Bangladesh’s exports earnings dropped to $3.47 billion in July this year from the $3.91 billion last year. As per a report by the Export Promotion Bureau (EPB), exports earnings dropped by 11.9 per cent year-on-year in July. Professor Mustafizur Rahman, Fellow, Centre for the Policy Dialogue attributes this decline to Eid holidays, factory closures amid lockdowns, and container congestion at the Chittagong port. However, Bangladesh is getting a lot of purchase orders being diverted from China, India, Myanmar, and Vietnam, he adds. He hopes exports will recover in August, and Bangladesh will soon return to pre-pandemic levels.

Apparel manufacturers also agree that the current dip in exports is temporary as they have enough purchase orders from retailers in the EU and the US markets. Shahidullah Azim, Vice-President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said they are very optimistic about export performance in the coming months as manufacturers receive a lot of orders from buyers right around this time of the year.

In July, Bangladesh’s export earnings from woven products declined 18 per cent year-on-year whereas that from knitwear shipments fell 5 per cent. Earnings from the jute and jute sector slumped by 41 per cent year-on-year to $60.7 million. Home textile product exports declined by 1.76 per cent to $92.36 million.

Leather and leather goods exports surged by 1 per cent to $90.5 million in July, up from $89.9 million in the same month last year.

With input from over 3,500 exhibitors, buyers and partners, Spring Fair, the leading Home and Gift show, Spring Fair will become a four-day show. The new show dates run from February 06, 2022=February 09, 2022 at NEC Birmingham and will include the introduction of late-night openings until 7.30pm on the Sunday and Monday.

Simon Lau, Event Director, Spring Fair, says: “Buying behaviors have changed in recent years and visitors have communicated that they welcome a 4-day show and that a more condensed few days with the same number of talks, demonstrations, and meetings would make it a more dynamic and action-packed event. We are also really pleased to introduce two late night openings. A trend common in retail already, the additional opportunities to trade will greatly benefit visitors attending for one day only.”

Sarah Ward, CEO, The Giftware Associationadds: “This change has been a long time coming, driven by collaboration and feedback from the community with the aim of delivering a better return on time and investment for both exhibitors and visitors alike. Spring Fair is still the largest and longest home and gift trade show in the UK, and I’m excited by the prospect of late-night shopping!”

New initiatives introduced at the show focus on newness and delivering improved return on investment and return on time. Curated Meetings will offer dedicated networking and facilitated, pre-approved and pre-booked meetings between exhibitors and buyers.

In 2020 several new trade patterns emerged in the global textile and apparel industry, as per the new World Trade Statistical Review 2021 report released by the World Trade Organization (WTO). A new course material from Fash455 course shows, some of these patterns were a continuation of earlier trends while others evolved with companies’ shifting production and sourcing strategies in response to the changing business environment.

Textile exports rise while apparel exports decline

The first trend was a 16.1 rise in global textile exports against a 9 per cent decline in apparel exports. Driven by an increased demand for personal protective equipment (PPE), global textile exports grew to $353 billion during the year. In comparison, affected by recurrent lockdowns, reduced discretionary spending and a declining economy, apparel exports fell to $448 billion from 2019.

Apparel exports rebounded to 95 per cent of pre-COVID levels by 2020-end as economic activities returned to normal. However, resurgence of COVID-19 case in the mid-year caused an uneven balance in the recovery of global textile and apparel trade.

China, EU and India export 65.8 per cent of world’s textiles

Textile exports from China, the European Union and India gained a new momentum during the pandemic. Together these three countries exported 65.8 per cent of the world’s textiles in 2020. Exports by China and Vietnam grew 28.9 and 10.7 per cent during the year. Exports by the US dropped during the year leading its position dropping from fourth to fifth largest textile exporter in 2020. The country exported 3.2 per cent of the world’s textiles during the year. Around 67 per cent of its exports were directed to the Western Hemisphere including 48 per cent for USMCA (US-Mexico-Canada trade agreement) members.

China’s share rebounds

Efforts to diversify apparel sourcing from China slowed during the year as its share in the global apparel market rebounded to 31.6 per cent in 2020 from 30.7 per cent in 2019. Even in the US, China’s market share recorded a marginal decline from 30.8 per cent in 2019 to 29.8 per cent in 2020 as the sourcing criteria of brands and retailers matched China’s competitiveness during the year. Also, China faced a shorter lockdown period compared to other nations and resumed production sooner. By July 2020, Chinese textile and apparel factories had resumed 95 per cent of their operational capacity.

Nevertheless, fashion companies remain determined in their efforts to reduce China sourcing. They are being pushed in their resolve by non-economic factors, particularly the concerns about forced labor in China’s Xinjiang region, Post COVID-19, China’s share is likely to be picked up jointly by its Asian competitors like Bangladesh and Pakistan.

Textile imports by developing countries decline

Driven by increasing demand for PPE, textile imports by developed economies, including EU members, the US, Japan, and Canada, surged over 30 per cent in 2020. Meanwhile, though developing countries imported more textile raw materials like yarns and fabrics, their textile imports declined during the year.

Apparel imports by the world’s three largest importers the European Union, the United States, and Japan reached a record low in the past 10 years. Imports by these three countries combined dropped to 58 per cent during the year. On the other hand, China’s apparel imports increased 6.5 per cent from 2019. From 2010 to 2020, China’s apparel imports grew by 15 per cent annually. Of this, around 30 per cent constituted luxury items made in the EU.

As latest step in its sustainable path, the Italian company Officina+39 has joined the Bluesignnet work of stakeholders to actively support sustainability and best practices in the industry.

This landmark achievement confirms a longstanding pledge to minimize environmental impacts by envisioning and developing forefront solutions and technologies that reduce the use of energy and hazardous chemicals, while increasing waste recycling and water conservation.

Together with the high-profile players involved who share Bluesign’s purposes, the company will work to ensure a responsible use of resources and to guarantee the highest possible degree of consumer protection. This also allows the company to deliver a unique and eco-conscious range of chemical specialties, dyestuffs and pigments for the denim and garment industries as well as selected ecocompatible chemical auxiliaries and innovative processes – each one developed in compliance with rigorous safety and quality standards.

According to an ESOMAR-certified market research and consulting firm FactMR’s market intelligence report, knitted fabric sales will rise at nearly 5 per cent CAGR from 2021 to 2031, reaching almost US$ 40 billion in revenue.

Historically, the market expanded at a CAGR of 4 per cent, closing in at around $ 24 billion by the end of the 2016-2020 periods. Advanced knitted fabrics with high compression strength, anti-tear, and flame-resistant properties have been developed as a result of technological advancements. Manufacturers' productivity has risen as a result of the rapid use of 3D knitting machines.

The growing usage of high-tech medical textiles in healthcare applications is projected to open up a slew of new prospects for knitted fabric manufacturers. To improve the texture and flexibility of knitted materials, they are using new printing processes.

By fabric type, warp-knitted fabrics will yield over 50 per cent of market demand by 2031. The automotive industry will remain dominant application area, growing at almost 5 per cent CAGR. The US will emerge as a substantial market, expected to register a CAGR of around 4 per cent. Asia will be the maximum contributor to market demand, yielding almost 60 per cent of overall sales

Fashion retailers are raising prices and scaling back discounts to make up for lost sales in 2020, and to offset rising supply chain costs.

According to the Department of Labor's June Consumer Price Index, apparel prices rose by 4.9 per cent in June versus the year before - the largest jump in a decade. Crocs, Michael Kors, and Ralph Lauren are among those brands that have already raised prices.

The supply chain crisis is driving up the cost of transporting goods, and leading to long delays. At the same time, retailers are trying to find workers in a tight labor market, and are raising wages or offering perks to attract talent. Ralph Lauren has been raising prices and cutting discounts since 2019. In its most recent quarter, its average selling prices have increased by 17 per cent.

Crocs has raised s average selling price by 8 per cent to $21.84, in the most recent quarter, and it is planning more price hikes in 2022, mostly for customers in Asia.

LVMH-owned Louis Vuitton has raised the prices of its Pochette Accessoires Monogram Canvas handbags by 25 per cent this year, from $630 to $790.

Chanel has hiked the prices of its handbags to offset missed sales in 2020. According to a note from Jefferies analysts, average global prices of its handbags went up as much as 17 per cent at the start of July.

John Idol, CEO, Capri, the retail giant behind Michael Kors and Jimmy Choo, said that prices at Michael Kors had already gone up and will go up "considerably" next spring.

German sportswear company Adidas raised its outlook for full-year sales and profitability as demand soared in most of the world but took a hit in China where Western brands faced a boycott of their products in late March. The brand now expects 2021 sales to grow up to 20 per cent, compared to a previous forecast for a "high-teens percentage rate", and for net income from continuing operations to reach 1.4-1.5 billion euros, up from a previous 1.25-1.45 billion.

Adidas’second-quarter sales soared by 52 per cent to €5.077 billion ($6.01 billion), while operating profit came in at €543 million, beating analysts' average forecasts for 4.97 €billion and €458 million respectively.

Currency-neutral sales almost doubled in North America and Europe, Middle East and North Africa in the quarter, but fell 16 per cent in Greater China, in part because the region saw a strong recovery a year ago as it emerged from coronavirus lockdown.

In May, Adidas initially saw a steep drop in demand in China but sales have since recovered slowly but steadily.

The UK Fashion and Textile Association (UKFT) plans to design, prototype and pilot a new technology platform based on IBM technologies. As per Innovation in Textiles, UKFT has collaborated with IBM, Tech Data, and the Future Fashion Factory for the project that will help the UK fashion and textile industry to drive sustainability and profitability through increased transparency within the supply chain.

The project will also include retailers Next, H&M’s COS brand, N Brown, New Look and yarn manufacturer Laxton. Known as the Sustainable Supply Chain Optimization, the project will be developed with £1.4 million funds from Innovate UK, a part of UK Research and Innovation, on behalf of the Industrial Strategy Challenge Fund (ISCF) Manufacturing Made Smarter Challenge.

The new technology platform will combine a number of emerging technologies like blockchain, AI and sensors to digitize the key processes in the supply-chain, creating a shared system of data that the different parties can trust and easily act upon.

It will provide a better understanding of where and how each garment’s fabric was processed and finished, by whom and in what conditions. It will enable manufacturers to spot potential disruptions before they have a chance to affect delivery. They will also be able to better monitor production processes and flows resulting in a real chance to reduce waste and optimize stock.

The nine-month project will deliver a solution built on a combination of IBM’s blockchain and AI technologies running on IBM Cloud. The blockchain technology will enable increased transparency in the supply chain and the AI technology will facilitate the detection and response to supply chain disruption and provide the insights for real-time analysis of current business performance, rapid problem solving and optimization of business flows.

Vietnam has temporarily shut around 35 per cent of textile and garment factories due to COVID-19, says Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS). Du Giang expects these factories to remain closed for a longer time as they do not have enough funds to pay for three-on-site working arrangements to support employees to return to work.

In addition, the vaccination rate of Vietnam's textile and garment industry is still very low, particularly in key production areas in the southwestern and southeastern provinces, he adds.

The total export turnover of these provinces in the central region accounted for 62 percent of the total export turnover of the industry.

The export value of the textile and garment industry reached $18.7 billion in the first six months of the year, while the target for the whole year is $39 billion.

The textile and garment enterprises in the country are under huge pressure due to the as they failed to ensure the production situation as planned. They are also worried about the worker exodus in Ho Chi Minh City. Their failure to return could cause a serious labor shortage in Vietnam in future, adds Du Giang.

Cambodia’s Council for Development of Cambodia (CDC) has approved eight new projects worth a combined value of 71.4 million. Six of these projects are dedicated to the garment, travel bag and shoe industries. They are slated to create nearly 10,000 new jobs. The remaining two projects are worth $8.5 million and will generate 1,500 new jobs

The Garment Manufacturers Association in Cambodia (GMAC) has welcomed these investments in the garment industry as a heartening development, particularly during this difficult pandemic period.

One approved projects includes a factory by Gianni Vince Bags (Cambodia) Co in Kandal province. Its parent company, based in Guangzhou, China, will commit $4.4 million to constructing the facility and employ 1,171 people, according to the CDC. The second project approved is Sen Wang Ying New Material Co hoe factory in Kampong Speu province. It is valued at $4.1 million and will create 403 jobs.