JAAF thanks all industry stakeholders for helping sector meet commitments
The Joint Apparel Association Forum (JAAF) thanked all industry stakeholders for ensuring that the sector meets its commitments in the face of unprecedented challenges, as apparel export earnings expanded by 30 per cent Y-o-Y upto 446 million in May 2022.
Accounting for approximately 6 per cent of Sri Lanka’s Gross Domestic Product (GDP) and almost half of all merchandise exports, the apparel sector serves as a bulwark of the nation’s economy. While the sector continues to face significant limitations from continuing disruptions in energy supply and logistics, cumulative export earnings from the sector increased by 16% YoY up to US$ 2.2 billion as at May 2022.
The sector is still hopeful of achieving the export target of $6 billion by the end of 2022, however, it will have first overcome significant obstacles ahead, says YohanLawarence, Secretary General, JAAF.
The sector needs to prioritize support for SME apparel producers, who are an equally essential component of the industry that is also facing severe challenges in day-to-day operations, adds Lawrence.
Despite unprecedented domestic volatility, unstable global market conditions and escalating raw material and logistics costs, Sri Lanka’s apparel sector has provided extraordinary support to the national economy, including direct surrender of export proceeds to the Government.
All apparel companies receive payments through the formal banking system, which is visible at all times to the Central Bank. Once they receive these funds, they are permitted to use these dollars to fund raw material imports, which in previous years stood at approximately US$ 2.5 billion annually, adds Lawerence.
On a monthly basis, the balance industry’s export proceeds are converted into Sri Lanka Rupees to be provided to leading banks towards payments for essential imports such as fuel, gas, food and medicine, Lawrence explains.
These extraordinary measures have been commended by the Prime Minister’s office as having provided vital assistance in mitigating issues around energy, transport and healthcare in the country.
Anne Spangenberg to be new President-Fashion and Lifestyle, Deckers Brands
Anne Spangenberg has been appointed as the new President-Fashion and Lifestyle of Deckers Brands, a global leader in designing, marketing and distributing innovative footwear, apparel and accessories with effective from July 11, 2022. Spangenberg will serve on the Executive Leadership Team, reporting directly to Dave Powers, Chief Executive Officer and President of Deckers Brands.
Spangenberg has an extensive track record as a global leader and strategic brand builder, most recently as Chief Merchant for Nike, Inc. She will lead Deckers' Fashion Lifestyle brands, including UGG and Koolaburra, with a focus on product diversification, consumer adoption, and franchise evolution across a tightly-managed omnichannel marketplace.
Spangenberg has played a meaningful role in creating and transforming merchandising functions across categories, channels, and markets. She brings to Deckers an innate understanding of the consumer and the ability to efficiently implement strategy in alignment with the latest fashion and lifestyle trends, says Powers.
Spangenberg adds, the brand's unique combination of strong consumer demand, a loyal and expanding customer base, and the ability to innovate both new and existing franchises gives will help us further elevate UGG through disciplined and strategic global marketplace management while building on exciting levels of global brand heat.
Advance Denim aims tobe world’s most innovative denim mill
Advance Denim has committed to continuously improve its manufacturing business, and be the world’s most innovative and sustainable denim mill. This commitment will be the focus of Advance Denim’s newest mill, Advance Sico, in NhaTrang, Vietnam.
The Vietnam facility is already paying dividends. Advance Sico is responding to the huge demand in the country by increasing its production capacity 25 percent by the end of 2022.
As the company continues expanding, Advance Denim believes its five founding principles of innovation, service, quality, sustainability and people will drive success at both facilities.
In building Advance Sico almost three years ago, Advance Denim has benefited from the shared experience of Chinese technicians and Vietnamese experts. This has helped them create a team that is not just skilled and knowledgeable, but also focused on the teamwork needed to build a global denim mill. Advance Sico is adding to this skilled workforce by working closely with high-quality universities and colleges to offer internships to qualifying students.
Advance Sico in Vietnam has also set a goal to be the most sustainable mill in China.
The manufacturer is partnering with Archroma to produce all of its denim with 100 percent liquid indigo. In an effort to implement a cleaner, safer dye process, Advance Sico also uses its own proprietary BioBlue dye method to eliminate the toxic chemical, sodium hydrosulfite.
Next, Advance Denim is currently installing a state-of-the-art wastewater recycling system into the Vietnam mill. The company is targeting 100 percent wastewater recycling to establish a closed loop denim production.
Following the lead of many experts who agree that recycled cotton is one of the optimal fibers for sustainable production, Advance Denim is spearheading new recycling technologies and aims to raise the bar on not only sustainability but on quality and durability. The mill is using its expertise in sustainable innovation to create a 100 percent-recycled cotton denim.
Fashion industry’s obsession with size zero continues despite body inclusivity
The fashion industry’s obsession with size zero figures and ultra-thin models has always been a matter of debate. While, designers, model agents and fashion editors blame each other for the growth of this unhealthy trend, many countries have made lackluster attempts to ban it. Over the past few years, the fashion industry has woken up to the concept of body inclusivity. The industry has made great strides towards accepting not just all body types but also ages and races, says a Dazed Digital report.
End of body inclusivity with rise of skimpy dresses
However, a lot still remains to be done. Recent feature of models Ashley Graham, Paloma Elsesser, Jill Kortleve and Precious Lee on magazine covers and catwalks, has once again raised concerns amongst experts. They believe the return of figure-hugging dresses may rekindle the desire for such body types amongst consumers. Rachal Tashjan, Fashion News Director, Harpers’ Bazaar in a recent edition of her Opulent Tips newsletter, reflected on the growing concern amongst industry peers about a potential return to the ultra-thin body types. According to Tyler McCall, Editor in Chief, Fashionista.com, the fashion world is returning to its age-old hypocrisy. In order to make a real change, brands need to expand their size offerings for customers.
Blame game continues
Over the last few years, there have been concerns about the sustenance of body-inclusivity trend amongst brands. The trend of plus size models walking the ramp is yet to normalize, says Fran Burns, Stylist. In fact, even today, most clothes being produced for catwalk and editorial purposes remain designed for thin models only.
Burns, however, does not blame designers alone for this. It’s unfair to place so much responsibility on designers alone when big fashion houses do absolutely nothing about it, she adds.Designers, are meant to remedy the faults of earlier generation by being body inclusive and sustainable. Models should also be held responsible for their faulty representation, adds Burns. Currently, there seems to no real outrage against body shaming in the fashion industry as it no longer celebrates thinness. However, the core problems continue to persist as the worlds that emphasize on a celebrity’s status and power of visual overlap each other. Actresses, musicians, and influencers continue to be scrutinized for their body types. Despite the gibberish of embracing body positivity and widening the parameters of physical beauty, nothing has really changed in the industry.
Next edition of Texpro scheduled from Aug 18-20, 2022
The next edition of Texprois scheduled to be held from August 18-20, 2022 at Karachi, Pakistan. Over 250 Pakistani companies will exhibit their products which may include: home textiles, readymade garments, high-end fashion garments, fabrics and yarn, cloth woven and nonwoven, PPE, towels and madeups, accessories, denim, textile machinery, tents and canvas, carpets, sportswear, leather, footwear, etc,
Texpo will offer B2B meetings, sourcing and design studio. It will be a great opportunity for the visitors to see the textile potential of Pakistan under one umbrella.
The Trade Development Authority of Pakistan would offer local hospitality to Lebanese visitors, which includes pick and drop from airport to hotel to venue. Besides, discounted hotel bookings on self-payment basis will also be offered and Trade Development of Pakistan will also arrange factory visits for the foreign delegates.
New applications for Dallas trade event surge by 50%
New applications for the upcoming Dallas trade event Apparel & Accessories in August have surged by 50 per cent ahead of 2019,
The latest edition of the event was held from June 14–17, 2022 on an expanded space to accommodate new brands.
Cindy Morris, President and CEO, Dallas Market Center says, the center has created the biggest marketplace in the US with the support of thousands of apparel, footwear and accessories brands.
New buyers at the June event increased by 163 per cent against the pre-pandemic June shows. The show also registered an increase in national visitors. Attendance by stores from the Midwest increased by over 100 per cent, while those from the Southeast increased by 140 per cent, and the West increased by 170 per cent.
For the June show, Dallas Market Center had more than 500 temporary exhibitors. In 2022, the number of exhibiting brands grew by 10 per cent. They were accommodated in additional permanent showrooms and expanded temporary space.
The June edition also featured the permanent showroom D Element Style showcasing Celia B, Las Surenas, Vero Alfie, Kleid, and Neubyrne. Additional new showrooms included Golden, LeLaLo, My Girl in LA, Sal & Pimento, and Wolverine. Expanded showrooms included the 2Fourteen Showroom, Miss Me, and Rita Harris.
Coats acquires premium materials maker Texcon
A global leader in premium structural components and materials for the footwear, accessories and apparel industries, Texon has been acquired by world’s largest industrial thread manufacturer Coats.
Texon provides high quality structural components to the global footwear market and has a long heritage as a proven supplier to the world’s leading brands. The business is focused on sustainable innovation and supplies high-performance, sustainable, materials, including heel counters, toe puffs and insoles to the highly attractive premium athleisure footwear market.
Rajiv Sharma, Group Chief Executive, says,Texon’sacquisition will strengthen Coat’s existing presence in the highly attractive athleisure footwear market. The business is complementary to Coats and provides attractive future commercial opportunities as the two companies work together to leveragetheir combined expertise and knowledge to succeed with their customers.
India’s textile producers witness demand slowdown as prices of essentials rise
Indian textile producers are witnessing initial signs of a demand slowdown as high energy and food prices have weakened demand for products such as curtains and bedspreads in the top export markets of the US and Europe, says Upendra Prasad Singh, Textiles Secretary.
Due to high inflation in the US, demand has slowed, especially for home textile products as it is more price-sensitive than apparel and garments, Singh adds
The latest readings of manufacturing and services activity indicate that the economic outlook is darkening in the US and Europe. High energy costs because of the war in Ukraine, supply-chain disruptions because of pandemic-related lockdowns in China, surging commodities prices, and rising interest rates are increasing the risk of recession.
Japan’s Nomura said the US and EU could enter recession in the next 12 months as there are increasing signs of the world economy entering a synchronized growth slowdown", and that countries can no longer rely on a rebound in exports for growth.
India’s exports, too, have begun moderating on a sequential basis after touching a record high in FY22. Meanwhile, a sharp surge in oil and gold imports has pushed the nation’s trade deficit to a record in June. SachchidanandShukla, Chief Economist, Mahindra Group, adds, cotton prices are set to weaken amid slackening demand and global recessionary fears. A better crop outlook could also drive cotton prices lower, he opines.
The Indian government would soon launch the second round of production-linked incentives (PLI) in textiles to boost production of apparel and garments as they got limited benefits in the first round, Singh adds.
Italy’s Iluna Group to promote responsible fashion at Premiere Vision
Italian manufacturer of high-quality recycled laces, Iluna Group will participate in the upcoming Première Vision to promote a new fashion that mixes artistic research with environmental responsibility. The collection focuses on offering consumers new solutions in style, sustainability, fabric blends, natural dyes and smart prints.
For the first time, Iluna’s team will introduce GOTS-certified cotton inside its gallons and allovers. The smart ingredients chosen by Iluna Group will include Renycle® and Q-Nova, both GRS-certified pre-consumer recycled polyamide yarns, in addition to premium recycled stretch ROICA™ EF by Asahi Kasei.
The Iluna Group will also introduce a yarn blend of FSC-certified viscose and polyamide, resulting in striking new Textronic designs. The 3D effect embossed designs create a cloud effect that combined with Lurex, shows unexpected glows. Besides, the group will showcase new developments in GRS (Global Recycled Standard) certified recycled yarns; experiments with 16 different natural dyestuffs; and continued investment in technologies that can ensure significant savings in water and energy consumption, including Greendrop, the new GOTS-certified digital pigment printing system.
Devise solutions to finalize competitive gas and electricity tariffs, urges APTMA
During their meeting with Pakistan’s prime minister Shehbaz Sharif, All Pakistan Textile Mills Association (APTMA) leaders urged for a solution to finalize the competitive gas and electricity tariffs for export sector and restore gas to the captive power-run industry. The PM also urged concerned authorities to review the loadshedding policy of gas supply for dependent factories as the country’s economic stability depended on solutions to the problems faced by the industrial sector.
During the meeting, APTMA representatives briefed the PM about continued growth in textile exports and problems that are hampering the sector’s further growth. APTMA delegates informed, Pakistan’s textile exports grew to their highest levels of during FY22. This is 43 per cent, 26 per cent and 90 per cent higher than the FYs 2018, 2021, and 2010, respectively.
In June alone, Pakistan’s textile exports reached $1.7 billion. The zero-rated export industries, including textiles, used to earlier have a competitive gas and electricity tariff annually under a policy that ended on June 30, said APTMA delegates.
The delegates also requested the Sharif to introduce a five-year textile policy for a subsidized and regionally competitive gas and electricity tariff for the export sector.
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Indian government extends deadline to import cotton without taxes
Indian government has extended the deadline to import cotton without paying import tax till October 31. As per a Thrakika Ekkokkistiria report, the earlier deadline to import cotton without paying import taxes was September 30, 2022 as sowing of the fiber crop was delayed in some regions due to uneven railways. India, the world's biggest producer of cotton had allowed duty free imports in April as local prices surged to a record high due to a drop in the production and following rally in global prices.
Ceylon Petroleum Corporation failed to direct fuel distribution, alleges JAAF
The Sri Lankan, Joint Apparel Association Forum (JAAF) has alleged that Ceylon Petroleum Corporation has not directed the government to prioritize fuel distribution to it despite urging for an essential service status for industry. The Association added while the country was dealing with a fuel crisis, apparel exporters were managing daily operations to meet production deadlines to the best of their ability. Several factories claim to have sufficient fuel stocks to meet on-going production requirements. However, small and medium apparel factories were struggling to obtain fuel as the industry lacked the essential service status, said JAAF.
It is important for all manufacturers to remain fully operational as the country’s economy depends on it. They need to meet production deadlines as per order books. Only, this will ensure uninterrupted foreign exchange inflow in the country, the association added.
Pay 10% cash incentive for MMF garments shipments, urges BGMEA
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the Commerce Ministry to pay at least 10 per cent cash incentive for the shipment of non-cotton garment items made from man-made fibers (MMF). This will relieve exporters facing difficulties owing to the war, says Tapan Kanti Ghosh, Senior Secretary, Commerce Ministry.
The additional cash incentive will help accelerate garment shipment from Bangladesh and overcome the impact of the war, he added. The decision on new cash incentive will come into effect soon since orders are declining in some destinations due to higher inflation, Ghosh added. Despite the gloomy global outlook, exports from Bangladesh hit an all-time high of $52.08 billion in the just-concluded fiscal year. Garment exports from the country grew by 35.47 per cent Y-o-Y to $42.61 billion.
Currently, the government pays a 5 per cent cash incentive on the sales of garment items made from locally spun yarn, a 1 per cent additional incentive for exports in all markets and a 4 per cent cash incentive in non-traditional markets. Bangladesh considers all markets as non-traditional except the US, the EU, the UK and Canada.
Faruque Hassan, President, BGMEA, said, demand for non-cotton garment items are rising thanks to the change in fashion and styles. Of the total garment items exported from Bangladesh, 74 per cent is made from cotton fibre and the rest is manufactured from the non-cotton fibre.
The price gap between cotton and MMF-made items is also large. For instance, if a cotton-made garment item is sold at $5 apiece, the selling price of an MMF apparel item is $10, Hassan added.
Fluctuations in Indian rupee’s value eroding its purchasing power in global market
Analysts are concerned over the fall of the rupee that hit a record low of Rs 79.03 per US dollar a few days ago. Experts expect weak demand to lead to a further decline in the value of the local currency. Since January 2022, the rupee has fallen by around 6 per cent. However, it recently recovered by 13 paise to hit Rs 78.90 against the dollar. The common man is reeling under rising inflation and drastic increase in prices of daily essentials.
High crude prices, outflows causing depreciation
As per an Outlook India report, the value of Indian rupee against the US dollar is determined by demand and supply factors. Higher demand for the US dollar causes the value of the rupee to depreciate. An increase in demand for the US dollar is caused by a country’s rising imports. The current fall in rupee’s value can also be attributed to high crude oil prices, a strong dollar overseas and foreign capital outflows.
Heavy foreign fund outflows from the domestic markets are also contributing to the fall in rupee’s value. The rupee has depreciated 5.9 per cent against the dollar so far this calendar year. This depreciation is also impacting the rupee-dollar exchange rates. Further, it’s causing import prices of crude and raw materials to rise, increasing production and retail prices.
The US Federal Reserve plans to hike interest rates, causing the Indian rupee to plunge further. India mostly pays for imports in US dollars. A weak rupee could compel it pay more for the same quantity of items. This threatens to increase the costs of raw materials and production for consumers.
Rising crude oil prices to make imports expensive
Meanwhile, a decline in the rupee’s value causes exports to surge as they become more competitive, giving buyers a wider choice. However, the current fall in rupee is not being supported by exporters.
India imports crude oil to meet over 80 per cent of its energy requirements. Rising crude oil prices are likely to make imports more expensive. It also indicates a rise in India’s imports, further signaling a weakening of the rupee. Since January, the Indian rupee has been on the decline, eroding its purchasing power in the international market.
Analysts expect a further decline in the rupee against the dollar in the next few years. To restrict this fall, the Reserve Bank of India is using the country’s huge stockpile of forex reserves. The RBI has so far sold Indian rupees at an exchange 78.97-78.98 per US dollar to boost its forex reserves and restrict the rupee’s fall. The bank may intervene further to contain the rupee’s depreciation. It will not allow such fluctuations in the value of the rupee, says Michael D Partra, Deputy Governor, RBI. The bank aims to work towards the stabilization of the Indian rupee, he adds.
