Markets

U.S. Fashion Prices Continue to Fall Even as Tariff Pressures Loom

Fashion Hit Hardest as European Consumer Confidence Dips

More than half of European consumers are pessimistic about their economies, while the number of people who are confident they can maintain their standard of living for the rest of the year is falling, according to BCG's latest report.

French Senate Cracks Down on Ultrafast Fashion with Anti-Shein Law

Just over twelve months after it passed the first test in the country's lower house, the anti-Shein bill today got the green light from the Senate as well, with a total of 337 votes in favor and only one vote against.

Pakistan Implements Tariff Reform to Boost Exports

In five years, the country intends to increase its exports by US$ 5 billion. The measures will come into force on July 1 and are already being opposed by all local producers accustomed to protectionism.

The USA “great again”: fashion's share of spending hits highest level since 2014

In the second quarter, private spending on clothing and footwear grew to 62% year-on-year and 20% compared to the same period in 2019, before the pandemic.

Rising costs and changing from ship to plane to avoid port collapse have led the industry to expect three more months of falling margins. Adidas estimates a € 500 million impact in the second half of the year.

The employees of the manufacturing hubs in Asia are earning by 25% less than a year ago and many of them had to get into debt to survive.

Organic cotton has become a synonym for sustainability, but several scandals with fake certifications in India and forced labor in China question this raw material.

Average rents along Manhattan’s 16 retail corriders have being declining for eleven consecutive quarters. In the UK, retail store vacancies have reached its six-year high.

When consumers work from home, they reallocate spend similarly to consumers in retirement, and apparel is the category that experiences the deepest decline.

The British Parliament already alerted a year ago about working conditions in the city, which became the second richest in Europe thanks to its textile industry.

Fashion groups that depend on these two markets follow closely the evolution of the pandemic and the business structure in both countries and are already beginning to think of alternatives.

The IMF expects a “partial” recovery in 2021. The cumulative loss to global GDP over 2020 and 2021 could be around 9 trillion dollars.

Consumers have cautiously begun to return to stores, and security measures such as temperature controls and use of face masks are imposed in shopping malls.

In Italy or Spain, two of the most affected countries, the decrease in sales could reach up to 40%, according to Boston Consulting Group data.

Before the coronavirus outbreak, consumer confidence was already decreasing in the eurozone, while in Japan and the United States it was recovering.

The decrease in production, together with the fall of demand and the paralysis of cotton exports to the United States are some of the factors that motivated the price fall.

American international investment bank, Goldman Sachs has lowered the forecast of the main economies in the Eurozone and anticipates its GDP to plunge by 1.7%.

The current pandemic has led to nationwide lockdowns. For American retailers, the path will be even harder.

According to the American rating agency, the most exposed sectors are those linked to travel and discretionary spending, such as fashion or retail, excluding the alimentary sector.

Italy assigned 25 billion euros (27.8 billion dollars) to moderate the pandemic’s consequences, while France ensured that “no companies would be left exposed to the risk of bankruptcy”.

Industrial production, meanwhile, has fallen by 13.5%, while investment in equipment has decreased by 25%, according to the country’s statistic office.

Italy, France, and Spain have decreed the closing of shops, while most fashion giants have shuttered their stores in North America.

The western Asian country has about one hundred confirmed coronavirus cases, consequently joins the measures taken by Italy, Spain, and the United States during these past few days. Only grocery stores and pharmacies will remain open.

The crisis may presents an opportunity for the channel, but not for the sector because the consumer will prioritize the purchase of basic foods unless the current situation lengthens.

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Modaes Global - Markets | Macroeconomic news related to the fashion business. All the news of macroeconomic indicators of the textile and fashion industry. - Modaes Global.

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