Bangladesh’s cotton imports may fall in the current marketing year. Spinners may be inclined to use more cotton from their stock instead of imports as cotton prices are shooting up. In the report USDA said cotton imports in Bangladesh may fall to 8.2 million bales in the MY22 from 8.75 million in the MY21. However domestic cotton consumption has risen by 23 per cent. After facing the blow of pandemic, readymade garment exports from Bangladesh increased by 28 per cent in the first 10 months of 2021. Orders from Bangladesh increased as production was hindered in China and Vietnam. The rising trend may continue for the next couple of months increasing cotton consumption.

As per Textile Mills Association (BTMA) chief executive officer Monsoor Ahmed many spinning mills are in the process of expansion with the rise in garment exports. This may reverse the trend of falling imports. Bangladesh’s spinning industry is heavily dependent on imported cotton. Many factories are now making new investments in setting up spinning facilities because of growing demand for yarns in Bangladesh, leading to the inclusion of about two million new spindles to the existing production capacity in the next two years. So the country will have to import an additional two million bales of cotton. The United States for one is looking to increase its cotton exports to Bangladesh. Bangladesh is the world’s second largest importer of cotton, a key clothing raw material.

The Netherlands will help Morocco in supporting 35 textile businesses and helping them expand operations in Central and Northern Europe through increased imports over a period of five years as per a new deal between the Moroccan Association for Textile Manufacturing (AMITH) and Netherlands’ Agency for Promoting Imports from Developing Countries (CBI) to support 35 textile businesses and help them expand operations. The program aims at creating networking channels between Moroccan textile suppliers and European textile retailers. The 35 textile businesses chosen for the program will go through a rigorous candidacy process based on expertise and their Corporate Social Responsibility.

Clothing and textile are a primary importing sector in Morocco. Textile and clothing exports make up 15 per cent of Morocco’s industrial GDP. The textile sector is of strategic importance to Morocco’s efforts to emerge as an industrial and exporting hub. While Spain and France remain Morocco’s major trading partners, the North African country is now redirecting its marketing efforts worldwide, attracting investments and cultivating partnerships with major actors in the automobile and aeronautical sector established in Morocco.

The country is making intensive efforts to become a continental leader and a gateway to African markets. In addition to its marketing efforts, Morocco has established in recent years major industrial zones and enacted major infrastructure projects to enhance the attractiveness of the country as an investment destination. Several brands from the European Union, the UK and the US have been sealing deals with Moroccan companies in the textile industry.

Though the value of US apparel imports registered a 2.4 per cent increase in October 2021 from previous month and 20.3 per cent from year ago, it is likely to decline in the subsequent months of 2021 due to the seasonal nature of imports. As per a Shenglu Fashion report, the value of US apparel imports is likely to remain in the range of19.9 per cent-24.5 per cent this year.

OTEXA figures reveal so far in 2021, US apparel imports remained unstable due to the uncertainties and disruptions caused by COVID-19 and the shipping crisis. They have grown between 13.1 per cent in May to 17.6 per cent in July, compelling fashion companies to focus on inventory planning and supply chain management. Companies are likely to continue to remain challenged by the new Omicron variant.

Limited production capacity elsewhere has resulted in Asian countries remaining the dominant sourcing base for US fashion companies. However, due to COVID-lockdowns in Vietnam and Bangladesh, the market share of Asian countries’ fell from 74.2 per cent in 2020 to 71.3 per cent in July 2021. However, it rebounded in October 2021 as US apparel imports from Asian countries surged 74.8 per cent.

China to remain dominant sourcing base

China continues to remain one of the essential sourcing bases for US fashion companies in the current business environment. It remained the largest supplier in October 2021, accounting for 41.0 per cent of total US apparel imports in quantity and 27.1 per cent in value. China supplied the most diverse range of products to the US market during the month compared to other competitors like Bangladesh, Mexico, and CAFTA-DR members.

Yet, as shown by the HHI index and market concentration ratios (CR3 and CR5), the US fashion companies continue to move apparel sourcing orders from China to other Asian countries. As against 27 per cent in 2018, they now source only 15 per cent cotton apparels from China. Only around 10 per cent of their total sourcing value or volume is from China compared to over 30 per cent in the past. US companies continue to reconsider China sourcing strategies to avoid potential high-impact disruptions due to growing tensions between US-China relations and the looming new US legislation targeting products made by forced labor.

Near-sourcing to increase

US fashion companies prefer near sourcing from the Western Hemisphere now, especially CAFTA-DR members. From January-October 2021, they sourced around 17.3 per cent of their apparels needs from the Western Hemisphere, which is 16.1 per cent more from that sourced in 2020. The share of CAFTA-DR members’ market shares during this period increased to 10.6 per cent in 2021 from 9.6 per cent in 2020. The value of US apparel imports from CAFTA-DR also increased 41.9 per cent growth during the period. Imports from El Salvador, Honduras and Guatemala grew particularly fast during these months. However, companies hesitate to permanently shift their sourcing bases to this region due to the political instability in some Central American countries like Nicaragua and Haiti.

From January to October 2021, there was a notable increase in prices of US apparel imports. The unit price of US apparel imports from almost all leading sources surged over 10 per cent during this period. Pressures of these rising costs are unlikely to ease anytime soon.

The fashion industry continues to make false claims without taking into account the varied conditions for cotton farming, says a report by Transformers Foundation. Titled, ‘Cotton: A Case Study in Misinformation, the report lays out a roadmap for accurate data research and industry-wide transparency. The ‘de-bunking’ section of the report highlights the portrayal of cotton as a “water-hungry” crop. It notes cotton consumes lesser irrigated water per hectare than rice, wheat, maize, soybeans and many vegetables. Unsubstantiated claims in the report are highlighted using a traffic light system.

Creating an actionable change

An European Commission report also highlights the deceptive sustainability claims made by several brands and companies. Debunking these false claims can help foster trust within the community and create an actionable change, says the report by Transformers Foundation. Highlighting rising pressure on farmers, the report focuses on the culture of distrust created due to a lack of education of cotton farming practices. It does not include aspects like the evaporation of water into the atmosphere during the growth cycle. Marc Lewkowitz, President and CEO, Supima says, brands tap into certifications to prove sustainability claims. However, they do not take the required efforts to monitor supply chains.

A blueprint for future research

There are a few instance of this in the report, in terms of pesticides use, says Elizabeth L Cline, author of the report. Pesticide sales figures indicated in the report are misinformed and do not correspond to pesticide use in farms. This data gap fuels a lot of mistrust about pesticides. Therefore, this report can be used as a blueprint for better research into specific areas that don’t have as much data, she adds.

Brands need to take small steps to take control of their supply chains, says Lewkowitz. They can achieve true sustainability through accurate data and metrics.

Milanese fashion trade show the Milanese White will be held in from, February 24 to February 27, 2022. The fashion trade show renamed ‘White - Sign of The Times’ will take place during the same days as Milan Women’s Fashion Week and will also enlarge its space. As part of an overall new strategy it aims to focus on conveying a more structured vision of the project.

The show aims at expanding and attracting a larger number of international exhibitors and buyers. The usual appointment WSM-White Sustainable Milano, the project dedicated to sustainability and technological innovation usually happens in January and June. This time it will take place within the two show editions corresponding to February and September and will occupy a new location. The overall evolution of the project is the result of a joint collaboration between the show’s founder Massimiliano Bizzi and Beppe Angiolini, White’s creative director and founder of the store Sugar in Arezzo.

White is the main trade show for women’s collections and the leader for international brands scouting. It represents the launching pad for the success of brands and companies, as well as a reference point for most of the key multi-brand and department stores in the world. Featuring the participation of over 550 brands and over 27,000 visitors, White is the marketplace where new trends for the fall/winter season are introduced to buyers from all over the world.

Welspun India has been selected as one of the world’s leading companies for sustainability by the Dow Jones Sustainability Index. It has featured in the index due to strong environmental performance as well as significant improvement in its social and governance impact parameters.

Welspun India’s ESG Score stands at 48, which is over 62 per cent higher than the average industry score. Additionally, with a score of 45, the its environmental dimension scores are 75 per cent higher than the industry average, while the social dimension score, at 50, is 54 per cent higher than the industry average. A sharp focus on product innovation, customer centricity, inclusive growth and resource efficiency led to Welspun India’s entry into the prestigious sustainability indices.

Welspun aims at being carbon and water neutral by 2030 and united in its efforts in safeguarding the environment and communities at large. The company’s strategic efforts are to integrate ESG drivers and adopt a circular approach in all aspects of its operations.

The Dow Jones Sustainability Index represents ten per cent of the world’s most sustainable companies of an industry that lead the scoreboard based on their performance across a variety of criteria, including economic performance, environmental stewardship, social responsibility, and corporate governance.

Sangam India will set up multiple manufacturing units focusing on spinning, weaving, garments, knitting and processing over 100 acres of land in Rajasthan. This would generate direct/indirect employment for over 10,000 people. This investment will be funded through a combination of internal accruals, raising fresh equity and debts via financial institutions.

The expansion is expected to increase the company's revenue by 15 per cent from 2022-23. The expansion program will result in the installation of 32,832 spindles and six knitting machines for the manufacturing of cotton yarn and knitted fabric. The plan is to achieve an increase of 15 per cent in the overall business. The textile sector of India needs a major impetus, especially after the turbulent times faced by the industry during the Covid pandemic.

Sangam India produces PV dyed yarn and seamless apparel and plans to increase the existing capacity of its cotton yarn business by 47 per cent and knitted fabric business by 28 per cent. Sangam India’s revenue has doubled in the second quarter of this fiscal year compared to the second quarter of the last fiscal. Sangam is aiming at strategically leveraging the D2C (director) market and the digitised textile space to further elevate its reach and supply in India and overseas.

Pakistan’s textile and clothing exports grew 28 per cent from July 2021 to November 2021. This was mainly on the back of a massive depreciation in the currency’s value and a steady rise in global demand. The year-on-year growth in November 2021 was 35 per cent, reveals Pakistan Bureau of Statistics.

Readymade garment exports jumped 23.4 per cent in value and 23.6 per cent in quantity during July to November, while exports of knitwear edged up 36.6 per cent in value but dipped 14 per cent in quantity. Bedwear exports grew 23.6 per cent in value and 23.9 per cent in quantity. Towel exports were up by 18 per cent in value and 9.4 per cent in quantity, whereas those of cotton cloth rose by 22.3 per cent in value and 16.2 per cent in quantity.

Among primary commodities, cotton yarn exports surged 65.5 per cent and those of yarn made from material other than cotton by 118.8 per cent. Exports of made-up articles — excluding towels — rose by 15 per cent while those of tents, canvas and tarpaulin dipped by an equal percentage during the period. Imports of textile machinery jumped 97.9 per cent from July to November, reflecting expansion or modernisation in the textile industry.

Netherlands and the International Labor Organization (ILO) will work on a project to address future skills needs in the garment sector of Vietnam. As a part of the two-year project, the ILO will support the government, employers’ and workers’ organizations in Vietnam to understand what skills the industry and its workers will need now and in future.

The project will focus on those at highest risk of losing their jobs as a result of the Covid crisis and increased automation and digitalization in industries. The project will apply lessons learn from similar ILO garment sector skills anticipation projects in the garment sector in Brazil, Ethiopia, Jordan and Peru and it will build on the achievements of past ILO skills development programs in Vietnam.

Vietnam’s textile and garment industry is key to the country’s growth and development. It employs about 2.7 million people, of which a vast majority, are women. However, the Covid crisis has hit the industry hard. In addition to factory closures and lost incomes, the pandemic has accelerated the drivers and megatrends that are changing textile and garment production. These include automation and digitalization as well as the introduction of greener and cleaner production to mitigate climate change.

Apparel exporters in Delhi-NCR are facing a labor shortage. There are hundreds of garment manufacturing units in the region. Owing to the scarcity of workers, factories are being forced to work overtime, and in night shifts, to complete orders on time. There are various factors responsible for the shortage of labor. A lot of workers have returned to their villages for marriages as well as for agriculture-related activities.

The shortage is despite a lot of effort to enhance skill development in the apparel manufacturing industry. Gurugram is facing a similar situation. Exporters have plenty of orders but the workers are mostly migrants. So many companies of Delhi-NCR have started their factories to states where labor availability is not an issue. So Matrix Clothing of Gurugram has an unit in Jharkhand.

Labor shortage has always been an annual concern for the industry during this season, but this time the struggle is a bit more ,as a chunk of workers, post-Covid, have not come back or have moved to other industries or businesses. However factories are not offering any lucrative wages to attract workers since the price pressure is already very high. Raw material costs have increased. Some apparel exporters of Noida work with prestigious retailers like Carrefour.