INTERNATIONAL
NATIONAL
Around 80 per cent of key stakeholders in the Indian textile industry have already adopted some form of sustainable manufacturing practices, according to “Sustainability Survey Report 2023” by The Yarn Bazaar and Wazir Advisors. A media statement said the report showcases the significant momentum building among stakeholders across the textile value chain towards embracing sustainability and addresses key Environmental, Social, and Governance (ESG) factors. The realisation that ramping up production alone is insufficient has led to a collective focus on adopting sustainable practices, aligning with the environmental pillar of ESG. A majority of the survey respondent companies reported a year-on-year increase in the share of sustainable products in their portfolios, along with an intent to continue this transition in the future. According to the report, 13 per cent respondents currently have a 50-75 per cent share of sustainable products in their portfolio. Similarly, 25 per cent respondents currently offer more than 75 per cent sustainable products. The report said there is a significant upsurge in cotton recycling, alongside traditional polyester recycling, as the industry’s approach towards circularity evolves. Integrated players and large-scale spinning mills are actively exploring ways to recycle waste for the production of circular textiles, contributing to a more sustainable and circular economy. It said that due to the efforts of some companies the capacity for recycling polyester from bottles and converting it into textile materials in India is expected to reach or surpass 1,600 kilo tonnes per annum by 2030, at a CAGR of 4 per cent. This indicates a significant increase in recycling infrastructure and capabilities in the country, highlighting the growing focus on sustainable practices in the textile industry. ‘Compass to navigate’ Quoting Pratik Gadia, Founder and Chief Executive Officer of The Yarn Bazaar, the statement said: “This report serves as a compass for us to navigate the landscape of the textile industry, both on a global scale and within our own country. It allows us to understand where other major brands stand on sustainability, identify our own progress, and recognise the gaps that need to be bridged.” The textile industry, being the second most polluting industry in the world, faces a crucial crossroads for its own long-term survival. Gadia said there is a need to take immediate action to infuse sustainability practices that align with the UN’s Sustainable Development Goals (SDGs), and address key ESG concerns. Sanjay Arora, Business Director from Wazir Advisors, said the report showcases a fundamental shift in the approach of key stakeholders in the Indian textile industry. It is heartening to see that 80 per cent of these stakeholders have already embraced sustainable manufacturing practices, reflecting the industry’s commitment to environmental responsibility. Sustainability has become a critical factor for success in the global textile market, and the report highlights the increasing adoption of sustainable products, focusing on circularity, and alignment with global benchmarks, he said.
Source: The Hindu Business line
The Micro, Small and Medium Enterprises (MSME) department has identified 23 hectare and 63 hectare land for developing textile clusters at Mohammadpura and Sukhpuri in Burhanpur town of Madhya Pradesh. The infrastructure development work at Sukhpuri has not yet started while development work at Mohammadpura is almost 60 per cent done, according to the MSME department. As per reports, over 100 industries have taken up land at the upcoming textile cluster in Nimbola village in Burhanpur out of the total available 127 plots. The Special Purpose Vehicle (SPV) formed to set up the cluster has allotted land to 108 industries in the cluster. The SPV is anticipating an investment of Rs 200-250 crore in the textile cluster. Abhilash Meravi general manager, DIC, Burhanpur said, “Land has been allotted to 108 industries in the Nimbola cluster. The infrastructure development work is under progress in the area with road, drainage and other civil work under construction.” “Industries are likely to soon start the construction work for setting up own facilities in the cluster,” he said. The cluster will be developed in 4 phases where the state government will contribute 10 per cent of the total infrastructure spending or Rs 10 crore whichever is less and the rest of the expenses will be taken care of by the industries. The Nimbola textile cluster is one of the first among the four clusters proposed in Burhanpur for local power looms and textile units. Burhanpur is a hub for looms with nearly 40,000 power loom units operating from homes, small rooms and in unorganised workshops in the city.
Source: KNN India
The Export Import (Exim) Bank India on Monday said the country's merchandise exports are set to fall to USD 111.7 billion for the April-June period amid continuing global volatilities. The country had reported overall merchandise exports at USD 116.7 billion in the year-ago period, as per official data. "India's exports could be shadowed by a continued slowdown in select major trade partners including advanced economies, global financial sector stress, high inflationary pressures leading to tighter global monetary and financial conditions, and continued uncertainty around the Russia-Ukraine conflict," the Exim Bank said. The bank said the non-oil exports are forecast to amount to USD 86.6 billion in the first quarter of the new fiscal year. It said exports have displayed resilience amidst a challenging global economic situation, plagued by supply chain disruptions and geo-politicaltensions, and have consistently remained above USD 100 billion for seven consecutive quarters since Q2 FY22. The city-headquartered policy bank has developed an in-house model to generate an Export Leading Index (ELI) for India to track and forecast the movement in India's exports on a quarterly basis. The ELI gauges the outlook for the country's exports and is essentially developed as a leading indicator to forecast growth in total merchandise and non-oil exports of the country, on a quarterly basis, based on several external and domestic factors that could impact exports of the country, it said.
Source: Economic Times
Attempts should be made to increase investment in fulfilling sustainable development goals (SDGs) and finding solutions to address the debt risks many countries face, Prime Minister Narendra Modi on Monday said addressing a G20 meeting. “Development is a core issue for the Global South,” Modi remarked as he pointed out that the countries of the Global South were severely impacted by the disruptions created due to the global Covid pandemic while geo-political tensions were responsible for food, fuel, and fertilizer crises.Following the Covid pandemic, many countries including India’s neighbours were stressed by high debt and slump in economic growth. At the G20 Development Ministers’ Meeting in Kashi, Modi underlined that multilateral financial institutions should be reformed to expand the eligibility criteria to ensure that finance is accessible to those in need. In India, Modi said, “We have made efforts to improve people’s lives in more than a hundred Aspirational Districts which were pockets of under-development.” Modi underscored that these Aspirational Districts have now emerged as the catalysts of growth in the country as he urged the G20 Development Ministers to study this model of development. “It may be relevant as you work towards accelerating Agenda 2030”, he added. With a massive $2.4 trillion per annum spending needed by developing countries to address various challenges, the G20 Expert Group on strengthening multilateral development banks (MDBs) is looking at ways to substantially enhance MDBs’ lending capacity with higher leverage and at a marginally increased level of risk.On March 28, 2023, G20 India Presidency set up the expert group co-convened by 15th Finance Commission chairman NK Singh and former US Treasury Secretary Lawrence Summers. Singh and Summers will submit their report by early July ahead of the G20 Finance Ministers and Central Bank Governors meeting later in the month in Gandhinagar. Modi said India is willing to share digital governance experience with partner countries and expressed hope that discussions will result in tangible actions to promote data for discourse, development and delivery in developing countries.
Source: Financial Express
The size of the Indian economy has increased by over 87% in US dollar terms in the nine years to 2023, the government said on Monday. “India’s GDP has reached $3.75 trillion in 2023, from around $2 trillion in 2014; moving from 10th largest to 5th largest economy in the world. India is now being called a Bright Spot in the global economy,” finance minister Nirmala Sitharaman’s office said in a tweet.Separately, at an event in Kerala on Monday, chief economic advisor V Anantha Nageswaran said India is set to become the third-largest economy by 2027. India was the 10th largest economy in 2014. “India is becoming consequential for the world economy because of our progress from number 10 position to number five,” Nageswaran said. He said India’s average contribution to world GDP rose from 1.1% in 1998-2007 to 5% in 2010-2019 and is estimated to be 6% in 2021-2028. “India’s contribution will only become better if we continue to deliver on our potential and promise.” On Saturday, Nageswaran had said that both the Reserve Bank of India and the ministry of finance believe 6.5% is the estimated growth for FY24 and the risks to this growth rate are evenly balanced. The International Monetary Fund has estimated India’s GDP growth to be 5.9% in FY24 while rating agencies S&P and Fitch have estimated the GDP to grow at 6%.India’s GDP in real terms grew at 6.1% in the fourth quarter of last fiscal, a pace significantly higher than what most analysts expected. A solid farm sector, buoyant services sector, a moderate pick-up in manufacturing, robust government capex and a favourable base pushed the quarterly growth. More than anything, net exports boosted the headline figure. With this, the National Statistical Office’s provisional estimates of the economic growth in FY23 came in at 7.2%, as against the advance estimates of 7%. The CEA expects the final growth number for FY23 would be higher when numbers are revised. The pace of growth in FY23 was slower as compared to the 9.1% recorded in FY22, but it represented a growth of 10.1% over the pre-pandemic year, FY20.
Source: Financial Express
India and UAE successfully held the 1st Meeting of the Joint Committee (JC) of the India-UAE CEPA. During the JC, both sides, inter-alia, reviewed the bilateral trade under the CEPA, agreed to operationalize the established committees/sub-committees/technical council under the CEPA, agreed on mutual exchange of preferential trade data on quarterly basis for effective monitoring of the CEPA, discussed various matters related to the implementation of the Agreement and agreed on addressing any issue that may potentially act as a hindrance to CEPA implementation or its usage by businesses on both sides, agreed on creation of a new sub-committee on Trade in Services, and also agreed to set-up a UAE-India CEPA Council (UICC) as a B2B collaboration mechanism, with a focus on MSMEs and start-ups, for building greater economic linkages and optimizing CEPA benefits. Both sides also exchanged views on WTO matters. The 13th Ministerial Conference of the WTO (MC13) is scheduled to be held in Abu Dhabi, United Arab Emirates, during the week of 26 February 2024. A high-level delegation from the UAE, comprising senior officials of the Government of the United Arab Emirates (UAE) and representatives from the business community of the UAE, led by H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE, visited India on 11-12 June 2023. The agreed minutes of the 1st Meeting of the Joint Committee of the India-UAE Comprehensive Economic Partnership Agreement were signed between the two sides in the presence of the Ministers today. Earlier, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE called on Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Government of India today in New Delhi. The visit also marked the India leg of the 1st Anniversary of the Implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Both the Ministers addressed a Joint Press Conference on the achievements and the successful conclusion of the 1st meeting of the Joint Committee. Addressing the press conference Shri Goyal said that the two countries had agreed to set a target of USD 100 billion of trade in non-petroleum products by 2030 from the USD 48 billion at present. Both the ministers also participated in a B-2-B event which was organized by the Department of Commerce in partnership with the Confederation of Indian Industry (CII). Addressing the business gathering at the B2B event, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles Shri Piyush Goyal emphasized that this path-breaking Agreement has significantly transformed the India-UAE partnership by providing renewed impetus and momentum to an already, close and strong relationship. The Minister also highlighted that initial gains have already started accruing from the Agreement with bilateral trade between India and the UAE growing at around 16.5% and touching an all-time high of around USD 84.84 billion during FY 2023-23. Shri Goyal said that India’s exports to the UAE also recorded a remarkable growth of 12%, reaching USD 31.6 billion in 2022-2023. He urged businesses from both sides to forge newer ties and build on this momentum. He highlighted other important initiatives that are being discussed between the two sides, including Virtual Trade corridors, potential set-up of offices of the Abu Dhabi Investment Authority in GIFT City, Gujarat, UPI partnership and the potential development of an efficient system for direct Rupee-Dirham trade. H.E. Dr. Thani bin Zeyoudi, Minister of State of Foreign Trade of the UAE affirmed the keenness of the UAE Government and its leadership to further strengthen the India-UAE bilateral relations by engaging in all areas of mutual importance to both the countries. He also reaffirmed the commitment of his Ministry and his Government in working closely with the Indian side in the same spirit of mutual trust, cooperation and collaboration for the growth, prosperity, and welfare of the peoples of the two countries. Delivering the welcome remarks, Commerce Secretary, Shri Sunil Barthwal, stated that the visit of the UAE delegation underscored the importance of the economic ties between the two countries. The B2B event was well attended by representatives from the business communities of India and the UAE, and senior officials from both sides.
Source: PIB
The growing cooperation between India and Africa is poised to witness a boost, leveraging the emerging scenario of Global South collaboration. With a trade target of US$200 billion by 2030, a significant surge from the current US$90 billion level, and a goal to double Indian investments in Africa to $150 billion, the stage is set for a transformative partnership. The 18th edition of the CII-EXIM Bank Conclave on India Africa Growth Partnership, themed ‘Creating Shared Future,’ is slated to take place in New Delhi from June 14-16, 2023. Space cooperation will find its place at the annual convention, with several African countries eyeing expanded space interventions and India emerging as a crucial partner in this domain.This three-day conclave, jointly organized in association with the Ministry of External Affairs and the Ministry of Commerce & Industry, by the Confederation of Indian Industry (CII) and EXIM Bank of India. This three day conclave will serve as a catalyst for propelling this engagement to new heights.The conclave’s inauguration on June 14 by Dr S Jaishankar, Minister of External Affairs, and there will be three Heads of State: Vital Kamerhe Lwa Kanyiginyi, Deputy Prime Minister and Minister of National Economy, Democratic Republic of Congo; Muhammad BS Jallow, Vice President, Republic of The Gambia; and Gen (Retd) Dr CGDN Chiwenga, Vice President, Republic of Zimbabwe. A special plenary session featuring African trade ministers will be addressed by Piyush Goyal, Minister of Commerce & Industry, Food & Public Distribution, Consumer Affairs, and Textiles. The valedictory session will have the esteemed presence of V Muraleedharan, Minister of State, Ministry of External Affairs. With 32 Senior Ministers from Africa traveling to India for this annual convention, the sessions will witness the participation of over 800 international delegates from 45 African countries. Notably, delegates from 22 other countries, including Australia, France, Germany, Great Britain, Italy, Japan, Maldives, Nepal, Netherlands, Singapore, Switzerland, Sweden, Sri Lanka, UAE, and the USA, among others, will also be present. The presence of government bodies, corporates, financial institutions, and social organizations from India adds to the vibrancy of the conclave. Running parallel to the event, an exhibition will showcase products and services from more than 40 exhibitors representing India and Africa. The 18th CII-EXIM Bank India-Africa Conclave on India Africa Growth Partnership unfolds at a critical juncture when the Global South is taking decisive steps to establish its rightful place in the emerging world economic order. This momentum aligns with India’s G20 Presidency, led by Prime Minister Narendra Modi. The realization of the Africa Continental Free Trade Agreement (AfCFTA) goals presents fresh avenues for Indian investments in Africa, with the potential to double cumulative Indian foreign investments in the region to US$ 150 billion in the years to come.
Themes
The conclave’s key themes span a wide range of sectors, including infrastructure development, innovative financing, skill development, agriculture & food processing, critical minerals, water management, healthcare and pharmaceuticals, defense, and manufacturing, among others. The event will also facilitate impactful B2B meetings, providing participants with opportunities for connection and networking.
Source: Financial Express
The world is going through a difficult time. The IMF predicted that the global economic growth rate will fall from 3.4% in 2022 to 2.8% in 2023. Merchandise trade is expected to decline from 2.7% in 2022 to 1.7% in 2023 (WTO). A series of interconnected events, from the Covid-19 pandemic to Russia-Ukraine war, high inflation, geo-political tensions, and disruption of supply-chains have caused this economic downturn. India is among the fastest growing countries in the world. India’s exports of goods and services reached $766 billion in 2022. Merchandise exports were $453 billion, while services exports saw a 30% jump over 2021 to reach $313 billion in 2022. India is among the top investment destinations in Asia. In 2021, India was the seventh largest FDI recipient, with $45 billion in inflows (UNCTAD). In the same year, India captured almost 50% of the total R&D investment in developing Asia.India’s continued high growth and exports is driven by several pathbreaking reforms, starting with GST and PLIs, and measures to reduce logistics costs, such as the PM Gati-Shakti National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). The focus on the logistics sector has helped India to improve its ranking from 44 in 2018 to 38 (out of 139 countries) in 2023 in the World Bank’s Logistics Performance Index 2023. To meet the exports target of $2 trillion by 2030, India has fast-tracked the FTA negotiations with like-minded and key export markets. It signed the comprehensive agreements with Mauritius and the UAE and the Economic Cooperation and Trade Agreement (ECTA) with Australia. It is negotiating comprehensive agreements with the UK, Australia, Canada, and the European Union. These agreements focus on diversifying the goods and services export baskets, attracting investments, and building resilient supply chains. India’s recent Foreign Trade Policy (FTP 2023), with a focus on trade facilitation, is in the right direction to support export growth. While India seems to be doing fairly well, yet many in India and abroad are apprehensive of the growth, worried about employment and job losses and concerned about opening up sectors under trade agreements. The fears have compounded due to global slowdown and its impact on some of our exports, including technology services. Such fear arises primarily because of the lack of data and evidence. Major services exporting countries, unlike India, are now publishing their bilateral services trade data. Aside from developed countries like Australia, the US, and the UK, developing nations like Malaysia also report their data on bilateral trade in services to international organisations like the WTO. While countries like the US report data for around 71 countries, Malaysia is reporting for around 22 partner countries, including India. While India is one of the most attractive investment destinations, there is no data on sector-wise and country-wise FDI inflows. This makes it difficult to understand which types of firms from which countries are investing in what type of sectors. Many countries like Australia publish data on the FTA utilisation to help analyse the impact of the FTA. Using such data, scholars in these countries can do robust data modelling to understand the pre and post impact of the trade agreement. Availability of robust data will help in better data analysis for trade negotiations. For example, scenario analysis can be done to showcase the impacts of liberalisation on GDP, employment, and investment, which will, in turn, help to show evidence-based outcomes of the benefits of the FTA and liberalisation with key export markets. A report by one of the authors, titled Express Delivery Services: Supporting the Journey towards India@2047, found that export data through express or e-commerce is not captured in India’s total trade data—our trade and exports may be under-reported. While the FTP (2023) has identified four new towns of economic excellence in addition to the already existing 39 towns and focuses on making districts the export hubs, it is also important to know how MSMEs in these town and across districts and production centres can be linked to the global value chain and what kind of capacity building programmes and training do they need. Such information can help in targeted policy designs.All stakeholders—government, academicians, and the private sector—can collaborate for better data gathering, collation, and analysis. India needs a state-of-the-art trade data centre, and this can be designed after looking at global best practices in data collection, identifying data gaps, and by using surveys and other tools. This will also help to diversify our production and export baskets, with a focus on inclusive growth, attracting investment and generating employment. There is no doubt that India is doing well in a difficult global scenario. However, unlike many countries, India is yet to showcase its success stories through data. Robust trade and investment data will further confirm India’s high growth performance, build business confidence, and help in policy design.
Source: Financial Express
In 1873, 150 years ago, the iconic blue jeans were born in San Francisco when businessman Levi Strauss patented work trousers with metal rivets. Oneand-a-half centuries later, Levi's has survived not just merely as a brand but as an arbiter of diverse cultural trends. Originally, the jeans were work overalls made for miners during the California gold rush. They were rugged, didn't get soiled easily, and could be worn over regular trousers. From being the apparel of the working class to chic clothing, Levi's became a versatile popular brand. From gold miners, the jeans came to be associated with cowboys, popularised by John Wayne in his Western movies. When Marlon Brando wore them with boots and black leather motorcycle jacket, Levi's became a symbol for rebels. They went on to become the uniform of the counterculture and the Civil Rights movement. They were a hit with soldiers during the Second World War. Hordes of youth were spotted wearing Levi's 501 when the Berlin Wall came down. Miners, cowboys, biker gangs, Hollywood actors, activists, rock stars, protestors, handymen, politicians, professors, angst-ridden youth and the cool crowd, all have worn Levi's 501 to make their respective style statements. Not that Levi Strauss and Co. did not adapt the jeans to the times. They began with a single back pocket, button fly, a cinch at the back, buttons for suspenders and a crotch rivet too, an altogether different species from the current form. But they still retain the Arcuate stitch design on the back pockets, the rivets, and the famous leather patch with the drawing of two horses pulling apart a pair of pants which was added in 1886.
The Levi's crisis A brand with such versatility and popularity was, of course, a business success too. Though Levi's was the original denim brand, the denim revolution created several popular jeans brands that emerged as rivals in time. It also could not compete with the new designer avatars of jeans such as Calvin Klein, Tommy Hilfiger and Gap. In the late 90's, Levi Strauss and Co. was on the decline. Its sales fell drastically, and it had to close factories and stores and lay off nearly half of its staff. The vast heritage behind Levi Strauss and Co. ironically became its main obstacle as it did not know how to reinvent itself. The jeans did adpat to changing times but the company could not make too many changes because heritage was its main selling point. For the next decade, the sales kept dropping and the company lost market share to rivals, until it hired a brand expert from Procter and Gamble with three decades of experience. In 2011, the board hired Chip Bergh as the CEO who went on to turn the company around with the canny insights he had gathered at the retailer.
Bergh gets to know Levi's "As I began doing research to prepare for my first meeting with its board chairman, I was surprised by what I found. I’d guessed that Levi Strauss had revenue of about $10 billion. But in fact its sales had peaked at $7 billion in 1997 and then fallen to $4.1 billion in five years. From 2001 to 2010 they never exceeded $4.5 billion. The more I studied the company’s recent history, the more it looked like The Gang That Couldn’t Shoot Straight," Bergh recalled, writing in the Harvard Business Review a few years ago. Bergh was shocked when he asked employee at a town hall meeting how many of them thought the company was performing well. Three-quarters of the attendees raised a hand. "A lack of urgency, of financial discipline, and of data discipline permeated the culture," Bergh said. He started with changing almost the entire top team that reported to him.
The insight at Bengaluru During his second month in the job, Bergh visited Bangalore and found the tagline for the next advertising campaign as well as the guiding light for his new job. He asked his people in Bengaluru to set up an in-home visit. P&G relied heavily on in-homes which yielded valuable insights from customers. The customer he met with was a 29-year-old professional woman from an upper-middle-class family, who lived with her parents and had studied at Cambridge. She had about 10 pairs of jeans of different brands and she talked about what she liked about each pair. "She had two pairs of Levi’s, and we talked about those last. She pointed to one pair and said, “These are my go-to jeans—the ones I’ll wear day-to-day, like if I’m going to meet a girlfriend.” Then she focused on the second pair. “These are the jeans I wore at university,” she said. “They don’t even fit me anymore, but I can’t bear to part with them because of all the memories.” Then she said something arresting: “You wear other jeans, but you live in Levi’s.” I still get goosebumps when I recall that moment. To me, her words captured the essence of our brand. “Live in Levi’s” became our advertising tagline. That experience is an illustration of how much value can come from listening to consumers," Bergh wrote in HBR.
The turnaround strategy After six months on the job, Bergh and his team rolled out a plan consisting of four key pieces — build profitable core (80% of profits came from men’s jeans and Dockers); expand for more (seize the opportunity in women’s clothing); become a leading omnichannel retailer (grow sales in the company’s own stores and online); and achieve operational excellence (cut costs, drive cash flow, become more data driven and financially disciplined). The new strategy provided funds for investment in the company’s Eureka Innovation Lab. In 2013, it created a revamped women’s denim line. A second big investment was the purchase of naming rights for the San Francisco 49ers’ new stadium—a 20-year, $220 million deal, which was to put the company in the limelight it needed. Burgh wanted the company to act like a 160-year-old start-up. “We’ve got scale, heritage, authenticity, awareness and global reach,” he told Beeketing in an interview, “But if you’re a multi-billion dollar company that’s existed for over 100 years, you wish you had agility, focus, innovation and optimism of a startup. That’s why the future will be better than the past." Burgh expanded the range to women’s clothing instead of just menswear and jeans. He opened up untapped markets such as Russia, India and China. He launched e-commerce with experimental features such as a virtual stylist, an AI-powered chatbot that helps customers find the perfect pair of jeans. He roped in celebrities in innovative ad campaigns such as for the Levi's trucker jacket as well as linked the company to contemporary issues such as conserving water. Burgh got popular by saying one did not need to wash one's jeans for two years. Bergh's multi-pronged strategy bore fruit and the company revenue hit a record $4.9 billion in two decades. In 2019, the company filed documents to list itself on the New York Stock Exchange, seeking to return to public markets after more than three decades. The company fetched a higher price than expected. In November last year, Bergh put his succession plan in motion with the appointment of Michelle Gass to the new position of president, reporting to Bergh. Gass brings direct-to-consumer experience to Levi Strauss and Co., having led the transformation strategy at Kohl’s. Bergh had brought in Gass who had worked with him earlier at P&G.
Levi Strauss and Co. in India When in several countries, especially the company’s US home market, consumers are battening down the hatches and pulling back on spending due to the fear of recession, there’s a high degree of consumer optimism in India, Bergh told ET recently in an interview. Despite inflation, lifestyle and discretionary segments in the country have seen double-digit growth, driven by pent-up demand, pandemic-related savings and continued casualisation at workplaces, a trend that has helped brands such as Levi’s. Levi Strauss and Co., which opened its first door in India three decades ago, now has over 400 stores and competes with relatively newer entrants such as Zara and H&M in a market where youngsters are increasingly embracing western-style clothing. While fast-fashion rivals create affordable, copycat versions of the latest trends or designer wear and make them available to shoppers in double-quick time, Levi’s has a different strategy. “The thing that separates us from Zara and H&M is that we are the opposite of fast fashion — we are slow fashion,” said Bergh. “Just being self-critical, probably we don’t have enough fashion in our line today here in India. But what we have got is a brand that is highly differentiated versus others and so for the people that really want quality denim, they are still going to come to Levi’s." The company is trying to push more non-denim clothing and women’s apparel as it seeks to broaden its share of the consumer’s wardrobe. India is increasingly becoming a talent hub for the retailer globally. For instance, more than a year ago, Levi's named Sanjeev Mohanty, managing director of South Asia-Middle East and Africa for Levi Strauss & Co, based out of India, as its managing director for the US and Canada. Singh was also elevated and given additional roles in corporate strategy and global retail real estate.
Source: Economic Times
The term ‘fast fashion’ was coined in the 90s which referred to the production of a clothing product, from its conception to selling it in stores, within 15 days. This term later defined mass-produced apparel and footwear that are quickly transferred from runways to retail outlets in order to capitalise on the latest trends. However, it led to startling figures on the environmental impact caused by the fashion industry. According to the World Resources Institute, the annual water usage for fabric dyeing is around 5 trillion litres. The treatment and dyeing of textiles contribute to around 20% of all industrial water pollution worldwide, and the production of textiles requires about 8,000 synthetic chemicals, which pose a serious threat to the planet. Fast fashion companies, which produce inexpensive clothing and frequently release new collections, contribute to various challenges in the fashion and textile industry, including issues related to raw materials, child labor, and supply chain. The workers receive a meager income, work prolonged hours in unfavorable safety conditions, and are continually pushed to produce, fostering an environment that promotes worker exploitation. However, there is good news. In response to the rising environmental challenges caused by the fashion industry, people are driving a positive change by choosing environment-friendly and long-lasting textiles which are also known as sustainable fabrics. Historically, India has made use of the most natural and culturally significant fabrics and textiles, making the adoption of sustainable fashion a manner of going back to the roots rather than following a new trend. Sustainable fashion firms prioritize creating a safe workplace and offering fair compensation to their workers and develop solutions to environment-related challenges in a holistic manner. Every input and output matters in the materials used in sustainable textiles. The fabrics, procedures, standard of living of workers, and the products’ lifespan are analysed and quantified carefully. The creation of sustainable textiles relies on materials and resources sourced from renewable or recycled origins. These include organic fabrics, made from plants cultivated with the use of bio-fertilizers and organic manures. Additionally, eco-textiles are produced using environmentally friendly methods. The utilization of recycled and biodegradable materials encompasses both natural and synthetic fibers that have biodegradable properties. Lastly, sustainably processed fabrics and textiles take into account each step of production, from cultivation to finishing processes. This includes minimizing the use of chemicals and reduction of effluents to ensure environmentally conscious practices.
Conscious consumers driving the change The rapid expansion of the eco-friendly clothing market in India serves as a clear indication that sustainable fashion is increasingly becoming a mainstream choice. With growing environmental consciousness, customers now expect increased transparency in the textile sector. They seek to understand the garment’s journey, from raw materials to production, promoting sustainable practices. They are more conscious of how ‘fast fashion’ affects the environment and consequently, their shopping patterns are undergoing a dramatic shift.
Focus on green practices, R&D, and government support Encouraged by the demand and market trends, better manufacturing techniques are being used to create clothes with less environmental impact. As a result, industrial practices are evolving. An illustration of this can be found in sericulture the Mulberry IoT devices, which are designed to promote the growth of healthy produce, secure an uninterrupted supply of leaves for silkworms and save water. Since effective farm-level monitoring is crucial to enhance yield and maintain quality, the implementation of such devices can play a pivotal role in mitigating crop failure. A focus on regenerative agriculture practices, reducing carbon emissions, and ensuring fair returns for all stakeholders across the textile ecosystem are a few of the promising developments in this area. With the Indian government outlawing the use of plastic bags in multiple areas, and conducting campaigns against the disposal of trash in the oceans, the country’s textile sector is following suit and turning to environmentally friendly clothes. The GOI is in the process of formulating a National Textile Policy to provide a comprehensive roadmap for the Indian Textile industry. The PLI scheme launched for the sector aims at encouraging investment, innovation and technological advancement in sustainable textile production. Initiatives such as the Handloom Mark and Geographical Indication (GI) tagging help in promoting traditional and sustainable products. Additionally, the government has implemented several skill development programs to provide training on sustainable practices, modern technologies, and efficient production techniques, contributing to the overall growth and self-reliance of the sector. Adopting slow fashion is our opportunity to change the way fashion is designed, visualised and consumed. It also allows various sections within the fashion space including weavers, artisans, etc. to be fairly recognised and paid for the work they do, and not have to unfairly compete with synthetic machine made products.
Source: Times of India
India is hopeful of an early decision on the Rupee-Dirham trade with the and the two countries have also more than doubled their non-petroleum trade target to $100 billion by 2030 from the earlier anticipated $48 billion. A similar push will be given to petroleum trade too with India aiming to import more crude and export more refined products. Union commerce minister Piyush Goyal said this after the first meeting of India-UAE Comprehensive Economic Partnership Agreement’s (CEPA) joint committee here in Delhi on Monday that he had with UAE’s minister of state for foreign trade Thani bin Ahmed Al Zeyoudi along with a large delegation of government and industry leaders from both sides. “Bilateral trade between India and UAE has seen significant increase n the last 12 months (CEPA was signed just over a year ago). Our earlier target was to touch $100 billion by 2030, which had a substantial petroleum component. (But the way things are going post CEPA) we have mutually agreed to up the target to $100 billion for non-metro by 2030 from the earlier $48 billion. Trade in petroleum (crude and refined) will also be increased,” Goyal said. Several working groups have been set up to further increase trading ties under CEPA by resolving issues that have been raised by businesses on both sides. The “outcome-oriented” push will be on MSME side, startups and women entrepreneurs. On Rupee-Dirham trade, Goyal said: “Both countries have made significant progress on this issue. The central banks are in touch and our finance ministry is very supportive. I (see) good outcome very soon.” UAE’s Thani bin Ahmed Al Zeyoudi said: “Trade ties with India have grown very rapidly (following CEPA). There are several areas where we are looking to provide a further filip to our robust trading ties.” Union commerce minister Piyush Goyal with UAE’s minister of state for foreign trade Thani bin Ahmed Al Zeyoudi in Delhi on Monday.
Source: Times of India
Myanmar Commerce Minister U Aung Naing Oo on Monday expressed hope that a Rupee-Kyat trade arrangement between the two nations is finalised by June-end. Oo said trade volume between the two countries will double once the arrangement being worked out as Myanmar which has been hit by US sanctions is unable to earn sufficient foreign exchange to import goods from its trade partners. "We are suffering from US sanctions since 2021 and it is becoming difficult to settle payment transactions with other countries in dollars", he said at an event organised by EEPC India here. Under the special arrangement, Myanmar will accept Rupee payments for all its exports to India and use that rupee hoard to import from here. To facilitate this, RBI has appointed Punjab National Bank (PNB) to open a special Vostro account for foreign trade with Myanmar. PNB in turn has approached two banks in Myanmar where these accounts will be opened. The minister said "negotiations between PNB and the central bank of Myanmar is going on and is expected to be completed by this month. Once this arrangement becomes operational, trade volume between the two countries will double". Oo said India is the eleventh largest investor in Myanmar with $ 775.11 million worth of investments. He said India also was one of the main trading partners of Myanmar in the previous fiscal year. India had exported USD 820 million worth of goods to its eastern neighbor and imported goods worth USD 540 million. Top exports from Myanmar to India include metal ore, natural rubber, plywood, fish, lentils and garments. Myanmar's major imports from India include pharmaceuticals, petroleum products, chemicals, machinery, coffee and tea. India accounts for five per cent of Myanmar's international trade, he said. Myanmar has already put in place similar trading arrangements with China and Thailand. "We are going for this special arrangement with neighbouring countries to reduce our dependence on dollars,"Oo added. The minister also said that Myanmar Central Bank and the RBI have mutually agreed in principle on a Rupee-Kyat payment system and standard operating procedures (SOP) to support this has been negotiated in lines with the foreign exchange policies of both the countries.
Source: Economic Times
The textile industry in India has long been an essential contributor to the country’s economy, employing millions and functioning as an important export sector. With a strong textile production history and a large pool of qualified workforce, India has the potential to become a global industry leader. However, numerous obstacles must be addressed to achieve the ambitious goal of growing the textile business to $200 billion, which was set by Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, Textiles, Government of India. With a rich history of textile production and a wealth of skilled artisans, India possesses the necessary foundations to propel its textile industry to unprecedented heights. India’s textile industry has a centuries-old legacy rooted in exquisite craftsmanship and traditional techniques. This heritage provides a unique advantage, enabling India to offer a diverse range of textile products with unparalleled quality and artistry. By leveraging this heritage and preserving traditional techniques while incorporating modern design sensibilities, India can capture the attention of global markets seeking authentic and culturally rich textiles.One of India’s greatest strengths lies in its abundance of skilled artisans with generations of knowledge and expertise. These artisans can create intricate weaves, delicate embroideries, and handcrafted textiles that are unparalleled in beauty and craftsmanship. By providing adequate training, upskilling initiatives, and access to modern tools and technology, India can empower these artisans to create contemporary designs that resonate with international buyers, thereby driving growth and demand. The Indian government acknowledges the significance of the textile sector and has enforced many programmes to help it flourish. Endeavours such as the Make in India campaign, the National Textile Policy, and the Technology Upgradation Fund Scheme (TUFS) have facilitated investments, provided financial help, and created an enabling environment for textile makers. In addition, further reforms aimed at reducing bureaucratic hurdles, streamlining regulations, and improving ease of business will attract domestic and foreign investors, fostering industry growth. To achieve the $200 billion target, India must expand its presence in the global market. By forging strategic partnerships, participating in international trade fairs and exhibitions, and effectively leveraging e-commerce platforms, Indian textile manufacturers can showcase their products to a broader audience. In addition, collaborations with international fashion brands and designers can help penetrate high-end markets, allowing Indian textiles to gain recognition and value globally. Sustainability is a growing concern in the global textile industry. By promoting organic resources and adopting eco-friendly practices, India may position itself as a pioneer in sustainable textile manufacture. Emphasizing responsible sourcing, reducing water consumption, and implementing cleaner production techniques will meet global sustainability standards and attract conscious consumers who value ethically produced textiles. Technology integration is critical for India’s textile industry to leapfrog into the future. Automation, digitalization, and the Internet of Things (IoT) can significantly enhance efficiency, productivity, and quality control. Investments in state-of-the-art machinery, digitized supply chain management, and advanced textile processing techniques will enable India to compete on a global basis and fulfil the changing expectations of the sector. India’s textile industry possesses immense potential to achieve the target of $200 billion, fueling economic growth, generating employment opportunities, and showcasing the nation’s cultural heritage to the world. By harnessing its rich textile heritage, empowering skilled artisans, implementing supportive policies, strengthening market access, adopting sustainable practices, and embracing technology, India can overcome the challenges and lead the global textile market. The collective efforts of the government, industry stakeholders, and artisans will pave the way for a thriving and prosperous Indian textile industry, one that continues to be a symbol of excellence, craftsmanship, and innovation.
Source: Financial Express
INTERNATIONAL
SMART is the leading industry voice promoting high standards and best practices for reuse and recycling of textiles and related secondary materials. Our members reduce solid waste by collecting, reclaiming, and “closing the loop” by processing, reusing, converting, and distributing these recyclables. SMART is continuously working to educate the public and local government officials about the importance of increasing clothing and textile reuse and recycling. The Secondary Materials and Recycled Textiles Association (SMART) 2023 Annual Convention in Dubai drew record-breaking attendance of more nearly 200 industry leaders from14 countries including the UAE, India, and Pakistan. SMART Executive Director Susan DeCourcey said, “the popularity of the event shows textile industry leaders are serious about innovation advancements that will impact the environment and the economy globally.”
Quick facts: According to Allied Marketing Research, the global textile recycling market is anticipated to generate nearly $9.4 billion by 2027. The US EPA reports that current clothing and textiles recycling has a great impact on reducing greenhouse gases, The latest report estimates the generation of textiles in 2018 was 17 million tons. The wiping rag industry has grown substantially since the pandemic which has also expanded the demand for textile materials needed in the cleaning and health industries. Industrial wiping cloths made from recycled textiles also have a significantly smaller carbon footprint than newly manufactured wiping clothes or laundered rags.
International trade is a critical component of the textile industry’s success. More than 60% of recovered textile waste is sent abroad to more than 100 countries, equating to more than 1.4 billion pounds of used clothing – creating hundreds of thousands of jobs worldwide. It is crucial our membership work together to help the industry grow. SMART’s President Steve Rees from Wipeco Industries explained, “Our members commitment to supplying multiple market segments in countless geographical areas, speaks to the intrinsic global value that reusing and recycling textiles has. As our trade association continues to grow, we are connecting members to new markets and working to reduce the global textile waste crisis.” ADVOCACY: SMART is continuously working to educate the public and local government officials about the importance of increasing clothing and textile reuse and recycling. The benefit of these educational outreach efforts is gaining momentum throughout the nation, including programs in New York, Massachusetts, Connecticut, Rhode Island, and most recently, California. Established in 1932, SMART is a recycling-based, international, nonprofit trade association comprised of for profit used clothing, wiping material and fiber industry companies. SMART members use and convert recycled and secondary materials from used clothing, commercial laundries, and nonwoven, off spec material, new mill ends and paper from around the world. SMART companies are committed to the “green” way of life. SMART Leadership and its members are working to bring textile recycling into a circular economy. SMART members continually trumpet their message to the donating and recycling public by encouraging them to “Donate, Recycle, Don’t Throw Away.”
Source: Textile World
This is an ambitious research & development project, built step by step, which demonstrates the feasibility of polyester “fibre to fibre” recycling. It started with Sportstex, a company specialized in the production of sportswear, and RadiciGroup, a Group with many years of experience in circular economy, wishing to collaborate for the recovery of polyester textile waste such as uniforms for football, volleyball and other sports. The involvement of Pure Loop, a company specialized in recovery machinery, was immediate, with the aim of identifying the best available technology to obtain a new textile fibre. To reach this goal, the R&D teams of the three companies carried out various tests to achieve a recycled textile product with high technical features. An initial result was obtained using a mixed recovery technique, “dosing” variable percentages of granules from recycled bottles (a more than consolidated practice at RadiciGroup) together with polyester granules from recycled fabrics. This experience allowed to fine-tune the processes gradually and to achieve, at the end, a yarn 100% derived from the recovery of textile waste. Once scaled-up, this virtuous circularity system will make it possible to easily produce recycled polyester garments that, at the end of their life, can be recovered again. Shimano was the first company to embrace this sustainability project branding the first jersey coming from this supply chain collaboration. The research project has highlighted a new recycling way, which allows obtaining quality polyester fibres starting, for example, from pre-owned clothes, for a textile “Closed Loop”. Moreover, Erdotex, a company specialized in the sorting of used garments, will support the project. Thanks to specific “sorting” procedures, Erdotex will make it possible to feed this innovative recycling process, with the ambition of developing a real industrial process.
Source: The recycling-magazine.com
During her tour, Dr Agama, a key advisor on textile and apparel trade policy matters, alongside USTR textile trade officials, explored seven prominent textile manufacturers, including Glen Raven, Barnet, Standard Textile, Parkdale Mills, Beverly Knits, Gildan, and Unifi. The visit signified the importance of trade policies that enhance the competitiveness of the thriving domestic supply chain, which plays a vital role in the US economy and workforce. “For USTR, this local engagement and conversations underscore our need to create trade policies that put workers first and promote inclusive economic growth,” Dr Agama said. “The spinning, knitting, and weaving operations of the textile industry are at the centre of many communities across the Carolinas. This was another opportunity to hear first-hand how we can create jobs that allow workers, businesses, and communities to thrive.” The culmination of her visit was marked by an engaging industry roundtable discussion hosted by Unifi in Greensboro, N.C. where esteemed US textile executives from various sectors, such as fibre, yarn, fabric, and finished product textile and apparel industries shed light on crucial trade policies, including: The preservation of the yarn forward rule of origin in trade agreements like the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) Advancement of the Miscellaneous Tariff Bill (MTB) to support domestic manufacturers The need to address trade law loopholes, particularly the de minimis loophole Addressing larger systematic trade issues particularly concerns regarding forced labour, with China Upholding buy American and Berry Amendment government procurement policies President and CEO of NCTO Kim Glas said: “We look forward to working closely with Dr Agama, the USTR textile team, and USTR ambassador Katherine Tai to advance policies that provide incentives for onshoring and nearshoring production and bolstering the industry’s competitiveness while enforcing policies that address illegal trade practices that undermine this industry.” She added: “The three-day visit by Dr Agama and the USTR textile team included facility tours of several NCTO member companies, all of which have made major investments in state-of-the-art manufacturing facilities that are part of a broader domestic industry supply chain that produced $65.8bn in output in 2022 and employed 538,000 workers.”
Source: The Just-style.com
The European Commission is expected to publish an update of its sustainable finance taxonomy on Tuesday (13 June), setting the stage for a showdown with green activists over biodiversity offsetting projects meant to compensate for the environmental damage caused by human activity. Following a public consultation in April, the EU executive is expected to propose new technical screening criteria for the taxonomy’s four remaining objectives – water, circular economy, pollution prevention, and biodiversity. The EU’s sustainable finance taxonomy classifies economic activities along a set of six green objectives, with the principle that they should make a “substantial contribution” to at least one and harms none of them. A first set of criteria related to energy and climate change mitigation technologies led to a high-profile clash with France and Germany over the inclusion of nuclear energy and gas, with Brussels ultimately agreeing to include both as “transitional activities” provided they meet strict criteria. Climate think-tank E3G praised the Commission’s proposed criteria on disaster risk reduction, saying “nature-based solutions for flood and drought risk prevention” as well as new adaptation criteria for global heating “are expected to be particularly good”. However, it also highlighted missing criteria in sectors like agriculture, fishing, chemicals and textiles as reasons for concern, saying those are “high-impact and high-risk activities” that should follow more ambitious criteria than just business-as-usual, E3G said. Meanwhile, circular economy criteria for sectors like buildings or plastic manufacturing are seen as too weak to “be considered as contributing significantly to the climate and environmental objectives” of the European Union, E3G added.
Biodiversity offsets But the biggest worry for environmentalists is the inclusion of offsetting schemes in the economic activities related to biodiversity protection and nature restoration. Biodiversity offsets are nature conservation actions designed to compensate for the unavoidable impact on biodiversity caused by projects, according to the International Union for Conservation of Nature (IUCN). Typical projects involve protecting threatened forests or restoring wetlands, to achieve No Net Loss (NNL) and preferably a Net Gain (NG) of biodiversity, IUCN says. “By definition, offsetting is a zero-sum game, so it can’t represent a substantial contribution required to enter the taxonomy,” says Sébastien Godinot, an economist at the WWF’s European Policy Office who used to sit on the Commission’s taxonomy expert group. Moreover, Godinot says introducing biodiversity offsetting in the taxonomy would be “inconsistent” when carbon offsets were not included in previous rounds. “This is an essential point for us,” Godinot told EURACTIV, adding: “I hope that the Commission will be sensitive to our arguments”. The NGO’s concerns are spelt out in a document submitted by civil society groups to the European Commission as part of the public consultation process. Offsetting, by definition, only compensates for environmental damage made elsewhere “and thus cannot represent a substantial contribution” to the EU’s environmental objectives, the NGOs argue in the document. Consequently, “the Commission should exclude biodiversity offsets” from the EU’s green finance taxonomy, they argue, saying the proposed biodiversity offset rules are “not science-based”. Two years ago, NGOs suspended their participation in a European Commission expert consultation group on sustainable finance in protest against what they saw as weak and “unscientific” criteria for bioenergy and forestry in the EU’s green finance taxonomy. Campaigners also sued the European Commission over including gas and nuclear in the taxonomy’s list of climate change mitigation technologies.
Source: The euractiv.com
This month, three shirts, two dresses, and a pair of shorts arrived at my door. They’re mine, but only for a month. After that, I’ll pack them in a reusable tote bag and send them to a warehouse in Pennsylvania, where they’ll be cleaned and shipped to their next (temporary) owner. Along with more than 150,000 other people—most of them, like me, women between the ages of 25 and 35—I subscribe to Nuuly, a rental service operated by URBN, the parent company of brands including Anthropologie, Free People, and Urban Outfitters. For just shy of $100 a month, I get a regular influx of new clothing—and a chance to clear my conscience. Depending on which estimate you read, the fashion industry is responsible for anywhere from 4% to 10% of global greenhouse-gas emissions. The process of growing, harvesting, and processing raw materials; making those materials into textiles that become clothing; and transporting garments to stores around the world is incredibly water-, chemical-, and energy-intensive. And after all that, most clothing sold in the U.S. turns into waste, worn fewer than 50 times before ending up either incinerated or in a landfill. Services like Nuuly, which launched in 2019, aim to disrupt at least the latter part of that cycle by keeping clothes in circulation longer. In addition to its core business of renting clothes, Nuuly repairs garments that have seen better days—more than 250,000 in 2022—operates a resale platform called Nuuly Thrift, and upcycles some old clothes into new garments. The combined result, says Nuuly president Dave Hayne, is that clothes live “the longest life possible.” Increasingly, other fashion labels are adopting similar “circular” initiatives, so named because they keep materials in repeated use. Brands from Lululemon to Vince, Express to J.Crew, H&M to Juicy Couture have in recent years launched their own resale, rental, or recycling services, joining multi-brand resale and rental giants like Poshmark, the RealReal, and Rent the Runway. These business models aren’t new in concept—just look to thrift shops and tuxedo rentals for proof—but they are being embraced by traditional fashion labels with a new intensity, often branded as ways to help customers not only look good, but also do good for the planet. The business imperative is clear. Circular fashion could grow into a $700 billion industry by 2030, according to one estimate from the Ellen MacArthur Foundation (EMF), a nonprofit that promotes a circular economy. Survey after survey suggests that shoppers care about sustainability and consider a product’s environmental impact when deciding what to buy. So it behooves clothing brands to clean up their acts—or at least their narratives. But there’s bad news for consumers who, like me, have turned to these business models in hopes of becoming more ethical shoppers. At least right now, the PR benefits of these campaigns seem to outpace their environmental benefits. Even EMF concluded in a 2021 report that, although they hold great promise and may make a bigger impact in the future, programs like clothing rental, recycling, and resale do not always benefit the environment in their current forms. “If we want to create a thriving, nature-positive fashion industry, then we need a radical transformation of the way products are designed and made,” says Jules Lennon, who runs EMF’s fashion-related projects. Right now, she says, most circular programs are small add-ons for fashion labels, rather than substantive efforts to change an industry with consumption and waste built into its foundations. “If you leave a bath running and it starts to overflow, you could grab some towels and try and mop up the water, but that doesn’t solve the problem,” Lennon says. “The only real solution is to turn off the tap.” A 2021 paper published in Environmental Research Letters painted a fairly bleak picture of circular fashion. It compared a baseline shopping scenario— buying a pair of jeans, wearing them for a while, and eventually tossing them— with alternative options like renting, reselling, or recycling the jeans. The paper found that reselling was better than baseline—but cautioned that the benefits would be limited if buyers were choosing secondhand clothes in addition to, not instead of, new outfits. Recycling was only modestly better, mostly because recycling is itself energy intensive. And rental, the authors found, was actually worse for the environment than the standard scenario, largely because of the transportation involved in sending shared pants back and forth. Jarkko Levänen, co-author of the study, says it’s not “completely fair” to use his research to argue against any specific companies, since their practices might differ from those laid out in the paper’s theoretical models. It’s the larger point of the research, he says, that’s more important: “not all activities or business models that are built on principles of sharing economy or circular economy are automatically sustainable.” Indeed, there are drawbacks to all of the alternative retail models currently in use, even if there are also good aspects. Rental keeps clothes in use longer, which is particularly beneficial for items, like formalwear, that are usually worn only a handful of times. But it can also be hard on the environment, largely because many rental platforms operate by shipping clothes back and forth. Plus, whereas the average person probably doesn’t wash their jeans or jacket after every use, shared garments are typically cleaned after each rental. Traditional laundry is a drain on water and energy, while chemicals used in dry cleaning can be hazardous to both people and the planet. Textile-recycling programs sound similarly promising: old clothes become new clothes. But in reality, only around 1% of recycled clothes are actually remade into apparel, research suggests. Most are either burned, sent to landfill, or “downcycled” into materials of lower utility, like insulation. That’s largely because current recycling methods aren’t able to process different materials at the same time, says Denise Green, an associate professor of fiber science and apparel design at Cornell University. When consumers drop off bags of old clothes for recycling, they need to be sorted by type of fabric. That’s a daunting task, especially since many modern garments are blends of multiple materials. “Can you find denim pants that don’t have a little bit of spandex or elastane that has been spun into the fiber?” Green asks. “That makes it really challenging to recycle the cotton from denim.” (There’s a growing movement to make clothes from materials that are easier to recycle or eco-friendlier in the first place—dye produced from food waste is one exciting area, Green says—but there’s a long way to go before they’re adopted at scale.) Resale is perhaps the most straightforward option for brands interested in circularity. There’s little downside to selling a preowned shirt instead of a new one, right? Maybe so—but most brands aren’t selling secondhand merchandise instead of new goods, but rather in addition to them. That’s where things get messy. Most fashion houses’ bread and butter is still making and selling new clothes, year after year and season after season. Globally, billions upon billions of new garments are churned out each year. Even as resale and rental businesses grow, they’re barely making a dent in that staggering amount of new production, says Ken Pucker, a lecturer at the Fletcher School at Tufts University and former chief operating officer at Timberland. “At the same time that claims of ‘sustainability’ and ‘green’ and ‘eco’ and ‘organic’ have gone up exponentially, so too has the environmental damage associated with the industry,” Pucker says. The big problem, Lennon says, is that most brands are trying to fit sustainability initiatives into their existing businesses, rather than making changes from the ground up. For example, companies often incentivize customers to bring in old clothes for resale or recycling by offering discounts on new purchases, which keeps them beholden to a business model that relies on newness. Things aren’t so different in rental. Hayne says Nuuly’s goal isn’t to drive down production of new clothes across URBN’s brands, but rather to be a “growth engine” for the parent company. Nuuly earned URBN $130 million in revenue last year, and subscriber numbers increased almost 150% from the end of fiscal year 2021 to 2022. Nuuly customers do, however, tend to report that they buy less new clothing overall after joining the platform, says Nuuly’s executive director of marketing, Kim Gallagher. And Nuuly is committed to keeping its clothes in circulation for a long time. The platform is actively renting 19,000 of the garments it launched with in 2019, in large part thanks to its repair program. Many mass-market brands, by contrast, churn out garments that are either lowquality, and thus fall apart, or that are so trendy that they quickly look outdated, sending customers back to the store for the latest thing. This style of production also limits the potential of rental and resale, Lennon notes, because flimsier garments aren’t built to last through multiple cycles of ownership. A “combination of physical durability, emotional durability, and designing to be remade and recycled is really critical to develop circular business models,” Lennon says. By and large, that’s not happening across the industry. Some brands, however, are trying. One is outdoor-gear maker Patagonia, which has long offered repairs on worn-out or damaged garments, usually for free, to discourage customers from buying anything new. It’s done the same with its marketing. In one infamous ad, a photo of a Patagonia fleece was accompanied by the words, “Don’t buy this jacket.” Patagonia executives also made headlines in 2021 for publicly swearing off the word “sustainable,” acknowledging that— as a company that continues to make new stuff—it is part of the problem. There’s probably some reverse psychology at play here: by owning its shortcomings, Patagonia boosts its reputation and becomes a brand people want to support. Aileen Ottenweller, the company’s head of brand and business impact, acknowledges that buzzy campaigns do sometimes lead to spikes in sales—but she also maintains there’s a genuine recognition within Patagonia that “everything we make has a footprint [and] we are in an environment where we cannot sustain the amount of things being made.” Patagonia is committed to making resale a larger part of its overall business over time, she says. Reformation, a trendy clothing brand known for its vintage and upcycled clothing, is heading in a similar direction, says Kathleen Talbot, the company’s chief sustainability officer. As of 2022, resale, vintage, and rental made up 16% of Reformation’s total business volume and the brand has committed to growing those channels in proportion with its overall business. It has also pledged to make all of its clothes recyclable by 2030 and phase out almost all virgin materials. “If we, in the industry, are equating a resale program with sustainability [without going further] that’s frankly a mistake,” Talbot says. “It’s really missing some of these bigger systemic challenges and opportunities.” Circularity initiatives like rental, resale, and recycling are better than nothing, even if they’re not perfect. At the very least, they make people think about how unsustainable fashion has been up to this point and highlight other ways of doing business, says Cornell’s Green. But there’s still a long way to go. As Pucker sees it, real progress requires policy solutions like the Fashion Act, which would require major brands doing business in New York to map their supply chains, look for places to minimize environmental damage therein, and adhere to science-backed sustainability targets, with the threat of significant fines for those that don’t comply. (The bill was first introduced to the New York State Senate during the 2021-2022 legislative session, but faced some opposition; it was reintroduced earlier this year but has not yet gone up for a vote.) The Federal Trade Commission is also overhauling its standards for how brands can use sustainability claims in their marketing. In the meantime, consumers are often left to make their best guesses about how an item they’re buying, renting, or thrifting actually affects the environment—an overwhelming and unfair proposition for shoppers, Pucker says, since the onus should be on brands to do things differently. But there is another choice, says Levänen, who co-authored the 2021 study on sustainability of circular fashion. Shoppers could simply stop shopping. “The best option is not to buy or sell anything but to use what you have in your closet,” he says. It’s not a pitch fashion labels are likely to find appealing. But it’s the truth that’s been there all along, and one we can no longer afford to ignore.
Source: The time.com
