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The impact of COVID-19 on Bangladesh was so severe that export earnings touched a record low of $0.52 billion in April, says an Apparel Resources report. Of this, apparel exports contributed to $0.37 billion. The complete breakdown of supply chains and order cancellations by brands and retailers complicated things, forcing BGMEA to blacklist brands that failed to pay for their orders.
After many discussions and deliberations, these retailers have finally agreed to accept their cancelled orders. The gradual reopening of outlets from June has rekindled recovery hopes amongst brands. However, for full recovery brands would have to wait till January of February next year, says Mahmud Hasan Khan Babu, Former Vice President, BGMEA. And while manufacturers wait for a recovery, new issues are plaguing. Europe is experiencing resurgence in number of new coranovirus cases.
Europe’s latest lockdown to last long
As per the European Centre for Disease Prevention and Control, more than half of European countries have reported over 10 per cent surge infections in
the past two weeks, stated Hans Kluge, Regional Director, World Health Organization Even countries like Czech Republic, that had remain unaffected by the first wave, are experiencing a rise in cases.
To control these, countries are introducing stricter regulations that are likely to remain in place for the entire winter. For example, the UK has announced new restrictions that could last six months. Spain has imposed partial lockdown in Madrid that allows only a maximum of six people allowed to meet in any setting. People are allowed to travel outside their home districts only for essential journeys.
Many countries are also opting for more localized approaches as nationwide lockdowns have crippling impacts on economies. They are not in favor of sweeping restrictions or protracted lockdowns like before as they have a significant impact on their exports, says Fazlul Hoque, Ex-President, BKMEA and Managing Director, Plummy Fashions
Though restrictions in the US were not as severe as in Europe, the election Joe Biden as new President might have a significant impact on apparel exports, says Wasim Zakariah, Managing Director, Posh Garments. Donald Trump’s election in 2016 had triggered the so-called ‘Trump trade’ policy uncertainty, which was not suitable for the development of trade and commerce.
Currently, many factors are affecting global apparel exports. The industry needs to collaborate more to address these issues.
With consumers rediscovering their love for denim during the lockdown, brands are focusing on technical innovations and upcoming trends in their upcoming Spring/Summer 2022 collection, says a Sportswear International report.
Innovations in fabrics and technologies
Denim manufacturer Isko has launched 360 degree stretch denim Isko Blue Skin. The denim is manufactured using advanced patented technology Isko Bluejym that delivers dynamic stretch and athletic performance, and patented woven technology Isko Future Face which is perfect for pieces that are faithful to a true denim image.
Similarly, Egyptian manufacturer Sharabati Denim has launched the Diversity group, a line of fabrics characterized by different weaves, and a selection of
printed fabrics. Increasing its range of unisex denims, Calik Denim has developed new technologies such as Selfsized and Smart Stretch technology. These technologies along with the ultra-high elasticity and its cotton fabric enable the company to fit one single size jean multiple wearers perfectly. This significantly reduces the risk of buying wrong size jean.
Artistic Milliners has launched a new dyeing technology known as Purecolor which uses 100 per cent natural dyestuffs without adding any synthetic chemicals. The dyes are derived from Earth’s soils and their colors have been GOTS certified and meet the ZDHC MRSL Level 1 Certification Requirements. These dyes are lightweight and can withstand five home launderings.
Renewed focus on hemp
For their S/S ’22 collections, denim brands have increased their use of hemp fabrics which not only grows faster than cotton but also requires little water, no pesticides, is very resistant and lasts long. The fiber is being used in combination with other fibers to further enhance its particular characteristics. Some of the most prominent manufacturers of hemp denims are: Foison Denim, Iskur, Naveena, Orta, Sharabati and House of Gold.
Orta has launched a new collection called Here4good collection that focuses more on eco-engineered and climate friendly habits. Made with engineered hemp, its Gen H range offers stretch, durability and comfort besides incorporating CBD, Cannabidiol, a beneficial substance used in the beauty and wellness industry. Another denim manufacturer Naveena uses natural fibers including hemp, polyester and elastane. The company focuses on sustainable production processes that lead to the creation of a 100 per cent sustainable denim. Similarly, Cordura is developing a range of hemp blends which it plans to launch by early 2021. These blends will display hemp’s high-tenacity, strength, durability, versatility and sustainability characteristics to Cordura.
Defining denim future with new apps
Denim suppliers are also developing new apps to communicate directly with their consumers. Calik Denim has launched an updated version of its mobile app that has two new sections-Calik Denim Mobile App Blog and New Technologies & Innovations. Through these sections, app features some of the most important issues for the denim and fashion world every week besides publishing the contribution of some of the prominent editors and influencers.
With its new app, Cadida, the Italian label and packaging manufacturer has improved its services at Webshop B2B . The new Cadica App Collection enables customers to browse the company’s latest collections, examine all its labeling and packaging proposals, order samples, chat with its representatives and watch webinar explanations on materials and technics for each collection. It also offers an alternative for the insiders’ work.
Cadida, Orta has developed a special Orta Blu glossary application that enables specialized denim manufacturer to share their knowledge on denim manufacturing and sustainability with the industry. This app allows designers and consumers to evaluate the validity of their decisions in defining the future of the environment.
At International Textile Manufacturers Federation’s (ITMF) Hybrid ITMF Annual Conference 2020 held on October 22, 2020, the Committee of Management of the Federation elected new board members for 2020-22. Ruizhe Sun, President, China National Textile and Apparel Council (CNTAC), was elected the new president of the federation. An engineering graduate with an EMBA degree, Sun started his career in 1985. Currently, he is a professor-level senior engineer and the Vice Chairman, International Textile Manufacturers Federation (ITMF), Chairman, Responsible Supply Chain Association (RSCA), CNTAC, and Director, China Textile & Garment Brand Strategy Promotion Committee.
Other appointments
K V Srinivasan from India and Juan Parès from Spain were elected new vice presidents. Ernesto Maurer (Switzerland) was elected as the new treasurer.
The Netherlands-based Loek de Vries, Indonesia-based Michelle Tjokrosaputro and Egypt-based Mohammad Kassem were re-elected board members.
The Committee of Management elected Mustafa Denizer (Turkey), Uday Gill (Thailand/Indonesia), Salman Ispahani (Bangladesh), Suchita Jain Oswal (India), Taejin Kang (Korea Rep.) and Yingxin Xu (China) as the new board members. Rafael Cervone (Brazil), John Cheh (Hong Kong, China), Andrew Macdonald (Brazil) and Muharrem Kayhan (Turkey) were also co-elected as board members. Korean representative Kihak Sung (Korea Rep.) was elected honorary life member of the federation in recognition of his outstanding contribution as Vice President (2016-2018) and President of ITMF (2018-2020).
From cotton to multi-fiber industry
One of the oldest non-governmental organizations, International Textile Manufacturers Federation (ITMF) founded in 1904, it was initially named International Federation of Master Cotton Spinners and Manufacturers Association,’ and often referred to as the ‘International Cotton Federation.
Headquartered in Manchester, the federation represented and promoted the interests of global cotton spinning and manufacturing industries. The advent of man-made fibers broadened the raw material basis of the cotton industry. At the same time, vertical integration in textile enterprises changed the structure of the industry and broadened its scope to a multi-fiber, multi-process industry.
According to the Ministry of Commerce,Myanmar exported garments under the cut-make-pack (CMP) system worth $4.28 billion between October 1 and August 31 in fiscal 2019-20. However, following the novel coronavirus pandemic, some CMP garment factories have shut down due to lack of raw materials, leaving thousands of workers unemployed.
The export value of CMP garments was only $850 million in fiscal 2015-16, but has tripled over the last two fiscals. In 2016-17, about $2 billion was earned from such exports.
The figure increased to an estimated $2.5 billion in 2017-18Y and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the fiscal 2018-2019, the ministry said.
The CMP garment sector, which contributes 30 per cent to Myanmar’s export sector, is bracing for a downward trend owing to cancel of orders from European countries and suspension of trade by Western countries amid the pandemic, according to media reports in the country.
JC Penney expects to exit bankruptcy by the end of this month and operate under a new owner.
The US Bankruptcy Court for the Southern District of Texas has approved the previously announced asset purchase agreement with mall operators Brookfield Asset Management Inc. and Simon Property Group as well as the retailer’s DIP and first lien lenders. Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets through a combination of cash and new term loan debt.
The company will carry forward on implementing the “Plan for Renewal” it launched in 2019. Its key objectives include offering compelling merchandise, driving traffic, delivering an engaging experience, fueling growth and building a results-minded culture.
The government has assured the All Pakistan Textile Mills Association (APTMA) that all tax issues, including refund claims, would be resolved as quickly as possible as it is committed to facilitating trade and industry by sanctioning all pending tax refunds in order to relieve the export-oriented industry from a liquidity crunch, especially in view of the post-Covid economic meltdown.
The commitment was made by Qaiser Iqbal, Chief Commissioner, Lahore Large Taxpayer Office (LTO) in a zoom meeting with APTMA members. Abdul Rahim Nasir, Chairman, APTMA Punjab also addressed the session and presented demands of taxpayers to the Chief Commissioner.
The LTO chief commissioner said that the Federal Board of Revenue (FBR) accords prime importance to the resolution of all tax matters being faced by exporters and has recently launched a new refund release system, FASTER plus, to expedite the refund of taxes paid on inputs used in exported goods.
A dedicated cell would be set up soon for processing of all deferred cases with the direction to ensure that no deferred claim remains pending indefinitely whereas the FBR is also working to develop new software which will eliminate bogus invoices.
Issues relating to WHT on their electricity bills and extension of the benefit of Clause 66, Part IV of the Second Schedule to Income Ordinance, would be resolved in consultation with Lahore Electric Supply Company (LESCO).
As per Apparel Resources, the apparel imports by Canada declined on both Y-o-Y basis and M-o-M basis in September ’20, owing to uncertain market conditions as analyzed and reported by Apparel Resources recently.
There were only two countries – India and USA – in top 10 importing destinations of Canada which marked growth in September over August this year; every other major shipper fell in its shipment to Canada.
India surged by 2.09 per cent in Sep. ’20 over Aug. ’20 to ship US $ 17.86 million worth of garments to Canada. However, the country could tap yearly growth and fell by 17.64 per cent as compared to Sep. ’19, making a recovery of business by just 82.36 per cent on the yearly note.
As far as the US is concerned, the benefit of revised NAFTA (now USMCA), which came into light in August, can be seen! USA shipped 2.57 per cent more garments in value terms to Canada worth US $ 20.56 million in Sep. ’20 as compared to Aug. ’20.
China, the largest apparel shipper to Canada, fell by 28.91 per cent on monthly note to $ 344.88 million in Sep. ’20 as compared to Aug. ’20 and also declined by 6.56 per cent from September ’19 figures. The drastic fall in monthly value has also caused a sharp decline in the Chinese share to the Canadian market which has come down to 38 per cent in Sep. ’20 from 45 per cent in August ’20.
Bangladesh too plummeted by 7.61 per cent in Sep. ’20 on M-o-M basis to ship US $ 104.91 million worth of garments to Canada. The country was also down on Y-o-Y basis by 3.10 per cent in September. ’20.
Italian denim brand Replay has launched a men’s and women’s denim range made entirely from recycled, recovered or repurposed materials. The new Hyperflex Re-Used collection comprises stretch jeans made from recycled polyester. Replay is also creating regenerated CCS-certified cotton. The company estimates 10 per cent of virgin cotton fibers are lost in an ordinary spinning process.
For men, the Hyperflex Re-Used collection offers 11.5 oz. straight-fit jeans in deep indigo, overdyed black slim-fit and skinny jeans. The women’s line includes a skinny fit and a super-high-rise skinny fit available in indigo, black, and medium and dark gray. The jeans retail for €150 or approximately $175.
The collection builds on Replay’s other sustainable efforts such as the Hyperflex Bio, a range of its bestselling stretch jeans made with organic cotton, recycled fabric and recycled PET bottles. Recently Nu-in also introduced its 100 per cent recycled Denim collection, made with a combination of pre- and post-consumer cotton waste that comes from production cut-offs and discarded clothes.
Next, Primark and John Lewis are amongst the first retailers to pledge their allegiance to WRAP’s Textiles 2030 voluntary initiative. As per EcoTextile, to be launched its April, the initiative will help fashion firms pivot their operations from a linear make-use-dispose to a circular model. The ten-year program will transform UK clothing and home fabrics to reduce their impact on climate change.
For this initiative, WRAP aims to on-board as many brands, retailers, NGOs and charities as possible across the industry to spark tectonic shifts to the way apparel is produced, used and subsequently discarded of, due to the immense pressure current practices are having on landfill levels.
Amongst the first batch of recruits for the Textiles 2030 initiative are: The British Fashion Council, British Heart Foundation, The British Retail Consortium, Cancer Research UK, Charity Retail Association, CTR Group, Institute of Positive Fashion, Oxfam, Recyclatex, Re-Fashion, Sainsbury’s, Salvation Army Trading Company, SOEX UK, Suez, Ted Baker, Textiles Recycling Association and Tesco.
Set to kick-off from April 2021, the initiative will adopt a target-measure-act approach, which will require clothing and textile businesses to set targets, measure their impact and track progress on both an individual business basis, and towards national targets and public reporting.
The US Fashion Industry Association (USFIA) has issued a statement reiterating its support to the US economy and a fresh approach to trade policy and American participation in global alliances.
Founded in 1989, the United States Fashion Industry Association (USFIA) represents the fashion industry: textile and apparel brands, retailers, importers, and wholesalers based in the United States and doing business globally. The association aims to eliminate the tariff and non-tariff barriers that impede the industry’s ability to trade freely and create economic opportunities in the United States and abroad.
Headquartered in Washington, DC, USFIA is a respected voice for the fashion industry in front of the US government as well as international governments and stakeholders. Through its publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including US and international service providers, suppliers, and industry groups
