Drawing on technological expertise developed in the sportswear world Cifra has created Warp Mask, an exclusive generation of anti-viral garments and accessories made using Q-SKIN powered by AMNI VIRUS-BAC OFF. As per a Knitting Industry report,the innovative polyamide yarn, developed in the Solvay Group’s research laboratories, is distributed and produced in Europe by Fulgar, which for several seasons has worked with Cifra to create cutting edge clothing solutions.

Q-SKIN powered by AMNI VIRUS-BAC OFF is effective against bacterial growth and virus transmission, thanks to the antiviral and antibacterial agent permanently incorporated into its polymer matrix, Fulgar explains. Electrical affinity with the proteins in the external structure of the virus means that this agent prevents fabrics becoming a host surface for virus and bacteria, thus reducing the risk of contamination, it adds. The yarn’s antiviral properties have been tested by an independent laboratory in line with the international textile protocols set out in the ISO 18184 standard for the determination of antiviral activity of textile products, Fulgar says.

In fact, the antiviral and antibacterial properties of Q-SKIN polyamide powered by AMNI VIRUS-BAC OFF are permanent, so garments including this yarn provide long-lasting benefits that remain unaltered over time, unlike clothing given dye treatments whose effect is limited by the number of washes the items have undergone, says the Castel Goffredo based fibre producer.

Major fashion brands, including H&M, M&S and C&A, are supporting the Circular Fashion Initiative in Bangladesh that aims to use more recycled materials in clothing production and significantly cut planet-heating emissions from manufacturing by 2030.

As per Fashion Network, the Circular Fashion Partnership, brings together more than 30 international brands, Bangladeshi recycling firms and garment manufacturers in a push to reuse textile waste from clothing factories to create new products.

If successful, the initiative could be replicated in other countries, such as Indonesia and Vietnam, and help cut the broader fashion industry’s emissions, said the Global Fashion Agenda (GFA), a nonprofit body that is leading the new scheme.

In 2018, the sector’s greenhouse gas (GHG) emissions were just over 2 billion tonnes, a figure that needs to be halved by 2030, to be in line with global climate goals, said the GFA.The partnership would cut carbon emissions from clothing production and demand for raw materials, which include fossil fuels, by slimming down the amount of waste and increasing the use of recycled materials over virgin materials, she noted.

Under the 2015 Paris climate accord, nearly 200 countries agreed to slash greenhouse gas emissions to net-zero by mid-century and limit global average temperature rise to “well below” 2 degrees Celsius above preindustrial times.

Already an exporter of $45 million textile products to Pakistan annually, Chinese private undertaking Challenge Fashion now aims to set up a Special Economic Zone in Pakistan. As per a Pakistan Today Profit report, Challenge has many global clothing and accessories brands like adidas, Icebreaker, Polartec, The North Face, Smartwool, Uniqlo, and Reebok as customers. One of the most admired and appreciated apparel producers of China, the group deals in outdoor and sports apparel and has been involved in the technical circular knit business for nearly two decades.

Eyeing $1billion exports in 3 years

Known as the one of the top three innovative textile companies in China, Challenge Fashion has a very creative product line and offers some of the most sustainable products in the textile industry. The group plans to invest $150 million in Pakistan over the next three years. This will help to not only create 20,000 jobs but also increase its exports to $1billion over the next five years. This investment will also make Pakistan one of the most preferred FDI destinations and encourage others to invest in it.

Challenge aims to set up this SEZ in the vicinity of Lahore. Like most SEZs, this SEZ will also help modernize the Pakistani textile industry besides increasing its foreign investments and offering a better balance of payments. It will also help urbanize areas surrounding the SEZ.

Fiscal benefits for Pakistan’s SEZs

Pakistan has various industrial areas offering variety of benefits. Its Punjab district has 26 industrial estates, while Sindh has 30, Baluchistan has seven and Khyber Pakhtunkhwa has 12. Though some of these estates, located in larger cities have been successful, others located in remote areas have failed to stimulate economic growth as they lack skilled labor and basic facilities.

Some of prominent SEZs include Sialkot, known for its sports goods and surgical instruments, Faisalabad and Gujranwala. These SEZs now plan to switch to another model either under the Federal or Provincial Governments or in collaboration with the private sector. They enjoy several fiscal benefits like a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for their development, operation and maintenance and exemption from income taxes for a period of ten years.

Challenge Fashion plans to set up the SEZ on 80 acre near the Lahore-Kasur road. Currently, categorized as agricultural, the land is yet to be converted into an industrial land by the Lahore Development Authority. The company has already set up a 370,000 sq. ft. stitching facility as a part of this project. Housing 4,000 employees, the facility exported products worth $70 million this year, which it hopes to increase to $100 million next year.

A recent Bain & Company report estimates Chinese consumers will account for 50 per cent of luxury sales by 2025. However, the report does not expect smaller luxury brands to grow as Chinese people do not prefer buying luxury items from small brands, says Elsepeth Cheug, Global BrandZ.

Three years ago, Tmall launched another platform Luxury Pavilion, which currently has 66 per cent global luxury brands on board. The platform was launched by Sebastian Badault, Managing Director-France and International Director-Fashion & Luxury, Alibaba. The platform has big players such as Chloe, Cartier, Lanvin, Balenciaga, and Burberry Beauty alongwith small labels like Zadig & Voltaire, shoe designer Pierre Hardy, and Ines de la Fressange.

Finding the right local partner

Nicolas Cano, Head-Business Development, Tmall Luxury informs, 50 more luxury brands have joined the pavilion since March 2020, bringing the total number of brands to 200. Though some of these brands make 80 per cent of their overall revenue on the platform, they are not yet ready for the Chinese market says Badault

Chloe Reuter, Reuter Communications, a luxury intelligence agency based in Shanghai says, any company that aims to work in China needs to first find the right local partner. It can explore the complex social media landscape in China to form new partnerships like Heytea and Rihanna’s beauty label, Fenty Beauty, or the San Francisco-based fashion brand Everlane’s collaboration with Seesaw Coffee and Ele. Ron Wardle, Head, Yooma, advises these companies to create demand for their products overseas before launching them in Chinese market. He urges them to use overseas activation agencies like VIP.com and Avenue51.

Consolidating their home market

However, Tom Griffiths, Commercial Director, Verb China, warn companies to go slow on China expansion. He feels, the quickest way to succeed in China is to first find a suitable investor. It is important for companies to find their customers and get their revenues back quickly, he adds.

Cheung points to the strategy used by Tripollar, who focused on consolidating its beauty home devices market before entering China. The company entered the China market in partnership with Chinese drama ‘Perfect Partner’ One of the first brands to launch in US’s luxury CBD market, Lab to Beauty faced several challenges like low brand awareness, newness of the CBD category and competition from existing beauty and personal care brand, while it entered the Chinese market.

The brand has been working with many US-based Chinese KOLs to increase brand awareness and launch new products through Western and Chinese social media channels. It will continue to include additional China-based KOLs for future expansion and expect China to contribute a larger percentage to sales.

Coimbatore-based vertically integrated company KPR Mill’s Q3 results are robust driven by strong demand for textile products. Revenue during the period grew 21 per cent in year-over-year basis to Rs 929.6 crore, with textile division (87 per cent of sales) posting 19 per cent Y-o-Y growth. With healthy order book and sustained demand for casual wear, apparel volumes went up 12 per cent Y-o-Y to 22.6 million pieces.

The average realisation/piece also firmed up 9 per cent to 163 per piece, translating to value growth of 22 per cent Y-o-Y to Rs. 369 crore (40 per cent of sales). Export order book at the end of Q3 was healthy at Rs 600 crore and revenue from yarn and fabric division (44 per cent of sales) grew 16 per cent Y-o-Y to Rs. 412 crore. It plans to expand its garment division. As on Q3, FY21, it has outstanding debt worth Rs. 556 crore and cash balance worth Rs. 350 crore.

Four apparel manufacturers associations from Turkey, Indonesia and Morocco have now joined the Sustainable Textile of the Asian Region (STAR) Network. STAR is a platform for Asian RMG manufacturers that drives better purchasing practices in the global textile and garment industry.

The four associations are: Indonesian Textile Association (API), Turkish Clothing Manufacturers Association (TCMA), Istanbul Ready-Made Garments Exporters’ Association (IHKIB) and Moroccan Association of Textile & Clothing Industries (AMITH). They have joined the initiative on ‘Manufacturers Payment and Delivery Terms’. The platform formed in 2016 with nine member associations from six Asian countries. They include: Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, China National Textile and Apparel Council, Garment Manufacturers Association in Cambodia, Myanmar Garment Manufacturers Association, Pakistan Hosiery Manufacturers and Exporters Association, Pakistan Textile Exporters Association, Towel Manufacturers Association of Pakistan and Vietnam Textile and Garment Association.

The initiative, started by the STAR Network, supported by GIZ FABRIC, the International Apparel Federation and the Better Buying Institute, highlighted their plans at the recent OECD Forum on due diligence in the garment and footwear sectors on February 3, the release said. This marks a joint global effort led by manufacturers to establish a common position on payment and delivery conditions in the industry.

The STAR Network, GIZ FABRIC, IAF and Better Buying have come together to create the safe space for manufacturers to jointly draft a set of minimum expectations and outline recommendations and the best practices related to payment and delivery conditions. ‘This includes establishing certain red lines and core principles that they deem essential for fair legitimate business,’ said a press release.

The International Apparel Federation (IAF) and the International Textile Manufacturers Federation (ITMF) together unveiled Standards Convergence Initiative (SCI), an initiative to accelerate reduction of audit and standard fatigue. The forum was launched at the side session of OECD Forum on Due Diligence in the Garment and Footwear Sector held online from February 1 to 5. The SCI will be a wide platform to discuss and develop a strategy and tools to accelerate reduction of audit and standard fatigue in the global clothing and textile industries.

The auditing conduct of standard holders, along with brands, retailers and other buyers’ decisions determines if the industry is are moving in right direction of less unnecessary overlap of audits and standards. Therefore, one of SCI’s first steps, in collaboration with the International Trade Centre will be to create transparency in the conduct of the main standard holders, brands and retailers and 3rd party standard holders, measuring to what extent they are contributing to the reduction of audit and standard fatigue.

The SCI has identified four yardsticks to judge standard holders’ commitment to reduce audit and standard fatigue. These include: willingness to harmonize standards; compliance with OECD and ILO guidelines; use of existing platform to avoid audit duplication; global certification of auditors.

These criteria will provide a foundation for a structural monitoring of standard holders’ efforts to reduce audit and standard fatigue that will be carried out by ITC. During the session at the OECD Forum, the ITC explained how its unique Standards Map Database will be used to measure and monitor standard convergence in the industry. First results of the monitoring are expected in the third quarter of 2021.

Besides monitoring exercise, the SCI will foster collaboration between different stakeholders each working on a partial solution. And, because large brands and retailers sticking to their own standards block the reduction of standard fatigue, the SCI will continuously call on these brands and retailers to either drop their proprietary standards in favour of 3rd party standards or to collaborate in other ways that observably reduce audit and standard fatigue.

Indian textiles ministry is coming up with a scheme to promote identified man-made fibre apparel and technical textile products to increase its share in global market. Smiriti Irani, Textiles Minister told Parliament the textile sector is the sixth largest exporter of textiles and apparels in the world. The share of the country's textiles and apparel exports in mercantile shipments was 11 per cent in 2019-20.

She said, the government has decided to extend the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from January 1, 2021. The Cabinet has approved Production-Linked Incentive (PLI) scheme in the 10 key sectors to enhance India's manufacturing capabilities and exports. MMF (man-made fibre) segment and technical textiles are included among the 10 key sectors with approved financial outlay of Rs 10,683 crore over a five-year period.

She also said during crop year (2020-21), cotton production stood at 371 lakh bales. Till February 3, 2020-21, the government procured 90.39 lakh bales worth Rs 26,432 crore at minimum support price (MSP), benefitting 18.67 lakh farmers.

Though relatively unknown, Nanjing based e-commerce platform Shein is ready to enter the mainstream fashion market. The Pearl River-based company, which recently bid for the ailing UK fashion group Arcadia, exports to almost 220 countries, reveals a Forbes report. It has websites across Europe, the Middle East, Australia and the US and reportedly generates revenues of $10 billion annually. With customers across Asia and Europe, the company recently completed a Series E financing round.

Making a mark across the globe

Analytics platform App Annie says, Shien was one of the most downloaded shopping app globally on iPhone. It particularly topped in the US, Brazil, Australia, the UK and Saudi Arabia markets. In the US, Shein has a warehouse near Los Angels which processes products received from warehouse in Foshan, Guangdong province. Though, this process takes over 10 days, it is very affordable and therefore attracts a huge customer base.

Obsessed with predicting trends, Shein often promotes popular fabrics, colors and styles on the Instagram and Weibo platform. The brand’s image has often been elevated by various celebrities and fashion influencers although it has also been criticized for using the Swastika pendant for its advantage.

Future goals

Before 2014, Shein purchased products directly from Guangzhou’s Shisanhang Garment Wholesale Market. However, soaring demand forced the company to create an in-house design team. Within just two years, the company assembled an 800-strong design and production team. Its emphasis on timely payments helped retain all clients even when it relocated its supply chain operations center from Guangzhou to Panyu in 2015.

Shein has now merged all factories into a production centre similar to o A Coruña in Northeast Spain. The company also has four R&D facilities in Nanjing, Shenzhen, Guangzhou, and Hangzhou besides six logistics centers in Foshan, Nansha, Belgium, India, and on the East and West Coasts of the US. Its seven customer service centers are based out of Los Angeles, Liege, Manila, Yiwu, and Nanjing, and have over 10,000 employees.

Ready to face the future head-on, Shein plans to develop business in mobile payments, supply chain finance, advertising. It also plans to open brick-and-mortar stores.

Before COVID-19, the Myanmar apparel sector employed over 700,000 workers in over 700 apparel factories. The sector created jobs faster than any other part of the economy, reports, International Labor Organization. However, pandemic-induced slowdown forced many factories to shut down and the recent military coup added more uncertainty to the sector. Thousands of workers employed in Myanmar’s garment factories are currently demonstrating against the military coup, reports Clean Clothes Campaign. Hundreds of protestors are engaged in a standoff with riot police as they march to Yangon University.

In a quandary

This has driven brands operating in the country into dilemma about whether to continue operating in the country or cut all ties with it. A representative for British multinational Marks & Spencer, The Fair Wear Foundation has urged member brands to ensure workers get due payments and have a safe work environment.

Swedish giant H&M is urging suppliers to ensure the safety of employees. The brand is also collaborating with UN agencies, humanitarian organizations, diplomatic representatives, human rights experts and other multinational companies to support positive developments in Myanmar. Myanmar fashion companies are also rethinking their expansion plans. Adopting a wait and watch policy, so far, they have exported over half of their apparels under the Everything But Arms framework. However, they are unlikely to review Myanmar’s eligibility under this act, says Politico

Political instability and strict visa norms discourage US investors

Meanwhile, Myanmar is focusing on the US market which benefits from some preferences under the US GSP or Generalized System of Preferences, program. The country has approved some of Myanmar’s individual and military-controlled companies for investments. One of these is Myanmar Economic Holdings which owns the Pyin Oo Lwin garment factory.

Peter Kucik, Sanctions Expert, Ferrari & Associates, believes Myanmar's garment industry holds great importance for Western policymakers and expects the US to adopt a more surgical approach towards the country this time. He says, policymakers should avoid taking any complex measures such as changing trade preferences. The political instability also prevents foreign high skilled and technical workers from entering the country. Further tightening of visa procedures threaten garment operations. The next few months are likely to be bleak for Myanmar as the country may fail to attract new investments. Its current projects may also face approval problems and the country may not bag new orders.