Strengthening cooperation with India will help Vietnam’s garment and textile industry enhance competitiveness and boost exports, said delegates at the virtual seminar themed: ‘Promoting Vietnam-India business relations in the areas of garments, textiles and health’. Organized by the Vietnamese Embassy in India on September 10, the seminar was attended by 250 enterprises, scholars and policymakers from the two countries in the three aforementioned fields.

Pham Sanh Chau, Vietnamese Ambassador to India emphasized on the significant changes in the world’s geo-political picture with rivalry and competition between major powers, and tensions and disputes in the area of security affecting economic issues. In addition, supply chains are facing multiple challenges due to the disease, thus hurting global trade. However, this can be an opportunity for India and Vietnam to promote bilateral relations and complement each other, thereby contributing to the recovery and enhancement of supply chains in important fields, he said.

Delegates lauded Vietnam’s economic achievements in recent years with an average annual growth rate of 6-7 per cent. Vietnam is also a popular destination for foreign direct investment (FDI) with its signing of more than 10 free trade agreements (FTAs).

Ashok Juneja, President, Textile Association (India) said, garments and textiles are a key export sector of Vietnam with revenue of up to $36 billion, equaling India’s $38 billion in value terms. However, India exports $16 billion of garment and $22 billion of textile products, while Vietnam exports up to $31 billion of garments and only $5billion of textile items. Therefore, the two countries have ample space to boost cooperation in this area. Juneja added, India can boost Vietnam textile and garment industry by exporting natural fibers such as cotton, jute, silk and wool, to synthetic fibers such as polyster and nylon.

To compensate for the shortage of export orders, Vietnamese textile and garment companies are trying to expand into the EU market. Vietnam’s textile exports turnover declined 11.6 per cent during the first eight months of 2020. It is expected to further decline by 15 per cent until the end of the year, says Vietnam Textile and Apparel Association (VITAS). The textile industry currently has up to 118.7 per cent of goods in inventory as 20 per cent companies were forced to shut down while others cut labor and restructure production activities.

As many global fashion brands like New York & Company, J C Penney and Brook Brothers declared bankruptcy, Vietnamese textile manufacturers turned towards the domestic market, with main products including masks, work wear, medical outfits and fast fashion, targeting the cheap or mid-range segment. Though domestic consumption is expected to increase 5 per cent until the end of 2020, it cannot make up for the shortage of export orders, said Le Tein Truong, General Director, Vietnam National Textile and Garment Group (Vinatex). According to him, the Vietnam-Europe Free Trade Agreement (EVFTA) will allow companies to reach an export turnover of $7 billion which was that of 2019.

Having competitive pricing and fast delivery times will enable Vietnam to take full advantage of EVFTA and increase market share in the EU as well as compete with the Bangladeshi providers, Truong said. Businesses ought to improve logistical capacity to achieve shorter delivery time, and the government should simplify administrative procedures, reduce clearance and inspection time, he added.

Manufacturers should also start importing materials from countries that have signed FTAs with Vietnam and the EU to take advantage of cumulative rules of origin. Additionally, they should dabble in specialized, hi-tech, multi-detailed textile products or workwear, sports and medical products, while changing production technology, improving management capacity and investing in social and environmental factors.

Gap has released its ‘Preferred Fiber Toolkit’ put together in partnership with Textile Exchange. The toolkit is an online resource that details the environmental and social impacts of various raw materials, to inform likeminded companies striving to meet their sustainability targets. Serving as a complement to the Sustainable Apparel Coalition’s (SAC) Product Tools, the toolkit will not only disclose the associated environmental effects of raw materials but also other factors for consideration such as the subsequent impacts on labourers, biodiversity and land-use.

With this toolkit, users can flick through a database of raw materials and their associated impacts on not just the environment, but also workers, land, biodiversity and animal welfare. It will provide clear direction to create alignment and reduce the proliferation of conflicting guidance.

Textile Exchange (TE) will update the Toolkit with new data and a broader set of fibers and materials, before starting to use the tool to drive the adoption of ‘preferred’ materials.

Textile Exchange will also work to identify areas of further reduction of impacts to support the industry in meeting science-based targets. The updated Toolkit and the proposed review process will be shared with stakeholders for comments and feedback later this year.

Consumption of apparels in one of the biggest consumer market – the US -- has shrunk by 50 per cent. Nate Herman, Senior Vice-President –Policy, American Apparel & Footwear Association (AAFA) informs, retail sales declined 83.9 per cent in April, 62.3 per cent in May and 24.3 per cent in June. Fashion consumption is headed for a 50 per cent decline to around $200bn, except trade recovers sharply during the coming winter and Christmas holidays.

US’ worsening relationship with China is hitting American apparel brands and retailers as they import the majority of their readymade garments (RMG) from China. AAFA executives say China has failed to ramp up purchases of US cotton and textiles to roughly $1billion a year from to $600 million before the January deal. Other hot-points like intellectual property (IP) theft are distancing the two countries greatly. Many Chinese companies have been able to register a trademark that is a near copy of a US rival brand and have been continuously doing over the previous six months, in spite of Beijing’s pledges that it would stop these activities.

The recent development of sanctions against China’s Xianjing Production and Construction Corporation (XPCC) over serious right abuses in the Xinjiang Uyghur Autonomous Region (XUAR) by the US Department of Treasury’s Office of Foreign Assets Control (OFAC) has boosted claims of rights abuses against the Uyghur ethnic communities by China’s apparel industry.

There are rising calls for limiting import of apparels that include cotton and yarn from Xianjing, adds Herman, noting that this could dent apparel makers’ capability to make cheap goods.

The Sri Lankan government aims to increase garment production in rural areas in the next five years. The plans are to launch a program that will recruit 10,000 people for producing handloom textiles. It also plans to set up 200 villages and provide equipment for this purpose. Sri Lanka will also restrict its textile and readymade garment imports, and raise import tax on textiles. The government plans to revise the Rs 100 per kilo tax imposed on imported cloth and increase it to Rs 185 ($1).

Another plan is to modernize small handloom textile schools and encourage students to turn entrepreneurs. The government also aims to stop import of readymade garments to Sri Lanka in future and to manufacture more in the country. It plans to hoist a national flag made in Sri Lanka in every home on February 4, 2021, and use Buddhist flags made from local raw materials for the Vesak festival.

Disruption caused by the coronavirus pandemic enables Bangladesh to reinforce its position as a leading apparel exporter, said experts at a virtual discussion organized by HSBC, Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and Serai, a new technology subsidiary of HSBC on September 09.

Experts says Bangladeshi manufacturers can innovate new ways of production in order to expand their business and adapt to market shifts. Attended by garment makers and exporters, HSBC customers, regulators, international buyers and officials took part, the discussion focused on Bangladesh's apparel industry, global apparel demand landscape and technological penetration under the current context. It brought together industry leaders from across the apparel ecosystem to discuss how demand is changing, why Bangladesh is such a unique destination and how the industry can thrive in this new environment. The program began with short speeches and a discussion between Mahbub ur Rahman, CEO and Managing Director, HSBC; Rubana Huq, President, BGMEA and Vivek Ramachandran, CEO, Serai.

It also included presentations by Kanaiya Parekh, expert partner in retail, performance improvement, customer strategy & marketing and results delivery practices at Bain and Company, and Ramachandran

The Confederation of Indian Textile Industry (CITI), along with other industry bodies have urged the government to remove anti-dumping duty on viscose staple fiber (VSF) imports to enable the sector to achieve global competitiveness. Noting that the Ministry of Textiles has set a target of $350 billion market size for the growth of the Indian textiles and clothing (T&C) industry by 2025, CITI said this cannot be achieved until the country boosts its textile exports, especially those of man-made fiber (MMF) sector.

The industry has been facing stagnation for many years, mainly due to the lack of availability of basic raw materials of MMF/filament yarn at internationally competitive prices. Hence, various segments of VSF value chain, viz the Apparel Export Promotion Council (AEPC), the Bhiwandi Powerloom Weavers Federation (BPWF), the Confederation of Indian Textile Industry (CITI), the Clothing Manufacturers Association of India (CMAI) etc. have urged the government to remove anti-dumping duty on import of viscose staple fiber.

They say despite being the second largest producer of MMF in the world, India has only 20 per cent share in total T&C exports while China's share of MMF products stands at 80 per cent. The Indian textile industry is not in a position to fully capture the market opportunities compared to Vietnam, Indonesia, Thailand, Bangladesh, Pakistan, etc, mainly due to the expensive price of VSF which is the second most important basic raw material for the MMF textile value chain.

American mall owners Simon Property Group and Brookfield Property Partners are about to finalize an $800 million deal to rescue the embattled department store chain JC Penney from bankruptcy. They will pay roughly $300 million in cash and assume $500 million in debt,

Wells Fargo has also agreed to give Penney $2 billion in revolving credit once the transaction is completed, leaving the retailer with $1 billion in cash Penney plans to seek approval from the bankruptcy judge for this rescue deal early next month.

Meantime, the hedge funds and private equity firms that have financed Penney’s bankruptcy are set to take ownership of some stores and the retailer’s distribution centers, in exchange for forgiving some of Penney’s $5 billion debt load. Penney’s lenders, led by H/2 Capital Partners, are going to own those assets in two different real estate investment trusts, or REITs.

Hit hard by the COVID-1 pandemic, leading to mounting debts, Penney filed for Chapter 11 bankruptcy protection in May. It had nearly 850 locations at the time.

Dozens of other retailers, including the department store chains Neiman Marcus, Stage Stores and Lord & Taylor, have filed for bankruptcy protection during the COVID-19 crisis. Some retailers have not found buyers to rescue them. Lord & Taylor, the oldest department store operator in the nation, and the home goods chain Pier 1 Imports are in the process of liquidating.

The technical textile market is projected to reach $ 220.37 billion by 2022, at a CAGR of 5.89 per cent. The market has grown exponentially in the last few years, and this trend is expected to continue. Based on process, the woven segment is expected to be the fastest-growing during the forecast period. This growth can be attributed towards factors such as easy production and low cost. Woven technical textiles find wide application in various sectors such as construction, clothing, automobiles, and others. Thus, with the growing demand for technical textile in these industries, the demand for the woven segment will also increase. Additionally, advancements in weaving technology such as 3D weaving are also expected to drive the technical textile segment during the forecast period.

Based on application, the mobiltech segment is expected to grow at the highest CAGR between 2017 and 2022. Mobiltech covers technical textile used in automobiles, aircraft, railways, and shipbuilding such as nylon tire cord fabrics, seat covers, seat belts, cabin filters, tufted carpet, upholstery, and others. The automobile sector has been improving its existing market share and creating innovative products through new developments, consequently increasing the demand for technical textile. Therefore, the growth in the automobile sector will drive the market for technical textile during the forecast period.

The Asia Pacific region is estimated to account for the largest share of the technical textile market in 2017; due to rapid urbanization and increase in disposable incomes in the emerging economies of China, India, and Indonesia. Among all countries in this region, the market in China is projected to grow at the highest CAGR during the forecast period. The North American market is expected to grow at the second-highest CAGR between 2017 and 2022, with the US registering the highest growth rate in the region.

Scott Brothers Global (SBG), the home, lifestyle and entertainment company founded by designers and twin TV hosts,  Drew and Jonathan Scott, is delving deeper into soft home by adding to its existing bedding and bath categories with Welspun USA.

The Scott Brothers launched the Scott Living collection in 2014, and since then, they have continued to build the brand by partnering with leading manufacturers in the industry and expanding their distribution outlets. Today, their products are available in major retail outlets across the U.S. and Canada, with over $1 billion in cumulative retail sales.

Recently, SBG announced a new furniture partnership with Home Meridian International, a license that will include brands and products specifically designed for brick-and-mortar retail stores as well as e-commerce channels. In the same vein, SBG is now collaborating with Welspun on two home furnishing lines and several new categories, including sheets, towels, quilts and blankets, which will launch across all channels in the second quarter of 2021.

SBG and Welspun began working together in 2017 to produce fashion bedding for QVC. Through the expanded partnership, SBG and Welspun plan to reach new consumers with products available across more channels.

Welspun will be dedicating space to the Scott Living collection in its highly elevated, two-story virtual showroom at market. The space has prominent positioning within this presentation; however due to COVID-19 restrictions and protocols, Welspun will not be offering a traditional in-person showroom experience.