The 2020 Dow Jones Sustainability Index (DJSI) has ranked Burberry on the second place in the ‘Textiles, Apparel & Luxury Goods’ sector. The company secured these leading positions within the Product Stewardship and Social Reporting categories.

Burberry has a longstanding commitment to sustainability, with social and environmental programs in place for more than 16 years. Its latest five-year Responsibility Agenda covers all its products, global operations and the communities that sustain the luxury industry.

Two thirds of Burberry products make an environmental or social contribution, with a goal for all products to do so by 2022. These can relate to a broad range of social and environmental programs including, the amount of organic content or recycled natural fibres used in materials, delivery against carbon emissions standards at production facilities or social initiatives such as workers being paid the living wage or supported through wellbeing programmes.

In addition, Burberry targets to procure 100 per cent of cotton more sustainably and source 100 per cent of leather from tanneries with environmental, traceability and social compliance certifications by 2022.

These goals are underpinned by two additional climate goals approved by the Science Based Target initiative (SBTi) for Burberry’s own operations and extended supply chain. The targets covering greenhouse gas emissions from Burberry’s operations (Scopes 1 and 2) are consistent with reductions required to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement.

The Rieter Group has signed a license agreement with WW Systems to integrate the Brazilian only software system OptCotton across the world to evenly blend its cotton for spinning process. Unlike other systems, OptCotton eliminates variations in quality between cotton blends that are being prepared for the spinning process. It enables the group to produce standardized quality yarn efficiently in the spinning process. From the arrival of the bales in the warehouse to their use in the blowroom line, ‘OptCotton’ manages the entire blending process with no need for categorization. This results in increased efficiency in storage and logistics as well as machine performance.

By integrating this solution, Rieter has strengthened its digital spinning suite Essential. The suite provides access to bale-related fiber data and raw material information which opens up new possibilities for controlling the spinning mill. In combination with the existing modules Essential Basic, Essential Monitor, Essential Maintain and Essential Predict, IT optimizes the entire spinning process and raises digital intelligence to a new level.

At a virtual conference, bureaucrats and industry stalwarts from India and Bangladesh pledged to strive for a 35 per cent share in the global textiles and clothing (T&C) market in the next five years. India currently exports textiles and clothes worth around $39 billion which are forecasted to cross $82 billion by 2021.Similarly, Bangladesh exported textiles and apparels worth $27.95 billion in FY20, compared to the previous fiscal year’s $34.13 billion. The country has adjusted its target for 2020-21 from $50 billion to $33.78 billion due to the present circumstances.

Both countries export $66.95 billion in textiles and clothing together and have to hit at least $350 billion over the next five years together. Rubana Huq, CEO, BGMEA, has urged both countries to ‘go rural, go green.’ While Dr A Sakthivel, Chairman, AEPC has proposed a shared exhibition of Indian and Bangladeshi companies where customers can work together and jointly gain a better valuation and more business.

Ethiopian Textile Industry Development Institute (ETIDI) has signed an agreement with Texcoms Textile Solutions (TTS), a Singapore-based consulting firm to upgrade Ethiopia’s textile and apparel manufacturing sector. One of the initiatives in this agreement includes setting up of a ‘Textile Pilot Plant’ in Ethiopia by ETIDI that will have the entire value chain of textile industry which consists of processes such as spinning, weaving and finishing; and the machinery for these processes will also be installed along with various other machines.

TTS will support ETIDI in setting up this plant with technical knowledge so that the operators can run modern machinery efficiently. The scope of work will cover supplying of machinery, installation, commissioning, training, know-how transfer as well as hand holding till the textile set-up becomes operational. Housing all relative technologies, the new textile plant aims to encourage entrepreneurship; demonstration/training and know-how transfer; research & development; and product development.

Ethiopia’s textile and apparel exports have been growing continuously for last five years and the country is emerging as a strong player in global market. The Ethiopian government and the relevant organizations/institutes (such as ETIDI) are offering much needed helping hand to its textile sector.

This month, American clothing retailer Tailored Brands will exit from Chapter 11 bankruptcy as the retailer has won the court’s approval to restructure operations. The restructuring plan involves eliminating $686 million of funded debt and turning the ownership to lenders and other creditors.

The retailer had been struggling even before the outbreak of COVID-19. The onset of the pandemic worsened its crisis leading to temporary store closures and declines in Q1 sales.

The retailer’s Q1 revenue fell by over 60 per cent, which eventually led to permanent shutting down of around 500 stores. After it exits from bankruptcy, the retailer will have $ 430 million asset-based loan facility in addition to an exit term loan of $365 million.

It will also have a cash of $75 million from new debt facility to help the retailer in its strategic initiatives. The retailer has launched the new buy online pick up in store initiative to better serve its customers in these tough times. It generated $ 2.881 billion revenues in 2019.

Euratex, the European textile and apparel federation, has launched a joint initiative with its members to upcycle textile waste and circular materials all over Europe. The federation aims to create five hubs, known as ReHubs, to process textile waste and become European coordination centres.

To be set up near European textile and apparel districts, these ReHubs will offer the benefit of circular economy by upcycling textile wastes, as a completely new, coordinated, large-scale management of material-streams.

The Hubs’ capacity to treat large volumes will create economies of scale, justifying the costs of existing recycling technologies as well as investments into new ones, such as chemical & thermal/melt recycling. This will generate new raw materials for the textile value chains, which is mostly made of SMEs (fiber-to-fiber closed loop), and for symbiosis with other European industries (e.g. automotive or other industries).

The ReHubs will enable the creation of a new European market of secondary raw materials saving additional waste-related costs. They will create and spread knowledge on products’ recyclability and product design for a better cooperation between makers and buyers across the industry value chain.

The ReHubs will not only tackle the issue of landfill and incineration, but also will build an opportunity for Europe to strengthen its autonomy for raw materials and provide a healthy recycling ecosystem across Europe. The ReHubs will create new green jobs. Estimates indicate that around 20 jobs could be created for every 1000 tons of textiles collected, sorted and recycled, ultimately creating up to 120.000 jobs in the European Union.

On Sunday, November 15, China and 14 other countries virtually signed the Regional Comprehensive Economic Partnership (RCEP), to create world’s largest trading bloc, encompassing nearly a third of all economic activity. The pact will cover 2.2 billion people with a combined GDP of $26.2 trillion. As per PwC estimates, the GDP of RCEP member states will be worth around $250 trillion by 2050. The new free trade bloc will be bigger than both the US-Mexico-Canada Agreement and the European Union.

RCEP is expected to boost partner economies by reducing tariffs, strengthening supply chains with defined rules of origin, and framing new e-commerce rules. The agreement benefits include tariff elimination by almost 92 per cent on traded goods among participating countries; stronger provisions to address non-tariff measures; enhancements in online consumer and personal information protection; transparency and paperless trading among others. It also includes simplified customs procedures with 65 per cent service sectors being fully open with increased foreign shareholding limits.

The RCEP comprises a diverse mix of developed, developing and least developed economies of the region with various cultural backgrounds and political systems. The deal includes several of the region's heavyweight economies including China, Japan and South Korea and partners like New Zealand, Australia, Indonesia, Thailand and Vietnam in Southeast Asia.

Asia, China become the centre point

Many in Asia are hoping this deal will hasten recovery from the shocks of the pandemic, as partner countries, said in a joint statement the deal "will play an important role in building the region's resilience through inclusive and sustainable post-pandemic economic recovery process.” In a written interview with Xinhua, Deng Xijun, Chinese ambassador to ASEAN noted, signing of the trade deal itself has given a strong shot in the arm to regional and global economic recovery and set an example on a global scale. "The fact that these diversified countries could unite and reach a pact, demonstrates the tremendous appeal of free trade and win-win cooperation," Deng said.

Others opined the deal was evidence of Asia's growing power. Asia keeps pushing ahead with trade liberalization even as other regions have become more skeptical. It may reinforce a trend that's been already underway for decades: that the global center of economic gravity keeps pushing relentlessly to the East.

In many ways, RCEP is a coup for China, the biggest market in the region with more than 1.3 billion people, allowing Beijing to cast itself as a “champion of globalisation and multilateral cooperation” giving it greater influence over rules governing regional trade, wrote Gareth Leather, Senior Asian Economist for Capital Economics, in a report.

US could swing the balance

The trade agreement was first proposed in 2012 as a way to create one of the world's largest free-trade zones. In 2017, prospective RCEP member states accounted for 3.4 billion people or 45 per cent of the world's population and about 40 per cent of world trade. The total gross domestic product (GDP) amounted to $49.5 trillion, and China, India made up more than half of it, surpassing the combined GDP of Trans-Pacific Partnership (TPP) members in 2007. However, with US’ withdrawal from TPP, the chances of RCEP’s success have increased many fold.

“Whether RCEP changes regional dynamics in favor of China depends on the US response” points out trade expert William Reinsch. If the US continues to ignore or bully the countries there, the influence pendulum will swing towards China, he feels. "If Biden has a credible plan to restore the US presence and influence in the region, then the pendulum could swing back our way."

Analysts, however are skeptical Biden will push hard to rejoin the trans-Pacific trade pact or to roll back many of the US trade sanctions imposed on China by the Trump administration. But given concerns about China’s growing influence, Biden is likely to seek greater engagement with Southeast Asia to protect US interests, believe trade experts.

India stays away but doors still open

The deal excludes India, which pulled out of the agreement last year over concerns about cheap Chinese goods entering the country. "It’s symbolic value has always exceeded its actual value," argues Reinsch. He pointed out that India’s opting out amounted to lessening the importance of the agreement in terms of actual trade.

While India had been involved in RCEP negotiations since 2013, it walked out of the pact citing “significant outstanding issues” that were unresolved by the deadline to enter the agreement. Key issues for India were related to safeguarding the country against China. Concerns include “inadequate” protection against surges in imports —as Indian industry fears signing the RCEP would allow cheaper products from China to “flood” domestic market. India had been seeking an auto-trigger mechanism through which it could raise tariffs on products in instances where imports crossed a certain threshold to counter this threat.

India had also sought more market access and raised issues of non-tariff barriers by countries like China that would prevent it from growing exports. India’s tough stand surprised participants late last year which later abandoned the agreement, over concerns about how RCEP would affect the livelihoods of Indians, particularly the most vulnerable. “The clause allowing India to join at a later date is symbolic and shows China’s desire to build economic bridges with the region’s third-largest economy,” Bloomberg quoted.

India, being an original negotiating participant of the RCEP, has the option of joining the agreement without having to wait for 18 months as stipulated for new members. RCEP signatory states say they plan to commence negotiations with India once it submits a request of its intention to join the pact “in writing”, and it may participate in meetings as an observer prior to accession.

A huge change awaits the British fashion industry as UK finally ends its 47-year membership of the European Union on January 1, 2021. For years, the fashion retail industry has lived with the uncertainty of how UK will fair after exiting the EU without a proper deal. Particularly vulnerable would be the British fashion industry, which employs over 890,000 people.

As per Drapers Online, a no-deal Brexit will result in UK exporting goods under the World Trade Organization rules. This could not only lessen their value but also end the competiveness of British brands in the European market, views Dimple Patel, Chief Operating Officer, Trouva, an online marketplace which sells clothing and homeware from over 450 bricks-and-mortar stores across the UK and Europe.

Brands may downplay their ‘Britishness’

Graham Allen, Head-Sales Marketing, Henri Lloyd feels, whether fashion sales drop post Brexit will depend entirely on future negotiations between the UK government and the EU. In a worst case scenario, it could lead to more trade barriers, increase in prices, lower margins and temporary delays at ports. William Church, Co-Managing Director, British footwear brand Cheaney Shoes, thinks it could damage the attractiveness of ‘Made in Britain labels in key European markets. Consumers and retailers could also banish British brands with the US hampering the prospects of a future UK-China deal. Brands could also downplay their Britishness and dissociate themselves with the ‘Made in Britain’ label.

However, few like menswear and accessories brand Sir Gordon Bennett affirm brands with a UK heritage will fare better than their younger counterparts. A longstanding brand will definitely be able to overcome these problems, believes Neil Elliot, Co-Founder of the brand. Brands that won’t be able to should focus on making the exclusivity their offering, adds Hayley Menzies, Founder and Owner of her eponymous British women’s wear label.

The British lure to continue

Barbara Beernaert, Owner, Gent, Belgium-based women’s wear says, though Brexit and its surrounding uncertainty is not helping EU retailers to collaborate with British brands, it is not stopping them either. At the same time some brands are avoiding starting new relationships with UK brands.

And while brands plan to absorb the additional costs of Brexit in their operations others aim to secure alternative distribution locations. The reason EU retailers are being cautious with UK brands is their lack of clarity as buyers. They hope things will normalize once business resumes as usual. And as experts point out, the ‘Made in Britain’ label will continue to lure customers despite a no deal Brexit threatening to damage the competitiveness of British brands in the EU market.

Luxury brand Moncler has been ranked as the Industry Leader of the ‘Textile, Apparel & Luxury Goods’ sector in the Dow Jones Sustainability Indices (DJSI) World and Europe.

It’s the second year in a row that the Italian firm has been recognized to receive the top spot in the DJSI category.

The DJSI is considered the “gold standard for corporate sustainability at a worldwide level and a trusted reference standard for investors who include sustainability considerations in the decision-making process of their investments.”

Moncler recently dropped its Born To Protect plan that focuses on five strategic drivers including climate action, the circular economy, fair sourcing, enhancing diversity, and giving back to local communities.

In July, the company signed a sustainability-linked revolving credit facility granted by IntesaSanpaolo with a reward mechanism linked to the achievement of environmental reduction targets.

Italian brand Carpisa has entered the Indian market with the opening of its first physical store at DLF Mall of India in the national capital New Delhi.

The brand plans to expand rapidly across North India in the coming months despite the economic disruptions caused by the Covid-19 pandemic. It is known for ts bags, small leather goods, luggage, briefcases, and accessories both for men and women. Established in 2001, Caprisa has a network of over 600 stores spread across over 40 countries.

Caprisa was launched in 2001 by a young and enterprising management team that bases its success on values such as close attention to the customer, team spirit, dynamism, research and development and competitiveness, showcasing Italian style and creativity.The brand’s collections, large and rich in ideas, created with Italian design, present an excellent value for money combination. They are aimed mainly at women between 20/45 years old, particularly attentive to new trends, but also at men, who are influenced by the most varied requirements.