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To expand its presence in the UAE market, renowned Danish fashion house synonymous with contemporary apparel and accessories, Bestseller plans to debut its flagship retail store for Jack & Jones by 2024-end.
Embracing the intersection of technology and sustainability within the fashion realm, Bestseller has implemented a plethora of initiatives to enrich its customer journey, spanning from purchasing and reporting to data analysis, all in a continuous effort to optimise customer and product performance. Elke Jungbauer, Commercial Director, Bestseller MENA, says, the brand aims to democratise fashion by focusing on contemporary designs and competitive pricing.
Bestseller has also pioneered the NOOS program, aptly named 'Never Out of Stock', to address product availability concerns and enhance convenience for shoppers. This innovative program ensures that key items remain perpetually in stock, offering customers a dependable selection of essential wardrobe staples year-round, thereby fostering brand loyalty and trust through a consistent shopping experience.
The versatility of the NOOS program strikes a delicate balance between stability and innovation, catering to evolving customer preferences in the MENA region, elaborates Jungbauer. This confers a competitive edge and a compelling unique selling proposition to the brand with customers valuing the reliability and convenience it affords, heads.
Furthermore, Bestseller has augmented the shopping experience with an array of digital tools both in the showroom and online store, reaffirming its steadfast commitment to excellence and expansion in the UAE and beyond.
Further solidifying its foothold in the fashion retail landscape, Bestseller plans to launch its e-commerce operations for Jack & Jones and Vero Moda in the forthcoming year,
A recent study conducted by the Research and Policy Integration for Development (RAPID) titled ‘Upscaling the RMG Sector’ forecasts, Bangladesh's export earnings from MMF (Man-Made Fiber) products could surge to $19 billion within a decade if it achieves projected market shares in 20 potential products.
Currently, Bangladesh's exports primarily consist of cotton-based apparel, constituting a substantial 71 per cent of total exports. The report highlights the impressive growth in cotton apparel exports over the years, reaching $33 billion in 2021 from $3.0 billion in 2001. In contrast, MMF apparel exports have seen a more modest growth of $8 billion over two decades, indicating Bangladesh's gradual progress in this segment.
Import data of MMF or non-cotton raw materials also reflects an increasing trend, indicating a growing usage of these materials in garment manufacturing for exports. For instance, in the first quarter of 2024, Bangladesh imported 30,900 tons of polyester staple fibre, marking a significant 42.46 per cent rise compared to the same period in 2023. Similarly, imports of synthetic filament yarn and yarn of synthetic staple fibre also saw notable increases during the same period.
Despite its strong presence in the cotton market, Bangladesh has substantial room for growth in MMF and blended apparel, where it currently holds a modest 5.6 per cent global market share, compared to China's dominant 36 per cent.
However, the textile industry faces challenges, including import duties on many MMFs while cotton enjoys duty-free status, inefficient customs clearance, and complicated duty-drawback procedures. Moreover, there are discriminatory policies on PET bottle and scrap imports and limited capital investment support for the industry.
Dr Mohammad Abdur Razzaque, Chairman, RAPID, emphasises, Bangladesh could potentially earn up to $19 billion from MMF garment exports within the next five to ten years if these challenges are addressed.
To achieve this potential, the report recommends consolidating Bangladesh's dominance in the cotton apparel export market while simultaneously expanding MMF apparel production and exports. This would require modernising customs clearance procedures, attracting foreign direct investment (FDI) in the MMF sector, promoting a circular economy for sustainability, modernising technology, and enhancing management capacities and worker skills.
Fazlee Ehsan Shamim, Vice President, BKMEA, highlights the increasing imports of MMF, indicating a shift towards non-cotton fibers in production. He stresses on the need for supportive policy measures, especially in customs-related issues, to encourage entrepreneurs to explore non-cotton segments and attract investment.
UK lawmakers are revisiting the 2019 initiated Environmental Audit Committee’s (EAC) inquiry into the fashion industry to reexamine the sustainability practices of major fashion retailers H&M and Boohoo.
Through this, the committee aims to scrutinise the concrete steps taken by these retailers to reduce their environmental footprint since the issuance of the 2019 ‘Fixing fashion: clothing consumption and sustainability’ report. According to a research by the Hot or Cool Institute, the UK ranks fourth in carbon footprint from fashion among G20 nations.
The agenda also includes an examining the impact of resale platforms like Thrift+ on clothing consumption habits, questioning whether they contribute to reducing overconsumption in fashion.
The ‘Fixing Fashion’ report had urged urgent government action to combat throwaway fashion, proposing measures such as an Extended Producer Responsibility scheme. However, progress has been sluggish, with most recommendations from the 2018 inquiry being rejected by the government.
These recommendations encompassed various measures, from producer responsibility charges to due diligence checks in supply chains to combat forced or child labor. Despite the urgency highlighted by the committee, the government's response has been deemed inadequate.
During the initial probe, 16 fashion retailers were questioned about their efforts to mitigate the negative environmental and social impacts of their products. The rejection of legislative measures to enforce due diligence checks across supply chains was met with criticism from the EAC.
Rather than implementing proposed bans on incinerating or landfilling unsold stock, the government opted to review the Modern Slavery Act of 2015. It also pledged support for voluntary initiatives like the Sustainable Clothing Action Plan.
Not satisfied with the government's response, Mary Creagh, Chairperson, emphasised on the need for tangible actions to address environmental and labor concerns in the fashion industry.
The EAC remains vigilant, monitoring the government's purported steps to tackle the issues highlighted in its report.
The Swedish Textile Machinery Association (TMAS) has secured its place as the newest Associate Member of the International Textile Manufacturers Federation (ITMF), marking a significant expansion in the forum's reach within the global textile manufacturing value chain.
With TMAS onboard, ITMF now encompasses companies responsible for nearly 90 per cent of global textile and apparel production. This development underscores ITMF's growing influence, exemplified by its upcoming Annual Conference in Samarkand, Uzbekistan, from September 8-10, coinciding with the International Apparel Federation’s 2024 Fashion Convention. This follows the success of ITMF's 2023 conference in Keqiao, China.
TMAS brings to the table a wealth of expertise reflective of Sweden's leadership in textile technology. From advanced yarn fault detection to automated sewing production lines, TMAS members offer a comprehensive array of cutting-edge solutions crucial for staying ahead in the fast-evolving textile landscape.
Christian Schindler, ITMF Director General, expressed enthusiasm for the collaboration, highlighting its potential to empower members with the latest technologies. TMAS Secretary General, Therese Premier-Andersson, echoed this sentiment, emphasizing the importance of collective action to achieve sustainability goals. She underscored the value of ITMF's resources, including statistics and global networking opportunities, in shaping industry strategies and navigating dynamic market trends.
Techtextil, a pivotal event in the technical textiles sector since 1986, recently celebrated its 20th edition with an homage to its founding exhibitors.
Hosted by Messe Frankfurt on April 24, 2024, in Hall 9, the ceremony recognized industry stalwarts like the Karl Mayer Group for their pioneering contributions.
Detlef Braun and Sabine Scharrer of Messe Frankfurt presented commemorative plaques acknowledging the enduring dedication of these pioneers.
Jochen Schmidt, General Manager of Karl Mayer Technical Textiles, expressed gratitude for the recognition, highlighting their integral role in the fair's inception and ongoing success.
Schmidt emphasized Techtextil's continued significance as a platform for innovation and customer engagement.
Reflecting on a fruitful Techtextil 2024, the Karl Mayer Group eagerly anticipates future editions, underscoring the event's enduring relevance as a nexus for industry advancement and collaboration.
In a landmark collaboration, Autumn Fair, the eminent seasonal showcase for the retail sector, has forged an exclusive partnership with Faire, Europe's premier wholesale marketplace. This alliance marks a significant shift by seamlessly integrating online and offline wholesale realms, poised to redefine the buying experience for over 20,000 independent retailers.
The partnership equips retailers attending Autumn Fair with access to Faire's extensive global network, enabling them to effortlessly peruse a diverse array of products, streamline procurement processes, and benefit from favorable 60-day payment terms. Additionally, Faire extends a generous 50 per cent discount on initial orders, facilitating smooth transactions both during and beyond the event.
Notably, exhibitors leveraging Faire's platform will enjoy enhanced visibility through inclusion in a curated collection on Faire's website, presenting an invaluable opportunity to showcase their offerings to a vast audience of global retailers. A strategic marketing campaign will further elucidate retailers and brands on optimizing the collaboration's myriad advantages.
This partnership is a response to evolving industry dynamics, where retailers increasingly seek the synergy between tactile, in-person engagements epitomized by events like Autumn Fair and the expansive reach and operational efficiency afforded by online platforms such as Faire. Katie Holmes of Autumn Fair exhibitor Sting in the Tail attests to the symbiotic benefits, emphasizing the newfound ease of conducting business and expanding market reach amid evolving market landscapes.
Charlotte Broadbent, UK Country Manager at Faire, underscores the collaborative ethos driving this initiative, emphasizing its potential to elevate sales for brands and streamline operations for retailers. Similarly, Jackson Szabo, Portfolio Director of Spring & Autumn Fair, underscores the partnership's capacity to enrich the retail landscape by fostering networking opportunities and granting access to diverse product offerings, empowering independent retailers to thrive amidst competition while preserving their distinct identity and community ethos.
In essence, the Autumn Fair-Faire partnership heralds a transformative chapter in retail procurement, heralding a harmonious convergence of traditional and digital wholesale paradigms to cater to the evolving needs of today's dynamic marketplace.
As per the observations at just concluded Fashion InStyle, the fashion industry is in the midst of a dynamic shift, driven by a focus on sustainability, diversity, and exciting global opportunities, . As consumer expectations evolve, leading brands are embracing these trends to stay ahead of the curve.
Inclusivity takes center stage
Diversity is no longer a niche concept; it's a core principle. Brands are increasingly recognizing the importance of representation in everything they do, from design and marketing to their workforce. This shift towards inclusivity reflects a desire for authenticity and relatable experiences. Consumers connect more with brands that champion diverse voices and influencers who embody these qualities. By embracing diversity, the industry not only fosters social progress but also unlocks new markets and expands its customer base.
Emerging markets fuel fashion's future
The global fashion landscape is no longer solely focused on traditional fashion capitals. The rise of middle-class consumers in emerging Asian markets presents a significant opportunity for international expansion. Savvy brands are tailoring their products and marketing strategies to resonate with these diverse audiences, positioning themselves for success in this ever-evolving market.
Tech revolutionizes the fashion experience
Technological advancements are playing a crucial role in shaping fashion trends. Artificial intelligence, data analytics, and digital platforms are transforming how brands design, produce, and market their products. These innovations allow for personalized experiences, streamlined supply chains, and deeper customer engagement. Fashion companies that leverage these tools effectively will gain a competitive edge and stay relevant in the digital age.
Sustainability and ethical practices take root
Environmental and social responsibility are no longer afterthoughts; they're at the forefront of the industry. Sustainability, ethical fashion, and gender fluidity are key trends reshaping the global market. This reflects a growing consumer awareness of the environmental and social impact of fashion, a demand for responsible practices, and a desire for inclusivity and self-expression.
Eco-Conscious fashion on the rise
The shift towards sustainability in fashion has gained significant momentum. Brands are prioritizing the use of eco-friendly materials like organic and recycled fabrics, along with adopting environmentally conscious manufacturing processes. This holistic approach to sustainability encompasses reducing environmental impact, promoting fair labor practices, and ensuring transparency throughout the supply chain. Ultimately, brands are striving to deliver stylish and innovative fashion while making a positive contribution to the planet and society.
Ethical fashion gains traction
Ethical sourcing and fair labor practices are no longer optional. Consumers are demanding brands that uphold fair wages, safe working conditions, and ethically sourced materials. Ethical fashion promotes responsible practices throughout the production cycle, encouraging brands to prioritize social impact alongside profitability. By embracing ethical fashion, brands demonstrate their commitment to a more equitable and humane industry.
Fashion embraces fluidity
Gender-fluid fashion is another progressive movement challenging traditional norms and promoting inclusivity. This movement offers clothing options that transcend restrictive gender stereotypes, empowering individuals to express themselves authentically, regardless of societal expectations. By embracing gender-fluid fashion, the industry fosters a more inclusive and representative environment, fostering acceptance and breaking down barriers.
Lenzing Group, a leading provider of regenerated cellulose fibers, has garnered acclaim for achieving exceptional results in the Higg Facility Social & Labor Module (FSLM) certification across five of its production sites. The certification assesses various social impact factors including wages, working conditions, and employee treatment.
This achievement underscores Lenzing's commitment to addressing social challenges within the textile industry, such as precarious working conditions and human rights issues along the value chain.
Transparency in the supply chain emerges as a crucial tool in tackling these challenges, with Lenzing aiming to obtain valid social standard certificates for all its production sites by 2024. Their success in the Higg FSLM audit, placing them in the top 25 percent globally, highlights their dedication to fostering better working conditions.
Christian Skilich, a member of Lenzing Group's Management Board, emphasizes their proactive stance towards social responsibility, asserting that their efforts extend beyond mere rhetoric. Florian Heubrandner, Executive Vice President Commercial Textiles, emphasizes the importance of transparently prioritizing social sustainability alongside environmental concerns to enhance business relationships.
Moreover, a study by the Society for Applied Economic Research underscores Lenzing's significant role as an employer, creating over 25,000 jobs across its operational countries, both directly and indirectly. This recognition further solidifies Lenzing's position as a socially responsible industry leader in the textile sector.
In a landmark move, Dutch Minister for the Environment Vivianne Heijnen spearheaded a collaborative effort with France, the Czech Republic, and Ireland, presenting a groundbreaking proposal titled ‘A Call for a European Sustainable Carbon Policy Package.’ This initiative, unveiled to the European Commission and industry leaders on April 16, 2024, marks the first-ever concerted effort by European policymakers to advocate for the defossilization of the chemical industry.
At the heart of the proposal lies the urgent need to transition from fossil-based to sustainable carbon feedstocks, echoing long-standing calls from industry associations for a level playing field in energy and fuel sectors. With over 90 per cent of the European chemical industry currently reliant on fossil feedstocks, the proposal underscores the imperative to embrace sustainable alternatives like recycled materials, biomass, and carbon dioxide.
Heijnen emphasized the necessity of an overarching EU policy framework to drive this transition, focusing on market creation, sustainable carbon availability, and enhancing industry competitiveness. Key stakeholders, including Katja Wodjereck from Neste and Marco Mensink of Cefic, voiced strong support for the initiative, advocating for incentivizing the use of sustainable carbon sources and aligning policies with circular economy principles.
The proposal signals a pivotal moment in European environmental policy, offering a clear pathway towards a competitive, climate-neutral chemical industry. As more member states rally behind this initiative, it presents a significant opportunity to reduce Europe's reliance on external resources while advancing sustainability and achieving net-zero targets.
Adidas CEO, Bjorn Gulden, expressed elation as the sportswear giant exceeded expectations in its first-quarter performance for 2024. The company reported a robust surge in sales, gross margin, and operating profit, outstripping initial forecasts. Notably, the direct-to-consumer (DTC) channels witnessed a remarkable uptick in full-price sales, driving down inventories and bolstering gross margins for both Adidas and its retail partners.
The stellar growth trajectory was primarily fueled by the Lifestyle segment, particularly buoyed by the exceptional performance of Originals footwear. Additionally, the higher-tier offerings in Running, Football, and Basketball contributed significantly to the company's upward momentum. Gulden emphasized the enduring demand for iconic footwear franchises like Samba, Gazelle, Spezial, and Campus, alongside the emergence of new favorites like SL72.
Despite persisting market volatility, Adidas sees progress across all fronts, leveraging enhanced brand resonance and improved sell-through to fortify partnerships with retail allies. Gulden reiterated the company's commitment to sustained investment in product innovation, brand elevation, and sales and marketing endeavors to drive continual growth. He underscored Adidas' relentless pursuit of excellence, acknowledging the ongoing journey toward optimization.
Looking ahead, Adidas eagerly anticipates capitalizing on the global sporting extravaganza, including the Euro 2024, Copa América, Olympics, and Paralympics, fostering an environment conducive to celebrating athleticism and camaraderie.
Financially, Adidas recorded a remarkable 8 per cent increase in currency-neutral revenues for Q1, propelled by robust brand momentum. Footwear revenues soared by 13 per cent, spearheaded by Originals and Football categories, while apparel sales witnessed a modest 2 per cent uptick. Lifestyle revenues surged impressively, driven by popular franchises and successful product launches across various segments.
The company's strategic focus on bolstering DTC channels yielded significant dividends, with a staggering 20 per cent growth in this segment. Strong double-digit growth in Own Retail and E-commerce underscored Adidas' prowess in navigating evolving consumer preferences.
However, challenges persist in the North American market, where a 4 per cent decline in sales was attributed to a conservative sell-in strategy amid lingering inventory concerns. Nonetheless, Adidas demonstrated resilience, posting robust growth in Europe, Emerging Markets, and Latin America.
Adidas' gross margin surged to 51.2 per cent, reflecting healthier inventory levels, reduced discounting, and a favorable business mix. Operating profit skyrocketed to €336 million, marking a substantial improvement from the previous year. Enhanced bottom-line performance translated into net income from continuing operations of €171 million.
Inventories witnessed a notable improvement, declining by over €1.2 billion year-over-year, indicative of successful initiatives aimed at inventory optimization. Furthermore, adjusted net borrowings witnessed a significant reduction, underscoring Adidas' commitment to prudent financial management.
Buoyed by its stellar Q1 performance, Adidas revised its full-year outlook, anticipating mid- to high-single-digit revenue growth and an operating profit of around €700 million. However, significant currency headwinds pose a challenge to profitability, necessitating strategic adaptations to mitigate adverse impacts.
Adidas remains steadfast in its pursuit of excellence, leveraging innovation, and strategic partnerships to navigate dynamic market conditions and sustain robust growth momentum.
