The revenues of Fast Retailing brand Uniqlo International grew 13.7 per cent Y-o-Y to ¥841.2 billion while the operating profit of the brand grew by 35.8 per cent Y-o-Y to ¥132.7 billion during the first nine months of FY23. The depreciation of the Japanese yen boosted sales and operating profit in yen terms. However, growth in local currency terms was boosted by a significant increase in revenues and profits from the South Asia, Southeast Asia and Oceania region and the North America and Europe (excluding Russia) regions. Revenues and profits from the Greater China region declined owing to the restrictions on general movement put in place to address the spread of COVID-19 infections.

Uniqlo’s parent company, Fast Retail Group’s revenues and profit rose to ¥1.7651 trillion and  ¥271.0 billion during the first nine months of the current financial year. The company also recorded finance income net of costs of ¥78.1 billion due to the recording of a ¥77.8 billion foreign-exchange gain on foreign-currency denominated assets and other items. As a result, profit before income taxes rose by 42,2 per cent Y-o-Y to ¥349.2 billion yen.

Fast Retailing is advancing its LifeWear concept in everyday clothing. The entire Fast Retailing Group will accelerate its transition to a new business model based on the LifeWear concept. It will focus on the six principles of creating new value through products and services; respecting human rights in its supply chain; respecting the environment; strengthening communities; supporting employee fulfillment and implementing good corporate governance.

China’s Fosun International plans to expand its portfolio by adding the Lanvin and St John Knits fashion brands, indicating a resilience of the luxury industry to current inflation and recessionary pressures. As per a SCMP report, Fosum will first list Lanvin on the New York Stock Exchange via a blank-check company in October or November. The brand will be acquired later next year, says Joann Cheng, Chairman and CEO, Lanvin Group. 

Lanvin owns the eponymous French fashion brand as well as Italian shoemaker Sergio Rossi, Austrian lingerie brand Wolford, US womenswear St John Knits and Italian menswear brand Caruso.  The company plans to boost US and China sales besides expanding its product range, diversifying beyond European brands and targeting younger consumers. The brand was acquired by Chinese conglomerate Fosun in 2018. 

The acquisition could follow the template established by Lanvin’s acquisition of Sergio Rossi last year, which allowed it to expand its accessories range, says David Chain, COO. The company aims to tap the beauty and skin care sectors. 

In 2021, Lanvin’s  revenue grew 39 per cent, including sales from Sergio Rossi after the brand was acquired in the second half. The brand is poised to achieve profitability before taxes, depreciation and other items by 2024 as planned. It also filed its registration statement to list with the Securities and Exchange Commission.

Global cotton trade is either likely to remain stagnant or will rise marginally in the next global season despite production increasing by 3.3 per cent, says US Department of Agriculture (USDA).  The association attributes this to the decline in consumption by China, Bangladesh, and Vietnam due to negative macroeconomic forces dampening consumer demand for goods. The World Bank and the Organization for Economic Co-operation and Development recently downgraded global economic outlook while the International Monetary Fund also projected a decline, as per USDA’s latest ‘World Markets and Trade’ outlook.  

The decline in projected consumption is attributed to factors including the recent rise in cotton prices, high container rates and limited supply, besides rising inflation and hike in interest rates globally, including the Federal Reserve’s recent actions, the association added.  

Next season’s global output is likely to reach 153.7 million bales (of 170 kg each) against 148.80 million, estimated USDA. India and China will produce 35.2 million bales each, it added. India’s cotton crop this season will increase by 12 per cent to 31.37 million bales, in line with the trade’s revised estimates, while China’s crop is projected at 34.5 million bales. 

The USDA has lowered its global crop estimates for next season from 155.31 million bales a month ago. Subsequently, it lowered consumption for next season from its outlook a month ago. However, it will be marginally higher than the current season.

Consumption or next season is estimated at 153.49 million bales against 153.42 million bales this season. Global imports are estimated at 59.38 million bales against 55.48 million bales. However, they are lower than the June outlook of 60.81 million bales.

Burberry aims to add 65 newly designed stores in FY23 to the 47 it rolled out last year. The brand continues to target high-single digit revenue growth and 20 per cent margins in the medium term. Despite significant disruption from lockdowns in Mainland China, its comparable store sales grew 1 per cent in Q1 FY23. The brand witnessed strongest growth in the EMEIA regions. Its focus categories, leather goods and outerwear, continued to perform well outside Mainland China. During the quarter, the brand continued to invest in brand and product, generating a high level of engagement on social media as well as driving traffic to its website and adding almost half a million new profiles to our global customer database.

In April, Burberry expanded its Lola handbag range and supported it with a series of pop-ups and pop-ins as well as a campaign, starring Bella Hadid, Lourdes Leon, Jourdan Dunn and Ella Richards. Alongside this, it also introduced a virtual collection on online gaming platform Roblox.  In May, the brand launched its seasonal TB Summer Monogram collection with a new campaign starring Gisele Bündchen. It also launched a collection at Neiman Marcus, wrapping the exterior of its store in Atlanta in the TB Monogram and opening a pop-up inside.

Burberry’s new product launches and seasonal collections performed strongly during the quarter. Its Leather goods comparable sales by grew 21 per cent outside of Mainland China, led by the Lola handbag range. Outerwear comparable sales increased 19 per cent outside of Mainland China, driven by rainwear and jackets.

In June, Burberry again collaborated with Mythical Games to launch a new NFT collection in their flagship title, Blankos Block Party. Mostly recently, Burberry roped in the South Korean Premier League footballer Son Heung-min as its new brand ambassador. 

Cotton Australia has announced the list of finalists for 2022 awards. As per a Textile Today report, the organizer received entrees from New South Wales, Queensland and the Northern Territory for the award. Adam Kay, CEO, Cotton Australia says, presenting a challenge to judges, the response to the awards has been outstanding this year,

This year, finalists for the ‘Bayer Grower of the Year’ award include Corish Farms ‘Yattlewondi’ – Glen Harney, Manager, Talwood QLD; Sundown Pastoral Co, ‘Keytah’ Nick Gillingham, Manager, Moree NSW; and Graincott Farming Co ‘Kensington Park,’ Dan Hayllor, Dalby QLD.

The finalists  for the AgriRisk High Achiever Award  include ‘Tipperary Station,’ Bruce Connolly, Daly River NT’; Porter Farming ‘Attleigh,’ Grant Porter, Brookstead QLD; and Dalara Pastoral Operations, ‘Myall Park,’ Rob Davies, Blackville NSW.

The finalists in ‘ADAMA Chris Lehmann Trust Young Achiever of The Year’ include Lucas Wuersching, St George QLD; Bradley Donald, Moree NSW; and Jessica Strauch, Goondiwindi QLD.

The finalists in Cotton Seed Distributors Researcher of the Year are Cotton Landcare Tech Innovations project team – Stacey Vogel, Narrabri NSW; Dr Mick Rose, Wollongbar NSW; and Dr Oliver Knox, Armidale NSW. The judges will review all nominations before finalizing the winners who will be announced at this year’s Cotton Conference on the Gold Coast in August.

Formerly family-owned weaving mill Tissages d'Autan is collaborating with business management consultant VirgoCoop is promoting local and organic textile production in denim in France. The collaboration will focus on renewal of the organic textile hemp production and other fair-trade sectors in the Occitania region and beyond, says Mathieu Ebbesen, Co-Founder and Director,  Tissages d' Autan mill and President, VirgoCoop,

Ebbesen adds, the collaboration will also focus on producing good quality hemp. Currently, the mill produces new designs of exclusive fabrics using blends of wool and hemp. Even during 2018, the mill produced significant quantities of pure hemp yarn with its own French cultivar ‘Futura 75. However, it had to import hemp yarn to produce denims, Ebbesen adds.\

Now, VirgoCoop plans to breed a French monecious hemp variety that will be more uniform at harvest and which, in turn, will generate more homogenous fibers required by modern spinning lines. The company also plans to upgrade its current spinning machines to better handle long fiber, Ebbessen adds

The Textile Advisory Group (TAG) plans to develop a Yarn Index System to control the high volatility in Indian cotton yarn prices that have disrupted the entire textile value chain in recent months. Comprising senior officials from the Union ministries of textiles, agriculture and farmers’ welfare, commerce, as well as senior officials from the Cotton Corporation of India, R&D experts and stakeholders, TAG held its first meeting in May.

The Yarn Index System will improve predictability and reduce fluctuations in prices, opined TAG at the meeting.  It was also emphasized on the availability of data for improving policy formulation process. The TAG also advocated penal action to be taken on units not onboarding the textile commissioner’s portal. It also urged for faster TAG approval of new Bt cotton seed varieties to improve cotton yield. The meeting also suggested for a policy to discourage poor quality cotton and to provide premium for cleaner cotton.

The meeting zeroed in on the Cotton Association of India (CAI) to formulate a policy to encourage ginners to adopt better ginning practices. Further, it urged for steps to be taken for state-of-the-art testing to ensure quality and traceability of cotton products.

The meeting also discussed the long-pending demand from downstream industry to ban or discourage future trading in cotton. It also proposed, TAG will urge for reduction in speculative activity in MCX through industry and farmer representation in the product group and transparent specific delivery contracts.

Fast fashion brands across the US and the UK markets have increased price points across, reveals latest data from Stylumia. Based on latest analysis by KPMG, the report compares retail list price of select brands and retailers in the standard and fast-fashion segments. The performance of these brands and retailers is compared from March to May 2022 with the same period in 2021. 

The KPMG outlook presents three scenarios of global GDP growth rates. It indicates, the growth rates drop from 2021 levels in 2022 and 2023, returns to pre Covid rates. The inflation trend endings well above pre Covid times even in 2023 across all three scenarios.

Low impact of inflation on US consumers 

The report shows, in the US, demand for garments in the price range $20-$40 declined 57 per cent during the period whereas demand for fashion in the range $40-60 increased 60 per cent and demand for fashion in the range $60-80 grew 11 per cent. This indicates the low impact on consumers of rising inflation and a growing willingness to buy higher-priced apparels. 

In the UK, the 466 per cent growth in demand for tops priced above £10 and 243 per cent growth in demand for tops in the £10-£20 indicates a resistance to rising inflationary pressures. However, for women’s dresses category in the US, demand is not as resistant to increasing prices, the report shows. 

In the US, demand for women’s dresses priced below $40 declined 29 per cent while demand for dresses in the range of $40-$60 declined 12.5 per cent. This indicates, consumer behavior differs across categories and geographies.

UK markets reflects overall decline in demand 

In the UK market, demand for garments priced in the range of £0-£20 declined 76 per cent while those priced in the range of £20-£40 declined 4 per cent. The market also witnessed a 65 per cent decline in demand for garments priced in the range from £40-£60, indicating an overall decline in demand for garments in the country. 

Ensure right product prices

To boost sales, besides understanding their own data, brands need to understand holistic consumer demand across markets and categories, the report says. They need to ensure right pricing of products besides focusing on customization to capture a significant share in the market and generate revenues to make profits,.  

Gains for brands with flexible prices 

With demand-supply gap widening, brands’ inventories in the fixed priced apparel ranges might pileup, resulting in more markdowns. Demand across brands might shift to those altering their product prices as per demand. These brands might come out of this period with less damage in gross margin and market share than the others, the report concludes. 

From 2023, Berlin Fashion Week and Premium will be held simultaneously. From July 7 to 9, 2022, Premium opened its doors to the fashion world with a new format of fashion, business, content and entertainment. As the results of their initiative were perceived successfully, from 2023, Berlin Fashion Week and Premium Modemesse will be held simultaneously. 

This means in future the two events will bundle their specialist and consumer-focused formats in January and July respectively and will thus be able to make better use of synergies. Berlin's position as a meeting place for the fashion industry will thus be further strengthened.

The 2022 edition of Berlin Fashion Week will be held from September 5 for six-days. Premium is a unique trade platform for exclusive menswear, womenswear, contemporary fashion, luxury sportswear, designer denim, accessories and promising newcomers presenting designer collections. For the fashion market, Premium is the most important business platform in Europe for women and men. Long-term partnerships are formed here as well as new trends.

The fashion and textile industry is currently undergoing a period of fundamental transition. Technological developments and the strategic implementation of sustainability are showing how a collaborative approach to innovation makes this shift beneficial to all stakeholders. Sustainability, innovation and technology go hand in hand.

Indian garment exports are not likely to get much boost from the new additional arrangements for international trade in Indian rupees. One reason is that Europe and the US are the major markets for Indian apparel exports and buyers in these markets prefer to pay in dollars. Even, European buyers want to pay in dollars instead of their own currency. However, imports and exports of upstream textile products like cotton and yarn may benefit from the new arrangements put in place by the Reserve Bank of India (RBI) which has asked banks to make arrangement for trade transactions in rupees. Exports and imports of cotton and yarn may get some boost as there are many non-American and non-European countries where importers and exporters may consider transacting in rupees.

The Federation of Indian Exporters Organisation has said that the RBI’s move will pave the way for trading and settlement of export and import transactions in Indian rupees. The RBI has taken this step at a time when many countries in Africa and South America are facing huge forex shortages. So this move is expected to help exporters and importers.

The Southern India Mills Association has welcomed the RBI announcement as a relief to Indian exporters and importers, who have been facing challenges owing to the tightening of monetary policies all over the world.