The impact of the Covid-19 pandemic on the global apparel industry and its supply chain continued to dominate coverage on just-style in June. We take a look at how the garment sector has suffered the biggest economic hit during the crisis, and why supply chain financing is vital to recovery. The list also includes interviews with Pallak Seth, founder and vice chairman of fashion supplier and sourcing powerhouse PDS Group, and Qiu Yafu, chairman of Chinese textile and clothing conglomerate Shandong Ruyi Technology Group.
1. Fashion retail and Maine lobster are in the same boat
The US fashion industry, like the lobster industry, resides on the edge of a very dangerous cliff right now – each group is looking to secure financing and locate markets wherever they can be found. The only difference is that we haven’t been given a “Fashion King,” says Rick Helfenbein.
2. A case study in crisis management – What next for PDS Group?
Trust, people and partnerships – key tenets underpinning fashion supplier and sourcing powerhouse PDS Group – have been tested to the limit during the coronavirus pandemic. But they’ve also stood the business in good stead, helping to not only weather the storm but reposition it to emerge even stronger from the crisis, as founder and vice chairman Pallak Seth explains.
3. Garment sector suffers biggest economic hit amid Covid-19
The garment industry has suffered the biggest economic hit during the Covid-19 pandemic, according to a new report, with supply chain disruption the top challenge.
4. How will EU trade curb affect Cambodia’s apparel industry?
Cambodia’s garment industry, already buffeted by the coronavirus pandemic, is set for a further hit after the European Union decided to suspend duty-free access for some products from 12 August over “systematic” human rights violations. Here, Abby Edge and Sheng Lu from the University of Delaware, analyse the potential impact and possible shift in trade patterns.
5. Ruyi Group sees investment as key to future-proofing business
Qiu Yafu, chairman of Shandong Ruyi Technology Group, tells just-style how the Chinese textile and clothing conglomerate is weathering the storm thrown up by the challenges of the Covid-19 pandemic, the US-China trade war and the high cost of an acquisition spree over the last four years that has added international luxury brands and The Lycra Company to its portfolio.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData6. Reshoring possible as US firms look to shorter, faster supply chains post-pandemic
US clothing brands and suppliers are likely exploring ways to make their supply chains faster and more nimble as a result of the coronavirus pandemic – which could involve many looking to shift parts of their production to the US, Central America and Mexico, the CEO of the American Apparel and Footwear Association (AAFA) has said.
7. Li & Fung restructuring with job cuts
Less than two weeks after taking its business private, Hong Kong based sourcing giant Li & Fung is restructuring in a move that will potentially see the loss of more than 1,500 jobs.
8. Covid-19 has taken its toll on Sri Lanka clothing sector
Covid-19 has taken its toll on Sri Lanka’s textile and clothing sector, with exports forecast to plummet 30% in fiscal 2021.
9. Blockchain tech offers fully traceable recycled cotton
A Dutch startup has developed a new technology that uses tracer particles and blockchain to guarantee that the recycled cotton that enters the supply chain is the same that comes out as apparel.
10. Apparel supply chain financing is vital to aid recovery
When a crisis such as the Covid-19 pandemic hits a supply chain as complex as that of clothing, financing problems can gum up commercial relationships – meaning governments, regional and international organisations all need to step in.
11. From Field to Shelf – Selling garments should never be the same
As an industry we keep repeating ourselves: making the same mistakes over and over again. Twenty-five years ago, the pain was felt in America. Today it’s suffered in Bangladesh. We must acknowledge that it’s time for a change. The old model has overstayed its welcome and outlived its usefulness. It should be scrapped for something better. By Robert Antoshak, managing director of Olah Inc.
12. Sustainable cotton needs investment for more credibility
The organic cotton industry needs significant investment in infrastructure and seed, and the creation of a neutral body to ensure the distribution of more credible data, according to industry experts.
13. Suppliers must lead in reshaping post-virus payment practices
Apparel suppliers are being urged to take the lead in setting up a group to shape new payment and terms practices for the industry as it emerges from the coronavirus crisis.
14. El Salvador eyes 25,000 apparel job losses as exports falter
El Salvador lost 20,000 apparel industry jobs this year and could lose another 5,000 as production plummets 35% due to Covid-19.
15. Is Kanye West collaboration the turning point for Gap?
Shares in Gap Inc have jumped 13% after the US specialty apparel retailer revealed it has inked a deal with Kanye West to design a new line of adult and kids’ clothing.
16. Gap Inc focused on refashioning for growth
US specialty apparel retailer Gap Inc says it is using the coronavirus pandemic to right-size the business and build it for the future – acknowledging there is plenty of work needed at the eponymous Gap brand.
17. H&M Group signs circular economy pledge to “build back better”
Swedish fashion giant H&M Group has signed a new pledge committing to accelerate the transition to a circular economy – which environmental sustainability manager Cecilia Brannsten tells just-style will be key to enabling a more resilient future for fashion.
18. US clothing retail sales surge 188% in May as stores reopen
Sales at US clothing retailers almost tripled in May from the month prior as businesses closed by the coronavirus pandemic began to reopen but remained well below spending levels seen during the same period a year ago.
19. Kenya’s sourcing sector reels from Covid-19 pandemic
Kenya’s clothing manufacturing industry has been punched hard by Covid-19’s devastation of its main export market, the United States.
20. Garments on Hangers – Strategies for a digital world
“To hang or to box” is a question that has long been debated within the fashion retail supply chain. With companies now emerging from the coronavirus pandemic looking to reconfigure their supply chains to withstand future disruptions, the way garments are moved from factory to consumer is a critical consideration as the industry pivots to a digital future – Roit Kathiala decodes.
