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Bangladesh’s garment manufacturers are receiving more work orders from the US. The main impetus has been the US-China trade war. China had already become expensive for US-based clothing retailers. The trade war is further pushing them in the direction of Bangladesh.
Though Vietnam is already benefitting on a massive scale from the US-China trade war, Bangladesh does have the scope to increase gains, especially in the garment business. But first of all the country needs to improve its production capacity.
The value of last year's global garment business also indicates a declining trend for China. Although China remained the largest apparel supplier globally, its share shrank to 34.9 per cent from 36 per cent. Bangladesh’s share increased to 6.5 per cent from 6.4 per cent.
The number will increase further if the US finally scraps the North American Free Trade Agreement (Nafta). Earlier, Chinese garment companies had set up factories in Mexico to avail of the duty privilege under Nafta. But now, apprehending the withdrawal of Nafta, Chinese investors are pulling out from Mexico. Bangladesh has also benefited from lower cotton prices. These decreased ten per cent after China imposed a high duty on the import of the natural fiber from the US.
The Telengana administration has called upon powerloom weavers of Sircilla textile town to weave only Bathukamma saris for the next 20 days to achieve the targeted production. Powerloom weavers have so far weaved 55 lakh saris against the target of 90 lakh. The rest would be weaved on a mission mode in the coming 20 days. At present, 20,000 looms have been deployed to produce the saris and additional 2,000 looms would be added to increase production.
The state government has placed orders for saris at a cost of Rs 280 crore. It may not place orders in future if weavers fail to achieve the targeted production by October 10. The government would appoint special officers to oversee the production by visiting powerloom sectors in various localities.
The powerloom associations have promised to produce only Bathukamma saris till October 10 to achieve the target and win over the confidence of the government to secure regular orders. The association leaders also hailed the Collector’s decision to provide wages for 20 days to old weavers and others.
Currency depreciation in Turkey, Brazil and India has put pressure on US cotton prices. But if the currencies move in a different direction demand could increase. China isn’t buying as much cotton as it was before the tariffs but is still purchasing US cotton. The textile process has moved to Southeast Asia, a growing market for US cotton. Vietnam is the largest consumer of US cotton.
Cambodia, Thailand, Indonesia are also significant consumers. The price competition between polyester and cotton has shifted toward cotton. This was led by China cracking down on polyester manufacturing facilities because of water and air pollution. Additionally, consumers are again expressing a desire to return to the comfort offered by cotton.
A counter-cyclical tariff on cotton by Turkey could disrupt some established trade flows, but the critical shortage of US quality cotton this year and the next would mean that the solid Turkish market honed out by US merchants and cooperatives would shift to other export locations and US export volume would not be hurt. Simply, Turkey would end up paying more for cotton than it currently does. Demand for US cotton – already one of the cheaper growths in the world – will do nothing but boom.
Turkey and Myanmar, have been named by the United States Department of Labor’s Bureau of International Labor Affairs (ILAB) in its annual “List of Goods Produced by Child Labor or Forced Labor.” As per the report, garment industries in both countries have employed child labor as have footwear manufacturers in Turkey.
The report, which includes 148 commodities from 76 countries, was mandated by the Trafficking Victims Protection Reauthorisation Act of 2005 and is updated regularly. ILAB continuously collects data from worldwide exporters in order to educate industry leaders on risky goods and regions that might otherwise escape notice. The process requires independent verification of labor information and does not rely solely on official data.
For ILAB, the goal is to protect interests at home by providing data to both consumers and organisations sourcing goods from foreign counties. In Turkey, ILAB uncovered reports that children, sometimes just 10 years old, produce garments for the industry. It also found that many within Turkey’s large Syrian refugee community were forced into this type of labor, too. The footwear industry in Turkey was also found to engage in the use of child labor. The instance of young boys and girls working in footwear production areas like Gaziantep and Istanbul has been considered common. In Myanmar, girls and boys from the age of 12 to 17 have been found working in garment factories, with a large portion of offenses occurring within the Yangon region.
Parisian trade show Tranoï, to be held from September 26 to October 2, 2018 will be staged in four different venues across Paris. The traditional event - which is introducing new product categories - bolstered by a showroom format which will be augmented by a new venue; the Atelier RichelieTranoï’s classic format will feature 450 womenswear and accessories exhibitors, showcasing their collections at two venues; the Carrousel du Louvre and the Palais de la Bourse, from September 28 to October 1.
There will be some new entries, like handbag brand Nat & Nin - which is also launching a footwear range for the Spring/Summer 2019 - as well as ready-to-wear labels like La Petite Française, Tsunoda and Valérie Khalfon.
A vast majority of Tranoï's new exhibitors are the by-product of the event’s efforts to introduce new product categories. Around 30 brands will exhibit at the new ‘Summer’ section at the Carrousel du Louvre, dedicated to resort wear and beachwear, and the beauty industry will be more extensively represented too. Tranoï will also feature many scented candle and perfume brands among its exhibitors, and is now opening up to cosmetics too. It is doing so introducing a pop-up store format featuring six high-end brands; David Mallett, Le Couvent des Minimes, Saeve, Maskon, Oden and Day + which will be selling both to retailers and to the event’s visitors.
Another novelty, at the Carrousel du Louvre shopping centre, will be a sustainable design exhibition organised with students from the Paris branch of the Parsons Art and Design School.
The Netherlands will support Bangladesh export diversified jute products to the European Union (EU). The CBI will be the implementing agency of the Dutch government. The CBI will take a project to assist the home textiles and handicrafts entrepreneurs of Bangladesh, particularly focusing on the jute-based products for the EU market due to the jute's eco-friendliness and the sector's potential for employment generation especially for women. The CBI will also consider more training opportunities for trade diplomats from Bangladesh.
Considering the huge potential of jute as an eco-friendly product as well as its huge appeal in Europe, CBI will explore more marketing opportunities and assist up-scaling through improved value addition in jute and other jute-based products including various similar products in the sphere of home décor. Selected-businesses and entrepreneurs will have access to tailor-made assistance packages under the new program of assistance between Bangladesh and the Netherlands.
Factory owners in Bangladesh who adopted eco-friendly techniques wish they hadn’t done so. While green techniques demand heavy expenditure, buyers don’t pay more. There is no special privilege for green garment factories. Buyers do not even consider paying a higher price for factory remediation as recommended by Accord and Alliance.
If anything prices of Bangladesh-made garment items have declined 40 per cent over the last 15 years. Bangladesh has the highest number of LEED (Leadership in Energy and Environmental Design) green garment factories certified by the US Green Building Council (USGBC).
Currently, 67 green garment factories are in operation and another 300 are in the process of getting the certification. Of the top ten green garment factories in the world, seven are in Bangladesh. In fact the country has the world's first platinum-rated green denim factory. The world’s highest rated LEED platinum denim factory, knit factory, washing plant and textile mill all are situated in Bangladesh.
Factory owners’ main intent in setting up green factories was to lower the consumption of water and power. They thought branding would give them a mileage in selling goods – but apparently they thought wrong. In South Asia, Bangladesh has taken the lead in green initiatives.
The 11th edition of FESPA Mexico 2018, held from September 20-22, 2018 at the Centro Citibanamex in Mexico City, featured over 150 international leading brands with an increase of 30 per cent in size compared to last year’s show. The event focused on digital wide format, screen printing, garment decoration, signage, print finishing, software and 3D printing sectors.
The show featured product launches, live state-of-the-art demonstrations, free technical and practical seminars, networking opportunities and the chance to discover market trends for 201-19. Attendees evaluated and purchased new equipment and products including large format digital printing equipment, screen printing equipment, consumables for printing, digital printing equipment, sublimation software, LED and neon signs, textile printing equipment, laser, engraving and routers, print finishing, 3D printing, signage, garment decoration and POP / POS display systems.
Several of the world’s top suppliers from the wide format printing industry launched exclusive products at FESPA Mexico 2018. HP, Roland, Epson and Agfa were some of the leading brands who displayed at the event.
Ethiopia’s apparel exports to the US grew 106.69 per cent from January to July this year. The country’s apparel exports in July grew 57 per cent over apparel exports in June. Cotton apparels have a 56.28 per cent share in overall exports from Ethiopia to the US while manmade fiber apparels have a 42.22 per cent share.
Ethiopia has surpassed all other major African countries in terms of percentage-wise growth in apparel exports. The value of Kenya’s apparel exports to the US rose 16.44 per cent. The value of Lesotho’s apparel exports to the US grew 8.05 per cent during the period.
Ethiopia is continuously increasing its share in the US apparel market. The closest competitor is Morocco whose export value to the US rose 3.65 per cent. Ethiopia is expected to overtake Morocco by the end of 2018 in apparel exports to the US. The textile and apparel sector is one of Ethiopia’s key industrial sectors.
Several major foreign companies have invested in the textile and clothing industry in Ethiopia and a number of high profile brand names have started sourcing apparel from the country. Ethiopia has been making efforts to create favorable conditions in order to attract investors.
Brazil’s apparel market is expanding at a substantial CAGR. Rising disposable income and growing consciousness about international fashion trends are the key factors contributing to market growth.
Factors such as increasing shift towards international fashion along with spiraling number of retail outlets are anticipated to encourage Brazilians to adopt fashionable apparel. Diversified manufacturing activities, digitisation, and proliferation of smart phones are likely to have a positive impact on sales.
Brazil is one of the largest exporters of apparel and fashion goods. Arab countries are some of the largest importers of apparels and textiles from Brazil. The United Arab Emirates accounts for the highest imports from Brazil, followed by Egypt, Algeria, and Morocco. Advanced techniques used in manufacturing helps manufacturers meet the demand from various countries.
Heightened interest of the government and private players in the country’s apparel and textile industry has contributed to making the country among the top textile producing countries. Small vendors are being provided subsides and trade barriers are being minimized to develop a favorable business environment in the country and encourage big companies. With economy recovering, the apparel industry is expected to rebound in coming years.
