India’s apparel exports grew 30.2 per cent year-on-year to $4439.2 million in the first three months of current fiscal 2022-23, as per estimates of Ministry of Commerce and Industry. India’s RMG exports grew 3.80 per cent in the April-June 2022 period to reach $1449.3 million in June 2022, against export of $1003.3 million in June 2021, showing a growth of 44.67 per cent.

An analysis of Confederation of Indian Textile Industry (CITI) based on the ministry’s data, shows, India’s exports of cotton yarn, fabrics, made-ups and handloom products etc, declined 22.5 per cent to $3124 million during the first three months of current fiscal, against the export of $3364.4 million in the same period of last fiscal. In June 2022, the exports declined to $925.2 million against the export of $1194.5 million n June 2021.

India’s overall merchandise exports increased by 16.78 per cent to $37.94 billion in June 2022 against $32.49 billion achieved in June 2021. The country’s merchandise export during April-June 2022 increased by 22,22 per cent to $116.77 billion against $95.54 billion worth of exports during April-June 2021.

India’s total merchandise import s increased by 51.02 per cent to 63.58 billion in June 2022 against $42.1 billion imports in June 2021. India’s merchandise import in April-June 2022-23 increased by 47.31 per cent to $187.02 billion against $126.96 billion in April-June 2021-22.

Vietnam’s textile-garment export turnover reached its highest ever levels as it increased 23 per cent Y-o-Y to about $22 billion in the first six months of 2022 (H1’2022), says Vietnam Textile and Apparel Association (VITAS). The country’s textile and garment exports to the US increased 26 per cent Y-o-Y to $7.58 billion during the period. The future of Vietnam’s textile and garment industry is expected to be determined by the economic developments in the US markets, says a report by Viet Dragon Securities JSC (VDSC) based on data from Vietnam’s General Department of Customs;

However, in the second half of 2022, demand will decrease due to high consumption in 2021, predicts the VDSC report. Vinatex states, US market’s textile and garment import demand is likely to decline 7-10 per cent in Q2 of 2022. The US ban on cotton originating from the Xinjiang region may cause further disruptions in supply chain and contribute to higher cotton prices. The ban may affect the source of raw materials of Vietnamese enterprises and create barriers when exporting to the US market.

However, large textile and garment enterprises in Vietnam can benefit by replacing orders of Chinese companies in the US. The recent shutdown of China’s economy also led to a shift in orders from China to Vietnam. China’s market share in textile imports to the US fell to a record low of 26.3 per cent in volume and 16.8 per cent in value in April this year.

A recent report by SSI Research estimates, revenues of textile and garment manufacturing companies in Vietnam will decelerate in the last six months of 2022 and in 2023. Additionally, the costs of yarn, fabrics, logistics and labor are expected to increase due to rising oil prices and growing competition in the labor market, the report concludes.

The 10th edition of UK’s sustainable materials trade show Future Fabrics Expo was organized at its new venue Magazine London in Greenwich. As per a Forbes report, the event showcased 10,000 textiles from over 220 suppliers across 34,000 sq. ft. from June 28 to 29, 2022. Launched in 2011, Future Fabrics Expo grew big enough to move into its own independent space. In a few years, it outgrew that space too, causing it to move to its latest venue.

Amanda Johnston, Curator, The Sustainable Angle says, interest in sustainable fashion continued to gain momentum. UK trade shows have been impacted by many challenges including the pandemic. Brexit has made it more difficult for European exhibitors to come to the show and for visitors from Europe to source from the UK because of export fees.

Annet Sunderman, Fabric Consultant from Belgium says, post Brexit, it has become difficult for European to visit this fair. Ronja Nielsen, Founder, Bag Affair, an accessories label adds, the fair attracts many exhibitors and visitors from different sectors. Another exhibitor, offering partially recycled leather, said compared to other shows, Future Fabrics Expo aims to learn and make a difference, rather than simply sourcing low impact materials because they have to.

Exporters say, the impact of changes announced by the Goods and Services Tax (GST) Council last week, including the one to expedite refunds to those categorized as risky exporters, will mainly depend on their implementation. The GST council has recommended amendment in rule 96 of the Central GST Rules for transmission of Integrated GST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing.

Earlier, refund claims were suspended or withheld for exporters identified as risky and authorities would conduct lengthy verifications before releasing the amount. The rule change promises to expedite such IGST refund claims. The Council will now consider supplies from duty-free shops at international terminal to outgoing international passengers as exports by such shops. Consequently, it will make refund benefits available to such suppliers.

The country’s key markets, such as the US and the EU, are facing risks of recession. Against this backdrop, the move to expedite refunds for even risky exporters will help improve their cash flow. However, Raja Shanmugham, President, Tirrupur Exporters Association, opines, the move to treat supplies from duty-free shops at international terminal to outgoing international passengers as exports, is unlikely to have substantial beneficial impact on exports.

Business publication Quartz has released a report publishing the results of its investigations into the environmental claims made by H&M. The report exposed the discrepancies in the ratings given by the Sustainable Apparel Coalition using its Higg Sustainability Index. The ratings enabled customers to compare their purchases in relation to its environmental impact.

However, H&M proved the results on the index to be contrary to actual impact of the garment on environment. These discrepancies are a result of retailer ignoring negative signs in Higgs Index score, says Quartz. Using an example from the H&M website, Quartz displayed how the figures did not match the data provided on the Higgs website.

While most products on H&M website did not include the ratings, those that did were featured in a special page about their environmental record. Quartz stated words such as ‘less’, and ‘reduction’ were hard coded into H&M's website to portray that their environmental scorecards offer a green picture of their clothing.

The Higg Index has faced rampant criticism ever since H&M and other clothing retailers launched the effort. George Harding-Rolls, Campaign Manager, Changing Markets Foundation, and a long-time critic of the Higg Index, said the initiative was designed to mislead people.

Despite capturing the market for value-seeking Gen-Z shoppers by offering them huge varieties of cheap apparels, Chinese apparel giant Shein faces multiple complaints of copyright theft from big brands and boutique designers. As per a Market Watch report, its current value exceeding $100 billion and the support of its big-ticket investors like Sequoia Capital China and General Atlantic enables Shein to offer cut-rate prices to consumers besides helping it form new collaborations with online influencers and offer upto 6,000 new items a day.

Many contemporaries have alleged the company’s designs are influenced by others. Around 50 federal lawsuits have been filed against Shein or its Hong Kong-based parent company, Zoetop Business in the US alleging trademark or copyright infringement, according to public records. Complainants include both small-time designers and big retail giants including a unit of Ralph Lauren and sunglasses maker Oakley Inc, Independent designers too have complained against theft of products stories or designs on social media.

The pre-tax profit of British fashion retailer Mulberry rose by 363 per cent to £21.3 million in the year that ended 2 April 2022 from £4.6 million in the year-ago period. As per a Apparel Resources report, the retailer’s revenue increased 32 per cent to £152.4 million during the period. The strategic decisions by the company enabled it to increase its financial results, says Thierry Andretta, CEO, Mulberry. Reducing its promotional activities, the retailer focused more on its full-price channels during the year.

The brand has fully integrated its brick-and-mortar and digital sales channels. Its digital penetration continues to increase despite 16 per cent fall in online sales, adds Andretta. In future, the brand aims to closing stores and opening in better locations. Founded in 1971, Mulberry is known for luxury leather goods and fashion accessories.

To make the European Union carbon neutral by 2050, European Commission is adopting a Strategy for Sustainable and Circular Textiles.

As per a Lexology report, this strategy focuses on sustainability and circularity issues in the textiles industry. It adopts a holistic approach to make textiles more durable, and tackle the issues of textile waste. The core aims are:

• Making all textile products in the EU market durable, repairable and recyclable. Making them with recycled fibres and ensuring they are free of hazardous substances, and produced with respect to social rights and the environment.

• Making re-use and repair services widely available.

• Make textile producers responsible of their products along the value chain with sufficient capacities for recycling and minimal incineration and landfilling, so that circular clothes become the norm.

The Commission also aims to introduce several mandatory product design requirements to enhance the quality, durability and environmental performance of textiles. It further aims to address the presence of hazardous substances used in textile products under REACH. It will consider revisions in laws to achieve zero pollution ambition besides addressing the issue of microplastic pollution. For this, it will review the manufacturing processes, pre-washing at industrial manufacturing plants, labeling and the promotion of innovative materials.

Encouraging on-demand manufacturing

Under the draft Ecodesign for Sustainable Products Regulation, the Commission proposes to make large companies responsible for publicly reporting the number of products they discard and destroy, including their approach to reusing, recycling, incinerating and land-filling. It also plans to introduce a ban on the destruction of unsold products, including appropriate unsold or returned textiles.

Additionally, the Commission aims to reduce returns of online purchases by encouraging on-demand manufacturing through digital precision technologies. It plans to introduce Digital Product Passports for textiles. These passports would enable provision of more information about a product to consumers and other entities in the supply chain.

Amend unfair laws

The Commission proposes to amend the Consumer Rights Directive to oblige traders to provide consumers with information on the durability and reparability of products. It aims to amend the Unfair Commercial Practices Directive and practices to include excessively broad unverified environmental claims and products that limit their durability.

Introduce EPR scheme

Another proposal is to introduce extended producer responsibility (EPR) scheme for managing textiles waste. This will require member states to establish separate collections for textile waste by January 01, 2025. The Commission proposes to eco-modulate fees in the forthcoming revision of the Waste Framework Directive. Eco-modulation enables textile producers to pay EPR based on the environmental performance of their products. This helps incentivize the design and production of more environmentally-friendly products.

Initiatives by the UK government

From March 2021, the UK government has been encouraging the development of durable textiles products that are easy to reuse, repair and recycle. It aims to introduce an EPR scheme for textiles that will introduce new measures for development of betters for consumers.

The CMA is currently reviewing compliance to environmental laws in the fashion retail sector. The results of these reviews to further encourage people to buy recycled garments that are more durable and sustainable.

Global cotton market is witnessing a deep price fluctuation of late. As Seshadri Ramkumar, Professor, Texas Tech University writes in Textile Value Chain, prices shot up above $1.30/Ibs at the beginning of this season. However, they have been falling since then. Analysts expect prices to decline further due to a large availability of discretionary wealth fuelling demand for products and commodities.

Price fluctuations to increase market volatility

Such steep rise and fall is expected to make the cotton market extremely volatile in case of supply disruptions due to climatic conditions, production hindrances and demand slowing due to inflation. Hence, India needs to stockpile cotton as a reserve as does China.

Stockpiling to stabilize market prices

India’s stockpiling initiative can be led by the state-owned Cotton Corporation of India [CCI}, opines Gnanesekhar Thiagarajan, Director, Commtrendz Research, Mumbai. The government can alter CCI’s mandate to control price fluctuations. This will boost confidence across the textile value chain with farmers and end-user being well-protected.

The initiative will assure farmers about predictable buyer, and mills will be assured minimum cotton stock. For this, however, the farm infrastructure including warehousing facility and quality evaluation needs to be improved. India also needs to discuss the requirement of reserves and efficient disbursement of cotton with stakeholders, Thiagarajan opines.

Use scientific methods of manage data

Thiagarajan urges all stakeholders to come together for this initiative and manage cotton production and demand related data. They need to implement a robust and scientific estimation methods, The initiative can be led by the Central government on a national level and by United States’ Department of Agriculture at the global level. He advises the data to be relayed to end-users in a timely manner at fixed intervals during the cotton season. This will ease market pressure, making the market more confident.

Pakistan’s leading denim manufacturer AGI Denim has become the first B Corp certified company in the country on account of its focus on reinventing business with a purpose. As per The Spin Off report, AGI Denim has been certified by B Lab, the not-for-profit organization behind B Corp movement for meeting rigorous social and environmental standards. The certification covers the five impact areas: governance, workers, community, environment and customers.

To achieve this certification, B Corp applicants need to reach benchmark score of over 80 besides validating their socially and environmentally responsible practices related to energy supplies, waste and water use, worker compensation, diversity, and corporate transparency. AGI Denim achieved a score of 91.4 in the B Lab assessment with a clear focus on doing business with purpose.

The B Corp community represents a broad cross-section of industries, including well-known brands such as Aesop, Allbirds, Athleta, Eileen Fisher, and Patagonia. Recent attention on the denim industry makes AGI Denim’s B Corp certification mark a notable step and signals a shift towards greater accountability and transparency in the sector.