An increase in import tariffs has contributed to a rise in the cost of raw materials for textile companies in Pakistan.

High tariff rates lead to higher manufacturing costs. As a consequence, the prices of finished products increase, causing a decline in exports.Pakistan’s textile exports of textile products in the fiscal year 2021 hit a record high on an annual basis.

However, the exports dropped by 18 percent in November 2022 compared to the corresponding period last year. The textile industry is the backbone of Pakistan’s economy and is the largest manufacturing sector employing almost 38 per cent of the workforce. Textiles have a lion’s share of Pakisan’s exports and a drop in exports is bound to impact the economy. In addition the industry’s production system needs to be upgraded. The manufacturing equipment is not sophisticated and this hampers the level of production.

The drop in textile exports is a cause for Pakistan to worry since in the end it will result in unemployment and increased pressure on foreign exchange reserves.An effective approach to lessen the negative effects of the declining textile exports is to raise the productivity of the manufacturing sector, and lower the cost of the finished products by investing in new technology for the textile industry. This will make the country’s products more competitive in the world market.

The garment industry in Pakistan may eventually close down. So says Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).

Among the problems it lists are continued delays in sales tax refunds and restrictions on import of raw material by the garment industry. PRGMEA says if exporters cannot procure and purchase raw materials and other accessories to fulfill their future export orders this will ultimately cause the entire export trade to collapse. Though the central bank had officially removed restrictions on imports of raw materials, constraints still continue to haunt the garment industry, leading to a severe shortage of raw material. Several units have already slashed production. The sector is also facing a severe liquidity crunch due to delayed refunds. Exporters’ refunds payment orders were supposed to be issued in 24 hours while refunds were supposed to have been cleared within 72 hours but practically these commitments are not being fulfilled and the 72 hours have now extended to several months.

Meanwhile Pakistan’s cotton production for the year 2022-23 is estimated to fall by 43 per cent compared to the past year.The primary reason for this year’s situation is the devastating monsoon floods that damaged major cottongrowing regions. Pakistan is the fifth largest cotton producer globally but the country will need to import at least five million bales in the ongoing fiscal year to meet the demand from the textile sector.

Knitted fabrics manufacturers Carvico and Jersey Lomellina have been awarded for their eco fabrics.

The awards were given by the India-based BSL (Brands and Sourcing Leaders)association. This is a non-profit organization which aims to boost the growth of the apparel industry in India by helping start-ups source the best raw materials. Carvico and Jersey Lomellina, based in Italy,are global leaders in the production of performance fabrics for underwear, swimwear, apparel and interior design and their collections boasts numerous eco-sustainable fabrics created through complex production processes with a really low environmental impact. The companies do a thorough research and attention when selecting the raw materials so that the garments are high-tech, high-performance, and eco-friendly.

Apparel companies are offering innovative products.Sustainability is now an integral part everyday life with consumers’ growing awareness and their stance to opt for eco-friendly products. And to sustain existing customers and lure new ones, textile and apparel companies are creating ethical garments and offering innovative products. They are also making sure that the impact is percolated till the end of the value chain and their suppliers so that no unethical practices are imbibed and followed. Using only recycled or other sustainably sourced materials significantly reduces the use of natural resources and the negative impact on the climate.

Garmentech will be held in Bangladesh, January 11 to 14, 2023. This is the perfect marketing forum to reach out to the entire cross-section of decision-makers and technical personnel in garment technology and manufacturing in the readymade garment sector of the country.

Garmentech brings global technology players under one roof showcasing cutting edge sewing, finishing, embroidery machinery and spares and allied products, thus making it a preferred choice of readymade garment manufacturers to visit and source their needs.

Meanwhile the readymade garment and textile sector of Bangladesh will see a year of possibilities in 2023. Buyers from western countries, especially from the US, have started to shift their orders from China as part of reducing dependency on China for geopolitical reasons.This trend is expected to continue in the upcoming year. In this case, Bangladesh can be a good alternative for western buyers. Western countries may also move out orders from Vietnam and Bangladesh will have a chance to grab them too. Especially in the last few months Bangladesh has received orders from the United States at a higher rate compared to two major suppliers-- China and Vietnam. Bangladesh's garments exports to the US have seen 54 per cent growth at the beginning of the current year, 2023.

The global secondhand apparel market is growing at 14 per cent a year. The growing popularity of secondhand apparel is due to their less expensive nature and better quality. Consumers have become increasingly interested in eco-friendly clothing options.

A focus on sustainability and a higher degree of consciousness have propelled the growth of the secondhand apparel market. Product reviews and other features of e-commerce help merchants study purchase patterns and trends to create products and services that meet the needs of potential buyers. This provides useful information that retailers can use to develop effective marketing strategies.

To retain clients, numerous fashion retailers are implementing recycling initiatives and releasing new collections of clothing made from eco-friendly fibers. Increasing consumer awareness of online resale platforms and fast-growing online start-ups offering pre-owned branded and designer goods and rental ethnic wear are fostering interest in this market.Consumers are not just buying fewer non-essential items but they are also buying higher-quality clothing rather than cheap and disposable options. Customers have also transitioned from offline to online shopping options.

However the secondhand apparel market has been hampered by a labour shortage in the industry. Reduced transactions over viral transmission fears have also caused issues in the short term.

India may institute special awards for footwear and leather exporters who make effective use of free trade agreements.

Awardees may also be new companies, entrepreneurs, startups and those who come up with innovative ideas, enter into uncharted territory with new markets and products.

Footwear holds great potential for India. The country is working toward getting zero duty access through free trade agreements in leather goods, sportswear and footwear. About 7,000 small industries units are connected with the footwear sector which holds great significance to the economy and foreign exchange earnings of the country.Nearly 40 per cent employed in the sector are women and for every 1000 pairs that are produced or sold, 425 jobs are secured.

India is the second largest producer of footwear and leather garments. India has immense potential in the footwear sector and ethical and responsible practices like zero-waste discharge, salt-free tanning, and occupational health and safety interventionscan increase production and export ten times in the near future. Through a quality control order imports can be limited and good-quality exports can be achieved.

Strong global branding through road shows, e-platforms and global joint ventures can help the sector make a mark globally. Attention can be given to the non-leather footwear sector as well.

Odlo has increased productivity by ten per cent, optimised profit margins and enhanced team members’ motivation and earning capacity by adopting Coats Digital’s GSDCost solution.

The time taken to produce core styles has fallen by 13 per cent. Odlo has subsequently greatly improved on-time deliveries and has been able to confidently take on significantly more new order requests as a result of the GSDCost implementation.

Prior to implementing Coats Digital’s GSDCost solution, Odlo based its cost and capacity forecasts on inaccurate historical data stored in multiple Excel spreadsheets which were difficult to update in real-time across all costing, capacity planning and manufacturing teams. As a result of inaccurate standard minute values regarding cost to make production times, and poor costing and planning visibility, Odlo occasionally failed to meet on time delivery targets, which meant steep additional overhead costs and customer complaints.

Odlo, based in Norway, is a sportswear brand. The company’s manufacturing arm produces over 2.4 million pieces a year and supports a workforce of just under 500.Coats Digital is the leading digital transformation partner for the fashion supply chain, powering sustainable processes and high value insights through connected technologies, and is used in over 3,000 factories globally.

GSDCost is the international standard for establishing and optimising accurate method-time-cost benchmarks for sustainable garment cost optimisation and manufacturing excellence.

Bangladesh’s export earnings in December 2022 fell by four per cent year on year compared to December 2021.

Among the reasons for this fall in export earnings are the fall in work orders from global retailers and brands stemming from the Russia-Ukraine war as well as rising inflation. However the industry is bouncing back with high-hopes despite multifaceted global challenges apparel entrepreneurs have upgraded the technology and product quality as well as capacity. Thus, despite Covid and the Russia-Ukraine conflict brands and buyers keep on placing orders with the readymade garment industry.

Bangladesh wants to elevate its share in the global apparel business to ten per cent by 2025 from the current six per cent. The industry is focusing on diversifying markets and apparel products to swell its growth. In July to November of fiscal year 2022-2023, Bangladesh’s apparel exports to non-traditional markets grew by 24 percent.

Bangladesh is the second-largest exporter of clothing after China. The country is gaining from its favorable sourcing destination with its high reputation in transparency and circularity i.e. sustainable factories, comparatively low labor cost, smooth supply chain while globally leading fashion retailers are trying to down their apparel sourcing from China. Despite China’s strong performance in 2021, China accounted for only 23 per cent of US apparel imports in 2022, much lower than 36 per cent in 2015.

The Indian textile industry has a long wish list from the upcoming union budget.

Since traceability and sustainability have become critical for exporting textile and apparel products to western markets such as the UK, the EU, and the US, industry sources and various trade organisations have suggested a scheme for promoting traceability and sustainability in the textile value chain.

Since both of them are new concepts and limited technologies are available, the industry is seeking an incentivisation scheme for both producers and exporters who meet the requirement of traceability of the inputs used, especially cotton, and sustainability i.e. who use technologies that require lower consumption of water and electricity, lower discharge of hazardous chemicals, and ensure at least 20 per cent recyclability of materials used.Industry bodies have also suggested prioritisation of the National Textile Fund, which is mooted by the ministry of textiles with an aim to fund investments in technology upgradation and infrastructure development of the textile and clothing industry.

There is also a strong demand for raising allocation of funds ofRs7,700 crores for disbursement under the TUFS subsidy.After a full year of costlier cotton, the industry has made a pitch for support to tackle price fluctuations in the natural fiber.

In a market fraught with post-lockdown effects and a serious energy, housing and inflation crises, the Fraser Group, Next, Primark, Marks & Spencer, French Connection among other brands shone like beacons of hope for the whole sector in the UK in 2022. High street brands in the UK proved their resilience and might by taking on the post-pandemic challenge head on and winning. As per Drapersonline, the list of winners is led by the Fraser Group, Primark, Marks & Spencer, French Connection among others too showed the way.

Sales, profits surge for the Fraser Group

Fraser Group’s story is all about growth. The UK-based retailer started in 1982 as a modest one-store operation and today is a multi-brand powerhouse that operates hundreds of stores, employs more than 25,000 people, and runs brick-and-mortar and online operations in 25 countries. In latest fiscal, Frasers’ sales topped £3.6 billion. It expects profits to grow between £450 to £500 million in its current year, and posted a record-breaking year as it recovered from Covid with pre-tax profits rocketing from £8.5 million to £366.1 million despite the significant economic headwinds.

The surge in profits was largely due to the reopening of stores as it was pitched against a Covid-hit period last year. However, new Flannels stores, the continued growth of its premium lifestyle division and continued operating efficiencies also helped to drive up profits. The group believes the strong performance will continue and pre-tax profit will surge to between £450 million and £500 million next year.

Over the full year group sales, excluding recent acquisition Studio Retail Group, rose 30.9 per cent. UK sports retail sales jumped 31.2 per cent while its premium lifestyle division surged 43.6 per cent. Frasers Group’s European business grew 28.4 per cent, largely due to strong growth in Ireland, alongside the weak comparatives.

Much of Frasers’ growth has come from acquiring other brands. Frasers’ portfolio now includes nearly a dozen brands, including Sports Direct, Game and Sofa.com and the group shows no signs of stopping its acquisition spree. Earlier in 2022, online specialist Studio Retail was added to the group’s portfolio. It is believed this addition would empower the group towards greater e-commerce capabilities and open up a whole new customer base. The group also grabbed 15 of JD Sports Fashion’s lifestyle brands which was its biggest buy this year.

Revival of other brands

Iconic and quintessentially British staple brand Marks & Spencer had been lagging for well over a decade, its luster fading with the younger public. So dire was the situation the organisation was downsizing its retail spaces in the UK. Since 2020, under the leadership of clothing and home division’s managing director Richard Price the strategy ‘Never the Same Again’, was implemented to bolster revenues. Major reshuffle in portfolio, strengthening e-commerce capabilities and tie-ups with third parties for clothing, footwear and beauty products gave the ailing brand a shot of rejuvenation. Group revenue in the half-year to October 1, 2022 rose 8.5 per cent year on year to £5.54 billion. Pre-tax profit during the period climbed 11 per cent to £208.5 million.

The revival story of the 50 year old French Connection is similar to that of Marks & Spencer. In 2021 the brand was sold to the MIP Holdings. The holding company reorganized the brands strategy entirely with a wholesale business, accessible pricing, and return of the brand’s international presence, and the revival of the cheeky fcuk logo. This gambit paid off and for the first time over two decades, the retailer returned to profitability in the second half of 2021 and has done exceptionally well in 2022.

Primark, the value retailer brand operating in the UK market recorded total sales growth of 43 per cent year on year to £7.7 million till September. The brand plans to would open 27 new stores globally by September 2023. In November, Primark launched click-and-collect service which saw its overwhelmed when it went live with products from 25 stores out of a total of 154 in the UK and 36 in Ireland.