FW
An innovative, fashionable, and responsible range of denim was displayed by Isko, a leading ingredient brand in quality denim manufacturing, at the second edition of the Green Carpet Fashion Awards. The awards were held at Teatro alla Scala during Milan Fashion Week, on September 23, 2018 and reflected the commitment of fashion companies towards sustainable fashion.
With a unique, eco-conscious mind-set, Isko demonstrated how denim can make the difference in weaving a responsible fashion story by creating influential outfits. The brand is undertaking a new project that challenges the oxymoron ‘denim on the red carpet’. The format aims at reframing the perception of denim. Isko has taken formal denim a step forward.
All Isko products, from traditional denim fabrics to patented technologies, are created at the most advanced technological level, also using innovative and responsible fibres including organic cotton, recycled pre-consumer cotton, and post-consumer recycled polyester from PET bottles.
Indonesia aims to become one of the world's Muslim fashion centers by 2020. The strategy adopted is to boost growth of startups in this field. The country’s exports of Muslim fashion products in 2017 were up 8.7 per cent from the previous period. The country will continue to encourage Muslim fashion industrialists and designers in Indonesia to continue making innovations by increasing their productivity and strengthening their brands to be able to penetrate the export market.
At present, the Muslim fashion industry is projected to be able to absorb 1.1 million of the total 3.8 million fashion industry workers in the country. Indonesia has the largest Muslim population in the world. In addition, Indonesia is among the top five members of the Organization of Islamic State Cooperation, which is the world’s largest Muslim fashion exporter. Others are Bangladesh, Turkey, Morocco and Pakistan.
The market for Muslim fashion products is expanding. One of the drivers is the increase of Muslim population in Indonesia and the world. The value of the global Muslim fashion market is expected to reach $327 billion by 2020. Muslim consumers spend an estimated $230 billion on clothing - more than the combined clothing markets of the UK, Germany and India.
Hong Kong is investing in Vietnam’s apparel and textile industry. Hong Kong has been exploring investment opportunities in Asean countries and sees huge potential in Vietnam. This comes in the wake of huge opportunities created by the recent trade agreements signed by the nations. Agreements like the Asean-Hong Kong Investment Agreement and the Asean-Hong Kong Free Trade Agreement are expected to help both nations access the market in addition to creating ample business opportunities.
Firms from Hong Kong will invest significantly in the production of materials for the garment and textile sector in Vietnam. Esquel, the four-decade-old Hong Kong based company, has been building plants in Vietnam since 2011.
Free trade agreements are expected to help boost the flow of Hong Kong’s investment capital into Vietnam not only in production projects but also in infrastructure, high technology, financial services.
Hong Kong businesses plan to visit some industrial parks in Vietnam. The two sides will jointly evaluate the possibility of production cooperation and investment expansion through research, exploration and market shaping. In infrastructure projects and the production of high-tech products, Hong Kong businesses will explore opportunities for business and investment cooperation. One area of cooperation is warehousing and transportation since Hong Kong is an international shipping and logistics center.
The apparel sector in Kenya has been hard hit by the cost of doing business. This has led to major investors’ shutting down and several others downsizing and reducing their operations. There have been substantial job losses both directly as well as those in the supply and value chains. Factors affecting the sector include: the high cost of energy, cost of labor and logistical challenges which affect the logistics chain including transport and distribution networks.
Investors and the business community have continued to suffer high costs of transportation despite investments in infrastructure. For the business community very little change has been felt in terms of the expected reduction in the real cost of transport for industry. The disorder experienced when it comes to designation of containers has led to huge demurrage charges and unexpected losses for businesses.
The recent eight per cent tax increase on fuel is expected to further drive up the cost of transport, leading to an increase in the cumulative cost of manufacturing in the country. Kenya is among the top exporters of apparel to the US. The country has the capacity to absorb the global shift in manufacturing which is leaning towards African markets.
Kenya is keen to revolutionize manufacturing in the country –the aim is to raise the sector’s contribution to GDP to 15 per cent by 2022 from the current 11 per cent.
Swedish fast fashion giant H&M has launched a new upcycled capsule collection which uses discarded workwear products to make garments such as jackets, chinos and T-Shirts. The new collection will be rolled out from this month through its Cheap Monday initiative, a pilot lab for its sustainability work. Released once a year, the capsule collection explores new materials and processes to create more sustainable products.
The new capsule collection consists of jackets, work chinos, tees, sweats and a bags, all made from discarded workwear to create the worn look. Through this collection, the brand highlights unexplored sources to creating new garments through the upcycling of workwear. Pieces which have become worthless for their primary purpose are still full of value. The process saves on virgin materials, climate emissions, water and chemical use.
The project is initiated by Cheap Monday together with Re:Textile, a project within Science Park Borås in Sweden which focuses on developing structures for circular processes and redesign in the textile industry.
Currently, the majority of industry-scale recycling processes exist solely for the mechanical recycling of cotton pre and post-consumer waste. However, mechanical and chemical innovations are coming up for blended compositions and for assuring the quality of recycled fiber.
Over-population and over-consumption have reached a level that demands a new system of fiber production. The current fiber system is not really sustainable. Noble fibers such as cashmere, mohair, and wool are natural and renewable resources with low impact on the environment. The challenge to recyclers is segregation of different types of fiber.
Almost 150 million metric tons of clothes and shoes are sold every year worldwide. This huge consumption is negatively impacting the environment. More than 70 per cent of the world’s clothing eventually ends in a landfill, of which less than 15 per cent is collected to recycle. Less than one per cent of this is regenerated into new clothing.
Circular economy is a hot topic at the moment. As the world needs more food and urbanization, it’s necessary to reuse and recycle on a larger scale, which is basically circular economy. A fully closed-loop fashion industry is still a long way off. Brands have to commit to the increased collection and recycling of garments, plus an increase in recycling post-consumer textile fibers.
DyStar will open more Texanlab offices across South Asia to provide end-to-end solutions throughout the whole supply chain. These are: ISO 17025 certified, specialised testing laboratories. DyStar provides colorants, specialty chemicals and services to the textile industry. The company has a strategy for reducing its production footprint by 20 per cent for every ton of production by 2020. This goal relates to resources used for production, such as energy, water and raw materials, in addition to addressing the subsequent outputs of greenhouse gas emissions, waste and wastewater.
Energy consumption and greenhouse gas emissions are, however, not at the stage DyStar had targeted due to the impact of three newly acquired production sites. The company has undertaken intensive efforts to ensure that its less efficient acquisitions are supported to align with the rest of the company.
The company’s product portfolio is broader than ever but the newer product ranges come with the added advantage of being, on an average, less resource intensive to manufacture. This and other factors, including active efforts to improve operational efficiency across existing production sites, have helped the company surpass four of its six 2020 targets. The aim is to be a responsible supplier and a profitable business in these changing times.
Pakistan’s cotton production may fall this year. Among the reasons are: high power tariff for tube wells, water shortage, absence of a support price and substandard and fake seeds. In most cotton-producing zones, the water table is either down or water has turned saline.
Cotton ginners say, the country’s cotton production can be raised up to 15 million bales if the Cotton Control Act is properly implemented. They have urged the government to extend support to each ginning factory and introduce upgraded ginning technology for production of clean cotton. It is estimated each of the 1300 ginning factories in Pakistan needs an investment of at least Rs 5 million for upgradation.
Pakistan aims to boost cotton production and increase its cultivation area by 45 per cent by 2025. Research funding will be provided. Cotton research will be revitalized. Partnerships may be initiated for variety development and marketing. The Seed Act and the Plant Breeder Rights Act may be implemented. Sub-standard cotton seed and BT cotton varieties may be regulated. The cotton sector may be regulated by rationalizing over 700 seed companies and disallowing cotton imports during the cotton picking season.
Spinning and ginning may be improved through better technology, shifting of the current weight based pricing to a quality based system, and bale labeling by ginners showing quality features.
Accord is a platform of western buyers and has been undertaking workplace safety activities in the country’s readymade garment sector. Accord, has a coalition of more than 200 global apparel brands, retailers and rights groups, has so far inspected fire, electrical and structural integrity in some 1,600 garment factories.
Of these, some 172 completed full post-inspection flaw fixing work while 171 faced business termination due to their failure to fix safety flaws. A total of 89 per cent progress has been recorded in all factories. The tenure of existing Accord ended in May this year and it was given a six-month extension.
Pressure for further extension of Accord, however, is mounting from different quarters mainly to complete the tasks and continue with the ongoing safety culture for long-term sustainability. The Bangladesh readymade garment industry is undoubtedly safer, and lives have been saved.
After the 2013 Rana Plaza tragedy, global apparel brands no longer ignore dangerous working conditions at their supplier factories. Five years on, Bangladesh Accord stands as a model for industrial relations, and shows that brands and unions can work together to solve systemic problems.
"After having fallen by over 12 per cent this year, the Indian rupee has hit an all-time low against the US dollar. Though a weakening rupee is in favor of exporters, stalwarts of Indian apparel industry are skeptical about how it will benefit trade. Harish Ahuja, Managing Director, Shahi Exports believes the depreciating rupee benefits as the apparel industry gets more orders. The depreciation has been only against the dollar, and not against other currencies. Dollar exports from India is only around 40 per cent."
After having fallen by over 12 per cent this year, the Indian rupee has hit an all-time low against the US dollar. Though a weakening rupee is in favor of exporters, stalwarts of Indian apparel industry are skeptical about how it will benefit trade. Harish Ahuja, Managing Director, Shahi Exports believes the depreciating rupee benefits as the apparel industry gets more orders. The depreciation has been only against the dollar, and not against other currencies. Dollar exports from India is only around 40 per cent.
Opinion divided on depreciation
HKL Magu, Chairman, Apparel Export Promotion Council (AEPC), feels the rupee depreciation will help the industry to get more orders. Although big buyers or top stores ask for this adjustment, they understand currency fluctuation is in nobody’s control and this trend will continue in future.
PMS Uppal, MD, Pee Empro Exports, Faridabad and President, Okhla Garment and Textile Cluster (OGTC),
Delhi, believes the situation will benefit small and medium exporters. The company plans to grow at 20 per cent and a weak rupee helps to consistently achieve this target. However, Raja Shanmugham, President, Tirupur Exporters’ Association (TEA), and MD of Warsaw International, disagrees with this. He says Indian exporters can’t get too much benefit as buyers ask for bonus money in such a case; especially in repeat orders. Lalit Thukral, President, Noida Apparel Export Cluster and MD of Maharana of India, Noida also seconds the opinion that plummeting rupee benefits exporters.
Other countries too sees currency depreciation
Anil Peshawari, MD, Meenu Creations, Noida points out Chinese Yuan depreciated nearly 10 per cent while Turkey’s Lira depreciated more than 50 per cent. Turkey, which earlier was doing mainly knitted garment, is now focusing on woven garments also. Moreover its proximity to Europe is also boosting imports. Bangladeshi Taka depreciated just 2 per cent, in recent months. But Dhaka already has a lot of advantage over India. India’s exporters were already working on nominal margins. Now, to get orders, they are passing or have to pass the minor benefit of rupee depreciation to buyers. If the US imposes tariffs on Chinese apparel, China will move more aggressively to EU, and can also supply apparel at extremely low cost as they have to keep their capacities occupied.
Long-term benefits of hedging
A strong dollar leads to exporters being involved in hedging. HKL Magu believes most big exporters have hedged their currency and got Rs 67 or Rs 68 against the dollar. This will benefit in the long run when exporters will hedge the dollar for Rs 75 after one year. Medium level exporters who normally don’t hedge also have an eye on the situation. Most will hedge only if the rupee goes above Rs 75.
