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VF Corporation’s revenue is up five per cent in the third quarter. The company, based in the US, owns the brand: Vans, Timberland and North Face. VF Corp, which spun off its denim business as a separate company named Kontoor Brands in May, is exploring strategic alternatives for its occupational work business. Excluding the performance of the occupational work business, the company’s quarterly revenue increased six per cent. Revenues in VF Corp’s active segment were up eight per cent, led by a 12 per cent increase at the Vans brand, while the company’s outdoor segment posted a three per cent rise, including an eight per cent increase at The North Face.
The group’s international revenues increased eight per cent in the quarter, with China, in particular, posting strong growth of 30 per cent, while Europe saw a four per cent rise. Quarterly direct-to-consumer sales increased seven per cent led by a 16 per cent increase in VF Corp’s digital channel. Net income for the quarter was up slightly from the same period in the previous year, while diluted earnings per share increased 11 per cent. Year to date, VF’s net income for the period was up three per cent while diluted earnings per share also rose three per cent.
The four per cent incentive given under the Merchandise Export Incentive Scheme on made-ups and garments has been withdrawn. This has put India’s textile industry in a fix. Exporters of cotton made-ups are already facing a tough situation financially due to the non-implementation of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme. Nine months after it was first announced, the scheme to refund taxes and boost exports of made-ups and garments is yet to be operational. Exporters are already facing serious working capital problems affecting their day-to-day operations.
While negotiating with importers, Indian textile companies have factored in the four per cent MEIS incentive and RoSCTL scheme which together account for 8.2 per cent of export prices. Export orders have to be executed in the next nine months. With the removal of MEIS benefits, exports at the prices agreed upon will become uneconomical and exporters have to bear huge losses and start defaulting on their bank loans. Many exporters have also paid advance tax on their receivables, which has further aggravated the problem.
Indian exporters are already working against tough competition from Bangladesh, Sri Lanka, Vietnam and Pakistan. High import duties have been levied by the US, EU and China on shipments from India.
Impressions Expo was held in the US from January 17 to 19, 2020. Impressions holds an unique place on the fashion trade show calendar. This is where representatives of brands and apparel companies go to see what is new in the basics market and check out the latest in machines that print graphic images on tees. This is an event where companies exhibit their new approaches to the production of T-shirts and other basics. Everything from blank apparel and textiles to digital printers, embroidery machines, screen printers and screen printing supplies were on display. About 15,000 people attended the show, which included 11,000 qualified buyers who were confirmed as representing companies with proven track records in producing and distributing T-shirts. For the first time in its history, the trade show also produced a giant party.
Impressions unveiled a rebranding effort at the show. The new name comes from the trade show’s magazine, which is also called Impressions. The show has aligned with its publication to create a single platform to serve its communities as opposed to presenting an array of individual shows, magazines and digital offerings. It was all about celebrating the industry and the impact these businesses have on millions of people’s lives every day.
Over a four month period, Asos’ revenue was up 20 per cent. Total orders were up 20 per cent supported by robust operational performance at all its distribution centers. The period also saw strong customer momentum with visits up 23 per cent year on year and an increase in active customers during the four months. Operations both in its domestic UK market and abroad rose in healthy double-digits. It was an improvement on the firm’s latest full year when group revenues rose only 12 per cent. But after a few stumbles in recent periods, the company’s focus through the four months was on restoring consistent operational execution and rebuilding customer momentum. And it seems to have achieved this aim. Its UK retail sales rose 18 per cent while EU retail sales were up 21 per cent. In the US, the company managed a 23 per cent increase and in the rest of the world, retail sales rose 23 per cent. That all added up to a 22 per cent increase in overall international retail sales. But the gross margin dropped 170 basis points reflecting US duty and investment in customer acquisition as planned.
The four months saw improvements in product choice and stock availability, presentation and social media engagement and optimising customer acquisition and reactivation.
Influenced by current global political turmoil, climate crisis, trade tensions and a general instability, in the 2020-21 seasons, the global textile market will henceforth focus on home and apparel textiles. Designers are redefining materials and their applications in the modern designs. They are using materials as resources for example, Netherland-based Eric Klarenbeek and Maartje Drs are converting algae into bioplastic for 3D printing.
Digital clothing is helping companies test the market before buying their fabrics. These companies are creating digital avatars to help consumers discover new brands and purchase modes. Consumers are shopping through games, social media and on influencer-curated sites and pages.
Serving consumers’ emotional needs
Looking at their garments in a different way, manufacturers are focusing on imperfections, redefining their consumer’s behavior towards fashion. Consumers are carving out
spaces and practices that inspire wellness. They are buying products that serve their emotional needs. As festival culture has gained attention, restaurants are creating immersive experiences that are offering diners an escape from everything else around them. For instance, B&Binge has tapped into binge-watchers’ desire to dive into the programs they’re watching by recreating sets that, in effect, allow viewers to watch their favorite shows from ‘inside’ their favorite shows.
Climate-oriented initiatives to reduce carbon footprint
In a similar vein, consumers are making concerted efforts to lessen their carbon footprints. To cater to this, brands are offering climate-oriented initiatives. Finland-based Arctic Blue Resort, offers an discount in bill for guests who are going green, like watching their water consumption, food choices or use of electricity.
Answering consumers’ need for emotional satisfaction, the craft movement focuses on creativity and adding beauty back into the world. It is influencing home textile trends like Maximum Glam, which draws on collaged textiles, juxtaposed patterns, beading and embroidering to create a modern ‘more is more’ look. Henceforth, handwritten patterns, lines that aren’t completely solid, colors that come together, and textiles applied on top of one another, will be a key look.
Understanding a brand’s heritage
Consumers are drawing on their homes as a cocoon of comfort, and heritage as a reflection of better days. They now wish to understand the history and ethos behind the company and product. Therefore, brands are engaging in storytelling by using textiles made with homemade elements, channel heritage paintings and patterns, like vintage florals, and call on Roman antique styling or floor and wall coverings from ancient structures.
Latest edition of the Brand Finance report indicates, Nike, Gucci, and Adidas have improved their positions on the Brand Finance Global 500 2020 rankings. Nike climbed up to the fortieth position. It is the first fashion company on the list, with a brand value of 35 billion dollars. Gucci rose to position 99 with a brand value of 17.6 billion dollars. Adidas remained third in the apparel sector despite dropping 5 places down, it now positions as 104 in the ranking.
Among other brands featuring on the list H&M declined by 25 places to the 135th position while Burberry climbed 12 positions to the 421st position. Uniqlo improved its ranking by climbing up 5 positions now ranks as 143. On a global scale, Amazon became the first brand to exceed $200 billion and for the third consecutive year retained the title of the most valuable brand in the world. The high-tech Google and Apple completed the podium by being ranked on the second and third position.
For the 2019 fiscal year, Primark’s revenues were up 11.7 per cent. Operating profit was up eight per cent. Like for like sales were down two per cent on a global scale. The low-cost retailer has 138 stores in Europe in eight countries excluding the ones in the UK and the Republic of Ireland, who together alone account for 226 stores. Primark has highlighted its strong trading in the UK, Spain, France, Italy and the US.
Out of Primark’s overall 373 stores, nine are in the US. Four more are planned for the near future. Primark first entered the US in 2015, introducing its products to a myriad Americans, thirsty for its everyday low price model, a system different from the majority of other US retailers who operate with extensive discounting, promotions and coupons. The Irish retailer continues to pursue the American dream at a slow pace. The US market is the biggest market in terms of fashion sales and one of the most complex alongside the high competition.
The evolution of Primark can be debatable in terms of its stagnation and slow growth for a company that only operates with physical stores amid an era driven by digitalization and e-commerce.
Yarn Expo will be held in China, March 11 to 13, 2020. This creates a collaborative global networking place to share ideas, experience, expertise and resources. A diverse range of unique functional yarns will be exhibited to meet the specific sourcing needs of buyers. Among the comprehensive range of products on offer at Yarn Expo Spring, functional yarns represent a direct and constant market demand in spite of changing fashion trends.
With the advancement of technology, functional yarns have been developed and used in textile production to enhance the functionality and performance of sportswear, outdoor wear and even everyday clothing. From thermo regulating, moisture absorbing and flame resistant properties to antibacterial, antistatic and more, these innovative features offered by functional yarns add value to textile products. By integrating functionality directly into the yarns, textile products become highly durable, which increases their sustainability as well.
Yarn Expo saw over 28,000 buyers from 87 countries and regions last spring. This year, there will be new exhibitors from Belarus who are attracted to join for the first time to showcase their quality acrylic fibers, nylon yarns, polyester fibers, industrial yarns and more. The fair will have visitors from Turkey, India, Belgium and other European countries.
Uzbekistan will gradually reduce state’s role in cotton trading, opening up opportunities for private companies in Central Asia’s most populous nation and one of the world’s top cotton producers. The government has traditionally bought all cotton and wheat from farmers, directing them how much to grow every season and taking care of exports.
But the practice needed to be phased out in order to encourage private investment, a major policy shift for the nation of 33 million. Uzbekistan is the world’s 10th-largest cotton exporter. However, the former Soviet republic plans to gradually cease raw cotton exports in favor of domestic textile production.
Held from January 15-16, 2019, The London Textile Fair recorded 470 exhibitors from the United Kingdom, Japan and the rest of Europe. The London-based textile trade show, held in the Business Design Center compound in Islington welcomed 4,500 visitors. Sustainability was one of the central points of the fair which dedicated a special space to sustainable fashion companies and a series of talks and meetings to discuss this issue.
TLTF provides manufacturers and their agents the opportunity to showcase their products to the most influential British buyers and designers. The show is one of the top industry events within the UK with an increasing international appeal. It attracts designers, buyers and product developers who come not only to maintain existing relationships but work also to source and develop new and exciting products. The trade show, which first took place in 2008, will hold its next edition on July 14-15, 2020.
