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Bloomsberg reports Tailored Brands — which runs the Jos A Bank, Moores and K&G banners along with Men's Wearhouse — plans to file for bankruptcy as the retailer has struggling with declining top-line for years, while margins and profits have shrunk. It has tried to turn things around with new marketing campaigns and technology services, but comparable sales declines at Men's Wearhouse actually widened last year. The company's long-term debt stands at about $1.1 billion.
Like scores of peers, Tailored Brands reduced its store footprint in March, furloughed employees and cut executive pay as the COVID-19 pandemic spread through the US. While it began reopening stores last month, the shutdown has wrought financial havoc on distressed retailers in particular.
Starting in the first week of March, retailer's performance became more uneven and further decelerated in the second week as local and regional governments started taking actions to slow the spread of the disease. Even though the business apparel specialist has reopened some of its stores, it still faces a potential acceleration in casualization in clothing, as workers around the country work from home.
According to Rehan Lakhani, Chairman, Sri Lanka Apparel Exporters Association (SLAEA), though the Sri Lankan apparel sector is showing signs of recovery from the impacts of the pandemic, with the lockdowns being carefully lifted across the world, no confirmed orders have come through as yet that would allow factories to operate at full capacity, from August onwards.
Thus a majority of the manufacturers would operate their factories at a loss, even though they would function at reduced capacities. But their fixed costs would remain the same, placing them at a vulnerable position, Lakhani says. Factories are embracing this reality and trying to survive the crisis period and are looking to get back to normalcy. While a collective effort from the industry is not possible to secure orders for Sri Lanka, Lakhani said that individual companies are doing what it takes to pull as many orders as possible.
Innerwear company, Hanesbrands has appointed Stephen B Bratspies new CEO and board member. Bratspies was earlier the chief merchandising officer at Walmart where he oversaw merchandizing transformation initiatives. His résumé, which spans more than 25 years in the retail and consumer sectors, also includes stints at PepsiCo’s Frito-Lay North America and as a management consultant with AT Kearney.
Parent to brands such as Hanes, Bali, Playtex, Maidenform, L’eggs and Wonderbra, among others, Hanesbrands began its search for new CEO in March when current CEO Gerald W Evans Jr announced his retirement after 37 years in the company. Evans, who helped Champion brand’s growth to nearly $2 billion in annual sales and expanded the distribution of Hanes socks and L’eggs hosiery to Dollar General stores nationwide during his time as CEO, will remain as an adviser until his retirement in January 2021.
Meanwhile, Hanesbrands has temporarily closed 1,200 brand stores in the US, Europe and Australia to prevent the spread of COVID-19. Hence, the company’s top and bottom lines suffered during the quarter ended March 28. In April, Hanesbrands furloughed approximately 5,800 of its roughly 63,000 associates to help curb losses.
The European Union plans to grant €90 million payment to one million Bangladeshi readymade garments workers, rendered jobless due to the COVID-19 pandemic, for the next three months. The payment will be granted in phases. In the first phase, each of these workers will get monthly Tk3000 cash support for three months- June to August when Bangladeshi factories might experience order shortage for demand shrinkage in the western markets. Possibly the grant will be extended for a second three-month phase further.
The total size of the grant may increase further to €500 million, said Fazlee Shamim Ehsan, Director, BKMEA. According to the grant the EU will give total Tk900 crore for first three months phase (Tk3,000 each to 10 lakh workers, the amount will be Tk300 crore a month) and it will be deposited to the mobile banking accounts of jobless workers. Apparel makers will share workers’ database with EU team to identify those are losing their jobs.
According to the BGMEA, more than a million RMG workers will be jobless due to the pandemic because over a thousand garment factories have already suffered about $2.97 billion worth of order cancellation and withdrawals by international brands and retailers.
In its recent webinar, AEPC chairman A Sakthivel urged the government to lift ban on export of PPE kits. He said the AEPC has sought special costing proposals from e-commerce giant Amazon for selling masks and personal protective equipment (PPE) kits through the portal. The webinar on 'How to start exporting through B2C ecommerce,’ was organized in collaboration with Amazon India.
Sakthivel further informed that the AEPC has requested the government to help exporters get the accreditation from the European lab, that is, Conformité Européene or CE marking, and a certification from the US Food and Drug Administration (FDA) to export PPEs to the European Union and US market, respectively.
The webinar discussed the opportunities presented by e-commerce exports for Indian MSMEs focusing on how AEPC members can leverage online exports to expand their business.
China Chemical Fibers Association (CCFA) recently organized an online fashion show with the leaf motif of “Green Life that Starts with Fibers”, reigniting a sustained endeavor, making a clear stewardship with GF logo (Green Fibers), as the promotional campaign from fibers to fashion.GF logo is a certified trademark registered and approved by State Administration of Market Regulation, whereas CCFA is the proprietor of the GF trademark that stands for the circular life in green fashion from birth to rebirth. These include the raw materials of biomass origin or renewables and recyclables, low-carbon and environmentally friendly process, the end-products pollution-free or reusable back to streamline. Green fibers are defined in three categories namely bio-based, recycled and dope dyeing manmade fibers.
Ever since China Chemical Fibers Association (CCFA) launched its green fiber program several years ago, about 30 chemical fiber companies have been qualified for the certificate of the green fiber logo and the green fiber-rich products. The online event streamed a live broadcast featuring CCFA signing ceremony with local textile and apparel associations, also some downstream brand owners were present to sign cooperation agreements. Mr. Liu Jianguo, president of Shandong Provincial Textile and Apparel Association, Mr. Wang Qiming, president of Fujian Provincial Textile Industry Association, also Chairman of Quanzhou Haitian Material Technology Co.Ltd., Mr. Wang Yuping, president of Shandong Yuyue Hometextile Co. Ltd., and Mr. Fu Gang, Managing Director of Dezhou Hengfeng Group, respectively representing their own organizations, signed agreements with China Chemical Fibers Association in the conviction that they would jointly work together to promote the green fiber certification program for a green fiber supply chain, a new contribution to the textile industry.
Mr. Li Deli, deputy engineer-in-chief of CCFA , was also on line to share with the viewers about the accreditation and certification work for the green fiber and its products pertaining to the application for GF logo, and he reiterated that only by ensuring a strict accreditation and assessment in the comprehensive factors, like production process, safety and environmental protection, product quality et., can the fibers and the relevant manufactured products be authenticated of being really green.
The manmade fiber producers, if they apply for the GF logo, must be eligible for the terms and conditions stipulated in (Regulations on the Application for Green Fiber Logo-2018 Edition), and the applicants for GF products certification must comply with CCFA’s (Technological Requirements for Green Fiber Assessment) that sets forth a series of musts in raw materials purchase, fiber production process, product safety and environmental protection etc.. whoever applies for the green logo, either from manmade fiber producers or from the manmade fiber end-users, must know that the likely impact on human health from heavy metal extractables, chlorophenol, cholorinated benzenes and toluenes, is nothing short of primary consideration in the application and accreditation procedure.
China Chemical Fibers Association (CCFA) issued (Rules on Certification of Green Fiber Products-2020) to guide the applicants from downstream manufacturers for getting themselves through the application procedure, provided that they use the certified green fibers as raw materials for their own products all the way down the industrial supply chain, meaning that these products can be yarn, fabrics, apparel, home-textiles and tech-textiles etc.. It is important to be advised that the green fibers must be rich in these downstream products with different level as is set to be over 40% in weight inside a product if the bio-based fiber is taken in, and over 50% in weight if the dope-dyed fiber or recycled fiber is used in the product composition.
Besides that, Mr. Li Deli emphatically introduced the credible traceability system closely tied to the GF product certification flow, requesting that either green fiber producers or green fiber products manufacturers should keep the flow details in databank, every nook and cranny of the process flow in logbook, saying, raw material input, product output, transportation documents, production and logistic records, inventory in-and-out bills and list , so as to trace the green fiber footprints to determine the green fiber level inside a product.
CCFA launched the green fiber program with the mission and aspiration to start with greenness from A to Z in the industrial value chain in a green origin- core -product configuration. With this, consumers can really enjoy a comfortable experience characterizing “ green life starting with fibers”. For this goal, CCFA welcomes more companies to join in the teamwork for GF certification in collaboration to facilitate the green integration of the whole textile streamline.
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)
As they say ‘Change is the only constant,’ the traditional authoritative system of brand dictating consumers’ purchases by continually refreshing designs is slowly giving way to a new concept, the ‘Consumer to Manufacturer’ (C2M) model. With two variations at the moment, the C2M model is likely to be the new driver of luxury re-commerce growth across the world. As data from Chinese research company iResearch notes, China recorded 420 million C2M-related bookings and sales during its largest shopping festival in 2019. Currently worth over $2.5 billion, the C2M market in China is likely to reach $6 billion by 2022 as it enables brands to better address issues of inventory, supply chain efficiency, and demand.
Applications and uses of C2M
Different retail platforms in China are developing the C2M model. Retail platform Pinduoduo explores the model by allowing users to tap into the power of social media to
create products that reach manufac turers’ required levels. Similarly, JD.com has tested this model since 2017. The company also launched fashion technology research institute in 2018 to explore the application of advanced technologies like AI, VR/AR, big data, and smart supply chains. Meanwhile Alibaba creates C2M products through a new app called ‘Special Offers’. By launching this app on TaoBao, the company aims to help 1,000 industries build ‘super-factories’ over the next three years. The app is being used by manufacturing brands like Anta and Bosideng Group to open online stores.
Besides launching new products, the C2M model also helps brands to integrate their in-store activities and customize online products with the help of new technologies. Eyewear company 3DNA uses this model to offer customers preprogrammed styles in a variety of materials to create bespoke eyewear. According to the brand’s founder, Dennis G Zelazowski, C2M adds value to the online retail experience by creating a highly sentimental limited-edition of their products. The technology lets them deliver their white-glove service digitally after the scanning experience.
A boon for luxury fashion companies
Though the C2M model can help luxury brands address consumer demand, improve supply chain efficiency and tighten inventories, they need to be agile enough to respond to collected data. Also, this model might make it difficult for brands to maintain consistency in the quality of their products. Another challenge lies with supply-chain ownership because few factories can produce this model directly. However, e-commerce platforms are helping to ease this situation down the line
Currently, the C2M model is being used to make low-price goods in China. The model works in China because of its vast size and the nature of its e-commerce market. However, luxury companies in other countries can also use this model to identify consumer demands and create collections accordingly.
ZDHC has launched its first project in Africa to strengthen the capacity of Ethiopia’s textile and apparel industry. The two-and-half-year project will be conducted in collaboration with Bahir Dar University. According to the project, ZDHC will incorporate chemical management in the university’s undergraduate curriculum and establish training and consultant infrastructures. The goal is to make Ethiopia’s textile and apparel sectors more sustainable and to protect workers, the environment and local communities.
As a part of a private-public partnership between the German government and Dow Europe GmbH, the ZDHC Foundation will lend its expertise to help ensure a safer and eco-friendlier textile and apparel industry in the country, which has a small but growing manufacturing base.
This project is a milestone for ZDHC as it complements its vision of widespread implementation of sustainable chemistry, driving innovations and environmental best practices in the textile, apparel, leather and footwear value chains.
The project will be implemented by GIZ GmbH, on behalf of the German Federal Ministry of Economic Corporation and Development. GIZ is a service provider in the field of sustainable development with expertise in the textile sector in general and chemical management.
While the company reported it’s first-ever loss in its quarterly earnings, Inditex managed to limit the damage from shutdown of its operations by relying on its online business. A relative latecomer to the Internet, Inditex launched its first online apparel business in 2010 and expanded the digital business with a big bet on technology that ties into its unique logistics and distribution system.
The system has two key pillars: heavy rotation of products that move quickly from commissioning to sale in stores; and proximity of production, with the bulk of garments made in Spain, Portugal, Morocco and Turkey. Almost all clothes are sent to a handful of centres in Spain and re-distributed from there to outlets worldwide.
During the pandemic, the online business had an opportunity to shine as in most major countries where Inditex operates in Europe e-commerce was allowed to continue operating even as brick-and-mortar temporarily closed down. This occurred in Spain, Inditex’s largest market, where the government declared a national lockdown March 14, causing retail sales to drop by a record 14 percent that month.
The company remains in good shape, thanks to its strong balance sheet boasting €8 billion ($9.04 billion) of cash and cash equivalents, the integrated online business and low inventory compared with rivals.
Major brands including fashion label Zara are investigating reports of mass sackings of union workers in their supply chains, amid fears from labor advocates that coronavirus has fuelled ‘union-busting’ at factories across Southeast Asia. As the pandemic batters global economy, numerous Western retailers have cancelled orders or demanded discounts from suppliers in countries such as Cambodia, Myanmar and Thailand, leading to many workers going without pay or being sacked.
Unions and activists in the region said factory bosses were targeting and firing union members while keeping on non-unionised workers, and feared that the outbreak could spur a rollback of rights on issues from decent pay to safe workplaces.
Fashion brands Bestseller, Mango, Primark and Zara have launched probes into reports of union-busting in Myanmar. Inditex-owned Zara confirmed it was looking into the issue, while Bestseller and Britain-based Primark said they were also investigating but that the sackings were in line with Myanmar’s labor laws.
