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Changing climatic condition is creating a rift for the apparel industry; there is a need to understand the impactful measures through data. The Higg Facility Environmental Module measures seven environmental impact areas in factories, including greenhouse gas emissions, water use, and chemical management. The Higg Facility Social & Labor Module (Higg FSLM) assesses impacts that include wages, working hours and workplace harassment. Using the modules on Higg.org, facilities can complete a self-assessment and have their results verified by a trained third-party verifier.
Through the Higg Index's groundbreaking model, global factories are empowered to take ownership of their sustainability performance, helping to reduce the exhausting audit fatigue that burdens the industry.
"The amount of data requested of facilities is extensive and critically important," Nikhil Hirdaramani, Director Sustainability from the Hirdaramani Group said. "By leveraging the Higg Facility Modules we can increase efficiency, saving time and money. By implementing a single measurement tool that fulfills the most pressing sustainability needs in our industry, we can more successfully drive sustainability improvements."
"C&A has made a strategic decision to eliminate our internal environmental and chemical audits in favor of the Higg Facility Environmental Module," said Jeffrey Hogue, C&A Chief Sustainability Officer and C&A Foundation Board Director. "In just the last 8 months, our supply chain has conducted over 400 self-assessments at key facilities having been identified as having a high environmental impact. This year 50 percent of these facilities will have been verified.
Garment exporters in Bangladesh frequently have to accept prices below their production costs. They feel they have to do this if they want to maintain business relations with their retailers. They fear losing out on work orders. Another fear they have is that if they do not accept prices below their production costs, they will lose everything and will not be able to pay workers at the end of the month. Another reason for accepting lower prices is the hope of price hike and profit in future.
Bangladesh garment suppliers are being driven down on price by apparel brands and retailers. While the unit price is going down by the season, prices of all materials and operation costs are going up. Very few buyers offer better prices. The relationship between suppliers and brands is essentially unequal. If ever there were a buyers’ market, this is it. So, the manufacturer may be asked to change the styling, add trims or change wash method of a garment but the buying team never wants to pay for these changes. Bangladesh is the world’s second largest garment exporter. If the country wants to race ahead, it needs more specialisation, more added value, and more innovation which will lead to greater bargaining power with brands.
Despite Brexit, Inditex is opening flagships and restructuring its business in the United Kingdom. Inditex has a history of more than two decades in the United Kingdom. Currently, the Spanish giant operates in the country with 108 stores. Of these, 63 are Zara stores, 13 are Massimo Dutti, 11 are Zara Home, eight are Pull & Bear, seven are Bershka and six are Stradivarius. The first Inditex store in the United Kingdom was opened in 1998. This was for Zara. In 2003 Zara Home and Massimo Dutti were opened. Bershka came to the UK in 2005 and, two years later, Pull & Bear. Stradivarius landed in 2014.
The United Kingdom is one of Inditex’s main markets. The high penetration of e-commerce in the country (the highest in Europe) as well as its maturity and closeness have often led Inditex to test its new digital strategies in the British market. In 2018, for instance, Zara opened a pop-up store dedicated only to online sales at a shopping center. The concept was later replicated in Japan and Italy. In 2019 Inditex chose the United Kingdom to implement the integration of Zara Home and Zara. The country was the first in which the Zara Home collection could be purchased within the Zara platform.
Italy’s apparel retail sales rose 3.4 per cent in September 2019 compared to the same month last year. Footwear and leather goods sales in the same period rose 4.2 per cent. Sales of perfume and personal care sector rose by 0.9 per cent.
In January 2019, fashion sales in Italy fell 0.2 per cent, then grew 2.4 per cent in February and slowed down in March, to 0.6 per cent. In April, Italian fashion sales fell again, with a drop of 1.3 per cent, while in May the fall was 4.9 per cent. In June, the sector rose 2.3 per cent and in July the rise was 1.5 per cent.
Fifteen out of the 43 European fashion giants are Italian. Apparel is the most important segment in Italian fashion, accounting for 40.5 per cent of total revenues, followed by leather wear (20.9 per cent) and eyewear (16.2 per cent). The fastest growing segment is jewelry, with an annual average growth rate of 13.3 per cent. Italy’s fashion industry has grown by three per cent on an average every year in the last decade. Its annual revenues account for around four per cent of Italy’s gross domestic output.
The apparel industry is expecting a revival in India’s exports. Readymade garment exports fell by 2.44 per cent in August 2019 compared to the same month last year and fell again by 2.17 per cent in September 2019. As a result, cumulative garment exports during April to September 2019-20 registered a marginal growth of 2.06 per cent. Further, apparel exports to the US declined 13 per cent in April-August 2019 as compared to that in April-August 2018. Exports to other major markets including Germany, UAE, Spain, France and UK have also declined.
However, given India’s strength in predominantly cotton fabric based garments, spring and summer shipments in the remaining two quarters of October-December 2019 and January-March 2020 are likely to see an uptick. Since spring and summer happen to be India’s strength this could lead to some growth in the remaining two quarters. As such, the remaining two quarters tend to perform better than the first two. At this time order bookings are really good, with a lot of exporters, especially medium players, totally booked. However, compared with last year, the overall buying is expected to be a bit low.
Growth in Q3 is expected to be around four per cent or five per cent, similar to last year.
Sportswear Pro will be held in Spain from March 24 to 27, 2020. Companies will showcase latest innovations in manufacturing technologies for sports and athleisure garments, such as heat transfer systems, fabric cutting equipment and automatic spreaders and loading systems. They can share their products with new and existing customers and sportswear producers, share ideas and connect with other industry specialists.
The Pro in Sportswear Pro stands for production. Its mission is to help sportswear manufacturers and apparel brands respond to trends in the market by giving them actionable insights into the technical innovations that are re-shaping every stage in the manufacturing process. On display will be new technologies that can enable lean, just-in-time production and personalisation, with an emphasis on reducing time to market, minimising waste and creating stand-out sports and athleisure garments. The event will address the key trends shaping the sportswear and athleisure sectors, including customisation, on-demand production, sustainability and smart wearables. Seminars will provide insights on the current state of the sports market in the Iberian region. Visitors can experience a live sportswear manufacturing showcase in Print Make Wear, a micro factory feature which will connect Sportswear Pro and the co-located Fespa Global Print Expo.
India’s exports to the US in the first half of 2019 increased. This was mainly due to the trade war between the US and China. The US tariffs on China resulted in India gaining in additional exports to the US in the first half of 2019 by selling more chemicals, metals and ore, electrical machinery and various machinery as well as increased exports in areas such as agri-food, furniture, office machinery, precision instruments, textiles and apparel and transport equipment.
The trade war has resulted in a sharp decline in bilateral trade, higher prices for consumers and trade diversion effects -- increased imports from countries not directly involved in the trade war. These trade diversion effects have brought substantial benefits for Taiwan, Mexico and the European Union. Trade diversion benefits to Korea, Canada and India were smaller, but still substantial. The remainder of the benefits was largely to the advantage of other southeast Asian countries.
Tariffs imposed by the United States on China are economically hurting both countries. Consumers in the US are bearing the heaviest brunt as their associated costs have largely been passed down to them and importing firms in the form of higher prices. And it is not only final consumers, but importers of intermediate products — firms which import parts and components from China.
US apparel imports from China fell 18 per cent in September. For the year to date through September, apparel imports from China were down 1.1 per cent, illustrating the steady erosion of sourcing from the top supplier for US fashion companies. Imports from Vietnam rose 12.7 per cent, with its shipments up 16.8 per cent from September 2018. Apparel imports from Bangladesh increased 9.96 per cent year to date but were down 3.5 per cent in the month compared to a year earlier. India’s shipments rose 8.37 per cent so far this year. Cambodia’s were up 11.13 per cent and imports from Pakistan advanced 9.41 per cent. Imports from Honduras increased 11.19 per cent year to date through September and Nicaragua’s shipments were up 19.9 per cent.
Despite the trade turmoil that in part is meant to stir interests in domestic manufacturing, the US imported 4.76 per cent more apparel year to date through September in 2019 compared to last year. However, reflecting the move to get Chinese goods into the country ahead of the September tariffs, the US imported 2.1 per cent less apparel in the month compared to September 2018.
Nearly every major apparel company in the US has slashed its sourcing from China as the raging trade war between the US and China has triggered steep punitive tariffs.
Katie Anderson has been named chief financial officer (CFO) for denim and contemporary lifestyle brand Guess?, headquartered in Los Angeles. She replaces Sandeep Reddy, who will serve Guess until December 1.
Guess CEO Carlos Alberini feels Anderson strong technical, control and finance background and broad international experience will certainly be beneficial to Guess as both continue to expand global presence.
Guess currently runs 1,162 stores around the globe. Partners and distributors operates 562 additional retail stores worldwide. In August, the company released results for its second fiscal 2020 quarter. Its revenues increased 6 percent to $683 million, according to a company statement.
GAP has estimated a 4 per cent drop in Q3 same-store sales, with declines across all its key brands including Old Navy. The drop comes as the GAP brand also has heavily discounted in a competitive retail environment. Art Peck, said to be the highest-paid CEO in retail business, has excelled over several years of sales declines at the GAP brand. GAP’s stock lost more than half its value during Peck’s tenure and is trading at around $18 a share. Peck’s compensation for 2018 was $20.7 million, filings show. As the flagship brand struggled and closed stores, Old Navy, GAP’s budget line created in 1994, continued to grow, topping $7 billion in sales last year.
Earlier this year, GAP said it will separate its better-performing Old Navy brand and shutter about 230 stores of its namesake apparel business, a process likely to be completed by 2020. Last year, GAP announced plans to spinoff Old Navy into a separate public company. GAP, which also owns Banana Republic, Athleta, Intermix, Hill City and Janie and Jack, and will hold onto those brands. It expects to complete the split in 2020.
Peck was expected to stay on with GAP through the spinoff, and Wall Street responded poorly to the announcement. GAP’s stock plunged during after-hours trading. The company also warned investors of weak sales during the third quarter and unexpectedly trimmed its guidance for the remainder of the year.
