FW
The global COVID-19 pandemic has made a significant dent in the Japanese apparel retail industry, forcing the mass closures of retail stores in the country.
As a result, during January-April ’20 period, Japan imported 903.5 billion yen (US $ 8.41 billion) of garments, marking 9.60 per cent downfall on a yearly basis. According to the data released by Ministry of Finance, Japan was also down by 8.80 per cent in weight to import 2,076 million kg worth of garments from the world over.
Vietnamese apparel shipment to Japan valued at 149.29 billion yen (US $ 1.39 billion), marking a surge of 4.81 per cent on Y-o-Y basis.
China exported 486.05 billion yen (US $ 4.53 billion) of garments to Japan in the first 4 months of 2020, noting a drop of 14.43 per cent, while the exports of India valued at 11.71 billion yen (US $ 110 million) which was 21.58 per cent down from what it had exported the same period of the prior year.
Bangladesh too dwindled in its exports to Japan. The shipment from Bangladesh valued at 46.59 billion yen (US $ 434 million), noting 3.04 per cent fall on Y-o-Y basis.
In an effort to deliver transparency when consumers demand it most, denim mill Isko launched its first Sustainability Impact Report. The report documents the ways Isko is achieving the UN’s Sustainable Development Goals (SDGs) and International Labor Organization (ILO) standard frameworks, and illustrates sustainable initiatives and ties each one back to a specific goals.
Isko’s new laser-friendly finish, Vulcano, supports SDG 6 (lean water and sanitization). The company’s R-TWO concept, which uses reused cotton and post-consumer recycled polyester, speaks to SDG 12 (responsible consumption and production). The company’s starting wages—which are three times the legal minimum wage in Turkey—supports SDG 8 (decent work and economic growth). Currently, the monthly minimum wage is 2,324 Turkish liras, or approximately $340.
The report also describes Isko’s commitment to responsible innovation and production, and provides details on the ways it manages its environmental impact, oversees supply chain processes, uses raw materials and implements better health and safety standards.
Pakistan Hosiery Manufacturers Association (PHMA) recently stated that value-added textile export industry had rejected the federal budget for 2020-21, terming it “one-sided and unrealistic” without any relief for the textile industry, which was the backbone of the economy and exports.
The association was of the view that the textile industry had been completely ignored and deprived of relief in the federal budget, which purportedly had been made on directives of the International Monetary Fund (IMF).
It said the imposition of 17 per cent sales tax in the previous budget had brought a disastrous impact on the textile industry and its exports as well as caused liquidity crunch due to stuck refunds worth billions of rupees. Value-added textile exporters have expressed sheer disappointment and have demanded that the government review and restore the zero-rated regime for the five major export sectors as a lifeline for the economy.
The exporters urged the government to reconsider restoring the zero-rating facility or slash general sales tax from 17 per cent to 4 per cent.
The local Sri Lankan apparel sector has stressed the need to establish a stronger online presence to ensure it anchors strong in the post-COVID-19 era and hold a sizable portion of the global fashion industry.
With the core business of Sri Lanka’s apparel sector being the fashion industry, Joint Apparel Association Forum (JAAF) President Arumugampillai Sukumaran said it is essential for the industry to continue to focus on it and urgently put in place a payment platform to engage in e-commerce as a major change.
Noting that the global supply chain will only change its origin, due to trade wars but will be revitalised with a more Asian focus outside China, he said the local apparel industry is working hard at staying afloat without collapsing to “win the game”.
According to Sukumaran, the true impacts of COVID-19 have not fully presented and there still are few more months of difficulty for the industry to navigate through. He also pointed out that the global apparel industry would be smaller post COVID-19 than before and it is a reality the industry stakeholders need to understand.
However, he opined that with the changes in technology, increasing value addition to product, changing the way the industry works, Sri Lanka’s apparel sector will continue to be vibrant and relevant.
A survey by Business & Human Right Resource Center (BHRC) shows, out of 35 brands and retailers, just 19 are prepared to pay for their entire order. And this is having a devastating impact on millions of garment workers who have either lost their jobs or are not being paid since the last two months. This has left millions of women and migrant workers in fashion’s supply chains unable to put food on the table for their children, and wondering how they will pay the rent.
Also, eight companies have requested retroactive discounts from suppliers for orders they had previously placed. Debenhams has asked for a whopping 90 per cent discount. In addition, eight firms including Primark have delayed settling their bills by extending their usual payment term by up to 180 days, or six months. Three brands — Hermès, N Brown and Zalando — said that some suppliers were taking shorter payments in order to alleviate issues with cash flow during the crisis.
However, some brands have stood out against this norm, showing leadership, said Thulsi Narayanasamy, Senior Labor Researcher at BHRC. Another 23 have taken steps to ensure that workers are paid in March and April and 19 businesses said they are helping suppliers access financial resources. Narayanasamy says, this can help build their trust with suppliers and workers on whom their successful recovery will depend. He urged the industry to applaud brands who are transparent about their actions as this allows civil society and workers to monitor whether commitments are being met.
Munich Fabric Start and Bluezone are relocating to a more spacious venue to help ensure social distancing. The Fall/Winter 21-22 event will move from the Munich Order Center (MOC) to Messe München-Riem. Messe München-Riem, located approximately 10 miles from MOC, has ground-level exhibition halls, numerous spacious entrances and loading gates, as well as ground-level parking spaces in the immediate vicinity of the halls. The fairground is accessible by public transportation. The organizers have drawn up a concept that will span four halls in the interim location with a total area of approximately 485,000 square feet.
MFS and Bluezone will be among the first physical events to take place since the global pandemic. Trade shows will be held in Bavaria as of September 01, taking into account necessary protections against infection.
The new requirements entail numerous structural, organizational and personal measures that are necessary for smooth and safe trade fair operations. Due to the site restrictions in the MOC, many of these mandated precautions cannot be adequately implemented in the traditional location.
Jeanologia has developed a manual for the application Trizar technololgy in its denims to save costs, reduce waste and add permanent warmth to jeans, without bulk. The e-flow technology is based on nano bubbles and was developed and patented by Jeanologia. The e-flow breaks up the surface of the garment, achieving soft hand feel and controlling shrinkage. A minimal quantity of water is needed and there is zero discharge from the process. Air from the atmosphere is introduced into an electro flow reactor and subjected to an electromechanical shock creating nano bubbles and a flow of wet air. The nano bubble mix is then transported into a rotating tumbler containing the denim garments, and when it comes into contact with them produces a soft and natural hand feel.
Trizar technology is a space certified technology that was used by NASA on Spaceships. By increasing a materials emissivity, Trizar materials are engineered to re radiate heat your body produces to keep you warmer longer. O’Neill Snowboard jackets, Forloh Hunting gear, Endeavor Athletic, HXT Mittens, Olympia, Cloudveil, Arctic Cat and Wolverine cold weather gloves all use Trizar materials now to retain body heat in cold weather.
The consolidated net profit of Aditya Birla Group firm Grasim Industries jumped by 46 percent to Rs 2,305 crore during the fourth quarter ended March 31, as against a net profit of Rs 1,583 crore that the company posted in the year-ago period. The company’s revenue during the quarter declined by 11 percent to Rs 19,902 crore as against Rs 22,431 crore in the corresponding period previous fiscal.
During the fiscal year 2019-20, Grasim Industries’ net profit grew two-fold to Rs 6,677 crore, as against Rs 2,745 crore in the previous year while its revenue increased by 1 percent to Rs 77,625 crore, as compared to Rs 77,200 crore in 2018-19. Its domestic grey VSF prices softened sequentially in Q4FY20 in line with global prices but the overall performance improved QoQ on the back of better cost management, higher speciality sales, and lower input cost.
Expecting the COVID-19 related economic slowdown to impact its sales in near term, the company has initiated various measures to reduce its fixed costs and conserve cash as part of its comprehensive business continuity plan.”
Fashion entrepreneurs in UK are developing different ways of helping garment workers during the pandemic. Edinburgh-based Cally Russell has set up the Lost Stock initiative, which sells garments from orders cancelled by UK fashion retailers by purchasing garments directly from manufacturers in Bangladesh. A Lost Stock box of clothes costs £39. Almost a third of it is donated to the Sajida Foundation, which gives food and hygiene parcels to Bangladeshis struggling due to the pandemic. For maximum transparency, Lost Stock also provides a price breakdown that outlines the costs to the manufacturer, the charity and the initiative itself.
Some fashion marketers are also encouraging brands to adopt a cool-to-care ethos as seen with the UK’s weekly clapping for key workers. Businesses in numerous sectors are already focusing their marketing message on supporting NHS workers to capitalise on this spirit of collective solidarity. Fashion marketers are also channeling people’s desire for self-gratification towards buying clothes that contribute to the social good. For example, TOMS (Tomorrow’s Shoes) donates a pair of shoes to the needy for each of its pair sold.
On the other hand, Snag Tights, supports NHS frontline workers with a free pair of tights for every order placed. Another emerging trend is of swapping clothes. London Fashion Week hosted a fashion swap shop in February for the first time. Similarly, the flagship Selfridges store on London’s Oxford Street began selling second-hand luxury fashion and high-end brands with resale site Vestiaire Collective in 2019.
There has also been a rise in fashion libraries that rent fashion garments and accessories, allowing consumers affordable access to higher quality and luxury items. Fashion retailers could move in this direction, while also supporting customers by hosting workshops for upcycling garments into something new.
In line with the UK government’s gender pay gap regulations, fashion brand Burberry reported a 33.1 per cent mean gender pay gap for fixed hourly pay as on April 05, 2019. The organization currently has 9,862 employees. The UK government’s reporting regulations require organizations with 250 or more employees to publish the differences in mean and median hourly rates of pay for male and female full-time employees, the gap in men and women’s mean and median bonus pay, the proportions of male and female employees awarded bonus pay and the proportions of male and female full-time employees in the lower, lower middle, upper middle and upper quartile pay bands.
Due to the pandemic, gender pay gap reporting regulations have been suspended for the 2019/2020 reporting period, however, some organizations have chosen to do so voluntarily. Burberry’s median gender pay gap for fixed hourly pay is 10.3 per cent as in April 2019. On average women, earn 90p compared to every £1 their male counterparts earn. The brand’s mean gender pay gap for bonuses paid during the reporting period is 40 per cent while its median gender pay gap for bonus payments is 23.2 per cent.
Over the reporting period, 78.7 per cent of the brand’s female employees and 76.3 per cent of its male employees received bonus payments. Around 56.4 per cent of employees in the highest pay quartile at Burberry are female, compared to 67.6 per cent in the second quartile, 59.7 per cent in the third quartile and 78 per cent in the lowest pay quartile.
