FW
H&M, M&S cancel billions of dollars of Turkish orders
Turkish clothing exports may slump almost 80 per cent as global brands cancel billions of dollars of orders. Turkish companies are in talks with brands such as H&M, Marks & Spencer and Primark over payments and orders placed, reveals the Istanbul Apparel Exporters’ Association. Hundreds of billions of dollars of clothing in the country await shipment
Exports by the industry shrank by an annual 27 per cent in March but the decline could exceed 70 to 80 per cent by April or May. Turkish apparel companies had expected exports of $19 billion this year, with about 70 per cent destined for the European Union and Britain. However, manufacturers are now working at around 30 percent of capacity compared to 85 per cent three months ago. Many firms have suspended production, while others are working at minimum levels. There is no sign that the situation will improve over the next three months at least.
To tide over this, the association has requested the government to provide financial support for shorter working hours for at least five months from the start of April. It should also ensure that social security, taxes and bank loan repayments are delayed for a year.
PETA purchases stocks of apparel companies to ban harmful materials
PETA has purchased stocks at nearly a dozen fashion and apparel companies in the hopes of pushing those brands to ban wool, mohair and cashmere, specifically.
The names in this round of purchases include some of the biggest apparel companies in the US, as well as a few abroad: Ralph Lauren, Urban Outfitters, Guess, Burberry, Chico's, Express, J. Jill, Deckers Outdoor Corporation (parent company of UGG); Tapestry, Inc. (parent company of Coach NY, Kate Spade and Stuart Weitzman), Aritzia, Lands' End, Capri Holdings (parent company of Michael Kors and Versace), Target, Under Armour, Kering SA (parent company of Gucci, Saint Laurent and others) and Qurate Retail Group (parent company of QVC/Home Shopping Network).
The organisation has released 13 exposés to date depicting how harmful the shearing process can be to sheep and goats, despite brands' efforts to source from ethical suppliers. PETA argues that in addition to the animal cruelty factor, wool production can be harmful to the environment. A rep for the organisation points out that in many cases goats must consume massive amounts of grass or feed, creating soil degradation or using up land that could otherwise be used to grow crops to feed humans.
GOTS certified facilities increase by 35 per cent
Cotton Association of India retains estimates at 354.50 lakh bales for 2019-20
Despite the country facing a lockdown, Cotton Association of India (CAI) has retained its cotton crop estimates for the season 2019-20 at 354.50 lakh bales. Atul Ganatra, President of CAI maintains there is likely to be a good demand coming from Bangladesh as soon as the lockdown will be over. The association also expects good demand from China as well. Exports will also pick up when the lockdown ends
Currently, cotton procurement in the country has been stopped. Even Cotton Corporation of India (CCI) has stopped the purchase of Minimum Support Price (MSP) cotton because APMC markets are not working. CCI will start procurement of cotton once APMC markets open.
The cotton that is lying in the field has not been plucked. This is mainly due to manpower constraints. We do not know what the position of the crops will be. We will know in times to come if the crop is destroyed or not. We will know about it mostly in 10 days or so.
Levi's opens most stores in China
Levi Strauss & Co hased open majority stores in China, where the COVID-19 outbreak first emerged in December, with sales recovering on a weekly basis and digital sales rising last month. The company has also reported better-than-expected earnings and revenue for the first quarter ended February 23, even as sales in Asia declined due to store closures, sending Levi's shares up about 3 per cent.
Like many US retailers, Levi's has been hit by the COVID-19 crisis as lockdowns in China and the United States to curb the spread of the infection forced store closures. Levi's has stood through the world wars and the 1918 flu pandemic in its 167-year history.
The retailer has been investing more in its e-commerce business, adding features designed to attract young shoppers, to cope with decline in foot traffic to malls and department stores due to a shift in shopping preferences.
Levi’s now plans to furlough all its retail store staff in the country, a step taken by many retailers as they extend store closures. The company had about 7,300 US employees as of Nov. 24, according to its annual filing. It had borrowed $300 million on a credit facility to boost its balance sheet.
India pledges 23 billion package for garment workers
India - which has about 4,070 confirmed cases and at least 107 deaths - has pledged a $23 billion stimulus to provide food and cash to millions of its poorest citizens, along with $4 billion drawn from a welfare fund for construction workers. It has also asked companies not to fire workers or cut pay.
According to a 2019 study by the University of California, India’s garment sector employs at least 12 million people in factories, but millions more work from home - mostly women and girls from minority or marginalised communities.
About 85 per cent of home workers exclusively work in supply chains that export to the United States and European Union, it found.
India’s garment factories closed suddenly last month after the government announced a lockdown to run until Apr. 14, and officials have hinted at an extension until the end of April.
Home worker Anitha Nandakumar has been calling her factory agent every other day to find out when she will be paid for the work she completed in February stitching leather shoe uppers.
Despite the poor pay and long hours, several women said they had seen little choice but to work from home as their familal responsibilities meant they were unable to travel to a factory.
For those who were widowed or had a sick husband, the work provided the family’s only source of income, said Sonia Wazed, head of programme for the Society for Labour and Development.
PRGMEA, PHMA appreciate exemption of textile industry from lockdown
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Pakistan Hosiery Manufacturers & Exporters Association (PHMA) have appreciated the government's decision of exempting the industry from lockdown in view of providing financial relief to the workers. They pledged to take strict precautionary measures as directed by the government and health experts.
According to PRGMEA chief coordinator Ijaz Khokhar, opening the industry will retain millions of workers on their jobs, especially the women and the poor. The association also welcomed the government’s decision of releasing refunds of Rs 100 billion to the industry as this move will address the liquidity challenges faced by exporters, improving cash flow of the garment exporters and ensuring that workers will get their salaries on time.
PRGMEA regional chairman Sohail A Sheikh said orders worth millions of dollars from foreign buyers have either been cancelled or postponed. Under the prevailing circumstances, the small and medium enterprises immediately need government's financial assistance. Pakistan Hosiery Manufacturers & Exporters Association Vice Chairman Shafiq Butt suggested the government to take economic measures to keep industrial wheels running and save the livelihood of millions, including disbursement of all outstanding sales tax refunds at a fast speed.
Meanwhile, All Pakistan Textile Mills Association (APTMA) Punjab chairman Adil Bashir demanded the government should withdraw the ad hoc bills of Sui Northern Gas Pipelines Ltd (SNGPL). He also demanded extension in the last date for payment of gas bills issued for the month of March till lifting of the lockdown. Since there has been no production since March 23, 2020, therefore, there is no consumption of gas in the textile units.
India’s Buying Agents Association urges global buyers to retain export orders
India’s Buying Agents Association (BAA) recently appealed to large international companies that source apparel, handicrafts, leather goods and carpets, especially from small and medium companies in India, not to cancel export orders. The step would support the livelihoods of artisans and craftsmen.
BAA believes small and medium enterprises that rely on exports are particularly vulnerable. The association has also petitioned the government to support exporters as well service providers in the export sector. Its recommendations include exemptions in goods and services tax to all such service providers for the next six months as well as tax holiday for those with up to 10 crore turnover in exports.
BAA, formed in 2016 with the support of buying agencies and the Export Promotion Council for Handicrafts, represents buying agents that act as a bridge between overseas buyers and Indian exporters and work with key international companies. A large chunk of India’s exports across apparel, leather goods, furniture, carpets and handicrafts among other sectors, is facilitated by BAA members.
South Africa to assist ailing textiles industries
Regulations giving effect to the government’s commitment to assist ailing industries and workers through the Unemployment Insurance Fund are being gazetted. The first agreement is between the South Africa’s Minister of Labour and the National Textile Bargaining Council states that the regulations apply to all employers in the industry, not just council members, but only to those employees earning ‘wages’ and not ‘salaries.’
It guarantees an amount equal to full pay for the three-week period of the lockdown for those not working, jointly paid by employers with subsidies from the fund through its Temporary Employer-Employee Relief Scheme (TERS).
While these regulations do not specify the rand amounts, the standard industry agreements reflected that the scheme would pay out between R3,500 - the minimum wage - up to a maximum of R17,712 per worker on a sliding scale. The regulations state that the issue of relief for salaried workers is to be referred to a Rapid Response team, established to consider and resolve any unforeseen matters.
The preamble to the regulations records the intention to ensure that workers are not left destitute and to protect the industry. In order to claim, both the company and the employers need to be “in good standing” with the fund.
The secretary to the council has to open a designated bank account into which the funds will be paid out to qualifying employees. Companies must provide proper documentation for any drawdown of funds, and these must be made immediately available to the fund on request.
The agreement records that post lockdown, any overtime required to make up lost production will be paid at a normal rate.
Kering partners with CDC Foundation to provide personal protective equipment
Kering has partnered with the CDC Foundation to provide personal protective equipment and other vital supplies to assist in meeting the urgent needs of healthcare workers across the region. Kering and its Houses (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear) will collectively donate $1 million to the CDC Foundation, to support the valiant efforts of frontline healthcare workers in the United States, particularly in highly impacted states such as, New York, New Jersey, California, and Florida, and locations in Latin America.
The CDC Foundation is the independent nonprofit created by Congress to extend the lifesaving work of the Centers for Disease Control and Prevention (CDC) through public-private partnerships. As the global coronavirus pandemic escalates rapidly across the United States, and around the world, there is a growing concern that U.S. community health needs will rapidly outpace capacity. The CDC Foundation’s Emergency Response Fund allows for the deployment of flexible resources to fulfill priority response needs where appropriated funds are not available or cannot be deployed quickly enough. Thus, Kering’s contribution hopes to create complementary impact alongside government in ways that will protect and provide lifesaving support as together we work to combat this unprecedented pandemic.
In addition, with the stance of aiding the American fashion industry impacted by the pandemic, Kering will support A Common Thread, the CFDA/Vogue Fashion Fund initiative, as well as ‘Your Friends in New York™ Want to Help.’ an organisation launched by Kerby Jean-Raymond with a mission to create rapid local impact within the community. These contributions follow those already made by Kering in France, Italy, and China in recent weeks and the production of over 1 million surgical masks and gowns for healthcare personnel.












