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As per a deal worth over $10 million between the Australian Alpaca Association (AAA) and MUSIAD Sydney, a Turkish business organisation, a large number of live Australian alpacas will be exported to Turkey for genetics. These alpacas would also be sent to Turkey for scouring and processing into textiles. At present, the fleece is sent to mills in New Zealand for scouring before it can be made into yarns and garments.
The Millpaca stud farm in NSW, Australia produces about 10 tons of fleece each year. According to its owner, and AAA president, Ian Frith, the export deal was a great opportunity for producers as it would help their country, which is the fourth biggest textile manufacturer in the world, boost its breeding herds. The Australian alpaca farmers would be able to explore different markets outside its country and put more value-added products into countries close to Turkey.
Barcelona-based fashion brand Mango reduced loses by 45 per cent to €33 million in fiscal 2017, compared to the previous year's 61 million. The company's turnover, however, declined by 2.9 per cent to €2.19 billion compared to the €2.26 billion reported in 2016. Its EBITDA rose by 50 per cent to €115 million. In 2017, Mango had implemented a restructuring program that resulted in a solid reduction in its net debt. On December 31st, the company's debt decreased 33 per cent, dropping from €617 million to €415 million. Its international operations accounted for 77 per cent of revenue, while Spain made up the remaining 23 per cent.
The brand’s online sales increased by 15.4 per cent to reach €339.2 million, 15.5 per cent of total revenue. These are now predicted to account for 20 per cent of total revenue in 2019. The brand’s investments reached €45 million in 2017, with most of it going towards improving its technological systems. It will further invest €30 million towards digital transformation over the course of this year, along with another 20 million into other projects. The company opened 20 stores last year leading to a total of 211 megastores in India and 2,190 stores across 110 countries.
As per Association of Textile Producers and Exporters of Azerbaijan, Latvia's textile manufacturers plan joint underwear production in Azerbaijan to boost export to CIS markets. The country does not plan to produce in CIS markets as that would be unprofitable for them because of existing customs duties and taxes for the European countries.
Azerbaijani textile products are in great demand abroad and "Made in Azerbaijan" brand is gaining popularity not only in Turkey, but also in the CIS and Baltic countries. Latvianian manufacturers are currently negotiating with the Association of Latvian Lingerie Manufacturers and the Russian Association of Textile Producers for the venture. Presently, Azerbaijan’s textile products are available in Latvia, Russia, Turkey, Ukraine, Belarus. The products produced at the Baku Textile Factory and Gilan Textile Park are available at these trade houses.
The Association of Textile Producers and Exporters was established to support the development of this sector in Azerbaijan. The initiative on the establishment of this association was put forward by entrepreneurs involved in the textile sector. In general, such associations serve to improve relations between the state and the private sector.
Kering has appointed Patrick Pruniaux, current Chief Executive Officer of Ulysse Nardin, as the new CEO of Girard-Perregaux. He will manage the group’s Swiss luxury watchmaking maisons within the watches & jewelry activities. Pruniaux will report to Albert Bensoussan, Chief Executive Officer, Watches & Jewelry Activities, Kering.
Pruniaux’s role will include devising a coherent strategy for accelerating the development of the two Maisons in international markets besides maintaining their unique characteristics, ability to innovate, and the excellence of their know-how. He has over 20 years of experience in the FMCG and luxury industries and in the watchmaking sector in particular. He spent nine years at TAG Heuer and several years at Apple, where he worked on the launch of the Apple watch before becoming MD of Apple in the UK and Ireland.
As clothing sales decline, Japanese apparel companies are diversifying into new fields such as martial arts fitness, boutique hotels and fresh food. Tokyo-based Jun Co, which owns brand Rope, has partnered with American sportswear company Nike Inc in 2015 to create the Nergy brand, which offers sportswear with trendy patterns, as well as martial arts uniforms made from thinner fabric that are easy to wear.
Similarly, TSI Holdings, a Tokyo-based golf clothing brand, in November 2017 opened Groove Zone to offer cycling fitness classes. Okayama-based Stripe International Inc, which owns the casual Koe brand, opened a combination apparel-accessory shop, hotel and restaurant called Hotel Koe Tokyo in Tokyo. Tokyo-based Ryohin Keikaku Co, which owns the Muji brand, has opened a store to sell fresh food in Sakai. The company plans to open a combination hotel-flagship store in Tokyo’s Ginza district next year.
According to a household survey by the Internal Affairs and Communications Ministry, Japan’s average spending on clothing was ¥46,291 in 2017, down 20 per cent from 10 years ago. The apparel market in the country is shrinking, due in part to the declining population and the rise of apps that let people sell their own items.
Intertextile Shanghai Home Textiles will be held from August 27 to 30. This is a trade event covering the entire spectrum of the home furnishing industry like home textile products, furniture fabrics, decorative fabrics and curtain fabrics. Product categories include digital printing, curtains, furniture leather and carpets and rugs.
US brand Lutron, one of the global leaders in the lighting control industry, will offer a wide selection of energy saving dimmers and lighting control solutions. French group Somfy will display automatic control of openings and closures in homes and buildings. Jiangsu Mingcheng from China, an expert in sun-shading and energy-saving technology, will show products allowing users to control curtains by computer, remote, mobile applications.
Carpet Export Promotion Council from India will make its debut at Intertextile Shanghai, organising a pavilion with seven exhibitors who produce hand-knotted wool and silk carpets. Garment and textile machinery expert Global Fortune will introduce its latest advanced textile solutions to the industry.
Kornit Digital, the leading digital textile printer, will showcase its Kornit Allegro system which combines printing and drying in a single step. The system eliminates unnecessary machineries, shortens production time and is widely applicable on multiple fabric types. Leatech will showcase 3D simulation software that allows flexible design and efficient production.
Garment Technology Expo (GTE) was held in Bangalore, August 18 to 20. This is South Asia’s largest and most comprehensive exhibition on apparel, knitting, textile printing technology, fabrics, accessories and allied services. The world's most advanced machines and materials were showcased under one roof. It featured more than 180 exhibitors from all segments of apparel manufacturing and trims.
Along with top exporters, many domestic retail giants, brands and start ups visited the show. Among the visitors were senior executives and decision makers from domestic garment manufacturers, exporters, buying houses, designers, wholesalers, retailers, ordinance factories etc who are looking for machines and materials needed for upgradation and setting up new units for sourcing their requirements.
Bangalore-based buying houses visited the show as they were keen to know about the latest machines and technology. Technology got a great response all through the event. Be it Brother’s IoT technology or Duerkopp Adler’s new launch of the 755S Speed Pocket automated machine, the offerings got an overwhelming response from the industry.
GTE Bangalore, having started in 2006, is held every alternate year and is also growing in stature and reach with each show.
Finished apparel, home furnishings and other made-up textile goods make up 93.5 per cent of US imports from China in the apparel sector. Fiber, yarn and fabric imports from China into the US represent only 6.5 per cent of the apparel sector.
Given that apparel and other sewn products made in China almost always contain Chinese inputs, a significantly greater value of fibers, yarns and fabrics made in China enter the US market in the form of Chinese-made downstream finished products than at the input stage.
Most of China’s 10 million direct textile and apparel jobs are concentrated at the final steps of the supply chain, the highly labor-intensive cutting and sewing operations. China predominantly ships end items versus intermediate inputs. End item imports most directly and negatively impact US textile and apparel production, investment and jobs.
China’s apparel and other textile-based end items compete head to head with western hemisphere products that typically are made from US fibers, yarns and fabrics. By the time a pair of Chinese blue jeans arrives in the US market, they are in a position to displace other products in the market. The US textile industry would be negatively impacted by additional tariffs of 10 per cent or up to 25 per cent on product from China.
The area under cotton in India has reduced. The reduction in area is primarily in the two major cotton growing states of Gujarat and Maharashtra. Deficit rains and pest pressures have prompted farmers to either plant alternate crops, or delay/abandon planting altogether. The planted area is four per cent lower than last year.
In central Maharashtra a significant part of the cotton area has shifted to soybeans and fodder maize. The number of rainy days in July in major cotton districts has ranged between 5 to 15 days, prompting farmers to either delay planting or plant alternate crops. But farmers continue to prefer planting BT cotton due to its relative drought tolerance over competing crops, and wide planting window. The plants are in the early vegetative stage, with farmers mostly undertaking weeding operations.
In Saurashtra, Gujarat, farmers have replanted cotton in major cotton growing districts as lack of adequate moisture in July led to crop failure. Farmers have shifted acreage from groundnut to cotton due to poor price realization from groundnuts last year.
While there is a marginal increase in cotton acreage, the prolonged dry spell is affecting plant development, and is expected to have a significant impact on cotton yields if rains are not received in the next 15 days.
"The messy state of Indian democracy has made it difficult to achieve a modest consensus on the Regional Comprehensive Economic Partnership or RCEP - a giant trade deal that weaves India, the Association of Southeast Asian Nations (ASEAN), Oceania, China, Japan and Korea together. The country has to arrive at constructive decision by August-end, when ministers from the 16 RCEP countries meet in Singapore. If New Delhi’s negotiators fail to achieve a consensus by then, the remaining 15 countries will have to move ahead without it. For many Indians though, this wouldn’t be much of a tragedy. India’s goods trade deficit with China was 60 per cent of its overall trade deficit. According to Indian policymakers, much of what’s being imported is sub-standard and susceptible to anti-dumping legislation. So far, 214 separate investigations have been opened against China for exporting substandard goods, which has worried policymakers about the effectiveness of the anti-dumping measures."
The messy state of Indian democracy has made it difficult to achieve a modest consensus on the Regional Comprehensive Economic Partnership or RCEP - a giant trade deal that weaves India, the Association of Southeast Asian Nations (ASEAN), Oceania, China, Japan and Korea together. The country has to arrive at constructive decision by August-end, when ministers from the 16 RCEP countries meet in Singapore. If New Delhi’s negotiators fail to achieve a consensus by then, the remaining 15 countries will have to move ahead without it.
For many Indians though, this wouldn’t be much of a tragedy. India’s goods trade deficit with China was 60 per cent of its overall trade deficit. According to Indian policymakers, much of what’s being imported is sub-standard and susceptible to anti-dumping legislation. So far, 214 separate investigations have been opened against China for exporting substandard goods, which has worried policymakers about the effectiveness of the anti-dumping measures.
More conducive measures required
India’s main concern is that RCEP’s focus on reducing goods’ tariffs is not adequate and the deal needs to open services trade simultaneously. It also needs
to accord greater freedom of movement to professionals who are a major source of foreign currency for India. The real constraints of trade growth are non-tariff barriers which make competing in the Chinese domestic market such a nightmare.
However, certain Indian sectors have panicked about competition. One of them is steel -- which is slowly recovering after years of pummeling thanks to Chinese overcapacity. Dairy producers obsess about Australia and New Zealand. Manufacturers worry about everyone.
The problem is that, at the moment, RCEP is the only proposed deal. India needs to arrive at a more positive, forward-looking approach by the end of the month or it must abandon its ambition to infiltrate global supply chains. This could be disastrous as the country will shortly have the world’s largest workforce but a mere a 2 percent share of world trade.
Therefore, instead of being concerned about China’s overcapacity and its ability to dump goods, India must show to the world that a regional trade agreement that prevents countries from bringing fair, transparent and temporary anti-dumping actions is in nobody’s interest.
Need for a positive approach
India has raised tariffs on 400 products over the past two years, which is a major departure from a generation-long trend towards greater openness. It has unilaterally scrapped investor protection treaties with almost 60 countries. Even the government’s choice of economic policy advisers reflects a new distrust of the world. The American-educated economists who defined the Modi government’s initial years have been eased out, not entirely gracefully.
As the country retreats from the turnpike of world trade to the dirt road of autarky, it will be poorer in both the medium- and long-term. Therefore if the government wants to reassure the world that India isn’t willing to put up with the dirt road, then it needs to find a way to be more positive about RCEP.
