Due to the outbreak of COVID-19, Ispo Munich has cancelled its physical edition, scheduled to be held from January 31-February 03, 2021 and moved to an online platform. The event will now be held in the digital format from February 01-05, 2021, reports Sportswear International.

Organized by Messe München, the five-day digital event will focus on creativity and digitization, health and sustainability. It will offer platforms for presentation of new products, brands and business contacts, networking with exhibitors, visitors, media and influencers as well as participation in forums and discussion groups via live streaming and chat rooms.

In addition to the trade audience, end consumers will also be given an opportunity to participate digitally and engage in direct dialog with the industry. In brand rooms for product presentations, workshops and master classes, brands and companies will have the opportunity to present themselves digitally to sports and outdoor fans around the world and to enter into an exchange with them.

Indonesia expects to sign the Regional Comprehensive Economic Partnership (RCEP) in mid-November. Indonesian officials say ASEAN member countries, with Australia, China, Japan, New Zealand and South Korea are participating, and have finished negotiating the technical issues of the trade deal and carried out the legal scrubbing up of the agreement text.

The trade deal would cover rules related to important trade issues, such as administration, processes and a legal framework for e-commerce. Anda Nugroho, a researcher at the Fiscal Policy Agency (BKF), estimated the trade deal would raise Indonesia’s GDP by 0.05 percent in 2032. It would benefit the country’s timber, paper and electronics industries Last year Indonesia channeled around 61.65 percent of its total exports last year to the RCEP countries. RCEP countries accounted for $106 billion, 71.38 percent, of Indonesia’s total imports last year. Since 2012, Indonesia has booked trade deficits with the RCEP countries.

Utilization in Indonesia’s garment sector declined to 80 percent from a normal utilization of 90 per cent. Lower demand in the textile and garment sector as a result of COVID-19 is having an outsized impact on Indonesia’s economy. The industry accounts for 3.1 per cent of the total workforce population of 121.02 million.

As Indonesia and its key export markets implemented social distancing policies, the dramatic decrease in overseas demand was compounded by declining domestic demand as retailers from high-end shopping malls to local traditional markets were forced to close as a result of PSBB guidelines.

Although growth in online demand has helped to cushion the blow for some overseas outlets, Indonesian consumers have not adjusted to shopping for clothing online. The Indonesian Chamber of Commerce recently reported that the total newly unemployed population reached 6.4 million, of which an astounding 2.1 million or 33 percent were from the textile and garment sector. While many of the newly unemployed expected to return to work, the numbers reveal the depths of the shock to the industry as it attempts to navigate supply and demand during the global pandemic.

This year’s edition of international denim-focused trade show Denim Première Vision has been canceled due to unfavorable conditions. The show was scheduled from November 24-25, in Berlin. The next editions of the show will take place in Milan from May 25-26, 2021 and in Berlin from November 16-17, 2021.

The organizer Premiere Vision International Exhibitions is planning to organize a Digital Denim Week from November 30 to December 4. This will be fully a digital event comprising a series of seminars, round tables and other events that will capitalize on the possibilities of Première Vision Market Place launched in September 2020 when Première Vision's physical edition was canceled. While it will keep Denim PV’s DNA intact and remain as a B2B platform, it will also offer the possibility to attend talks and seminars, exchange opinions, communicate and keep in touch.

The Première Vision Marketplace platform had already started hosting PV denim weavers and exhibitors in September, though within this new Dıgital Denim Week, all other exhibitors participating the show–including accessory manufacturers, garment makers and service providers–shall also profit from the new platform.

Higg’s sustainability software platform has connected with Open Apparel Registry (OAR)’s API facility. The integration allows a facility to link its Higg Index account to its OAR profile using an OAR ID. Supply chain partners can then use a facility’s OAR ID to find its Higg Index assessments on the Higg platform. The API integration and cross-referencing of data between the Higg and OAR platforms saves facilities, brands, retailers, and civil society time; collates disparate facility lists into one central, uniform repository; and mitigates the risk of inaccurate data sharing.

By adopting the unique OAR IDs used by thousands across the apparel sector, Higg Co is signaling its support for the OAR as a key source of credible facility data in the apparel sector. Connecting with the OAR via API enables Higg Co to maintain facility profile data in real time, ensuring that the data shared between the organizations is current and up to date.

This new API data integration effort represents a significant step towards greater collaboration, transparency and accountability across the global supply chain. It also presents the data in a structured, open format, enabling users to make practical use of the data for the benefit of all.

Evolution St Louis is working with fashion brands to locate advanced apparel manufacturing in the United States during the ongoing COVID-19 pandemic. The company, founded in 2019, was created to address the dynamic shift in consumer buying patterns, build the supply chain of the future and strengthen ;Made in the USA’ manufactured products for contemporary, designer and luxury brands.

Prior to COVID-19, over 95 per cent of clothes sold in the United States were imported from overseas because of higher profit margins with foreign manufacturing. Due to the pandemic, billions of dollars of clothing orders have been canceled and many brick-and-mortar stores have closed.

Brands are approaching Evolution St. Louis as it has a nimble and collaborative approach. The company uses 3D and Knit & Wear complete garment technology, allowing customers to react to demand, while also offering innovation previously unavailable. It manufactures a broad range of products – including fully fashioned knits, complex shapes, footwear and smart textiles – with its industry leading, high-tech flatbed knitting machines. The company also can produce textiles for the home, office and automotive industries.

British retailer Clarks plans to hold talks with its landlords to discuss the retailer’s proposed company voluntary arrangement (CVA) that includes moving to a turnover-based rent model. The plan also includes closing around 50 of its 347 UK stores and rent cuts for many of the surviving sites.

The agreement is conditional on Clarks receiving a cash injection of more than £100m from Hong Kong-based private equity firm LionRock Capital. However, the founding Clarks family would have to give up majority ownership for the first time in its near-200-year history.

The meeting with landlords aims to discuss the issues of rent reductions and stores closures. Clarks’ pension trustees are also expected to play a significant role in any CVA vote. The proposed CVA comes after the pandemic has devastated UK high street sales, hitting the footwear sector hard. The need to buy or replace footwear for work or social events has diminished since lockdowns began in the spring and has re-emerged in the face of localized lockdowns.

To measure fashion industry’s performance during the COVID-19 crisis, McKinsey & Company and The Business of Fashion surveyed around 100 experts and senior executives, and around a million consumers from around the world. ‘The State of Fashion 2021’ survey forecasts short- to mid-term economic impact of the pandemic on the industry. The sector’s shakeout may prove to be tough for the industry and wipe out some of the biggest names.

Fashion revenues decline by 34 per cent

Over 40 per cent of European consumers curtailed their expenses on clothes this year due to financial and general concerns, the report says. Today, their fashion expenditure is largely influenced by product quality, practicality, comfort and value for money. Consumers are being less influenced by the style and more by comfort. McKinsey’s European consumer survey indicates, sales in basic and casual-wear categories have reached pre-crisis levels while sale of formalwear and special occasion clothing have dipped to 25 per cent of last year.

Fashion revenues from April-June 2020 declined 34 per cent from the corresponding period last year. The industry is likely to lose further this year with fashion companies in Europe and the US including Neiman Marcus, Debenhams being forced to file for bankruptcy and their operations may be restricted to certain locations only.

Industry disruption may continue in 2021 and the global fashion market may recover by 2021, industry leaders need to take bold decisions regarding their channel strategies, geographic expansion, inventory planning and securing supply chains.

A wider gap in pre and post COVID markets

The McKinsey survey of 2,000 executives from across the globe predicts a 12 per cent decline in GDP during the third quarter of this financial year. The survey highlights 16 per cent surge in online fashion sales from January to August 2020. Germany, the UK and Nordic countries were the major drivers of this growth with companies in these countries reporting double- or even triple-digit growth in their online businesses.

Even though growth will eventually slow, the online shopping trend will sustain over the years. An analysis of the fashion scenario by the McKinsey Global Institute in conjunction with Oxford Economics says, global fashion sales may not return to 2019 levels before the third quarter of 2022. The crisis will exacerbate pre-existing trends in the sector creating a wide gap in performance of two markets.

US to lag behind China in luxury sales

Global luxury sector is hugely dependent on the European retail industry. This year, sales in the European luxury sector are predicted to fall by 40 to 50 per cent by the end 2020, with similar drops anticipated in the US. In contrast, luxury sales in China are predicted to increase by 13 per cent in 2020. Shopping events like the Singles Day on November 11, 2020 and Chinese New Year on February 12, 2021 will lead to a spike in online sales. Online marketplaces — such as Tmall and Taobao — will do well with a surge in demand, increased supply, and with retailers moving their excess inventory.

In terms of long-term recovery, US is likely to lag behind China and Europe as demand is unlikely to recover before the second quarter of 2025. The holiday season too is not expected to boost consumer sentiments as corporate parties, charity events and other large gatherings will continue to be either cancelled or move online. Full recovery in the country is not expected before the first quarter of 2023.

Fashion demand will continue to remain subdued in 2021 with only companies making flexible decisions and mirroring consumers’ sentiments in their products emerging as winners from the crisis.

The Performance Days trade fair will take place in December 2020 exclusively as an online event. The Forum Jury will curate the most innovative and sustainable fabrics and ingredients. In addition to the curated Jury selections, exhibitors will present their latest collections in the Performance Days marketplace.

Performance Days also brings to life new call, chat and video chat functions, which enable digital visitors to enter into dialogue with exhibitors. These complement the digital collections with technical data sheets and video presentations, which now allow for questions to be discussed directly online from Asia to Europe and to America. This simplifies the work of designers and buyers, as well as that of suppliers and digital exhibitors. This feature will be available during the two days of the trade fair on December 09-10, and for another 14 days thereafter.

The Focus Topic is displayed online in detail as usual. Under the theme, “Nothing to Waste - Closing the Loop”, the trade fair takes a closer look at the status quo of the textile circular economy, with resulting recommendations for action as inspiration for own (further) developments. The Performance Forum will showcase a selection of relating fabrics and accessories. Expert Talks on industry-relevant topics such as fabric and color trends on both days of the fair will help visitors further their knowledge and participate in current discussions.

The Pakistan government has finalized the Textile Policy 2020-25 with eight objectives starting from encouraging value addition, ensuring profitability of cotton growers to strengthen Pakistan’s expertise in manmade fiber, putting small medium enterprises (SMEs) on priority for infrastructure, compliance, energy efficiency, quality assurance and productivity projects.

The Brand Development Fund (BDF) will be launched to help boost export of textile products. Textiles and apparel machinery will be zero rated. Under the proposed textile policy, electricity tariff will be at 7.5 cent per unit and RLNG tariff at 6.5 cent per MMBTU, while the system gas will be provided to textile sector at Rs786 per MMBTU. However, the current electricity tariff for export industry stands at 9 cent per unit that will be decreased to 7.5 cent per unit for three years (till 2025), once the policy is approved and gets enforced.

The policy also unfolds that Long-Term Financing Facility (LTFF) and Export Financing Scheme (EFS) rates will not be changed and LTFF will continue at 5 per cent and EFS at 3 per cent. The industrialists wanted the government to further lower rates of loans under the LTFF and EFS, but the government didn’t accept the demand of the textile industry.

The government will enact a Trade Resolution Act and strengthen the Directorate General of Trade Resolution Organization (DGTRO) to address trade disputes between suppliers and buyers. Moreover, an online portal will be established to register trade complaints. Textile associations will also be involved to settle trade disputes.

The Ministry of Commerce will extend support to textile associations to devise a media strategy for image building and branding of Pakistan’s textile and apparel industry.

More importantly, international companies will be invited for investment to bridge demand-and-supply gap in manmade fiber (MMF) production. Tariff and customs duty drawback rates of the manmade fiber value-chain will be rationalized. For other natural fibers, a special board will be constituted for development of wool, jute, hemp, and other natural fiber-based textiles and apparel value-chain.