Egypt, Madagascar, Morocco and Tunisia Impact of COVID 19 on the Egypt’S Apparel Sector

Matthias KNAPPE, International Trade Center 08 December 2020

Impact of COVID-19 on T&C Egypt, Madagascar, Morocco and Tunisia Impact of COVID 19 on the Egypt’s Apparel Sector

51% of the companies surveyed Survey findings that are consistent 10% have applied salary cuts. 80% of 40% with recorded export figures (29% Overall companies who cut salaries did so by Average loss January to August 2020) estimated job 25% in revenues losses due to C19

While 70% of the companies 56% Around half of all companies have had at confirmed having liquidity problems, 0% ZERO % took loans due to COVID Order least 50% of their orders cancelled Took loans cancellations

50% At least half of the companies have 30% 76% of the survey respondents foresee Switch to switched to medical textile products Loss of orders this loss. medical textiles till end of 2020 Impact of COVID 19 on the Tunisia’s Apparel Sector

of factories have reduced their of factories focussing on the local 52% economic activity by half or more 70% market

While all enterprises reported of factories switched to PPE - 87% of 50% revenue losses SMES are 40.7% these export PPE of SMEs are disproportionately affected by the affected by crisis export losses

of factories said that they had financial difficulties to pay workers, of factories said they had fabric stock rents, suppliers, taxes, etc. they could not use anymore 33.1% 50% 32% of enterprises applied salary cuts Impact of COVID 19 on the Morocco’s Apparel Sector

13% of annual orders delayed (40% 9% among survey factories). Companies of factories are definitively shutdown of annual have had less than 2 weeks visibility 1% orders on orders cancelled

of companies in the textile and of factories switched to the leather industries reduced their production of PPE 70% 85% workforce

of enterprises have recovered their was the average capacity utilization 44% entire workforce 49% rate of factories Impact of COVID 19 on the Madagascar’s Apparel Sector

of order postponed but not cancelled Paying for increased transportation 20% - All companies 30% Overall decrease of orders cost (local and air)

By applying -voluntary salary cuts All companies - reduced working shifts 15- Annual revenue drop for enterprises reduce labour - sending workers to technical costs unemployment 50% - compulsory annual leave

Increased CSR commitments Increased production of PPE (energy efficiency & employee capacity building) Apparel exports from selected countries Apparel exports from beneficiary countries in local currencies Jan - June 2020 as compared to 2019 (Egypt Jan - Oct)

YoY (2020 over 2019) Loss Percentage 0.

-7.5 -18.8% -18.3%

-26.2% -25.95% -15. Percentage Loss Percentage -22.5 -23% Jan - June 2020

-30. Egypt Madagascar Morocco Tunisia Data source: Tunisia: Direction Générale du Textile et de l'Habillement Ministère de l'Industrie et des PMEs Morocco: AMITH Egypt: Apparel Export Council Madagascar: Groupement des Entreprises Franches et Partenaire Madagascar US Apparel Imports Jan-Oct 2020 compared to 2019 Comparative Study: Bangladesh, China Turkey, Egypt, Jordan, Morocco, Madagascar, Tunisia

YoY (2020 over 2019) Loss Percentage 0.

-11.66 -17.73 -17.56 -20.52 -12.5 -31.28 -35.02 -42.33 -25. Percentage Loss

-37.5

-50. Bangladesh China Turkey Egypt Madagascar Morocco Tunisia

Drop in YoY apparel imports from the world to US: -25.56%

Data source: https://otexa.trade.gov EU Apparel Imports Jan-June 2020 compared to 2019 Comparative Study: China, Bangladesh, and Turkey, Egypt, Morocco, Madagascar, Tunisia

YoY (2020 over 2019) Loss Percentage 0. -2.62

-17.5 -36.09 -34.28 -40.69 -48.47 -47.79

-35. -68.65

-52.5 Percentage Loss

-70.

-87.5 Bangladesh China Turkey Egypt Madagascar Morocco Tunisia

Drop in YoY apparel imports from the world to EU: -30.86 %

Data source: emergingtextiles.com based on Eurostat; Data in Euros Outlook and Country Plans for 2021 and Beyond Common characteristics of all 4 countries

Country branding and Low Visibility marketing Digitalisation & Product Diversification e-commerce PPE & Niche products

Nearshoring Reducing costs

Market Diversification (USA, Strong focus on Europe & ACFTA) Sustainability GTEX - MENATEX Resource Efficient & Circular Production Processes in the textile and clothing sector Global Webinar – 8th December

Ann-Kathrin Zotz Delphine Clement Main objectives of the resource efficiency and circular production (REPC) component

• Support SMEs in the T&C sector to use resources more efficiently and to move towards circular production (water, energy, chemicals, waste); • Raise awareness on the significance of compliance with sustainability requirements of international buyers to establish and maintain supply relationships; • Contribute to the training of experts who can support SMEs in the design RECP measures and strategies; • Enable institutions to support SMEs on becoming more resource efficient and implement circular production processes. 3

Why going green? – Benefits for companies

Economic and financial • Make savings by optimizing resources consumption and management • Reduce resource dependency and associated risks • Comply to environmental regulations • Access new financing

Business opportunity • Comply to environmental sourcing requirements from international buyers • Develop new products and services • Improved reputation above unsustainable companies

Environmental • Contribute to fight climate change by reducing CO2 emissions and environmental footprint. Global sustainability trends in the T&C sector

Trend: Demand for increased traceability, transparency and sustainability

- Where, by whom and how a garment was made? - Which raw materials were used? - What is the environmental footprint?

Drivers: Consumer facing campaigns, complexity of production networks (fragmented supply chain + geographical distances), company sustainability policies

Private sector response: sustainability goals and stricter requirements “use of a 100% sustainable cotton (organic, BCI and/or recycled cotton) before 2025” – Inditex Group

“By 2030, H&M Group aims for 100% recycled or other sustainably sourced materials”

“100% of PVH suppliers will meet or exceed all of its social and environmental standards by 2030”

Over 90% of targets set by companies cover environmental- related impacts  Global sustainability trends in the T&C sector

Trend: Stricter environmental and supply chain related regulations and sourcing requirements

 International textile and fashion retailers and brands are increasingly are revising their sourcing requirements to more stricter ones to meet consumer demands and regulations COVID-19 accelerating further sustainability trends in T&C sector

Two main COVID-19 related drivers: • Reduced demand leading retailers and brands to consolidate further their supplier base • Financing stimuli available in origin and destination countries are provided against social and environmental targets under the “build back better” agenda

 Retailers and brands further enhance their sustainability related goals (circularity, carbon emissions, water footprint)  Increasingly select to engage only with “best performers” commercially, social and environmentally ITC RECP approach

Efficiency benchmark values regarding waste production, energy and water consumption are set at the factory level using representative sample of companies

1 Company data collection on energy and water consumption and waste RE baseline production data collection

2 Gap assessment on efficiency of resources management and Benchmarking opportunities for improving production processes by comparing data to and gap benchmark values assessment

3 RECP Measures Identification et planning of RECP measures Cost-Benefit Analysis

4 RECP RECP Strategy design and communication plan Strategy RECP component – Countries and SMEs

10 14 16 21

• Beneficiaries: 61 textile and clothing SMEs

• Sub-sectors: Fast Fashion, Denim, Knitwear, Technical Textile, Lingerie

• Trainers: 15 RECP coaches RECP measures identified

Install waste water treatment plant Reduce water volume of dye baths Reuse water from dye baths

Identify and remove compressed air leakages Insulation of hot surface areas Install LED light bulbs Revise contract power and tariffs Install a solar power system for electricity generation Replace old sewing machines (put in place a maintenance and repair system)

Install monitoring system of waste production, recycling and disposal Establish contracts with licensed partners for waste recycling Textile upcycling: cleaning cloths, re-usable towels… Preliminary results

JORDAN • 50% drop in heating system, less maintenance, and better utilization for the pressing employee LED will cut 60% of the lighting energy cost, and will decrease 20 of HVAC energy consumption • New Machines consumes 30 % less energy, less maintenance, and more productivity • LED will cut 60% of the lighting energy cost, and will decrease 20 of HVAC energy consumption

MOROCCO • Extension of the hot water storage capacity resulting from the cooling of the machines by the installation of a vertical storage tank for water re-use  27 500 m3 water saved, avoided costs of USD 50 K • Use of a heat exchanger to recover thermal energy from effluents and cool wastewater before it arrives at the water treatment plant  15 000 m3 water saved, avoided costs of USD 27k • Use of dyeing machine tanks for reuse of rinsing baths  15 000 m3 water saved, avoided costs of USD 27k • Install LED light bulbs  41 706 Kwh saved, avoided costs of USD 4000 • Off-peak consumption analysis  97 561 Kwh saved, avoided costs of USD 8000 Examples of RECP best practices – Jordan: waste recycling

Fabric rolls

Carton Plastic Fabric Examples of RECP best practices – Jordan: waste recycling

1)From Grinding off cuts the to fabrics fillings for pillow2) Production cases and of matrasses fillings 3) Pillow cases and matrasses being filled

1) Compacting the paper 2) Cardboard production 3) Reuse for packaging From paper waste to cardboard for packaging Examples of RECP best practices – Tunisia: Recycling of plastic waste

1) Waste collection 2) Separation by type 3) Reduction of volume

4) Plastic scrap 5) New product: tubes Examples of RECP best practices – Tunisia: Recovery of sludge from wastewater

1) Landfill 2) Sifting 3) Blending 4) Moulding

5) Drying 6) Marketing 7) Installation 15

Examples of RECP best practices – Jordan: water purification

Increasingly demanded by international buyers to reduce water footprint and do not release of harmful chemicals to the environment Lessons Learnt

Making the business case for sustainable business practices is key to drive private Financiers Technology sector action, which is enhanced through: (banks, providers investors) - Quantitative analysis of each sustainability measure, which translates into bankable projects International - Clear linkage between the financial and Beneficiary buyers commercial implications of Government SME unsustainable business practices - Working within the ecosystem of different stakeholders in the T&C sector (including technology providers and Other relevant Associations financiers) stakeholders RMG INDUSTRY DURING THE CRISIS OF COVID-19

DEC 2020 Asif Ibrahim Vice Chairman Newage Group of Industries

Director Bangladesh Garment Manufacturers and Exporters Association (BGMEA) THE FIRST WAVE Export drops to record low in history, as April, May and June (y-o-y) registered -85%, -63% & -11.4% growth respectively

Month-wise RMG export growth, FY2019-20 vs. FY2018-19 (Y-o-Y, values in US dollars)

60.00 51.65

40.00 36.96 21.72 14.88 13.02

20.00 11.84 9.70 9.57 8.68 3.14 2.76 1.26 0.00 July

May 2018-19 June April 2.98 3.49 4.28 4.70 - - March -20.00 - - August January October 2019-20 February 10.76 11.43 11.46 11.98 - - - - December November September 19.79 20.14 - -40.00 -

-60.00

-80.00 62.06 -

-100.00 85.25 - FY2019-20 export growth recorded lowest ever, i.e. -18.12%

RMG Export Performance Comparison of last 20 fiscal years (values in US dollars) 50% 43%

40%

30% 23% 16% 17% 16% 20% 15% 14% 12% 13% 13% 11% 10% 9% 8% 7% 7% 10% 4% 1% 0% 0% -6%

-10% 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

-20% -18%

-30% Freefall in export

The fiscal year 2019-20 ended with US$ 27.95 billion of RMG exports, which was recorded US$ 34.13 billion during the same period last year, the year on year growth was -18.45%.

The decline in export in FY2019-20 in actual amount is US$ 6.3 billion, which is around one-fifth of our export last year. We lost 3.73 billion worth of export just in last quarter, i.e. April-June 2020.

Growth of RMG export during July-September is 0.85%, that means export was leveled off on y-o-y basis, this was mainly contributed by the reinstatement of orders.

Export started plummeting again from October 2020. RMG Export Order Cancellations & Kept on Hold by Region

Canada Europe $ 52 mil $ 1930 mil

Non-Traditional Markets U.S.A. $ 620 mil $ 574 mil Other impacts caused by COVID-19

Financial loss Non-payment by buyers, discounts, deferred payment, deferred shipment, forced loan to pay B/B LC, buyers’ bankruptcy, uncertainty over payment receivables.

Comply Health Protocol Increased unit cost Compliance to health protocol of production, adopted to prevent against declining contamination also has certain unit value cost at factories’ end. Sudden Disruption Sudden disruption in the supply chain like the unavailability of accessories and processing requirement make the operations inefficient. PRICE CONTINUES TO FALL

According to NBR In US Market In Europe Market -1.79% -1.84% -1.64% FY2019-20 vs. 2014-15 2019 vs. 2014 2019 vs. 2014 Unit price is falling severely in recent months

BD’s RMG Export Unit Price Trend US$ / KG, Y-o-Y 2020 vs 2019 4.99%

6.00%

4.00% 0.46% 2.00%

0.00% - - 0.94% 1.10% July - May June April

-2.00% 1.72% - - March - 2.30% August 2.42% 2.56% January October February - - - 5.23% 4.15% 5.19%

-4.00% November September

-6.00%

Source - NBR HOW HAVE WE RESPONDED

Cautious re-opening of Engaging and negotiations Stimulus package and policy factories by enforcing healthwith global brands with supports by the Government protocol support of media MAINTAIN AWARENESS ON HYGIENE AND HEALTH PRACTICES BGMEA’s post COVID health response – at a glance

RMG factories remained closed during 26 March-26 April: General leave was declared by Government of Bangladesh from 26 March – 26 April (through subsequent extensions). Export oriented industries were allowed to operate. Most of the RMG factories were closed respecting the advise of BGMEA . Staggered approach to re-open factories: tripartite committee (involving government, trade unions and business organizations) the factories were decided to be opened up gradually following a very strict, zone based, staggered approach and maintaining the highest possible safety standards.

Cautious steps followed in re-opening: The re-opening starting with manpower of only 30% of factory capacity, following strict safety protocols, and ensuring the factories are joined by the workers only who live in the adjacent localities. Ensuring compliance to BGMEA’s factory opening guidelines: Compliance to health protocol adopted to prevent contamination being monitored by BGMEA’s audit team. Besides, we have partnered with Inspectorio to help member factories mitigate COVID resurgence. Tests: State of the art PCR COVID test lab for the RMG workers, In addition there are 2 sample collection booths operated by BGMEA for suspected COVID patients working in RMG factories. Counseling & awareness raising: BGMEA and Maya have signed an agreement to provide free services to help prevent and limit the spread of Covid-19, while also addressing general medical and mental health related issues amongst ready-made garment (RMG) workers. SIGN OF THE SECOND WAVE -90.00% -80.00% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 10.00% 0.00% Jan -2.98% Feb After After recovery slight a from freefallthe July during -4.28% is plummeting again indicating the early impact of of impact early 2 the the again indicating is plummeting Month Mar -20.14% - wise RMG export growth, Jan growth, export RMG wise Apr -85.25% (Y- o - May Y, dollars) US in values -62.06% Jun -6.63% Jul - -1.98% vs. FY20Nov FY19 of - Aug September, export 2.58% nd Sept

3.09% wave Oct -7.78% Nov -2.66% Jan-Nov

-17.64% The retail clothing stores sales in USA and EU also showing similar V shape recovery, yet retail sales growth is still slashed by a quarter.

Retail clothing sales in USA Retail sales in EU (YoY index of clothing stores’ retail sales) (YoY index clothing stores’ retail sales)

10% 10% 2% 1% 1% 0% 0% -10% Jan -Feb3% Mar Apr May Jun Jul Aug-4% Sep Oct -10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct -9% -9% -20% -13% -20% -13% -17% -18% -20% -30% -24% -23% -30% -40% -40% -36% -50% -50% -60% -49% -60% -55% -70% -62% -70% -80% -80% -90% -86% -78% -100% -90% WAY FORWARD

Legal protection to Extension of the Maintain the health deal with terms of the stimulus and hygiene bankrupted buyers, packages, and practices at develop insolvency reevaluating the workplace, and resolution Engaging brands. needs of the industry effectively design a mechanism, and loss in the backdrop of social protection financing mechanism 2nd wave and global scheme for working to deal with forced economy. class. loans. SUSTAINABILITY AND THE ROAD AHEAD Pledge for workers’ education The seven pledges Pledge for workers’ children’s education towards a greener, more

Pledge for mental health humane industry are encompassed with one Pledge for Sustainability single idea: Pledge for tradition and heritage Go Human, Go Pledge for Workers’ Health Green

Pledge for Efficiency Emerging realities

INADEQUATE CAPACITY OF BACKWARD LINKAGE SECTORS: Capacity-wise there is still 20% shortfall for knitted fabrics and 60% shortfall of woven fabrics. This is one of the major drawbacks for the industry to qualify for EU GSP in post 01 LDC phase as we would need to comply double transformation rules of origin. This also indicates huge opportunity for investment in primary textiles especially in woven and MMF based.

Globally geopolitical risks (e.g. USA-China, Hong Kong-China, and Japan-South 02 Korea), trade tensions and concerns about shifts towards more protectionist policies, yet the EVFTA is a glaring example of prudent commercial diplomacy.

Changes expected in the post-pandemic market in terms of e-tailing, 03 continued upsurge in e-commerce with less physical assets, and the resulted changes in the supply chain have both pros and cons. The businesses of SMEs could be remodeled to cater to niche market where quantity is less.

Fourth industrial revolution, the paradox of jobs and competitiveness, and 04 opportunities through re-skilling and up-skilling. GREEN GROWTH

125 LEED Green garments factories certified by the U.S. 125 Green Building Council (USGBC) CERTIFIED

9 out of the worlds top 10 garment factories are in Bangladesh 34 PLATINUM 500 more factories are in the process of getting LEED certification

BGMEA joined the UN’s Fashion Industry Charter for 79 Climate Change with an ambition to reduce GHG GOLD emission by 30% till 2030.

BGMEA pledged Green Button – A State Owned Global 10 Seal by German Government. SILVER OPPORTUNITIES Opportunities: As per WTO data of 2019, Bangladesh is posited second holding 6.83% share of the global market. The share has increased consistently in last 15 years, i.e. from 2.47% in 2005. There are opportunities to further penetrate in to global market, which requires a different strategic approach.

Export trend of major clothing exporting countries Global clothing export share, 2019 40.00 35.00 31% 30.00 Bangladesh 46% 25.00 Viet Nam 20.00 India 7% 15.00 Turkey 6% 10.00 Indonesia 5.00 2% 2% 3% 3% 0.00 China Bangladesh Viet Nam India

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Turkey Indonesia Cambodia Others THANK YOU Current Situation of China's Textile & Apparel Industry Outlook of International Cooperation in Post Epidemic Era

Mr. Xu Yingxin Vice President of China National Textile and Apparel Council Chairman of the Sub-Council of Textile Industry, CCPIT 01 Current Situation of the Industry

02 Overview of the Industry’s Outward Investment

03 Outlook of Cooperation in Post Epidemic Era Part 1 Current Situation of the Industry ⚫ Complete Industrial Chain

Weaving Natural fiber (colored weaving) Garments planting/breeding Dyeing Spinning printing (colored Knitting Home textiles (colored knitting) and spinning) finishing Man- Industrial textiles Oil exploitation made Non-woven and refining fiber

Textile machinery

＞34,700 ＞ 4,943 billion RMB ＞50% Enterprises Above Designated Size Operating Revenue Share in Global Fiber Processing

≈20 million people ≈ 100 million people ＞300 Direct Employment Employment Indirectly-driven Industrial clusters and Specialized Markets In 2020 Expanding the production of Spring Feb. Festival anti-epidemic Holiday products Resumption Mar. + Steady recovery of the Lockout due of business Daily production activities domestic market Apr. to the capacity of masks COVID-19 from 20 millions Over 90% up to hundreds of May companies resume millions production and the supply chain June basically back to Online retail sales of normal clothing products reached the year-ago July level Rebound of export orders Positive growth in Aug. offline retail sales of clothing products Positive growth in exports (compared with the same of clothing products Sep. period of the previous (compared with the same period year) of the previous year)

Data：Working Committee for Industrial Clusters, CNTAC The Industry’s Operation in 2020

Investment Production in Fixed Assets

Domestic Export Consumption Production

Growth of industrial added value year on year Output growth of main products year on year (industrial companies with annual revenue of (industrial companies with annual revenue of 20 million yuan or more) 20 million yuan or more)

66% 20% 纺织工业Textile and 产业用纺织品行业Technical textiles apparel industry industry 58.6%

33% 0%

-3.7% 0% -20% Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Mar-20 May-20 Jul-20 Sep-20

-33% -40% Source：National Bureau of Statistics Man-made 服装clothing 无纺布nonwovens 化纤纱yarn 布fabric fiber Domestic Consumption

Major indexes of China’s domestic market Growth in retail sales year on year

18% 40%

10.4% 34.3%

7.4% 0% 20% 17.4% Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Mar-20 May-20 Jul-20 Sep-20 10.9% -5.9% -9.7% 5.6% -18% 0% Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Mar-20 May-20 Jul-20 Sep-20

-36% -20%

Clothing, footwear, hats, knitted products. 全部网上商品穿类吃类用类社会消费品 Consumer goods 服装鞋帽针纺织品（限额以上） All kinds of For wear For eat For use 粮油食品（限额以上）Grain and oil 日用品（限额以上）Daily necessities online products Source：National Bureau of Statistics Domestic Investment in Fixed Assets

Jan-Jun Jan-Oct

- 19.6% - 27.3% Export

Growth of textile and apparel exports

350 79.2% 80% 300 56.7% 51.1% 50.0% 47.0% 60% 250 36.0% 40% 200 15.9% 20% 150 -4.9% 0% 6.5% 6.8% -19.9% 3.2% 100 -7.1% -5.6% -20% -20.0% -22.0% -24.4% 50 -27.7% -40%

0 -60% Jan-Feb Mar Apr May Jun Jul Aug Sep Oct

Textile exports Apparel exports

Textile exports year on year Apparel exports year on year From March 15th to October 20th, China had provided anti-epidemic assistance to 150 countries and 7 international organizations.

Export of epidemic prevention materials:

⚫ 179 Billion Masks

⚫ 1.73 Billion Protective Suits

⚫ 543 Million Testing Kits Part 2 Outward Investment & Cooperation of China’s Textile & Apparel Industry Outward Investment of China’s Textile & Apparel Industry ＞10 Billion USD ($100 Million)

26.6

20 Belt & Road＞80%

15 14.1 13.0 11.8

9.5 9.8 10

5.4 5.2 4.7 5 3.1 3.0 2.1 2.6 Multiple 0.9 1.0

Industries & Forms 0

Source: Ministry of Commerce of China Regional Distribution of Outward Investment The Volume (counted) of Major Countries Receiving Investment from China’s T&A Industry (2015 - 2020H1, million USD)

越南 1,565 Vietnam Uzbekistan: cotton-spinning 埃塞俄比亚 Tajikistan: cotton-spinning 326 Ethiopia

Pakistan: cotton-spinning 缅甸 258 Egypt: spinning, weaving, Myanmar dyeing and finishing, clothing Bangladesh: Myanmar: clothing clothing HK China 柬埔寨 Vietnam: cotton-spinning (color- 164 spinning and color weaving), Cambodia fabrics, clothing Cambodia: clothing Nigeria Ethiopia: cotton-spinning, 埃及 162 wool-spinning, dyeing and Egypt finishing, clothing Uganda Malaysia: cotton-spinning 马来西亚 120 Tanzania Singapore Malaysia

Zambia Angola 巴基斯坦 85 Pakistan Madagascar Zimbabwe 塔吉克斯坦 86 Tajikistan International collaboration of high-quality resources

Raw Materials Brand and Marketing Resources

Design R&D Due to the Covid-19

Investment Slowdown but still MOVE ON Part 3

Outlook of International Cooperation in Post Epidemic Era China’s Imports and Key Products

Imports in 2019 Partners Key Products （Thousand USD）

Morocco 140,911 Apparel and clothing accessories

Apparel and clothing accessories Tunisia 77,229 Industrial textile

Cotton and related products Egypt 69,678 Other vegetable textile fibers Apparel Cotton and related products Tajikistan 22,127 Silk and related products

Jordan 15,246 Apparel and clothing accessories

Apparel and clothing accessories Madagascar 10,687 Other vegetable textile fibers Wool and related products Kyrgyzstan 4,334 Cotton and related products Silk and related products From 2015 to 2020 H1, the total investment volume from China to the mentioned 7 countries reached to 250 million USD. Egypt Jordan Tunisia Morocco Kyrgyzstan Tajikistan Madagascar Future Cooperation in Post Epidemic Era

Trade Cooperation

Industrial-capacity Cooperation

Industry Communication THANKS Textiles & Clothing: Expanding exports in a sector impacted by COVID-19 How Cost-to-Value Analysis can stimulate more ethical behaviour of factories & buyers

International Trade Centre Presentation

By David Birnbaum 8 December 2020 The Problem

Our global garment industry faces two serious problem 1. We are held in low regard by those associated with us including Governments, institutions, NGOs, our own stakeholders and even the consumers on whom we rely. 2. We cannot create a way to overcome these problems because we are caught up in a failed decision making process.

The decisions we make do not lead to the results we expect Cost to Value Analysis

The system is easy to understand. a. Cost is what the supplier pays for materials and processing b. Value is what the customer pays for materals and processing c. Almost eveyone in the process is both a supplier and a customer a. The yarn spinner is the fiber supplier’s customer and the weaving mill’s supplier b. The Retailer/Brand is the garment factory’s customer and the consumer’s supplier d. Value defines price e. Every decision carries cost f. Every decision creates value g. The correct decision creates higher value than cost Alternative Solution #1: The Fairness Principle

The relationship between the supplier factory and his customer retailers/brand should be based on fairness.

The Problem: In developing countries, where factories specialize in commodity garment production, the customer continually forces down FOB prices while at the same time garment costs continually rise. The point is reached where the prices paid by the customer are below factory costs. As a result factories have been force out of business

The solution: Since the problem is caused by the customer, the customer should be forced to increase the price paid to the point where a fair price to cost relationship has been achieved.

The data is clear. Factories have been forced to close because they are unable to show a profit based on low prices demanded by the customer The Fairness Principle (cont)

When we apply Cost-to-Value analysis, situation changes radically.

An analysis of FOB prices on major commodity products shows that the problem is not that customers pay these factories lower prices, but rather that customers pay everybody else higher prices.

Since price is based on value, the customer is paying the losing factories lower FOB prices because their products are worth less than the products supplied by the factories that are paid higher pricesd

The data is clear. The solution lies with the factories. Find out what the factories want and give it to them The Low Price Paradox

The fairness principle is fundamentally flawed 1. We cannot define fairness 2. We cannot enforce fairness 3. As with many of the issues in the traditional decision making process the assumptions on which fairness is defined are untrue In the industries based on low FOB price, both the factories and their customers believe that consumers place low- price as the single greatest value

This is demonstrably false The World’s Top 10 Garment Exporters 2019

Rank Country Value $mn Market Share 1EU 134,531 28.6% 2China 138,238 29.4% 3Bangladesh 40,715 8.7% 4Vietnam 30,038 6.4% 5India 16,508 3.5% 6Turkey 15,540 3.3% 7Indonesia 8,246 1.8% 8Cambodia 8,287 1.8% 9Pakistan 5,843 1.2% 10Sri Lanka 5,638 1.2% Source ITC Geneva China and the EU have much in common

• Easy access to locally produced materials,

• Ease of doing business,

• Concentration on sophisticated fashion products,

• Educated management and technical specialists and well trained workers

• Strong domestic demand particularly for fashion clothing. The difference is price

FOB Price Comparison EU v China (Year of Latest data) HTS Description FOB EU FOB China Year 6205.20 Men's Cotton Woven Shirts $15.11 $5.99 2015 6203.31 Men's wool Jacket $111.31 $47.27 2019 6203.41 Men's Wool Pants $40.94 $26.11 2019 6203.42 Men's cotton pants $16.41 $6.51 2016 6204.42 Women's Dresses $21.93 $6.60 2016 6204.61 Womens wool pants $51.39 $21.62 2019 6204.62 Women's cotton pants $14.29 $6.04 2018 6209.10 Cotton T-shirts $4.18 $2.99 2015 6110.11 Wool Sweaters $41.37 $14.75 2019 6110.20 Cotton Sweaters $11.86 $6.68 2015 Definining Value

Design: The EU is home to the world’s greatest agglomeration of design centers including, Italy, France, Spain, Netherlands, Sweden, Germany, ETC. Importers placing orders in the EU generally rely on EU design. Contrast this with China where the customers placing orders provide their own designs, often of EU origin

Brand: Made-in-Italy, Made-in-France, Made-in-Spain etc. provide a cachet which allows the importing retailer and/or brand to charge a higher price. Some may claim that this brand cachet is unwarranted, but we have to accept that these EU based brands create value which Made-in-China lacks. Fairness Principle ---Conclusion

In a changing industry both customers (retailers and brands) and factories that continue to believe low- price equals higher cannot survive Alternative Solution #2: Ethical Standards

The advantages: 1. Definable: Growing Consensus Factory worker rights Factory working conditions Factory worker Safety Sustainability Reduced Pollution Reduced Global Warming

2. Enforceable: Consumer Driven Market Customers must meet consumers’ requirments The Angora Sweater Collapse The Covid Virus Customer Conundrum: To pay or not to pay, that is the question The Covid-19 Pandemic and Ethical Standards

Child Labor and Slavery

Garment exporting countries in Asia have serious problems with both child labor and slavery.

According to a recent report, Hidden and Vulnerable – The Impact of Covid-19 on Child, Forced and bonded labor, published by goodweave the advent of the virus has markedly increased child labor and slavery in Asian based garment exporting countries.

We can asume that everybody is against both child labor and slavery The Covid-19 Pandemic and the fairness princple

There is an argument for both child labor and slavery. Covid-19 has resulted in factory closures and increased unemployment. In most developing countries and LDCs factory workers have no savings and little or no government support. The loss of a job can be life threatening to every member of the family. Under those circumstances any family member with any job --- mother, farther, son or daughter --- means survival for the family. Without a a job holder the alternative is to borrow money using a child as collateral. If the amount exceeds $500 the mother recognizes that the loan will never be repaid, leaving the child with a lifetime of indentured servitude. This a terrible decision for any parent, yet the reality is he or she has no alternative. We cannot blame the mother, nor can we demand that any individual or group provides the funds necessary for the survival of the family In this situation the fairness principle has no meaning The Covid-19 Pandemic and Ethical Standards The fairness principles deals with what should be Ethical standards deals with what is. Slavery and child labor is unethical Where does that leave us? I suggest that this leaves us in a pretty strong place Up to now the existance of child labor and slavery has been our industry’s dirty little secret Many of us were aware of what was going on. The participants --- both customers and factories hoped: The consumer will never know The consumer would not care These hopes no longer exist. In today’s consumer driven industry any customer caught selling a garment produced by an enslaved child will be out of business. Under the circumstances prudent retailers and brands would do well to immediately investigate every supplying factory. The we-did-not-know defense will not succed

Where does this leave the worker? Also in a pretty good position. To survive the factory must employ someone. If the factory can no longer employ children or slaves it must employ the free parents Ethical Standards --- Conclusion

In a consumer driven industry the move towards higher ethical standards is an opportunity for the factory to move forward Because

The requirements for ethical standard are all in the factory Textile & Clothing: Expanding exports in a sector impacted by Covid-19

Global Good Practices along the Apparel Value Chain

Dr Rajesh Bheda Managing Director Rajesh Bheda Consulting Pvt Ltd, India Covid-19 has played havoc everywhere and the apparel industry is no exception

Source: Traid

4 5 6

Challenges faced by apparel SMEs 7 How certain countries and companies deliver superior performance?

Think! There must be a better way

That’s where we need sharing of good practices 9

Inception of Good Practices Guidebook by ITC

- The development of the Good Practices Guidebook is being undertaken by Rajesh Bheda Consulting The structure of publication

Good Practice Case study

• What is it and why? • About the company

• Pre-conditions for implementation • Problem Description • Process followed • How to implement it? • Results • Expected benefits and KPIs • ROI • Estimated Investment and ROI • Lessons learned

10 11 Low value addition- low profitability Majority of SMEs lack value adding capabilities

Figure: Value-Adding Stages in the Apparel Global Value Chains: Smiley Curve Domains of Good Practices & topics Implementation of Zero-Defect Operator (ZDO) Programme for quality improvement 14

Zero Defect Operator (ZDO)

- ‘Zero Defect Operator’ refers to an operator who does not produce or pass any defect/s from his/her operation to the next process.

- It is applicable to any production or service industry. ZDO strengthens the Right First Time quality parameters of an enterprise. Resource / Preconditions required

- Full commitment of the top and middle management

- Willingness to reward the employees

- Regular practice of capturing the defects generated at every operation and by each operator

- Good coordination and synergy between the production and quality teams 15 Implementation Steps

Step 3 Step 1 Step 2 Explain to the cross functional Form a cross functional team Ensure that all the team team, the benefits of the ZDO for the implementation of ZDO members understand the programme and the programme basic concepts of quality methodology of developing ZDO

Step 5 Step 4 Explain the objective of the Step 6 Select a pilot line for training programme and methodology Get volunteers who would like the operators as ‘Zero Defect of the training to the operators to undergo the training Operators’ in the pilot line

Step 9 Step 8 Step 7 Visual display of the results of Implement monthly inspection Train the operators on how to this inspection, with colour summary format like Traffic ensure defect free production coding as shown below: (a) light system where every and how to self-inspect their Green for no defect, (b) operator’s output is inspected output Yellow for 1 defect and , (c) 2 to 4 times a day Red for more than one defect 16 Training, Implementation & recognition

Traffic light inspection format

Format Implemented on the ZDO with badge production floor 17 CASE STUDY

Implementation of ZDO Programme for quality improvement

Name: ABC Private Limited

Location: Dhaka, Bangladesh

No of employees: 1600 (about 70% women)

Monthly Capacity: 3,40,000 Pcs

Major articles: Tops and Bottoms

Major Customers: UK based large format discount stores 18 Problem Description

A factory based in Bangladesh wanted to embark on a continual improvement journey and reduce the defect rate across its manufacturing processes. During the assessment and baseline survey, some of the key data was analysed to understand the current status of the factory.

Initial Assessment Data 1.26 1.09 0.97 0.93 0.82 0.79

0.51

0.38 0.38 0.37 0.31 0.29 0.25 0.24 0.26 0.15 0.14 0.15 0.10 0.04 0.05 0.02 0.01 19 Process Followed

Prior to the implementation of ZDO programme, it was ensured that the operators had gained basic knowledge of productivity and quality parameters.

Formation of factory team for ZDO programme and selection of a pilot sewing line Implementation of a monthly inspection summary format and training of the team on how to fill it

Training of operators on self-inspection as per quality specifications

Regular follow up and Social recognition to the ZDO's by rewarding them 20 Results Achieved

% Defective (Monthly) 14.00% 12.82% 12.00% 11.26% 10.00% 9.43% 8.00% 6.94% 6.43% 6.00% 5.29% 6.79% 4.00% 4.69% 4.76% 4.50% 4.56% 2.00% 0.00% Baseline Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11 month

- Introduction of ZDO helped in reducing the percent defective by 65%

- After the successful implementation of the ZDO programme in the pilot sewing line, it was rolled out to other lines across the factory

- Improved quality levels, reduced sewing cost & improved worker motivation

- Recognition by customer followed next Working together to succeed using the cluster- based approach 22 CASE STUDY

Managing garment cluster organisation: OGTC India

Name: Okhla Garment and Textile Cluster (OGTC)

Location: National Capital Region, India

Member Companies: 27

No. of Factories: 110

3 at OGTC Secretariat (about 1,00,000 employed by the No. of Employees: factories)

Garments/ annum: 110 million

Total Exports: US$ 800 million 23 Problem Description The increasing competitive intensity for textile products posed a challenge for the survival of the small scale enterprises. They realised the need to hep themselves as a group and hence OGTC was formed What is OGTC and its values?

- Cluster of minds - Full trust and transparency - Best practices and hunger for best expertise - Collective training, consulting, sourcing - Capacity sharing - Visionary leadership - Collaboration with Govt, Institutes and Int. Agencies - Cost effectiveness. Secretariat rotates between member factories 24 Training for members CSR

- Providing Training and Employment - Productivity Enhancement to People with Disabilities - Lean Management - Eye & Health Check Up Camp - Merchandising - Quality Management - Fabric Inspection/ Testing - General Management and Leadership - Industry 4.0 Technology Upgradation - Effective Supervision - HRM - Sustainability - Skills Training on 3G Tailor Training System 25 Results Achieved

- OGTC has gained reputation of a benchmark cluster - Higher business performance Vs. industry average - Large companies are keen to join the cluster - 1,500,000 meters fabric procured - Government recognition for policy & through common sourcing implementation of schemes - OGTC Group has reduced about 2000 - OGTC conference is a well-respected Tons of Carbon emissions through global forum carbon footprint project - Trained 50,000+ employees in 15 - Productivity gains of 20 to 90% through years Lean Manufacturing - A saving of 700,000 US$ of Air Freight - Quality Improvement Program; reduction of defect rates by 50%+ Fostering Community Engagement to Enhance Economic, Social and Cultural Well-Being 27 CASE STUDY “Friends from Syria”, a project dedicated to work on skill development & rehabilitation of Syrian refugees in Jordan

Classic Fashion executed the setup “Friends from Syria” programme in Oct 2017 to specifically focus on engaging with the residents of the Zaatri camp for Syrian refugees.

Skill development programme for Syrian refugees in Jordan 28 Covid-19 Crisis Management: Research and Product Development- CoVest & CoVer CoVest and CoVer by Prof. Somesh Singh Craft Village

Combined with hand-block printed Ajrakh fabric & Cement fabric Get your creative ideas fulfilled from Design, product development, production to delivery all done in USA

Clients include: Young designers and fashion icons like Matthew Williamson, Rosetta Getty and Christian Siriano as well as retailers including Nordstrom and Neiman Marcus. 36

Common Learnings

1. There is immense scope for improvement in every domain and we can learn from each other

2. For most of the good practices payback period is 3 to 12 months

3. Culture flows from the top: Top management commitment is critical

4. Making financial investment is not a challenge, preparing the organisation is

5. Finding right guide/ mentor is important to facilitate the change Thank You Supporting Apparel Exporters in a Time of Change

Key Lessons for Covid-19 Response

December 2020

© Euromonitor International 2020. All rights reserved. The material contained in this document is the exclusive property of Euromonitor International Ltd and its licensors and is provided without any warranties or representations about accuracy or completeness. Any reliance on such material is made at users’ own risk. This document is confidential and for internal use by the organization and its affiliates only. Publication or making available to any third party of all or part of the material contained in this document (or any data or other material derived from it) without Euromonitor’s express written consent is strictly prohibited. The Current State of Apparel and Textile Demand Side Trends and Implications Supply Side Trends and Implications Key recommendations

The Current State of Apparel and Textile

-17% Global Drop for 2020 0 Number of markets growing in 2020

Note: Travel not shown (-46.57% drop in volume)

1 Trillion USD in Lost Opportunity Globally

Textile Companies in EMEA will be competing for a slice of a smaller pie.

It is more important now than ever to differentiation your firm or brand. The key question is how?

© Euromonitor International 7 Purchase with Purpose • Personalization • Digitization • Sustainability • Failing that - Value-for-money Recovery Is a Myth – Industry Transformation the Reality Supply Chains Reinvented • Industry consolidation • Emergence of Online Giants • Proximity Supply Chains

Demand Side Trends and their Implications

The Post-Covid Consumer will purchase with purpose. Sustainability Purchases will require a clear and compelling reason for purchase. Digitalisation

Personalisation

Environmental Sustainability Sustainability is not Just about 1 Going Green

2 The Re-branding of CSR

3 Diversity and Inclusion

Consumers are increasingly willing to wait for their products. Case Study: Wacoal Holdings Corp

Gökalp and Gökalp, Industrial 4.0 Revolution Clothing and Apparel Factories: Apparel 4.0

© Euromonitor International SUPPORTING APPAREL EXPORTERS IN A TIME OF CHANGE 13 These Trends will NOT be for everyone The impact of the Covid-19 pandemic on global economies will result in a drop in the size of the Middle Class.

Germany Italy France

Total Apparel Expenditure (USD BN) by Middle Income Segment in Covid-19 Downgrade Scenario 2 (vs. Optimistic Baseline) Middle Income defined as 30 000 – 75 000 USD Annual Household Income.

Supply Side Trends and Implications

Consolidation and Vertical Emergence of New Players Proximity Supply Chains Integration

Success Post-Covid will be driven by stronger, deeper relations between buyers and suppliers

Consumers Spending and …putting many already at risk of bankruptcy Saving Priorities in 2020 • Gradual and Sporadic recovery – Not V- Purchase of shaped or U-Shaped private label Spending on • Everyone at risk – but in different ways. clothing and footwear • Control of supply chain critical – those Purchase of without it risk bankruptcy second hand items Visit to discount stores

Saving Money

0% 20% 40% 60%

Buyers vary in their ability to fund short-term downturn

Brand Quick Ratio Focus on the company – there are INDITEX 1.24 1 winners and losers within each NIKE 0.925 category Adidas 0.674 Hanesbrands Inc. 0.646 Cash-on-hand – a key indicator of H & M 0.449 2 a company’s approach. Apparel exports will need to pivot towards strategic partnerships, adapting their Those with a strong financial operations to each company’s 3 position more likely to engage in joint ventures and outbound individual situation. investment.

E-commerce New Players expected to focus on their own line of products Historic E-commerce Growth 200,000.0 180,000.0 160,000.0 140,000.0 120,000.0 100,000.0 80,000.0 60,000.0 Amazon currently has 74 private label brands, 40,000.0 20,000.0 and 87.8% of them fall within clothing and 0.0 apparel. 2014 2015 2016 2017 2018 2019

Asia Pacific Australasia Eastern Europe Latin America Middle East and Africa North America Western Europe

Key Firms – 2019 Vs 2020 Q1 Changes in Inventory 2016-2020 60000 0.4 Tapesry Inc (Coach, Kate -4.7% CAGR +33.5% 2016-2019 Q1 2020 +92% Spade etc)

50000 0.3 Capri Holdings (Michael +86% Kors, Versace) 40000 0.2

Lululemon Athletica Inc. 30000 0.1 +56%

20000 0 +44% LVMH Moet Hennessy

10000 -0.1 +41% Adidas AG 0 -0.2 2016 2017 2018 2019 2020 Q1 Total Investory (28 firms) Growth / Decline +33.5% Average across 28 firms

1 Produce Less, More

2 Take advantage of the public and “third” sector

3 Build long-term partnerships with your suppliers

© Euromonitor International SUPPORTING APPAREL EXPORTERS IN A TIME OF CHANGE 22 Produce Less, But More Often “In the longer-term, the pandemic could affect the composition of global textile, clothing, leather and footwear supply chains and trade, and accelerate the re- or nearshoring of production.” – ILO Sector Brief

Companies like Inditex have already shifted their supplies chains to North Africa and Turkey with 59% of factories located in the region.

Shipping Times by Port of Origin to Hamburg Nearshoring allows for 40 reduced lead times, 35 allowing for more frequent, 30 smaller orders. 25

15 10 This ultimately reduces the 5 environmental impact from 0 transit and waste.

Min Max

Texitle as % of Exports 100% 90% Government, 80% International 70% Development and 60%

50% Manufacturing

40% Clusters have a shared 30% interest in increasing 20% competitiveness for 10% your suppliers. 0% Pakistan Jordan Tunisia Turkey Morocco Egypt Ethiopia

Textile Exports Total Exports Rank: 1 2 2 1 4 3 5

Full report can be purchased here: https://setekcluster.com/tr/haber/85/117/0/uluslararasi-ev-tekstili-ve- hedef-pazar-analiz-raporu.html

Main Features: • Reverse Factoring at attractive discount • Pricing based on superior credit rating of the buyer • Unsecured Basis to suppliers • Digitally enabled for traceability • Different pricing schemes based on sustainability KPIs

Results: • US 3 Billion disbursed to 1000 suppliers in 14 countries • Average invoice size $13 000

Facilitate Internationalization of Your Textile Clusters 1 Collaboration is key to short-term survival of apparel exporters. Linking suppliers, buyers and financial institutions is critical to build specializations and efficiency in an increasingly competitive market. Working to connect your national clusters with regional counterparts can help take advantage of overlapping trade agreements and build efficiencies.

Seek Real Time Support and Guidance 2 Governments should support their industry with real time market intelligence on logistics, pricing, competition and supply chains to help members in making key decisions during the recovery, to understand pockets of growth and contraction and adapt production trends accordingly.

Re-pivot your industry to focus on depth, not breadth Success Post-Covid will be driven by stronger, deeper relations between buyers and suppliers. This focus will lead to 3 increased specialization and higher margins in a contracting market, but will require greater collaboration to fill gaps in the value chain.

Prepare members for the Future 4 Given the current crisis mindset, individual firms will have challenges in allocating resources to medium and long- term thinking. Governments can fill the gap by developing and re-thinking cluster strategies. This includes providing clear, data-driven guidance on which markets, channels and products to focus on in the post-Covid world and the steps members can take to succeed in a new textile industry.

Grant Budding Senior Consultant - Public Sector and Professional Services Ph: +971 4 372 4361 E: [email protected] Textiles & Clothing: Expanding exports in a sector impacted by COVID-19

Julia Hughes, President U.S. Fashion Industry Association (USFIA)

December 8, 2020 Prospects for the US Apparel Market in 2021 FASHION MADE POSSIBLE BY GLOBAL TRADE Our Work for the Industry

Communication

Education

Advocacy What do fashion brands and retailers think?

Perspectives from USFIA’s 2020 Fashion Industry Benchmarking Study What do fashion brands and retailers think?

COVID-19 Affects Everything Source: NPR via U.S. Census Bureau advance monthly retail trade report (Nov 17, 2020). Figure is seasonally adjusted. Compared to a year ago, October sales were up 5.7%

• Online retailers: +3.1% • Big-box stores: -1.1% • Electronics stores: +1.2% • Clothing and accessories stores: -4.2% • Gas stations: +0.4% • Sports, music and other hobby stores: • Home improvement and gardening -4.2% stores: +0.9% • Department stores: -4.6% • Restaurants and bars: -0.1% • Furniture stores: -0.4% • Grocery stores: -0.4%

(Source: NPR)

SOURCING INSIGHTS FROM USFIA BENCHMARKING STUDY IMPACT OF COVID-19 ON BUSINESS OPERATIONS

To p impacts % of respondents

#1 “COVID-19 has disrupted the supply chain for 100% products we are sourcing”

#2 “The apparel factories which make my 82% products were short of workers”

#3 “COVID-19 has made it more difficult to 73% conduct factory audits”

#4 “We had to furlough or layoff U.S.-based 68% employees”

#5 “The apparel factories which make my 59% products were short of textile raw materials” THE BAD NEWS: LESS OPTIMISM ABOUT THE NEXT FIVE YEARS THE GOOD NEWS: COMPANIES PLAN TO EXPAND HIRING

• Job market is still promising: nearly 90 percent of respondents plan to hire more employees in the next five years

• Positions most likely to increase hiring: 1. Sustainability/compliance related specialists or managers 2. Supply chain specialists (including logistics) 3. Sourcing specialists 4. Data scientists SOURCING OUTLOOK “China Plus Vietnam Plus Many” remains the most popular sourcing model, and it continues to evolve

“China + Vietnam” • Combined now typically account for 40-60 percent of a company’s total sourcing value or volume

• 29 percent of respondents source MORE from Vietnam than from China in 2020 (was 25 percent in 2019)

“Many” • Include the United States, North America, South & Central America, Africa, and Europe

• Each typically accounts for <10 percent of a company‘s sourcing portfolio SOURCING SCORECARD

Strength Average Weakness Most balanced: China, Vietnam Mexico, CAFTA-DR SUSTAINABILITY REMAINS KEY PRIORITY (Source: PwC Holiday Outlook 2020) HOLIDAY OUTLOOK Holiday Outlook

(Source: PwC Holiday Outlook 2020) Holiday Outlook

(Source: PwC Holiday Outlook 2020) WHAT NEXT IN THE U.S.? What Next in the U.S.

President-elect Biden takes office on January 20th

Until then watch for more talk about trade and tariffs

China remains the main target but not the only target What Next in the U.S.

Watch for: Action against Vietnam with 301 Investigation

Action against the EU and France for DST

Trade programs that may expire: GSP and MTB What Next in the U.S.

Watch for: New trade policy initiatives under the Biden Administration

COVID-19 response will determine sourcing and consumer demand in 2021 Upcoming Trade Shows

Virtual Show Coming Soon Contact: John Banker, [email protected]

Virtual Show Coming Soon Contact: Emily Olah, [email protected]

Digital Events from January – March 2021 Contact: Andreu David, [email protected]

Digital Edition: January 12 – 14, 2021 Contact: Abbe Alexander, [email protected] Thank You!

Julia K. Hughes President U.S. Fashion Industry Association www.usfashionindustry.com