FW
Renowned British luxury brand celebrated for its exquisite handbags, Mulberry reported a 4 per cent dip in annual sales during FY24, echoing the concerns of other upscale retailers about a slowdown in affluent consumer spending.
Thierry Andretta, CEO, acknowledged the broader challenges facing luxury markets, particularly in the UK and Asia, where Mulberry felt the pinch. However, the company reported a sales boost in the US market, where increased brand recognition contributed to positive trading.
Despite a 7.2 per cent boost in international sales, the UK market experienced a 3.2 percent downturn in retail sales for the fiscal year ending in March. Reflecting on the hurdles faced, Andretta highlighted the absence of VAT-free shopping in the UK, attributing it to impacting not just retail but also hospitality, leisure, and tourism sectors. This setback was evident in the ‘golden quarter,’ encompassing the crucial Christmas shopping period, where Mulberry saw a 9 per cent sales decline.
Despite these challenges, Mulberry remains committed to its vision of global sustainable luxury. Founded in 1971 by Roger Saul and Joan Saul, the brand maintains its resilience amidst the turbulent market conditions, focusing on strategic execution to secure future growth.
Maintaining its outlook for the full year, Hugo Boss anticipates group sales to grow between 3 per cent and 6 per cent, reaching between €4.30 billion and €4.45 billion in FY24. The brand expects EBIT to increase between 5 per cent and 15 per cent, ranging from €430 million to €475 million.
In Q1FY24, Hugo Boss reported a 5 per cent rise surge in group sales, reaching €1.014 billion, marking a 6 per cent increase when adjusted for currency fluctuations. This growth was attributed to both the Hugo and Boss brands, across all regions and channels.
Notably, Boss Menswear saw a 5 per cent increase in currency-adjusted sales, while Boss Womenswear experienced a 7 per cent rise. Hugo witnessed an even more significant growth of 9 per cent, propelled by the successful introduction of its new denim-focused brand line, Hugo Blue.
Regionally, EMEA saw a 5 per cent increase in currency-adjusted revenues, driven by strong sales in Germany and emerging markets. In the Americas, revenues rose by 11 per cent currency-adjusted, with notable growth in the US market. However, Asia/Pacific only saw a 4 per cent increase due to sluggish demand in China.
The company's digital business continued to flourish, with a 10 per cent increase in currency-adjusted sales, complemented by a 3 per cent rise in physical store sales. Additionally, physical wholesale sales expanded by 8 per cent, showcasing improved visibility and penetration in key department stores.
To meet the burgeoning demand for broader silhouettes with an authentic appearance combined with a drapery hand and premium feel, Tencel launched two new collections: the Regenerative Cotton x Tencel Collection and the Application Innovation Collection, at Kingpins.
The Regenerative Cotton x Tencel Collection aligns with the trend of rigid fabrics and loose/baggy fits. The fusion of Tencel fibers with regenerative cotton offers a blend of sustainability, durability, and desirable product features such as softness and luxury feel.
Collaborating with 18 denim mills globally, Tencel developed styles like ribcage jeans, jackets, chinos, and baggy workwear, among others. These garments span a wide cost range to cater to various retail price points.
Partnering with 11 denim mills across Pakistan, India, China, and Vietnam, the brand’s 20-piece collection at the event exemplified its latest denim application concepts with Tence Lyocell, Modal, and Ecovero.
Beyond the Kingpins Show, Tencel also participated as a gold sponsor in The Innovation Forum in Amsterdam. The conference emphasised the brand’s commitment to innovation and sustainability in the fashion industry.
Thailand-based RMG company HiTech Apparel has signed a contract with Egypt's General Authority Suez Canal Economic Zone (SCZONE) to set up a sportswear manufacturing factory in the Qantara West industrial zone, Egypt.
Worth $20 million, the deal marks HiTech Apparel's first venture in both the Middle East and Africa, and is poised to create approximately 1,500 employment opportunities within the region.
Walid Gamal, Chairman, SCZONE, emphasised, this collaboration is a testament to the remarkable success of SCZONE's promotional efforts in recent times. The zone aims to establish a global clothing and textiles complex within the thriving, Ismailia industrial zone in Qantara West. The region has already attracted investments from diverse countries across a wide range of industries, with the textile and clothing sector at the forefront.
Both SCZONE and HiTech Apparel aim to accelerate the project to commence construction in the latter half of this year. The sportswear factory is slated to be operational in the second half of 2025.
Not-for-profit organisation, Ethical Clothing Australia plans to host a pivotal panel during Australian Fashion Week 2024. Titled, ‘Is there sustainable fashion without ethics?,’ the panel will be held on May 16 at the University of Technology Sydney. This significant discussion will be organised in collaboration with The Centre of Excellence in Sustainable Fashion + Textiles, a partnership between UTS and TAFE NSW.
The panel will focus on the examination of the garment workers’ rights within the textile, clothing, and footwear industry. A few of the esteemed panelists will include Dr Timo Risannen, UTS/Centre of Excellence in Sustainable Fashion & Textiles; Aldona Brangwin, Citizen Wolf; Jenny Kruschel, National Secretary-Textile, Clothing and Footwear, CFMEU Manufacturing Division, and James Dunlop, Representative, Be Slavery Free. The panel will be moderated by Rachel Reilly, National Manager, Ethical Clothing Australia.
Articulating the panel's core purpose, Reilly emphasised, while discussions on sustainable fashion often focus on materials and processes, the rights and experiences of garment workers are frequently overlooked. She highlighted, true sustainability cannot be achieved if it comes at the cost of exploiting workers in any stage of production.
Rielly opined, to meet its sustainability goals, the garment industry needs to first focus on the workers’ social and economic rights. With over two decades of experience, Ethical Clothing Australia upholds these rights by collaborating with businesses to ensure fair working conditions within the local supply chain.
By hosting this panel during one of the most prominent events in the fashion industry, Ethical Clothing Australia aims to catalyse meaningful discussions and drive tangible actions towards safeguarding the rights of garment workers and fostering a truly sustainable fashion ecosystem.
The global apparel industry is experiencing a significant demand rebound especially in the West that is US and EU, driven by factors like fading recession fears, improved consumer sentiment, and inventory restocking after the holiday season. This increase in buying presents new opportunities for garment-manufacturing countries, but the picture is not uniform.
China sees demand spike, Bangladesh a drop
As per a QIMA report Q1 2024 saw a 20 per cent YoY increase in demand for textile and apparel. US-based buyer demand for inspections in China grew by 12 per cent YoY, while European demand saw even faster growth, particularly from Germany (+35 per cent), France (+30 per cent), and the Netherlands (+33 per cent). China's apparel exports to the US rose in value terms by 0.48 per cent and in volume terms by 14.94 per cent in January-February 2024 compared to 2023. While China remains the dominant supplier, Vietnam is also showing promise
Bangladesh on the other hand despite the global rise in demand, exports to the US and EU witnessed a decline in the first two months of 2024 compared to 2023. As per OTEXA & Eurostat data RMG exports to the US and EU declined in 2024 compared to 2023. However, there are signs of increased inquiries from new markets like Australia, Japan, India, and Korea.
The data clearly indicates, China is likely to be the biggest beneficiary of the US buying surge, with strong growth in inspections and audits. Bangladesh may struggle to compete due to recent cost escalations. In the EU, both China and Bangladesh are facing export decline, though China's decline is smaller. Vietnam's exports to the EU have also decreased.
However, increased inspections in Bangladesh indicate potential order growth, with diversification beyond traditional US and EU markets (e.g., Australia, Japan).
Challenges and opportunities
There are several challenges for export growth among supplier countries. Rising production costs is foremost. Countries like Bangladesh need to address this issue to remain competitive. They also need to diversifying beyond traditional markets US & EU market that can provide Bangladesh and other countries with new opportunities. Moreover, export incentive policies can significantly impact a country's competitiveness.
The growing demand for apparels presents an opportunity, but Bangladesh faces challenges. Cost competitiveness and government policies (cash incentive reduction) are crucial factors for further growth. Diversifying markets and addressing cost concerns will be key for Bangladesh to capitalize on this potential bonanza.
Better Cotton, the world's largest cotton sustainability initiative, is teaming up with Afreximbank to conduct sustainability assessments in West and Central Africa. This initiative aims to understand the needs of smallholder farmers in the region and implement tailored interventions for sustainable and regenerative cotton production.
With a combined engagement of 200,000 farmers and farm workers in Mali and Cote d’Ivoire, Better Cotton's collaboration with Afreximbank is set to make significant strides.
This partnership aligns with broader efforts led by the World Trade Organization (WTO) and FIFA to support the cotton-to-textile value chain in the region. The recent formation of the 'Partenariat pour le Coton' coalition emphasizes the need for investment to enhance local processing capacities and maximize economic returns.
Better Cotton's assessments, conducted with support from its Programme Partners, aim to link farming communities with the WTO and FIFA's mission. Alan McClay, CEO of Better Cotton, highlighted Africa's importance in cotton production and the organization's commitment to sustainable economic development.
Kanayo Awani, EVP of Afreximbank, emphasized their dedication to supporting smallholder farmers and the cotton value chain, aiming for higher sustainability, quality, and global market potential. This partnership signifies a crucial step towards a more sustainable future for cotton production in the region.
Grasim Industries Ltd. introduces EcoSodium, derived from Viscose Staple Fibre (VSF) production, marking a breakthrough in sustainability. This innovation curtails environmental impact by minimizing Sodium Sulphate (SS) discharge into wastewater.
Traditionally, SS, a crucial inorganic chemical, is obtained through mining or synthetic methods, but Grasim’s approach mirrors global standards, prioritizing recovery.
ManMohan Singh, Chief Marketing Officer, asserts, "EcoSodium sets new benchmarks, blending sustainability with excellence."
EcoSodium guarantees responsible sourcing and manufacturing, complying with Reach, ZDHC MRSL standards. Its integration into various industries underscores its versatility, promoting sustainable development. Surya Valluri, Chief Sustainability Officer, underscores its embodiment of Grasim's sustainable ethos.
Assessment by BluWin Ltd. affirms EcoSodium's robust production and supply chain practices, with detailed case studies accessible on Birla EcoSodium website.
Federico Pellegata has ascended to the position of General Secretary of Cematex, succeeding Cornelia Buchwalder. The European Committee of Textile Machinery Manufacturers extends gratitude to Buchwalder for her professional and competent service.
Pellegata's nomination by the Cematex Board of Directors on April 11, 2024, marks a transition from his prior role as CEO of Acimit Servizi after a longstanding tenure on the Cematex Executive Committee.
Cematex, representing Europe's textile machinery associations and the proprietor of ITMA, the globe's premier textile machinery exhibition since 1951, faces forthcoming challenges under Pellegata's leadership.
Notably, he will oversee four major events, commencing with ITMA Asia + CITME in Shanghai from October 14 - 18, 2024. Subsequent exhibitions include ITMA Asia + CITME Singapore (2025), and ITMA Asia + CITME in Shanghai (2026), culminating in ITMA in Hannover (2027).
Ernesto Maurer, President of Cematex, expresses confidence in Pellegata's ability to advance the industry's exhibition leadership, emphasizing a commitment to digital innovation. Pellegata's extensive experience is poised to fortify the sector's global standing.
Frasers Group plc (FG) has finalised an agreement to acquire specific intellectual property assets from esteemed online fashion retailer, Matches Fashion. This strategic move follows an extensive marketing endeavor facilitated by the Joint Administrators overseeing Matches Fashion.
Under the terms of the agreement, FG has extended a license to the Joint Administrators, allowing them to oversee the sale of Matches Fashion's inventory for a limited duration, ultimately serving the interests of the administration.
Frasers Group emphasises that while the acquisition encompasses vital intellectual property assets, the existing stock held by Matches Fashion does not fall under the purview of this transaction. It reiterates that the joint administrators will continue to manage all operational facets of Matches Fashion to safeguard the interests of the administration, assuring brands and suppliers of seamless continuity in business operations.
