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According to data analytics firm, GlobalData, around 16 per cent of UK consumers plan to spend time shopping for non-food items, with over two-thirds looking forward to purchasing apparel post lifting of the lockdown, as they anticipate more social activities and buy into new season trends.
GlobalData’s monthly survey of 2,000 nationally representative UK consumers conducted in May found one of the biggest difficulties to be encountered across the clothing sector is the concern regarding fitting rooms, with the government stating that shoppers should not be allowed to try on items in store due to hygiene issues.
As fit and comfort are integral factors when buying new clothing items, this is likely to be a put-off, and may become a barrier to purchase, GlobalData thinks.
Therefore, retailers operating within this sector must identify innovative solutions, such as augmented reality mirrors, or virtual catwalks via their apps, to ease the shopping process and provide more inspiration for consumers.
With about 95 per cent of stores still closed due to the pandemic, the Children's Place plans to close 300 of its stores in malls by the start of 2022. The retailer's mall-based portfolio will represent less than 25 per cent of its total revenue, CEO Jane Elfers said.
The brand will close 100 stores by the end of the second quarter of the total 200 closures this year, and another 100 set to close in 2021. About half of the first set of closures will take place in the next month and a half, with most of them expected to open briefly for liquidation sales.
The company reported a 38 per cent decline in its first quarter net sales. The retailer swung to a $114.8 million loss from $4.5 million in net income a year ago, with a gross loss of $19.7 million from gross profit of $152 million last year. That was a 990-basis point downswing to 26.8 per cent of net sales, primarily due to the higher costs of e-commerce fulfillment, along with the fixed expenses of closed stores.
Première Vision Paris will be held as per schedule from September 15 to 17 at the Parc des Expositions de Paris Nord Villepinte. However, the physical show will be supplemented with a digital show providing exhibitors with greater visibility across the globe. In addition, the physical show will meet all required government health protocols through the use of digital badges, disinfectant gel and masks, and an updated, spacious layout for social distancing procedures.
The show will also include its B2B e-commerce platform launched in 2018, which will feature Fall/Winter 2021-2022 collections and online business discussions in preparation for show visits. It would also feature a denim village at the marquee event to supplement the May Denim PV show that was forced to cancel.
The digital show will include a program of content, services and digital tools to support the creative fashion industry and address the strategic questions on how to move forward through the unprecedented times.
According to Rubina Haq, President of the BGMEA, Bangladesh’s garment exports may plummet almost 40 per cent in the next few months as the retail market in the country is yet to rebound. The impact of the COVID-19 on consumers’ behavior is still unknown and factories in the country are still struggling with cash flow and credits to make a turnaround.
Export Promotion Bureau (EPB) revealed that Bangladesh’s export earnings from knitwear garments declined by 5.17 per cent to $1.89 billion during July-May of FY 2019-20.
Similarly, the exports of woven products by the country declined by 14.31 per cent while its overall exports declined by 14.08 per cent compared to the last financial year. Huq further revealed inflow of new orders has also declined by 45 per cent compared to last year.
The three-month pandemic has led to a 90 per cent drop in production utilization causing 50 per cent of textile factories in Indonesia to permanently close in September. The Indonesian Textile Association (API) revealed the utilization of large industrial production is only 10 per cent remaining. This is lowering the industry financial condition to run low. API estimates the industry to last only until next September.
The pandemic had launched export markets and domestic products. As a national strategic industry that requires a large workforce, this industry needs serious attention from the government. Therefore, in order to ease business, some entrepreneurs have asked for the assistance in the form of easy banking loans, postponed payment of electricity tariffs during April-September and provided Corporate Tax PPH tax relief for 2020.
Since production in China has been disrupted, the Association noted around 17 containers of textile products coming from China. This number has increased with illegal smuggling. Some of the products are finished goods, so it is increasingly difficult for domestic industries to sell goods. This condition is exacerbated by the sluggish demand for textile products.
China is the largest exporter of textiles and textile products (TPT) to Indonesia. In 2018, the volume of TPT imports from China reached 4.392 tonne.
British luxury fashion brand Mulberry plans to reduce employee count by nearly a quarter across its global business. Most of the brand’s stores were closed since March 24. However, it has now reopened some of its stores in China, South Korea, and parts of Europe and Canada. Restructuring of workforce is another dent in what was supposed to be a big year ahead of Mulberry’s 50th anniversary in 2021, in preparation for which it had considered moving more of its manufacturing to the UK as part of a sustainability push.
The brand reported a net loss of £10m in the six months to September 2019 on sales of £69m. International revenues, led by Asia, grew in the double digits, but were offset by a 4 per cent decline in the UK. However, Mulberry continues to conduct business in all markets through its digital channels. So far, its digital sales performance has been good though it cannot fully offset the fall in demand witnessed from store closures.
The Bangladesh government plans to increase tax rate at source on exporters’ earnings to 0.5 per cent tax from the existing 0.25 per cent. The government has also extended the existing corporate tax benefits for garment and knitwear for another two years to 2022 after it expires on June 30.
Apparel manufacturers in the country currently enjoy 12 per cent corporate tax on incomes, nearly a third of the current corporate tax of 35 per cent for non-listed companies. According to recent media reports, the export earnings of these manufacturers declined by 18 per cent year on year to $31 billion in July-May of the current fiscal over figures during the same period in the previous fiscal.
However, their shipments trebled to nearly $1.5 billion in May from just over half a billion in April this year, according to Export Promotion Bureau data.
Though the income tax law in the country stipulates that exporters pay a 1 per cent source tax on the proceeds of their exports, the National Board of Revenue (NBR) cut the rate on several occasions during the past two years in the face of demands from exporters.
Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), has demanded the same facilities as the readymade garment (RMG) industry in the proposed budget for FY20-21, urging the government to reduce the corporate tax rate to 12 per cent. Currently, the apparel sector pays 12 per cent corporate tax, while accessories and packaging makers make 35 per cent tax. This backward linkage industry for the apparel sector also urged the government to keep source taxes unchanged at 0.25 per cent instead of the proposed 0.5 per cent for FY20-21.
According to BGAPMEA data, there are about 1,700 small and medium accessories and packaging makers, who are capable of providing 95 per cent supply of accessories products to the country’s $34 billion apparel industry and other export oriented packing industries, including frozen foods and pharmaceuticals.
Though the government has announced a 1 per cent cash incentive in the proposed budget, the RMG's backward linkage industry is not getting it.. BGAPMEA also urged the government to include the sector for cash incentives as it exports its goods directly as part and parcel of exports themselves.
In the last fiscal year, the sector contributed over $7.5 billion to the exports of the apparel sector, of which nearly $1 billion came from the direct export of accessories goods.
With the 127th China Import and Export Fair (Canton Fair), an international trade fair, just a few days away, several online events were held for global buyers at multiple locations.
Welcoming business associations, buyers and entrepreneurs from Africa, Germany, and other "Belt and Road" initiative countries, these online events not only aim to facilitate better communications between buyers and sellers but also create a channel for global partners and companies in the post-Covid-19 era.
The online introduction events connecting traders in South Africa, Kenya and Egypt attracted more than 150 buyers and company representatives across Africa. Egypt is also looking forward to the first virtual Canton Fair that will bring more business possibilities to African businesses, said Alaa Ezz, first under secretary of state of the Egyptian chamber of commerce and industry..
Africa is also an essential source of buyers for the Canton Fair, with the number of importers from the region standing at more than 15,000 every year. The trade volume of Central Africa has also achieved a record high in 2019, totalling $20,87 billion, a 2.2 per cent increase year-on-year.
Cone Denim® has launched its Pride Selvage Denim in honor of Pride Month. Pride Denim is the newest fabric in the Cone® Community Collection to show Cone’s support of a wider and more inclusive community. Cone will donate a portion of proceeds from the sale of its Pride fabric and accessories to the HRC Human Rights Campaign whose work focuses on achieving equality for the LGBTQ Community.
The Cone® Community Collection fabrics are designed with neutrality in mind and are perfect for both Men’s and Women’s collections. These limited edition fabrics have a timeless authentic character and a brilliant optimistic indigo shade with just the right stretch for comfort. The Pride Denim incorporates the rainbow colors of the Pride flag into the selvage of the fabric.”
Pride Denim fabric and accessories made with the special denim are available on the White Oak Shop. Accessory items include a large tote bag, wallet and travel kit, all crafted using the unique rainbow colored selvage. Smaller quantities of Pride denim fabric are also available on the Shop. Larger volumes of Pride Denim are available for order through a Cone Denim sales representative.
