An umbrella organization representing developers, shopping center owners and retail chain operators, the Russian Council of Shopping Centers (RCSC), is negotiating with its representatives in Turkey, China, India, and Iran to find alternatives to western brands. This will help supplement or completely replace goods of the defunct brands with ones of a similar quality and design, the council said.

Dozens of big brands have suspended operations in Russia or exited the country since Moscow started a “special operation” to invade Ukrainian territories on Feb. 24. Held recently, an RCSC meeting of more than 100 market participants discussed the challenges facing Russian retailers.

Igor Maltinsky, Director-Development, Melon Fashion Group, said, the main challenge facing domestic retail firms is the increase in procurement and logistic costs which is leading to an uncontrollable growth in production costs. Melon owns four fashion brands - Zarina, Befree, Love Republic, and Sela - and had 846 stores across Russia and former Soviet republics at the end of 2021. It had been planning to hold an initial public offering (IPO) this year.

Amidst the companies making mass exodus from Russia, there are a few that have chosen to stay back in the country. Consumer group companies like Unilever, Procter and Gamble, and Nestle have decided to continue operating in the country although they have halted new investments and ceased import and exports from the country.

Move to impact native employees

Though accused of profiting from an aggressor nation, these companies have chosen to stay back as complete withdrawal is likely to place their native employees under immense pressure, says Quartz report. Already, native Russians are reeling under the effects of declining ruble and sanctions imposed by western economies. Companies like Fast Retailing had earlier decided to continue operating in Russia. However, recently the Uniqlo owner ceased business in the country. Tadashi Yanai, Founder also committed a $10 million donation to the UN agency for refugees and a shipment of 200,000 items of clothing and blankets to Ukrainian refugees.

Finding a mid path

Tightening government sanctions, disruptions in air space and logistics is making it increasingly difficult for companies to continue operating in Russia. Nike is finding it increasingly difficult to ship goods to Russia and so is Fast Retailing. Since Russia contributes a very small portion of their sales, withdrawing from the country is more of a symbolic gesture for brands like Levi’s. These brands are trying to find the right way to protest against the government decision without antagonizing a large share of the population supporting the war, says Mario Ortelli, Founder, Ortelli & Co.

Though most luxury fashion brands shifted their focus to China in the last decade, US continues to be the world’s largest consumer market. In the last few years, many apparel retailers have made US their largest sourcing destinations. As per a Business of Fashion report, Zara parent Inditex stepped up operations in the US while Kering is recording strong sales in both North America and Asia. LVMH also recorded strong revenue growth in the US last autumn.

Low GDP growth, COVID surge sink China’s fashion market

In 2022, China expects GDP growth to sink to 5.5 per cent, lowest in over three decades. Even this target seems over ambitious for the country as unstable property market and strict COVID lockdowns threaten to curb consumption. China’s luxury sector witnessed a major upheaval last year as the government launched a campaign against wealth inequality. To contain COVID-19 spread across the country, China recently locked down some of its most important regions. All major shopping districts were deserted, though few brand stores continued to operate.

US gains on faster economic recovery and high-fashion events

All these factors helped drive luxury fashion brands back to America. Besides its economy has bounced back faster from the pandemic and brands like McQueen, Gucci, Bottega Veneta and Louis Vuitton are also staging high-profile events in the country. Louis Vuitton plans to stage its cruise show in California this May. Brands operating in the US are also looking beyond traditional fashion hubs of New York and Los Angeles to open new stores. They are expanding to cities like Miami, Austin, Charleston, Nashville and Atlanta. Kering plans to open stores in Nashville and Atlanta, as per Francois-Henri Pinault. Meanwhile, Prada aims to target Austin for future expansion.

And as Libby Callaway, Founder, The Callaway, a Nashville-based public relations firm says, more consumers are looking at spending their money in the US fashion market.

End of fiscal stimuli to impact spending However, this surge in US spending may prove to be short-lived as stimulus checks by the government have ended and are not expected to resume in 2022, as per Bank of America data. Consumers are less likely to spend at malls as indicated by the decline in retail sales to 0.3 per cent in February. Despite this, the US is fast merging as an ideal investment destination for luxury brands. The last two years have forced brands to diversify their supply chains. They are now looking at multiple markets instead of depending on a single destination and US is emerging as major beneficiary of this.

A leading global provider of advanced weaving solutions,Itema showcased a rapier R9500-2 weaving machine, in weaving width 3800mm and equipped with a Stäubli LXM 5376 hooks Jacquard shedding machineat Sitex. The machine on display in Stäubli booth wove a fabric traditionally produced in the mills of the Region and was configured to meet the local weavers production needs.

Sitexwas also the official launch of the partnership between Itema and the leading Italian circular knitting machines manufacturer CesareColosio for the marketing and distribution of the company highly innovative machines in India. With this partnership Itema expands its portfolio of textile products, thus creating a significant benefit for all the Indian textile companies that need both the Itema and the Colosio machinery, that share the same attention to innovation and excellence that Itema guarantees to its customers.

Itemaaims to lead the Jacquard market on account of growing for its technology due to the capability of its looms to weave even the most difficult styles and yarns, guaranteeing superior fabric’s quality; particularly, its skills in saree weaving and weaving of furnishing fabrics.

The company is the only manufacturer in the world to provide the top three weft insertion technologies: rapier, airjet and projectile, with an ample product portfolio and a commitment to continuous innovation and technological advancement of its weaving machines.Itema is a trusted partner of many Indian weaving mills, from large textile conglomerates to smaller textile manufacturers, providing the most advanced and user-friendly weaving technology and real-time assistance, from the initial negotiation stage and throughout the whole machine life cycle.

Retailer Target and denim brand Levi’s are expanding the distribution of Red Tab products from roughly 500 Target stores to about 800 this spring.

Target has a history of distributing Levi’s products. The retailer first began selling Levi’s Red Tab products — some of the brand’s most premium products — in 2019 in just 50 stores. The number grew to roughly 500 one year later. Since then, Target has sold millions of pairs of Levi’s jeans across all price points.

The strategy included the Levi x Target limited-edition collection of home goods in early 2021, part of Target’s annual design program, which celebrated its 20-year run last year.

This spring, in addition to adding more points of distribution, Target will increase the breadth of its assortment, now offering more than 180 pieces, spanning both men’s and women’s denim styles. Product offerings will vary by store, but the entire collection includes tops, dresses, jeans and jackets.

The union allows Levi’s to expand its distribution, reaching more shoppers in the process, while Target further stakes its claim in the fashion world.

Ian Syarif, Deputy Chairperson, Indonesian Textile Association says, the country will adjust its value added tax (VAT) rates on April 1, 2022. There were still be many gaps in application of VAT regulation as many businesses, especially fashion retailers, do not comply with the 11 per cent VAT creating an unfair playing field. The policy is even more punishing for entrepreneurs who regularly pay taxes, adds Syariff. A free market mechanism is likely to occur if buyers are not given a choice, he adds.

Highlighting online sale of used clothes, imported fabrics, and thrift store clothes, Syariff urges the government to apply VAT to the e-commerce sector also in order to create a fair playing field. Unless the VAT regulations are improved, the clothing industry will continue to suffer, Syariff adds.

Organized by the Syntheitc and Rayon Export Promotion Council (SRTEPC), the three-day textile exhibition ‘Source India 2022’ generated a business worth $150 million despite recording only 75 visitors from 30 countries. The event raked in orders worth around $300 million that will be sealed after completing some formalities in the coming days. Around 52 exhibitors from India participated. Buyers from Africa, Europe, Turkey, the US and a few other regions visited the exhibition.

Eunice Gakungu, a buyer from Nairobi said, the exhibition was well organized and she could find products she was looking for. The exhibition will help India textile exports as majority of buyers are not going to China, say experts. Currently, Chinese suppliers are not in a position to supply orders on time and at old rates, they add.

Puma plans to launch an innovative manufacturing process to convert existing soccer jerseys into new ones. Called Re:Jersey, the project helps brand reduce waste and adopt more circular production models in the future, says a Spin Off report. The process involves chemically breaking down the garments into their main components, filtering out the colors and chemically reassembling the materials to create a yarn having the same performance characteristics as virgin polyester.

Currently, around 75 per cent Re:Jersey uniforms are made from repurposed soccer jerseys. The remaining 25 per cent are made from Seaqual Marine Plastic1, a material obtained from recycling marine litter into new sustainable products.

The products created as a part of the Re:Jersey project will be worn on the pitch during pre-match warm-ups by Puma clubs Manchester City, AC Milan, Borussia Dortmund and Olympique de Marseille. The teams will wear the jerseys ahead of their respective league matches in late April and May, starting with Manchester City vs Watford on April 23.

Albstadt-based circular knitting machine and braiding machine manufacturer Mayer & Cie, has bagged a 2022 Top 100 award for its innovative processes in particular. The company recorded a 40 per cent sales growth to over €100 million last year and hopes to maintain its market edge this year. As per a Knitting Industry report, the company continued to rely on digitization of both its processes and products. Even in difficult years, it focused on optimizing core processes in order to be able to hit the ground running when the market recovers, says Sebastian Mayer, Chief Digital Officer.

Mayer now plans to make several investments in machinery especially at its headquarters in 2022. It recently launched new CHP cogeneration units. Since Q4 2020, the Albstadt textile machinery manufacturer’s order position has remained stable with orders from all over the world, especially its core markets Turkey, China and India.

In braiding machine division, order position recovered in 2021. Sales of new machines and, especially, spare parts exceeded the 2020 figures significantly. It aims to expand in this area by developing existing machines and launching new ones, says Benjamin Mayer, Managing Director