The global fashion business journal
May 31, 20231:14pm
Rising costs and changing from ship to plane to avoid port collapse have led the industry to expect three more months of falling margins. Adidas estimates a € 500 million impact in the second half of the year.
The employees of the manufacturing hubs in Asia are earning by 25% less than a year ago and many of them had to get into debt to survive.
Organic cotton has become a synonym for sustainability, but several scandals with fake certifications in India and forced labor in China question this raw material.
Average rents along Manhattan’s 16 retail corriders have being declining for eleven consecutive quarters. In the UK, retail store vacancies have reached its six-year high.
When consumers work from home, they reallocate spend similarly to consumers in retirement, and apparel is the category that experiences the deepest decline.
The British Parliament already alerted a year ago about working conditions in the city, which became the second richest in Europe thanks to its textile industry.
Fashion groups that depend on these two markets follow closely the evolution of the pandemic and the business structure in both countries and are already beginning to think of alternatives.
The IMF expects a “partial” recovery in 2021. The cumulative loss to global GDP over 2020 and 2021 could be around 9 trillion dollars.
Consumers have cautiously begun to return to stores, and security measures such as temperature controls and use of face masks are imposed in shopping malls.
In Italy or Spain, two of the most affected countries, the decrease in sales could reach up to 40%, according to Boston Consulting Group data.
Before the coronavirus outbreak, consumer confidence was already decreasing in the eurozone, while in Japan and the United States it was recovering.
The decrease in production, together with the fall of demand and the paralysis of cotton exports to the United States are some of the factors that motivated the price fall.
American international investment bank, Goldman Sachs has lowered the forecast of the main economies in the Eurozone and anticipates its GDP to plunge by 1.7%.
The current pandemic has led to nationwide lockdowns. For American retailers, the path will be even harder.
News on the latest macroeconomic indicators related to the textile- and fashion industry worldwide.