Crocs’ third quarter revenues were up14 per cent. Consolidated revenues increased by 57 per cent. Direct-to-consumer comparable sales increased 18 per cent. Crocs brand international revenues grew 43 per cent and North America direct-to-consumer comparable sales rose 13 per cent. Adjusted operating margin was 28 per cent.

HeyDude brand revenues surged 87 per cent. There was double-digit sales growth across all brands and channels. Crocs now expects 2022 consolidated revenues to grow between 49 per cent and 52 per cent compared to 2021.

Based in the US, footwear giant Crocs is confident in its ability to continue to gain significant market share, deliver best-in-class profitability, and generate strong cash flow.

Crocs had planned on 70 per cent of its production coming from Vietnam in 2021, before deciding to move out some output. Many factories in Vietnam's manufacturing hubs have been shut or are operating with drastically fewer on-floor workers since mid-July due to a surge in Delta variant cases, hitting supplies of major clothing companies. The company, known for its rubber clogs, will move production to China, Indonesia and Bosnia, from Vietnam which had become a manufacturing hub for many companies across the world, especially apparel.Crocs hopes to be able to ramp production back up quickly due to the simplicity of its shoes.

Tiruppur, the fifth largest city in Tamil Nadu and India’s main knitwear hub, contributes about 90 per cent to knitwear exports. Standing strong, this city has experienced many challenges in the past but has emerged stronger than ever – from the global financial market crash in 2008 and the Chennai High Court ruling against the city’s effluence dump into river Noyyal in 2011 to the government’s demonetization of bank notes in 2016 and the pandemic in 2020-21. Tiruppur has seen it all.

However, in 2022, it is hurting at the core. As soon as markets started reopening post-pandemic, the manufacturing hub got a blow with escalating yarn costs. For example, 30-count yarn typically cost Rs 220 per kilo but since April 2022 costs Rs 440 per kilo! This resulted in the multitude of MSMEs in Tiruppur curtailing purchase of yarn from mills and their own production lines, as they were unable to meet the expectations of foreign importers.

Raja M Shanmugam, President, Tirupur Exporters’ Association (TEA) confirmed the critical situation by stating that whilst factories ran eight hour shifts six days a week earlier, now most run four to five hour shifts and that too on alternate days. Some units are now running only four days week whilst some have temporarily suspended operations. Shanmugan estimates the decline during summer of 2022 was 40 per cent.

Government steps in

Assessing the seriousness of the looming fiscal crisis which will hurt the state, chief minister MK Stalin has requested the PM to provide fiscal aide to tide over this challenging period. Stalin pointed out due to the Ukraine war and the impending recession that is about to hit Europe and later in 2023 US, importers from these regions have become conservative with their new orders as their existing inventories are stockpiled with previous imports. He reiterated the interest of the state government to not let this successful industry fall apart over this temporary crisis and the central government can help avoid it. Stalin was confident Tiruppur’s resilient nature would see the hub weather this storm too.

Impact on the domestic front

Established domestic brands such as Lux, Amul and Dixcy that manufacture knitted innerwear and outerwear worth Rs 10,000 crores are currently dealing with a slow-moving inventory. However, that has not deterred the Rs 2,300 crore innerwear king Lux Industries to turnover its flagship brand Lux Cozi from Rs 700 crores to Rs 1000 crores by 2025. The brand has seen an uptake on e-commerce platforms such Myntra, Flipkart and Amazon – from Rs 5 crores in 2020 to Rs 8 crores in 2022. Saket Todi, Executive Director, Lux Industries stated that the company is experiencing around 12 per cent growth annually. Lux Industries is now eyeing the untapped and lucrative market for boys’ innerwear.

A silver lining

Meanwhile, latest media reports suggest, orders from global brands like Primark and Walmart have started to come in for garment makers in Tiruppur. This, after three months of continuous slide from global markets as their prices have become competitive due to fall in cotton and yarn prices.

Experts say, competing countries like Vietnam, Thailand and Bangladesh have been quoting much lesser prices compared to India. Indian exporters were facing problems over rising cotton and yarn prices in the domestic market and small and medium units who are into garments exports suffered from a liquidity crisis.

As per Subramanian, export situation has started improving a little with yarn prices in India have dropped 10-15 per cent and this benefits India more. Currency depreciation is also in India’s favor. So, there is optimism with big global brands placing orders. Tiruppur has 3,000 garment manufacturing units that employs 18 lakh people. The annual exports of Tiruppur are in range of ₹33,000-35,000 crore.

The apparel market in the Asia Pacific (APAC) region is growing at nine per cent a year.

Brands have a growing opportunity in resale. The resale market is growing in popularity among APAC consumers with 27 per cent of shoppers intending to purchase clothing via resale in the next 12 months.While consumer-to-consumer resale platforms pose an increasing threat to apparel brands, they should leverage this interest and consider integrating secondhand products in their ranges or launch partnerships with platforms, which could be particularly lucrative for luxury players considering the strength of the sector in APAC.

APAC fared better than most regions during the pandemic as it was cushioned by governments offering support packages and China’s continued economic growth. Online sales rose by 11 per cent during the period. The APAC apparel market is driven by urbanisation and growing regional wealth. The region’s growth is something brands can look to capitalise on. Of the top ten APAC apparel markets, China dominates and is followed by Japan, India and South Korea.

Sportswear continues to present a significant opportunity with 54 per cent of APAC shoppers purchasing sportswear for everyday use, and an equal proportion also purchasing it for exercise, training and/or sports.

There has been no let up in emissions by the fashion industry. So says Stand earth. Brands aren't acting to decarbonize their supply chains, where the vast majority of climate-harming emissions come from. Fashion brands are still off track to meet the 1.5 degree emissions pathway, and most are still going in the wrong direction.

Of the ten companies assessed (American Eagle Outfitters, Fast Retailing, Gap Inc., H&M, Inditex, Kering, Lululemon, Levi Strauss & Co., Nike, VF Corp), only one, Levi's, is projected to reduce its supply chain emissions by 55% compared with 2018 levels, in line with keeping warming below 1.5C.

While many brands showed a Covid dip in emissions in 2020, eight out of ten brands' supply chain emissions climbed again in 2021, putting them further off-track to meet their emissions goals. Some brands are responsible for manufacturing emissions of close to ten million tons CO2e—the equivalent of more than two million gas-powered cars on the road per company.

Fashion brands have not really moved toward decarbonizing their manufacturing by committing to 100 per cent renewable energy for their supply chains and phasing out fossil fuels as a source of energy, fabric and fuel. Even those with industry-leading commitments are still failing to provide transparency on their progress. To ensure accountability, they need to provide updates on their progress in phasing out coal and fossil fuels.

The fashion industry is responsible for five per cent to eight per cent of annual climate emissions.

Victoria’s Secret plans to buy Adore Me. Victoria’s Secret is a US lingerie giant. Adore Me is an intimates brand.

For Victoria's Secret the acquisition will be a significant accelerant as it pivots toward growth and modernizes the foundation of the company with an entrepreneurial mindset that puts technology at the forefront. Victoria's Secret expects to leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and Pink customer shopping experience and modernise its digital platform and expects Adore Me to serve as a growth vehicle providing access to a consumer that is complementary to Victoria’s Secret current customer base.

Since Adore Me is a technology-led, digital-first innovator in the intimate category the hope is that it will help bring differentiated experiences to Victoria’s Secret and Pink customers. Founded in 2011, US-based Adore Me is a online-only intimates brand that counts 1.2 million active customers. It is powered by a proprietary technology platform with differentiated customer experiences including Home Try-On and monthly subscription options and offers expanded sizing across its products. It has significantly grown its business over the past decade and is excited about bringingits technology, purchase experiences, inclusive assortment, brand and team to join the next phase of Victoria’s Secret’s growth and customer journey transformation.

Imports of cotton trousers into the United States grew by 33 per cent from January 2022 to August 2022.

Bangladesh is the top exporter of cotton trousers to the US. Cotton trouser imports from Bangladesh grew by 47 per cent. Imports from Vietnam grew by 24 per cent. China’s exports of cotton trousers were almost half of what Bangladesh shipped and this indicates buyers are moving their cotton product sourcing away from China. Pakistan, Mexico, Cambodia and Indonesia have also tapped a substantial chunk of the US’ sourcing of cotton trousers. India’s exports of cotton trousers to the US grew by around 56 per cent.

From January 2022 to August 2022 American imports of apparels from the world increased 37 per cent year-on-year. In the same period imports from China grew by 37 per cent and imports from Vietnam grew by 33 per cent. Imports from Bangladesh grew by 53 per cent. Bangladesh remained the third largest apparel import source for the US. America is Bangladesh's single largest export destination.

Among the top ten apparel suppliers to the US, imports from India, Indonesia, Cambodia, South Korea and Pakistan increased by 56 per cent, 56 per cent, 51 per cent, 42 per cent and 42 per cent.

Tencel has formed a series of partnerships. Footwear brand Timberland has partnered with Tencel to launch a new eco-friendly collection. Timberland has incorporated Tencel branded lyocell fibers with Refibra technology in its latest collection.

The collection combines Timberland’s outdoor heritage with Tencel’s commitment to create a circular economy in the textile industry.UK-based luxury carpet and rugs brand Jacaranda has launched the world’s first collection of handwoven carpets and rugs made from 100 per cent carbon-zero Tencel branded lyocell fibers. The collection has raised the sustainability standard of home furnishings and decorations. In addition Lenzing which runs Tencel has partnered with Red Points, an online IP infringement detection and removal company, to fight copyright infringement and counterfeiting. The partnership is expected to boost transparency and traceability within the supply chain and also helps address growing concerns from consumers, who are interested to know the entire production process of the products they purchase.

Sustainability lives in the DNA of Tencel. As consumers become more skeptical about environmental claims due to greenwashing practices, it has been Tencel’s mission to increase transparency across the supply chain, so that not only the interest of value chain partners and consumer brands are protected, but consumers will always be able to purchase the best sustainable products.

Pakistan’s textile exports fell 16 percent in October 2022. Resultantly, the growth rate of textile export has also declined, which had witnessed a 26 percent increase during last fiscal year.

With an uninterrupted supply of energy and gas, exports would have grown by more than 26 percent, as more than 40 allied industries of textiles had also excelled in growth and performance during last year.What’s needed now is regionally competitive energy tariffs for both power and gas, release of sales tax refunds within 72 hours and uninterrupted supply of power and gas. Unhindered imports of raw materials and accessories, machinery and spare parts are expected to help in a big way.

Another major factor forthe decline in textile export is discontinuation of DLTL. Continuation of DLTL and swift refunds of sales tax against exporters’ claims hold the key to enable exporters to achieve their export target without facing any liquidity problems and pressure.

As of now Pakistan’s value-added textile exports face further declines in the coming months. This is feared to ultimately have a negative impact on the economy, sustainability, and development of Pakistan. Exporters have appealed for immediate remedial measures to save the backbone of the nation’s economy.

India has cleared some strategic research projects.

These are in the areas of agrotextiles, specialty fiber, smart textiles, activewear textiles, strategic application, protective gear and apparel, sports textiles. Among the research projects, five are of specialty fibers, six of agro-textiles, two from smart textiles, two of protective gear and apparel, two from geotextiles, one of activewear apparel, one from strategic application area and one from sports textiles.

Various leading Indian institutes including the IITs, government organizations, research organizations, among others, participated in the session which cleared projects strategic for the development of the Indian economy and a step in the direction of Atmanirbhar Bharat, especially in the field of geotech, industrial and protective, agriculture and infrastructure.

Industry and academia linkages are seen as essential for the growth of research and development in the application areas of technical textiles in India. Convergence is being built with academicians, scientists and researchers. Despite the prominent usage of specialty fibers in India, indigenization of the technology has still been a major challenge which needs collaborative interventions from both industry and academia. There will be robust indigenization of machineries and equipment for the technical textile sector to establish a sustained and strong foothold in the global landscape.

Teejay Lanka’s six-month revenue has grown by 111 per cent. Net profit growth for the period has been 145 per cent.For the second quarter Teejay Lanka’s revenue growth was 95 per cent and profit after tax increased by 70 per cent. A doubling of synthetic fabric volumes, higher selling prices and the impacts of the depreciation of the currency have enabled strong growth for Sri Lanka’s first multinational textile producer. However second quarter price hikes in raw materials, freight and energy have also increased the cost of sales for Teejay by 96 per cent.

The group has just expanded capacity and is confident of being able to maintain its momentum by capitalising on newly emerging market segments and its synthetic fabric drive. Teejay Lanka has achieved growth by focusing on its athleisure lines, synthetic orders, new customer segments and Asian markets and will continue to explore opportunities for growth by discovering new business and is evaluating the potential for capturing new international markets, going forward.

Teejay Lanka was the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol. The company is backed by Sri Lanka’s largest apparel exporter Brandix Lanka, which has a 32 per cent stake.