11 July 2023, Mumbai

Levi Strauss lowers profit forecast, and faces sales decline and higher costs. Q2 net revenues drop 9%, the largest decline since Q1 2021.

To boost sales, Levi's plans price reductions on select wholesale products. Consumers reduce discretionary spending due to rising living costs.

Projections

2023 profit forecast revised to $1.10-$1.20 per share, down from $1.30-$1.40. Adjusted gross margin expected to contract by 90 basis points.

Inventory backlog creates supply chain challenges. Direct-to-consumer revenue was up 13% in Q2, while the wholesale channel sees a 22% decline.

Prediction

Michael Ashley Schulman predicts a continuing decline in wholesale revenues, necessitating promotions, and price cuts, impacting margins and revenue growth. Levi Strauss reports a Q2 net loss of $1.6 million, compared to $49.7 million net income last year.

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21 June  2023, Mumbai

The OTEXA has released data on United States apparel imports for January-April 2023, revealing a year-on-year decline.

USA's overall apparel imports from the world decreased by 22.15%, from US$ 32.38 billion in January-April 2022 to US$ 25.21 billion in January-April 2023. In terms of volume, imports slowed down by 31.09%, equivalent to 7.59 billion Square Meter Equivalent (SME).

Overall Imports Decrease

The top sourcing countries for apparel imports, including China, Vietnam, Bangladesh, Indonesia, and India, experienced significant declines in both value and volume, although Bangladesh had a relatively smaller decline compared to others.

During this period, USA's imports from Bangladesh dropped by 17.88% in dollar value and 30.49% in quantity, while overall imports from the world saw a decline of 22.15% in dollar value and 31.09% in quantity (SME).

Top Sourcing Countries Witness Substantial Declines

USA's imports from China, the largest source, declined by 32.45% in dollar terms and 34.74% in quantity, while imports from Vietnam, the second largest source, decreased by 27.33% in dollar value and 33.67% in quantity.

Negative Growth Observed

Negative growth was also observed in other top-sourcing countries, including Indonesia (25.57%), India (16.59%), Mexico (6.92%), Cambodia (34.53%), and Pakistan (29.73%).

Reflecting Industry's Focus on Higher-Value Segments

The unit price per SME (Square Meter Equivalent) increased by 12.98% for USA's overall imports from the world in January-April 2023. Import from Bangladesh recorded the highest increase at 18.14%.

Higher Value-Added Capabilities Drive Price Increase

This reflects the industry's shift towards higher-value segments of the market, although it also indicates rising raw material and production costs. Investments in non-cotton items and higher value-added capabilities are driving this increase.

To explore untapped opportunities in the US market, further efforts are needed, considering the industry's focus on greener, cleaner, and responsible manufacturing, as well as technology and higher value capabilities.

CREDITS: BGMEA press release

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07 July  2023, Mumbai

Based on EUROSTAT data, the EU's apparel imports from the world have dropped by 7.62% during January-April 2023 compared to the same period in 2022, totaling US$29.83 billion.

EU's apparel imports from the world decreased

Quantity-wise, the EU's clothing imports have experienced a significant downturn of 15.45%.

Winners

Among the top ten sourcing countries for EU apparel, Vietnam and India have exhibited positive growth, while imports from other countries have declined considerably.

Losers

Regarding EU apparel imports from Bangladesh, there has been a 6.25% decline in dollar value, totaling US$7.06 billion in January-April 2023 compared to US$7.53 billion during the corresponding period in 2022. In terms of quantity, imports from Bangladesh have also decreased by 12.48% during this period.

EU's imports from China have dipped by 17.07% in dollar value and 21.05% in quantity. Similarly, during January-April 2023, the EU's imports from Turkey, the third-largest apparel source, have declined by 13.68% in value and 24.66% in quantity.

On the other hand, the EU's imports from India and Vietnam have experienced slight growth of 0.45% and 3.41%, respectively, in value terms. However, in terms of quantity, imports from both countries have declined by 8.17% and 7.26%, respectively.

Datapoints

Simultaneously, the EU's imports from other top sourcing countries such as Cambodia, Pakistan, Morocco, Sri Lanka, and Indonesia have decreased by 5.59%, 7.52%, 16.61%, 17.16%, and 7.99%, respectively, in value terms.

Devil lies in details

Analyzing the unit price (USD value/kg), the EU's cumulative unit price of imports from Bangladesh has increased by 7.12% (from US$16.98 to US$18.19).

This rise reflects higher raw material and production costs, indicating progress towards the higher price segment. Average unit prices of imports from other countries have also risen during the mentioned period.

CREDITS: BGMEA Press Release.

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08 June  2023, Mumbai

Strong Year-Over-Year Growth; According to official statistics, Bangladesh's Ready-Made Garments (RMG) export for the period of July-May in the fiscal year 2022-23 reached an impressive US$42.63 billion, marking a 10.67% year-over-year growth from US$38.52 billion in the same period of FY 2021-22.

Knitwear and Woven Garments Lead the Way

A breakdown by category reveals that knitwear exports amounted to US$23.27 billion, showing a 10.92% growth, while woven garments accounted for US$19.35 billion, indicating a 10.36% increase.

In May 2023 alone, the country's RMG export recorded a significant 28.33% year-over-year growth, reaching US$4.05 billion compared to US$3.15 billion in May 2022.

Impressive Growth Rates

This growth is particularly noteworthy considering the challenges faced by the industry, such as factory closures during the Eid-ul-Fitre period and reduced orders due to a slowdown in retail sales and supply chain disruptions.

Exploring Non-Traditional Markets Crucial

Amidst these hurdles, exploring non-traditional markets becomes crucial for sustained progress as economic turbulence persists in major markets.

CREDITS: BGMEA Press Release.

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05 July 2023, Mumbai

Apparel Group, a renowned global fashion and lifestyle retail conglomerate, is driving the rapid expansion of its acclaimed brand, Skechers, throughout the GCC region.

This strategic move exemplifies the strong growth prospects of the Middle East retail sector and underscores the Group's dedication to expanding its footprint in this dynamic market.

Skechers, a leading global brand in lifestyle and performance footwear, is poised to significantly strengthen its presence in the region. Through the introduction of multiple new stores, it aims to bring its stylish and versatile range of footwear and accessories to an even wider audience.

Mr. Neeraj Teckchandani, CEO of Apparel Group, emphasized the strategic vision behind the expansion, stating, "By strategically amplifying Skechers' presence in the GCC, we are committed to enhancing customer experiences. We are investing in key markets that offer robust growth opportunities.

This aggressive expansion reflects our confidence in the brand, our innovative product range, and the resilience of the GCC's retail sector."

The series of store launches began with the inauguration of a spacious concept store spanning 2588 sq. ft. at Al Khiran, Kuwait on May 30, 2023. This store offers a comprehensive range of Skechers' products, including footwear, apparel, and accessories.

Subsequently, Skechers unveiled its store at Najran Park Mall in Najran, Saudi Arabia on June 8, 2023, providing an exclusive selection of footwear and accessories.

The strategic expansion of Skechers extends to Bahrain and Oman as well. A new store is scheduled to open at Enma Mall, Bahrain in June 2023, offering an exclusive range of Skechers' highly sought-after footwear and accessories. Additionally, an opening is planned at Salalah Grand Mall, Oman in June 2023, where customers can anticipate a curated selection of Skechers footwear and accessories.

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16 June 2023, Mumbai

ALDO, the premier global fashion brand of Apparel Group, has once again joined forces with Project Maji in their shared mission to provide sustainable access to clean drinking water for marginalized communities in Ghana.

Bring Clean Water and Empowerment

By adding a small contribution of AED 1 to customers' bills, ALDO encourages support for this transformative cause.

The funds directly contribute to the establishment of solar-powered water kiosks, which not only provide reliable access to clean water but also foster women's entrepreneurship by transforming these points into community hubs.

Commitment to corporate social responsibility

Since 2017, ALDO has funded three solar-powered water kiosks, benefitting over 4,900 people with 7 million liters of clean water daily. The selection process for a fourth kiosk is underway, demonstrating ALDO and Project Maji's unwavering commitment to improving living conditions. The initiative aims to provide clean drinking water to 1 million people by 2025.

Strengthens through collaboration

Apparel Group's CEO, Mr. Neeraj Teckchandani, highlights the significance of this sustainability initiative and its alignment with corporate values. Through events like in-store discussions, ALDO engages interested individuals, sharing insights about the project and Project Maji's proposed solution.

Create community hubs

This initiative not only ensures a clean water supply but also empowers women economically, as they no longer need to spend long hours collecting water. ALDO's dedication to corporate social responsibility has enhanced its reputation and garnered recognition, including the prestigious Images Retail Middle East Award in 2022 for "The Most Admired Brand Campaign of the Year."

Apparel Group, together with ALDO and partners like Project Maji, reaffirms its commitment to sustainable practices, aiming for a better and more inclusive future.

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06 June  2023, Mumbai

Dates: 22-23-24 June 2023

Organiser:Worldex India

Venue: Halls 2 & 4, ICCB, Dhaka (Bangladesh)

Number of Exhibitors: 125+

The Cotton Textiles Export Promotion Council (TEXPROCIL) is organizing the participation of 24 member exporters.

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15 June 2023, Mumbai

CleverTap, the all-in-one engagement platform, has fortified its compliance in the EU region through the establishment of data centers hosted on Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc.

This strategic move aims to enhance the safeguarding of personal data belonging to EU residents and citizens.

Pravin Laghaate, Vice President of Europe at CleverTap, emphasized the company's dedication to safety and customer satisfaction. The local deployment of their platform within the EU will not only improve the CleverTap experience for European clients but also ensure data safety and compliance.

CleverTap is a comprehensive customer engagement platform that empowers brands to personalize and optimize consumer touchpoints. The platform, powered by TesseractDB(TM), offers audience analytics, deep segmentation, multi-channel engagement, product recommendations, and automation.

With a trusted clientele including notable brands like Electronic Arts, TED, and Tesco, CleverTap is backed by prominent investors and headquartered in Mountain View, California.

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02 June  2023, Mumbai

The Bangladesh ready-made garment industry has overcome numerous challenges and remained resilient over the years. BGMEA, with its proactive approach, has played a key role in facilitating trade and business in the country.

What all you need to know

The support from the government has been instrumental in bringing the sector to its current stage.

With a vision for 2030, the industry aims to achieve a strategic target of USD 100 billion in exports sustainably. To realize this vision, a reevaluation of business processes and a shift beyond traditional norms are essential.

BGMEA: Facilitating Trade and Business

FOC Advantage; Against this backdrop, there was a pressing need for an extended threshold for importing raw materials under a free-of-cost (FOC) basis. BGMEA presented a compelling argument to government agencies, including the NBR, advocating for this change.

As a result, the NBR issued a circular on January 4, 2023 (Circular Number: 08.01.0000.56.05.003.18/11), allowing factories to import raw materials for 6 months instead of the previous 4 months on a FOC basis.

This amendment aligns with the Import Policy for 2021-24, granting 100% export-oriented factories the opportunity to import raw materials on a FOC basis for 6 months.

Commercial Cost Reduction and Supply Chain Flexibility

Previously, the practices of the National Board of Revenue did not align with the Import Policy, causing exporters to miss out on this extended facility. Now, with the issuance of the S.R.O. by the NBR, the implementation of the Import Policy 2021-24 will proceed smoothly.

Given the heavy reliance of the ready-made garment industry on imported raw materials, this policy change will significantly increase trade capacity. Manufacturers will be able to import a greater quantity of raw materials, relieving the pressure on credit limits from banks.

This will lead to reduced commercial costs and enhanced flexibility in operations and supply chain management.

Additionally, some buyers prefer the FOC system as it allows them to procure raw materials at favorable prices from their own suppliers, which was hindered by previous policy settings.

The extended limit of import under FOC will provide manufacturers with the flexibility to import more raw materials, enabling them to pursue their desired growth trajectory.

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