The Danish Technological Institute (DTI) has rallied brands, manufacturers, academics and recycling experts from across the country to execute project ReSuit that aims to develop more circular solutions and influence sustainable consumer shopping habits. ‘ReSuit’ brings together brands like Bestseller, Aarhus University and the consumer behaviour specialist Naboskab with funds worth $2 million allocated by Innovation Fund Denmark.

The consortium will address the designing out of waste and nurturing promising recycling solutions. Simultaneously, consumer behavior specialist Naboskab is expected to map out a plan for better engaging consumers on the need for greater sustainability, in a bid to suppress the vast quantities of waste that’s currently being landfilled.

Anders Lindhardt, DTI says, Polyester accounts for half of all clothes fibers in the world. The consortium will develop technology based on chemical recycling to recycle the polyester materials so that they can return to the textile industry. By next year, Denmark will start sorting clothes separately, and by 2025 the rest of the EU will follow.

A new Euromonitor International report predicts China and Korea will lead the Asia Pacific’s recovery of luxury sales. The agency predicts sales in these two countries will hit pre-pandemic levels by late 2021. Of the two, China will account for 41 per cent personal luxury sales in the region by 2025. Hong Kong’s luxury market has been hard hit by a combination of COVID-19, political unrest and a lack of mainland Chinese tourists, reveals the Luxury Goods 2021.

Hong Kong’s personal luxury market contracted to $6.8 billion down from $11.7 billion between 2019 and 2020. On the other hand, Taiwan’s luxury market grew from $7.2 billion to $7.5 billion, reports Business of Fashion. Only affluent shoppers in Mainland China along with Taiwanese consumers could enjoy income growth during the year. China also emerged as Asia Pacific’s leading personal luxury market during the year, outpacing Japan. By 2025, China’s luxury sales are expected to increase by 10 per cent CAGR to account for 40 per cent of the global sector.

In March 2021, China’s cotton imports recorded a 3 per cent M-o-M decline to reach 280,000 ton, reveal Custom Statistics. However, on a Y-o-Y basis, China’s cotton imported grew by 40 per cent. As per China Textiles, since 2020-21, China’s cotton imports have increased by 90 per cent Y-o-Y to reach 1.94 million tonne of cotton. Most of these imports were from Brazil, India and West Africa, while cotton imports from Central Asia declined significantly.

China’s cotton import base was relatively low due to the pandemic in the first half of 2020 and its cotton consumption recovered rapidly due to the large-scale vaccination. However, in the first quarter of 2021, China imported 970,000 tons of cotton in the first quarter of 2021, with a year-on-year increase of only 59 per cent. Since 2020, China has been actively purchasing cotton from the US. However, due to the outbreak, it’s processing, delivery and transportation of some US cotton contracts have been delayed.

Chinese cotton spinning enterprises and traders have concentrated most of their deliveries from September 2020 to February 2021. In October 2020, the state issued an additional 400,000 tonne of processing trade sliding scale duty import quota, which can be extended to the end of February 2021. Its 1 per cent tariff quota in 2020 of some textile enterprises was concentrated between October 2020 to February 2021, and the quota is relatively sufficient, the cotton price is attractive, and the downstream domestic and foreign sales orders increase, which lead to the increase of foreign cotton imports;

Xinjiang cotton restrictions have caused some export-oriented enterprises and processing agents to increase the signing and purchasing of foreign cotton and yarn in order to avoid the risk of performance.

Bangladesh garment manufacturers and workers are currently living in perpetual terror of cancelled orders and deferred payments. The spread of new virus variants is delaying apparel recovery, making it tough for analyst to identify the duration and gravity of the pandemic.

Drop in global trade threatens Bangladesh exports

Recent data by United Nations Conference on Trade and Development (UNCTAD), estimates global trade value have dropped 3 per cent in the first quarter of 2020. Global fashion brands continue to cancel orders as their stocks pile up. As per a McKinsey report, stores and ware houses across the world house $192 billion worth of unsold stock at the moment. The industry’s profits fell 93 per cent in 2020, says a Textile Focus report. Textile exports from Bangladesh declined 17 per cent, reports BGMEA. The country earned $3.24 billion from apparel shipment though the amount is 1.98 per cent lower than a year earlier.

Goals to prepare for upcoming challenges

Around 85 per cent of Bangladesh’s exports include textile and fashion goods. The country was already facing challenges related to workers’ wages, job security, lack of digitization, longer lead times, etc, and was suffering from different challenges. Internal challenges mostly related to labor and employee wages and job security, lack of digitization, demand-supply imbalance, order cancellations or delays, etc. COVID-19 has accelerated these challenges, nudging brands to analyze current situation and prepare for upcoming challenges. As per the Textile Focus report, brands need to prepare themselves for upcoming challenges by setting short and long-term goals.

Enhanced supplier collaboration with flexible decision making

The short term goals of brands include collaborating with suppliers to support their staff and workers by protecting their jobs and rationing support facilities. Brands also need to develop a new process to develop worker’s skills and evaluate their performances. They need to share losses caused by order cancellations besides ensuring stability of their future orders. Companies need to enable flexibility and faster decision making. They need to enhance logistic capacities, address procurement-based issues and those related to any natural disasters like the pandemic.

Digitization and capacity building

Long term goals of fashion companies include digitizing and automating their entire production processes. They also need to focus on capacity building and investment for product diversification and development. Besides, they need to use data while making businesses. Companies also need to improve their risk assessment procedures and increase supply chain resiliency.

Bangladesh manufacturers need to develop supply chain risk management strategies such as a PPRR framework which involves identifying possible threats to the industry, analyzing data and impact of supply chain disruptions on inventory, supplier relations, selling and order, sales revenue etc, making emergency plans to focus on the activities according to level and magnitude; developing response strategies and identifying quickest recovery plans.

The current year will continue to be a tough one for Bangladesh textile industry. To tide over tough times, manufacturers and decision makers need to enhance their growth strategies, align themselves with global trends and focus on technological up gradation of their facilities.

The pandemic has had a dramatic effect on the shopping behavior of Chinese apparel consumers. As per Innovation in Textiles, almost 60 per cent consumers now prefer shopping online even though most physical stores have reopened. Chinese consumers have adapted themselves online shopping, and the only solution for brands is to boost their e-commerce operations.

This shift to online shopping was in motion even before 2020, the pandemic has simply accelerated this trend, says SGS, one of the world’s leading inspection, verification, testing and certification companies, headquartered in Geneva, Switzerland. With over 89,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world. As per the company, the acceleration has not only been dramatic but also global. In 2018, only 22 per cent of US citizens shopped online but in 2020 the figure shot up to 42 per cent. SGS does not expect the trend to reverse even after things return to normal.

Transparency and sustainability benefits of online retail

Online retailing offers many benefits to consumers. As per Chinese showroom agency DFO, a virtual showroom can reach a wider audience than physical ones. It can also offer high shoppers, wider choice, and a comfortable and safe shopping experience. DFO utilized livestreaming to reach 95 per cent of all Chinese buyers during Paris Fashion Week in 2020. This helped it double buyers and hit 80 per cent of its sales targets, with 95 per cent of those sales being made online.

The upcoming Paris Fashion Week Autumn/Winter 21/22 plans to continue with this trend by holding 93 of its shows online. Online shopping enables consumers to make better purchase judgments as it provides them complete product information. It also ensures transparency in their purchases and helps consumers choose sustainable and better quality products. Post pandemic, online shopping will continue to accelerate while offline retail is expected to drop between 8 to 13 per cent in Europe and between 22 and 27 per cent in the US.

Navigating complexities of China’s retail industry

China’s growing middle class and its extensive social media infrastructure have created a highly digitalized retail ecosystem in the country. The Chinese online retail industry accounted for a quarter of all its sales in 2019 and was estimated to be worth $1.5 trillion. Its omnichannel mode of retail uses a wide variety of mechanisms to sell to consumers.

One such mode is the SGS China Solution which helps brands navigate the complexity of national and international regulations. The SGS China Omnichannel Solution trains brands to comply with product development regulations, rules of material and product testing, label reviews, factory audits, etc. It also helps brands engage consumers through livestreaming events and trusted certification labels such as the SGS Independently Checked Mark (IC Mark). Another of its benefits includes the facility to analyze return and failure rate and check samples.

Grasim Industries a flagship company of the Aditya Birla Group has teamed up with Taiwan-based Nanliu Enterprise Co. to donate 50,000 masks in Nagda, Madhya Pradesh (India).

As per Apparel Resources, the partnership between the renowned Indian apparel manufacturing firm and Taiwanese non-woven manufacturing firm could not have come at a more crucial time than now when the whole world is battling the deadly pandemic.

The CSR team at Grasim Industries initiated the distribution of the three-layered high-quality masks manufactured by Nanliu Enterprise in Nagda region and its surrounding villages.

The CSR activity was facilitated by Samir Gupta, Managing Director Business Coordination House (BCH), who represents leading non-woven associations across India.

Grasim Industries has also been helping with RTPCR testing, vaccination, disinfection spraying in rural and urban areas, in addition to providing food packets, grocery kits and medicine/healthcare for the benefit of thousands of villagers.

Notably, at Nagda, the CSR projects are operational in 55 villages, where the company reaches out to 2.15 lakh people every year.

Despite widespread disruption to its business in the last year due to COVID-19, Helena Helmersson, CEO, says the company has adapted rapidly to shifting market conditions by accelerating its digital transformation and increasing efforts to make its products more sustainable.

As per Women’s Wear Daily, H&M’s sales over the three months ending February 28 declined by 21 per cent, reflecting ongoing choppy trading conditions for fast-fashion retailers. The group, which operates Cos, Monki, & Other Stories, Arket and Weekday in addition to H&M, has been cutting costs and renegotiating leases for its retail network since the pandemic struck. Before COVID-19, it had embarked on an overhaul of operations to improve digital services and spruce up its offer. Signs of improvement had begun to emerge as the crisis hit.

Riri Group has launched its Spring/Summer 2022 collection of zippers made from recycled polyester. As per Sourcing Journal, the recycled polyester used in tapes for zips is made from recycled polyester fibers—a blend of 20 per cent pre-consumer waste and 80 per cent post-consumer waste. All the recycled polyester is GRS (Global Recycled Standard)-certified. It will help the company cut its carbon footprint by 3 per cent, or the equivalent of 169 return flights from Geneva to New York.

The collection offers three different ranges. The Rejoice range offers zippers made in bright and vibrant colors of Buenos Aires. The range focuses on zips and buttons of natural materials. The range also includes Copper jeans buttons with a special water-based paint finish as well as hemp-derived bio-plastic eyelets. Buttons, chains and pullers in the collection are either made of gold, silver or stainless steel while tapes are made with refined materials such as leather and satin.

In a notification pertaining to payment of wages and reopening of factories in Yellow zones, Ith Sam Heng, Cambodia’s Minister of Labor and Vocational Training said, workers need not get vaccinated in order to return to work. He assured that, any discrimination against non-vaccinated workers will be investigated by the labor inspector of the ministry.

The letter also urged the ministry to pay 50 per cent of wages due to employees for April as well as other benefits by May 14. The General Manufacturers Association in Cambodia (GMAC) also said, factories producing textiles, garments, footwear, travel goods and bags will be subject to the conditions first discussed by the Labour Action Committee (LAC) at a meeting on May 6. Workers employed in factories located in the Yellow zone will be split into two groups, with one group working the first two weeks of the month and the second group finishing out the month.

Workers will be paid full salaries. However, they will work for only two weeks, said Ken Loo, Secretary General, GMAC. All workers will be allowed to work regardless of their vaccination status, but priority to work the first two weeks will be given to vaccinated workers, he added. The GMAC also reiterated the necessary measures that must be followed by factories in Yellow Zones. These included worker rotations, measures to combat the spread of COVID-19 and ensuring that worker transportation services halve the amount of passengers for each trip.

It also stated that, according to law, if a COVID-19-positive case is found at a factory or enterprise, the capital or provincial governor may suspend operations in a portion of the factory for two days.

As per a study by the Centre for Policy Dialogue (CPD), government stimulus does not prevent 25 per cent of Bangladesh garment factories from shedding jobs. The government distributed Tk 105 billion in March last year to RMG factories for paying workers’ wages and allowances, reports Textile Today. Disappointingly, the survey discovered the amongst the workers who lost jobs, 59 per cent received only their salaries while 18 per cent were laid off without any wages. The survey was conducted amongst 102 employers, 301 employed workers, and 100 unemployed workers from the RMG industry of Dhaka and Gazipur districts.

The survey discovered normal income for workers deteriorated by 37 per cent. It was 39.9 percent for jobless female workers. While household income for employed workers declined by 0.7 per cent. However, during the pandemic uncertainty, 62.7 per cent factories received government support for four months, 25 per cent of them still sacked their employees.

However, 82 per cent of RMG factories said they have a set of guiding principles to operate. The report also said more than 67 per cent factories applied, and 62.7 per cent received subsidized credit for four months. 42 per cent received the help of late payment for utility bills.

A small section of non-member factories also received credit for a breach of the conditions. Such deviation, however, allowed a section of factories to pay wages to workers, the study said. The CPD said the oversight functions of authorities need to ensure that factories do not benefit by depriving their workers. While the labor and employment ministry, the Bangladesh Bank, the BGMEA, and the BKMEA, which were involved in scrutinizing and finalizing the list of workers, have responsibilities in this regard.