The Centre Government plans to launch the second edition of the PLI scheme, that would be dedicated to the apparels and garments sector The new scheme would have a lower investment criteria, to ensure that the entire Rs10,683 crore of incentives allocated under the scheme gets fully utilized and relatively smaller players can also benefit.

The Textile Ministry is projected to utilize a little more than Rs6,600 crore for the current investors under the scheme and has enough funds to invite a second round of applicants.

The Textile Ministry has approved the applications of three additional companies under the production-linked incentive (PLI) scheme for textiles, which includes Birla Fashion and Retail and RSWM of the Bhilwara Group, taking up the total number of selected applicants to 64.

Of the three fresh approvals, one application from RSWM, one of the largest yarn manufacturing companies in India, was under part 1 of the scheme. The minimum investment requirement under the first part is Rs300 crore with minimum turnover required to be achieved for getting incentive at Rs600 crore.

The other two approvals, one from Birla Fashion and Retail and the other from Pan Healthcare, are under part two, with minimum investment of Rs100 crore and minimum turnover required to be achieved for incentive is Rs200 crore.

Organizers of an established portfolio of fashion events including Pure London, Pure Origin, Scoop, and Moda at Spring & Autumn Fair, The Hyve Group plc,is launching a new fashion podcast, Fashion Questions, to give voice to a powerful network of fashion industry insiders.

Each episode of Fashion Questions will focus on a different question with a different change maker to understand their thoughts on what the answer could be. A range of experts and retailers are lined up to talk about everything from why we are still talking and not doing when it comes to the circular economy, to why is everyone so crazy about MiuMiu’s micro miniskirt?

Hosted by the newly appointed Editor for Retail UK at Hyve, LinaVaz, Fashion Questions will welcome a wide variety of guests, kicking off with Emily Gordon-Smith, Content Director at trends intelligence experts Stylus, who discusses the MiuMiu micro-mini trend phenomenon, the hedonist party and wellness trends. Forthcoming guests also include Doug Stephens, author and retail futurist, and Annick Ireland, Founder and CEO, Immaculate Vegan.

In the first quarter of 2022, the Lenzing Group was significantly affected by the extreme developments in global energy and commodity markets. Its revenue grew by 25.7 percent year-on-year to reach € 615 million in the first quarter of 2022, primarily due to continued high demand for wood-based biodegradable specialty fibers and higher fiber prices. Specialty fibers’share of revenue currently stands at 73.3 percent.

The earnings trend reflects trends in energy, raw materials and logistics costs, although the company’s continued focus on measures to improve structural earnings in all regions mitigated this negative effect. Earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 7 percent year-on-year to € 88 mn. The EBITDA margin reduced from 19.3 to 14.3 percent. Net profit for the quarter grew by 14.3 percent to €34.1 million, while earnings per share amounted to € 0.87 (compared to €1.06 in the first quarter of 2021).

Gross cash flow increased by 2 percent to €86 mn in the first quarter of 2022, mainly due to the earnings trend. Cash flow from operating activities decreased by 28.5 percent to €79.7 milllion. Free cash flow amounted to- € 102.9 million (compared to - €99 mn in the first quarter of 2021, particularly due to investing activities in connection with the projects in Thailand and Brazil. Capital expenditure on intangible assets, property, plant and equipment and on biological assets decreased by 13.6 percent to € 182.7 million, of which approximately 44 percent was financed from cash flow from operating activities.

In the first quarter of 2022, the Lenzing Group was significantly affected by the extreme developments in global energy and commodity markets. Its revenue grew by 25.7 percent year-on-year to reach € 615 million in the first quarter of 2022, primarily due to continued high demand for wood-based biodegradable specialty fibers and higher fiber prices. Specialty fibers’share of revenue currently stands at 73.3 percent.

The earnings trend reflects trends in energy, raw materials and logistics costs, although the company’s continued focus on measures to improve structural earnings in all regions mitigated this negative effect. Earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 7 percent year-on-year to € 88 mn. The EBITDA margin reduced from 19.3 to 14.3 percent. Net profit for the quarter grew by 14.3 percent to €34.1 million, while earnings per share amounted to € 0.87 (compared to €1.06 in the first quarter of 2021).

Gross cash flow increased by 2 percent to €86 mn in the first quarter of 2022, mainly due to the earnings trend. Cash flow from operating activities decreased by 28.5 percent to €79.7 milllion. Free cash flow amounted to- € 102.9 million (compared to - €99 mn in the first quarter of 2021, particularly due to investing activities in connection with the projects in Thailand and Brazil. Capital expenditure on intangible assets, property, plant and equipment and on biological assets decreased by 13.6 percent to € 182.7 million, of which approximately 44 percent was financed from cash flow from operating activities.

BSE listed R & B Denims reported Rs 2,844 million turnover in FY 21-22 with the Profit before Tax (PAT) growing 97 per cent Y-o-Y to Rs 280 million. The yearly PAT rose 108 per cent YoY, to Rs 217 million.

In FY 21-22, R & B Denim participated in Gartex Denim Show at Delhi as well as in Cairo that helped them add to current customer base and an increase in demand for products in overseas and domestic markets. The company’s exports grew 225 per cent from 220 million in FY 20-21 to 720 million in FY 21-22.

In domestic market, the company’s selling price increased from Rs 140 in FY 2020-21 to Rs 165 mainly due to selling premium quality denims and increase in profitability. Efficient inventory management helped the company increase sales, maintain prudent working capital and increased productivity. The company increased the proportion of premium products thereby strengthening margins.

Launched by Pitti Immagine more than decade ago, e-P summit is being held in Florence, Italy for the first time. The event is on at the Stazione Leopolda from May 4-5 under the leadership of a new scientific director, Rinaldo Rinaldi, Supply Chain Management Professor, University of Florence. Sponsored by four leading tech players, Accenture, Google, Meta and mobile carrier Tim, e-P’s theme is: ‘Shaping the Digital Future of Fashion.’ It is hosting 20 meetings over the course of two days, including presentations, panel discussions, and direct dialogue between the fashion and luxury industries with startups.

The event addresses topics ranging from digital development in the creative and production process to the shift towards a digital and eco-friendly environment, as well as the use of artificial intelligence, data and the cloud to analyze consumer behavior. It will also focus on social media strategies, the integration between e-commerce and traditional distribution, and opportunities of blockchain technology, NFTs, and the metaverse.

The summit brings together a number of fashion executives and leading tech companies such as Max Mara, Pinko, Loro Piana, La Rinascente, 3rand Up Solutions, Assyst, Besight, Crea Solutions, Dyna Brains, Hyphen - Group, Joor, Lectra, etc.

India’s RMG exports increased 16.42 per cent to $1,510.77 million in April 2022, compared to 1,297 million in the corresponding month last year. Exports of cotton yarn, fabrics, made-ups, handloom products, etc went up 5.05 per cent in April to $1,119.02 million as against $1.065.20 million in April last year.

India’s merchandise exports rose by 24.22 per cent to $38.19 billion in April this year against $30.75 billion in April last year. Merchandise imports increased by 26.55 per cent in April to $58.26 billion over $46.04 billion in April 2021. The trade deficit in April was $20.07 billion, according to the Ministry of Commerce and Industry . Value of non-petroleum exports grew 12.32 per cent in April 2022 to $30.46 billion over $27.12 billion in the same month last year.

Petroleum products exports grew by 113.21 per cent, electronic goods exports increased 64.04 per cent while chemicals exports increased by 26.71 per cent in April this year. The value of non-petroleum imports grew by 9.87 per cent to $38.75 billion in April, t over similar imports worth $35.27 billion in April last year.

Kearney’s 2022 Circular Fashion Index names Patagonia, The North Face and Levi’s as the most committed brands to fashion circularity. As per a SGB Media report, the study says, only 7 per cent brands regularly use recycled materials, 54 per cent of companies use them for select items or product features, while 39 per cent use non-recycled materials.

Patagonia, Levi’s and The North Face improved their scores from 2020 to 8.50, 8.20 and 8.05 respectively. The improvement can be attributed to Patagonia’s equipment rental program and enhanced use of recycled fabrics. Levi’s launched a rental-only capsule collection of up-cycled denim made with vintage jeans under the Ganni brand. The North Face slightly improved its share of recycled fabrics.

Esprit was ranked fourth on the index followed by OVS, Gucci, Gant, Coach, Lululemon Athletica, and Lindex. The highest three newcomers tracked in this year’s ranking were Coach at #8, Lululemon #9 and Columbia Sportswear, which made it to the top quarter.

Lululemon ranked third in the sports and outdoor segment, following Patagonia and The North Face. The other companies ranked in this segment included Columbia, Decathlon, New Balance, Adidas, Nike, Mizuno, and Merrell.

Online apparel prices are rising faster than offline apparel prices in the US. In March 2022, apparel prices increased 16.3 per cent Y-o-Y and 0.3 per cent M-o-M, reveals online inflation data by Adobe. Reversing longstanding pattern of seasonal discounts impacting online apparel prices, they outpaced the Consumer Price Index (CPI) in March.

Over the last 12 months, apparel has consistently outpaced CPI, which captures prices that consumers pay for goods offline. In February, apparel prices rose 11.0 per cent in the Digital Price Index (DPI), compared to 3.1 per cent in the CPI (indexed to 2014).

Powered by Adobe Analytics, the Adobe Digital Price Index analyzes one trillion visits to retail sites and over 100 million SKUs across 18 product categories. In March, 14 of the 18 categories tracked by the DPI saw YoY price increases, with apparel rising the most.

The DPI is modeled after the CPI, published by the US Bureau of Labour Statistics, and uses the Fisher Price Index to track online prices. The Fisher Price Index uses quantities of matched products purchased in the current period (month) and a previous period (previous month) to calculate the price changes by category. Adobe’s analysis is weighted by the real quantities of the products purchased in the two adjacent months.

Intensified by the pandemic, supply chain woes are offering US brands new opportunities to bring apparel production back to the country. Many apparel makers had shifted production overseas in the 1990s mostly to China and few Asian countries that offered cheap labor, raw materials and lower operating costs. Now, with apparel manufacturing becoming more technically advanced and environmentally and socially conscious, manufacturers plan to reshore production back to the US. However, for this, they first need to reevaluate and renovate their supply chains. And as per a Fortune report, companies that seem most capable to achieve this are smaller, independent brands as they are better positioned to shift production back to the US.

Raw material shortage, high costs make reshoring unviable

Around 24 per cent of US manufacturers plan to reshore operations by 2025, says a ThomasNet report published in July 2021. However, they are incapable of reshoring as of now because of non availability of raw materials like fabric, zippers, and buttons within the country. Labor costs and overhead expenses too are an added burden which makes goods less competitive and profitable.

Covid outbreak has led to US apparel supply chains being completely destroyed and big companies are still struggling to find real-time solutions. The pandemic-induced factory and textile mill lockdowns, shipping disruptions and shifts in consumer buying patterns highlighted brands’ dependence on overseas production.

What’s more, big companies operating in the US cannot alter their production schedules as they produce millions of pieces at a time. However, smaller apparel companies can flow their products from as far as China. These brands also manufacture goods in smaller quantities to avoid using excess inventory. This enables them to sell more easily.

Innovation-key to reshoring by US brands

US brands cannot reshore production without innovating their products and processes. They are introducing innovative concepts like make-to-order and limited-edition goods to start reshoring. Brands are also digitizing fashion by using 3D designs for quicker and more efficient production. Automation is being done with made-to-order production and leveraging new technologies from innovators like Lectra, Shima Seiki, and Twine.

Innovations allow small brands to introduce pre-sale or limited-edition collections despite the small-batch production being more expensive. Product innovations enable them to build an emotional connect with consumers and highlight the benefits of slow fashion.

Smaller brands uphold their brand’s environmentally and socially conscious values by operating in small factories. Big brands consider reshoring only by engaging smaller US factories for prototyping, made-to-order goods, limited edition offerings, and upcycling, or leaning into digital experimentation, like NFTs and Web3.