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Pure London was held July 22 to 24. The event welcomed thousands of buyers and influencers, new sectors and new brands, inspiring speakers and leading change-makers mulling the future and how to make it sustainable, circular and inclusive top of the agenda.
Topics included diversity, body shape, ethics and environmental issues. One was on how brands can be more representative of society and the role they play in changing people’s perspectives on body image and the beauty standard.
A huge increase in brands with an ethical standpoint and environmentally-made collections exhibited this season as part of the new Pure Conscious section, demonstrating the pace of growth and interest in this sector as it drives to become the norm. Future trends by WGSN were brought to life on the catwalk with a special appearance from Graduate Fashion Week winners and graduates.
Pure London invited everyone to adopt one of five simple pledges - Get Dirty, Turn It Down, Pass It On, Ethicool, and Actually I Can to advance the UN’s Global Goal 12 for responsible consumption and production.
Pure London is the UK’s leading trade fashion buying event, representing women’s wear, men’s wear, footwear, accessories and young fashion. The show offers buyers from department stores, etailers and mail order the opportunity to discover collections launching for the season ahead.
The next edition of ISPO Munich from February 03-06, 2019 will house the leading textile innovations in the ISPO Textrends Forum. The forum will enable its visitors to easily access new products and innovations that define the season. Awardees at the forum will be automatically included into the seasonal Trend Book with photos of the winning products combined with direct contact info and full descriptions.
The products will be judged by an international jury of textile experts from all aspects of the market in November 2018. The selected products will be awarded Best Product, Top 10 and Selection for each sector, with all awarded a place within the ISPO Textrends forum plus the additional benefit of marketing.
This year, two new areas will be highlighted for the Fall/Winter 20/21 edition at ISPO Textrends. The first of these include the Performance Finishes developed to highlight the development from chemical finishing companies. More brands are looking to using layering technology in their fabrics, and through the latest scientific developments many functional factors can be added to a fabric through finishing.
The second segment to be highlighted includes the Natural Generation that has been incorporated to cater to the growing demand for natural fabrics with performance. Applications to this new sector must have a minimum of 80 per cent natural ingredients as the proprietary fiber.
"One of the fastest growing nations, Bangladesh is looking to becoming a developing nation from Least Developed Country (LDC); however, its tensed economic situation is giving opposite signals. Some economists say, given the country’s rate of progress, it is expected to graduate from being an LDC to developing nation by 2024. The healthy indicator of the country’s socio-economic progress, making it to the league of the developing nations would come at some cost, the cost of losing trade benefits that it currently enjoys. It will have to give away its competitive edge which it was getting owing to many trade privileges."
One of the fastest growing nations, Bangladesh is looking to becoming a developing nation from Least Developed Country (LDC); however, its tensed economic situation is giving opposite signals. Some economists say, given the country’s rate of progress, it is expected to graduate from being an LDC to developing nation by 2024. The healthy indicator of the country’s socio-economic progress, making it to the league of the developing nations would come at some cost, the cost of losing trade benefits that it currently enjoys. It will have to give away its competitive edge which it was getting owing to many trade privileges.
United Nations’ resident coordinator in Bangladesh Mia Seppo recently maintained the country’s exports on graduating to developing nation status will face 6.7 per cent tariff, which could result in an estimated export loss of about $2.7 billion in a year. As an LDC, Bangladesh enjoys 12 per cent preference margin for its apparel exports to biggest export destination Europe under the European Union’s Everything but Arms (EBA) Initiative.
The possible fallout
At present, Bangladesh is a major user of duty-free and quota-free market access, with shipments under this
facility accounting for 72 per cent of the total exports in fiscal 2015-16. Upon graduation from LDC, exports will be subjected to additional tariff as duty-free and quota-free benefits from different countries and trading partners will be withdrawn. With this, the preferential market access to more than 40 countries in varying degrees that Bangladesh currently enjoys would be gone on becoming a developing nation. And lastly, as per the United Nations Conference on Trade and Development, Bangladesh’s exports may decline from 5.5 per cent to 7.5 per cent on becoming a developing nation. This list is quite unnerving to say the least, and more so if one is into apparel exports.
If the government on one hand is reportedly working on signing new preferential and free trade agreements with major trading partners, it is also planning to push for enjoying LDC-related benefits for an extended period through various platforms. During a media conference, Secretary of the Economic Relations Division Kazi Shofiqul Azam, stated they are assessing challenges and opportunities after graduation under the high-powered taskforce headed by the Prime Minister’s office. Further this, the taskforce will recommend action plans for off-setting any probable bad impact on overseas trade.
Going by recent measures, it seems Bangladesh will push for LDC-related benefits for an extended period by co-hosting an international event on ‘Supporting Smooth Transition of the LDCs towards a Sustainable Graduation’ during the upcoming ‘High Level Political Forum’ at New York. Commerce Minister Tofail Ahmed says after graduation from the LDC, the country will go for Free Trade Agreements with other countries. By 2021, its export will cross $60 billion and the government will work to achieve the goal.
VF Corp has had a 23 per cent surge in overall revenues in its latest quarter. There was a 46 per cent uptick in net income. VF is the parent company of fashion retailers Vans, Lee, Timberland, The North Face and Wrangler. Gross margin from continuing operations increased to 50.3 per cent on an adjusted basis.
VF’s first quarter results were strong, driven by continued broad based acceleration across its core brands and platforms. VF is executing well against its 2021 growth plan and continuing its journey to reshape the portfolio and transform VF into a purpose-led, performance driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders.
For the quarter, Vans’ revenue grew 33 per cent. Revenue for The North Face grew by 21 per cent. Lee’s revenue grew by seven per cent, while Timberland and Wrangler recorded a five per cent uptick each. VF, based in the US, is an apparel, footwear, and accessory company and has more than 1,500 owned and operated retail locations around the world across its brand portfolio. The company’s Responsible Sourcing program is a global collaborative approach to sourcing products responsibly including collaborating with industry partners and multi-stakeholder organizations across 50 countries.
The US and the European Union will work towards zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods. The EU will buy billions of dollars worth of American exports, including soya beans and natural gas, and work to reform international trade rules.
Both sides will resolve the steel and aluminum tariffs imposed by the US which started the dispute. The EU-US negotiations will be led by an executive working group aiming to make trade more fair and reciprocal. The US and the EU, which have a trillion dollar bilateral trade relationship, will also work together to reform the World Trade Organisation and cut down on unfair trade practices.
However, all this is the resumption of some basic dialogue. Individual items like soybeans and liquefied natural gas are not very significant. It is unlikely the EU would agree to a major revision of trade terms without steel and aluminium being taken off the table first.
But to the extent they’ve agreed to continue to talk and take a joint approach to Chinese trade practices, it’s significant. This puts everything on a slightly more stable footing. The US also remains on the edge of a full-on trade war with China and has yet to step back from conflicts with Mexico and Canada.
Tariff increases are not just a tax on consumers, they will also bring uncertainty to the stable global supply chain for top brands. Chinese and US textile and apparel organizations have expressed concern about escalating trade tensions and their opposition to protectionism.
Around a 1,000 types of products listed in the textile and apparel category are part of the 200 billion dollars in Chinese imports potentially subject to ten per cent tariffs imposed by the US. The products, mainly raw materials such as yarns and fabrics, range from silk to cotton, to lace to embroidery.
For the second year in a row, a protectionist trade agenda in the US is the top concern for the US fashion industry. Companies are very concerned about the broader implications of protectionism for the US economy, consumers and the global economy.
One strategy for US companies is to find other sourcing opportunities. Companies are sourcing from many other countries, including Vietnam, Bangladesh, India, Indonesia, as well as countries in the western hemisphere. But American brands and retailers also feel there is nothing to replace China for the quality sourcing they are looking for. In order to not hurt consumers, the US tariffs have been focused on manufacturing inputs rather than clothing, footwear and home textiles.
Textile exports in Pakistan in June 2018 declined 2 per cent despite government’s efforts to boost shipments in an attempt to reduce trade deficit and rein in the runaway current account deficit. This fall in textile exports, which accounts for around 60 per cent of Pakistan’s total overseas sales, is attributed to rise in cotton prices this year and heavy sales in June last year.
Textile exports were recorded at $1.19 billion in June 2018, down 2 per cent on a year-on-year basis compared to $1.22 billion worth of shipments in the same month of 2017. This decline was primarily due to a significantly higher cotton price that went up in the past one year from around Rs 6,500 per maund (37.324kg) to Rs 9,500.
Cotton price have increased 22 per cent in the world market, but in Pakistan, it has gone up nearly 40 per cent due to rupee depreciation during the last year.
Taiwan and Myanmar are looking to boost bilateral economic ties. Taiwan will support Myanmar with capacity building and technical assistance in core sectors including textile and food processing.
Technology transfer from Taiwan is the main priority as Myanmar plans to expand its manufacturing capacity in export-oriented sectors like garments and textiles. Taiwan has advanced technology in agro-based food products and by using the latest technology manages to produce a wide range of value-added products. Taiwan has successfully transformed itself from an agricultural society into an industrial one with incessant efforts by both the public and private sectors. Both countries have agreed to prioritise two sectors: textiles and food processing. The cooperation would be strengthened through a number of training programs.
Taiwanese investors’ interest in Myanmar is also on the rise. This will not only stimulate the industrial upgrading of Myanmar but also extend the market for Taiwan’s industry, achieving mutual benefits on a win-win basis.
Bilateral trade volume has increased five-fold over the past three years. Vegetables and textile products are the top two categories that Taiwan imports from Myanmar. Mostly, Myanmar imports machinery, mechanical and electrical products from Taiwan. The training programs for workers, supervisors and technical staff at factories could yield tangible benefits for Myanmar’s garment industry.
With the US-China trade war gaining momentum, apparel manufacturing countries on the direct line of China-US fire are looking for alternative sourcing options. Central America for instance is emerging as a favorable option as companies look to accommodate speed to market and dodge trade bullets. In El Salvador in particular, factories all along the synthetic supply chain collaborate in a synthetic cluster to give customers the kind of vertical sourcing experience that keeps things quick and efficient. Each link in the synthetic cluster—from yarn to garment—is within one hour’s drive from the other, which also keeps the country’s carbon footprint down. Besides, Central America enjoys a duty free relationship with the United States under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
In Bangladesh, manufacturers are rallying around to deliver quicker turns and improved sustainability as value adds for brands and retailers sourcing there. The country plans to use the blockchain technology that gives Bangladesh an advantage in traceability and transparency—and the country is looking into ways to incorporate it into supply chains.
Marci Zaroff, founder and CEO of Metawear, which operates one of its key international manufacturing platforms in India, believes that the country has incredible verticality, an astronomical workforce and opportunities in sustainability—particularly where cotton is concerned.
Though there’s been a challenge to secure organic cotton seeds in the country, and the weather has posed problems for the crop, the government is getting involved in sustainability as a competitive offering for the country.
For German sportswear maker Puma, second quarter sales rose a currency-adjusted 15 per cent, slowing from a 21 per cent jump in the first quarter. All regions grew fast, with footwear the main growth driver, but sales of apparel and accessories also increased at double-digit rates, although the strength of the euro dented reported sales.
The launch of new basketball products and partnerships with players were well received by retailers and basketball fans. Rap mogul Jay-Z will be Puma’s creative director of basketball, which it sees as critical to helping its position in the North American market, already bolstered by deals with stars like Rihanna and Selena Gomez.
Puma, which still lags German rival Adidas and market leader Nike, has revived its fortunes in recent years by spending heavily on sponsoring top soccer teams and partnering with celebrities such as singer Rihanna. That had raised analyst expectations that it might lift its earnings outlook for the year again.
However, Puma left its operating profit target at between 310 million euros and 330 million euros even as it lifted its forecast for a currency-adjusted rise in sales to 12 per cent to 14 per cent from 10 per cent to 12 per cent.
