FW
India’s cotton prices witnessed a fluctuation within a narrow range during the second half of February. However, fiber prices came down marginally after the fluctuation. As February witnessed higher market prices, arrival of the fiber has improved and supply has eased. Farmers and traders released the fiber as prices were favorable. At the same time, improved availability has brought down prices too.
The total cotton arrival in the country so far is estimated to be around 19 million bales and current arrival is estimated to be between 1,80,000 to 2,00,000 bales per day across India. It’s estimated that domestic consumption of cotton will improve this year to 29.5 million bales while production will be at 34.1 million bales.
This indicates availability of the fiber in abundance as exports have been slow and some exporters have cancelled export shipments due to strong domestic cotton prices. On the price front, current domestic price of the benchmark Shankar-6 variety was recorded at around Rs 43,000 a candy, which is higher by Rs 300 a candy compared to mid February prices.
On the global front, cotton prices continued with the fluctuation within a narrow range during the second half of February. India’s demonetisation drive has tightened the fiber supply and helped global cotton price gain.
India’s cotton production is projected to rise by two per cent in 2017-18 as area expands by seven per cent. China’s cotton production may increase by two per cent. Production in the United States is forecast to rise by just one per cent. Assuming normal weather patterns, the harvested area is projected to expand by three per cent. Pakistan’s cotton production is forecast to grow by eleven per cent. Its cotton area is projected to expand by three per cent. Average yield may grow by eight per cent.
Global cotton production is forecast to grow by 23.1 million tons on a planted area of 30.4 million hectares in 2017-18. World cotton consumption is expected to remain stable. Given the strong demand this season, and anticipated world economic growth in 2017 and 2018, world mill use is forecast to increase by one per cent.
China’s share of cotton consumption is likely to remain at 30 per cent. Mill use in India is projected to decline by three per cent in 2016-17 but is forecast to recover by one per cent in 2017-18. Consumption in Bangladesh continues to grow due to strong textile exports, with its mill use likely to rise by five per cent in 2017-18. Mill use in Vietnam has more than doubled in the last five years.
ThreadSol has a range of innovative software solutions for apparel manufacturers. The aim is to cut fabric waste for garment manufacturers. Fabric accounts for about 70 per cent of the operational cost of garment manufacturing units, where the average amount of waste can vary from eight per cent to as high as 16 per cent, largely because the length and width of cloth varies across mills.
ThreadSol helps garment manufacturers cut down fabric waste right from the purchase of the fabric to getting the garment ready. So a semi-literate worker at a factory can punch in basic details like sizes of garments to be made, length and width of fabric to be used and can get suggestions in terms of the most economical ways to make use of the fabric.
ThreadSol offers the solution both as a cloud-based software as a service where companies pay per use or an on-premise solution for which companies pay a license fee. The larger idea is to expand use of the software across similar industry segments like footwear, upholstery, technical textiles and bags. The company, based in New Delhi, is participating in the Garment Technology Expo 2017, New Delhi, March 3 to 6, 2017.
Purified Terephthalic Acid (PTA) prices in China witnessed a fluctuating trend in the second half of February. Though the high price of the commodity is deterring buyers from resuming procurement, the market remained busy and the demand may pick up further. Demand for PTA would be enough to meet the current supply. Therefore PTA prices are expected to remain healthy.
Monoethylene Glycol (MEG) prices witnessed a fluctuating trend during the second half of February as well. MEG prices started declining from mid February, which continued before rebounding toward month end. Supply concerns for MEG are over but couple of plant shut-downs in Singapore and India might disrupt supply. As the number of polyester plants are increasing capacity utilisation after the Lunar New Year holidays, MEG demands will increase gradually. However, the high price of the commodity has damped demand and therefore demand for the commodity might be determined by price in the short term.
Polyethylene terephthalate (PET) prices witnessed a marginal downward trend as raw material prices back tracked. Demand for PET chips is good but high prices kept the buyers in dilemma on procurement decisions. However as lower offers emerged in the market buying volumes might improve substantially. Chip prices are expected to move in line with raw material prices in the coming weeks.
Mongolian brand Hebei Yuteng offers organic cashmere. The production is carried out to Oeko-Tex standards. Hebei Yuteng was founded in 2003 and has the world’s most advanced cashmere carding processing equipment. Inner Mongolia is a major cashmere growing region.
The company has set up raw material branch corporations in Inner Mongolia, Liaoning, and Qinghai to source the finest quality cashmere. Cashmere is a fiber obtained from cashmere goats and other types of goat. The fiber is finer and softer than sheep’s wool.
Recent years have seen the global cashmere knitwear market outgrowing luxury apparel market, with dressed-down, comfort-led trends like athleisure becoming the main driver of demand. At one time it was a highly expensive commodity. These days affordable, casual cashmere products have become popular. Brands such as H&M and Uniqlo retail pure cashmere knitwear products. Other brands are developing blends of cashmere and sport-friendly materials like spandex.
However, growing global demand for cashmere has placed pressure on supply and made it increasingly important that suppliers adopt sustainable herding practices and the holistic management of pasture lands. Most global cashmere output comes from China, where there are over 100 million goats. It can take four goats to produce enough fibers for one sweater.
"The global market for denim jeans is expected to touch $79.2 billion by 2022, driven by the expanding urban population, an increase in white-collar employees, changing perceptions about ‘executive wear’ and the resulting acceptance of jeans as business casual attire for men and growing base of women in the workforce."
The global market for denim jeans is expected to touch $79.2 billion by 2022, driven by the expanding urban population, an increase in white-collar employees, changing perceptions about ‘executive wear’ and the resulting acceptance of jeans as business casual attire for men and growing base of women in the workforce.
A transformation on the way
Denim is the world's favourite fashion fabric which through the ages underwent sea changes. From being originally designed for cowboys, miners and factory workers, to being a symbol of youthful rebellion, to being a staple in western closets to finally becoming the world's best loved clothing, denim jeans continues to rule the fashion world. The diverse denim jeans market offers wide-ranging styles to new age customers, from bell-bottoms and classic boot-cuts to 'mom' and 'boyfriend' jeans. Denim trousers are found everyone’s wardrobes, and most women own more than one and up to 10 varieties of cuts and washes. Denim sales based on styles and fits are heavily dependent on street fashion and celebrity fashion trends. In terms of style alone, denim jeans are expected to forever remain the most dominant apparel within the global casual clothing segment. Denim garments' ownership is highest in the US, Colombia, Mexico and other South American nations, and lowest in India, Japan and other Asian markets.
The denim jeans market is primarily categorised into high-end/premium, mass market and economy/standard, with high-end premium jeans accounting for a 55 per cent of the market. The market is dominated by women who showcase a keen interest to adopt latest fashion and trends in clothing.
Factors riding growth
Opening up of markets that traditionally resisted the jeans culture, denim manufacturers continued innovation in design such as digitally printed jeans, vegan fabrics and sophisticated weaves, and technology innovation in stretch and performance, and fibre blends. Growing westernisation and urbanisation, rising fashion consciousness, coupled with growing affluence of the middle-class population are anticipated to further propel the demand for denim jeans over the coming years. Another key trend in the market is the proliferation of denim jeans in the corporate world as an accepted executive wear. Blue jeans in the boardroom are also gaining prominence with jeans becoming the new symbol of power dressing expressive of valuable executive qualities such as confidence and innovativeness.
Growing expanse globally
As stated by Research & Markets report, the US represents the single largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 7.1 per cent over the analysis period, led by China, which features among the world's largest cotton growers and a leading denim weaver and jeans manufacturer. Other factors driving growth in the region is growing urban population, rising standards of living, increasing disposable incomes, preference for high-end and premium designer labels among the expanding base of affluent middle class population, globalisation, changing cultural norms and breakdown of cultural imperialism all which lay the foundation for the acceptance of jeans. Fast-fashion brands like Zara and H&M are aggressively expanding into the Asia Pacific region, which is strengthening the demand for standard jeans.
Arab countries like Saudi Arabia and Kuwait are exploring investment opportunities in Uganda especially in textile manufacturing, construction of warehouses and assembling buses. Uganda is looking for investors in textiles and leather. The country has now imposed a ban on the export of raw hides and skin to enable the leather industry to grow.
Uganda currently has only three textile plansts, yet they harvest cotton twice a year, with production standing at 1,02,619 bales a year. Uganda has the best quality cotton in east Africa but most of it is exported semi-processed.
About 10 per cent of Uganda’s annual cotton output is processed locally and 90 per cent of its cotton as lint is exported. The country has more than 38 cotton lint exporters.
Uganda produces seven million metric tons of grain a year; however, the storage infrastructure available is for only 550 metric tons, leaving a very big gap. So it would like investors to build storage facilities, especially warehouses, and assembling of buses for public transport. The aim is to have warehouses with a capacity of 7,00,000 metric tons distributed across regions. Land for construction of warehouses will be provided, and an added benefit is that there would be huge employment opportunities.
The Khadi and Village Industries Commission (KVIC) will upgrade its six cotton sliver plants. The aim is to increase cotton supply to khadi institutions. The plants' production capacity will be increased by 40 per cent. KVIC will spend about Rs 40 crores on the upgradation of the plants. More such sliver plants may be set up. Another plan is to encourage prison inmates to take up khadi production and provide a platform at KVIC's khadi outlets. If this works the scheme will be extended to prisons across the country.
Recognising the importance of enhancing the wages of khadi artisans to a moderate level, and in order to ensure that the profession provides sustainable life support, the commission will increase the remuneration per hank. This will increase the income of over 1.5 million khadi artisans across India. Higher wages are expected to help improve khadi production in India.
KVIC has set a target of Rs 2000 crores of sales of khadi and village industries products in the year 2016-17. Last year sales stood at Rs 1510 crores. Going forward, KVIC is aiming at sales worth Rs 5,000 crores in the next two years. KVIC is also setting up export cells to promote overseas sales of the products.
Garment factories in Bangladesh are adopting sustainable practices. The sector has made impressive efforts to embrace green practices and ensure well-being of workers. Some 67 garment factories of Bangladesh have obtained a highly regarded global certification -- the Leadership in Energy and Environmental Design (LEED) of the US Green Building Council. Another 222 factories have registered to obtain the recognition.
Currently, Bangladesh has 13 platinum-rated, 20 gold-rated, 27 silver-rated and 7 LEED-certified garment factories. Seven of the world’s top ten green factories are from Bangladesh, including the top three platinum-rated industrial units. Platinum is the highest level of certification that a factory can earn.
Green factories in Bangladesh are not only about saving energy or water or protecting the environment. They are also about ensuring a safe workplace. A green factory also houses schools, childcare, health care, recreation and training facilities dedicated to workers.
The two-storey Eco Couture is LEED gold-certified and is located on a 1,44,000 sq ft space where all operations from sewing to packing of a product take place. Eco Couture is designed in the concept of an opera house where artistes work. Garment workers are treated like artistes as they are involved in innovative work.
SEAMS, the National Association for the US Sewn Products and Textile Industries, will mark its 50th anniversary at the annual Spring Networking Conference ‘Shaping the Next 50 Years’. The conference on sewn products will be held at OMNI Grove Park Inn in Asheville, North Carolina, from May 16 to 17, 2017. The conference will explore trends and opportunities that diverse sewn products brands, original equipment manufacturers, suppliers, and retailers will encounter as they grow into the future.
The event is meant for textile providers, contract manufacturers, brands, vertical retailers and their suppliers and service providers who collectively represent the complete concept-to-consumer supply chain. It aims at promoting the continued growth of the US fashion, sewn products and textile industries through educational programs, networking opportunities, business opportunity matchmaking, industry collaboration and special member benefits packages.
Attendees will have the opportunity to introduce their company to all attendees, meet industry-focused benefits providers, and visit special products/services displays during the conference.
Highlights include a keynote presentation on trends and predictions delivered by a noted futurist, feature presentations covering trade, government relations, human resources and more, breakout sessions on several relevant industry topics to choose from, and a panel discussion, which will provide an update on trends in military, automotive, industrial and other segments. The focus is on preparing members to embrace the future.
A new single-day conference program will be preceded by an optional plant tour, golf outing, opening reception and dinner.
