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High street retailers like New Look and Morrisons have signed up to a new sustainability roadmap to ensure they are sourcing sustainable viscose that doesn't contribute to environmental pollution. They have publicly committed to permanently ditch dirty viscose production methods by 2023-25.
Viscose is the third most commonly used fiber in the world and is considered more sustainable than synthetics and cotton. However, cases of viscose suppliers and producers disregarding environmental standards have led to calls for end-user retailers to act. Especially luxury brands and low-cost retailers are accused of failing to take action on supply chain standards. Often companies allow their manufacturers to deliver viscose-based products with little information on their origin or environmental impact. Several large Chinese viscose producers dump toxic wastewater into waterways and fisheries or allow it to seep into nearby agricultural land. China accounts for 63 per cent of global viscose production.
Sustainability is not just a buzzword but is leading to a fundamental shift in the way companies operate. With increasing awareness of the environmental and social impacts of the fashion industry, people expect clothing companies to take responsibility for their supply chains. So brands and retailers are opening their supply chains up to external scrutiny.
The global market is increasingly being saturated with misleading messages about sustainability. It is becoming increasingly difficult to cut through the noise. It’s pressuring companies to create fabricated messaging. And it’s not just mills feeling the effects. Some customers are in a holding pattern and are opting to stick with what has historically worked than experiment with sustainable alternatives.
While many companies want to be sustainable, getting to that point is an investment. Different brands have different needs and price is most commonly the top priority, as many consumers want inexpensive clothing. There’s an altruistic part of the business that works on ideals but at the end of the day customers need products that fit in with their budgets. In order for sustainability to be more accessible, demand for alternative products needs to increase. And that responsibility falls on the shoulder of the customer. There needs to be a level of demand for sustainability. As more customers ask for a sustainable products, prices will go down. Though it’s a simple concept, it’s also a long game. It needs to start with denim leaders and famous brands who are able to place large orders. And then everyone needs to get on board.
Milan recently hosted the sixth edition of the CEO Roundtable, a gathering organised by fashion and e-business trade magazines published by DFV, the publisher of Sportswear International. The main theme of the event was "Commerce Innovation" and explored different aspects of the present fashion market's evolution in terms of sustainability, digital business and multichannel expansion. It involved key players of the fashion, finance, e-commerce and digital worlds, while also presenting start-ups and up-and-coming talents.
As per CITI, the continuous increase of man-made fibre (MMF) imports is deeply hurting the domestic textile industry, especially after the implementation of GST. MMF has made considerable investment to enhance its capacity building to meet the desired target of reaching $350 billion market size by 2025. However, post GST, there was a rise in imports of all the MMF products. Imports of MMF yarn and apparel also rose by 83 and 84 per cent respectively.
The main reason for this was the removal of CVD after GST, which made imports 12 per cent cheaper, overnight. To control imports, the government subsequently increased import duties on fabrics and garments. Thus, there has been a relative control on the imports of fabrics, but, this measure could not control garments due to FTAs.
The highest share in Indian MMF textiles was of polyester bases products. Since 2014-15, import of polyester yarn has risen by a CAGR of around 13 per cent to hit $ 95 million. Imports from Indonesia increased exponentially at a CAGR of 59 per cent for 2018-19 and in this period, Indonesia has also been the biggest supplier of polyester yarn to India.
Kering has teamed up with the Institut Français de la Mode (IFM) to launch the first higher education research and teaching center dedicated to sustainability and corporate social responsibility in the fashion industry. French fashion giant Kering owns brands including Gucci, Yves Saint Laurent, and Alexander McQueen. IFM is rated as one of the world's leading higher education institutions for fashion.
The center will focus on a wide range of topics related to sustainability, from traceability to measurement, as well as eco-responsible business models. Aspects of creative ecology will also be studied in order to identify ways in which creative teams can develop ecological fashion and propose new sustainable creative offerings while developing tools for measuring and appropriating environmental and social issues. Students can develop a 360° understanding of the challenges of sustainability so that they can participate as future professionals in the industry’s transformation. Research work will include mentoring doctoral students on university theses, contributing to scientific publications and participating in conferences related to its program and issues. Training modules dedicated to responsible fashion will be developed for training courses ranging from French vocational qualifications through to the master’s level, as well as for continuous training for companies.
The US has imposed duty on imports of polyester textured yarn from China and India. This followed complaints by yarn makers in the US like Unifi and Nan Ya Plastics of unfair trade practices.
Foreign companies that price their products in the US market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks or production inputs, are subject to countervailing duties aimed at directly countering those subsidies. Exporters from China and India are said to have dumped yarn in the US at margins ranging from 76.07 per cent to 77.15 per cent and 17.62 per cent to 47.51 per cent respectively. The US also determined that exporters from China and India received countervailable subsidies at rates ranging from 32.18 per cent to 473.09 per cent and 4.29 per cent to 21.83 per cent respectively.
In 2018, US imports of polyester textured yarn from China and India were valued at an estimated $45.5 million and $21.6 million respectively. Unifi feels the dumping and unfair subsidies have negatively impacted its business but believes recent trade developments, including the antidumping and countervailing duties, will provide meaningful opportunities over the next few quarters.
For the latest quarter, Target’s apparel sales were up more than 10 per cent. This also helped to strengthen the retailer’s profit margins. In the fashion department, it has refreshed stores to make individual brands look more like their own mini boutiques, with more mannequins and table displays showing off merchandise. It has launched dozens of in-house apparel brands over the past three years, such as A New Day for women, Auden for lingerie and Goodfellow & Co. for men. The commitment to a new store operating model, where there are dedicated business owners in that apparel category, is driving results. The combination of the work done with its own brand assortment, adding some new national brands like Levi’s in select stores, the service delivered in stores, and the inspiration created online has come together.
For Target, apparel has been one of the highlights of the quarter. Apparel margins are healthy because Target is selling more clothes at full prices, even at the end of the season. During the latest quarter, Target generated some buzz with its anniversary collection, which celebrated all of the designers the company has partnered with in the past. The collection has been driving footfalls to stores.
Levi Strauss is cutting its reliance on wholesalers and refocusing on women’s clothing. Now the women’s business is one of the company’s biggest growth engines. Levi Strauss was the first brand to ever sell women’s jeans. One problem that had to be reversed was a focus on sales of women’s jeans exclusively when shopping data showed that five tops are sold for every bottom. The turnaround led to a successful initial public offering earlier this year.
Less than 20 per cent of Levi’s supply is sourced from China (Southeast Asia and Mexico are big suppliers) while the amount coming into the US market is less than two per cent of its business. But China represents three per cent of the apparel company’s total business.
Levi Strauss is known for its brands Levi’s, Dockers, Signature by Levi Strauss and Denizen. It is implementing a strategy aimed at significantly reducing overall water use. Its suppliers are already engaged–and deeply invested–in the effort to reduce water use. In water-stressed regions, suppliers have begun to install water-efficient machinery and recycle water. The company will help its suppliers identify worthwhile investments in water projects and, in doing so, help them be successful over the long term.
Denimsandjeans will hold its first Japan show on March 4 and 5, 2020. The trade show will primarily focus on technology. The event will showcase 40 exhibitors representing various areas of the denim production process. Their latest innovations will not only add function but also a design appeal for consumers. Attendees will share insights on design innovation, sustainability and other topics surrounding the denim and sportswear industries. The aim is to create a niche show in Japan which will aggregate the best innovators in the denim and related sportswear industries and showcase the latest products to visitors.
The Japanese market has always been an inspiration for the denim industry, especially in terms of raw selvedge denim. The Japanese have mastered the art of weaving and crafting five-pocket jeans. Custom-made production methods have begun to spread due to technologies such as AI. The Japanese have an artisanal approach before machines are used: the dyeing, the cotton, the way the fabrics and garments are finished. Japan is known as a blue jeans nation and Japan itself is a very rich country in its textile weaving and dyeing traditions, dating back in centuries. Japanese fast fashion brands have grown substantially in the past few years.
Due to the current uncertain macroeconomic climate, Picanol Group anticipates its adjusted EBITDA for FY 19 to be lower to as compared to 2018. The company also believes that current slowdown in the global machine market will not be compensated by the segments of Tessenderlo Group.
Tessenderlo Group forecasts the adjusted EBITDA for 2019 to be approximately 270 million euro. This includes the full year contribution of T-Power for approximately 50 million euro, as well as the impact of IFRS 16 Leases for approximately 25 million euro. This amount is significantly higher as compared to the adjusted EBITDA of 177.8 million euro in 2018, when T-Power was only included for the fourth quarter of 2018 for 13.5 million euro.
This revised outlook for the financial year, 2019 reflects the extension of the agro season in the US, which has resulted in increased volumes within crop vitality, and a volume increase and improved mix within bio-valorisation.
