At its Annual General Meeting held in Arteixo, Pablo Isla, Executive Chairman, Inditex, announced the retailers’ plans to target net zero carbon emissions by 2040. It also aims to increase use of sustainable or recycled cotton by 2023, reports Indian Textile Magazine.

Isla highlighted the group will spend €2.7 billion in transformation to a more digital and sustainable business model. Of this, €1 billion will be invested in digitalization and €1.7 billion will be invested in incorporating the latest technology across the Group stores, with the opening of as many as 450 major flagships planned for the period. In parallel with these investments, the different brands will deepen the digital integration of stores and online, adding new and innovative digital services such as the Store Mode.

In 2020, the Group’s apps and websites received over 5.3 billion visits and the eight brands’ various social media handles amassed 200 million followers. Inditex’s executive chairman noted the sharp acceleration in the transformation strategy and associated investments will allow the full development of the Group’s proprietary technology platform, known as the Inditex Open Platform (IOP). The IOP – the keystone of Inditex’s strategy – constitutes a hybrid, cloud-based digital replica of every phase of Inditex’s business model; it encompasses the entire product life cycle and enables constant interaction, feedback and fine-tuning.

The Group will also continue to make progress on existing sustainability commitments, such as the elimination of plastic. By 2023 it plans to eliminate all single-use plastics from customer interfaces. All materials the Group uses in operations (cardboard, plastic, paper will also be completely recycled by 2023. In fabrics, by 2023 all garments made of cellulosic fibers will be 100 per cent sustainable and by 2025 all polyester and linen will be 100 per cent recycled or sustainable, in line with the parameters the company has set out. The Group will continue to champion innovative research in textile recyclability over the coming years, working with partners from across the supply chain, as well as with prestigious research centres such as the Massachusetts Institute of Technology (MIT). The Group will also forge ahead with all the programs encompassed by its ‘Worker at the Centre’ strategy, designed to respect and promote social conditions in the supply chain.

In Q1 FY2021-22 that ended June 30,2021, Nahar Spinning Mills posted a net profit of Rs 100.33 crore. Tthe company’s income for the quarter grew to Rs 739.52 crore as compared to Rs 728.36 crore during Q4 FY2020-21 that ended March 31, 2021.

On annual, Nahar Spinning Mills posted a net profit of Rs 100.33 crore for the period ended June 30, 2021 as against net loss of Rs 25.41 crore for the period ended June 30, 2020. The company reported total income of Rs739.52 crore during the period ended June 30, 2021 as compared to Rs.211 crore during the period ended June 30, 2020. Its EPS grew to Rs27.81 for the period ended June 30, 2021 as compared to Rs.7.05 for the period ended June 30, 2020.

American arm of Global Brands Group has filed for Chapter 11 bankruptcy. The US-based firm plans to sell a significant portion of its remaining assets including the Airband, Ely & Walker, Yarrow, MagnaReady and B New York brands, amongst others. It recently sold its assets and inventory related to the Frye and Spyder brands.

The Group’s apparel sales have been impacted through the pandemic-hit year. Sales at US-based subsidiary dipped 44 per cent during the year that ended March 2021. Some suppliers also demanded cash on delivery and tightened terms, adding to the retailer’s financial worries.

Global Brands Group also owes royalty money to million to Kenneth Cole, $2 million to Sequential Brands and $860,000 to Marquee Brands. It is an apparel, footwear and brand management company, which designs, develops, markets and sells products under a diverse array of owned and licensed brands and a wide range of product categories.

Cotton futures contract reached a 7.5-year high in August as falling global supply gave a boost to demand from China. A report by execution-only service provider Capital.com says, the benchmark intercontinental exchange (ICE) cotton contract for October delivery hit 96.27 cents a pound (lb) on August 27. Although prices have fallen since, they stabilized around 95 cents. Starting at 77.31 cent a pound this year, the price index on cotton futures surged in the next two months as demand recovered post-COVID-19.

Growth halted in late February as Europe imposed fresh lockdowns to curb the third COVID-19 wave. Rising cases in India and Philippines and a ban on cotton from Xinjiang also derailed price growth. Increased demand from China started boosting prices in late March. This caused the October 2021 cotton contract to recover above 80 cents in early April. However, the index still remained significantly below the record high of $1.9455 a pound in 2011 amid a global supply shortage.

US’ share in China’s cotton imports sees a rise

In first 11 months of MY2021, China imported 1.2 million tons of cotton from the US. This raised US’s share in China’s cotton imports to 45 per cent, reports the US Department of Agriculture (USDA). Published on September 10 this year, the USDA report says, US exports to China reached their highest levels in eight years, with demand mostly led by China’s State Reserve. Rise in demand from China is expected to further support the US cotton market rate. The US agricultural export for the full-year (FY) 2021 is also expected to rise 24 per cent over last year to $173.5 billion, says USDA quarterly trade forecast.

In MY 2021/22, China total cotton imports are forecasted to reach 2.6 million metric ton, shows data from the Chinese Office of Agriculture Affair. Cotton consumption the country is expected to increase to 8.7 million metric ton during the year. Most consumption will be driven by improved demand from the domestic and international market, says the Chinese Office of Agricultural Affairs.

Bullish prices in 2021

Analysts at FXStreet opine, the price rise in cotton will continue until it reaches 94.5 cents a pound. This level can be used as an entry point for placing a pending order to buy. Agricultural product data provider Mintec also predicts, cotton market will remain bullish this year as cotton farmers have switched to more profitable crops such as soybean and maize (corn), due high demand in the Chinese market. However, COVID-19 and resurgence of new cases are likely to dampen consumer demand and manufacturers’ willingness to place orders, notes Cotton Incorporated in its August report.

CFDs to rescue traders from losses

In such a scenario, investors can trade cotton with contracts for difference (CFDs) on Capital.com. These CFDs allow traders to speculate on price changes in the commodity without owing the underlying asset.

With CFDs, traders can also benefit from the positive and negative price fluctuations as they maximize gains on volatile assets such as commodities. However, traders need to be aware of the high risk involved in such trading it can also maximize their losses in case the asset price moves in the opposite direction Traders need to make a thorough research on CFDs before investing in them. They should not invest more than they can afford to lose.

For years, plus-size fashion was stereotyped as something created to hide a woman’s unpleasant curves. This grossly limited the fashion choices for healthy women who had to contend with whatever was available in the market. Now this attitude towards plus size fashion is changing. Rising acceptance of diversity and body inclusivity is translating into more choices for large-size women. Still, size issues continue to persist.

Dealing with size issues

As per a Forbes report, most plus size garments are designed in a single size and later scaled up or down according to requirement. However, a garment can be scaled only up to a certain size. Extending it beyond this size can ruin not just its fit but also the overall look, says Nadia Boujarwah, Co-Founder, Dia & Co, As a solution, SHEFIT, a manufacturer of sports bras, extends its bra designs only upto three sizes. Beyond that, it revamps the designs to fit larger sizes. This approach helps the company double its revenues every year.

Though attractive, this process is quite expensive as companies have to bear the cost of buying inventories for each expanded range of sizes before their garments are sold. This leads to most companies bypassing this route, opting instead to extend their existing sizes and making only a small number of garments in plus sizes.

Meeting specific needs with right attitude

One key to be a successful a plus size retailer is to respect the customer. Companies like Dia & Co, Shefit and Ashley Stewart describe their business as a mission to meet the needs of a specific group of customers with products and the right attitude.

The concept of plus-size is nowadays not limited to fashion. It has also extended to other categories such as beddings. For instance, Big Fig Mattress makes beds only for plus-size people. The company’s President, Jeff Brown, sees its initiative as an opportunity to change the world.

Respect for consumers has become a critical component of a brand’s success these days. It is helping the industry abandon its traditional attitudes and create a new all-encompassing world.

Working conditions for garment workers were already under distress pre-COVID. The pandemic has worsened the situation with wage thefts across Asian garment factories rising, says a new report by the Asia Floor Wage Alliance (AFWA). The report states, predatory purchasing practices adopted by brands during the pandemic has forced many suppliers to lower production costs besides accepting unstable offers and delayed payments. Around l 2,185 employees employed in 189 factories in six countries including Sri Lanka, Pakistan, Indonesia, India, Cambodia and Bangladesh, have faced wage thefts during the period.

Bangladesh sees 60 per cent wage drop

As per a MDS report, world’s second largest garment producer, Bangladesh is one of the most affected countries by the pandemic. Bangladesh generates almost 11 per cent of its GDP from the fashion industry and employs 4.4 million workers. The country reported a 60 per cent decline in minimum wages last year due to the pandemic. The laid off workers had to rely on debts to satisfy their basic needs such as food, housing or health services. Around 28 per cent these workers were unable to find any other jobs. They have also not received any financial relief from the government.

Bangladesh has also not renewed its Agreement on Fire and Building Safety, which expired this year. This is compelling workers to work with bare minimum wages and in unsafe working conditions.

High job loss in India

With a worker base of 45 million direct and 60 million indirect employees in the textile and garment industry, India suffered one of the largest lockdowns imposed. This led to a 73 per cent decline in workers’ wages with companies failing to pay $29.67 million in wages and $5.3 million in bonuses. Around 88 per cent workers in the industry have lost their jobs.

Wage gap in Cambodia widens

Value chain disruptions in China and reduced consumption in the US and EU led to 72 per cent Cambodian garment workers losing their jobs. Some also faced wage cuts or temporary wage suspensions. Wage gap between male and female workers widened to 21 per cent by the end of the year from 12 per cent before the pandemic.

Pakistan workers see wage cuts

Workers’ wages in Pakistan declined 29 per cent in 2020. The country also laid off 81 per cent garment workers during the year. Workers, who succeeded in retaining their jobs, faced 5 per cent decline in monthly wages. Factories failed to pay $85.08 million in wages due to order cancellations and failed payments by brands. Most women garment workers were forced to take up extremely poorly paid jobs that roughly provided $2-3 per day. Others had to work for longer hours and also faced increased verbal and mental harassment.

No aid for COVID-positive workers in Sri Lanka

Since the outbreak, Sri Lanka has fired almost 96 per cent its garment workers. Of this, 85 per cent have not received any compensation from the government leading to 78 per cent of them falling below the poverty line between March and May 2020. Workers’ debts in the country rose from $6 a month per employee before the pandemic to $17 month in April this year. Around 94 per cent workers were paid 23 per cent less wages between March and December 2020 than in January and February 2020

COVID-19 outbreak also deteriorated the working conditions of Sri Lanka’s garment factory employees. Over thousand employees at the Brandix Lanka factory in Minuwangoda, who, tested COVID positive in October, faced physical violence and mistreatment from the government and the military.

Indonesia workers seek debts to cover basic needs

Order cancellations and raw material shortage led to loss of jobs for 72 per cent of Indonesia’s garment workers. Around 81,633 workers stopped earning $20.02 million in wages leading to 70 per cent of them getting into debt to cover basic needs. The garment labor sector is yet to recover from the pandemic effect. Though, 95 per cent laborers in the industry have received government assistance, they are still struggling to meet their basic needs, says the AFWA report.

Vietnam surpassed Bangladesh to become the second largest clothing exporter globally in 2020, reports the Financial Express. As per the World Trade Statistical Review 2021, released by the World Trade Organization (WTO), Vietnam’s share in global ready-made garment (RMG) exports rose to 6.40 per cent in 2020 from 6.20 per cent in 2019.

At the same time, Bangladesh's share in global market of clothing exports dropped to 6.30 per cent in 2020 from 6.80 per cent in 2019. The WTO statistical review report also showed that Vietnam’s RMG exports declined by 7.0 per cent in the last year when Bangladesh faced 15 per cent decline mainly due to COVID-19.

The value of annual RMG exports from Bangladesh in the last year was estimated at $28 billion when it was $29 billion for Vietnam. China remained the top clothing exporter in the world and its share increased to 31.60 per cent in the last year from 30.80 per cent in 2019.

VF Corp is working through isolated product delays to deal with increasingly tangled global supply chain. As per a Women’s Wear Daily report, compliance of suppliers with local public health advisories and governmental restrictions has resulted in isolated product delays for the company. The resurgence of COVID-19 lockdowns in key sourcing countries has resulted in additional manufacturing capacity constraints during the first quarter. Additionally, port delays, equipment availability and other logistics challenges have contributed to product delays. VF is working with its suppliers to minimize these disruptions and is employing expedited freight as needed, it said.

The company expects to spend more than $35 million this year for quick freight shipments. The company’s net income for the quarter ended July 3 totaled $324.2 million, or 82 cents a share, reversing year-ago losses of $285.6 million, or 73 cents. Adjusted earnings per share from continuing operations rose to 27 cents — well ahead of the 10 cents analysts were looking for on average. Revenues doubled to $2.2 billion from $1.1 billion.

As per Steve Rendle, Chairman, President and CEO, the company remains focused on winning in parts of business, with consumers coming back strong. It plans to take advantage of supply chain savvy and financial strength to keep goods flowing and grab more shoppers.

During the quarter, Vans led the way with sales growth of 110 percent while The North Face was up 93 percent, Timberland gained 70 percent and Dickies rose 61 percent. Supreme’s contribution to VF’s total results for the quarter included $145.7 million in sales, $88.8 million in gross profit, operating income of $31.7 million and 7 cents a diluted share. For the full year, VF is looking for Supreme to contribute revenues of $600 million with 25 cents of earnings per share.

Sam Kershaw, Buying Director, Mr Porter believes, the emerging hybrid styles of working will give rise to new hybrid style of dressing. Post pandemic, consumers will combine comfort wear with smart outfits to enhance their looks, says Kershaw in a report by The Guardian.

Kershaw predicts, men will eventually shop across different styles. He says, the pandemic was a catalyst in menswear. It sped up a casualization already in process. In 2019, market analysts Kantar reported that sales of suits were down 7 per cent year-on-year and even investment banking was loosening up – Goldman Sachs announced a new “flexible dress code” with suits no longer mandatory.

Kershaw says items ranging from longline shorts to statement watches have become new trends since the lifting of restrictions on July 19. The biggest ‘trend’ being witnessed is the shift in customers’ shopping habits to prioritize well-made things, with longevity and functionality top of mind. Hybrid items that can work for working from home, for an office meeting and weekend activities tick those boxes.

Revenues of US-based global designer of footwear, apparel and accessories Deckers Brands grew 78.2 per cent to $504.7 million in Q1 FY22. The company’s net income rose to $48.1 million during the quarter. Its gross profit increased to $260.5 million from $142.5 million, while income from operations declined by $7.7 million to $61.8 million.

Sales from the company’s UGG brand grew 70.8 per cent to $213.0 million from $124.7 million in the fourth quarter of last fiscal. Sales from Hoka One One brand also escalated by 95.5 per cent to $213.1 million while those from Teva brand expanded by 65.9 per cent to $58.5 million and Sanuk’s sales increased by 13.7 per cent to $15.0 million). Sales from other brands including Koolaburra boosted by 435.9 per cent to $5.0 million. Deckers Brands’ wholesale sales rose 140.2 per cent to $344.3 million and DTC sales increased by 14.7 per cent to $160.4 million.

In fiscal 2022, the company expects sales to be between $3.010 billion to $3.060 billion.