The like-to-like sales of Fast Retailing’s Uniqlo chain in October 2018 plummeted 10 per cent as did its total sales figure. The higher-than-expected temperatures in Japan dented demand for its autumn/winter collection. It also seemed to have depressed customer footfall and the number of items each shopper who did buy actually went home with.

It’s become almost a tradition that October causes headaches for fashion retailers. In 2017, a number of otherwise-buoyant businesses around the world saw their autumn season turning negative as summer-like temperatures continued while their coats and knits appeared on store shelves and stayed there.

And the extent of the impact of the ‘wrong’ temperatures can be seen clearly when chains that are otherwise-successful, such as Uniqlo, suffer as much as those who are struggling generally.

Last year marked the seventh year of DyStar’s journey towards reducing production footprint by 20 per cent for every ton of production. This goal encompasses the resources used for production including energy, water, and raw materials as well as addresses their corresponding outputs – greenhouse gas emissions, waste and wastewater.

Intensive efforts are underway to ensure that the company’s less efficient acquisitions are provided the essential support to align with the rest of the company. As a part of DyStar’s long-term goal to imbed sustainability across the industry, the company will also be focusing on expanding its sustainability services. This includes the opening of more Texanlab offices, an ISO 17025 certified, specialised testing laboratory across South Asia to provide end-to-end solutions throughout the whole supply chain.

To encourage and facilitate sustainable practices among its suppliers, DyStar also conducts sustainability-related supplier surveys. To help meet clients’ demand and demonstrate its responsibility and care in the food and beverages industry, DyStar is implementing a supplier diversity program to support businesses in the US that are at least 51 per cent owned by minority groups, women, veterans and people with disabilities.

The latest latest Better Buying survey reveals apparel brands are hammering suppliers on price harder than ever. Prices received for orders do not cover the cost of social, environmental, quality, and other compliance requirements. Retailers and brands don’t realize increased financial pressure on suppliers raises the risk of business failure, supply disruption, and environmental and human catastrophe. They don’t realize it is impossible to make tangible improvements to things like living wages and working conditions if they do not ease the financial pressure placed on suppliers. Better Buying is a global initiative that provides retailers, brands, and suppliers a cloud-based platform to obtain data-driven insights into purchasing activities. The latest dataset shows that 55 per cent of suppliers had been affected by high-pressure cost negotiation strategies.

One way forwards is retailers and brands stop focusing on reducing costs while ignoring the implications on suppliers. The use of questionable negotiation strategies has also increased. Some of the negotiation strategies include: not paying for samples, not paying on time or not paying the full price as indicated in a purchase order. Fewer than 80 per cent of orders received from retailers or brands are priced to cover the cost of social, environmental, quality, and other compliance requirements.

North American retailers forecast more consistently and accurately than European retailers, which enhances the ability of suppliers to plan their production. What’s needed is for retailers and brands to work on streamlining their operations, create stronger partnerships with suppliers and monitor their efforts over time.

"Katie Smith, Retail Analyst and Insights Director, Edited points out the shift towards more comfortable and functional clothing led to an increase in activewear as a trend. According to the Cotton Council International & Cotton Incorporated’s activewear study, about 3 out of 5 consumers have adopted activewear as their new casual wardrobe. Additionally, 90 per cent consumers wear activewear for purposes other than exercise. And 66 per cent consider athleisure as a more casual way of dressing that will be around for a while."

The market for streetwear, despite the advent of new players, luxury collaborations and high-end designers, is still going strong. In fact, it may take quite a long time before the market, with so many crossovers and creative licenses, reaches its zenith. Brands like Nike and others continue to drive demand by producing limited quantities.

Growing popularity of activewear

Katie Smith, Retail Analyst and Insights Director, Edited points out the shift towards more comfortable and functional clothing led to an increase in activewear as a trend. According to the Cotton Council International & Cotton Incorporated’s activewear study, about 3 out of 5 consumers have adopted activewear as their new casual wardrobe. Additionally, 90 per cent consumers wear activewear for purposes other than exercise. And 66 per cent consider athleisure as a more casual way of dressing that will be around for a while.

A survey by Cotton Incorported Lifestyle Monitor Survey reveals nearly 3 out of 5 consumers prefer cotton activewear for athleisure activities like running errands or hanging out at home. A number of brands already incorporate a significant amount of cotton into their athleisure/streetwear offerings. For instance in the Fall/Winter collection of streetwear favorites like cotton tees and sweatshirts are joined by denim, a cotton corduroy shirt with flannel hood, printed and oxford button-front cotton shirts, and cotton twill shirts and pants.

As per the Monitor Survey, 9 of 10 consumers (92 per cent) believe better quality garments are made from natural fibers like cotton. And almost two-thirds of these are willing to pay more for natural fibers like cotton.

Marrying luxury to streetwear

Luxury brands like Gucci and Burberry are jumping onto the streetwear bandwagon; while other labels are bringing streetwear designers to their brand. This mixing of high and low brands and price points might seem like an illusion, but it’s been done before to great effect. Today’s young consumer has grown up on limited run, high/low collaborations between luxury designers and fast-fashion retailers. This lending of a hint of luxury to streetwear offers a sense of achievement to shoppers without hurting the designers’ names. Collaborative streetwear operates in much the same way.

While straight up streetwear often doesn’t cost much, it can be difficult to obtain, requiring waiting on lines for in-store purchasing, or paying attention to social media to plan for the next drops. Luxury labels offer streetwear both because that’s what consumer want to wear and it increases recognition among young consumers. Playing a role in every facet of the industry, streetwear is constantly evolving and shaping the world of fashion.

"CMAI’s Apparel Index for Q2 (July-Sept FY 2018-19) indicates growth has fallen to almost a no growth level and touched 0.18 points. It is the lowest ever, in last five years. Small brands are the big losers with negative growth of -1.71 points. However, big brand’s (Mid, Large and Giant together) cumulative growth of 3.39 points (much lower than 6.55 points in the last quarter) also failed to pull up the index significantly. It is important to observe, if Sales Turnover was to be considered as the only parameter for determining Apparel index, this quarter overall Apparel Index would have been negative at -1.80 ."

CMAI’s Apparel Index for Q2 (July-Sept FY 2018-19) indicates growth has fallen to almost a no growth level and touched 0.18 points. It is the lowest ever, in last five years. Small brands are the big losers with negative growth of -1.71 points. However, big brand’s (Mid, Large and Giant together) cumulative growth of 3.39 points (much lower than 6.55 points in the last quarter) also failed to pull up the index significantly.

It is important to observe, if Sales Turnover was to be considered as the only parameter for determining Apparel index, this quarter overall Apparel Index would have been negative at -1.80 .

CMAl's Q2 Apparel Index recorded a meagre growth of 0.18 points, whereas Small brands (turnovers of Rs 10 to 25 crores) is negative at -1.71points. For Mid brands (turnover of Rs 25-100 crores), growth stands at 1.03 points, almost five-times that of overall index; Large brands’ growth is 3.61 points, 20-times that of overall index. Whereas, last quarter Large Brands growth was just three-times (2.95 times) that of overall index.

As usual, it’s the Giant brands that grew the most at 8.36, 46-times that of overall index. Giant brands have consistently been doing well every quarter, their rate of growth this quarter is much more than others while being higher than the previous quarter.

At 0.18 points, overall Q2 index is much lower than previous quarter’s (April-June FY 2018-19) 3.24 points and Q2 of previous year, which was 1.87 points. While Big brands together have grown at 3.39 points, individually Mid, Large and Giant brands have grown at 1.03, 3.61 and 8.36 points respectively (previous quarter figures were: 6.35, 5.95 and 8.07 points). Only Large brands have shown some buoyancy. Mid and Large brands grew much lesser than previous quarter.

Much like all previous quarters, the biggest brand group -- Giant brands are continuously growing at the highest level, outgrowing any kind of recessionary trends. The gap this quarter is huge, in fact, its the highest ever.

Small brands, at -1.71 points, seem to be in a bad phase unable to pull along and reflect growth. They are not in a position to outsmart their business practices. Overall growth index is being pulled down by small players. In fact, Small brand’s continuously falling index is certainly a point of concern.

Sales Turnover dips but investment on the rise

The cumulatives Sales Turnover in Q2 reflected a dip for the first time at -0.72 (previous quarter was 1.88 points). Around 32 per cent brands reported an increase this quarter. Perhaps for the first time almost 45 per cent brands have reported a loss in sales turnover. Incidentally, besides Large and Giant brands, both other Small and Mid Brand groups reported sales losses. A whopping number of respondents who reported a loss in Sales Turnover were among Small brands. ‘’We were able to get a good number of bookings. This has helped us increase Sales Turnover,’’says Cantabil’s head of marketing Deepak Singla .

Sell Through recorded an Index growth of 1.14 this quarter, lower than 1.23 in previous quarter. Maximum growth in Sell Through was reported by Giant brands, followed by Small brands. ‘’Sell through has increased as cost realization is less. We were not able to make great profits as raw materials have become costlier but we have kept our prices constant. Hence, Sell Through has increased,’’ explains Manu Chawla, Propreitor, Taiga Kids .

While 53 per cent brands reported an improvement in Sell Through. However, 37 per cent brands saw no change and around 10 per cent recorded a dip in growth. As Dare Jeans owner Paresh Dedhia points out ‘’There is an increase in expenditure as everything is correlated. Inventory Holding and Sell Through has gone up as the prevailing market is slow. Buying and placing orders has come down and the cash flow is slow, hence, expenditure has increased.’’

Inventory Holding growth was at 2.1 points, higher than 1.58 points recorded in Q1. Almost 64 per cent respondents across brands have said their Inventory Holding moved north this quarter, indeed a significant number and they were responsible for pulling down overall apparel index value. Increase in Inventory Holding impacts overall index negatively. Higher Inventory Holding indicates longer holding of inventories in warehouses or shop shelves.

Investments one positive aspect of Q2 is that fresh Investments have gone up by nearly 1.80 as against 1.70 points last quarter. Highest investments came from Mid brands, followed by Giant brands. Overall nearly 86 per cent respondents reported a rise in Investments which is much higher than 77 per cent in previous quarter, indicating most brands had to invest to manage and grow which means growth is not coming easily. ‘’We are expanding and since we are venturing new markets, we need to advertise to make our presence felt and this incurs cost. There are also some fixed expenditure in opening a new store etc, hence the expenses have gone up compared to last year,’’ points out Mayank Jain, GM, Monte Carlo.

Outlook for next quarter

Around 50 per cent brands say the outlook for next quarter is ‘average’, while 38 per cent believe it will be ‘good’. Only 6 per cent feel the quarter will be ‘excellent’. However, another 6 per cent believe it will be ‘below average’. Comparatively the outlook recorded in previous quarter was ‘Good to Excellent’. Generally, in Q3 of the financial year a number of festivals come up with sales picking up, the overall mood is positive. However, this doesn’t seem to be reflected this time due to the lacklustre performance of Q2.

CMAl's Apparel Index aims to set a benchmark for the entire domestic apparel industry and helps brands in taking informed business decisions. For investors, industry players, stakeholders and policymakers the index is a useful tool offering concrete and credible information, and is an excellent source for assessing the performance of the industry. The Index is analysed on assessing the performance on four parameters: Sales Turnover, Sell Through (percentage of fresh stocks sold), number of days of Inventory Holding and Investments (signifying future confidence) in brand development and brand building.

The Apparel Index research is conducted by DFU Publications.

A new study published in the September/October 2018 issue of the AATCC Review shows, DNA molecular tagging is an effective tool to authenticate denim and maintains its integrity even after exposed to the rigors of bleaching and abrasion.

The study was conducted by Applied DNA Sciences Inc. (Applied DNA) and the Fashion Institute of Technology (FIT). It was published in the AATCC Review, a highly regarded publication of the American Association of Textile Chemists and Colors.

At the FIT labs in New York, denim swatches were treated with unique DNA molecular tags produced by Applied DNA, then subjected to stone and bleach washings. The samples were then analysed at Applied DNA’s laboratories in Stony Brook, where it was proven that the DNA tags remained intact and suitable for high quality forensic scale analysis. Based on the observed stability, DNA tags of this kind may soon be ready for testing at a full manufacturing facility to verify the authenticity of the finished denim garment.

This technology will enable brands and manufacturers to track their fibres from the farm through to the finished product, allowing for a more transparent supply chain. Traceability can also help verify certain sustainability claims about commodities and products, helping ensure good practices and respect for people and the environment in supply.

A new report from Stats South Africa revals, the country‘s fashion sector is suffering from a lack of demand and a shortage of raw materials, posted a utilisation rate of 72.3 percent in the third quarter, the lowest of any sector. The sector, which consists of textile, clothing, leather and footwear factories, saw its factory utilisation rate fall from 72.4 percent in 2017 and 71.6 percent a year ago. The average large South African factory used 81 percent of its capacity in the third quarter, a slight uptick from an 80.6 percent utilization rate in the second quarter.

The main reason for factories not running at full output was lack of demand due to the country’s struggling economy. The South African economy officially slipped into recession during the second quarter, shrinking by 0.7 percent quarter over quarter. This followed a revised 2.6 percent contraction in the first quarter. The downturn was a result of a fall-off in activity in the agriculture, transport, trade, government and manufacturing industries. The trade industry experienced its second consecutive quarter of negative growth, falling 1.9 percent, as subdued sales in motor vehicles and retail trade contributed to the decline. South African household consumption expenditure fell in the second quarter compared with the first quarter, with spending declines on products such as transport, food, beverages and clothing.

Trade between Belarus and Italy in fashion products and accessories rose by 44 per cent in the first half of the year. Italy closely follows the development of Belarusian fashion. The agreement between the Belarusian and Italian fashion chambers is yielding positive results. Over the past five years, many Italian designers have taken part in Belarus Fashion Week. There has been a significant increase in trade between the two countries in fashion products and accessories.

Cooperation between Belarus and Italy has also been actively growing in the industrial sphere, particularly in the area of supply of textile machinery. Direct cooperation in the field of design has been vibrant as well. The two countries try to foster an exchange of experiences between their representatives who work in this field.

Kyrgyz Textile and Clothing Week will be held from November 7 to 16, 2018. Round tables devoted to the development of the textile and clothing industry will be held. In addition, representatives of enterprises of the sector, government bodies, non-governmental sector and experts will discuss state support for the textile and apparel industry to attract labor to the industry; effectiveness of the training system for the industry; ensuring decent working conditions and tools for financing the clothing industry; and export competitiveness of the textile and clothing industry.

An award ceremony for winners of competitions for young designers, industrial enterprises, craftsmen and a media competition announced during the Kyrgyz Textile and Clothing Week 2018 will be held. An exhibition-fair of garments from local manufacturers will be held at the Sports Palace in Bishkek from 7 to 11 November. Kyrgyz companies will showcase their clothes, shoes, accessories, and fabrics.

All conclusions and recommendations drawn up during the discussions will be presented at the high level forum to discuss the creation of favorable conditions for enhancing the national significance and image of the textile and garment industry of Kyrgyzstan.

The event is organized by the government of the Kyrgyz Republic, the Legprom Light Industry Enterprises Association of the Kyrgyz, the Fashion Designers Association, Dayry Foundation, development partners, including UNDP, ITC, EBRD, ILO, Russian-Kyrgyz Development Fund.

More than 200 foreign fashion brands are present in Vietnam, providing a wide range of products from mid- to high-end products, which hold 60 per cent of the market share. Vietnam has become very attractive for foreign fashion brands thanks to its young population, high growing economy and improved income.

Foreign brands show a big interest in Vietnam because of the industry’s high average growth rate of 15 per cent to 20 per cent. Japanese global apparel retailer Uniqlo will open its first store in Vietnam next year. Especially since Vietnamese consumers tend to prefer Japanese goods, Stripe, another Japanese apparel manufacturing giant, has also taken steps to enter Vietnam.

Fashion brands such as Zara, H&M and Mango are already present. Thanks to the high spending on fashion goods of Vietnamese consumers, many foreign brands are having good business in the country. Late last year, Zara and H&M also made their debut in Vietnam to break open the market of fast and affordable fashion for men, women, teenagers, and children.

Vietnamese spending on clothes is now third priority, after food and savings. The fashion market in Vietnam is estimated to grow to more than $3.8 billion this year and to over $5 five billion by 2021.