Pakistan’s textile exports up two per cent
Pakistan’s textile and clothing exports rose two per cent year-on-year in the first eight months of the fiscal year. The primary growth driver was, value-added textiles. Readymade garment exports went up 2.72 per cent in value and 27 per cent in quantity. Exports of knitwear edged up 11.4 per cent in value and 18.3 per cent in quantity. Exports of non-textile products went up by 3.15 per cent. Exports of petroleum products went up 23.64 per cent. Petroleum crude and naphtha led the increase in the sector’s exports.
Footwear exports jumped 14.55 per cent mainly driven by footwear sales. Exports of surgical goods and medical instruments went up by 1.71 per cent. Exports of gur were up by 6.58 per cent, cement by 37.5 per cent and gems by ten per cent during the period under review. Basmati rice exports witnessed a robust growth of 14.8 per cent. Meat and wheat emerged as the other two major export commodities which recorded growth during the period. Other products which also posted growth include oil, fish, seeds, pulses, spices, fruits, vegetables and tobacco.
One of the reasons for the revival of exports was a cash subsidy. Pending refunds to taxpayers were released.
UK buyers want Tirupur exporters to act fast
UK-based buyers want garment exporters based in Tirupur to ship orders before Britain leaves the European Union. Buyers want to avoid losses in the face of possible changes in import and export tariffs in the UK once Britain exits the EU. The Brexit deal is set to be sealed on March 29. It is uncertain, though, how exporters can respond to the request since garments cannot be manufactured overnight.
Britain is one of the major importers of apparel goods from India. For the Tirupur knitwear industry, such exports account for about 12 per cent of their business. Goods worth Rs 3,000 crores are exported from the cluster a year. Trade bodies like the Apparel Export Promotion Council have urged the government to take immediate steps to enter a free trade agreement with the UK once the Brexit deal is completed. They feel since there is a strong preference for Indian apparels among buyers and chain stores in Britain, it will be possible to sign an agreement with Britain.
Brexit is only impacting a limited number of Indian businesses operating and investing in the UK. These include manufacturing companies that rely on just-in-time supply chains and who trade between the UK and the EU.
Textile Forum, UK gets a thumbs-up from exhibitors, visitors
Textile Forum was held in the UK, March 13 and 14, 2019. The show is a one-stop sourcing platform for brands and designers. This year, the show featured a dedicated manufacturer’s area. Exhibitors ranged from specialist lingerie manufacturers and denim producers to pattern cutters. Some 45 exhibitors – manufacturers, textiles producers and trimmings businesses – showed at the event. Exhibitors praised the positive atmosphere, strong caliber of visitors and the focus on UK names at the latest edition of this fashion fabrics trade show. Despite challenges in the fashion market and continuing unease concerning Brexit, the mood at the show was buoyant. The smaller nature of the show – where textile mills offer lower minimums to buyers than at other shows – meant it was potentially benefiting from the uncertainties in the market, as buyers and designers felt the need for flexibility and adaptability from suppliers.
While most exhibitors attended the show to target smaller businesses, visitors ranged from independent dressmakers, new brands and manufacturers to costume designers, luxury fashion houses and high street names. The majority of buyers were London and UK based, although Turkish and Lithuanian visitors also made an appearance.
Report highlights wools’ damaging environmental impact
A recent “Pulse of the Fashion Industry” report shows, sheep farming, just like cattle farming, generates huge quantities of the greenhouse-gas emissions that cause climate change. Wool production gobbles up precious resources. Environmentalists are increasingly highlighting the negative impact of sheep farming on the landscape. Land are cleared and trees cut to make room for grazing sheep, leading to increased soil salinity, erosion, and decreased biodiversity.
In England and Wales, farming has stripped almost the entire upland area of wildlife such as eagles and mountain hares. If we stopped exploiting sheep, this land could be returned to nature, allowing the re-establishment of forests, wetlands, and other vital natural habitats that provide wild animals with homes.
Pesticides and insecticides are often used on sheep to keep them free of parasites. And once sheep have been shorn, their wool is scoured and washed using chemicals, which can also contaminate nearby water sources.
According to the “report and the “Higg Materials Sustainability Index“,greenhouse-gas emissions generated in wool production are far greater than those caused by the production of acrylic, nylon, viscose, and many other synthetic materials.
Rising cotton prices alarm Indian apparel industry
The sudden rise in cotton prices in India might slowdown the already dull apparel business. Cotton arrivals in Tamil Nadu markets have decreased and resulted in a sudden increase in cotton prices. Inflation has already increased the price of warp yarn and soon hosiery yarn prices are also expected to go up, subsequently increasing prices of garments. If cotton prices keep rising, hosiery manufacturers will be affected. The domestic hosiery market has already been reeling under pressure.
While in many countries, a hectare yield 1400 kg of cotton, in India the yield is only around 500 kg of cotton per hectare. Besides, unscientific data collection on cotton production is a bane. Gujarat and Maharashtra together account for more than half of the country’s total cotton production. Textile mills have been advised against panicking over reports of a tight cotton stock position during the current season. The Indian Cotton Federation has appealed to traders to desist from speculating on the production of cotton and increasing the price of the white fiber. Demand for Indian cotton happens to be robust this year from China as a trade war is prompting the world's top consumer to avoid imports from the United States.
BCI experiences historic uptake in 2018
Better Cotton Initiative (BCI) experienced a historic uptake in 2018 as 93 retailers and brands sourced more than one million metric tonnes of Better Cotton. The uptake increased by 45 per cent over the previous year. Retailers’ and brands’ sourcing of Better Cotton accounted for 4 per cent of global cotton consumption. By integrating Better Cotton into their sustainable sourcing strategies and increasing sourcing commitments year-on-year, BCI’s Retailer and Brand Members are driving demand for more sustainable cotton production worldwide.
Better Cotton uptake increased 45 per cent on the previous year, and at the end of 2018, retailer and brand member sourcing of Better Cotton accounted for 4 per cent of global cotton consumption.
BCI’s demand-driven funding model means retailers and brand sourcing of Better Cotton directly translates into increased investment in training for cotton farmers on more sustainable practices. For example, in the 2017-18 cotton season, BCI Retailer and Brand Members, public donors and IDH (the Sustainable Trade Initiative) contributed more than €6.4 million, enabling more than 1 million farmers across China, India, Mozambique, Pakistan, Tajikistan, Turkey and Senegal to receive support and training.
Sustainability initiatives by brands only way to reduce carbon footprint
"A new report by the Waste and Resources Action Programme (WRAP) reveals, around £140-million worth of clothing is discarded every year in the UK. The fashion industry works on a ‘take-make-dispose’ model with new, cheaply-made and cheaply-sold items introduced every season. The total carbon footprint of clothing in the UK has increased since 2012."
A new report by the Waste and Resources Action Programme (WRAP) reveals, around £140-million worth of clothing is discarded every year in the UK. The fashion industry works on a ‘take-make-dispose’ model with new, cheaply-made and cheaply-sold items introduced every season. The total carbon footprint of clothing in the UK has increased since 2012. According to WRAP, which launched its Sustainable Action Plan in 2016, the main culprit for these environmental impact is the extraction of new resources for clothing – around 9 million tons of CO2e every year comes from fiber production from agriculture or polymer extrusion (for synthetic fabrics).
Therefore, there is an urgent need to secure new sources of materials and find new markets for used clothing.
Fiber to fiber recycling offers a potential solution – but one that has not been properly investigated. The report suggests, new processes and entrants onto the market should be monitored for future investment.
Little information on recycling processes hinders growth
The report points out cotton and polyester are the most potential for fiber to fiber recycling. These are most commonly used materials in clothing and household textiles. Increasing demand for cotton also brings positivity into the recycled fiber market.
However, the industry needs to overcome significant barriers to increase its uptake of recycled fibers. The first of these includes the lack of information about new recycling processes for fibers. Moreover, collection and sorting of post-consumer textiles need to improve. Costs for this can be potentially funded through an extended producer responsibility (EPR) regime for textiles, which would see producers invest in fiber to fiber recycling. In order to make post-consumer fiber an attractive and financially viable prospect for processors, demand from brands and retailers also needs to be stimulated, along with a more positive perception of recycled materials from consumers.
EAC highlights retailer’s sustainability initiatives
The clothing industry is currently facing increased scrutiny, with an ongoing inquiry from UK Parliament’s Environmental Audit Committee (EAC) looking at the initiatives of leading fashion retailers to improve the environmental impact of their clothing.
The interim report from the EAC highlighted retailers most and least engaged with improving their sustainability record. Brands like Primark, Tesco, ASOS and Marks & Spenser have all signed up to the SCAP 2020 targets. These brands are using sustainable cotton and offering take back schemes for their products. However, many retailers like JD Sports, TK Maxx, Amazon UK, Boohoo have shamed the industry by voluntarily opting out of these targets.
Prada’s annual revenue increase for the first time in four years
Annual revenues for Italian luxury group Prada increased for the first time in four years, although sales growth slowed in the second half of 2018. Full-year sales of the group increased 6 per cent at constant exchange rates to €3.142 billion compared to a 9.4 increase in the first six months. Earnings before interest and taxes (EBIT) declined 10 percent to €323.8 million. Analysts had expected revenues of €3.17 billion revenues and an EBIT of €377 million, according to Refinitiv data.
The Milan-based but Hong-Kong listed company, jointly run by Miuccia Prada and Patrizio Bertelli, plans to revive its sales.
Zalando closes private clothing and shoe brands
Zalando is closing many of its private clothing and shoes brands in order to woo more established brands to a lineup that already includes the likes of Nike, Adidas and Hugo Boss. Europe’s biggest online fashion platform has cut more than a third of 18 in-house labels for everything from coats to children’s wear, and the remaining ones are under review.
Zalando plans to boost the annual worth of its shipped merchandise to $23 billion within five years. While in-house brands will remain a sizable part of its business, Zalando will focus on them in shoes and some basic apparel. Almost a decade ago, Zalando noticed customers were leaving its website because they couldn’t find certain goods. The retailer responded by hiring designers, who churned out as many as 20,000 pieces per year, and making its own apparel at factories in Asia, Portugal and Turkey.
Italian luxe brand Emilio Pucci spreads retail in Asia
Emilio Pucci is a luxury Italian fashion brand specializing in women’s ready-to-wear and accessories. With a singular heritage steeped in Italian values and aristocracy, its unique positioning is founded on unprecedented freedom of movement, an unmistakable color palette and a wealth of inimitable prints inspired by the brand’s archives. Emilio Pucci designs are instantly recognizable and embody a playful femininity. The designs, which strike a balance between Italian exuberance and simple shapes, celebrate color and a way of life that breaks with convention.
The brand has opened a store in Hong Kong. The new store showcases luxury fashion collections that range from ready-to-wear apparels and leather goods to exquisite signature silk accessories. There is also an impressive display of handbags, shoes and beachwear. The golden-colored pillars and racks convey an idea of the Renaissance. The green plants adorning the store give a Mediterranean garden feel. Another highlight of the store is the Cappellini-made unique Riva droite armchair. Besides, the store is also embellished by beautiful Capri blue carpet and travertine marble.
The HK reinforces Emilio Pucci’s efforts to expand its presence in Asia, where it already operates in Kuala Lumpur, Bangkok and Seoul, among other locations in south east Asia.
More...
Arvind Envisol mulls water treatment plant in Bangladesh
Arvind Envisol plans to execute water treatment projects in Bangladesh, whose economy depends heavily on the heavily polluting textile and clothing industry. Arvind Envisol, the waste water treatment arm of the textile conglomerate Arvind, expects to accelerate growth in India by launching its components business Kaigo. It expects this unit to contribute 25 per cent to its overall revenue in the next three years and establish the company’s presence in the consumer sector by supplying directly to original equipment manufacturers and end users. The company has emerged as one of the major focus areas within the Arvind group ever since a demerger last year split the parent into four listed companies.
Arvind Envisol is looking for collaborations across India, Africa, Bangladesh and China for driving growth and is in the final stages of signing a joint venture agreement with a Chinese textile company. Envisol is active in water and wastewater treatment and municipal solid waste management.
Arvind has an annual production capacity of more than 100 million meters in denim, 132 million meters in woven fabric, 10,000 tons of knit fabric and 48,000 meters of voile. The group has built a strong portfolio of brands that straddles consumer segments across the income pyramid.
Ethical fashion gains ground with growing awareness on socio-environmental issues
"Young consumers today are concerned about social and environmental causes that are defining issues of our times. They support their beliefs by favoring brands aligned to their values. Studies indicate nine out of 10 GenZ consumers feel companies have a responsibility to address environmental and social issues. However, this concern about environmental and social issues is not restricted to younger consumers alone. Around two-thirds consumers worldwide would switch, avoid, or boycott brands that do not agree with their stance on controversial issues."
Young consumers today are concerned about social and environmental causes that are defining issues of our times. They support their beliefs by favoring brands aligned to their values. Studies indicate nine out of 10 GenZ consumers feel companies have a responsibility to address environmental and social issues. However, this concern about environmental and social issues is not restricted to younger consumers alone. Around two-thirds consumers worldwide would switch, avoid, or boycott brands that do not agree with their stance on controversial issues.
Trend towards making principled purchases
Over the past three years, one third consumers worldwide have incorporated principled views and values in their purchasing decisions. Fashion companies are becoming alert to injustice in society. Brands and retailers, including Levi’s and Nike have taken a clear stance on social issues in recent months. Nike supporting Colin Kaepernick, the face of the NFL’s “anthem protests,” and Levi’s fronting a campaign against gun violence. Gucci has also supported that cause, supporting a student-led march calling for more gun control.
Some fashion players have attached collections and ranges to specific causes. For example, H&M launched a Pride collection in 2018 in support of the LGBTQ+ community, and Balenciaga collaborated with World Food Programme, donning its slogan, “Saving Lives, Changing Lives”.
Increase in B-certified corporations
There are growing number of B-Corporations, which are certified to have considered the impact of their decisions on people, society, and the planet (exhibit). Companies including Ben & Jerry’s, Danone, and Patagonia are B-certified. In the fashion, apparel, and beauty sector, the number of B-corps rose to nearly 200 by April 2018, compared with just seven in 2010.
Notably, environmentally and socially focused companies are considered by younger cohorts as better prospects for employers, and they would be more loyal to companies that are aligned with those values.
Identifying ‘real’ from ‘fake’
However, not all causes that fashion brands advocate are universally popular, and these can come with significant risks. The
NFL “anthem protest” was a divisive issue in the United States, creating a mixture of applause and backlash for Nike. Still, it created earned media exposure worth more than $163 million, within just days of the campaign launch. Besides potential controversy from supporting divisive causes, brands may also risk being perceived as hypocritical if they do not carefully ensure consistency in their messages and actions.
Another reason brand alignment with causes can backfire is that discerning consumers can easily spot the difference between gimmicks and a genuine purpose that aligns with the values of the organization. Companies can expect consumers to closely examine the level of continuity across campaigns and the nature of their strategic and operational decisions, as well as their tone.
More consumers to increase commitment levels
While consumers in Western markets currently tend to dominate the movement towards environmental and social conscience this is likely to change. In future, a rising number of consumers in other markets will increase their levels of commitment.
Despite many associated risks, some large brands willingly court controversies to express beliefs, particularly luxury players, which attract younger consumer groups. And while expression of controversial views may deter some, loyalty rewarded by remaining customers matters more.
Zara to launch first denim capsule collection
Zara plans to offer its first capsule collection of customisable denim apparel via pop-ups later this month. The pop-ups start on March 27 in three Zara locations in Europe: Vittorio Emanuele, Milan; Kalverstraat, Amsterdam, and Plaza Cataluña, Barcelona. Customers who shop Zara’s online stores in Spain, the U.K., the Netherlands and Italy will also have access to the customisation features. Customised product from a store can be delivered immediately, while those ordered online will be sent to the buyer via Zara’s usual delivery times.
The service Zara is testing allows consumers to have embroidered one word–up to 11 characters–onto any of nine different denim products in the capsule. The apparel options include jeans, denim skirts, jackets and shorts. Customers will also be able to choose a range of fonts and six different embroidery thread colors.
Under Armour lauded for labor rights
Under Armour has secured a stamp of approval from Fair Labor Association (FLA). The US-based sports apparel maker’s social compliance program includes strong policies for monitoring and fixing problems affecting workers in the supply chain. This includes a commitment at the board and executive level to protect workers and improve conditions, regular training on workplace standards, clear channels through which workers can report grievances and a comprehensive monitoring program that involves meeting with unions.
FLA is a labor group which monitors labor practices covering factory workers around the globe. As a part of accreditation process, Under Armour published a list of apparel and footwear factories in nearly 30 countries where about 90 per cent of its products are made, including places such as China, Indonesia, Jordan, Mexico, Vietnam and the United States. Other factories are located in Brazil, Egypt, El Salvador, Haiti and Malaysia. Under Armour has been working on improving operations, including supply chain initiatives that are expected to help boost 2019’s gross margins. The company’s accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives it increasingly greater confidence in its ability to deliver for Under Armour athletes, customers and shareholders. The company has guided gross margin to an improvement of 60 to 80 basis points from 2018’s adjusted gross margin.
