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Hidden supply chains are the terra incognitas of the apparel industry. They exist outside factory walls and are unlicensed, unregulated and rife with child labor and other human rights abuses. Orders that start at a traditional factory might end up being subcontracted to one smaller production unit, then another, before ultimately ending up inside the homes in communities that specialize in things like beading and tassel making. Once that work leaves the factory, it’s hidden from view. Workers involved in production aren’t protected under corporate codes of conduct, factory audits and even national law.

Forced labor exists in every country, in every supply chain. Predominantly women and girls from historically oppressed ethnic communities work exclusively in supply chains for export of apparels to the United States and the European Union. Acknowledging the shadows in the supply chain is the first step. The second is investing in transparency. Excuses from brands, from suppliers, even from consumers should be done with. This is 2019, and with the tremendous technological evolution over the last 10 years, it ought to be easy to say if a piece of clothing is actually made by child labor or not.

The new NDA government led by Prime Minister Narendera Modi has retained, Smriti Zubin Irani as the textile minister of India. Irani took oath as a minister with cabinet rank along with Prime Minister and other ministers at a ceremony in Rashtrapati Bhavan. Irani will also head the Ministry of Women and Child Development.

In the previous NDA government, Irani was initially appointed as the Minister of Human Resources and Development, and later shifted as the cabinet minister of textiles. A television actor turned politician, Irani began her political career by joining the BJP in 2003.

Friday, 31 May 2019 13:05

Sensations for the moment

Clothing designs that seem impractical yet are visually alluring continue to go viral on social media. More and more US brands are jumping on the trend of clothing that is slightly impractical, extremely divisive, yet strangely alluring at the same time. These designs seem to exist less for the sake of practicality and more for the sake of an eye-catching photo shoot that spreads quickly on social media. The trend can be traced back to the 1970s and ’80s when designers would create shocking ensembles in the hopes of ending up in influential fashion magazines. Then — and now — the point of producing shocking and impractical designs was not to sell the actual piece itself. The point was to get more photographers shooting the designer, and magazine editors writing and talking about them. Now, the point is to get more followers and customers talking about the brand, with the goal of increasing shares and reposts to spread the word and gain more attention.

Going on Instagram is effective for quick brand recognition, but it doesn’t always lead to long-term impact. At some point, people will start to see through the viral marketing tactics and crave authenticity. Consumers will tire of the impractical designs.

PVH Corp’s first quarter revenue rose 1.8 per cent. PVH Corp has projected a 10 cent cut in its full-year adjusted profit per share. The company, which owns Calvin Klein and Tommy Hilfiger, grapples with tariffs and slowing retail growth, exacerbated by weak spending from overseas shoppers in the face of a strong US dollar. Tariffs on Chinese imports are a concern, as PVH Corp sources a majority of its apparel, footwear and accessories from the Asian country.

PVH Corp is in a powerful position to deliver a sustainable trajectory of long-term growth and stockholder value creation. The American clothing company experienced broad-based strength across its businesses globally and its performance underscored the power of its diversified business model and the continued momentum in its global designer lifestyle brands.

Escalating trade tensions between China and the US have emerged as a new headache for US-based retailers, with a warning that additional tariffs would thin their earnings and margins. Earlier this month, the US escalated the trade war by raising tariffs on 200 billion dollars worth of Chinese goods to 25 per cent from 10 per cent. This was in addition to the 25 per cent tariff on $50 billion worth of Chinese imports already in place.

Informa Markets, the force behind some of the biggest trade shows, will organise a pop up event DestinationMiami for the Miami Swim Week in July 2019. To be a part of its women’s merchandise trade show Coterie, DestinationMiami will provide an immersive, multilevel, showroom-style experience for contemporary and designer brands to showcase their resort and travel collections at the Faena Bazaar in the Atlantic Hotel in Miami Beach, Fla.

To be held from July 13-16, 2019 DestinationMiami will feature 70 hand-selected brands including Adriana Degreas, Anemone Swim, Sara Cristina, Stellar, Suki Cohen, March 11 and Mercedes Salazar. DestinationMiami is the first of a series of focused showroom atmospheres that will be an extension of the current Coterie portfolio. Retailers attending the show will be personally guided through each collection and talk to designers and label representatives.

Friday, 31 May 2019 12:59

Price drives US garment purchases

US consumers’ spending on clothing has dropped by more than half since 1987 says consulting, auditing, and risk-management firm Deloitte. In 1987, US shoppers devoted about five per cent of their discretionary spending on clothes. In 2017, it was about two per cent. Younger shoppers tend to spend a bit more, but the overall trend has been consistent across age groups. What’s driving the decrease, though, isn’t consumers buying less clothing. Rather, clothes are getting cheaper.

For decades, fashion brands have engaged in intense price competition seeking out ever-cheaper places to make their clothes. While retail prices overall have risen in the US, clothing hasn’t kept pace. Consumers still look to value, product, and convenience as the overwhelmingly important attributes while making decisions. Perhaps cheap clothing offers consumers at least one low-cost thrill, while big purchases get tougher to afford. Deloitte asked shoppers their reasons for choosing to shop at a retailer. Price was the most common response, beating out product selection, convenience, and several other factors.

Apart from clothing how much of their money American consumers are spending on different categories, such as entertainment, dining out, alcohol, and furniture, has remained relatively stable. In the entertainment category, for example, income level—rather than age—is a bigger factor in driving additional spending.

Friday, 31 May 2019 12:58

Miami ATS gets a huge response

Apparel Textile Sourcing (ATS) Miami was held from May 28 to 30, 2019. The show kicked off with great fanfare and drew record attendance. More than 1,200 visitors passed through the doors on opening day alone. The event featured 200 international apparel and textile exhibits and unprecedented networking and business opportunities with international suppliers, industry-leading seminars and educational sessions.

A panel unveiled the benefits and incentives for companies of all sizes to establish and grow their business operations in Florida. There was an update on the key issues and developments in US trade policy including insights into today’s changing trade landscape, strategies for fashion brands, retailers, and manufacturers to mitigate the impact on their businesses. A unique Fashion Lab Seminar Series taking place on the show floor highlighted top fashion industry experts who provided an overview for young local talent about the necessary steps in creating a brand and the power of social media in the fashion industry. Specialists in fashion strategy and brand development revealed tips on everything designers need to know about breaking through the clutter and launching a successful collection. Design industry experts shared top mistakes designers make and how to avoid them. A Fashion Day featured South Florida established brands and up-and-coming designers who showcased their latest creations.

Friday, 31 May 2019 12:57

Global denim grows at four per cent

The global denim market is growing at 4.60 per cent. Rapid urbanization coupled with the development of cities is likely to augur well for the market owing to the migration of consumers. Innovations in denim apparel with relation to size, shape, and color are enticing customers to purchase.

Celebrity endorsements are paving the way for the denim market to thrive successfully and reach new consumer demographics. Celebrities can act as the face of denim products and use social media channels for reaching out to their fan base. The Asia Pacific market is projected to register the highest growth rate thanks to expansion of the working class and investments by cloth manufacturers to make it affordable.

The market is segmented into loose fit, slim fit, and others. The slim fit segment is the fastest growing. Heavy demand for casual and rugged wear by men globally is projected to bode well for the denim market. By distribution channel, the market has been segmented into store-based and non-store-based. The store-based segment is expected to be the largest segment till 2023 owing to the preference for personalized experiences by consumers. The non-store-based segment is expected to register a CAGR of 5.30 per cent due to the penetration of e-commerce stores.

Global cotton prices have fallen by 17 per cent. Another concern looming over cotton market is increased US production. US output is forecast to jump 20 per cent in the year from August 2019 to next July 2020. The US inventory of cotton at the end of July 2020 is expected to be up 38 per cent on the year. From August 2018 to March 2019, Chinese imports of raw American cotton were half the amount recorded in the same period a year earlier. On the other hand, the US has been slapping tariffs on cotton thread and other fiber products imported from China, raising concerns over a decline in demand for these goods.

China accounts for one-third of global cotton consumption, importing the material from the US and Brazil. China also distributes cotton thread domestically for manufacturing cotton fiber products, before exporting the finished goods to the US. The US, for its part, ranks third among raw cotton producers behind India and China, and is the top exporter of the material.

In Japan, price of domestically produced cotton threads are under pressure from imports of cheaper Vietnamese and Indonesian products. Southeast Asian countries are exporting more to Japan to compensate for the decrease in exports to China, as the global hub of the garment industry imports less thread.

Global garment companies are failing to meet living wage promises to workers, says a study by researchers at the University of Sheffield today. They said it would take a "step-change in approach" for major corporations like Nike, Primark and Adidas to pay wages that "meet the basic needs" of workers and their families. The study by researchers at the Sheffield Political Economy Research Institute (SPERI) at the University of Sheffield found many companies do not have concrete, measurable action plans for achieving a living wage in their global supply chains, or benchmarks for calculating living wage rates.

The global garment industry is extremely profitable but workers in the supply chains that produce clothes are not benefiting from the value they are creating. Until companies can take such steps, living wage commitments are likely to remain in the realm of rhetoric rather than leading to substantial changes that address low wages for workers in the global garment supply chain. A change in approach is necessary for garment companies to achieve living wages in their supply chains.

A lack of transparency around the wages workers receive makes it extremely difficult to evaluate companies’ progress toward meeting their own living wage promises. Instead of altering their purchasing practices to make it possible for suppliers to pay living wages, most garment corporations are outsourcing their living wage commitments to external initiatives.

Some are part of multiple external initiatives, each with different definitions and approaches to living wages, which mean that corporate commitments lack clarity. Corporate supplier codes of conduct are often out of step with the requirements of the external initiatives they are involved with.