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Cotton Association of India (CAI) has written to Prime Minister Narendra Modi to reduce the duty drawback of 5-8 per cent for export of cotton and cotton yarn. This will not only boost exports but also stabilize the cotton market and the benefit will go to India’s cotton-growing farmers and entire trade will get work. The government will earn foreign exchange if the export of cotton and cotton fiber picks up.
CAI expects to export 42 lakh cotton bales up to September 2020. So far, the association has shipped around 32 lakh bales which leave another 10 lakh bales to be shipped in the next five months from May to September. The association can easily achieve these targets if prices remain at this level.
CAI views that imports are currently not feasible because Indian prices are currently the lowest in the world while the prices across the world market at Rs 33,000-36,000 per candy. CAI had estimated import targets at 25 lakh bales of which only 12 lakh bales has happened so far.
As per latest data released by the government of India, export of formal jackets saw negative growth of 4.02 per cent in 2019 over previous year. The export of the commodity totaled to $ 241.33 million last year.
Under this commodity, jackets and blazers made of other textile material is the major exported product. The export value of this product totaled to $ 97.30 million with a growth of 9.09 per cent in 2019 over the previous year. Cotton jacket and blazer exports is second most exported item with a value of $ 57.86 million, but the product perceived a negative growth of 3.28 per cent in 2019 over the previous year.
Export of causal jackets perceived a negative growth of 5.25 per cent in 2019 over the previous year. Under this commodity, jackets made of cotton is the most popular and exported product. The product’s exports totaled to $49.87 million with a growth of 9.80 per cent in 2019 over previous year. Exports of jackets made of synthetic fiber declined by 6.09 per cent to $35.95 million.
Sport jackets registered an export of $25.1 million with a growth of 21.08 per cent in 2019 over the previous year. Under this commodity, exports of life jackets and lifebelts grew by 12.36 per cent in 2019 to $16.55 million.
Although Hugo Boss has begun reopening stores in Germany and Austria, the brand is recording low shopping turnout and expects its second quarter sales to fall by at least 50 per cent. Online sales in the first quarter accounted for 11 per cent of total sales and accelerated again strongly in April, with sales more than doubling on its own site and via partner websites and demand particularly strong for sportswear. The brand reopened stores in China in March-end. However, sales in April declined by 20 per cent over its previous year.
The brand’s first quarter sales were recorded to be €555 million ($605 million), while it posted a loss before interest and taxation of €14 million, which was worse than the average forecast of €6 million.
The company, which had already announced moves to protect its cash balance such as suspending store renovations and new openings and limiting the inflow of stock, has no plans to seek state aid. Instead, it aims to cut inventory inflow at least €200 million compared to its original plan, including cutting its own production.
A Care Ratings report suggests, revenues of the Indian cotton yarn industry are likely to decline and margins will remain moderate due to weak demand and shutting down of manufacturing units. Smaller companies with high debt levels, limited access to bank funding and limited liquidity buffer are expected to be impacted the most compared with their larger counterparts.
The Indian cotton spinning industry, which was already facing multiple headwinds such as low demand, unfavorable duty structure and fluctuating cotton fiber prices, is now confronted with yet another challenge in the form of COVID-19 pandemic. Facing lean demand since 2014-15, with intermittent spells of good periods, the Indian cotton yarn industry was expecting a change of fortune in 2019-20.
The estimate of bumper crops in the cotton season of 2019-20 was expected to bring respite to the sector.
The benefit, which was anticipated to come from lower fiber prices, is now expected to be more than offset by the fresh set of challenges brought in by COVID-19 outbreak.
At the Kingpins24 online event, Artistic Milliners and US Denim featured innovative denim fabrics that are sustainable, comfortable and antimicrobial. Artistic Milliners presented its Bio Vision 2.0 collection that is based on guidelines set by the Ellen MacArthur Foundation’s Jeans Redesign, featuring biodegradable fibers that provide optimal recovery. The mill’s circular focus is also displayed in its Circular Blue New collection, which is made of 100 per cent recycled cotton and uses post-consumer, pre-consumer and industrial waste.
US Denim’s latest collections also focus on sustainability and feature recycled and biodegradable fibers. Its Reborn product is “sustainable from every angle” and uses recycled cotton, elastane and polyester; aniline-free dyestuff; and water-safe dyeing methods.
The Pakistan-based fabric mill also highlighted its use of cottonized hemp, which checks off multiple boxes for consumers, as the fiber is both sustainable and naturally antimicrobial. Its IntelliJeans collection features hemp sourced from China that is free of pesticides and uses 86 per cent less water than conventional products.
Artistic Milliners offers a similar take on antimicrobial denim with its hemp-based Buttery Soft 2.0 collection. Made with water-saving dyeing techniques, denim in this collection provides the comfort of sweatpants with the look of an authentic jean. And while most jeans lose their softness over time, this denim was specially designed to get softer with every wash.
Copenhagen Fashion Week has been selected as one of the 30 semi-finalists of the 2020 European Social Innovation Competition (EUSIC): Reimagine Fashion among over 760 entries from all over Europe. Copenhagen Fashion Week, with fashion brands and companies, strives towards making substantial changes to the way the event is executed.
Copenhagen Fashion Week has been selected for its plans to reinvent the event by introducing minimum sustainability requirements for any brand wishing to participate - thereby transitioning from being a traditional fashion week to becoming a platform for industry change, according to a press release on the show.
The EUSIC is a challenge prize run by the European Commission across all EU member states and Horizon 2020 associated countries. Now, in its eighth year, the competition acts as a beacon for social innovators in Europe - employing a proven methodology for supporting early-stage ideas and facilitating the emerging of a network of radical innovators shaping our society for the better.
Gap Inc has launched Gap Teen, a collection of apparels for its Gen Z girls. Focusing on denim, the collection offers a range of hoodies, shorts, tops, skirts and more, all made using processes that "save water and reduce waste," Gap said, tapping Gen Z consumer interest in sustainable products.
Select pieces from the debut collection are made with 100 per cent organically grown cotton and Lenzing EcoVero, a fiber made using pulp from renewable wood sources. Others are made as part of Gap's 'Washwell Program' that uses at least 20% less water than conventional wash methods. Meanwhile, some items are made in a factory that runs the Gap Inc. P.A.C.E. (Personal Advancement & Career Enhancement) program, the company's educational program that helps women workers develop new skills to advance in work and life.
This week, Gap parent company Gap Inc also delved into new categories by appointing IMG as its first-ever exclusive multi-brand licensing representative. In late April, the company suspended rent payments for stores that have been temporarily closed in response to the Covid-19 pandemic, and warned that it may not survive the next 12 months, as coronavirus shutdowns wreak havoc on the retail world.
By comparing performance from 2014 to 2019 in the industry’s eight most important sustainability areas, the Australian Cotton Sustainability Report 2019 also highlights areas the industry can do better in, such as the need to make greater efforts to reduce carbon emissions, improve nitrogen use efficiency, increase on-farm carbon sequestration in soil and native vegetation, and improve farm safety.
The 2019 Australian Cotton Sustainability Report is part of the industry’s new Planet, People, Paddock, sustainability framework which guides the industry to set ambitious targets, coordinate a whole-of-industry strategy to achieve these targets, and engage effectively with stakeholders on actions and progress.
Cotton Research and Development Corporation General Manager, R & D Investment, Allan Williams says data from the report can be used to set five-year targets for 2024 and 2029, and plans to achieve those targets. The industry can point to long-term trends of significant improvement in areas it has focused on in the past, and we will draw on this experience to transform our performance in other areas in the future
In the first quarter of 2020, the revenue of the Lenzing Group declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 million. The main reason was the development of prices for standard viscose and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/tonne by March 31 – up to 33 percent lower than in the prior-year quarter.
The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortisation) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.
Lenzing also implemented two most important long-term investment projects to strengthen internal pulp supply and to increase the share of specialty fibers in line with the sCore TEN corporate strategy is progressing according to plan. After the decision to build the dissolving wood pulp plant in Brazil with a capacity of 500,000 tonne, the Duratex Group acquired a 49 percent share in the joint venture LD Celulose as agreed in the first quarter of 2020. Lenzing holds 51 percent of the shares.
In the first quarter of 2020, Lenzing completed the second pilot production plant for its TENCEL™ Luxe branded filament yarn. The new facility at the Lenzing site with a total investment of EUR 30 mn provides sufficient capacity for the development of commercial programs and further fiber applications.
Akira Kawashima, Senior Director, Japan Fashion Week Organization/Textile Division
“Due to the turmoil caused by COVID-19, global apparel and textile industry has been greatly affected. In Japan, many people are forced to work from home and consequently not only individual workers (including freelancers) but also company employees are frightened of large-scale personnel-cuts. Incomes have reduced to 60 per cent of normal. Amid such a situation, people’s desire for ‘dressing’ is low. This tendency will continue for a while even after COVID-19 is over, which will lead to local small-mid-sized textile companies suffering from lack of funds, as they cannot wait for recovery, causing more bankruptcy and/or voluntary closures.”
How will COVID- 19 impact Japan’s apparel & textile industry’s business in the mid to long term? What is the most critical aspect?
Due to the turmoil caused by COVID-19, global apparel and textile industry has been greatly affected. In Japan, many people are forced to work from home and consequently not only individual workers (including freelancers) but also company employees are frightened of large-scale personnel-cuts. Incomes have reduced to 60 per cent of normal. Amid such a situation, people’s desire for ‘dressing’ is low. This tendency will continue for a while even after COVID-19 is over, which will lead to local small-mid-sized textile companies suffering from lack of funds, as they cannot wait for recovery, causing more bankruptcy and/or voluntary closures.
Obviously, industry may not get back to ‘business as usual’, what according to you will be the key changes and in what areas?
In Japan, textile industry is organized through division of labour. Therefore, once some parts/companies of the supply chain disappear, it will be difficult to produce fabrics under the same conditions like before. The textile regions will be greatly affected due to the closure of some small-mid-sized companies in the region. Definitely, the industry will not recover previous state of business.
Emotional and economic backlash on China, how would that change global supply chains?
Due to the outbreak, the risk of China has become clear once again. However, since there are no other countries that possess big market with well-developed production infrastructures like them, it is most likely China’s superiority will remain unchanged even after COVID-19 ends. In terms of products such as uniforms, however, it seems certain that more production will shift to ASEAN countries instead of China via trading firms.
What is the impact on upstream/downstream across the supply chain and on retail and above all what are the changes in consumer behavior?
Working ways of people will be reviewed; working style (work from/at home) will be normalized due to COVID-19, and there will be more tele-working/remote working even after the pandemic ends. Consequently, the occasion to go out will reduce and people will be less conscious of how they look, which will be a tremendous disadvantage for the fashion industry. Consumer activities will increasingly focus on online shopping, which will considerably diminish the need for real stores/shops. There will be clearer products uploaded on websites, which will be an unfavorable situation for Japanese fabrics whose specialty is ‘delicate and nuanced texture’ therefore, demand will fall. After COVID-19, people’s desire will mainly shift to travelling, sports with companions, eating out with friends/acquaintances etc, also equally important will be ‘how to spend a comfortable and pleasant life at home’. In that regard, an interior-field is promising probably some local textile makers/companies might shift from making fashion textile products to interior applications.
What is your advice, how should companies face the future?
In the beginning of 1990’s, the scale of Japanese apparel market was the largest, double the size of the US. It was partly due to the bubble economy, but it was clearly abnormal even in comparison with the US population. At that time, most Japanese apparel/textile companies with big domestic markets used to concentrate only on domestic competition, without aspiring for exports. Although domestic market has slowed down over the years, taking a long time view, the change after this COVID-19 will occur instantly and dramatically. Therefore, only companies that ride the wave with a positive attitude will survive, while the passive ones will not.
