Prada sees strong sales growth in the second half of the year. Total revenues of the Italian fashion group jumped by 66 per cent at constant exchange rates. The global health emergency last year interrupted two years of sales recovery at Prada, the result of a revamp plan focused on boosting e-commerce and sticking to full-price sales. Like the rest of the luxury sector, the group started to see the first signs of a rebound last summer after the key Chinese market eased anti-contagion restrictions.

Sales from Prada’s store network were eight per cent above their level in the first six months in 2019, even through a sixth of shops were still closed during that period. There was a strong acceleration in the second quarter. Asia and the Americas exceeded pre-pandemic levels, while revenues in Europe - where shops remained closed longer - were still 29 per cent lower than two years ago. Once stores re-opened, sales partially recovered. Robust demand from local customers partially offset the lack of tourists in the region. E-commerce grew by 100 per cent or more compared with a year earlier. Online sales now accounts for seven per cent of retail revenues.

The industry is now steaming ahead as lockdowns have been relaxed around the world.

In the second quarter Puma’s sales increased 95.8 per cent. All regions and product divisions contributed with at least double-digit sales increases. Footwear was the growth driver. Also, apparel and accessories showed strong growth. Compared to the second quarter of 2019, sales were up 36.3 per cent with all regions and product divisions delivering double-digit increases.

The second quarter was a good quarter for Puma. Despite many operational issues, the brand saw very strong growth both in sales and profitability. Puma’s wholesale business grew 114.2 per cent. The direct to consumer business increased by 54.7 per cent with growth in owned and operated retail stores and e-commerce. After stores gradually reopened in the second quarter, demand shifted partially from the e-commerce channel to retail stores, while the overall underlying demand for the Puma brand was strong. The gross profit margin in the second quarter improved 360 basis points to 47.5 per cent. The improvement in gross profit margin was driven by better sell-through and less promotional activity, while inefficiencies in the supply chain including inbound freight had a negative impact.

Operating expenses increased by 34.5 per cent due to higher marketing expenses as well as sales-related distribution and warehousing costs.

Klim Glas, CEO and President, has urged the Biden government to utilize the Berry Amendment to increase domestic content rules for federal government purchases. Glass said, NCTO commends the Biden administration for awarding contracts for 22.2 million Berry-complaint masks in March this year. Their production according to the Berry rules will bolster the full production chain, he added.

The US administration is seeking to backfill the Strategic National Stockpile with essential products and NCTO, with other industry associations and labor unions urging the administration to continue purchasing Berry-compliant products for PPE. This is essential to bolster its domestic industrial base at a time when PPE orders have diminished. Further, NCTO believes Berry rules should be applied to other mission critical products purchased by non-Defense federal departments and agencies like Homeland Security, Glass added.

Fully maximizing purchase of Berry complaint products will help sustain the progress made to date and form an essential part of the administration's onshoring and industrial expansion efforts, he added.

In an open letter to European Commissioners Didier Reynders and Thierry Breton, Kalpona Akter, Head, Bangladesh Center for Workers’ Solidarity has called for strong rules against labor rights violations and access to justice for victims. The new rules should include mandatory value chain transparency so that everyone can easily trace a company’s production sites, or a T-shirt’s origin, Akter urges. Every year in April, when the survivors of the Rana Plaza collapse get together in memory of those who had died in the rubble, she is reminded what happens if workers’ rights are left to voluntary commitments, and what it takes for the victims to access remedy.

Akter says, the rules should ensure every company identifies, prevents and mitigates human right risks in its whole value chain, including the company’s own purchasing practices. She is a member of Clean Clothes Campaign’s global strategy board that has put forward concrete proposals for binding rules aimed at ensuring responsible business conduct in ‘Fashioning justice: a call for mandatory and comprehensive human rights due diligence in the garment industry’.

Japan has recorded a 2.13 per cent dip in apparel from January to May 2021. There has been continuous fall in woven garment imports. Japan’s import of woven clothing plunged by 8.35 per cent in these five-months. However imports of knitted garments were up 4.78 per cent in the same period.

Of the major shippers to Japan, China, India and Bangladesh registered growth in shipments. On the other hand, Pakistan, Vietnam, Indonesia and Sri Lanka recorded a fall in shipments. Japan is a sophisticated market, leaning towards small-lot and short cycle delivery of supplies. Consumption is diversified and quality expectations are high. High quality and expensive Indian garments are gaining popularity in Japan. Customers like selecting garments that have a different character when compared with dresses and kimono worn at such occasions as weddings and parties.

India Trend Fair was held in Japan, February 12 to 14, 2020. The trade show showcased Made in India clothing and accessories to Japanese buyers. The business matching event focused on knitted and woolen clothing as Japan is a major world market for wool, wool blended, and other textile products. The event featured over 300 product categories and over 25 pavilions.

Meryl Medical’s fabrics are based on the Meryl range of polyamide 6.6 yarns produced by Spain’s Nylstar. Fabrics based on this yarn range have proven to be more durable than, than cotton or polyester. The anti-shedding element is a property that is in the construction of the yarn. The non-shedding elements of the fabric are down to the Nylstar technology in the yarn. Meryl has worked closely with Nylstar to ensure the technology is put to best use in the highest quality fabrics. Meryl uses a hydrogen bonding to create strong molecular chains that seals in all microfibers in the yarns and the fabric is constructed to deliver exceptional touch with natural elasticity and the all-important (certified) non-shedding final product.

Meryl Medical’s fabrics are extremely versatile. The company has already manufactured bed sheets, pillowcases, polo shirts, face covers, tunics, doctors’ coats and many other apparel items. The business also involves the selling of fabrics directly to manufacturers.

The average lifecycle of textiles, including laundering, accounts for 6.7 per cent of all global greenhouse emissions, which is the equivalent of every person taking a 2,500-mile flight every year. Meryl Medical is passionate about the environment and sustainability.

Hermes’ Q2 FY2021 soared 127 per cent Y-o-Y and 33 per cent on a two year basis yearly basis. The brand‘s recurring operating income grew by 41 per cent to €1.722 million. Its net income reached €1.174 billion from €335 million a year earlier and €754 million in H1 2019.

The company’s H1 sales increased by 81 per cent at constant exchange rates compared to last year, and by 41 per cent compared to 2019. Wholesale activities improved by 46 per cent but remained penalized particularly by travel retail.

Hermes’ Asia sales excluding Japan rose by 87 per cent in H1 year-on-year and 70 per cent compared to 2019. They were driven by the strong performance in Greater China and the acceleration in sales in Singapore and Thailand. Its sales in the Americas grew by 115 per cent, with a Q2 acceleration being noted, and they rose 25 per cent over two years.

Japan sales increased by 59 per cent year-on-year and 22 per cent over two years while European sales excluding France rose by 52 per cent and were down only 3 per cent over two years. France sales increased by 35 per cent year-on-year, but declined by 16 per cent over two years.

Sales in Leather Goods and Saddlery segment rose by 63 per cent Year-on-Year and 25 per cent over two years while sales in the Ready-to-Wear and Accessories division, rose by 98 per cent over one year and 40 per cent over two,years. Silk and Textiles division’s sales rose by 72 per cent and 6 per cent, while Perfume and Beauty increased by 65 per cent on the year and 17 per cent over two years.

The European parliament’s recommendation to suspend Sri Lanka’s GSP+ status comes as a huge blow to the country’s apparel industry – which accounts for 47 per cent of the nation’s exports and 15 per cent of its industrial employment. As per a Daily News report, the Generalized System of Preferences or GSP, a preferential tariff system of the EU, helps Sri Lanka enhance export competitiveness in the apparel industry. The scheme also helps Sri Lanka create new jobs besides reducing the disparity between rural and urban incomes and increasing the participation of female employees in the workforce. It is a special incentive arrangement aimed at sustainable development and good governance in vulnerable, low and lower-middle income countries. The arrangement led to a reduction in custom duties to zero for EU countries in 2019.

Loss of GSP+ to make exports expensive

The loss of GSP+ status would make Sri Lankan exports to the EU 9.5 per cent more expensive than it is now. Already, Sri Lankan apparel is more “expensive” than its competitors. The loss would also threaten many small and medium enterprises exposing them to greater macro-economic vulnerability. Loss of GSP+ may also wipe out Sri Lanka’s razor thin profit margins in the apparel industry by making exports 9.5 per cent more expensive than its competitors.

Making Sri Lanka a self-reliant manufacturer

The Sri Lankan government has started negotiating with the EU to review its GSP+ facilities. It plans to highlight the progress made in implementing the conditions required to restore GSP+. Efforts to preserve trade agreements are likely to boost investors’ confidence in the Sri Lankan apparel industry. Sri Lanka will also benefit from growing technological prowess, ethical manufacturing, sourcing and sustainable manufacturing practices. Its apparels will become the preferred choice for customers in Europe, the United States, etc.

The Sri Lankan government needs to do everything in its capacity to restore the GSP+ benefits. This will provide it with sufficient time and resources to help to build and strengthen its apparel manufacturing capacities and make it self-reliant in this core market.

Pakistan’s knitwear export surged 36.57 per cent during 2020-21 over 2019-20. And it aims to increase its share to 20 per cent in 2021-22. The country’s earnings from knitwear exports are 25.83 per cent more than earnings from woven garment exports, 37.68 per cent more than exports of bed wear and 307 per cent more than exports of towel.

While Pakistan’s share in total world imports of knitwear is 1.83 per cent Bangladesh has 8.12 per cent share. About 30 per cent of small and medium units have closed in Pakistan in the last two years after the imposition of a 17 per cent sales tax.

Pakistan’s knitwear garment sector has topped the list of the textile groups for three years and it also provides the highest employment in the textile group. The country’s knitwear industry plays a vital role in value addition of the textile sector. There is a great potential of further development in this industry as there is substantial value addition in the form of knitwear apparel, sportswear, socks, gloves etc. Pakistan is diversifying knitwear products to bring more innovations and incentives to boost its exports. This sector has export potential despite remaining under pressure from its competitors mainly Bangladesh and the Far Eastern nations.

Telangana is India’s top supplier of cotton and the second biggest supplier of paddy. As a result, the state’s cotton purchase is nearly double that of Maharashtra, which stands second. In addition to the harvest acquired by individual businesses, the cotton crop was sold to the Cotton Corporation of India. Similarly, Telangana ranks second in paddy procurement. Punjab takes first place.

All crops are acquired from farmers at minimum support price as part of the Centre’s price support scheme, which is intended to eliminate intermediaries and help farmers. The procurement agency makes all payments to farmers for their produce straight into their bank accounts.

Telangana is in the process of formulating a textile and apparel policy that contemplates waiver of personal loans of handloom weavers. Fresh loans are proposed to be given at three per cent interest. Subsidies will be given for capital investment and purchase of equipment by entrepreneurs. Tax incentives and power subsidies are being examined. Some industrial parks will also be established in Telangana. Housing for workers and staff is proposed within the textile parks. The state has generated about Rs 73,000 crores in investments and created 2.56 lakh jobs. Telangana has achieved a year on year growth of 10.1 per cent in gross state domestic product.