FW
Led by a recovery in demand in Western economies, Bangladesh’s garment exports surged by 15 per cent to $38.76 billion in the financial year ended June. The country’s garment exports rose 13 per cent to $31.5 billion in 2020-21 from a year earlier, thanks to a 21 per cent surge in overseas sales of knitwear products such as T-shirts and sweaters. However, exports remained 7 per cent below the pre-pandemic period of 2018-19 financial year, as per the Export Promotion Bureau.
Sales of woven garments, such as formal denim shirts and pants, rose by 3 per cent owing to tepid demand caused by more people working from home and avoiding social gatherings. Led by more orders from the US and Europe, Bangladesh’s garment exports grew at a record pace of 31 per cent in June to $3.58 billion. Garment industry leaders say they expect exports to increase but are concerned about rising freight and raw material costs. These could hamper the country’s apparel exports, says Shahidullah Azim, Vice President, Bangladesh Garments Exporters and Manufacturers Association (BGMEA).
Bangladesh is currently battling a record spike in COVID-19 cases, prompting the government to extend its strictest lockdown to July 14. Garment factories, however, are allowed to operate observing health protocols.
Textile brand Covolan has launched a new denim collection in partnership with Lycra. The collection is made from Lycra’s EcoMade thread and includes four products: Ancona, Bergamo, Genova, and Rutilo. These are denim fabrics with different dyes, all BCI (Better Cotton Initiative) certified and with Lycra’s sustainable thread. Covolan aims to make its entire product line with the EcoMade thread.
EcoMade thread is produced with 20 per cent pre-consumer recycled material and is GRS (Global Recycled Standard) certified. It was developed in a sustainable way through processes that reduce the use of resources, with better environmental performance and minimizing waste. The thread is ideal for denim, providing a better fit, comfort, and freedom of movement.
Brazilian textile company Covolan produces denim and twill and is a participant in Texbrasil (Brazilian Textile and Fashion Industry Internationalization Program) – the result of a partnership between Abit (The Brazilian Textile and Apparel Industry Association) and Apex-Brasil (Brazilian Trade and Investment Promotion Agency).
More than 170 sustainable brands plan to participate in the summer edition of Innatex. As per Textile Network, the exhibition will be held from July 31 to August 2, 2021 at the Messecenter Rhein-Main exhibition centre in Hofheim-Wallau. Alexander Hitzel, Project Manager, Muveo GmbH, the organizer of Innatex, believes the community needs a trading platform that enables them to meet business partners personally. Participants have also urged the organizer to remain committed to original dates rather than postponing the event until early autumn.
The pioneering trade fair for the green fashion industry plans to introduce many new concepts including a new store concept under the patronage of the IVN, International Association of Natural Textile Industry, and a special space celebrating African labels, created in collaboration with GIZ, the German Society for International Cooperation. It will also adapt to the latest regulations and approved by the health authorities.
Victoria’s Secret’s delay in embracing inclusivity and body positivity has proved to be a boon for other brands who have slowly made way to the top slot in the global lingerie market. In the past 10 years, Victoria’s Secret’s share in the global intimates market has halved from 30 per cent to 15 per cent, says Austin Moldow, Analyst, Canaccord. On the other hand, shares of its parent company L Brands have doubled and S&P has increased by 14.3 per cent for the year.
To regain lost market share, Victoria’s Secret has decided to break its association with Bath & Body Works and operate as a standalone brand. However, the journey ahead is quite challenging as other companies have already made their mark in the plus-size apparel market. Market intelligence platform Edited advises Victoria’s Secret to adopt body inclusivity to catch up on the race.
Plus size to reach $697 million by 2027
Analyst predict, fuelled by Gen Z companies and retailers seeking to embrace size-diverse fashion, the global plus-size apparel market is predicted to grow to $697 billion by 2027. With its separation from L Brands Inc, Victoria’s Secret will not only get new brand but its name too will be changed to Victoria’s Secret & Co. The company will also reorganize its panel to include soccer star Megan Rapinoe, author/actress/producer Priyanka Chopra Jonas, model and body-positive advocate Paloma Elsesser, and journalist and equality advocate Amanda de Cadenet.
A stronger competitor to Victoria’s Secret in the intimates market will be American Eagle Outfitters brand Aerie. The brand aims to reach $2 billion value in the next few years by focusing on leggings, swimwear, and other categories sold by Victoria’s Secret. A growing demand for its products is driving higher sales, margins and profitability for the parent company, says Michael Mathias, Chief Financial Officer, American Eagle.
Another brand on the rise is Gap Inc.’s brand Athleta. The brand expanded its sizes from 18 to 26 earlier this year and aims to include these sizes in 70 per cent of its collection by Spring.
As per the Edited report, though the plus-size market in the US is growing rapidly, it still faces certain challenges. Firstly, shoppers feel intimidated and alienated by ‘plus-size’ tag. Plus-sized items are also more expensive and often left out of trends. Brands and retailers need to address these issues to expand reach to these plus-size shoppers.
Nearly 25 per cent respondents to the NPD Group’s March 2021 Trend Tracker survey believe, brands and companies need to include diversification and inclusivity in their marketing and advertising initiatives. Around 20 per cent also believe inclusive and diverse representation is important among company leadership.
To be truly inclusive, brands need to adopt a common style trends across sizes, says the Edited report. Their unwillingness to adopt inclusivity and diversity may distort their image in the consumers’ mind besides threatening future profits.
The current global economic scenario has compelled China to halt expansion plans. However, in the next five years, China plans to make its textile and clothing industry more sophisticated and technology-driven, reveals the 14th Five Year Plan released by the China National Textile and Apparel Council (CNTAC). In a Fash455 report, Sheng Lu, Associate Professor, Department of Fashion and Apparel Studies, University of Delware writes, China plans to step up investment in domestic textile and apparel market in the next five years. The country aims to increase its annual clothing retail sales to over $415 billion by 2025.
Creating more textile unicorns
China also plans to increase its textile fiber manufacturing output to 50 per cent of the global output by 2025. In 2020, China’s
textile fiber output accounted for 50 per cent of the world’s total output at 58 million ton. China aims to maintain this growth rate and prioritize textile manufacturing over apparel manufacturing.
China also plans to support the development of more companies with annual sales revenue of over RMB 10 million by 2025. In its previous Five Year Plan, China had looked to develop 50 such companies. However, the pandemic clipped its plans, and the country now aims to develop only 40 such companies. However, for this to materialize, China needs strong policy support and sufficient time period.
Focusing on value-addition and sustainability
China has set its sight on industrial upgradation by increasing R&D investments. The country plans to improve the quality and sophistication of its products by engaging in more value-added functions in the supply chain. Another goal is to make textile and apparel industry ‘greener’ and more sustainable. In the next five years, China aims to reduce its energy consumption per unit of industrial value-added to 13.5 per cent and carbon emissions to 18 per cent. It aims to increase manufacturing of recycled fibers to 15 per cent of its total fiber output to build a circular economy and contribute to China’s climate change policy.
Eyeing more FDI and improved labor skills
China will also leverage the Belt and Road Initiative and other outbound FDI projects over the next five years. From 2015-20, the country’s FDI investments in the textile and apparel sector exceeded $6.7 billion. As per CNTAC, 26.6 per cent of this investment was made in neighboring South East Asian countries including Vietnam, Cambodia, Thailand, Lao, and Myanmar. The country also plans to increase its labor productivity by stepping up investments in skill development initiatives for laborers.
Bangladesh’s apparel exports to the United States registered double-digit growth both in value and volume terms in the first five months of this year compared to the same period of last year. As per OTEXA reports, the country’s RMG exports to the US grew 15.38 per cent to $2.58 billion during the period from January to May this year. Growth was mainly a result of economic recovery aided by good coverage of COVID-19 vaccination, better control of infections and a shift of orders from China.
From January to May 2021, Bangladesh’s apparel shipment to the US grew 27.30 per cent to 1.02 billion sq. mt. from 807.67 million sq. mt. US’ overall apparel imports during the first five months of this year grew by 22.19 per cent to $29.21 billion from $23.91 billion during the same period in 2020. Imports from China grew 26.17 per cent growth to $ 5.82 billion while imports from Vietnam and Cambodia grew by19.48 per cent and 15.35 per cent to $5.74 billion and $ 1.24 billion respectively year-on-year during the period.
Apparel imports from other major sourcing destinations including India, Mexico, and Pakistan also grew by over 21 per cent to 58 per cent except Indonesia that was maintaining a negative growth of 1.75 per cent.
The 20th International Exhibition on Textile Industry (ShanghaiTex 2021) will be held from November 23-26, 2021 at the New International Expo Centre in Shanghai. As per Textile World, the event will gather a number of global leading textile and fashion suppliers to showcase a range of intelligent textile technology, innovative health and green technology, inspiring the future for the textile and fashion industry.
ShanghaiTex 2021 and its strategic partner Textech Galaxy have collaborated to tap new business opportunities in the post-COVID era. The two companies will focus on three major industry highlights – healthcare, green and recycle, and artificial intelligence. A raft of exhibitions and concurrent events will be organized for promoting high-growth sectors and creating a dynamic platform for the industry.
ShanghaiTex 2021 will also organize Textech Designer Match and WTTDC 2021 for designers, brands and manufacturers all over the worlds to exchange ideas on design, raising the innovative values of the global textile industry.
Furthermore, it will hold the 3rd Artificial Intelligence on Fashion & Textile International Conference (AIFT 2021) from November, 24-25 November 2021 at the Shanghai (Pudong) New International Expo Centre.
The Indian government has extended the rebate of taxes and levies on apparel exports till March 2024. These rebates will include exports of garments and madeups and will be at the same rate as notified by the Textiles Ministry in March. They will boost investments in the domestic textile firms.
RoSCTL will continue with the same rates as notified by the ministry of textiles vide Notification dated March 8, 2019; w.e.f January 1, 2021 on exports of apparel/garments (Chapters-61 & 62) and made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters.
The other textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, if any, under RoDTEP along with other products as finalised by department of commerce from the dates which shall be notified in this regard.
After months of lockdowns, RadiciGroup Advanced Textile Solutions will once again showcase its products at Milano Unica on July 06 and 07 at the Fiera Milano Rho exhibitions district.
As per Textile Focus, the Group will focus on fashion textiles–one of the sectors hit the hardest by the pandemic–and to exhibit its portfolio of low environmental impact yarn. The RadiciGroup stand is located in the Innovation Area of TexClubTec, the technical and performance textiles section of Sistema Moda Italia. It showcases all the Group’s most innovative and sustainable yarn solutions for the textiles world: from Renycle®, yarn made from recycled nylon 6, to Repetable®, polyester yarn originating from the recovery of PET bottles, and the Biofeel® range, including all the products from renewable sources (PET, PA and PLA).
At the Bio Materials Forum in the Innovation Area, RadiciGroup will dress a female manikin in garments made using yarn from the Biofeel PET range.
Additionally, RadiciGroup is taking part in Milano Unica’s Tendenze and Sustainability Forum in the Sustainable Creative Samples section, where it is presenting 7 fabrics created with its innovative green yarn.
As per Export Promotion Bureau, for the Fiscal Year 2021-22, the Bangladesh government plans to target export revenues of $34.14 billion from its apparel sector.
Of the total exports target, $18.51 billion would come from knitwear products and $15.62 billion woven products.
With an 8.54 percent growth target, the Bureau stated Bangladesh would be able to earn $34.14 billion in exports in the fiscal year 2021-22.
The growth target for the knitwear products is set at 10.45 per cent and 8.51 per cent for woven products. In the fiscal year 2020-21, Bangladesh earned $31.45 billion exporting apparel goods. The government also aims to target to $1.37 million revenues from export of home textiles.
