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Vietnam’s export turnover of garment and textile products in the first two months of 2020 was down 3.5 per cent year-on-year. Shipment of clothes was down 2.3 per cent. Shipment of yarn was down 16 per cent. At present, the supply of raw materials basically meets production demand in March and April. However, the sector is facing a lot of difficulties, as the world economy is affected seriously by the coronavirus disease, resulting in a decrease in global demand.
In the first nine months of 2019, Vietnam’s exports to the US jumped by 34.8 per cent year on year. The United States is Vietnam’s largest export market. Overall, Vietnam-US trade will likely to continue to increase. However, Vietnam will need to be more careful particularly for industries such as steel, footwear and agricultural products exports to the US that have been growing. If it does not, the United States is likely to impose countervailing duties on products that it deems to harm its domestic industries. Vietnam however, will have to be even more careful to deal with origin fraud and transshipment as this has been the source of US tariffs on Vietnam in the past. The tariffs were imposed to prevent steel products that originated from China attempting to bypass anti-dumping rules.
Victoria’s Secret, owned by L Brands, has witnessed a significant decline in sales since 2017 as consumers switched to other intimates brands promoting inclusivity and comfort. The company has employed many new strategies to get their customers back including re-entering the swimwear category, hiring its first transgender and plus size model and working with outside brands in collaborations. Nevertheless, Victoria’s Secret is still a market share leader in the intimates industry in the US and worldwide. If everything goes right, Victoria’s Secret’s shapewear might be a win-win situation for the brand’s image and the shapewear industry.
US-based Victoria’s Secret is an intimate apparel brand selling bras, pajamas, perfumes and other accessories. The retailer has for years faced criticisms for an out-of-date focus on sexy styles while competitors prioritized comfort. It canceled its once-annual fashion show as viewership increasingly shunned the provocative show. L Brands has been focused on diversification of its supply chain over the past five years. The company has been in negotiations with Chinese suppliers to take costs out of the production chain to offset the increase.
A new report by The Gaurdian states, the fashion market is belatedly responding to the growing problem of overconsumption as brands such as H&M and Zara have renewed their commitments to sustainability. John Lewis has introduced labelling to encourage a culture of handing down children’s clothes. Nudie Jeans has become a success, with organic products and stores that promote repair services and resale.
Fashion has also increased its accessibility to people. There is a discernible shift from discarding clothes to repairing, reusing or even renting them. Britain. Messages from public figures, such as the environmentalist Greta Thunberg, about not buying clothes is helping persuade people to turn their backs on fast fashion. As a new research reveals, 51 per cent of Britons are opting to purchase expensive but longer-lasting clothes rather than cheaper throwaway items, up from 33 per cent a year ago.
Taiwan Textile Federation, Taiwan’s textiles and apparel exports declined 9.0 per cent in 2019 compared to the previous year to reach $9.1 billion. It was the first decrease in exports in three years since 2016.
As a result of US-China trade friction and political turmoil in Hong Kong, exports sharply decreased to Mainland China and Hong Kong. The fact that Taiwanese companies in the upstream and middle-stream sectors have relocated their production to Vietnam and Indonesia is also a factor for the decrease.
Exports of fabrics decreased 6.0 per cent to $6.2 billion, while those of spun yarns decreased by 14.0 per cent to $1.4 billion. Textile fibers exports declined 25.0 per cent to $640 million.
In regard to the top five destinations, exports to Vietnam decreased by 2.0 per cent to $2.2 billion. Fabrics exports to the country decreased 1.0 per cent to $1.7 billion, while spun yarns grew 2.0 per cent to $241.0 million.
The number of sustainable shoppers in the UK has increased by a third in the last 12 months. Customers are increasingly mindful of fashion waste and the supply chain. Though women are more for it than men, over two-thirds of UK shoppers are ready to ditch the wasteful nature of fast-fashion. They are choosing a more quality conscious approach to shopping and buying secondhand clothing and opting to recycle their cast-offs as well. Shoppers are moving away from fast fashion and there are new waves of consumers who are willing to invest in higher quality items, acknowledging that more expensive price tags might mean more mileage from certain items of clothing. In the past year, the number of people who favor clothes that will last has risen from just one-third to 51.4 per cent. On the other hand, in the same time period, the number of people in favor of fast fashion has lessened by 46.2 per cent. The fight against fast fashion and in particular against labels that peddle cheap, throwaway, trend-led clothing has gathered momentum.
Besides shopping at high streets, most fashion consumers are making more sustainable choices with their old clothes – with 71.3 per cent opting for clothing recycling rather than tossing them in the bin.
Major retailers plan to shut stores in the United States to limit the spread of COVID-19, including Nike, Under Armour , and Lululemon Athletica, a day after similar moves by several other US retailers. Coronavirus, which has already caused schools to close and put an end to sports events in the United States, is likely to hit retailers' sales as virus-wary shoppers in Europe and the U.S. stay home.
Nike stores in Canada, Western Europe, Australia and New Zealand will be closed from March 16 to 27, 2020. Its stores in South Korea, Japan, most of China and in many other countries, however, would continue their normal operations. Under Armour would shutter all of its stores in North America for about two weeks, while Lululemon’s stores would be closed in North America and Europe for a similar period.
Nike and Lululemon operate more than 650 stores in the US, while Under Armour has nearly 190 stores in North America, according to the companies' latest annual reports. Their online stores would continue to be available to shoppers.
Japan Textiles Exporters Association trade figures reveal the nation’s exports of textiles and apparel in 2019 decreased 1 per cent year-on-year to $7,742.66 million. Exports to Vietnam increased by 5 per cent to $1,053.32 million.
Exports of textile fibers decreased by 1 per cent to $827.34 million, while those of rayon staple fiber grew by 16 per cent to $73.23 million. Similarly, exports of polyester staple fiber declined by 3 per cent to $38.82 million, along with those of acrylic staple fiber also by the same 3 per cent to $534.29 million.
Yarn exports decreased by 8 per cent to $956.06 million with exports decreasing for rayon filament yarns, nylon filament yarns and polyester filament yarns. Exports of nylon filament yarns dropped 25 per cent to $178.96 million. Exports of woven and knitted fabrics remained about the same as the previous year at $2,811.27 million, and those of coated fabric decreased by 4 per cent to $458.54 million. Fabric exports increased for nylon filament fabrics, polyester filament fabrics and spun synthetic wovens, but decreased for cotton fabrics. Exports of nonwoven fabrics remained firm, while exports of apparel grew by 9 per cent to $536.97 million.
Indonesia plans to relax restrictions on importing goods as one of its fiscal measures to combat the harmful economic effects of the COVID-19. The number of restricted import goods will be reduced by up to 50 per cent to spur business activities. As many as 749 harmonized system codes will be scrapped. Stimulus packages are being prepared, including one that will expedite the import process for 500 importers with good reputations and another to reduce logistics costs in ports across the country. Items included in the list of restricted import goods include ceramics, soybeans, corn, textiles and textile products, vaccines, health equipment, telecommunication tools and equipment, footwear and food supplements, among many others. Manufacturing industries have complained of disruptions to their supplies of raw materials that have crippled factories across Indonesia. Twenty per cent to 50 per cent of raw materials for the country’s industries are usually sourced from China.
Indonesia might not be affected severely by the global health emergency, thanks to its minimal exposure to global trade and its wide room to maneuver in monetary policy. It isn't deeply integrated in the global supply chain. Indonesia is heavily dependent on domestic demand. Household consumption grew 4.97 per cent in the fourth quarter of 2019 and accounts for more than 50 per cent of gross domestic product.
India’s yarn exports fell 30 per cent in value terms in January to February 2020 compared to last year. Reason: COVID-19. There was a sharp fall in cotton yarn exports to China, Iran, Korea and Vietnam. China accounts for nearly one-third of Indian yarn exports. As for the performance of the cotton spinning industry, it has already been severely constrained in the current fiscal year amid multiple headwinds, including a demand slowdown in the domestic as well as export markets and unfavorable raw material prices. While the industry was pinning hopes on a gradual recovery in yarn exports from the fourth quarter onwards, aided by the softening of domestic cotton prices, recent developments could prolong tough times for Indian spinners.
Around 11 countries buy 41 per cent of India’s cotton yarn exports. India’s garment exporters depend heavily on China for their import requirements. They are exploring other sources like Japan for woven fabric made out of artificial filament yarn, slide fasteners and parts, sewing machines, furniture, bases and covers, and sewing machine needles.
Another opportunity for Indian exporters is that buyers in the US and Israel are interested in sourcing from India. They had been buying these products from China so far.
India has removed the anti-dumping duty on Purified Terephthalic Acid (PTA), a key raw material for the manufacture of manmade fiber and yarn. GST on cotton is five per cent across the entire textile value chain whereas GST rates on manmade fibers and textiles are 18 per cent, 12 per cent and five per cent on fiber, filament yarn/spun yarn and fabrics respectively. This inversion in the duty structure was corrected. So rationalization of GST on the manmade fiber value chain will help to boost growth of the manmade fiber sector.
Exporters are also provided assistance under the Market Access Initiative (MAI) scheme. The interest equalization rate for pre and post shipment credit for exports of the textile sector has been enhanced from three per cent to five per cent. To boost exports in the textile sector, including cotton clothing, the new RoSCTL (Rebate of State and Central Taxes and Levies) scheme was introduced. A special one-time additional ad-hoc incentive of up to one per cent of the FoB value will be provided for exports of apparel and made-ups. The benefits of the Interest Equalization Scheme have been extended to merchant exporters, which was earlier limited to only manufacturer exporters.
