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‘Covid 19’ has brought disruption and distress for the general life, industry and economy, especially for the textile and textile engineering industry all over the world.
Under the circumstances, India ITME Society has postponed India ITME 2020 by one year to December 2021. The event will now be held from December 08-13, 2021 in Greater Noida.
The revised exhibitor manual and schedules shall be available at our website(https://itme2021.indiaitme.com) shortly. All participation guidelines remain same and the payments shall be adjusted against revised exhibition dates.
As the pandemic tightens its grip on high streets, dozens of distressed retailers are seeking buyers to save themselves. Prominent amongst these are” TM Lewin and footwear chain Office and Monsoon/Accessorize, reveals Drapers. Retailers like Cath Kidston, and Oasis and Warehouse Group had also appointed advisers to initiate sale before both businesses collapsed earlier this month.
In future, many more retailers are likely to put their businesses up for sale as the pandemic is pushing them to the brink. Left with little cash, these retailers are being left with no choice but to pursue a potential sale.
Dwindling businesses fuelling sales
One major reason retailers are selling is due to the dwindling value of their businesses. As Matt Truman, Co-founder of retail and consumer innovation investment firm True reveals the pandemic has lowered the value of these businesses to a fraction of what it was five weeks ago. There are two types of businesses that are selling, those who were struggling anyway, and those that probably do not deserve to go under but will be in trouble because of prevailing conditions.
Hesitation amongst buyers
An important challenge that arises before these sellers is of finding appropriate buyers. Some players previously known for hovering on high streets,
chiefly Sports Direct’s Mike Ashley, and Edinburgh Woollen Mill’s Philip Day, could have had their appetites for acquisition dulled. Others, that that already have in-store partnerships with third-party fashion brands, might look at the market.
Even acquisitions agreed before the outbreak and subsequent lockdown are not being considered safe to be executed. For example, Moss Bros’ suitor Brigadier Acquisition Company, owner of Crew Clothing, is trying to retract its £22.6milion deal to buy the tailoring chain, a mere month after originally making the offer in early March.
Stability and innovation to succeed
A consultant at a large investment firm with stakes in high street retailers further warns many more retailers are likely to abandon their acquisition plans a result of the pandemic. However, players who specialize in supporting businesses with some kind of problem will still look.
Truman opines two types of retail businesses will emerge winners from the pandemic: those who provide staple products and those who are focused on innovative proposition – which includes product.
Growth potential and control to drive sales
David Kaplan, Partner and solicitor at law firm Nelsons, agrees retail businesses with large store estates are unlikely to appeal to buyers who will now look for growth potential and control over overheads. He believes, one option that could emerge is buyers cherry picking what they want from distressed retailers – such as just the brand name and key stores – rather than the entire bricks-and-mortar estate.
Retail and acquisitions expert Paul Cuatracasas, founder of investment banking firm Aquaa Partners views retailers who have failed to adapt to changing times will struggle. They would have little choice but to put the business up for sale and see what they can get for it.
Agrees Moss Bros suitor Brigadier Acquisition Company, the owner of Crew Clothing, who is trying to retract its £22.6million deal to buy the tailoring chain According to him, strong ecommerce retailers might see it as a good time to acquire businesses with a physical presence relatively cheaply and explore bricks-and-mortar. Buyers might also be interested if the business up for sale has retained some brand name value and still means something to consumers.
Though far from ideal, the coronavirus pandemic has left retailers with no choice than to conduct a sale and find an appropriate buyer.
As per Business of Fashion, the biggest names in French fashion have come together to help provide relief in response to the coronavirus pandemic. These brands have started a one-off auction, called La Mode S’Engage, to raise money for the non-profit organization #ProtegeTonSoignant, which sources and distributes essential supplies and personal protective equipment to healthcare workers on the frontlines in France.
The organization was created by Ami’s chief executive Nicolas Santi-Weil and Sarah Adelman, former founder of the infamous Colette boutique. Together, the duo has secured some of the country’s most influential fashion houses. Auction entrants will include: Louis Vuitton, Chanel, Dior, Celine, Balenciaga and Comme des Garçons, among others. Each house has been tasked with either customizing an object from their existing archives or creating something entirely new and unique—but each piece must somehow include the foundation’s electric blue colorway.
Designers who are currently practising social distancing without access to studio space will be able to submit sketches and offer made-to-order services to potential bidders.
La Mode S’Engage auction will go live from May 1 and will run through Monday, May 4. Bidding starts at €100 but Santi-Weil and Adelman hope these offerings will fetch in the millions—#ProtegeTonSoignant currently has over 167 requests for medical supplies, which is worth about €20 million.
Iconix Brands Group Inc has entered into an agreement to sell all its equity interests in Umbro China to HK Qiaodan Investment. The deal earned the New York-based brand management company $62.5 million and includes the sale of the Umbro sports brand in the People’s Republic of China, Hong Kong, Taiwan and Macau.
The Umbro China sale is anticipated to close on or prior to September 15, 2020. The company, which owns brands like Joe Boxer, Danskin and Lee Cooper, anticipates using the net proceeds from the sale to repay amounts due under its existing financing arrangements and otherwise for general corporate purposes.
Last month, the company announced a net loss of $95.0 million in the fourth quarter. In the full fiscal year 2019, Iconix’s revenues totaled $149.0 million, a 21 percent decrease from $187.7 million in the previous year. Annual net loss was $111.5 million, or $10.56 per diluted share, compared to a loss of $100.5 million, or $14.93 per diluted share, in fiscal 2018. Due to uncertainty caused by the ongoing Covid-19 pandemic, Iconix has not yet provided financial guidance for fiscal 2020.
Organic Trade Association recently organized an online discussion on ‘GOTS Version 6.0 & the U.S. Market’. An overview of GOTS including updates on the changes in Version 6.0, organic labeling of fiber and textiles in the US, and a review of the current market of GOTS in the United States was presented in the webinar.
GOTS Version 6.0 was released on March 19, 2020, three years after the launching of the 5.0 version and 15 years after the launching of the 1st edition. Under the latest version of the Global Organic Textile Standard (GOTS), certified users will have to maintain ethical business behavior, honesty, prevention of corruption.
The GOTS certification helps the UN ensure compliance with each of the 17 Sustainable Development Goals. More than three million workers working in GOTS-certified facilities were reported in 2019 by 17 recognised independent certification firms.
AEPC has sought a two-year extension of the interest equalisation scheme that expired last month and enhancement of the rate of subsidy on the interest rate to 5 per cent from the existing 3 per cent. As per AEPC estimates, the disruptions in orders and payments brought about by the spread of the COVID-19 pandemic globally could lead to a loss of $ 4 billion for garment exporters.
The interest equalisation scheme announced for five years in 2015, offered a 3 per cent subsidy on pre and post-shipment export credit to exporters of 416 items and the MSME sector. The subsidy rate was enhanced to 5 per cent for the MSME sector in 2018.
AEPC sought early action on the extension of the scheme as in the absence of any announcement on the matte, banks had started debiting the accounts of the exporters. According to the council, at a time when garment exporters are struggling to stay afloat in a shrinking global market, uncertainty surrounding the fate of the popular scheme was adding to the exporters’ woes.
The third annual BrandZ™ Top 75 Most Valuable Global Retail Brands Ranking, unveiled recently by WPP and Kantar, reveals the value of the world's top 75 retail brands have grown 12 per cent to $1.5 trillion in the past year. The report was launched in conjunction with the World Retail Congress.
The top 10 brands in the ranking outpaced the rest of the sector, posting an average rise in brand value of 16.4 per cent. Amazon's growth sees it account for 27 per cent of the Top 75's total brand value while robust performances by other Top 10 brands such as Alibaba show that strong brands can do more than get by; they can redefine what is possible.
Louis Vuitton emerged as the most valuable Luxury brand, with a new global flagship store in Seoul and creative partnerships with major artists while Nike led the apparel category with e-commerce, product customization and collaborations driving strong sales.
Three Japanese brands make their debut in this year's ranking; online fashion store Zozotown, retail network Aeon and convenience story company Family Mart. China's ecommerce platform Pinduoduo was the highest new entry, following the success of its online group-buying model; Bunnings hardware chain from Australia was the fourth new entry.
A report ‘Weaving a Better Future: Rebuilding a More Sustainable Fashion Industry After COVID-19’, states sustainability in fashion is at risk in a post-COVID-19 crisis world. The report offers four actions that must be taken to avoid backsliding on progress and to actively prepare for a changing industry: These actions include protecting critical assets to survive the economic crisis; solve immediate inventory challenges in partnership with suppliers; integrating sustainability and accelerating transparency while increasing sustainability ambitions
The report notes unprecedented challenges that have arisen from the crisis, including fashion and luxury together are the most negatively impacted of all consumer goods and services, after travel and tourism. From March to April, sales decreased by 60 to 70 per cent in the worldwide fashion and luxury industry – with foot traffic in retail and recreation stores down by 44 per cent in the US, 52 per cent in Germany, 78 per cent in India and 59 per cent in Brazil, says the report jointly released by the Boston Consulting Group (BCG), the Sustainable Apparel Coalition (SAC) and technology company Higg Co
The Cotton Corporation of India (CCI) has bought about 41 per cent of the total cotton produced in south Malwa districts after it resumed operations two weeks ago.
According to official data, about 44,000 quintal cotton has been procured from Fazilka and 41,000 quintal from Mansa district since April 14. The central agency is estimated to have bought cotton worth Rs 54 crore after it resumed procurement on April 14. Cotton purchase was suspended after curfew was imposed in Punjab on March 23 due to Covid-19 outbreak.
The CCI started procurement in October last year after private players were paying farmers less than the MSP. By March 21, when purchase had to be suspended, CCI had disbursed Rs 850 crore to cotton growers. For purchase from April 14 onwards, CCI had already paid Rs 25 crore to farmers and the process to clear dues of Rs 29 crore is on.
German shoemaker adidas has reported a 97 per cent decline in its net profit for the first quarter of 2020 fall due to the ongoing global pandemic. The net profit for the year was reported to be $21.5 million compared to $681.3 million a year ago, with more than 70 per cent of its offline stores currently shut.
The brand has, however, seen a 55 per cent increase in online sales in March and a 35 per cent rise for the first quarter overall, even as the rise in online sales failed to prevent the brand’s revenue fall by 19 per cent to €4.75 billion.
Revenue and profit is predicted to be significantly worse in the second quarter. adidas, meanwhile, opted not to give full-year guidance due to the uncertainty created by the pandemic.
