FW
Sourcing at Magic will take place in the United States from August 16 to 19. It showcases the latest in apparel, footwear and accessories for men, women and children. This is a fashion trade show that happens twice a year and meant for large buyers as also small and medium businesses.
It’s North America's largest, most comprehensive sourcing event. Thousands of exhibitors showcase next season’s collections. The show expects more than 2,000 exhibitors from 24 countries. A variety of seminars hosted by top industry professionals will be open for attendees and exhibitors. Magic is unique because it shows and blends a variety of brands alongside a variety of factories from around the world. It covers advanced contemporary luxury brands to the latest trends in fast fashion.
A mobile app will help assist exhibitors as well as visitors. It is a searchable database. Within the app a search can be made by country of origin, name of factory, products and minimums. A digital matchmaking service will allow attendees to find the manufacturers that will best fit their production needs. Sourcing at Magic is focusing on wearable technology this August. There will be an interactive exhibit area.
www.magiconline.com/sourcing-at-magic
For 20 years, Hong Kong Fashion Week for Spring/Summer has enjoyed an international reputation for excellent sourcing in a highly professional environment. More than 1,200 exhibitors from 18 countries and regions are taking part in the 22nd HKTDC Hong Kong Fashion Week Spring/ Summer ’16 which runs from July 6 to 9 at the Hong Kong Convention & Exhibition Centre (HKCEC).
Eight groups pavilions, including the event’s largest from the Chinese Mainland, are representing a diverse range of markets, including Japan, Thailand, India and South Korea.
India in focus at HKFW
India has emerged as the second largest exporter of textiles after Mainland China. With a supply chain covering production of cotton fibres, fabrics and garments, India’s textile and garment manufacturers are highly competitive in the world market. To promote garment industry, the Apparel Export Promotion Council has organised the Indian Pavilion at Hong Kong Fashion Week for Spring/Summer for the 13th consecutive year.
“This year, we have come with 65 Indian companies to promote casual garments for men, women and kids; scarves; shawls; sweaters and T-shirts which are all made in India. Hong Kong Fashion Week is an international show that draws buyers from all over the world. A lot of customers from European and the US buying offices in Hong Kong visit this fair regularly to look for new vendors. That’s why Indian companies have maintained a strong presence in the fair,” said Pravin Agarwal, Executive Committee Member, Apparel Export Promotion Council.
Wide zones display the latest
Under the theme ‘Tribal Safari’, the fashion week features a wide array of product zones including; ‘International Fashion Designers’ showcase, ‘Emporium De Mode’, ‘Fashion Jewellery Feast’, salon of Scarves and Shawls, Denim Arcade and Bridal & Evening Wear.
Fashion Gallery is the largest zone, showcasing designer labels and top brands, while International Fashion Designers’ Showcase is an exciting space for trend-setters. Men in Style segment gives exhibitors of menswear prominence. Retailers are value-adding through accessories and exhibitors are catered for in a number of zones such as World of Fashion Accessories, Handbags Select, Salon of Scarves and Shawls and Fashion Jewellery Feast.
China will start selling its cotton stockpile this year. The plan is to auction off one million ton, or 4.6 million bales, of the fiber to start with. In previous auctions, widespread complaints about the quality of cotton being released caused some mills to balk at buying supplies. To help get the cotton moving, China offered incentives tied to import access. Over the past year, only the minimum amount of import quota was issued. If reserve sales are very slow, those incentives could eventually reappear.
The possibility of rotating reserve stocks is another thing worth paying attention to. Historically the Chinese government has replaced older supplies with newer ones. It isn’t clear yet whether that will be a possibility in the future, but if it is, that could impact the availability of current and future Chinese harvests.
The bottomline is that the changes made in current crop year, where Chinese imports have placed increased emphasis on the use of domestic supplies, will be sustained. The corresponding sustained reduction in global import demand has helped stocks outside of China increase and allowed prices to shift lower.
As long as China keeps imports low and uses reserves to fill any gaps, and as long as the rest of the world produces a surplus of cotton, stocks outside of China will remain strong and prices can be expected to remain low.
Vietnam's textile industry has been seeing a strong flow of foreign investment over the first half of the year. Taiwanese-owned Polytex Far Eastern Company has been granted a license to build a yarn factory in the southern province of Binh Duong. It is the largest foreign project in the province in the first six months, with a cost estimate of $274 million for the first stage. Between $700 million to $1 billion is planned for the second stage.
The company’s third textile project in Vietnam is meant to take advantage of the US-led Trans-Pacific Partnership(TPP), which, when signed, will give Vietnamese products duty-free access to major markets. With an investment of $660 million, Turkish-owned Hyosung Istanbul Tekstil has a yarn factory. The British-owned Worldon Vietnam has a $300 million project. These are the biggest FDI projects to be approved in Vietnam by June 20, accounting for 29.2 per cent of the total new pledges during the time.
Vietnam licensed 757 new FDI projects with total pledges of $3.83 billion by June 20, down 21 per cent year on year. Meanwhile $1.65 billion has been registered for existing projects, a year-on-year decrease of 17 per cent.
Cotton USA sourcing fair was held in China from June 22 to 25. The fair provided a valuable opportunity to network and build connections along the global textile supply chain with the goal of increasing US cotton exports. Nearly 120 participants attended the private trade fair, representing 26 fabric mills, 20 garment manufacturers in China, Hong Kong, Taiwan and the Asean region and 18 global brands and retailers.
There was an overview of global raw cotton situation, an update on global sourcing directions and a brief on new consumer-influencing apparel purchases. Prior to the fair, participants attended a briefing session. Cotton Incorporated shared information at a booth to introduce latest innovations, supply chain opportunities and marketing programs.
Cotton Council International (CCI) roped in a variety of participants, especially international brands and retailers representing from the United States, Europe, Japan, Thailand, Korea and Hong Kong, to join the supply chain event and attract fabric mills and garment manufacturers. Among the brands and retailers were: Academy Sports, Blue Pin, Fashion Box, Gerry Weber, Ralph Lauren, Street One and VF Asia.
Turkey's exports to Russia declined 43 per cent between January and April, compared to the same period in 2014. The economic sanctions imposed on Russia after its annexation of Crimea, in conjunction with the devaluation of the Ruble, have created a major crisis for Russian economy. The Russian crisis has spilled over to Turkey, particularly affecting the textile and tourism sectors, as large numbers of Russians on vacation are known to flock to Turkey's southern provinces.The textile hub of Istanbul has hundreds of shops selling apparels at the retail and the wholesale level mainly to Russian buyers.
Despite a major drop in Russian business integral to Turkey’s textile industry, the sector is hopeful that it will make up for its losses in the coming season. The Turkish textile hub has a decade-long history of customers from Russia and other former Soviet states purchasing textile products to sell in their home countries.
Istanbul continues to attract a number of international buying offices, trading houses and major retailers and department stores. Istanbul is becoming a fashion and shopping center. The world’s largest shopping centers are opening in Istanbul. Istanbul is becoming a global sourcing hub for both Asia and Europe.
The textile industry occupies an important place in Turkmenistan’s economy. Turkmenistan traditionally grows cotton, which serves as a basis for developing the industry. The annual turnover of the textile industry is about $400 million as of 2014. The industry is represented by 74 companies: 32 textile complexes, cotton spinning and weaving factories, 17 garment factories, seven silk industry enterprises, two wool processing and three knitted goods enterprises – as of 2013. Numerous textile enterprises worth over $1.6 billion have been built in Turkmenistan throughout the years of independence.
The major part of the products is exported to the US, Canada, Germany, UK, Russia, Italy, Turkey, China, and Ukraine. Companies like Puma, Walmart, JC Penney and others are among the customers. The operating facilities in Turkmenistan have an annual capacity of 1,77,000 metric tons of different yarn, 186 million square meters of various cotton fabrics, 11,000 metric tons of various kinds of knitted fabrics, 7,200 metric tons of terry fabrics and 80 million pieces of knitwear and garments.
The country now wants to restructure its industry in order to increase manufacturing of competitive products and attract investments. The aim is to develop a strong base and build linkages.
Bangladesh is the world’s second largest garment exporting country. But business was badly hit due to the devaluation of euro and shutdowns and blockades. Because of these factors, the garment sector may fail to attain its export target of 33.2 billion dollars in the outgoing fiscal year.
Bangladesh has duty- and quota-free access to many countries, including Australia, New Zealand, Norway, China, India, Canada and the EU. Steps have already been taken for product and market diversification in Latin America and preferential trade agreements have been signed with Brazil, Argentina and Chile to boost exports of Bangladeshi products.
There is a proposal to increase tax at source for the export sector from 0.30 per cent to one per cent for 2015-16. But the industry says, tax at source on export of garments should be reduced to a tolerable level from the proposed one per cent and that instead a high duty should be imposed on imports to protect industries. Considering the current purchasing power parity, Bangladesh hopes to become a mid-income country by 2021.
The government has also been urged to give more attention to prospective sectors like furniture, jute, shipbuilding and pharmaceuticals and give cash incentives to help them flourish.
Nandan Denim's revenues have grown 16.5 per cent year-on-year driven by healthy growth in denim and shirting fabrics. Employee cost and other expenses increased by 135 per cent year-on-year and 48 per cent year-on-year, respectively, mainly due to addition of new capacity and ramping up of export sales team. Subsequently, EBITDA margin expanded by 13.5 per cent and adjusted PAT increased 24 per cent year-on-year.
During the fourth quarter of financial year 2015, domestic sales grew 21.5 per cent year-on-year and exports grew 41 per cent year-on-year. Denim fabric sales increased 19 per cent year-on-year aided by 11 per cent volume growth. Change in the product mix in favor of value-added products drove 8 per cent growth in realisations. The shirting fabric segment also witnessed healthy traction as volumes increased 93 per cent albeit from a low base.
Domestic sales growth is expected to be steady with demand from the readymade garment industry picking up gradually. The company expects revenues to grow at a CAGR of 14 per cent over financial year 2015-’17. The company’s expansion plan is progressing as per plan. On completion of the expansion, the spinning capacity is likely to expand to 124 tons per day from 64 tons per day at present.
www.nandandenim.com/
Unregistered industrial units in Ludhiana and elsewhere have been asked to get themselves registered so they can avail of the benefits of various schemes. In Ludhiana, there are more than 30,000 unregistered industrial units that are spread in different locations of the city. These units are operational in homes or functional in small areas.
Ludhiana is a leading industrial town of Punjab and an important center for textile and allied industry. It is leading producer of woolen and acrylic knitwear, although it also uses extensively cotton and other blended fibers to produce a wide range of fabrics, hosiery, knitwear and readymade garments.
The industry caters largely to the domestic market, although it has also been exporting for nearly a century. Consisting of both registered and unregistered units, almost 99 per cent of the readymade garment, textile and hosiery industry in Ludhiana is small scale. Apart from these, there are a large number of supporting units that manufacture packing material, printed labels, buttons, as also spinning, dyeing and embroidery units.
At one time all enterprises were urged to file an entrepreneur memorandum (EM). However, the manual procedure was ridden with several challenges and was not considered investor friendly. Now a web portal has been developed for online filing of EM to make the process simple.
