The second edition of the production linked incentive (PLI) scheme for textiles may allow some relaxations on the mandatory requirement for applicants to form a new company for production.

The PLI scheme for textiles was introduced in 2021 with an outlay of Rs10,683 crores to promote the production of manmade fiber fabrics and apparels as well as technical textiles. Of the total 67 applications received under the first edition of the scheme, 64 applicants were selected, and letters of approval were sent to 55 selected participants till October 2022. Investments of over Rs1,536 crores have already been made.

While for the first edition of the PLI scheme, the minimum investment requirement andthe turnover requirement was high, these are likely to be brought down considerably for the second edition of the scheme.The minimum investment requirement for getting various levels of incentives is likely to be much lower in the second edition of the PLI scheme. The second edition of the scheme is likely to be available for cotton items as well and not just be restricted to manmade fiber and technical textiles.

However, the incentives offered under the second edition are also likely to be lower than under the first edition.

Major textile and clothing fairs in China are postponing their March 2023 editions. The Chic clothing trade fair and the Intertextile fabric event, initially scheduled from March 8 to 10, 2023, will instead be held from March 28 to 30, 2023.

This postponement is expected to give local and foreign exhibitors and visitors enough time to plan their trade fairs and take advantage of the many international business opportunities offered by the reopening of the Chinese border. From January 8, 2023, foreign travellers will no longer face the series of tests and quarantines previously in place when entering China, in line with the zero Covid strategy.

The announcement of this postponement comes at a time when many countries are introducing health restrictions on travellers from China. The country has been experiencing a new wave of infections since December last year. The United States, Canada, Australia, Japan, France, Italy and Spain are demanding negative tests before departure. And the European Union could take measures at the continental level.The health situation led major Chinese trade fairs to postpone several times and cancel their various seasonal events, against the backdrop of the contraction of manufacturing activity, which lasted until December 2022.

Chinese fashion brand Shein’s products are health hazards and contain chemicals. So says Greenpeace.

Out of 47 Shein products 15 were found to contain hazardous chemicals. Five of the products violate EU laws and a vast majority of the products contain chemical levels high enough to be of causes of concern.

Not surprisingly it is the workers at Shein’s suppliers, people of the neighboring societies and the Chinese environment that carry the majority of Shein’s dangerous chemical addiction.

Shein was founded in China in 2008 and utilizes TikTok to gain popularity by letting influencers promote its clothing collections. Shein is to be found in many countries around the world from Thailand, Singapore and Vietnam to Sweden, Finland and Denmark. Also, Shein’s ultra-fast fashion business model catering to young people perpetuates the extremely rapid trend cycles of cloth production and overconsumption.

Shein has become extremely popular and has grown exponentially by offering thousands of new designs every day for young people and children via social media. Shein is upgrading hundreds of factories in its supply chain. Shein is the most searched fashion brand globally, topping searches across 113 countries, and is the largest online-only retailer in the world, producing between 35,000 and 1,00,000 new garments a day.

Victoria’s Secret brand CEO Amy Hauk has resigned. The brand has struggled in recent years as some customers have rejected its marketing replete with supermodels and Angels fashion shows and switched to niche bra brands. Its clothing has gone out of fashion among some longtime buyers. The company overhauled its advertising, began using a broader range of models and ended its Angels fashion show. The company also bought rival Adore Me.

But Victoria’s Secret sales have been uneven since the start of the pandemic. Sales tumbled in 2020 during the peak of Covid but bounced back in 2021. They are projected to fall by up to seven per cent this year.Victoria’s Secret revenues for the third quarter fell nine per cent. Comparable sales for the third quarter decreased 11 per cent compared to the third quarter of 2021.International revenues were up 43 per cent.

After nearly a year and a half as an independent, publicly-traded company, the company continues to make significant progress in its transformation and mission to celebrate and champion all women. It has created a solid financial platform with a new, more agile operating structure, and even in a very challenging macroeconomic environment was able to deliver third quarter operating income and earnings per diluted share results above the previous guidance.

The Philippines want the EU to relax Generalized Scheme of PreferencesPlus requirements.

The European Union’s double transformation rule requires that two stages of production take place in a free trade area region. It also says that under cumulation rules, contracting parties to a preferential trade agreement or beneficiary countries under the GSP schemes may source non-originating raw materials or components from specified countries and count them as originating. The country feels rules of origin requirements of the EU hamper the garments sector’s utilization of the special incentive arrangement and put the competitive position of Philippines manufacturers at risk.

So the country is seeking liberal rules of origin for products of interest and inclusion of export pillars in zero tariffs product liberalization of the EU-Philippines free trade agreement. GSP Plus allows duty-free entry of over 6,000 products from the Philippines to the EU, on the condition that the government upholds 27 international conventions on human rights, labor, environment and climate action and good governance.

The Philippines has recorded its highest utilization rate in EU GSP Plus at 76 percent. However, the EU has been vocal in its criticism against the Philippines due to its alleged human rights violations and suppression of freedom.

For the first six months of the 2022-23 fiscal, Bangladesh’s apparel exports grew by 15 per cent yearonyear.

Knitwear exports had a 13 per cent share and woven garment exports had a 18 per cent share. The country’s apparel exports grew by 15 per cent in December 2022.

Considering the data of the calendar year, Bangladesh marked a new milestone in readymade garment exports in 2022 amid geopolitical tension, global economic turmoil, and natural disasters. In 2022 Bangladesh’s readymade garment exports grew by 27 per cent compared to 2021. In 2022 Bangladesh’s export earnings from knitwear grew by 26 per cent and earnings from woven exports grew by 29 per cent.

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.

India has gained an advantage over China and Vietnam in overall textile exports to the US because of lower power and water costs.

Moreover, orders for spindles are shifting from China to other countries, especially India, after the US banned imports from the Chinese manufacturing hub of Xinjiang because the products were produced with forced labour.

The year 2022 was an eventful year for the Indian textile sector. Under the National Technical Textile Mission (NTTM), 74 research proposals were approved in the category of specialty fiber and technical textiles. Seven PM Mega Integrated Textile Region and Apparel (PM MITRA) parks have been approved to develop world-class infrastructure including plug-and-play facilities with an outlay of Rs 4445 crores for a period up to 2027-28. The guidelines in respect of the scheme have been published. Proposals from 13 states have been received. A total of Rs 621.41 crores in subsidy were released in 3159 cases under the Amended Technology Upgradation Fund Scheme and special campaigns were organized at major clusters for settling backlog cases. A total of 73919 persons have been provided training of which 38823 persons were provided placement under the Samarth scheme for capacity building in the textile sector.

Burberry’s new collection is inspired by the rabbit. The year 2023 is observed as the year of the rabbit. So the rabbit is a key motif running throughout the collection, including cartoon-inspired iterations, some positioned back-to-back so that the ears meet to form a heart shape while others sit atop the Burberry logo.

The exclusive collection features the Thomas Burberry monogram playfully reimagined with rabbit ears. This is adorned on women’swear, men’swear and children’swear, the signature Lola bag, accessories, cashmere and silk scarves.

Burberry plans to increase sales in a big way. The plan is to double sales of leather goods, shoes and women’s clothing and expand outerwear sales by 50 per cent in the next threeor five years.Longer term, the aim is to increase accessories from 36 per cent of sales to over 50 per cent. Leather goods are the profit drivers of the industry, with successful handbags generating gross margins of over 80 per cent so if the company can sell more It bags, that goal looks realistic.

Focusing on Burberry’s heritage and made-in-Britain status should give the fashion house more of a coherent identity.Burberry has been pursuing a fusion between social media celebrities and the blockchain, including the launch of NFTs in the gaming world.

Cambodia’s exports of apparel and clothing accessories (knitted) fell by nine percent during November 2022 as compared to November 2021.

However, the shipment of non-knitted apparel grew by 14 percent during the same period. From January 2022 to November 2022 Cambodia’s apparel exports increased by 16 percent year on year.

The decline in exports in the latter half of 2022 was caused by a slowdown in global demand coupled with inflationary pressures across the world. The downward trend of the second half of 2022 is expected to continue into the first semester of 2023. The sector, however, is hopeful of a rebound in global demand in the second half of this year.

Apparel exports were 40 percent of Cambodia’s total export income during January 2022 to November 2022. The country’s knitted or crocheted fabric imports during January 2022 to November 2022 were 1.5 percent higher than imports in the same period last year.

Manmade fiber imports grew by ten percent as compared to January 2021 to November 2021. But cotton imports slipped four percent during the period under review compared to the same period of 2021. Meanwhile, China was the leading source of foreign investment in Cambodia’s garments, footwear and travel goods sector, accounting for 66 percent of approved new investments in 2021.

Old is gold is what luxury brand retailers are realizing today as they focus on extending the lifetime of pre-used luxury products through second-hand sales. In fact, it is a new and profitable channel within the larger luxury market. Global second-hand luxury goods market is expected to grow at CAGR of 9.4 per cent from 2022-27 as customers prefer high-end fashion apparel and accessories at lower prices. Focus on sustainability and the second-hand market’s capacity to give premium brands a new lease of life within the tighter purse strings of young customers has led to its popularity.

Women buyers drive market

An IMARC study indicates the global second-hand luxury goods market reached $28.3 billion in 2021 and is expected to touch $47.1 billion by 2027. With the consumer base of luxury market having around 400 million consumers in 2022 and expected to expand to 500 million by 2030, many premium branded products will find their way into the second-hand market as customers become more choosy and knowledgeable at each income level.

The outbreak pandemic completely changed global economic and social dynamics and led to increasing demand for various online reliable platforms to buy and re-sell luxury goods of premium brands. This portfolio of pre-loved and pre-owned luxury items include handbags, jewellery, watches, clothing, small leather goods, footwear, accessories, and many others with handbags exhibiting a clear dominance in the market.

And it is out and out women buyers who dominate the global pre-loved luxury goods market as they want to be on-trend whenever and wherever without burning a hole in their pockets.

Most luxury brands offer goods that have an extended warranty period, which makes them suitable for the resale market. Re-selling of these items instead of discarding them after using them a few times is beneficial to both the seller and the new buyer. The pre-used premium goods are also useful in minimizing the dependence on high-quality raw materials for manufacturing new products and reducing waste production levels.

Offline through versatile outlets lead sales

The old-fashioned stigma of wearing and re-use pre-owned apparel and accessories has dissipated as being seen as on-trend and chic at affordable prices has parachuted the sales figures in this market. With younger consumers spearheading this niche segment, both online and offline are doing well. In the online segment, many web resale sites are entering into strategic partnerships and alliances with luxury brands for improving the image of second-hand luxury products by promoting them as pre-loved products ready to be used again by a new buyer.

The rising popularity of limited-edition collections and fashion drops has also created a scarcity of certain premium items in the online markets and boosted sales. Currently, offline channel accounts for the majority of total market share as these products are easily found in pop-up stores, markets, bazaar-style fundraisers, privately-owned consignment shops, auctions, charity events, garage sales, and exhibitions among others.

Although the second-hand market still cannot hold a torch to the premium luxury segment, the opportunities are huge. At the regional level, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where Europe dominates.

The global second-hand market has some big players which include: the Fashionphile Group, Fendi, Garderobe, Inseller, Luxepolis, Luxury Closet, Inc., So Chic Boutique, The Closet, TheRealReal, Timepiece360 and Vestiaire Collective among others.

Second-hand is just another choice for the luxury apparel segment as it ticks all the right boxes for sustainability at affordable prices and that’s the way to go for the aspirational middle-class in India and around the globe.