The apparel and textile industries face a major challenge with audit and standard fatigue, leading to overlapping audits and a lack of consensus on standards.

Standard Convergence Initiative (SCI) works with existing initiatives such as the Social & Labour Convergence Programme (SLCP) to reduce audit and standard fatigue. The initiative also collaborates with the International Trade Centre (ITC) on the Standards Map Database to track progress by third-party standard holders. SCI steps in to provide support to standard holders that need to reduce audit and standard fatigue.

Additionally, SCI connects with the Sustainable Terms of Trade Initiative (STTI) to improve purchasing practices. One way to do this is by reducing the number of overlapping standards and favoring third-party standards over proprietary ones, which is promoted by STTI.

To tackle this issue, the International Apparel Federation (IAF) and International Textile Manufacturers Federation (ITMF) have joined forces through the Standard Convergence Initiative (SCI).

SCI's work, though behind the scenes, has a significant impact on the apparel and textile industries. It ensures that the manufacturing members of IAF and ITMF have a voice in these initiatives and pushes for the reduction of audit and standard fatigue.

The upcoming Kingpins Amsterdam show is set to debut a new tool that could revolutionize the denim industry's approach to sustainability.

Developed by the Transformers Foundation, the "Transparency Tool" (TTT) scientifically measures the environmental impact of every stage of denim jeans production. This tool uses raw data from a comparison of inputs and outputs for a set of garments to help mills and brands make strategic decisions about the products they are making and buying.

Denim production is notoriously known for its environmental impact, with the fashion industry as one of the largest polluters globally. A report by the Ellen MacArthur Foundation revealed that the fashion industry generates 92 million tons of waste and consumes 1.5 trillion liters of water per year. Denim production, in particular, is known for its water usage, chemical dyes, and energy-intensive processes.

The TTT aims to address this issue by providing a comprehensive view of the environmental impact of denim production. It uses a life cycle assessment (LCA) methodology to quantify the environmental impact of each stage of denim production, from raw material extraction to end-of-life disposal. This data allows denim makers to make informed decisions about their production processes, reduce their environmental impact, and improve sustainability claims. By providing a real and reliable number to sustainability claims, TTT has the potential to change the entire conversation about sustainability in the jeans industry for the better and forever.

The fashion industry is under increasing pressure to improve its sustainability practices, and initiatives like TTT could be a significant step forward in achieving this goal. The TTT's scientific approach to sustainability is a crucial tool in promoting transparency and accountability within the industry. By making informed decisions about their production processes, denim makers can reduce their environmental impact and create a more sustainable future for the fashion industry.

Pakistan's T-shirt export industry is enjoying substantial growth in recent years, with a remarkable surge seen in the first two months of 2023.

Pakistani T-shirt market has increased by over 100% for the second year in a row. The country's T-shirt exports to China alone reached USD 5.53 million during this period, a 106% increase compared to the same period in 2022.

Despite facing challenges due to the flood that affected cotton crops, Pakistan continues to hold a prominent position in the global T-shirt export industry, and has several major markets, including the United States, France, and China.

Pakistani T-shirts with Chinese zodiac signs have gained immense popularity in China, contributing significantly to the country's T-shirt export industry. With such positive developments, Pakistan's T-shirt export industry is set to witness further growth and success in the coming years.

A €35 million pilot plant has been established in southern Sweden to manufacture a new regenerated cellulosic fibre, which is now in the start-up phase.

The venture uses sustainably sourced raw materials from forests and requires fewer chemicals and less water than traditional industry methods to produce the new regenerated cellulosic fibre.

TreeToTextile, a joint venture between H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest, will have an initial production capacity of 1,500 tons of fibre per year before scaling up and commercialisation.

Man-made cellulosic fibres (MMCF) are growing faster than other textile fibres globally, with several emerging technologies under development. The majority of novel textile fibres are still in relatively early stages of development, but commercialisation is being expedited by partnerships in the value chain.

Stockholm-based engineering firm AFRY has been TreeToTextile's lead consultant and engineering partner since the project's early stages in 2016. AFRY is working closely with technology, textile, pulp, and paper companies to transform their production towards textile fibres.

The global denim fabric market witnessed a market size of $18.1 billion in 2020 and is expected to reach $27.9 billion by 2030, growing at a CAGR of 4.4% during the forecast period of 2021 to 2030, as per the report published by Allied Market Research.

The rise in demand for affordable denim fabrics and the emergence of new socio-economic trends are the major factors driving market growth. However, the market growth is being restricted by the volatility in cotton prices and environmental concerns related to the use of synthetic dyes.

The COVID-19 pandemic had a significant impact on the global denim fabric market. The temporary closure of fabric production facilities due to the global lockdown disrupted the supply chain, leading to a rise in prices of raw materials, especially cotton and cotton yarn. This factor decreased the production of denim fabric, particularly in the initial phase. The fall in income levels of customers resulted in reduced demand for premium denim products.

Based on raw material, cotton held the highest market share in 2020, accounting for 92% of the total market share, and is expected to continue its leadership status during the forecast period. However, the cotton segment is also estimated to register the highest CAGR of 4.5% from 2021 to 2030.

Based on fabric type, the raw segment held the largest market share in 2020, accounting for almost one-third of the total market share, and is expected to continue its dominance during the forecast period. However, the stretch segment is projected to register the highest CAGR of 5.2% from 2021 to 2030.

Region-wise, APAC contributed the highest share in terms of revenue in 2020, accounting for almost four-fifths of the total market share, and is projected to maintain its dominant share by 2030. The same region is also expected to manifest the fastest CAGR of 4.6% during the forecast period. Other regions analyzed in the report include America, Europe, and MEA. The emergence of biodegradable denim fabric presents new opportunities for the denim fabric market in the upcoming years.

Bangladesh's appeal for duty-free access to the US market for apparel items made from US cotton has gained momentum as the country seeks to boost bilateral trade and investment.

Bangladesh is the world's second-largest cotton-importing country, with almost 99% of the cotton used in its ready-made garment (RMG) industry being imported, a significant portion of which comes from the US. In 2022, the US exported $2.76bn worth of cotton to Bangladesh, which accounted for 35.7% of the country's total cotton imports. However, the current duty-free treatment only applies to the import of cotton for the RMG industry and not to the finished apparel products.

Moreover, Bangladesh's recent policy reform on mandatory fumigation tests for imported cotton from the US is expected to make trade easier and facilitate smoother cotton imports from the US.

The country exported $32.86bn worth of cotton garments in 2022, which represented 71.89% of its total apparel exports. Nevertheless, US importers had to pay $1.55bn worth of duty to import $9.74bn worth of apparel from Bangladesh in 2022.

The appeal for duty-free access to the US market comes at a time when Bangladesh is positioning itself as a significant supplier of apparel in the world. The RMG industry is the backbone of the country's exports and economic growth, with apparel exports increasing by 8.73% annually in the last ten years. The ongoing trade conflict between the US and China may work in favor of Bangladesh's plea for duty-free access, as US importers seek alternative sourcing options.

Duty-free access to apparel products made of US cotton would not only benefit Bangladesh's RMG industry but also offer new opportunities for US cotton growers and exporters to tap into the country's potential as a significant supplier of apparel in the world market. Therefore, the move would be a win-win for both the countries, facilitating increased bilateral trade and investment.

Bangladesh's largest foreign currency earning sector, the apparel industry, has experienced a significant decline in orders for the April-June season, with international clothing retailers and brands reducing orders by 20% to 40%. The development could deepen the country's foreign exchange crisis.

This slowdown is due to a surplus of apparel stocks in stores and higher living costs in western economies, leading to lower demand for garment items from Bangladesh. The war between Russia and Ukraine has also impacted garment shipments, affecting low-end and basic products more than high-end items.

Despite the decline in orders, Bangladesh's garment shipments have remained resilient, with exports reaching $4.63 billion in February, up 7.81% year-on-year. The positive export earnings can be attributed to an increase in the unit price of a garment item, growth in shipments for high-end value-added garment items, and a spike in shipments to new destinations, particularly in Asian markets.

Investment in the garment sector stands at $25 billion, with another $25 billion expected in the next five years. Exporters remain hopeful that orders will rebound from July as stores finish selling old stocks and shipping for the next winter season begins.

Nonetheless, the current slowdown could deepen Bangladesh's foreign exchange crisis, as the EU and the US, which account for over 80% of Bangladesh's apparel exports, are facing inflationary pressures.

To give or not to give, is the question that retailers and brands across all apparel categories are asking when it comes to giving discounting schemes to clear inventories piled up during the Covid years as well as to tide over the impending recession. As no two downturns are exactly alike, all branded segments from leading retail chains to global and Indian fashion brands, are now focussing on understanding the evolving post-Covid consumption patterns and fine-tuning their discounting and marketing strategies accordingly in an turbulent markets.

Many leading Indian retail and departmental store chains such as Aditya Birla Fashion and Retail as well as Lifestyle International plan to bring down discount levels with the recovery in demand and increasing sales reaching pre-Covid levels over the last 2-3 financial quarters. Most mid-segment retailers feel that the high discounts of the Covid years are no longer needed and it is mainly the premium high-fashion brands with a stock-pile of high inventory levels, who need to offer a high level of discounts to survive.

Mid-segment brands give lesser discounts as fresh stocks sell well

To improve sales and to survive during the two Covid years, many retailers increased the discount days, and discount percentage and had sudden flash sales in the stores to liquidate stock and bring in customers. But as the work-from-home culture has slowly ebbed out, the sales of apparel, fashion, footwear and other lifestyle products spiked again as consumers felt the need to refresh their wardrobes. However retailers are under pressure to clear out inventory and start afresh in the next fiscal year and balancing inventory well has become the need of the hour.

According to McKinsey's report called 'The State of Fashion', around 84% of industry leaders expect market conditions to worsen or stay the same in 2023. With fresh stocks at regular prices selling well, leading footwear and apparel brand Woodland has brought down the number of days on discount by two weeks in the last end-of-season sales in January as compared to pre-Covid days and also the quantum of discount was lower with an average discount of 20-30% as compared to flat 40% earlier, according to managing director Harkirat Singh in some media inteviews.

Large retail companies such as Shoppers Stop-, owned by the K Raheja Corp with around 125 retail stores in India – have concluded end-of-season salesfarv later this year than usual as the regular price stocks were selling comparatively well. Other big clothing retailers have also felt that the reduction in discounts will help to improve profit margins at a time when fixed costs like high rentals in LF’s, MBO’s and EBO’s are increasing but still have to be maintained.

Premium brands clear unsold inventory through sales

However many high fashion and lifestyle brands are singing a different tune as the stock pile-up of unsold inventories in warehouses and low sales have forced them to prepone their bi-annual end-of-season sales by about two weeks, rather than postpone. Most have had to offer bigger discounts at the beginning of the season itself in a desperate effort to attract buyers and liquidate inventories. Although the premium brands start their sale season with discounts from around 20-40% but in mid-2022 even after Covid, this discounting was up to 50% or more and even then shoppers were not exactly falling over themselves to buy.

Many international and Indian fashion brands including Nautica, American Eagle, The Body Shop, Jaypore, Ritu Kumar, Marks & Spencer, Vero Moda, Guess, Mango, Iconic, Massimo Dutti, Charles and Keith, H&M, Rosso Brunello, Forever New, Hidesign, Rareism, Lacoste and Beverly Hills Polo Club shad started by offering up to 50% off to its customers and this trend is continuing through 2023. Other women’s brands such as Bath and Body Works, Aldo, Aldo Accessories and Global Desi Girl tried to liquidate piled-up inventories by offering flat 50% off on almost everything even during the festive season in December 2022.

At the end of the day, it is for the brand to decide what discount scheme works for them as only the wearer knows where the shoe pinches and what will work in their favor in these turbulent post-Covid times.

Hong Kong has reasserted its position as the premier trade fair destination in Asia as global traders flocked to the city for its full resumption of travel and trade activities.

The Hong Kong Trade Development Council (HKTDC) is set to host five lifestyle product shows under one roof at the Hong Kong Convention and Exhibition Centre (HKCEC) from April 19-22, 2023. The shows, organized by HKTDC, include the Hong Kong Gifts & Premium Fair, Home InStyle, Hong Kong International Home Textiles and Furnishings Fair, Fashion InStyle, and Hong Kong International Printing & Packaging Fair.

In addition to these physical events, the HKTDC will also run an online smart business matching platform, Click2Match, from April 19-29, 2023, which will connect traders beyond physical fairs. The new EXHIBITION+ hybrid model enables global traders to connect anytime and anywhere, reinventing trade fairs to serve the changing needs of the industry.

Home InStyle, formerly known as the Hong Kong Houseware Fair, aims to enable exhibitors and buyers to explore the latest houseware trends and source unique home designs and products. The Hong Kong International Home Textiles and Furnishings Fair showcases a broad array of home textiles and furnishings, while Fashion InStyle, formerly Hong Kong Fashion Week, serves as an ideal business platform for the fashion and textile industry's entire supply chain.

These fairs offer an ideal one-stop sourcing platform with over 3,500 exhibitors from around the globe. The fairs offer an unparalleled opportunity for traders to connect with their peers and exchange ideas, innovations, and best practices.

The HKTDC's new hybrid model of trade fairs offers even more convenience and flexibility for traders, allowing them to connect with their counterparts around the world anytime and anywhere.

Indonesia's Cooperatives and Small and Medium Enterprises Minister Teten Masduki and Trade Minister Zulkifli Hasan have announced measures to combat the illegal import of used clothing, with the aim of protecting the country's domestic textile, apparel, and footwear industries, as well as micro, small, and medium enterprises.

The ministers' agreement includes steps to prevent the illegal import of used clothing, including shutting off imports at their source and imposing restrictions on traders selling the clothing. The Ministries of Cooperatives and SMEs, Trade, and Finance will collaborate with the police to close imports of used clothing upstream, while traders who have already taken possession of the illegal goods will be given a deadline to sell the remaining inventory.

Illegal imports of used clothing and footwear, which account for an average of 31 percent of the total domestic market, have negatively impacted the domestic clothing industry, which struggles to compete with these low-cost items that enter the country as waste and are not subject to tax or production costs. This move to protect domestic industries and MSMEs comes as Indonesia is grappling with the economic impact of the COVID-19 pandemic, with the government implementing measures to support businesses and individuals affected by the pandemic.

According to Trade Minister Zulkifli Hasan, the government has destroyed around 7,000 sacks of imported used clothing worth IDR 80 billion ($5.5 million) in the past. The import of used clothing is prohibited in Indonesia unless it meets certain eligibility requirements, and the government is taking measures to ensure that illegal imports are eradicated.