The government approved for signing a pact between India and Japan aimed at increasing India's exports of textile and apparel to the Japanese market, and to boost co-operation in the textiles sector.

The MoU, when signed, will help identify areas for optimising the benefit of the Comprehensive Economic Partnership Agreement (CEPA) signed between India and Japan earlier, and improve the quality and testing of Indian textiles and clothing for the Japanese market. It will facilitate Indian exports to meet the requirements of Japanese importers as per technical requirements

This will help exporters expand their market in Japan and boost Indian textiles and apparel exports, including technical textiles to Japan. The MoU would enable the Nissenken Quality Evaluation Centre, Japan, to assign the textile committee as their cooperative testing and inspection service providers in India for textiles and apparel products.

These include technical textiles and any other products mutually agreed upon at a later date for both domestic and overseas clients.

With dwindling number of large retailers in the US, domestic textile and apparel firms heavily dependent on contracts from discount stores, Narendra Modi -led government’s push for a self-reliant India has further complicated problems for small and mid-sized exporters as they now have to certify the origin of imported inputs. Though these rules aim to prevent Chinese goods from being routed in via Asean countries, they could cause sourcing problem for Indian companies. The government’s focus on import substitution and its FTA re-strategization could result in many labor-intensive export firms being liquidated this year.

Acute need for non-farm jobs needed

In the last five years, India’s leather exports have declined to $4.8 billion, textiles and garments exports have declined to $32.3 billion while gems and jewelry exports have fallen to $35.8 billion. These trends were mostly seen in July when gems and jewelry exports declined by 50 per cent year-on-year and leather and man-made yarn by about a quarter.

Sebastian Morris, Professor-Economics, IIM-Ahmedabad, India opines, India fails to protect its labor-intensive industries To arrest the growth of under-employed labor in the country, the country needs to create jobs at a record pace, says a new McKinsey & Co report. According to his report, India needs to create around 140 million non-farm jobs by 2030.

Focus on exports

The return of US buyers lost to Chinese manufacturers augers well for Indian suppliers though high raw material costs puts them at a disadvantage against larger factories. Tirupur garment exporters are not sure of surviving without imports as they already face delays in routine reimbursements from New Delhi to compensate for fuel taxes and other central and state government levies.

Even though the government acknowledges the need to increase India’s exports, it is confident of micromanaging industrial development. On August 26, the Centre released a report assessing the export preparedness of different states. It highlights the government’s aim to increase electronic exports over the next five years as smartphone giants and component makers are likely to shift about a tenth of global production to India,

Capital-crunch increases risk of decline

Often, labor-intensive exporters in India are overlooked by Indian government as decisions are made on the merits of a free trade agreement with the European Union. An FTA with the EU would help garment exporters compete against Bangladesh. The government should also reflect on why apparel business is going to other countries, says Sunit Jain, Ratan Textiles. Morris attributes this to the squeezing of India’s smaller exporters between China and Asia’s new export-led economies.

Indian exporters have to perennially struggle with ever-changing government regulations, inflation and an overvalued rupee as well as severe competition from Vietnam and Bangladesh. They have very little money to upgrade their business which increases their risk of decline over the next few years, says Morris.

PVH, which also owns clothing brands such as Tommy Hilfiger, Van Heusen and Arrow, posted better-than-feared results in the quarter ending August 2.

The company’s revenues reached $1.5 billion, a decline of 33 per cent from a year ago, and the company recorded a loss of 13 cents per share on an adjusted basis, down from $2.10 earnings per share last year.

The company reported seeing encouraging trends in the China and Europe markets, but ongoing headwinds continue to plague the North American market as coronavirus continues to spread across the US. The company is not concerned about the status of stimulus discussions than about getting a grip on the virus outbreak in the US

Shares of PVH dropped by 3 per cent in the aftermarket after the company posted fiscal second-quarter 2020 results. Its stocks declined by 43 per cent year to date.

Womenswear brand Eka has launched a new re-purposed clothing range named ‘Ekaco.re’, that is a continuous collection to promote sustainability in the fashion industry.

The clothing line recently launched online with a separate, dedicated Instagram page to showcase its maiden collection. According to the page, the line is designed to be trans-seasonal, eliminating waste generated by left over stock from past collections when new ones launch. Clothing by Ekaco.re will retail until it sells out, no matter the time of year, and is designed to be versatile enough to be worn in different climates.

The line also recently launched offline with a showcase event at multi-brand luxury Indian fashion retailer Ogaan. Garments available at the launch included loose jackets, shift dresses, shirts, and palazzo pants in signature Eka hues of navy blue and ecru.

Eka, which means ‘one’ in Sanskrit, specialises in handloom textiles made by craft clusters in India. The brand’s studio is based in Gurugram and it also retails from multi-brand outlets in India and internationally.

Import data shows, US’ brassieres segment grew by 13.86 per cent in June ’20 over May ’20 and reached $124.30 million. Lifestyle pattern change and demographic dividend, rise in awareness on hygiene, and customization of product portfolios boosted the intimate wear market in the US.

Asia-Pacific emerged as a most potential manufacturing market for intimate apparel due to skilled labor, strong infrastructure, and low manufacturing cost. China is the major exporter of lingerie to North America. China, Bangladesh, India and Sri Lanka were suppliers in June, China the largest shareholder posted 19.47 per cent growth in its brassieres exports to the US to $ 50.10 million.

With $ 24.40 million export, Vietnam occupied the second position in brassieres export to the US. Though exports by the country declined by 30.21 per cent in June ’20 over May ’20.

With 346.38 per cent growth, Sri Lanka witnessed a massive growth with $ 13.26 million worth of brassieres to the USA in June ’20 as compared to only $ 2.97 million in May’20.

Bangladesh also grew ominously on M-o-M basis with 87.28 per cent bra export to the United States. It exported $ 4.34 million to the US in June ’20 as compared to the $2.32 million in May ’20.

Li & Fung has appointed Deepika Rana as its new chief customer officer. The newly created position serves to leverage Li & Fung’s global network in 50-plus production markets and integrate its diverse supply chain solutions.

The new position will create a keenly focused customer-centric offering for the world’s leading supply chain solutions partner for consumer brands and retailers. Rana has extensive experience in strategic sourcing and operations, having started her career in J.C. Penney’s Purchasing Corp., India. Prior to joining Li & Fung, she was the managing director of May Department Stores in India.

With over 30 years of experience in managing and leading end-to-end functions in the supply chain at country, regional and global levels, Rana’s strength lies in her innate understanding of brands, retailers and vendors, and in forging long-lasting partnerships.

Over the past 16 years at Li & Fung, Rana has championed innovative solutions that have delivered positive results for both its customers and vendor partners. Rana holds a Master of Arts degree in Business Economics from the University of Delhi in India.

The COVID-19 pandemic has led people to reconsider the fate of luxury apparels they treasured for generations. ThredUp estimates the resale of luxury apparels have grown 21 times faster over the past three years, says a CNBC report. The report says, secondhand apparels are being adopted by not just youngsters but also boomers and Gen X’ers. As per ThredUp’s Resale Report, 50 per cent consumers are cleaning out their closets more often than they did pre-COVID.

Luxury resellers readjust business models

Milton Pedraza, Founder, Luxury Institute, says, more people are visiting resale sites to sell their possessions out of necessity. These include people from higher income groups who have lost their jobs. But, this has created more supply than demand in the market. With consumers being increasingly impacted by the economic fallout of COVID-19, demand for these products is likely to be far less than supply. He estimates demand for luxury apparels in the US to decline further over the next 18 to 36 months.

Coronavirus has forced resale companies to adjust their business models to short-term and longer-term challenges including difficulties in finding the required inventory; meeting consignment partners conforming to COVID guidelines and lack of physical social events. Stocks of The RealReal have fallen to almost half of the value of its first-day trade after its May 2019 IPO. The company’s revenues declined 21 per cent in its most recent quarter ended June 30, while net loss grew to near-$43 million, up from roughly $26 million in the same period a year ago. Julie Wainright, Founder and CEO, says the company has moved further away from the early COVID shutdowns. Its New York market has returned to growth since July though Los Angeles still lags due to rising COVID cases in California.

The company’s supply is recovering, says Mathew Gustke, CFO. While apparel sales have declined, the company has witnessed a growth in sale of handbags and jewelry, along with home furnishings and art. The company quickly adapted to curbside pickup and virtual appointments for consignment partners. With virtual appointments and curbside pickup, the company also sends a van for apparel delivery. Though the company expects in-home appointments to eventually return, it considers virtual plus curbside pickup to be more efficient and effective.

Legacy retailers tap the resale market

Some of the biggest legacy retailers like Macy’s Nordstrom and Gap are getting in to resale market. In August 2019, Macy’s collaborated with ThredUp to launch a 40-store pilot program to sell secondhand clothing. Nordstrom started selling secondhand apparel, shoes, and accessories at its New York City flagship store, in early 2020.

By selling secondhand goods, these retailers are not only showing their concerns for consumers’ demands but also trying to attract younger consumers to their stores.

According to Cotlook, good sale of reserved cotton, and continual upswing of base selling price have raised the sale of cotton stocks by CCI. By August 25, the corporation sold about 1.04 million tonne of its reserved tonne The corporation alongwith the Maharashtra Cotton Federation currently have 1.22 million tone of reserve cotton stocks. CCI raised the base selling price of reserved cotton on August 11 and 14. From August 11, the prices of 2018/19 cotton have increased on an average of Rs 100 candy from the beginning of August, and the 2019/20 cotton price increased on an average Rs 300/candy.

On August 14, CCI announced the latest discounts and prices of cotton stocks during August 16 and August 31. It raised the 2018/19 cotton prices by an average of Rs 100/candy, and 2019/20 cotton prices increased by Rs 100-200/candy. The corporation also began to suspend daily sales from August 25 to deal with outstanding sales.

With the good sale of CCI's cotton and continual upswing of prices, sale of Indian cotton turn to be a support to the global market. Moreover, these sales also support the CCI's new cotton procurement in new season.

In October, Kingpins 24 will launch a new marketplace Kingpins Exchange. The new website will originate from a recently signed partnership with Material Exchange, a Swedish company working with some of the world’s most important retail apparel and footwear brands to analyze, optimize and digitize their material sourcing and development processes.

The digital platform for denim mills will allow Kingpins exhibitors to showcase their textiles to denim brands year-round. Kingpins is looking for ways to create greater opportunities for business and build new ways for brands to conveniently source denim fabrics from exhibitors. The goal is to provide brands with tools to be able to source denim and related fabrics instantly, view detailed product data online and help buyers make informed decisions about the materials needed for product design and creation process.

As a part of the plan, Kingpins Show organizers have decided to change the format of Kingpins24 by shortening it. The first new format will debut on September 22 and will focus on Canada. It will feature a two-hour livestream of live and pre-recorded content and will be co-presented with Canada-based Ani Wells of Simply Suzette.

Topics for Kingpins24 Canada will range from new models of business, to future-proofing brick-and-mortar retail and circularity in denim design. Brands and designers joining will include the godfather of denim Adriano Goldschmied; designer and consultant Malin Ekengren; Denim Dudes’ Amy Leverton; Brandon Svarc of Naked & Famous; Kelly Drennan, founder of Fashion Takes Action; Philippe Cantin, senior director of Sustainable Innovations and Circular Economy at the Retail Council of Canada; and Sabine Weber of Sustainable Strategies & Solutions. Wells, Olah and Vivian Wang, Kingpins Show’s managing director, will act as hosts of Kingpins24 Canada.

"Due to global pandemic, the year 2020 will see a massive drop in travels, a digital platform that can facilitate the same trade relations and business networking will be a boon for the industry."

So given all that ‘Ready To Show Virtual 3D Expo’ a global 4 days of high season exposure and visibilty to be held on Oct.,6-9th 2020. Organised by Tortona Design & Fashion Italy ‘A veteran organiser in Textile space’. A fair characterised by ‘For Itaian & Europian Buyer in the glorious past’. A unique platform mainly for NON-EUROPEAN producers, Ready Made Garments of all kinds, Fashion accessories like Shawls, Scarf, Stoles, Fashion Jewellery and Handicrafts, Fashion and Apparel Fabrics are all expected out of Asian Countries, ASEAN Countries amongst other Geographies notably Mauritius etc.

BOOTH FEATURES FOR EXHIBITORS ARE ALL NEW AGE WHAT VIRTUAL EXPO CAN POTENTIALLY OFFER

Event presents an excellent opportunity to connect, interact and conduct business with buyers, brands & retailers. Extensive promotion of the Virtual Trade Expo through different mediums – web, social, e-mailers and more is very aptly designed aiming at making the exercise business friendly & meaningful.

It clearly has a USP of connecting the exhibitors with ‘Selected Buyer’ along with all details for each participant, according to the product. It also has pre-arranged B2B Business meetings to make it a wholesome approach.

Additionally features like Webinars & Conferences are all there & in nut shell it is to ensure ‘Unique Virtual Experience Is Assured’ and surprisingly all this comes at a very affordable price intended to support trade in these trying times.