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Parent company of popular Australian and New Zealand retail brands like Millers, Rivers, Katies, Noni B, and Autograph, Mosaic Brands has filed for bankruptcy. With around 763 stores and thousands of employees across both countries, the companyhas shifted its focus to expanding big-box Rivers megastores in regional areas of Australia.
A month prior to this announcement, Mosaic had opted to close its Rockmans, Autograph, Crossroads, W Lane, and BeMe brands, to concentrate more on its Millers, Noni B, Rivers, and Katies brands as well as a dedicated online marketplace. This strategic decision is expected to result in the numerous store closures and the loss of hundreds of jobs. As of Aug 2023, Mosaic operated 150 Rockmans stores, 49 Autograph stores, and 32 W.Lane stores, with BeMe and Crossroads exclusively online.
Mosaic has appointed Vaughan Strawbridge, Kathryn Evans, Kate Warwick, and David McGrath from FTI Consulting as administrators to oversee the insolvency process. Additionally, Mosaic’s senior secured lender has enlisted KPMG as receivers and managers to collaborate with FTI. The control of Mosaic will now transfer to FTI Consulting, which will evaluate the company's finances and determine whether restructuring is feasible to allow continued operations or if liquidation is necessary.
In Feb’04, Mosaic’s net profit rose by 38 per cent Q-o-Q rise to $5.4 million. However, the company registered a $66 million loss in FY22-23. This included $39 million in debt and $45 million in lease obligations. Mosaic’s annual report had cautioned that these financial burdens may cast significant doubt on the group’s ability to continue as a going concern. Nonetheless, the board of directors had previously expressed confidence in Mosaic’s ability to meet its financial obligations.
In northwest China’s Uygur Autonomous Region, advancements in breeding high-quality cotton varieties, alongside increased digitalisation and mechanisation in farming practices, have greatly enhanced cotton output and quality. As one of the country’s top cotton-producing areas, Xinjiang plays a vital role in supplying premium raw materials to the textile and apparel industries.
On October 9, Li Xueyuan, Xinjiang's lead expert in cotton industry technology, announced a new national record in calculated per-unit cotton yield at a high-yield demonstration field in Jinghe County, Bortala Mongolian Autonomous Prefecture. Over recent years, Li and his team have independently developed more than 20 high-yield cotton varieties. Initially, the team focused only on yield increases, Li noted. Now, it aims for early maturity, premium quality, disease resistance, and suitability for mechanised harvesting. Most of these goals have now been met.
In support of these advances, Xinjiang's Department of Agriculture and Rural Affairs has implemented a comprehensive cotton production technology system with designated demonstration fields across major cotton-growing counties to encourage uniform development.
Digital farming is now a cornerstone of cotton cultivation in Xinjiang, enabling farmers to manage field practices, including irrigation and fertilisation, directly from their mobile phones. Dong Cheng long, a farmer in Jinghe County, shared how his robust cotton plants now grow densely with well-formed bolls, allowing him to oversee nearly 500 mu (around 33.3 hectare) of land by himself. Mechanised harvesters further streamline his work, with each cotton picker able to process an average of 500 mu per day—equivalent to the labor of 2,000 workers.
Navigating macroeconomic pressures impacting families with young children, Carter’s Inc remains committed to strengthening its brand presence and retail footprint, according to Michael D Casey, CEO and Chairman.
Aided by a $40 million investment in price reductions and an additional $10 million towards brand marketing in H2, FY24, the retailer’s sales in the US exceeded expectations, notes Casey. The investments also helped itboost in-store and online sales in Q3, FY24, he adds.
Despite lower wholesale sales to department and off-price stores compared to last year, Carter’s saw a positive lift from customers consolidating purchases at major retailers like Target, Walmart, and Amazon. International sales performed as expected.
The company’s best-selling segment, The Baby Apparel, grew by 2 percent and made up over half of total apparel sales, while baby and toddler apparel combined contributed more than 80 percent. In contrast, sales for children aged 4-10 decreased by double digits. Within its pricing categories, Carter’s saw strong growth in both low and premium tiers, particularly with its Little Planet, PurelySoft, and Baby B’gosh collections, which increased by 50 percent.
Holiday shopping has started to improve, spurred by colder weather, and strategic price reductions on staple items helped Carter’s maintain comparable U.S. retail unit volumes to last year.
Reiterating Carter’s commitment to brick-and-mortar, Casey emphasised, nearly 70 percent of children’s apparel is bought in-store, which also drives e-commerce sales. The company aims to open 250 US stores by 2027, projected to add $250 million in sales. In Q3, FY24, the brand’s omnichannel sales grew by 12 percent, with stores supporting 38 percent of digital orders. Carter’s also opened 40 high-margin stores during the quarter while closing 30 low-margin ones, with 98 percent of stores cash-flow positive.
The brand’s net income in Q3, FY24 declined by 11.8 percent to $58.3 million while net sales contracted by 4.2 percent to $758.5 million. For the full year, Carter’s projects, its EPS will range between $4.70 and $5.15 while net sales will grow to $2.79 billion-$2.83 billion, driven by partnerships with Walmart, Target, and Amazon, where unit volumes rose by 15 percent year-to-date.
A Guwahati-based MSME unit, Pragjyotika Enterprises was honored with a Certificate of Excellence for its innovative contributions as a leading machine manufacturer in the Vanya Silk Post Cocoon sector. The award was presented during the Central Muga Eri Research & Training Institute’s silver jubilee celebrations by Pabitra Margherita, Minister of State for Textiles and Foreign Affairs.
Operational since the last 30 years, Pragjyotika Enterprises is the leading provider of textile machinery across Northeast India. Dedicated to the region’s development, the company has so far distributed10,000 to 15,000 machines, creating significant employment opportunities and supporting local economies across rural areas.
Manish Jain, CEO, Managing Director and Proprietor, M/s Pragjyotika Enterprises, says, the backbone of livelihoods in Northeast India, textile sector helps generate employment besides fuelling economic growth across the region. His remarks highlight the essential role of small and medium enterprises in fostering economic resilience and job creation in regions with limited large-scale industrialisation.
Besides fostering industrialisation and generating millions of jobs across the region, China's advanced technology and the Belt and Road Initiative would also help Africa realise the full potential of its textile and apparel sector, opined experts at the 2024 Sino-Africa International Symposium on Textile and Apparel in Casablanca, Morrocco.
Highlighting Africa’s abundant natural and human resources, Aouraghe Mohamed Amine, Associate Professor, Quanzhou Normal University in Fujian, China emphasised, China’s global leadership in high-end textile technology can support Morocco, especially through its wide-ranging applications in fields such as medicine, aerospace, automotive, apparel, and geotextiles.
Yan Jinjiang, Industrial Development Officer, United Nations Industrial Development Organisation, noted, Africa has the required potential to become a global leader in sustainable textiles. Key growth areas such as recycled materials, the creation of industrial parks, and technology-sharing from other nations, could fuel Africa's growth in the sector, he added.
Sun Ruizhe, President, China National Textile and Apparel Council, explained, since its reform era, China has built a comprehensive and competitive textile sector and actively shared its manufacturing innovations and capabilities with global markets.
Liu Chenggong, Party Secretary, Donghua University in Shanghai, emphasised, a thriving textile industry is essential for a nation’s industrialisation and its modernisation. Echoing President Xi Jinping’s call for stronger China-Africa collaboration during the recent Forum on China-Africa Cooperation Summit, Liu highlighted, combined with a 2.8 billion population, this could help drive modernisation forward.
Morocco’s proactive industrial policies have optimised its business climate and expanded international trade, enabling substantial growth in manufacturing, including textiles, Liu affirmed. This forum could prove as a valuable opportunity to strengthen ties with the Moroccan Textile and Apparel Industry Association and the School of Textile and Clothing Industries, he added.
The Union government has just unveiled its ambitious Textile Policy for 2024, aiming to revitalize the nation's textile industry and propel it to new heights. The policy, with its focus on technology, sustainability, and labor-intensive growth, has been met with a mix of optimism and cautious scrutiny by industry players and trade bodies.
Policy highlights
The policy's core objective is to transform India into a global textile powerhouse by increasing textile production to $350 billion by 2030; achieving $100 billion in textile exports by 2030; creating 10 million new jobs in the textile sector by 2025.
Table: Textile industry performance
|
Year |
Production ($ bn) |
Exports ($ bn) |
Employment (mn) |
|
2023 |
$150 |
$40 |
45 |
|
2030 (Target) |
$350 |
$100 |
55 |
To achieve these targets several initiatives have been introduced viz:
Financial incentives: Capital subsidies ranging from 10 per cent to 35 per cent for investments in manufacturing with the maximum amount capped at Rs 100 crores. Credit-linked interest subsidies are available for labour-intensive units at 7 to 8 per cent for up to eight years, with an annual cap of 3 per cent.
Technical textiles in the forefront: Promotion of technical textiles, including clothing and apparel, through research and development grants and infrastructure support. Focus on traditional manufacturing processes which includes various stages of textile production, such as spinning, weaving, dyeing, and finishing.
Focus on labour-intensive units: The policy prioritizes labour-intensive units, defined as new industrial units employing at least 4,000 registered individuals under the Employee Provident Fund (EPF) scheme, including a minimum of 1,000 women. These units can receive capital subsidies of 25 to 35 per cent, capped at Rs 150 crores, and are eligible for credit-linked interest subsidies of 7 per cent to 8 per cent for up to 8 years.
Sustainability: Emphasis on reducing the industry's environmental footprint through incentives for water and energy conservation and adoption of green technologies.
Skill development: Upskilling the workforce through training programs and educational initiatives to meet the demands of a modern textile industry. Infrastructure development: Creation of textile parks and mega clusters to provide state-of-the-art facilities and attract investments.
Table: Capital subsidy structure
|
Year |
Production ($ bn) |
Exports ($ bn) |
Employment (mn) |
|
2023 |
$150 |
$40 |
45 |
|
2030 (Target) |
$350 |
$100 |
55 |
Industry welcomes new policy
The textile industry has largely welcomed the new policy, as they believe it is a positive step towards strengthening the sector. Confederation of Indian Textile Industry (CITI) chairman, T Rajkumar says, "The new textile policy is a comprehensive document that addresses the key challenges faced by the industry. The focus on technology upgradation, skill development, and sustainability is commendable.” On similar lines, Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) points out “The incentives for labour-intensive units will encourage employment generation and boost domestic manufacturing."
However, some experts look at it objectively and as they say there is lack of clarity on implementation. They are concerned about the lack of specific details on how the policy will be implemented, particularly regarding the disbursement of subsidies and the timeline for various initiatives. Moreover, the policy's success hinges on the availability of adequate infrastructure, including reliable power supply, efficient transportation networks, and skilled labor and these segments need government’s focus at the moment. India also faces stiff competition from countries like Bangladesh and Vietnam, which offer lower labor costs and preferential trade agreements hence there is a need to put in place FTAs and trade agreements.
India’s textile policy 2024 has the potential to transform the sector and contribute significantly to the country's economic growth. However, its success will depend on the government's ability to implement it despite challenges and ensure the benefits reach all segments of the industry. By fostering innovation, promoting sustainability, and enhancing the skills, India can solidify its position as a global textile powerhouse.
At a meeting to discuss the impact of the current policy framework on Surat’s textile sector, Southern Gujarat Chamber of Commerce and Industry (SGCCI) urged the state government to extend incentives in the new textile policy to units within municipal corporation limits.
The recently announced policy restricts subsides for new or expanding units within municipal boundaries. However, these units can be expanded further within the city, argue industry representatives.As the issue has a direct impact on the textile industry in the city, SGCCI plans to discuss it with the government, states Vijay Mevawala, President.
Pramod Chaudhary, Managing Director, Pratibha Group, emphasises, Surat's infrastructure, including Common Effluent Treatment Plants (CETPs) within municipal limits, can support new processing units. The CETPs in Pandesara and Sachin are fully equipped to serve additional units, making expansion within city limits viable,he adds.
Ashish Gujarati, President, Pandesara Weavers Co-operative Society, points out, while developing the new textile policy, the government state failed to consider Surat’s unique industrial environment within Gujarat. It needs to introduce an inclusive policy encouraging existing textile businesses to continue operating in Surat and attract new investments, opine industry leaders.
Improved subsidy conditions and timelines will help boost the city’s textile sector, preventing the shift of industries to other states, they add.
Voicing strong concerns over the government’s decision to halt gas supply to the ‘highly efficient’ captive power plants (CPPs) from Jan 01, 2025, Sohail Pasha, Chairman and Khhurram Mukhtar, Patron-in-Chief, The Pakistan Textile Exporters Association (PTEA), warned, the decision could lead to frequent power outages and voltage instabilities from the power distribution companies, severely impacting the textile sector.
Currently 480 captive power plants across Pakistan operate on the SNGPL network and another 800 on the SSGC network. All of these rely on gas-powered combined heat and power (CHP) systems for not only providing a consistent power source but also avoiding voltage fluctuations andprotecting the automated machinery used throughout the textile industry.
The textile sector has made heavy investments in these gas-based power plants, specifically to ensure a stable and uninterrupted energy supply for operations, Pasha and Mukhtar said. CHP systems being the second-largest consumers of RLNG after the power sector, discontinuing gas supplies could undermine the $19 billion textile export industry and putting millions of jobs at risk, they added.
The government’s decision could also hinder the industry’s ability to meet international commitments and fulfill orders for value-added products, the PTEA leaders noted. Given the existing RLNG supply contracts, halting gas supplies could create an RLNG surplus, adding financial strain to a sector already grappling with economic challenges, they opined.
Further, the PTEA leaders argued, in-house power generation from CPPs is more efficient and cost-effective than relying on the government grid, which incurs transmission and distribution (T&D) losses. Without immediate energy alternatives, the sector could face large-scale closures, posing a serious threat to Pakistan’s textile industry and export economy, they emphasised.
Outshining its rivals, French luxury company Hermes’ revenues increased by 11.3 per cent to €3.7 billion ($3.99 billion) in Q3, FY24, as per an estimate by analyst Jefferies.
Despite a sector-wide slowdown affecting labels across the high-end spectrum, Hermès's famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity and made the company one of the most consistent performers in the industry.
The slowest sales growth the brand witnessed was in the Asia Pacific region though sales in Japan rose by 1 per cent, notes Eric Du Halgouet, Executive Vice President.
The brand continues to face low sales in China. However, it hasn’t faced an additional decline in the market, adds du Halgouet. The brand is compensates for the low sales with higher average baskets, selling jewelry products, leather goods and ready-to-wear for men and women. It plans to continue investing in China and open a new flagship in Beijing next year, affirms Du Halgouet.
In its first comprehensive climate transition plan that outlines the company’s key strategies to cut greenhouse gas (GHG) emission, Levi Strauss & Co (LS& Co) has committed to achieving net-zero emissions by 2050. The San Francisco-based denim giant’s immediate target is to reduce emissions by 2030 and achieve carbon neutrality by 2050.
For this, LS & Co will focus on enhancing its own operations, partnering with suppliers to tackle Scope 3 emissions, and employing responsible governance throughout its business, says Jeffrey Hogue, Chief Sustainability Officer.
In its own facilities, LS&Co plans to invest in energy-efficient and renewable technologies, seek certifications under the US Green Building Council’s LEED program, and work with utility providers and landlords on decarbonisation efforts. A global energy management system already covers over 1,300 company-operated locations, providing valuable data on energy usage. Additionally, LS& Co has collaborated with Walmart and others on the Gigaton Power Purchasing Agreement, a virtual power purchasing agreement in the U.S.
The company will integrate climate-specific KPIs into supplier partnerships and procurement processes, with an aim to set science-based targets for key suppliers. To support their progress, LS & Co will facilitate financing and offer resources for energy and emissions reductions.
Investing in more sustainable, certified materials, and promoting circularity is another priority for LS&Co. As a commitment to sustainable innovation, the brand has launched initiatives such as Levi’s Circular 501 and Plant-based 501 jeans. To further embed sustainability, it plans to incorporate climate risks and opportunities into its annual strategy, seek third-party expert feedback, and leverage partnerships to advocate for climate-supportive policies. Executive compensation will also be linked to climate-related goals relevant to specific job functions.
In the near term, LS& Co aims to achieve a 90 percent reduction in Scope 1 and 2 GHG emissions by 2025, a 42 percent reduction in Scope 3 emissions from purchased goods and services for apparel production by 2030, and a shift to 100 percent renewable electricity in company-operated facilities by 2025. LS & Co also targets a 50 percent reduction in freshwater use in high-stress areas by 2025.
