From the Sector

On December 7th and 8th, Bangladesh Apparel Exchange (BAE) in partnership with Fashion for Good, facilitated the “Chemical Recycling Technologies: Manufacturing Markets Gateway”, in Bangladesh. Fashion for Good, the Amsterdam based global platform for innovation, along with two disruptive technology start-ups focused on textile-to-textile chemical recycling, Circ and Infinited Fiber Company, were the key stakeholders in this initiative.

The two-day visit leveraged Bangladesh's status as a major garment production hub, exploring the potential of chemical recycling technologies to enhance environmental sustainability. Emphasizing the importance of circularity, the event aimed to spread awareness about current disruptive innovations that could transform the industry's approach to waste and resource management, setting an example for future sustainable practices. It focuses on integrating these technologies within the local manufacturing landscape, securing feedstock partnerships, and developing a value chain for recycled apparel materials.

Denim Asia Limited, Knit Asia Limited, Progress Apparels Limited, Ananta BD, Reverse Resources, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) played pivotal roles in this initiative. Knit Asia Ltd, notably acclaimed for their commitment to sustainable practices, along with Denim Asia, associated with the sustainable brand Noize Jeans, showcased their commitment to sustainable manufacturing processes.
Progress Apparels Limited, a ready-made garment producer and part of PDS Limited demonstrated its advanced sustainable production facilities. Reverse Resources and the BGMEA hosted an intimate “Meet and Greet Networking Session”, to boost awareness about the technologies in the industry.

Mr. Mostafiz Uddin, Founder and CEO of Bangladesh Apparel Exchange, emphasized the significance of this event for the wider Bangladeshi textile industry, " Bangladesh has the biggest manufacturing sector in South Asia and this tour marks a critical step towards a circular fashion ecosystem, also how can the fashion industry become more sustainable in Bangladesh. It's not just an event; it's part of a larger movement to incorporate innovative recycling, Sustainable Fashion technologies and establish global partnerships for a sustainable fashion industry."

Featuring interactive sessions, factory visits, and knowledge sharing, this initiative offered a platform for fostering collaborations between manufacturers and technology innovators.

Bangladesh Apparel Exchange and Fashion for Good are optimistic about a future where Bangladesh leads in sustainable and circular apparel manufacturing.

The ISPO Textrends judges have selected YKK's DynaPel™ water-repellent zipper as the Best Product in the accessories category. The competition, held twice a year in conjunction with the ISPO trade show, recognizes the most innovative performance textiles, components, and apparel.

Designed to be compatible with garment recycling systems, the DynaPel™ zipper uses GTT’s EMPEL® technology instead of the standard PU film to achieve its water repellency. The lack of a PU film helps remove one of the barriers of textile-to-textile recycling of performance apparel by eliminating the urethane material, which presents challenges to garment recycling processes.

Conventional chemical and mechanical garment recycling systems cannot process the polyurethane film commonly used on water-repellent zippers, necessitating the removal of zippers from garments before recycling.  This additional processing step often deters recyclers from accepting garments with PU zippers, resulting in unnecessary waste.

EMPEL® technology uses advanced green chemistry devoid of PFAS and a specialized manufacturing process that allows the chemistry to penetrate the yarn and encapsulate it with a water-repellent layer through molecular cross-linking. The molecular cross-linking creates an extremely durable layer that is highly resistant to abrasion and invisible to the eye.

"Veritas", the trend book for the Spring-Summer 2025 season, looks at a world where each individual defends "their" truth. Gone are the days of tribal fashion... To be discovered at the Parc des Expositions, Porte de Versailles, from 5 to 7 February 2024.

After exploring a world where the senses are once again at the centre, Louis Gérin and Grégory Lamaud, the artistic directors of Texworld Evolution Paris, offer a more personal interpretation of this future humanity. Our wardrobes reflect our individual levels of commitment to the "truth". Faced with the modern paradox of growth versus sustainability, each of us expresses our own vision of the world. These points of view are reflected in the four themes of this new trend book.

Creative themes imagined with AI
Based on the analysis of emerging signals detected in the artistic, economic and social fields, these approaches incorporate elements of artificial intelligence for the first time. The artistic directors have incorporated them - by identifying them - into the 'pattern design' boards that bring together the colours and silhouettes used for each creative universe.

#1 Belief. This theme, which isn't very assertive and is rather introverted, expresses itself with elegance and discretion. The colour temperatures remain calm, in the background. The colour universe is oriented towards more "conservative", mineral shades, dominated by green and blue. The textures express matter and vibrations.  

#2 Immanence. While this proposal remains conservative and mystical, it is more visible than the previous one. It expresses a more talkative "bohemianchic" universe, asserting its point of view through a relatively cynical approach: "these are the new rules of our common life. You have to live with them". The colour range is expressive and warmer, but remains fairly classic. It is expressed more in knitwear or embroidery, materials with relief or a frosted appearance.

#3 Knowledge. This is all about affirming yourself. This theme, which also draws on classic sources of inspiration - nature, plants, flowers - sets out to transform them radically. The colours are strong, contrasting, in opposition, and are applied to materials that express the future, with crumpled, liquid or transparent textures.

#4 Experience. This is the most committed theme in the field of subjective truths. "Trust only yourself. [...] Don't believe. Test [...] trust no one. Learn from your own experience". The colours are very bold: we wear them to attract attention. Acidic, sweet shades are king, as are materials that evoke urban or sporty codes: rips, shiny aspects, organic (second-skin type), but also lace and transparency.
 
All these worlds will be showcased in two Trend Forums: one at Texworld Paris for fabrics, the other at Apparel Sourcing Paris for finished products (a new feature in February 2024). Visitors will be able to discover looks inspired by the fabrics and products selected by the show's art directors. There will also be new areas with samples to illustrate each of these themes: Highlights Texworld, Highlight Apparel Sourcing, Highlights Elite and Highlights Denim.

The global fashion retailer H&M has joined forces with Coloreel to introduce a pioneering approach to customized embroidery. This new partnership allows customers at the H&M Alexa store in Berlin to personalize their apparel with a myriad of expressive designs.

The program marks the start of a new and innovative in-store pilot developed by H&Mbeyond. Customers can select from a diverse library of designs that will be updated on a weekly basis.

Coloreel redefines the art of embroidery, offering an unlimited spectrum of colors at the touch of a button. The technology reduces wastewater by 97% and utilizes recycled thread, marking a significant step towards more sustainable production.

“Our partnership with Coloreel reflects our commitment to enhance the shopping experience through innovative solutions,” states Oliver Lange, Head of H&Mbeyond. “By embracing this advanced technology, we can offer our customers a unique and engaging store visit."

With the collaboration, H&M and Coloreel want to explore ways to create brick-and-mortar shopping experiences and analyze the influence that a technology like Coloreel’s has on in-store purchases.

The service is offered at the H&M Alexa store in Berlin during Q4 2023. While the service currently extends to products within the store, plans for embroidering customers’ own garments might be added later. This approach would extend the lifespan of garments, creating a positive environmental impact.

Freudenberg Performance Materials Apparel (Freudenberg) launches two advanced thermal insulation products made from low-level Bisphenol A (BPA) recycled PET fibers (rPET) into the global range of comfortemp®, Freudenberg’s thermal insulation brand.

The additions of DOWN FEEL WA 150LB and FIBERBALL WB 400LB to the comfortemp® global range serve as high-quality and ecologically-minded alternatives to down, enhancing the comfort and sustainability of your garments. DOWN FEEL WA 150LB is an extremely-lightweight, loose fiber thermal insulation with a super-light loft, while FIBERBALL WB 400LB uses clusters of extra-fine fibers to offer optimal breathability, maximum comfort, and minimal clumping after washing and drying.

GRS-certified and OEKO-TEX® STANDARD 100 Class I certifications
Both products utilize 100% GRS-certified rPET fibers, customizable to any desired fill levels. Additionally, these new products not only comply with but significantly surpass the stringent OEKO-TEX® STANDARD 100 Class I certifications. While OEKO-TEX® categorizes low-level BPA as less than 100 parts per million (ppm), these new products contain less than 1 ppm BPA, a testament to Freudenberg’s unyielding standards.

DOWN FEEL WA 150LB and FIBERBALL WB 400LB are available globally and more low-level BPA thermal insulation options are available in Asia.

Textil Santanderina, a manufacturer of quality fabrics with controlled traceability, launched its Advanced Black denim collection in collaboration with Archroma.

The Advanced Black collection by Textil Santanderina uses Archroma’s new DIRESUL® EVOLUTION BLACK LIQ dyestuff to produce on-trend authentic black denim apparel with sustainability and resource savings. In addition to allowing fashion and apparel brands to choose eco-friendlier alternatives that demonstrate their commitment to protecting people and planet, Textil Santanderina’s new Advanced Black denim range also offers unique shade and wash-down effects.

Based on synthesis technology developed by Archroma, DIRESUL EVOLUTION BLACK LIQ delivers an overall impact reduction to 57%*, measuring its effect on human health, ecosystems and resources compared to standard Sulfur Black 1 liquid. Unlike traditional synthesis processes, it does not produce any ammonia, sodium salts waste or liquid effluents, and water consumption in the synthesis process is reduced by 73% for massive savings. The new DIRESUL dyestuff, when adopted with the full Archroma coloration system, delivers a new black color with on-tone wash-down effect and cleaner effluent at the mill.

Textil Santanderina and Archroma previously collaborated to produce Textil Santanderina’s aniline-free** indigo denim collection with the use of DENISOL® PURE INDIGO.

*As determined by Ecoterrae, a leading Spain-based sustainability consulting firm, through a Life Cycle Analysis (UNE-EN ISO 14044:2006) at the synthesis stage, using the ReCiPe 2016 Impact calculation methodology.
**Below limits of detection according to industry standard test methods.

Germany-based ZwissTex is a leading manufacturer of textiles with over 150 years of experience, creating innovative and sustainable textile solutions for the automotive and apparel industries. The company also operates in Mexico, to specifically serve the automotive sector across North American Free Trade Agreement (NAFTA) markets. Via OEMs, ZwissTex supplies German automakers including Volkswagen Auto Group, BMW, and Mercedes, as well as American manufacturers in select cases.

Unlike other Kornit customers, ZwissTex had no previous experience printing their own materials, and saw Kornit’s sustainable, single-step, Presto MAX S production system as an effective means of increasing their product capabilities.

“Our textiles were not classically printed in the past, and we did not produce any classical textiles in fashion, which is why we didn’t have any printing experience internally,” said Ralph Moldan, Technical Specialist at ZwissTex, as the system was being installed in their facility. “The only option was to find a system that would enable us to implement the areas in which we are active on the market easily and quickly, without requiring a lot of printing experience.”

One benefit of integrating Kornit technology into the ZwissTex production ecosystem: applying ink only where it is needed and seen, rather than to the full surface of each material. This translates to both reducing the company’s carbon footprint, and minimizing materials waste for a more cost-effective operation.

Prior to making the decision to invest in Kornit, ZwissTex conducted a series of tests and consultations, evaluating possible applications for different materials and engaging with their own key clients to ensure these finished products would meet their rigorous quality and durability standards. This included presenting Kornit-decorated samples at the Techtextil 2022 exhibition in Frankfurt.

Moldan found Kornit’s production capabilities opened new doors to customization of interior areas, a market that continues to grow. He anticipates this technology will create new opportunities with customers they could not reach previously, including new opportunities in sectors such as motor homes, airlines, and aircraft outfitters.

Harnessing the synergy of the Texpertise Network of Messe Frankfurt and its global apparel flagship, the co-organisers of the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) recently held a joint press conference on 28 August 2023, the first day of Intertextile Shanghai Apparel Fabrics – Autumn Edition. Discussing the inaugural fair’s comprehensive, business-friendly nature, representatives of both Messe Frankfurt  and VIETRADE spoke in glowing terms about the potential of ASEAN’s new platform for the entire textile industry. Set to launch the spring sourcing season, the fair will take place from 28 February – 1 March 2024 at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City.

For its first edition, the fair is expected to attract over 500 exhibitors and around 35,000 visitors to an 18,000 sqm exhibition space. Ms Wendy Wen, Managing Director of Messe Frankfurt (HK) Ltd, considered the show’s importance on a worldwide scale: “Serving as a supplementary trade fair to our existing events in China, VIATT will effectively extend our market reach into South East Asia. We’ve designed it to reinforce our global Texpertise Network, spanning the entire textile value chain. The network, which links over half a million textile professionals globally and organises more than 50 international textile trade fairs across 11 different countries, will lend its full support to the fair.”
 
She continued: “In line with this commitment, we will harness our more than 30 years of experience organising Intertextile in China, and extend to the fast-growing textile sector in Vietnam. Intertexile has grown to be by far the most influential series within our Texpertise Network, covering a broad range of resources in apparel fabrics, home and contract textiles."
 
With Vietnam’s largest international airport and seaport, and its proximity to other textile producing countries and regions, Ho Chi Minh City is strategically located to hold an event of this nature. The city attracts 35%^[1] of Vietnam’s foreign direct investment projects, and is the venue of choice for a significant portion of the country’s trade fairs.
 
Discussing the event’s potential, Mr Vu Ba Phu, Director General of Vietnam Trade Promotion Agency (VIETRADE), said: “Vietnam has emerged as one of the leading textiles exporting countries worldwide, with particularly high growth in the past 10 years, ranging from 15% to 20% yearly. As companies seek to diversify supply chains, and Vietnam introduces lucrative trade agreements, the market is predicted to attract even more investments. A big importer of textile machinery, fabrics, and yarns and fibres, green production and durable goods have become increasingly important. VIATT 2024 will be an important hub helping suppliers and buyers in all categories to meet, source and unleash the full potential of this market.”
 
A comprehensive Vietnam-based textile fair is an attractive proposition for manufacturers and sourcing professionals alike. Exhibitors from around the world will showcase a full spectrum of apparel fabrics, yarns and fibres, and garments; the latest innovations in technical textiles and nonwovens, textile processing, and printing technology; as well as a wide range of home and contract textiles.
 
Apparel fabrics, yarns and fibres, and garments
This sector will contain quality exhibitors from Vietnam, ASEAN, and beyond, providing buyers with numerous, diverse sourcing options in apparel textile sub-categories such as accessories, casualwear, denim, lace and embroidery, ladieswear, pattern designs, shirting, sportswear, suiting, and many more.
 
Technical textiles and nonwovens, textile processing, and printing technology
With application areas that include everything from automotive, aerospace and shipping, to construction, healthcare and safety, products on display will include innovative machinery, as well as some of the latest developments in smart textiles, such as wearable technology, sensors, and advanced materials.
 
Home textiles
Exhibitors will feature high-quality bed linens, towels, curtains, and much more, suitable for visitors sourcing for both residential and commercial applications. The diverse collections of home textiles will be enhanced by globally on-trend interior designs and in-demand, organic materials.
 
The Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) is organised by Messe Frankfurt (HK) Ltd and the Vietnam Trade Promotion Agency (VIETRADE). Covering the entire textile industry value chain, the inaugural edition will be held from 28 February – 1 March 2024 at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City.

^[1] ‘Investing in Ho Chi Minh City’, October 2022, Vietnam Briefing, retrieved August 2023, https://www.vietnam-briefing.com/news/investing-in-ho-chi-minh-city-why-the-megacitys-industry-economy-and-policy-are-key-to-developmen.html/

• Currency-neutral revenues flat versus the prior-year level
• Top-line development reflects improved sell-out trends and conservative sell-in strategy
• Gross margin up 0.6pp to 50.9%; strong improvement compared to Q1 reflecting better sell-through and less discounting
• Operating profit of € 176 million includes extraordinary expenses of around € 160 million related to one-off costs, donations and accruals for future donations
• Inventory position improves substantially versus Q1 level to € 5.5 billion; now up only 1% year-over-year

In the second quarter of 2023, currency-neutral revenues were flat versus the prior-year level. The top-line development continued to be impacted by the company’s conservative sell-in approach in order to reduce high inventory levels, particularly in North America and Greater China. At the same time, adidas second quarter revenues benefited from the first sale of some of its Yeezy inventory. The initial product drop in June generated revenues of around € 400 million in Q2, which is largely in line with the Yeezy sales generated in the prior year’s quarter.

Footwear revenues grew 1% during the quarter, reflecting strong growth in football, basketball, tennis and US sports. Apparel sales declined 3% in the second quarter. As the apparel market continues to be particularly overstocked, the company continued its conservative sell-in strategy to improve sell-through and margins in the medium term. Accessories grew 8% during the quarter driven by growth in football.  

Lifestyle revenues were down during the quarter despite extraordinary demand for the company’s Samba, Gazelle and Campus franchises. While adidas slowly started to scale its offering for these product families during the second quarter, the total volume still only represents a small portion of the company’s overall business. Sales in the adidas Performance categories continued to show positive momentum. This reflects strong demand for new product introductions such as the latest iterations of its Predator, X and Copa football boots, as well as jerseys for both the FIFA Women’s World Cup 2023 and the company’s unique portfolio of football teams ahead of the start of the European club season. In addition, the Adizero product family in running continued to gain a lot of attention around marathon races across the world, translating into higher demand. At the same time, the brand’s Barricade tennis franchise grew strongly, leveraging the excitement around major tournaments.

In euro terms, the company’s revenues declined 5% to € 5.343 billion in the second quarter (2022: € 5.596 billion).

Stronger sell-out trends and conservative sell-in
As a result of the company’s initiatives to reduce high inventory levels, currency-neutral sales in wholesale declined 10% despite double-digit growth in Greater China and Latin America. At the same time, direct-to-consumer (DTC) revenues grew 16% versus the prior year. This development was driven by strong growth in both the company’s e-commerce business (+14%) as well as own retail stores (+19%), reflecting continued strong sell-out trends across most regions. The outperformance of the company’s DTC channel versus the wholesale business was also related to the first sale of the Yeezy inventory, which was done exclusively through adidas’ own e-commerce channel.

Double-digit growth in Greater China and Latin America
Currency-neutral sales in North America declined 16% during the quarter. The region is particularly affected by elevated inventory levels in the market and – in response to this – the company’s significantly reduced sell-in. Revenues in Greater China grew 16% in Q2, reflecting double-digit sell-out growth in both wholesale and own retail. Sales in EMEA were down slightly (-1%) despite double-digit DTC growth. While the company’s initiatives to reduce inventory levels and discounting weighed on the overall top-line development in the region, adidas recorded significantly improving full-price trends during the quarter. Revenues in Asia-Pacific increased 7% during the quarter, driven by strong double-digit growth in DTC. Latin America continued to increase at a double-digit rate (+30%), reflecting strong growth in both wholesale and DTC.

Gross margin improves to 50.9%
The company’s second quarter gross margin increased 0.6 percentage points to 50.9% (2022: 50.3%). This improvement was mainly driven by price increases the company has implemented as well as by an improved channel mix. At the same time, higher supply chain costs and unfavorable currency movements continued to strongly weigh on the gross margin development. While still adversely impacting the company’s gross margin in the quarter, discounting levels significantly improved compared to the first quarter of the year.  

Operating profit of € 176 million, resulting in an operating margin of 3.3%
Other operating expenses were up 3% to € 2.582 billion (2022: € 2.501 billion). As a percentage of sales, other operating expenses increased 3.6 percentage points to 48.3% (2022: 44.7%). Marketing and point-of-sale expenses decreased 7% to € 617 million (2022: € 663 million). As a percentage of sales, marketing and point-of-sale expenses slightly decreased by 0.3 percentage points to 11.5% (2022: 11.8%). Operating overhead expenses were up 7% to € 1.965 billion (2022: € 1.838 billion), reflecting higher logistics expenses. In addition, the company recorded one-off costs of around € 50 million related to the strategic review the company is currently conducting as well as donations and accruals for further donations in an amount of around € 110 million. As a percentage of sales, operating overhead expenses increased 3.9 percentage points to 36.8% (2022: 32.8%). The company’s operating profit amounted to € 176 million (2022: € 392 million) in the quarter. This amount includes the extraordinary expenses of in total around € 160 million reflecting the one-off costs related to the strategic review as well as the donations and accruals for further donations. The sale of the Yeezy product positively impacted adidas’ operating profit by an incremental amount of around € 150 million in Q2. The operating margin reached 3.3% in the quarter (2022: 7.0%).

Net income from continuing operations of € 96 million
After taxes, the company’s net income from continuing operations amounted to € 96 million (2022: € 360 million), while basic EPS from continuing operations decreased to € 0.48 (2022: € 1.88).

Outlook

adidas expects revenues to decline at a mid-single-digit rate
On July 24, adidas had adjusted its full year financial guidance to reflect the positive impact of the first sale of some of its Yeezy inventory and a slightly better-than-expected development of the adidas business in the first half of the year. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels. As a result, adidas now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023 (previously: decline at a high-single-digit rate).

Underlying operating profit anticipated to be around the break-even level
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is still anticipated to be around the break-even level. Including the positive impact from the first Yeezy drop of around € 150 million, the potential write-off of the remaining Yeezy inventory of now € 400 million (previously: € 500 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), the company now expects to report an operating loss of € 450 million in 2023 (previously: loss of € 700 million).

On August 2, the company launched a second drop of Yeezy inventory. Throughout the month of August, adidas is making a range of existing products available through both its own e-commerce channel as well as the digital platforms of selected wholesale partners. If successful, this second drop would further improve the company’s results. However, as the results of this drop are yet unknown, it is not accounted for in the company’s current top- and bottom-line outlook for 2023.

‘Best of Bangladesh’ -- the first ever sole ‘Made in Bangladesh’ show in Europe -- aims to open the doors for Europe to experience what the Bangladeshi industries has to offer.

As Bangladesh celebrates five decades of strong ties with Europe, in order to further strengthen the ties and deepen collaborations with the partners across Europe, Bangladesh Apparel Exchange, supported by the Bangladesh Embassy in the Netherlands, is organizing the event in Amsterdam, Netherlands on September 4th and 5th, 2023.

The ‘Best of Bangladesh’ aims to serve as a dynamic platform to showcase the progress and potential across diverse sectors of Bangladesh economy, especially manufacturing.

A total of 40 Bangladeshi companies each of which is the country’s best from apparel, textile, leather, Agro, jute, handicrafts, pharmaceutical, light engineering, digital industry, FMCG and bicycle will showcase their sustainable and innovative products in the Best of Bangladesh.  

Bangladesh economy ranks as the world’s 37th largest now and it’s rapidly-expanding. The ‘Best of Bangladesh’ is being organized to accelerate interests and burgeoning engagements between the entrepreneurs and private sector entities on both European and Bangladeshi sides. The event has been structured to serve as a platform to showcase the multifaceted progress made and potential across diverse sectors of Bangladesh’s economy.

There will be an inaugural and 7 interactive panel sessions at the Best of Bangladesh on the topics ‘Bangladesh – Perspectives From An Emerging Economy’, ‘Bangladesh - Your Sustainable Sourcing Destination’, ‘Empowering the Future: Advancing Safety & Well-being for Garments Workforce in Bangladesh’, ‘Bangladesh Agro-Food: A Next Opportunity for Collaboration’, ‘Impact Investing - The Next Frontier’, ‘Sustainable Synergy: Circular Economy, Climate Action & Bangladesh’s Future’, and ‘Digitization and Digital Economy in Bangladesh’.