Sri Lanka exporters urge increased value addition to EU-targeted garment exports
Hemantha Perera, Secretary, Sri Lanka Chamber of Garment Exporters has urged the country’s apparel industry to increase value addition in exports to the EU from 52 per cent to 65 per cent. A member of the Joint Apparel Association Forum, Perera believes this will enable them to utilize GSP+ benefits to the fullest.
Perera was speaking at a panel discussion, ‘GSP Plus; Past, Present and Future’, hosted by the Federation of Chambers of Commerce and Industry of Sri Lanka and the Colombo Chamber of Commerce. He noted that certain fabrics used for apparel production are currently being imported from regions that disqualify the manufactured product for tariff reductions under the EU’s GSP+ concessions. This disqualification could be resolved through local production of such inputs, he added.
Several other speakers highlighted the need for Sri Lanka to retain GSP+ concessions to the EU, including Suresh de Mel, Chairman, Export Development Board (EDB) and Dayaratna Silva, Sri Lanka’s former Ambassador and Permanent Representative to the World Trade Organization (WTO). Silva referred to previous studies published by respected academics that highlight instances of GSP+ withdrawal had a negative impact on the country’s overall economy – with GDP declining by more than 1 per cent.
Recycling, increased consumption can accelerate shift to sustainable cotton in Hong Kong
The use of sustainable cotton in Hong Kong is not prevalent in Hong Kong, shows a new report from the World Wildlife Fund (WWF). The report states, eight out of 10 fashion labels in Hong Kong either completely fail or provide only a limited range of sustainable cotton clothing. The survey is based on a study of 39 local and global brands’ ESG reports, online stores, surveys as well as on-site visits to 140 stores across Hong Kong from 2019 to 2020, informs As Green Queen report,
Limited use of sustainable cotton among brands
The WWF report shows, only six of all the surveyed brands committed to use sustainable cotton and sell their
clothes at designated areas in stores. These are: H&M Baby, M&S, M&S Baby, Muji, Tommy Hilfiger, and Tommy Jeans. Only 13 brands sold clothes made from 100 per cent sustainable cotton in their stores though all of them had committed to this transition, the report highlights
This limits the availability of apparel made from sustainable cotton in the market, opines Christine Cheng, Sustainability Project Officer, WWF-Hong Kong. Only international brands are known to use sustainable cotton, while local brands do not yet prioritize on sustainable materials, she adds. Brands also fail to offer required information to shoppers to enable them towards conscious shopping choices.
Need for more investments in cotton recycling infrastructure
The WWF-Hong Kong report studies the material’s impact on the planet. One of the most widely used materials, cotton requires huge amounts of water for cultivation and causes intensive soil-degrading and emissions.Hence, it is necessary for a shift to more sustainably produced cotton, such as Better Cotton Initiative (BCI), organic cotton, recycled cotton, and Fairtrade cotton, says the report. The Hong Kong fashion market lacks the required cotton recycling infrastructure to facilitate this transition, adds Karen Ho, Head - Corporate and Community Sustainability, WWF-Hong Kong.
However, they can develop into a major cotton recycling center if it invests more resources in post-consumer waste collection, material clearing and recycling of cotton fibers, he adds. Hong Kong consumers need to boost consumption of sustainable cotton in the country, believes Ho. They need to make sustainable fashion choices by buying more secondhand clothes, swapping garments or recycling their clothes.
Welspun Group promotes Rajendra Mehta to CHRO of People’s Practices
Welspun Group has promoted Rajendra Mehta to the CHRO of the Group – People’s Practices. A $2.3 billion enterprise with global presence across differentiated sectors like line pipes, home textiles, infrastructure, steel, advanced textiles and flooring solutions. People Practices has been one of the fundamental pillars of the Group’s success with a keen focus on agility, speed and ownership philosophies.
This vertical has been adopting best practices to further the Group’s transformational objectives and has achieved remarkable feats year on year – be it technology, capability development, agile partnerships or cultural stewardship- it has paved the way for enriched employee experience and consequently having a positive impact on business.
Mehta has 26 years of experience in driving strategic and transformational HR practices across BFSI, Entertainment, Private Equity, Engineering industries. He joined the Textile division in May 2020, and since then has significantly contributed towards stabilizing and strengthening HR Functions at Welspun India He has been instrumental in driving key people practices, innovations and has actively worked in the direction of attaining the company’s ESG goals.
New Accord agreement approved by 77 brands
Signed by 77 international apparel brands, the International Accord for Health and Safety in the Textile and Garment Industry has been approved as the successor agreement to the Bangladesh Accord.
On the occasion of the start of the International Accord, Clean Clothes Campaign relaunched its brand tracker to indicate which brands have signed on and which of the major brands sourcing from Bangladesh have not yet done so.Most of the largest buyers from the country, including H&M, Inditex (Zara), C&A, PVH (Tommy Hilfiger, Calvin Klein), and Bestseller (Vero Moda) have signed on. Their signatures alone mean that workers in hundreds of factories can be assured of working in factories that are regularly monitored and proactively remediated and have access to a credible complaints mechanism.
Other major companies sourcing from Bangladesh, including Gap, VF Corporation (North Face), Primark, Desigual, and Auchan, have not yet signed the new agreement. The Clean Clothes Campaign network and its allies will start a public campaign calling out all brands that fail to prioritize their workers’ safety by signing the International Accord.
IAF 36th World Fashion Convention to be supported by Global Sponsors
The IAF 36th World Fashion Convention, to be held from November 07-09 in Antwerp, is being supported by global sponsors.
As per reports, sponsors for the convention include IHKIB, a major Turkish association strengthening the export capabilities of a major part of Turkish apparel manufacturers; QIMAone is a collaborative platform digitizing quality and compliance management for global brands, retailers, and manufacturers; Serai simplifies global trade by building more efficient supply chains; A&E, the foremost manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles; Fair Wear Foundation, a multi-stakeholder initiative helping companies to improve labor conditions in their supply chains and SIM brings innovative supply chain information systems from the food industry to the apparel industry. These organizations enable federations such as the IAF to host a high level industry-wide platform. Also, the event will be extensively covered by media partners just-style and FashionUnited and knowledge partners Fibre2fashion and Sourcing Journal.
The Convention will bring together senior apparel industry representatives from across the supply chain. The Convention’s theme ‘Transition of the Global Fashion System’ will therefore be consistently viewed through the lens of the necessary buyer-supplier collaboration to pull of the needed transition.
David Sävmann, Head-Supply Chain, H&M Group will discuss with various manufacturers from different parts of the world on this theme. Leading industry analyst John Thorbeck will present a current business case highlighting the strong link between a transition of business processes and improved sustainability. And the convention’s extensive coverage of the crucial topic of digitalization will be built around the interaction between brands, retailers and their suppliers.
Portuguese company impetus to launch new intimates collection
Leading Portuguese textile company Impetus is planning to launch a premium carbon positive and traceable intimates collection, made with cotton from the world’s first carbon positive Good Earth Cotton farm in Moree, Northern New South Wales, Australia.
Specializing in underwear, loungewear, beachwear, athleisure and technical textiles, Impetus is one of the core creative brands in Europe today, with its own licensed brands and private label.
As per an Innovation in Textiles report, Impetus has partnered with Singapore-headquartered FibreTrace to ensure the combination of physical and digital traceability to authenticate the raw cotton fibre from the farm and accurately report on environmental credentials to reduce impact.
Good Earth Cotton products will be introduced into Impetus Brand collections at the end of 2021, ready for market by 2022.
Gildan Actiwear’s new ESG report reflects key priorities
The 17th Environmental, Social, and Governance (ESG) report published by America-Canadian apparel manufacturer Gildan Activwear Inc, reflects the company’s key priorities towards continuing its vision of ‘Making Apparel Better.’
As per Apparel Resources, the company faced unprecedented circumstances in 2020 due to the impacts of the COVID pandemic and two back-to-back hurricanes in Central America.
Despite these challenging events, Gildan ended the year on a strong note, demonstrating that operating and financial performance combined with a focus on ESG creates value for all stakeholders.
In 2020, Gildan completed its second set of 5-year environmental targets. Some of the key achievements regarding environment include 33 per cent of Gildan’s total energy from renewable sources, 88 per cent of Gildan’s total waste being recycled or repurposed, 11.4 per cent reduction in water intensity achieved from 2015 to 2020 and 14 per cent decrease in Gildan’s total waste from 2015 to 2020.
In 2020, Gildan achieved the vast majority of its social goals and maintained industry-leading working conditions and labour practices by creating safe and healthy workplaces, respecting human and labour rights and employees’ freedom of association, empowering women and offering competitive benefits.
Former Adidas Head to launch zero-waste streetwear brand
Business of Fashion has reported that Eric Liedtke, Former Head-Global Brands, Adidas, is launching a zero-waste, zero-plastic streetwear brand called Unless.
Unless takes inspiration from the city of Portland and builds on the sustainability-focused work Liedtke is known for, which helped Adidas move into new territory with regards to materials and manufacturing.
The brand will maintain what it describes as a “zero plastic promise,” meaning—as touched on above—no waste will be left behind once a piece from the brand hits the end of the metaphorical road. Prospective buyers can look forward to a wide range of products including apparel, footwear, accessories, and more. The first drop is slated for this fall.
The brand is backed by Connect Ventures, a partnership between entertainment and sports agency Creative Artists Agency and venture capital firm New Enterprise Associates
Liedtke, a 25-year Adidas veteran, left the brand at the close of 2019. He was credited with guiding collaborations with Kanye West, Pharrell Williams and Beyoncé. He has been on the board of Parley for the Oceans, a nonprofit that works with brands on products made from recycled ocean plastic, since 2015.
Traffic on Carved in Blue increases 30 per cent during pandemic
During the pandemic, traffic on the Lenzing’s Carved in Blue platform increased by 30 per cent as it continued to meet market demands. As per a Sourcing Journal report, the platform pivoted to videos and a webinar series to help the industry stay connected
Since its launch five years ago, the blog has become a favorite communication platform of the denim industry. It not only amplifies the success stories of partners that use Lenzing’s fibers such as Tencel and Tencel x Refibra in their collections but also features news articles, social media, videos, webinars, ecommerce, a YouTube channel and a podcast series called Blue Cast.
The Content Marketing Institute awarded the blog with the ‘Best Topic Specific Blog’ award in 2020. The accolade affirms the platform’s creator’s belief in need for community building platform for the sector to bridge the supply chain gap with brands and consumers. The blog is also home to several popular content series such as ‘All in the Family,’ a collection of 25 profiles on family-owned denim businesses.
Guess Inc to launch Jeans Redesign-inspired collection
Guess plans to launch its first denim drop made in accordance with Ellen MacArthur Foundation’s Jeans Redesign guidelines. The company is continuously concetrating on Resourced, its jeans take-back program, and expanding Guess Vintage online to European shoppers to make authentic vintage Guess items more accessible.
Another focus is, expanding brick and mortar presence. The company plans to test new concepts, including pop-ups and stores dedicated to accessories, athleisure and the Marciano brand—with very limited lease terms and great potential for renewal. These stores will be set up in new locations in Russia, Germany, China, France and the US and Canada. They will have upgraded features like enhanced WiFi networks, extended payment methods and mobile check-outs. The company expects to complete these projects by the end of next year.
Encouraged by a strong demand for denim, Guess hopes to record $2.8 billion revenues by fiscal 2024. In Q2 FY 2022, the company saw 133.7 per cent surge in revenue from two years earlier, which Carlos Alberinim CEO and Director, attributed to expense management. Earnings from operations in the quarter increased 90 percent to $87.4 million from $46 million two years prior. Operating margin increased 7.2 per cent to 13.9 per cent from 6.7 per cent from two years prior, driven primarily by lower occupancy costs, higher initial markups and almost nonexistent promotional activity.
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US buyers to increase sourcing from Bangladesh
Fashion firms and buyers in the United States plan to increase sourcing from Bangladesh in the next two years, according to the United States Fashion Industry Association’s (USFIA) “2021 Fashion Industry Benchmarking Study. As per Textile Focus, this decision is influenced by lower prices of Bangladesh produced textiles and garments. A garment product in Bangladesh was priced at $2.5 in July-May this year, while the global average price was $2.6. Respondents to the survey indicate Bangladesh offers the most competitive price, followed by China, Vietnam, Indonesia, India, and Cambodia.
Only China offers lower prices than Bangladesh. However, US purchasers seek to diversify their sourcing away from China to reduce various sourcing risks. The US-China trade battle has intensified sourcing cost concerns and financial challenges for US fashion companies. The average duty on apparels imported from China increased to 23.4 per cent for the US in 2020 from 16.5 percent in 2017.
To emerge as a major apparel exporter to the US, Bangladesh would have to improve its manufacturing flexibility and agility besides diversifying the export product structure. Rising exports are likely to increase competition among the thousands of Bangladeshi clothing suppliers, putting smaller and less competitive players at risk.
8th ITMA ASIA+CITME 2022 to be held from November 20-24, 2021
The eighth combined edition of Asia’s leading business platform for textile machinery, ITMA ASIA + CITME 2022 will be held in Shanghai from November 20 to 24, 2021. Hosted by Cematex (European Committee of Textile Machinery Manufacturers), the Sub-Council of Textile Industry, CCPIT (CCPIT-Tex), China Textile Machinery Association (CTMA) and China Exhibition Centre Group Corporation (CIEC), the combined exhibition will help global textile machinery manufacturers extend their reach into Asia’s vibrant textile manufacturing hub, particularly China.
The exhibition will be organized by Beijing Textile Machinery International Exhibition Co and co-organized by ITMA Services. Japan Textile Machinery Association will be a special partner of the show. The last edition of ITMA ASIA + CITME 2020 was held on 160, 000 square meter in June 2021.The combined exhibition hosted 1,237 exhibitors from 20 countries and regions and attracted visitorship of about 65,000 from 30 countries and regions over 5 days.
Pakistan to expand share of knitwear exports to 20 per cent
Pakistan hopes to expand its market share of knitwear exports to 20 per cent in 2021-22. In 2020-21, Pakistan’s knitwear exports increased by 36.57 per cent compared to 2019-20. As per a Textile Focus report, revenues from knitwear exports increased 25.83 per cent compared to revenues from export of woven garments. Knitwear exports earnings also surpassed earnings from bedwear by 37.68 per cent.
Globally Pakistan has 1.83 per cent share in knitwear exports, Bangladesh has 8.12 per cent share. For three years in a row, Pakistan’s knitwear garment business was ranked first among textile groups in terms of employment. Its knitwear business contributes significantly to the country’s textile industry’s value addition. The country is expanding its product basket of knitwear items to attract new innovations and incentives to increase exports.
Foreign brands in China go local as nationalist sentiments rule consumer choices
A nationalist sentiment is shaping the way consumers shop in China. Instead of foreign-made goods, young Chinese shoppers are opting for products made by domestic brands and companies. A case in point is the Chinese sportswear brand Erke, which sold products worth over 100 million yuan worth in just three days through its social media platform Douyin.
One reason behind the brand’s recent sales surge is its 50 million yuan ($7.7 million) donation to flood-devastated Henan Province in the north last month, reports Asia Nekkei. Earlier mocked for its tacky designs and poor rebranding efforts, the brand has become a source of inspiration for consumers for its appreciation of Chinese cultural heritage.
Political climate reshaping domestic consumption patterns
The nationalist consumption trend in China is also being fuelled by changing global political climate, says Ivan
Su, Analyst, Morningstar. The US-China trade war and sanctions against Huawei have brought little-known domestic brands to the forefront and diminished the importance of foreign brands. In March, Western retailers including H&M, Burberry, Nike and Adidas faced widespread boycott in China for criticizing alleged forced labor in Xinjiang, home to the predominantly Muslim Uyghur people. Consumer searches for domestic brands on China’s largest search engine rose 137 per cent following the controversy,
Sales of brands Anta and Li Ning also rose 51.3 per cent and 71.9 per cent on Tmall, China's largest business-to-consumer online shopping platform, part of Alibaba Group. On the other hand, sales of Nike and Adidas fell 58.9 per cent and 79.4 per cent. Both brands also lost their endorsement deals with Chinese celebrities.
Growing demand for traditional designs
Shifting preferences of Chinese consumers are also giving rise to guochao trend, where the designs of consumer products feature strong Chinese elements. Domestic brands are increasingly focusing on indigenous design elements ranging from ancient patterns that originated in the Tang dynasty to high-tech symbols such as 5G and high-speed rail.
Chinese labels accounted for 75 per cent of most-searched brands on Baidu in the first four months of this year. Searches for Chinese digital products, apparel and beauty products emerged as the top three most popular categories. Increased demand for domestic Chinese brands spells trouble for foreign companies that consider China as an important market for them. To survive, these brands would need to keep up with the fast-changing tastes of young Chinese buyers.
The digital-first strategies of domestic brands are helping them surpass foreign competitors. The market share of national brands increased to 46.3 per cent in 2019 from 24.4 per cent, reveals China Insights Consultancy. Growth was fuelled by major e-commerce platforms such as Alibab’s Taobao, JD.com and Pindouduo, says Wang Gao, Professor-Marketing, China Europe International Business School.
Western brands launch limited editions at local festivals
International brands need to accelerate localization efforts to catch up with domestic brands in terms of both merchandising and marketing, explains Pablo Mauron, Managing Director-China, Digital Luxury Group. Some Western retailers have tried to boost their localization efforts by launching limited editions during major Chinese festivals. However, their designs were considered to be too disrespectful of Chinese tradition. Brands Burberry and Balenciaga have been panned by Internet users for their inappropriate use of Chinese phrases on luxury items.
Moroun believes, the growing popularity of gouchao brands is further likely to increase consumers’ skepticism toward Western brands. Foreign brands therefore, need to create new designs respecting local culture for the Chinese market.
