The government has prepared a national action plan for the country's toys industry in collaboration with 14 central ministries involving need-based interventions for overall development of the sector in 13 identified handicrafts toy clusters.

As a part of the initiative to promote the domestic toy industry, the government also plans to organize a National Toy Fair between February 27 and March 3, 2021 It will also set up a Mega Integrated Textile Region and Apparel (MITRA) Park, in over 1,000 acre with state-of-the-art infrastructure, common utilities and R&D lab.

So far, the government has sanctioned 59 textile parks under the scheme for Integrated Textile Parks, out of which 22 have been completed. The textile ministry is also developing an e-commerce platform through Digital India Corporation, ministry of electronics and information technology, to provide direct marketing platform to the handicraft artisans. In the first phase, artisans/weavers from 205 handicrafts/handlooms clusters are being selected throughout the country for uploading the handicrafts/handlooms product on portal.

There is huge demand amongst international brands and retailers to source their garment and home textiles requirements from India. Indian exporters have 25 per cent more orders than the capacity available, says M Nachimuthu, President, Karur Textile Exporters' Association. These are orders that are diverted from China, he adds.

Garment orders coming in for the winter season, not a traditional area for Tiruppur garment exporters. Winter garments are mostly made of blends and there is a huge demand this year for these products, adds Raja M. Shanmugham, President, Tiruppur Exporters' Association.

Many international brands are now looking at more suppliers and larger volumes. They are looking for manufacturers, giving samples, and estimating whether the Indian exporters can meet their requirements.

The demand is high from buyers in the US and the European Union. And they are looking at a wider range of products, some of which are new to Indian garment exporters. With huge demand, investments are also taking place, mostly for expansion of existing capacities. The current trend is expected to continue at least for six more months.

Blake Harden, Vice President, Retail Industry Leaders Association (RILA), is concerned the Trump administration may impose punitive tariffs on Vietnam as one of its last actions before its influence expires on January 20. As per a Sourcing Journal report, the Trump administration and USTR imposed tariffs against China under Section 301 violations and have threatened to do the same against Vietnam.

American businesses and families have acquired over $72 billion in additional tariffs against China, says Harden. These tariffs have resulted in less money in the pockets of American families, a slowdown in US manufacturing, and decreased competitiveness for American businesses vis-à-vis their European and Asian counterparts. In addition, tariffs on goods from Vietnam will harm the ability of US retailers to compete globally. Meanwhile, David French, Senior Vice President-Government Relations, National Retail Federation also urged the USTR not to place tariffs on Vietnamese imports at the illegal timber and currency practices hearings this week.

French estimated tariffs on import of apparel, footwear and other goods from Vietnam would result in American consumers paying $4 billion to $9 billion more in higher prices. Furthermore, he noted that placing tariffs on imports from Vietnam would punish these companies and may result in sourcing shifting back to China.

Based on an application led by IVL Dhunseri Petrochem Industries and Reliance Industries, the Directorate General of Trade Remedies (DGTR) has recommendedan anti-dumping duty on the imports of Polyethylene Terephthalate (PET Resin) originating in or exported from China.

As per the application, India is the single largest market for Chinese exporters and the share of exports to India in the total exports from China increased to 10 per cent in April-June, 2019 from 5 per cent in April-September, 2018.

The exports from China to India are increasing at a much faster pace than those to third countries. The increasing importance of India as a market itself highlights threat of material injury.

While noting that the imports have increased at a “rapid rate” DGTR said that there are significant surplus capacities in China which are expected to increase further and that India, being the largest export market, is an important one for the exporters especially as other markets such as the US, Canada, Brazil and Argentina may be closed due to imposition of trade remedial measures.

The authority said that the imports entering the domestic market at such prices are likely to have a further suppressing or depressing effect as there is existence of a threat of further injury to the domestic industry.

COVID-19 has given rise to many new fashion trends in Canada. The industry, which had been facing rough waters for the last few years, finally seemed to be emerging out of the blues in 2019 as traditional fashion categories such as denim, suits and dresses reemerged during the latter half of the year. For three years market had remained relatively flat with minimal growth. Now, many new micro trends have emerged as consumers changed focus from athleisure. The fashion industry was in the midst of a transformation as consumers geared up for rebranding.

Consumers reprioritize comfort and loungewear

Year 2020 changed everything. Fashion sales dipped by over 50 per cent in just two months of March and April. The industry lost -$2.6 billion in market value as consumers reprioritized their spending on essentials. By May, consumers began to accept the situation as the new normal and their interest in fashion resurfaced. With strict adherence to social distancing norms, hand sanitizer, masks and Zoom, consumers again started flocking stores. However, their fashion tastes changed as they focused more on comfort and loungewear. By end summer, the industry started recovering as sales declined just 2 per cent in September and October compared to 2019. Given the current circumstances, this was a huge win for the industry.

Adapting to changing demands

As per a NPD Group study, the factor that influenced consumers’ fashion choices in the past three months was their search for novelty. They also looked for something trendy that made them feel good. Gen Z and millennials represent 56 per cent of Canada’s women’s wear market which indicates a positive future for the industry. As Canadian consumer look to gratify their fashion senses with innovative garments, the industry needs to quickly adapt to changing demands. The industry is definitely showing positive growth signs as it slowly rebounds from these extraordinary times.

According to Le Tien Troung, Chairman, Vinatex, Vietnam’s garment-textile export turnover is projected at $38-39 billion in 2021

According to Truong, localities have supported the sustainable and clean production of the garment-textile industry which, he said, must follow global rules set for the supply chain.

Under the Government management, the sector has reduced non-production costs, especially those for logistics services through the national logistics network, and other non-tariff costs.

The Ministry of Industry and Trade has also helped businesses optimise new-generation free trade agreements (FTAs) through the issuance of guidance and the launch of a portal on those deals.

Vietnam has signed a total of 17 new-generation FTAs, he said, stressing that a number of countries like Japan have reached up to four pacts with Vietnam.

In 2020, Vietnam is the only among the world’s top five garment-textile exporters not to have to cease production.

Although Vietnam’s garment-textile export reached only 35 billion USD against the 39 billion USD recorded last year, the result is still remarkable given the global demand dropping over 22 percent.

Belinda Dickson, Founder, Belinda Robertson Cashmere, and Ross Powell have co-founded Cashmere Circle, a service to revive, repair and recycle cashmere garments with Edinburgh University to help luxury fashion move to a circular economy model while boosting textile skills and jobs in the Scottish Borders

The start-up business has partnered with a number of Borders-based experts with the aim of returning the area to its once leading position in the textiles industry, says Edinburgh Innovations. A knowledge transfer program facilitated by Cashmere Circle will ensure skills are retained for the next generation of knitwear experts, it says.

Cashmere Circle aims to be a truly sustainable business – environmentally of course, but also socially, by ensuring jobs and skills are retained in the Borders

Cashmere Circle will also donate 1 per cent of its revenue to Trees for Life, which is rewilding the Scottish Highlands, and has entered an agreement with Oxfam for the charity to divert end-of-life cashmere garments that would otherwise go to landfill.

The Cotton Textiles Export Promotion Council (Texprocil) has urged the Indian government to formulate a free trade agreement (FTA) with the UK. As per the council, UK is one of India’s largest trading partners amongst the European countries in the textiles and clothing (T&C) sector, accounting for almost 24 per cent of the T&C products exported from India to the EU region.

The country has already signed trade agreements with 62 countries ahead of the end of the Brexit transition period on January 1, 2021, including countries like Turkey, Canada, Singapore, Mexico etc. Therefore it is important for India to start the negotiations for this agreement if it does not wish to lose the first mover advantage and consequent market share, said Manoj Patodia, Chairman, Texprocil

Patodia also requested the government to simultaneously revive and expedite the FTA negotiation with the EU, as it is one the leading markets for India’s exports of T&C products where competing countries like Bangladesh, Pakistan, Vietnam have an edge over India due to a zero tariff arrangement.

Fashion brands including H&M and Nike are urging Vietnam to introduce Direct Power Purchase Agreements (DPPA) to help them meet their sustainability goals, reports Nikkei Asia. A consortium of international clothing brands, including Target, Mulberry, Mammut, etc which rely heavily on Asian garment factories, are under pressure from shareholders and consumers to reduce emissions in their supply chains.

The consortium -- which includes the second-biggest US mega-retailer, Target, UK handbag maker Mulberry and Swiss sports brand Mammut -- had hoped Vietnam would launch a planned DPPA pilot in 2020, but that has not happened. The national utility, Electricity Vietnam (EVN), has a monopoly on the country's power grid, but DPPAs would allow private producers to sell wind and solar power through the grid.

PVH Corp, parent of Calvin Klein, Tommy Hilfiger and others, also signed the letter as it aims to drive the fashion industry toward net-zero emissions in line with the goals of the Paris Agreement. H&M another signatory, said, the success of the DPPA pilot in Vietnam will also send important signals across the region as to the possible national actions available to meet the renewable energy requirements.

Organizers in Surat, Ludhiana, Mumbai and Greater Noida are set to organize physical shows across India. As per an Apparel Resources report, Southern Gujarat Chamber of Commerce and Industry (SGCCI) has announced the 5th edition of ‘Surat International Textile Expo- SITEX-2021’ from January 9 to 11 2021 at Surat. The event will focus on all sub-segments of the textile sector like machinery, accessories, yarn and fabrics. Spread over approximately 10,500 sq m, the event will feature over 100 exhibitors and international visitors from Vietnam, Bangladesh and Sri Lanka. Ashish Gujarati, Vice President, SGGCI says, the event will fully comply to the guidelines issued by the State & Central Government and will not allow spot registration of visitors during the exhibition.

Likewise, Garments Machinery Manufacturers & Suppliers Association will organize the 6th edition of its GMMSA Expo from February 26 to March 01 in Ludhiana. Gartex Texprocess India will also organize its show in Mumbai from March 18 to 20, 2022. Similarly, EPCH will hold the 51st Edition of IHGF–Delhi Fair Spring’ 2021 from March 13 to 17 2021 at Greater Noida.