Despite a pause in business from Russia and Ukraine, net income of Inditex during the first fiscal quarter ended April 30, soared. The parent company of brands like Zara and Bershka recorded 80 per cent hike in Y-o-Y profit to €760 million with robust performance across all regions and in the US in particular. The company has incurred €216 million in costs to cover all extraordinary expenses resulting from temporary closure of business in Ukraine and Russia. It has closed all stores in the region since late February.
Revenues grew 36 per cent to €6.74 billion. China was the only market that underperformed with 67 stores being closed during the period due to COVID-related restrictions. Óscar García Maceiras, CEO, Inditex, attributed the strong results to a well-differentiated business model and the excellent performance of creative, sales and operating teams. The company’s sales increased 17 per cent in constant currency between May 1 and June 5. It has made constant progress on delivering its sustainability targets
The company has signed a three-year agreement worth over €100 million with Infinited Fiber Company to purchase 30 per cent of the fiber produced by Infinna, entirely from textile waste.
A part of Inditex’s Sustainability Hub, the project is an open innovation platform created to promote and to scale up innovation in materials, technologies, processes and sustainable solutions.
Chinese fashion behemoth Shein was applauded at the International Conference on Fashion Sustainability in Copenhagen for making a $15 million donation over three years to a charity working in the world’s largest secondhand clothing market at Kantamanto in Accra. The announcement was made by Liz Ricketts, Director, Or Foundation, a Ghana- and US-based not-for-profit working with Accra’s textile waste workers. Ghana gets 15 million secondhand garments every week, of which 40 per cent are thrown away that ultimately end up polluting the oceans.
The Or Foundation assesses the physical damages done by the accumulation of these heavy clothing bales through a weekly clinic for waste workers. According to Ricketts, the Shein fund does not substitute responsible behavior but forms a part of its extended producer responsibility. The money aims to address the ecological and social problems of the global clothing trade. It will help the foundation fund an apprenticeship program for Kantamanto women. It will also help textile business improve market conditions by recycling waste.
Ricketts urges other brands to be open about their sustainability initiatives and reward communities successfully managing their wastes. Adam Whinston, Head-ESG, Shein says, the brand looks forward to working with Or Foundation to address the problem of secondhand fashion.
Reliant on garment exports for its forex reserves, Bangladesh reported a drop in export in May 2022 as demand from Western economies stagnated due to growing inflation, Russia-Ukraine war and supply chain bottlenecks. Latest Export Promotion Bureau (EPB) stats show, though Bangladesh’s merchandize exports grew 23.24 per cent Y-o-Y to reach $3.83 billion during the month, it had declined to its lowest levels on month-on-month basis. Remittance flows from Bangladesh also declined 13.15 per cent year-on-year in May.
Export earnings drop $1billion in May
Drop in exports and lowering of funds transferred by migrant workers is likely to pressurize Bangladesh’s foreign currency reserves as the country’s import costs have gone up due to rise in commodity prices. Bangladesh’s exports earnings increased over $4.50 billion per month from September to April as receding pandemic led to a surge in demand. However, export earnings decelerated almost $1 billion in May than the average registered between September and April. During the July-May period of fiscal 2021-22, export earnings grew 34 per cent year-on-year to $47.17 billion.
Decline in purchasing power impacts clothing demand
Kutubuddin Ahmed, Chairman, Envoy Textile points out, a drop in buying power among Western consumers due rising inflation in four of its major export destinations, has impacted demand for clothing items in April 2022. Inflation peaked to its highest levels in 40 years at 8.3 per cent in the US, 9 per cent in the UK and 7.4 per cent in Germany during the month. This rise led to a few international brands and retailers demanding 2.5 to 5 per cent discounts on consignments, Ahmed opines.
Moreover, import costs of raw materials and machinery are constantly growing. Machinery suppliers are demanding 20 per cent more for delivering machines on account of the Russia-Ukraine war, Ahmed says.
Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributes export slowdown to Eid-ul-Fitr holidays when factories are closed for a week, on average. He predicts a further slowdown in orders due to rising inflationary pressures.
Offer more incentives to MMF manufacturers
Hassan believes, to boost exports manufacturers should offer more incentives to MMF manufacturers as demand for non-cotton items is rising worldwide. Mohammad Ali Khokon, President, Bangladesh Textile Mills Association (BTMA), points out, export slowdown did not affect work orders for yarn and fabrics in May though delivery of goods slowed down a bit. He hopes, orders will make a comeback in July this year.
Between July and May, shipment of leather and leather goods increased 31.85 per cent to $1.11 billion. Exports of rubber goods, cotton and cotton products, carpets, footwear, terry towels, ships and bicycles too went up in May while export of jute and jute products declined 3.19 per cent to $1.05 billion, reveals EPB data.
Consumer’s cut back spending due to economic slowdown, rising inflation and uncertainties in Europe, explains Khondaker Golam Moazzem, Research Director, Centre for Policy Dialogue. If the current slowdown continues, Bangladesh may lose its export momentum, he fears.
Weakening of taka is also helping exporters convert their earnings into local currency. To ensure fair exchange value for exporters, the Bangladesh Bank recently allowed market forces to determine the exchange rate of the taka against the US dollar.
The Textile Association (India) is organizing the World Textile Conference from February 25-26, 2023 at Ahmadabad on the theme ‘World Textiles - Redefining Strategy.
The proposed World Textile Conference – 3 attempts to address key strategic changes in manufacturing, marketing, trade, policies & research to look at the process and steps for Industry to be future ready. The two day "Hybrid" event would encompass deliberations on key topics like The New World Order in Textile & Apparel Industry, Digital Revolution Driving Sustainability, "Cotton Vs MMF or Cotton & MMF" - Pathway to Economic Leadership, Technology Developments & Investment Opportunities, Denims beyond 2025 & much more.
Diagonal Consulting (India), a leading Strategic and Management Consulting firm in Textiles spearheaded by Dr. P. R. Roy is the ‘Knowledge Partner’ for the said event. The firm and its associates integrate a range of expert knowledge in Textile & Apparel Industry through wide experience and alliances globally.
Over 650 major participants from the industry, trade bodies, educational and financial institutions, policy makers, researchers and economist from India and abroad will participate in the conference.
Over 80 textile fabric manufacturers from Surat in Gujarat and other states will participate in the Global Textile Trade Fair organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) in Atlanta from June 9 to June 11.
The textile manufacturers will also participate in the B2B (Business to Business) and B2C (Business to Customer) meeting in New Jersey and California, on June 16 and 19 respectively. Ashish Gujarati, President, SGCCI says, around 60 participants are from Surat and the remaining are from other states who will exhibit their textile products.
The event is being organized to increase the exports of textiles from Surat and other parts of India to the US and also to find out business opportunities to fulfill the dream of Union Minister PiyushGoyal of exports of textiles goods over $100 billion from Surat and India to the US.
The textile products to be displayed are polyester, viscose cotton, blended fabrics, home textiles, medical textiles, hotel textiles, apparel and garments, and khadi products. The event will be held at GAS South Convention Centre in Atlanta.
Market leader in wood-based specialty fibres, The Lenzing Group, hosted the ‘The Lenzing Conclave’ at Salem in Tamil Nadu. The conclave is an India-first initiative by Lenzing group, aimed at empowering the textile industry with best global practices in sustainable textile. The conclave featured insightful discussions with industry experts and leaders with a focus on the regional traditional wear market. India is among the top markets for Lenzing Group and ‘The Lenzing Conclave’ represents commitment to partner with all stakeholders in achieving its overall Sustainable Development Goals.
The conclave witnessed participation from Indian traditional wear manufacturers, traders and spinners who utilized the opportunity to absorb from the experiences of some early adaptors of sustainable traditional wear products in India. Insightful panel discussion on adoption of new age fibers in traditional wear and its overall scope featuring experts from design, retail and supply chain received much appreciation from attendees. Lenzing also displayed their latest range of product innovations which included sarees, dhotis and shirts made from TENCEL™ fibers. The new innovations incorporate the globally sought after attributes of TENCEL™ fibers, like superior softness, comfort, elegant aesthetics and high environmental standards, into the traditional wear outfits.
Prior to hosting the conclave in Salem, Lenzing also hosted a conclave at Solapur in Maharashtra in collaboration with Textile Development Foundation and Rajapalayam in collaboration with the Rajapalayam Spinners Forum. The initiative offered the industry players an opportunity to interact and learn on best practices in sustainable textile solutions through industry leaders as well as international experts like Uster Technologies, textile testing and equipment manufacturing firm as well as textile consultancy SWTS Consultants. The conclave helped develop stronger relationships and expanded network of partners within the region with shared commitment towards adopting sustainable practices across the production chain right to the end customer.
Kering plans to reinvigorate sales at its star label Gucci in China - a key growth driver for leading luxury houses that has been hit by its new COVID lockdowns. As per a Fashion Network report, the brand has appointed former Tiffany executive Laurent Cathala to run Chinese operations for Gucci, which provides more than half the group's total's revenue.
Cathala is expected to bolster local teams, giving them control of marketing and advertising activities, analysts said, an unusual move in an industry where strategy is normally dictated by Europe-based executives in Paris or Milan.
China's sputtering economy has a lot riding on its consumers, who are just now emerging from lockdowns in Shanghai and other big cities. Analysts say government stimulus measures may not be enough to drive a recovery in consumer spending.
Gucci suffered more than rivals like LVMJ -owned Louis Vuitton or Hermes in the first quarter of the year due to the restrictions.
Kering shares have fallen 26 per cent since the beginning of the year compared to a 16 per cent decline for spirits-to-jewellery conglomerate LVMH, which is seen as more resilient to economic downturns as its business is more diversified.
Owner of Japanese clothing brand Uniqlo, Fast Retailing plans to raise prices of some goods this Fall, reflecting increasing cost pressures from the weak yen and logistical hurdles.
The company will increase prices of fleece goods and down jackets in the Fall/Winter product lines by 1,000 yen ($7.54). It will also increase the use of recycled polyester in its fleece products to keep costs down.
Consumer prices are surging in Japan after decades of deflation, driven by the yen's drop to a 20-year low against the dollar and soaring energy costs.
Fast Retailing has competed on low-cost basics like socks and underwear for decades, but its executives have warned recently that rising production costs would necessitate price hikes.
Tadashi Yanai, Founder rallied against the decline in Japan's currency in April, saying there was absolutely no merit in a weak yen.
AATCC has announced the winners of the 2022 AATCC Concept 2 Consumer® Student Merchandising Competition. This is a digital poster competition that will allow students the opportunity to demonstrate their skills in business, marketing, and merchandising.
This year, AATCC received 12 entries, with 34 students participating! This year's theme asked students to merchandise a sustainable travel wear line that incorporated recycled materials, sustainable manufacturing, and antibacterial and/or odor-control properties.
The first price was awarded to Danielle Klinedinst from the University of Delaware. She was awarded US$1000 from AATCC, US$300 from Farhan Patel, and one-year free AATCC Student Membership. Klinedinst is pursuing a degree in Fashion Merchandising and Management.
Samantha Blocher from the Washington State University was awarded with the second prize. She received $750 from AATCC, $200 from Farhan Patel, and one-year free AATCC student membership. She is pursuing graduation with a BA in Apparel Merchandising, Design, and Textiles.
Amber Mills, TemueraQueypo, ShingYo Tsai, and Emma Raz from the Oregon State University bagged the third prize. The group was awarded with $250 from AATCC, $100 from Farhan Patel, and one-year free AATCC student memberships.
Novozymes has launched the first range of biopolishing fibers with Fiberlife® to minimize fuzz and pilling in viscose, modal and lyocell. Biopolishing enables enzymes to remove loose fiber ends, leaving a clean, new-looking surface, which lasts for at least 60 washes. It can also improve print quality in daily wash and wear.
Fiberlife®, gives MMCF fabrics the wash and wear durability that consumers demand, prolonging the time the garments look and feel new. This is a better solution for the fashion and broader textile industry, consumers, and the planet,” says Dina Lipp, Global Marketing Manager at Novozymes.
Novozymes has been working intensively on making MMCF biopolishing possible for viscose, modal and lyocell. It offers consumers longer lasting garments made of fibers from nature, says Pedro E. G. Loureiro, Global Business Development Manager, Novozymes.
Fiberlife® also helps textile producers improve on quality and sustainability while strengthening the connection towards a growing number of eco-conscious consumers.
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