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Jeanologia is launched a new technology solution MissionZero to encourage all textile industry stakeholders to dehydrate and detoxify jeans industry by 2025. The solutions were developed by building an ecosystem of collaborators and helping them produce with zero water and zero discharge.
This disruptive laser and eco technology enables brands to increase productivity, reduce water and energy consumption, while eliminating contaminated waste and harmful emissions, guaranteeing zero pollution.
Jeanologia’s vision is to be the vehicle for transforming our world, generating a positive impact in society through a new way of doing business where the end objective is not focused purely on profit.
To do so, last year it started an ecological income statement through which it measures cubic metres of contaminated water that, thanks to its technology and services, do not go into our rivers and seas. It is Europe’s first company to deliver an income statement of this type.
In wake of the worldwide pandemic outbreak of Covid 19, resulting in thousands of stores getting closed across the world; Bangladesh is facing a very glooming future. Brands and buyers are cancelling their orders. Buyers and brands are avoiding responsibility towards their business orders as they themselves are facing disastrous situation.
Reports suggest, business orders worth Tk 20,000 - 25,000 crore ($2.36-2.4 billion) are expected tp be cancelled. This is the amount of projected value of goods that are in port, onboard and in production for delivery. In the same way, another Tk 20-25 million worth of cloth fabrics is stitched or has been cut for stitching. Another Tk 250-300 million worth of fabrics has been ordered to different suppliers whose value has already been paid from the bank. That is how, Bangladesh industry now already owes worth billion of Taka in this phase.
Bangladeshi manufacturers are scared, if the present crisis stretches further then most of the manufacturers will not have the money even to pay their electricity bills. And they are worried about expenses to meet ahead of Eid festivity for their workers, if things don’t improve.
Due to COVID-19, luxury brand Kering expects a 15 per cent decrease in its comparable sales in the first quarter of 2020, which ends on March 31. This decline would translate into a decrease of 13-14 per cent of its reported sales. The brand achieved an excellent first quarter in fiscal 2019, posting year-over-year increases of 21.9 per cent in reported sales and 17.5 per cent in comparable sales. Kering's revenues in Q1 2019 totaled €3.785 billion. Its quarterly revenues are expected to decline by around €550 million to €3.2 billion crisis.
The situation may impact its business during the entire first quarter, and also the second quarter of 2020. The company has implemented an initial action plan aimed at adapting its cost base and containing its working capital requirement. It is also considering additional measures that can be activated to mitigate the dilution of its recurring operating margin throughout the year, while protecting its houses’ market positions and preserving their growth potential and capacity to bounce back in the short and medium term.
In a recent meeting with local buying offices of foreign brands, leaders from the BGMEA said no confirmed placed orders should be cancelled. For brands that would like to postpone orders, it directed them to partly pay for goods so that the factories would have funds to pay workers. In its own concession to aid brands and retailers, BGMEA said factories would be willing to hold the goods until companies are ready to take them.
Brands and retailers in Bangladesh have been pulling back production orders as they face shrinking demand and closed stores that can’t currently benefit from shipments of new product. In the last one week, an estimated $100 million in orders have been cancelled in Bangladesh,
These brands and retailers are asking vendors to outline what fabric is ready for production and what isn’t, and cancelling orders for the latter. In some cases, they’ve agreed to delay use of the fabric, and in others, they’re washing their hands of it entirely. They are also asking for discounts on previously placed orders.
Some buyers are asking their Bangladesh suppliers if they can pay for the products they are taking 30 days later than when the would have. In some cases, they want to make their payments to manufacturers—who already face cash flow challenges—even further out than that.
Brands and retailers are reducing their production receipts by as much as 75 percent through July, or in some cases, through August. And despite corporate social responsibility efforts and aims, most companies have been focused on saving themselves as times get tough amid the COVID-19 pandemic, over considering the well-being of the workers who have been making the clothes to drive their earlier successes.
Zahid Mazhar, Chairman – All Pakistan Textile Mills Association, Sindh-Balochistan Region has demanded drastic measures to save export oriented textile industry from the negative economic impact of Novel Coronavirus (COVID-19) as since its outbreak in mid-December 2019, has caused turmoil in the world’s second-largest economy, China, with a trickle-down effect on nearly all big economies including those of the European Union, United States, Japan and South Korea.
Mazhar stressed the need for taking immediate steps by the Government of Imran Khan to address the major issues of the industry and exporters specially the liquidity problem otherwise all the measures taken by them for reduction in current account deficit would go in vein. He demanded the government to release the backlog of sales tax refunds including deferred sales tax refund and payment of outstanding DDTO/DLTL as this is the money that belongs to the business and should speedily be returned to help uninterrupted operation of the industry enabling to sustain employment and exports. He said that immediate payment of all refund and rebates is necessary due to delay in receipt of payment from domestic as well as international buyers in addition to cancellation of export orders even from big organisations and large scale buying houses and drastic slowdown in domestic market.
He said that the present situation needs special attention of the government to address problems of the trade and industry atleast for the period the recession would sustain due to Coronavirus. He demanded the government to restore SRO 1125(I)/2011 dated 31st December 2011 to provide relief to the five export oriented industries so that they may survive, play their role in the economic development of the country and earn much needed foreign exchange which is the need of the hour.
Mazhar also commented on reduction in discount rate by 75 basis points by State Bank of Pakistan said that it is too little and too late. He said that the discount rate in the regional competing countries lies between 4% to 8%, while discount rate has been reduced by United States of America to Zero Percent, Britain to 0.25 percent in sharp contrast with the present discount rate in Pakistan which is 12.5%. In this scenario how can Pakistani exporters compete with regional competitors in the international arena. He demanded Governor State Bank to further reduce discount rate by another 300 basis points so that Pakistani exporters may compete with their regional competitors. In addition to the above Government should also issue directives to the banks to liberally extend additional lines of working capital to spinners in order to survive and avoid immediate closure of spinning mills.
Government should also help the textile spinning industry by freezing utility bills both gas electricity for atleast two months so that the industry may operate without any interruption in these difficult times and also to avoid mass unemployment of the workers.
U.S. textile and nonwoven associations issued a joint statement urging federal, state and local governments to deem textile and nonwoven manufacturing facilities as “essential” when drafting “Shelter in Place” orders in response to the COVID-19 crisis.
These associations have demanded great clarity and assurance from the administration and state and local authorities for its companies and employees and demanded a clear exclusion of its manufacturing operations from “Shelter in Place” orders as the textile and nonwoven products that it make in the U.S. play an essential role in mitigating the shortages of critical supplies. Such a designation will help them to avoid disruptions of vital goods and services during this challenging time.
The associations recognise the serious challenges its elected officials, health administrators and others face when issuing orders to protect communities across the country and it understands the necessity for leaders to enforce a ‘Shelter in Place” order or quarantine orders.
Its members make a broad range of inputs and finished products used in an array of personal protective equipment (PPE) and medical nonwoven/textile supplies, including surgical gowns, face masks, antibacterial wipes, lab coats, blood pressure cuffs, cotton swabs and hazmat suits. These items are vital to the government’s effort to ramp up emergency production of these critical supplies.
In the overall gloomy situation due to the COVID-19 outbreak, Gujarat-based yarn manufacturers are seeing fresh inquiries from Chinese importers. Over the past two months, nearly 120 spinning mills across Gujarat have been passing through a tough period in the wake of sluggish international as well as domestic demands, said Bharat Boghara, chairman of Spinners Association of Gujarat (SAG).
According to him, the price of 30 counts cotton yarn was around Rs 205 per kg a couple of months back, which has come down to almost Rs190 to Rs 195 in the export market. Ishwarbhai Ghelani, Board Member of SAG says not only Chinese inquiries but domestic demand has also spurred slightly, which is encouraging for yarn makers in Gujarat and other parts of the country. Hopefully, in the coming one or two months everything will be normalised as the magnitude of the pandemic has reportedly reduced in China.
Cotton trouser imports by the US dropped 11.65 per cent in volume terms in January 2020. The fall in value terms was roughly also by the same per cent. Bangladesh’s cotton trouser exports to the US grew by 9.92 per cent in value terms and by 3.69 per cent in volume terms. China’s export volume fell by 32.95 per cent and export value plunged by 47.69 per cent. China slid to third rank in the list, allowing Bangladesh and Vietnam to overtake it and become top two exporters of cotton trousers to the US. Cambodia also noted an unprecedented growth of 20.54 per cent amid a global slowdown caused by the coronavirus since January. As far as India’s export in the cotton trouser segment is concerned, the country failed to start 2020 on a positive note and slumped by 10.68 per cent.
American apparel imports in January 2020 fell 11.19 per cent in value and 10.72 per cent in volume. China’s apparel exports to the US fell 36 per cent. As China was the epicenter of the coronavirus, the country declared a lockdown in many provinces. This lockdown forced manufacturers to keep their factories closed. The New Year holidays also fell in January. Apparel shipments from Vietnam to the US increased 4.12 per cent.
Guess revenue increased by 2.6 per cent in 2019. Profit surged by 8.1 per cent. In Europe Guess grew by 13.2 per cent. But Guess saw revenue declines in Asia and the US.
The American fashion retailer closed 2019 with strong liquidity and a solid balance sheet, which positions it well to navigate through the current COVID-19 crisis. Guess has continued to manage inventories effectively. The brand has effected a five per cent reduction in global inventory versus last year and is on track to end the year with a decrease of inventory in the double-digit range. This is expected to have a significant long-term impact in its infrastructure and in its product capabilities regarding quality, speed and cost optimization. On product side, Guess made good progress with denim development and expanded product presentation in stores and online. The company has identified an opportunity to develop and leverage a single factory outlet line to serve North America and Europe instead of the two separate lines that operate today. Guess has adjusted its investment plans for the Asian region based on current trends and medium-term expectations. Plans are to partner with local celebrities and influencers, while leveraging social media platforms and livestreaming capabilities to market to consumers more effectively.
The EU has three different GSP schemes for beneficiary countries: General GSP, GSP+ and Everything But Arms (EBA). General GSP arrangement is applicable to low-income or lower-middle income countries which do not have other preferential access to the EU market. Under this arrangement, the EU grants partial or full removal of customs duties for products covered by around 66 per cent of tariff lines. GSP+ is a special incentive arrangement for sustainable development and good governance applicable to vulnerable low and lower-middle income countries. Vulnerability is assessed with respect to share of imports and economic diversification. The EBA arrangement is a special arrangement applicable to countries classified by the UN as least developed countries. Under EBA, the EU grants duty-free, quota-free access for all imported products except arms and ammunition.
Over 10 per cent of EU imports come from GSP beneficiary countries. The largest product sector to benefit from GSP is apparel and clothing, followed by footwear, mechanical appliances, fish products, leather and plastics. India is a GSP beneficiary with the largest share of overall imports into the EU (including non-preferential), followed by Vietnam, Nigeria, Bangladesh and Indonesia. Considering only preferential imports, Bangladesh is the EU’s number one GSP partner, closely followed by India, Indonesia, Vietnam and Pakistan.
