Footwear majors in the US are disappointed by the tariffs on Chinese imports.

Since higher tariffs will raise the cost of shoes, they would like footwear to be removed from the proposed list of Chinese imports with higher tariffs. Almost 70 per cent of shoes sold in the US come from China. Duties of over 67 per cent apply on footwear imported from China.

China is not only an important supplier but also a key customer base for footwear companies. The US-China trade war might create negative sentiment against US brands in China and cause Chinese consumers to prefer local brands. About 23 per cent of Nike’s footwear is sourced from China. Also China is a major apparel supplier for Nike. It accounts for 27 per cent of the company’s apparel business. Greater China accounts for about 17 per cent of Nike’s revenue. All of Skechers’ net sales are derived from sales of footwear manufactured in foreign countries, with most manufactured in China and Vietnam. Five key manufacturers in China, Vietnam, and Indonesia make up about 87 per cent of Under Armour’s footwear products. For Columbia Sportswear, China and Vietnam account for almost all of the company’s footwear production.

While some textile and apparel companies are interested in social issues, their focus largely has been on the environmental impact of their operations. These companies are unsure of how to integrate and address social, let alone gender considerations, as they experiment with these new models, their potential impacts and how to take them to scale.

Committed to partnering with companies and stakeholders to realise circular economy models that work for people, BSR is working with the C&A Foundation to explore the ways in which advancing circular fashion affects people and in particular, women. C&A Foundation has requested proposals for initiatives to understand how to enable positive outcomes for workers, employees, entrepreneurs, customers and the broader society. The RFP intends to establish evidence on how new circular business models operate and can, by design, drive better outcomes for people.

Lenzing’s revenue increased by 1.2 per cent in the first half of 2019. The share of specialty fibers in revenue, at 48.4 per cent, significantly exceeded the prior-year value of 44.1 per cent. Ebitda dropped by seven per cent. This decline primarily resulted from higher production volumes and currency effects, which led to an increase in pulp costs, from an increase in personnel expenses and the market environment for standard viscose. The ebitda margin declined from 18.1 per cent in the first half of 2018 to 16.6 per cent in the first half of 2019. Ebit (earnings before interest and tax) fell by 17.9 per cent, resulting in a lower ebit margin of 9.7 per cent. Net profit for the period decreased 15.9 per cent.

Lenzing will use block chain technology to support its Tencel branded fiber business, ensuring complete transparency and traceability for brands and consumers of its fibers in finished garments. In the second quarter of 2019 Lenzing announced a cooperation with a Hong Kong based technology company to accomplish this ambition. Lenzing will carry out several pilot tests involving partners along the entire value chain and expects the platform to be operational as of 2020.

Sports Direct, owned by retail entrepreneur Mike Ashley, has bought UK fashion chain Jack Wills’ and taken over its distribution centre, 100 stores and employees across the UK and Republic of Ireland in a ‘pre-pack administration’ deal. The brand’s five stores in Hong Kong have been shuttered and staff told to collect their belongings. The future of its stores in Singapore and the US is not yet known with alternative options being considered by the company’s directors.

The Jack Wills business has about 1,700 staff spread across the business, six franchised stores in Kuwait, Saudi Arabia, the UAE and the Channel Islands, and an e-commerce channel serving 130 countries.

Private-equity owner BlueGem began canvassing for prospective buyers for Jack Wills early last month after engaging advisory firm KPMG to prepare a review of the business’ prospects. According to company’s office records, the brand lost £29.3 million for the year to January 31 last year, and a £28 million cash injection from BlueGem in January this year has been almost exhausted.

At the 25th anniversary of Intertextile Shanghai Apparel Fabrics – Autumn Edition 2019, six new design studios will join its vibrant Verve for Design product zone. These include the Found Design Studio (UK), Fusion (Denmark), Les Dessines (France), Owens and Kim (UK), Soge Studio (USA) Tek Desen (Turkey). The fair will be held concurrently with Yarn Expo Autumn, CHIC and PH Value from 25- 27 September, at the National Exhibition and Convention Center (Shanghai). The International Halls will be in halls 4.1 and 5.1.

Intertextile Shanghai Apparel Fabrics – Autumn Edition 2019 is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. The fair will feature a comprehensive range of over 140 exhibitors from Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Switzerland, Turkey, the UK, etc. The Premium Wool Zone will feature over 20 wool suppliers from France, Italy, Hong Kong, Peru and the UK.

To deal with declining cotton yarn exports, textile units in India are planning to cut production by 50 per cent to bring down borrowing/outstanding and stocks. Spinning mills in Andhra Pradesh have also declared a production holiday from July to cut down on the number of working days the backdrop of a decline in exports and rising production costs.

Spinners in Gujarat are also cutting production by 15 per cent as the state witnessed a 30 per cent decline in exports. The demand for apparel and fabric also declined as weavers reduced their inventory gradually to cope up with the situation. Exports to China dropped nearly 50 per cent while those to Bangladesh, Vietnam, and Columbia also declined. As per Cotton Textiles Export Promotion Council, cotton yarn exports from India declined by 33 per cent between April and June of FY 2019 compared to the same period last year.

Cotton yarn exports from April to June 2019 were reported to be 226 million kg as against 338 million kg during the same period last year. In June 2019, these exports declined by 50.74 per cent less as compared to June 2018.

Concordia Textiles plans to introduce a circular business model by leveraging PurFi’s waste upcycling solution. This solution yields high quality regenerated fiber from surplus stock. The recycling technology utilises product-specific data to monitor its incomings and outgoings, as well as the credentials of each bale before a patented solution separates and recycles textile fibers. The partnership combines the patented technology of PurFi with Concordia’s extensive know-how of fabrics and contributes to textile upcycling on a global level. It will utilise waste in manufacturing.

Concordia Textiles is a Belgian manufacturer. The company is trying to become a case in point for a fully-functioning facility upcycling waste garments that can then be recycled to a standard that’s equal to virgin fiber. PurFi is a recycling innovator based in the US. PurFi’s rejuvenation process makes use of fabric data and target data, information relating to bale-specific characteristics, such as fiber uses, an approximate yarn count, and finishes or treatments added and a predetermined algorithm generated for specified textile outputs. Essentially, the company knows the specifics of incoming waste before it arrives which enables it to act quickly and accurately to ensure garment waste is separated accordingly and recycled to yield a high quality product once more.

For the first quarter Garware Technical Fibers net sales decreased by 4.9 per cent. Profit before tax reduced by 8.6 per cent. Net profit after tax dropped 5.7 per cent. Garware Technical Fibers is a manufacturer of technical textiles. The year began with a steady performance in the synthetic cordage segment. The company’s V2 technology based products are seeing good customer acceptance and excellent order flow.

Garware caters to various segments like aquaculture, sports nets, agriculture, geo textiles, etc. through a diverse range of netting products, ropes, coated fabrics and others. Over the past four decades, Garware has built a strong reputation for quality, value addition and application-focused innovation. Its solution segments are niche. These solutions are focused on progress and productivity for agriculture and fisheries, which typically constitutes almost 15 per cent of India’s GDP. With over 20 patents to its name, Garware Technical Fibers is an idea-driven company that achieves valued-added solutions that impact businesses significantly and adds unmatched value to customers. The company was earlier known as Garware Wall Ropes. Working on a long-term strategic plan, the company has identified its niche in the large and growing global market for technical textiles and drawn clear plans to expand its presence in specific sectors and product lines.

Consumers expect companies to source and produce goods ethically and sustainably. Everyone is familiar with certain aspects of supply chain sustainability and ethical production programs. These include maintaining air and water quality, reducing water use, using land and other natural resources responsibly, and producing and releasing less toxic waste. But there are other important factors to consider, too, such as human rights abuses and child labor in the supply chain.

While brand risk remains a significant threat for companies that don’t have full visibility into their supply chains, regulatory risk carries the potential for huge fines. In addition, regulatory risk can quickly morph into reputational risk, compounding an already serious problem as headlines about seizures and violations kill stock prices, scare off consumers and create pressure for a change in company leadership.

The ability to quickly trace a product to its source via an automated supply chain execution system is necessary in these circumstances. Companies that implement a consolidated global trade management solution that connects the trading partner community with product data and retailers’ purchase orders can achieve better results. A software solution for global sourcing and supply chain collaboration can help brands get visibility into key aspects of their sourcing and production operations.

Adidas’ revenues increased four per cent in the second quarter. This was driven by a 37 per cent increase from e-commerce sales and a 14 per cent increase in sales from China. Operating profit grew by nine per cent. Operating margin rose 11.7 per cent after an 11.3 per cent rise a year ago. The company negotiated better terms with suppliers, sold more high-margin products and scaled back on discounts.

The German sports retailer’s half-year performance could have been even better had the group not faced supply shortages in the US. As a result of supply chain issues, Adidas was not able to meet the higher-than expected demand for mid-priced apparel in the US. In March, the business forecast a loss in sales, equating to one per cent to two per cent of revenue this year. But Adidas remains confident about the sequential revenue acceleration in the second half of the year and expects a full-year growth of five per cent to eight per cent.

In 2019, Adidas is upping the pace of change. The company will produce a landmark 11 million pairs of shoes using upcycled marine plastic waste, intercepting vast amounts of plastic from entering the oceans.