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Multi-brand luxury Indian fashion retailer Ensemble, which recently launched its e-commerce store, recorded 50 per cent more than expected sales.
Some of the brands that retail on Ensemble’s e-commerce store include Kshitij Jalori, Ituvana, Chola, Payal Singhal, Jayanti Reddy, Manish Malhotra, Tarun Tahiliani, Kiran Uttam Ghosh, Amit Aggarwal, Arpita Meht, and Anushree Reddy among others. The site has a ‘ready to ship’ section for shoppers requiring swift delivery and the site ships internationally.
Shoppers can order clothing online and pick their order up at their local Ensemble store, according to the business’ website. With stores only allowing in limited customers to maintain social distancing, a number of stores are enabling customers to shop online as much as possible.
Ensemble’s boutiques in Mumbai and Delhi are now open with anti-coronavirus regulations in place. The business reopened the stores with a large-scale sale. Customers visiting Ensemble’s brick-and-mortar stores are required to wear a mask, have their temperature checked, and use hand sanitiser to reduce the risk of spreading COVID-19.
Luxury brand Chanel could lose a significant amount of its revenue and profits in 2020 due to the coronavirus crisis.
The next 12 to 18 months would be particularly tough for the brand as a strong recovery in countries where the group’s shops have reopened could not make up for the lack of international travel.
Like rivals, Chanel had to shut shops across the globe and idle manufacturing sites as the virus first emerged in the sector’s key market of China and then spread to the rest of the world.
Some 85 per cent of the group’s stores have now reopened and Blondiaux said Chanel had seen sales rebound in China - by over 100 per cent in some weeks. Shoppers were returning in Paris, Milan and Berlin.Consultancy Bain says the $310 billion luxury goods sector is on course for a sales fall of up to 35 per cent this year.
Chanel, which still expects to turn a profit this year, is reducing advertising and promotions by more than a quarter, cutting production and has cancelled or transformed some events like fashion shows this year, including by streaming them online.
Cambodia’s minister of commerce Pan Sorasak recently urged Adidas and H&M to continue ordering garment products from the country. The call was made during a recent meeting between the minister and representatives from Adidas led by Matthew Armstrong and Christer Horn af Aminne, H&M’s production manager in charge of Cambodia and Vietnam.
During a press conference at the office of the council of ministers, municipal labour department director Choun Vuthy said out of the 706 garment factories in Phnom Penh, 121 have temporarily halted operations due to raw materials crunch and production setbacks experienced amid the COVID-19 crisis, according to Cambodian media reports.
The suspended factories left lakhs of workers unemployed and affected millions of families. The government has provided $40 in wage support for unemployed workers.
Meanwhile, Better Factories Cambodia (BFC) has launched a hotline to provide information to workers in the garment, footwear, travel goods and bag industries regarding measures that help prevent the spread of COVID-19. The hotline, part of the ‘COVID-19: Worker Safety’ programme, uses interactive voice response (IVR) technology.
The contents of the service are derived from guidelines and recommendations from the World Health Organisation and the ministry of health and will be regularly updated in line with the latest official advice.
Apparel store sales from January to November in the US were 7 per cent higher compared to the same period in 2021 however, but due to high inflation, volume growth was limited. At the same time home furnishings store sales are witnessing stagnancy and have seen muted growth of only 1 per cent in the same period, says Wazir Advisor’s November report ‘Apparel Trade Scenario in Key Global Markets and India’ focusing on apparel consumption and import data of the US, EU and Japan and exports stats for India shows.
With lower base value apparel store sales in the UK from Jan to Nov were 21 per cent higher than 2021, as demand in 2021 did not recover to pre-covid levels. Same holds true for apparel imports data from Jan to Aug, which is 19 per cent higher than last year, but the base (2021 data) is quite low. For EU, apparel imports from Jan to Oct have grown 41 per cent over the same period last year, again a reasonable explanation is the lower base value from the same period in 2021. In Japan’s case, apparel imports from Jan to Sep have grown merely 5 per cent in 2022 compared with the values in the same period last year.
For India however, the good news is apparel exports have started to recover from the decline in last quarter. The export value in Nov 2022 is 9 per cent higher than in the same period last year.
Key highlights of US market
Nov 2022, US monthly apparel store sales are estimated to be $18.7 bn which is 7 per cent less than Nov 2021. On YTD basis, the sales are 7 per cent higher than in 2021. Apparel inflation has remained in the range 5.5 to 8 per cent during 2022, indicating nil to negative volume growth, the report shows. In Q3 2022, online sales of clothing and accessories registered a growth of 9 per cent over Q2 2021 but it was marginally lower than Q2 2022 sales.
Store sales of home furnishing in Nov 2022, were estimated at $5.6 bn, an 8 per cent drop compared to Nov 2021 sales. On YTD basis the sales are only 1 per cent higher than 2021.
US Consumer Confidence Index declined to 100.2 from in Nov compared to 102.2 in Oct 2022. The index is on a constant decline for several months considering high inflation and recession.
Apparel import in Oct 2022 was $8.2 bn which is 1 per cent less than in Oct 2021. On YTD basis, the imports are 30 per cent higher than in 2021. China’s share in the US market has dropped 8 per cent since 2019, comparatively Vietnam and Bangladesh’s shares grown 2 and 3 per cent respectively. India on the other hand has seen its share rise merely 1 per cent since 2019.
China, Bangladesh market share increase in UK, EU
In Nov 2022, UK’s monthly apparel store sales were £4.1 bn, 3 per cent higher than in Nov 2021. On YTD basis, the sales are 21 per cent higher than 2021. High growth is mainly on account of low base value. Apparel imports in August 2022 were around 15 per cent higher compared to Aug 2021. On YTD basis, imports in 2022 are 19 per cent higher than 2021 but still below 2019 values.
In terms of market share in the UK, China, Bangladesh and Turkey have seen a growth by 5, 4 and 3 per cent respectively, since 2019.
EU apparel imports in Oct 2022 were 32 per cent higher compared to in Oct 2021. On YTD basis, imports in 2022 are 41 per cent higher than 2021. The high growth is mainly because of high price inflation and low base value. Country wise market share of China has increased 1 per cent whereas Bangladesh’s share has increased by 3 per cent since 2019.
In Japan also China’s share fall
Japanese apparel imports have been on the rise as well. Import figures in Sep 2022 was $2.7 bn a good 7 per cent higher than Sep 2021. On YTD basis, imports in 2022 are 5 per cent higher than last year.
The country’s apparel imports from Bangladesh’s and Cambodia’s increased 1 per cent each, however China’s share declined 1 per cent compared to 2019.
India’s apparel exports revive in Nov
India’s Nov 2022 apparel export was 9 per cent higher than in Nov 2021. On YTD basis exports are 10 per cent higher than in 2021 but considering high
inflation level, there is nil to minimal volume growth over 2019. Country wise, US’ share increased 8 per cent, whereas UAE’s and UK’s share declined 3 and 1 per cent, respectively since 2019.
Apparel companies are directing resources toward digital platforms in order to better engage with customers, accelerating fleet optimization initiative, augmenting supply chain and concentrating on improving financial flexibility. They are also focusing on superior product strategy to resonate well with customers and advancing omni-channel capabilities.
The Children's Place, Inc has been making investments to upgrade its omni-channel capabilities as part of its digital transformation strategy .The company has enabled ship-from-store capabilities in roughly 85 per cent of its US stores, which more than doubled its daily shipping capacity. Its e-commerce sales rose 12.2 per cent during first-quarter fiscal 2020, and represented approximately 53 per cent of total net sales, as online sales accelerated following the closure of store effective Mar 18.
The Gap, Inc leveraged its omni-channel capabilities to cater to customers’ demand online, at a time when its stores were temporary closed. This Zacks Rank #3 company witnessed a 13per cent year-over-year increase in online sales in first-quarter fiscal 2020. Moreover, the company recorded online sales growth of 40 per cent in April. Last month, the company registered more than 100 per cent growth in online sales.
American Eagle Outfitters, Inc reported a 33 per cent increase in digital demand, as measured by ordered sales. Its digital demand surged by 75 per cent at Aerie and 15 per cent at AE. The company introduced curbside pickup with re opening of stores. The company is enhancing digital capabilities, strengthening inventory management and reassessing store fleet to position itself for a new future of retail industry.
The Centre plans to allow export of nearly five million personal protective equipment (PPE) suits a month as India is making these suits in surplus quantities. However, government officials added manufacturers will have to comply with international standards and acquire all required certifications to make sure their products are up to the mark.
The textile industry has been seeking permission for the exports of these suits citing PPE surpluses in the country and losses it has suffered because of the pandemic. Exports of these suits were stopped on January 31. The Directorate General of Foreign Trade (DGFT) recently lifted the ban on various kinds of cloth masks that were prohibited in March. Government officials maintain that the ban on medical equipment is also likely to be lifted soon.
South India Mills Association President K Selvaraju said there is no market presently for garments or knitwear and that textile companies have been requesting the government to allow them to export PPE kits. He added they have reached a point where they can produce nearly 10 million kits a month.
The Lycra Company, a global leader in developing innovative fiber and technology solutions for the apparel industry, will showcase innovative stretch denim solutions and sustainability initiatives at the Kingpins24 digital event for the Fall 21 Denim season that will be held from June 23-24. The company will use the Kingpins event to promote its EcoMade family of fibers featuring pre- and post-consumer recycled content that offer the same high-quality performance as their original offerings. The event will feature a lineup of live streamed webinars, interviews, panels, informal conversations and more, plus a robust library of on-demand content.
In a session titled ‘Resetting for Growth with The LYCRA Company,’ Julien Born, President of Apparel, will speak with journalist Alison Nieder about the company’s response to COVID-19 and how sustainability, innovation and collaboration continue to fuel its future. Rita Ratskoff, Senior Strategic Account Manager, North America, The LYCRA Company, will join Mark Ix, Director of North America Marketing for Advance Denim, for a conversation titled, ‘Collaboration is Key to Business Success.’ Ratskoff and Ix will discuss the benefits of partnership and how innovations like LYCRA ® dualFX ® have helped drive Advance Denim’s growth.
Additionally, video content on The LYCRA Company’s Planet Agenda Sustainability platform and current denim innovations will be available for on-demand viewing during the Kingpins24 show and until July 7, 2020.
In its latest report, the World Trade Organization (WTO) has stated least developed countries like Bangladesh could witness a significant fall in their export earnings this year. The report attributed this mainly to these countries’ dependence on a limited number of markets (export destinations) and product categories. Five principal markets of Bangladesh including the US, France, UK, Spain and Germany have been severely impacted by Coronavirus, which could have an adverse bearing on the country’s export receipts in 2020.
As per reports, Germany accounts for around 15.1 per cent of Bangladesh’s total exports with US following with 13.8 per cent share, Spain 7 per cent, France 6.8 per cent and UK 8.1 per cent. The COVID-19 pandemic also threatens to derail the LDCs hard-won development gains as supply chain disruption and declining demands weigh against their exports; especially the textile and apparel exports.
Also, brands and retailers in these export destinations have already started to file for bankruptcy protection, which could further complicate the suppliers’ problems from the LDCs as the contracts that have been signed already now run the risk of getting cancelled.
US department of agriculture (USDA) estimates world cotton mill use to plunge nearly 15 per cent year-on-year in marketing year 2019. Cotton mill use generally follows global economic activity. When the world economy weakens— as during the COVID-19 pandemic—consumers often defer purchases of items such as clothing, and the associated industries adjust their operations accordingly. For the textile and apparel industry, these adjustments have included temporary closures or substantial reductions in manufacturing operations as postponement or cancellation of orders have had ripple effects throughout the entire supply chain, from raw fiber procurement to retail sales, said the Economic Research Service of the USDA in its 'Cotton and Wool Outlook' report for June 2020.
COVID-19 and developing global economic slowdown has significantly reduced recent USDA monthly forecasts for world cotton demand for marketing year ’19. Based on USDA’s June 2020 forecast, marketing year 2019 global cotton mill use is estimated at a 16-year low.
Global cotton mill use has declined by over 5 per cent year-over-year in only 10 other years since MY 1920, with most of those reductions associated with global recessions, including the Great Depression. More recently, uncertainty surrounding the global financial crisis significantly limited world cotton demand in marketing year 2008, while a dramatic run-up in marketing year 2010 cotton prices to levels not experienced since the US Civil War hampered mill use in marketing year 2011.
Unable to reach an agreement with the banks, French men’s wear brand Celio has decided to place its holding company Celio International and its French subsidiary Celio France under judicial protection. The Corona crisis has caused €100 million sales loss for the brand as around 1585 of its stores remained closed for almost two months. However, its other foreign activities, including the thirty Belgian stores, are not affected by the measure.
Catering primarily to the Continental European market, Celio aims to provide fashionable men’s clothing. Most of the brand’s stores are located in shopping centers, with a smaller percentage to be found in the shopping districts of cities and large suburbs. With establishments in 56 countries on 6 continents, Celio has around 1,000 points of sales.
