The fallouts of the pandemic COVID-19 have badly impacted the prices of Bangladesh’s apparel exports to the US.

The price of imported apparel in the US declined to $2.60 per Square Metre Equivalent (SME) in February this year against $2.95 per SME in February 2020, according to data from the US Department of Commerce.

The US imported $5.39 billion worth of garments in February this year as against $5.91 billion in the same month of 2020, reports Textile Today.

Last year, during the pandemic time, prices of Bangladeshi-made t-shirts declined in the US markets although the prices of the same t-shirt made in Vietnam were almost double those of Bangladesh to the American markets.

In the US market, the price of a dozen Bangladeshi T-shirts made from cotton fell by 20 percent to $17.99 in 2020 from $22.43 in 2019 while the price of the same product made in Vietnam declined by 17 percent to $31.9 in 2020 from $38.2 in 2019.

After the third quarter of the fiscal year 2020-21, the export earnings from RMG stood at $23.49 billion which was $25.95 billion during the same period of FY2018-19, indicating a 9.49 percent decline equivalent to a short of $2.46 billion.

Knitwear export struggled to retain 0.35 percent growth in March 2021 over March 2019; the average growth of knitwear export for July-March 2020-21 than July-March 2018-19 is -1.15 percent.

Woven garments is facing the toughest time ever, while export has suffered double-digit decline since August 2020, and in March 2021 compared to March 2019 woven export fell by 27.70 percent. The nine-month average growth between 2021 and 2019 stands at -17.62 percent.

The price trend continues to worsen as March 2021 posts a 5.11 percent decline in unit price compared to March 2019.

Fashion Roundtable, the secretariat for the All Party Parliamentary Group (APPG) for Textiles and Fashion, has put forward 11 recommendations to help mitigate Brexit's impact on the UK fashion and textile industry.

The APPG has called for the government to; add garment workers to the Shortage Occupation List for visas and reconsider visa requirements for fashion creatives, as well as reinstate VAT refunds for overseas tourists and extend it to EU visitors. It has also called for the government to address issues relating to the rules of origin, which stipulates that goods sent to the EU can only be tariff-free if they are manufactured in the UK.

It has also urged the government to consider improving the ease with which fashion creatives can travel around the EU for business purposes. As a result, it has called for the ATA Carnets "Admission Temporaire/Temporary Admission", a customs declaration that permits the temporary export of goods or equipment, to be subsided or scrapped. It has also proposed a cabotage exemption for the creative and fashion sector which would mean that large amounts of equipment can be moved across borders easily.

The APPG has called for the government to match the £23m package of export support the fishing industry and provide tax relief for brands who manufacture in the UK.

Pakistan emerged top apparel exporter to the world in February’21, reveals Sourcing Journal. The country increased its apparel supply to the US amidst COVID-19, says Abdul Razak Dawood, Adviser to Prime Minister. On the other hand, apparel exports by India, Vietnam and Indonesia to the US declined both in value and volume terms.

Pakistan government’s policies for the textile industry played a significant role in enhancing its exports. However, the country is facing a shortage of seven million bales of cotton. Giving in to the pressure from the textile industry, the government recently allowed duty-free import of cotton yarn.

During the pandemic, the medical textile industry also grew as bed sheets were discarded frequently, says Karim Punjani, Head, DH Corporate Research. The pandemic has also accelerated countries’ need to diversify their supply, offering Pakistan an opportunity to boost its exports. Pakistan can encourage foreign direct investment in this sector by inviting companies to move their factories from other countries to the free economic zones in Pakistan, he adds.

The 35 per cent jump in revenues has encouraged Under Armour to raise its expectations for annual profit and sales. The brand posted 32 per cent increase in quarterly revenues from North America owning to the rollout of COVID-19 vaccines and new rounds of government stimulus. Revenues from international segment surged 58 per cent.

In the upcoming year, the brand aims to spend more on marketing, stores and website, to take advantage of recovering markets, including North America, China and Germany. It expects marketing and incentive compensations to make up about three quarters of the increase in costs this year. Its full-year adjusted earnings per share are expected to increase between 28 cents and 30 cents while full-year revenues are expected to rise by high-teens percentage.

The company forecasts second-quarter revenue to rise about 70 per cent after store closures hammered sales a year ago. Its first-quarter net revenue rose to $1.26 billion, beating estimates of $1.13 billion, according to IBES data from Refinitiv.

Hugo Boss managed to restrict sales decline to 10 per cent in the first quarter of the current financial year. The group also recorded positive EBIT of €1 million during the quarter. It was helped by the ongoing strong dynamic in mainland China which also led to its online business surging by 72 per cent. However, retail sales declined 14 per cent in Q1, although wholesale rose 1 per cent (both currency-adjusted). The wholesale channel benefited from a “robust” order intake for the SS21 collections of Boss and Hugo. While Boss and Hugo posted currency-adjusted sales declines of 8 per cent and 6 percent, respectively, their casualwear sales returned to mid-single digit growth.

Currency-adjusted sales in Europe decreased 17 per cent to €299 million. The company closed almost half of its shops during the first three months of the year. Weakness in several key markets, including the UK, France and Germany, added to its weak performance.

Sequential improvements in important US business, as well as a robust performance in wholesale, boosted sales during the quarter. American currency-adjusted sales declined by only 11 per cent at €80 million as consumer sentiment rebounded. The robust demand for its product in China helped drive sales in Asia-Pacific by 39 per cent to €101 million.

After 10 per cent fall during January ’21, India’s cotton yarn exports increased by 2.32 per cent on Y-o-Y basis in February ’21, says Ministry of Commerce and Industry stats. In February ’21, India exported cotton yarn worth $266.70 million as against $260.60 million exported in February ’20. As per Apparel Resources, most of this yarn was exported to China and Bangladesh.

China increased yarn sourcing from India during February’21 while Bangladesh noted a steep decline in its imports. Bangladesh’s imports declined by 18.80 per cent on yearly basis to $59.94 million while China’s imports increased by 92.07 per cent to $81.28 million.

As per SIMA, India’s cotton yarn exports peaked in 2013-14 with 1,313.43 million kg. During 2019-20, exports fell to 959 million kg, primarily because of absence of incentives, which were given to the sector earlier.

Welcoming the revised EU industry Strategy, Dirk Vantyghem, Director General, Euratex urged for more consistency by the EU across different policies. There is a need to establish global rules to ensure fair competition, and ensure these rules are properly implemented and controlled, Vantyghem said. He also welcomed the proposal to address distortions caused by foreign subsidies in the Single Market. The industry has an opportunity to build a new business model based on innovation, quality, sustainability and fairness, he added.

Euratex works towards creating a favorable environment within the European Union for design, development, manufacture and marketing of textile and clothing products. It focuses on developing an ambitious industrial policy, effective research, innovation and skills development, free and fair trade and sustainable supply chains along with with EU institutions and other European and international stakeholders.

Pushed over the edge by COVID-19 lockdowns, British department store Debenhams plans to permanently close remaining stores by May 15. The retailer has already closed 52 store closures by May 8. May 15 closures will include stores in Belfast, Birmingham, Bristol, Manchester, Liverpool, Newcastle and Swansea Since entering liquidation process in December, Debenhams has been holding closing down sales, offering up to 80 per cent discount on fashion and homeware.

Though it will shut physical stores in the UK, its online operations will continue under the administration of online fashion retailer Boohoo. Debenhams was founded in 1778 as a single store in London and grew to 178 locations across those countries, also owning the Danish department store chain Magasin du Nord. In its final years, its headquarters were within the premises of its flagship store in Oxford Street, London. The range of goods sold includes clothing, household items, and furniture.

Sportswear maker Adidas plans to auction its Reebok to prevent it from being affected by a political row over possible forced labor in China's western Xinjiang region. As per Fashion Network, Adidas bought the US fitness label in 2016 to compete with arch-rival Nike. However, its sluggish performance is compelling Adidas to sell the brand for around €1 billion ($1.2 billion). Adidas expects China’s Anta Sports and Li Ning to bid for the brand in the first round. It also hopes to attract financial investors including TPG, Sycamore, Cerberus and Apollo.

However, Chinese buyers may not be interested in this proposal due to consumer’s boycott of Western fashion brands in the country over comments they did not use cotton sourced from Xinjiang. In April, Shanghai Half Marathon scrapped plans to provide runners with Adidas-branded T-shirts.

Adidas is marketing Reebok off 2025 earnings before interest, tax, depreciation and amortization (EBITDA) of more than €200 million with expected annual revenue growth of 10 per cent. The brand’s recent collaborations with celebrities like Cardi B and a refreshed focus on women's apparel have put the brand in a better place.

Cambodia exports of garments, footwear and travel goods declined 6.48 per cent to $2.410 billion during the first quarter of this year, shows data from the General Department of Customs and Excise of Cambodia. Garment exports 6.43 per cent to $1.775 billion while footwear slumped 7.33 per cent to $316 million, and travel goods – including suitcases, backpacks, handbags and wallets – declined by 5.89 per cent to $319 million.

As per Ly Khunthay, President, Cambodia Footwear Association, the ongoing global COVID-19 epidemic has shut down the tourism sector of each country, resulting in plummeting demand for footwear. He hoped vaccination campaigns around the world, coupled with gradual reopening of tourism in major countries would lead to increased orders of Cambodian-made footwear in the second half of 2021.

Sin Chanthy, President, Cambodia Logistics Association (CLA) says, a shortage of empty shipping containers has increased the costs of transporting goods abroad from Cambodia since the second quarter of 2020. This is affecting all orders, especially to distant destinations such as the US and Europe, he added. In 2020, Cambodia exports increased by 16.72 per cent to $17.21537 from $14.74874 billion in 2019, said the Ministry of Commerce in its 2020 annual performance report.

Garment exports declined by 10.24 per cent to $7.42028 billion while footwear exports declined by 11.69 per cent to $1.11673 billion and travel goods exports declined by 10.58 per cent to $964.7 million.