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US President Joe Biden recently signed a legislation to renew the Uyghur Human Rights Policy Act for an additional five years. Initially passed in 2020, the act authorizes sanctions against Chinese officials responsible for human rights abuses against Uyghurs and other Turkic groups in the Xinjiang region.
In effect since June 2022, the Uyghur Forced Labor Prevention Act (UFLPA) presumes that goods from the Xinjiang region are produced with forced labor unless proven otherwise. As a result, US Customs and Border Protection has detained over 9,000 shipments, totaling $3.4 billion. The Xinjiang region accounts for about 23 per cent of the world’s cotton production, making supply chain oversight critical. Companies are encouraged to implement global standards to exclude forced labor from their supply chains. The renewed Uyghur Human Rights Policy Act continues to impose sanctions and introduces new measures, including a federal procurement ban on goods made with forced labor.
In 2025, the enforcement strategy for UFLPA will focus on utilizing advanced analytical tools and enhanced tracing capabilities to detect and prevent goods produced with forced labor from entering the US market, even through third countries. This will involve improved supply chain analysis and greater international collaboration to safeguard the integrity of global supply chains.
Newly formed company, Catalysts Brands has sold its US operations of the brand Reebok, and is exploring strategic options to sell Forever 21’s operations.
Catalysts Brands is a result of merger between Sparc Group, the operator of renowned fashion brands Lucky Brand, Bauer, Aeropostale, Forever 21, and Brooks Brothers with JCPenney.
The newly created Catalysts Brands is being led by Marc Rosen, Former CEO, JCPenney as its CEO. The company boasts impressive figures, including approximately $9 billion in revenue, 1,800 store locations, 60,000 employees, and $1 billion in liquidity.
Acquired by Authentic Brands Group out of bankruptcy in February 2020, Forever 21 was licensed to Sparc Group, an operator of about 500 stores. Many of the group’s stores are leased by Simon Property, benefiting both companies by maintaining mall occupancy and generating income for Authentic Brands Group, which owns numerous lifestyle and retail brands.
Having filed for bankruptcy protection in 2020, JCPenney was acquired by Simon Property Group and Brookfield Asset Management Inc. for $800 million.
Once known primarily for its traditional textile manufacturing, Shantou is rapidly becoming a shining example of digital transformation in China's textile, apparel, and fashion industry. By embracing cutting-edge technologies like 5G, AI, and advanced robotics, the city is weaving a new path towards a more efficient, sustainable, and globally competitive future.
Embracing the digital thread
Shantou's digital transformation is evident across various sectors of textile and apparel production.
Smart manufacturing: Factories are replacing labor-intensive assembly lines with automated systems, increasing productivity and reducing errors. 5G technology enables real-time data exchange, optimizing production processes and supply chain management.
AI-powered design: Artificial intelligence is being used to analyze fashion trends, predict consumer preferences, and assist in design development, leading to faster turnaround times and more appealing products.
Digital fabric sourcing: Online platforms connect suppliers and manufacturers, streamlining fabric procurement and reducing sourcing costs.
E-commerce and digital marketing: Brands are leveraging online channels to reach wider audiences and build stronger customer relationships.
The impact of this digital shift is significant. First it has increased efficiency. Automation and data-driven decision-making have led to a reported 30 per cent increase in production efficiency in some Shantou factories. It has reduced costs. Streamlined processes and optimized resource allocation have resulted in cost savings of up to 20 per cent. Advanced manufacturing techniques and quality control systems have improved product quality, leading to higher customer satisfaction. Digital technologies are also enabling more sustainable practices, such as reduced water consumption in dyeing processes and minimized textile waste. Guangdong Gongying Information Technology (GZIT) is a leading example of Shantou's digital transformation. The company has developed multiple smart cloud platforms covering the entire textile and garment production chain. Their smart fabric sourcing platform has drastically reduced sourcing time and costs for manufacturers.
However, China's textile industry also faces challenges such as rising labor costs, environmental concerns, and increasing competition from other countries. Shantou's digital transformation offers potential solutions. It shows, automation helps mitigate the impact of rising labor costs. Digital technologies can enable more efficient resource utilization and reduced waste. And innovation and technology adoption will enhance product quality and design, boosting competitiveness in the global market.
Table: Data highlights
|
Metric |
Value |
|
Digitalization rate in Shantou's textile industry |
55.60% |
|
Percentage of smart equipment in raw material processing, weaving, and dyeing |
75% |
|
Increase in production efficiency in some factories |
30% |
|
Cost savings due to digital transformation |
Up to 20% |
A potential game-changer
Shantou's digital transformation has the potential to reshape China's textile and apparel industry. By embracing innovation and technology, the city is not only addressing current challenges but also positioning itself as a leader in the future of textile manufacturing. As other regions follow suit, China's textile industry can leverage digital transformation to enhance its global competitiveness and ensure its continued success in the ever-evolving world of fashion.
The ICAR-Central Institute for Research on Cotton Technology (ICAR-CIRCOT) has partnered with leading industry players to promote innovations in cotton technologies. The institute recently signed four Memoranda of Understanding (MoUs) with Farmtek Solutions, Nashik; Micro Sales India, Nashik; United Cotton Extract, Malegaon; and Prakash Agro Plast, Nashik. These collaborations focus on commercializing the innovative ‘Seed Cotton Collection & Storage Bag with Anti-microbial Finish’ technology.
This groundbreaking technology addresses a critical issue in the cotton industry—contamination and trash content during the collection and storage processes. Typically, trash content in cotton varies significantly, ranging from 1 per cent in premium grades to as high as 15 per cent in lower-quality varieties. By minimizing these discrepancies, the new anti-microbial storage bags aim to standardize cotton quality and enhance market value.
The technology was developed by a team of ICAR-CIRCOT researchers, including Dr AK Bharimalla, Dr N Vigneshwaran, Dr A Arputharaj, Dr Manoj Kumar Mahawar, Dr Kirti Jalgaonkar, Dr Sharmila Patil, Dr Sheshrao Kautkar, and Dr Jyoti Dhakane-Lad. Their efforts underscore ICAR-CIRCOT’s commitment to innovation in the agricultural sector.
In a separate development, ICAR-CIRCOT entered into another MoU with Relegare Agro Life Bio Science for the commercialization of the ‘Nano-Zinc Suspension Production Technology.’ Designed to enhance plant growth and boost crop yield, this cutting-edge technology addresses key challenges in agricultural productivity.
Developed by Dr N Vigneshwaran, Dr AK Bharimalla, and Dr A Arputharaj, the Nano-Zn suspension technology represents a significant step forward in sustainable agriculture. By leveraging nanotechnology, it offers a highly efficient solution to improve crop health and yield outcomes.
These strategic collaborations highlight ICAR-CIRCOT's leadership in agricultural research and innovation. Through the commercialization of advanced technologies, the institute provides ractical solutions to long-standing challenges in cotton storage and plant health, fostering a more efficient and sustainable agricultural ecosystem.
The State-run Cotton Corporation of India (CCI) has procured approximately 46 per cent of the total cotton arrivals in the Marketing Year 2024-25 (MY). Recent data shows, CCI has purchased over 6.3 million bales of kapas (raw cotton), nearly half of the estimated market arrivals of 13.6 million bales (170 kg each).
Lalit Kumar Gupta, Chairman and Managing Director, CCI, reports significant regional purchases. Telangana leads with 3.2 million bales procured, followed by Maharashtra at 1.6 million bales. In Gujarat, procurement reached 500,000 bales, while Andhra Pradesh and Karnataka each accounted for 300,000 bales. Madhya Pradesh contributed 225,000 bales, Odisha 125,000 bales, Rajasthan 50,000 bales, Haryana 30,000 bales, and Punjab 1,000 bales.
CCI has ramped up its purchasing activity in recent weeks, increasing from 3.1 million bales as of mid-December.
Despite CCI's aggressive procurement, raw cotton prices remain below the government-set minimum support price (MSP). Kapas prices are currently between Rs 7,100 and Rs 7,200 per quintal in major producing regions, compared to the MSP of Rs 7,121 per quintal for medium-staple cotton and ₹7,521 per quintal for longer varieties.
Pressed cotton prices have risen by Rs 1,000-1,250 per candy (356 kg) in the past week, stabilizing between Rs 53,500 and Rs 54,500 per candy. Additionally, cottonseed prices have increased by 10-15 per cent to Rs 3,400-3,500 due to tight supplies, said Ramanuj Das Boob, a sourcing agent in Raichur.
However, mill buying remains sluggish, with no significant bulk purchases reported, Boob noted.
Daily cotton arrivals now exceed 200,000 bales, primarily from Maharashtra and Telangana. Delayed harvests and assembly elections in Maharashtra slowed initial arrivals but are now gaining momentum.
Telangana has recorded over 3.44 million bales of arrivals so far, with CCI procuring 3.2 million. In Maharashtra, out of 2.69 million bales, CCI has purchased 1.6 million.
Approximately half of the estimated crop size of 30 million bales has arrived in markets as of early January. The Committee on Cotton Production and Consumption projects a slightly lower crop size of 29.9 million bales, while CAI estimates 30.2 million bales, citing reduced acreage during the kharif season.
Q1, FY25 results of Uniqlo operator, Fast Retailing missed analyst expectations, as a sharp decline in profits from its China operations overshadowed robust sales in Japan.
The company’s operating profit rose by 7.4 per cent to 157.6 billion yen ($996.84 million) for the three months ending in November 2024, compared to the same period last year. However, this figure fell short of the consensus forecast of 160 billion yen by six analysts polled by LSEG. Despite this, Fast Retailing maintained its full-year operating profit forecast of 530 billion yen, putting it on track for a fourth consecutive year of record earnings.
Domestic sales in Japan received a boost from a tourism surge fueled by the weak yen, with duty-free shopping contributing significantly. Colder-than-usual weather in December also increased demand for thermal wear. In contrast, sales growth in China slowed due to unseasonably warm weather in October and November, leading the company to adopt a ‘scrap-and-build’ strategy, which involves redesigning underperforming stores instead of expanding rapidly.
Fast Retailing also continued its aggressive expansion strategy in North America and Europe. In the southern US, the company opened five Uniqlo stores in Texas in October, reflecting its goal of becoming the world’s top clothing brand.
The company also set a precedent for wage increases in the service industry in Japan. Following a significant pay hike in 2023, Fast Retailing announced another aggressive pay raise, effective March 2025, to retain skilled workers. Wages for full-time headquarters and sales staff will increase by up to 11 per cent, while annual salaries of new employees will rise by approximately 10 per cent.
Europe plans to introduce several new laws for the fashion industry in 2025. On January 1, 2025, it passed the new Extended Producer Responsibility (EPR) regulation that requires the European Union to collect end-of-life textile products separately. Besides restricting the destruction of items that could still be used, the regulation also paves the way for large-scale textile recycling in the EU.
On December 30, 2024, the EU passed a law against deforestation. Targeting large corporations for the time being, the law will be applied to SMEs in H2, FY25. Passed in 2023, the law bans the sale of products associated with deforestation and forest degradation in the European market.
In 2025, EU also commenced the test phase of issuing the Digital Product Passport (DPP). The industry will test the first digital solutions in 2025 to enable consumers to access product information. A phased implementation of the DPP law will occur after 2025, with the goal of applying it to as many products as possible by 2030.
The European Forced Labor Regulation is also expected to be formally adopted by the European Commission in 2025. Meanwhile, the directive on environmental (green) claims (‘green product’, ‘biodegradable’, etc), is due to be negotiated this year between the European Parliament, the EU Commission and the Council of the European Union.
YKK Corporation, a leading global fastener manufacturer, announced today that its long-term goal of reaching net-zero greenhouse gas (GHG) emissions by FY2050 has been validated by the Science Based Targets initiative (SBTi). This achievement places YKK among the most ambitious companies in the Textile, Apparel, Footwear, and Luxury Goods sector, demonstrating its strong commitment to combating climate change.
The SBTi, a global body that guides corporate climate action, recognizes targets as ‘science-based’ when they align with the Paris Agreement's goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels. YKK’s long-term targets include reducing absolute scope one and two GHG emissions by 90 per cent and scope three emissions by 90 per cent from FY2018 levels by FY2050. The remaining 10 per cent of emissions will be addressed through carbon absorption and removal.
This milestone builds on YKK’s earlier SBTi validation in 2021 for near-term goals, which include a 50.4 per cent reduction in scope one and two emissions and a 30 per cent reduction in scope three emissions by FY2030.
“YKK’s validation reflects our commitment to sustainability and our philosophy of the Cycle Of Goodness,” said Minoru Maeda, Executive Officer. “Through technological innovation and collaboration, we aim to create better products while achieving net-zero emissions.”
Under its YKK Sustainability Vision 2050, the company continues to integrate environmental responsibility across all operations, reaffirming its dedication to a sustainable future.
Spring Fair, the UK's leading event for home, gift, and fashion, has renewed its exclusive partnership with Faire, the world’s largest global wholesale marketplace. This collaboration will offer UK independent retailers year-round support, bridging the gap between online and offline wholesale to help them trade more efficiently and faster.
Expanding on the success of their 2024 partnership, Spring Fair and Faire will now empower up to 20,000 independent retailers by offering seamless access to both in-person and online brands. Retailers will benefit from a continuous 12-month connection, allowing them to source products, discover new brands, and manage orders outside the confines of the physical trade show.
The extended Spring Fair-Faire partnership, coinciding with the event’s 75th anniversary, brings exciting new offerings for 2025. Retailers will have Always-On Access to connect and trade with brands year-round, reflecting modern retail's 24/7 nature.
Additionally, Exclusive Incentives such as 50 per cent off first orders for new Faire users and free shipping with the code Springfair will be available. Faire will also offer Increased Visibility & Education, including a dedicated stand and MasterClass sessions to help retailers optimize the hybrid wholesale model.
Charlotte Broadbent, UK General Manager at Faire, emphasized, "This partnership gives independent retailers the best of both worlds, year-round online access combined with the tactile experience of Spring Fair."
With over 200 brands on the Spring Fair collection at Faire.com, this expanded collaboration aims to streamline the buying process and foster a more connected, future-proofed retail industry.
Spring Fair 2025 will take place from February 2-5 at the NEC Birmingham, where retailers and exhibitors can connect with Faire before, during, and after the event.
Texworld Apparel Sourcing Paris will return to the Paris-Le-Bourget Exhibition Centre from February 10 to 12, 2025, bringing with it exciting innovations and an enhanced visitor experience. Over 1,200 weavers and garment makers will showcase their products in Halls 2, 3, and 4, marking a new chapter for the event as it adopts a redesigned layout to better serve attendees.
The exhibition will highlight a diverse range of global sourcing, with creative collections offered at competitive prices for the fashion industry. Traditional sourcing nations like China, Turkey, India, South Korea, and Taiwan will continue to play a key role, while new sourcing areas such as Malaysia, Singapore, the UK, Vietnam, the Netherlands, and Egypt enrich the show's offerings. Dutch exhibitors like Quality Textile, Nooteboom, and Verhees Textiles will present cutting-edge cotton collections, while Korean companies ONK and W-Tex will feature innovative knitwear.
Sustainability will also be a focal point at the show, with the new ‘Initiatives’ zone in Hall 4 showcasing eco-friendly solutions. Vietnamese company Bao Lan Textile, for example, will display fabrics made from pineapple leaf fibers, known for their natural antibacterial properties and UV protection. The China Textile Information Centre's trends forum and the Econogy Hub will also focus on sustainability in textiles.
Apparel Sourcing will see the participation of over 500 exhibitors, offering a broad range of finished products, clothing, and fashion accessories. A key highlight will be the focus on local and near-sourcing, with products from Africa, including companies from Ethiopia, Rwanda, and the Arise Integrated Industrial Platform in Togo, Benin, and Gabon. Ukrainian exhibitors, supported by their national textile association, will add to the Euromed offering.
The event will also feature new exhibitor itineraries to optimize the sourcing experience. These include the Econogy Finder trail for sustainable textiles, the Small Quantity trail for limited production runs, and the Hand Made trail for authentic, handcrafted products. With an expanded range of exhibitors and services, Texworld Apparel Sourcing Paris 2025 promises to be a must-attend event for the global fashion and textile industry.
