Apparel industry briefing

From 2023, Germany’s supply chain due diligence law means companies that employ at least 3,000 workers and thus fall within the scope of the Supply Chain Act will have to prepare an annual report on the fulfilment of due diligence obligations in the previous business year.

Approximately 30% of clothes, shoes, and accessories in the US move by rail. Those goods include children’s apparel, backpacks, winter coats and boots, work shoes and uniforms, according to the American Apparel and Footwear Association (AAFA).

A training project, which was supported by the UK and Swiss Government from 2015-2020, led to over 55,000 workers being trained in 114 Bangladesh garment factories by 932 trainers that were first trained by Rajesh Bheda Consulting.

UK clothing and fashion firms are holding 57% more stock compared to pre-pandemic levels as the world’s supply chain woes take on a new form.

It is estimated H&M’s new restructuring programme will provide annual savings of around SEK2bn which are expected to become visible in the second half of 2023.

According to the McKinsey State of Fashion 2023 report, 85% of fashion executives predict inflation will continue to challenge the market next year.

Data from the General Department of Customs and Excise for Cambodia under the Ministry of Economy and Finance reveals apparel exports amounted to US$7.75bn in the period from January to October 2022, representing a $6.54bn increase from the previous year.

According to the World Trade Organization’s Goods Trade Barometer, the current reading of 96.2 is below both the baseline value for the index and the previous reading of 100.0, reflecting cooling demand for traded goods.

A garment factory fire in China’s Henan province has resulted in the death of 38 people and 89 people reportedly escaped, some with minor injuries.

A new detergent developed by Inditex and chemical developer BASF to reduce microfibre release from textiles during washing means end users can lower their energy consumption by reducing the temperature from 40°C to 20°C and thereby reducing their carbon footprint.

“This year is stacking up to be one marked by rising inflation for both raw materials and finished products. Shortages in the cotton supply due to weather calamities in Pakistan, the US and elsewhere will only fuel price inflation. For mills, expect higher prices for cotton.”

“Energy is a significant cost, particularly for the textile sector, and we know that members have seen energy bills rise by over 50% already. For those manufacturing clothing, it is proving very difficult to pass on the costs to retailers or consumers and therefore they have had to swallow the costs themselves.”