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Prosperity Textiles, based in China, is a denim producer. And what makes Prosperity stand out is not simply its products but its ability to meld flawless denim fabric production with a sustainability-oriented mindset that permeates every stage of the textile supply chain. Prosperity has adopted innovative green manufacturing concepts through all stages of the company’s operations, from product development, raw material procurement and processing, to natural resources and energy utilization including waste management. Prosperity’s denim production is based on the employment of best quality yarns available on the market, while still targeting the most sustainable sources, from BCI to organic, recycled cotton, and from Tencel Lyocell to Sustans.

The introduction of eco-friendly dyeing and finishing practices allows the company to create indigo shades and performance denims, with less water and energy consumption compared to traditional systems. Last year, Prosperity produced 20 per cent more fabrics than in 2016, yet water and electricity use and greenhouse gas emission were down by 11.5 per cent, 7.9 per cent and 5.4 per cent. The company with 1,300 employees and 20 offices worldwide will open a state-of-the-art denim mill in Vietnam by the end of 2018. This facility will have Itema’s Isaver, which significantly reduces raw material waste, leading to tangible benefits in terms of machine efficiency, cost reduction and energy saving.

 

As per former Australian foreign minister Julie Bishop, China forced Australia to abandon a planned free trade agreement with Taiwan because it wanted to isolate the island’s pro-independence president Tsai Ing-wen, It was expected that Australia, after signing a FTA with China in 2015, would pursue a similar agreement with Taiwan. However, Australia decided to abandon the deal after president-elect Donald Trump assured Taiwan president Tsai ing of elevating relations with US, triggering the start of his diplomatic stand-off with China.

Since then Australian businesses have been losing export share in Taiwan to rivals from countries that have FTAs, and have started lobbying for the start of formal negotiations. There is particular concern that New Zealand firms, benefiting from low-tariff access to Taiwanese markets, have been able to undercut Australian export prices for dairy products.

 

A McKinsey report suggest, western mass-market brands may reduce sourcing from countries like Bangladesh for manufacturing readymade garments (RMG) in the coming years. The apparel marketing companies are likely to gain from sourcing Mexico or Turkey, in the neighborhood of the US and Europe respectively, instead of Bangladesh. The report emphasised the apparel companies' need to focus on near shoring, automation, and sustainability to meet customers’ needs.

According to McKinsey, a 5-percentage point increase in sell-through would make up for the higher labor costs encountered closer to home. The US firm called 'chasing cheap' products in Asia outmoded as low-cost has, in some cases, become synonymous with low-quality and low-compliance in a world where transparency and ethics are in high demand, too.

By 2025, 82 per cent of respondents in the McKinsey-Sourcing Journal survey expect to move more than 10 per cent of their total sourcing volume to near shoring locales. Such a scenario may affect the potential growth of Bangladesh's garments, a more than $36-billion industry with the highest concentration of laborers.

 

Friday, 26 October 2018 12:32

RCC to replace Accord after November 30

The government of Bangladesh says the Remediation Coordination Cell (RCC) – effectively an internal replacement for the Accord made up of internal factory inspectors and engineers – is now ready to take over Accord’s work. The handover of the work has been going on for some time. Bangladesh does not plan to extend the tenure of Accord beyond November 30 which could potentially endanger the lives of garment factory workers. The tenure of Accord was initially supposed to end in May but the government extended it by six months.

There have been international calls by MEPs and labour rights NGOs for this deadline to be extended, however, Mujibul Haque Chunnu, state minister for labour and employment, has now confirmed the timeline will be adhered to. More than 50 MEPs recently signed a letter by Dutch MEP Agnes Jongerius, urging EU Commissioner for Trade, Cecilia Malmström, to take action to avert premature closure of the Bangladesh Accord.

 

As per WGSN, a firm that provides advisory solutions, emerging attitudes around age, gender and disability is likely to shape the future of retail space. Designing for sustainability will be the key as consumers are becoming increasingly aware of the damage they are causing to the environment. Retailers will offer technology-led experience that will also meet increasingly high expectations around service, personalisation and convenience.

 

Future retail spaces to offer high touch seamless experience 001As per WGSN, a firm that provides advisory solutions, emerging attitudes around age, gender and disability is likely to shape the future of retail space. Designing for sustainability will be the key as consumers are becoming increasingly aware of the damage they are causing to the environment. Retailers will offer technology-led experience that will also meet increasingly high expectations around service, personalisation and convenience.

Shift to smaller format stores

As selling space is shrinking, more retailers are opting for smaller format stores. These stores allow greater experimentation with flexible merchandising and tightly-curated edits. IKEA for example, is experimenting with compact stores in Southeast Asia, opening a 28, 000 sq ft store in Phuket, Thailand. The retailer aims to make smaller investments so it can respond better to demand and be able to open stores in crowded city centres.

Since space on the sales floor is limited, fitting rooms are being stocked with behind-the-scenes operating system that pullsFuture retail spaces to offer high touch seamless experience 002 items from the stockroom. Similarly, strategies like interstitial fixtures in corridors, queue areas and corners are gaining importance, along with space-saving ideas such as clever ceiling or wall installations, or displays worked into niches and panels.

A wholesome shopping experience

Retailers are developing stores around changing consumer attitudes, with spaces and experiences that encourage a mental or physical reset. Lululemon is introducing meditation space at its new store near Rockefeller Centre in New York. The concept store features cushioned “Zen pods” where visitors can listen to one of 12 self-guided meditation recordings. The US brand has just opened a pop-up experiential space in New York called Life Coach, dedicated to self-improvement. Visitors can book in for free sessions with tarot card readers, astrologists and mystics, or play games and partake in activities that encourage self-expression.

Focus on sustainability

Gen Z and millennials want to preserve their items for long, and are willing to pay to keep them in good condition. This is driving new aftercare and product preservation strategies, such as specialist sneaker cleaning, bag and shoe repair services and in-store laundries. These services help brands to connect more meaningfully with customers beyond the initial transaction and encourage repeat store visits, as well as build sustainable credentials. Department store retailers are dedicating floor space to product care, with stores like Selfridges and Harvey Nichols incorporating bag repair clinics into their London flagship stores, while Saks Fifth Avenue hosts a space in its men’s department for footwear repair service, The Leather Spa.

Branded launderettes on the rise

Branded launderettes are on the rise, extending brand reach across all aspects of the product journey. Denim label Denham already offers in-store washing services, while fashion-focused boutique launderettes such as Celcious in Brooklyn, offer an energy-efficient and sustainable approach to washing clothes. Sportswear retailers and activewear brands are incorporating in-store sneaker washing services, as Nike has done at its Moscow flagship, or partner with bonafide sneaker care companies such as Crep Protect or Jason Markk, which in March 2018 opened a stand-alone store in London.

A shift towards deliberately simple and pared back store design has emerged, putting the focus purely on the product. Expect this trend to develop with a more extreme move towards completely unbranded spaces, in which retailers aim to reduce unnecessary noise, stripping stores of branding and marketing tools in order to create a soothing, clutter- free environment that puts the consumer in charge. This is changing the relationship that people have with product – with choice being driven by the product’s attributes rather than the branding around them.

 

Welspun India’s Q2 margins have been impacted by almost three per cent due to the depreciating rupee against the dollar. The textile firm has taken a hit by around Rs 37 crores due to currency fluctuation and expects margins will continue to shrink by an almost similar figure over the next few quarters.

While the exchange rate has had its impact, the company had various other one-off expenses that added pressure on the business. Welspun reported a 18.7 per cent on-year growth in profit after tax at Rs 114.8 crores for the July-September quarter of this fiscal. The textile firm sees positive growth momentum in volumes and is confident of achieving its annual guidance for revenues and profits. Welspun continues to pursue its differentiation strategy based on branding, innovation, sustainability and its patented traceability solution.

The company is seeing substantial growth in e-commerce and has developed a few products for the online marketplace as well. Capacity utilisation has gone up from 80 per cent clocked in the previous financial year. The plan is to invest Rs 900 crores as a part of capital expenditure. Capital has been set aside for a new flooring unit in Telangana.

 

Thursday, 25 October 2018 12:52

Vietnam apparel exporters turn domestic market

Vietnam’s garments exports has been growing steadily in the past 10 years to Europe and North America. Early warnings at the beginning of 2017 suggested US withdrawal from the Trans-Pacific Partnership would narrow the pathway for garments from Vietnam. After struggling for the first six months, garment companies scored a record high of exports to the US toward the end of the year. Garments topped the export list in 2017 and give more hope for the country’s export prospects in the coming year.

Vietnam’s traditional garment destinations are: Asean, Eastern Europe, the EU, Japan and South Korea. Vietnam’s fashion industry has been growing, developing the energy to let designers leap and flourish. If a decade ago, Vietnamese consumers preferred fast fashion imported from China, now they tend to turn to domestic products.

However, garment companies have not been able to establish a firm foothold in the country. Export-oriented companies who want to set up sales boutiques have to deal with PR, marketing campaigns and after sales service.

Another reason contributing to the less secure production output is the material resources. Domestic fabric production makes only 2.3 billion meters a year. Since the industry requires 8.7 billion meters to function, the balance has to come from imports.

Thursday, 25 October 2018 12:51

Zimbabwe to double cotton production

Zimbabwe is seeking to double cotton production in forthcoming summer cropping season amid growing demand for the country’s produce on the international market. According to the international market ratings, Zimbabwe cotton is the third best cotton in the world. The crop has the potential to generate foreign currency.

The government has already started distributing cotton inputs ahead of the summer cropping season to ensure that farmers are not inconvenienced. It has also put in place mechanisms to ensure proper grading so that farmers who produce high quality cotton are not prejudiced. Last year cotton farmers delivered more than 75 000 tonnes of cotton to merchants compared to 138 000 tonnes delivered this year.

More than 300 000 farmers and approximately one million people rely on cotton farming in Zimbabwe. Midlands’ cotton farmers alone have so far this year delivered more than 70 000 tonnes to cotton merchants.

 

Indonesian workers have accused Uniqlo of exploiting them. Around 2,000 workers were made redundant when the factory shut in 2015. The workers blame the factory’s closure on Uniqlo’s decision to stop giving it orders, citing quality issues and delivery delays. They are owed about US$5.5 million in unpaid wages and severance payments and want Uniqlo to be held responsible. The company also didn’t fulfill its responsibility in protecting workers from union busting, illegal dismissals, and overtime work without pay. It had not taken necessary and simple steps to conduct due diligence before it stopped placing orders.

While Uniqlo was not the workers’ direct employer, the CCC’s East Asia campaigner Johnson Yeung Ching-yin said the company was still responsible because its dealings with the factory had led to the workers being overstressed, and its decision to discontinue business with the factory led to its closure.

After the factory’s closure, the workers occupied its premises, sleeping there for 18 months. But the banks, which were the factory’s creditors, eventually seized its assets and sold them.

 

Denim is getting to be one part rebellious teen and one part sensible dad. Wacky denim trend is not about to implode anytime soon, feel Denim Dudes founder Amy Leverton and contributor Sam Trotman. New factors like the emerging weed industry in the United States and nostalgia for Y2K are adding their own unique flavor to the table.

Sharing their Spring/Summer 2020 vision at Kingpins Amsterdam the duo said denim is oversized and layered with technical fabrics and silhouettes from the athleisure world. Practical zips and pockets, coatings and super-light-weight fabrics like nylon are among the key ingredients. Camouflage and ikat prints offer an outdoor feel. Brands can recreate these dye effects through laser printing for a more sustainable solution. The story’s color palette—soft indigos, natural indigos and natural vegetable shades—are well-suited for brands’ eco stories as well.

The overall earthy feel is enhanced with up cycled fabric remnants, Baja surfaces, textured weaves, patchwork leather, homespun quilting and deadstock fabrics. Frayed and undone finishes give a lived-in feel to new pieces. Based on last season’s Millennium Blues story, Leverton explained Ironic Oughties as the more ironic and cheesy offshoot that’s being led by youth-driven brands.

The story’s holistic side is expressed through the use of natural fibers and yarns, slow-made fashion and boutique dressing, while upsized silhouettes, refined fabrics, high-end finishing, soft layers and unstructured looks encapsulate the theme’s utility-meets-lounge styling. Draping, off-the-shoulder and conceptual cutouts elevate denim. Workwear details and A-line silhouettes add structure. Oversized twills, linen, summer blanket materials with a handloom look, feminine quilting and patchwork jacquard add texture and visual interest.