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"With growing eco-landscape, retail giant REI has come up with a new set of sustainability standards, which will apply to 1,000-plus outdoor brands it sells currently, and the ones it will sell in the future. With immediate effect, companies will need to abide by the code of conduct, pledging to uphold environmental and social responsibility in the supply chain. REI encourages brands to use either REI's own factory code of conduct or a code of conduct that’s aligned with internationally recognized best practices, like those published by the International Labour Organization. Companies will also have until 2020 to remove BPA, oxybenzone, long-chain PFAs, and certain dangerous flame-retardant chemicals from their products, and to make sure all their down and wool is sourced humanely."
With growing eco-landscape, retail giant REI has come up with a new set of sustainability standards, which will apply to 1,000-plus outdoor brands it sells currently, and the ones it will sell in the future. With immediate effect, companies will need to abide by the code of conduct, pledging to uphold environmental and social responsibility in the supply chain. REI encourages brands to use either REI's own factory code of conduct or a code of conduct that’s aligned with internationally recognized best practices, like those published by the International Labour Organization. Companies will also have until 2020 to remove BPA, oxybenzone, long-chain PFAs, and certain dangerous flame-retardant chemicals from their products, and to make sure all their down and wool is sourced humanely. If a company refuses to make these changes, REI will terminate contract with those suppliers and look out for other players.
REI has also listed a host of ‘preferred attributes’, including Bluesign approval (certifying a chemically clean
manufacturing process); fair trade certification; use of the Higg index (a metric designed by the Sustainable Apparel Coalition to enable companies to measure their own sustainability attributes); adoption of the Responsible Wool Standard and either the Responsible Down Standard or the Global Traceable Down Standard (all third-party auditing groups that certify humane treatment of animals and best use of the land they graze on); use of organic cotton; and use of recyclable or compostable packaging.
Greg Gausewitz, Product Sustainability Manager, REI says the preferred attributes will be one of the many factors REI takes into account when considering creating a relationship with a new company. They are also intended to call attention to the brands that are using those certifications, educate customers about why those certifications matter, and build demand and loyalty for those products.
Backed by strong groundwork
Since last summer, REI consulted around 60 brands as it drafted the new standards. Gausewitz points out, the company wanted to make sure the standards were feasible, not just for big companies like Patagonia but for up-and-coming brands too. For Nemo Equipment, it’s difficult to carve out time and resources to figure out what you should be doing on the sustainability front, highlighted Theresa Conn, supply chain and sustainability coordinator, Nemo. With these standards, one can easily pick the top 10 things to spend their energy on.
Does money matter?
Throwing light on this very crucial subject, Ali Kenney, VP-global strategy & insights, Burton says costs are only high if you try to implement change right away. But if you take a longer-term view, the costs are lower. That’s because companies often do product development two seasons ahead. To implement supply chain changes now would mean switching up the manufacturing process for items that are already in production, possibly re-prototyping and perhaps even switching factories, none of which is easy. Implementing change two years in the future, on the other hand, means the company has time to start from scratch with its new line.
Many brands use the same factories, and if they are going to those factories asking for sustainable practices, it’s easier to effect change. Indirectly, one can get a large number of suppliers working toward common positive outcomes. Danielle Cresswell, Sustainability Manager, Klean Kanteen, observed there weren’t resources or guidelines for going green. It found out that partnering with high quality factories was a critical investment because they are able to meet more stringent environmental standards. Naturally, those factories are more expensive. However every company must make trade-offs and choose where to put limited resources.
"Sri Lanka has created a niche in luxury fashion and increasingly top global fashion houses are expanding their bases in the country. Jude Gayantha Perera, Chief Curator, Stylist.lk, points out Sri Lanka’s market for international luxury fashion brands is on the cusp of a renaissance. And it has moved its way up evading all the hardships it was facing for close to three decades. During those years, Sri Lanka’s international reputation as a market diminished and international operations opted out of the country. Therefore, the market was left untouched until it started gaining stability amidst post-war developments."
Sri Lanka has created a niche in luxury fashion and increasingly top global fashion houses are expanding their bases in the country. Jude Gayantha Perera, Chief Curator, Stylist.lk, points out Sri Lanka’s market for international luxury fashion brands is on the cusp of a renaissance. And it has moved its way up evading all the hardships it was facing for close to three decades. During those years, Sri Lanka’s international reputation as a market diminished and international operations opted out of the country. Therefore, the market was left untouched until it started gaining stability amidst post-war developments.
High literacy rates a major boost
Sri Lankans’ ability to read and interact via digital channels has led to a much higher tendency to read and watch international fashion content, from magazines, online shows and digital screenings. This has given rise to consumers who have relatively high awareness about value and appeal that international fashion brands hold. For many Sri Lankan consumers, an opportunity to experience their favourite international brands on offline channels, at retail fronts as real, immersive experiences are highly desirable. This is one of the major reasons why brands are planning their entry in this growing market.
Sri Lanka is strategically well-placed in international sea and air routes and this has made the island extremely receptive to new ideas. Sri Lankan markets
are surprisingly receptive to foreign products, brands and retail fronts, making it a welcoming place for business. And there is a growing explosion of upper-middle classes, owing to increasing incomes and accessibility to products and services. Sri Lanka has been experiencing this shift leading to a greater interest in designer products, lifestyle purchases, luxury spends and unusual retail experiences.
Physical stores score over e-commerce
While e-commerce is on the rise, Sri Lanka’s import regulations, and lack of last-mile-delivery setups mean most consumers still prefer cash on delivery or straight up retail—especially for fashion where fit and look are of paramount importance. This has led to more room for traditional retail even within at the thick of the digital revolution, especially for those carrying the appeal of international brands.
What’s more Sri Lanka has a growing community of creative practitioners giving rise to a leading group of consumers who fuel a new visual culture. This means a growing number of designers, photographers, stylists, curators, artists, etc, who have an intrinsic interest and unusual viewpoints on style and fashion. Sri Lanka is seeing the beginning of strong trends, visual subcultures and Instagram-worthy portrayals of creative lifestyles. This is a strong influencer for consumer directions and buying patterns, often inspiring new interest in lifestyle purchases.
Major travellers’ influx
Sri Lanka has been topping travel lists since 2012 with high-spending travellers on the rise. The number of inbound travellers is always on the rise, and a niche that every brand is trying to get in on is travel retail. Fashion retail for travellers is not the same as those targeting domestic markets. But, Sri Lanka’s constant flux of globetrotters is an excellent opportunity for luxury brands to target their destination collections, travel wardrobes and seasonless looks that work with the island’s forever-summer tropical appeal.
"US policy makers have put themselves in a fix with the imposition of duty on imported products. While clothing and footwear haven’t come under the duty radar but the scenario seems grim. Clothing accounts for about $35 billion of China’s annual exports to the US and footwear $15 billion, around 10 per cent of the total, reveals Dylan Chu, China consumer discretionary analyst, CLSA. The repercussions of the policy enactment may lead to shifting to some factories outside China to offset higher labour costs."
US policy makers have put themselves in a fix with the imposition of duty on imported products. While clothing and footwear haven’t come under the duty radar but the scenario seems grim. Clothing accounts for about $35 billion of China’s annual exports to the US and footwear $15 billion, around 10 per cent of the total, reveals Dylan Chu, China consumer discretionary analyst, CLSA. The repercussions of the policy enactment may lead to shifting to some factories outside China to offset higher labour costs.
Owing to rising wages, Chinese manufacturing has been losing sheen and countries like Bangladesh are quick to grab the opportunity, thanks to zero-tariff access to Europe for its textiles, much like Vietnam. Other potential sources of supply include Cambodia, Indonesia, the Philippines and India. Africa is also developing its manufacturing base in Ethiopia, Kenya and countries in the north of the continent. However, the lion’s share still goes to China, which accounted for 36.4 per cent of global clothing exports in 2017, as per the WTO figures.
Cause for concern
Moving further afield means longer lead times. Vietnam might take the gains here as supplies can be trucked in
from its northern neighbour. In spite of this, it is estimated that the lead time for apparel would typically be 45 to 90 days in Vietnam, compared to as little as 10 to 20 days in China. Zara chain is able to get the hottest trends to consumers within weeks. That’s because the company makes about 60 per cent of its products close to its headquarters, in Spain, Portugal and Morocco.
With such a challenging scenario, consumers should be prepared to pay more for the latest looks. What’s more, having more fashion hits, and fewer misses, should mean less products being sold at a discount. That should mean more of a cushion to absorb higher duties. Now as consumers are used to cheaper clothing, the task in hand is to push the extra costs further down the supply chain, forcing manufacturers to share some of the pain, which wouldn’t be easy either. For now, retailers hope that speed to market wins, and consumers prioritise latest colour or style over the bargain basement.
US functional fabric fair powered by Performance Days, will take place from July 23-24 July, at the Javits Center in New York. The two day fair, has attracted a strong combination of top textiles manufacturers, suppliers and service providers, along with top sports fashion designers, product managers, purchasing agents, and textiles decision makers representing active clothing and functional wear manufacturers.
Around 70 companies are exhibiting and more than 400 attendees from 12 countries have registered for the Functional Fabric Fair powered by Performance Days. Held in the River View Galleria of the Javits the event will showcase latest trends in fabric development for the functional textiles industry and offer a sourcing marketplace for high performance functional fabrics and accessories. Functional Fabric Fair powered by Performance Days is staged during New York Market Week and co-located with multiple fashion market events at the Javits Center.
Exhibiting companies will present functional fabrics, branded technologies, treatments, laminates, paddings, finishes, and accessories such as yarns, tapes, prints, buttons and zippers. The inaugural event also includes complimentary workshops, industry presentations and professional networking and matchmaking programs.
Exports of textile and wooden jackets were 57.37 per cent of the total export value of Central Java during January-May 2018. Textile products contributed 41.68 per cent and wood contributed 15.69 per cent. The export value of Central Java in May, increased 10.02 per cent year on year. Cumulatively the export value in January-May 2018 rose 13.80 per cent from the corresponding period in the previous year.
The main export destinations during January-May 2018 were the United States, Japan and China. Exports to these three countries from January to May 2018 were 46.88 per cent of Central Java’s exports during this period. Exports from Central Java to the Asean region from January to May 2018 was 10.13 per cent of the total exports. Exports to the EU region were 13.45 per cent.
Central Java Province, is one of Indonesia’s tourist destinations, which offers various kinds of tourist attractions whether natural, cultural, or manmade. Central Java is the island’s cultural, geographic, and historic heartland. Universities, dance schools, pottery, handicrafts, textiles and carving give the region a rich culture and interesting shopping. The cool slopes nestles numerous hill resorts.
HGH India is on in Mumbai from July 3 to July 5. This is a trade show for home textiles, home décor, gifts and houseware. It offers an opportunity to source world-class merchandise. The show is witnessing more than 550 brands and 100 exhibitors from 30 countries. They are showcasing their latest designs and product innovations. Approximately 35,000 buyers, specifiers and decision makers are expected.
HGH India has grown almost 40 per cent since last year with 600 manufacturers and brands. India is in a position to promote the home textiles industry as tastes are evolving and becoming more trendy and fashionable. The Trend Pavilion at HGH is particularly important as it sets the theme for home textile and décor trends for the Indian market. Under the theme Indian heritage, HGH India 2018 is promoting handicrafts, khadi, coir and jute products, all of which are a part of India’s rich cultural heritage.
Export Promotion Council for Handicrafts, Handicrafts Mega Cluster Mission, Council of Handicrafts Development Corporation, Kashmir Chamber of Commerce and Ministry, National Jute Board and many more are present at HGH India 2018 to exhibit their high quality products.
This year’s home trends are presented under the theme Transition, which forecasts the Indian domestic market for 2018-19.
Intertextile Pavilion Shenzhen will be held in China, July 5 to 7, 2018. Thousands of big-name Chinese and global fashion brands will come together to source the highest quality apparel fabrics and accessories brought by a total of 968 exhibitors from 12 countries and regions, including China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Korea, Taiwan, Thailand, Turkey and the UK. Buyers will have around 38 per cent more suppliers to source from this year.
Innocence Couture from India will exhibit crafted embroideries, zari/tambour beading embroideries and fabrics for wedding dresses, evening gowns and luxury ladies’ wear. UPW from Hong Kong will feature products ranging from woolen spun, semi-worsted and fancy twisted yarns that are all produced in their own facilities. As one of the leading yarn mills with stock service supported, the company’s products are design-led with massive stock holdings of colors and qualities.
Intertextile Pavilion Shenzhen has established itself as the go-to platform for the Chinese women’s wear sector due to its location in the country’s fashion industry capital, while it is being increasingly used by suppliers from around Asia, in particular Japan, Korea and Taiwan, to gain access to all the big Chinese and global retailers who source at the fair.
As per DHL Global Trade Barometer figures, India’s trade growth in the third quarter will continue to exceed that of the world’s largest economies at 79 points despite a slight decrease in the pace of growth. This growth is driven primarily by air imports in high technology, machinery parts and industrial raw materials, and air exports for chemicals & products and consumer fashion goods are expected to also perform well. Ocean trade shows robust growth on both the import and export fronts, with industrial raw materials driving the positive outlook for ocean exports. Basic raw materials and high technology chemicals & products are expected to drive the import demand.
Developed jointly by DHL and Accenture, the DHL Global Trade Barometer provides a quarterly outlook on future trade, taking into consideration the import and export data of seven large economies: China, South Korea, Germany, India, Japan, the United Kingdom, and the United States. Together, these countries account for 75 percent of world trade, making their aggregated data an effective bellwether for near-term predictions on global trade. The DHL Global Trade Barometer, which assesses commodities that serve as the basis for further industrial production, predicts that global trade will continue to grow in the next three months, despite slight losses in momentum.
The European Union (EU) Commission is investigating the proposed acquisition of Solvay’s global nylon business by BASF, under the EU Merger Regulation. The Commission is worried as the merger may reduce competition in supply of key inputs in the nylon production chain. The proposed transaction involves Solvay and BASF, two companies active in the nylon industry, where both manufacture nylon compounds and nylon fibres.
The transaction is likely to create an important player in the nylon compounds market with a market size almost double that of the closest competitor. The merged entity would also control substantial parts of the merchant markets and of the production capacities at all levels of the nylon production chain. Moreover, no other player would be similarly fully integrated in the production chain. Competitors will thus depend on the merged entity to continue to supply them with one or more essential inputs.
A steady flow of store closings and unenticing merchandise is battering specialty apparel and department store stocks. Recently, Goldman Sachs analyst Alexandra Walvis initiated coverage of Tapestry Inc., Tiffany & Co. and VF Corp. with a buy rating. Several days before that, UBS had initiated coverage on a basket of nearly two dozen apparel and accessories stocks, including buy ratings on the likes of Nordstrom Inc. and American Eagle Outfitters Inc.
And earlier in June, Omar Saad of Evercore ISI closed short positions in Kohl’s Corp. and Dick’s Sporting Goods Inc, and offered a rosy view on the prospects of Macy’s Inc.The biggest challenge for apparel retailers in recent years hasn’t been a failure to adapt to Amazon.com rather it’s a different kind of online challenge. Social media and live-streamed runway shows have meant that shoppers see new styles faster than ever before.
