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Ever since the Philippines was granted Generalised Scheme of Preferences Plus (GSP+) by the European Union (EU) in December 2014, an anticipated boost for garment exports failed to materialise. Receiving GSP+ status meant 6,274 Philippines export products were given duty-free access to the EU market. And while data from the Philippines Statistics Authority shows that overall exports to the EU have seen improvement in 2015, with growth of 6.8 per cent year-on-year, from 2.4 per cent in 2014, it’s not the monumental increase that was predicted.
Meanwhile, the textile experts attribute this to the scheme’s rules of origin – which restrict raw material sourcing from outside the south-east Asian country or its neighbours if it wants the resulting products to be covered by GSP+. As the Philippines have few upstream textile plants, local garment manufacturers rely heavily on foreign yarns for variety, the usage of which is restricted under GSP+.
Indeed, there appears to be only two commercial textile mills left in the Philippines, down from more than 50 in the 1980s. Of the five cited by Philippines news reports in 2015, one has now closed, with two revealing that they make products other than traded fabrics – for instance, souvenirs. Textile production in the country has fallen victim to high electricity bills and workers’ wages being high by regional standards.
In a significant development, four leading companies in the denim supply chain are unveiling a new project designed to provide a working roadmap towards more sustainable jeans production. This includes a prototype collection based on the most efficient use of resources. Archroma, the textile chemicals specialists and Garmon Chemicals, fiber producer Lenzing and denim fabric producer Royo have all joined forces for the 'Roadmap to Rational Denim' project, which is being launched at The Kingpins Show in Amsterdam and looks at producing denim in a more responsible way.
A staggering 1.84 trillion liters of water is used in the manufacture of jeans every month, with 11,000 liters of water needed to make one pair of jeans, and 167m pairs being produced each month. The idea for the project was to look to produce denim garments based on the most efficient possible use of resources, in particular water, at each stage of the production process – from fiber to finish. Each of the four companies contributed its expertise in a particular part of the manufacturing process to provide a working guideline towards more rational and sustainable production of jeans.
Aquafil’s ECONYL brand has partnered with Levi’s to develop a new men’s collection made from regenerated nylon that has come from waste materials such as fishing nets and spent carpets. ECONYL fiber helps divert global waste streams from landfills and oceans. It is used to produce a wide range of textile products, including socks, sportswear, underwear, swimwear, and carpets. This is the first time the regenerated yarn will be used in jeans.
This new collection is a sustainable move that aims to make a small dent in the ocean’s pollution and also sever a dependence on cotton production. By partnering with ECONYL for the first time, Levi’s aims to show its commitment to a sustainable supply chain.
There is no guarantee that there will be enough land available to meet the global demand for cotton, which is the main input for denim apparel in the future. In order to be a successful company in a world where resources are constrained, Levi’s believes it needs to continue towards achieving closed-loop apparel, while also seeking to incorporate other alternatives to virgin raw materials.
According to Giulio Bonazzi, the Chairman and CEO of Aquafil, his company foresees a world where everyday items don’t have to come at the expense of the environment. This new partnership is further proof that sustainable materials can be used to reinvigorate products that have been traditionally made. Levi’s is redefining the denim industry, he concluded.
The one-day congress - The Transformers, organised by the makers of Kingpins one day ahead of the eponymous denim trade show took place in Amsterdam prior to Denim Days that turns the Dutch city into the epicenter of denim.
The Transformers was dedicated to the dark side of the denim and clothing industry focusing on the topic of garbage and its avoidance. ‘The good, the bad & the ugly’ was the well-chosen subtitle which was meant to make clear in advance that the industry and retailers as well as the consumers do have options in improving the ecological situation by their product offer respectively their consumption behavior and it’s necessary to bring more transparency into the production cycles. This was the consensus between the panelists that included Robert Antoshak of Olah Inc., Michael Kininmonth of Lenzing, Miguel Sanchez of Archroma, Dr. Sedef Uncu Aki of Bossa and Marco Corti of Garmon among others.
Earlier, speakers representing the whole supply chain explained where garbage is produced and how to deal with it. Ten per cent of our turnover is made with sustainable products. But also the rest is produced in a way where we constantly try to minimize the formation of waste and the use of energy, according to Dr. Sedef Uncu Aki of Bossa.
Italy sees Iran as an attractive market for luxury goods. It’s thought Iran has more than three million high net worth individuals who are major and regular buyers of luxury goods. Iran could probably be worth about two per cent of the global luxury market once developed.
The sanctions on Iran over the past decade did not apply to cosmetics and many other consumer goods, but they made it difficult for European companies to own stores in Iran. In February, fashion house Roberto Cavalli opened its first shop in Iran, in the footsteps of leather goods maker Piquadro and men’s shirt company Camicissima. Versace is due to open a flagship boutique in Tehran soon, in franchise with a local commercial partner.
However, setting up businesses in Iran is no easy task due to a lack of appropriate retail infrastructure, high tariffs and banking restrictions. Iran is hungry for infrastructure investment as it emerges from financial isolation and it’s seeking a strong Italian foothold. Iran rejoined the global trading system in January following a deal to lift crippling sanctions in exchange for limiting its nuclear activities.
Italian firms appear to have adopted a more proactive attitude than their French luxury and fashion rivals. Some French brands such as Longchamp and Lalique are looking for distribution partners but have no plans to open boutiques.
Textile manufacturers in Coimbatore and Tirupur are trying to conserve air flow from compressors in their spinning and weaving machines to plug leakages and save energy. Many mills have robust air monitoring systems.
Compressed air is a key input for modern machines from spinning to weaving. Sealing off weak portions and optimising compressor capacity will reduce draw of power by textile machines, which are power guzzlers.
In Tamil Nadu’s textile belt, a large portion of the spinners belong in the category of small and medium enterprises. For an average mill with a capacity of 25,000 spindles, energy savings through air monitoring stand at 750 units every day. For the state’s spinning industry, the annual savings are estimated at Rs 200 crores.
Modern textile machines are operated by pneumatic systems, which use gas or compressed air for key processes. Compressed air needs to be clean, dry and devoid of impurities like oil or moisture. These can lead to defective garments, higher power consumption or even a sudden breakdown, risking higher capital costs for entrepreneurs. Maintenance costs of a compressed air system equal the price of the product in three years.
In modern weaving machines, compressed air ejected from fine nozzles moves weaved threads from one end of the machine to another, a process that was done manually earlier.
Indian spinning mills want the anti-dumping duty imposed on imports of viscose staple fiber to be scrapped. The feeling is that the levy could hit domestic textile manufacturers who are already reeling under a high cost of production and sagging export demand. India imports viscose staple fiber mainly from Indonesia and China. The fiber is one of the major inputs for manufacturing of man-made fiber yarn in India and is mostly used for the manufacture of fabrics made of poly viscose and viscose yarn.
One criticism of the anti-dumping duty is that it’s being used by domestic viscose staple fiber manufacturers as a shield to cover their inefficiencies and inadequacies in a competitive environment. The demand for viscose staple fiber is expected to rise on the back of rising disposable incomes. Lower requirements of resources land and water have made viscose staple fiber preferable to and more cost effective than cotton production.
Fabrics of viscose fibers are easily dyed and have excellent hygienic properties. India is the second largest producer of viscose filament yarn in the world. Depending upon the intended use, viscose fibers are made into textile or cord threads as well as staple fiber.
Cotton futures set a fresh two-month high in New York, after a three per cent jump in prices in China overnight, encouraged by a downgrade to a key world supply forecast, and concerns over the crop losing out in farmers’ sowing plans. And prices were also gaining support from the rise in values of other crops, notably soybeans, which are rivals in US spring sowings programs.
Chicago soybean futures are providing a bit more support for the cotton market. Soybeans are one of the main competitor crops for cotton in the US South in terms of the battle for area in farmers’ planting plans. New York futures, which remain a little shy of year-ago levels, are also curtailing expectations of large crops in many other producing countries, such as Australia and Brazil, too.
Strong textile exports, especially of apparel and bed wear, have forced Pakistan's textile sector to look to imported cotton, especially from India, to make up for a significantly smaller domestic crop. The forecast for US carryout inventories was trimmed by one lakh bales. Prices are not conducive to large cotton crops around the world.
The rally in cotton is seen as gaining extra pace thanks to a scramble by speculators - who had bet on further price falls - to close short positions, putting extra buying power into the market.
Setex, based in Germany, is a leader in designing, manufacturing and implementing automation solutions for textile dyeing and finishing machines. Setex’s new production management software, OrgaTex X1, guides intelligent communication to machines for efficient production and energy management. OrgaTex X1’s production management software offers newly designed process and recipe handling. The modules provide new features to simplify the complex production steps, systematically save expert know-how and optimise resource efficiency.
OrgaTex X1 is also customisable. Although dyeing machines significantly lower liquor ratio and require less chemical quantities, this software suite is designed to further reduce dyeing time and production costs, optimising the throughput and exposing weak spots and bottlenecks.
The philosophy of the new software is to bring the best-in-class recipe tools while still providing the flexibility of using simple flat recipe methods. As such, converted information and experience is usable as formulas, wizards assist the creation of formulas, and there are predefined formulas shipped with the system.
Each machine can be considered within the overall energy management concept. Intelligent integration of dosing systems can save chemicals and water. The operation is independent of operator skill. OrgaTex X1 has enhanced adapters to communicate with dyeing and finishing machines for ecological and cost improvement. This is essential for a fast and smooth implementation in production running at full capacity.
"Liva the fiber brand from Birla Cellulose is gaining popularity among garment brands. Liva is the brand name for fiber (Viscose, Modal) which is now being promoted at the consumer level. The brand has made inroads across 179 cities and is being co branded it with other brands. Manohar Samuel, President of Birla Cellulose says they have partners in supply chain via accredited partner forums like yarn manufacturers, fabric manufacturers and garment brands to sell Liva made garments at retail stores."
Liva the fiber brand from Birla Cellulose is gaining popularity among garment brands. Liva is the brand name for fiber (Viscose, Modal) which is now being promoted at the consumer level. The brand has made inroads across 179 cities and is being co branded it with other brands. Manohar Samuel, President of Birla Cellulose says they have partners in supply chain via accredited partner forums like yarn manufacturers, fabric manufacturers and garment brands to sell Liva made garments at retail stores. “Promoting a fiber brand involves taking the whole value chain,” Samuel opines.
Promoting Liva among consumers
Throwing light on the company’s strategy, Samuel says, “We have cobranded with different garment brands. For Liva, the financial year has been good .The number of stores has increased and 22 brands have been tagged. Next season, we need to have 32 customer tags.” Having spread to over 179 cities the brand is looking at spreading its footprint. “We will make inroads into more fashion products in specific areas. Fashion magazines like Grazia and Vogue have entered into ad tie-up with us. We have digital partners too,” explains Samuel. He further explained, “combined branding is with the stores. In the sari segment, we have tied up with category leaders. One is the topnotch traditional segment dominated by silk. modal saris. Then we have starched cotton saris and viscose. The third is the synthetic segment. Here we have polyester nylon.”
Across the country, in places like Surat and Kolkata the company has tied up with the top retailers and apparel brands. In women’s wear across many categories fiber sales have gone up. They are 14 per cent higher in India. Birla Cellulose also exports fiber and has improved their off take from India. Price wise they have always been reasonable. Liva follows all quality norms at the fabric level as this is a requirement across the world.
Samuel points out, consumer reception towards Liva has been good across men’s and women’s wear. Some supporting brands at the fabric and garment levels are Siyaram and Raymond. “They are much more knowledgeable than us in what they market. So their consumer insights on what can work well is critical for us. The last three seasons have been good for the international market. Along with garment exports, we have done work on active wear. Earlier, retail and promotional costs were too high for designers. This was a supply chain challenge.”
Birla Cellulose has developed a new model which is a cart concept. “Designers want to dye the fabric but may not want to immediately take 500 or 600 mt. So, we have tied up with Vardhaman. X Studios to give us finished goods,” he explains. Samuel says many designers are keen to work on Liva fabric. “They will have 50 per cent core and 50 per cent innovative designs. At the fabric level, they work on the colors and textures.”
