Cambodia's garment, footwear and travel goods exports increased by 15.2 per cent in 2021, indicates a report by the General Department of Customs and Excise. As per The Star, the country exported products worth $11.38 billion last year, against $9.88 billion exported in previous year. Garment, footwear and travel goods industry comprises roughly 1,100 factories and branches besides employing approximately 750,000 workers, according to the Labor Ministry.

Buoyed by the expected rise of global demand and foreign investors' confidence, Cambodia’s economy is projected to grow at a higher rate of around 5.6 per cent in 2022. The economy is projected to have grown by 3 per cent in 2021 after a contraction in 2020. Cambodia has so far administered at least one dose of COVID-19 vaccines to 14.37 million people, or 89.8 per cent of its 16 million population, according to its Health Ministry. Nearly 13.8 million people, or 86.2 per cent of the population, have been fully vaccinated with two required shots, and 5.97 million, or 37.3 percent, have taken a third dose or booster shot, said the ministry.

Adidas has launched the first product made in collaboration with Finnish textile fiber manufacturer Spinnova. As per a Spin Off report, the Adidas Terrex hoodie comprises 25 per cent wood-based Spinnova fibers and 75 per cent organic cotton. Spinnova fibers used in the hoodie are mechanically ground and processed into yarn without the use of harmful chemicals. It also does not any additional dyes. The product will be available in limited quantity on Adidas.com and at other select retailers from July this year.

About a year ago, Spinnova announced plans to build its first commercial factory in Finland. The factory is expected to meet the growing demand for sustainable materials from global textile brands. It will begin production at the end of 2022, along with Spinnova’s strategic partner, cellulose producer Suzano.

Pandemic-related restrictions restricted retail sales in India to just 91 per cent of pre-pandemic levels of January 2019 and 2020, indicates a survey by the Retailers Association of India (RAI). Sales in the East declined 13 per cent year-on-year in January 2022 compared to January 2019. This was followed by the Western region where sales declined 11 per cent and North where sales dropped 8 per cent. Least impact was in the Southern zone which registered a mere 2 per cent decline in sales as compared to January 2019, says RAI.

Beauty, wellness and personal care categories witnessed the biggest 24 per cent drop in sales compared to January 2019. These were followed by furniture and furnishing where sales dropped 12 per cent; apparel and clothing registered 7 per cent decline in sales. On the other hand, sales in the jewelry segment grew 11 per cent in January, as compared to the same month in 2019 and quick-service restaurants also witnessed a growth of 9 per cent. Kumar Rajagopalan, CEO, RAI, says, sales growth can be attributed to opening of retail businesses across the country till late hours in the evening.

However, Delhi and Haryana are still not allowing stores to be open till late, which is creating a big impact on businesses, Rajagopalan adds.

Supply chain bottlenecks and COVID disruptions failed to dent apparel demand from US brands and retailers in 2021 as the country’s garment imports rose 27.42 per cent during the year. This came as a huge relief for exporters whose shipments had declined 16.37 per cent in 2020 following store lockdowns and factory closures, reveals the Commerce Department’s Office of Textiles & Apparel (OTEXA) stats.

China’s imports share rises

In December 2021, US’ apparel imports rose by 33.7 per cent to 2.51 billion square meter equivalent (SME) compared to December 2020. As per Sourcing Journal, apparel imports from China increased 31.45 per cent to 11.13 billion, (SME) increasing the nation’s imports share to 37.8 per cent from 36.6 per cent in 2020. The second largest exporter was Vietnam whose shipments rose 15.52 per cent year over year to 4.38 million SME in 2021. In December 2021, Vietnam’s shipments increased by 7.8 per cent to 340.73 million SME.

US imports from Bangladesh surged 37.85 per cent to 2.8 million SME during the year and by 76.7 per cent to 273.98 million (SME) in December 2021. Imports from the country were impacted by labor strife and production inefficiencies. Excessive inventory and waste in textile and apparel factories also hampered exports from the country, shows a study by the Bangladesh University of Textiles.

Exports from Asian countries dominate

Asian countries like Pakistan and India emerged the largest apparel suppliers to the US in 2021. India’s exports increased 41.69 per cent to 1.28 billion SME while Pakistan’s shipments surged by 41.89 per cent to 895 million SME during the year. In December 2021, India’s exports rose 62.7 per cent to 115.14 million SME while Pakistan’s surged 31.1 per cent to 86.41 million SME.

Exports from Indonesia and Cambodia witnessed a modest increase of 20.14 percent to 1.11 billion SME and 10.34 per cent to 1.24 billion SME, respectively. Indonesia’s imports in December increased 52.7 per cent to 91.25 million SME while Cambodia’s declined 5.9 per cent to 87.52 million SME.

Other countries that emerged amongst top 10 apparel exporters to the US included Western Hemisphere producers Honduras, Mexico and El Salvador. US imports from Honduras increased 28.13 per cent to 872 million SME during the year. Similarly, shipments from Mexico increased 21.52 per cent to 826 million SME and from El Salvador it rose 33.23 per cent to 656 million SME.

More companies take to nearshoring

As per a survey of 38 apparel companies by McKinsey & Co, 71 per cent revealed plans to increase nearshoring while 13 per cent plan to increase over 10 per cent. Around 24 per cent companies said they plan to focus on reshoring as a part of their sourcing strategy.

Central America emerged the most favored destination for these companies. Around 80 per cent of North American apparel firms said they plan to increase sourcing from the region in future.

Even as legislators across the world call for supply chain transparency, reports of global brand suppliers mistreating workers continue to make headlines. There are numerous reports of suppliers locking workers in factories, manager sexually harassing female staff among others.

To rectify these issues, stakeholders need to adopt a unilateral thinking approach, says a report by Forbes. They need to use open-source data that encourages information sharing amongst organizations to ensure transparency and traceability across supply chain.

Unhindered flow of information amongst brands, suppliers

As per McKinsey & Company and Open Data Institute, the global market potential for open data is around $5 trillion. The market mandates, all actors including brands, suppliers, NGOs and industry bodies to share information and knowledge freely. It urges them to disclose their previously private lists of supplier factories and third-party production facilities. This would help industry players understand compliance risks and cure social and environmental malpractices.

The quality of data insights across the apparel value chain has been improved by new technological and software developments in the real time tracking of production. This enable brands to rectify issues in supplier facilities. It also increases accountability amongst brands, thus helping them build customer’s trust, improve their intangible assets and sales performance.

Eradicating toxic substances from supply chains

Powered by Azavea, the Open Apparel Registry (OAR) translates supply chain data into democratic, usable and safe platforms. The database holds information on over 57,000 facilities, spanning more than 120 countries. It collates these global factory lists into a single map and assigns each site with a unique 15-character OAR ID using a sophisticated algorithm. As per Katie Shaw, Chief Program Officer, the tool benefits organizations of all sizes. Smaller fashion brands such Ted Baker can gain insights into their preferred list of suppliers and the potential risks of sourcing from new geographic regions. However, they need to consider the governance structures and the management of open-source data before using it.

Brands can use OAR’s Application Programming Interface (API) to eradicate toxic substances from supply chains. The tool is also been used by the Business and Human Rights Resource Centre to rectify cases of workers’ rights infringements. It is currently been adopted by over 79 brands to eradicate social injustices. Another solution for open-source data management has been introduced by the US-based Sourcemap. The solution offers brands insights into the end-to end of supply chains to meet the required compliance standards. It is being used by brands and companies like VF Corporation, Ferrero, Mars and Beauty Counter to trace and disclose supplier information.

Awareness on information sharing

However, open-source data is currently hindered by the reluctance of brands to share source information. Smaller and medium-sized brands hesitate to disclose the information regarding the facilities used in their supply chain due to their fear to losing competitiveness. The time lag in the mindset shift towards a culture of access is also slowing the uptake of using open-source data and mapping tools. Hence, brands need to create awareness about the benefits of information sharing through organizations like OAR and Sourcemap is imperative to build the business case for information sharing. They also need to encourage policy makers to transform voluntary fashion initiatives into mandatory compliance.

Textile recycling company, Brightfiber Textiles plans to launch a new facility in Amsterdam next year. As per the Spin Off report, the factory will produce circular, sustainable and full-color fiber and yarn collections. The collections will be produced using the €1 million grant received by the company from the Dutch Ministry of I&W (Department of Circular Economy) for the purchase of a 2.5 million kg fiberizing line.

The production process will involve fiberizing the local post consumer material by color, mixed with colorful industrial waste streams and sustainable materials. The factory aims to launch this process on an industrial scale in partnership with Dutch company Wieland, says Ellen Mensink, Co-Founder, Brightfiber.

The factory has been part-financed by the Circular Economy department of the Ministry of Infrastructure and Water Management.

According to data provided by The Netherlands Ministry of Foreign Affairs, currently less than 1 per cent of all brand collections are made of recycled materials with 25 per cent of them being made from PET bottles, rather than old clothes. Brightfiber's factory aims to create a fully circular process by recycling actual textiles. It also aims to save thousands of liters of water per item, as well as eliminate the need for polluting chemicals and dyes.

The latest performance product of 3M, ThinsulateXerogel Insulation, has won the ISPO Textrends 2023/24 Top Ten Award.

As per an Innovation in Textiles report, 3M ThinsulateXerogel Insulation is a xerogel-based insulation designed primarily for boots and gloves. The insulation also highlights 3M’s ongoing commitment to sustainable solutions, as it’s comprised of 60 per cent recycled fibers.

ThinsulateXerogel Insulation is 20 times more breathable and almost twice as warm as legacy 3MThinsulate Insulation products designed for footwear. Presented by ISPO, The Textrends 2023/24 Top Ten Award was presented by an international jury of textile and sporting experts who assessed a wide range of new textile-based products before deeming 3M ThinsulateXerogel Insulation as a top ten innovation from everything they reviewed.

The award recognizes 3MTM ThinsulateXerogel Insulation as a hot trend expected for the Fall and Winter lines released throughout 2023 and 2024.

The development of 3M ThinsulateXerogel Insulation falls into 3M’s wider sustainability initiatives. Today, 3M’s global headquarters is powered by 100 per cent renewable electricity, with an aim of achieving 50% renewable electricity in all company locations by 2025. In 2021, 3M announced it is pledging $1 billion over 20 years to accelerate environmental goals, including reducing water usage, minimizing dependence on virgin fossil-based plastics, and achieving carbon neutrality across its operations.

To date, 3M ThinsulateXerogel Insulation has met the strict sustainability standards for textiles set forth by bluesign, OEKO-TEX, and The Global Recycled Standard.

With a 30 per cent drop in production due to rising cotton and raw material prices Gujarat denim mills are being forced to operate at 70 per cent capacity utilization currently. Production costs have surged 30 per cent due to rising prices of cotton and other raw materials. From 36,000 per candy of cotton in September 2020, prices surged have touched Rs 78,000 per candy in February 2022.

Price rise impacts MSMs’ margins

The price rise specifically affected denim MSMEs largely supplying to the domestic market, says Sanjay Jain, Chairman, Indian Chamber of Commerce, National Textile Committee. And mills that have forayed into denim business recently are the worst affected, they have been saddled with mounting debts, Jain explains. The surge in raw material costs has also raised denim fabric prices by an estimated 30 per cent over the past six months; price of denim apparels have increased 20 per cent, say manufacturers.

During the pandemic, versatility and use in casual wear enabled denim fabric to sustain demand. However, the recent Omicron wave led to a 20 per cent decline in order volumes for summer collection, says Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI).

Festive demand, export orders boost Q3 profits

Increased sales and revenues helped domestic denim manufacturers such as Arvind, Nandan Denim, Jindal Worldwide and Vishal Fabrics post sizable profits in Q3 FY 2021-22. Nandan Denim posted a 584 per cent rise in Q3 FY2021-22 profits while Arvind’s profits grew 287 per cen. Jindal Worldwide also posted a 22 per cent surge in profits during the period.

Profits of these manufacturers were triggered by a rise in exports orders that helped sustain production and prevented revenue streams from drying up. Industry players also attribute profit rise to pent-up festive demand in the domestic market and increased export volumes. Gaurav Davda, Head-Corporate Finance & Strategic initiatives, Jindal Worldwide adds, increased export volumes helped manufacturers command better realization on exports and reduce input costs.

Delayed payments hit manufacturers’ competitiveness

However, the surge affected manufacturers’ competitiveness in the domestic market, adds Thadani. To offset rising costs, manufacturers are delaying supplier payments and cutting down production. For instance, Sangeet Nahata, an Ahmedabad-based denim fabric manufacturer is utilizing only 65 per cent of 6 million mt. per annum installed capacity.

Launched by the African Development Bank, the Fashionomics Africa initiative aims to highlight the skills demonstrated by African fashion designers through the infusion of culture and heritage in their designs says Amel Hamza, Acting Director for Gender, Women and Civil Society. The initiative has launched the second online sustainable fashion contest for African designers.

Launched in collaboration with the United Nations Environment Program, Parsons School of Design, BPCM and the Ellen McArthur Foundation, the contest mentors new branding packages and other support for winning African designers. To participate in this contest, African fashion brands need to pursue environment-friendly measures and adopt sustainability and circular economy principles in their operations. Winners of the ‘best sustainable design’ contest will be given a cash prize of $3,000 along with other prizes. Two other finalists will win $1,500 cash prize each in addition to other incentives.

Promoting circularity at fundamental levels

Aimed at encouraging a more sustainable shift in consumer practices, the competition will celebrate African fashion brands changing the way fashion is produced, bought, consumed and recycled. It will promote circularity at the most fundamental level, adds Hamza.

Targeted at young African textile, apparel and accessories entrepreneurs above 18 years, the competition will applaud their sustainable designs produced within the last five years. It will focus on their products and sustainable business models and highlight their environment-friendly and innovative initiatives. It will also emphasize on the materials used by these products, their design and production process and shipping methods.

Access to media insiders and industry experts

The competition will be judged by a five-person panel representing the African Development Bank. The panel will announce the three finalists by March 2022. The entries of these finalists will be posted on the Fashionomics Africa digital marketplace and mobile application for public vote.

Besides the cash prize, the winning fashion brand will also be given a certificate and an opportunity to participate in online events and share insights on the key sustainability challenges faced by the industry, The brand will also gain an access to media insiders and industry experts, and will be able to mentor and network with competition collaborators.

Encouraging economic development in member states

An African Development Bank initiative, Fashionomics Africa focuses on increasing Africa’s participation in the global textile and fashion industry value chains. Its initiator, the African Development Bank Group(AfDB) is one of Africa’s premium development finance institution. It includes three entities, namely: African Development Bank (AfDB), African Development Fund (ADF), Nigeria Trust Fund (NTF). Having offices in 37 African countries, the AfDB also has an international office in Japan. It encourages the economic development and social progress in 54 regional member states

India’s largest company Reliance Industries (RIL), has launched a new fabric technology that enables activation of the biometric biodegradation process.

Known as R|Elan™ EcoGold with CiCLO®, the technology offers a biological solution to environment related issues. It reduces the accumulation of textile waste in landfills and other related conditions.

Offering numerous everlasting benefits to customers, the R|Elan™ range of fabrics are infused with latest technologies. They offer consumers next-generation fabrics n sync with the latest fashion trends. The fabrics help reduce the impact of unrecycled textiles on the environment by enabling microbes break down these textiles. These textiles are converted into basic elements like carbon dioxide, water, minerals, etc.

The technology is certified by Oeko-Tex Eco Passport, notes Alastair Drew, Intrinsic Advanced Materials, R|Elan™ EcoGold will give global apparel access to eco-friendly fibers that can be used to make garments that will meet the needs of conscious consumers, he adds.