G-III Apparel Group has renewed its license agreements with Levi Strauss & Co for the Levi’s® and Dockers® brands. These licenses have been renewed through November 30, 2024 and cover men’s and women’s outerwear under the Levi’s® brand and men’s outerwear for the Dockers® brand.

Levi’s® men’s and women’s outerwear collections will continue to be sold in select department stores, specialty stores, and premium outerwear retailers, as well as Levi’s® retail locations. Dockers® men’s outerwear will be available at select department stores nationwide.

G-III designs, sources and markets apparel and accessories under owned, licensed and private label brands. G-III’s owned brands include DKNY, Donna Karan, Vilebrequin, G. H. Bass, Eliza J, Jessica Howard, Andrew Marc and Marc New York. G-III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s® and Dockers brands. Through its team sports business, G-III has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and over 150 U.S. colleges and universities.

More than one-quarter of 35,000 suppliers across nine industries and five regions including North America, Latin America and the Caribbean,Europe, Greater China and Asia, the Middle East and Africa have no health crisis measures—across supplier due diligence, employee health and safety and proper working conditions—in place, according to fourth edition of the Business Sustainability Risk and Performance Index by ratings platform EcoVadis, which drew on data from 2015 to 2019 and parsed them into four assessment themes: environment, labor and human rights, ethics and sustainable procurement.

While most scores improved by at least 9 per cent since 2015, those for sustainable procurement remain at the lowest end, EcoVadis said. Labor and human rights, which ticked up 11 percent from EcoVadis’s previous analysis, showed the biggest gains.

EcoVadis found that small and medium-size enterprises (SMEs) have shown consistent score improvements (a 6 percent increase over five years) while larger companies have presented more fluctuations. SMEs have also consistently outstripped their larger counterparts in the sustainable procurement area since 2015.

Europe remains the undisputed leader in sustainability performance with over a 10-point advantage compared to North America, which came in second, the analysis found. Greater China remains the lowest-scoring region, while performance in the AMEA and Latin America and the Caribbean is mixed.

Le Tien Truong, General Director, Vietnam Textile and Garment Group (Vinatex), advises Vietnam to focus on basic products as the country’s textile and garment exports are expected to decline by 14-18 per cent during the last six months of the year. The total export turnover of the country is expected to decline by 16 per cent to $32.75 billion. Vietnam’s Ministry of Industry and Trade says, in the first seven months of this year, textile production in Vietnam increased by 1.8 per cent, while clothing production decreased by 4.6 per cent compared to the same period in 2019.

Export turnover of textiles and apparel in these seven months declined by 12.1 per cent to $16.18 billion, while that of fiber and textile fibers decreased by 20.9 per cent over the same period in 2019.

Although clothes still ranked fourth in the priority list after savings, the budget for garments was very limited. Therefore, Vietnam needs to accept flexible, non-specialized production plans in the short term; continuing to focus on cost savings, improve competitiveness; accept competition and production in difficult conditions to maintain the system, adds Le Tien Truong.

In addition, businesses need to rearrange the production force, identify the key workforce that needs to maintain jobs and income for workers to accompany enterprises through the difficult period when the market is not yet recovered, he says. According to him, the domestic market needs to be considered a solution for employee psychology, encouraging the spirit of using Vietnamese goods.

Bremen Cotton Exchange highlights, cotton can substitute plastic in various important product ranges and help the industry reduce waste. The agency says, cotton can be used to develop technical textiles for lightweight construction purposes, into the automotive and aircraft sector for the production of bio-based material, and for nonwovens in sanitary products.

Retailers like drugstores can offer items made of 100 per cent cotton, for example sanitary napkins or tampons, cotton wool pads, wadding, cleaning wipes and other personal care products as well as cotton buds with paper shaft. Cotton is already been employed for the production of baby diapers. Since cotton is hypo allergic by nature this is beneficial not only for the sensitive baby skin.

These properties along with the special breathability of the fiber make cotton the preferred material for everyday face masks during the current pandemic, too. Cotton fabrics are able to absorb the virus, and dehydrate as well as deactivate.

J Crew, which had been struggling much before the pandemic crisis started and with the deadly onslaught of COVID-19 early this year, finally filed for Chapter 11 bankruptcy. A committee of unsecured creditors claimed in the bankruptcy court that J. Crew and its secured lenders grossly undervalued’ the business while overvaluing certain collateral. This led to shifting away of value from general unsecured creditors.

The retailer also reached an agreement with landlords of J Crew and Madewell to secure certain concessions including rent deferrals and one-time waivers that will help the retailer save $70 million this year and another $60 million next year, provided sales complement the projection.

The retailer has reopened 95 per cent of its stores and reinstated most of its workers. The retailer currently operates 178 J. Crew stores, 145 Madewell stores and 170 factory stores, and generated revenue of $2.54 billion in 2019.

Moody''s Investors Service believes that the coronavirus pandemic may create a more fragmented and protectionist global economy with restrictions on trade, investment and technology transfers. This may benefit some Asian markets excluding China as companies will look to diversify their sources of supply. However, localization of production or reshoring that moves productive capacity out of the region to the US or the European Union will have negative effects for Asian producers, notably those in strategic sectors, the analyst noted.

Moody''s said as the global trade system becomes more regionally focused, each major region – Asia, Europe and the US – will likely have its own suppliers for strategically important products. This will lead to localization and reshoring of supply chains to Europe and the US. According to Moody''s, in a post-COVID world, ensuring supply security through enhanced supply chain robustness will become a key focus of governments and companies. The global trade system will become more fragmented, leading to less efficient, less just-in-time supply chains at the global level but an increase in regionally focused production, it said.

A USFIA report reveals, despite reduced optimism about the industry's future due to the outbreak, 90 per cent of fashion companies plan to increase hiring over the next five years, particularly in production and supply chain roles. China remains the foremost location for apparel sourcing and manufacturing even as fashion companies diversified their sourcing throughout Asia, and to lesser extents, in Mexico and Sub-Saharan Africa this year. The long-term focus of these companies is to find partners outside of China that meet quality and compliance standards.

The widespread economic impact of the pandemic has forced many firms to operate with less cash. In USFIA's survey, 90 per cent of companies expect decreased sales revenue this year due to the collapse in consumer demand. Fashion companies have delayed and/or canceled orders because of low demand, which in turn has negatively affected suppliers in Bangladesh and India especially, according to the report. The report states, respondents seem to be more careful about canceling orders from Vietnam due to many regarding it as the next China for apparel sourcing.

The report noted a renewed interest in shifting sourcing and manufacturing outside China due to finalization of the US-Mexico-Canada agreement in July. The agreement allows textile fibers to be produced globally but components such as sewing thread, pocket bag fabric, and narrow elastic bands need to be sourced in one of the three participating countries to qualify.

Tim Yu, Supply Chain Risk Intelligence Analyst, Resilience360, said that firms should use supply chain mapping work to understand whether their current sourcing mix will allow them to take advantage of the USMCA's benefits.

At its annual general meeting, the Fabric and Apparel Accessory Manufacturers Association (FAAMA) elected Pubudu de Silva, CEO, Teejay Lanka PLC as its new President for the year 2020/2021. Dhanushka Fernando, CEO Trischel Fabric was elected the vice chairman, while Dhananjaya Rajapaksha, CEO of Stretchline was elected secretary and Samal Dissanaike, CEO of T&S Buttons was elected the treasurer of FAAMA for 2020-21.

Executive Committee for the include: Beauno Fernando, Immediate Past Chairman, Shore to Shore., Hameed Ashraff, Immediate Past Secretary, Fantasia Narrow Fabrics, Sanjay Chandraratna – A&E Thread Lanka, Lloyd Fernando – Shore to Shore, Ashiq Lafir – Noyon Lanka, Rohan Goonetilleke – Hayley’s Fabric PLC and Privthiv Dorai – South Asia Textiles Industries Lanka.

Joint Apparel Association Forum (JAAF) is the apex body of associations operating within the textile and apparel industry, where FAAMA is operating under its umbrella.

Confederation of Indian Industry (CII) has urged the government to introduce policies to increase India’s share in global merchandise trade to 5 per cent and in services export to 7 per cent by 2025. It urged the government to follow the general principle of higher duties on finished goods and lower/minimal duties on intermediates and raw materials. According to the chamber, this will encourage imports of components, intermediates and other inputs for domestic manufacturing which can be exported after value addition.

The chamber further said there is need for a calibrated management of the exchange rate to promote exports with strong capital inflows as the 36-currency export-weighted real effective exchange rate for India stands at about 116 for June 2020, indicating overvaluation of the rupee.

Pointing out that India’s cost of doing business in areas like access to capital, gaps in logistics, higher power and freight costs, royalty, state level taxes is a key disadvantage for export promotion, CII said the proposed Remission of Duties and Tariffs on Exported Products Scheme (RoDTEP) needs to take into account multiple costs.

CII recommended setting up of an export task force headed by the commerce and industries minister to address all areas of export promotion with coordination of ministries, state governments, other organisations and industry bodies. It also called for a robust and overarching foreign trade policy when the current one expires in 2021. It should not be limited to incentives for exporters but extend across different areas for a holistic export strategy.

The pandemic has accelerated e-commerce’s shift to a new marketplace model that allows third-party sellers to sell their products directly through the platform. While some of these marketplaces handle logistics and shipping of products, others like Fartech sell their wares from small boutiques and retailers instead of selling directly from brands.

Most of these marketplaces are hosted by influencers, brands, media companies and even retailers. One of the latest retailers to launch such a marketplace is BuzzFeed, whose marketplace was launched with help from Bonsai, a company that specializes in marketplaces for media companies. The marketplace will focus on beauty brands. Its success is encouraging other fashion companies to express interest in setting up a marketplace via Bonsai, says Saad Sidddiqui, Founder and CEO. The launch of its marketplace using Bonsai in 2019 has boosted the website traffic of Complex with click-through rates on its product pages being 8-10-times higher than affiliate links, and commission rates nearly 100 times higher.

Making inventory more adaptable

Scanlan, Founder, Naadam reports heavy increase in marketplace interest from a variety of companies. The industry is moving towards a marketplace model as there is a lot of unsold inventory, says Scanlan. This inventory is a bug bear for brands and retailers as retailers can’t move and brands cannot use it due to cancelled orders. Marketplaces deal with this issue by making their inventory more adaptable for both sellers and brands. This enables companies like Farfetch flourish to $1 billion in revenue while big department stores like Neiman Marcus see a drop.

Marketplaces also have their own risks. Adrien Nussbaum, CEO, Mirakl, says, two things are required to set up a successful marketplace. One of these is a sizeable and loyal audience to justify the higher upfront costs of the marketplace and a full commitment.

Advanced technologies lead to higher costs

Setting up a marketplace entails a higher upfront cost due to its use of complicated technologies. As Siddiqui notes, to set up a marketplace retailers need to interlink the back ends of both the marketplace and every brand selling through it. This could potentially costs more than $100,000 to set up. Marketplaces also have to bear certain fixed costs. For instance, they have to pay retailers around 25 per cent of each sale made through their platform while the brand takes another cut of variable size. This leaves the marketplace owner with a smaller cut than if they bought and sold the inventory themselves.

Many brands consider this cost worthwhile as it enables them to form additional revenue channels. Despite this, not many marketplaces are likely to spring up in future, as there’s a limit to how many marketplaces customers can keep track of.