FW
The Fabric and Apparel Accessories Manufacturers Association (FAAMA) has urged the Government to give due recognition for its growing value addition to the economy and foreign reserves as required support can help tap a $ 2 billion business opportunity faster
This key sub-sector of the $5 billion apparel industry has grown to account for $ 800 million up from $500 million a few years ago.
With imported raw materials amounting to $ 3 billion annually, FAAMA believes the local industry can significantly enhance its contribution with the right support and policies.
The raw material component of the apparel industry is 65 per cent. The import value of $ 2.8 billion signifies a huge gap and equally an opportunity. Whether Sri Lanka can locally produce the entire raw material requirement locally is a challenge and could take a long time. However, local manufacturers have progressed satisfactorily so far after much sustained effort, said Pubudu de Silva, President, FAAMA
He said the fabric and accessories segment has added a value of nearly 50 per cent to the apparel industry. Additionally, customers are preferring in-country sourcing by their suppliers/producers as part of efforts to manage the rising logistics cost as well as lead time. This dynamic certainly helps local manufacturers of fabric and accessories. “
Given these compelling factors there must be unwavering support to fabric and accessories manufacturers to further enhance their contribution which will benefit the country substantially. Apparel industry, including fabric and accessories, must receive a similar thrust or priority like for tourism or ICT,” FAAMA President emphasised.
To expand the local manufacturing, several new initiatives have been made, including the establishment of a dedicated Eravur fabric park in the Eastern Province, which FAAMA welcomed.
However, FAAMA is of the view that a broad infrastructure plan aligned to industry growth forecasts and goals will help. A level playing field in terms of cost as against overseas competitors is also important, it said.
Pakistan Yarn Merchants Association (PYMA) has urged the government to change the duty structure for the textile industry as announced in the budget document to create vast employment opportunities.
Hanif Lakhany, Senior Vice Chairman, PYMA and Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Farhan Ashrafi, Convener FPCCI Yarn Standing Committee demanded this while addressing the 1st meeting of the FPCCI Standing Committee on Yarns.
They said that 2 percent customs duty on filament yarn, 2 percent additional customs duty reduction and abolition of 2.5 percent regulatory duty were announced in the budget speech, but unfortunately, all the recommendations of the Commerce Division were ignored, and without stakeholders’ consultation, anomalies committee’s recommendations were made part of the budget, which is unacceptable
Khurshid A Shaikh, Former Central Chairman, PYMA, said that the user industry of the yarn sector is facing big loss as the cotton production is very low. Fibre and yarn are two major sectors which can boost the textile sector of the country.
M Usman, Leader, PYMA, said, nylon yarn and viscose yarn are major issues. He urged the government to resolve the issue of tariff over yarn and fibre.
Hafeez Aziz, Chief, PCLC said, yarn traders are facing a lot of problems at different stages and they don’t get refunds for many years. In exports, yarn traders play a major role but they suffer much. The Federal Board of Revenue (FBR) always keeps yarn traders in darkness and always demands tax more than income from traders, he alleged.
Junaid-ur-Rehman, Member Managing Committee, KCCI, said, the council should also discuss issues of cotton yarn and government policy for raw material of cotton must be pro-business and industry.
The Hong Kong Research Institute of Textiles and Apparel (HKRITA) will soon celebrate the 3rd anniversary of its Garment-to-Garment Recycling System (G2G) by holding an exhibition, The Garment to Garment Journey’, from July 06-August 31, 2021.
The exhibition will demonstrate the different stages in the recycling of old garments, in which they are reduced to fabric materials that are then refashioned into new garments. To reflect the highs and lows of research, the demonstration will feature both cheering and challenging examples of recycled popular garments and fabrics such as shirts and blouses, knitwear, and denim. Video footage will show G2G users sharing their very own recycling journeys. Also displayed will be physical artworks made by users, demonstrating the creative side of recycling.
G2G is the world’s first post-consumer garment recycling system that can be operated in retail spaces. It is an award-winning project. These awards include, a Red Dot Award: Product Design 2019, and a gold medal in both the 47th International Exhibition of Inventions in Geneva and in the Asia International Innovative Invention Award of 2019. G2G was also honored in Fast Company’s Innovation by Design Awards of 2019 (Retail Environments category).
The project is now in its second phase of development, during which system capacity will be expanded, functionality optimized and processes more fully automated. These enhancements will be taking place concurrent with the exhibition, and the improved G2G will open to the public in September 2021.
BGMEA has welcomed Walt Disney Company’s decision to reinstate production of branded merchandize in factories stalled eight years ago. The decision would help BGMEA attract orders worth more than $500 million in future. As per Faruque Hassan, President, BGMEA, Walt Disney would consider permitting production in Bangladesh in future, if factories agree to partner Better Work program.
The factories participating in ILO's Better Work program will be entitled to become a vendor, while they need to participate in NiIRAPON, an alliance of 23 foreign RMG brands and RMG Sustainability Council (RSC) along with specific remediation fulfillment criteria. Walt Disney stopped production activities in Bangladeshi factories in May 2013 following the fire at Tazreen Fashion in November 2012 that killed 112 RMG workers, and later, Rana Plaza Building collapse which killed more than 1,100 people, mostly readymade garment workers.
Now, it plans to reinstate Bangladesh as a permitted sourcing country list with International Labor Standard audits. It is the recognition of the all-out progress and transformation in the industry, particularly in the area of workplace safety, social standards, and environmental sustainability, Faruque added
India’s exports to Hungary grew by 658.41 per cent to $21.16 million worth of apparels in 2020, as compared to just $2.79 million in 2019. Hungary imported $1.56 billion worth of garments worldwide in 2020, reveals ITC data, and India’s share was 1.35 per cent. As per Apparel Resources, India’s RMG exports to top five EU destinations – Germany, France, Spain, Netherlands and Italy – declined to 73.48 per cent of India’s total export to EU during 2020.
Denmark was the sixth top apparel export destination for India in EU in 2020 with exports growing 3.29 per cent to $231.95 million. Since India’s garment export to Hungary seems to be weaving up strongly, the country has a good chance in 2021 and onwards to increase its market share. As per Statista, Hungary’s total revenue from apparel sector was $2.07 billion in 2020 which is expected to grow annually 16.2 per cent from 2021 till 2025.
Apparel Export Promotion Council (AEPC) has lauded the government and exporters for achieving the highest ever merchandise exports of $95 billion in Q1 (April-June quarter) FY 2021-22. A Sakthivel, Chairman, AEPC said, the $400 billion merchandise export target of FY22 is doable. As per Apparel Resources, export of cotton yarn/ fabrics/made-ups grew by 50.86 per cent in June 2021 over June 2019.
Export of the man-made yarn/fabrics/made-ups, etc grew well during the same period, while export of all textiles declined by 18.76 per cent. However, apparel exports could not benefit much from the resurgence in global demand despite a good order book due to lockdowns in many important states, Sakthivel added.
He said while overall global demand has remained buoyant, the lockdowns in different parts of the country had kept factories in partial shutdown. With decline in daily cases of infection and resumption of economic activities, India is now set to achieve unprecedented export figures this year, he said. He requested the government to ensure personalized management of MSME exports and early clearance of RoSCTL cases pending since January 2021.
Consumer boycott of foreign apparel brands in China have dipped fashion retailer H&M’s sales in the country in recent months. China is one of the biggest markets for Stockholm-based H&M and accounting for 5 per cent sales last year -- one of its two biggest purchasing sources -- has been singled out in particular. The company was wiped off from e-commerce platform Tmall and store locations from mobile phone maps in China, while its app has vanished from local app stores.
Some researchers and foreign lawmakers say Xinjiang authorities use coercive labour programs to meet seasonal cotton-picking needs, which China strongly denies. In March 2021, Chinese consumers and social-media users, including the Central Communist Youth League, excoriated H&M, accusing it of smearing China and calling for a boycott, after its September 2020 statement resurfaces in social media. On the same day, searches for H&M on Chinese e-commerce platforms were blocked.
To be launched in Genoa, Italy by Candiani, Diesel and Eco-Age, global jeans trade show GenovaJeans will demonstrate the future of denim with an emphasis on sustainability. GenovaJeans will be held from September 2 to 6, 2021. The fair will bring to life the evolution, and innovation of jeans in an experiential showcase with a series of immersive experiences. One of the highlights will be the Artejeans exhibition, containing 36 jeans canvas works donated to the city by internationally famous Italian artists to establish an International Jeans Museum.
Leading Italian jeans brand Diesel will showcase pieces from its private collection, along with the Genoa’s historical Via Pre’, which will be renamed for the occasion as La Via del Jeans and will feature interactive and performance lead installations.
Denim producer Candiani will curate an immersive experience stressing the harm caused by unsustainable production and present solutions to protect the environment and the future of the industry, including its latest Coreva technology, the world’s first compostable stretch denim.
Eco-Age, sustainability consultancy and owner of The Green Carpet Fashion Awards brandmark will lead the event concept and delivery of GenovaJeans, working with production company Pulse, who will debut a movie called ‘Jeans-The Genoa-R-Evolution’ with performer Jack Savoretti.
Labor shortage in Vietnam’s garment and textile factories has prompted manufacturers to call for prioritized vaccination of workers. As per an Intell Asia report, most garment and textile enterprises in the country have received orders for production till the end of this year. Over the past two months, all three plants of TNG Thai Nguyen Company have operated at full capacity to deliver products on time.
Nguyen Xuan Duong, Chairman, Hung Yen Garment Company (Hugaco) said, if the ongoing fourth wave of COVID-19 is not controlled, garment and textile enterprises would be in trouble because stopping production even for two weeks would sweep away more than 10 per cent of their revenues. Garment firms may have to transport products by air, instead of by sea, to meet delivery deadlines, he said adding, this will surely lead to losses.
Garment and textile firms are also encountering labor shortages caused by a common employment trend in the sector. In the first half of this year, recruitment demand in the Vietnamese garment and textile sector increased 50-60 percent against the same period last year. However, many people were no longer interested in working in the sector mainly because of low pay, according to recruitment service provider Navigos Group.
Duong said if more workers in the sector were vaccinated against COVID-19, production and export in the second half of this year would happen smoothly. His company is willing to cover the vaccination costs, he added. Le Tien Truong, Chairman, Vietnam National Textile & Garment Group (Vinatex), estimates the sector needs 300,000 doses of vaccines for 150,000 workers, but only 3,000 people have received the shots so far.
The second wave has hit India’s garment manufacturers badly with many hosiery and knitwear manufacturers still struggling to revive after the lockdown in the past three months. As per K B Agarwala, Managing Director, Rupa, manufacturing hubs in Tamil Nadu and West Bengal have been unable to revive 100 per cent due to restrictions on local travel for workers. This has caused demand supply gap in the industry
Supply has declined 50 per cent of normal levels, adds Agarwala. While demand is slowly reviving and restrictions are being eased too, normalcy is still a little while away for the sector. Raja Shanmugam, President, Tiruppur Exporters Association of Tamil Nadu opines, it may take two more months for production to revive completely as higher input costs are adding to the woes of the manufacturers. Repeated hikes in yarn and cotton prices have led companies to increase product prices by multiple times.
This is impacting profit margins as sales have declined 25 per cent as compared to the same time last year. This has also put India on the back foot in comparison to competitor markets as an export hub for major global brands like Tommy Hilfiger, H&M, Marks & Spencer, Ralph Lauren, etc who source mainly from Tiruppur.
Shanmugam explains, Indian companies missed providing samples for two seasons to global players in the past two months, so the buyers sourced products from Bangladesh, Vietnam, Cambodia. India lost out on orders for two upcoming seasons. Tiruppur hub has incurred losses worth Rs 10,000 crore and the West Bengal hub has seen a 50 per cent loss in last few months. However, domestic demand is expected to revive based on the severity of a probable third wave, adds Vinod Kumar Gupta, Managing Director, Dollar Industries.
