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The Berlin Bread & Butter show, held from August 31-September 2, 2018 witnessed a surge in visitors compared to last year. The show, this year was visited by around 35,000 visitors, compared to 30,000 last year. The show had over 40 exhibitor stands, majority of which housed fashion brands. Cosmetics labels Clinique, M.A.C. and Origins were present as was German e-tailer Zalando, the owner of Bread && Butter, which has featured a beauty section in the exhibition since March 2018.

Popular exhibitors either put their products up for sale or offered services, entertainment or even the chance to take part in a prize draw, like Mercedes, which offered visitors a chance to try their luck at winning a car. Exhibitors like Nike and Adidas also adopted a experiential approach by staging concerts, while Columbia’s stand offered T-shirts customised using paintball equipment in a transparent booth.

 

"Bangladesh’s merchandise exports in the last couple of years have declined to a single digit. The country’s average export growth between FY15 and FY18 was only 5.03 per cent. Moreover, export earnings in the last three years have fallen behind annual projection of the Seventh Five-Year Plan (7FYP). In the past fiscal year, value of merchandise export stood at $36.66 billion as against the projected $42.0 billion. The government has targeted export earnings of $39.0 billion for the current fiscal year (FY19). This is much lower than the projected figure of $47.46 billion. The government has also set an annual target of service export at $5.0 billion in the current fiscal year against the actual export of $4.53 billion in FY18."

 

Bangladesh revamping trade policies to boost exports 002Bangladesh’s merchandise exports in the last couple of years have declined to a single digit. The country’s average export growth between FY15 and FY18 was only 5.03 per cent. Moreover, export earnings in the last three years have fallen behind annual projection of the Seventh Five-Year Plan (7FYP). In the past fiscal year, value of merchandise export stood at $36.66 billion as against the projected $42.0 billion.

The government has targeted export earnings of $39.0 billion for the current fiscal year (FY19). This is much lower than the projected figure of $47.46 billion. The government has also set an annual target of service export at $5.0 billion in the current fiscal year against the actual export of $4.53 billion in FY18.

Implications of US-China tariff war

The ongoing tariff war between US and China has disturbed the trade order of the world. Trump has been trying to avoid a global trade order since heBangladesh revamping trade policies to boost exports 001 assumed office in 2017. In July, the US imposed 25 per cent tariff on Chinese goods worth $34 billion to which China retaliated by imposing its own tariffs on the US goods. The US is again planning to impose a 25 per cent tariff on $16 billion worth of Chinese goods starting August 23. This tariff war is provoking many other countries to increase tariffs on their imports. For instance, India doubled the tariff on more than 300 textile products to 20 per cent on August 07. The hike is mainly targeted to contain import from China.

Increase in Bangladeshi exports

Export from Bangladesh surged around 30 per cent in the past fiscal year and stood at $873.27 million compared to $672.40 million in FY17. This is for the first time Bangladesh's exports to India crossed $800 million. Textile products, ready-made garment (RMG) to be precise, contributed significantly to the increase of export to India where Bangladesh is enjoying tariff-free market access. The increased tariff will not, however, be applicable to countries which have free trade deals with India.

Effects of a trade war on LDCs

As per estimates of The United Nations Conference on Trade and Development (UNCTAD) Bangladeshi products may face an average tariff over 40 per cent if the world enters a full-fledged trade war. The UN body fears this trade war will severely affect the world's poorest countries and dash the hope of doubling the share of the Least Developed Countries' (LDCs) in global exports by 2020 under the Sustainable Development Goals (SDGs).

The World Trade Statistical Review 2018 states merchandise exports of LDCs increased 13 per cent to reach $164.23 billion which is around 0.96 per cent of the total global export in 2017. As per the SDGs target, the share of LDCs' export to global exports would have to reach 2.0 per cent. In the ongoing volatile trade regime, it is unlikely that the LDCs will be able to reach the target within three years.

Refurbishing the policies

To increase these exports, the export policy needs to be revamped. The tenure of the current three-year export policy ended in June this year. Any delay in finalising and enforcing the new policy may send wrong signals to the exporters. The potential sectors would not get adequate policy and fiscal supports. Efforts of exploring new markets and increasing the shares in the emerging markets may also slow down. Therefore, a long-term trade strategy is essential to prepare the country to face the challenges of the global trade war.

 

World Textile Information Network (WTIN) has launched Protective Textiles, a new online channel. The channel will cover both demand and supply side trends and analyse their impact on companies, enabling better and faster business decisions, helping to increase competitiveness, raise profitability and facilitate innovation.

It is the first comprehensive intelligence platform for the protective textiles industry and will be an invaluable resource for product developers and business strategists, helping converters identify new textile technologies and the companies behind them, while offering textile producers unmatched insights into downstream markets and trends. World Textile Information Network is a textiles knowledge provider. Protective Textiles will offer fully researched intelligence into the markets and technology of textiles designed to protect against a range of hazards, including heat, cold, chemicals, physical injury and biological organisms. It will provide access to all the sector’s information needs on one platform, including technological developments, market trends, and customer and competitor analysis.

With rising concerns about worker safety, including protection from fire, chemical agents, and disabling and life-threatening injuries, demand for high-performance protective fabrics is rising. The global protective textiles market is expected to grow up to four per cent annually over the next few years, creating many commercial opportunities.

Indonesia can reduce its import of textile raw materials by urging textile product manufacturers to switch to cellulose fiber. Currently, the country imports all raw materials to produce cotton-based textiles. Requirement for 80 per cent of synthetic fiber or polyester raw materials is been met by domestic industries, while the remaining 20 per cent is still imported.

The Ministry of Industry estimates a number of new factories will enter the market to provide raw materials. This will be supported by the national industry's ability to produce high-quality rayon as plants for producing the raw material for rayon fiber can be harvested in relatively shorter ages in Indonesia compared to countries that have four seasons. Meanwhile, investment commitments in upstream petrochemical sector will make Indonesia independent in procuring fiber. The Ministry of Industry, in the next three and five years, will also encourage synthetic fibers as raw materials.

 

Garment manufacturers in Vietnam are trying to capture the domestic market. They are developing and introducing new products for local consumers and turning to becoming original design manufacturers. They are investing in new technologies and focusing on new product development. As of now the market is predominated by global brands.

Spending on garment products accounts for about six per cent of Vietnamese consumers’ total spending, indicating that the market holds great potential for domestic enterprises. These companies are attempting to raise their market share from ten per cent to 30 per cent. Despite their strength in exports and being the world’s third largest garment exporter, Vietnamese garment companies have yet to tap into the domestic market in a significant way. Most companies focus on developing stores in major towns and cities without adequate attention to the rural market.

Vietnamese garment makers need to renovate their management methods and equipment while ensuring quality and affordable prices of their products. They also need to focus on designs, building brands and expanding the retail network in order to increase their competitiveness and capture the domestic market share.

One company has opened nearly 200 fashion outlets throughout the country featuring a wide variety of products. Some companies are introducing their own brands to the market.

As per the General Department of Vietnam Customs, the country has imported cotton worth over $2 billion during the first eight months of 2018. Of this, imports from the US exceeded $1 billion. This increase in cotton imports was attributed to growth in garment and textile exports, as Vietnam depends on nearly 100 per cent imported cotton materials. Vietnam plans to buy over $3 billion worth of cotton this year, up $700-800 million against the previous year. The country has also set a target of earning $34-35 billion from garment and textile exports.

Last year, the textile and garment industry gained a year-on-year increase of 10.23 per cent in export value to $31 billion, beating its target set at the beginning of the year of $30 billion.

 

As per RIA Novosti reports referring to Dilbar Muhamedova, Head of the Department of Strategic Forecasting of UzTekstilProm (Uzbek Textile Industry) Association, Uzbekistan plans to stop export of cotton fiber and ensure its full processing in the domestic market by 2025. The industry, in 2018 will process about 520,000 tonne of cotton fiber with the current design capacity of 720,000 tonne. In March this year, Shavkat Mirziyoye, President, Uzbekistan announced plans to reduce cotton exports and increase its processing in the domestic market. The country, every year, produces about 3.5 million tonne of raw cotton and 1-1.2 million tonne of cotton fiber. About 50 percent of the produced cotton fiber is exported.

 

Refunds of VAT and GST will benefit denim fabric maker Nandan Denim by Rs 20 crores annually. This subsidy benefit is likely to be recognised by the company from Q2. Nandan Denim reported a profit of Rs 5.23 crores for the three months ended June compared to Rs 16.31 crores in the same period a year ago. Net sales were Rs 359.62 crores during the three months ended June compared to sales of Rs 424.44 crores a year ago.

Power subsidy will be around Rs 4 crores to Rs 5 crores on an annual basis. And GST will be around 2.5 per cent of the sales made in Gujarat. Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.

The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material. A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover.

 

The Sri Lankan Board of Investment (BOI) has approved setting up of six apparel factories in the Northern region. These factories will be set up with an investment of Rs 8 billion and provide employment to 7,917 workers. The six apparel plants include: Omega Line, Hirdaramani Fashion, Hirdaramani Clothing, Timex Garments, MAS Active and MAS Intimates.

Another 15 projects in different sectors are also operational and represent investments of Rs 16.3 billion and have employed about 837 workers in the Northern region. Two new projects of the BOI currently awaiting commercial operation, five projects are looking forward for implementation, two have been awaiting the signing of agreements while five are awaiting for approval.

 

Pure London will be held from February 10 to 12, 2019. With an international audience the three-day seasonal show will strive to help the industry navigate global issues in the fashion industry, including the storm that is Brexit, by providing a platform to answer the key questions many are too afraid to ask.

Visitors will continue to see over 700 women’s and menswear brands offering ready to wear and premium collections, footwear and accessories as well as the recently rebranded Gen Z section. Pure London will continue to evolve and build on the progress made towards creating a sustainable future for fashion. The show will feature a graffiti style pledge wall for visitors to interact with. A unified festival of fashion will be created across London, offering collaborative solutions to benefit visitors.

Pure London is UK's leading trade fashion buying event, representing women’s wear, menswear, footwear, accessories and young fashion. The show offers buyers from UK and international independents, multiples, department stores, etailers and mail order the opportunity to discover collections launching for the season ahead, attend catwalk shows and hear from their peers and other industry experts in valuable seminars and workshops. Pure London is an ITE Group event. ITE is one of the world’s leading organisers of international exhibitions and conferences.

 

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