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Both Pakistan and Bangladesh enjoy Generalised System of Preferences (GSP) Plus status from the European Union. And both are strong competitors in the EU apparel market. Bangladesh has been enjoying duty- and quota-free status to the EU since the inception of the trade privilege by the EU in 1971.
Since Pakistan has been allotted zero-duty benefit for 75 specified products exported to the EU, there is also a possibility of trade diversion from China, India, Bangladesh and Turkey. But this diversion is statistically insignificant. Trade diversion from Bangladesh may take place in T-shirts, jerseys, pullovers, cardigans, waistcoats, men's or boys' cotton suits, women or girls' suits, bedding material of cotton and artificial fiber. But even then Bangladesh is not expected to suffer any major impact on EU garment exports.
There were fears Bangladesh would lose its garment business after the elimination of the multi fiber arrangement in January 2005. But that did not happen and in fact exports from Bangladesh have been increasing since then.
In 2014-15, the world cotton industry is expected to enter its fifth consecutive season in which production exceeds consumption. World production is forecast to decline by 400,000 tons to 26.05 million tons while consumption could grow by 4 per cent to 24.4 million tons, resulting in a surplus of 1.7 million tons. Since 2010-11, world production will have exceeded consumption by a cumulative 12.3 million tons and by the end of 2014-15, would reach nearly 14 million tons. Much of the surplus is held by the Chinese government, but this season, more of the surplus will shift to the private sector in China and other producing countries.
As a result of the cumulative surplus, world ending stocks are projected to increase to 22.2 million tons at the end of 2014-15 with ending stocks outside China forecasted to achieve a record 9.7 million tons. This expansion in world ending stocks outside China will put negative pressure on prices this season as China continues to liquidate its significant stocks. Sales from the Chinese reserve reached 2.3 million tons in 2013-14. During August, the Chinese government sold an additional 300,000 tons, decreasing the estimated quantity of cotton stocks held by the Chinese government to around 11 million tons. The Secretariat expects that over the next few years, the Chinese government will maintain sales from the reserve at a pace of 2-3 million tons a year.
In 2014-15, China and India will vie for the title of largest producer of cotton, as the full impact of this year’s monsoon on India’s yields is unknown. Due to the late arrival of the monsoon, the planting season was extended and area in India is estimated at 11.8 million hectares, up by 1.3 per cent from 2013-14. Assuming a yield based on the three-year average of 536 kg per hectare, India’s production is expected to decline by 4 per cent to 6.3 million tons. In response to the ending of government support outside Xinjiang, China decreased area by 8 per cent to 4.2 million hectares. China’s production in 2014-15 would decline to 6.4 million tons, assuming an average yield of 1,500 kg of lint per hectare. After much needed rain arrived in this summer, the United States should see reduced abandonment and improved yields with production forecast to reach 3.7 million tons with an average yield of 933 kg per hectare.
While world consumption in 2013-14 experienced no growth from 2012-13, it is predicted to expand by 4 per cent in 2014-15. Consumption in China could rise to 7.9 million tons in 2014-15, up from 7.5 million tons in 2013-14 given the fall in both international and domestic prices as well as improved demand overseas for downstream goods. India’s demand is projected to reach 5.3 million tons in 2014/15, which is the third season of demand growth.
World trade is projected to decline by 1 million tons to 8 million tons in 2014-15, which is largely accounted for by a 30 per cent decrease in Chinese imports to 2 million tons. With bumper crops anticipated in the United States and India, these two countries will remain the largest exporters in 2014-15.
The global market for industrial protective clothing is expected to reach $4.06 billion by 2020, says a new study by Grand View Research. The report ‘Industrial Protective Clothing Market Analysis By Application (Flame Retarded Apparel, Chemical Defending Garments, Clean Room Clothing) And Segment Forecasts To 2020’ is available on the web platform of Grand View Research.
Increasing industrialization in emerging markets of India and China coupled with rising importance of safety in industries and emergence of blue collar workforce are expected to remain key driving forces for the market. High cost and complex manufacturing process associated with industrial protective clothing are expected to be key challenges for market participants.
Chemical defending garments emerged as the leading application segment for industrial protective clothing and accounted for 36.8 per cent of total market volume in 2013. Chemical defending garments are used for protecting skin from hazardous chemicals usually used in laboratories and chemical industries. Flame retardant apparel is expected to be the fastest growing application segment for industrial protective clothing at an estimated CAGR of 11.1 per cent from 2014 to 2020.
Texworld that will take place in Thailand from September 15 to 17, 2014, is an international event for fashion fabrics and clothing. It will have nearly 900 exhibitors. Thailand will promote the richness of its textile heritage, exhibiting more than 100 silk and cotton fabrics produced by 20 rural communities. The fabrics exhibited at Texworld are entirely hand-woven. The aim is to identify and promote unique local skills, benefit from local resources and develop quality products which meet the demands of domestic and international markets.
Each season Texworld hosts the Thai pavilion, which accommodates around 20 exhibitors, including weavers who draw inspiration from traditional skills of their country, which are reflected in both the motifs and the fabrics used. Texworld is continuing to make visitors and exhibitors aware of the importance of sustainable development to the textile industry. For the first time, sustainability at this event will cover two days.
There will be workshops and seminars on sustainable development and responsibility. Young fashion designers will exhibit their collections. There will be shows by couturiers. There will be lectures on colors and palettes. A vampires collection will show voluptuous, diaphanous creations sealed in black. There will be more shows on monochrome street wear and poetically-inspired creations in natural fabrics.
China's garments exports have slowed down significantly this year as weak demand and rising costs have hit the industry. The value of China’s garment exports gained 5.79 per cent year on year during the January-July period, retreating 7.71 percentage points from the rate seen in the same period last year.
Competition neighboring countries such as Vietnam, Cambodia and Indonesia are pushing down demand for Chinese products, while rising costs and insufficient re-sale value have also made them less attractive. Meanwhile, China remains heavily reliant on developed markets. The slowdown requires manufacturers to be more innovative and tap more emerging markets.
With China likely to buckle under the heat of spiraling wages and low safety standards in its garment industry, India is soon expected to overtake its neighboring country in the textile business. About 65 per cent of the garments exported to the US and European markets were from China a couple of years ago, but now it has reduced to 40 per cent. The economic recovery in the US is an advantage for the Indian textile industry. Currently, China is facing high labor costs, and this is working in India's favor. Also, the yuan has risen against the dollar, and this has reduced its competitive edge.
The fourth Future Fabrics Expo will be held from September 28 to 30, 2014, in London. It will showcase several hundred individually selected fabrics with a reduced environmental impact from a wide range of international mills. In addition, extensive background information on sustainability in fashion and textiles, and the latest textile and processing innovations, will be provided.
It’s also possible to discover new sustainable fabrics and mills at Future Fabrics Virtual Expo. This is an online destination, which displays a curated range of sustainable fabrics, and information regarding sustainability issues in the textile industry, rigorously researched throughout the year by ‘The Sustainable Angle;. The virtual expo aims to introduce fabrics buyers and designers to international mills and suppliers of sustainable textiles, allowing constant access to specification and sustainability focused information about fabrics with a reduced environmental impact, any time, from anywhere. It provides a sneak preview of some of the fabrics in the collection ahead of the expo
The Sustainable Angle will additionally present a seminar on building sustainability into textile buying on September 30, exploring how to assess fabrics in relation to sustainability, avoiding pitfalls when sourcing sustainably, and developments in the sustainable textiles market.
www.thesustainableangle.org/futurefabricsexpo/Home.aspx
Chris Nicolaes has been appointed MD for Lectra Germany. A Dutchman Nicolaes started out in 1982 as a management consultant. Then he founded several IT companies. He holds degrees in mechanical engineering and business administration. He will be responsible for Lectra’s activities in central and eastern Europe, including Russia and, more specificallly, CIS countries. He has had experience as a MD of software and PLM companies in different sectors and countries.
For more than 40 years Lectra has been offering solutions to fashion companies and, since 20 years, to customers in the automotive and furniture sectors. Lectra is the world leader in integrated technology solutions dedicated to industries using soft materials—fabrics, leather, technical textiles and composite materials.
The company develops the most advanced specialized software and cutting systems and provides associated services to a broad array of markets including fashion (apparel, accessories, footwear), automotive (car seats and interiors, airbags), furniture, as well as a wide variety of other market sectors, such as aeronautical and marine industries, wind power and personal protective equipment. With its consulting services, its software solutions such as Lectra fashion PLM and Modaris 3D for fashion and its cutting room solutions, Lectra helps its customers to reach the goal of controlling the value chain.
www.lectra.com/
Investors from Thailand are looking at Vietnam with great interest. Thai garment traders and companies wish to set up joint ventures in Vietnam. They feel the Vietnamese market has the potential and therefore, want long-term cooperative opportunities with Vietnamese partners. They plan to begin by introducing Vietnamese customers to prime quality products and services from Thailand.
Bilateral trade between Vietnam and Thailand, which currently stands at $9.5 billion, is expected to increase at 20 per cent per annum to reach $15 billion by 2020. Vietnam is currently the second largest trading partner of Thailand in the Asean region. Thai garment businessmen sees great opportunities with Vietnamese counterparts especially after the establishment of the Asean Economic Community (AEC) in 2015.
AEC will transform Asean into a region with free movement of goods, services, investment, skilled labor, and freer flow of capital. It is expected to boost Vietnam’s Gross Domestic Production by 14.5 per cent and employment rate by 10.5 per cent. There will be an increasing demand for skilled labor in construction, transport, garment and textiles, as well as food processing industries.
The 10 member states within the association of Southeast Asian nations will form a single market next year with the aim of easing cross border trade and labor in a region of 600 million people. AEC could increase trade and investment flows but it could also widen inequality, with fewer jobs for women than men.
Japan is set to take part for the first time at Milano Unica to be held from Septmber 9 to 1, 2014. Milano Unica currently retains a 14 per cent increase in terms of the number of visitors from outside Italy as against the September 2013 edition despite the economic stagnation in Europe. This reflects it will remain an important exhibition for high-end markets.
Leading Japanese fabric companies will promote Japan’s quality and Japanese textile trends at Intertextile Shanghai Apparel Fabrics, the world’s largest textile show of its kind for apparel. Japanese textiles are a badge of social status. They show by their motif, color and garment shape much about Japan and its culture. In addition, they send messages to an individual’s age, rank, gender, social, political and religious affiliation. In Japan, they often denote an individual’s occupation, special function and association with special groups.
Japanese textiles demonstrate a preference for natural materials, traditional decorating techniques etc. Textiles continue to this day to demonstrate their commercial uses of a shop’s main activities. This can be seen in the present usage of noren (doorway curtain) and advertising banners.
The United States is negotiating a new trade pact with 12 Pacific Rim nations. And Vietnam looks to be the gainer in this deal. In contrast China will lose apparel market share in the US. Tariffs on products where China dominates, such as down-filled jackets and synthetic dresses, could be cut quickly, giving Vietnam an edge.
Another loser will be countries like Mexico. Right now half of US yarn and textile exports go to Mexico and other countries south of the US, where cheap labor transforms them into clothes that make it back to American shoppers, duty free. Mexico and other South American countries say their cost structure incorporates a living wage, benefits and respect for the environment while a country like Vietnam faces charges of using child and forced labor.
Clothing is a priority for Vietnam. The country could take considerable market share from China and other countries without trade preferences. Vietnam has already boosted its US-bound exports by 38 per cent since 2010 even with tariffs adding as much as a third to its costs. It’s expected to have a further rise in exports to the US while exports from Mexico, China and India would fall.
Based on labor costs alone, US and Central American textile firms are no match for their Asian rivals, although higher labor and environmental standards sought by the new pact are expected to push up costs for Vietnam.
