FW
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.
The 2014 Textile Sustainability Conference will be held from November 9 to 12, 2014 in Portland, US. Portland is the hub for environmentally- and socially- minded brands and retailers. The conference will bring together the most respected industry names with the intent to share, listen, learn and develop scalable solutions with emphasis on every aspect of the supply chain.
The 2014 conference will be segmented into four key topics: design and materials, chemistry and processing, industry and product integrity, the big picture and emerging issues. Leaders in the textile sustainability industry are currently developing assimilated sessions and plenaries to share the latest concepts, best practices and collaborate opportunities surrounding sustainable consumer products.
This year’s conference will inspire, educate and provide the tools for everyone to drive meaningful change. The fashion industry is exploring how designers and manufacturers can move toward providing more sustainable fashion.
A number of factors contributing to a product’s sustainability throughout its lifecycle, not only the durability and utility of a product, but also the process of its production and distribution. More streamlined standards and practices across the supply chain are the best way to move toward more sustainable fashion. Several high-end brands already incorporate sustainable practices. More middle brands should follow suit.
textileexchange.org/event/2014-textile-sustainability-conference
India's cotton output is forecast at 6.3 million ton while that of China is at 6.4 million ton. India now stands a chance to grab the first position as the top cotton producer in the world in the 2014-2015 season. The acreage under cotton in India is estimated at 11.8 million hectares, up by 1.3 per cent from 2013-2014. China’s acreage decreased area by 8 per cent. China’s production in 2014-2015 would decline to 6.4 million tons.
In 2014-2015, the world cotton industry is expected to enter its fifth consecutive season in which production exceeds consumption. World production is forecast to decline by 4,00,000 tons. World ending stocks are projected to increase to 22.2 million tons at the end of 2014-2015 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 2013-2014. During August, the government sold an additional 3,00,000 tons, which reduces estimated cotton stocks held in reserves at around 11 million tons. India’s demand is projected to reach 5.3 million tons in 2014-2015, which is the third season of demand growth.
The apparel industry in Sri Lanka is the largest single employer in the manufacturing industry providing employment to lakhs of workers including a substantial number of women. It accounts for 40 per cent of total exports. Around 350 garment factories are operating in different parts of Sri Lanka and there are around 16 textile and fabric manufacturing units in the country.
Apparel categories include sportswear, lingerie, lounge wear, bridal wear, work wear, swimwear, children’s wear. The US and the United Kingdom have been the largest buyers of Sri Lankan apparel throughout the decades. The industry supplies high quality garments to brands such as Victoria’s Secret, Gap, Liz Claiborne, Nike, Tommy Hilfiger, Abercrombie & Fitch, Marks & Spencer.
Sri Lanka has emerged as South Asia’s fashion and logistics hub. The country’s top three apparel companies are already among the world’s 50 most important suppliers. The industry has earned over $3 billion in export revenue for five consecutive years. The Made in Sri Lanka label is synonymous worldwide with high quality, reliability, social and environmental accountability. Garment makers work hand in hand with customers in forecasting trends and creating new customized ranges with innovative techniques.
Leading textile universities in Lanka turn out highly qualified graduates each year, and talented individuals are exposed to the limelight through a number of local design festivals and trade shows.
China is investing in textile factories in Ethiopia. Among the inducements are cheap labor and electricity, vast arable land as well as various quota and duty free opportunities to the US and EU markets. One of these textile plants will create more than 20,000 jobs when it becomes operational. The textile industry has been identified as one of the priority sectors for development by the government. Ethiopia is home to over 230 textile and garment industries with 20 training institutes, employing about 37 per cent of the country’s public sector work force.
Nearly 11 Chinese companies are already involved in the manufacturing of leather and leather products, textile and garments. The textile and garment sector in Ethiopia has seen continuous improvement in the production capabilities of domestic textile, garment, knitting and weaving firms.
International textile and garment companies see Ethiopia as an investment destination. Ethiopia has recently become an increasingly important destination for international buyers looking for high-end shoes because of its fine leather products and a strong commitment to quality. Ethiopian entrepreneurs have been introducing new ideas for product design, production methods, labor management, procurement, and marketing.
