Blog: Underlying issues take their toll
Leonie Barrie | 9 March 2015
Bangladesh's textile and clothing exporters, still reeling from the impact of continuing political unrest in the country, now say they are facing a second shock wave: the freefall of the euro. Industry lobbyists and analysts fear the decline in value of the European single currency will cut exporters’ profit margins, weakening their ability to compete in the 19 countries using the euro.
The recent move by the Myanmar Garment Manufacturers Association (MGMA) to establish a voluntary Code of Conduct for its members is seen as a sign of its commitment to responsible sourcing. But what more needs to be done for the Code to be implemented and become effective?
Sporting goods giant Adidas recorded a much-reduced fourth-quarter net profit, impacted by currency headwinds, a slump in Russia and a weak golf market. But it now has its sights set on North America.
And apparently positive fourth quarter figures disguise some worrying underlying issues for US retail giant Gap Inc. The main challenge seems to be the need for more “newness” in its product designs if it is to gain a greater share of consumer spend.
A torrid year for Abercrombie & Fitch reflects wider underlying trends in the teen retail segment in which slow store traffic, declining sales, store closures and changing strategies are a key feature. But what is really required to carve out a recovery?
US apparel retailers reported mixed comparable store sales in February, as significant headwinds including severe winter weather, additional costs and delays from the West Coast ports slowdown, foreign exchange rates and higher gas prices all weighed on results.
India’s garment makers, meanwhile, have expressed disappointment at the annual budget for its lack of measures to promote apparel production in the country. And buried in the fine detail, there’s another reason they and their workers might also be annoyed, suggests Mike Flanagan.
In other news, German fashion house Hugo Boss has come under attack from union activists over its treatment of factory workers in Turkey; Target Corp is to axe several thousand jobs over the next two years as it looks to save US$2bn in costs; Sri Lanka’s newly elected government is calling for a rise in worker salaries; and UK retailer Marks & Spencer is to close five stores in Shanghai as its Asia head steps down.
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 ...
- Fashion fit for the future – strategies for speed
- How PVH is paving the way for connected apparel
- Digitisation to drive new apparel-making models
- Under Armour Lighthouse will disrupt production
- Pakistan industry seeks help to kickstart exports
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- Managing change in the move to new tech tools
- Hong Kong's Winds Group to open Haiti factory
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global Sports and Fitness Wear Market 2016-2020
- Apparel (GLOBAL) - Industry Report