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Demand for athleisure still dominates despite return to normalcy

 

Athletic wear continues to drive apparel sales despite most people returning to their offices. Recently brands Abercrombie, Express’ UpWest and Revolve launched their first athletic wear collections following the first sneaker collection launched by footwear brand Birdies. Continued launch of athletic collections is also sustaining demand for high-performance fabrics and silhouettes. It is also boosting activewear apparel sales that surged 37 per cent year-over-year last year, says the NPD Group.

Athleisure dominated not just apparel but also footwear sales last year with sports-leisure footwear lifestyle sneakers emerging as one of the most popular shoe subcategories during the year. The category captured over one third of all footwear revenue in 2021, indicates a Modern Retail report. Athleticwear became almost a permanent fixture in shoppers’ closets with the trend continuing even this year.

Sustained demand leads to new launches

After the soft launch of a few styles earlier, Abercrombie recently launched its new athletic sub-brand, YPB. Denoting Your Personal Best, the brand offers products like leggings, bike shorts, sports bras and gym bags. The products were designed after almost 18 months of research post the launch of another sub-brand called 96 Hours in 2017, notes Kristin Scott, Global Brand President. For the last few months, the brand has been a witnessing demand for activewear on its website, explains Corey Robinson, SVP, Design and Merchandising. This has encouraged it to launch an active wear range focusing on quality and fashion alongside traditional athleticwear concerns like performance or fit.

Similarly Birdies has forayed into athleticwear space with two new shoe launches —tennis sneaker and a running sneaker. The brand that earlier focused on more formal footwear like velvet flats or tasseled loafers, has now riveted to sneakers, adds Marisa Sharkey, Co-Founder, Birdies.

Category positioning poses a challenge Besides Birdies and Abercrombie, other fashion-focused apparel and footwear brands that have launched athletic or athleisure collections this year include resort wear brand Ona, Express ’DTC subbrand UpWest and fashion retailer Revolve. Similar activewear collections were launched last year by non-active brands like intimates brand ThirdLove and luxury house Roland Mouret..

The activewear market has become bigger and more crowded, affirms Kristen Classi-Zummo, Director-Market Insights, NPD Group. The pandemic has made it a staple in all wardrobes. Most fashion brands are adding athletic-inspired shoes to subcategories like boots and sandals. These days, sport leisure footwear sales are largely being driven by athletic brands, adds Beth Goldstein, Executive Director, NPD Group. Similar developments are been witnessed in the apparel segment.

On the other hand, fashion brands are struggling to position their new athletic or athleisure assortments into their existing portfolio. For instance, Birdies was compelled to release its new sneakers collection under the main brand to highlight its versatility. The brand also launched a new marketing campaign focusing on athleisure values.

Abercrombie is highlighting the performance qualities of its new range. The aim is to make a clear distinction between earlier products and the new offering. Classi-Zummo points out, athleisure category will continue to grow in 2022 as customers look for apparels spanning occasions. Versatility will be key to athlesiure’s future growth as brand continues to focus on innovative styles, patterns and customization, adds Zummo.

Tuesday, 15 March 2022 16:42

AAFA, BGMEA to improve access to the US

  

The American Apparel and Footwear Association (AAFA) has partnered with Bangladesh's apparel apex body- BGMEA- to explore opportunities and work together to increase the country's trade access to the US market and improve purchasing practices.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the AAFA signed a Memorandum of Understanding (MoU), As per the understanding, the AAFA will support Bangladesh in promoting its trade interests in US market, especially advocating for the withdrawal of GSP suspension to recognise the progress made in the local industry in the area of workplace safety, workers well-being and environmental sustainability.

They will also work on creating joint scoping missions to explore bilateral investment opportunities, particularly in Bangladesh's backward linkage textile industries, especially in the non-cotton segment.

According to the MoU, the two groups will explore opportunities and work together to increase trade access for Bangladesh to the US market, improve purchasing practices, build on the great work already done by the Bangladeshi industry on sustainability, and expand the strong partnership between the US and Bangladeshi industry.

They will also work collaboratively on capacity building to cut time and cost, to make supply chain more sustainable, via developing joint programmes to train workers and mid/top management, and a special collaboration with BGMEA Center for Innovation, Efficiency and OSH, and a collaborative arrangement between the Parties and BGMEA University of Fashion & Technology (BUFT).

The two associations will inspire buyers-supplier collaboration to upscale product development and innovation capability to explore untapped segments of the export market, via joint research, coaching programmes, sharing of knowledge and information like fashion trend analysis and forecasting, matchmaking events, media campaign.

AAFA and BGMEA will collaborate to deepen discussion towards a unified code of conduct like symphonisation for social and environmental audits in manufacturing facilities, via setting up of a Joint Committee with clear terms of engagement.

They will also set up a corporate alliance on CSR initiatives to ensure well-being of the workers and communities.

  

Fabric makers in Bangladesh have launched a massive expansion drive to capture more share of the fast-growing global denim market. As per a Daily Star report currently, 40 denim mills produce 280 lakh metres of denim fabrics in Bangladesh. For instance, Envoy Textile has increased capacity from 3.5 million meters two years ago to 4.42 million meters of denim fabrics a month. Currently, the mill is fully booked with orders from the international retailers and brands, says

Kutubuddin Ahmed, Chairman says the mill ships more than $120 million worth of denim products a year to Europe and the US and is bringing diversification to denim products with new investment to meet the growing demand for the items. Amber Denim has expanded capacity to make the most of the growing demand. Currently, it produces nearly 40 lakh meters of denim fabrics a month. The denim sector is growing at 15 per cent as people are investing in the promising sector, says Showkat Aziz Russell, Chairman.

Mostafiz Uddin, Managing Director, Denim Expert, believes, denim will be future of business for Bangladesh. The global denim market size will increase every year boosting the growth of Bangladesh's market, adds Mostafiz.

  

The 2022 Fall/Winter edition of Korea’s largest fashion event, Seoul Fashion Week will be launched on YouTube’s official fashion and beauty channel according to the show’s organizer, the Seoul Metropolitan Government. As per a Korea Herald report, Seoul Fashion Week will be introduced through the global streaming platform’s vertical.

The YouTube Fashion & Beauty channel features videos of international runways, fashion shows’ backstage, insights on hair and makeup from the fashion world and celebrities, along with clips of designers, models and red carpets. It has about 1.5 million subscribers so far. Seoul city government has collaborated with the YouTube channel to enhance the fashion event’s position to one of the top five fashion weeks.

The partnership will focus on uploading collaborative content related to the Seoul Fashion Week on the channel. It will also share reviews of products by the fashion week-featured designers. Seoul Fashion Week is held every March and October, along with a biannual series of global fashion weeks. The 2022 F/W Seoul Fashion Week will be held March 18-23 in an online-offline hybrid format. It will mark the first time in three years the fashion show will take place offline amid the lingering COVID-19 pandemic.

  

Philippines’ garments, textile and apparel exports are expected to be worth $1.5 billion in 2022 up from $1.052 billion in 2021 despite lingering pandemic and Russia-Ukraine war. According to the Foreign Buyers Association of the Philippines (FBAOP, local players continued to receive orders, which other countries such as Vietnam, China, India and Bangladesh could not serve because of minimum volume requirement.

Robert Young, President, FOBAP and Trustee, Philippine Exporters Confederation says, the industry should protect its track record of being the second largest exporter of garments and textile in Asia despite supply chain problems. In 2021, shipments including the $200 million worth of finished goods remained in ports due to supply chain issues, says Young. FOBAP hopes the next government would implement a comprehensive, doable and sustainable roadmap to boost the textile and apparel industry. He urged the government to revive the nuclear power plant to resolve power cost, energy issues and reexamine workers’ wages.

  

Egypt’s garment exports grew by 54 per cent to $204 million in January 2022 compared to 132 million in January 2021, says Marie Louise, Head, Apparel Export Council. The US emerged largest destination for Egyptian garment exports with a value of $123 million in January 2022, compared to $78million in 2021; followed by European markets which received clothing with a value of $37 million compared to $28 million.

Exports to Arab countries increased 63 per cent to $25million while exports to non-Arab African countries declined 66 per cent to $109,000. Exports to the rest of the world, increased 58 per cent to $19 million. The country aims to open new markets through cooperation with Egyptian Commercial Service (ECS) offices in all nearby countries to increase the volume of exports to them — especially to Arab countries — in light of the Russian-Ukrainian crisis, which may negatively affect exports of ready-made garments, especially to the US.

The Apparel Export Council will continue its efforts to increase exports, says Louise. During February 2022 edition of held in Las Vegas Magic Show the Council set up an Egyptian pavilion with 14 companies from the apparel sector. The council also held bilateral meetings with 150 foreign buyers and succeeded in providing 30 export opportunities for companies that did not participate in the exhibition.

The council’s efforts provided four export opportunities for the ready-made garment sector to Spain through coordination with the Commercial Representation Office in Madrid, adds Louise.

  

Sweden-based technology company for digital dyeing of textile thread on-demand for embroideries, Coloreel, has sold an eight-head unit in Italy to Bond Factory. A prestigious Italian manufacturer of high-end apparel to the European fashion and textile industry, Bond Factory is also a part of the Dyloan group.

As per an Apparel Resoruces report, Coloreel will install a production line of eight multi-head unit inside the Bond Factory. Sales at the unit will be done in collaboration with Coloreel’s new distributor in Italy, Technoprogress.

Sven Öquist, VP Sales, Coloreel Group AB, says the installation enables Bond Factory to meet the fast-rising demand for Coloreel;s more environment-friendly and creative embroideries. This is also a great start for our Italian distributor Techno progress will help us capture the large Italian market together with them.

  

Bangladesh Bank data reveals, value addition in Bangladesh’s readymade garment products dropped to 55.80 per cent in the July-December 2021-22 due to global increase in raw materials prices. As per a report by New Age Business, value addition in Bangladesh’s apparel products has been declining since fiscal 2019-20. In FY20, the value addition dropped to 56.84 per cent from 64.32 per cent in FY19. Though value addition slightly increased to 59 per cent, in FY21, it again declined in the first half of FY22.

Exporters attribute the drop to the pandemic which disrupted supply chain and increased prices of raw materials. Apparel exports in the first half of FY22 grew 28 per cent while imports of raw materials increased 54.46 per cent in the period. Md Shahidullah Azim, Vice President, BGMEA opines, value addition in apparel products has been declining due to increasing freight cost and business operation cost amid the pandemic. Md Fazlul Hoque, Former President, BKMEA adds, attributes the decline to many factors but hike in raw materials price is the most prominent. Besides, cost of doing business has increased amid the pandemic, Fazlul adds.

 

Apparel exports from Latin America may rise despite raw material shortages

To ease COVID triggered supply chain woes, fashion brands in the US plan to step up orders to the South this year. This may boost apparel exports from Latin America even as suppliers may face certain raw material shortages. As per News in America report, apparel sales in Latin American countries like Mexico are likely to rise 10 per cent this year as more US buyers engage in near sourcing. This will boost demand for Central American and Columbian garments, says Raul Garcia, Head, Mexico WTC.

Garcia predicts, garment shipments from Mexico may hit $7 billion this year. Most of this growth will be dominated by increasing sales of knitwear, T-shirts, polo shirts, lingerie, underwear and socks, he adds.

Denim exports to surge

This year, denim exports may also increase sharply, says Garcia. This will benefit denim makers in La Laguna industrial hub who manufacture make denims for brands like Levi’s and Wrangler, he adds. However, lack of synthetic yarn and thread may make it difficult for suppliers to meet orders. To mitigate this, the industry plans to negotiate more flexible rules of origin under the United States-Mexico-Canada Agreement (USMCA), a free-trade deal between the US and Canada, adds Garcia.

Suppliers face 15 per cent shortage in fabrics

Latin American suppliers are currently facing a 15 per cent fabric shortage in supplies. To meet requirements, they plan to boost imports from China, India and Pakistan by adjusting the yarn-forward rule, notes Garcia. Central American exporters are already stepping up shipments to the US by 10 per cent, says Juan Sánchez, Owner, Texsun. However, like Mexico, faces raw material shortages. Suppliers in Gautemala are facing yarn shortages as a result of US ban on yarn purchase from China’s Xianjiang Uyghur Autonomous Region, notes Sanchez. Despite this, US brands continue to step up investments in Latin America, says Sanchez. And most investments are being directed to textiles, yarn spinning and apparels. Investments in sportswear, notably custom or logowear are also increasing, adds Sanchez. Rising capacity and sophistication boost supplies

In the past decade, Latin American companies have become more sophisticated and added capacities, says Sanchez. Their response times have reduced to just eight- to 10-weeks of bagging an order compared to 12 to 15 weeks five years ago, he adds further. In 2021, garment shipments from Colombia grew 50 per cent to $900 million informed Lavia Santoro, President, ProColombia, an export lobby speaking at Colombiatex de las Américas textiles fair last month. The two-day event had attracted around 270 companies and generated $6.4 million in potential sourcing contracts.

Brazil also witnessed 17 per cent surge in textile and garment shipments this year as a weak real boosted orders from key buyers in Argentina, the US and Paraguay. This year, garment shipments from Brazil are likely to surge 2 per cent due to COVID related uncertainty, adds Pimentel. However, demand for beachwear and denims may rise during in summer, boosting exports. The situation may become clearer in the next two to three months, he concludes.

 

Despite uncertainty Bangladesh RMG exporters upbeat with orders on the rise

 

Despite global tensions, Bangladesh's apparel exporters are upbeat mood as new orders are fuelling expansion of old factories and opening new ones. Since 2021, Bangladesh has set up around 200 new garment factories, say experts. And old factories are expanding capacities and subcontracting orders

More factories seek BGMEA membership

However, exporters fear, the current Russia-Ukraine war may cause a delay in payments and shipments. To offset delays, around 110 garment factories joined the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the last two years. Around 72 factories also joined Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) during this period.

Industrial Police (IP) stats show, around 55 new garment factories were set up in Gazipur industrial belt in the last two months. Most of these IP-listed factories are small-sized and subcontract orders that employ around25-50 workers. Masud Alam, Managing Director, MN Seven Fashions says, they opened a small-sized factory in Gazipur last year to make knits. The plan is to bag some of the orders that have recently shifted to Bangladesh due to US-China trade war.

Safety and compliance makes Bangladesh a preferred manufacturer. With work orders beyond capacity, a few manufacturers are engaging subcontractors to meet supply deadlines. Some are also expanding their machine capacities.

Shahidullah Azim, Vice President, BGMEA says, a few factories have been set up in recent months as global buyers are placing plenty of work orders. Orders diverted from China are also increasing with buyers adopting China-plus strategy. Compliance on safety and environmental standards too make Bangladesh a lucrative destination for apparel production, adds Azim. Exports surge to $31.45 million From July-January 2021-22 Bangladesh received work orders worth $23.98 billion for readymade garments both knit and woven. Exports grew 30.30per cent year-on-year during this period. Since September 2021, Bangladesh’s apparel exports earnings surged above four-billion in February. Growth is attributed to the strong rebound of apparel shipments from pandemic-spawned recession. Bangladesh’s apparel exports surged to $31.45 billion in FY2020-21 as the industry continued to expand production and restore supply chains

Remain connected with buyers and lein banks

The ongoing Russia-Ukraine conflict is a concern for RMG sector as Russia is an emerging market for Bangladesh apparel exports. Meanwhile, Russia faces wide ranging sanctions from countries with ‘banks’ access to SWIFT international payments systems blocked, he adds. In 2020-21, Bangladesh exported garments worth $593 million to Russia. BGMEA has advised exporters to inform the buyers they are currently working with alongiwth overdue payments and details of the concerned banks.

BGMEA has also advised exporters to remain connected with buyers and lein banks and take the required decisions only after discussing with them.