Cambodia’s garment exports from January to September this year rose 11.4 per cent over the same period last year. The uptick was despite the February 20 community outbreak of Covid-19 and the ensuing lockdowns. Garment orders have managed to avoid sliding into negative territory despite the pandemic. This year, Cambodia was lucky to receive some orders that shifted from Myanmar and would have grown bigger were it not for the February 20 community outbreak.

Garment export growth augurs well for economic activity in the country as other countries reel under severe pandemic-induced conditions. Cambodia’s exports of garments, including apparel, footwear and bags, in 2020 fell 10.44 per cent compared to 2019.

Meanwhile the EU has decided to withdraw one-fifth of the Everything But Arms (EBA) for Cambodia covering Cambodia’s exports of garment and footwear products, travel goods, and sugar. Without EBA, Cambodia will find it difficult to continue the necessary transformation of the textile industry. It will negatively impact future investments, as well as predictability and trust, two crucially important elements of a well-functioning industry. It will also make it difficult for Cambodia to create a modern and competitive industry, with a skilled workforce, and where labor rights are fully respected.

The reopening of economies in the EU and US has created new opportunities for Bangladesh to recover from the severe fallout of Covid-19. Garment exporters have been receiving a lot of work orders from international clothing retailers and brands ever since Western economies reopened. Demand for garment items made with artificial fibers has increased worldwide, so local apparel makers could use this chance to grab a bigger share of the market. Reputed brands and consumers are leaning toward manmade and recycled fiber to achieve sustainability. FDI in the woven sector will also help.

Bangladesh will continue to enjoy preferential access to European markets even after the country graduates from the UN’s least developed grouping in 2026. Access will be enabled under the EU’s proposed Generalised System of Preferences that will come into effect from January 1, 2024.

However, unhealthy competition among local suppliers has been affecting the garment prices. In the absence of unhealthy price competition, Bangladesh’s garment exporters can obtain better prices from international retailers and brands. Another way of getting better prices would be for green garment factories to label their products. Bangladesh is the global leader in green garment factories.

For the second quarter KPR Mills’ total income was Rs 1,225.74 crores against Rs 951.51 crores in the corresponding quarter of previous year and Rs 940.56 crores in the previous quarter. Net profit was Rs 242.22 crores against Rs 112.54 crores in the corresponding quarter of the previous year and Rs 168.07 crores in the previous quarter.

For the six month period total income was Rs 2,166.30 crores as against Rs 1,498.74 crores in the previous year. Net profit was at Rs 410.29 crores compared to Rs 172.84 crores in the previous year. KPR is an integrated textile manufacturing company from India.

Meanwhile KPR Mills has opened a garment unit in Ethiopia. The complete set-up of the garment unit took about two months. Extensive training of workforce took place in both Ethiopia and India. At full capacity, the company will employ 1,500 machine workers who will produce 50,000 garment pieces a day for the world market. So far, employment has been created for 700 people and export shipments have commenced to Europe and the United States.

The next edition of IAF World Fashion Convention will begin in Antwerp, Belgium on November 8, 2021. This time the theme is transition of the global fashion system and it will be approached through the perspective of collaboration in the global supply chain. Sessions focusing on new business models, digitalization, supply chain resilience and transparency will highlight the necessity of buyers and suppliers working together to create the transition the apparel industry needs.

The composition of convention’s delegates, from across the world and spanning the supply chain with a strong representation of small and medium brands and manufacturers further highlights the convention’s core message that is buying brands, retailers and supplying manufacturers rely on each other equally to create supply chains that are resilient enough to withstand the rough ride of the apparel industry’s transition.

For example, one session on new business models, on e-fashion in manufacturing, will bring together a US manufacturing brand, a European fashion tech company and an innovative Asian manufacturer.

The convention will be a physical event, with the organizers noting a nearly full house. To facilitate delegates who are not able to be physically present, the sessions will be live streamed and recorded.

On an average, the fashion and textile industry uses around 8,000 synthetic chemicals to convert raw materials into final products. These chemicals pose health hazards not only to people using them but also fresh water systems. As per a World Bank report, the industrial water pollution generated by textile mills is a result of the 72 toxic chemicals being used while textile dyeing. This usage is mostly driven by the rapid expansion of mass garment manufacturing and the fragmented supply chains for both mass-market and luxury goods. Around 30 of these chemicals are non-removable, says a report by Eco Age. A 2011 report by Greenpeace also shows, brands and retailers seldom monitor the chemicals used in textile dyeing and finishing.

This encouraged 19 brands to launch an initiative to operate under a restricted chemicals list. Known as the Manufacturers Restricted Substance List (MRSL), the list is a blueprint for safe and non-toxic chemical usage.

Lack of regulations and poor knowledge

Devised by the Zero Discharge of Hazardous Chemicals (ZDHC) program, a coalition of fashion brands, value chain affiliates and associates, the list was created in collaboration with global textile, leather, apparels and footwear manufacturers to substitute hazardous chemicals for safer ones in the production process.

The list segregates chemicals into three categories: potentially toxic, toxic and perpetual. The third group of chemicals is known to cause disease or illness. These can neither be broken down into non-toxic forms, nor be removed from wastewater. They cannot be recycled into new materials due to the presence of these chemicals. Replacing them with non-toxic alternatives is the only option for companies using them.

However, factors like international chemical manufacturers, lack of a single global mandatory regulation, poor understanding of chemical toxicity and pressure to produce huge volumes of cheap materials quickly and manual tracing and checking of chemicals contained in formulations for dyeing and finishing, prevent this replacement.

Addressing chemical usage before design

To turn the tide on such toxic chemicals, initiatives like Cradle to Cradle (C2), the gold standard in sustainable design, has been introduced. These initiatives address chemical usage products before they are designed. Though not a complete guideline on safe chemical usage, MRSL list, however, includes many complex chemical names that are difficult to understand. The list is currently being used by a company called GoBlue in its BHive app to cross-check photos of chemical container ingredients to flag any restricted substances. The BHive app is used by brands, manufacturers and chemical providers, along with certification providers including GOTS and Oeko-tex, to cross-check certifications.

Biomaterials emerge a safer option

Another alternative for brands using textile chemicals is to create nature-based raw materials. Some of these biomaterials include seaweed that uses bacteria to develop cellulose-based materials. Companies such as Bolt Threads are investing millions of dollars in biomaterials. A company called Evolved by Nature has even developed an Activated Silk TM made from pure silk in liquid form. This product uses the natural properties of silk to eliminate the need for toxic chemicals in textiles.

The Activated Silk™ is used by brands to coat yarns to provide high-performance characteristics. It can also be used as ‘natural glue’ for recycling cashmere and wool. The material proves a viable alternative to virgin materials as it supports the structure of the regenerated fiber. Its complete biodegradability and biocompatibility also enables it to support circular design principles. Exploring non-toxic and biodegradable natural materials can help companies optimize their performance.

Starting from 1980, over the years, Bangladesh apparel industry has achieved phenomenal export growth. User-friendly policies adopted by the country have helped it emerge as the second largest apparel exporter in the world. In 1985, Bangladesh also started connecting its files stored in computers through a network system. As per a Daily Star report, it is now preparing to enter an advanced stage by using the Internet of Things (IOT) technology to connect every object to Big Data.

A new era in fashion evolution

Bangladesh has also stitched around 102 million smart wearable devices into its clothing since 2016. These devices mark a new era in the country’s fashion evolution. The industry is adopting digitization in all aspects of business including virtual photo-realistic simulation of garments. Robots and cobots have been introduced on apparel production floor and now aims to introduce other future technologies such as 3D printing or additive manufacturing.

Emerging young startups like Shoes of Prey, Unmade, Farfetched, etc are introducing innovative services to enhance customers’ shopping experiences. Most of these startups are focusing on the business-to-customer (B2C) model rather than the earlier B2B2C model.

Pursing SDGs with innovative technologies

An outstanding achiever of the Millennium Development Goals (MDGs), Bangladesh now aims to purse the Sustainable Development Goals (SDGs).Young shoppers are opting for products confirming to their deepest value systems. This is encouraging brands to focus on sustainability and environmental impact of their products.

Bangladesh is also adopting latest technologies and innovations to introduce new solutions to save water, energy, and resources. So far, the country has introduced biofibres, waterless dyeing, and technologies to convert waste into new fibers. It now aims to enhance apparel competitiveness and adopt industry 4.0 standards.

For this, Bangladesh needs to enhance investments in human capital. It also needs to monitor new technologies being introduced in the fashion industry alongwith the skills, quality and quantity required to operate them. Equipping workers with the right skill-sets can help Bangladesh sustain competitiveness, product innovation, and sustainability in the industry.

Out of the total settlements under the Amended Technology Upgradation Fund Scheme (ATUFS) since inception, about 61 per cent of claims were settled during the peak of the pandemic period i.e. in fiscal 2020-21. The Amended Technology Upgradation Fund Scheme (ATUFS) was intended to boost Indian textile industry by enabling ease of doing business, bolstering exports and fuelling employment.

Among the significant decisions to resolve pending issues and the way forward includes reduction of compliance burden by accepting only a single certificate from the concerned bank instead of multiple documents regarding evidence of payment for claimed machineries. Garment exporters have appreciated the simplification of cumbersome steps. Now they also expect refunds on time. Sometimes refunds are not cleared up to two or three years. The modalities for enlistment of machinery manufacturers and accessories/spare parts manufacturers will be simplified. Despite hindrances during the pandemic, serious efforts were put into resolving policy constraints and settlement of claims. A special measure has been introduced to ease the liquidity flow in industry by introducing an option for getting part subsidy released against bank guarantees. 

The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 as a credit linked subsidy scheme intended for modernization and technology upgradation of the Indian textile industry, promoting ease of doing business, generating employment and promoting exports. Since then, the scheme has been implemented in different versions.

Brax, Jolo Fashion Group and Shinsegae have joined Cotton made in Africa (CmiA). Cotton made in Africa promotes sustainable cotton cultivation, protecting the environment and improving the working and living conditions of small-scale farmers and their families. The three companies Brax, Jolo Fashion Group and Shinsegae are from Germany, the Netherlands and South Korea respectively.

As one of the world’s leading initiatives for sustainably produced cotton in Africa, CmiA gives voice to small-scale farmers who form the bedrock of the fashion industry. Working in accordance with the CmiA standard, around one million small-scale farmers from 10 countries in sub-Saharan Africa currently account for 30 per cent of African cotton production. CmiA cotton has a significantly smaller ecological footprint than global average and greenhouse gas emissions 13 per cent below the global average for cotton cultivation. Small-scale farmers benefit from agricultural and business training that enables them to improve their yields and cultivation methods. Consumers can identify these products through the Cotton made in Africa label. Each purchase represents a direct investment in improving living conditions and protecting the environment.

Beyond sustainable cotton production, CmiA actively advocates on issues like healthcare, respect for children’s rights and equal rights for men and women. 

Bangladesh’s cotton traders have expressed concern over the uncertainty of availability of cotton and its rising prices fuelled by the gap between supply and demand. They called on readymade garment exporters to be cautious about rising price of the industrial raw material and to negotiate accordingly in time for receiving work orders. The global cotton index hit its decade highest index on September 28 last and maintained a rising trend. As cotton harvesting is taking place in most cotton producing countries, prices was expected to go down. But the reality is different.

About 25.7 million tons of cotton were forecasted to be produced against an estimated use of 25.99 million tons in fiscal year 2020-21, while 25.66 million tons of cotton were used globally. Millers are following a wait and watch strategy. Bangladesh exporters expect yarn prices to go up further in December in line with cotton prices.

Many exporters during the pandemic period took work orders even below their production cost mainly to sustain their business and pay bank loans and worker’s wages. But now there are plenty of work orders and ample opportunities for placing more orders due to the electricity problem in China and closure of factories in Vietnam due to Covid 19.

While prices of conventional cotton have more than doubled compared to the beginning of Q2 2020, prices of organic cotton have also grown simultaneously. Of these, particularly the Indian and Turkish varieties are now selling at a premium. This is largely due to the growing demand for organic cotton post the pandemic. Compared to conventional cotton, price of Indian organic cotton has increased 20-fold over the last year. On the other hand, the premium for Turkish organic cotton has increased three-fold during the past 12 months.

Prices of organic cotton are increasing due to accelerated sustainability efforts in the global textile and clothing industry. Initiatives like the Partnership for Sustainable Textiles in Germany and the 2025 Sustainable Cotton Challenge initiated by the Textile Exchange are also pushing up demand for organic cotton.

Currently, organic cotton constitutes only one per cent of global cotton production. Hence, if the present premium prices sustain, it will encourage more farmers to switch to organic cotton. World organic cotton production grew 56 per cent last year. Organic cotton makes up 0.7 per cent of total cotton production worldwide and involves more than 1,82,000 farmers. While 19 countries now boast of organic cotton production, 98 per cent is concentrated in seven countries: India, China, Kyrgyzstan,  Turkey,  Tajikistan, the United States and Tanzania.