FW
Louis Vuitton is taking steps to limit environmental damage. For the past year, Louis Vuitton has been using salpa, a type of reconstituted leather, to produce some of the models for its leather goods products, which enables it to avoid using real leather. By 2020, 70 per cent of tanneries LVMH sources from will be Leather Working Group certified. The aim is to make that 100 per cent by 2025. The group uses leather off-cuts to reduce waste.
Faster production and data-crunching about demand trends have allowed the brand to cut back on inventories. That allows the company to limit the destruction of unsold goods. Louis Vuitton now the highest sell-through of any brand in the world and destroys less than anyone else.
While the luxury label has opened factories in Italy, Spain, and the US, it is committed to keeping the majority of its supply chain in France. In fact Louis Vuitton plans to add roughly 1,500 manufacturing jobs in France over the next three years, ramping up production to feed surging demand from China and other emerging economies. Chinese consumers fueled a 20 per cent increase in sales of fashion and leather goods last quarter for Louis Vuitton’s parent LVMH.
A new workplace compliance-and-safety-monitoring body will take over the infrastructure, operations and staff of Accord as it transitions out of Bangladesh over the next several months. Accord will hand over its responsibilities in Bangladesh to the Readymade Garment Sustainability council (RSC). This national initiative will bring together industry, brands and trade unions to promote unified industrial relations, skill development and environmental standards, while carrying forward the significant accomplishments made on workplace safety in the South Asian nation since Accord’s formation in the wake of the 2013 Rana Plaza disaster, which killed more than a thousand workers and injured thousands more.
An international compact among nonprofit organizations, Western manufacturers and retailers, Bangladesh union federations, and several major global unions, Accord has monitored fire and building safety in 1,700 factories in Bangladesh over the past six years for signatory brands. It has conducted 30,000 inspections and remedied more than 90 per cent of violations at 1,000 factories.
Readymade garments make up roughly 80 per cent of Bangladesh’s export earnings, contributing almost 16 per cent of the country’s gross domestic product. Bangladesh is the world’s second largest garment exporter after China and produces clothing for some of the biggest retailers in the world, including H&M, Uniqlo and Zara.
The US-China trade war has caused US importers to diversify their sourcing to avoid risk and higher prices. PVH Corp for instance has moved a lot of its production out of the China. Next year, between 10 to 12 per cent of its requirements will be coming out of China down from 30 per cent three years ago. The tariffs have accelerated that movement. PVH Corp recognized what was ahead over the next three to four years and opened up Africa. The company moved to some other locations throughout Asia and tried to position itself with key fabric suppliers throughout the world that would enhance its supply chain.
The slow decline and flight from China has meant gains for many of its Asian neighbors. Till July this year, shipments from Vietnam to the US rose 13.05 per cent while imports from Bangladesh increased 11.53 per cent. Among other suppliers from Asia, shipments from India were up 9.56 per cent, imports from Cambodia gained 6.36 per cent and Pakistan’s shipments rose 9.38 per cent. Significant gains were also seen from Sub-Saharan Africa, as imports from the region rose 22.23 per cent, led by Kenya, Madagascar, Ethiopia and Mauritius.
Levi Strauss & Co will buy The Jeans Company (TJC), its distributor in South America. This will enable Levi Strauss to expand its reach in South America. TJC is a distributor for the brands, Levi’s and Dockers. The acquisition includes roughly 80 Levi’s and Dockers retail stores, the region’s leading multi-brand retailers and the logistical operations in these markets. This is expected to build on the strong foundation established by TJC and position Levi Strauss to accelerate growth across the Andean region. The move is expected to help streamline business operations, further diversify the business, create operational synergies and enhance shareholder value. Deploying capital through organic acquisitions is a key part of the company’s long-term strategy to become a world-class omni channel retailer.
The transaction is expected to close by the end of the year. Through the 30-year partnership, TJC had enhanced the market position of Levi’s and Dockers in Chile, Peru and Bolivia.
Levi Strauss has expanded into new categories and found new ways to make sales. Levi Strauss has had near across-the-board growth, with men’s sales up six per cent, women's rising 16 per cent and higher sales in both bottoms and tops. It also saw its global direct-to-consumer business shoot up 14 per cent year over year.
Kohl’s plans to achieve 100 per cent sustainably sourced cotton in its proprietary brands by 2025. The company will require all facilities that produce its products to meet Higg Standards by 2025. Higg Index Environmental Module is a suite of tools that allows companies to measure environmental performance. Kohl’s itself will use the Higg Index to drive substantial water reductions. Other goals include reducing greenhouse gas emissions in Kohl’s-owned operations by 2025; reducing energy consumption by ten per cent at Kohl’s facilities by 2025; expanding renewable energy platforms by building off the company’s existing 161 solar and wind locations; and supporting the transition to a low-carbon transportation system, building off the company’s existing 96 locations offering electrical vehicle charging.
The company will achieve its responsible sourcing goals by cross-collaboration between departments. Product development and merchant departments will identify product categories for proprietary brands, develop individual product styles and negotiate the purchase transaction with suppliers. The global trade compliance department will work with agents, vendor partners, and factories to monitor factory working conditions to help ensure the fair and ethical treatment of workers in a safe and healthy work environment.
The sustainable sourcing commitment comes as part of the company’s new, overarching sustainability goals.
"Gone are the days when around 95 per cent of the clothes sold in the US were also manufactured in the country. Now, finding apparels made in the US is almost like finding a needle in a haystack as around 97 per cent of all clothing and 98 per cent of all footwear is imported."
Gone are the days when around 95 per cent of the clothes sold in the US were also manufactured in the country. Now, finding apparels made in the US is almost like finding a needle in a haystack as around 97 per cent of all clothing and 98 per cent of all footwear is imported.
However, even today, more than half of all consumers prefer clothes ‘Made in the USA’. As noted by a recent survey by Cotton Incorporated Lifestyle Monitor™, nearly 74 per cent consumers check the country of origin of their clothes before buying them. It is also surprising that more men than women do this. Those over 35 years of age are more prone to check than their younger counterparts.
A fillip to the domestic economy
These consumers believe, it is important for them to buy clothes “Made in the USA” as it helps them to support
the US economy. Around 53 per cent also believe clothes made in the US are of better in quality, while 37 per cent believe they are more environmentally friendly.
Over 53 per cent consumers also emphasise on the brand’s transparency in their manufacturing process. Additionally, 51 per cent stated that they are more likely to buy from a clothing brand that honestly communicates about its environmental and societal impacts, compared to one that doesn’t.
Sustainability and quality Moreover as per the Monitor™ research, 90 per cent consumers emphasised on the feel good factor that cotton grown in the US offered. About 74 per cent believe cotton grown in the US is more sustainable than cotton grown in other countries and 62 per cent were also willing to pay more for clothes made with cotton grown in the US.
A lot of appreciation for US-grown cotton stems from consumer’s expectations about the quality of cotton. As the survey noted, around 79 per cent consumers expect the cotton produced in the US to be of extremely good and high quality. This was significantly higher than their expectations for cotton produced in other countries, such as Egypt, Australia, Turkey, Brazil, India and Africa.
Primark plans to train more than 160,000 independent cotton farmers—over five times its current enrollment—in sustainable farming methods across India, Pakistan and, for the first time, China.
The brand has been working with agricultural enterprise CottonConnect and grassroots stakeholders since 2013 to train farmers in three-year batches on ‘more natural,’ climate-appropriate techniques that slash water and pesticide use and boost cotton yields. Participants in Pakistan, where the program launched last year, for instance, saw an 11.2-percent rise in yields, a 12.9-percent reduction in input costs and an average profit increase of 26.8 percent after their first year of training, Primark said. Many of the farmers, the retailer noted, have used their surplus profits to invest in farm equipment, children’s education or housing.
CottonConnect will collaborate with the Heping Cotton Farmers’ Cooperative, its implementation partner, to introduce over 80,000 independent cotton farmers in China to the scheme. Additional farmers will also be enrolled in Primark’s existing programs in India and Pakistan.
The retailer eventually plans to use only sustainably sourced cotton across its entire product assortment.
American clothing companies are scouting for greater investment opportunities in India. They are eager for a free trade agreement between the US and India. Fifteen American companies have forwarded a proposal for improving the ease of doing business, providing higher skills to workers and drawing up a sustainable growth plan for the sector. The delegation comprised representatives from American textile majors such as Ralph Lauren, PVH (which owns brands like Calvin Klein, Timmy Hilfiger, Van Heusen and Arrow) and Carter’s. However as of now the two countries have not even been able to work out a limited trade agreement involving a few products.
Following the US-China trade war, manufacturing is moving away from China. More and more American companies are looking at moving their investments from China. On paper, India has significant strength and could be the natural successor to China. There is a window of opportunity for India to attract investments in manufacturing. In doing this, India faces a lot of competition from countries like Bangladesh, Vietnam and Indonesia. In the last four years, investments worth $30 billion in textiles have moved out of China because of various factors, including rising input costs, but very little has come to India.
Tirupur Exporters’ Association (TEA) had appealed to the Union Textiles Secretary to the address various issues faced by knitwear industry and drive the growth of Tirupur knitwear export units recently.
This appeal was made at a recent meeting with Secretary Ravi Kapoor in Delhi, held to discuss the implementation modalities, course design, scope and breadth of the upskilling component under Samarth Scheme and focus on improving the overall productivity following best practices.TEA also appealed for the reimbursement of various schemes, including rebate on state levies, amended technology upgradation funds and pending claims and subsidies to meet the financial requirements of exporting units.
TEA also sought removal of exporting units from risky exporter’s category and helping them to continue receiving drawback and IGST claims.
Vibrant Terry Towel (VTT) will be held in Solapur, from September 25 to 27, 2019. The aim of the expo is to bring together a whole people involved in this sector from cotton growers and manufacturers to traders, exporters and importers on a single platform to harness marketing and export opportunities for terry towel producers and close the gap between producers and consumers. Over 200 buyers from 20 countries and 3000 domestic customers are expected at the expo. Visitors include: department stores, wholesalers and retailers, corporate buyers, purchasing agents, merchants and exporters. Participating countries include: the US, UK, UAE, Canada, Poland, Germany, Australia and France.
Solapur, in Southeastern Maharashtra, is a major manufacturer of terry towels segment. Home to handloom and power loom weaving industries, Solapur has 16,000 looms, the largest concentration of power looms in India. Some two lakh kg of towels are made in the city daily, 60 per cent are exported, mainly to Europe, Russia, the Gulf countries, South Africa and Sri Lanka. Solapur is probably the only city in the country where all the processes are done in the same premises. The units are often run by small families who work 12 to 16 hours a day to run their businesses.
