Bangladesh is failing to take advantage of duty-free access to the UK market for non-readymade apparel, despite having a large Bangladeshi emigrant population living in the UK.

Sectors such as agricultural products, processed foods, fish, leather and footwear, and light engineering products have failed to extend their footprint, with RMG exports to the UK market more than doubling over the past decade. The problem appears to be a lack of information and unresolved issues surrounding setting standards and market promotional activities.

Of the total exports to the UK, only 7% came from non-RMG sectors. Bangladesh could benefit from the UK's Rules of Origin (RoO) and diversify its export basket by having unrestricted access to the British market. The Research and Policy Integration for Development (RAPID), a Bangladeshi think tank, believes that the UK's Duty-free Tariff Scheme (DCTS) could be a game-changer for Bangladesh to break its reliance on the RMG sector.

Before this can happen, there needs to be a major effort to address the lack of awareness and information gap between buyers and sellers, establish adequate compliance rules to meet the UK's strict standards, and reduce local taxes to encourage more companies to abide by UK standards. Policymakers need to take a long and hard look at exports and be serious about the paradigm shift Bangladesh needs for the transition from a single-sector export basket to multiple-product diversification.

Athleisure, a blend of athletic wear and fashion, has become a booming $306 billion industry that is predicted to double by 2028, thanks to a combination of fashion and function.

The trend started in the late '70s, with people wearing athletic clothing as everyday wear, but the term "athleisure" was only coined in the late '90s. Technological advancements in fabric development have driven the trend, prioritizing breathability, anti-static qualities, and sweat absorption.

Recently, textile scientists have created fabrics that respond to body temperature, adding to the growing demand for even higher performance activewear. Popular brands in the athleisure market include Lululemon, Alo Yoga, and Sweaty Betty, along with collaborations with luxury fashion houses such as adidas by Stella McCartney and Nike x Jacquemus.

The COVID-19 pandemic has boosted the athleisure market, as people have turned to at-home workouts and prioritize comfort and versatility over formal wear. With fewer places to go, athleisure has become a popular choice for everyday wear. Online shopping has played a significant role in maintaining market growth levels, despite the loss of in-person shopping experiences.

The trend of athleisure is best defined by its aim to popularize comfortable clothing that can be worn for both physical exercise and casual wear. The market for athleisure continues to grow as people are beginning to value clothing that not only looks good but also feels comfortable. The industry's future looks promising, with expected growth in sales and the possibility of more technological advancements in fabric development.

Pakistan's textile exports continue to decline for the fifth consecutive month, reaching a low of $1.2 billion in February 2023, the lowest since May 2021.

This marks a 28 per cent year-on-year decrease in textile exports, with February 2023 figures down from $1.67 billion during the same period in the previous fiscal year. Additionally, textile exports have also decreased by 9.1 per cent month-on-month, compared to exports of $1.32 billion in January 2023.

The current fiscal year's first eight months (8MFY23) saw textile exports amount to $11.24 billion, down almost 11 per cent from $12.60 billion during the same period in the previous fiscal year (8MFY22).

The decline in textile exports is part of an overall trend of decreasing exports for the sixth consecutive month in February 2023, with exports declining by 18.67 per cent to $2.31 billion compared to $2.83 billion in February 2022, according to data released by the Pakistan Bureau of Statistics (PBS).

Fashion brand Esprit is returning to North America, having signed a lease on a new creative headquarters in New York City.

The 40,000 sq ft space will house the brand’s global design, branding, creative and marketing offices, with around 120 employees set to move there by the end of 2023.

While Esprit was founded in California in the 1960s, it left North America in 2011, with its operational headquarters remaining in Hong Kong. Now, the company wants to re-establish itself as a true American brand and will open flagships in New York and Los Angeles later this year, as well as additional stores in Miami, Vancouver and Toronto.

As part of the move, Esprit has poured resources into understanding the US market, conducting consumer research and adjusting the quality of its fabrics, clothing fit and prices. The company has also decided to concentrate on its hero products and foundational products, rather than chasing trends.

The company’s decision come to the US market is to capture a premium positioning into the space that has been left by the likes of J.Crew and Banana Republic.

Victoria's Secret, the intimates giant had a challenging year but is on the right path after its first full year as a public company, as per the company press release.

The company's fourth-quarter net profits decreased by 29.7 per cent, but adjusted profits of $2.47 a share beat analysts' expectations. Sales for the three months ended Jan. 28 decreased by 7.1 per cent, but were in line with Wall Street's expectations. For the full year, net profits fell 46 per cent, and sales declined 6.4 per cent.

Despite the challenging economic environment, the company feels is "prudently positioned to begin 2023." However, the first quarter isn't shaping up to be as strong as analysts hoped, with sales projected to decrease by a percentage in the mid-single-digit range, and adjusted profits projected at 30 cents to 60 cents a share, below the 83 cents analysts anticipated.

The CEO said the company's brand repositioning efforts are tracking well, and the company plans to continue building on its core offerings as the leader in the intimates market through a pipeline of bra launches and expanding its international footprint.

A recent study from the University of Illinois examines the impact of Brazil's increasing cotton production on U.S. cotton exports.

While the U.S. is currently the world's largest cotton exporter, Brazil is quickly catching up due to a large expansion in land area devoted to cotton and a growing focus on trade. The study estimates that U.S. cotton exports to China have decreased by approximately $500 million annually, with Vietnam, Pakistan, and Bangladesh receiving more U.S. cotton exports as a result.

In contrast, Brazil's cotton exports to China have increased by approximately $75 million, and the country has become a major player in the Chinese cotton market.

The study suggests that Brazil's success in the cotton market is due to its suitability for the production of many commodities, its rapidly developing infrastructure, and capacity to sell products globally. Despite the recovery of U.S. cotton exports to China since 2020 when the U.S.-China Phase One trade deal was implemented, Brazil's market share remains high, and it is expected to continue to grow.

Metaverse Fashion Week (#MVFW23) has announced the program and participants for its second annual event, taking place from March 28 to 31, 2023.

The event will feature designers from the Decentraland community, including Dolce & Gabbana, Tommy Hilfiger, Coach, Adidas, DKNY, Monnier Paris, Dundas, Phygicode Dress, and more.

The focus of the event is to demonstrate the potential of interoperability between open metaverses and push the boundaries of digital fashion. MVFW23 will take place across multiple metaverses, with the Luxury District in Decentraland serving as the heart of digital fashion. Other brands and companies, including Miami Fashion Week, Ben Bridge, Diesel, and Kraken, will also participate in the event, showcasing their Wearables and NFTs.

The event aims to connect emerging digital designers with established traditional fashion institutions, emphasizing the connection between innovation and tradition. The program will feature community designed activations and initiatives, such as Dear Vivienne, an immersive installation inspired by the late fashion icon Vivienne Westwood, and Alo, which will bring yoga and meditation sessions to the metaverse.

Bangladesh and India have a huge prospect in enhancing bilateral trade, especially in the ready-made garment and textile sector, according to Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Hassan says that with a growing middle-class population in India, Bangladesh's RMG exports have a highly potential market, while Bangladesh is also a promising market for Indian cotton, man-made fibres, dyes, chemicals, and other raw materials.

During a meeting with a delegation from the Cotton Textiles Export Promotion Council (TEXPROCIL), both parties agreed that more business interactions between apparel and textile exporters of both countries would help to explore new opportunities and meet mutual needs.

However, Hassan stressed the importance of removing trade barriers and building adequate infrastructure and transport facilities in land ports to accommodate the increased transportation demand.

Hassan expressed his appreciation to the government of Bangladesh for allowing apparel exporters to import yarns from India in partial shipment through various land ports. Previously, RMG exporters could only import yarn through the Benapole land port under the bonded warehouse facility, but they were not allowed partial shipment.

BGMEA and TEXPROCIL agreed to collaborate in paving the way for more business between the two neighboring countries.

Overseas Chinese Association in Bangladesh (Ocab), believes that Bangladesh will experience increased investment in the textile and clothing sectors due to a favorable business environment.

According to the annual report of the Bangladesh Bank, China invested $465.17 million and Hong Kong invested $179.22 million in the July–June period of FY22, bringing the total Chinese investment to $644.30 million. The USA was the top investor with $661.12 million in investment in FY2022, which was 19.2% of the total foreign direct investment.

One example of such investment is the South China Bleaching and Dyeing Limited, a 100% export-oriented Chinese company that has invested $150 million in the Dhaka Export Processing Zone with an employment of 10,000 workers and employees. As a rapidly growing multinational organization in Bangladesh, South China Limited has earned a solid reputation locally and globally in the textile and clothing sectors over the years.

The mission of the Overseas Chinese Association in Bangladesh is to foster a relationship between the two nations and two cultures. Bangladesh Investment Development Authority (Bida) attributes to the country becoming a hub of investment in the South Asian region and it is expected that Chinese investment in Bangladesh will continue to rise in the coming days.

Hong Kong also has become one of the leading investors in Bangladesh, pouring $1.8 billion to date mainly in the textile and energy sectors, with bilateral trade reaching over $1 billion.

India’s lifestyle industry is up and running with demand for locally made products for international markets reaching customers through online mediums. The changed landscape of Indian apparel industry has seen many small and local businesses enter the segment with specific and sophisticated products targeted both at domestic and global customers, willing to pay a higher price for better quality and trendy designs.

Analysts say, almost all merchandise exports from India are rapidly growing and expected to more than double their current value by 2025. Having hit a record high of $40.38 billion in 2022, merchandise exports from India increased at around 15 per cent year-on-year to $35.26 billion earlier. Export revival, supply chain pipelines and improvement in consumer demand have altogether contributed to general growth.

Need to focus on circular economy for fast fashion exports

However, things may not be smooth in post-Covid markets as apparel exporters fear US and European economic slowdown, rupee depreciation, inflationary pressure and complicated geo-political situations due to the Ukraine war will slide down profit margins.

It is always the fast fashion apparel segment from low-cost manufacturing hubs of South East Asia that keeps the global export market thriving. To have an on-trend product portfolio with an excellent time-strategy system on offline shop shelves and online websites is now vital. Therefore, establishing overall infrastructural and capability ecosystem for a smooth end-to-end supply chain that can support a highly fluctuating and flexible manufacturing and production apparel industry is important.

Online retail websites require an added cost from fashion brands as they need to ensure they integrate partners who can support them with virtual platforms. Partnerships and collaborations in the Indian industry is fast increasing with a focus on high-tech products, versatile garments and accessories portfolio and reliable payment mediums and transport logistics which together create a wholesome customer-friendly brand.

Exports say, fast fashion is sustainable only in a circular economy where you need to give back and Indian brands need to focus on whether they will throw away, recycle or repurpose the garments, However, India is still taking baby steps in sustainable and circular economy, due to the high cost of maintenance to reduce their carbon footprint.

Government policies, R&D investments to propel sales

To tap into the Indian middle class which is a value-for-money segment that prefers quantity over quality, governmental regulations and investments are required on sustainability issues. A long history of inadequate trade infrastructure, low credit access, outdated technologies and trade barriers has made the Indian economy slow. However, new government policies such as the National Infrastructure Pipeline, Gati Shakti Scheme and FTA’s and the focus on increasing investment in R&D will propel the industry forward.

Working towards a vertically integrated set-up will help from Indian brands to cut costs and be more competitive with their price points and product USPs; increase investments on R&D to launch unique products. With the current fragmented supply chain, just about 3-4 per cent of fabric comes from the organized sector and high-tech machinery is not normally used in factories of most local fabric makers.

To compete with fabric manufacturers in Japan and Europe, the Indian garment segment needs to encourage FDI in loom manufacturing to start building capacity and increase to at least 40,000 looms per year over the next decade, from the current 5,000 looms a year. The moot point is, the apparel sector should not be a fragmented one as all processes in the value chain have to be interlinked and businesses leaders need to collaboratively focus and develop the industry with government help to both small and large manufacturers.