Indo Count Industries plans to expand and modernize existing capacities with capital expenditure (capex) of Rs 200 crore. The project will be funded by a mix of internal accruals and debt and is expected to be operational in H2 (October-March) of FY2022. The company’s bed linen capacity will be expanded by around 20 per cent from existing annual capacity of 90 million meter to 108 million meter by debottlenecking and balancing its facilities.

The company also plans to add cut and sew facilities besides enhancing the capacity for Top of the Bed (TOB) products. It will also modernize the existing spinning unit of the company with compact spinning technology. Post modernization, this capacity will also be used for captive consumption in the home textiles unit.

The company’s home textiles plant currently operates at full capacity. The expansion is expected to increase the company’s revenues by Rs 600 crore over the next two-years.

To rid themselves of the excess stock created by cancelled orders over the past 12 months, suppliers are selling branded clothes illegally across Asian markets. As per Asian Insider, these merchants usually pay in cash and take the delivery directly from the factories.

An investigation in a secondary market reveals, buyers buy the stocks from manufacturers and sell it to countries where there are likely to be no patent problems or they can change the label to a desired one to sell it to any country. They are doing it basically to get cash in hand to keep the factory running for the present. However, their trade is deemed illegal as the merchandises were meant for export and thus executed under Tax free bonded facility.

India has refused to withdraw anti-dumping duties on Bangladesh jute imports. India imposed anti-dumping duties on Bangladeshi and Nepali jute goods on January 2017. The duties imposed ranged from $19 to $351.72 per ton on import of jute products, including jute yarn, twine, hessian fabric and jute sacking bags from Bangladesh for five years. They aim to provide guidelines and tools to discipline anti-dumping actions. The core idea behind the imposition of anti-dumping duty was to protect local Indian jute industry from cheaper Bangladeshi imports. Usually, if a firm exports a product 'at a price lower than the price it normally charges on its own home market,' it is termed as 'dumping' the product. India refused to withdraw duty as it is a quasi-judicial measure and cannot be resolved through discussion.

In the latest issue of Apparel Insider, researcher Veronica Bates Kassatly, urges apparel brands in Uzbekistan to prioritize restoration of the Aral sea. She refuses to believe that the country’s cotton sector is responsible for the destruction of Aral Sea. According to Kassatly’s analysis, cotton is not the thirstiest crop in the Aral region. Moreover, the Aral Sea has continued to shrink since the end of the Soviet era – during which an aggressive policy of agricultural expansion was pursued.

She urges brands to support the development of Uzbekistan’s infrastructure as this would be a more powerful and effective message of sustainability and intent to make amends for the global impact of fast fashion, than anything that the present system can provide.

Tiruppur’s over 8,000 garment manufacturing units shut down recently to protest against rising yarn prices. Low supplies have pushed up yarn prices by almost 50 per cent to Rs 300-320 per kg in the last four months. Members of the Tirupur Exporters Association and the South India Hosieries Manufacturers Association are worried this may lead to finished goods’ exporters losing their competitiveness in foreign markets.

Rising yarn prices are also impacting the capital inflow of MSMEs, delaying revival plans, says Vinod Kumar Gupta, Managing Director of Dollar Industries, who has factories in garment clusters of Tiruppur, Ludhiana and West Bengal. Kolkata-based Federation of Hosiery Manufacturers Association has urged finance minister Nirmala Sitharaman, the Union textiles and state textile ministers in Tamil Nadu and West Bengal to ban yarn exports till prices stabilize.

Focus on exports, global shortage fuel yarn prices

Yarn manufacturers including K B, Agarwala, Managing Director, Rupa & Company and President, Federation of Hosiery Manufacturers Association (FOHMA) also attribute the rise in prices to mill owners’ excessive focus on export markets, causing domestic supply squeeze.

Vinod Kumar Gupta, Managing Director, Dollar Industries agrees, spinning mills are taking advantage of the demand-supply gap and increasing prices by 60 per cent whereas raw material prices have increased only by about 30 per cent. However, Sudarshan Jain, President, Knitwear and Apparel Manufacturers Association of Ludhiana, blames global shortage of basic raw materials such as fibers and chemicals, for the supply squeeze. While Sandeep Jain, Executive Director, Oswal Woollen Mills points out, yarn shortage and upsurge in prices is due to production cut in April-July of 2020.

Seeking government intervention

The hike in yarn prices is being passed on to consumers as brands like Dollar have hiked garment prices by around 10 per cent in the past few months. The brand plans to hike prices by another 5-7 percent from April 1, 2021. Innerwear brand Rupa too has hiked prices by 10 percent. Both companies fear further increase in prices may impact demand for their garments amongst consumers.

The one-day strike in Tirrupur was the first step taken by garment associations to attract government’s attention to this issue. They plan to hold several meetings over the week to urge spinning mills to streamline supply and ease prices of yarn domestically.

Luxury fashion labels have always been reluctant about the resale market. However, the perception is changing now with growing popularity for secondhand luxe goods and focus on sustainable goods. In fact, many luxury brands are partnering resale platforms to increase sales.

Committed to responsible fashion

As per a Refinery29 write up, brands now consider resale integral to maintaining value. They view it as a strong motivator for shoppers to buy luxury goods, says Allison Summer, The RealReale.

ThredUP’s 2020 Resale Report expects the secondhand luxury goods market to grow from $28 billion in 2019 to $64 billion by 2024. Of late, there have been several notable partnerships between companies and designers. For example, designer Victor Glemaud launched its first shoe collection, created in collaboration with Nigerian accessories brand Shekudo, on the The RealReal platform. The luxury resale platform was also home to conceptual fashion label Imitation of Christ’s Spring ‘21 collection. Similarly, designer Christian Siriano altered two dresses from his collection from ThredUp and relaunched them on the runway.

Embracing their own secondhand clothes has become a way for brands to show their commitment to responsible fashion. Most recently, social shopping app partnership app, Depo partnered designer Kenneth Nicholson to launch Division 332-a new collection made from discarded fabrics.

Adopting circularity in fashion

Brands are also embracing secondhand fashion to rid themselves of excess inventory. Sustainable fashion brand Mara Hoffman organized an archive sale in July to release unsold inventory. She has been a strong supporter of secondhand clothing and believes real platform give another life to discarded garments besides extending their lifespan. The designer recently launched an in-house resale platform know as Full Circle Marketplace to buy her own brand’s garments.

The RealReal’s partnership with sustainability trailblazer Stella McCartney in 2018 has encouraged more brands to embrace resale. In October, the resale platform launched an online shop with Gucci to sell a curated selection of secondhand goods from consignors. Like in February, Vestaire launched a buy-back program with Alexander McQueen to enable customers to sell their second luxury items in exchange for store credit. Thus, resale is fast becoming a way to adopt circular fashion, says Steve Dool Head-Brand Partnerships, Depop. As the 2020 Vestiaire Collective X BCG survey reveals, around 62 per cent consumers are more willing to purchase from fashion brands partnering resale platforms.

This popularity is being driven by younger consumers' growing interest in sustainability. In future, more such partnerships are likely to be formed as designers are keen to expand the lifespan of their collections by making clothes that can be resold.

Last year, Vietnam exported more textile and garment items than those entitled to preferential tariffs in the Eurasian Economic Union under a bilateral free trade agreement.

The Ministry of Industry and Trade recently received a diplomatic note from the Eurasian Economic Commission saying that while the quota for jerseys, pullovers, cardigans, and waistcoats was 1,520 tonne a year, exporters had shipped over 1,640 tonne. Exports of knitted women’s suits also exceeded the quota of 382.7 tonne, with 414.9 tonne being shipped.

According to the safeguard measures incorporated in the agreement, Vietnamese textile-garment exporters will therefore not be entitled to preferential tariffs for a period of six to nine months and instead will have to pay Most Favored Nation import duties.

However, Pham Xuan Hong, Chairman, Chi Minh City Textile and Garment Association, said, its members had not received any warnings from their partners in the EAEU market. Nguyen Ly Truong An, Deputy CEO, Sea Air Global, said some textile companies with factories in Vietnam import products from China and pass them off as made in Vietnam, thus causing export volumes to surge. He urged authorities to take strong action against this.

The Trade Remedies Authority of Vietnam announced a list of 13 other products also likely to face trade origin fraud or illegal transshipment investigations, including plywood made from hardwood, foam cushions and wooden cabinets exported to the U.S., and car tire exports to the US and the EU.

A Forrestor report released in April 2020, predicted global retail industry to have gone through a fundamental shift with sales declining by 9.6 per cent or $3.1 trillion due to the pandemic.

The world also witnessed a sharp drop in consumer spending on fashion, and beauty during the year. Instead of visiting stores, consumers scrolled through social media channels to improve their engagement with apparel and fashion brands. However, brands found it challenging to convert this to actual sales as consumers restrained from discretionary spending.

As per experts, these shifts in consumer spending are likely to persist in a post-pandemic future as consumers become accustomed to online shopping.

For organized, enriched and channel-neutral information

In 2021, retailers are likely to become more agile as they embrace the omnichannel route for sales. They are likely to adopt the robust product information management (PIM) solution which will provide them with organized, enriched and channel-neutral product information. This will help them extend product delivery across the web, mobile, social media, in-stores, and other third-party channels and engage customers with a seamless omnichannel experience.

By centralizing all product information, a PIM solution will help retailers manage inventory, both for offline and online distribution channels, with ease and accuracy. It will also enable them locate the right products for processing orders, update stock regularly to match sales and return figures, and answer customers’ questions on product availability.

Appealing to shoppers’ preferences through new solutions

Retailers are also likely to incorporate immersive solutions to connect the real and the virtual worlds. They will useinnovative technologies like augmented reality (AR) and virtual reality (VR) to establish an emotional connection with consumers and appeal to their shopping preferences. Implementation of AR/VR in the fashion retail space helps these retailers prioritize customer safety while powering D-to-C channels for highly optimized and immersive buying experiences through in-store navigation, smart mirrors, contactless virtual try-on, and prolific personalization of products.

The PIM solution offers helps retailers to bring content, commerce, and community together to push consistent, high-quality data to various output channel, It helps them align next-generation digital capabilities with the critical security, production prowess, and business agility.

To cater to changing consumer expectations and allay their fears, fashion and retailers plan to offer a contactless or touch-free retail experience. PIM helps them achieve this goal by introducing new omnichannel strategies

Held from March 17-19, 2021 at the National Exhibition and Convention Center in Shanghai, the 2021 Yarn Expo Spring focused on smart recycling technologies and customization. The meticulously planned expo managed to meet the multi-functional demands of its consumers. Yarn producers attending the expo, deliberated on the current downward spiral of yarn prices.

As recycled chemical fiber plants do not have a large inventory currently, they continue to execute previous orders. These plants are waiting for the downstream demand to improve, and prices to stabilize. However, plants manufacturing recycled polyester filament yarn and colored recycled staple fiber, opined,prices of high-end re-PSF are unlikely to improve as they have limited added value.

Participants at the expo expected the market for 3A-grade white flakes to improve as international brands have strengthened their presence in the market. Big polyester plants have also entered the recycled market to fulfill their procurement needs.

Launch of new products

Participants also focused on new products like rose fiber which is made from rose scent and known to be anti-oxidant. The fragrance of this fabric lasts for 5-10 years. The fabric costs over RMB10,000 per piece and its shoulders are cold-proof. The filling content of the double quilt made from this fabric is different for men and women.

Another product launched at this expo included imported goose down which costs more than RMB 800,000 per tonne. A single winter quilt made from this fiber weighs 1,200 grams and costs more than RMB 300,000.

Focus on recycled nylon

In addition to recycled polyester, this year, Yarn Expo also focused on recycled nylon. Currently produced only on orders, high-end recycled nylon fiber is 50 per cent more expensive than the ordinary fibers. The overall output of recycled nylon fibers is less than 20,000-30,000 tons.

Manufacturers of zippers and webbing in accessories focused on environmental protection concepts. Sustainable products such as recycled fabric, organic cotton, and Tencel fabric were also introduced at the expo.

Future trends

The expo also deliberated on the 14th Five-Year Plan which focuses on six types of consumption; information consumption, digital consumption, green consumption, customized consumption, experiential consumption and fashion consumption. In addition, it also pointed out to the rise of high-end Chinese brands in the fields of cosmetics, garments, home textiles and electronic products.

Third quarter revenues of Nike Inc fell short of Wall Street estimates as the brand grappled with supply chain problems in North America and a slump in sales at brick-and-mortar stores shut due to the COVID-19 pandemic.

As per data from Refinite, revenues of the world's largest sportswear maker rose to $10.36 billion from $10.1 billion during the year while analysts had expected them to rise to $11.02 billion.

The brand’s net income climbed to $1.45 billion or 90 cents per share from $847 million, or 53 cents per share, a year earlier. Analysts had expected income to rise to 76 cents per share.

The brand’s revenues in North America fell by 11 per cent on a currency-neutral basis where container shortages and U.S. port congestion held up inventory by more than three weeks and delayed shipments to retailers.

In Europe, the Middle East and the Africa region, 45 per cent of Nike-owned stores were closed for parts of the last two months of the quarter. Currently, 65 percent of stores in EMEA are open or operating on reduced hours,