports to the US were highest during the first 11 months valued at $1.04 billion compared to $726 million in the same period in 2020, an increase of 44 per cent. Additionally, exports to Europe increased 3 per cent to record $320 million in 11 months of 2021, compared to $310 million in the same period last year. Exports to Arab countries increased 128 per cent to $235 million, compared to $83 million in 2020.

Louise explained T-shirt and polo shirt exports jumped 34 per cent during, to record $455 million, compared to $339 million, followed by sportswear, which increased by 102 per cent to $24 million, compared to $12 million. Trousers exports also increased 179 per cent to $49million, compared to $18 million. She noted exports hike came with the Council’s continued efforts in various events, as well as direct communication with the state agencies concerned with the export file to overcome all obstacles facing readymade garment exports.

Praising the Goods and Services Tax Council’s decision to poste GST hike on textiles, clothing and hosiery trade bodies have urged the government to scrap the proposal altogether. Devendra Kumar Baid, Secretary, West Bengal Garments Manufacturer’s & Dealers Association says, it plans to maintain pressure to abolish the proposal altogether to avert huge job losses.

The GST Council had planned to raise GST rates on numerous categories of clothing and textiles from 5 per cent to 12 per cent from January 1, 2022. However, following pleas from state governments and trade bodies, the Council deferred the ruling to avoid lakhs of job losses numerous organizations and politicians said it would lead to.

K B Agarwala, President, Federation of Hosiery Manufacturers Association of India, says, the tax hike would have caused a huge impact on the sector as it could not have absorbed the hike. The organized sector would have collapsed ad the government would have lost revenue with the strong emergence of a parallel economy to bypass the tax.