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Islamic Fashion & Design Council’s (IFDC) revolutionary Pret-A-Cover™ Buyers Lane has partnered The Retail Summit to hold its new edition at The Atlantis, Dubai from February 13 -14, 2019.
The partnership between IFDC and The Retail Summit will bring together prominent global brands, retailers, entrepreneurs, media, key personalities, and venture capitalists planning to discover investment opportunities, market share, commercial viability, and more within the lucrative Muslim lifestyle markets but also within the wider secondary market of other modest consumers.
Over 80 international c-suite and senior executives representing iconic and disruptor brands from across every segment of the retail ecosystem will attend the event. The attendees will have access to the modest lifestyle showcases of Pret-A-Cover™ Buyers Lane 2019 being exhibited at The Retail Summit’s e Market Place. These exhibitor platforms will showcase innovative designs, new collections, cutting edge ideas, interactive networking, demos and tutorials, retail innovation sessions and more. The VIP fashion show and highly coveted IFDC Awards will be held on Feb 13, 2019 which will unveil leading modest fashion looks by global talent.
An internal survey done in Pakistan reveals, prices of international apparel brands in Pakistan are sometimes double the original retail prices. According to the World Bank, Pakistan’s adjusted net national income per capita was $1,444 (nearly $120 per month) in 2016 whereas the price of a single top of international apparel brands like Debenhams, Mango, Next and Splash often exceeds a quarter of that income. This implies that these brands are targeting high-end customers unlike global trends.
The difference in pricing is due to additional operational and logistics costs that these brands have to incur. A customer might find the price of a product at Mango’s store in Spain very reasonable when compared to the price of the same top of the franchise in Pakistan. Being among the largest textile manufacturers, Pakistan also has the potential to manufacture these brands locally with some value addition, which could help save some of the operational and logistics costs. However, these franchises are restricted by the brands from manufacturing their products locally.
In some cases, brands like Levi’s have set up their manufacturing outlets in Pakistan, making it comparatively more convenient for retail stores and helping the national economy as well.
A section of BGMEA members including its former presidents have requested the commerce minister not to extend the tenure of current board again. The current board under the leadership of its president, Md Siddiqur Rahman, assumed office on September 22, 2015 through a negotiation process for a two-year term.
The board of the trade body got its first extension (six months) from the commerce ministry on the grounds that BGMEA had to relocate its headquarters as the Supreme Court declared its building on Hatirjheel Lake illegal and ordered to demolish it within six months. The illegally built headquarters of the trade body is yet to be demolished as the Supreme Court later extended time for the apparel sector trade body for its demolition.
After the six-month extended tenure the government had further extended the tenure of the BGMEA board for one more year and allowed the existing board to remain in office up to March 22, 2019. Forum, a platform of the BGMEA members, alleged that the incumbent president was trying to extend his tenure for the third time.
BGMEA members said as the tenure of the current committee would end on March 22 next year; the election schedule would have to be announced by December 22 this year as per the articles of association of the trade body.
Japanese apparel giant Fast Retailing has declared the list of Uniqlo and GU’s key fabric mills and factories. This was a part of the company’s commitment to increase transparency across its supply chain. It has shown its commitment to ensure the right working conditions for the people and protect the environment in addition to safeguarding human rights.
The list published by the group includes sewing factories and fabric mills in China, Vietnam, Cambodia, Thailand, Malaysia, Indonesia, Korea, Japan, Turkey and Bangladesh. Fast Retailing claims to have monitored all aforementioned sewing factories and fabric mills to ensure compliance with its Code of Conduct for Production Partners. The fast-fashion retail, over the last decade has been promoting sustainability by regularly conducting independent testing of factory wastewater so as to remove dangerous chemical discharges.
The Japanese retailer joins elite fashion and sports brands like Adidas, Levi Strauss, Primark, H&M, Nike, Marks & Spencer and Arcadia in embracing and encouraging transparency in supply chain.
As per ITC Tajikistan, the Project Steering Committee (PSC) meeting held in Dushanbe on November 30, 2018, discussed the role and contribution of the International Trade Centre (ITC) to the textile and clothing sector of Tajikistan. It also discussed the results of the initial year of the new Global Textiles and Clothing Program (GTEX).
The PSC consists of representatives from Tajikistan’s relevant ministries, agencies, private sector, academia, the donor (government of Switzerland), and the ITC. The committee ensures transparency in project implementation and assurance that its outputs respond to the country’s priorities.
The Global Textiles and Clothing Programme (GTEX) launched by ITC aims to boost textile and clothing exports from Tajikistan to stimulate employment and income generation along the textile and clothing value chain. Tajikistan is one of the five countries selected to be part of this new four-year initiative, financed by the Government of Switzerland.
Lenzing’s textile brand Tencel TM will be the prime sponsor for this year’s Intimasia 3.0. The Tencel TM intimate fiber is a must have ingredient for a high-quality lingerie and authentic underwear. It absorbs moisture efficiently preventing any chance of bacteria growth. The fiber also manages moisture transportation, enhancing fabrics by keeping skin pleasantly comfortable.
Tencel TM is used in highly specialised applications, and is known for its skin softness; touch smoothness and sensitivity, and enlightening senses. Moreover, it has an amazing efficiency for thermal regulation and moisture absorption. Intimasia 3.0 will be held from January 21-22, 2019 in Delhi. It will highlight all categories of intimate apparels including lingerie, men’s innerwear, kid’s innerwear, sleepwear, loungewear, swimwear, shapewear, activewear, socks & stockings, thermals, leggings, handkerchiefs and other hosiery products. The two-day event will provide a platform to the retailer and distributors to connect and head into the intimate apparel business right away. Retailers from 84 neighboring cities are expected to attend the event.
India and Vietnam are targeting $15 billion in bilateral trade by 2020. Indian businesses have invested in 201 big projects in Vietnam. The country earned $257 million from selling garments and textile products to Vietnam between April and August of the current fiscal, increasing by 59 per cent than the same period in the last fiscal.
In the first nine months of 2018, the bilateral trade reached $8.27 billion, increasing by 47 per cent over the same period in 2017. In fiscal 2017-2018, India’s global exports of garments and textile were worth $36.73 billion, including $555 million to Vietnam, up 42 per cent over the previous fiscal.
As per a FTA between India and the Association of South East Asian Nations (ASEAN), Indian exports of cotton, woven cotton fabric and knitted fabric to Vietnam will enjoy tax exemption from January 1, 2019 making it a competitive supplier of such materials and machines to Vietnam.
This year’s Global Change Awards, an annual event organised by the H&M Foundation, emphasised on manufacturing process rather than greening stores and logistics. Fibre and fabric production, yarn preparation and dying contributed to 97 per cent of the apparel industry’s total global climate impact in 2016. Retailers, however, rarely own the factories producing their garments. Zara owner Inditex owns around 3 per cent of its manufacturing capacity, while the H&M Group exclusively works with external suppliers, which number more than 1,000.
In two decades, the H&M Group has grown from a medium-sized European retail chain to the second-largest garment company in the world, producing approximately 3 billion items per year to sell across its 4,800 stores. But a recent drop in sales and profits have forced the Swedish giant to face its structural issues, including a production process which led to$4.3 billion of unsold clothes in early 2018.
The group, which includes Cos, & Other Stories and seven other brands, was one of the first fast-fashion companies to implement programs to reduce its environmental footprint. It launched its first Conscious Collection in Spring 2011, which included materials like organic cotton and recycled polyester, as well as a garment-collecting initiative in 2013.
A recent middle-income consumer survey by Hong Kong Trade Development Council (HKTDC) among Southeast Asian cities particularly Jakarta, Kuala Lumpur and Bangkok revealed fashion occupies the third spot in consumer expenditure after travel and leisure; and health, beauty and wellness. According to the survey, consumers spent most on business attire (28 per cent), casual wear (26 per cent), shoes (22 percent), accessories (12 per cent), travel goods and handbags (8 per cent), and spectacles (4 per cent).
But while ASEAN people sought international designer brands, they were also attached to fashion reflecting their unique cultural heritage and history. The survey also noted some local designers from Indonesia, Malaysia and Thailand who are turning to local cultural heritage and history for inspiration in order to create a distinctive fashion identity.
The survey highlight importance of youth as an essential consideration for foreign fashion brands that wish to tap into the ASEAN market. The region’s trends are moving toward street style, fun denim, off white jeans, oversized shirts, logo hoodies and statement t-shirts. Rock and roll, hip-hop, dramas and movies are all big reference points in ASEAN’s fashion scene. Athleisure is also a prevalent theme of fashion in ASEAN amid a booming global trend toward fitness and healthy living.
The survey likewise underscored the influence of social media on fashion purchases, especially ASEAN millennials’ decisions on purchasing clothing and fashion accessories.
"The apparel industry seems to be bouncing back with shoppers flocking reputed stores such as Lululemon, Abercrombie & Fitch, Old Navy and Urban Outfitters this holiday season. As Abercrombie & Fitch CEO Fran Horowitz reveals, outerwear sales are trending higher during the fourth quarter, thanks to cooler temperatures finally hitting much of the country, in addition to soft and cozy items like sherpa hoodies and pajama sets flying off shelves."
The apparel industry seems to be bouncing back with shoppers flocking reputed stores such as Lululemon, Abercrombie & Fitch, Old Navy and Urban Outfitters this holiday season. As Abercrombie & Fitch CEO Fran Horowitz reveals, outerwear sales are trending higher during the fourth quarter, thanks to cooler temperatures finally hitting much of the country, in addition to soft and cozy items like sherpa hoodies and pajama sets flying off shelves.
Apparel sales to witness exponential growth
As per consulting firm Customer Growth Partners, spending on apparel registered the highest growth since 2011, increasing 5.4 per cent over Black Friday weekend. The category, as Craig Jonhson, President of CGP reveals, normally registers a growth of only 1 to 2 per cent only. The National Retail Federation predicts overall holiday sales will grow between 4.3 and 4.8 percent this year, with apparel retailers making nearly a quarter of their annual sales during the holidays.
Leading brands fuelling growth
Some retailers are known to continuously outperform, with the biggest outperformers being off-pricers. TJ Maxx owner TJX,
for example, reported a 7 per cent increase in its sales in the latest quarter, with net sales increasing by 12 percent from a year ago to reach $9.8 billion. Brands such as Nike, Adidas and Under Armour are fuelling gains in apparel sales. Targeting women customers, these brands are rivaling Lululemon and Gap's Athleta brand, which are now trying to appeal to more men. Nike, for example, will open up studios to sell yoga pants in some of its stores.
Active wear gaining traction
Johnson points out, performance wear is currently the fastest-growing category with women being more comfortable in wearing leggings, graphic tees and jogger pants outside the house more often. Brands like Bandier, Outdoor Voices and Fila are taking over Instagram feeds, and their puffer jackets and sports bras are on many women's holiday wish list.
Amazon too is expanding its activewear range. Coresight Research reveals that the e-commerce company recently listed over 1 million women's and men's clothing products on its site, registering a 25 per cent increase from February 2018. Basics brands like Gildan and Calvin Klein, along with Under Armour and Adidas, are gaining popularity on Amazon.
Inventory issues plague retailers
However, retailers such as Gap and J Crew are struggling to balance supply and demand, so they don't end up with too much inventory on the shelves or in stock rooms. Nomura Instinet analyst Simeon Siegel noticed during the third quarters that department stores, as a group, reported their first quarter of inventory growth after 10 quarters of declines. These stores have managed to pass on excess apparel inventory to off-price chains such as TJ Maxx and Ross Stores more easily in the past, However, it's becoming increasingly difficult for them to do so now.
There are fears apparel companies might get more promotional in 2019 increasing the pressure on retailer’s margins. However, US President, Donald Trump and Chinese President Xi Jinping have decided to delay increasing tariffs in early 2019 on many consumer goods, including clothing. As Wells Fargo analyst Ike Boruchow says, this truce will benefit a number of retailers, including Fossil, Stitch Fix, Skechers and Steve Madden.
