FW
Due to the economic situation caused by the global pandemic and travel restrictions, Messe Frankfurt has jointly decided with the German Textile Cleaning Association and the VDMA Textile Care, Fabric and Leather Technologies to postpone Texcare International to November 2021. The event will now be held from November 27 to December 1, 2021 in Frankfurt am Main.
In November 2021 Texcare, a leading international technology fair, will offer manufacturers of plant and machinery an outstanding and eagerly awaited platform to position the textile-care industry, together with its customers from all over the world, to cope as well as possible with the challenges of the future following the Corona crisis.
Texcare International is held every four years in Frankfurt am Main and, in its regular rotation, reflects the innovation cycle of the industry. It is the leading international trade fair for textile care, with a high degree of international participation, both among exhibitors and visitors. As a provider of innovations and incentives for the international textile-care business, it is a venue which cannot be missed.
The crisis caused by the Covid-19 pandemic is compelling long-established and internationally renowned Parisian trade show Tranoï to reinvent itself at very short notice. Boris Provost, who has been in charge of the event and its staff of 17 since September 2019, is currently busy seeking new financial partners. On April 15, Provost applied for and was granted a protection procedure for the company, allowing its debts to be frozen.
He also emphasised that the transformation projects he began to implement at Tranoï are still on the cards. Filing for court protection was simply necessary for the company to turn the corner.
A year ago, Armand Hadida and Patrick Lecêtre (Tranoï’s shareholders, together with the HLD group), asked Provost to lead a change in company governance and to reposition Tranoï on the market. It was this challenge that prompted him to come on board. The company’s transformation led to exit of Hadida and Lecêtre in the next two to four years.
Tranoi is therefor,e seeking new investors. It is currently negotiating with everyone from French and international trade show organizers, to digital companies, which could contribute useful tech expertise, to investment funds in a variety of shapes and sizes. Its vision is to team up with partners for the medium and long term, with men and women keen to get involved and whose know-how is complementary to that of our existing staff, so that we can collectively transform our services in order to ensure a return on our clients’ investments.
Comparable sales of US-based retailer Target Corporation grew by 10.8 per cent in the first-quarter FY 2020 as customers made fewer but bigger shopping trips. On the other hand, there was a huge jump in the retailer’s digital comparable sales, which grew by 141 per cent. Digital comparable sales accelerated every month in the quarter, from 33 per cent in February to 282 per cent in April.
Its total revenue of $ 19.6 billion grew 11.3 per cent compared to last year. The retailer saw healthy market-share gains across all five of its core merchandise categories. Target’s positive results are a good sign for Indian home furnishing manufacturers as there are many companies in India, which are supplying textile products (soft goods) to the retailer.
The Cotton Corporation of India (CCI) has procured a record 92 lakh bales from cotton growing regions across the country .The total procurement by CCI is valued at around Rs 25,000 crore. CCI had purchased a record 90 lakh bales in the year 2008, which was again a national record, she said.
Of the total crop of 360 lakh bales, around 297-300 lakh bales have arrived in the market so far. Farmers have another 60 lakh bales remaining with them of which 25 lakh bales are likely to arrive in the market. Of this, CCI is likely to procure around 10 lakh bales. Currently, CCI is procuring some 45000 bales a day.
The cotton procured so far has been purchased from farmers in Gujarat, Maharashtra, Haryana, Telangana and Punjab. The season in Tamil Nadu has just begun and will continue till September 30.
The minimum support price for the medium-staple variety of cotton is Rs 5,255 per quintal and that for the long staple one is Rs 5,550 per quintal this year. The Cotton Association of India has pegged 2019-20 crop at 354.5 lakh bales, compared with 312 lakh bales last year.
In Maharashtra, CCI is procuring about 15,000 bales a day. However, the state government has now threatened action against cotton ginners for keeping their units shut and not cooperating with the state cotton federation and the corporation. CCI had suspended cotton procurement during the lockdown and restarted operations from May 3.
With the pandemic and social isolation, Abit (Brazilian Association of the Textile and Clothing Industry) launched ‘Tamo Junto’ (We Are Together) campaign, which calls on brands to encourage consumers to buy 100 per cent national products. The Brazilian textile industry is one of the most representative in the world and the largest complete chain in the West. It ranges from plantation inputs to products that are ready for the national and international market. In 2019 alone, the sector generated $48 billion.
Many companies have worked to publicize and improve domestic production and boost domestic consumption not only during the pandemic, but also in the future. The Lunelli Group, which developed the ‘Conscious Consumptiom’ campaign, also spoke in favor of Brazilian fashion. Without being able to physically serve customers, Brazilian brands have also invested in online content, either for the benefit of consumers or to promote products and make themselves visible.
For example, Colcci relied on its famous models to connect with consumers and created Lives on Instagram with names like the famous Brazilian actor Cauã Reymond. Lunelli Group shares recipe tips with followers on Instagram, while Círculo publishes videos on YouTube with crochet tips to make at home.
Still online, companies are taking a closer look at their sales platforms in social media. For example, EcoSimple has understood that this trend is now getting stronger and is developing an e-commerce platform.
Despite the challenges faced by the company due to COVID-19, Coats Digital, the world’s largest manufacturer and distributor of sewing thread is confident of dealing with the virus impact as it has a strong balance sheet with comfortable liquidity.
The management of the company reported a 40 per cent decline in operational costs in the second quarter compared to the same period in 2019, helped by lower activity levels and cash-saving actions. Its last month’s numbers led to a 17 per cent reduction in sales for the period 1 January to 30 April compared to the prior year.
The company also reported a 23 per cent decline in demand for apparel and footwear as fashion companies cut back spending amid widespread Coronavirus uncertainty. Many brands and manufacturers cancelled their orders or deferred orders from mid-March, which significantly impacted demand in April. This hit some of its largest apparel and footwear markets.
Benefiting from its recent acquisition of Pharr HP, the group’s performance in materials division was more resilient. Though its organic sales declined by 12 per cent year-on-year, Pharr’s contribution led to a 6 per cent increase in overall sales.
Kohl’s Corporation, a leading omnichannel retailer, reported 40.6 per cent decline in its first revenue decline to $2.4 billion compared to the revenue of $4.0 billion in same period prior year. The company reported a net loss of $541 million during the quarter compared to net income of $62 million in Q1 FY19.
Its selling, general and administrative expenses were $1.0 billion as against $1.2 billion in Q1 FY19. Operating loss were $718 million compared to operating income of $118 million.
The company recently reopened about 50 per cent of its stores across the country. In doing so, it has taken special care to equip its stores with the latest health and safety measures
The board of directors at Hanes Brands has declared a regular quarterly cash dividend of 15 cents per share to be paid June 9, 2020, to stockholders of record at the close of business May 19, 2020. The Winston-Salem-based global marketer of everyday basic apparel under world-class brands has returned more than $1.2 billion in quarterly cash dividends to stockholders since initiating its program in April 2013.
The declared cash dividend will be the 29th consecutive quarterly return of cash to stockholders. The announcement comes on the heels of the company’s first-quarter 2020 earnings report, in which it estimated the late-quarter impact of Covid-19 reduced revenue by approximately $181 million, and operating profit by some $86 million. For the quarter ended March 28, 2020, net sales were $1.32 billion compared to $1.59 billion a year ago.
The brand’s first quarter 2019 included net sales of $94 million from the now exited C9 Champion mass program and the DKNY intimate apparel license. Excluding the exited programs, the impact of COVID-19 and foreign exchange rates, total constant-currency net sales for the first-quarter 2020 would have increased 1.6 per cent.
Because of disruptions to retailer operations and the unpredictability of consumer confidence, Hanes Brands’ pandemic response is focused on serving channels of trade that are generating sales, preserving cash and enhancing liquidity, and developing a product line of personal protective garments including face masks to meet emerging commercial and consumer demand.
India has refused to agree to permanent tariff concessions on health and farm products at the World Trade Organisation as an answer to COVID-19 trade disruptions proposed by some member countries, mostly rich. Further, it has argued that the proposal may be a ploy to gain additional market access.
At a recent meeting of the WTO’s General Council to exchange views on the economic and trade impact of the pandemic, New Delhi argued that developing countries needed to continue protecting their nascent industries.
Australia, New Zealand, Singapore, Canada, Chile and Brunei had come up with a joint statement a few weeks earlier against the imposition of export controls, or tariff and non-tariff barriers. They also opposed the removing of any existing trade restrictive measures on essential goods, especially medical supplies, amid the battle against Covid-19. Developing countries seeking to shore up manufacturing capacity in medical products will require tariff protection for their nascent domestic industry. Further, job losses in many service sectors have to be compensated elsewhere. Therefore, India, like many other developing countries, cannot agree to permanent tariff concessions, and a dilution of the tariff bindings that iit has paid for.
In its first webinar organised in early-April, IMD Business School discussed the impact of COVID-19 on the luxury industry. The discussion highlighted, the crisis is likely to accelerate changes that were already unfolding within the industry. The webinar focused on five inflection points that would lead to a break with past practices and confirmation to new ones. One of the inferences was that luxury firms that pinpoint these new trends early and shift their focus towards them will emerge stronger from the crisis.
Tighten supply chains, manage inventories
The crisis has left countries across the world vulnerable to the breakdown of global supply chains. Traditionally, luxury has relied on global supply chains. In fashion, luxury brands have off-shored to low-cost countries even if it violates its claims of heritage-based origins.
However, now this may change as people may prefer to buy locally-made products, particularly those in the luxury category. Westerners might demand drastic changes in 
the way their countries operate which may lead to new laws for reshoring important chunks of supply chains.
To deal with these changes effectively, luxury goods players would need to tighten their link with their place of origin and start keeping buffer inventories in each region or even country. They would also have to make new strategies to enable global luxury brands orchestrate portfolios of local luxury brands.
A more fragmented international environment that COVID 19 might also change the relationships between Western luxury and China. If important chunks of supply chain exit China the Chinese export sector would take a hit. This would weaken the demand for luxury products in the country and give rise to a new economic nationalism as China would prefer to buy from local luxury brands such as NIO, Mao Geping and Erdos. Western brands would then have to adopt a more local strategy and buy from local actors.
Another change that would come is the digitisation of fashion events which according to Achim Berg, Global Leader, Apparel, Fashion & Luxury group at McKinsey & Company may make bi-annual fashion shows a thing of the past. He believes, fewer buyers will be willing to fly to attend fashion shows in the post-pandemic era of economic privation. This will lead to a break in collection seasonality as was witnessed recently with Italian heritage brand Moncler Genius
Additionally, millennials may shift their attention to a more durable, less ephemeral take on luxury in the coming recession. The most recent brand to adopt this trend is the menswear brand Armani.
Focus on authenticity
Post COVID-19, Chinese luxury brands will realize that their growth is not guaranteed as the present generation might not be better off than the previous one. Therefore, these brands will have to focus on experiences, storytelling around purpose and values, heritage and authenticity to remain relevant to their newly discerning customers.
Many prominent brands are likely to recede as consumers will stay away from conspicuous consumption. This will bring the creativity of the brand to the fore. The displacement of logos would also weaken counterfeiters.
Berg feels, the crisis might lead to consumers suddenly embracing circular economies. Companies like Panoply may suddenly take off as people might have more time to go through their closets. Thus, circularity might become a new source of revenue and partnership opportunities.
Agility to improve resilience
In this highly uncertain environment it is important for brands to be agile. Embracing business agility by breaking with traditional organizing and leadership styles will help these brands to be more resilient. They would be able to manage more diversity so that when uncertainty strikes, they have more options to bounce back.
Business agility also helps fashion brands to shift their, resources, stocks and inventories more rapidly. It accelerates their decision making capacity and enhances customer centricity. Business agility also mobilises the collective energies employees hence post-COVID-19, we could expect a decisive shift towards business agility across luxury industries.
