E-commerce companies such as Flipkart, Amazonand Snapdeal, as well as vertical etailers including Lenskart, Nykaa, and Firstcry, resumed full operations from Monday after the central government removed all restrictions on online retail as part of its plan for Lockdown 4.0.

These platforms were so far restricted to selling non-essential goods like smartphones and electronics in government designated green and orange zones, while being allowed to sell essential items such as food and grocery nationally.

But in its latest guidelines, the Ministry of Home Affairs said that all activities, except those specifically prohibited, will be now be opened up. However, states would still take the final call on allowing businesses to function based on their local needs and situations, the guidelines added. Online sales will continue to be restricted in containment zones across the country, where only essential activities will be permitted, as per the latest MHA guidelines

The move to reopen e-commerce will deliver a major boost to companies that were allowed to sell only essential goods since the lockdown was announced on March 24. Even the opening up for non-essential sales had seen low demand from areas outside of red zones.

ET had reported that Flipkart and Amazon had been able to recover only 20 per cent of their sales a week after the May 4 order that allowed them to resume business in green and orange zones.

Giorgio Armani reopened around one hundred boutiques in his global retail network with added security measures and a new system of booking appointment. He also plans to open Armani Silos this week.

The Armani Group termed the measures "Phase 2" and promised that the boutique re-openings would be done in full compliance with regulations laid down by the authorities as part of its overall efforts to focus on guaranteeing maximum safety for its employees and customers.

In a global rollout, Armani reopened flagships in such major fashion destinations as Milan, Paris, Munich, Beijing, Hong Kong and Sydney. All told, almost one hundred Giorgio Armani and Emporio Armani stores will be back in business worldwide. The Italian designer has also converted his iconic billboard on central Milan on via Broletto, probably the most famous fashion signage in Italy, into an image honoring Italian healthcare workers.

As noted, the designer will not participate in the new virtual menswear runway season the Camera della Moda is planning to stage in mid-July. But he is currently planning to stage a joint menswear and womenswear catwalk show in the second half of September, in Milan.

Finally, the designer also plans to reopen his iconic museum and art space Armani Silos in south Milan later this week, another step in the careful reawakening after the two-month lockdown.

Florentine show organiser Pitti Immagine is revolutionising its e-Pitti virtual trade show by introducing the Pitti Connect platform. E-Pitti was launched in 2011 to amplify on the web the experience of the trade shows staged by Pitti Immagine. Pitti Connect will instead anticipate the shows: it will slot in at the start of the Spring/Summer 2020 season, at the end of June, ahead of the new digital versions of the Paris and Milan fashion weeks. The goal is to maximise visibility for the exhibitors of Pitti Immagine’s regular shows, especially menswear event Pitti Uomo, which has been postponed to September 2,3 and 4 owing to COVID-19.

The crisis has prompted Pitti Immagine to accelerate its digital transformation by creating an “advanced digital platform and marketplace designed to generate new business opportunities, which will anticipate and integrate the physical shows scheduled in September. Pitti Connect is a response to the exceptional present circumstances, and its launch provides a new, essential tool that will contribute to the recovery of the fashion system as a whole,” said Pitti Immagine.

Pitti Connect will enable the exhibitors of the Pitti Uomo, Pitti Bimbo, Pitti Filati, Fragranze and Super trade shows to boost their visibility and activate commercial contacts in order to generate orders from June onwards. The plan is to reach out to buyers and retailers - Pitti Uomo’s 90,000 registered and certified users - including those who will not be able to travel to Florence in September, allowing them to browse the range of products on offer and discover the most interesting ones. As well as to “get in touch with exhibitors, plan meetings and view collections via video chats and virtual showrooms.”

Pitti Immagine stated in a press release that, with Pitti Connect, it wants to “transpose to the digital world the quality, selection, segmentation, design, communication and contemporary mood of its shows.” The service will be operational from June to September, when it will integrate the physical Pitti Uomo show, held as usual in Florence.

American Vogue and CFDA had launched a fundraising initiative last month called ‘A Common Thread’ to relay the struggles and plight of those in the fashion community that have been deeply impacted by the onset of the pandemic.

The initiative had many designers turn in their videos, describing the impact on their personal and professional lives. Each video has a link at the bottom leading the viewer to the platform where they can donate to ‘A Common Thread’ to support the fashion community.

In the latest development, Vogue has partnered with Amazon to sell a special selection of garments made by 20 designers on its platform. The wide reach of Amazon will help these designers gain more visibility as they are struggling during the lockdowns.

The designers that will be part of this platform will be able to set their own prices and pay a referral fee to Amazon. If the Amazon Vogue store catches attention, it may become a new opportunity for brands to sell their products as up till now, Amazon only catered to the masses. Vogue store will likely serve a niche population. ‘A Common Thread’ has already raised l$ 4.3 million, with the first distribution to be made by the end of May and the second by mid-June.

Like every adversity offers an opportunity, the current lockdowns to curb the spread of COVID-19 has become a period of profound adaptation for all industries across the world including fashion. The most recent example of this is Monte-Carlo Fashion Week, which recently launched its digital version on Instagram.

The fashion week has also changed its format. From its usual 45 runway appearances, the event is now holding a series of essential discussions on issues facing the fashion industry. Organizer Chambre Mmonégasque de la Mode (CMM) revealed its impressive lineup of speakers as well as the various sustainable brands showcasing their work. The select lineup of speakers included Pauline Ducruet, Daughter of Princess Stéphanie of Monaco, who inaugurated the weekend in an interview conducted by Sara Maino, Deputy-Editor of Italian Vogue. Panelists, including Tommy Hilfiger and Dee Ocleppo Hilfiger discussed current trends and styles, exploring the present and future state of the industry. At this event, sustainable brands are displaying their work in a short video which will be later uploaded to the fashion week’s social media accounts.

On the final night of the event the organizers host a digital awards night which will felicitate brands and designers for their dedication to the fashion industry.

Digital Mercedes-Benz Fashion Week Russia sees huge response

Held in Moscow, the Digital Mercedes-Benz Fashion Week Russia fashion week showcased various socially distanced catwalks earlier this year. Around 32 designers displayed their shows via pre-recorded videos at this two-day event held from April 4-5, 2020. Its presentations appeared on TikTok and Facebook, as well as on Aizel and Megogo, two of Russia’s most popular online retailers.

Around 830,000 people watched the shows. On TikTok, the hashtag #CтильНаДому (#styleathome) was viewed 39.9 million times. Famous designers such as Valeria SAAD and House of Leo showcased their Autumn/Winter 2020 collection, allowing Russian brands to expand their reach on said digital platforms.

Innovative visual effects at Shanghai Fashion Week

The organizers of the Shanghai Fashion Week also digitalized their event as numerous brands urged them to allow them an opportunity to sell their ranges. The organizers collaborated with Tmall Marketplace, a platform owned by Chinese e-commerce giant Alibaba, to broadcast the event on WeChat, the popular Chinese messaging app. Held from March 24-30, 2020, designers and brands showcased their Autumn/Winter 2020 collections at the event. Shows at the event used a green screen and visual effects, which compensated for the offline atmosphere.

London Fashion Week to unite health and economic context

Another event, the London Fashion Week, aims to unite the current health and economic context with a general slowing of the industry. To be organized by the British Fashion Council, London Fashion Week, from September 18-22, 2020, it will feature a series of interviews, podcasts, designer diaries, webinars and digital showrooms, aiming to give brands the chance to generate sales directly from the event.

Consumer demand declines across the world

One reason for brands reorganizing the fashion weeks is a 30 per cent decline being faced by the fashion industry. As a recent report by the Business of Fashion indicates almost half of US and European consumers plan to reduce their shopping habits when the high street opens its doors again. A report by Retail Times also asserts consumer demand in France has dropped by 16 per cent in March 2020. This decrease has further escalated to 49 per cent in Italy. Though revolutionizing these fashion weeks may be vital to the survival of countless brands worldwide. However, they will have to wait and watch before taking future actions.

The shutting down of economy has compelled many retailers to go bankrupt. However, the bankruptcy process itself has become a victim of the lockdowns as brands are not able to realize its benefits due to their stores being closed and legal system slowing to a crawl. Top fashion brands and retailers in the US like Neiman Marcus, and a handful of smaller ones like True Religion, John Varvatos have all file for bankruptcy during lockdown. A filing by J.C. Penney is expected soon. Credit agency Moody’s is expecting the default rate for retail and apparel companies to grown now and next year, from around 6 per cent before COVID-a9 hit the world to 17.2 per cent. Meanwhile, J. Crew and Neiman Marcus filed for Chapter 11 bankruptcy protection, with plans for how they could emerge from the process with healthy finances in the space of a few months.

Financial experts point out filing for bankruptcy can protect retailers from economic uncertainty for a few months. Companies may be able to count on their investors to keep them afloat by exchanging debt for increased ownership stakes, explains Susheel Kirpalani, partner at law firm Quinn Emanuel. The investors gambling that their stakes would be able to generate higher returns than the portion of their loans that they would collect from a bankrupt retailer.

Earlier, companies filing for bankruptcy had to indicate if they would be able recover their losses within six months or should their creditors urge a bankruptcy judge to force liquidation. COVID-19 has made this process even more unpredictable, as it has derailed even the most meticulous recovery plans.

Liquidating assets for DIP funds

When a corporation files for Chapter 11 bankruptcy, it typically follows one of three scenarios: liquidation, reorganization or sale though some level of liquidation is likely to take place in every case. In each scenario, the company needs finances to keep operating while it works through the bankruptcy process. This money is known as a debtor-in-possession, or DIP, loan, typically backed by a retailer’s assets. To secure these DIP funds, retailers normally liquidate some of their assets which guarantee their lenders at least some of their cash back.

An opportunity to generate returns

For some hedge funds with existing stakes in struggling retailers, bankruptcy is a way to acquire these companies at bargain prices, such as in the case of J Crew and its hedge fund debtor, Anchorage Capital. They see the plunging valuation of these brands and struggling mall retailers as a way to generate returns that exceed the securing finances they provide to these bankrupt brands.

Some bankruptcies are triggered by businesses unable to pay their bills and are compelled to liquidate. These suppliers find themselves at the back of the line for repayment, behind DIP lenders.

A reason to be optimistic

For some of these retailers, bankruptcy is the only path to join the ranks of survivors. For instance, Neiman Marcus and J Crew both successfully refinanced their debt and are on the restructuring trajectory, rather than liquidation. The current uncertainties in the retail industry and the temporary impossibility of liquidation, gives stakeholders a reason to be optimistic about recovery, according to Jonathan Treiber, Chief Executive, Retail Management RevTrax. However, this requires the lenders to be much more flexible than before.

YKK USA has expanded its product range to help manufacturers across the country make products essential to fight COVID-19 pandemic. Best known for zippers, YKK now also offers variety of metal wire, hook & loop, injection moulded plastic parts, webbing, snaps, and buttons that can be used in COVID-19 relief applications.

Applications for the company’s Powerhook extruded hook include foley catheter holders, DVT compression sleeves, endotracheal tube holders, arm boards, blood pressure cuffs, and radial compression devices. The company also offers Sofix for manufacturers of surgical gowns, which incorporates plastic snaps injected onto tape, as well as Powerhook and YKK’s polyester tape. Medical curtain manufacturers can use YKK’s plastic snaps, stainless Snapet, and gypsy stud snaps.

YKK also manufactures back to back hook and loop fasteners, Sofix, plastic detachable clips, and plastic cord stoppers, all of which can be used as ear savers when used in conjunction with face masks. For those manufacturing face masks, YKK offers 3.0 mm and 4.0 mm aluminum wire and 3.0 mm and 5.0 mm elastic tapes e. For medical face shield manufacturers, it produces lastic and metal snaps, hook and loop fasteners, and plastic cord stoppers.

The exports of brassieres by Thailand to the US grew by 53.58 per cent during the Jan-Mar 2020 period. The country shipped $35.12 million brassieres in Q1’20 as against $22.87 million worth of brassieres to US in Q1’19. Volume-wise too, Thailand’s shipments increased by 53.76 per cent to 529,419 dozen of brassieres to the US market.

Percentage-wise growth of Thailand outpaced the performance of all other Asian apparel manufacturing countries including Bangladesh, Indonesia, China, Sri Lanka and India. Vietnam noted double-digit growth of 19.92 per cent in its exports of brassieres to USA in the review period which valued at $87.24 million, benefitting from the fall of China which shipped brassieres worth $144.61 million to the US.

Bangladesh’s exports increased by 4.13 per cent to $36 million worth of brassieres in Q1 ’20. However, volumes fell drastically by 15.20 per cent to stand at 1.31 million dozen. Exports by Indonesia and Sri Lanka too dwindled by 9.52 per cent and 4.69 per cent, respectively, in value terms in brassieres exports to USA, while fall recorded in volume terms was 26.71 per cent and 24.21 per cent, respectively, on the yearly note.

India’s values tumbled enormously by 40.81 per cent in its export of brassieres to US and shipment valued at merely $12.51 million in Q1 ’20 as compared to $21.14 million in Q1’19.

Exporters of the Sanganeri textile say altered consumption patterns and diminished purchasing power in their primary markets — the US and Western Europe — will continue to hurt their livelihoods long after the lockdown is lifted. As per Export Promotion Council for Handicrafts, countries such as the US, the UK, the Netherlands, Germany, France and Italy - account for 30 per cent of the overall export of hand-printed textiles from India in 2018-19.

Officials of Jaipur-based Federation of Rajasthan Handicraft Exporters (Forhex) say, the sector was already suffering from the aftereffects of the implementation of GST when the pandemic struck. In the financial year 2018-19, its exports dipped by 36 per cent year-on-year in the aforementioned countries because of the implementation of GST.

The lockdown has led to cancellation of hand-printed textiles orders worth Rs 1,000 crore for the months of March and April 2020. This may reduce the paying capacity of overseas buyers for the short to medium term.

Bangladesh has sought cooperation from the European Parliament for the restoration of apparel work orders, suspended or cancelled by various European brands and retailers after the COVID-19 pandemic. Cancellation or suspension of work orders has unsettled the sector and forced many owners to lay off workers, says Dr Jafar Uddin, the Commerce Minister in a letter to Bernd Lange, member of the European Parliament and chair of the committee of international trade.

Several thousand poor workers lost their jobs in recent weeks, throwing their lives and livelihoods into dire uncertainty. He urged Lange to take the initiatives to save the lives and livelihood of RMG workers, most of whom are women

BGMEA noted that at present, some four million workers employed in Bangladeshi clothing factories are the most vulnerable as till April 29, some 1,150 apparel factories reported order cancellation or suspension of products worth $3.18 billion.

BKMEA also revealed that its 523 members, out of 833, reported order suspension or cancellation of $1.78 billion.