Munich Fabric Start was held August 30, 2022, to September 1, 2022.

The positive, motivated and ambitious mood of the trade show with inspiring new products, innovative contents and future-oriented themes was transferred to the industry: More than ever, especially in addition to intensive discussions, especially about raw material and energy prices, buyers, product managers and designers in Munich showed a desire for something new.

The event confirmed its role as one of the most important European fabric shows and leading business platforms for the fashion and denim industry. Munich Fabric Start not only celebrated the comeback of Munich Fabric Start and the international denim trade show Blue Zone after the formats of the past seasons had been adapted for Covid reasons but also its growth with the biggest event in its history. In total, the approximately 900 exhibitors from 40 countries showed around 1,500 collections on a total exhibition area of 45,000 square meters, around 2,500 square meters more than at the last pre-Covid edition in September 2019.

Visitors number lower than pre-covid, but quality convinces exhibitors

Within the general trend in the trade show and event sector, Munich Fabric Start also recorded a corresponding decline in the number of visitors compared to pre-Covid times. With 14,200 visitors, the number was down, which was to be expected considering the continuing travel restrictions and reservations, especially transcontinental, as well as the structural changes to be observed in the fashion industry. Nevertheless, the quality of the buyers, designers and product managers present was convincing, which was also confirmed by the exhibitors. Mostly companies from Germany, Austria and Switzerland came to Munich. The Netherlands remained an important visitor group with companies such as Calvin Klein, Claudia Sträter, Expresso Fashion and Scotch & Soda. Also strongly represented with their teams were the Scandinavian region with visitors such as the Bestseller Group as well as brands from France and Italy, including Calzedonia, Diesel, Giorgio Armani or Lacoste.

Design Studios 60 and The Source hailed as unique Show-in-Show concepts

The organisers further expanded their successful show-in-show concept. In the Design Studios 60 leading international fabric designers, print and pattern developers came together. Keyhouse and Catalyser brought together technological, sustainable and aesthetic innovation drivers at the intersection of fashion and denim. The completely new format The Source was fully booked at its premiere with around 65 exhibitors and provided answers to the increasing demand for manufacturing and nearshoring.

In Germany, Europe‘s most price-sensitive market, almost every discussion at the show was about finding approaches to maintaining price points on the one hand and not sacrificing quality on the other – a balancing act in times of rising energy prices.

Innovations in all areas

Visitors encountered innovations in all areas of Munich Fabric Start and across all steps of the value chain. Many innovative raw materials were on show that were either recycled, recyclable or biodegradable – for example, from Wastea, Piñatex and Incalpaca. The many examples of highly efficient innovations to be discovered ranged from waterless dyeing to oxygen-based finishing to AI-driven processes as seen at Muze, Wiser and Tejidos Royos. In addition, fully digital dressing and design options played an increasingly important role.

Autumn Fair is being held in the UK, September 4 to 7, 2022. Spring and Autumn Fair are the UK’s most vibrant marketplaces for wholesale home, gift, fashion, and sourcing.

As the definitive shop for shops, they support the retail industry like no other.This is a wholesale marketplace for home, gift, fashion and sourcing, visited by retailers to source new products from hundreds of exhibitors as well as enjoy a host of insightful and educational talks and inspirational catwalk shows.

Visitors are delighted to discover exciting new brands and products. It offers the ultimate platform for retailers to discover, network, re-connect with peers, be inspired, and source their next best sellers for the golden quarter and latest seasonal and Christmas designs. Feedback from exhibitors highlighted the volume of quality orders being placed.

New features, educational and inspiring content being offered

Making the journey towards new discoveries even easier, a host of new features are offering curated product inspiration and creating a visual and interactive space for visitors to make their sustainability pledges. Visitors learn more about Autumn Fair’s three Power of One pledges to make positive changes towards better sustainability and well-being.

As part of its ongoing strategy to deliver educational and inspiring content, the Inspiring Retail Stage presented a host of talks on sustainability.Delighted by the volume and quality of visitors, many exhibitors commented on how busy the first day was. The new jewelry and watch space attracted huge interest.Retailers love the comprehensive menswear jewelry collection and the concept of endless switching with women’s rings and jewelry. A wide variety of international brands are exhibiting.

‘’Facing the Future: The Benefits of Sustainable Retail’’ explored the benefits of sustainable retail and how sustainability is impactful across every aspect from business, from own practices to suppliers and beyond. The session took the audience through tools businesses large and small can implement practices that prioritise sustainability, from mapping out high-risk areas in supply chains, whether it be waste, emissions or human rights issues, to opening peer-to-peer conversations and conversations with consumers for optimum transparency. The talk highlighted the importance of communication through all pillars of the sustainable journey, from visibility in the supply chain, introspective reviews of business policies, and how these expectations are embedded through suppliers and partners before being portrayed to consumers.

‘’Sourcing Ethical Suppliers that are right for your Business’’discussed the journey of sourcing ethical manufacturers and suppliers, from choosing the right one for one’s business, building relationships, and managing expectations. ‘’What is the Future for Sustainable Retail?’’ discussed the future of sustainability, unlocking the value of waste, embracing ESG values and the new definitions of retailing.

The place to be to touch, feel, and experience

Located in the center of the UK, Spring and Autumn Fair is easily accessible for UK and international retailers (be it independent, multiple, or online, designers, contractors, and suppliers) to meet every February and September. This is the place to be to touch, feel, and experience what's new and innovative across the home, gift, and fashion retail industry. It can be described as a treasure trove of new ideas and new trends waiting to be discovered and displayed in a shop, showroom or e-commerce site.

Banana fiber, hemp, bamboo, and coconut fiber are among the natural products that are finding wider use by garment manufacturers in Tirupur.

Black Bull Apparel plans to launch shortly-naturally dyed garments for infants.The company also plans to explore natural dyes sourced from suppliers for T-shirts.

With international buyers and brands pushing for sustainability in production processes and the end product, hosiery makers in the knitwear town are experimenting with different natural products for fibers, colors, and even printing. There are several smaller apparel and fashion brands in the international market that are promoting sustainability. Customers of these brands do not mind spending a little more and it is these brands that are looking for suppliers of naturally dyed garments. While this is an emerging trend that is encouraging many manufacturers in Tirupur to explore different natural sources for dyes, they face challenges while trying to produce such dyes in bulk and in getting more color shades.The production cost goes up three times when natural dyes, chemicals, and processes are used.

While cotton is a natural fiber used to make apparels, disposal of garments is a problem because of the dyes and chemicals used. So there is a big demand for natural dyes, even in domestic garment brands.

Stretch denim continues evolving and improving its performance in terms of comfort and coolness.

Isko Reform fabrics is a series of stretch denims offering from 20 per cent elasticity, for regular daily activities, up to 100 per cent elasticity levels, through a special denim supporting the wearer when engaged in heavy physical activity. Orta and The Lycra Company have a new collaborative collection of denims, Orta’s Thunderbird fabrics that hug one’s shape without pressure and keep their comfort despite one’s size and shape change.

These denims have a sleek compact crosshatch and open appearance added with 80 per cent elasticity that morphs to the shape of their wearer. They are made with Lycra Adaptiv, a fiber that hugs one’s shape without pressure. They are comfortable, easy to wear and holding one’s shape without providing any rigid tight feeling.

As these denims can be worn for longer, they adapt to one’s changing shape and size, an important aspect these days where if an average garment stays in use three times longer than today its carbon footwear is reduced by 65 per cent and its water use by 66 per cent. Only 19 per cent of clothing is disposed of because it is damaged, stained or worn out.

Wacoal is a market leader in the plus-size lingerie categories. The company promotes inclusivity and body positivity via women’s intimate wear with its extensive brand portfolio for Wacoal Europe which includes Wacoal, Fantasie, Freya, Elomi and Goddess. Large fashion brands typically need several manufacturing bases, especially to reduce the business risk of disruptions stemming from production being concentrated in one location.

Wacoal came to Sri Lanka in 2005 through a partnership with a leading Sri Lankan manufacturer and has been continually upscalingits operations in Sri Lanka and now employs more than 1200 people.

Sri Lanka was chosen since it scores high on all key criteria required of a manufacturing base for high-end lingerie in specific and high-end fashion in general.

Despite the recent challenges faced by the island nation, production volumes of Wacoal Lanka – the Sri Lankan entity – have been maintained.Wacoal is eyeing further expansion of its manufacturing base in Sri Lanka, with two additional production lines being added in the coming months. In tandem, the company continues to invest in new technology. Wacoal continues to have confidence in the country and believes strongly that it made the correct decision in continuing to invest in the country.

Pakistan’s textile exports grew six percent on a year-on-year basis in August 2022 compared to the same period last year.

The country’s textile exports increased by 4.7 percent on a month-on-month basis in August 2022 compared to July 2022.During the first two months of fiscal year 2023 textile exports surged by three percent year on year against the same period last year.

Pakistan’s textile exports had dropped by 13.21 percent on a month-on-month basis to an eleven-month low in July 2022 mainly due to a lack of energy supplies. However, continuous energy supplies in August have improved the situation. Pakistan’s overall exports have surged by over 11 percent year on year during August 2022.

Pakistan’s textile industry is faced with countless opportunities to capture a greater market share, but state reforms in energy, technological upgradation, diversification and value addition will be necessary in order to enhance the potential of the sector and facilitate economic growth.

Pakistan’s exporters handled disruptions such as the Covid pandemic very well especially in comparison to regional competitor Bangladesh.To maintain the current momentum, the textile sector has committed to unprecedented value addition by committing to setting up 1000 garment plants.

Falling demand in home country is leading to US clothing retailers including Walmart, Target, The Children’s Place, Costco, TJX and Kohl’s cancelling orders placed with apparel manufacturers in Bangladesh. Few buyers are also deferring shipments with most planning to reduce dependence on the US and the EU markets, says Shahidullah Azim, Vice President, BGMEA. Most exporters are now looking at other Asian countries like India, Japan and Korea as alternatives to the Bangladesh market, adds Azim. Now, BGMEA plans to arrange a single-country expo to add new buyers, he adds further.

Reducing dependence on US and EU

Fazlul Hoque, Managing Director, Plummy Fashions opines, Bangladesh manufacturers need to reduce dependence on two large markets to ensure their survival. The company has already acquired a new buyer in Brazil. It plans to strengthen its hold on the South America market, informs Hoque, a former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). High global inflation is worsening the entire situation with buyers unwilling to place new orders, notes Mohammad Hatem, Executive President, BKMEA. However, business may revive post-Christmas as demand for knitwear might grow, he adds.

Developing low-cost fabrics

Kutubuddin Ahmed, Chairman, Envoy Textiles the world's first LEED platinum certified denim textile facility advises the industry to wait and watch how the situation evolves. He also recommends more investments in research and development of low-cost fabric as people’s purchasing capacity has declined post pandemic and raw materials prices have grown 30 per cent in the last one year. Ahmed also, a former president of BGMEA believes, the ongoing downturn will continue for another six months with the Christmas sales in December helping retailers clear inventories.

Sales of most US retailers decline

Bangladesh’s apparel exports to the US crossed $10 billion value for the first time in FY22. Of this, $9 billion came from RMG exports, reveals Export Promotion Bureau statistics.

US retailer Target sold its unwanted inventory during the year, which deeply impacted quarterly profits that declined nearly 90 per cent from a year ago, indicates a report by CNBC. Major US buyer Walmart also announced plans to procure 30 per cent less for spring season as it has huge unsold inventory. The retailer cancelled orders worth billions of dollars to align inventory levels and cater to the demand of budget-conscious consumers. The US retailer cleared out most of its summer collection ahead of back-to-school season.

In its second quarter fiscal 2023 results, TJX bottom lines defeated Zacks Consensus Estimate. The company’s net sales declined 2 per cent to $11,843 million while its comparable-store sales declined 5 per cent Q2 FY’23 as against 21 per cent rise in the US open-only comparable stores sales in Q2 last year. The top line of the company missed the consensus mark leading to lowering of full-year adjusted margins and US comp store sales guidance range.

China’s position as the top global cotton importer is weakening.

Cotton shipments are flowing into flourishing textile industries in competing countries.

Soon after China joined the World Trade Organization in 2001, its textile manufacturers became the world’s leading importers of cotton. However, following years of rising production costs, volatility from government intervention in the market, and government caps on the volume of imports, China’s cotton imports dropped from their peak of 24.5 million bales in 2011 to 4.4 million bales in 2015, although they rebounded to 9.5 million bales in 2021.

Over the same period, competing countries such as Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey have expanded their textile industries and boosted cotton imports, which combined now exceed those of China. In fact, cotton imports into these countries are expected to rise by 8.1 million bales from 2021 to 2030 while China’s imports will rise by 3.5 million bales. By 2030 these five destinations are projected to account for 47 percent of world cotton imports while China accounts for just 24 percent.

This increasing geographic diversification of global cotton demand has helped US cotton exports remain relatively robust, and those exports are projected to rise by about 1.4 million bales between 2021 and 2030.

In the first half of 2022 Bangladesh’s denim exports grew by 57 per cent.

Bangladesh continues to persist as the top denim exporter to the USA. American denim imports from Bangladesh grew by 42 per cent in the first half. Mexico’s denim exports to the US grew by 26 percent. Pakistan’s denim exports to the US grew by 60 percent. Vietnam’s denim exports to the US grew by 44 per cent and China recorded a 26 per cent growth.

The apparel industry of Bangladesh despite numerous challenges, including reduced consumer demand and reported cancellation of some work orders by global buyers, managed to put up a decent performance in terms of apparel shipments in August 2022.

Bangladesh garment sector grew 446 per cent year-on-year in a single day during the period even if on the other end it also witnessed a negative growth of 54 per cent in a day. The hope is that August will end with positive growth though September and October are expected to see a negative trend.Plummeting sales in the West amid rising inflation driven by the Russia-Ukraine war is the big cloud on the horizon for the apparel industry of Bangladesh which is already taking a hit.

China’s mega-cities have again introduced new lockdowns. This could however lead to potential production stoppages, something thatis a cause for concern among international buyers.

Tianjin, the port city catering to Beijing, has made testing mandatory for 13 million people. The restrictions are compelling non-essential staff to work from home, while manufacturing companies have to reduce the number of employees active on their production sites. The situation is being closely monitored by western importers, still affected by the congestion in Chinese ports caused in part by the spring lockdowns.

Chengdu, one of central China’s biggest mega-cities, is meanwhile faced with lockdown measures affecting 21.2 million people. Here again Beijing is prioritising its zero Covid policy at the risk of slowing down the local economy, which has already been put to the test by the spring lockdown restrictions, as well as the energy shortages that punctuated the autumn and winter 2021-22.

China reported 1,717 Covid infections on August 29, including 349 symptomatic and 1,368 asymptomatic cases. In Hong Kong, the number of cases is on the rise, and there are expectations the number of infections will reach 10,000 per day this week, prompting fears that restrictions in this strategic city for the maritime export trade, which were recently relaxed, will be tightened again.