Blog: Navigating potential risks ahead of TPP
Leonie Barrie | 28 September 2015
As the second largest footwear supplier to the US, Vietnam is already an important part of the production portfolio for many US footwear companies. But with growth being fuelled by the possible Trans-Pacific Partnership (TPP), companies eyeing the country as a sourcing destination should also be navigating potential risks.
The advice coincides with a meeting of chief negotiators of the 12 countries involved in the TPP, for what could be the final negotiating sessions for the deal. The talks come as the US released a detailed summary of its negotiating objectives.
As Wal-Mart ramps up its efforts to reshore more US clothing production, the recipient of a $2m grant from the retailer’s Innovation Fund talks about progress in developing systems to automate apparel-making.
Nothing less than industry-wide collaboration will work when it comes to creating living wages in the garment industry, unions say, as talks get underway in Cambodia to try to change the way companies source garments to ensure higher wages can be paid.
Also in Cambodia, Hong Kong based garment manufacturing giant Crystal Group is hoping to replicate the success of its “Chinese role model sustainable denim jeans factory” with a new facility in the country.
Security bills that expand the role of Japan's military overseas could result in China ramping up investments to protect its supply routes and domestic growth. But Mike Flanagan suggests this is also likely to have ramifications for the funding of garment projects overseas.
And Swedish fashion group Hennes & Mauritz (H&M) saw earnings edge up just 0.2%in its third-quarter, with the negative impact of the strengthening US dollar on sourcing costs largely to blame.
Deflationary pressures, the rise of Amazon and the expansion of off-price and fast fashion chains all have the potential to disrupt traditional US apparel retailers - but it is the athletic players that are “well positioned” to come out on top, analysts suggest.
And in other news, the chief executive and head of finance at UK footwear retailer Clarks have both stepped down; a reshuffle of the merchandising team at JC Penney has seen John Tighe promoted to chief merchant; Adidas has filed a trademark lawsuit against Skechers; and PVH Corp has launched a “game changer” in men's dress shirts.
In the most recent third-quarter filings from US apparel and footwear brands and retailers, Skechers said it has achieved a new third-quarter sales record for the period, while Under Armour delivered ...
Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...
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