For the fifth consecutive time, Calvert Research & Management has included PVH in its list of Barron’s 100 Most Sustainable Companies. As per a Bakersfield report, analyst ranked the company fifth while it ranked first in the apparel retail category. The company strives to continuously improve through inclusion and diversity, sustainability and strong governance. PVH focuses on sustainability as the core of its multiyear plan and strives to improve in the area, says Stefan Larsson, Chief Executive Officer. However, it needs to step up efforts to achieve Forward Fashion targets, reduce negative impacts to zero, increase positive impacts to 100 per cent and improving lives across our value chain.

Developed by Calvert Research & Management, Barron’s 100 Most Sustainable Companies ranking first rated top 1,000 largest publicly traded companies by market value before analyzing and ranking these companies in 230 ESG (environmental, social, and governance) performance indicators.

LVMH's top fashion brand, Louis Vuitton plans to raise global prices to offset increased manufacturing and transportation costs. Price rise will affect Louis Vuitton stores selling leather goods, fashion accessories and perfumes worldwide. Chinese social media bloggers estimate, prices of few handbag models such as Capucines would rise by 20 per cent or more in China. Website tracking the luxury market, PurseBop speculates, the increase would range between 4 per cent on the lower end and 15-18 per cent on average on the higher end.

Luxury goods companies have been leveraging the benefits offered by the COVID-19 pandemic by increasing the prices of high-end fashion items and accessories. Chanel increased prices on some of its handbags three times last year, with the price of the Classic Flap bag increasing by over 60 per cent since the beginning of the pandemic.

Japanese clothing and footwear brand Asics, has reported 121.8 per cent increase in operating profit to €83.1 million during the year ended December 2021 compared to the same period a year earlier. The brand’s revenues grew by 13.7 per cent across Europe, Middle East and Africa (EMEA) region.

The brand has attributed growth to surge in revenues from wholesale and online channels. Its e-commerce revenue across the EMEA grew by 16 per cent during the year compared to 2020. Asics’ wholesale sales across the EMEA region surged by 13 per cent year-on-year, with 27 per cent increase in Italy, 19 per cent in Germany, 16 per cent in France and 18 per cent in South Africa. Founded in 1949, Asics’ products include footwear, clothing and accessories.

Jennifer Sey, Brand President, Levi Strauss & Co has resigned from her post after being forced to quit her job for voicing her opinion that schools should remain open during the COVID-19 pandemic. Sey spent around 23 years in the company, serving as its global brand president since 2020.

Since the beginning of the pandemic in 2020, Sey has vocally opposed the US public schools’ closure mandate, writing op-eds, appearing on local news shows and organizing rallies in support of keeping schools open. As her views went public, Sey alleges the company’s head of corporate communications, its legal and HR departments and Bergh warned her that she should reflect on her statement.

Her responsibilities would be fulfilled by Seth Ellison, Executive Vice President and Chief Commercial Officer on an interim basis.

Cambodia's garment, footwear and travel goods exports increased by 15.2 per cent in 2021, indicates a report by the General Department of Customs and Excise. As per The Star, the country exported products worth $11.38 billion last year, against $9.88 billion exported in previous year. Garment, footwear and travel goods industry comprises roughly 1,100 factories and branches besides employing approximately 750,000 workers, according to the Labor Ministry.

Buoyed by the expected rise of global demand and foreign investors' confidence, Cambodia’s economy is projected to grow at a higher rate of around 5.6 per cent in 2022. The economy is projected to have grown by 3 per cent in 2021 after a contraction in 2020. Cambodia has so far administered at least one dose of COVID-19 vaccines to 14.37 million people, or 89.8 per cent of its 16 million population, according to its Health Ministry. Nearly 13.8 million people, or 86.2 per cent of the population, have been fully vaccinated with two required shots, and 5.97 million, or 37.3 percent, have taken a third dose or booster shot, said the ministry.

Adidas has launched the first product made in collaboration with Finnish textile fiber manufacturer Spinnova. As per a Spin Off report, the Adidas Terrex hoodie comprises 25 per cent wood-based Spinnova fibers and 75 per cent organic cotton. Spinnova fibers used in the hoodie are mechanically ground and processed into yarn without the use of harmful chemicals. It also does not any additional dyes. The product will be available in limited quantity on Adidas.com and at other select retailers from July this year.

About a year ago, Spinnova announced plans to build its first commercial factory in Finland. The factory is expected to meet the growing demand for sustainable materials from global textile brands. It will begin production at the end of 2022, along with Spinnova’s strategic partner, cellulose producer Suzano.

Pandemic-related restrictions restricted retail sales in India to just 91 per cent of pre-pandemic levels of January 2019 and 2020, indicates a survey by the Retailers Association of India (RAI). Sales in the East declined 13 per cent year-on-year in January 2022 compared to January 2019. This was followed by the Western region where sales declined 11 per cent and North where sales dropped 8 per cent. Least impact was in the Southern zone which registered a mere 2 per cent decline in sales as compared to January 2019, says RAI.

Beauty, wellness and personal care categories witnessed the biggest 24 per cent drop in sales compared to January 2019. These were followed by furniture and furnishing where sales dropped 12 per cent; apparel and clothing registered 7 per cent decline in sales. On the other hand, sales in the jewelry segment grew 11 per cent in January, as compared to the same month in 2019 and quick-service restaurants also witnessed a growth of 9 per cent. Kumar Rajagopalan, CEO, RAI, says, sales growth can be attributed to opening of retail businesses across the country till late hours in the evening.

However, Delhi and Haryana are still not allowing stores to be open till late, which is creating a big impact on businesses, Rajagopalan adds.

Supply chain bottlenecks and COVID disruptions failed to dent apparel demand from US brands and retailers in 2021 as the country’s garment imports rose 27.42 per cent during the year. This came as a huge relief for exporters whose shipments had declined 16.37 per cent in 2020 following store lockdowns and factory closures, reveals the Commerce Department’s Office of Textiles & Apparel (OTEXA) stats.

China’s imports share rises

In December 2021, US’ apparel imports rose by 33.7 per cent to 2.51 billion square meter equivalent (SME) compared to December 2020. As per Sourcing Journal, apparel imports from China increased 31.45 per cent to 11.13 billion, (SME) increasing the nation’s imports share to 37.8 per cent from 36.6 per cent in 2020. The second largest exporter was Vietnam whose shipments rose 15.52 per cent year over year to 4.38 million SME in 2021. In December 2021, Vietnam’s shipments increased by 7.8 per cent to 340.73 million SME.

US imports from Bangladesh surged 37.85 per cent to 2.8 million SME during the year and by 76.7 per cent to 273.98 million (SME) in December 2021. Imports from the country were impacted by labor strife and production inefficiencies. Excessive inventory and waste in textile and apparel factories also hampered exports from the country, shows a study by the Bangladesh University of Textiles.

Exports from Asian countries dominate

Asian countries like Pakistan and India emerged the largest apparel suppliers to the US in 2021. India’s exports increased 41.69 per cent to 1.28 billion SME while Pakistan’s shipments surged by 41.89 per cent to 895 million SME during the year. In December 2021, India’s exports rose 62.7 per cent to 115.14 million SME while Pakistan’s surged 31.1 per cent to 86.41 million SME.

Exports from Indonesia and Cambodia witnessed a modest increase of 20.14 percent to 1.11 billion SME and 10.34 per cent to 1.24 billion SME, respectively. Indonesia’s imports in December increased 52.7 per cent to 91.25 million SME while Cambodia’s declined 5.9 per cent to 87.52 million SME.

Other countries that emerged amongst top 10 apparel exporters to the US included Western Hemisphere producers Honduras, Mexico and El Salvador. US imports from Honduras increased 28.13 per cent to 872 million SME during the year. Similarly, shipments from Mexico increased 21.52 per cent to 826 million SME and from El Salvador it rose 33.23 per cent to 656 million SME.

More companies take to nearshoring

As per a survey of 38 apparel companies by McKinsey & Co, 71 per cent revealed plans to increase nearshoring while 13 per cent plan to increase over 10 per cent. Around 24 per cent companies said they plan to focus on reshoring as a part of their sourcing strategy.

Central America emerged the most favored destination for these companies. Around 80 per cent of North American apparel firms said they plan to increase sourcing from the region in future.

Even as legislators across the world call for supply chain transparency, reports of global brand suppliers mistreating workers continue to make headlines. There are numerous reports of suppliers locking workers in factories, manager sexually harassing female staff among others.

To rectify these issues, stakeholders need to adopt a unilateral thinking approach, says a report by Forbes. They need to use open-source data that encourages information sharing amongst organizations to ensure transparency and traceability across supply chain.

Unhindered flow of information amongst brands, suppliers

As per McKinsey & Company and Open Data Institute, the global market potential for open data is around $5 trillion. The market mandates, all actors including brands, suppliers, NGOs and industry bodies to share information and knowledge freely. It urges them to disclose their previously private lists of supplier factories and third-party production facilities. This would help industry players understand compliance risks and cure social and environmental malpractices.

The quality of data insights across the apparel value chain has been improved by new technological and software developments in the real time tracking of production. This enable brands to rectify issues in supplier facilities. It also increases accountability amongst brands, thus helping them build customer’s trust, improve their intangible assets and sales performance.

Eradicating toxic substances from supply chains

Powered by Azavea, the Open Apparel Registry (OAR) translates supply chain data into democratic, usable and safe platforms. The database holds information on over 57,000 facilities, spanning more than 120 countries. It collates these global factory lists into a single map and assigns each site with a unique 15-character OAR ID using a sophisticated algorithm. As per Katie Shaw, Chief Program Officer, the tool benefits organizations of all sizes. Smaller fashion brands such Ted Baker can gain insights into their preferred list of suppliers and the potential risks of sourcing from new geographic regions. However, they need to consider the governance structures and the management of open-source data before using it.

Brands can use OAR’s Application Programming Interface (API) to eradicate toxic substances from supply chains. The tool is also been used by the Business and Human Rights Resource Centre to rectify cases of workers’ rights infringements. It is currently been adopted by over 79 brands to eradicate social injustices. Another solution for open-source data management has been introduced by the US-based Sourcemap. The solution offers brands insights into the end-to end of supply chains to meet the required compliance standards. It is being used by brands and companies like VF Corporation, Ferrero, Mars and Beauty Counter to trace and disclose supplier information.

Awareness on information sharing

However, open-source data is currently hindered by the reluctance of brands to share source information. Smaller and medium-sized brands hesitate to disclose the information regarding the facilities used in their supply chain due to their fear to losing competitiveness. The time lag in the mindset shift towards a culture of access is also slowing the uptake of using open-source data and mapping tools. Hence, brands need to create awareness about the benefits of information sharing through organizations like OAR and Sourcemap is imperative to build the business case for information sharing. They also need to encourage policy makers to transform voluntary fashion initiatives into mandatory compliance.

Textile recycling company, Brightfiber Textiles plans to launch a new facility in Amsterdam next year. As per the Spin Off report, the factory will produce circular, sustainable and full-color fiber and yarn collections. The collections will be produced using the €1 million grant received by the company from the Dutch Ministry of I&W (Department of Circular Economy) for the purchase of a 2.5 million kg fiberizing line.

The production process will involve fiberizing the local post consumer material by color, mixed with colorful industrial waste streams and sustainable materials. The factory aims to launch this process on an industrial scale in partnership with Dutch company Wieland, says Ellen Mensink, Co-Founder, Brightfiber.

The factory has been part-financed by the Circular Economy department of the Ministry of Infrastructure and Water Management.

According to data provided by The Netherlands Ministry of Foreign Affairs, currently less than 1 per cent of all brand collections are made of recycled materials with 25 per cent of them being made from PET bottles, rather than old clothes. Brightfiber's factory aims to create a fully circular process by recycling actual textiles. It also aims to save thousands of liters of water per item, as well as eliminate the need for polluting chemicals and dyes.