World’s leading industrial thread company Coats’ H1 2021 revenues increased to $732 million compared to $536 million of H1 2020. As per Apparel Resources, the company’s organic revenues increased by 1 per cent compared to 2019 and 34 per cent compared to 2020, despite recent lockdown impacts in India in May and June which have now ended.

Revenue in its core thread business increased 41 per cent compared to 2020. Its markets across the US, Europe and Asia performed well in the sports and athleisure segments. Revenues in the performance materials segment grew 19 per cent compared to 2020), with all segments performing strongly apart from personal protection, which continues to be impacted by US labour availability issues.

Coats also launched 12 new products in the first half, generating $ 11 million of incremental revenue. One of the most significant of its launches include EcoRegen, a biodegradable thread supporting the brand’s drive towards a circular economy, says Rajiv Sharma, CEO

In the second half of the year, Coats will continue to focus on profitable sales growth, strong customer relationships, digital, innovation and sustainability credentials and ongoing pricing and productivity actions.

The sudden rise in COVID-19 cases in China has compelled Messe Franfurt (HK) to postpone the Autumn editions of Intertextile Shanghai Apparel Fabrics, Intertextile Shanghai Home Textiles and Yarn Expo to October 09-11, 2021. The textile fairs were originally scheduled to open at the end of August at the National Exhibition and Convention Center in Shanghai.

Messe Frankfurt co-organizes Intertextile Shanghai Apparel Fabrics alongwith the Sub-Council of Textile Industry, CCPIT and the China Textile Information Centre. Yarn Expo is co-organized in association with the Sub-Council of Textile Industry, CCPIT and. Intertextile Shanghai Home Textiles is co-organized alongiwth Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).

These fair form a part of Messe Frankfurt’s Texpertise Network, which consists of some 50 fairs around the world.

As per August 2021 edition of Cotton This Month by the International Cotton Advisory Committee (ICAC), global cotton production is expected to increase by 3 per cent to 25 million tonne in 2021/22 Consumption is expected to increase by 12.4 per cent during the year.

Production by the US is projected to increase by 22 per cent to 3.8 million tonne from the season before. India’s production is expected to remain high at 5.9 million tonne, and Brazil’s production is expected to reach about 2.3 million tonne.

Global cotton consumption is expected to increase by 12.4 per cent to reach 25.5 million tonne in 2021/22. However, the resurgence in COVID-19 cases leading to factory closures and shipping problems threatens to derail consumption.

Revenues of Lenzing Group, an Austrian leader in sustainable specialty fibers, grew by 27.5 per cent to €1.03 billion in H1 FY21 ended on June 1, 2021, compared to €810.2 million in the same period of previous fiscal.

The group’s EBITDA (earnings before interest, tax, depreciation and amortisation) during the six months doubled to €217.8 million from €95.6 million. It mainly attributes this growth in revenue to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibres, especially in Asia. The group’s focus on wood-based specialty fibers such as Tencel, Lenzing Ecovero and Veocel branded fibers also led to 72.8 per cent rise in the share of specialty fibres in its fibre revenues during the period.

For the six-month period, the group’s net profit rose to €96.1 million while CAPEX surged to €426.0 million. In FY21, Lenzing expects demand for its sustainably produced fibers to continue growing from the textile and apparel industry as well as for the hygiene and medical industry.

Growing awareness about sustainability and urgent pleas to stop animal cruelty have spiked demand for faux leather in the luxury fashion market. Influential players in the industry are partnering emerging biomaterials companies to introduce new products made of leather altearnativesa. For instance, Adidas, Stella McCartney, Lululemon and Kering collaborated with Silicon Valley material solutions firm Bolt Threads in late 2020, to launch products made with leather substitute Mylo, derived from mushroom roots.

Lululemon is also launching a new range of Mylo yoga mats and bags. As per a Glossy report, brands like Chanel and Hugo Boss have been making accessories from Pinatex’s leather alternative since 2019.

Mushroom threads as leather substitutes

San Francisco-based MycoWorks, which inducted Patrick Thomas, Ex CEO, Hermes, into board of directors, makes a leather-like material form mushroom threads or mycelium. The company customizes this material called Reishi as per specifications around thickness, weight and shape, among other features. The material is then tanned and converted into a finished product by traditional leather craftspeople in Spain.

In November MycoWorks raised $45 million in a Series B funding round co-led by Taiwan’s WTT Investment and California’s DCVC Bio. Other investors included Natalie Portman, John Legend and several undisclosed fashion brands. In June, MycoWorks attended the startup and tech conference VivaTech by setting up a stall in an LVMH-hosted booth.

Leather-free initiatives

Luxury brands are launching new initiatives to uphold their customers’ values. In June, Neiman Marcus announced plans to go fur-free by 2023. Similarly, Puig-owned Carolina Herrera, Jean Paul Gaultier and Dries Van Noten resolved to stop using exotic skins.

As seen from LVMH’s earning for H1 FY2021, leather goods are big business for luxury brands. Brands in its fashion and leather goods division witnessed an 81 per cent rise in revenues in 2021. The group has lined up several sustainability-focused changes in its products.

The industry is also likely to witness several, material-focused changes in future, adds Thomas. New materials to boost brands’ creativity and product development will be introduced.

By 2030, India’s cotton production is projected to expand to 7.2 mt (approximately 43 million bales of 170 kg each) by 2030 compared with current output of 6 mt equivalent to roughly 36 million bales. As per the latest OECD-FAQ report on Agriculture Outlook 2021-2030, India will contribute to as much as 40 per cent global increase in cotton production during the outlook period.

India, China, the US and Brazil will dominate global cotton production during the decade, the report says. Global cotton production will reach 28.4 million tonne (mt) with Asian countries China, India, Pakistan, Bangladesh and Vietnam —accounting for 75 per cent of the total mill consumption (28.3 mt) during the period.

World cotton export is expected to expand by 25 per cent to surpass the 11 mt mark by the end of this decade, by which time sub-Saharan Africa with a share of 15 per cent is set to occupy the third position after US and Brazil, edging India down to the fourth position. Bangladesh, Vietnam, China, Turkey and Indonesia will continue to be major importers of the fibre.

India will continue to be the world’s largest cotton producer with the increase in production resting mostly on relatively higher yields, while area expansion is expected to be limited in line with recent trends.

Clean Clothes Campaign has launched a public tracker showing which garment brands are advocates of a new strong binding agreement on factory safety and which major brands are obstacles to progress in the field of worker safety. The tracker calls out major companies such as H&M and Bestseller (Vero Moda, Jack & Jones) for not using their considerable power to ensure that advances on supply chain factory safety are maintained.

Clean Clothes Campaign (CCC) reached out to brands and retailers in the Bangladesh Accord to urge them to commit to the main elements of a strong new binding agreement, to show that not all brands and retailers are happy about the delay in reaching a new safety agreement. Eleven apparel companies, including ASOS, UNIQLO, and Esprit, answered that they are eager to sign a new agreement that is legally binding upon individual companies, has independent oversight, and can be expanded to other countries.

In their responses, many brands have become more outspoken about the need for individual brand accountability and independent oversight than in previous communication, but failed to speak out about the global nature of a new agreement. The Clean Clothes Campaign network believes that the expansion of the Accord model to other countries is an indispensable part of a new agreement.

Spandex prices may rise in the short term as feedstock prices continue to rise Currently, prices of spandex 20D-40D have increased 178 to 206 per cent to 50,000-69,000yuan/mt since late-August, 2020. Current spandex prices have reached their highest levels since April 2008. Prices of spandex 40D have increased by 14,000yuan/mt with tight supply.

Spandex capacity will increase from commencement of operations at Huahai’s 30kt/year new unit in August. Spandex production requires two major raw materials PTMEG (0.78) and MMDI (0.18). The cost of these materials increased to 40,000yuan/mt,in April but slipped to 32,200yuan/mt thereafter. In July, the price of BDO, the feedstock of PTMEG, rose rapidly as players held optimistic view toward market outlook in the second half of year in expectation of massive demand for BDO from biodegradable plastics and PBT market. Therefore, cash flow of PTMEG declined. In addition, downstream spandex plants witnessed high profits and increased capacity. Under such circumstance, PTMEG plants are eager to follow the uptrend on BDO market.

The UK business unit of the American fashion retailer Victoria’s Secret has moved out of administration and gone into liquidation. The brand went into administration last year after being badly hit by the pandemic. The administration process was executed by global CEO advisory firm Teneo.

The move into liquidation would help Victoria’s Secret pay dividends to creditors. The Victoria’s Secret online business will function as usual. In addition to lingerie wear, the brand is also known for its swimwear, activewear and accessories. As a part of its administration process, the brand signed a joint venture agreement with British fashion retailer Next in 2020 for its UK business – thereby saving more than 500 jobs at that time.

Victoria's Secret is known for high visibility marketing and branding, starting with a popular catalog and followed by an annual fashion show with supermodels dubbed Angels. As the largest retailer of lingerie in the United States, the brand has struggled since 2016 due to shifting consumer preferences and ongoing controversy surrounding corporate leadership's business practices.

To reduce its environmental impact, American retailer JCPenney has joined The Jeans Redesign project. As a part of this project, JCPenney will base its designing and manufacturing efforts on durability standards, eco-friendly packaging, increasing organic and recycled fiber content and eco-friendly wash programs. JC Penney joins 94 other participants including major fashion brands, retailers, garment manufacturers and fabric mills. The latest design and manufacturing insights gained during this project will help the retailer drive a more sustainable future for jeans and all fashion products.

The Jeans Redesign was launched in July 2019 by the Ellen MacArthur Foundation (EMF) to fundamentally tackle the issue of significant waste and pollution in the fashion industry starting with one of the most iconic products: jeans. Offering a set of guidelines to make products in accordance with the principles of a circular economy, The Jeans Redesign aims to ensure durability, material health, recyclability and traceability.

The project supports organizations to build the confidence to explore and learn about how to use circular economy principles to put products on the market, says Laura Balmond, Head- Make Fashion Circular, EMF.