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India’s Bajaj Industries has signed a contract with the Holding Company for Cotton, Spinning, Weaving and Garments, affiliated to the Egyptian Ministry of Public Enterprise Sector, for the supply of three state-of-the-art cotton ginning machines. Bajaj had previously supplied and installed the first modern cotton ginning machine in Fayoum. The three new cotton ginning machines, which will be located in Sharqiya, Beheira, and Gharbiya, are expected to enter into service by the end of 2020 at an estimated cost of EGP 400 million.
China aims to ensure its citizen shop for international luxury brands within its own borders instead of travelling abroad. For this, the government, proposes a new annual limit of RMB100,000 ($14,000) per person for tax-free shopping in Hainan, China’s southernmost province. The popular tourist destination attracts more than 75 million, primarily domestic, tourists every year. The new limit is more than three times the current RMB 30,000 ($4,200).
The allowance rise and free port policy announcement followed the ‘Two Sessions’ annual plenaries of the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference which ended last week. Among other aspects of the free port plan relevant to duty-free retailing include the plan to increase its number of tourists by making Hainan an international aviation hub; liberalising air rights including fifth and seventh freedoms; and the constructing a cruise tourism pilot zone.
According to consulting firm Bain & Company, the Chinese increased their share of the estimated $313 billion personal luxury goods market by up to 35 per cent last year. China was also responsible for almost single-handedly growing the personal luxury market in 2019.
Though most European brick-and-mortar clothing stores opened around four weeks ago, sales have been dismal. As per latest data published by the trade association Acotex, in April, clothing sales declined 50 per cent in the United Kingdom and by 67.4 percent in France. These sales further plummeted by 72 per cent year-on-year in May and by 45 per cent to date.
Huge cash reserves save Inditex despite declining sales
Some of reasons for declining sales are: the inability of people to visit stores in recent times, reduced socializing and a decline in consumers’ incomes. Recently, one of the largest fashion retailers Inditex reported a 44 per cent plunge in revenues in first quarter and also a net loss of €409 million.
However, the company’s online sales surged 50 per cent in the first quarter. The company expects online sales to represent over 25 per cent of its total sales by 2022. Despite
its struggles, the company’s huge cash reserves enabled it to pay its staff without having to put them on short-term leave.
Government bailouts, short term leave to survive
Unlike Inditex, budget fashion chain Primark had to rely on government bailouts across Europe to pay its 68,000-strong workforce, while, Sweden’s H&M Group had to put tens of thousands of employees on short-term leave throughout the world. H&M also had to face the problem of burgeoning inventory of unsold goods during the lockdown. By the end of April, the brand had unsold inventory amounting to almost $4.2 billion.
According to Euromonitor International, around 40 per cent of the businesses in the sector expect the impact to be much worse than that of the 2008 financial crisis, while McKinsey estimates up to one-third of global fashion retailers to perish during the crisis.
Retailers are already feeling the pinch as big clients such as the UK’s Arcadia Group are cancelling orders and extending payment terms, the onset of the discounts trend could further cripple their already challenged finances.
The global COVID-19 pandemic has made a significant dent in the Japanese apparel retail industry, forcing the mass closures of retail stores in the country.
As a result, during January-April ’20 period, Japan imported 903.5 billion yen (US $ 8.41 billion) of garments, marking 9.60 per cent downfall on a yearly basis. According to the data released by Ministry of Finance, Japan was also down by 8.80 per cent in weight to import 2,076 million kg worth of garments from the world over.
Vietnamese apparel shipment to Japan valued at 149.29 billion yen (US $ 1.39 billion), marking a surge of 4.81 per cent on Y-o-Y basis.
China exported 486.05 billion yen (US $ 4.53 billion) of garments to Japan in the first 4 months of 2020, noting a drop of 14.43 per cent, while the exports of India valued at 11.71 billion yen (US $ 110 million) which was 21.58 per cent down from what it had exported the same period of the prior year.
Bangladesh too dwindled in its exports to Japan. The shipment from Bangladesh valued at 46.59 billion yen (US $ 434 million), noting 3.04 per cent fall on Y-o-Y basis.
In an effort to deliver transparency when consumers demand it most, denim mill Isko launched its first Sustainability Impact Report. The report documents the ways Isko is achieving the UN’s Sustainable Development Goals (SDGs) and International Labor Organization (ILO) standard frameworks, and illustrates sustainable initiatives and ties each one back to a specific goals.
Isko’s new laser-friendly finish, Vulcano, supports SDG 6 (lean water and sanitization). The company’s R-TWO concept, which uses reused cotton and post-consumer recycled polyester, speaks to SDG 12 (responsible consumption and production). The company’s starting wages—which are three times the legal minimum wage in Turkey—supports SDG 8 (decent work and economic growth). Currently, the monthly minimum wage is 2,324 Turkish liras, or approximately $340.
The report also describes Isko’s commitment to responsible innovation and production, and provides details on the ways it manages its environmental impact, oversees supply chain processes, uses raw materials and implements better health and safety standards.
Pakistan Hosiery Manufacturers Association (PHMA) recently stated that value-added textile export industry had rejected the federal budget for 2020-21, terming it “one-sided and unrealistic” without any relief for the textile industry, which was the backbone of the economy and exports.
The association was of the view that the textile industry had been completely ignored and deprived of relief in the federal budget, which purportedly had been made on directives of the International Monetary Fund (IMF).
It said the imposition of 17 per cent sales tax in the previous budget had brought a disastrous impact on the textile industry and its exports as well as caused liquidity crunch due to stuck refunds worth billions of rupees. Value-added textile exporters have expressed sheer disappointment and have demanded that the government review and restore the zero-rated regime for the five major export sectors as a lifeline for the economy.
The exporters urged the government to reconsider restoring the zero-rating facility or slash general sales tax from 17 per cent to 4 per cent.
The local Sri Lankan apparel sector has stressed the need to establish a stronger online presence to ensure it anchors strong in the post-COVID-19 era and hold a sizable portion of the global fashion industry.
With the core business of Sri Lanka’s apparel sector being the fashion industry, Joint Apparel Association Forum (JAAF) President Arumugampillai Sukumaran said it is essential for the industry to continue to focus on it and urgently put in place a payment platform to engage in e-commerce as a major change.
Noting that the global supply chain will only change its origin, due to trade wars but will be revitalised with a more Asian focus outside China, he said the local apparel industry is working hard at staying afloat without collapsing to “win the game”.
According to Sukumaran, the true impacts of COVID-19 have not fully presented and there still are few more months of difficulty for the industry to navigate through. He also pointed out that the global apparel industry would be smaller post COVID-19 than before and it is a reality the industry stakeholders need to understand.
However, he opined that with the changes in technology, increasing value addition to product, changing the way the industry works, Sri Lanka’s apparel sector will continue to be vibrant and relevant.
A survey by Business & Human Right Resource Center (BHRC) shows, out of 35 brands and retailers, just 19 are prepared to pay for their entire order. And this is having a devastating impact on millions of garment workers who have either lost their jobs or are not being paid since the last two months. This has left millions of women and migrant workers in fashion’s supply chains unable to put food on the table for their children, and wondering how they will pay the rent.
Also, eight companies have requested retroactive discounts from suppliers for orders they had previously placed. Debenhams has asked for a whopping 90 per cent discount. In addition, eight firms including Primark have delayed settling their bills by extending their usual payment term by up to 180 days, or six months. Three brands — Hermès, N Brown and Zalando — said that some suppliers were taking shorter payments in order to alleviate issues with cash flow during the crisis.
However, some brands have stood out against this norm, showing leadership, said Thulsi Narayanasamy, Senior Labor Researcher at BHRC. Another 23 have taken steps to ensure that workers are paid in March and April and 19 businesses said they are helping suppliers access financial resources. Narayanasamy says, this can help build their trust with suppliers and workers on whom their successful recovery will depend. He urged the industry to applaud brands who are transparent about their actions as this allows civil society and workers to monitor whether commitments are being met.
Munich Fabric Start and Bluezone are relocating to a more spacious venue to help ensure social distancing. The Fall/Winter 21-22 event will move from the Munich Order Center (MOC) to Messe München-Riem. Messe München-Riem, located approximately 10 miles from MOC, has ground-level exhibition halls, numerous spacious entrances and loading gates, as well as ground-level parking spaces in the immediate vicinity of the halls. The fairground is accessible by public transportation. The organizers have drawn up a concept that will span four halls in the interim location with a total area of approximately 485,000 square feet.
MFS and Bluezone will be among the first physical events to take place since the global pandemic. Trade shows will be held in Bavaria as of September 01, taking into account necessary protections against infection.
The new requirements entail numerous structural, organizational and personal measures that are necessary for smooth and safe trade fair operations. Due to the site restrictions in the MOC, many of these mandated precautions cannot be adequately implemented in the traditional location.
Jeanologia has developed a manual for the application Trizar technololgy in its denims to save costs, reduce waste and add permanent warmth to jeans, without bulk. The e-flow technology is based on nano bubbles and was developed and patented by Jeanologia. The e-flow breaks up the surface of the garment, achieving soft hand feel and controlling shrinkage. A minimal quantity of water is needed and there is zero discharge from the process. Air from the atmosphere is introduced into an electro flow reactor and subjected to an electromechanical shock creating nano bubbles and a flow of wet air. The nano bubble mix is then transported into a rotating tumbler containing the denim garments, and when it comes into contact with them produces a soft and natural hand feel.
Trizar technology is a space certified technology that was used by NASA on Spaceships. By increasing a materials emissivity, Trizar materials are engineered to re radiate heat your body produces to keep you warmer longer. O’Neill Snowboard jackets, Forloh Hunting gear, Endeavor Athletic, HXT Mittens, Olympia, Cloudveil, Arctic Cat and Wolverine cold weather gloves all use Trizar materials now to retain body heat in cold weather.
