Brands lag in emission disclosure
Nearly 62 per cent of the 250 biggest brands publish their carbon footprint in their own facilities, says responsible fashion advocacy group Fashion Revolution. However, most carbon emissions occur at processing and raw material levels. Only 26 per cent of brands disclose emissions information at the processing and manufacturing level, and only 17 per cent do so at the raw material level. More than one third big brands have published their progress towards reducing the use of virgin plastics for packaging, but only 18 per cent did so for textiles deriving from virgin fossil fuels.
There has been slight progress with regard to supply-chain transparency. Almost 27 per cent major brands now disclose some of their processing facilities, compared to 24 per cent last year. Additionally, 11 per cent brands publish some of their raw material suppliers, up from seven per cent last year. According to the report, shoppers would like more transparency among fashion brands: They also believe ethical labor policies are important. Shoppers are interested in purchasing sustainable clothing but don’t know how or where to find sustainable clothes. More than a third say, if there were a store for sustainable clothes, they would do all their shopping there.
Fashion retail in crisis as costs and delivery issues continue to persist in 2021
With profits hitting record-low levels in 2020, the fashion industry’s form was hit hard by the COVID-19 crisis in 2020. The pandemic continues to spell doom in 2021, with fashion retailers still experiencing delayed deliveries amid more online shopping. A recent report by equity analysts Michael Field and David Whiston studies the impact of these industry disruptions on fashion manufacturers and retailers across the world.
Published in the Morning Star, the reports cites China as being worst-hit by COVID-19 hit. China accounts for around 36.5 per cent of all fashion exports by a wide margin. The pandemic compelled manufacturers to shutdown factories and disrupting operations of retailer’s who relied on exports. The disruptions intensified as China reopened its economy around April 2020, when other countries announced fresh lockdowns. This destabilized China’s production and made its shipping schedules unreliable.
However, the disruption benefitted manufacturers located closer to home for companies like Inditex . The
vulnerability of supply chains will compel retailers to diversify sourcing in future.
Demand collapse leads to 90% drop in sales
Demand for fashion collapsed in the initial months of 2020 as stores remained shut. This caused fashion sales to fall by almost 90 per cent in some regions. Many retailers had to cancel their orders, halting production of new clothes and accessories. This led to a rise in inventory levels for manufacturers who also had to pay for the costs of existing orders
As per a Centre for Global Workers Rights report, around 72 per cent retailers refused to pay for their raw material costs while 91 per cent didn’t pay for production costs.
Online retail surges as stores remained closed
Online shopping surged during the lockdown period. The percentage of online sales of UK clothing giant Next in its overall sales jumped from 45 per cent in 2019 to more than 70 per cent in 2020. However, the rate of returns for goods purchased online also increased to 35 per cent during the year, shows a survey from GXO.
A few players managed to beat this trend and grow their online sales significantly. These companies closed their brick-and-mortar stores and focused on the new cutting-edge e-commerce technology. An example is Nike, which closed a few of its stores in Vietnam to focus on online operations.
Few retailers beat forecasts
The pandemic has raised costs and other consumer related concerns for fashion retailers. However, a few retailers have been able to beat analysts’ forecasts. For instance, activewear and basic apparel wear company Hanesbrands 5.8 per cent sales growth to $1.79 billion in the third quarter (Q3) of FY21 ended on October 2, 2021, over the same period of previous fiscal. The company’s net income for the three-month period expanded to $151.7 million (Q3 FY20: $103.3 million). All this despite the lockdown and disruptions
Increase in Chinese dye prices affects Tirupur garment units
Garment makers in Tirupur are reeling under severe losses because of increase in the prices of dye and chemicals. Prices of dyes, chemicals and wetting agents used for coloring fabrics have increased over 30 per cent in the last few months.
Tirupur is the knitwear capital of India. Almost all dyes and chemicals are imported from China by traders based in Gujarat and Maharashtra and distributed throughout the country. However, due to extreme power shortage in China, chemical production has reduced by over 25 per cent. Besides, the economic crisis triggered by the Covid-19 induced lockdown and China's climate change policy disrupted the supply chain and has spiraled on importers from India.
Dyeing is an important process in the garment and textile manufacturing process. The cost of dyeing and other chemicals increased over the last five months leaving exporters’ resources stretched. Since the contract between garment units and exporters is pre -determined, exporters cannot revise the price when input cost increases. Whenever exporters send a quotation to the buyer or importer, they mention the current price and cost. It takes around two weeks for a deal to be finalized. If there is a rise in pricing in the meantime, they cannot renegotiate or bargain with the customers and must bear the loss. Small units are affected the most by the fluctuating prices.’’
Crocs Q3 revenue up 73 per cent
US-based footwear maker Crocs’ revenue for the third quarter rose 73 per cent compared to the same period in previous year. Crocs experienced strong revenue growth in all geographies during the quarter but saw particularly impressive progress in the Americas, where revenues were up 94.5 per cent on a constant currency basis year over year.
In Europe, the Middle East and Africa sales rose 43.8 per cent in constant currencies while in the Asia-Pacific region they increased 21.2 per cent. Direct-to-consumer sales at the company rose 60.4 per cent while wholesale revenues increased 88.2 per cent. Digital sales increased 68.9 per cent and represented 36.8 per cent of Crocs’ total revenues during the quarter, compared to 37.7 per cent in the third quarter of 2020 and 32.2 per cent in the third quarter of 2019.
For Crocs the third quarter was exceptional, underscored by an industry-leading operating margin of 32 per cent. Despite the temporary disruptions, it expects 2022 revenues to grow over 20 per cent from 2021 fueled by the strength of its brand and consumer demand globally. Crocs also increased its full-year financial outlook. It now expects to report revenue growth of between 62 per cent and 65 per cent in fiscal 2021.
Bangladesh RMG makers want cash incentives for imported raw materials
Garment makers in Bangladesh have demanded cash incentives for exporting garments made with imported yarn. At present, only garment exporters who purchase raw materials from local textile mills get incentives. They also want incentives to be calculated directly on export price, rationalization of depreciation or wastage rate of raw materials in garment manufacturing, and elimination of harassment in the process of paying VAT and customs duty. Calculating incentives directly on export prices is expected to reduce the chances of all irregularities committed by the exporters.
Garment manufacturers came up with these demands as discussions are going on to increase the price of yarn in local market in view of the increase in the price of cotton, raw material for yarn, in the international market. Garment manufacturers have also sought permission to import yarn through land ports outside Benapole as part of removing the existing barriers in importing yarn from the neighboring countries. They want capacity building at the land ports and proper facilities for testing the imported goods be ensured before allowing import of yarn through land ports outside Benapole. Besides, readymade garments makers have demanded that the government allow partial shipment of goods against a letter of credit.
Lenzing Group launches Tencel branded lyocell fibers
Austria’s largest viscose producer, Lenzing Group has launched matte TencelTM branded lyocell fibers to increase its sustainable offerings. The new fiber type was created especially to scatter light and completely eliminate shine in denim applications, making indigo-dyed denim fabrics more flexible.
Tricia Carey, Director-Global Business Development Denim and Americas, Lenzing AG’ states, as a fiber manufacturing leader, they work closely with clients and mill partners to achieve their product specifications. They heeded their partners’ demands for less gleaming denim fabrics. Lenzing is at the forefront of the battle for comprehensive sustainability by employing botanic raw materials and biodegradable cellulosic fibers.
The use of matte Tencel Lyocell fibers increases denim design possibilities while reducing the environmental impact of the resultant fabric and garment, integrating function and beauty. Lenzing is fully responsible for its production processes, which include the use of fibre biometric identification to provide physical identity for every TENCEL branded fibre. The new matte TENCEL Lyocell fibers are entirely traceable thanks to this innovation, ensuring both consumers and brands that the raw materials used are supplied sustainably. In the long run, informed decision-making by all parties will contribute to the denim industry’s overall sustainability.
Hermes International’s Q3 revenues rise by 31.5%
A remarkable performance in the Greater China market, helped Hermes International increase its third quarter revenues by 31.5 percent year-on-year.
As per a Women’s Wear Daily report, the French luxury firm’s revenues in the three months to September 30 increased by 40.3 per cent to €2.37 billion compared with 2019, considered a more reliable benchmark due to the disruption caused by the coronavirus pandemic last year.
This represented an increase of 31.2 percent versus 2020, beating a consensus of analyst estimates, which had called for a 23.8 percent rise in like-for-like sales. The better-than-expected growth rates confirmed Hermès as one of the top-performing luxury brands this year.
The group said that despite a high comparison base in the fourth quarter, it is approaching the end of the year with confidence.
However, it cautioned that that its second-half operating profit margin could be much lower than the 40.7 percent recorded in the first six months of the year, due to foreign exchange headwinds, higher employee costs and a lower contribution from leather goods, as per a Barclays report.
The group’s activity in the third quarter increased by 23.4 percent at constant exchange rates in Asia thanks to the strong performance in Greater China and other countries in the region, despite new restrictions in Australia, Thailand and Malaysia.
Its sales in the Americas jumped by 48.4 percent , while France recorded a 46.7 percent increase. Sales in the rest of Europe increased by 36.4 percent.
Canali teams up with Li Gong for a capsule collection
Luxury men’s wear brand Canali has decided to team with one of the country’s most interesting emerging brands Li Gong to develop a capsule collection: 8ON8. To be called Canali Travel With 8ON8, the capsule will be sold at the brand’s store in China and in some of its boutiques across the globe, as well as at a selection of international multibrand shops. With prices in line with Canali’s collections, the capsule will retail from $300 for basketball hats to $3,300 for coats.
As per a Women’s Wear Daily report, the capsule includes 11 styles combining Canali’s sartorial expertise with Gong’s colorful, retro futuristic aesthetic, ranging from T-shirts, puffers and hoodies to relaxed suits, silk pajamas and impeccable coats with a young, edgy vibe. The offering is completed by loafers with transparent soles, colorful sneakers, as well as baseball caps, small fabric pouches with drawstrings and printed leather luggage pieces.
Canali believes, delivering capsules with external designers enables the brand to experiment with its aesthetic and heritage with a point of view that is meaningful for specific markets. This capsule created a lot of interest in international retailers because it offers a fresh stylistic image, but at the same time is backed by the credibility of a trusted historic company, he adds. id.
The Italian men’s brand debuted in China two decades ago and operates a retail network of 21 stores in the country.
Calvin Klein rated as the most trustworthy brand
An iconic American brand, Calvin Klein has been rated as the most trustworthy fashion brand in the new Data Trust Index by Luxury Institute and DataLucent. The index measures the level of trust th
at digital consumers have in licensing their digital platform data and other personal data, to mass, premium and luxury brands in exchange for rewards and benefits.
French luxury market leader Louis Vuitton was ranked a very strong second. Banana Republic, a division of Gap Inc., was ranked third in a field of 24 well-known fashion brands (list at end of article). Six out of the top ten brands rated as being the most trustworthy with data were luxury brands. (In a similar study by the Luxury Institute and DataLucent, Macy’s topped a list of 12 large, multi-brand retailers in data trustworthiness.)
The survey was based on a nationally representative sample of 1,008 consumers ages 18-49, with a minimum income of $75,000 (total sample average income of $200,000), with 54 per cent male and 48 per cent female participation.
Around 83 per cent of all responders, including 89 per cent male and 78 per cent female said, they are willing to license their digital platform data, under their control, to brands they trust to use to serve their needs, and the needs of other consumers, in a personalized way.
India targets $100 billion textile and garment exports in 5 years
The government aims to achieve $100 billion worth of textiles and garment exports over the next five years. It has urged the industry to take advantage of a global market shift where China is pruning its market share in the labor-intensive segment.
In FY21, India’s textiles and allied product exports declined by 10 per cent to $30.4 billion due to the Covid crisis. In the first five months of this fiscal, exports jumped by 87 per cent on year to $16.6 billion, aided by strong economic recovery in key markets such as the US and the EU. Still, the target remains much too ambitious.
Earlier this month, the Cabinet approved a scheme to incentivize investments in setting up mega textile parks to build scale in the fragmented sector. It followed a Rs 10,683-crore production-linked incentive scheme for man-made fiber products and technical textiles. Export tax refund schemes like the RoDTEP and RoSCTL have also been launched in recent years to improve the country’s export competitiveness.
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4th Supima Design Lab showcases cotton innovation
Held in Paris, the fourth edition of Supima Design Lab showcased innovations in cotton besides spotlighting emerging talent from its design competition.
As per a Women’s Wear Daily report, created using Supima Cotton, the designs were neatly arrayed in the gilded salons of the Hôtel de La Salle in the tony 7th arrondissement
In the adjoining room, Charles de Vilmorin took his position as one of this year’s leading designers — alongside Nix Lecourt Mansion, Mira Mikati, Tom Van Der Borght, Pierre Kaczmarek for his Georges Wendell label and Jordanluca’s Jordan Bowen and Luca Marchetto .
Marc Lewkowitz, President and CEO, Supima Cotton, describes the exhibition as an opportunity to visualize the potential of a material that can be traced down to the farm level — a sophisticated but costly process used by Kering — and put the finger on deeper issues like value reconsideration.
Changing body sizes drive Chinese lingerie market dynamics
Chinese lingerie brands like Ubras, Candy La Vie and Sujiin are building their businesses in the domestic market by offering an inclusive size range.
Surpassing traditional Chinese lingerie-makers like Embry, Aimer or Cosmo Lady, these next-gen brands are ruling the estimated $64.49 billion market with their extended size offerings, product innovation and dynamic advertising.
China has always had people of diverse body sizes. As per a Women’s Wear Daily report, the country has 56 officially recognized ethnicities. There are also significant differences between northern Han and southern Han, the dominant ethnic group — which comprises women with larger busts.
Increasing obesity boosting market growth
According to research released from the medical journal The Lancet last November, China’s population is becoming increasingly overweight or obese. In
1985, an average 19-year-old female in China was 5 foot 2 inches tall, while males were 5 foot 5 inches. In 2019, those numbers grew to 5 foot 4 inches for women and 5 foot 8 inches for men, with the increase in men’s height clocking the largest gains in the world.
One of China’s top selling lingerie brands, Beijing-headquartered Ubras is an advocate for the one-size-fits-all bra idea in China. The brand offers a seamless collection of bras that are made from lightweight fabrics and do not have an underwire. These bras are suitable for all types of activities like sleeping, lounging, working out, traveling, being at the office, and pregnancy. The product also allies with the company’s digital-first model.
For all sizes and preferences
Similarly, Neiwai launched its Barely Zero collection featuring soft and highly stretchable bras that fit women up to D-plus cup. Another digital start-up Sujin offers bras that fit a DD cup and are available in all skin colors.
A startup dedicated to plus-size women, Candy La Vie is engaged in educating customers on the difference between large cup sizes and large band-size. Zhang Chengpu, Co-Founder and Creative Director, says, though the band sizes of Chinese women may be smaller, but many of them still require large cups as they have a large chest.
An influencer known for her curvy figure, Yang Tianzhen collaborated with Victoria’s Secret in May for campaign on body positivity. She also has her own plus-size clothing line, PlusMall that offers plus-size lingerie in bright colors.
Pakistan Textile: Competitive inputs, value addition can boost economic growth
Recovering from the pandemic shocks, Pakistan’s textile exports are set to grow to $22 billion in FY22. Most of this growth will be driven by the introduction of supportive policies by the government and stabilization of the industry.
As per a Global Village Space report, Pakistan’s textile industry has yielded spectacular results in recent times. Boosted by increasing investments from industrialists, the industry is set to rise by 25 per cent annually from FY2022.
Market uncertainties, miniscule share to stall growth
However, the industry also faces certain challenges in the coming year. It is likely to be particularly troubled by the uncertainties in the cotton as well as currency markets. Also, the industry’s miniscule share of 1.7 percent in the global textile market may prove to be a cause of concern.
Another challenge the industry faces is the rise in cotton yarn prices. Globally, cotton prices have reached $1 per pound, sparking a debate over the need
for a regulatory duty to be imposed on yarn exports. However, such regulatory duties can have adverse effects on the domestic market and hence, the government needs to abstain from such quotas.
The government needs to refrain from buying cotton at import substation from the local market and selling it at 10 percent below export parity price. It should also not subsidize the downstream industry as this puts farmers at a great disadvantage. A conducive environment has led to a 50 percent rise in cotton production in Pakistan this year. This is expected to surge the crop’s value to Rs 600 billion, thus giving farmers an additional benefit of Rs. 400 billion.
APTMA to set up new 100 textile units
APTMA and all textile industries have decided to pay international parity prices to domestic farmers to help them sustain themselves. APTMA has also set up the APTMA Cotton Foundation (ACF) to improve the cotton sector’s performance. The foundation aims to promote model farming techniques by creating cotton clusters and centers of excellence.
Pakistan fully utilizes its domestic cotton supply by exporting 84 per cent of the apparels made from cotton. The country’s synthetic fiber market is also booming with demand for athletic wear rising. However, it needs to upgrade its production techniques to compete in this market. It hopes, incoming investments will help in upgrading the industry’s technology and capture a higher share in the synthetic fiber market.
The current currency pressures in the industry can be attributed to the previous lack of investments. It is threatening to slow the growth pace of the large scale manufacturing sector in the Pakistan.
The textile sector accounts for 60 per cent of Pakistan’s total exports. The sector needs consistent support and investments to achieve economic growth. It aims to boost exports by setting up 100 new textile units with an investment of $5 billion.
Targeting $21 exports by FY2022-end
The industry can achieve its target of $21 billion textile exports by procuring energy at regionally competitive prices. For this, the government needs to introduce a long-term textile policy incorporating regionally competitive energy tariffs.
The government’s regionally competitive energy pricing policy has helped the industry expand its operations. However, to sustain this expansion, it needs to upgrade its current technologies.
Technology upgradation will not only help the industry diversify into other related sectors, but also enhance its position in the apparel value chain and redesign import duty suspension and refund programs for exporters. Pakistan’s textile sector can thus lead its economic growth by a consistent supply of competitive inputs and constant value addition.
British retailers aim for complete carbon neutrality by 2040
Believing in the ability of brands and retailers to neutralize their carbon impact and leave a positive mark on the planet, last week, the British Retail Consortium (BRC) unveiled a series of ambitious targets for the next two decades. As per a Women’s Wear Daily report, the consortium aims to completely de-carbonize UK retail by 2040 by powering stores and warehouses with net-zero electricity by 2030.
To achieve its goal, the BRC aims to reduce carbon emissions from shops and logistics operations besides encouraging consumers to adopt a low-carbon lifestyle. The consortium’s action plan is being endorsed by around 60 British retailers including Burberry, Asos, All Saints, Marks & Spencer and Boots. Many of these fast-fashion retailers have been criticized for their wasteful practices and ignorance of workers’ well-being.
Rebuilding the industry with greener focus
By 2040, BRC aims to enable each of its UK customers to make purchases both in-stores as well as online, says Helen Dickinson, CEO. She believes,
retailers can survive the pandemic-induced economic challenges by rebuilding the industry with a greener focus. Emerging UK brands can also build their businesses around carbon neutral supply chains as consumers are more likely to shop from sustainable and ethical brands, shows a recent survey by PwC.
Sustainable knitwear company, Sheep Inchas been able to achieve a carbon negative status by making biodiversity investments. The company dedicates 5 percent of its revenues to a number of carbon-insetting initiatives in farms impacted by over-use by fashion and agriculture industries. Each of the company’s garments comes with a tag that provides a full account of the item’s carbon impact.
Collaborating with like-minded suppliers
To achieve carbon neutrality, brands need to work with suppliers upholding similar values, says Edzardvan der Wyck, Co-Founder, Sheep, Inc. They need to adopt anew mind-set and weave it into their business’ margin structure, he adds. Sustainable label Dai, upholds the view. The specialist of wardrobe staples has been certified as a B Corporation having scored 97.4 points out of 200 available points.
Aiming for complete carbon neutrality by 2021, Dai has been offsetting carbon on 100 percent of its shipments for the past three years and aims to achieve a carbon negative status by this year-end.
