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Fast fashion leads to problems such as child labor and human trafficking. Mass consumption has removed this generation almost entirely from the manufacturing process – unlike previous generations, who would either know the tailor or fabric producer responsible for making their clothes, or make clothing themselves.
An unprecedented demand for clothing on a worldwide scale is resulting in global clothing brands’ making use of factory plants that are unethical in creation of their products. The first area that is being affected is the lives and health of the workers in factory plants supplying these retailers. In countries that engage in mass production, little is done to protect workers and underage persons employed by this sector. Women and young workers spend 14 hours a day in sweatshops.
Fast fashion is the process whereby products and designs move quickly from catwalks to stores and retailers. Brands buy material from Asian factories that are guilty of contaminating local rivers with carcinogenic run-off. The dyes used to color the clothing in businesses that specialize in fast fashion usually contain toxic chemicals such as nonylphenol.
Bangladesh’s apparel sector export earnings moved north despite numerous obstacles. And among the reasons for growth are: compliance with buyers’ conditions, reforms in the readymade garment sector and higher investment and production.
The apparel sector earned $23 billion through exporting products in the first nine months of the current financial year. Although export growth was nearly $4 billion after the disaster, the number of garment factories had not increased. There were some 5,867 garment factories in the country in 2012-13 fiscal, dropped to 4,600 in January this fiscal. Though the number of factories has fallen productivity increased gradually. However, the number of readymade garment workers has remained unchanged at 40 lakhs.
Accord-Alliance and the National Action Plan were formed after the Rana Plaza disaster to establish a fire and building safety program in Bangladesh. Many factories were shut down after failing to meet the conditions of the Alliance and NEP. Buyers did not encourage these factories to continue production as most of them were housed in shared buildings. But despite the obstacles, entrepreneurs keep their business on track through more investment.
Though total export earnings have increased their growth rate has fallen. Entrepreneurs have taken various steps to regain buyers’ trust.
Major retailers are backing on the Cotton Egypt Association’s (CEA) drive to rid the supply chain of falsely labeled Egyptian cotton goods. They support the measures being taken by the CEA to root out dishonest manufacturers and counterfeit goods from the supply chain. John Lewis and Dunelm are among those backing the drive.
Manufacturers who do not meet the new criteria will no longer be licensed to produce Egyptian cotton products or use the trademarked logo. John Lewis says all Egyptian cotton products they sell are 100 per cent genuine. Similarly the UK-based Dunelm Group supports the new accreditation process put in place by the CEA to protect the Egyptian cotton brand and will be continuing to insist suppliers meet those standards as a condition of trade with Dunelm.
CEA has also partnered leading testing and verification body Bureau Veritas. The process, which has been endorsed by several academic and professional bodies, works by extracting DNA from cotton fibers, yarns, woven, knitted, fabric or finished apparel. This can then be used to identify the origin and source of the fibers and the percentage of genuine Egyptian cotton in a product. Only manufacturers found to be producing 100 per cent Egyptian cotton goods will receive the accreditation.
Big brands and retail giants are waking up to sustainability and need for green value chains supporting it with huge amount investments by introducing sustainable clothing lines within their collections and ethical manufacturing processes. Following this, the UK’s most-anticipated fashion trade show that claims to be the largest gathering of fashion buyers, Pure London has announced the launch of a new section within its show format to display sustainable collections. Called Pure Conscious, the new section will focus on sustainable brands by giving them a dedicated space at the event to be seen and heard.
Pure Conscious aims to impart education around the much debated topics and connect designers with prospective retailers and brands. This would entail creating a one-on-one business platform for new and emerging talent(s) as well, that otherwise go unnoticed at similar events.
The fashion event will also showcase a slew of content-based programs and seminars highlighting the circular loop economy, sustainable fashion and ethical processes. Fashion technology as a subject would also be explored as a key to empowering the entire supply chain to be more sustainable in its outlook.
Notably, Common Objective is the team’s latest online platform which was launched at the Ethical Fashion Forum. The platform is focused on carrying forward the 12-year legacy associated with the Ethical Fashion Forum which is described as the “LinkedIn for ethical and sustainable fashion.
Puma may shift some production from China to other Asian markets if US tariffs are imposed on footwear. The German sportswear maker currently makes about a third of its products in China. It is looking to move sourcing of footwear to countries like Vietnam and Indonesia and apparel to Cambodia and Bangladesh.
Apparel and footwear could be included in tariffs to be imposed by the US on Chinese imports. The tariffs could mean Puma has to accept a lower US margin or raise prices. However, Puma might have an advantage over larger rivals Adidas and market leader Nike in being able to move sourcing faster because its volumes are smaller.
For Puma first quarter sales in the Asia-Pacific region jumped 35 per cent. Puma has about 1,400 points of sale in China, compared to about 10,000 for its rivals. The brand has already been shifting production away from China over the last couple of years due to rising labor costs. However, it’s unlikely tariffs could shift footwear production back to the United States, although medium to long-term it makes sense to move sourcing closer to its major markets.
Moving production for the US market could take about 12 months. The capacity freed up could also be used to make products for the booming Chinese market, where Puma’s sales growth was exceptional in the first quarter. <p
For Q1 Kering’s consolidated revenue is up 27.1 per cent on a reported and 36.5 per cent on a comparable basis. Buoyed by favorable market conditions, this increase is well balanced across all distribution channels. Directly operated stores continued to see strong growth momentum (up 39.9 per cent on a comparable basis), with double-digit growth in all geographic regions, particularly North America (up 54.3 per cent on a comparable basis) and Asia Pacific (up 42.2 per cent on a comparable basis). At the same time, online sales more than doubled during the quarter.
Revenue from the wholesale network rose 30.5 per cent on a comparable basis. Kering Eyewear continued developing its organization, and the collections under the Cartier license, whose sales were consolidated for the first time, were very well received. With a solid framework and bolstered infrastructure, Kering Eyewear has successfully made a name for itself.
Gucci’s revenue was up 37.9 per cent and 48.7 per cent on a comparable basis. Sales in its directly operated stores, where all product categories and nationalities recorded double-digit growth, rose 50.4 per cent on a comparable basis. Revenue posted sharp increases in all geographic regions, particularly North America (up 64.4 per cent) and Asia Pacific (up 49.4 per cent). The house’s online sales, driven by the US, reported triple-digit growth.
Yves Saint Laurent’s revenue was up 12 per cent as reported and 19.6 per cent on a comparable basis.
Textile manufacturers in Pakistan want the zero-rated tax facility to continue. They also want pending tax refund claims to be cleared. Pakistan’s exports have fallen despite the GSP Plus status the European Union awarded the country in 2013 that allows exports at sharply reduced or zero duty. Textile exports have a 57 per cent share in Pakistan’s total exports.
In Budget 2017-18, export refinance facility was maintained at three per cent, export-oriented sectors continued to remain zero-rated and the duty-free regime for machinery imports stood unchanged. A five per cent regulatory duty was, however, imposed on the import of polyester filament yarn.
Now, textile exporters expect more incentives in the upcoming budget for 2018-19 that could help boost their earnings. Industry has also called for reintroducing the duty drawback scheme and removing or at least curtailing duty on the import of synthetic yarn and polyester staple fiber. They are seeking the removal of Gas Infrastructure Development Cess as well which will reduce the cost of production and improve competitiveness.
Meanwhile, the textile industry wants tax on cotton imports scrapped. Textile manufacturers are attracted by the long fiber of imported cotton compared to the cotton produced in Pakistan.
Bangladesh’s garment makers want source tax on export receipts to be waived for three years. As of now, there is a 0.70 per cent tax on total export proceeds from major export items, including garments. Exporters suggest a tax of 0.50 per cent only on cutting and making instead of a source tax on export proceeds.
The plea from garment exporters come at a time when apparel shipments are on the rise. Garment shipments rose nine per cent year-on-year in the first nine months of the fiscal year. Source tax collected from export proceeds of garments is roughly the revenue collected as income tax from the apparel sector. Apparel makers enjoy a reduced corporate tax rate of 12 per cent.
Some garment exporters are said to import fabrics duty-free and sell them in the domestic market. Producers who make cloth for the domestic market say this hurts them. Leather goods and footwear manufacturers and exporters have called for a reduction of tax on technical assistance and royalty fees and duty-free benefits for importing equipment to ensure fire safety at factories. The garment industry is the country's main export earner. It is looking to hit 50 billion dollars in shipments by 2021.
Intertextile Shanghai Home Textiles will be held in China from August 27 to 30. The home textiles trade event will feature a wide variety of home textile products ranging from bedding, bath, table and kitchen, curtains and upholstery and textile designs and technology, whole home, sun protection, wall coverings and carpets and rugs.
Intertextile Shanghai Home Textiles serves as an ideal platform for suppliers to introduce new products to the market as a large number of visitors including import and export corporations, wholesalers, distributors, chain stores and home product manufacturers are expected.
Euroart, based in China, will present both imported decorative fabrics and wallpaper as well as self-owned fabric brands. Buyers can expect to discover advanced jacquard, embroidery, silk and printing techniques. Fabrics design company Jab Anstoetz will present new outdoor fabrics. Its Around The World collection possesses high color stability, mould-resistance and easy-care features. Jab will also introduce advanced Fiber Guard fabrics which prevent dirt and meet Oeko-Tex standards.
Bedding products are another highlight of the show. Advansa will display new fiber formula Suprelle 95, which is a combination of enhanced sleep comfort and ease of care. French brand Today will promote its full range of fashionable bedding items.
Itma Asia + Citme will be held in China from October 15 to 19, 2018. The event will showcase state-of-the-art machinery as well as products that boost automation and energy-saving features. Over 1,600 textile machinery manufacturers will exhibit. Chinese manufacturers will take the largest area, followed by Germany, Italy, Japan and Switzerland. Sector-wise, spinning machinery forms the largest sector. This is followed by finishing and dyeing, knitting, weaving and nonwovens.
As China’s textile industry continues its transformation, demand for advanced machinery and technology is on the rise. The enthusiastic response for the exhibition is the result of China’s ongoing strategic push for innovation to enhance the global competitiveness of the Chinese textile and other industry sectors. To enhance the country’s position in the global value chain, China has drawn up a roadmap to upgrade industries through innovation.
The exhibition is the industry-leading platform in Asia for textile machinery manufacturers to showcase a wide spectrum of cutting-edge solutions. The last such combined show in 2016 welcomed 1,673 exhibitors from 28 economies and had over 1,00,000 visitors from 102 countries.
In today’s global market, textile makers are sourcing innovative solutions and upgrading their facilities. The drive for better technological solutions is expected to grow in Asia, especially China. Hence, leading brand names will have a large presence in at this event.
