2021年3月5日
行業報導 - 2021年3月5日
1、UNIQLO日本減價9% 中港兩地有無份？
UNIQLO及GU母企迅銷（6288）宣布，其在日本的UNIQLO和GU門店將減價約9%，原因是於新冠病毒大流行，集團得悉很多顧客正經歷著前所未有的困難，故作出減價決定。集團又指，其價格標籤今後將顯示含稅價格，以便顧客計算價錢。
然而，UNIQLO相關負責人表示，是次在日本本土的價格調整，是對日本政府政策的配合。對於日本以外的市場，目前沒有相關計劃。
資料來源：明報 (2021年3月4日)
2、【美國製造】沃爾瑪宣布10年內投資3500億美元支援當地商家
美國零售商沃爾瑪（Walmart）日前推出支持美國製造商的計劃，宣布在未來 10 年，將會為在美國製造、生產或組裝的商品，額外投資 3,500 億美元（約港幣 2.73 萬億元）。
沃爾瑪美國區總裁 John Furner 在網上日誌中撰文，計劃為美國創造超過 75 萬個就業機會。沃爾瑪將重點投資塑膠、小型電器、食品加工、製藥和醫療用品。
他指出，這些投資將以更接近客戶的所在地採購，減少約 1 億噸的碳排放，而這是沃爾瑪承諾在 2040 年實現「碳中和（Carbon neutrality）」目標的部份。
沃爾瑪曾在 2013 年承諾，向美製產品投資 2,500 億美元，並承諾公司所售賣的商品約 2/3 來自美國。沃爾瑪這次的新投資計劃，每年平均投資額為 350 億美元，而去年公司賣出商品的總成本為 4,200 億美元。
受惠新冠肺炎疫情帶動銷售增長，沃爾瑪早前宣布為旗下 42.5 萬名員工調整薪金，將平均時薪調升至 15 美元以上（約港幣 116 元），而最低時薪則維持在 11 美元（約港幣 85 元）。
資料來源：香港經濟日報 (2021年3月5日)
3、百貨業蕭條難翻身？ 日本最大百貨推名牌租借服務 吸4億生意
新冠肺炎疫情爆發，加上網購熱潮興起，各地百貨業陷入經營困境。經濟前景不明朗，人們購買奢侈品的意欲或減退。難道奢侈百貨終會式微？可如何自救？日本有百貨公司推出名牌租借訂閱服務，估計可吸引3萬名顧客。
重組架構慳7億
日本最大百貨公司J.Front早年由大丸百貨及松坂屋合併，管理大丸松坂屋百貨店、大丸百貨、PARCO等。截至今年2月底，6個月內的百貨業務生意額大跌41.5%，毛利挫43.2%。疫情使業務倒退，J.Front除了重組架構，大幅節省開支，亦會加快數碼步伐，估計可使淨收入增加100億日元（約7.26億港元）。
名牌租用服務 吸4億生意
節流以外，J.Front亦會推出名牌租借訂閱服務，希望可以減少依賴傳統業務。據日經亞洲報道，用戶可以月費1.1萬日元（約798港元），租用最多3件高端品牌的服裝，例如襯衫、大褸等。服務由大丸松坂屋百貨供應，選擇將包括50個日本及海外品牌，如Epoca 、Sanyo、Marni及Chloe等。J.Front估計此服務5年內可吸引3萬名客戶，創造55至60億日元（約4億至4.3億港元）的生意。
大丸松坂屋百貨從合作品牌採購服裝，並承擔所有清潔及保養費用。該百貨將會與品牌分享客戶數據，包括耗損程度等，用於產品設計及銷售推廣。
資料來源：香港經濟日報 (2021年3月2日)
4、香港經濟：港商訂單大幅改善仍有排捱
香港經濟方面，目前內部受疫情影響，加上政府一意孤行上調股票印花稅，難寄厚望，對外的出口會如何呢？市場甚為關注農曆新年假期後，內地工廠的復工情況，尤其去年受新冠肺炎疫情開始大規模爆發影響，假後復工情況受阻，內地工廠產能需較長時間才全面恢復，然而，今年情況已大為好轉。
廣東節後復工情況較佳
瑞銀首席中國經濟學家汪濤表示，在「就地過年」政策下，回鄉人群減少，削弱了城際及省際出行，預期今年內地復工復產可能早於去年，能提振生產活動。
香港生產力促進局主席、美羅針織廠董事總經理林宣武表示，大部分內地工廠在2月尾逐步復工，為防範疫情，亦要採取隔離措施。
據初步觀察，不同地區的復工情況有異，例如廣東省復工情況較佳，江西一帶工人復工情況較緊張。一些公司為如期出貨，會把訂單輸往廣東省進行生產。
香港廠商去年飽受疫情困擾，今季似乎逐步迎來曙光。鐘錶商天時貿易公司經理尹明義指出，現時業內的訂單量已較去年最嚴峻時有所好轉，例如原先在疫情前有1,000萬元生意，去年最壞時候只剩100萬元生意，按年大跌九成，現時回升至500萬元生意，情況已大為改善。
雖然生意依然較正常時期下跌一半，但若仍有毛利，還可以慢慢捱。
惟尹氏補充，若廠商繼續每月錄得虧損，捱不下去只能先行結業，待日後營商環境好轉，再決定是否重操故業。整體而言，他認為現時廠商已逐步適應在疫情下經營，營運情況正緩慢好轉。
資料來源：東方日報 (2021年3月1日)
5、金管局再延「還息不還本」半年
【本報訊】金管局聯同銀行業中小企貸款協調機制宣布，再延長「預先批核還息不還本」計劃6個月至2021年10月。還息不還本機制去年5月推出，原定為期6個月，去年11月延長6個月，今次為第二次延長。金管局指，至今年1月底，銀行業為支援企業客戶已經批出逾59,000宗貸款展期等支援措施，涉及金額達7,500億元。
金管局表示，因應疫情持續困擾世界各地，決定讓合資格企業客戶於2021年5月至10月期間的貸款本金還款期可申請延長6個月，貿易融資貸款本金還款期則可獲延長90天。
因應機制推出近一年，為平衡風險，若同一筆貸款自原貸款日起累積展期540天或以上（或同一筆貿易融資貸款自原貸款日起累積展期270天或以上），銀行可以採取彈性安排，在符合審慎風險管理原則下，按客戶的個別情況考慮其他更合適安排協助客戶渡過難關。
金管局重申，「還息不還本」計劃涵蓋所有年度營業額在8億港元以下及沒有嚴重逾期還款的企業客戶，共有約100家銀行參與，覆蓋約12萬多合資格企業客戶。在推出首6個月，有1.9萬家企業參與，參與率為16%；11月延期後，參與計劃的企業客戶有5,100家，參與率為4%。
資料來源：香港經濟日報 (2021年3月5日)
6、Gap Inc. Turns Back to Black in Q4 Even as Sales Dip
Gap Inc. expects 2021 net sales to grow in the mid- to high-teens percentages, assuming a return to a more normalized level in the second half.
In a Nutshell: In reporting financial results for the fourth quarter and fiscal year, Gap Inc. said Thursday that it saw more than $6 billion in sales online, reflecting 54 percent annual sales growth, in the three months through Jan. 30.
Online sales represented 45 percent of total sales versus 25 percent in 2019, leveraging the company’s competitive digital platform and omnichannel capabilities. The active and fleece business was strong across its chains, and the company’s global known customer file expanded by 14 percent in the fourth quarter, ending the year at over 183 million.
Athleta surpassed $1 billion in sales, with 16 percent annual sales growth in fiscal 2020. The company improved store fleet economics by closing a net of 228 Gap and Banana Republic stores globally, ahead of its 225 target, while it refreshed the in-store environment in 71 Gap stores.
Gap Inc. ended fiscal year 2020 with $2.4 billion in cash, cash equivalents, and short-term investments, compared to $1.7 billion at the end of fiscal year 2019, providing sufficient liquidity to address remaining challenges from the coronavirus pandemic, support the company’s long-term growth strategy, and return cash to shareholders.
As of the end of fiscal year 2020, while Gap Inc. inventory was up 14 percent versus the year-ago quarter, markdown inventory ownership was below last year. The company said it was “pleased with its current inventory composition and is confident that first half assortments and the quality of the inventory composition will enable product margins in the first half of 2021 to be above last year’s levels.”
Full year free cash flow–net cash from operating activities less purchases of property and equipment–was negative $155 million compared with positive $709 million last year. Following the pinnacle of the coronavirus impact during the first quarter of fiscal year 2020, free cash flow during the last three quarters of the year was approximately $900 million.
For fiscal year 2021, the company expects diluted earnings per share to be in the range of $1.20 to $1.35.
The company expects fiscal year 2021 net sales to reflect mid- to high-teens growth versus fiscal year 2020, which assumes Covid-19 impacts persisting in the first half of 2021 and a return to a more normalized, pre-pandemic level of net sales in the second half of 2021. Gap Inc. expects to deliver operating margin of approximately 5 percent in 2021, which it said was consistent with its Power Plan 2023 objective of achieving at least a 10 percent operating margin by the end of 2023.
Longer in-transit times, due to port congestion, are expected to continue in the first half of 2021. As a result, end of second quarter 2021 inventory is anticipated to be up high-single digits versus last year.
Capital spending is expected to be approximately $800 million in fiscal year 2021. The capital spending will primarily support higher return projects including digital, loyalty, and supply-chain capacity projects along with investment in store growth for Old Navy and Athleta.
In fiscal year 2021, the company plans to open 30 to 40 Old Navy stores and 20 to 30 Athleta stores, as well as close approximately 100 Gap and Banana Republic stores globally.
Sales: Net sales in the fourth quarter declined 5 percent compared to last the previous year to $4.4 billion. COVID-mandated store closures in international markets and softer store traffic in select U.S. regions with stay-at-home restrictions impacted sales by an estimated 4 percent. In addition, strategically planned permanent store closures had an estimated sales impact of about 5 percent.
Online sales grew 49 percent compared with the year-ago period. Online represented 46 percent of net sales in the quarter, an increase of over 17 percent year over year. Store sales declined 28 percent. Comparable sales for the quarter were flat.
Old Navy global net sales increased 5 percent, with comparable sales up 7 percent. Online growth and significant improvements in markdown rate and units per transaction offset store traffic challenges. Momentum continued in casual and cozy categories, with strong performance in active, fleece and sleep.
Gap global net sales were down 19 percent and comparable sales were down 6 percent, as Gap Brand’s global footprint was meaningfully impacted by government-mandated store closures and restrictions in Canada, China, Europe and Japan. North America comparable sales were positive.
Banana Republic global net sales fell 27 percent and comparable sales were off 22 percent. The company said its new brand leadership team is moving quickly to ensure the assortment addresses consumer needs in the current, casual environment, as well as closely aligning inventory with demand.
Athleta net sales increased 29 percent, with comparable sales up 26 percent, reflecting strong demand for active apparel products. Promotional activity was well below a year earlier, driving margin expansion in the quarter. As part of Athleta’s long-term growth strategy, new product launches in the quarter, specifically inclusive sizing and sleep, continued to drive brand awareness and customer engagement.
For the year, Gap Inc. net sales declined 15.8 percent to $13.8 billion from $16.38 billion in fiscal 2019.
Earnings: Net income in the quarter improved to $234 million from a net loss of $184 million in the year-ago period.
Operating income was $134 million, or 3 percent of sales, leveraging 820 basis points versus last year’s operating margin, due to prior-year flagship store impairments and separation-related costs.
The company’s diluted earnings per share were 61 cents for the fourth quarter, including approximately 45 cents for non-recurring tax benefits and approximately 12 cents in impairment charges related to the Intermix business resulting from a strategic review.
Gross margin was 37.7 percent, an increase of 190 basis points versus last year, well ahead of the company’s prior outlook of being flat versus the year-ago quarter. Rent, occupancy and depreciation savings leveraged 400 basis points, as online sales increased and as the company continued to close unprofitable stores, favorably settle lease liabilities and derive benefit from rent negotiations.
Merchandise margins deleveraged 210 basis points, driven by 300 basis points of higher shipping costs associated with increased online sales and carrier surcharges. There were also increases in freight costs that put pressure on the product margin, but despite these increases, product margin expanded due to lower promotional activities.
For the year, Gap Inc. posted a net loss of $665 million versus net income of $351 million in fiscal 2019.
CEO’s Take: Sonia Syngal, CEO, said: “We faced one of the most difficult years in our company’s history and, throughout, our teams showed resilience and determination as we navigated unprecedented disruption in our industry to set a course for long-term growth. Our powerful brands moved to offense with purpose-led marketing and strength in relevant categories, like active and fleece, allowing us to gain meaningful market share quarter-over-quarter in a fragmented environment. This was enabled by our $6 billion online business and advantaged digital capabilities allowing us to expand our reach to more than 183 million customers this year. We are focused on executing against our Power Plan 2023 and delivering profitable growth in 2021.”
Source: www.sourcingjournal.com (4 Mar 2021)
7、Fashion Warns of Myanmar Sourcing Risks if ‘Democracy Is Not Restored’
The international fashion community has issued a call for the “quick and peaceful restoration” of Myanmar’s “legitimate civilian government.”
In a joint statement Tuesday, nearly a dozen fashion trade and labor organizations, including the American Apparel & Footwear Association, the Ethical Trading Initiative, the Fair Labor Association and Social Accountability International, urged the Burmese military to cease its violent and deadly crackdown on civilians and anti-coup protestors, release those who have been detained, restore internet service and reject proposed legal restrictions on internet activity as damaging to freedom of expression and assembly.
“This coup, and the military’s growing violence in support of it, threatens to reverse the progress and the thawing of relations between Myanmar and the international community ongoing since 2011,” the letter said.
Clothing and textiles, Myanmar’s top export earner after oil and gas, generated more than $2 billion in exports last year, according to the Myanmar Garment Manufacturers Association. The sector is a major jobs creator, too, with nearly 600 factories in the country employing roughly 500,000 workers.
“If democracy is not restored, the hard-fought social and economic progress of the country and the well-being of its people will be significantly put at risk,” the letter said. “In addition, the rights of ethnic minority groups and women following the coup are at particular risk.”
The coup, the organizations noted, has created a climate of uncertainty that is already rattling factory and cargo operations. These disruptions, coupled with the potential for sanctions beyond those imposed by the United States, could result in a re-evaluation of Myanmar as a “stable sourcing partner.”
Because companies sourcing from Myanmar must “place special emphasis on the safety and economic security of workers,” the letter’s signatories are asking its member companies and all businesses sourcing in the country to exercise “enhanced” due diligence and supply-chain monitoring to ensure respect for workers’ fundamental rights. Businesses, the organizations said, must ensure that workers’ rights to peaceful protest are respected without discrimination or penalization and that trade union representatives are neither victimized nor targeted.
“We urge brands, and their suppliers, to immediately undertake enhanced human-rights due diligence and responsible purchasing practices to identify whether they are doing business, directly or indirectly, with companies that are known to be owned or controlled by the military services of Myanmar, and take steps to sever these business ties, while making best efforts to protect workers that may be impacted,” the letter said.
The organizations don’t recommend that buyers suspend or sever ties with Myanmar, however. Rather, companies should “engage proactively” with suppliers in the nation, closely monitor the situation at all of their supplier factories and strive to honor all existing commitments made to factories in terms of both payments and in-production orders.
“Companies should ensure workers are paid for the work they do and extend lenient contract terms on delivery dates if needed, especially as production and export are likely to be negatively affected due to varying factors,” the letter said. “In addition, we urge suppliers to maintain an active dialogue with the elected worker representatives and trade unions in resolving differences and addressing the current crisis.”
The Clean Clothes Campaign, the garment industry’s largest consortium of labor unions and non-governmental organizations, likewise reiterated its support for workers in Myanmar on Wednesday with a joint statement of solidarity that appealed for allyship from garment companies operating in and sourcing from the Southeast Asian nation.
All garment manufacturers, brands and retailers active in Myanmar, the organization said, must publicly condemn the military coup, call for the restoration of democracy and the rule of law, protect and support the labor-rights movement and ensure that their business activities are not directly linked to the military.
“Brands and retailers must condemn the military’s announcement declaring illegal labor-rights organizations and prohibiting them to continue their activities,” the Clean Clothes Campaign wrote. “They must also voice and show their support for freedom of association and ensure their direct and indirect suppliers respect these principles.”
Brands, retailers and responsible business initiatives that focus on the garment industry must also respond immediately to complaints or information regarding human and labor-rights violations occurring in factories where they or their members source from, the group said. To enable the identification of risks and a swift resolution of complaints and human-rights violations, brands and retailers should disclose an updated list of their direct and indirect suppliers in Myanmar, including names, addresses, product types and number of workers.
“We call on garment brands, retailers and manufacturers to make these commitments public, to share them with their direct and indirect suppliers in Myanmar and with relevant business partners,” the organization said. “We urge improvement initiatives to publicly commit to these recommendations, to share them with their members and to closely monitor their corporate members to ensure they fulfill their obligations to respect human rights.”
In mid-February, brands such as Adidas, Bestseller, H&M and KappAhl signed a statement of concern facilitated by the Myanmar Centre for Responsible Business expressing their support for the people of Myanmar.
“As investors, we inhabit a ‘shared space’ with the people of Myanmar, including civil society organizations, in which we all benefit from respect for human rights, democracy and fundamental freedoms—including freedom of expression and association—and the rule of law,” the statement said. “The rule of law, respect for human rights and the unrestricted flow of information all contribute to a stable business environment.”
The signatories, the statement said, will “continue to work hand in hand” with local business partners that share the same approach. “We believe our business presence, practices and advocacy for a level playing field for all businesses, and our commitment to international human-rights standards contribute in a significant way to the journey of openness and democracy in Myanmar,” it added.
Source: www.sourcingjournal.com (3 Mar 2021)
8、Five things you need to know about China’s digital yuan
China’s digital currency is referred to by many names including digital yuan, e-yuan, and digital RMB, in addition to its official name, Digital Currency Electronic Payment (DCEP).
The DCEP isn’t a decentralized cryptocurrency like bitcoin. Instead, the digital yuan is fully backed by yuan reserves, with transactions verified by China’s central bank.
China is already no stranger to cashless payments, with many transactions conducted through digital wallets like Tencent’s WeChat Pay or Ant Group’s Alipay, though the government has been looking to increase its regulatory scrutiny of these fintech giants.
Currently, the digital yuan hasn’t been rolled out nationwide just yet, with only test trials taking place in various cities. Big names in tech, including e-commerce platforms such as JD.com have however already embraced the digital currency, and more are expected to follow suit.
To learn more about DCEP, check out our explainer video: https://youtu.be/ULru4-SpjqU
Source: www.kr-asia.com (3 Mar 2021)
9、Halide Alagöz on How Digital is Changing Sourcing and Supply Chains at Ralph Lauren
Ralph Lauren Corp.’s big initiative—its Next Great Chapter plan—has a key cornerstone that makes leading with digital remains a top priority.
Here, Halide Alagöz, executive vice president, chief supply chain and sustainability officer, discusses how Ralph Lauren Corp.’s transformation of its sourcing and supply chains is an example of the company’s mandate.
Sourcing Journal: How would you describe the sourcing and supply chain network when you joined the company in June 2016 and what were the top areas that you thought could be improved to further the company’s then Go-Forward Strategy?
Halide Alagöz: There has been significant transformation and disruption across sourcing and manufacturing in our industry. Given the size and complexity of Ralph Lauren’s supply chain, our focus has been on finding solutions to continue to evolve and accelerate these shifts at scale to become a more agile, resilient and sustainable business.
As a part of this, we first redesigned our sourcing network to shift from a geographically concentrated, brand-specific model to a globally integrated category sourcing model. We’re investing in innovations to drive more sustainable practices in our supply chain, collaborating with non-traditional partners to bring new solutions to our company and our industry. We’re also implementing operational changes to make our supply chain more agile and efficient through digitization. And we are deepening and diversifying our relationships with key strategic suppliers to ensure we have a balanced network of partners who share our values and standards to help us achieve these transformations, expand our global footprint and tap into new markets.
SJ: The company has been able to shorten the timeframe for some items from over a year to six-to-nine months and the new plan under CEO Patrice Louvet is to shorten production time even further. What considerations do you think about in terms of how to tighten up lead times?
H.A.: We approach development for all our products as a demand-driven model with four enablers. Firstly, we are intentional about the products for which we shorten lead times to ensure we maintain integrity and quality. Secondly, we examine how and where we source materials. Thirdly, we empower our key strategic suppliers and make sure we work with partners who are willing to continually evolve and optimize their processes. Finally, our last enabler is that we deliver end-to-end connectivity, which means that we approach product development with the end product in mind so that all the steps—from design, planning and buying to production and delivery—are connected. This approach ultimately enables us to eliminate waste and inefficiency out of the planning and manufacturing process and bring value to the consumer experience.
As a result of this, some of our products, intentionally so, are developed and produced in a matter of days and hours, instead of weeks and months. It would be remiss to not point out that embracing digitization across our supply chain and shifting production closer to demand have been key to driving the efficiency, accuracy and speed required to scale this model
SJ: What role does digitization and 3D Product assets have in sourcing and the supply chain? And what is Digital Product ID?
H.A.: Indispensable. Digitization and the adoption of new technologies has not only enabled us to deliver a wide-reaching yet more targeted customer offering but also significantly improved collaboration internally and externally across our business—from our manufacturing partners through to our consumers.
We are now using 3D design technology for select product categories. This is a transformative evolution that integrates and consolidates multiple steps at the beginning of the traditional design journey by creating a digital file with a 3D image and all product design information. The ability to provide the product design in this way with our manufacturing partners has helped us operate much faster and more sustainably by reducing the amount of time, materials and logistics that are usually generated by multiple rounds of physical product sampling.
In 2019, we started adding Digital Product Identities (Digital Product ID) to tens of millions of Ralph Lauren products as a way to power product authentication, further digitize our supply chain operations and deliver an enhanced consumer experience. By scanning the Digital Product ID on the product label with a smartphone, consumers can confirm whether their purchase is authentically Ralph Lauren, learn about the product detail and receive styling tips and recommendations. The use of Digital Product IDs has also helped us gain unprecedented, real-time visibility to track product from the point of manufacture and having this depth of insights has helped drive efficiency around orders and inventory management.
This mass-scale product digitization is a first for the retail industry. We’ve hosted the program on an agile platform so that as it scales, we can continually explore new features. This technology will enable a number of capabilities for our products, including track and traceability, a circular lifecycle through reuse, resale and recycling and a more personalized consumer experience.
Halide Alagöz talks how investments in digital are changing the sourcing and supply chains at Ralph Lauren Corp.
A look at a Digital Product ID from Ralph Lauren Corp.
SJ: The company has product lines segmented into development tracks, and a separate Fast Track production platform. Can you walk us through the different programs? And is Fast Track the platform where you test certain styles before making larger commitments on production?
H.A.: We took a look at all our product lines and analyzed what types of decision models were necessary for each. We then applied a segmented approach that has helped us find new opportunities to optimize our processes and increase speed-to-market without compromising on quality.
Last year, we created fast-track production models to design, produce and deliver products in just days/weeks versus months. While we aren’t looking to move our entire supply chain to such shortened lead times, we are using this model for projects where we want the flexibility to react very quickly and better position ourselves for various customization opportunities that arise. For example, around the holidays last year, we designed, produced and delivered an exclusive fleece sweater to a key wholesale customer in just 16 days, right in time for Black Friday.
SJ: What are the platform innovations that you are using to scale on-demand manufacturing?
H.A.: We are continually exploring new platforms and technologies to add to our pipeline of solutions for on-demand manufacturing. A few years ago, we launched a digital-first, on-demand customization experience, anchored by the Create Your Own Custom Crewneck Sweater, that gives consumers the opportunity to co-create a one-of-a-kind, personalized piece, knit to order and shipped within two weeks. Most recently, we expanded this Create Your Own (CYO) program to outerwear with the custom packable jacket.
In a way, this CYO experience represents the next phase of on-demand manufacturing as it nearly automates all the steps between concept and production by sending actionable product data directly to the factory at the point of design.
This solution presents us with a lot of immediate and future benefits—from reducing product inventory, material waste and eliminating the need for markdowns to allowing for greater agility and rapid fulfillment of high-quality products that meet our consumers’ desires and tastes.
SJ: In terms of diversification of the supply base, what are the key considerations in thinking about agility and resilience? What about supply-demand matching with each region or market? And how has that changed, if indeed it has, post the Covid-19 pandemic?
H.A.: Our ongoing efforts to reshape how we work and unlock agility and resilience across our supply chain put us in a strong position to control our inventory from the start of the pandemic and manage through these times of uncertainty. Diversifying our global supply base has led us to consolidate and strengthen our relationships with strategic partners as well as facilitate nearshoring opportunities so we have the flexibility to shift supply and production closer to the point of demand. This is a growth opportunity for us as it means creating less, faster, more sustainably and more responsively.
SJ: In thinking about the sourcing and supply chain in a post-Covid world, what changes or considerations come to mind? Is reshoring a possibility? What about the logistics in terms of where raw materials or inputs are located?
H.A.: As uncertainty persists, the ability to remain agile and react quickly through on-demand models has become a critical capability.
We recently refreshed our Global Sourcing Strategy to further diversify our Global Sourcing Network and facilitate nearshoring opportunities for our regions and channels. As part of this strategy, we also aim to source more locally, including components, raw materials and fabrics. This approach combined with our digitization efforts, not only allows us to gain speed to market, but also source and manufacture more sustainably while retaining product and brand integrity
SJ: Can you talk about some of the partnerships you have with your suppliers? How do you work with them on strategy and how do you keep track of those partnerships to make sure they’re meeting the company’s strategic goals?
H.A.: Having the right network of responsible, strategic partners who share our values, our ambitions and with whom we can collaborate to solve long-standing sustainability challenges is one of the most critical components of our supply chain. And last year, we implemented a new supplier engagement strategy to help us drive transparency, efficiency and accountability around our partnerships. We regularly evaluate these relationships based on the performance and potential of our partners, which we define in terms of their business execution, commitment to citizenship and sustainability as well as product integrity
SJ: Sustainability and sourcing transparency are becoming more important considerations for consumers in choosing what to buy, as well as for brands in keeping brand loyalty. What are some of the company’s key goals at the supplier level concerning the environment and the community where each operation is located?
H.A.: Increasing transparency across our supply chain is a priority for us and our Digital Product ID platform is one of the solutions we are leveraging to improve tracking and traceability.
As for our approach to sustainability and sourcing, we’ve defined our commitments in Design the Change, our strategy for citizenship and sustainability at Ralph Lauren.
Through our own efforts, and in collaboration with partners and experts, we are taking steps to mitigate our environmental footprint. Our vision for the future would be to produce only what is needed and eliminate overproduction altogether through shorter lead times and agile production models powered by digital. Our teams are mapping out and reducing the impacts of our energy, emissions, water and waste across our operations and supply chain. We’ve also joined other leading peers and companies as signatories to the We Are Still In declaration and the UN Fashion Industry Charter for Climate Action, pledging to limit our emissions in line with the Paris Agreement goals. We are also members of the G7 Fashion Pact, a group of fashion leaders working to stop global warming, restore biodiversity and protect the oceans.
As it relates to people, we aim to enrich the quality of work and life for all workers in our supply chain. One of the critical reasons why we maintain long-standing relationships with our strategic suppliers is so we can partner more closely and transparently for the benefit of the people who make our garments. This work is one we continue to improve upon. While all our efforts aim to ensure workers are treated and compensated fairly, more specifically, one of our goals is to make empowerment and life-skills programs available to 250,000 workers across our supply chain by 2030. Furthermore, we have committed to increasing women in factory leadership by 25 percent by 2025 as supervisor positions are mainly held by men in most factories despite women making up, on average, half of the apparel supply chain workforce.
SJ: Looking ahead, and thinking in retrospect on the disruptions this year, what keeps you up at night as you plan for 2021?
H.A.: I mentioned this earlier, but uncertainty and volatility in the supply-demand space are here to stay. Therefore, making sure we have the right balance of agility and resilience to face future unexpected global disruptions is so important. And, as part of this challenge, we’re also accountable for ensuring that we, as a company, along with our partners and suppliers, are acting responsibly during this unprecedented environment.
As an industry, we’re all trying to solve the same challenges, from improving transparency and traceability to reducing our climate impact across global supply chains. If we want change to happen, we need to partner together to find and align on these solutions.
Source: www.sourcingjournal.com (26 Feb 2021)
10、H&M Group invests in green dyeing and finishing specialist
H&M Group has invested in Alchemie Technology, a global disruptor of textile dyeing and finishing technology, to support the firm's commercial roll-out and accelerate the transformation of the profile of textile manufacturing worldwide.
Source: www.just-style.com (1 Mar 2021)
11、Indonesia to Hit China, Bangladesh With Import Duties
Citing the fallout from the pandemic and a subsequent decline in gross domestic product (GDP), the Indonesian government has decided to impose a safeguard tax to help the nation’s garment industry.
The duty will range from 44 cents to $11.29 per piece on ready-made garments imported from China, Vietnam, Singapore and Bangladesh, and is expected to be imposed within the next 90 days.
Last year, the Indonesian Textile Association (API) anticipated a compound annual growth rate (CAGR) of 5 percent for the textile and garment sector, but Covid-19 wreaked havoc with those plans, with the country’s GDP dropping for the first time since the 1998 Asian financial crisis, contracting 2 percent year-over-year in 2020.
However, analysts believe that the path to recovery has already begun, spurred on by recovering household and capital spending. The government has also been working on helping apparel manufacturers by improving critical infrastructure like highways and ports, and helping ease business in terms of incorporation procedures under the recently introduced Omnibus Law.
While Indonesia has been one of the top 12 countries for apparel manufacturing and sourcing over the past two decades, global brands have also been paying attention to the fast-growing domestic market there. This is a two-sided coin, as many wonder if imposing a safeguard duty will dent the nation’s $16.4 billion apparel market at home.
Many analysts believe that the growing number of consumers in Indonesia (the world’s fourth-most-populous country, with a median age of 28.6) could turn to more upscale options in terms of shopping for both local and globally manufactured apparel.
An estimated 30 percent of Indonesia’s total production goes toward meeting domestic demand, with the remainder exported to the U.S. (36 percent), the Middle East (23 percent), the EU (13 percent), and China (5 percent).
Meanwhile, the government is taking no chances in enhancing protection for the local apparel industry. Deliberations to impose the safeguard have been ongoing since November, after authorities launched a “safeguard investigation” that sought to determine “whether increased imports of a product are causing, or threatening to cause, serious injury to a domestic industry,” according to the World Trade Organization (WTO).
WTO noted that when local production is threatened by excessive imports, the safeguard measures can be imposed.
Bangladesh, which already faces a stiff 25 percent tariff for apparel imports into Indonesia, is set to be significantly affected when the duties take effect.
China, Vietnam and Singapore currently have duty-free access to the country.
Industry heads in Bangladesh are opposing this additional blow to its garment industry, which has been suffering outsize losses due to cancellation of orders from brands in the EU and the U.S.
“Imposition of additional duties adds to the burden on the industry,” said Mohammad Hatem, vice president, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Concerned about the fallout and impact on the Bangladesh sector, which exports an approximate $30 million worth of apparel to Indonesia, Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that imports of $187 million worth of textiles in 2019 into Bangladesh from Indonesia put the balance in favor of Indonesia either way. “The import of textiles by Bangladesh, which goes to the production of export-oriented garments, is allowed to enter duty-free here,” she said.
Source: www.sourcingjournal.com (2 Mar 2021)
12、South Africa buy local campaign gets duty-free textile boost
Efforts to encourage South African retailers to buy more locally-made clothing – and boost manufacturing jobs – have taken a step forward after the government approved the duty-free import of woven fabrics to be used in domestic production……
Source: www.just-style.com (26 Feb 2021)
13、New Sri Lanka textile park eyes post-Covid exports
Sri Lanka is making a significant step to increase the share of locally-sourced raw materials in clothing made in the country by setting up a new fabric processing park..….
Source: www.just-style.com (4 Mar 2021)
14、The running list of 2021 retail bankruptcies
Belk and Paper Source are the latest retailers to file for Chapter 11. The department store exited bankruptcy within a day.
The pace of bankruptcies in retail hit a high-water mark last year, after years of elevated filings that tracked with a major shakeout in the industry.
In the years leading up to 2020, those retailers that were forced to reorganize, sell themselves or liquidate entirely were typically the heavily indebted, often from private equity buyouts. The pandemic's massive disruption to sales and consumer demand brought financial strain, and sometimes ruin, to a much wider swath of the industry. Retailers that might have chugged along for years filed as they ran into liquidity shortages or faced eviction over unpaid rent.
COVID-19 is still with us. So are all of its consumer habit-changing effects. While millions have already been vaccinated, with the number jumping every day, millions more are still avoiding offices, parties, travel and all manner of other social events. The tide could shift over the course of the year, which means consumers could start refreshing their wardrobes and return to stores in greater numbers. But there are still many unknowns in the year ahead.
Retail companies are still under strain. According to BDO survey data, 42% of retail CFOs reported that they expect to restructure or reorganize as fallout from the COVID-19 pandemic persists into 2021. That can mean a lot of things, but it includes bankruptcy. A similar share of CFOs said they expect revenue declines in the year ahead.
To stay out of bankruptcy court, retailers will need liquidity and working capital, they'll need to adapt to an ever-shifting landscape that is more digital than ever before, and they'll need some luck. Already this year, some companies have come up short, and more are likely to follow.
Paper Source
FILING DATE: March 2, 2021
WHAT YOU NEED TO KNOW:
In early March 2020, Paper Source announced a major expansion after acquiring 30 prime store locations from a fallen rival, the stationery and paper goods specialist Papyrus, as that retailer wound down. Later that month, the world turned on its head as the COVID-19 pandemic sparked stay-at-home orders and mass temporary store closures, including all of Paper Source’s stores.
The company had been healthy and growing before the public health crisis. But the sales decline for the year led to liquidity constraints as rent bills piled up. In March, the retailer filed for bankruptcy with a plan to close at least 11 stores and sell itself. On filing, it had a credit bid from current lenders to serve as a stalking horse in a proposed Chapter 11 auction of the company.
Belk
FILING DATE: Feb. 23, 2021
WHAT YOU NEED TO KNOW:
Belk was among those retailers especially vulnerable when the COVID-19 crisis hit. Saddled with nearly $2 billion in debt, a legacy of a leveraged buyout, the southern department store chain’s liquidity fell by 70% last April. The retailer, while working toward a digital transformation, also is heavily dependent on store traffic; its sales fell 32% between March and December 2020.
To buttress its finances, the company forged an agreement with lenders that allowed it to shed $450 million in debt, push out maturities, get new capital and let private equity sponsor Sycamore Partners retain majority ownership. The deal, according to the company, hinged on a lightning-quick trip through bankruptcy court. Belk aimed for 24 hours between filing and emerging, reaching out to creditor groups to gain their buy-in. A federal bankruptcy judge signed off on the deal, clearing the way for a speedy exit from Chapter 11 despite alarms raised by the U.S. trustee assigned to the case.
Solstice Marketing Concepts
FILING DATE: Feb. 17, 2021
WHAT YOU NEED TO KNOW:
With 66 retail stores, Solstice Sunglasses bills itself as the second-largest specialty retailer of sunglasses in the U.S., focusing on high-end brands like Dior, Gucci, Jimmy Choo, Kate Spade and Ray Ban.
The luxury boutique said in a press release that it had been hit financially by the COVID-19 pandemic, with sales down more than 50% from 2019 and "limited relief to compensate for stores being closed and shoppers afraid or unable to shop."
The company filed for Chapter 11 in February with the aim of reorganizing and emerging from bankruptcy intact as a going concern. Solstice hired RCS Real Estate Advisors to evaluate its lease footprint but did not immediately say if or how many stores it planned to close. At the time of filing, Solstice CEO Mikey Rosenberg said in a statement that his team was "optimistic about reorganization as we continue to see increasing business in our stores as COVID restrictions are lifted and in the new fashions that our vendors are providing."
L'Occitane
FILING DATE: Jan. 26, 2021
WHAT YOU NEED TO KNOW:
Like many retailers since the pandemic began, the U.S. arm of L'Occitane found itself with declining brick-and-mortar sales and expensive leases on the one hand, and rapidly growing online sales on the other.
The managing director for the beauty brand's North American region said that its lease obligations amount to $30.3 million annually across its 166-store footprint. With brick-and-mortar sales falling 56.5% year over year in the months between April and December, the burden of those costs ballooned very suddenly. The company, whose parent was founded in 1976 in Manosque, France, filed for Chapter 11 with immediate plans to close 23 stores and restructure around a smaller footprint and its digital business.
Christopher & Banks
FILING DATE: Jan. 14, 2021
WHAT YOU NEED TO KNOW:
Founded in 1956, women's apparel seller Christopher & Banks specializes in value-priced women's apparel and targets smaller markets with a pre-bankruptcy store footprint just shy of 450.
The COVID-19 pandemic took a huge toll, decreasing demand among its core customer and adding stress to its finances. The company was facing eviction from some stores and, in January, defaulted on key loans and the lease on its headquarters. Christopher & Banks filed for Chapter 11 in mid-January with plans to close all of its stores and sell off its e-commerce business. An affiliate of Hilco Merchant Resources, and a lender to Christopher & Banks, emerged as a stalking horse bidder on its digital business.
Loves Furniture
FILING DATE: Jan. 6, 2021
WHAT YOU NEED TO KNOW:
Created last year out of some of the parts of the liquidated Art Van Furniture, Loves Furniture immediately ran into problems. For one, it was without a permanent logistics hub, with another company picking up Art Van's Michigan Warehouse. Loves contracted with a third-party logistics company, but said later that shipping issues left its stores less than ready when they opened.
Issues getting orders to customers deepened the company's problems, hurting its sales and, with them, its underlying financials. The logistics provider sued Loves after the retailer fell behind on its payments. It filed for bankruptcy in January in hopes of restructuring around a smaller footprint.
Source: www.retaildive.com (3 Mar 2021)