The Walmart Foundation awarded Accelerating Circularity, collaborative industry project developed to accelerate the textile industry’s move from linear to circular, a grant of $1.2 million for circular textile-to-textile systems trials using spent textiles generated on the East Coast of the United States.

Accelerating Circularity’s 2020 research on spent textiles, collectors, sorters, pre-processors and recyclers showed opportunities and gaps. It plans to create links through multi-party collaborations as part of newly identified circular models. The grant has been awarded to validate circular systems models through trials, which aim to move spent textiles through the key nodes of circular systems: collecting, sorting, pre-processing, and chemical and mechanical recycling through fiber, fabric and garment making and -- to close the loop -- brands and retailers. Accelerating Circularity is collaborating with product digitization pioneers Eon, leveraging their CircularIDTM Protocol to support the implementation of circular product passports. Validated systems can help with the uptake of new circular business models and employment opportunities for each of these new or expanding businesses.

Circular systems success requires industry wide collaborations. It has already engaged industry organizations and individual companies throughout the supply network, and it will recruit new participants who recognize that working together is essential through open calls. Connection at each step from collecting spent textiles to demand is the key to success.

The open calls will include - brands and retailers who want to offer circular products to their customers. Cut and sew manufacturers who can make circular products and others who have technologies and processes that will support circular systems.

The pandemic has changed retail across the world, especially with the huge push for online shopping, and consumers shifting to digital channels due to the lockdown. An analysis by Nick Everitt, Director of Ddvisory, EMEA, Edge by Ascential looks at what actually changed last year and how should retailers ensure continuity and for their e-commerce reveals a year where bricks and mortar e-commerce gained significant share, as retailers were forced to increase capacity overnight with demand switch from stores to online, reports UK-based Retailtimes.

E-commerce, shopping festivals and more

The study shows in the past year consumers worldwide flocked to e-commerce. What’s more ecommerce moved much beyond its traditional focus on functional shopping events and greater interaction. “One component was a renewed effort in shopping festivals, resulting in the festivalisation of retail in the fourth-quarter peak,” it says. The popularity of shopping events indicated how shoppers will predominantly make more non-essential purchases like apparels and beauty products in future.

Even though Amazon’s Prime Day was postponed due to the pandemic, the delay and short run did not deter shoppers with the biggest Prime Day ever – achieving sales worth $10 billion. And sales from third-party sellers were 60 per cent higher than last year.

Similarly, Alibaba’s Single’s Day also broke records, with sales exceeding $74 billon (up to 26 per cent versus the same period a year ago). And this year’s event was extended to 11 days indicating a change seen in other markets towards more prolonged promotional calendar, while JD.com also posted record results for its event with GMV of $41bn (up 33 per cent).

At Alibaba’s sale day saw global brands gain with over 31,000 brands participating and benefitting from the significant demand from Chinese consumers unable to travel. US brands led the way, generating sales worth $5.4 billion– the largest contribution of any overseas market. Apparel and beauty brands showed strong results, with Adidas, Nike, L’Oreal and Estee Lauder achieving sales of over $14.9 million.

Moreover, this year Black Friday and Cyber Monday’s events too indicated significant growth, and as per Adobe’ estimates US spending on Black Friday was up 22 per cent, a new record. “However, it is the growth of Single’s Day in China which shows the scale and power of coordinated online-first events. As Alibaba continues to evolve the festival, we will see more brands partnering to drive their digital transformation in the world’s largest ecommerce market,” says the Retailtimes report.

No wonder many retailers are now putting in place more personal e-commerce experiences, as store closures and social distancing rules impact footfalls. The Edge by Ascential analysis indicates in 2025, digital purchases will make up 50 per cent of sales. This raises questions about physical stores and their importance for shoppers in their retail journey. If stores become simple parts of the brand’s relationship to customers, chances are that luxury brands will be stronger in negotiating with retailers.

In 2020, 57 per cent luxury customers were below 35 years. They came with their own set of values about inclusion, activism, sustainability that imply adaptation from brands and retailers. Therefore, many luxe brands diversified into fresh millennial-rich territories to broaden their audience and future-proof by going beyond hospitality. For example, Balenciaga showcased its collection through a video game and launched collectible items; Dior launched a homewear line; Gucci launched a film festival GucciFest featuring Harry Styles, Billie Eilish and more.

With US Department of Agriculture (USDA) projecting lower opening stocks, production and ending stocks this cotton season from October 2020 to September 2021, global cotton prices shot up from the beginning of this year. This surely is good news for Indian cotton exports. As a Rajkot-based raw cotton, yarn and spinning waste trader Anand Poppat says based on these trends, India’s cotton exports can touch 65 lakh bales (170 kg each) and this can help reduce the country’s huge carryover stocks from last season, reports Moneycontrol.

However, as per Cotton Association of India (CAI) president Atul Ganatra export demand is slow at the moment due to the pandemic and ongoing lockdown in Europe and other countries. CAI pegs exports at 54 lakh bales this season.

Global cotton prices on a high

A little number crunching reveals as on January 19, 2021, cotton prices in New York were 81.29 US cents or (Rs 47,075 a candy of 356) per pound for delivery in March against the previous close of 80.70 cents. For May delivery of cotton for May the prices being quoted is 82.60 cents (Rs 47,850/candy) and July delivery stood at 82.91 cents (Rs 48,025). All these figures are above previous close. In comparison, India’s Shankar-6 variety, a benchmark for exports, was quoted at Rs 43,400-43,600 a candy.

Ganatra says cotton prices in India are steady after some correction last week. On MCX, cotton for delivery next month was traded at Rs 21,420 a bale (170 kg), which converted to candy is Rs 44,856. In fact, raw cotton prices are regaining after a drop.

Chinese demand good for India

The USDA in a recent outlook projected lower production in the US, Pakistan, and Mali could offset the higher production in Greece, Turkey and Australia. In fact, Turkey’s higher production levels were revised later from 16 per cent increase to four per cent. While consumption estimates for China, the world’s largest consumer, and Turkey were increased. As per USDA, China is expected to import 135 lakh bales.

The world’s largest producer of cotton, India, whose production is pegged at 377 lakh bales by USDA, could export nearly 64 lakh bales. CAI however does not want to speculate on Indian cotton exports just yet. However, other stakeholders are more optimistic and expect prices to rise further with reports of China’s textile exports being higher than last year. Chinese are importing yarn from Bangladesh and Pakistan with growing demand and depleting stocks. While Ganatra expects cotton prices to rule steady, others say chances were bright for a rise in rates and exports soon.

Poppat explains as of now exporters can avail CCI’s huge inventory and this is keeping prices on a leash, as the CCI has fixed a cap for daily sale. If the cap is removed, prices will go up. If cotton futures in the global market rise another 3-4 cents, it could tend to push up Indian prices, he feels.

Lower carryover stocks

Poppat also believes export demand will not affect domestic spinning sector, which has two to 2.5 months inventory. He also expects premium for quality cotton to increase as availability is low. And with higher exports cotton carryover stocks will go down to 85 lakh bales this season against 125 lakh bales last season. However, CAI, projects carryover stocks at 113.50 lakh bales estimated based on India’s cotton production which is pegged at 358.50 lakh against 360 lakh bales last season.

Meanwhile, the Ministry of Agriculture in its first advance estimate of commercial crops for 2020-21 season, projects cotton production at 371.18 lakh bales. Carryover stocks are higher as the textile industry had to shut during due to the pandemic and lockdown.

India may impose anti-dumping duties on viscose spun yarn to protect domestic players from cheap imports from China, Indonesia and Vietnam. The Manmade Yarn Manufacturers Association of India have urged the government for this as the viscose yarn imports from these countries hurt domestic manufacturers. Following the investigation, the Department of Trade Remedies under India’s Ministry of Commerce & Industry recommended the move.

Viscose spun yarn originating or exported from China, Indonesia, and Vietnam will attract duties ranging from $0.25 to $0.80 per kg for five years from the date of notification issued by, DGTR said in its final investigative data. The product under consideration is viscose spun yarn, which is not kept for retail except sewing thread by weight of synthetic viscose staple fiber by 85 per cent or more by weight. Demand for viscose fabric has risen sharply in recent months.

Viscose-cotton blended yarn production is currently limited to a few spinning mills in and around Erode. These spinning mills can meet only 50 per cent of the domestic demand, which has resulted in increased imports.

The price of viscose yarn, which was around $1.98 per kg, has risen to $3.01 per kg today due to the government announcement. However, industry experts feel that now is not the right time to impose anti-dumping duty on viscose cut yarn. As the proposed tariff would affect viscose garment production in the domestic and export markets.

The European Union plans to extend a helping hand to Myanmar’s garment workers, especially women. An additional €5 million from its Myan Ku Fund will be used to help Myanmar’s garment workers, who continue to struggle from factory closures and lay-offs amid COVID-19. The EU has now channelled €10 million in support of the mostly unemployed women migrant workers in the sector. Some 60,000 workers have already received financial assistance since the funds were first distributed last year.

In May 2020, the EU disbursed a total of 108,320 cash assistance payments to over 60,000 garment factory workers from every State and Region of Myanmar. 84 per cent of the beneficiaries were women, and the greatest support went to those who were pregnant and to those workers who received little or no severance pay.

Migrant workers and workers willing to complete skills training programmes will also be supported. The scope of expert nutritional support services is also expanding, with 2,000 women targeted to receive maternal counselling and direct nutritional support from the project’s doctors.

The price per kg of Indian woven cotton yarn rose from $2.65 in August last year to $3.65 in January this year an increase of 37.7 per cent. The price per kg of combed cotton yarn of 30s count is now $3.55 per kg with an increase of 8.33 per cent over December.

The price of Indian cotton fiber has not increased significantly but the price of cotton yarn is higher than domestic and export prices. The problem is exacerbated by uncertain demand in supply chains. International buyers resumed their orders in the second half of 2020. Already inventories have dried-up as supplies failed to match demand and spinning mills resumed operations late across India.

The demand for Indian yarn is growing with a large number of orders coming in from Bangladesh and Vietnam. Bangladesh is already planning to buy from the stock market as the price of cotton has skyrocketed.

Manpower was limited at the time of the lockdown-induced factory closure resulting in limited production. Later when demand increased, traders and agents started selling more to those who were willing to pay higher prices and, therefore, prices have risen significantly in the last six months.

According to experts, the price may rise further by March 21. This could lead to further difficulties in the Indian textile and garment supply chain. Already weaving price increased from 12-15 paisa/pick to 20-24 paisa/pick in India.

Encouraged by the growing demand for loungewear and sustainable fashion H&M has linked with Lee jeans for kids wear and a loungewear deal with Yrsa Daley-Ward. The Lee kids’ collection is a holistic collaboration with advances at every stage of design and production, with every single material made more sustainable. For the first time, it will also share Life Cycle Assessment (LCA) data on hm.com indicating the water, C02 and energy impact of each denim garment from raw materials to end of use.

The collection features, jeans, jersey pieces and accessories, with a 80s and 90s throwback feel. It includes relaxed-cut jeans, as well as a workwear influence in dungarees, dungaree dresses and jeans with cargo pockets. There’s a kids’ take on Lee’s classic Rider jacket, cut with a slightly cocooning shape. Jersey pieces play with the heritage of Lee’s world famous logo with relaxed tees and hoodies with pops of purple and cobalt blue. Accessories include knit beanies and a mini sports bag.

Meanwhile, the Yrsa Daley-Ward collection uses quotes from her powerful poetry. Key pieces include the longline Bermuda shorts with co-ord slogan sweatshirt, oversized T-shirts and seamless crop tops, and a drop-shoulder hoodie, all made with materials such as organic cotton and recycled polyamide.

The European Commission has published a guide marking the path for local textile industry's transition towards greater circularity. The document includes a consultation to gather the advice, observations and opinions of the local industry’s operators, with a response deadline of February 2.

The European Green Deal, the Circular Economy Action Plan (CEAP) and the Industrial Strategy have identified textiles as a priority sector in which the EU can pave the way towards a carbon neutral, circular economy, and announced an EU Strategy on textiles, indicated the EU Commission in the introduction.

The Commission’s goal is to draw up a comprehensive plan that will incorporate objectives and incentives to boost the European textile industry’s competitiveness. A plurality of stakeholders is expected to be involved, from manufacturers to buyers, researchers, consumer associations, investment funds and government bodies.

Future EU regulations will be aimed at the industry's weaknesses in terms of sustainable manufacturing, environmentally friendly products, and the use of polluting substances, while also attempting to boost the recycling of industrial waste and the use of recycled materials. Another goal is to identify horizontal actions along the value chain. Promoting greater transparency and respect of human rights are also listed among the EU initiative's objectives.

The document outlined some of the obstacles the initiative might come across, mentioning a number of studies on the European fashion industry and the role of sustainability within it. Among the obstacles, the remarkable complexity of the value chain which comprises 160,000 European companies employing 1.5 million people.

As per Export Promotion Bureau (EPB) data, shipments of apparel goods to the US declined 16 per cent to $5.07 billion in 2020 down from $6.02 billion in 2019. The steep decline was due to the ongoing pandemic, which hit people’s income and supply chain. Exports earnings from woven products witnessed sharpest fall of 22.13 per cent to $4.49 billion, which was $4.49 billion in the previous year. However, knitwear products posted positive growth up 2.73 per cent to $1.56 billion from $1.52 billion in 2019.

Production of woven products was hampered due to supply chain disruption during the first phase of Covid. Bangladesh needs to import fabrics for woven products mostly from China. However, experts also blamed longer lead time and sharp negative growth in woven products for the downtrend in US markets.

Amid the pandemic, lead time was crucial for importers and brands as the supply chain was disrupted. They preferred Vietnam due to shorter lead time. Experts feel in order to grow in the US market Bangladesh has to come out from the traditional exporting items and attract FDI in areas where there are opportunities for manufacturing value added goods. Additionally the country should develop strong backward linkage for the woven sector to reduce import dependency and to increase value addition.

Albanian statistics office has released a data indicating a fall of 9 per cent in exports in 2020, with the biggest negative contribution, -5.3 percentage points, coming from textiles and footwear sector. Albania is an important nearshore production centre supplying Italy’s apparel sector. But as non-essential shops were closed and people stayed at home during COVID-19, global clothing sales slumped.

Geographically, the deepest falls in Albania’s exports in 2020 were to Italy (13.7 per cent), followed by Kosovo (12 per cent) and Spain (30.4 per cent). Besides textiles and footwear, there was a -3.5 pp contribution from minerals, fuels, electricity and -1.2pp from construction materials and metals to the overall 9.0 per cent decline in exports.

The worst month for both imports and exports was the lockdown month of April, when exports fell by as much as 45 per cent year-on-year and there was a dip of around 40 per cent in imports.