Apparel industry briefing
News in numbers
Nike and Adidas footwear supplier Pou Chen Corp has reportedly axed 6,000 jobs at its Vietnam factory citing weak demand.
Recycling textiles company Circ has raised $25m in series B extension funding with support from Zalando and Avery Dennison.
Clothing suppliers based in Türkiye have applauded the third Istanbul Fashion Connection (IFCO) event for allowing them the opportunity to showcase their collections and connect with “serious” customers.
VF Corp says it will use EUR500m from the sale of its senior notes for projects related to Sustainable Development Goals (SDG).
India’s apparel sector is expected to help boost the country’s merchandise exports to US$1tn by 2030, according to the Apparel Export Promotion Council.
Canadian apparel maker, Gildan Activewear, has reported record sales of US$3.2m for FY2022, which is an 11% increase on the prior year, however its Q4 sales of $720m are 8% lower than the same period last year.
The Council for the Development of Cambodia (CDC) has greenlit two garment factories with a total capital of US$12.1m, according to local news reports.
92 million tonnes
The clothing industry is the biggest pollutant in the world after the oil and gas sector, producing an estimated 92 million tonnes of textile waste every day, according to Ethical Fashion Group.
US-based Authentic Brands Group, which last year acquired UK fashion brand Ted Baker in a deal worth GBP211m (US$253.5m), has expressed interest in a deal with Hunter, the royal warrant-holding footwear brand, according to Sky News.
1 March 2023
On 1 March 2023, China granted zero-tariff treatment to 98% of the tariff line, which includes 8,804 products made in Ethiopia.
News in quotes
“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.”
- Bob Antoshak, partner at Gherzi Textil Organisation
“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.”
- Adam Mansell, head of the UK Fashion and Textiles Association (UKFT)
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