The trade war between the United States and China has resulted in the historic devaluation of various countries. A day after the new tariff raise became operative, The Popular Bank of China reported 7,0883 yuan for the price of one dollar, the weakest number since March 2008. Overall, this strength of the American currency weakens the value of other currencies, specially the already weak ones, like the emerging economies.

Turkey too has recorded a turbulent year for its currency. The political uncertainty of the country sank the value of its currency by 30 per cent in 2018 and another 10 per cent in 2019. Last August, the Turkish lira dropped by 12 per cent in less than 24 hours.

The euro too continues to weaken. The European currency dropped by the 1.10 euros bar, since 2017, its minimum number in 27 months. Fears of Germany in the technical recession and the threat of Brexit without deal the low of the currency.

Weakness of the euro will give a more competitive strength to the European exports but at the same time imports will become higher. It will also destabilise the external trade of devaluation, also historic of the sterling pound. Submerged in a downfall path because of its current political chaos, the drop of the British currency penalises European exports to the British market, the second in the region.

The stock of the pound, that started the year over 1.27 dollars, dropped this week the 1,20 dollars bar, going to its minimum in three years. If it keeps going down, it will reach levels not seen since 1985.

Foreign firms in Vietnam, rather than Vietnamese firms, dominate Vietnam’s exports to the world and particularly the US. In the garment sector, for example, Vietnamese companies only account for 16 per cent of the country’s export value with FDI firms making up the remaining 84 per cent.

South Korean garment manufacturers in Vietnam have been the biggest contributors. South Korean companies account for almost half of Vietnam’s garment export value. South Korean corporations have been in Vietnam since early 2000s and have well established supply chains in the country. In comparison most Vietnamese companies are still small-sized and do not meet foreign buyers’ requirements on quality, quantity and cost. South Korean and Taiwanese companies account for 98 per cent of Vietnam’s total exports of phones and parts. Vietnamese firms only contribute indirectly to the export growth by supplying some parts for these foreign companies.

Many American customers buy from their partners in China or from FDI companies manufacturing in Vietnam. US buyers still prefer products from China because prices are more competitive than that of Vietnamese products. The bulk of Vietnam’s imports comes from China, which accounts for 18.2 per cent of all imports into Vietnam. China is followed by South Korea, Asean, Japan and the EU.

Eurojersey has launched its new A/W 2020-21 ready-to-wear collection of Sensitive® Fabrics at the Premiere Vision exhibition. These fabrics feature versatile and multi-purpose prints designed for a contemporary lifestyle. Their impeccable fit is guaranteed by their innovative technical features. Ideally applied in the apparel industry, these fabrics have an across-the-board relevance and can interpret a wardrobe of multifunctional garments; from on-trend moods to urban-chic styles, more formal outfits for business occasions or feminine looks.

Rich in identity and glamour, these fabrics draw inspiration from the pared-down buildings of avant-garde architecture or the romanticism of a bohemian lifestyle, to translate it into a more contemporary and high-tech version. Their geometric motifs are offset by animalier prints or houndstooth weaves transferred with a perfectly defined rendering. Hyper-realistic patterns are impressed onto their ultra-flat surface with 3D-effect photographic precision, thanks to the company’s digital printing.

Cifra, a leading producer of Warp Knit Seamless (WKS ™), will present its new concept garments at the Functional Fabric Fair in Portland and Performance Days in Munich. These garments have been created in the name of uniqueness and sustainability with their exclusive, internationally patented technology. In short, these outdoor, hybrid, activewear and athleisure prototypes possess the highest in technological and stylistic qualities.

Cifra, which has always been actively involved in favor of environmental sustainability, is today considered an absolute point of reference in responsible production. On the one hand, there is the Zero Waste commitment and on the other, the Green Attitude project which has to do with the introduction of eco-sustainable and regenerated yarns such as Econyl® by Aquafil, QNova® by Fulgar, Starlight® by Radici, Amni Soul Eco® by Fulgar, Eco Smart® by Roica, and Sensil® Ecocare by Nilit Fibers.

Among the most recent in textile innovations, Warp Knit Seamless® undoubtedly ranks among the most significant and far-reaching. It has to do with a new way of imagining seamless, both in terms of manufacturing technology and in terms of the final product, compared to traditional garments which are made on circular or rectilinear machines.

The eight edition of the Barcelona Fashion Summit will be held from February 6, 2020. The event, in its latest edition will feature over 850 executives in the Palau de Congressos in Barcelona.

Organised annually by Modaes.es and the support of the Consorci de Comerç, Artesania i Moda de Catalunya (Ccam), the Barcelona Fashion Summit aims to value the importance of the fashion business in the country and create an environment of knowledge around the biggest challenges of the sector.

Every year, the event focuses in a theme of interest for the industry, in 2014, keys of the fashion leadership, in 2016 the digitalisation challenge, in 2016 vectors of growth, in 2017 generational relieve and in 2018 a reset call was made.

The title for the last event was: Fashion year 0: keys to reinvent the fashion business and had the presence of executives of retailers like Inditex, Desigual or Pepe Jeans, experts from DDB or EY, etc

The four-day 20th Textech Bangladesh International Expo that kicked off in Dhaka showcasing textile and apparel products of more than 1,300 manufacturers around the globe. Manufacturers from around 25 countries including China, India, Germany, the UK, the USA, Taiwan, Japan, Turkey, Italy and Sri Lanka are showcasing their products. They are displaying different type of yarns, fabrics, computer jacquard elastic belt, buttons, trims, accessories, chemical, dyes, machinery including Bow machine and other related products and services. According to them, this expo will help both the parties to cut cost, build contact and increase profit.

The Bangladesh textile and apparel export industry has been a key part of the country’s economy over the past few decades. The current export value of the industry stands at around US$ 31 billion per year. This is projected to grow to US$ 50 billion by 2021.

PG Denim, the designer project by Paolo Gnutti, is presenting new concepts developed for the S/S 2021 season at the Munich Fabric Start exhibition, being held from September 03-05, 2019(Munich, 3-5 September 2019). The company is focusing on circularity, seen from a dual perspective: the product with the no longer traditional alternation of seasons, and a sustainability oriented approach.

The collections by PG Denim are a ‘mix of products without seasonality.’ Their focal points are innovation alongside the concept behind the initial idea, as opposed to just the season. These collections have been designed starting form macro-trends and present fabrics for garments that are easy to wear and suitable for both warm and cold temperatures. The lines for the previous season are thus reintroduced and restyled playing with weights and sizes, within a range where flock meets ultra-light fabric bases, or where vinyl is combined with typically summer weights which shift the fabric towards the world of “paper” with crispy touches, resulting in extraordinarily lightweight and strong items at the same time. Also, the Garage Denim theme has been upgraded with fluid and smoothed touched for garments which are easy to wear and have a strong personality.

The PG Denim season has also partnered with The Denim Window project, which has resulted in a limited series of Creative Capsule collections, derived from the idea of bringing together companies which had already worked or were working together, trying to highlight – through small capsule collections – the best of what had already been produced by traditional businesses. This has resulted in three trailblazing capsules, two of which designed in partnership by PG Denim and companies the likes of M&J Group, Cadica and Greenwear.

Italian womenswear brand Chiara Boni La Petite Robe has received the Product Environmental Footprint (PEF) certificate for its completely local supply chain, high quality and authentic sustainable approach.

The brand uses Sensitive® Fabrics to create around 80 per cent of its collection mostly comprising dresses. Breathable, shape-retaining, stretchable in all directions, wrinkle free and long lasting, these fabrics are exclusively crafted for the eight iconic pieces selected for the PEF measuring procedure. These eight pieces are the most recognisable essentials of Chiara Boni La Petite Robe signature offerings that include formal dresses, gowns, jumpsuits and separates.

These ‘Measuring for a Sustainable Future’ pieces are identified by a customised handtag and three PEF indicators, which are essential for the calculation of the ecological footprint.

"The Chinese fast fashion market has been in doldrums since the last two years with overseas brands struggling with declining profits. Brands like H&M and Forever 21 have been rolling back planned expansions as the recent annual report of H&M reveals. The brand’s net sales have declined from 7 per cent in 2016 to 3 per cent in 2017 and the brand was also forced to scale back on its physical expansion. In the first half of 2019, it closed two more stores. British fashion retailer Topshop exited the Mainland China market last November by pulling out all its products from Tmall."

The Chinese fast fashion market has been in doldrums since the last two years with overseas brands struggling with declining profits. Brands like H&M and Forever 21 have been rolling back planned expansions as the recent annual report of H&M reveals. The brand’s net sales have declined from 7 per cent in 2016 to 3 per cent in 2017 and the brand was also forced to scale back on its physical expansion. In the first half of 2019, it closed two more stores. British fashion retailer Topshop exited the Mainland China market last November by pulling out all its products from Tmall. Forever 21 has also shut its online presence besides closing all stores, thus completely backing out of the country.

Though many overseas fast fashion brands had entered the Chinese market quite enthusiastically, they faced a tough time competing with local online retailers on websites like Tmall and Taobao. The tastes of Chinese consumers also shifted towards more elevated options, which hurt the operations of many fast fashion startups.

Growing middle class offers huge opportunity

According to McKinsey & Company, the growing middle class will constitute around 75 per cent of Chinese urban consumersby 2022. This offers a huge opportunity to many fast fashion brands targeting the middle-end market, However, it is essential for these brands to understand the segmentation within this demographic to ensure the success of their initiatives. Constituting seasoned shoppers having a long-standing relationship with online retailers like Tmall and Taobao, these consumers are in search of new options not available online. On the other hand, local customers are losing interest in fast fashion due to the bad quality and noncompetitive prices offered by these brands.

High-end fast fashion brands, planning to enter the Chinese market, now have to choose between digital and brick-and-mortar operations. For example, & Other Stories opened its first sales platform on Tmall unlike its sister brand COS which opted for a physical store instead. This saves the brand a considerable amount of money as against building and operating physical stores. The platform charges a deposit of around $14,000 (100,000 RMB) for a flagship store, an annual service fee of $8,362 (60,000 RMB), and a commission of 3 to 5 percent.

Digital market influenced by past customer experiences

However, a digital-only strategy requires an extremely strong product, since the overseas brands have to compete with a wide range of offerings online. The digital market in China is being continuously influenced by a variety of similar options suggested by Taobao, as well as product reviews from previous customers. This makes it extremely difficult for newer players to enter the market. Premium fast fashion brands tend to stand out from the competition thanks to higher quality and elevated product design, but these brands still need to find alternative channels where they can communicate their identities to Chinese consumers.

It is easier for brands to build their physical presence once they establish themselves online as their online operations enable them to interact with consumers even further. For instance, “COS Fitting Room” has been commended by Chinese customers on the much-hyped social app and e-commerce platform Little Red Book for its minimal interior design, attractive lighting, and ample space, positioning the brand as more luxury than fast fashion. This invaluable in-store shopping experience reaffirms COS’ philosophy of timelessness while also impressing customers.

Having already established its presence in the European and North American markets, & Other Stories has now entered China. Though the brand’s price and positioning match well with China’s market gap, it faces many challenges from domestic fast fashion brands and the growing demands of Chinese customers. Whether the brand can deliver advanced products and unique experiences needs to be seen as what the emerging middle-class consumer looking for is a high-end experience whether in terms of a digital or in-store experience.

China’s Shandong Ruyi Group has signed the newly created Fashion Pact with more than 30 other global fashion and textile firms, as the group formed to promote sustainable socio-economic development, and foster a better relationship between the fashion industry and the environment.

The Fashion Pact focuses on three primary areas of earth protection. The first includes stopping global warming by creating an action plan for zero greenhouse gas emissions by 2050, in order to keep global warming below a 1.5°C pathway between now and 2100.

Second, the pact plans to restore biodiversity, by restoring natural ecosystems and protect species. The third goal is to protect the ocean by removing the fashion industry’s usage of single-use plastics.

The other Fashion Pact companies are: Bestseller, Burberry, Capri Holdings, Carrefour, Chanel, Ermegenildo Zegna, Everybody & Everyone, Fashion3, Fung Group, Galeries Lafayette, Gap Inc., Giorgio Armani, H&M Group, Karl Lagerfeld, Kering, La Redoute, Matchesfashion.com, Moncler, Nike, Nordstrom, Puma, Ralph Lauren, Salvatore Ferragamo, Tapestry, Selfridges Group, and Stella McCartney.