Targeted online marketing campaigns have helped Australian Wool Innovation’s retail collaborators in China to record $122 million in extra wool garment sales. As per a Sheep Central report, during Wool Week in October 2021, followed by Double 11 and Double 12 festivals collaborators’ extra wool garment sales increased 40 per cent to $122 million. John Roberts, CEO, AWI says, the latest campaign highlighted premium natural qualities and effortless style of Merino wool –with the aim to make Merino wool the most coveted apparel fibre for consumers during China’s 2021 winter.

The firm’s wholly owned subsidiary — The Woolmark Company – partnered e-commerce giant Tmall to put Merino wool in the forefront of digitally savvy shoppers’ minds, whilst further championing the wool products of premium Chinese and international brands. The Woolmark Company also worked with the No.1 livestreamer in China, Viya, to host a livestream event on September 27, which was especially popular. Brand partners included: MO&Co., Lily, Eifini, GXG, Dazzle, Edition and Banxiaoxue. This has raised AWI’s intentions to buy Merino Wool by 22.4 per cent to 87.1 per cent, says the firm.

The value of Bangladesh apparel exports is likely to reach $50 billion in 2022, said Bangladesh Garment Manufacturers and Exporters Association President, Faruque Hassan at a views exchange meet arranged by the Chattogram Port. The event aimed to discuss different aspects of the recently opened direct shipping route between Chattogram Port and Italy's Porto di Ravenna. It was attended by Rear Admiral M Shahjahan, Chairman, Chittagong Port Authority, Charles Stuart Whitely, EU Ambassador to Bangladesh and Enrico Nunziatya, Italy Ambassador. BGMEA exported $4 billion worth of garments a month in November and December 2021 and hopes to touch the $50 billion mark in 2022, Hassan said. Direct connectivity with Europe would reduce business costs by 40 per cent and cut shipment time to 16 days.

He hoped more European shipping lines would launch such services on their dirct routes with Chittogram port. Shahjahan added, the Chattogram port can handle some 4.5 million 20 foot equivalent units (TEUs) of containers, or goods worth $80 billion a year. The Patenga Container Terminal would be operational within June 2022, and another deep seaport was being built in Cox's Bazar's Matarbari.

Enrico Nunziatya and Charles Stuart Whiteley expressed hope direct shipping connectivity between Bangladesh and Italy would enhance bilateral relations. It would also help the two countries boost trade, they believed.

The Asia Pacific region is likely to emerge as the major beneficiary of the Regional Comprehensive Economic Partnership (RCEP) as importers will increasingly move away from the EU, US and other non-member markets, says a new report by the United Nations Conference on Trade and Development (UNCTAD).

New trade worth $17 billion on the anvil

Titled, ‘A New Centre of Gravity’, the report forecasts, exports worth billions of dollars will get diverted from nations not included in the trade deal. Importers in the RCEP block will capitalize on tariff concessions offered in the agreement, boosting intra-Asia exports by nearly 2 per cent from 2019 levels, or approximately $42 billion. Non-member nations will no longer benefit from lower tariffs as the 15 members will secure trade roughly worth $25 billion. They will also generate new trade worth $17billion amongst member states. RCEP will emerge a as the new centre of world trade, predicts the report. Tariff concessions offered by the agreement will boost trade within the newly formed bloc, it adds.

Deals with broader trade issues

Covering almost a third of the world’s population and 30 per cent of its GDP, the RCEP agreement was finalized on January 1. The deal brings together the 10 Asean nations, alongside China, Australia, New Zealand, Japan and South Korea. It standardizes trade rules across the region. One of the primary goals of the agreement is to support wider business environment by dealing with broader issues such as intellectual property, e-commerce, regulation of competition and government procurement. The deal has been delicately negotiated to help countries protect their export sectors. However, the UNCTAD report says, tariff concessions offered in the agreement may lead to disruptions in world trade pattern in future.

Tariff elimination to boost exports

The RCEP agreement eliminates tariffs on 90 per cent goods over the next 20 years. It also eliminates tariffs on 65 per cent of products traded within the bloc. This tariff elimination will benefit Japan most as it exports to member countries will grow 5.5 per cent or $20 billion from 2019.

Other countries like Australia, China, South Korea, and New Zealand are also likely to benefit from tariff reductions. China’s exports to the RCEP bloc will grow by $11.2 billion, Korea’s exports by $6.7 billion, Australia’s by $4.1bn while New Zealand’s exports will grow by $1.1 billion.

Trade diversion to impact developing nations

The RCEP-led trade diversion will also affect major markets such as the US and the EU besides impacting the developing economies of Bangladesh and Pakistan. As per the report, the EU will lose exports worth $8.3 billion to RCEP countries while US’ exports are expected to be hit by $5.1billion. Hong Kong’s exports will decline by $3.3billlion and Taiwan’s by $3billion.

Countries like Bangladesh, Pakistan and Sri Lanka will suffer bigger losses with Bangladesh reporting a 12 per cent drop in exports to RCEP. Exports by smaller emerging economies including Vietnam, Cambodia, Indonesia and the Philippines are also likely to drop due to tariff concessions, with Vietnam’s exports dropping by $1.5 billion. Yet, the UNCTAD report, upholds joining of RCEP by these countries as it strengthens their economic integration and offers them various other benefits like a boost in foreign direct investment, technology sharing, structural transformations, etc.

Reputed brands Puma, Nike, Zara, C&A and GAP have not complied to all labor laws, reveals Workers Rights Consortium (WRC). A report by the independent organization overseeing labor rights says, over 400,000 workers in Karnataka, India have been paid less than the state’s legal minimum wage since 2020. The total amount of unpaid wages in the state exceeds £41 million. Each worker earns around £83 a month. Scott Nova, Executive Director, WRC calls this the biggest wage theft ever in the fashion industry. Western brands have failed to ensure due payment to workers despite persistent demands from the consortium, he opines.

Supplier’s defense

Suppliers on the other hand defend their stance stating the Ministry of Labor had issued a decree suspending minimum wage increase shortly after its implementation in April 2020. The Karnataka High Court is yet to give its final decision on the issue, they add. However, the HC has already said the Ministry of Labor’s decree as illegal in September last year and suppliers need to pay the minimum wage, including all arrears to workers, argues WRC

Meanwhile brands Puma, Nike, Zara, C&A and GAP say they are committed to pay legal minimum wage to workers. However, it depends on their suppliers, who also need to comply with the court order. Nike for example expects suppliers to comply with local legal requirements and also the brand’s code of conduct. C&A has directed suppliers comply with the court order and is awaiting a written confirmation from factories. Zara-owner Inditex has introduced a strict code of conduct for suppliers to ensure factories pay legal minimum wages. These wages need to be sufficient to meet the basic needs of workers and their families, Nova adds.

WRC also encourages suppliers to pay variable dearest allowance, the local equivalent to half-yearly salary adjustment granted by the government, adds Nova. In this regards, C&A continuously undertakes a series of initiatives and processes to guarantee respect for its employees and the law at all its stores, distribution centers and other administrative areas. Meanwhile Puma states, despite having limited influence over Karnataka’s suppliers, they are encouraging them to pay due minimum wages.

UK-based sustainable activewear brand Tala plans to utilize the £4.2 million raised in seed funding to invest in boosting activewear inventory, hiring and global expansion.

As per Apparel Resources, the funding round was jointly led by equity firm Active Partners and venture capital company Venrex. Other investors include the likes of Pembroke VCT and Simon Mottram, Founder Rapha (a sportswear brand), amongst many others.

Grace Beverley, CEO and Founder, Tala said the company will use some of the investment to buy deeper into popular styles.

Notably, Tala, which makes clothes in Vietnam, China, Turkey and Portugal, lists down every factory it uses on its website. It offers high-performance and sustainable activewear, including leggings, shorts, sports bras, tops, hoodies, tracksuits, outerwear and underwear.

The National Council of Textile Organizations (NCTO) has welcomed the House passage of the America Competes Act, a legislative package that will help close the de minimis loophole on duty-free imports from China and also renew the Miscellaneous Tariff Bill (MTB), both important provisions to U.S. textile manufacturers.

According to Kim Glas, President and CEO, NCTO, the legislation contains a provision that would effectively prohibit China from exploiting the Section 321 de minimis mechanism in US trade law, a win for US textile producers and workers.

The Import Security Fairness Act allows imports valued under $800 to come into the United States without paying duties and taxes, bypassing inspections by U.S. Customs and providing a backdoor to Chinese goods produced with forced labor. The loophole has not only fueled the rise of imports from foreign e-commerce companies and mass distributors, but it has also put our domestic manufacturers and workers at a competitive disadvantage.”

Another important provision in the legislation renews the MTB for two years, which would extend limited tariff relief on a range of manufacturing inputs used by US textile producers.

As per a new report by IndexBox, cotton prices in India are expected to rise by 5 per cent in 2022 on account of strong global demand and limited supply.

In 2021, the average cotton price surged by 41 per cent Y-o-Y to $2.23 per kg. Despite the global cotton production rebounded after a 2020's drop last year, reaching the pre-pandemic level of 26.3M tonne, growing demand outstrips supply.

In H1 2022, cotton prices are projected to increase, as global production at the beginning of the year is lower than in the previous months due to smaller crops in India and the U.S. This year, the average annual cotton price is expected to pick up by 5 per cent Y-o-Yto approximately. to $2.34 per kg. Instigated by boosting demand and high domestic cotton prices, China is forecast to ramp up imports sharply, also stimulating the price rally.

According to China National Intellectual Property Administration (CNIPA), the application for patents of all kinds by the Chinese sewing machinery industry increased by 19.79 per cent to 8,775 in 202.

Of all these applications, patent for invention formed 25.29 per cent (2,219), new practical patent shares 62.94 per cent (5,523) and patent for appearance design (including textile equipment) contributes 11.77 per cent (1,033).

These figures indicate that the overall scientific research and innovation capacities in the Chinese sewing machinery sector and the growth in the quantity and quality of invention patents over the years.

The data also shows that the sewing sector has seized the opportunities created by a new round of technological revolution and industrial transformation, built robust strength of independent research and development and laid a solid foundation for constructing a sector proficient at innovation.

Spanish retailer Mango aims to generate a revenue of €1 billion by the end of this fiscal year. As per an Apparel Resources report, the retailer also plans to expand its brick-and-mortar store network in the current fiscal year. In 2021, Mango launched 221 new stores, taking its overall store count to 2,447. Its latest store was launched at Manhattan-based Fifth Avenue. It also launched the sustainable fashion brand Alter Made that offered the best of durable and timeless high-quality pieces with sustainable characteristics.

Known mainly for women’s wear, menswear and kidswear, Mango has over 16,000 stores across the globe. The brand was founded in 1984 with first website launched in 1995. In 2000, the brand opened its first online store. Its men’s line H. E. by Mango was created in 2008. It was renamed as Mango Man in 2014. Mango also launched a range for teenagers, Mango Teen, via a pop-up shop in Barcelona in September 2020. In 2021, Mango launched a new Mediterranean-inspired store concept to meet higher sustainable standards.

Denim brand Soorty has teamed up with Lenzing to launch Reload in Blue, a collection of elevated loungewear styles that make soft denim suitable for home wear. As per a Sourcing Journal report, the collection offers Zoom-appropriate athleisure sets and sleepwear alternatives made of denim. It combines the companies’ commitment to limiting their environmental footprint. It includes Lenzing’s environmentally responsible and biodegradable fibers as well as the LEED-certified production methods of Soorty’s vertically integrated infrastructure.

Fabrics in the collection are made with Tencel Lyocell, a certified fiber produced from sustainably sourced wood using closed loop and environmentally responsible processes. Lenzing provides physical identification for every Tencel branded fiber with its fiber identification technology, assuring brands and consumers that the raw materials it uses originate from responsible resources.

Designed in New York and produced in Karachi, Pakistan, the collection is now available for view at Soorty’s newly opened SpaceD showroom in New York’s Flatiron District. The space serves as a meeting location for brands and sustainably minded individuals to connect and accelerate progress towards a sustainable denim sector.