California Apparel News

Moving forward with its latest virtual event, Apparel Textile Sourcing hosted its Post-Election Summit and Sourcing Show to connect buyers, sellers, brands, manufacturers, retailers and factories to discuss the future of the industry in a post-election, post-COVID-19 world. Over the course of five days, Nov. 16–20, ATS connected professionals within the industry through buyer-and-seller matchmaking and interactive booths that enabled attendees to shop ready-to-order apparel, textiles and accessories.

For Jason Prescott, chief executive officer of JP Communications LLC, Apparel Textile Sourcing Trade Shows, Manufacturer.com and TopTenWholesale.com, exploring new ways to reach audiences virtually, while following methods to yield a live show, proved successful.

“The second edition of ATSV (Global Trade Summit and Sourcing Show) simply exceeded all expectations,” Prescott said. “We tossed out the virtual software and introduced a new truly live and immersive experience and the result was proof of concept—speed, relevancy and live were the key factors. We provided one very simple landing page offering seminars, matchmaking, networking and three sourcing halls.”

Attracting 1,100 visitors, the event drew major brands, retailers and designers from the North American market including PVH Corp., Simons, Dillard’s, Perry Ellis, Giant Tiger, Brrr Inc., Canada Sportswear, Gerber Technology, JD.com and Beall’s.

“All of our attendees had the ability to first visit exhibiting suppliers’ company profiles hosted by Manufacturer.com and then, in the press of a button, they were in a live meeting with the supplier of their choice—or a group of suppliers all at once—100 percent live and interactive and face-to-face,” Prescott explained.

While working together to maintain existing relationships or forge new connections that will benefit the apparel business is paramount within the sourcing show, ATS’s supply chain–focused seminars were integral as attendees sought guidance on how to approach this new landscape. Experts from companies and organizations including The UpCycle Project, Worldwide Responsible Accredited Production, The Reverse Logistics Association, GioTex, Diversify Retail Inc., Better Buying and Axlebek offered valuable insights regarding such topics as “Sustainable Products & Their Certifications,” “Supply Chain Resiliency Post-Pandemic,” “Diversity in Sourcing” and “Guiding Brands Through the Apparel Development Process.”

One particular segment—“How Did the Election Impact the Industry?,” led by Nate Herman, senior vice president of policy for the American Apparel & Footwear Association—touched on how the 2020 presidential election results would impact the industry. Reminding attendees that the electoral college would vote on Dec. 14 and that Congressional approval of this process would occur Jan. 6, Herman explored how a lame-duck Donald Trump presidency and President-elect Joe Biden administration would affect different areas of the apparel business, including the supply chain, environmental concerns, human-rights issues and domestic manufacturing. One of these priority issues is the next COVID-19 stimulus package, which would lend much-needed support to the apparel industry and is currently being negotiated by lawmakers.

“Even though many members of Congress were voted out or retired, they are still coming back to finish off the business that was not done before the election,” Herman said, regarding the lame-duck session that is scheduled to end Dec. 11.

Another issue facing the U.S. Congress during this time is the alleged oppression through forced labor by the Chinese government of ethnic Muslim Uyghurs in the Xinjiang province. Following a yearlong outcry for the United States to take steps to oppose the oppression, Herman sees this as a priority for Congress to pass legislation regarding the issue, which would affect the apparel industry due to Xinjiang’s status as a source for the majority of China’s cotton in addition to other materials.

“The legislation would ban all imports from China that contain any nexus with Xinjiang. For example, Xinjiang produces 85 percent of the cotton that is produced in China. It also produces a lot of yarns and fabrics,” Herman explained. “There is a strong effort to get this legislation passed during this lame-duck session.”

Under a Biden administration, Herman explained that ending tariffs on goods from China would likely not be a priority. In addition to the human-rights issues, President-elect Biden would likely focus on other areas first, many of which would likely lead to a decision that would affect the United States’ trade war with China, but Herman mentioned a potential for an eventual trade partnership to ease the effects of this conflict on the United States.

“A President Biden [would have] other issues with China—human-rights issues, issues with Hong Kong as well, other issues on climate change and the Paris Climate Accords, and many other issues on territorial rights, China’s aggression in the South China Sea,” Herman said. “There will eventually be a discussion about doing some type of trans-Pacific partnership or TPP trade agreement with countries in Asia as a bulwark against China, so I think we would talk about rejoining TPP or other comprehensive trade agreements.”

Part of the AAFA’s prediction regarding a delayed decision to change tariffs on goods imported from China also stems from President-elect Biden’s commitment to focusing on fortifying the U.S. economy.

“President-elect Biden has made clear that he will focus on domestic investments within his first year, so it is unlikely—even if there is a new trade-promotion authority—that we would see a President Biden initiate new trade agreements in his first six months to as much as his first year, until he has fulfilled the commitment to make investments in the domestic economy.”

One area that the AAFA is hoping will gain momentum over the next year is combating the expanding counterfeit-goods market, whose growth has been facilitated by third-party marketplaces that face no accountability. The Shop Safe Act would require online marketplaces to actively prevent the sale of counterfeit goods, while the Inform Consumers Act would hold these platforms responsible for disclosing information that verifies sellers.

“We’ve already had a major issue with third-party platforms like the Amazons of the world and now social-media platforms like Facebook and Instagram regarding counterfeit products being sold,” Herman explained. “The pandemic has made that situation 1,000 times worse. Just as everybody started buying more online, counterfeiters have been selling a lot more online.”