Trade show organizers in UK cancel overseas shows as COVID-19 cases surge
Several trade show organizers in the UK have either cancelled or postponed their winter shows overseas over the last month, due the rising coronavirus and travel restrictions. Drapers Online reveals, women’s and menswear trade shows Premium and Seek and trade show Neonyt, to be held from January 18-20, 2022, as a part of Frankfurt Fashion Week, have been postponed to July 2022.
Similarly, in France, menswear trade show Man/Show, to be held from January 21-23, 2022 at the Vendôme Pavilion in Paris, has been cancelled, while lingerie and swimwear trade show Salon de la Lingerie and Interfiliere Paris have postponed their January editions to June 18-22, 2022 at Porte de Versailles in Paris
UK fashion brands, buyers and agents say, they are skeptical whether remaining international shows will take place, or if they will attend, many have paused international travel until the situation improves. Many businesses say they are eager to attend UK trade shows instead.
As numerous trade shows across Europe have been cancelled or postponed it is clear trade show uncertainty remains. However, as the two-year anniversary of restrictions approaches, many are eager to return to in-person trade shows in the UK.
Reducing cotton import duty will harm Indian farmers, says VNSSM
Kishore Tiwari, President, The Vasantrao Naik Sheti Swavalamban Mission (VNSSM) has urged Prime Minister Narender Modi to consider the plight of Indian farmers before taking any decision on revoking the import duty on cotton. He says, current market rate of Rs 8,000-11,000/quintal has brought some relief to the peasantry reeling under the pandemic since the past two years.
However, the cotton and textile-garment industries keen to import cheaper cotton from Pakistan-China and dump it in India, which will again plummet prices below Rs 4000/quintal, not only spelling doom for local farmers but also fueling a fresh crisis in farmlands, he adds.
In order to ensure justice to Indian farmers, he demanded the import duty be further hiked to 18 per cent to make it on par with the global markets, any move to remove or slash import duties will not only directly benefit the economies of both Pakistan and China, but prove extremely disastrous to Indian farmers who could be left with no other options but to kill themselves.
Troika of headwinds for Indian spinners, moderate outlook ahead: Crisil
A troika of headwinds — elevated domestic cotton prices, lower exports and capacity utilisation — can unravel the operating margin of India’s cotton yarn spinners, so says Crisil.
Yet their credit profiles will be only slightly impacted because capital expenditure (capex) will be lower on-year, while working capital requirement remains stable. That will keep debt levels in check this fiscal. Last fiscal, robust cash accrual stemming from superior profitability had helped spinners deleverage. That, and lower capex will keep credit profiles healthy despite the moderation in operating margin.
The spread between international and domestic prices of cotton determines the competitiveness of Indian yarn spinners. While global cotton prices fell 17 per cent between April 2022 and August 2022 in anticipation of higher production, domestic prices rose two per cent because of limited supply. Pricier domestic cotton thus eroded India’s competitiveness, leading to a loss of export market share to China and Bangladesh.
Between April and August India’s cotton yarn export volume plunged 58 per cent, leading to moderation in capacity utilisation of spinners below 75 per cent in the first half from near-full utilisation last fiscal. Spinners had to even shut operations on some days in the first half of this fiscal. The second half is expected to see higher exports with the arrival of new cotton crop. Consequently, the decline in export volume would be restricted to 25 per cent.
Financial Prospects
A normal monsoon and an eight per cent higher sowing area will increase cotton production in India. That should cool domestic prices and allow spinners to regain some export competitiveness. But international cotton prices could fall on slowing yarn demand from Pakistan and Vietnam amid stable global production. Net-net, Indian yarn exporters won’t earn supernormal premiums like last fiscal.Over the medium term, Indian cotton yarn is expected to continue to benefit from the US ban on exports from the Xinjiang region in China, and supply-chain derisking by global customers. However, export volume can fall up to 25 per cent this fiscal because of the high-base effect of last fiscal. Domestic demand for cotton yarn is expected to pick up by seven per cent or nine per cent in the second half of this fiscal on more orders from end-user segments.
Moderation in the profitability of spinners expected
There are three reasons for moderation in the profitability of spinners this fiscal. First is the fall in cotton yarn spreads. Second is low capacity utilisation in the first half that can’t be compensated fully in the second half, and third expected inventory losses due to correction in cotton prices.
Consequently, the average debt to ebitda (earnings before interest, tax, depreciation and amortisation) ratio of spinners could rise to two times this fiscal from an exceptionally low last fiscal. Capex is seen curtailed this fiscal compared with last fiscal. In the road ahead, the removal of the ban on Xinjiang cotton and adverse movement in domestic cotton prices are crucial.
Bestseller makes sustainability investment in Ambercycle
Danish fashion house Bestseller has made a sustainability investment in US-based Ambercycle. Bestseller made an investment of $21.6 million during Ambercycle’s recent funding round. Camilla Skjønning Jørgensen, Sustainable Materials & Innovation Manage, Bestseller says, Ambercycle aims to transform worn-out clothing into a resource with the greatest possible value. Additionally, it specializes in recycling polyester, which is usually dependent on crude oil. By focusing on this integral systemic shift, Ambercycle has proven to be an interesting investment case and business partner for Bestseller
During 2021, Bestseller’s investment arm for sustainable fashion, Invest FWD, made investments in four innovative companies. Firstly an announcement of the Finnish innovator Infinited Fiber Company followed by further investments in Circular Systems, Nature Coatings and Evrnu - all three based in the USA. The latest addition, Ambercycle has developed a pioneering process for used polyester textiles that separates and purifies post-consumer textile waste at the molecular level to produce regenerated materials that can be crafted into new garments.
India: Itema participates in SITEX exhibition held in Surat
Global provider of advanced weaving solutions, including weaving machines, OEM spare parts, and integrated services, Itema participated in SITEX exhibition held from January 8 to 10 at the Surat International Exhibition and Convention Centre.
Itema showcased a rapier R9500-2 weaving machine, in weaving width 3800mm and equipped with a Stäubli LXM 5376 hooks Jacquard shedding machine. The machine on display in Stäubli booth weaved a fabric traditionally produced in the mills of the region and is configured to meet the local weaver’s production needs.
Itema (and previous brands – Somet, Vamatex, and Sulzer) spare parts and after-sales advanced solutions are a dedicated focus with the possibility to discover all opportunities to give new life to looms, such as customized upgraded kits to optimize machine performance and retrofit latest Itema innovations on existing looms and electric, electronic and mechanic repairs.
Itema is a trusted partner of many Indian weaving mills, from large textile conglomerates to small manufacturers, providing most advanced and user-friendly weaving technology and real-time assistance, from initial negotiation stage and throughout the whole machine life cycle.
CHIC Spring Shanghai postponed to April
The surge in new Omicron variant has compelled the organizers of Asia's largest fashion fair CHIC Spring Shanghai to postpone their show from March to April this year. The show will now be held on April 14, 2022.in Shanghai. It will focus on innovations with the highest priorities. Date change allows organizers to take into account the interests of international exhibitors and visitors. Germany will participate in the show with a German pavilion.
The trade show will showcase latest trend developments in fashion and offer trade visitors a concentrated overview of the industry. The main areas of focus at the show will be women’s wear, menswear, kids wear, denim, shoes and bags, accessories, designers and streetwear at the National Convention & Exhibition Center.
CHIC will be organized by Beijing Fashion Expo Co. and China World Exhibitions. It will supported by the China National Garment Association, the China World Trade Center and the Sub-Council of the Textile Industry (CCPIT).
Bangladesh: BGMEA, BKMEA form joint committee to benchmark apparel prices
A joint association for benchmarking the minimum price and manufacturing costs of apparel products was formed by two leading garment makers’ bodies in Bangladesh, namely the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the BGMEA or the Bangladesh Garment Manufacturers and Exporters Association.
As per an Apparel Resources report, the 15-member committee headed by Fazlee Shamim Ehsan, Vice President, BKMEA will conduct a thorough analysis of the cost of inputs, manufacturing cost and the export price of the finished goods. It will endeavor to find empirical facts by consulting with wider stakeholders to understand associated costs and their dynamics including the lead time and its impact on the overall cost of making a garment.
The overall objective of the committee is to draw a comprehensive and complex picture of the aggregate manufacturing cost of major garment items and their minimum price justification even if the committee is expected to submit a detailed report to the boards of the respective associations within the next three months.
US apparel imports rise by 25.2%: OTEXA
US apparel imports surged by 25.2 percent to 2.51 billion square meter equivalents (SME) in November compared to the same month in 2020, according to data released by the Commerce Department’s Office of Textiles & Apparel (OTEXA).
This followed a more modest 13.6 percent rise in year-over-year apparel imports in October. For the year-to-date through November, apparel imports rose 26.9 percent to 26.96 billion SME from the year-earlier period, just below the 27.5 percent gain to 24.45 billion SME reported in October, according to OTEXA.
Top supplier China emerged as the largest exporter despite ongoing tariffs and political strife with the US, with year-over year exports rising by 33.7 percent to 1.04 billion SME after a 14.1 percent rise in October. For the year to date, shipments from China stayed on pace for the year with a 30.75 percent rise to 10.2 billion SME.
On the other hand, apparel imports from Vietnam declined by 10 percent in the month to 282.05 million SME, continuing a wobbly pattern in the last few months following COVID-related factory closures. For the 11 months, shipments from Vietnam increased by 15.34 percent to 4.03 billion SME.
Imports from Bangladesh rose by 59 percent year over year in November to 227.91 million SME. Bangladesh shipments increased by 34.37 percent to 2.33 billion SME.
Imports rose by 7.4 percent to 97.7 million SME for the month following a 22.6 percent gain in October. For the year to date, Cambodian imports increased 11.79 percent to 1.16 billion SME.
The rest of the Top 10 Asian pack saw substantial increases in November. Imports from India were up 35.1 percent to 108.72 million SME, shipments from Indonesia rose 38.1 percent to 99.74 million SME and imports from Pakistan gained 32.8 percent to 86.71 million SME. For the year to date, India’s imports were up 39.91 percent to 1.17 billion SME, Indonesia’s climbed 17.89 percent to 1.02 billion SME and Pakistan’s surged 43.15 percent to 809 million SME.
Rounding out the Top 10 supplier nations were Western Hemisphere countries Honduras, Mexico and El Salvador.
Spring Fair and Moda to be held in February at Birmingham
UK’s most diverse, vibrant, and exciting wholesale marketplace for home, gift and sourcing, Spring Fair and Moda, the fourth fashion destination incorporating footwear and the Jewellery and Watch Edit, will be held form February 06-09, 2022 in Halls 1-8 at NEC Birmingham.
Julie Driscoll, Divisional Managing Director-Retail, Engineering and Manufacturing, Hyve Group plc says; they have made it mandatory for all visitors the NEC venue at Spring Fair to show their valid COVID-19 Pass, or a negative result to a Lateral Flow Test taken within 48hours. In addition, aligned to Government guidelines, all attendees will have to wear a face covering during the show.
The organizers have increased curated meetings exponentially for Spring Fair, incorporating all sectors of the show. Averaging £330k in buying power, leading retailers signed up include Denby Retail, John Lewis & Partners, Midcounties Coop Food, Paper Tiger, Yorkshire Willow, Whirligig Toys, Riley's Garden Centre, Evie&me Interiors, Staines &Brights, D Cutler International, and Four Sisters.
Sarah Ward, CEO, Giftware Association, adds,pring Fair is crucial for the future of the giftware industry, not just to source products but also to facilitate and build relationships, to forge new partnerships, and to discover and drive innovation and inspiration.
Two Texbrasil companies attend 3rd Surf Expo 2022
Held from January 05-07, the first edition of the Surf Expo 2022 was attended by two companies from Texbrasil(Brazilian Textile and Fashion Industry Internationalization Program) — the result of a partnership between Abit (Brazilian Textile and Apparel Industry Association) and ApexBrasil (Brazilian Trade and Investment Promotion Agency).
Beachwear brands Guria Beachwear and Rio de Sol also returned to the event with new pieces for Summer 2022. The tradeshow, which takes place twice a year in Orlando, Florida, brings together major players in the sports, beach, and fitness fashion market.
In addition to North American buyers, the tradeshow stands out for also concentrating retailers from the Caribbean, Central and South America. In 2021, Texbrasil companies made $230, 000 during the event, winning important new customers.
Events like this allow Brazilian brands to disseminate and expand to important target markets. Surf Expo has qualified buyers who certainly will be impressed by the quality of the Brazilian product”, says LilianKaddisi, Executive Manager, Texbrasil
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Nitin Spinners approves Rs 950 crore capacity expansion project
On December 30, 2021, Nitin Spinners approved capacity expansion at a total project cost of Rs 950 crore. The expansion is targeted to be completed over next 20 months with an aim to strengthen the company's market position and capture the benefits of a growing market opportunity in international as well as domestic markets, Nitin Spinners said.
According to the company, the Indian cotton industry is well poised to take advantage of improving demand across the globe and the china + supply chain strategy adopted by global majors.The government thrust on Atmanirbhar Bharat is expected to surge internal demand for raw materials thereby uplifting industry ecosystem. The company hopes to capitalize on growth opportunities arising from investment promotion scheme of the state government and other schemes of central government.
For the first half (April-September) of financial year 2021-22 (H1FY22), Nitin Spinners had reported profit after tax (PAT) of Rs 147 crore as against Rs 3 crore in H1FY21. Revenue from operations grew 88.6 per cent year on year (YoY) to Rs 1,218 crore from Rs 646 crore in the same period last fiscal. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin improved to 25.1 per cent from 12.2 per cent.
The company achieved sales of 11.34 million meters of woven fabric in H1FY22 contributing to 14 per cent of revenue in H1FY22. The company exported more than 70 per cent of its production to over 50 countries across the globe during H1FY22.
Copenhagen Fashion Week unveils schedule for AW22 show
Copenhagen Fashion Week has unveiled the schedule for its AW22 show that will take place in Copenhagen from February 01-04, 2022. The show will presents 20 physical activations that will be digitally broadcast alongside 9 fully digital showcases and 2 digital showcases with physical screenings, alongside a curated list of events, talks and activations. The full series will be available to watch live from YouTube/fashion - streamed directly on the home page for our global community.
The AW22 season of Copenhagen Fashion Week will hosts around 31 brands include A Roege Hove and (di) vision who will showcase alongside internationally renowned Nordic brands including Ganni, Stine Goya, Holzweiler, Saks QPotts and Marienokko..The AW22 edition will also mark a return of brands like Martin Asbjorn and Wood Wood. Furthermore, Jade Cropper, winner of this season's Talent Slot will present for the first time as part of Copenhagen Fashion Week. For the third season of the Zalando Sustainability Award, Iso.Poetism by Tobias BirkNeilsen, Fassbender and Tommorrow Denim, Fassbender and Tomorrow Denim will present their collections as finalists, with the winner announced during the AW22 edition.
Eyewear brand John Jacobs to expand in India
John Jacobs plans to expand its retail presence in India. The eyewear brand opened a 1,200 square feet store in Andheri, Mumbai. It is targeting landmark locations that provide the best opportunities for brand awareness and recall.
Stocked with the coolest eyeglasses and sunglasses in fine quality and at affordable prices, John Jacobs fits the bill perfectly for Mumbai shoppers. Its new store is outfitted with a chic ambience, vintage decor, stunning interiors swathed in warm lighting and a hip vibe.
In line with pandemic regulations, masks are mandatory for all staff and customers at every JJ store, with regular temperature checks and hand sanitisers at entrances; along with a vigilant eye on social distancing guidelines. Staff and customer capacity for each store is being monitored as per instructions by authorities.
Levi’s tops Remake’s second annual accountability report
Nonprofit organization Remake’s second annual accountability report naming the worst performance in sustainability has been published. The report lists some of the least accountable brands in 2021 which includes Foreever 21, Ross, Global Brands TJX, Cros, Inc, Edingburg Woolen Mill, the Children’s Place, etc. Most of these brands scored negative points on a possible 150-point scale, as per a report by Women’s Wear Daily.
Remake consulted over a dozen industry experts across human rights, employment, fashion and law for this report. It also relied on publicly available disclosures. Rating 60 fashion companies across fast fashion, luxury, children’s wear, the nonprofit also evaluated the performance of smaller brands like Christy Dawn, Nudie Jeans and Nisolo. The brands were evaluated for their transparency, wages and well-being, commercial practices, raw materials, environmental justice and climate change, governance, diversity and inclusion. Remake also ranked the companies for their total product output and the impact they had on the environment.
Worst offenders
In the results that followed, Supreme, Allbirds and Everlane emerged as the worst offenders in sustainability in November 2020. Forever 21 and Ross
scored lowest with 13 points while the highest score of 83 points was awarded to Nisolo. Despite being one of the most profitable companies in the world, Ross scores low on human rights. The company’s initiative, Ross Dress for Less, is known for wage theft in California apparel factories. It has benefited from the state’s sweatshop conditions for years, shows the report.
Not only this, Ross Stores allow trade associations to lobby against the wage theft legislation titled, ‘Garment Worker Protection Act,” passed in California in September. The report also reprimands Forever 21 for its low-price, fast-fashion business model. The brand is notorious for stealing designs from young designers, paying sweatshop wages in Los Angeles and being opaque about its supply chain.
The California Company is known to have violated the Garment Worker Protection Act time and again. . The company only scores in the area of animal welfare, which is however designed to distract from its use of oil-derived fabrics like polyester. Another offender is the Global Brands Group, which has been shamed for its stake in the American Apparel and Footwear Association, which lobbied against the legislation.
Nisolo emerges most transparent brand
Nisolo emerged as the highest scoring brand in the list for being transparent about its social sustainability efforts. The Nashville-based leather goods brand was honored for paying living wages to not only garment makers and direct employees but also models, photographers, photo assistants and logistics workers. The company is also transparent about its production processes and carbon footprint. The report, however, urges the company to be more transparent about its raw material suppliers, especially around leather sourcing.
The report also ranks companies for launching campaigns for communities of color. Only 12 per cent companies invested in communities where they operate, and mere 8 per cent companies were able to prove living wages.
Levi’s, only brand to achieve targets
Finally, the report names Levi’s as the only brand being on track to achieve its science-based climate target. Levi’s was early to adopt sustainable practices like water-saving and less toxic denim manufacturing. It reduced carbon emissions in 2020 in line with its science-based target, adds the report.
