Apparel Intelligence Volume 12

Opinion

Primark & Zara slammed?for unfair purchasing practices including last-minute cancellations, failure to pay, discount demands and forced overtime. There is an ongoing campaign for a fashion watchdog to halt these practices.

Lululemon expects gross margin to fall?by 90 - 110 basis points in Q4 as the apparel maker grapples with increased costs amid the drop in consumer spending due to persistently-high inflation.

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By The Way

India's cotton yarn prices rose?by ?5-10 per kg in the market due to the increased demand for yarn as buyers anticipate cotton prices to soar! Increased demand in export & domestic consumption but uncertainty persisted.

Iranian cotton production is expected to rise?by 20%. The cotton production is to reach approximately 300,000 tons in the current year due to the 17% increase in the cotton cultivation area.

Makalot plans to invest $17M in Bangladesh.?The Taiwanese manufacturer will set up a factory in the Bay Economic Zone creating employment for around 1500 people to produce sportswear, sleepwear, leisure clothing & outdoor garments.

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What to Watch

France enforces eco-labelling laws?making it necessary for large clothing brands to have environment labelling with information on recyclability, sustainability, traceability, etc. This will law will apply to companies with a turnover above €50m from this month, followed by smaller companies in 2024 and 2025.

Pakistani Textile industry lays off 7 million people?due to dwindling exports & economic crisis. Factories are facing production delays & order cancellations due to the lack of necessary raw materials & accessories and credit loan rejections.?

Bangladeshi garment manufacturers are forced to sell?their goods for less than the cost price. Despite the known rising costs of raw materials, most factories had to maintain or reduce prices to secure buyers like H&M & Zara.

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What Else Is Happening

Sri Lankan President hopes India FTA?talks to be concluded by June & signed in September 2023, focusing on removing the quota on apparel exports to India. A list of 460 export goods for duty concessions was given to India including apparel, tiles, furniture, etc.

Cambodia's exports boomed by 16.4%?because of RCEP & CCFTA, exports include apparel, footwear, travel goods, etc. to US, China, Japan & more. Imports increased by 4.6%, including, consumer goods, raw materials for garments, etc.

UAE - India FTA fails?the Indian apparel industry as apparel exports to the UAE reduced by 36.32%. UK has moved to UAE's rank in India's top apparel export locations. However, exports in other industries (gems, cereal, machinery) rose.

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