The European Chamber of Commerce in Vietnam (EuroCham Vietnam) has signed an Memorandum of Understanding with the Aquafina Vietnam International Fashion Week (VIFW). Reports say, the MoU will give EuroCham and its affiliated national chambers an opportunity to support the development of European companies both regionally and in Vietnam, and assist Vietnamese companies planning to expand into the European market.

The MoU will also identify and promote the benefits of the EVFTA for both groups; it will expand Vietnam’s fashion and culture across the world and create new business opportunities for Vietnamese designers and fashion brands. Alain Cany, Chairman, EuroCham Vietnam, believes, EuroCham would help VIFW connect and bring European businesses to Vietnam for mutual development and a sustainable relationship. Le Thi Quynh Trang, Chairperson, VIFW and President, Council of ASEAN Fashion Designers says, this ensures a new development journey for local and international businesses.

Nguyen Thi Tuyet Mai, Deputy General Secretary, Vietnam Textile and Apparel Association (VITAS) opines, the MoU would promote sustainable development of Vietnam’s fashion and textile industries. Organized by Harper’s Bazaar Vietnam and VIFW, the seminar was a sideline event of the Aquafina Vietnam International Fashion Week Spring-Summer 2022 held until May 29.

Pakistan’s apparel textile sector has warned the federal government against discontinuing the special power tariff to five export-oriented sectors saying, this would prove disastrous for the economy. It also urged the government to inform the IMF that the concessional facilities are not a ‘subsidy. It should be communicated to the IMF that the special energy tariffs and other facility to export industry have been wrongly interpreted as ‘subsidy’, says Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum

The government needs to understand that the special energy tariffs provided to the five export sectors are on par with those given to industries in the regional countries to ensure the country’s products could compete globally. Similarly, the DLTL (the Duty Drawback on Local Taxes and Levies) is a policy measure to spare export goods from taxes, he adds. The government should continue the concessional tariff for export industries beyond June 30, 2022 in ‘the national interest, Bilwani says. He urges the government to act wisely and do not any decision that would negatively impact exports.

He believes, continuation of concessional power tariff slab will help local industries perform better.

In a meeting with the newly constituted Textile Advisory Group, Piyush Goyal, Minister for Textiles and Commerce & Industry directed concerned authorities to finalize the decision to extend import duty waiver on cotton till December 31.Je also addressed issues relating to augmenting present supplies of cotton and strengthening productivity. He called for importing from destinations where stocks are available.

Suresh Kotak, Chairman, Textile Advisory Group emphasized on the need to ensure seed availability for sowing especially new early maturing varieties and revamp the seed system to enhance productivity of Indian cotton from present stagnation. As per estimates of Committee on Cotton Production and Consumption, current carry over/closing stock is 41.27 lakh bales, which is about 12.66 per cent stock to use ratio and equivalent to stock for 45 days consumption. The cotton-based textile industry is facing a shortage of cotton leading to rise in prices from Rs 44,500 per candy in February 2021 to Rs 90,000 per candy in March 2022.

The steep increase in cotton prices is severely impacting the potential growth of the cotton textile value chain. The Central Board of Indirect Taxes and Customs (CBIC) had notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.

Valued at $3,579.1 million, the global custom T-shirt printing market is estimated to grow to $9,009.3 million by 2032, says a Future Market Insights study. They estimate, the market will contribute over 2 to 3 per cent to the global apparel market. From 2022 to 2032, the custom T-shirt printing market is expected to surge by over 9.7 per cent CAGR. Most of this growth will be driven by increasing demand for customized modern T-shirts and their use as a modern branding strategy. Rising disposable income coupled with a growing preference for personalized clothing is encouraging customers to spend on customized clothing.

Boosting brand visibility and luring customers

Demand for customized T-shirts with slogans and logos moving north. The global custom T-shirt printing market is expected to surpass 508,487 units by the end of 2032. Major companies across the world including start-ups use custom T-shirts to boost brand visibility and lure potential customers. These T-shirts also act as an effective branding tool for companies. The high-quality materials used to make these T-shirts helps brands extend their shelf-life and visibility for longer period.

US contributes 78.9% to global sales

One of the most lucrative markets for custom T-shirts is the US contributing 78.9 per cent to global sales in 2021. Demand was driven by leading football clubs and teams who custom-designed their T-shirts and jerseys with personal logos and designs. The market is expected to continue growing with government spending on sports-related activities increasing in coming years.

One of the fastest growing markets, Germany accounted for 26.9 per cent of the European custom T-shirt printing market. The market is expected to continue growing on account of rapid development and investment in printing technologies.

T-shirts with movie slogans, logs rise in popularity

Presence of market leaders such as Spreadshirt among others is also expected to boost growth. Custom T-shirts with movie slogans and logos are gaining immense popularity resulting in increased collaborations between key players and leaders of the entertainment industry.

Offering high print quality, the screen printing segment revenue share increased to over 52.1 per cent in 2021. Cost-effective printing techniques enables mass printing on synthetic fabrics like viscose, polyester, silk, and other similar materials.

Graphic design segment to dominate market

The largest share is being held by the graphic design segment with a market share of over 56.9 per cent in 2021. Growth in this segment is being aided by the growing popularity of custom T-shirts with pre-printed graphics. Increasing demand for graphic T-shirts is expected to boost the global men’s custom T-shirt printing market through 2021. On the other hand, growing gender fluidity and acceptance of different sexualities will help the global unisex custom T-shirt printing market to grow at 12.5 per cent CAGR from 2022 to 2032.

Discounts, easy access will help online segment

Emerging as the fastest growing segment, the online segment will grow at 13.1 per cent CAGR from 2022 to 2032. Growth will be driven by higher internet use, large discounts and ease of access.

Leading players in the custom T-shirt printing market are launching new products and expanding their business. For instance, Printful launched commercial and merchandize use graphic printing techniques in collaboration with Vexels in 2021. Similarly, in January 2019, Printful opened its second fulfillment center in Europe for better customer service and meet faster shipping demands.

China’s cotton yarn exports declined to 10.3kt/yr in April 2022, compared to 15.7kt in April 2021, 7.9kt in Apr 2020 and 26.8kt in Apr 2019. As per a CCF Group report, exports were dominated by cotton yarn of combed 30.4-46.6S and combed 54.8-66S varieties. In April 2022, the exports of uncombed 8.2-25S increased a lot.

The export volume of uncombed 8.2-25S increased by 18 per cent while that of , combed 8.2-25S increased by 27 per cent and uncombed 25-30.4S surged by 48 per cent. Export volumes of combed 35-30.4S declined by 43 per cent while those of combed 54.8-66S declined by 42 per cent.

Vietnam emerged top importer with 25 per cent global share; followed by Bangladesh and Pakistan. Export volumes to Italy, Cambodia and Thailand increased but still remained small.

South Asia’s largest apparel and textile manufacturer, MAS Holdings has signed up for Science-Based Targets initiative (SBTi) to reduce its absolute scope 1 and 2 greenhouse gas (GHG) emissions by 25.2 per cent by 2025 from 2019 levels. The Intergovernmental Panel on Climate Change (IPCC) has launched a new report to emphasise on the need to address the climate crisis issue in the fashion industry on an urgent basis.

As per a McKinsey & Company report, the fashion industry is responsible for 4 per cent of global carbon emissions. .The industry has taken several steps to address this issue including supporting the Science-Based Targets initiative (SBTi) to promote and adopt science-based climate targets. However, to address the concerns of increasingly environment-conscious consumers, brands need to collaborate with manufacturers sharing their vision of a sustainable fashion industry.

PT MAS Arya Indonesia (MAS Arya), with two production facilities located in Central Java, Indonesia, has become the first manufacturing unit of MAS to be powered entirely through renewable electricity. The facilities entered into long-term agreements with PT PLN (Persero), the state-owned electricity supply and distribution entity in Indonesia, to purchase renewable electricity. Having signed up with PLN for a 15-year commitment, MAS Arya is the first firm in Indonesia’s Semarang Region to join the program.

Sri Lanka’s textile and apparel sector may face serious consequences if policy makers fail to introduce new reforms to accelerate its growth, warns the Joint Apparel Association Forum (JAAF). Sri Lanka’s textile and garment exports increased 10.8 per cent in the first quarter of 2021 to $1.5 billion, reveals a Central Bank report. However, export earnings declined 0.6 per cent to $464 million from $ 467 million compared to the same period a year ago.

Data from Export Development Board pegs Sri Lanka apparels and textiles exports’ growth at 22.12 per cent Y-o-Y to $445.79 million in April. The sector is currently under serious threat owing to the gross economic mismanagement. Demand for apparels in the country is low, leading to a 20 per cent fall in export orders, says a Daily FT report. To stabilize growth, Sri Lanka needs to support garment manufacturers, both big and small. It needs to introduce sustainable, decisive solutions for their development urgently.

Yohan Lawrence, Secretary General, JAAF says, Sri Lanka needs to reinstate buyers’ confidence by being resilient to upcoming global economic crisis. The Sri Lankan industry is known for reliability, quality and sophisticated technical capabilities. It complements these qualities with a visionary approach to innovation, sustainability and circularity in fashion, he adds.

Stabilize energy supply and reform political culture

To ensure operational continuity, Sri Lanka’s apparel sector needs to stabilize energy supply by adopting renewable energy technologies, especially solar energy. This will help Sri Lanka ease some of the worst disruptions in production, explains Lawrence.

JAAF has also sought the abolition of the 20th Amendment to the Constitution to drive reformation of Sri Lanka’s political atmosphere. Its faulty political culture is considered to be at the root of its economic woes. To stabilize its economic growth, Sri Lanka needs to prioritize the welfare of its common citizens, Lawrence states. Refuting claims of shortages in raw material supplies and launch of new products, Lawrence says, the factories have an uninterrupted access to raw materials, ensuring smooth operations at the ports.

Ensure uninterrupted fuel supply

The permission to buy fuel directly from the Ceylon Petroleum Corporation (CEYPETCO) and Lanka IOC in dollars since April will help exporters avoid undue disruptions from power cuts and curfews, opines Lawrence. With bulk deliveries of diesel to apparel manufacturers resuming, exporters will be receiving uninterrupted fuel from specific fuel stations. This will help the industry continue day-to-day operations amidst ongoing fuel shortages, adds Lawrence.

Contributing 6 per cent to the country’s GDP, the Sri Lankan apparel sector accounts for 40 per cent of exports. The sector provides direct employment to 350,000 workers and indirect jobs to additional 700,000 workers. It aims to transform Sri Lanka into a global apparel hub and increase annual export earnings to $ 8 billion by 2025.

India’s RMG exports grew by 22.08 per cent Y-o-Y to $2,935.73 million during April-May ‘22-23 from $2,404.67 million in April-May 2021. RMG exports 3.81 per cent to the country’s total merchandise export during the two months.

India’s RMG exports grew by 22,94 per cent to 1,360.95 million in May 2022 against, export of $1107 million in May 2021 RMG contributed 3.65 per cent in total merchandise export of May 2022, the ministry of commerce and industry said in a release.

India’s total merchandise export in May 2022 amounted to $37.29 billion, an increase of 15.46 per cent over $32.30 billion in May 2021. The export in April-May 2022-23 was $77.08 billion with an increase of 22.26 per cent over $63.05 billion in April-May 2021-22.

India’s merchandise import in May 2022 was $60.62 billion, an increase of 56.14 per cent over $38.83 billion in May 2021. The imports in April-May 2022-23 were $120.81 billion with an increase of 42.35 per cent over $84.87 billion in April-May 2021-22. The trade deficit in May 2022 was $23.33 billion, while it was $43.73 billion during April-May 2022-23.

With the former Soviet republics altering ties with Russia, it has become imperative for Central Asian states to find alternative markets for their products to shield their economies from Russia’s impending economic collapse. Only a more economically prosperous Uzbekistan can help protect Central Asia from the threat of Russian and Chinese invasion.

The recent decision to lift global boycott on cotton imports from the country will help Uzbekistan reconfigure its textiles markets. Uzbekistan’s primary trade partner and its largest cotton importer, Russia is on the brink of economic collapse with rising inflation and sanctions shrinking its trade with Uzbekistan. To normalize trade relations with Uzbekistan, Russia needs to repeal the Jackson-Vanik Amendment adopted in 1974, to facilitate Jewish emigration from the Soviet Union by restricting trade.

Ban gone, brand operations begin

Upholding Uzbekitan’s efforts to eradicate child and forced labor, the Cotton Campaign called for lifting of international boycott on Uzbek cotton in March 2022. This led to 331 international brands and retailers resuming operations in the country. Major brands such as Adidas, Tesco, IKEA, Marks & Spencer, H&M, Zara, and Gap have started sourcing Uzbek cotton, leading to a reformation of the Uzbek cotton industry.

Uzbekistan produces around 4.5 per cent of the world’s cotton. It exports 10 percent of global cotton requirement and adds approximately $1.3 billion to the Uzbek economy each year.

Uzbekistan has implemented reforms to end forced labor, says Bennett Freeman, Co-founder, The Cotton Campaign. President Shavkat Mirziyoyev issued a decree in 2012 to ban child labor in cotton harvesting. He abolished the state regulation of cotton production and mandatory sales plan two years ago to end all child labor practices and reform the cotton sector.

ILO says, Uzbekistan did not transform its cotton sector due to external pressure. Its primary motive behind the move was to create jobs and transform Uzbekistan into a producer and a manufacturer of textiles and garments. Higher salaries have led to a dramatic increase in the number of people being employed in the cotton industry. The sector has also benefitted from return of the migrant workers from neighboring countries. The pandemic and war in Ukraine, has accelerated the process.

One of the most important structural changes in the cotton industry has come from creating regional clusters to buy the harvest directly from farmers and process the raw material into textiles Clusters are also modernizing and attracting FDI. Decentralization also created conditions for bargaining between cotton pickers and buyers which resulted in higher wages.

Uzbekistan will continue cooperation with the ILO to create more higher-paying jobs through its second Decent Work Country Program for 2021-2025. The program sets out to improve the legal framework governing labor relations, expand employment opportunities for youth, women, and vulnerable groups, and strengthen social dialogue and the institutional capacities of social partners.

Washington can support Uzbekistan as a preferred cotton supplier, stabilizing the supply chain of American textile apparel companies. A prosperous Uzbekistan plugged into the global economy would further improve the country’s human rights while enhancing regional security and shielding Central Asia from unwelcome Russian and Chinese inroads.

To be truly sustainable, the fashion industry needs to reduce its GHG emissions by 1.1 billion metric tons of CO2 by 2030. However, the industry suffers from gross overproduction with brands producing for 50 micro-seasons in a year and launching thousands of products every week, says a McKinsey & Co report. Consumers often feel an adrenaline rush while buying new clothes. Taking advantage of this, fast fashion brands quickly churn out new collections of low-quality, low durability garments, selling them at low prices and reinvest the profits achieved through this for future collections.

Resale allows full use of products

The most obvious solution to this problem is resale. As per a Woman’s Wear Daily report, resale allows brands to develop businesses without releasing harmful carbon emissions. Moreover, it enables them to also limit the number of new products manufactured and sold at full price. With resale, brands can explore the full potential of products they have designed, made and sold previously. Resale also enables brands to replace lower quality newer Items with products that have been already traded in and authenticated.

Removal of stigma associated with secondhand shopping also encourages consumers to engage in purchase of used products. Additionally, the resurgence of COVID-19 in many countries and growing importance of sustainability makes this a perfect time for brands to build recommerce offerings. A report by Coresight Research estimates, growing faster than traditional retail, fashion resale will grow at twice the rate of overall US fashion market in 2022.

Allows discovery of new brands

Though many retailers believe, resale might affect primary sale their fears have are largely unfounded. Facts show, 65 per cent resale customers on branded resale storefronts are first-timers. Hence, retailers need to incorporate resale into their retail strategies to improve engagement with new and existing consumers.

Resale provides consumers the excitement and freshness they look for while shopping. They don’t necessarily look for goods with completely new materials but materials that are new to them. Resale also enables consumers to discover new brands and products whose existence was previously unknown to them, as reveals a Boston Consulting Group survey.

In future, as shopping for pre-owned items increases, more brands will adopt recommerce model to boost their sustainability credentials and bottom lines. By growing their inventories of pre-owned goods and controlling secondhand sales, brands will be able to please consumers while increasomg profits without overproduction.