“Collaboration is the only way forward. There is no alternative to collaboration,” said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq while emphasising on collaboration between the textile-apparel industries of India and Bangladesh during the virtual panel discussion ‘Reboot – Rebuild – Rebound: Fashion industry ready for Resurrection?’

Agreeing to the idea, A Sakthivel, chairman of India’s Apparel Export Promotion Council (AEPC) said, “Regional cooperation is a must. It will play a vital role in marketing to Europe.” He added that virtual fairs and virtual marketing should also be held in both India and Bangladesh.

Participating in the discussion, Stephen Lamar, president & CEO, American Apparel & Footwear Association (AAFA), welcomed the idea of creating a regional hub between India and Bangladesh for textile and apparel.

Stressing on digitisation, he said: “COVID-19 has taught us that digitisation is going to be very important. If you are not using technology actively, you are going to fall behind.”

“Digitisation saves time and resources. Implementation of digitisation is collaboration of supply chain—designers, garment manufacturers, etc. It is happening, but needs to happen much quicker,” added Matthijs Crietee, secretary-general of International Apparel Federation (IAF).

Explaining that buyer-supplier synergy is one of the biggest problems in the industry, he said, “Products are made which are not bought. Then those products are sold at a discount. We cannot have sustainability if there is over production and supply-demand mismatch. So, industry has to become smarter by teaching middle management with knowledge, installing systems, and conducting a lot more trainings in the industry.”

According to Crietee, normally no industry produces more and then sells at a discount. The problem of over production in textile-apparel industry must be addressed and the industry should become ‘normal’ like other industries.

Hoang Ngoc Anh, acting general secretary of the Vietnam Textile and Apparel Association (VITAS), said ensuring continued employment of workers, sustainable development, and adjusting the supply chain are important. In view of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), she said the Vietnamese government needs to focus on garment industry development planning, and allow investment in dyeing, sewing, etc to maximise benefits from these agreements. She added that more cooperation and collaboration should be facilitated with governments of other Asian countries.

Arguing for a balanced approach in automation, Huq said the Bangladesh garment industry employs 4.1 million workers, who are dependent on the industry for their livelihood. “Since next-gen takes shopping as an experience, we need to insert a lot of humanism. The story of workers, the story of livelihood needs to be told. Let’s adapt a more better and human strategy, while we move on with automation.”

Stating that the pandemic has brought a lot of thinking in the industry, Sakthivel said the industry has started working on strengthening sportswear and activewear, and after the crisis is over, India will be one of the largest producers of manmade fibre (MMF) products. India is presently mainly a supplier of summer/cotton products, and it is now time to diversify and be able to supply products throughout the year for all seasons.

Indian textile-industry has good backward linkage, but it lacks in economies of scale, he said. However, since Indian apparel industry is already producing with zero pollution, it has a good future as the younger generation wants to buy eco-friendly clothing.

“Trust and partnership has taken a beating on the supply chain over the last couple of months,” said Lamar. So, companies who want to be successful in the ‘new normal’, would have to do a lot of work. “The supply chain is going through a lot of changes; we will see an acceleration of diversification out of China. There might be a renewed rhetoric of the trade war.” But, he quickly added, “a lot of services will remain in China, if not for any other reason, China is a big market itself.”

On the question of sustainability, he said, “We have a chance of changing the footprint, and we have to ensure that new investments in Vietnam are done in a sustainable manner.”

Putting across her point, Huq said, “The kind of fast-fashion consumption that was there earlier is not going to be back, and there will be a drop in consumption.” To avoid reflecting the same on livelihood of workers, prices should go up. “What we are seeing in Asia should be transmitted to the whole world. We have more than 100 factories that are LEED certified, and we have more than 25 factories that are Platinum. It will be worthwhile for us to collaborate regionally and come out with a win-win situation.”

Crietee added the LEED tag tells a good story, but “we do not have something like that to put on a clothing product.”

Het bericht Matthijs Crietee (IAF) Took Part in Panel Discussion in Fibre2Fashion Webinar verscheen eerst op IAF.

The Covid-19/Corona crisis is an unprecedented shock to this supply chain creating a dramatic domino effect of revenue losses. In Germany, offline fashion retail’s sales in the first three weeks of March dropped by 42% compared to the same period the year before, and in Bangladesh orders cancelled in the past few days already represent a value of over 2 billion euros. Representing predominantly small and medium sized apparel brands, apparel manufacturers and their associations, and global suppliers to the industry in nearly 50 countries, the IAF represents directly and indirectly hundreds of thousands of companies. The apparel and textile industries are made up of the world’s longest and most globally dispersed supply chains, employing tens of millions of workers in total.

“Each individual company will have to determine what line of buying behaviour it does not want to cross if it can in any way avoid it”, Crietee said. It is IAF’s view that the global normative framework that has become available in the form of the UN Guiding Principles on Business and Human Rights and translated into the practice of the apparel and footwear industries by the OECD’s Due Diligence Guidance can help make companies make these choices. “In the past few years, we have seen strong and public commitments from leading brands and retailers for responsible purchasing practices in the supply chain in line with recommendations from OECD due diligence guidance. This climate is the most important and public test of those commitments.”

Supply chain solidarity is crucial but not sufficient in the light of this crisis. International solidarity is needed from governments and citizens to help financially support the tens of millions of workers that make our clothing. So in addition to calling on the industry to enact supply chain solidarity, the IAF is urgently asking the appropriate multilateral organisations and the financial support of national governments to step in to quickly make an industry-wide support plan for the most vulnerable parts of the global apparel and textile industries.

Het bericht IAF Urges Solidarity in Apparel Supply Chain verscheen eerst op IAF.

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On May 7, 2020, Pegasus Consultancy in collaboration with the International Federation of Apparels (IAF) and Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) successfully organized a webinar on the topic ‘Impact of COVID-19 on Textile & Apparel Industry’.

The distinguished panel of speakers included: Mr. Han Bekke, President IAF; Mr. Wilson Zhu, COO Li & Fung, Mr. Joachim Hensch, Managing Director, Hugo Boss Textile Industries; Mr. Musadaq Zulqarnain, Chairman Interloop Limited; Mr. Ijaz A. Khokhar, Chief Coordinator PRGMEA. The session was moderated by Mr. Matthijs Crietee, Secretary General IAF and the host, Pegasus Consultancy was represented by Mr. Aamer Khanzada and Mr. Kashif Waheed.

The session had useful deliberations and the global experts discussed the effect of pandemic on the textile and apparel industry while sharing their insights and experiences. Starting the session, Mr. Kashif shared Pegasus’ vision behind this initiative and handed over the platform to Mr. Matthijs. First presentation was made by Mr. Han Bekke in which he comprehensively covered the Global Prospect and urged solidarity in Apparel supply chain during this pandemic. Mr. Joachim Hensch, being the MD of one of the world’s largest textile factory, highlighted the Measures and Alignment Businesses today. His excellent presentation covered all aspects of operations and demand with the key message to convert your cost-centers in value-centers.

Impact of COVID-19 on Pakistan’s textile sector with its effects on the industry and economy was presented by Mr. Musaddaq Zulqarnain. He also highlighted the challenges faced by the local industry and mentioned possible actions to reinvent the apparel industry. In the final presentation, Mr. Wilson Zhu shared his vision on What Shape the Recovery will Take under the theme ‘Survive and Thrive’, based on his experience of successfully passing through the pandemic weave in China. While presenting four scenarios of recovery based on the changed consumer behavior globally, he offered the audience to review their strategies on these lines and adopt the scenario best suited to them.

The presentations were followed by an enlightening Panel Discussion with all the speakers with addition of Mr. Ijaz A. Khokhar of PRGMEA. The panel further discussed various aspects and challenges the industry is being facing globally and each of the expert shared his insights. The panel agreed that while the crises hurting the entire business chain globally, the industries need to act proactively by learning from each other’s experiences. Sustainability and adoptability are the keys to fight the crises and retain the market share in the post-COVID world.

The webinar attracted an overwhelming response from the industry professionals and over 1,200 participants attended the live event form all over Asia, Europe and North America. The audience was interactive and knowledgeable as they keep sending their questions for the panel. Post-webinar response is also very encouraging as the views have crossed over 2,100 and the number is constantly increasing.

All in all, this initiative by Pegasus is a big success and more digital sessions will follow in the coming weeks. Special thanks to Mr. Fawad Ather for a seamless coordination for making this webinar possible in a short span of time.

To watch the webinar, please visit https://www.facebook.com/events.pegasus.

Het bericht Summary Webinar ‘Impact of COVID-19 on Textile & Apparel Industry’ verscheen eerst op IAF.

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Het bericht COVID-19 Joint Industry Statement verscheen eerst op IAF.

The International Organisation of Employers (IOE) joins with the International Air Transport Association (IATA), International Road Transport Union (IRU), International Apparel Federation (IAF) and World Travel &Tourism Council(WTTC)in making this declaration to the G20 ministers. IOE represents more than 50 million companies. IATA, IRU, IAF and WTTC collectively account for 700 million jobs across the road transport, aviation, apparel, traveland tourism industry, almost a quarter of the global workforce.

IOE plays a crucial role within the G20 employment process by bringing the voice of business and monitoring the implementation of their commitments at the national level.

The COVID-19 pandemic is above all a human tragedy, which is having disastrous consequences on the health of hundreds of thousands of people. Tackling the health emergency is our first priority. At the same time, as a result of COVID-19 containment measures, the industries were present, as well as others, are severely impacted by the economic shockwave with unprecedented number of companies on the verge of collapse. A huge number of small and medium enterprises are affected by dire consequences threatening their sustainability. This puts millions of jobs and livelihoods at risk.This also hampers our collective capacity to drive any economic recovery. In today’s interconnected global economy, the spill-over effects created by the failure of one critical industry will result in the collapse of the others.

While we welcome the commitments made by the G20 during the Leaders’ Summit of 26 March,we regret that the economic stimulus packages that were pledged are insufficient or have not yet reached the real economy, especially SMEs. This is because processes to access financial support are too complex and difficult to activate, when what is needed is efficiency and simplicity. We therefore strongly urge G20 Employment Ministers to bolster their financial support and facilitate their swift implementation. Without immediate and stronger action taken by all governments, the impact of business closures will have deep-rooted economic and social effects that will shatter the foundations for any immediate economic recovery.

We urge the G20 to strengthen global coordination to overcome the global challenges related to the pandemic. Too many global supply chains, mobility and logistics networks are adversely impacted by unilateral decisions. Employers’ organisations can help the G20 to achieve its social and economic objectives relating to recovery if we are consulted and involved in the negotiation, implementation and follow-up of the crisis response.

In these difficult times, IOE, IATA, IRU, IAF and WTTC join forces and stand ready, through their global networks, to work with governments and all stakeholders to ensure recovery efforts are implemented effectively. We believe that by working together we can achieve a rapid global recovery that will benefit G20 States, their citizens and the wider world.

Signatories:
Mr Roberto Suarez-Santos, Secretary General, International Organisation of Employers (IOE)
Mr Umberto de Pretto, Secretary General, International Road Transport Union (IRU)
Mr Matthijs Crietee, Secretary General, International Apparel Federation (IAF)
Mr Alexandre De Juniac, Director General, International Air Transport Association (IATA)
Ms Gloria Guevera, President & CEO, World Travel & Tourism Council (WTTC)

Please click for the official document

Het bericht Open letter to G20 Employment Ministers from leaders of global industry organisations verscheen eerst op IAF.

Concretely, employer and worker organisations along with leading brands, retailers endorse a call for action and commit to work with governments and financial institutions to mobilise sufficient funding to enable manufacturers to ensure business continuity including payment of wages, as well as income-support and job-retention schemes to address the impact of the crisis.

IOE Secretary-General Roberto Suárez Santos explained: “The economic impact of the Covid-19 pandemic on this critical industry requires a global response. IOE joins this call for action with the aim of supporting business continuity as well as the livelihoods of workers in the garment industry during this disruptive period. This is a voluntary initiative that focuses on mobilising collective action. It is not aiming to disregard stakeholders, companies and organisation that might not be able to join.”

ITUC General Secretary Sharan Burrow joins the call to action to ensure jobs and sustainable business in SMEs in the garment industry are maintained through this tragic period. She explained: “We cannot afford the human and economic devastation of the collapse of our global supply chains and millions more in developing economies thrown back into poverty. Jobs, incomes and social protection are the dividends of business continuity and this statement calls for emergency funds and social protection for workers to guarantee industry survival in the poorest of our countries. Leadership and cooperation from all stakeholders are vital to realise a future based on resilience and decent work.”
IndustriALL General Secretary Valter Sanchessaid: “These principles are the essential first step towards mobilizing the funds needed to maintain the livelihoods of garment workers through this crisis and beyond. Concrete action is now needed by the industry to protect supply chains and the workers they depend on.”

ILO Director-General Guy Ryder explained: “The International Labour Organization is deeply concerned by the threat posed by Covid-19 to millions of jobs in the global garment industry. This is an unprecedented crisis that can only be solved through global solidarity. The priority must be to sustain businesses and protect workers.  At the heart of this is effective social dialogue between governments, workers’ and employers’ organizations.  We urge all actors to heed this this call and take joint action that will help us avert catastrophe for the industry.”

Emanuel Chirico, Chairman & CEO, PVH Corporation offered this endorsement: “The Covid-19 pandemic has severely affected every aspect of the apparel value chain, from the closure of retail stores globally, to the workers, families and communities throughout the supply chain. We recognize that tackling this is far bigger than just one business and requires a collaborative industry response – and PVH is committed to that. We must work together as brands, governments, and representatives for workers as well as employers to establish a more just and resilient garment industry that is better equipped to deal with both the human and business impacts of Covid-19 and any future crises.”

Dr. Rubana Huq, President, Bangladesh Garment Manufacturers and Exporters Association expressed her support: “We deeply appreciate the global initiative jointly taken by IOE, ITUC, IndustriAll and ILO inviting all the reputed brands/buyers/retailers and other stakeholders in this ‘Call to Action’ to support the workers and enterprises of the RMG sector across the world severely impacted due to Covid-19. We hope that this will be a collective and collaborative platform where business across the globe will come forward to address the immediate crisis so that the lives and livelihoods of the millions of workers can be protected thereby allowing the RMG industry to sustain the challenges and come out with renewed resilience.”

IOE, ITUC, the ILO, and the other organisations that endorse this statement, consistent with their respective roles, commit to support the development of social protection floors and to extend social protection for workers and employers in the garment industry.
An international working group will be established within the next two weeks convened by the ILO and coordinated by IOE and ITUC, including brands and manufacturers, workers and employer organisations and governments, to further elaborate the implementation steps necessary to deliver on these commitments.

Full version of the call to action is available here Covid-19: Joint Call for Action for the Garment Industry.

For media queries, please contact:

Jean Milligan, International Organisation of Employers, +41 78 868 19 10, milligan@ioe-emp.com
Gemma Swart, International Trade Union Confederation, +44 7944 990763, Gemma.Swart@ituc-csi.org
Petra Brännmark, IndustriALL Global Union, +41 79 198 69 13, pbrannmark@industriALL-union.org
International Labour Organization, newsroom@ilo.org 

Consult our websites for additional information:
www.ioe-emp.org
www.ituc-csi.org 
www.industriall-union.org
www.ilo.org

Het bericht Employers, workers and major brands join ILO on call for action verscheen eerst op IAF.