The implementation of new ESG laws by the European Union means that apparel brands must now disclose detailed information about their supply chains, including the names of their suppliers, working conditions, and environmental impact.

Failure to comply with these laws can lead to significant penalties, making it crucial for brands to ensure that their products are ethically sourced and manufactured. This requires full visibility into their operations, which can also help apparel brands gain a competitive edge.

However, the textile supply chain is complex, with multiple players involved in sourcing, manufacturing, and distribution. This often results in information silos, making it difficult for executives to respond quickly to disruptions. The pandemic has further emphasized the importance of supply chain visibility, as even minor disruptions can have far-reaching consequences. Brands that recognize the significance of visibility at every stage of their supply chain can improve their agility, resilience, and avoid major ESG violations.

Increased supply chain visibility not only helps prevent ESG violations but can also provide significant benefits for apparel brands. For instance, it allows them to make informed decisions about inventory management, product development, and logistics.

To address the challenge of limited visibility, technology solutions such as production tracking software and digital quality management and inspection tools are available. Brands can use these solutions to monitor their global suppliers closely, maintain constant communication, set up safeguards and approvals, and receive timely updates on all activities.

The Turkish textile and apparel sectors recently hosted the Dutch Circular Textile Delegation in Bursa for a program aimed at developing circular textile cooperation.

The event was organized by the Consulate General of the Netherlands in Istanbul, the Ministry of Foreign Affairs of the Netherlands, Uludağ Textile Exporters’ Association (UTİB), and Uludağ Apparel and Clothing Exporters’ Association (UHKİB), and featured bilateral meetings and new business contacts between Turkish manufacturers and 17 Dutch companies.

During their visit, the delegation visited several leading centers in the sector for research and development, training, design, and digital transformation, including the Bursa Technology Coordination and R&D Centre (BUTEKOM), Bursa Model Factory, and BTSO Energy Efficiency Centre.

The visit of the Dutch Circular Textile Delegation in Bursa highlights the importance of sustainability and innovation in the textile and apparel industry and promotes circular textile cooperation between Turkey and the Netherlands. The program provides a platform for global players to drive positive change and highlights innovations that are key to the future of the textile and apparel industry.

India's cotton exports are expected to fall sharply in the 2022-23 season, which predicted that exports could match imports for the first time in about two decades, according to the United States Department of Agriculture (USDA).

The USDA's April World Agricultural Supply and Demand Estimates report projected Indian exports to drop by 500,000 bales to 1.8 million, roughly equivalent to its import forecast, due to lower domestic supplies, increased demand for foreign long and extra-long staple grades, and the Australia-India Economic Cooperation and Trade Agreement (ECTA).

The Cotton Association of India (CAI) had already warned in March that Indian stocks could fall to a near two-decade low in the 2022-23 season, as adverse weather conditions curtailed crop yields. The country was going to produce a very small surplus, leading to firm local prices and no parity for exports. The situation is expected to persist until new season crops start from October.

While India is still forecast to be the third largest cotton exporter globally, with a projection of about 1.8 million bales in 2022-23, this figure is well below the 6.2 million exported in 2021-22. India’s lower production might tighten the global balance sheet, creating worldwide opportunities and challenges. If India increases imports and demand rises, ICE cotton prices might rise, although demand has been slow due to economic conditions.

Meanwhile, global benchmark U.S. cotton futures prices are on track for a third straight monthly fall, having declined over 1% so far this year on demand concerns.

The CAI had earlier warned that lower Indian output could allow rivals such as the U.S., Brazil, and Australia to increase cargoes to key Asian buyers such as China and Pakistan, while pushing up local and global prices.

The hot and happening footwear brands this summer in popularity will continue to be Nike across all athletic categories, while others like The North Face, Patagonia, Columbia and Ugg leade in the outdoor segment, states L.E.K. Consulting’s Footwear and Apparel Brand Heat Index 2023.

This US-based apparel and footwear survey in its second year, is helping brands and retailers identify which brands will gain popularity across different generation of consumers. The survey covers almost 4,000 US consumers between 14 to 55 years, comprising mainly of Generation Z, millennials and Generation X.

Nike and Hoka lead in women’s athletic footwear

Athletic footwear in women’s segment is still dominated by last year’s top-ranked brand Nike doing well among millennials; Hoka too climbed the ranks, surpassing Nike among Gen X consumers. However, Adidas fell to fifth position from second as its rankings dropped among millennial and Gen X. The Top 10 women’s athletic footwear brands in all categories on a total score of 100 are: Nike with a score of 89; Hoka with 88; Brand Jordan 68; Adidas 66; Under Armour 61; New Balance and Nobul tied at 50; Brooks with 44 and; Puma 40. The percentage, however, changes according to three categories of Gen-Z, Millennials and Gen-X with Nike leading in Gen -Z and millennial category and Hoka in Gen-X, followed in second place by Nike.

Men’s athletic footwear has Nike and Brand Jordan on top

Nike and Brand Jordan remain the most happening brands leading overall across all segments followed by Adidas and Under Armour in the men’s athletic footwear segment. Similar to women’s category, younger consumers or Gen Z and millennials among men prefer attributes like style and appearance with Nike and Brand Jordan performing well. The older generation or Gen X prefer Hoka more than other cohorts, largely due to perceived quality and durability. The On running shoe brand, by contrast, appears to be gaining less popularity with men than among women, though it is now in the top 10 for all but Gen Z men. Overall top 10 men’s athletic footwear brands (among all brands out of 100 score, is Nike with100; Brand Jordan: 93; Adidas: 66; Under Armour: 65; Hoka: 60; On: 59; New Balance: 48; Nobull and Puma, tied at 44; and Champion: 40.

Athletic apparels sell well for both men and women

With health and wellness being in focus, athletic apparel is doing well with Nike remaining top brand for both women and men. Lululemon, Gymshark, Under Armour, Champion and Adidas are also in top 10 list.

Just as in 2022, Nike and Lululemon have taken top spots for women’s athletic clothing this year, with Lululemon closing in on Nike in terms of heat score rising to 97 from 77 last year. Along with premier brands Under Armour and Adidas, a range of smaller athleisure brands now feature among top 10 including Gymshark, Alo Yoga, Fabletics, Vuori and Alphalete, all of which saw their heat scores improve since last year.

However, Nike has a stronger position in men’s athletic clothing than it does in men’s athletic footwear and there is a larger gap between Nike and its closest competitor in the No. 2 spot. However, after Nike, the rest of the top five brands are largely the same as last year, with a focus on premium athletic trusted names of Under Armour, Adidas and Champion.

Outdoor footwear dominated by Columbia

The range of performance footwear across the top 10 brands in outdoor category is vast with low consumer enthusiasm beyond leading players, although, from a gender perspective, Columbia is one of the top brands for both women and men while the others vary.

In women’s outdoor footwear, Ugg is the hottest brand across generations due to its appealing style and Columbia and Hunter Boots are the top three spots overall but are more popular among Gen Z and millennials. In men’s outdoor footwear, Timberland and Columbia are top two brands across generations, with Columbia narrowly surpassing Timberland.

The L.E.K. Consulting’s Footwear and Apparel Brand Heat Index 2023 survey has helped many footwear and apparel brands know their standing in casual, outdoor and dressy categories across generations. It helps them plan their branding and marketing strategies better.

Vietnamese garment and textile exports plunged by 18.63% to US$8,701 billion during the first three months of the year, compared to the same period in the previous year, due to the impact of global inflation. The fall was the deepest in the first quarter since 2009.

Global inflation forced consumers to tighten spending on non-essential products, which led to a sharp drop in exports to major markets such as the US and EU. The shortage of export orders since Q4 2022 has led to a sharp drop in export turnover, factories operating at below capacity and reduced working hours for employees.

Many forecasts predict that the domestic industry's export growth will slump this year.

The textile and garment industry will face challenges such as the trend of increased layoffs and businesses moving the workforce away from big cities in 2023, according to the Vietnam Textile and Apparel Association.

In this context, textile and garment enterprises have to implement many solutions such as restructuring enterprises, markets and products to maintain production and keep workers while waiting for the market to warm up.

The most significant solution is to diversify markets, products and brands produced in Vietnam.

Vietnam has become Australia's largest export market for raw cotton, with imports of the commodity from Australia rising 899% to $555m between 2020 and 2021.

The relationship between China and Australia has been strained since 2020, with China imposing tariffs on Australian goods in response to Australia's call for an investigation into the origins of the coronavirus.

Vietnam has other advantages that Australian cotton producers are able to exploit, including free trade agreements, a convenient location and high demand from apparel manufacturers. Vietnam and Australia are members of three key free trade agreements, including the ASEAN-Australia-New Zealand FTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.

These FTAs have opened up supply chains for Vietnam's manufacturers, while also giving Australian cotton preferential import tax status. Vietnam is expected to export $46bn-$47bn of clothing and apparel in 2023, which has boosted demand for cotton imports.

The US import of readymade garments from the world fell by 11.86% to $13.21 billion in the first two months of 2023, compared with $14.99 billion during the same period in 2022, data indicating that readymade garment imports to the US market have experienced a decline, as per The US Department of Commerce's Office of Textiles and Apparel.

The overall demand for apparel items decreased due to an economic slowdown caused by the Russia-Ukraine war. This decline has been compounded by high inflation and interest rates, which has resulted in consumers cutting back on spending. As a result, imports are expected to grow slowly over the next few months.

China and Vietnam held the first and second highest positions in the US import market, with 21.08% and 18.31% shares respectively. However, China's import of apparel to the US decreased by 29.65%, and Vietnam's RMG import fell by 10.62% in the same period.

Meanwhile, The US imported 453.81 million square metres of apparel from Bangladesh in January-February 2023, a 14.41% decrease from 530.20 million square metres during the same period in 2022. Indonesia's apparel import declined by 7.06%, and Cambodia's import fell by 29.05% in the same period.

However, India's RMG export to the US market grew by 0.41%.

Fast Retailing Co. is a Japanese company that operates several popular retail brands, including Uniqlo, GU, Theory, and J Brand. Uniqlo is the company's most well-known brand, known for its high-quality, affordable clothing, and has become a global phenomenon, with stores in over 25 countries.

China is an important market for Fast Retailing, as it accounts for about 40% of the company's total revenue. The company has been expanding rapidly in the country, with plans to open 100 new Uniqlo stores every year. The firm has almost 900 Uniqlo stores in the country, making it a bellwether for global retailers in the world's second-largest economy.

Fast Retailing is set to release its second-quarter results this week; it had earlier reported a 2% decline in operating profit in Q1, partly due to the residual impact of COVID-19 restrictions in China. Fast Retailing's Q2 operating profit is expected to rise 30% to ¥91bn ($682m), with analysts anticipating full-year profit to reach ¥347bn, up 17% from last year's record earnings.

The lifting of pandemic restrictions in China is expected to boost demand and improve the company's financial performance. In addition to China, Fast Retailing has a significant presence in other markets, including the United States, Europe, and Southeast Asia.

The company has also been focusing on expanding its e-commerce capabilities, as more consumers shift to online shopping.

Bangladesh's export-based apparel makers have struggled with declining profits due to rising production costs despite the depreciation of the local currency against the US dollar.

Energy costs, labor expenses, and raw materials are major ingredients for manufacturers, and their prices have increased in Bangladesh. The country's energy costs have surpassed those of many other countries, including India, due to the government's hike in the prices of diesel, kerosene, petrol, and octane. Transportation costs also increased with the rise in fuel prices, which offset the benefits of the currency depreciation.

Although the currency depreciation increased competitiveness for exporters, those whose raw materials needed to be imported and whose domestic value addition was low experienced relatively lower benefits.

However, Bangladesh's export earnings have remained strong due to the shifting of orders from China, and the country has established itself as a reliable supplier in the global market.

Indians are the most eco-conscious dressers compared to respondents from other countries, followed by China as per recent survey by Statista Consumer Insights.

In the survey, 89 percent of Indian participants claimed to buy sustainable and eco-friendly fashion, such as clothes made from sustainable fabrics, fair trade goods, or products with lower CO2 emissions than regularly produced items. The second-most eco-conscious group was the Chinese, with 69 percent of respondents buying sustainable clothing, accessories, or shoes.

In contrast, only 49 and 41 percent of participants from Western countries like the United States and Germany, respectively, claimed to buy eco-friendly clothes and similar items.

Interestingly, 45 percent of the Indian residents surveyed were willing to pay a much higher premium for fashion produced fairly. The most important criteria for sustainable fashion purchases in India were quality, price, and comfort. Additionally, only 47 percent of Indians based their purchasing decision on the brand or manufacturer.

This survey highlights the growing trend of sustainability in the fashion industry and how Indian consumers are leading the way in adopting sustainable practices.

It also underscores the need for fashion brands to prioritize sustainability and eco-friendliness in their products to cater to the evolving preferences of consumers worldwide.