Bangladesh's apparel export earnings fell 12 per cent in the first 18 days of September 2022.

This fall in export receipts has been putdown to record inflation in the sector's major destinations fuelled by the ongoing Russia-Ukraine war. In the face of reduced consumer demand, a number of retailers, including Walmart, have already cancelled some orders. Besides, some buyers are requesting exporters to delay shipments or suspend orders ready for delivery.

The slowdown of apparel shipments was expected from August 2022 as most factories have been facing a fall in work orders, which is being reflected in export earnings.The fear is that it might continue till May 2023. The industry is experiencing a slowdown as retailers are stuck with too much inventory at their stores.The war-driven economic recession has badly affected clothing demand. Some knitting factories in Bangladesh have shut down because of order shortages that have continued over two months. Due to high inflation and increased bank interest rates in export destination countries, a number of buyers have been going slow in placing new orders over the last two months and many of them are asking to hold shipments.

Entrepreneurs are looking for new orders from new markets, especially from Japan, Korea and India, for the survival of the industry.

A surge in nationalist sentiment and growing hostility to foreign labels is compelling global fashion brands to reduce their footprint in China. A report by SCMP indicates, US clothing brand Gap is reducing its retail footprint in China by cutting down the number of stores to 143. And experts say, foreign brands in China continue to struggle with competition from domestic brands that offer cheaper products via live-streaming and e-commerce platforms.

Around 62 per cent of Chinese consumers bought clothes via e-commerce platforms in 2022, as per data from iiMedia Research while 58.5 per cent customers continue to buy clothes through traditional offline and online platforms. They spend between 201 and 600 yuan on clothing purchases while prices of brands like Gap and Zara range between 300-600 yuan.

Incorporating more local designs

The apparel industry in China continues to adopt more local elements to cater to the demands of young Chinese consumers, says the “China Youth Consumption Report” from iiMedia Research. Western firms’ boycott of Xinjiang cotton has accelerated this trend with search for Chinese clothing brands increasing 137 per cent, reveals Baidu’s 2021 big-data search report. Younger consumer sare also opting for Chinese brands, says Yanie Yanson, Founder, Pompom.

Swedish brand H&M’s sales declined 40 per cent Y-o-Y in fourth quarter 2021 fiscal as it publicly boycotted Xinjiang cotton. The brand closed its flagship Shanghai store in June though it returned to Tmall later. Owned by the Gap Group, Old Navy closed all stores and exited the Chinese market in March 2020 to expand business in North America. Similarly, British clothing brands Top Shop and New Look suspended operations in China in 2018 due to weak performance.

What’s more, monotonous designs are also preventing international fast fashion brands from expanding their business in China. Lower prices, diverse designs, and higher quality, are helping Chinese brands boost business locally. This has made the clothes market in China extremely competitive.

C.L.A.S.S. or Creativity Lifestyle And Sustainable Synergy returned for the second time to White Sustainable Milano, Italy, September 22 to 25, 2022. The objective is to represent a selected and smart path of the production chain related to materials, technologies, production, customization, finishing processes and dyes that are increasingly less impactful on the environment.

An online space called C.L.A.S.S. Smart Shop is offering eco-high-tech materials representing a vast range of categories able to create a new generation of fashion. The Smart Shop is dedicated to students, designers and new generation brands who want to explore and test premium materials mixing style, innovation and responsibility, with high quality, transparency and responsible costs. International protagonists of the technological and digital transition will discuss important topics such as the digital product passport, greenwashing, innovative materials and technologies, regenerative agriculture and new frontiers of retail. C.L.A.S.S. highlights all the ingredients that can bring the next generation wardrobe to life by communicating the real value to the end consumer.

C.L.A.S.S. (Creativity Lifestyle And Sustainable Synergy) is an international eco-hub, which advocates for a new generation of fashion where the fusion of design, innovation, communication and responsibility shapes an informed and competitive business. C.L.A.S.S. supports the whole supply chain to trigger change in the system while activating values that speak clearly to contemporary consumers.

The second production-linked incentive (PLI) scheme for textiles is likely to offer incentives for manufacturing garments and home textiles. These categories cover blankets, bed spreads, and textile accessories like lace, button, and zippers. Three investment thresholds, of Rs 15 crores, Rs 30 crores and Rs 45 crores, are being considered, with double turnover as the criterion for incentives that would range between 8 and 10 per cent under the Rs 4200 crore scheme.

It is also likely to add a minimum number of stitching and sewing machines as another benchmark to avail the sops. The scheme is expected to attract investment and reduce the import dependence in textile accessories. Such value addition sectors are labor-intensive that require low investment but have a high potential to create jobs. Selected companies would have to achieve the minimum turnover, which is two times the investment, in the first year and then a 20 per cent increase in turnover over the previous year. In the first edition of the PLI scheme, the minimum investment required was Rs 100 crores and Rs 300 crores while the minimum turnover required to be achieved for incentives was Rs 200 crores and Rs 600 crores respectively.