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As coronavirus continues to spread, concerns about the outlook of sourcing from China are growing. Many stores including well-known clothing and footwear brands have been closed. Major cities in the country have been locked down, making it impossible for many workers to return to their job. Further, it is hard to predict how long such an unprecedented large-scale lockdown will last. In fact the real impact of the coronavirus is yet to come. For western fashion brands and retailers sourcing from China is always slow in January and early February because of the Chinese New Year. Countries around the world have begun to impose travel restrictions on Chinese travelers.
While last year’s tariff war had pushed Western fashion brands to source less from China, the coronavirus could accelerate companies’ sourcing diversification strategy further. But shifting sourcing orders to other countries does not seem to be a quick solution at this point. China remains the single largest textile and apparel supplier with no alternatives. Other apparel exporting countries especially those in Asia rely heavily on textile raw material such as yarns and fabrics made in China. Many apparel factories in Asia and Africa have management teams from China.
Apparel shipments from China to the US fell 9.1 per cent in 2019. This brought China’s import share of apparel down to 29.68 per cent in value terms for the year compared to 33 per cent in 2018. In volume, China’s apparel import share fell to 39.93 per cent in 2019 from 41.9 per cent the previous year. US imports from Vietnam gained 11.01 per cent in 2019.
This gave Vietnam a 16.18 per cent market share, rising from 14.75 per cent in 2018. Imports from Bangladesh increased 9.83 per cent for the year while India’s shipments rose 6.8 per cent. Imports from Cambodia jumped 11.29 per cent for the year and Pakistan’s shipments increased 7.11 per cent. US apparel imports from Mexico were down 6.49 per cent for the year.
The only other top apparel suppliers that notched a decline in imports were: Indonesia, down 1.68 per cent, and El Salvador, off 2.45 per cent. This came as US’ overall apparel imports fell 0.3 per cent in volume. In value, US apparel imports from the world increased 1.16 per cent.
Among secondary suppliers showing strength in 2019 were Jordan, Egypt, Kenya, Madagascar, Ethiopia, Haiti, Turkey and Myanmar.
Global Language Monitor has named New York as the ‘Top Global Fashion Capital of the Decade’, while Paris takes the 2019 crown – its third in the last 10 years. GLM has been ranking the Top Global Fashion Capitals since 2007.
There is an ongoing battle between Paris and New York for the top spot. Over the decade, New York had an average rank of 1.6, finishing in first or second place every year since 2010. Paris finished second for the decade with an average rank of 2.4. London took third place on the decade's ranking with an average of 2.7, centering upon its spectacular two-year run from 2011 to 2012, coinciding with a highly anticipated Olympics Game and Kate Middleton’s Royal Wedding,
In 2019, Tel Aviv and Tehran also joined the rankings. Tel Aviv ranked 56th, while Tehran took the 57th spot. Tel Aviv, promoted as the ‘non-stop city,’ has a robust, globally renowned, public fashion profile. Tehran, under the leadership of the Islamic state, has a hidden but vibrant fashion scene.
L Brands may sell Victoria’s Secret to Sycamore Partners. Victoria’s Secret is an intimate apparel brand selling bras, pajamas, perfumes and other accessories. For years the retailer has faced criticisms for an out-of-date focus on sexy styles while competitors prioritized comfort. This November, it canceled its once-annual fashion show as viewers increasingly shunned the provocative show.
For the past five years, L Brands has focused on the 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 increases. Sycamore has a history of taking bets that its peers eschew. The private equity firm is one of the few to continue to invest in retail. Many of these bets have been accompanied by bold and creative strategies. Sycamore financed its acquisition of beleaguered office retailer Staples in a way that allowed it the flexibility to wind down its retail business while retaining its stronger business-to-business segment. Sycamore has past ties with L Brands’ predecessor, Limited Brands. The firm took a 51 per cent interest in Limited Brands’ sourcing business, Mast Global Fashions, in 2011. The company, now known as MGF Sourcing, has helped Sycamore put together a retail and apparel empire that also includes Talbots and Torrid.
Almost 39 US textile companies were certified by the Global Organic Textile Standard (GOTS) in 2019. Among them were a knitter, four cotton gins, 14 manufacturers and some 20 retailers.
GOTS covers the processing, manufacturing, packaging, labeling, trading and distribution of all textiles made from at least 70 per cent certified organic natural fibers. Products may only be sold with a GOTS label only if the entire supply-chain is certified and the necessary scope and transaction certificates have been obtained to prove certification. An independent on-site inspection is carried out annually by GOTS-approved certifiers.
GOTS has a consumer facing label. This acts as a proof the product is organic and sustainable. It helps the consumer to take a buying decision when at a retail store. When buyers ask for a credible third party certification or GOTS certified products, this will ensure the production is done in an environmentally responsible manner. Plant based dyes are trending. India exports certified products. But certified suppliers now want to sell products in India. Airports sell GOTS labeled T-shirts. Zodiac has got a GOTS certification for their production activities in India. They sell organic certified shirts under the brand Z3.
World Linen Forum held in Paris from February 9 to 10 with over 200 international decision-makers from 15 countries. As per the European Confederation of Flax and Hemp (CELC), the first event met with great success in 2018. Among others, businesses from China, Japan and India were also represented. The event was the occasion to officially acquire ISO Standard 320706-1 certification for the sector. In the works for over seven years, this certification provides brands with a guarantee of the fiber composition in their collections, avoiding any risk of counterfeiting.
Europe accounts for 80 per cent of linen production. Eco-friendly, cultivated without fertilizers and with low-water consumption, this fiber is produced in Europe on a thin strip of land that spans from the Netherlands to north-western France, serving as the main supplier. Despite its 10,000 businesses across 14 countries in the EU, this sector must rely almost exclusively on foreign processors to yield thread and fabric. Creating a dialogue centered on common themes between the sector’s different players is thus strategically essential.
If flax represents only 0.4 per cent of the worldwide textile fibers today, it has many advantages pushing it towards one per cent. Linen Matrix 2019, a publication with a global cartography of the sector, provides informational guidelines and common foundations to guide the linen industry’s ambitious future.
Marks & Spencer, which sells 15 pairs of jeans every minute, plans to launch its first denim-based TV campaign besides doubling its marketing budget for an ad campaign. The brand plans to double on its “killer categories” of denims which also includes knitwear and sleepwear.
This is the third marketing campaign for M&S Denim in less than a year. It is designed to spotlight the progress and strength of M&S’s denim business focusing on style, fit and value.
M&S has reenergised its denim business recently by incorporating new styles and products like the “Harper” cigarette cut jean into the category. One of its new women’s styles, the “Ivy” skinny jean, is already a bestseller, prompting M&S to release a brand-new women’s style for the spring campaign known as “Magic Jeans. These jeans have a slimming effect thanks to high waists with gap-proof waistbands, “flattering tummy technology,” and bi-stretch denim. In fact, skinny jeans are the most popular cut at M&S and almost 300,000 pairs of its Ivy style sold between October and December of 2019 at a price of 19.50 pounds.
Men’s wear is more focused on old-school aesthetics, and M&S is taking on the trend with a Vintage range, selling for 29.50 pounds ($38.34) in three fits: skinny, straight and slim. Skinny styles are also increasingly popular among men with sales of the cut increasing by more than 150 per cent, year-over-year.
An off-white denim created by retailer C&A, Pakistan textile mill Rajby Textiles and circular economy consultants Eco Intelligent Growth (EIG) has become the world’s first to receive a platinum Cradle to Cradle certification.
Beluga denim is made from 100 per cent Global Organic Textile Standard (GOTS)-certified organic cotton fiber, is fully recyclable and is produced using a specially-designed closed-loop water system. It is 100 per cent carbon neutral in the final manufacturing stage.
To achieve the highest level Cradle to Cradle certification, Rajby and C&A worked together to research and identify the most suitable materials and chemicals for the ecru fabric. The denim had to be made entirely of safe and rapidly renewable ingredients, both fibers and chemicals, which meant that no oil-based dyes, auxiliaries or other chemicals could be used. Rajby and C&A also worked closely together to ensure that Beluga would be actively cycled into new product after its usable lifetime, instead of becoming waste. The fabric was tested to ensure it met the highest-level requirements for all five Cradle to Cradle categories: material health, material reutilisation, renewable energy and carbon management, water stewardship and social fairness. C&A is expected to launch the first garments made with Beluga denim in about four months.
The outbreak of novel coronavirus triggers run on medical and health textiles, driving the production of non-woven at full throttle across the country, particularly in Xiantao city, Hubei Province, best known as China Famous City for Non-Woven, a city home to over a hundred of non-woven manufacturing companies.
According to the city government, there are 137 companies producing protective gear, of which
113 companies are specialized in medical and health textiles. As of February 9, 83 of them have resumed production in Spring Festival holidays to respond to demand urgency at a time when the whole country is mobilized to fight coronavirus. Among these 83 working manufacturers, 10 companies work on medical and health garment, 28 on non-woven, 45 for face masks and protective clothing, leaving 30 companies yet to go into production after in-situ qualification survey and accreditation by expert procedures.
To stand up to the public health emergency, local government plays a very important role in marshalling resources through organizational efficiency and responsible leadership in stepped-up efforts to quickly resume production in time of need. The update on February 8th shows that the daily output of protective clothing has reached 30,000 pieces, a target set by provincial government, temporarily easing the shortage of supply.
Furthermore, the city government of Xiantao issued [Regulation on Production Order for Non-Woven Manufacturers] to make sure that the existing protective textiles companies measure up to the industrial, social and environmental standards in all perspectives on corporate-compliant basis, particularly in terms of the licenses for hospital appliances production and the registration certificate for medical and health supplies, enabling health-purposed products themselves to be healthy in a quality-centered supply chain.
Contributed by Mr. ZHAO Hong
He is working for CHINA TEXTILE magazine as Editor-in-Chief in addition to being involved in a plethora of activities for the textile industry. He has worked for the Engineering Institute of Ministry of Textile Industry, and for China National Textile Council and continues to serve the industry in the capacity of Deputy Director of China Textile International Exchange Centre, V. President of China Knitting Industry Association, V. President of China Textile Magazine and its Editor-in-Chief for the English Version, Deputy Director of News Centre of China National Textile and Apparel Council (CNTAC), Deputy Director of International Trade Office, CNTAC, Deputy Director of China Textile Economic Research Centre. He was also elected once ACT Chair of Private Sector Consulting Committee of International Textile and Clothing Bureau (ITCB)
"Marked by an unrelenting and disruptive consumer revolution, the past decade made mobility a make-or-break factor for fashion retail businesses. Factors responsible for this change included demographic shifts, rise of the smartphone, the ubiquity of the internet, the changing role of stores and competition from unexpected rivals."
Marked by an unrelenting and disruptive consumer revolution, the past decade made mobility a make-or-break factor for fashion retail businesses. Factors responsible for this change included demographic shifts, rise of the smartphone, the ubiquity of the internet, the changing role of stores and competition from unexpected rivals.
Reevaluating the fundamentals of their businesses, retailers noticed certain factors like a transition from a linear to circular economy, globalisation of supply chains, explosion of cities and the need for sustainable energy testing the trust of their customers. As a recent Lifestyle Monitor survey revealed, though the expenditure of customers on apparels increased significantly in last 10 years, their mode of shopping changed. While in 2009, around 32 per cent consumers spent most of their money on shopping from brick and mortar stores. By, 2019, this figure dropped to 24 per cent with around 43 per cent consumers preferring to shop online.
Informed consumers lead to change in retail models
The decade also brought about the democratisation of information and an informed consumer class. The concept
of a retailer or a company promoting an idea to shift the paradigm became harder to execute as consumers were already aware of what they wanted to buy. They also have access to all materials that industry insiders use as runway shows are live streamed and look books are posted the moment they drop.
An easy access to the internet also gives consumers innovative ideas to buy clothes online. As the Monitor™ survey revealed, last year around 38 per cent consumers got their clothing ideas online. On the other hand, the influence of store displays and windows decreased from 42 to 33 per cent. To meet changing needs, retailers started investing in mobility for top-down changes to their business models. They are delivering streamlined, personalised paths to purchase.
Digital disruption leading to store closures
A study commissioned by SAP in January 2019 assessed the adoption of intelligent technologies to support the digital transformation journey in the last decade. The research examined companies who were actively undergoing digital transformation and had already implemented at least two innovation technologies. The study revealed that digital disruption has taken a toll on the retail industry with thousands of store closures affecting everyone from mass merchants to luxury stores.
Although thousands of retail doors closed, many new stores opened, including previous online-only brands like Bonobos and Indochino. But another reality for the fashion industry is consumers aren’t purchasing as much as they used to. Their interest in quality has increased with around 51 per cent willing to pay more for better quality garments, a measurable increase from 47 per cent a decade ago, reveals the Monitor™ research.
Growing preference for cotton apparels
The preference for cotton apparel remained strong with nearly 79 per cent consumers preferring clothes made of cotton as against 3 per cent preferring silk and polyester each. Over 76 per cent consumers believe cotton garments to be of better quality compared to 49 per cent a decade ago. They prefer to shop from brands like Patagonia and Noah that have a point of view and ethos that squares with their own, as opposed to the label with the cheapest price.
Brands like Badgley Mischka, Levi’s, Adidas and Tapestry, who adopted SAP, have been able to make it through some of the retail’s roughest waters as they realised the value of intelligent digital transformation, enhanced mobility functionalities and an elevated customer experience.
In future, consumers will expect retailers to be more involved in their lives as trusted partners. To deliver on these expectations, retailers will need to earn their customer’s trust by embracing new technologies and being more creative about the services that they provide.
