The Council of Fashion Designers of America (CFDA) has released the preliminary official New York Fashion Week (NYFW) schedule welcoming new and returning brands.

In partnership with IMG, the six-day New York Fashion Week American Collections Calendar will kick off on September 9, with ProenzaSchouler, while Tom Ford will close the week on September 14, 2022.

The calendar will see runways and presentations from a plethora of returning brands including Altuzama, Carolina Herrera, Christian Siriano, Coach, Jason Wu, MichealKors, PrabalGurung, etc. The official calendar will also welcome Tommy Hilfiger, Area and Puma after a hiatus.

First-time additions to the calendar include AnOnlyChild, Ashlyn, Heron Preston, Foo and Foo, Midnight Studios, One/Of by Patricia Voto, and Tia Adeola, as well as international brands FendiMami and Cos.

Finally, this year’s CFDA/Vogue Fashion Fund finalists Fe Noel, Sukeina, No Sesso, Elena Velez, Judy Turner, Wiederhoeft and BlackBoyKnits also join the week with collection showcases.

The in-person shows will again take place in accordance with New York State Health Guidelines, while the shows and presentations will continue to be presented via Runway360, CFDA’s centralized digital hub and business tool to support American fashion brands’ collection releases year-round.

Puma’s sales in the Q2, FY 2022 rose 18.4 per cent to €2,002 million representing the highest quarterly sales in the company’s history. Sales growth was a result of continued high demand for the brand in Americas region where it grew by 25.6 per cent. The brand’s sales in the EMEA increased 21.5 per cent (ca), driven by strong growth across all key markets in Europe.

Sales in Asia/Pacific declined 1.8 per cent due to COVID related lockdown measures in Greater China, while other major markets in Asia/Pacific recorded strong growth. Sales across all product divisions grew by double digits with footwear sales growing by 19.7 per cent and apparel sales surging by 20.2 per cent. The growth was driven by continued strong demand for the performance categories like Running & Training, Teamsports, Golf and Basketball, as well as for the Sportstyle category.

Puma’s sales in H1FY2022 increased by 19 per cent) to €3,914.1 million. The growth was led by Americas whose sales grew by 33.6 per cent followed by the EMEA region, with all key markets in Europe contributing strong growth to a 23.5 per cent increase in sales. Meanwhile, sales in the Asia/Pacific region declined by 10.4 per cent due to geopolitical tensions and COVID-19 related lockdown measures in Greater China, while other major markets in Asia/Pacific recorded strong growth.

A Ramco Group company, Rajapalayam Mills plans to expand its fabric division’s capacity with an investment of Rs 400 crore. A leading manufacturer of cotton yarn and fabrics, Rajapalayam Mills has been producing a special value-added fabric from its jacquard looms. It now plans to add 166 new looms and set up an unit with a fabric processing capacity of 50,000 meter at Rajapalayam. It also plans to install a 110 KVA/11 KVA own substation inside its Rajapalayam premises to strengthen its electricity infrastructure.

Meanwhile, the fabric unit currently operates at the capacity of 146 looms. In FY22, it has produced 79 lakh meters of fabric as compared to 39 lakhs meters. It sold 91 lakhs meters of fabrics as against 41 lakh meters in FY21, registering a growth of 122 per cent. The total revenue generated by the fabric unit for FY22 was Rs 122 crore while exports stood at Rs 31 crore.

In FY22, Rajapalayam Mills generated revenues worth Rs 705 crorre against Rs 429 crore generated in FY21. Its sale of yarn grew to Rs 550 crore in FY22 as compared to Rs 363 crore in FY21. For the first quarter of this fiscal, total revenue grew to Rs 204 crore against Rs 134 crore in the year-ago quarter, while profit after tax rose to Rs 18 crore compared to Rs 5 crore.

The Indian government has directed the textile industry to prepare a roadmap to reduce the intensity of carbon emissions by 2030 along with the expected financial implications. The government has targeted 2050 as a year for India to achieve carbon neutrality by 2050 and keep global warming below +1.5 degrees Celsius.

It plans to introduce new ways to protect communities and natural habitats, especially the ones threatened by climate change. The decision was taken after the meeting of an inter-ministerial committee last month that discussed ways to implement the roadmap on energy efficiency with a focus on sectors with high emission intensity such as transport.

The committee focused on setting targets for reducing carbon dioxide emissions and adopting respective measures to achieve these targets. The carbon footprint of the apparel industry increases with the rising use of coal and natural gas for electricity and heat production. Globally, the textile and garment sector accounts for 6-8 per cent of total carbon emissions, or some 1.7 billion tons in carbon emissions per year.

China’s polyester/rayon yarn exports increased 118 per cent Y-o-Y to 6,067mt in FY 2021-22. However, it declined 4.4 per cent M-o-M. From January-June, polyester/rayon yarn exports increased 74.12 per cent to 29.14kt from that in the same period of 2021.

Brazil, India and Turkey emerged the top three exporters in the first half of 2022. They exported polyester/rayon yarn worth 1,054mt, 5,816mt and 4019mt in H1 2022 with shares of 38 per cent, 20 per cent and 14 per cent respectively. Compared with the same period in 2021, exports to Brazil increased by 171.7 per cent Y-o-Y on the year and that to India rose by 133.4 per cent. Since October 2021, Turkey has replaced Vietnam and moved up into the top three. In terms of the origin, Jiangsu, Shandong and Zhejiang were still the top three export destinations o with shares changing little.

Exports of polyester/rayon yarn from Jiangsu increased 73.06 per cent with a volume of 17.5kt in H1 2022 from that in H1 2021, that from Shandong rose by 52.8 per cent and that from Zhejiang climbed up by 38.3 per cent.

Manoj Patodia, Chairman, Cotton Textiles Export Promotion Council (Texprocil) has hailed the new enhanced export credit risk insurance cover saying it will enable small exporters to explore new markets and buyers while diversifying their existing product portfolio. The new policy would also provide small exporters fund-based export credit working capital limit of up to Rs 20 crore.

The scheme was launched by export credit provider Export Credit Guarantee Corporation of India (ECGC) to insure up to 90 per cent of the credit risk in export finance and support small exporters by encouraging banks to provide more credit for export amid global economic uncertainty.

The risk cover will be provided by banks under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB-WTPC & PS). It would provide small object-oriented companies export credit at a lower rate from banks, besides other concessions. According to ECGC, the credit support extended for exports was Rs 6.18-lakh crore last fiscal with over 6,700 exporters benefitting from the direct cover issued while over 9,000 exporters benefited under the Export Credit Insurance for Banks as of March-end this year.

Increasing focus on sustainability is propelling the growth of global secondhand apparel market that is likely to expand at 11.2 per cent CAGR from 2021-2031. Sales through online channels are likely to grow at 17.9 per cent CAGR through the assessment period, says latest Future Markets Insights report.

Accounting for over 10 per cent of the world’s carbon footprint, the fashion industry is becoming more eco-conscious. With consumers expecting more transparent processes, the industry is championing the cause for a sustainable fashion movement while abandoning fast fashion that contributes to pollution, climate change and unethical labor practices.

One of the first to advocate for environment-friendly, cruelty-free, inclusive and ethical fashion, British fashion designer, Stella McCartney, is experimenting with new eco-friendly materials and technologies like organic cotton, ethically sourced wool, regenerated cashmere and recycled textiles. Other designers are also fusing high-quality natural and recycled materials to create a diverse range of adventure and outdoor apparel, including sustainable and ethical trousers and T-shirts.

Affordability driving second’s demand

The demand for secondhand apparels is being driven by affordability with consumers looking to buy low-cost disposable items. Sustainable fashion is emerging as one of the industry’s leading necessities with a large part of this change being driven by the pandemic. Used clothing market is also being driven by owning a pre-owned fashion product by local celebrities becoming a trend. Brands and manufacturers are launching several promotional activities to boost market for secondhand clothing.

One of the major exporters of used clothing in the US is expected to grow 2.7 per cent CAGR within North America region. Within the Oceania region, Australia will account for 72.6 per cent of the market Australia. Expansion of multinational secondhand apparel shops in the country will boost industry’s growth. Increased preference for designer clothes will also boost growth. These clothes are being rented rather than bought. They are also being leased by celebrities or fashion influencers driving up long term growth.

Growth trends

The shirts & T-shirts segment of the global secondhand apparel market is expected to grow at a 14.2 per cent CAGR during the forecast period. This will be driven by apparel companies’ increasing commitment towards sustainability. Online retailing is expected to grow at a CAGR of 18.7 per cent with retailers in the secondhand apparel market shifting focus to online used clothing platforms.

Maximum revenues in the seconds market will be by women consumers who will account for 45.2 per cent of the total share. During the pandemic, around 30-45 per cent women consumers purchased designer secondhand apparel online. The demand for secondhand clothing is also being driven by growing sales of luxury clothing in Europe.

To expand their business, secondhand apparel sellers are opting for strategic collaborations and marketing strategies. In July 2021, Madewell partnered ThredUp to sell secondhand clothes while in 2020, Tradesy, a designer reseller, acquired Fitz, a styling service, to compete with The RealReal.

Upgrading the retail sector’s outlook from negative to stable, credit rating agency ICRA projects a 13 per cent revenue growth for the sector in FY2023, with operating profit margins rising by 150 bps to 8.2 per cent Y-o-Y.

Retailers curb discounts as costs increase

Reduced sales compelled retailers to curb discounts during FY2021 and FY2022 as they attempted to protect gross margins. Improved vaccinations and resurgence in economic activities boosted sales recovery post second COVID-19 wave. Sales bounced back swiftly after being impacted by the third wave in January and February 2022, says Sakshi Suneja, Vice President & Sector Head, ICRA. ICRA projects, retailers’ revenues will surpass FY2020 pre-COVID levels by 5-6 per cent in FY2023 as they have recovered almost 90 per cent of pre-COVID levels in FY2022.

Store recovery driven by demographics, rising incomes

Revenues of retail entities analyzed by ICRA will grow 6 per cent in FY2023 as footfalls at stores have surged grown past the pre-pandemic levels in Q1 FY2023, adds Suneja. This will lead to a rise in discounting levels as retailers will compete to grab a higher share of consumers’ spending.

The industry’s prospects will be boosted by favorable demographics, rising disposable incomes, and low penetration of organized retail. In FY2022, most retailers deferred cuts in employee and advertising expenses. They undertook new rental negotiations during the year though the concessions offered to them were lower than 2021.

Expenses on advertisements, employees to surge

Expenditure on advertisements and employees is expected to increase in FY2023. This will boost retailer’s operational profit margins leading to healthy revenue growth. Most large listed companies raised funds in FY2021 to deleverage their balance sheets and boost liquidity. This strengthened their balance sheets despite lower-than-pre-COVID revenues and profits in FY2021.

Retailers also embarked on store expansion plans in FY2022, with companies surveyed by ICRA doubling their investments in new store additions in FY2022 compared to FY2021.

Store additions to increase 45%

Retailers will continue to expand stores in FY23, says the ICRA report. Most companies surveyed will boost investments in new store additions by 45 per cent. Most stores will open in Tier II-III towns. The share of online sales will increase to almost 14 per cent of revenues by 2024 from 8 per cent in 2022. However, they would not replace brick-and mortar sales, says Priyesh Ruparelia, Vice President and Co-Group Head.

Large, listed entities will be adequately supported by strong balance sheets, as indicated by liquidity infusion in them. Their debt coverage indicators will be supported by improved cash flows in FY2023 while debt-to-operating profit will improve to below 1 times as against 1.4 times as of March 2022, adds Ruparelia.

The USFIA (United States Fashion Industry Association) 2022 Fashion Industry Benchmarking Study, indicates, over 50 per cent of the US apparel executives plan to source more from Bangladesh than from Vietnam, Indonesia, China, Cambodia and other competitors in the course of next two years.

The report published by USFIA, shows a staggering 55 per cent of the US apparel executives have expressed interest to increase sourcing from Bangladesh till 2024, including 3 per cent who expected a strong increase.

The report further underlined India led countries or regions the US fashion companies planned to increase their sourcing value in the next two years, It was followed by CAFTA-DR region and Bangladesh while Mexico came in the fourth place in this regard, with Indonesia and Vietnam tied for the fifth position.

CAFTA-DR or Dominican Republic-Central America FTA is the first free trade agreement between the United States and a group of smaller developing economies, which includes Guatemala, Honduras, Nicaragua, Costa Rica, El Salvador and Dominican Republic.

Utilization Declaration (UD) permission taken by the Bangladesh exporters rose by 3.33 per cent to 14,083 during the January-June period of 2022,, as BGMEA. The permission is granted to exporters to import raw materials to execute work orders placed by an importer and it indicates flows of work orders. Among the six month it posted positive growth only in January by 150.57 per cent to 3037 as it recovered from Covid-19 pandemic.

However, the issuance of UD by the BGMEA declined by 12.77 per cent to 2178 in June, which was 2,497 in the same period of last year. It declined by 15.80 per cent to 1,907 in May, followed by9 per cent to 2,452 in April, 11.60 per cent to 2,269 in March, and 6.27 per cent to 2,240 in February. Continuous decline in the last five month made the exporters fearsome and they fear negative growth in the upcoming months.

As an export led growth economy, Bangladesh cannot escape the impacts of the global economic crisis. High inflation in the EU and US is a big concern for Bangladesh, says Professor MustafizurRahman, Distinguished Fellow, Centre for Policy Dialogue (CPD) said.

To avert the impact of the crisis, Bangladesh has to focus on non-traditional markets most in South Asia and East Asian markets, adds Rahman. On the other hand, intra RMG diversification is the key to remain safe amid the crisis. Meanwhile, exporters called for more policy support to overcome the crisis and retain the export growth. In FY22, export earnings from readymade garments rose by 35.47 per cent to $42.61 billion year-on-year.