Cambodia's international trade has decreased by 14.5% to $11.3 billion in the first quarter of 2023, according to a report by the General Department of Customs and Excise.

Cambodia's exports decreased by 5.7% to $5.4 billion during the same period, while imports decreased by 21.3% to $5.8 billion, resulting in a trade deficit of $468 million. The US remained the biggest market for Cambodia's products, importing $1.8 billion worth of products, while China became the Kingdom's biggest trade partner with bilateral trade reaching $2.8 billion.

The decrease in exports was mainly attributed to the economic slowdown in the European Union and the US, which are the two largest markets for Cambodia-made products. The garment, footwear, and travel goods industry, is the largest foreign exchange earner for Cambodia.

Global economic situation not being good, and the slowdown in economic growth in the EU and US caused by the war in Ukraine has affected the purchase orders of products from Cambodia.

The situation has seen a decline in orders from outside, especially clothes and footwear.

The Indian cotton market is strong pricewise; despite fears over slow textile consumption had caused a panic, however, the reasons for this upward trend in prices are varied.

The cumulative arrivals of Indian cotton are far lower than previous years, with a large gap between current arrivals and the production forecast. This has resulted in a decrease in the supply of cotton and has therefore supported local cotton prices.

Also, there has been a growing demand for cotton from the downstream market. Buyers in the downstream industry have been active, leading to an increase in cotton yarn transactions and prices. This is due to local spinning mills operating at a high level, with lower inventory than in previous years.

Additionally, orders from China, Turkey, and Europe have increased the consumption of cotton. The government's policies to support downstream capacity expansion have also increased confidence in the textile industry.

With low supply and high demand expectations, Indian cotton prices are on an upward trend. If the subsequent reduction in Indian cotton arrivals intensifies domestic cotton supply and demand contradictions, it is possible that the government may remove the cotton import duty, which could support global cotton prices.

The problem of Organized Retail Crime (ORC) of professional shoplifting and other thefts has been plaguing global retail sector for a long time, with thieves on the lookout for easy money. In fact, to curb this phenomenon, many offline retailers are putting their valuable items under lock and key behind showcases to ensure the products stay safe and are only taken out for genuine buyers. Many others are using off-duty police officers and plainclothes security although this is turning off shoppers with overreaching measures as it limits browsing.

NRRS highlights a growing problem

ORC is one of the biggest issues facing the global retail industry today with losses amounting to almost $100 billion, say analysts. It usually involves a group of thieves -- and not just shoplifters -- who are part of a wider criminal network, conspiring in a game plan to steal and resell retail merchandise for financial gain, leading to major retail shrinkage and inventory loss. In the US, the National Retail Security Survey (NRSS) of 2022, published by the Washington-based National Retail Federation (NRF) cited nearly $100 billion in losses for general retail industry. It also highlighted how retail theft creates violence in retail environments, creating safety risks for retail workers and customers.

In the US, customers of color who already feel overpoliced, are feeling even more alienated with stepped-up security measures against shoplifting. Mega retail giants such as CVS, Sephora, and Walmart had made changes in the aftermath of George Floyd's murder in 2020 when they promised to avoid racially biased practices like locking up products only for black customers. The ORC issue has got more attention in post-pandemic years, as organized high-profile smash-and-grab retail thefts and flash mob robberies are increasing in a fluctuating economy.

Increasing ORC in the apparel segment

The NRF, one of the world’s largest trade association in a recent security survey of around 60 global retailers found inventory loss -- also known as shrink – was high at an average rate of 1.4 per cent in 2022, adding up to $94.5 billion in losses. The greater shrink proportion of 37 per cent, was from external theft that included stealing a variety of expensive products during well-planned ORC incidents and most retailers saw a 26.5 per cent uptick in organized theft incidents last year.

This report found almost 97 per cent retailers had been ORC victims in the past year and 68 per cent had seen an increase in this activity. Almost two-thirds or 65 per cent retailers said ORC is a higher priority for their companies compared to five years ago, while 56 per cent were allocating additional technology resources to resolve the issue; 44 per cent were forced to increase their loss prevention budgets. In an attempt to fight ORC, 38 per cent had changed or were planning to change return policies and 37 per cent were doing the same with point-of-sale policies as many items are returned after stealing, while 27 per cent are doing strict employee screening cross-checking with the government records and another 24 per cent being strict with trespassing.

Dealing with retail theft

Deloitte’s 2023 retail industry outlook says, over the next decade, consumer socio-demographic shifts will happen at greater speed which will create higher spending needs with changing customer trends and the consumer getting older and obese and yet fashion-conscious, multi-ethnic varieties, more stress on gender-positive and sex-positive clothes and a younger population that is more digitally reliant and less financially secure.

At the same time, retail theft is posing to be a big problem. However, simply locking up high-priced items reduces browsing which can affect sales by around 15 to 25 per cent. And this is not at all conducive in a slow post-Covid market.

However, online shopping can curtail this with customers wanting the best price in the most convenient way possible. Many apparel retailers are now offering services, including same-day delivery and curb side pickup, to guarantee excellent customer experience in the offline mode. As the global economy struggles to find its feet, desperate measures to stop ORC by desperados getting braver every day is the need of the hour in the retail segment.

Kenya's textile industry is set to face a severe blow after a proposal by the East African Sectoral Council to move tax paid on imported apparel to the highest band under the Common External Tariff (CET) in a bid to boost local production.

The council, which is responsible for investment and trade in the region, aims to promote cotton production within the region and reduce reliance on imports that have hindered the growth of the industry.

Currently, Kenya produces less than 12 million square metres of woven fabric per year, while the market demand stands at approximately 171 million square metres, making it a net importer of both cotton and textiles. The council's proposal would raise the duty levied on textiles under CET to 35 percent, the highest tax band under the East African Community.

The council's recommendation came during its 38th extraordinary meeting in Tanzania, where it also called for the expansion of harmonised cotton, textiles, and apparel articles under duty remission to enhance trade among member states.

The council urged member states to establish a digital platform to facilitate the exchange of information on cotton harvesting and trade to boost intra-regional trade on the products.

A revolutionary prototype of materials has been developed by Kintra Fibre, that is comparable to traditional polyester, but with a softer feel and an inherent stretch quality that makes it comfortable to wear.

The material has undergone testing for durability and strength, and yarn test results have indicated a stretch recovery of 10-15%. This new development has caught the attention of leading fashion industry players such as Bestseller, Inditex, and Reformation, who have formed a consortium with Kintra and Fashion for Good to prototype applications using this sustainable material.

Each brand in the consortium will select a unique application that meets its design and sustainability requirements. This collaboration aims to reduce the environmental impact of the synthetic fibre market. Kintra Fibers has also received $8m in Series A funding, led by H&M Group, to expand its resin and yarn production capacity to meet the demand from its brand partners.

Fashion for Good is overseeing the project and is committed to supporting Kintra's efforts to develop sustainable materials and processes.

The initiative is a significant step towards a more sustainable future for the fashion industry.

Pakistan's declining economy was the concern due to imports exceeding exports, and the government's inconsistent policies are directly impacting the textile industry in a session, during first-ever event Economy Festival (EconFest) in Lahore.

The two-day event featured over 100 distinguished speakers who discussed real issues affecting Pakistan's economy in 34 sessions.

One of the sessions focused on sustainable growth and the role of the textile sector in Pakistan's economy. During the session, various topics were discussed, including Pakistan's productivity challenges, agricultural productivity, and the challenge of climate change. Speakers also highlighted the textile industry's importance in the country's economy and its declining sustainable growth due to political instability and inefficient policies.

It was urged that the government should provide support to the textile industry in the form of Regional Competitive Energy Tariff (RCETs) instead of 6% duty drawbacks on exports and local taxes, the government's provision of an RCET of 7.5 cents to the textile industry resulted in an investment of $5 billion, and the textile exports rose from $12.3 billion to $19.3 billion in 2022. However, the RCET was withdrawn, resulting in the textile exports declining to $1.2 billion a month.

Pakistan needs to keep its exchange rate in line with the demand and supply of dollars, as devaluing the currency would bring imported inflation, leading to high-interest rates, a major hurdle for the government.

The Pakistan Institute of Development Economics (PIDE), in partnership with the Research for Social Transformation & Advancement (RASTA) program and the Pakistan Society of Development Economists (PSDE) organised the event.

The Indian government has introduced Quality Control Orders (QCOs) for 31 technical textile items to bring the country's textile industry up to par with developed nations.

The QCOs will ensure that both domestic and foreign manufacturers meet conformity assessment requirements specified in these orders, and they will come into effect 180 days after the announcement. The list of items includes 19 geotextiles and 12 protective textiles that are widely used in various industries. This marks the first time that such regulations have been introduced for the technical textiles industry.

The QCOs aim to provide the best value to users and end consumers and foster Indian product quality while protecting against sub-standard imports. However, the World Trade Organisation has termed QCOs a trade barrier. Despite this, no objections were raised by any member countries for QCOs on these 31 items. The domestic industry may face initial hiccups, but the measures will eventually benefit the industry.

The Ministry of Textiles plans to issue QCOs for over 30 additional technical textile items in Phase III. The QCOs will not be mandatory for all products, such as sanitary napkins and diapers.

The Ministry is taking steps to promote the work of Self-Help Groups on the ground where information and awareness about these products is already low. However, those who want to opt for better standards in these two products may choose from brands selling these items on whom the QCOs will apply.

The Woolmark Company is focusing on increasing the demand for Australian Merino wool in sports and outdoor markets.

Collaborating with leading manufacturers and brands, many collections are now incorporating wool, and there is significant potential for growth.

The world's largest sports and outdoor trade show, ISPO in Munich, has been a key opportunity for The Woolmark Company to engage with brands in this sector. The Woolmark Company's promoted the natural benefits of Australian wool, with productive meetings with leading brands. The company showcased its latest wool innovations, including seamless and flat knitting technologies and hybrid garments.

The Wool Lab sourcing guide's 'Endurance' theme was launched at the event, featuring wool swatches for brands and retail buying teams to view.

At the event, sustainability and innovation were top topics, and wool is ideal for brands seeking to produce clothing that has minimal environmental impact.

Pakistan's men's trouser exports to China have emerged as the driving force behind a surge in garment exports, which rose by 36% to $4.36 million in the first two months of 2023, according to the Pakistan Embassy in Beijing.

The country's robust manufacturing capabilities and high-quality garments have made them a popular choice for Chinese companies seeking competitive prices. Pakistani men's trousers of cotton emerged as the top product, with exports worth $2.57 million, a significant increase from the $1.27 million recorded in the same period last year.

In 2022, the annual exports of Pakistani men's garments to China were $28.66 million, up by 33% from the previous year's figure of $21.62 million. The top item in this category remained men's or boys' trousers of cotton, worth $17.94 million, which highlights the growing demand for these products among Chinese consumers.

In addition to trousers, Pakistan's T-shirt exports to China also witnessed impressive growth, with a 106% increase compared to the same period in 2022, reaching $5.53 million.

Pakistan's exports to China crossed $446 million in the first two months of 2023, signaling a positive trend in trade relations between the two countries.

Textile and garment exports from Vietnam dropped by 17% in the first quarter of 2023, reaching $7.1 billion. This is the deepest decline in the first quarter since 2009

The drop is due to the impact of global inflation on consumer spending on non-essential products, causing a sharp drop in textile and garment exports to major markets such as the U.S. and EU.

Moreover, the domestic textile and garment industry is expected to see further declines in export growth this year due to shrinking export orders and factories operating at below capacity. The conflict between Russia and Ukraine, pandemic, financial market instability, and a banking crisis have also affected demand.

In response to this downturn, textile and garment enterprises in Vietnam need to diversify markets, products and brands produced in Vietnam, use green and recycled products, and have infrastructure investment plans and in-depth strategies to meet the requirements of foreign markets.

Moreover, they need to build connection channels to grasp the challenges and opportunities of the global textile industry, digital technology trends and new policies.