As per data from Omnilytics, Indonesia’s textile and textile products sector bounced back to 2.97 per cent growth in the third quarter of 2020 owing to the rapid shift by retailers and consumers to online marketplaces for textile purchases. As per Industry Ministry figures, the sector had contracted 8.37 per cent in Q2, 2020 due to a decline in domestic consumption and exports in the sector.

The sector raises $12-13 billion and employs more than 1.5 million workers per annum, revealed Statistics Indonesia (BPS ) at an online symposium called ‘Towards Responsible Supply Chain’, organized by the Indonesia Textile Association (API) last month.

The first challenge that the sector faces is to bolster local rayon fiber production to make Indonesia the leader of raw material production. The second challenge is to strengthen local textile and textile production base, by using state-of-the-art machinery and training workers to operate these machineries in keeping with the Industry 4.0 era.

The government is also conducting a sustainable fashion campaign targeting both producers and consumers to demonstrate its support for circular economy.

Launched by Fashion for Good, the Viscose Traceability Project uses blockchain technology from TextileGenesis to trace viscose use in the textile supply chain spanning eight countries. The project is being developed in collaboration with BestSeller, Kering and Zalando. Besides operational support, these companies will provide financial support for the project that aims to verify sustainable viscose fibers along the fashion supply chain.

TextileGenesis will design traceability applications for use across the entire textile value chain, from fiber to finished goods. It will provide blockchain solution and platform to trace the origins of the viscose used in the garments along the supply chains of the two participating brands. These supply chains, consisting of spinners, weavers, knitters, dye-houses and garment makers, span a total of eight countries to reflect the real-world complexities and various supply-chain scenarios to fully test the flexibility and scalability of the platform.

The Viscose Traceability Project builds upon learnings from the 2019 Organic Cotton Traceability Pilot, which investigated the technical feasibility of blockchain and physical tracers using organic cotton as the primary fiber. The project will focus on demonstrating the feasibility of global application of the solution across the viscose supply chain. Its success will be measured against the flexibility of the solution – being able to operate across diverse supply chains; the interoperability of the solution – collecting data from multiple platforms into a single system; and scalability – global implementation across multiple brands, fiber producers and supply chains.

Miles Johnson and ISKO’s Creative Room have launched their second collection together. Known as the Light on the Land 2.0, the collection features responsible R-TWO™ fabrics and a selection of sustainable accessories and details. It includes 32 unique pieces, each of them realized with seasonless designs and sustainably-minded details. All the fabrics used in the collection were carefully selected from ISKO’s R-TWO™ platform. It uses a mixture of reused cotton and recycled fibers with its technique embedding material circularity into the production processes, designing waste out of the system and minimizing impact at scale.

Certified as per Textile Exchange environmental credentials according to the percentage of materials contained, the collection incorporates responsible design principles such as Cadica’s new and innovative trims, made of vegan apple “leather”, and has been developed using ecoconscious finishing techniques. The collection also features many additional sustainable facets such as efficient low-waste pattern cutting and design, efficient sewing methods, removeable rivets for end-of-life and biodegradable thread which can be removed at high heats.

The R-TWO™ fabrics used in the collectin ensure better use of raw materials and resource efficiency. ISKO’s Environmental Product Declarations (EPD®s), available for over 25,000 products, offer a unique opportunity to measure the impact of R-TWO™’s savings in the Lifecycle Assessments (LCAs) framework, where resource savings can be seen in carbon impact, water-use reductions and many other impact KPIs.

Though Chinese Premier Li Kegiang affirms, the Regional Comprehensive Economic Partnership (RCEP) benefits all signatories, a Chinese Academy of Social Sciences (CASS) report claims, the deal is particularly beneficial to China and would help spur exports by 11.4 per cent.

A roadmap for RCEP members

CASS report states, the deal will help drive Chinese economy over the next 10 years, explains Business of Fashion in an article. It will also help China sideline rivals like the US which pulled out of negotiations for another manor regional trade deal known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP.

Over the past 10 years, fashion industry has moved away from China to newer markets offering higher cost benefits. The industry has also diversified into newer areas of operation to shield against tariff increases and supply chain disruptions. However, this has resulted in an extremely lengthy and complicated supply chain that runs through many countries. The supply chain includes countries from where raw materials and textiles are commonly sourced and also those to whom these are shipped. RCEP will help manufacturers identify these countries and provide a roadmap for other member countries that have not signed on to the deal.

The deal will also help international fashion retailers like H&M leverage RCEP’s integrated supply chains and cut costs on low-margin products. It would enable exporters deal with other RCEP members through a single certificate of origin.

Retaining supply chains links within RCEP region

Though China is still the largest apparel exporter in the world, its share in the global market is on a decline. Over the years, the country has been exporting lesser apparels and more fashion textiles. Its textiles are exported to lower-cost markets like Vietnam and Bangladesh where they are further converted into garments.

The RCEP agreement will incentivize global fashion brands having multinational supply chains to retain these links within the RCEP region. This would help brands export textiles to even countries like Vietnam or Cambodia. The country of origin provisions within the deal will ensure equal treatment for products made in all RCEP countries will be treated the same.

Rising tariffs have been encouraging American fashion companies to move their production of US-bound products out of China. Recently denim brand Levi’s was encouraged to reduce its China sourcing to less than 1 per cent and move offshore production to Vietnam and Bangladesh. RCEP also benefits fashion companies that currently work with Chinese suppliers and have subsidiaries in South East Asia. And as Alicia García Herrero, Chief Economist-Asia Pacific, Natixis says, the agreement helps quicken the pace of Chinese outward foreign direct investment into ASEAN.

As per latest ‘The State of Fashion 2021’ by Business of Fashion (BoF) and McKinsey & Company, with the fashion industry going through its worst year, COVID-19 has catalyzed a global economic downturn. This year, fashion profits are expected to decline by a staggering 90 per cent after a meager 4 per cent rise in 2019, says McKinsey’s Global Fashion Index.

Industry to recover at varying speeds in 2021

However, 2021 will act as the bridge between the pre-pandemic reality and a potentially protracted recovery period for the global fashion industry. The industry will recover at various speeds across fashion categories, value segments and geographical markets with some pockets of growth despite continuing economic challenges.

Europe will be the worst-hit amongst all nations with a 22-35 per cent decline in sales. What’s more, sales are not likely to recover before the second quarter of 2022 when travel and tourism returns. Fashion sales in the US will decline 17 to 32 per cent and recover by Q1 2023. On the other hand, China’s sales will decline 7-20 per cent. They will return to pre-crisis levels only by the fourth quarter of 2020 or the first quarter of 2021.

Online penetration to accelerate

Even as the fashion industry suffered its worst year on record with almost three quarters of listed companies losing money, online fashion sales doubled from 16 to 29 per cent of total revenues in 2020. Many brands launched their online operations besides embracing innovations like livestreaming, customer service video chat and social shopping during the year. Going forward, online penetration will continue to accelerate and shoppers will demand ever-more sophisticated digital interactions. As per the report, 71 per cent fashion executives will see a 20 per cent growth in online businesses in 2021.

Rising awareness to alter shopping patterns

As consumers become aware of the plight of vulnerable employees in the fashion value chain, they will launch new campaigns to end exploitation and offer more dignity, security and justice to workers throughout the global industry. Around 66 per cent respondents to the BOF survey said, they will stop or significantly reduce shopping at a brand if they found it was not treating employees or supplier employees fairly.

COVID-19 highlighted the need to look at inventory levels by taking a demand-focused approach to their assortment strategy, while boosting flexible in-season reactivity for both new products and replenishment. Around two fifths executives surveyed in the report reiterated their plans to move towards seasonless fashion.

Focus on market redistribution

The pandemic has widened the gap between the best-performing companies and the rest. As some players have already gone bankrupt and others have been kept afloat by government subsidies, merger and acquisition activities are expected to increase as companies maneuver to take market share, unlock new opportunities and expand capabilities. Around 45 per cent expect market share redistribution to be a top theme of 2021.

The report further emphasizes to mitigate future ruptures, fashion players need to form deeper partnerships that bring greater agility and accountability. Around 35 per cent fashion executives emphasized on resilience and partnerships to be the top development themes in 2021.

As per a Women’s Wear Daily report, Global Fashion Agenda plans to kickstart another project to drive forward circularity in Bangladesh’s garment industry.

The goal of this project, which runs until the end of 2021, is to find a scalable transition to a circular fashion system in Bangladesh, says Holly Syrett, Senior Sustainability Manager. It involves manufacturers like Bangladesh-based Tarasima Apparels., brands like Bestseller and recyclers like Swedish chemical recycling firm Renewcel. They hope to capture and direct post-production fashion waste and put it back into the production of new fashion products, alongside finding a marketplace solution to deadstock fabrics and overstock garments in Bangladesh. Eventually, the learnings may be rolled out to garment sectors in Vietnam and Indonesia, too.

Partners like Reverse Resources, a software solution for fashion production waste to brands sourcing in Bangladesh, hope to achieve this by creating waste data visibility in real-time for garment factories.

Recycler Renewcell will work to coordinate and organize sourcing with mills and traders (or waste-handlers) in Bangladesh while overseeing the quality of feedstock, as Jenny Fredricsdotter, circular business manager at Renewcell shared. The recycler purchases loads of waste by the container, which is then transported by sea to its plant in Sweden.

A new report by the Grand View Research estimates the global sustainable athleisure market will expand at a CAGR of 5.0 per cent from 2020 to 2027. The market is expected to reach $117.4 billion by 2027. Growth is likely to be driven by the growing popularity of sustainable clothing and activewear made using environmentally safe practices among the millennial population across the world.

The report says, manufacturers are launching new products with durable and high-quality material, which can be used in various activities, including yoga, cycling, running, mountain climbing, snowboarding, skiing, sailing, and other sporting activities, In 2019, the market accounted for nearly 64.0 per cent share of the overall revenue.

Of this, the offline segment accounted for 72.3 per cent share of the overall revenue with North America emerging as the largest revenue generator with a share of 34.1 per cent in 2019. Manufacturers focused on product innovation and new launches to stay abreast of the competition

According to the report, North America emerged as the largest regional segment for sustainable athleisure in 2019. The market is driven by the increasing demand for stylish and comfortable sportswear and the rising number of outdoor and fitness activities, such as camping and sports exhibitions, in the region. Moreover, the growing popularity of fashionable and comfortable clothing, such as puffer vests, is expected to create growth opportunities for the market over the forecast period.

Turkey-based Kipas will participate in the €6.7 million European Union-funded New Cotton Project, involving brands Adidas and H&M. Within this project, Kipas will manufacture denim fabrics based on cellulose-based fibers of Infinited Fiber Company of Finland, made from post-consumer textile waste that has been collected, sorted and regenerated.

Adidas and H&M will establish take-back programs to collect the clothing that is produced, to determine the next phase in their lifecycle. Clothing that can no longer be worn will be returned to Infinited, for regeneration into new fibers, further contributing to a circular economy in which textiles never go to waste, but instead are reused, recycled or turned into new garments.

The project aims to prove that circular, sustainable fashion can be achieved and even bigger circular initiatives can be launched by the industry in future. A Monforts customer, Kipas is currently installing its third Monforts Montex stenter in Kahramanmaras. The company is also installing a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production at its Kahramanmaras site in Turkey. This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaras plant in 2018, which Kipas vice chairman of the Board Ahmet Oksuz said had immediately exceeded expectations.

The latest Montex stenter now being installed at Kipas is a 12-chamber unit with a working width of 2 metres featuring all of the latest automation features. The Monfortex unit, also with a working width of 2 metres, is in a ‘double rubber’ configuration, comprising two compressive shrinkage units and two felt calenders in line. This allows the heat setting of elastane fibres and the residual shrinkage of the denim to be carried out simultaneously, for a significant increase in production speeds.

South African retail stalwarts Woolworths Holdings and The Foschini Group have signed an agreement to source 65 per cent of their required apparels from local manufacturers in next 10 years to reduce dependency on China. The worldwide lockdown has hit South African industry and the country is now focusing on reviving its apparel industry to boost economic growth. However, the fall of apparel industry has led to scarcity of skills and raw materials and lot of investments are needed to boost the revival of the industry.

The increasing investments by Woolworths Holdings and The Foschini Group in local manufacturing is a step in the right direction and will encourage many more such firms to come forward and help revive country’s economy.

Mario Boselli, President, Italy-China Foundation believes, China is an important market for Italian fashion houses. China is one of the few markets where things are going well for Italian fashion companies and they are taking necessary steps to keep things that way. Nicola Guerini, Director, General, Milan Fashion Institute, believes the success of Italian fashion products and other Italian non-fashion brands in China gives companies a strong base to build on.

The importance of China's market is amplified by the growth of the Chinese economy which has managed to emerge unscathed form the coronavirus pandemic.

As a study from GlobalData indicates, China is set to emerge as the world's largest market for high-end fashion. Some markets in China are already seeing a return in stores of 80 to 100 percent pre-COVID levels. Before the pandemic, a Chinese consumer might have bought a product while traveling in Milan or Rome or Paris, and that would have been the end of the transaction. Now, they know the brands and they buy them from a local store in their home city. That can create a relationship because the store can tell them when new products are available, or when there are sales or special events, said Guerini

Boselli opines, Italian companies will do well as long as demand from Chinese customers remains high.