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Bangladesh continues to be a lucrative destination for global garment buyers. It is a favored destination not only for the competitive price and quality but also for technical upgrades and improved safety after the inspection and remediation.
After a journey of nearly four decades, the country’s production base is gradually shifting to high-end apparel items from basic products. Of the total garment exports from Bangladesh in a year, 40 per cent are high-end value-added garment items. Thanks to the rebound of the economic situation in Europe and the US, retailers and brands are placing work orders in bulk with Bangladesh.
At the same time, Bangladesh’s reputation has also improved due to inspection and remediation of garment factories by Accord and Alliance. However, buyers do not want to pay higher prices, although the cost of production will go up further with wage hike, port congestion and higher transportation cost. Politics is expected to have a more immediate impact than technology. Most businesses anticipate to be affected by tariffs, quotas, protectionism and embargos rather than automation and 3D printing.
Though China is a top sourcing destination, India and Bangladesh are increasingly given preferences for textile sourcing due to their being lower-cost destinations.
In 2016, the volume of global T-shirt exports grew four per cent compoared to previous year. Bangladesh and India have seen the highest growth rates in T-shirt production among the main producing countries from 2007 to 2015. Increased exports from these countries was due to the export-oriented means of production, with cheap labor costs. While the share of Bangladesh, India and Vietnam increased, China indicated negative dynamics. Despite the fact that China remains a key global centre for the production of T-shirts, production is gradually shifting to other countries in Asia.
T-shirt consumption is set to maintain an upward growth trend in the immediate term, due to the recovery being seen in the global economy, the process of ongoing urbanization, the rising population, and increasing income levels. The globally T-shirt market is expected to continue, with a growth of 1.7 per cent annually in the medium term.
While mature markets of the US, Canada, and Western Europe are close to their saturation point in T-shirt consumption, emerging economies, such as China, India, Russia, and Brazil, are far from saturated. They share a few similar characteristics, including a rising population, an improved economic situation, rising disposable incomes, and urbanization.
Adidas and Reebok have again topped the ranking of global brands’ social and environmental transparency and practices. Fashion Revolution’s Fashion Transparency Index of 150 major global brands and retailers found improvement across the industry but said most companies were still operating in broadly the same way that enabled the Rana Plaza disaster to happen five years ago.
Only 55 per cent brands and retailers published measurable, timed goals on improving their environmental impact and just 37 per cent published goals on improving human rights.
The index, launched to mark the start of Fashion Revolution Week, which marks the anniversary of the 2013 Rana Plaza factory collapse in Bangladesh in which more than 1,000 workers died, aims to help consumers make informed decisions about the companies they support through greater transparency.
Puma, H&M, Esprit, Banana Republic, Gap, Old Navy, C&A and Marks & Spencer followed Adidas and Reebok in the ranking, all scoring within between 51 per cent and 60 per cent out of a possible 250 points. The original brands which were reviewed in 2017 and again in 2018 show a 5 per cent overall improvement in transparency levels. The campaign said the proportion of brands and retailers who published a list of where their clothes are cut, sewn and completed had increased from 12.5 per cent two years ago to 37 per cent this year.
Fashion Revolution global operations director and founder Carry Somers says that over the last five years, millions of consumers have demanded a fairer, safer, cleaner industry.
Earth Day once more highlights the importance of buying clothes responsibly. As per the US Bureau of Labor Statistics Stats in 1977, clothing accounted for 6.2 per cent of US household spending; now, each households spends half as much (3.1 per cent). Earlier, retailers used to take time to introduce clothes to their floors and put them on sale at the end of the season. These days, as a McKinsey report suggests, stores like Zara offer 24 new collections per year; H&M offers 12-to-16 and refreshes them weekly. And it’s not just fast fashion retailers who are churning out new collections quickly. Fear of missing out has led mainstream retailers to take up fast fashion model of offering more styles, quickly at lower prices.
Overall, textile waste accounts for almost 5 per cent of landfill space in the US. The textile recycling industry salvages about 3.8 billion pounds of post-consumer textile waste (PCTW) each year, according to the US Environmental Protection Agency. However, as the Council for Textile Recycling (CTR) reports, the EPA has found this accounts for just 15 per cent of all PCTW, leaving 85 per cent in landfills. In the US, 72 per cent consumers are concerned about the environment and feel motivated to take sustainable action, reveals a Cotton Incorporated 2017 Global Environment Survey. Additionally, 75 per cent consumers feel environmental change is real and requires adjustments in our behavior. The majority of Americans (65 per cent) say they recycle clothing or textiles, according to the Environment Survey.
Ed Stubin, Co-owner and Chairman, the Trans- Americas Trading Co, avers his firm processes more than 100 million pounds of used textiles annually. The Clifton, NJ-based company collects tons of used apparel from charities, municipalities, and fundraising groups. The garments are separated; some are sold to producers who use the fibre for rags, padding, and insulation. Garments made of cashmere or wool is separated, so they can be rewoven and re-knitted into new garments. And the rest of the apparel is resold as used clothing, usually overseas. Three years ago, Trans-Americas started the 2ReWear program to increase recycling and keep more textiles from the landfills. Stubin says, shoppers want to buy new clothes, but their closets are full. By bringing their used clothes to a bin at the store, they don’t have to go out of their way to donate their old clothes. And they are making room for new clothes by bringing their used items to their favorite store. Retailers could use the programme as a promotional activity to bring shoppers in.
Designer Daniel Silverstein’s label, Zero Waste Daniel, uses discarded factory scraps and turns them into new garments. These range from T-shirts and hoodies to tanks, sweatpants and shorts. He also makes one-of-a-kind items using panels of fabric to create mosaic-style sweatshirts or pieced sweaters. The Brooklyn-based company’s mission is to make unique yet affordable fashion pieces by applying the art of sewing to the scraps that abound due to the fashion industry’s wasteful practices. Since its inception in 2017, the company estimates that it’s already saved tons of scrap material from Greater New York-area landfills. Some companies like Patagonia are collecting materials like plastic soda bottles to melt them down, extrude the polyester and spin them into new fabric.
In the US, recycling and sustainability has captured the interest of nearly 6 in 10 consumers (59 per cent) simply because it’s the right thing to do, according to the Environment Survey. That’s followed by a wish to protect the world for my children/grandchildren/future generations (50 per cent) and to live a more balanced/healthier lifestyle (41 per cent).
Denim show Kingpins Amsterdam was held on April 18 and 19. The event saw record crowds on both days and a record number of exhibitors made the show a must-see for denim industry insiders. Besides a vast offer of denim, accessory and fiber manufacturers, as well as garment producers from all over the world, the show also hosted several new chemical companies, laundries and activists.
The main focus for almost each manufacturer participating was sustainability and eco-friendliness. This was done by launching new fabrics made by blending post-consumer recycled garments or employing less polluting technology that can help cut water, energy and chemical use and reduce CO2 emissions.
Elleti, an Italian laundry and garment manufacturer, presented a series of faithful reproductions of historical Levi’s vintage denim pieces dating between 1900 and 1930. Chemical specialist Rudolph presented Memoflex, a finish that improves the quality of stretch fabrics by preventing loss of shape.
Label manufacturer Panama Trimmings launched Viridis and G-Label. Viridis labels are made with new animal-free leathers obtained from vegetal polyoils. G-Label labels are made by 3D printing of a special ink made by employing recycled graphite.
Artistic Milliners presented Frenchie, a new series of urban chic though casual cool fabrics. These fabrics are characterized by a mix and match of shiny and matte, perfect for slim jeans for women, versatile blazers, shorts and trench coats, men’s smart low-crotch denims.
"In line with various eco-efforts being taking place globally, non-profit organisation Fabscrap has invited clothing brands, designers, tailors and others in New York City to sign up for textile pickup and recycling. The organisation provides reusable bags in two colours – black for proprietary materials and brown for everything else that any business creating textile waste can order as and when needed. Pickup can then be scheduled with Fabscrap, and fabrics are sorted by volunteers (an estimated 150 per month)."
In line with various eco-efforts being taking place globally, non-profit organisation Fabscrap has invited clothing brands, designers, tailors and others in New York City to sign up for textile pickup and recycling. The organisation provides reusable bags in two colours – black for proprietary materials and brown for everything else that any business creating textile waste can order as and when needed. Pickup can then be scheduled with Fabscrap, and fabrics are sorted by volunteers (an estimated 150 per month).
Fabscrap processes fabric scraps, cuttings, headers, mock-ups, samples, overstock bolts, production remnants, and any other unwanted excess fabric for recycling or reuse. So far, Fabscrap has recycled discarded textiles from New York designers such as J Crew, Eileen Fisher, Marc Jacobs, Nautica, Oscar de la Renta and more. Proprietary material and small scraps are shredded to create insulation, carpet padding, furniture lining, moving blankets, etc. Whenever possible, Fabscrap utilises fibre-to-fibre technologies; currently this technique is being used for 100 per cent cotton, 100 per cent polyester, and 100 per cent wool materials. Collected material that is not propriety is open to students, artists, crafters, quilters, sewers, teachers, and of course, other designers for ‘shopping’ by appointment at Fabscrap’s warehouse, or online through Queen of Raw. Founded in 2015 by Jessica Schreiber, Fabscrap has recently shifted to a 4,100 sqft space at Brooklyn Army Terminal (BAT) in Sunset Park, which is the second largest garment manufacturing hub in NYC outside of the Garment Center.
Meanwhile, fashion-tech innovation agency BRIA and fashion brand Sabinna have collaborated to transform a fashion capsule collection of wardrobe ‘staples’ into 100 per cent biodegradable materials for use in garment packaging and shop interiors. With the aim to maximise the circular aspects of production and recycling, the teams co-designed and made the garments solely from cotton and viscose. Non-toxic chemical processes were selected to dissolve the garments and reclaim the fibres for use in other 100 per cent cellulose-based materials, which are biodegradable. Compared to mechanical recycling, chemical processes use less water, generate less waste, and require no bleaching. The resulting materials are similar to paper, card, plastics and even wood, and can be used for a variety of applications. The collection will be used as a proof-of-concept, demonstrating to other brands that these new processes can be used to divert cotton and viscose apparel from landfills by transforming it into packaging, tags, shop interiors, and more at the end of their use.
Producing new materials from garments already in landfills is also an option; it would not require consumer engagement but would still provide an environmentally beneficial way for brands to produce packaging or store material. However, it may be easier for brands to face the challenges of customer engagement depending on the measures and infrastructure they already have in place.
Repreve recycled performance fibre
Lead contamination remains an issue despite that the water testing results were in the news back in October 2015, so residents still rely on bottled water for cooking, washing and drinking. Millions of plastic bottles now add to the community’s burdens. When award-winning artist Mel Chin learned about the issue, he knew he wanted to help. The result: a fashion project called Flint Fit, which brought partners in Flint, New York City, and Greensboro, NC, together in time, function and fashion.
At Chin’s instigation, more than 90,000 used water bottles were collected by the people of Flint over the course of six weeks. Once sorted, the bottles were sent to Greensboro-based textile manufacturer Unifi, Inc., where they were cleaned, shredded and transformed into Repreve recycled performance fiber. The Repreve fiber was then sent to Mount Vernon Mills and Texollini where it was woven and knit into fabric.
Jay Hertwig, group VP – global brand sales, Unifi, stated that they are able to transform plastic bottles into Repreve for products that people enjoy every day. Using this fabric, renowned New York fashion designer and Michigan native Tracy Reese designed a capsule collection for Flint Fit inspired by the power and necessity of water, manufacturing history of Flint, and resiliency of the Flint community. Reese’s designs were brought to life by at-risk women in the commercial sewing program at St Luke NEW Life Center in Flint, who sewed the recycled fabric into rainwear and swim garments. The Flint Fit designs debuted on April 8 at the opening of Chin’s All Over the Place exhibit at the Queens Museum’s Watershed Gallery, where they will remain on display until August 12, 2018.
The Regional Comprehensive Economic Partnership (RCEP) could help revive the garment and textile sector in Southeast Asia. The 16-member bloc includes the 10 Asean member countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) plus six other countries – Australia, New Zealand, China, India, Japan and South Korea.
The garment and textile industry in less-developed economies in the RCEP, such as Myanmar, Cambodia and Laos, are best placed to gain from the deal. These countries rely on low-cost manufacturing and could gain access to wealthy consumers in Australia, New Zealand and China. Another benefit is these emerging markets will gain a strengthened economic relationship with China. They could attract increased flows of foreign direct investment from capital-rich investors eager for new, untapped opportunities abroad.
Myanmar could benefit the most as it does not compete with low-cost, bulk order countries such as Bangladesh, India and Cambodia, and tends to specialise in higher-quality, more technical garments. On top of that, the country has an abundant supply of low-cost labor.
But like any other free trade deal, under the RCEP, the agreement would work only for trades between signatory states when the rules of origin are met. Hence it would not be possible for Cambodia or other Asean member states to gain benefits under RCEP for shipment into the US or EU – key export markets.
American casual fashion brand Gap has two smaller size store formats for the Indian market, namely adult fashion and children’s fashion. The average size of the Gap store ranges between 5,000 to 6,000 sq. ft. In case of adult stores, the size is 3,000 to 3,500 sq ft while the size of kids’ only stores will be from 1,500 to 2,000 sq ft.
So far, two adult only stores have been set up one in Bangalore and the other in Kolkata. A children’s exclusive store is expected to come up within this year. While Gap has democratic products throughout the world, some minor tweaks have been made for the India range on an experimental basis. The choice of products are customized for Indian buyers and fit their tastes of color, shape and design.
Gap was introduced to India through Arvind Lifestyle Brands and the first store opened in 2015.. The brand targets millennials and in India, Gap retails men’s and women’s apparel and accessories. Gap’s collections are designed to build the foundation of modern wardrobes – all things denim, classic white shirts, khakis and must-have trends. Gap was the first brand to introduce the pocket tee shirt.
China is the world’s second-largest exporter of textile machinery. Much of the production is destined for the domestic market. The country’s industry believes it will be able to cope with punitive duties that have been proposed by the US.
Chinese exports that could be hit with 25 per cent duties include textile machinery-related items such as knitting, weaving and spinning machines and finishing equipment, plus parts. However, even if these duties are imposed, China feels short-term effect will be limited as most textile machinery produced by Chinese companies is being used domestically or in Southeast Asia or Africa. And since the US doesn’t have many other cost-effective alternatives for sourcing machinery, Chinese manufacturers feel they will be able to pass a lot of the cost along to the end buyer.
Chinese textile machinery is modern and inexpensive compared to many others in the industry. An increasing number of Chinese machinery manufacturers are participating in various exhibitions being held across India. Compared to Europe, the quality of China’s textile machinery may not be quite high, but the price being only one-third of European textile machinery, Chinese machinery is attractive for Indian textile enterprises.
"Burma’s garment and footwear exports clocked in $3 billion in 2017, a growth of 25 per cent over last year. Factories have expanded from Yangon’s Hlaing Tharyar industrial zone to rural regions, in the wake of a tax holiday of seven or five years meant to encourage operations in less developed parts of the country. The size of garment manufacturing operations is also increasing from a mean size of 750 employees to factories up to 5,000 to 7,000 workers. Amid this growth, there arises the challenge of sustenance."
Burma’s garment and footwear exports clocked in $3 billion in 2017, a growth of 25 per cent over last year. Factories have expanded from Yangon’s Hlaing Tharyar industrial zone to rural regions, in the wake of a tax holiday of seven or five years meant to encourage operations in less developed parts of the country. The size of garment manufacturing operations is also increasing from a mean size of 750 employees to factories up to 5,000 to 7,000 workers. Amid this growth, there arises the challenge of sustenance. Last year, a review committee comprising labour groups, independent experts, unions and government officials reviewed the 3,600 kyats ($2.70) minimum wage that was introduced in 2015 and this year the committee agreed to raise it to 4,800 kyats per day. But some workers fear this baseline salary increase may come at the cost of other existing benefits.
Workers’ advocacy group Action Labour Rights says this potential levelling out of bonuses upon the introduction of the new minimum wage is a real risk. It is calling on unions to help workers ask for new contracts that stipulate other benefits are not taken away. Jacob Clere, Burma country director for European Union-funded project SMART, says increasing minimum wage does two things: it catches up what has been eaten away by inflation in the past couple of years, also sets it (take-home pay) a bit higher in real terms. In 2015, many factories tried to offset the added labour cost burden by reducing workers’ wages to the new minimum wage — for some more experienced workers meaning a pay cut — or simply refused to comply with the new mandated rate. It didn’t work well for factories that tried to cut benefits; factory workers felt cheated. He added that when wages are increased, the responsibility to adjust to the new labour market conditions shouldn’t just fall on factory owners but on the shoulders of buyers as well.
Challenges as factories expand
Chinese-owned factories accounted for 45 per cent of total foreign investment in the garment sector last year, followed by Korean and Japanese firms. AQM reports one issue with foreign-owned factories is the lack of integration of locals at the top levels of management. Thandar Ko, Director, BusinessKind, highlighted there is a lack of education around what is harassment in the workplace. A lot of sexual harassment happens in factories but nobody voices it as they are afraid to lose their jobs. For many garment workers who send their families at least half of their salaries, if they experience harassment, she says they may not wish to speak up as the responsibility to remit some of their income is too great.
Also, workers feel unsafe traveling home late at night. Helen Gunthorpe, Co-founder, BusinessKind, ads many women travelling late after shifts, often in the early hours of the morning, have reported harassment from drivers of motorbike taxis or their four-wheeled equivalent. Although some factories offer organised transport from the factory to dormitories, when workers are putting in overtime, they miss these organised trips and are forced to make their own way home. Without an anti-harassment component as part of any existing labour laws, and with factories not required to include a gender policy, women remain at risk of harassment and discrimination.
If such situations aren’t controlled, Burma will lose all opportunities to its low-cost neighbouring countries and it might not be able to get back to gain the preferred spot once again. It’s up to the government to take corrected measures and work towards employees’ safety concerns.
