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Outdoor chain REI has unveiled a set of guidelines covering each of the more than 1,000 brands sold at the co-op. The standards outline the company’s expectations for its brand partners, focusing on how they manage environmental, social and animal welfare concerns, in coordination with REI’s ongoing sustainability efforts.
REI is known for its quality outdoor gear and clothing.With these new manufacturing policies, REI is not only reassuring customers that goods will continue to deliver top-rate performance, the company is also informing shoppers that the goods sold at its stores are manufactured by responsible, environmentally sound businesses.
Among the guidelines are those requiring brands to have a manufacturing code of conduct for supply chains. The animal welfare restriction pertains to prohibiting brands from using animal fur and exotic leather. There are restrictions regarding the use of certain wool.
REI is also introducing a list of preferred attributes that let shoppers use keywords like organically grown cotton and recycled materials to search for products, pushing them to brands and products that are using socially responsible and sustainable manufacturing practices. Consumers increasingly expect that retailers they buy from have done their homework in understanding the social and environmental practices of the brands they carry.
For Q1, LVMH sales rose 13 per cent on an organic basis. With this, LVMH has set an upbeat tone for the luxury industry. Prosperous Chinese consumers have been stocking up on LVMH’s Louis Vuitton handbags and Givenchy makeup, powering record sales last year for the company with the highest market value in France.
With more than 4,000 stores across the world, LVMH is getting a boost from a rising Chinese middle class that is traveling more than ever. It’s also gaining from a push into e-commerce and new products to entice young consumers -- like luxury sneakers and iPhone cases styled like Louis Vuitton trunks.
LVMH highlighted its digital efforts, such as its sponsorship for a startup accelerator that aims to encourage entrepreneurs developing new technologies and services for the luxury industry. LVMH moved to ramp up its e-commerce business across its stable of brands last year with new sites for its Celine handbags and Berluti shoes, the first online store in China for its largest brand, Louis Vuitton, and a new multibrand emporium. The company saw organic growth of 10 per cent or greater in categories such as spirits, fashion goods, cosmetics and jewelry.
Denim manufacturer Isko has produced a new version of selvedge by combining pure craftsmanship with the latest denim technological advancements. Isko is producing classic rigid qualities through to comfort and high-stretch items, ready to assume the role of a go-to selvedge denim mill for leading brands worldwide.
The result is a premium quality durable fabric that gets better with every wear, an assortment of over 20 selvedge varieties that includes weights spanning from 7.5 to 20 oz. Such diversity caters for silhouettes going from men’s and women’s bottoms to tops, such as shirts and jackets.
Isko currently develops different selvedge products for different lifestyles, from the super vintage and authentic to clean, modern and contemporary. The assortment caters for different brand DNAs from the heritage to the contemporary. The offer is unique and incorporates ISKO’s patented technologies and every fabric is made in a responsible way.
Countless innovative products and an impressive line-up of technological solutions enable Isko to provide the best answers to the vast variety of demands within the denim sector, in particular those in the premium market segment. Isko has offices in 35 countries worldwide. Isko develops different selvedge products for different lifestyles, from the super vintage and authentic to clean, modern and contemporary.
Global yarn production in the third quarter of ’17 is slightly lower than it was in the third quarter of ’16. Global yarn stocks decreased by three per cent to six per cent in all regions in the third quarter, except in Europe, where stocks experienced a 10 percentage points increase.
Global yarn orders fell by 2.7 per cent around the world between the second and third quarters of ’17, a compound effect of a 14 per cent increase in Korea, European stability and decreases in Egypt and Brazil. Global fabric production decreased 0.6 per cent. This reflects an improvement in Brazil, stable conditions in the US and a reduction in Asia, Europe and Africa.
In the third quarter of ’17, global fabric stocks have shown a positive trend in all regions but in Egypt. This improvement was nevertheless not sufficient to bring fabrics stocks at their third quarter ’15 level, which was seven per cent higher. While conditions are relatively stable in Asia and the US, Europe indicates slow but constant positive changes.
Finally, global fabric orders have improved. A strong improvement in Brazil was compensated for by reductions in Europe and Africa, which brought the global index to 112.7 per cent of its previous quarter level, very close to its third quarter ’15 level.
Over the past decade, the stretchy workout pant leggings which had for years been limited to a life inside the gym, has substituted the traditional pair of jeans as casual wear for women, allowing brands like Lululemon and Nike to reach a whole new demographic of women by supplying athleisure apparel category.
With widespread every-day adoption of athleisure classic sportswear brands, have profited significantly. As the trend solidified as a lasting sartorial statement, Nikes were joined by lifestyle and fashion brands and even celebrity-fronted collections, which introduced activewear lines in an attempt to bank on the frequency of athleticwear turning up outside of the gym.
At present athleisure craze is increasing as some analysts reached its saturation point and as a result, sales are beginning to slow. It has resulted in a renewed interest in denim. Sales of many traditional sportswear giants are starting to fall when it comes to stretchy leggings and crop tops, while discounters Walmart and Target are pushing further into sportswear, and fast-fashion retailers like Forever 21 and H&M getting in the game causing prices to come down.
With jumps in revenue of Tommy Hilfiger and Calvin Klein, big mall brands, such as Madewell, Abercrombie, and the Gap, have attributed some of their late 2017 growth to increased demand for jeans, giving rise to projections that good old denim is expected to make a triumphant return to grace.
Denim has definitely made a comeback, as recently as 2018 Alta Moda couture show, an important emphasis was given on jeans. Whether its roomy Martin Margiela-inspired jeans or traditional Levi’s given the industry’s fascination with wistfulness and archival looks, a full blown reappearance of America’s traditional casual pants of choice is almost surely upon us.
The land under cotton acreage decreased by 15 per cent as more and more farmers have shifted to soyabean in the hope of better returns. Cotton Association of India (CAI) president Atul Ganatra has stated the drop in cotton planting is likely to see a increase in soybean planting after farmers received good rates during the ongoing season and a rise in import duties.
With Pink Bollworm attack Kapas sowing is expected to reduce by 10-12 per cent in Maharashtra and Telangana. He estimated the area under cotton could decrease to 108 lakh hectares in 2018-19 marketing season that starts at the beginning of October, down from 122.6 lakh hectares in the current year.
Besides in the last few months the soyabean prices have increased by about Rs 1,000 per quintal from Rs 28,000 per quintal to Rs 3,800 per quintal.
Textile Commissioner Kavita Gupta feels the shift in area under cotton might not be important. There may not be much decline in total production as area under cotton in other states may compensate for any decline in area in pink boll worm affected states. Farmers would shift to soyabean, if prices increase points out Pasha Patel, C, State Agriculture Price Commission (SAPC) and there would be no takers for cotton. The area under cotton in Maharashtra has gone up to 42 lakh hectares this season, while area under soybean dropped to 36 lakh hectares during this season.
Meanwhile, India has signed contracts to export 200,000 bales of cotton to China. India is expected to export 70 lakh bales of the fibre in 2017-18 against 58 lakh bales shipped in 2016-17 season.
US buyers are banking on India’s differential strength. Medium and high-end market segment is coming back to India for more luxury items, organic-based products. Buyers are optimistic about India, and especially in comparison to China. They say Indian exporters’ ways of approaching customers are much better than those of the Chinese.
New US companies are now exploring India. Boston International for example is sourcing kitchen and table linen from India. It used to source from China but found it could not get the variety of artwork and detailing that could keep customers interested. So Boston explored India for textiles and right from the start found Indian designs very compatible and the printing and overall quality in Indian products very good and consistent. In shade variation too India proved better than China.
However, delivery timing is an issue with Indian exporters and they need to improve on this. There is also a feeling Indian exporters need to study their prospective clients or customers more deeply. Not everyone is open to new ideas, and more research is a problem with many Indian exporters, but sooner or later they have to change this mindset as even within a city, buyers of similar products are quite different.
Bestseller has acquired the premium women’s wear and lifestyle brand Toast from its majority owner French Connection and founders Jamie and Jessica Seaton. The acquisition is subject to regulatory approval and is expected to be completed within four to six weeks.
The company expects the partnership to be mutually beneficial and looks forward to supporting Toast in its current growth phase with experience and knowledge on a global scale. The deal, which is subject to French Connection shareholder approval, will lead to Toast joining the Danish group’s brand line-up which includes Bestseller, Vero Moda, Jack & Jones, Only, Selected and Vila among others.
Founded 20 years ago in Swansea by the Seatons, who had retained a 25 per cent stake in the business following the sale of 75 per cent stake to French Connection in 2000, Toast has a reputation for taking traditional textiles and reimagining them in a contemporary style.
It has 13 stores in the UK and is also sold through wholesale and online channels. As a part of the deal with Bestseller it will remain an independent company and will be run by its existing staff.
Accord wanted to stay on in Bangladesh for three more years. However, now that looks unlikely. Smart Jeans has filed a writ petition against Accord after the platform of more than 200 retailers, mostly based in Europe, terminated its business relationship with the Chittagong-based garment maker. Smart Jeans is a supplier to members of the Alliance, another platform like the Accord, that composed of 28 North American retailers. But it supplies to signatories of the Accord from time to time.
There was an understanding between Accord and Alliance that they would accept the inspection certification of each other in case of common factories to avoid duplication. Since Smart Jeans is largely a supplier to Alliance members, the platform's inspectors examined the three factories owned by the group and suggested necessary remediation work. The company completed remediation and Alliance engineers also gave their seal of approval. However, Accord engineers also inspected the factories and found the corrective work were unsatisfactory.
Consequent on the petition filed by Smart Jeans, the tenure of Accord is unlikely to be extended beyond May 31. Accord on Fire and Building Safety in Bangladesh is a five-year independent, legally binding agreement signed on May 15, 2013, between more than 200 retailers and trade unions designed to build a safe garment industry in the country.
"While China presents a huge opportunity for global brands with its huge consumer base, yet there have been instances where Western brands have failed to lure Chinese consumers. The recent case is that of Marks & Spencer which has exited online retail in the country. The company recently announced it would end online sales in China through Tmall store. Shaun Rein, MD, China Market Research feels one of M&S’ problems is they tried to sell to a middle-class consumer by creating a middle-class brand positioning. Most brands which take this approach in China, fail. That’s where Marks & Spencer failed. Also, sizes for Asian body types were not considered. At Marks & Spencer’s brick & mortar stores in Beijing and Shanghai, Chinese consumers could go right next door to H&M to shop for the youthful and trendy styles that attract millennials."
While China presents a huge opportunity for global brands with its huge consumer base, yet there have been instances where Western brands have failed to lure Chinese consumers. The recent case is that of Marks & Spencer which has exited online retail in the country. The company recently announced it would end online sales in China through Tmall store. Shaun Rein, MD, China Market Research feels one of M&S’ problems is they tried to sell to a middle-class consumer by creating a middle-class brand positioning. Most brands which take this approach in China, fail. That’s where Marks & Spencer failed. Also, sizes for Asian body types were not considered. At Marks & Spencer’s brick & mortar stores in Beijing and Shanghai, Chinese consumers could go right next door to H&M to shop for the youthful and trendy styles that attract millennials.
Another issue with Marks & Spencer is how Chinese shoppers perceive value. As Rein points out, Chinese consumer behaviour is defined by ‘CMR hour glass shopping model’, meaning they shop both at the top and the bottom of the spending scale. Anything that’s not great value it doesn’t give them importance, it doesn’t give them status, it’s not an aspiration is something that Chinese don’t want unless it’s dirt cheap.
Similarly, Britain’s Asos.com too faced issues. Asos left China in 2016 the same year Marks & Spencer shut all its China retail stores after losing out to Taobao, Alibaba’s Amazon-like e-commerce platform. Asos sold low-priced garments, but with limited products available in the China market, it just could not compete. Don Zhao, Co-founder and executive director, Azoya says in the West, Asos is mainly aimed at middle-class millennials. But in China, the fashion shopping behaviour from this group is for cost-value products, which typically are under 300 yuan. Asos was also slow at getting in new products in comparison with the UK market and used European and American models, whose body shapes are different from Chinese, making it difficult for consumers to compare and make decisions. None of these factors suited the needs of Chinese shoppers, who actively seek latest fashion products and aren’t willing to wait. In China, you have to act fast to adapt to consumers’ needs. While brands can use e-commerce as an alternative to brick & mortar stores to reach more consumers, there is not a one-size-fits-all solution for every brand.
Success Mantra: Market understanding and research
Localisation, marketing to cross-border Chinese shoppers, launching on multiple channels, and supply chain optimisation are some of the major issues that companies face. Besides, brands also have to keep local competition in mind. And to avoid any operational issues later, brands looking to start retail stores in China first need to first conduct a thorough research. According to Zhao, if a retailer is thinking about expanding to China, they need to spend more time and research on what they are looking for and have very clear expectations. While selling goods through Tmall and JD.com might seem like obvious solutions, they are not necessarily the right option for everyone.
Zhao says categories that have a low re-purchase rate, no functional features, too many Chinese local alternatives, low market-entry thresholds and unreasonable pricing over 30 per cent higher than overseas markets will definitely be challenged by Chinese competitors. Foreign luggage brands are being challenged by Xiaomi’s Youpin and NetEase’s Yanxuan alternatives, who share the same supply chain resources with international big brands.
