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Minnesota-based textile distributor Global Impex USA believes the world may face a severe cotton shortage due to India’s COVID-19 crisis. As per a Knitting Industry report, the sudden surge of new variant has heavily affected India’s fabric manufacturing. It has impacted India’s entire domestic supply chain and increased cotton prices to their highest in seven years, says, Sarvesh Jain, Representative, Mamta Global Trading.
Mike Sanders, National Marketing Manager, Akron, however adds, shortage may happen if countries go into complete lockdown. High fuel prices in India and lack of migrant workers is also leading to a rise in Indian cotton prices and may lead to a shortage in future, adds Jain.
Global Impex USA, has partnered with Umed Group, a global fabric manufacturer based in India that had to delay fabric shipments and manufacturing due to the spread of the new COVID-19 variant.
Global specialty materials provider Eastman will increase Naia Filament Yarn production capacity at its Barcelona site by 50 per cent by 2022 end. Through this expansion, the company aims to make sustainable fashion accessible to all and support new brand adoptions of Naia™ in women’s wear fashion, where there is a growing demand for sustainable fibers.
Eastman is a global specialty chemical company that produces a broad range of advanced materials, additives and functional products, specialty chemicals, and fibers that are found in products people use every day. As a world leader in the diverse markets it serves, Eastman is focused on delivering innovative and technology-based solutions while maintaining its commitment to safety and sustainability. The company recently launched Fluid Genius™, a revolutionary new patent-pending product that equips engineers and operations managers with predictive insights to optimize heat transfer fluid performance.
The Cambodian subsidiary of China-based Ruixue Group, Ruixue (Cambodia) plans to set up a new garment factory in the administrative district of Phnom Penh in Cambodia. To be set up at a cost of $4.5 million, the factory will create 2,000 jobs in manufacturing women’s wear, including sweaters, dresses and handbags. The project has been approved by the Council for Development of Cambodia (CDC) chaired by Prime Minister Hun Sen.
The European Union is the largest market accounting for approximately 40 per cent of Cambodian garment exports, followed by the US, Canada and Japan. The largely export-oriented garment sector of Cambodia is the largest employer in the country, with women making up a substantial portion of the workforce.
Cotton Association of India (CAI) has revised Indian Cotton export estimates for the 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month and 54 lakh bales projected a few months ago. Cotton futures traded firm at Rs 22,300 per bale on May 24. Futures delivery for May on the MCX index increased by 0.86 per cent to Rs 22,290 per bale while it increased by 0.85 per cent to Rs 190 in June. The value of May and June’s contracts traded so far is Rs 75.87 crore and Rs 81.44 crore, respectively.
According to Mohit Vyas, Analyst, Kotak Securities, higher stock revision by CAI, hit on-demand amid COVID blues and recent sell-off in ICE Cotton futures are likely to keep domestic cotton prices range-bound with negative bias in coming sessions. The forecast of the timely onset of monsoon in the country by IMD and Skymet this season is also likely to weigh on natural fiber prices in coming sessions.
Kontoor Brands plans to expand operations by increasing investments in Wrangler and Lee, focusing on the China market and growing digital business. As per a Women’s Wear Daily report, the company has made certain critical investments in Europe and Asia. It launched the Wrangler brand in China in December last year. The company also aims to strengthen its Lee brand in the country besides expanding its digital offerings. Another plan includes growing its digital business from 5 per cent of revenues in 2020 to 10 per cent by 2023.
The company also plans to expand category offerings in outdoor and fishing apparel, graphic T-shirts, women’s apparel and hybrid work and casualwear which is likely to be a feature of customers’ eventual post-COVID-19 wardrobe. An American clothing company, Kontoor Brands was a spin off from the V F Corporation in May 2019. The company sells denim under the Lee, Wrangler and Rock & Republic brand names. It also operates the VF Outlet chain of factory outlet stores.
Los Angeles-based label manufacturer Hi-Tech Printing & Labeling says fashion designers should include information about the causes they support on their clothing tags and labels. The company states, this will ensure consumers are reminded of the brand and the organizations or messages they support throughout the shopping process and each time they wear the item, further increasing the likelihood that they’ll return for future purchases.
Hi-Tech Printing & Labeling believes, in order to maintain the tags and labels’ durability for a longer period, they need to remain intact and legible through multiple cycles in a washing machine and dryer.
Retailers and designers also need to consider different types of tags and labels for individual pieces to ensure maximum comfort, says the Southern California manufacturer. While stronger woven labels pair well with looser-fitting outerwear, items that are more likely to come into direct contact with the skin, such as t-shirts, should have labels that are soft and comfortable to wear, like cotton tags, it adds.
Subsidiary of Indorama Ventures (IVL), Indorama Synthetics (India) plans to upgrade its equipment and expand manufacturing capacity at Nagpur with an investment of Rs 6 billion. As per reports, IVL operates all three of its business segments – Combined PET, Fibers, and IOD – in India.
IVL’s expansion plan include setting up a new PET resin manufacturing facility, adding more balancing equipment, and specialty yarns to its portfolio. The company plans to add 700 tons of capacity at its PET resin facility in Nagpur which will be operational by the second quarter of 2022. The facility will help strengthen IVL’s position as India’s largest resin producer, with a total capacity of over 1 million tons annually.
The plant at Nagpur, which IVL has managed since 2019, is also the company’s first fibre manufacturing site in India, offering a wide range of staple fibres and filament yarns. Under the investment plan, it will meet global brands’ increasing demand for more high-quality and sustainable textile products.
The Apparel Export Promotion Council (AEPC) has urged the government to exempt apparel exporting units from lockdowns and declare apparel exports as essential services. A Sakthivel, Chairman, AEPC said most apparel exports are season and fashion sensitive, and their salvage value becomes zero if the production and shipment are not done in time
Many neighboring and competing countries have already accorded apparel exports the status of essential services, he added. Exports units are unable to execute orders due to lockdowns resulting in loss of export earnings and buyers. Sakthivel also urged buying houses and agents to convince international clients that the situation in India is getting better by the day. Buyers should be urged not to cancel orders as India is likely to bounce back by mid-June, Sakthivel added.
Initially admired for its prompt response to the first COVID-19, Sri Lanka however, failed to protect citizens from the second wave. Particularly vulnerable were its garment workers in free trade zones like Katunayake.
As per Ground views report, the spread of COVID-19 in Sri Lanka is not restricted to pockets or clusters. It has spread to most densely populated areas in the country. Most garment workers in the country have tested positive for COVID-19, shows data from the Epidemiological Unit of the Ministry of Health.
Failure to prioritize health infrastructure
Joint Apparel Association Forum (JAAF) holds, several factors responsible for this. The Sri Lankan government and its COVID-19 Task Force Team have
failed to adopt a sustainable strategy and prioritize public health infrastructure during this global public health crisis. Global shortage of vaccines has further added to industry’s woes, says, Jeremy Harrar, Director, Wellcome Trust. The government needs to focus on protecting garment workers, adds Prasad Welikumbara, Political Critic and Social Media Activist.
Most workers reside in unregulated boarding houses located in densely populated neighborhoods adjacent to FTZs. Infected workers are being quarantined in their homes which they often share with two or five people. Many of these houses do not have separate kitchen, toilet and bathing facilities, the primary requirements for people in quarantine.
No support to garment workers
The government has also failed to support garment workers. Most workers are paid far below the prescribed minimum wages leading to them feigning good health and underreporting mild symptoms. Erratic availability of COVID-19 vaccines is also prompting them to skip vaccination and report to work instead.
Only a few factories like the Maliban Textiles washing plant and factories from the Katunayaka FTZ are ensuring all workers get vaccinated. A reason for this vaccination is the lack of cooperation between the government, COVID-19 Task Force and JAAF. Though in February this year, JAAF requested the Ceylon Chamber of Commerce to jointly fund the vaccination of 500,000 garment workers, there has been no response from the government so far.
Sri Lanka allows free trade zones and significant export sectors such as apparels to function even during curfews and lockdown periods. However, lack of proper vaccination puts the entire sector at risks besides threatening to derail the national economy. The sector needs to pressure the government to ensure ethical and equitable distribution of vaccines. It also needs to vaccinate working classes ensure protection of all workers.
Emboldened by the company’s top-line growth in recent quarters, and optimistic about a demand for a more casual wardrobe, Kontoor Brands plans to invest in its Wrangler and Lee offerings, expand in China, and grow its digital revenues.
As per Women’s Wear Daily, the company has ramped up investments in China even though most of its business is based in the US. It is also gearing up to expand its overall digital offerings, a strategy increasingly embraced by retailers during the super-charged online shopping era of the ongoing COVID-19 pandemic. Since the spin-off, the company’s digital wholesale business has grown through tie ups with retailers including Amazon, walmart.com, and Kohl’s. In China, the company also relaunched Lee’s X-line, its digital only collection.
Kontoor plans to grow its digital business from 5 percent of revenues in 2020 to 10 percent by 2023. It also plans to expand its category offerings in areas including outdoor and fishing apparel, graphic T-shirts, women’s apparel and hybrid work and casualwear for what it hopes will be a feature of customers’ eventual post-COVID-19 wardrobe.
