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Around 70 clothing retailers, including Hennes & Mauritz AB and Esprit Holdings have decided to ban the 1.5 billion rand ($117 million) Mohair industry in South Africa following the release of a video footage from twelve Angora goat farms in South Africa’s Karoo region.
The footage showed goats being dragged by the legs or horns and sustaining injuries from shearing. A worker decapitating a goat also featured.
Manufacturers from Ascena Retail Group Inc. to Inditex SA, which owns the Zara fashion chain, have now pledged to become “mohair-free.” South Africa produces about 50 percent of the world’s mohair and exports mainly to countries in Asia and Europe, including China, Italy, the UK and Taiwan.
It’s seen as a reliable supplier because the goats grow their fleeces year-round, which allows farmers to auction their produce over two seasons, in summer and winter. Mohair from South Africa is used to make suite by companies such as Ermenegildo Zegna Group.
"Numerous speeches and discussions enabled audiences to gain valuable perspective and insight on issues related to sustainability and more. Eco-pioneer Stella McCartney spoke about her own journey towards developing an eco-friendly approach, emphasizing the lack of support from the rest of the industry. Entrepreneur and academician David Roberts explained technologies do not disappear but are replaced. Like in the case of oil, competition from solar and wind power could well herald a decline in usage of this resource. "It’s good news. But what's less good news for you is that the textile industry will soon be the most polluting industry in the world, because at the moment you don't have solar power."
Held over two days May 15 and 16, 2018 in Copenhagen, the sixth edition of the Copenhagen Fashion Summit, discussed innovative industry solutions and ecological and social challenges. The event, organized by the Global Fashion Agenda, was supported by top stakeholders in the global fashion industry including H&M, Nice, C&A and Li &Fung with representatives from unions, associations and other institutions, as well as founders of much smaller brands marking their presence.
An eco-friendly approach to fashion
Numerous speeches and discussions enabled audiences to gain valuable perspective and insight on issues related to sustainability and more. Eco-pioneer Stella McCartney spoke about her own journey towards developing an eco-friendly approach, emphasizing the lack of support from the rest of the industry. Entrepreneur and academician David Roberts explained technologies do not disappear but are replaced. Like in the case of oil, competition from solar and wind power could well herald a decline in usage of this resource. "It’s good news. But what's less good news for you is that the textile industry will soon be the most polluting industry in the world, because at the moment you don't have solar power. “
Ellen MacArthur's ‘Make Fashion Circular’ initiative, which aims to establish practices that would develop a truly circular economy in the fashion industry,
is attracting an increasing number of brands and manufacturers. The sailor's determination has helped her get more than 50 brands on board, including important ones like Burberry, Nike and H&M. She goes on to say that the biggest players in the plastic industry have worked together to find a solution for packaging. That helped with regulation.
Towards atomization
Progress in automation and IT systems have allowed the industry to develop faster solutions which better meet the expectations of final consumers, while also reducing unsold merchandise. Pete Santora of Sofwear Automation has developed a machine which optimizes the processes of cutting, sewing and assembling apparel and footwear. He plans to develop local distribution circuits with factories that are geographically close to their customers.
Adopting responsible strategies
Responsible business strategies are also being developed in China, where consumers are increasingly confronted with problems linked to pollution. As Robby Gu, Vice President-Innovation, JNBY Group points out developing responsible collections is not only about social engagement: it's an economic benefit for them. He said they came up against the problem of other companies copying their products. But by developing responsible sourcing and using quality materials, they ensured customers can tell the difference because of the feel and smell of the brand’s products.
This is one of the central ideas of the summit. All speakers admitted that adopting a responsible approach can imply costs and that it is often complicated for small or medium-sized businesses to know how to get started. But in the mid to long term, these commitments pay off, with 1-2 per cent growth in EBIT margin predicted for companies that make them.
Marie-Claire Daveu, Chief Sustainability Officer, Kering observed during a panel discussing the #Metoo movement and its impact on the industry, “When I think about the road we've travelled since last September in terms of protecting models during Fashion Weeks, it's impressive.” She goes on to say, "There are very few issues to which LVMH and Kering will both put their names to. But when it's about a subject of that scale, the change is radical." Now it's up to the industry to show that this kind of drastic change can also happen in environmental and social issues.
The EU’s apparel imports continued to surge in Jan-Feb 2018 too. According to the data has released recently by the European Commission.
The 28-nations bloc upped its apparel volume by 11.17 per cent while value got a boost of just 1.19 per cent all because of a massive drop of 8.96 per cent in unit prices.
Unit prices remained as low as € 17.07 as against € 18.75 in the same period last year.
Overall, China still holds the most supreme position in the EU’s apparel market with export worth € 4.60 billion in Jan.-Feb. ’18 period.
The volume of apparel shipment from China to the EU increased by 3.97 per cent on the Y-o-Y basis; however, the country noted a significant fall in value terms by 2.80 per cent.
The Garment Workers Coordination Parishad, which is a platform for readymade garment (RMG) workers comprising 52 organisations, has demanded that the minimum wage of the workers should be increased to Tk 16,000 ($189). Apparel workers in Bangladesh receive only $67 (Tk 5,300) per month, the lowest wage compared to all other countries in Asia.
It said that workers in India get $168, while those in Cambodia get $170. Workers in other countries like Pakistan, Vietnam and Myanmar receive $124, $154 and $86, respectively.
Kamrul Anam, joint convener of the association said that the workers should get Tk 16,000 as minimum wage with Tk 10,000 as basic salary to fulfil their monthly demands.
The leaders of the association have also asked for 10 per cent increment in salary every year, six months maternity leave and three months of apprenticeship period with basic salary. (KD)
"Significant investment in automation in the U.S. textile and apparel industry, particularly in yarn, thread, and fabric production, has depressed U.S. employment despite increases in domestic shipments”, according to the report titled “The Economic Effects of Significant U.S. Import Restraints" by the US International Trade Commission
In coming years, increased capital investment in automation should contribute to a further expected decline of 3.7 percent, on average, in employment in the textile and apparel industry during 2015–20.
The most significant decline is projected in the textile products (5.9 percent) and textile mills sectors (5.7 percent).
At the same time, U.S. textile and apparel exports are expected to increase 2.8 percent, with U.S. apparel exports increasing by 10 percent as a result of growing demand for higher-quality, specialised, or “Made in the USA” apparel.
Primark has joined the Ellen MacArthur Foundation’s Make Fashion Circular initiative that aims to drastically redesign the fashion industry by creating a circular economy for fashion around the world.
The move is part of Primark’s environmental sustainability strategy, developed to reduce the clothing chain’s impact on the environment.
Primark will embrace the three key principles of the initiative: business models that keep clothes in use; materials that are renewable and safe; and solutions that turn used clothes into new clothes.
The programme, Make Fashion Circular, aims to ensure the fashion industry evolves into a sustainable sector that can benefit society and the environment. It was founded in May last year at the Copenhagen Fashion Summit as the Circular Fibres Initiative.
The EU textile and clothing industry, over the last 10 years, has invested almost € 50 billion into modern manufacturing and service facilities and technologies, creating safer and higher added value European jobs.
The industry’s turnover, since 2013, has grown by 14% to € 181 billion and extra-EU exports by 15% to € 48 billion, while employment and company numbers have been maintained.
The General Assembly 2018 on June 7, Brussels, will showcase the remarkable growth of the EU Textile and Clothing sector through investment cases and success stories from a diversified group of European companies.
Keynote speakers at the event will include Mrs. Irmfried Schwimann, Deputy Director General at DG GROW, European Commission, Company owners/ managers of Amann & Söhne (Germany), Beaulieu International Group (Belgium), Cotoblau (Spain), Eurojersey (Italy), Innothera (France), Lenzing (Austria), Rovitex (Hungary), and Valérius (Portugal).
European consumer group Beuc has recommended the use EU ecolabelled products.
The label already restricts the use of all chemicals that may cause cancer, change DNA, or harm reproductive health as well as some allergens and endocrine disruptors.
The restriction will apply 24 months after publication in the EU Official Journal. This will follow its scrutiny by the European Parliament and Council. Once in force, clothing and related articles, textiles and footwear containing the listed substances – whether produced within the EU or imported – will not be allowed on the EU market.
Beuc has also welcomed the EU action to restrict 33 carcinogenic, mutagenic or reprotoxic (CMR) substances but it believes that more needs to be done to protect consumers against harmful chemicals in textiles such as endocrine disruptors or allergens.
"Having developed textile operations in 1958 in Northern region and in 1970 in Southern region, Vietnam’s textile industry has come a long way, dominating global textile dynamics today. In 2016, Vietnam was recognised as the third top garment exporter in the world where the top two were China and Bangladesh. Apparel exports account for 16 per cent of the country’s total exports (2017). Today there are about 6,000 textile and apparel manufacturing companies working with 2.5 million employees while the population in Vietnam is about 90 million."
Having developed textile operations in 1958 in Northern region and in 1970 in Southern region, Vietnam’s textile industry has come a long way, dominating global textile dynamics today. In 2016, Vietnam was recognised as the third top garment exporter in the world where the top two were China and Bangladesh. Apparel exports account for 16 per cent of the country’s total exports (2017). Today there are about 6,000 textile and apparel manufacturing companies working with 2.5 million employees while the population in Vietnam is about 90 million.
Apparel and textile products of Vietnam are exported to 180 countries and territories around the world. Garment manufacturing accounts for 70 per cent of the total businesses in this sector in Vietnam with CMT (Cut, Make, Trim) being the main method (85 per cent) of export. Main market for Vietnam textile and garment products are US, Europe, Japan and South Korea. The US has retained its position as the largest importer of Vietnamese textiles and garments, followed by Europe, which has led to rapid development of the country’s textile and garment industry.
Even after facing challenges like the abolition of the Trans-Pacific Partnership (TPP) trade deal in 2017, the country was able to exceed its 2017 target of
$30bn with an export turnover of over $31bn, an increase of 10.23 per cent over previous year. Le Tien Truong, Deputy Chair of the Vietnam Textile & Apparel Association (Vinatas), says major markets of the US, the European Union, Japan and South Korea maintained good growth, while there were breakthroughs in exports to other markets such as China, Russia and Cambodia. The South Korean market grew and came close to the Japanese market, reaching an export value of $2.7 billion in 2017 while Vietnam’s textile and garment exports to China reached $3.2 billion, the same as the export value to Japan.
Domestic market
Meanwhile Vietnam’s domestic market demand too is growing powered by young consumers, increasing urbanization, and growing disposable incomes. These markets are attracting major international brands. Country’s retail sales are rising at 20 per cent annually, and spending on apparel is the second highest in Vietnam, following spending on food items. As Vietnam Textile & Apparel Association stats show, the domestic textile and garment market has grown year-on-year at 10 per cent in 2017.
A recent report by Textiles Intelligence forecasts the country’s textile production capacity will rise 12-14 per cent per annum from 2016-2020 and export potential is forecast to increase 15 per cent per annum. Owing to such expanse, the Vietnamese textile and apparel industry will reach $50 billion by 2020. Le Tien Truong opined that the balance in development of the domestic market and the foreign market has been an important point for the local textile and garment industry to ensure jobs for the employees and to maintain development of the enterprises.
FDI spectrum
The first 11 months of 2017 witnessed a steep 11.9 per cent spurt in FDI in Vietnam as compared to the previous year, shows a government release, where Vietnam received a sum of $16 billion in FDI, mainly driven by manufacturing sector. FDI in Vietnam’s flourishing textile and apparel industry is increasing rapidly, which is making the country one of the most popular destinations in Asia for textile investment. According to the data from Vietnam’s Foreign Investment Agency (FIA), FDI investments in Vietnam were up 152.78 per cent year-on-year in the first two months of 2017, and investment in Vietnam’s textile and apparel industry now accounts for 21 per cent of the country’s total FDI.
FIA also reports that Chinese investors have registered 123 investment projects in Vietnam between January and February of 2017. One of the largest among these Chinese investments is the $220 million invested in a Vietnam polyester synthetic fiber plant in central Tay Ninh province. Chinese investment in Vietnam’s textile plants will enable it to have more advanced technology and increased capacity in its textile and apparel productions. Additionally, textile investment from South Korea in Vietnam is also on the rise. By early 2017, South Korea’s Sea-A Group has committed a total of $2 billion in capital in Vietnam’s textile and garment industry.
Katie Bickerstaffe and Pip McCrostie have joined M&S. Bickerstaffe is the outgoing boss of Dixons Carphone’s UK business. McCrostie brings extensive experience in finance and transactions from a career at Ernst & Young where she transformed and led the Global Corporate Finance business.
Under-pressure M&S has beefed up its board with two new non-executive directors offering the kind of retail and business experience it needs. It's believed that the retailer will accelerate its store closure program as sales continue to fall. The retailer has been encouraged by results so far where store closures haven't seen sales in those areas plunging. Instead, shoppers have switched to other M&S stores nearby.
The number of full line (i.e. those selling both general merchandise and food) store closures will rise to 100 from the 60 originally planned. M&S reset its strategy in November. The plan is to speed up store closures, accelerate the relocation and downsizing of other stores, and reposition its food offering. This year it has also detailed changes to its technology function, clothing and home logistics and food marketing.
Jill McDonald was appointed in October as clothing and home managing director. She has been tasked with delivering the sustained sales and profit growth that has eluded Britain’s biggest clothing retailer for a decade.
