A nationalist sentiment is shaping the way consumers shop in China. Instead of foreign-made goods, young Chinese shoppers are opting for products made by domestic brands and companies. A case in point is the Chinese sportswear brand Erke, which sold products worth over 100 million yuan worth in just three days through its social media platform Douyin.

One reason behind the brand’s recent sales surge is its 50 million yuan ($7.7 million) donation to flood-devastated Henan Province in the north last month, reports Asia Nekkei. Earlier mocked for its tacky designs and poor rebranding efforts, the brand has become a source of inspiration for consumers for its appreciation of Chinese cultural heritage.

Political climate reshaping domestic consumption patterns

The nationalist consumption trend in China is also being fuelled by changing global political climate, says Ivan Su, Analyst, Morningstar. The US-China trade war and sanctions against Huawei have brought little-known domestic brands to the forefront and diminished the importance of foreign brands. In March, Western retailers including H&M, Burberry, Nike and Adidas faced widespread boycott in China for criticizing alleged forced labor in Xinjiang, home to the predominantly Muslim Uyghur people. Consumer searches for domestic brands on China’s largest search engine rose 137 per cent following the controversy,

Sales of brands Anta and Li Ning also rose 51.3 per cent and 71.9 per cent on Tmall, China's largest business-to-consumer online shopping platform, part of Alibaba Group. On the other hand, sales of Nike and Adidas fell 58.9 per cent and 79.4 per cent. Both brands also lost their endorsement deals with Chinese celebrities.

Growing demand for traditional designs

Shifting preferences of Chinese consumers are also giving rise to guochao trend, where the designs of consumer products feature strong Chinese elements. Domestic brands are increasingly focusing on indigenous design elements ranging from ancient patterns that originated in the Tang dynasty to high-tech symbols such as 5G and high-speed rail.

Chinese labels accounted for 75 per cent of most-searched brands on Baidu in the first four months of this year. Searches for Chinese digital products, apparel and beauty products emerged as the top three most popular categories. Increased demand for domestic Chinese brands spells trouble for foreign companies that consider China as an important market for them. To survive, these brands would need to keep up with the fast-changing tastes of young Chinese buyers.

The digital-first strategies of domestic brands are helping them surpass foreign competitors. The market share of national brands increased to 46.3 per cent in 2019 from 24.4 per cent, reveals China Insights Consultancy. Growth was fuelled by major e-commerce platforms such as Alibab’s Taobao, JD.com and Pindouduo, says Wang Gao, Professor-Marketing, China Europe International Business School.

Western brands launch limited editions at local festivals

International brands need to accelerate localization efforts to catch up with domestic brands in terms of both merchandising and marketing, explains Pablo Mauron, Managing Director-China, Digital Luxury Group. Some Western retailers have tried to boost their localization efforts by launching limited editions during major Chinese festivals. However, their designs were considered to be too disrespectful of Chinese tradition. Brands Burberry and Balenciaga have been panned by Internet users for their inappropriate use of Chinese phrases on luxury items.

Moroun believes, the growing popularity of gouchao brands is further likely to increase consumers’ skepticism toward Western brands. Foreign brands therefore, need to create new designs respecting local culture for the Chinese market.

With allegations of human and labor rights violations mounting, most fashion brands are on a mission to reform their supply chains. Criticized by unions and activities, brands in Bangladesh and India are gearing up to tackle labor exploitation issues in their factories. An H&M garment factory in Tamil Nadu faces murder allegations of a young worker by her supervisor. Two fire accidents in Nandan Denim factory in Ahmedabad last year highlighted the brand’s complete disregard for safety regulations with workers exposed to chemicals, cotton dust, and noises.

Lack of regulations often creates exploitative work conditions, says a report by the Swaddle. Fast fashion brands like H&M and Zara have also been criticized lately for the poor working conditions in their factories and failure to adhere to labor rights.

No social security, other benefits for workers

Most international brands fail to pay almost 80 per cent of their workers, shows a recent survey of factory employers. These workers do not get guaranteed minimum wage, which prevents them from claiming insurance and added protection.

As per a 2017 ILO study, contract workers in India seldom receive social security and other benefits even though they are eligible for Provident Fund and health benefits under law. High targets, poor working conditions and low wages leads to more than half of them quitting work quickly, reveals another 2015 ILO study.

Make worker safety a global trend

The pandemic has exacerbated the condition of these workers with millions either losing jobs, or working on reduced wages. Even in such time, brands are focusing on their profit margins rather than worker’s welfare, alleges Ayesha Barenblat, Founder, Remake. Designer Sabyasachi is facing criticism for his new collection launched in collaboration with H&M, a brand known for its faulty labor rights.

Though some of these brands are making plans to ensure that the Rana Plaza isn’t repeated, their efforts are restricted to mere lip service. To translate these into concrete actions, brands need to make workers’ health and workplace safety rights protection into a global trend, opines Nazma Akter, Founder and Executive Director, Awaj Foundation, a labor rights organization in Bangladesh. Activist Mayisha Begum adds, they need to empower workers to fight against their exploitation in the industry.

Marc Lewkowitz, President and CEO, Supima Cotton says, the 2021-22 outlook for the crop looks good despite the large drop in planted acres this year. Demand for Supima Cotton is growing and more brand partners are looking to position messaging and marketing about the extensive efforts they make to do the hard work to ensure authenticity and responsibility around their products in order to deliver upon their brand promise to their customers. There has been strong consumer support for the brand and its retail partners in the US and abroad to message and share responsible and informative information around their Supima branded products.

Supima Cotton will also hold the second digital edition of the Supima Harvest Symposium from November 16-18. This year’s edition will feature new tours of Supima farming, processing and classing that will provide insights to both current and prospective Supima customers.

As per the latest production report by USDA production of ELS (Extra Long Staple) cotton is expected to decline this year to only 371,000 bales. This is the lowest figure in the last 20 years and a reduction from last year’s 546,500 bales of production.

Application laboratory of Garmon Chemicals, Garmon Studio joined the Ellen McArthur Foundation’s Jeans Redesign Project in July. Garmon Chemicals is the textile auxiliaries business unit of Kemin Industries, a global ingredient manufacturer that strives to sustainably transform the quality of life every day for 80 percent of the world with its products and services. Garmon Studio joins 94 other garment manufacturers, fabric mills, retailers and brands – including GAP, Levi’s, C&A, H&M, Lee and Guess – demonstrating its commitment to sustainable chemicals for the garment-finishing industry.

The Jeans Redesign project provides a set of guidelines for the denim industry based on the principles of circular economy. Today, 95 percent of the brands and garment manufacturers that have accepted the guidelines have already successfully prohibited the use of potassium permanganate, stone finishing and sand blasting – practices that Garmon Chemicals eliminated with its sustainable solutions years ago.

Launched in 2019, Jeans Redesign provides a powerful framework to scale circular practices, driving the whole denim industry forward. Promoted by the Ellen MacArthur Foundation, Jeans Redesign encourages leading brands, mills, and garment manufacturers to transform the way jeans are made. The Ellen MacArthur Foundation is an international nonprofit that spans industries and is committed to the creation of a circular economy that tackles some of the biggest challenges of our time, such as climate change and loss of biodiversity.

Over 50 organizations from around the world are urging brands, governments, and employers to ensure the safety of workers employed in garment factories in Bangladesh and Sri Lanka. Unions representing Sri Lankan and Bangladeshi workers and international labor advocates have urged factory managers, national governments, and international apparel brands to:

Include garment industry in lockdowns to protect citizens from COVID-19 and prevent garment production under the pretext of continuing essential services; expand vaccination and testing of garment workers; implement the ILO Occupational Safety and Health (OSH) protection standards and Worker Rights Consortium guidelines for effective infection control in garment factories, with special attention to personal protective equipment (PPE), physical distancing, right of removal from danger and worker participation mechanisms, and adaptation of transport systems; ensure workers continue to receive their full wage in line with the demands of the Pay Your Workers campaign and allow workers to voluntarily refuse unsafe work and do not exclude those who stop working due to COVID-19 risks from unemployment, severance, or other economic rights and benefits during the crisis or penalize them with loss of contracts or work when the crisis subsides.

Gap launched Athleta brand in Canada, its first move outside the United States. Athleta will initially be available in Canada as an online-only brand. It will later open two stores at Park Royal Shopping Centre in West Vancouver in September, and Yorkdale Mall in Toronto in November. In the US, Athleta has about 200 stores, while its online purchases account for more than half of the brand’s sales.

As per the NPD Group, athleisure brands remained strong as the COVID-19 pandemic cratered apparel sales in Canada. With many people urged to stay at home, demand for comfortable clothes surged in the country. In the 12 months up to June of this year, women’s apparel sales fell by 12 per cent compared to the pre-pandemic period ended in June, 2019. Meanwhile, athleisure sales grew by 23 per cent.

Big brands also forayed into the activewear space in Canada. Earlier this month, denim maker Levi’s announced plans to buy brand Beyond Yoga, citing the need to diversify its business. Owner of footwear brands Saucony, Mernell and Keds, Wolverine Worldwide Incalso announced plans to buy activewear brand Sweaty Betty for $410-million.

Last week, Gap raised its sales and profit forecasts for this year, as its second-quarter earnings beat estimates, driven by increasing sales at Old Navy and Athleta – the two brands on which the retailer is now focusing as part of a wider turnaround plan. San Francisco-based Gap is betting on expanding Athleta, with a goal of reaching $2-billion in net sales by 2023. It also aims to increase sales at its most profitable brand, Old Navy, to $10-billion by 2023, and to close about 30 per cent of its underperforming Gap and Banana Republic store.

Largest exporter of garments in India, Gokuldas Exports plans to set up a cost-efficient manufacturing unit at Acharpura Industrial Area, near Bhopal in Madhya Pradesh. As per a Myiris report, the company has added a new wholly owned subsidiary company known as ‘Gokaldasexports Acharpura to manage the business in an efficient manner and be in a better position to service international customers.

Gokaldas Exports is the largest exporter of garments in India. The company manufactures blazers and pants (formal and casuals), shorts, shirts, blouses, denim wear, swim wear, active and sportswear. Established in 1979, the company has evolved into a one-stop solution for all leading apparels brands. It is India’s largest manufacturer and exporter of apparels and has 20 production units across the world. The company has an annual turnover of over $200 million.

Italian company Officina+30 will present its Better Seasons collection and most recent advancements and collaborations at Bluezone’s Keyhouse area at Munich Fabric Start.

The new collection perfectly embodies the company’s pillars of Trustainable approach – innovation, sustainable practices, clean information, transparency and social responsibility –, delivering a vibrant selection of bold, colorful and conscious solutions for the textile industry. These explore better ways to produce and use less through cutting edge technologies, specifically developed to reduce the use of energy and hazardous chemicals while increasing waste recycling and water conservation. Among these, Aqualess Mission and Recycrom™ allow for astounding, low impact results that preserve the authenticity and the hand-feel of each garment.

Featuring three cutting-edge laundry products for one innovative process, Aqualess Mission combines the application of Remover BC, a laser booster, Aqualess Aged, a waterless compound to give denim abrasion effects, and Ozone Powder, an advanced product to give garments a bleached yet eco-friendly treatment in a dry application, for a worn and distressed look. Compatible with conventional washing and treatment machinery, it allows for water consumption savings up to 75%. Transforming textile waste into colored powder dyestuffs, Recycrom™ provides a full range of solutions obtained through a cutting-edge upcycling production process that involves textile fibers from used clothing and manufacturing waste for dyeing and printing applications.

Developed in compliance with rigorous safety and quality standards, Better Seasons collection aims to push forward Officina+39’s commitment to the planet, its people and its resources. Having recently become part of Bluesign’s prestigious network of chemical excellences, the company works to ensure the highest quality standards, the most responsible use of resources and the lowest environmental impact.

Demand for Oeko -Tex®’s Made in Green Certificate increased for second consecutive year in 2020-21 as the association issued more than 31,000 certificates and labels an increase of 31 per cent compared to 2019/2020. Oeko -Tex® also moved forward with its new ‘Water and Carbon Footprint Tool’. For nearly three decades, the association has stood for transparency along the textile and leather production chains, consumer protection and the guarantee of greater safety and confidence for all those involved.

The number of labels and certificates issued by the association rose from 24,205 to 31,696 between July 1, 2020 and June 30, 2021. During year two of the COVID-19 pandemic, Oeko-Tex® made every effort to continue with certification and avoid supply chain interruptions. The association supported the industry and global fight against COVID-19 with waivers of over 370 Standard 100 by Oeko Tex® certification fees on mouth and nose masks. The organization implemented guidelines for virtual audits to ensure a smooth and consistent certification process.

In addition, over 620,000 workers benefit from employment in safe and socially responsible working conditions with environmentally friendly processes verified by STeP by Oeko-Tex® certification. Together with sustainability consulting group Quantis, the Association has developed the Oeko-Tex® Carbon & Water Footprint Tool to help the fashion industry reduce its CO2 emissions and water consumption. In 2021 the methodology was successfully certified by a neutral third party and implemented.

For the last few years, India has been losing its edge in the global textile and clothing exports to countries like Vietnam and Bangladesh. COVID-19 has further added to its worries with exports expected to fall around 15 per cent to $28.4 billion in 2020-21. A recent report by Wazir Advisors had predicted, India’s domestic textile and apparel market is expected to fall to $75 billion in 2020-21 from $106 billion in 2019-20. Domestic apparel market shrunk 22 per cent from $1,635 billion in 2019 to $1,280 billion in 2020. The market is expected to reach pre-COVID levels to $2,007 billion only by 2025.

Scheme to diversify India’s export basket

To restrict the fall in textile and clothing exports, Union Textile Ministry has launched the Production Linked Incentive (PLI) scheme. The scheme is awaiting approval from the Union cabinet. It has sought Rs 10,680-crore funds from the government for the revival of the textile and apparel sector. The scheme emphasizes on 40 product categories under Man Made Fibre (MMF) and 10 under technical textiles categories. It proposes incentives for both greenfield and brownfield companies. The aim is to diversify India's export products basket.

One of the highlights of ‘Atmanirbhar Bharat Yojana’ the PLI scheme allocates Rs 10,680 crore for textile and clothing sector. The scheme will be executed through the Focus Product Incentive Scheme (FPIS) and provide 3 to 15 per cent incentives on companies’ stipulated incremental turnover for five years. These incentives will be granted after a gestation period of one year for brownfield investment and two years for greenfield investment

Tapping cheap Indian labor

The PLI scheme also aims to explore the opportunity presented by China’s rising labor costs and tap India's large workforce and reasonably priced labor. The benefits of the scheme are likely to be extended to the fiber and filaments industry as well. The government also plans to introduce new schemes to sustain the sector’s revival and enhance India’s participation in global manufacturing value chains.