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Major clothing brands, that are members of the Better Cotton Initiative (BCI) – a governance group promoting high standards in cotton production – are facing a nationalist backlash in China for previous statements on dropping use of Xinjiang cotton over allegations of forced labor in the region.

The call to boycott clothing company H&M (Hennes & Mauritz) erupted after the brand’s rejection of Xinjiang cotton was denounced by the Communist Youth League on Welbo. The Swedish brand was taken down from online stores and disappeared from online maps.

However, China has decided to show restraint on the issue. Hu Xijin, Editor, Global Times, publicly advised state institutions and media accounts to refrain from participating, act with restraint in denouncing the Western businesses, and avoid leading the narrative. The pullback indicates the government’s concern that the boycott may ultimately be too costly to continue, since none of “China-insulting” brands have made apologies despite the pressure.

This is not the first time consumerism has ultimately triumphed over nationalism in China. Despite having been branded as “anti-China” and seeing their contracts terminated by Chinese celebrities, Coach, Versace, Givenchy, Swarovski, and Lancome have picked up new Chinese celebrities as brand ambassadors.

  

Nearly 15 fashion companies, including high-end brands, have been unable to meet their environmental, sustainability, and social targets of the Paris climate agreement and US Sustainable Development Goals, says a new report by The Business of Fashion.

A report by Economic Times reveals, the fashion publication rated companies out of 100 in their attempt towards meeting the 16 targets listed in the UN Sustainable Development Goals and Paris Agreement on emissions, waste, workers' rights, water, and materials.

Twelve sustainability experts advised the online publication on the methodology of the report. The companies were also ranked on their transparency and the amount of information available about a company's practices.

According to the report, the companies were more interested in disclosing information on their targets than concrete actions towards fulfilling them.

Luxury goods company, Kering, topped the list with 49 points, while sports equipment company Under Armor ranked the lowest with nine points. The average score was 36 points.

Kering and Nike performed well on transparency, while PVH Corp, Levi Strauss, and VF Corp ranked highest in their efforts to reduce emissions.

Luxury brands like Hermès, LVMH and Richemont scored lower than high street fashion companies H&M, Inditex, Gap and Levi Strauss in all the six categories - emissions, waste, workers' rights, materials and transparency.

Retail companies, including Fast Retailing, Richmount, also ranked the lowest in all categories along with Under Armour, except it scored well in workers' rights.

According to the report, companies, on average, performed the worst on waste and workers' rights.

Tuesday, 30 March 2021 13:00

UKFT saddened by US’ tariffs on exports

  

US’ warnings of levying 25 per cent tariffs on UK exports has disappointed the UK Fashion & Textile Association (UKFT). As per reports, US’ has announced its intention to levy these tariffs in retaliation for a UK tax on technology firms. The duties are designed to raise $325 million, the amount the United States believes the UK tax will raise from US technology companies

The tariffs are now subject to a consultation in the US over the next few weeks.

The UK exports include women’s and girl’s dresses, men’s and women’s coats, men’s shirts, ties, shoes and jewellery, according to a list published by the US administration.

With the industry still struggling with the impact of COVID-19 and understanding the new trade arrangements with the EU, an additional burden on UK exports couldn’t come at a worse time, said Adam Mansell, CEO, UKFT

  

In its 2021-22 budget proposals, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged for steps to promote industrialization and enhance exports.

As per Live Mint, AdeebIqbal, Vice Chairman, PRGMEA has urged the government to make the next budget business-friendly, lower cost of production, allow early refunds and relax impoer policy for industrial raw material.

He urged exporters to exploit the GSP Plus status to meet the export target, PRGMEA also sought revival of statutory regulatory order (SRO) 1,125 in its true shape, reintroducing the system of no payment no refund of sales tax for the five export-oriented sectors of textile, leather, carpets, surgical and sports goods for a year.

All stuck up claims of exporters' customs rebates and sales tax rebates should be released, it said. The apparel industry should be allowed to import fabric under SRO 492 scheme instead of the Duty and Tax Remission Scheme (DTRE) as the country's weaving industry is unable to fulfill the demands of fashion wear with foreign buyers demanding new garments based on G-3, G4 and technical fabric material.

Iqbal also proposed exemption of cotton yarn and fabric, the major raw material of the apparel sector, should be exempted from all duties and taxes to encourage value addition. PRGMEA suggested that all taxes and duties on import of polyester staple fiber, including anti-dumping duty, should be abolished to reduce the cost of production to compete in the market.

Tuesday, 30 March 2021 12:53

DMR Group unveils the Trend Lab Project

  

A leading company in communication analysis in the world of luxury, the DMR Group has unveiled the Trend Lab project as a natural evolution of the asset of data and reports that are processed daily through web, social and print channels for over 400 clients included in the company's portfolio.

DMR Trend Lab is a hub of ideas and in-depth analysis that follows the company’s objective to share its know-how with a broader audience, in order to foster an inclusive exchange and dialogue on the present and future of the industry.

The extended data volume and the exact precision of the metrics produced by DMR, combined with endless possibilities of evaluation of specific issues and trends, now also act as a space for ongoing connection and conversation. Trend Lab’s activity will further expand the Group’s analytical horizons providing new inspirations and viewpoints for opinion leaders, business professionals and journalists from diverse publishing houses.

The periodical reports developed by the Trend Lab team cover a variety of luxury & lifestyle sectors from fashion to entertainment. Most recent trend reports include an investigation of the main Beauty Ambassadors in Asia, the analysis of the impact generated by International Women's Day 2021 on social media, and the quantification of the digital engagement reached by the 71st edition of the Sanremo Festival.

Starting in April, DMR Trend Lab will release the thematic reports, on a monthly basis, to a national and international mailing list for editorial use.

  

The disruptions in China’s supply chains due to the COVID-19 pandemic prompted many Vietnamese enterprises to invest in production of textile materials to satisfy local and export demand. As per reports, in March, Song Hong Garment and Textile Company kicked off construction of its factory in Nghia Phong Commune in Nam Dinh with 40 sewing and weaving production lines in 75,000 sq mt with investment totaling VND600 billion ($ 26,034,523). The factory, scheduled to be operational in November, is expected to help increase the company’s revenue to VND5 .5 trillion. Prior to this, Trung Quy started operations at its weaving and dyeing facility with annual production capacity of about 2 million meters in Hai Son Industrial Park in the Mekong Delta Province of Long An.

Simultaneously, Nghe Tinh Textile Company got the greenlight to operate a OE yarn manufacturing facility to meet demand of the textile industry producing 18,720 tonne of thread yarn per year. The VND600 billion plant was built in Nam Hong Industrial Park in the Central Province of Ha Tinh’s Hong Linh Town.

In addition to locally-invested factories, Vietnam has also completed Foreign Direct Investment-invested fabric projects including Hong Kong Texhong Textile knitting plant in Texhong Hai Ha Industrial Park in the Northern Province of Quang Ninh with the total investment of $214 million.

According to the Vietnam Textile and Apparel Association (Vitas), in 2020, the Vietnamese textile and garment sector achieved revenue of $35 billion; yet, it spent nearly $20 billion on imported materials including $12 billion on fabrics. Therefore, newly-built factories both help Vietnam to enjoy FTA’s preferential tariff and create more employment for local laborers.

Vu Duc Giang, Chairman, Vitas, said, these newly-built factories have been reducing the shortage of material; however, he noted that enterprises should well study rules and road map for tariff cuts on many goods to most take advantage of FTA.

  

Raja M Shanmuugham, President, Tirupur Exporters Association (TEA) assured stakeholders Union Textiles Ministry is working to resolve the crisis arising out of the frequent rise in yarn prices and disruption in supply chains. Shanmugham hoped to come out with a positive solution to the crisis. He said, Indian cotton prices have gradually reduced in line with the reduction in international cotton prices. He expected normal price range to prevail in the near future.

Shanmugham requested the ministry to consider TEA's plea for reduction of yarn prices and also ensure supply of yarn in time as per the commitment given to the members of the association. This could help mutual growth of both sectors in the long run, he added.

Shanmugham hoped the new financial year would give business confidence, prosperity to all exporting units and the stakeholder units connected with exporting units. He appealed to exporting units and the stakeholders units to be cautious and ensure vaccination of members, their employees and others connected with the industry, who were aged above 45.

  

Ministry of Finance, Japan informs, the country’s garment imports declined on a yearly basis to $1.85 billion in January ’21 as compared to $ 2.66 billion imported during the same month in 2020. As per Apparel Resources, shipments by all major manufacturing destinations declined on a Y-o-Y basis, while some of them noted growth on M-o-M basis. China’s shipments declined by 3.60 per cent on a M-o-M basis and by 31.82 per cent on Y-o-Y basis. Vietnam’s shipments plunged by 7.17 per cent on monthly note and 32.17 per cent on yearly note to clock $ 283.97 million.

The value of India’s apparel shipments grew 96.63 per cent on a M-o-M basis to value $ 21 million in January ’21 while it declined by 23.82 per cent on a Y-o-Y basis from January’ 20. Indonesia shipped apparels worth $65 million in January ’21 to Japan – marking 8.70 per cent over December ’20. Bangladesh exported apparels worth $77 million in January ’21, its value declining by 8.77 per cent on monthly note and 27.09 per cent on yearly basis.

  

Fashion Week Tel Aviv plans to celebrate 10th anniversary by focusing on new generation of local designers. For the sixth year, Fashion Week Tel Aviv will host a slew of eight young designers supported by the national lottery, MiFal HaPais, with two group shows. With 28 shows the week will also include more established names like Vivi Bellaish, Alon Livne, Dorin Frankfurt and Kedem Sasson. All events in the season are pre-recorded, shot at the Eretz Israel Museum, known for its archeological collections.

The season also includes a collective show from students at Shenkar, the advanced engineering, design and art college. Moreover, tapping into the Israeli high-tech sector, and the drive for sustainable fashion, the season will be supported by Kornit, the advanced digital textile printing market leader, which will encourage emerging designers to use its innovative technology to produce their collections on-demand.

Motty Reif, Founder, Fashion Week Tel Aviv, will officially open the season alongwith ubermodel Bar Rafaeli.

  

China branch of the global trade body Better Cotton Initiative (BCI) has denied finding any signs of forced labor in Xinjiang province. Li Xuejun, Deputy Director, Standing Committee, Xinjiang Uyghur Autonomous Region said, it focused on improving sustainability across the country. The organization runs field programs in partnership with qualified local actors to deliver positive, measurable change to the environment and to the livelihoods and wellbeing of farming communities.

The initiative is currently focusing its efforts on Hubei, Hebei, Shandong and Gansu provinces. It supports over one 100,000 smallholder farmers in these provinces and is engaging in a constructive dialogue with all interested local actors across China. BCI represents nearly 2,000 member firms and brands around the world, from clothing retailers to cotton farmers. Some multinational companies like H&M and Nike, members of the BCI, are facing a backlash in China after they announced they were to suspend sourcing cotton from Xinjiang.