Burberry plans to increase sales in a big way.

The plan is to double sales of leather goods, shoes and women’s clothing and expand outerwear sales by 50 per cent in the next threeor five years.Longer term, the aim is to increase accessories from 36 per cent of sales to over 50 per cent. Leather goods are the profit drivers of the industry, with successful handbags generating gross margins of over 80 per cent so if the company can sell more It bags, that goal looks realistic. However there are obsacles. For one there’s a downturn in luxuryparticularly in the US.

There is less demand for expensive high-end items as more marginal luxury buyers begin to feel the pinch. So the fashion house best known for its black, white, tan and red check has its work cut out. Previous marketing and advertising efforts were disjointed. Focusing on Burberry’s heritage and made-in-Britain status should give the fashion house more of a coherent identity. Also, to ensure Burberry meets its targets, the Chinese market needs to reopen. Burberry is one of the few high-end brands unencumbered by a family shareholding.This British institution is yet to live up to its full potential.

Good times are spinning for the Indian hosiery industry expectations unfold for a ten-fold growth in the next 25 years with focus on a long-term adoption of good cotton farming practices and India becoming more self-reliant. Like a fish in troubled waters, now is the time for India to increase its global exports with many countries unwilling to import apparel from China after the Covid years as well as the disruption in the supply chain in Europe after the Ukraine war.

Focus on self-reliance and pan-India cotton mills

Taking advantage of Prime Minister Modi’s various all-inclusive schemes such as ‘Sabka Sath Sabka Vikas’ and self-reliance of ‘Make in India’, and ‘Self-Reliant India’, the hosiery industry should leap forward and increase its global export rankings, emphasized Rikhab Chand Jain, Former President of the Federation of Hosiery Associations of India (FOHMA) in his address at the Golden Jubilee Celebration in, Kolkata. The event took place on November 12, 2022. Jain said, the best is yet to come and the hosiery industry waits in anticipation in the post-covid years that have just begun

He said, although hosiery production has grown in Delhi-NCR, Ludhiana, and Bangalore over the last 30 years, a lot more is yet to happen. There should be more hosiery mills and focus in Jaipur, Indore, Pune, Kanpur, Varanasi, Nagpur, Surat, Bhubaneswar, Guwahati, Patna, and Ranchi among other cities. Industry leaders along with the Apparel Export Promotion Council (APEC) and the country’s youth should now focus on making India the world's largest hosiery producer and exporter.

Indian manufacturing for all segments of cotton industry

Jain said, “FOHMA should get due active representation in AEPC and other institutions. FOHMA should organize exhibitions and organize delegations for industry contacts abroad and be a part of effective research projects and programmes. FOHMA had made significant efforts to demand the establishment of a separate Ministry of Textiles as well as that it should have a rank of a cabinet minister.’’

Even after 75 years of independence, over 80 per cent of sewing needles, sewing machines, knitting machines, processing machinery, and knitting needles and other items essential for the hosiery industries are still imported from China and Taiwan at very high prices. A now self-reliant India must stop imports and substitute them by introducing local manufacturing by European brands or its China-Taiwan versions.

“For the last few years, with the price increase of 250 per cent in cotton fiber in past nine to ten months, the entire textile industry has been tremendously affected and exports fell drastically. The world's largest cotton and commodity traders have made huge profits from speculation and hoarding. Future trading was banned for seven items that had much lesser price hike than cotton, but cotton future trading was not banned,” Jain highlighted.

Jain summed up saying, it is time for foreign trade to be focussed on and free trade agreements with the US, Canada, Japan, Europe, South Korea, and the UK should be done soon. The government should allow export income to be tax-free for 10 years. Incentives such as a tax-free income for five years for new industries, allowing shareholders for tax rebates on the value of investment done and withdrawing the proposal to increase the GST rate on hosiery and apparel from 5 per cent slab should all be done soon. Instead of simply raising cotton pricing, delving deeper into the root causes and making the whole industry self-reliant is the way forward for the cotton industry.

Since 1989, Netherlands-based Clean Clothes Campaign has been working for the interest and betterment of workers in the textile and garment industries. It is now a global network of 235 organizations across 45 countries, helping identify work-force related issues that workers in these industries face and provide support and assistance to find solutions that improve working conditions and quality of life. In 2021, Clean Clothes Campaign introduced the International Accord on Health and Safety that became a binding contract for both, brands and local unions. Now, the South Asian Coalition of Clean Clothes Campaign has placed Pakistan on the radar as reports show regular violation of safe working conditions for its labor force by brands that have signed the Accord as well as brands that are outside the agreement.

Rampant disregard

In 2012, a factory in Karachi burnt due to arson and in what is described as the worst incident recorded of a factory fire, 264 factory workers perished. In a country mired with many problems that affect the manufacturing sector, safety hazards are ignored or lie unattended due to a lack of concern by proprietors and lack of awareness of workers about their rights to work in a safe environment. Deadly incidents are quite frequent and due to their numbers, the media don’t attach much importance to such news.

Clean Clothes Campaign tracked as many as 36 such incidents since January 2021. Tracking showed that most of these deadly incidents could have been well-avoided if basic safety measures were put in place. Plans have been underway since 2018 as garment workers unions in the country have been calling for signing the Clean Clothes Campaign International Accord on Health and Safety but four years on, obstacles prevent the introduction of the Accord. It is a surprise that brands such as Levi’s, GAP, Lee and Wrangler have a bad track record in Pakistan.

A vocal General Secretary of National Trade Union Federation in Pakistan, Nasir Mansoor has often stated how the signing and establishment of the Accord on an urgent basis is the need of the hour. He feels that it is right of every Pakistani factory worker to work in a place where their life is not in danger and he urges owners of manufacturing units to cooperate with the authorities in getting their premises inspected and faults fixed immediately. Ineke Zeldenrust, International Coordinator at Clean Clothes Campaign, supported Mansoor by stating that brands must act immediately in scrutinizing their supply chain to ensure that workers in their supply chain are not putting their lives on risk.

Stalled Accord

Whilst Clean Clothes Campaign says establishment of the Accord in Pakistan is in advanced stage, there are hurdles that keep stalling its implementation. The authorities are yet to decide when to launch it and a definite date is not in the horizon. Additionally, workers don’t know when and how they can seek protection of their rights from the program. Moreover, many stakeholders are opposed to an Accord built on the lines of the one established in Bangladesh as they feel the socio-political environment of Pakistan is unique in its own way. Thus the Accord is being redesigned to fit the Pakistan context and data collection is ongoing to get it right to enable just and legal representation of workers’ rights.

Gap’s thirdquarter net sales rose 2.5 per cent.

The brand’s formal clothing and dresses are having a steady demand from affluent consumers. People are preferring more formal clothing, dresses, woven tops and pants, shelving casual wear like T-shirts and shorts as they return to travel, work and social occasions after two years of pandemic-induced restrictions.Gap's Banana Republic, an affordable luxury brand, posted an eight per cent rise in sales, while its Old Navy brand that has been struggling with out-of-fashion clothes reported a two per cent increase.It expects fourth-quarter net sales to be down in mid-single digits. Gap saw strong volume in October slow a bit in the end and a little bit of a slow start to November.

Gap is expected to continue to struggle over the next 12 months because of its low- to middle-income consumer base and underperforming brands. Heading into the holiday season and 2023, discounts could continue for brands like Gap due to a weaker consumer. Soaring prices of essential commodities have damped lower-income consumer spending on non-essentials like apparel. In October, Gap removed products from its Yeezy Gap line created in partnership with Kanye West, and shut down YeezyGap.com following the rapper's anti-Semitic comments.

Arvind and PurFi will jointly attempt to reduce the amount of textile waste going to landfills.

Arvind is India’s largest textile to technology conglomerate and PurFi is a sustainable technology company specializing in rejuvenating textile waste into virgin quality products. PurFi’s proprietary technology creates a traceable 360-degree circular solution that rejuvenates textile waste into virgin quality fibers utilizing 96 per cent less water and 90 per cent less energy than virgin textiles. PurFi and Arvind will locate the first in a series of planned fiber rejuvenation facilities near one of Arvind’s manufacturing facilities in India.

This facility will process textile waste – white cotton, colored cotton, denim and synthetics – into virgin-like fibers for reuse from two lines, where each line will have a 5,500-ton capacity per year with plans to expand over the next five years. Expansion plans include an additional production line that removes elastomers from fabrics utilizing another of PurFi’s proprietary technologies.

The textile industry generates more than 64 billion pounds of post-industrial textile waste and 284 billion pounds of post-consumer waste annually. Yet only 12 percent of textiles globally are recycled and about one percent are upcycled. The circular economy is being embraced by those who are conscious of their carbon footprint.

Imports of clothing and accessories by Japan increased by 40 per cent yearonyear in October 2022.

They were three per cent of Japan’s total imports during the period. The country’s imports of textile yarn and fabrics in October 2022 were 45 per cent higher than the same period of last year. Yarn and fabric imports were one per cent of the total imports by Japan. The country’s exports of textile yarn and fabrics during October 2022 increased by 17 per cent yearonyear. The country’s exports of textile machinery were 38 per cent higher than exports in October 2021.

They contributed 0.3 per cent to the country’s total exports.Japan’s imports of clothing and accessories increased by 29 per cent during April 2022 to September 2022. These imports were three per cent of total imports during the first six months of this year. Imports of textile yarn and fabrics from April 2022 to September 2022 were 30 per cent higher than the same period of last year.These imports were one per cent of the total imports by Japan.The country’s exports of textile yarn and fabrics during the first half of fiscal 2022 increasedby 17 per cent yearonyear. These exports were 0.8 per cent of total exports from Japan during April 2022 to September 2022.

The accessories and packaging industry in Bangladesh is feeling the pinch of falling orders for readymade garments.

Foreign buyers are asking readymade garment companies to delay shipments of finished goods because they are faced with a fall in demand in their domestic markets and have large unsold inventories.Orders for garment exports have slowed down since October and any such reduction will have a corresponding effect on all the sub-sectors.

This is true especially of the accessories and packaging industry, the profit or loss of which is tied to the rise and fall of readymade garment exports. It is feeling the pinch as orders have declined. The accessories industry has to deal with delayed payments since garment exports are on hold.

Work orders for readymade garment exporters have fallen by as much 40 per cent. If garment accessories and packaging manufacturers received a work order for 0.1 million pieces earlier, it now has come down to 35,000 or 40,000 pieces.As garment companies see their business fall, accessories industries that supply various items which constitute the finished fabric are also facing deferred payment for finished goods delivered. There are at least some 2000 accessories and packaging companies in Bangladesh producing more than 25 products needed by the readymade garment sector.

The textile industry in India is shifting gears from linear to circular operations.

Manufacturers are making concerted efforts to introduce sustainability by using innovative materials, safe dyes, reducing water and energy consumption, treating waste material and ensuring a greater focus on reducing, reusing and recycling, ensuring that both pre-consumer and post-consumer waste are controlled. Zero Liquid Discharge, for instance, is a wastewater treatment process that removes all liquid discharge from a system. Apart from prioritising organic fabrics, the focus of the sector is all about conserving the natural environment.

Other projects, like processing PET bottles to make recycled polyester fibers, are also underway.This has triggered the movement towards slow fashion that works on a‘fit-to-demand model, reducing surplus and investing in garments that have a long life.With new innovations like 3D printing and new age fabrics made from hemp and bamboo, these changes come as first steps in a long journey towards sustainability.

With the high environmental impact, but large room for improvement, it is very probable that measures to implement sustainability in the textiles sector will have a significant impact.The textile industry in India, which has a four percent share of the global trade in textiles and apparel, is expected to grow by a compound ten percent a year till 2026.

Guangzhou’s large wholesale fabric market has been hit by low demand rather than the epidemic.

As of November 13, 707 new confirmed cases and 3,941 new asymptomatic infections were reported in Guangdong province, mainly concentrated in Guangzhou. Factories in Guangzhou areshut or running with limited operations. Though the epidemic has caused regional disruptions in production and distribution, lack of demand is the main reason for the depressed market. There has been no increase in orders from markets that have been unsealed.

Hanzheng Street in Wuhan, China Textile City in Shaoxing, China Oriental Silk Market in Suzhou, Nantong Folded Stone Bridge and other major cloth and garment markets are currently less affected by the epidemic, but market transactions are still thin. Factory orders have not improved significantly after the end of the epidemic control.Downstream finished goods inventory pressure is high, and the operating rate has gradually declined.

The high inventory of filament is mainly due to the obvious weakness of downstream demand, as grey fabric, textile and clothing are all under high inventory pressure. In China domestic sales of textile and clothing have gradually weakened and at the same time export orders have not improved. Domestic sales of filament declined rapidly in November.

Indorama’s Deja has won the Chemical Week award. Deja is the world’s first carbon-neutral virgin polyethylene terephthalate resinaimed at reducing environmental impact. These are the world’s first certified carbon-neutral virgin PET pellets. The Deja brand covers carbon neutral virgin and recycled PET resins and a range of recycled PET products, including flakes, resins, fibers, and yarns.It provides Indorama’s global customers with a range of high-performance applications, including packaging, lifestyle, automotive, apparel, and medical equipment.

The solutions help environmentally conscious companies meet their sustainability goals. Deja supports the UN Sustainable Development Goals of promoting a sustainable, greener circular economy. Chemical company Indorama Ventureshas set ambitious 2025 and 2030 targets, which are expected to be met through its six-pronged decarbonization strategy, including energy transition, improving operational efficiency, circular feedstock, and future technologies.

The company also has a goal to recycle 100 billion PET bottles annually by 2030.Chemical Week Sustainability Awards recognize the industry’s best efforts in addressing financial, operational, and strategic challenges by focusing on ESG and sustainable product development. The awards were assessed by S&P Global, the world’s leading credit rating agency, and a panel of experts from various companies across the chemical industry’s value chain.