The government announced an incentive package of Tk 30,000 crore to banks to provide loans to companies in the industrial and service sectors affected by the COVID-19. Bangladesh Bank has set up a revolving refinancing fund to provide half of this loan that is Tk 15,000 crore. All the banks will give a total of Tk 28,865 crore and the non-bank financial institutions will distribute Tk 1,135 crore.

According to the central bank’s policy, the term of this loan will be three years. Industries that have already availed capital from the bank will be able to borrow up to a maximum of 30 percent from this fund. However, only the victims will get this loan. Debtors will not get any loan from this fund. Not only defaulters but also traders who have rescheduled loans more than three times won’t be able to get the loans.

The loans that have been given to be recovered from the COVID-19 pandemic, however, for such critical preconditions it is not working accordingly. Also, the ability of customers to repay the loan is much less than before. So, the bankers are being very careful in giving loans for this.

The loans will be distributed by several banks such as state-owned Agrani Bank which will be able to lend Tk 914 crore from this fund. The bank has already sanctioned a loan of Tk 19 crore in the name of Wata Chemical, which is listed on the stock exchange. Hundreds of companies including Jamuna Group, Thermax, Acme, Diamond Cement, PHP Group, Apex Footwear, City, Nital Niloy Group have applied for loans from the bank.

According to GlobalData, almost 20 per cent of people under 45 have bought more clothing since coronavirus lockdown measures were put in place.

The anaylst said 19.3 per cent of consumers aged 16 to 45 have bought more clothing since the Covid-19 pandemic began, despite consumers in general de-prioritising non-essential items due to economic uncertainty and a lack of social events.

That figures compared to only 7.4 per cent of over 45s who have bought more clothing since the pandemic started.

Online clothing purchases have also served as a treat, and helped to uplift younger consumers’ moods throughout the pandemic, especially for those that have continued working and have had more disposable income, due to cancelled holidays and social activities.

GlobalData’s research was based on a sample of 500 respondents across 11 countries, conducted between May 26-31. Lockdown in the UK officially began March 25. As the end of lockdown and social distancing begins to near, GlobalData said retailers were likely to experience the greatest uplift in trade from younger demographics as they seek new clothing to wear for future events.

GlobalData said that as a result, retailers should start to adapt their social media strategies accordingly, by gradually incorporating fewer stay-at-home outfits into their posts or to provide more inspiration for upcoming gatherings.

The data and analytics firm also recommended retailers were more inclusive in their marketing campaigns, especially in light of the surge in the global Black Lives Matter movement and calls for better diversity and representation in all sectors.

In its bid to prioritize profits over everything else, global fashion industry has been veering away from its original purpose for the last few years. The outbreak of COVID-19 has further exposed the industry’s deep-seated disregard for the environments. The only way forward is to infuse a social purpose into the industry without de-emphasizing the importance of profit.

Reimagining fashion as a sustainable business

According to Rebecca Hendersen, a distinguished professor of the Harvard Business School and author of the new book, ‘Reimagining Capitalism in a World on Fire’, for many years, fashion industry only concentrated on satisfying the needs of its customers and delivering returns on investment.

Now, however, it will have to shift its focus to building a positive environment without pushing supply chains to the brink. Embracing a new purpose without exalting profits, the industry will have to re-imagine itself as a sustainable business.

Now, companies will no longer be able to maximize their prosperity by simply boosting shareholder values. They will have to alter their values of capitalism and invest energies in new choices. They will have to be more careful about the profits they make and stay away from investments that don’t align with this purpose. They will have to convince their staff and consumers about the seriousness of purpose by using a persuasive body of academic research which will help in boosting bottomlines.

Building a more resilient society

If the purpose of these companies is authentic, their productivity and capacity to innovate will increase and they will be excited to make a difference in the world. The pandemic has forced brands and retailers to face the vulnerability of their supply chains and make flexible investments against environmental and social calamities. Henceforth, brands and retailers will have to focus on building a more resilient society where all businesses are driven towards increasing the health and well-being of the society.

American athletic apparel manufacturer, Under Armour plans will soon end its deal with UCLA as it has not received the marketing benefits that it has been paying for. The $280 million deal, signed four years ago, is the largest apparel agreement in the history of US collegiate sports. The deal allows Under Armour to end it in such a scenario and the company seems to be only exercising its rights. Meanwhile, UCLA has made it clear that it will contest Under Armour’s move.

The deal is equally significant for both Under Armour and UCLA and therefore cancellation can bring more losses. While UCLA athletic department, which took a loan from the University to cover its $18.9 million shortfall for 2019, is already facing huge budget deficit, it’s not much different for Under Armour as well.

Transforming the current crisis into an opportunity, the European textile and clothing industry (EURATEX) has announced the EU Next Generation Package to make the industry more digital, sustainable and agile.

The package indicates, the transformation of the industry will be driven by five flagship initiatives in critical areas including organizing guaranteed supplies and building resilient value chains in Europe for critical PPE and other textile products; upskilling existing workforce to meet a rapidly transforming industry and attracting well-qualified young workers and professionals; investing in innovative and sustainable textiles through dedicated Public Private Partnership (PPP) at EU level; establishing five recycling hubs in Europe near textile and apparel districts and making raw materials by collecting, sorting, processing and recycling post-production and post-consumption textile wastes and ensuring free and fair trade for its companies.

Nike Inc plans to lay off some of its employees as it now aims to sell directly to customers through its online and retail channels. The planned layoffs will help the company to overcome the $790 million quarterly net loss, its first in more than two years, as its wholesale business bore the brunt of footwear retailers and department stores shutting down due to the Coronavirus outbreak.

The brand is shifting resources and creating capacity to reinvest in its highest potential areas. The company would now aim for digital to account for 50 per cent of its overall business, up from the 30 per cent recorded in the reported quarter.

Nike, Inc is an American multinational corporation engaged in design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area.

UK retail giants Next and Marks & Spencer have shown interest in being the franchise partners of international lingerie brand Victoria’s Secret. Next is also currently expanding its wider business by linking up with a large number of brands in multiple categories and is also growing by opening standalones in expanding categories, such as beauty.

M&S meanwhile is forging stronger links with external brands as well, after most of its history was dominated by its own label. It is looking closely at complementary guest brands to broaden appeal and increase online growth.

As it seeks growth opportunities, it would make sense to take on a major name in the intimates sector in which M&S already has a dominant position in the UK. It currently has a 27 per cent share of the overall lingerie market and 36 per cent of the market for bras, although this means any deal it might strike could attract the interest of the competition authorities. Regardless of which brand eventually wins control of the chain, it's likely that they'll want to seek better deals from landlords in terms of rent and service charges.

The Indian textiles ministry has decided to develop Kanihama village in Jammu and Kashmir’s Budgam district as a handloom village. The village is the traditional seat of Pashmina and Kani shawl weaving in Kashmir.

The village has around 250 handloom weaver households besides having more than 500 weavers and artisans. Facilities like looms, handlooms and handicraft showrooms and training for latest and innovative designs will be made available to the artisans in the village, according to media reports from the state.

The work that will be carried out under the project includes repair and construction of internal village roads, installation of ATM, drinking water and toilet facilities construction of 30 work sheds, 20 looms, parks, display of publicity hoardings, signage, installation of solar and street lights, beautification of surroundings and creation of tourist attraction points, craft demo in the village and plying of eco-friendly buses.

Advance Denim has opened a new fully integrated denim mill in Vietnam with Advance Sico. Located in Nah Trang, Vietnam, Advance Sico is designed to efficiently manufacture and ship more products to fulfill growing demand throughout Vietnam and Cambodia. With Vietnam emerging as a popular manufacturing alternative to China in recent years, Advance Sico believes the country will continue to grow as a global apparel powerhouse with its support.

Advance Sico aims to use 90 per cent sustainable fibers by 2023. Additionally, 100 per cent of all indigo used at Advance Sico will be Archroma aniline-free liquid indigo. This ensures that minimal sodium hydrosulfite will be used and no carcinogenic aniline will be present in the company’s indigo dyeing process, ultimately eliminating hazards within the production process. During typical denim production, some aniline stays locked into the indigo pigment and can be difficult to wash off the fabric. The remainder of the aniline impurity is discharged during dyeing. This poses concern as aniline is toxic to aquatic life, and elevated exposure levels can put factory workers at risk.

While Advance Sico aims to commit to pure indigo, the mill also operates its own state-of-the-art reverse osmosis water purification system on site to remove any harmful impurities from its effluent water supply. As Advance Sico grows and diversifies its manufacturing capabilities, the company isn’t losing sight of its goal to produce the highest-quality denim with minimal environmental impact.

The manufacturer believes that crafting true indigo comes from rope dyeing, and it is already operating two indigo rope ranges designed to dye the highest-quality vintage shades. To replicate these shades, Advance Sico has a team of expert Japanese dyeing technicians that have been crafting rope shades for more than 30 years.

The Indian textile market is slowly and gradually recovering, even though the impact of COVID-19 is massive, says Prabhu Damodharan, Convenor, Indian Texpreneurs Federation (ITF). Low-end, essential and value for money goods segments are moving well though fashionable apparels that depend on showrooms in malls are yet to make a recovery, he added.

The federation advised and cautioned members to scale-up production only after carefully analyzing demand. There is a good opportunity for Indian textile products to enter Japan market in the near future and 51 members of the federation have already expressed interest to make products for this promising market. Stating that the MSME financial package from the Centre had been helpful in increasing liquidity, Prabhu said people with eligibility criteria had easy access to get this package benefits, he added.