After two years of the Central Bank of Nigeria (CBN) blocking traders from using forex to import textiles, Nigeria’s cotton market has witnessed a marginal rebound. Data from USDA analyzed by Premium Times shows, cotton production and consumption rose 7.5 per cent in volume in 2020 after a decline in 2019. In 2019, Nigeria’s cotton production stood at 920,000 metric tonne while consumption stood at 805,000 metric tonne. In 2020, a year after, this surged to 1.6 million metric tonne and 989,000 metric tonne.

As per Anibe Achimugu, President, National Cotton Farmers Association of Nigeria, forex restriction on textile imports was a game-changer for the industry. The ban increased demand for Nigeria’s cotton, which meant farmers now have a market for their produce.

Cotton is produced mostly in Zamfara, Katsina, Borno, Kano, Adamawa, and Bauchi States. The Central Bank also provided soft loans to cotton farmers. This year alone, almost 130,000 cotton farmers benefited from the bank’s anchor borrowers program.

Naveena Denim Mills has launched a new denim range made with Lycra’s Wraptech 2.0 tri-core technology fabric. The fabric combines the high stretch of Lycra fiber with the exceptional recovery and low shrinkage of Lycra T400 fiber. Wraptech 2.0 denim fabrics are adaptable to any silhouette, from the traditional five-pocket and dressed-up denim to rugged workwear jeans and comfortable work-from-home styles. They have excellent shape-retention and recovery along with a better elongation, recovery, and shrinkage compared to other fabrics with the same elasticity level. The fabrics stand up to the same washes and finishes of a traditional rigid fabric, without sacrificing the comfort of a stretch jean.

The fabrics also have superior stretch and recovery, allowing for a wider fit window. One jean can fit a range of shapes and sizes. They are more durable and maintain their shape and fit longer between washes. Established in Karachi, Pakistan in 2005, Naveena Denim Mills specialises in manufacturing premium yarn and denim fabrics, constantly seeking the ultimate union of form and function through creative engineering.

The government aims to make India self-reliant in silk in the next two years, said Smriti Irani, Minister of Textiles and Women & Child Development at the inaugural session of the Karnataka Vastra Tek - Apparel & Textile Conclave. The conclave was organized by the Department of Handloom and Textiles, Government of Karnataka in association with FICCI Karnataka State Council

Irani said, Indian government dedicated Rs 2,000 crore for the development of silk under the Silk Samagra Program. She hoped the industry gives Karnataka ideas, proposals or initiatives to make India Aatmanirbhar in silk. Highlighting the importance of the handicrafts sector, Irani said the government distributed 'Pehchaan Cards' or identity cards to over 26,000 artisans in the state.

She also proposed a digital opportunity on lines of GoM portal for the marketing of artisans and weavers of Karnataka.

At a virtual meeting platform organized by AEPC, Sanjiv Ranjan, Indian Ambassador to Columbia said, the country offers huge business opportunities for apparel exporters particularly in fashion segment with domestic sales of about $7 billion AEPC had organized the virtual meeting platform titled 'India-Colombia Synergies in Apparel and Textiles', to explore export opportunities in the South American nation.

A Sakthivel, Chairman, AEPC said, India's apparel exports to Colombia is just 3 per cent of its global imports. This does not really reflect the real strength of the sector. He advised apparel exporters to focus on Colombia's fashion industry that accounts for 9.4 per cent of the country's industrial GDP and employs about 600,000 people. He informed participating Colombian brands and buyers that through its virtual platform, the council will work as a bridge between the Indian apparel exporters and Colombian apparel importers.

To grow its Connected Retail network, Europe’s leading fashion retailer, C&A plans to join Zalando, Europe’s leading online platform for fashion and lifestyle. Zolando has over 3,000 active stores, selling to millions of Zalando customers online.

In Germany, Zalando is adding Hermes as a second carrier option, to offer new store partners greater flexibility in the on-boarding process. Internationally, Connected Retail is adding its ninth market to the program. As of today, Austrian retailers can connect their stores to the platform and sell to millions of Zalando customers. Stores can easily connect their stock to the platform: Zalando provides the software to connect, online content, payment services, customer care and dedicated support through a personal account manager and many other services.

An integral part of Zalando’s platform strategy, Connected Retail has become part of the solution for retailers during the coronavirus crisis and is currently available for retailers in Germany, the Netherlands, Poland, Spain, Sweden, Norway, Denmark, Finland, and Austria. Until the end of 2021, Zalando aims to grow its network of retail partners to over 6,000 active stores.

Rebecca F Dye, Maritime Commissioner, Federal Maritime Commission (FMC) assured Steve Lamar, President and CEO, American Apparel and Footwear Association (AAFA) on issuing information demand orders to ocean carriers and marine terminal operators (MTOs) to determine if legal obligations related to detention and demurrage practices are being met.

Earlier this month Lamar urged FMC to take immediate steps to stem the surge in contract violations and the spike in detention and demurrage charges. Lamar said the association’s members are already battling a huge slump in demand that has led to store closings, furloughs, layoffs and bankruptcies. A convergence of issues has created unprecedented shipping problems and delays for beneficial cargo owners (BCOs), truckers, ports, terminals and carriers. The association’s members have had to pay unexpected and unplanned surcharges, premiums, and/or spot rates to get their cargo on ships. In addition, they faced a spike in detention and demurrage charges for situations completely out of their control.

The FMC orders are being issued under Dye’s authority as the Fact Finding Officer for ‘International Ocean Transportation Supply Chain Engagement.’ Targets of the orders will be ocean carriers operating in an alliance and calling the Port of Los Angeles, the Port of Long Beach, or the Port of New York & New Jersey. Marine terminal operators at those ports will also be subject to information demands. The demand orders will also require carriers and MTOs to provide information on their policies and practices related to container returns and container availability for exporters.

Gap has threatened landlords of shutting all stores across the UK in July and becoming an online-only business, resulting in the loss of thousands of jobs. As per Retail Gazette, the US fashion retailer has 95 stores across the UK. In October, it announced plans to shift to a franchise-only model. However, it is putting increased pressure on landlords as it tries to break lease contracts early.

In December, the brand announced plans to close one of its two stores on Oxford Street in central London. It operates large flagship stores down the famous shopping street opposite Bond Street underground station. Their closure reflects the difficulties the apparel retailer faces due to the COVID-19 pandemic.

As of February 1, 2020, Gap’s UK retail sales fell by 9.5 per cent to £195.1 million that year, while it produced operating losses of £40.7 million.

On the occasion of EU Industry Days, Euraterx urged the European Commission and member states to set the right conditions to improve competitiveness and resilience of textile and clothing industry. Euratex urged the European Commission and member states to introduce effective market surveillance, avoid unfair competition and guarantee level playing field. It should also support the transition towards a more sustainable and digital industry through specific funds and programs. Moreover, the sector should reduce future risks by diversify its supply chains and promote nearby production.

Euratex also proposed a market proof approach for Europe when moving towards sustainability & circular economy. It should also help education systems and institutes to develop comprehensive and leading-edge T&C knowledge. It can do so through LongLife Learning, Erasmus + and the Pact for Skills Initiative.

Lastly, Euratex advised Europe to have a coherent approach when legislating in different areas. All policies, from the Green Deal to the Sustainable Chemicals strategy, from the EU Trade strategy to the EU Industrial one, should be consistent and not hamper industry.

As the voice of the European textile and clothing industry, Euratex works to achieve a favorable environment within the European Union for design, development, manufacture and marketing of textile and clothing products.

COVID-19 has reemphasized the importance of quality, especially while buying FMCG products. Earlier, Indian consumers let discounts determine most of their purchase decisions. However, now they are looking for value-added products, says a report by Bengaluru-based research firm RedSeer Consulting. As per Business Insider report, India’s overall e-commerce transaction value fell from April to June 2020, peak months of lockdown. However, it soon picked up as people avoided venturing out of homes and preferred buying their essentials online. RedSeer Consulting expects this trend to continue in 2021, advancing the growth of the online shopping in India, and compelling brands to focus on their online operations, says Mrigank Gutgutia, Director.

Gutgutia categorizes Indian online shoppers into two types. One, who buy their usual products irrespective of large discounts being offered online, and other who focus more on the quality of products. Gutgutia says, this phenomenon is common across all tiers of cities.

Small cities focus on safety, quality

Consumers in Tier II and III are opting for online shopping because of the safe shopping experience it offers and guarantees on product quality. Discounts are one of the last reasons for shopping online in these cities, adds Gutgutia. Essentials were one of the most sought after categories during the pandemic. The category saw the highest average order value growth last year as more people in Tier II and III chose value over price, says RedSeer Consulting. This is pushing more Flipkart’s consumers to move away from being trial only to long-term consumers. The e-tailer aims to focus more on subscription only program in 2021.

DTC brands gain popularity as consumers opt for organics

Consumers are also moving away from aggregator e-commerce portals to Direct to Consumer brands as witnessed by the growth in revenue of brands like boAt, MamaEarth last year. As Mangesh Panditrao, Co-Founder, Shoptimize, a startup which helps businesses come online, says, COVID-19 has brought the focus back on quality and human wellness. It has reduced the importance of product price by increasing the popularity of organic food and wellness products, locally sourced produce, sustainably farmed goods, and vegan/cruelty-free products. The company’s clients have seen a 40 per cent increase in AOV (Average Order Value) this fiscal compared to last year.

Gutgutia believes this trend of online spending won’t change soon as more people plan to increase their spending on online shopping in 2021 too.

The British fashion industry is facing its toughest times as noted designers including JW Anderson, Erdem and Christopher Kane have opted out of this year’s London Fashion Week that begins today. And Burberry, which plans to participate in the show, will release only its menswear collection, deferring the release of women’s wear to a later date, says a report by the Womens Wear Daily.

In times like these, the industry is looking outward for solutions. British Fashion Council has roped in new sponsors in its tech companies, TikTok and Clearpay, besides launching London Fashion Week in Seoul, South Korea, through collaborations with multibrand retailer Boon the Shop. Supported by the British government’s Great Campaign, this project aims to showcase 11 designers including Alessandra Rich, Alighieri, Charles Jeffrey Loverboy, JW Anderson and Wales Bonner. It will include an online forum, to be co-hosted by BFC and WWD Greater China that will focus on British fashion businesses in the region.

No single advantage to British brands

The industry is currently in a mess as fashion houses are being made to fill out multiple value-added tax forms; decide who pays VAT, and bankroll the extra charges on materials and supplies they import from regions such as Asia, and then later export as finished goods to the EU.

The industry is not offering a single advantage to brands, says Stefano Martinetto, CEO and Co-Founder, Tommorrow London, which had to take extra warehouses in the UK besides paying duties on all deliveries to retailers outside UK. This doubled operational costs. However, the brand remains committed to protecting customers’ rights.

Another brand Temperley London had to organize a logistic platform in Italy to ensure the consistency and competitiveness of deliveries. Large brands such as Burberry, Next and Asos have to pay trade experts to pick through the complex rules of origin and VAT costs of doing business with Europe; while businesses sourcing and manufacturing outside the UK have to pay additional costs for everything from couriers to suppliers. In addition, these brands face delivery delays as the government has not expressed clear support to the industry.

European retailers ‘wait and watch’

European retailers are also being watchful while buying British goods. Luxury Italian retailer Modes Group is following the digital London Fashion Week before it decides to buy from British brands while Federica Montelli, Head-Fashion, La Rinascente aims to continue supporting British designers even though Brexit has made things complicated for the industry. Online retailers, outside UK, are returning their goods as they don’t want to pay extra charges. This leaves brands with no option but to destroy their goods, says Carlota Barrera, an emerging men’s wear designer.

Last year, the British government repealed tax-free shopping scheme for outsiders, adding to woes of the ailing industry. According to Tamara Cincik, CEO, Fashion Roundtable, if the government doesn’t revise its VAT policy, the British Fashion industry will remain in trouble long after lockdown eases. Buyers outside the EU continue to support London fashion houses. As Roopal Patel, Senior Vice President and Fashion Director, Saks Fifth Avenue says, she looks forward to discovering new talent at London Fashion Week while Mia Young, Chief Merchant, Lane Crawford, wants to see British brands’ innovativeness this season.