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The Association of Indian Medical Device Industry (AiMeD), has urged P D Vaghela, pharma sectary and chairman of the empowered committee of essential medical equipment to open up exports of surgical three-layer masks and N95 respirator masks as the country now has a surplus capacity.
In his letter, Rajiv Nath, Forum Coordinator, AiMeD wrote manufacturers of these masks have been either stopping or slowing down their production since the last 15-20 days as they have unsold inventory amid falling demand. The prices of these masks are also falling as clients in public and private health care prefer to buy lower cost 2 and 3 layer masks or non-standard quality without nose clip.
India had banned the export of all kinds of masks in March. In mid May, however, the director general of foreign trade allowed the exports of non-medical category masks like those made of cotton, silk, wool and knitted materials. The industry said the government needs to stress on proper certifications for masks and other protective gear as export of sub-standard quality products can earn a bad name. The final decision on this is expected within a next few days.
The Commerce and Industry Ministry plans to initiate an anti-dumping investigation on polyester yarn originating in China, Indonesia, Nepal and Vietnam on May 21, 2020. It mainly involve products under Indian customs code 55092100.
Imports of polyester single yarn by India totaled 64kt in 2019 with 46 per cent coming from Indonesia and 30 per cent from China. However, the imports from the countries involved in the investigation-China, Indonesia, Vietnam and Nepal- accounted for 99 per cent of total polyester single yarn imports of India, which nearly covered all polyester single yarn imports.
During the pandemic, demand for polyester single yarn was bearish both in India local market and overseas, and Indian spinners suffered much. By initiating the anti-dumping investigation at this time, the Indian government aims to protect and support local spinners. It also plans to change import patterns to enable Indian local spinners to occupy the market.
China’s polyester single yarn exports amounted to 218kt in 2019, out of which about 21kt was exported to India. The anti-dumping investigation will impact these exports as the export orders are already sporadic and the investigation will cause more problems. As a whole, the anti-dumping investigation may reduce China’s exports of polyester single yarns to India are expected to reduce.
At the earliest, Hugo Boss expects its business to recover only by the third quarter of current financial year as stores remain closed. Conditions for the brand are particularly tough in Europe and America which account for about 85 per cent sales and which are still hit by store closures and restrained consumption patterns. The brand expects second quarter sales to fall by at least 50 per cent even though all its stores have reopened in China and are gradually reopening elsewhere.
The brand has decided on a wide range of measures to free up additional cash flow of around €600 million. It plans to reduce its investment budget for the current year, which was expected to be around €150 million, by around one third. This includes postponing planned store openings and renovations and placing a temporary freeze on non-essential IT investments. Also, the company will reduce inventory inflow by at least €200 million in fiscal 2020.
All Pakistan Textiles Processing Mills Association (APTPMA) recently demanded a waiver in payments of EOBI, SESSI/PESSI and taxes & levies for export sectors for March to June 2020 from the Pakistan government.
It also demanded the introduction of the Self Registration and Assessment Scheme from July 2020 onward without any surveillance and post audits. EOBI & SESSI cards should be given to workers. This will increase voluntarily registration benefiting both employees and employers.
Further, APTPMA demanded immediate suspension of export development surcharge and mentioned that 0.25 per cent this is deducted from export proceeds of the exporters. This increases the cost of doing business of the exporters. Huge amount of EDF collected by Government is available in its kitty.
APTPMA proposed that government should suspend collection of Export Development Fund (EDF) surcharge till the huge unutilized amount of EDF is exhausted. This will make the industry competitive.
The Cotton Council International (CCI) has joined the Sustainable Apparel Coalition (SAC) and will use the group’s sustainability measurement suite of tools, the Higg Index, to drive environmental and social responsibility throughout its supply chain.
CCI will also contribute data and resources to support the Higg Index, which measures sustainability performance and improves supply chain transparency and decision-making for greater efficiency and sustainable impact. The Higg Index is an indicator-based suite of tools that enables suppliers, manufacturers, brands and retailers to evaluate materials, products, facilities and processes based on environmental performance, social labor practices and product design choices.
CCI is a non-profit trade association that promotes US cotton fiber and manufactured cotton products around the world with its Cotton USA brand. The council’s mission is to make US cotton the preferred fiber for mills and manufacturers, brands, retailers and consumers that in turn delivers profitability across the country’s cotton industry and drives export growth of fiber, yarn and other cotton products.
CCI joins more than 250 global brands, retailers and manufacturers in the SAC who are collectively committed to improving supply chains in the apparel, footwear and textile industries.
Latest survey by Oliver Wyman says over 75 per cent of Chinese consumers reduced their spending on apparels and on footwear by 45 per cent in the first quarter. This could lead to a 15 per cent contraction in 2020. However, consumer spending is likely to return its 2019 level in the second half of the year.
The survey also noted a marked difference between the buying behavior of higher and lower income groups. More than 60 per cent respondents from the lower income groups preferred buying essentials only. On the other hand, the respondents from the high-income group said they would trade up and go for both value and quality, with 54 per cent of them saying they would still look to buy products offering higher quality and functionality.
However, the importance of goods that offered value for money was common to both groups. More than 70 per cent of lower-income respondents and 56 per cent of high-income respondents said they preferred items offering value for money. The firm also predicts online channels to take up to half of the entire market in 2020, surging from 34 per cent in 2019. Although shoppers with high-incomes traditionally preferred to shop for apparel and footwear in stores, 64 per cent of them now reported spending more online.
Apparel manufacturers within the 14 investment promotion zones including Katunayake, Biyagama, Meerigama, Pallekelle, etc, in Sri Lanka will request President Gotabaya Rajapaksa soon to declare a National Policy Framework for the apparel industry in the backdrop of the COVID-19 which has affected their operations.
However, as a prelude to the meeting, these manufacturers met Minister of Industrial Exports, Investment Promotion, Tourism and Aviation Prasanna Ranatunga to deliberate matters related to exemption of the EPF and the ETF for a period of three months in the light of the cancellation of export orders by their buyers and the insurmountable losses that these employers have gone through in the last few months on account of COVID 19.
The minister had requested all 14 zonal directors to bring with them written submissions on all respective zones on how many factories within the individual zones were closed, if any have been closed at all, and how many of them have been reopened, how many factories have adopted their prescribed health precautions.
These 14 zones have 286 factories within them which employ 187,000 employees. These factories have closed on March 19 and reopened on May 11. Around 50 per cent of these factories manufacture apparel for export.
India ITME Society, the organiser of India International Textile Machinery Exhibition (ITME) 2020, has postponed the fair to December 08, 2021 at IEML, Greater Noida.
The new pre-event dates would be December 3-7, 2021, and dismantling dates would be December 14-15, 2021.
The venue of the event is being shifted to IEML, Greater Noida as no large events and container movements are permitted by municipal authorities and traffic police department until the completion of the massive metro construction work in Mumbai.
However, the organisers would be making special arrangements for shuttle buses from Delhi airport, railway station and metro station to the venue. All details shall be available nearer to the event on the website.
Recognized for big names like Calvin Klein and Coach, the American fashion industry also comprises numerous small and independent labels that are currently on the verge of collapse due to havoc wreaked by COVID19 on sales. Consumer demand in the country, which relies heavily on wholesale channels for sales, has dwindled. This has led to a virtual standstill for department stores cancelling their pre-Fall orders and also cutting off cash flow to brands.
Social media aids customer reach
Independent specialty stores across the US are trying to reach customers through social media platforms like Instagram to increase online sales. However, even these channels have been unable the fill the sales gap for these stores. Independent retailer McMullen is hosting Instagram Live sessions with designers to discuss latest collections.
Brands that operate own stores also have to pay rent, and without any government assistance, many small brands are likely to go bankrupt. Another challenge they face during
such times is paying employees. Just like a restaurant, the corporate offices of these brands house their shop-floor managers and sales assistants, many of whom are not paid when these small brands shut their doors.
In such a situation, these small, independent brands if they have an e-commerce operation they can sell or they can apply for loans. Another option open to these brands is to start selling places where they never seriously considered before like Amazon which consumers have flocked to order essential items.
Government loan to sustain business
But what these brands actually need is government assistance either in the form of capital or free rent. According to New York Times financial columnist Andrew Ross Sorkin, the government should offer a no-interest “bridge loan” to every business and self-employed worker to sustain them until the outbreak is over and people should be safely allowed to return to work. However, these companies should continue to employ at least 90 per cent of their work force at the same wage that they did before the crisis.
Though this seems like a utopian arrangement, it is currently the most ideal solution. As even though situations change, fundamental human behavior doesn’t. As soon as the pandemic ends, people will continue with their purchasing behavior. Hence, the government should support industries like fashion that enhance this consumer behavior.
According to a recent Bloomsberg survey, the US consumer confidence stabilised in May, indicating Americans are optimistic that the economic drubbing from the coronavirus pandemic will be short-lived.
The Conference Board’s index rose by 0.9 point to 86.6. The median estimate in a Bloomberg survey of economists had called for a reading of 87. The group’s subindex of expectations, based on consumers’ short-term outlook for income, business and labor market conditions, rose for a second month to 96.9. Attitudes about the present situation dropped by 1.9 points to 71.1, the lowest since 2013, as the proportion rating business conditions as bad rose to the highest since 1983.
The data add to signs that the worst of the fallout from the coronavirus is over, though there is still some way to go until the economy is back on track. While states are letting businesses reopen, confidence will be highly dependent on how well the coronavirus is contained and whether there’s a second wave of infections. Economists expect a significant pick-up in activity in the third quarter, but a return to normal is still nowhere in sight as tens of millions of Americans are out of work, schools remain closed and with no vaccine or significant treatment yet available for Covid-19.
The consumer confidence survey is one of the latest signs that while the US may be recovering from the initial shock of the pandemic, the pain is far from over. Americans are still losing jobs by the millions and reopenings have gone more slowly in some areas of the country.
