The textile industry in Pakistan is facing severe challenges due to the unavailability of cotton and restrictions on opening Letters of Credit (LCs) for imports. As a result, the industry's exports have been badly impacted, leading to large-scale unemployment across the sector.

Local cotton production had remained less than 5 million bales in the current season due to last year's floods and heavy rains. Therefore, the textile industry would need to import at least one million bales of cotton to meet its requirements. However, banks were not opening LCs for importing the required quantity of cotton.

Textile mills are currently operating at less than 50% of their production capacity, and around seven million people associated with the sector have lost their jobs. If the industry remained closed under the current unfavorable conditions, more than 10 million people would be rendered jobless, and the country would lose annual export revenue of over $10 billion.

India's exports of readymade garments (RMG) and raw textiles dropped by 12.1% and 17.5%, respectively, in February 2023. There was also a decline in handicrafts (down 28.3%) and leather (down 14.5%) exports during the same period.

The decrease in exports can be attributed to the anticipated slowdown in global growth, which is largely due to lower growth in advanced economies, such as the United States and the euro area, both of which are significant export markets for India. Additionally, a potential deceleration in domestic growth could lead to some softening in imports.

The shift in demand from goods to services, which is less import-intensive, is expected to continue, leading to a further slowdown in goods exports. The impact of monetary policy tightening could also intensify the decline in goods exports.

However, India's merchandise imports fell by a slightly lower 8.2% YoY to $51.3 billion in February, with core imports declining by only 2%, indicating the resilience of domestic economic activity.

Researchers at North Carolina State University have discovered a way to use enzymes to separate blended cotton and polyester fabrics, according to a new study.

The team hopes that this method will lead to a more efficient way of recycling these component materials, which will ultimately reduce textile waste. The study found that the process works well in separating cotton from polyester blends, which typically cannot be recycled. However, if the blended fabric is dyed or treated with chemicals that increase wrinkle resistance, additional steps are required.

The U.S. Environmental Protection Agency states that consumers discard around 11 million tons of textile waste in landfills each year, making this an important development. The researchers used a cocktail of enzymes in a mildly acidic solution to break down cotton's cellulose material. This then separates the cotton fragments from the polyester, which can be recycled.

While more work needs to be done, the researchers believe that this method has great promise, particularly as it is a mild process that uses enzymes that ignore the polyester. The researchers are also investigating the potential use of the slurry of cotton fragments and glucose as an additive for paper or composite materials, or for biofuel production.

True Religion, a denim brand, announced its partnership with Aurorae Group, the owner of Evisu Group, for its expansion into the Chinese market.

The brand plans to open 65 stores and shop-in-shops by 2026 and aims to have 108 stores by 2028. The Chinese market is expected to represent 10% of the brand's global volume by 2026. True Religion's e-commerce presence in China will also be expanded.

Aurorae Group will be the exclusive distributor in China for True Religion for mainland China, Hong Kong, and Macau, having the rights to sell the brand's full range of assortment, including core denim, heritage products, and collaborations. Aurorae Group will also develop licensed products specifically designed for the Chinese market, including apparel and accessories for men, women, and children.

In addition to the physical retail expansion, True Religion is taking strategic initiatives to transform into a digital-first direct-to-consumer brand. The brand aims to have a $250 million e-commerce business over the next four years.

Bangladesh is quickly becoming a hub for winter jacket manufacturing priced between $30 and $50 as orders shift away from China due to increased production costs and a shortage of skilled workers. Work orders for high-end winter jackets are shifting from countries such as Vietnam, India, Myanmar, Taiwan, South Korea, and Japan.

This new export sector is a result of local apparel makers diversifying their products in recent years with value-added garments. Despite global economic uncertainty, Bangladesh's apparel shipments have continued to grow due to the shift of work orders from China and increased export of value-added garments.

Local garment exporters in Bangladesh get almost half of what their Vietnamese counterparts make from garment exports due to various reasons, such as the production of basic items. However, the recent hike in the production of high-end value-added garments is reducing this gap as global buyers are willing to pay better prices for such products. Bangladesh's export earnings from apparel shipments have changed in recent times, with income now mainly value-driven rather than volume-based, leading to positive growth in garment exports even under difficult global economic circumstances.

In the January-February period of the ongoing fiscal, garment shipments grew 10.12% year-on-year to reach $8.36 billion, according to data from the Export Promotion Bureau. As Bangladesh continues to diversify its products and increase its production capacity, it is likely to remain a major player in the global garment industry.

Premium Group, the German fashion trade show organizer, has announced a complete repositioning of its flagship trade shows Premium and Seek.

The company is taking a bold step to meet the changing demands of the industry by introducing its new Trend and Event Platform. The first change will be to relocate the event to its iconic location, the Station Berlin. The event will be shortened to two days instead of three, with new opening hours from 10AM to 10PM including networking events and parties.

The new platform will focus on curated trends, lifestyle brands, and sophisticated fashion collections. The Conscious Club, one of Europe's most significant platforms for sustainability in fashion, will remain a part of the event.

Premium Group aims to provide more efficient business and networking opportunities for exhibitors and visitors while helping them maximize their time and investment. The company hopes to set an example for other trade show organizers to follow by introducing a new environmentally friendly concept.

The summer editions of Premium, Seek, and the Conscious Club will take place on 11 and 12 July 2023 in Berlin.

Mango, the Spanish clothing brand, is set to launch its Kids Labs concept at its best-selling store worldwide located on Paseo de Gracia in Barcelona.

After undergoing two months of remodeling, the 330-square-meter shop will feature an updated image and new layout, complete with a children's play area and a football table on the first floor. The goal is to enhance the in-store shopping experience for customers of the children's line.

The store's ground floor features a perforated didactic panel for its baby and newborn line of products exclusively, while the first floor showcases the entire range of children's products. The fitting rooms have also been redesigned to provide a more spacious and comfortable experience for customers.

The transformation of their points of sale aims to adapt to constant changes in the industry and to cater to an audience with different needs than adults.

Mango Kids was founded in 2013 and currently has 540 points of sale in over 80 countries, with a significant online presence in more than 75 markets. Mango Kids follows the New Med style, which uses elements that give warmth to the space and have a low environmental impact, in keeping with the brand's Mediterranean origins.

In June 2022, Mango introduced its first Kids Lab experience at its Boulevard Haussmann shop in Paris and has since expanded to other stores that opened from September onwards. The launch of its Kids Labs concept is in line with Mango's commitment to adapting to industry trends and providing added value to customers' in-store shopping experience, particularly for children.

Founded in Barcelona in 1984, Mango closed 2022 with a turnover of 2.688 billion euros, with 36% of that figure coming from the online channel.

The government’s decision of setting up seven Mega Integrated Textile Region and Apparel parks across the country will boost India’s textile industry and take it to the next level. The initiative aims to create world-class facilities, state-of-the-art infrastructure and an integrated value chain, making the textiles industry globally competitive.

State of the art, sustainable eco system

The mega parks will be shining examples of sustainability, with zero liquid discharge, common effluent treatment, use of emission-free renewable energy and adoption of global best practices. The parks will offer excellent infrastructure, plug-and-play facilities, as well as training and research support for the industry.

Central and state governments will work together to increase investment, promote innovation and create jobs. The state governments would provide land parcels of at least 1,000 acres and facilitate reliable power and water supply, waste disposal, effective single-window clearance system, along with a conducive and stable policy regime to ensure smooth operations and ease of doing business.

The textile parks will help the sector achieve its revenue target of $250 billion and $100 billion in exports by 2030. What’s more, it will help create about 20 lakh jobs and attract an estimated ₹70,000 crore domestic and foreign investment.

The initiative has received an enthusiastic response from the textiles industry, which sees it as a game-changer and has expressed optimism that lower logistics cost, modern infrastructure, global scale of operations, and supportive policies from the Centre and the states will take India’s textiles sector to new heights; provide top-quality products at competitive prices both in domestic and international markets.

Synergy with trade agreements

The mega parks scheme dovetails with government’s initiatives of free trade agreements (FTAs), which open up developed markets for Indian textiles, apparels, and several other sectors. India has already signed trade deals with the UAE and Australia and is negotiating with Canada, Britain and the EU.

These efforts will help Indian textiles get deeper access to profitable developed markets and help the country significantly increase its share in global textiles and apparel trade.

With these developments, India's textiles industry is poised for a quantum leap that will make it a global investment, manufacturing and export hub. This is a significant step towards achieving India's aspirations to become a developed nation by 2047 and being the largest exporter of textiles to the world.

Yohan Lawrence, Secretary General, Joint Apparel Association Forum (JAAF), Sri Lanka, is optimistic the country can increase its annual apparel export revenue by at least $500 million if they are allowed to export more items to India. Indeed, Sri Lanka’s apparel manufacturers have successfully been doing business both in India and across the world even through the crisis. The apparel sector is one of the top export earners for the country and maintained production even through the worst economic crisis. However, between these success stories brews another not so happy story, where workers are being laid off without much compensation, salaries have been reduced and factories shut down.

Workers face job losses

As per reports, around 300 apparel manufacturing companies in Sri Lanka employ almost 350,000 workers who produce garments for major international brands. And triggered by the recent economic crisis, almost 50,000 garment workers have lost their jobs.

In fact, a new research published by Clean Clothes Campaign (CCC) highlights, workers in Sri Lanka have not been receiving full Emergency Relief Allowances meant to alleviate their desperate situation because of the economic crisis. CCC called on major brands sourcing from Sri Lanka to take responsibility for their workers’ survival as well as their right to organise and to decent labour standards.

Major global brands that source from Sri Lanka include: PVH (Calvin Klein, Tommy Hilfiger), Gap, Nike, Victoria's Secret, Amazon, Asos, Next, Marks & Spencer, Patagonia, Columbia Sportswear, Ralph Lauren and others. This CCC has called upon these brands to ensure workers in their Sri Lankan supply units are paid the ERA unconditionally and that their right to organise and to have decent working conditions in line with the Conventions of the International Labour Organisation are safeguarded.

As per a AsiaNews report, many Sri Lankan garment factories have not only cut jobs and wages, but also closed entire facilities without paying the paltry compensation recommended by the government.

Indeed, the impact of Sri Lanka’s political and economic crisis traversed every aspect of life in 2022. After the declaration of bankruptcy last May, the country’s foreign reserves dwindled and rupee was devalued. Inflation touched almost 70 per and the population of 22 million faced extreme hardships.

However, through the crisis the country’s apparel sector manufacturers kept their composure, with factories continuing to run. This is mostly because orders continued to come in and exports brought in much-needed forex. And as per Indika Liyanahewage, Chairman, Sri Lankan Apparel Exporters Association, small manufacturers were hit particularly hard as they struggled to manage their expenses. Yohan Lawrence, President, JAAF says, while small manufacturers struggled for survival, larger ones found ways to manage.

Brands need to take onus

Workers were the most affected, as the basic monthly income of many of them struggling with hyperinflation fell to around Rs 25,000. What’s more, as per secretary of the Manufacturers' Association, Dhammika Fernando, the number of workers have been reduced in factories with some companies downsizing their operations. While units with 400-500 employees are open four days a week, the workers in these factories have to work 10 hours a day without overdoing it. Experts point out, most workers are migrants mostly women. Their incomes have been reduced or in some cases laid-offs.

Anton Marcus, Joint Secretary, Free Trade Zones & General Services Employees’ Union, the largest union representing garment workers in the country says, “Brands have a responsibility to the workers that enable their profits. They must ensure that the factories they source from pay their workers the Rs 10,000 ($27) Emergency Relief Allowance. If factories are not able to do so, then brands should step in and contribute financially to make it possible. The Sri Lankan garment workers have contributed to making these brands rich, the least these brands can do is to ensure their workers get through this crisis.” As of November 2022, apparel exports for the year for Sri Lanka stood at $5.14 billion, up from $4.57 billion for the same period in 2021.

British fashion retailer Superdry has agreed to sell its intellectual property assets in the Asia Pacific (APAC) region to South Korean firm Cowell Fashion Company for $50m as part of its ongoing turnaround strategy.

Cowell will own and use the Superdry brand in key APAC markets, starting with South Korea and expanding to others including China.

Superdry said Cowell, which focuses on licensing and manufacturing apparel products for global brands, is “ideally positioned to appreciate and maximise Superdry’s potential across the region”.

The retailer will provide “certain support and know-how relating to the Superdry brand” to Cowell for two years following completion of the sale and receive a $1m management fee.