During the second quarter spanning from March 01- May 31, 2021, H&M India’s net sales grew by 200 per cent to Rs 307 crore.

The Swedish fashion retailer a 30 per cent jump in net sales in India for the six-month period ended 31 May, 2021. As per Textile Excellence, the retailer’s net sales in India rose to Rs 836.6 crore during the period

H&M operates 50 stores in the country—apart from its own e-commerce channel as well sales on e-commerce marketplace Myntra. Globally too sales increased in the first half of the year, compared to a year ago period. The pandemic led to reduced footfall as a result of continued restrictions and store closures. At the most, around 1,800 stores were temporarily closed, i.e. around 36 per cent of the group’s total number of stores.

In the year-ago quarter, the retailer had reported 70 per cent y-o-y dip in net sales as India remained under a strict lockdown for most of the period. The retailer was quick to roll out more comfort and casual wear as the pandemic struck last year. This was true of its collection in India as well.

Apart from H&M, the retail group owns fashion brands such as COS, Monki, Weekday, & Other Stories among others. It plans to close 350 stores in 2021 and open 100 new stores. Most of the openings will be in growth markets while closures will mainly be in established markets.

Australian Wool Innovation (AWI) believes EU’s new labeling laws launched recently on apparel products is a disadvantage for all natural products. Don MacDonald, Director, Australian Wool Innovation says, his organization is advocating for robust science to underpin the PEF's rating methods, thereby maximizing wool's reputation and minimizing the risk that wool could be disadvantaged.

According to Macdonald, the Higg Index currently only measures the carbon footprint of that product up to the shop rack. He said, the organization is partnering the cotton industry in South Africa for the project. It is also urging the EU Council not to be swayed by the technical secretariat who advises the EU Council, adds Macdonald.

World’s largest trade fair organizer, Messe Frankfurt believes, demand for new and unique products has increased since last year with consumers emphasizing on quality over quantity. As seen from the first-hand accounts from exhibitors and buyers from the Intertextile Shanghai Apparel Fabrics editions in September 2020 and March 2021, and Intertextile Shenzhen Apparel Fabrics in July 2020, the pandemic has popularized anti-bacterial, anti-viral and other health related concepts.

Buyers are placing orders in small quantities. They are also ordering more patterns, brands and categories. In terms of consumer trends, people are now paying more attention to functional fabrics, such as anti-bacterial and sustainable products, which I think will prove to be even more popular in the future, says Hui Zhang, Regional Sales Manager, Beijing Vitality Textiles Co, China.

The pandemic has accelerated Chinese consumers’ high requirements for product quality and safety, adds David Chu, general manager, Shanghai Baosai International Trade Co. The overriding feeling that textile industry is recovering and progressing in China dominated conversations at the fair amongst the nearly 2,600 exhibitors and 80,000-plus buyers.

M&S has added new third party brands to its kidwear category. The most noteworthy addition is the kidswear range by high-profile footwear brand Clarks at the retailer’s webstore. Besides, M&S has also added Hype, Bestseller’s Jack & Jones Junior, Little Joule, and Somebody’s Child to its store range.

The share of M&S kids’ section has increased by 0.5 per cent and it is the third biggest online kids clothing website in the UK. The retailer’s addition of Clarks to its webstore is part of its strategic shift from ‘special occasion’ clothing & footwear to everyday style & value. Through this shift, M&S aims to introduce a trusted footwear range as part of its brand strategy.

Next month M&S plans to launch a major BtS customer campaign focusing on sustainably sourced schoolwear with the added bonus of Clarks school shoes. As a part of this campaign, M&S will also boost its accessories range by introducing the Hype range of schoolbags and water bottles.

International trade is crucial for the success of apparel industry as it emerges from the pandemic and Brexit effects, says a new report by UK Fashion and Textile Association (UKFT). The report states, though 2021 is likely to be a challenging year for the UK fashion and textile industry. It will also be year of hope. Businesses in UK will navigate lockdown and resume commercial operations as the country finds a way to work out Brexit realities.

The report titled ‘Business Outlook 2021’ was produced in collaboration with Smart Currency Business and UKFT. It shared valuable insights on what the year ahead looks like for UK fashion businesses, implications of the Brexit deal, considerations for protecting the businesses against the pandemic and more.

The report urges UK companies to remain vigilant with existing wholesale customers and agents, as many of them have been substantially weakened in 2020. The same could also apply to some factories. Pricing will be especially sensitive in 2021 and 2022 as consumers can see the price of almost everything, it adds.

The report further urges companies to use credit insurance as a tool to protect their business against a loss incurred due to insolvency, protracted default or political event, and subsequent non-payment of an invoice. It adds, insurer appetite for the fashion and textile sector has been low, given that clothing sales decreased by more than 25 per cent in 2020. However, insurers are now seeing a small bounce back, with March 2021 showing a 5.4 per cent increase on the previous month and a 1.6 per cent growth against February 2020.

The report concludes, availability of physical retail space in 2021 and 2022, in prime city centre sites could be a good opportunity for those looking for a central site or to run a pop-up. However, UK may become less attractive as a retail destination if the government does not reverse its decision to cancel the VAT refund scheme.

Demand for woolen items have declined 80 per cent due to COVID-19, says Miles Barritt, Risk and Recovery Analyst, Australian Wool Innovation (AWI). In a Textile Focus report, Barrit adds, the pandemic has shifted primary consumer of wool as well as marketing of the fiber. Demand for formal wear has fallen as casual wear with athletic wear, commuter clothing, and personal protective equipment (PPE) have become more popular. The GDP of European markets has shrunk 8 per cent, while the US remained steady.

With 80 per cent imports, China has emerged the primary market for Australian Wool Innovation organization’s, says Barritt. Other major importers include the Czech Republic, Italy, India, and South Korea. The pandemic has also increased the revenues of online retailers like Amazon and Alibaba 38 per cent and 37 per cent, respectively. Barritt anticipates vaccine rollouts to assist firms in resuming their operations and consolidating supply networks in 2021.

A new report by ResearchAndMarkets.com estimates global sports apparel market to grow by 4.9 per cent to reach $247.4 billion by 2027. The report estimates discount stores will grow at a CAGR of 4.7 per cent to $ 81.2 billion by end of the analysis period. Brands’ segment is also likely to grow at 4.5 per cent CAGR over the next seven years. Growth in the global sports apparel market will be led by China which will grow at a 7.8 per cent CAGR to reach $51.9 billion by 2028. Other markets including Japan and Canada are expected to grow between 2.8 per cent to 3.9 per cent by the end of the analysis period. Germany, on the other hand, will grow by 3.5 per cent.

United States, Canada, Japan, China and Europe will lead growth in the worldwide Supermarkets and Hypermarkets segment at 4.8 per cent CAGR. These regional markets are anticipated to be worth $42.6 million by 2027. China will continue to be one of the fastest expanding markets in Asia Pacific. By 2027, the regional market is expected to reach $33,4 billion, led by countries like Australia, India, and South Korea, while Latin America is expected to grow by 5.5 percent over the analysis period.

Biggest private sector employer in Kerala, Kitex Garments has backed out of Rs 3,500 crore investment project in Kerala, alleging an incessant witch hunt by the government. The project included opening of an apparel park in Kochi and establish industry parks at Thiruvananthapuram, Kochi and Palakkad. Kitex has already acquired 30 acres of land for the apparel park at Kizhakkambalam in Kochi. The project report has also been completed and the project would have provided jobs for 20,000 people. The three industrial parks were envisaged to promote start-ups providing all infrastructural facilities. Each of these parks would have created 5,000 job opportunities.

Sabu M Jacob, Chairman and Managing Director, Kitex Group, said, he decided to scrap the project due to the continuous harassment by the government authorities. He alleged, 11 teams of officers from various departments raided the company during the past one month. Departments of labor, factories and boilers and even a team led by the district collector conducted a search on the premises.

Jacob said, other states provide free land, building, water, power and tax holiday for 10 years to investors. They also provide the PF and ESI share of the employees. Some states even offer Rs 5,000 salary for the employees for five years. The company doesn’t demand any benefits from the government. It only wants the government harassment to stop.

Yamuna Expressway Industrial Development Authority (YEIDA) has allotted 150 acre for development of Uttar Pradesh’s first apparel export cluster in Noida. The cluster will house factories by 152 companies to be set up with an estimated investment of Rs 8,365.73 crore. It will provide employment to about five lakh people. The first phase of the project will include construction of 91 textile and garment factories that are expected to be operational by January next year.

Through this cluster, the UP government plans to develop a global garment hub which can tap into the lucrative international textile supply chain, in which Bangladesh, Vietnam and Indonesia are currently major producers. The government plans to develop more such integrated textile parks in major textile producing areas of the state, such as Meerut, Agra, Jhansi, Gorakhpur, Varanasi, Lucknow and Kanpur divisions.

Around 66 major industrialists have submitted proposals to invest Rs 8715.16 crore in the textile and garment sector in UP in the last four years. Of these, 12 textile factories have already been set up, while construction of 18 others is in progress.

The country’s booming textile exports have given Pakistan government a reason to celebrate amid the COVID-19 gloom. As per a Daily Times report, Pakistan’s garment and apparel exports grew 9.06 per cent to $11.35 billion in Q1FY21 from 10.41 billion in the corresponding period last year. The country’s low export base helped boost yearly exports even though exports on a month-on-month basis declined by 1.3 per cent, reveal the Pakistan Bureau of Statistics.

Textile exports grow in 10MFY21

During the financial year up to April’12, Pakistan’s textile exports grew to $1.337 billion. Exports by both value added textiles and basic textiles group grew in triple digits during the month. During the first 10 months, Pakistan’s textile exports grew 17 per cent to reach $12.7 billion. Exports of basic textiles such as cotton yarn and fabric also grew along with value added textiles. Growth in value-added category was dominated by knitwear, bed wear and home textiles.

Cotton shortage to hike interest rates, restrict supplies

The third COVID-19 wave has destroyed many major economies of the world. China and India are seeing a major drop in textile exports. In such times, Pakistan’s booming exports are proving to be a major boost to global textile market. However, Pakistan is currently facing an acute shortage of cotton supply, compelling ECC to allow duty-free cotton imports till June 30, 2021. Cotton scarcity of is likely to hike interest rates in the country besides restricting supplies. To overcome these, Pakistan needs to announce a new textile strategy soon.