Overview:

In the area of corporate social responsibility (CSR), Gap and Puma have published reports on their CSR initiatives in 2007 and 2008, the Chinese companies Suzhou Deylon Textiles and Shandong Lawrance Textiles have become the first two Asian manufacturers to produce apparel which has been certified as complying with Öko-Tex Standard 100plus, and Teijin has launched its Eco Circle recycling programme in China.

In announcing their financial results, several retailers have reported growth in sales, including Asos (up by 47%), H&M (up by 18%), Inditex (up by 7%), TJX Companies (up by 4%), and Marks & Spencer (M&S) (up by 3%). Less fortunate were Abercrombie & Fitch (with sales down by 23%), Gildan Activewear (down by 19%), Perry Ellis International (down by 18%), Benetton Group (down by 11%), JC Penney (down by 8%), Gap (down by 7%), and Levi Strauss & Co (down by 3%). Market data released recently reveal that total sales of apparel in the USA decreased during the first half of 2009, but sales of fleecewear and men’s underwear increased.

Trade policy developments include the implementation of a free trade agreement (FTA) between Vietnam and Japan, and the signing of an FTA between India and Asean which is due to become effective on January 1, 2010.

Licensing agreements have been signed between: Cerruti and Forall Group, relating to Cerruti 1881; Delta Apparel and Jordan Outdoor Enterprises, relating to Realtree; Ittierre and John Galliano, relating to John Galliano; Phillips-Van Heusen (PVH) and Studio Ray, relating to IZOD; and Sport-Haley and Windsong Brands, relating to Como Sport. At the same time, the United States Polo Association (USPA) has launched a new sportswear brand called THRE3.

New stores have been opened by Alcott in India, by Giorgio Armani in Hungary, by Gucci in Azerbaijan, Russia and Saudi Arabia, and by Uniqlo in France. There are also plans to open 11 new 24-hour Jeans Mate stores in Japan during 2009. Meanwhile, Inditex has received approval from the Indian government to establish Zara stores in India.

Developments in online retailing include the launch of an online clothing store by Tesco, and an announcement that Target will take full responsibility for the development of its online store when an agreement with Amazon expires.

SUMMARY
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Gap has published a report on the performance of its social responsibility programmes in 2007 and
2008
Puma has published a report on the performance of its corporate social responsibility (CSR) efforts in
2007 and 2008
ENVIRONMENTAL ISSUES
Suzhou Deylon Textiles and Shandong Lawrance Textiles have become the first two manufacturers in
Asia to produce apparel which has been certified as complying with Öko-Tex Standard 100plus
Teijin Group has launched its polyester recycling programme in China
FINANCIAL RESULTS
Abercrombie & Fitch has reported a 23% decrease in total net sales during the second quarter of its
2009/10 financial year
Asos has reported a 47% surge in revenues in the first half of its 2009/10 financial year
Benetton Group has reported an 11.4% decline in net revenues during the first half of its 2009 financial
year
Gap has reported a 7% decline in net sales during the second quarter of its 2009/10 financial year
Gildan Activewear has reported a 19% drop in net sales during the third quarter of its 2008/09
financial year
Third quarter of 2008/09
First nine months of 2008/09
H&M has reported an 18% rise in sales during the first nine months of its 2008/09 financial year
Third quarter 2008/09
First nine months of 2008/09
New stores
Inditex has reported a 7% rise in net sales in the first half of its 2009/10 financial year
JC Penney has reported an 8% fall in sales during the second quarter of its 2009/10 financial year
Levi Strauss & Co has reported a 3% decline in its net revenues during the second quarter of its
2008/09 financial year
Marks & Spencer (M&S) has reported a 2.7% rise in sales during the second quarter of its 2009/10
financial year
Perry Ellis International has reported an 18% decrease in total revenues during the second quarter of its
2009/10 financial year
Outlook
TJX Companies has reported a 4% increase in net sales during the second quarter of its 2009/10
financial year
Second quarter 2009/10
First half 2009/10
INTERNATIONAL TRADE POLICY
A free trade agreement between Vietnam and Japan has become effective
India has signed a free trade agreement with the Association of Southeast Asian Nations (Asean)
member countries

LICENSING AGREEMENTS
Cerruti Group has signed a licensing agreement with Forall Group relating to the Cerruti 1881 brand
Delta Apparel and Jordan Outdoor Enterprises have signed an exclusive licensing agreement relating to
Realtree branded outdoor apparel
Ittierre and John Galliano have signed a licensing agreement relating to the production and distribution
of John Galliano's men's wear, women's wear and leather goods collections
Phillips-Van Heusen (PVH) has signed a licensing agreement with Studio Ray relating to PVH's IZOD
branded swimwear
Sport-Haley and Windsong Brands have entered into a licensing agreement relating to Como Sport
branded sportswear
MARKETS
Total sales of apparel in the USA decreased during the first half of 2009, but sales of fleecewear and
men's underwear increased
NEW BRANDS
The United States Polo Association (USPA) has launched a new sportswear brand called THRE3
NEW STORES
Alcott will establish 17 new stores in India by the end of 2010 at a total cost of Rs150 mn
Giorgio Armani has opened its first Emporio Armani store in Hungary
Gucci has opened three new retail stores in Azerbaijan, Russia and Saudi Arabia
Inditex has received approval from the Indian government to establish Zara stores in India
Jeans Mate is planning to open around 11 new 24-hour retail stores in Japan during 2009
Uniqlo has opened its third flagship store outside Japan—in Paris, France
ONLINE RETAILING
Target will develop its existing online store and assume all responsibility for the store
Tesco has launched an online clothing store
The European Commission wants to adjust the rules on online retailing to allow distributors to sell
branded products via the Internet without having to get permission from the brand owners first
List of tables
Table 1: Inditex: breakdown of net sales by brand, Feb-Jul 2008 and Feb-Jul 2009