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Global Apparel Markets: Business Update, 1st Quarter 2009
Textiles Intelligence, July 2009, Pages: 16
The global apparel industry has been characterised by a number of developments in recent months. In anti-counterfeiting, Nigeria’s federal government has asked for help from the Chinese government in its battle against the illegal manufacture of certain Nigerian textile products in China. In company restructuring and reorganisation, Arcadia Group has announced plans to integrate British Home Stores (BHS) into its company as one of its brands, and International Textile Group (ITG) is planning to merge its Cone Denim and Burlington WorldWide divisions into a single business group.
Meanwhile, the Clean Clothes Campaign has alleged that the sourcing operations of certain discount retailers are irresponsible. In environmental issues, Teijin Group has introduced its polyester recycling programme in Thailand and has launched a jacket which can be recycled easily. In international trade, a trade promotion agreement (TPA) between the USA and Peru has become effective, Japan’s government is planning to reduce apparel imports from China by about one-third, and the US National Council of Textile Organizations (NCTO) has opposed the inclusion of Vietnam in the proposed Trans-Pacific Partnership (TPP) free trade negotiations.
There has been a flurry of strategic activities throughout the world in recent months. In the USA, Levi Strauss & Co has signed a licensing agreement with Oneworld Apparel relating to Levi’s women’s tops, Karen Neuburger (KN) and Intimo have entered into a licensing agreement covering men’s wear,
lounge wear and children’s wear, and Philips-Van Heusen (PVH) and Free Country have entered into a licensing agreement covering PVH’s IZOD branded sportswear.
Meanwhile, in Latin America, Iconix Brand Group and New Brands Americas have entered into an agreement to establish Iconix Latin America, and Plains Cotton Cooperative Association (PCCA) has set up a new company, called Denimatrix, to produce jeans. In South-East Asia, Polo Ralph Lauren has announced that it will assume direct control of its wholesale and retail distribution activities in the region.
In retailing, H&M is planning to open its first store in South Korea during 2010. In the Middle East, Stella McCartney has opened three new stores in Dubai, Jeddah and Riyadh, and Gap is planning to open its first Gap and Banana Republic stores in Israel.
In South Asia, Celio has established an exclusive Celio store in India, while Inditex and Tata Group are planning to establish new Zara stores, also in India. In South-East Asia, Uniqlo has opened its first store in Singapore.
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