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Blueprint, a new denim-based fabric trade show, will take place in the United States, June 24 and 25, 2015.
The concept is created and run by Bill Curtin, owner of the New Jersey-based BPD Washhouse denim laundry. It will highlight fabric offerings for the fall 2016 season. The international exhibitors list includes denim mills such as Orta Anadolu and Calik (both from Turkey), Raymond Uco (from India), Mount Vernon (from the USA) and Grandtex, Tyfountex Creative Workshop and Eratex Manufacturing (all three from Indonesia).
In addition, a small selection of local resources and patternmakers will exhibit. These include Manhattan-based companies NYC Factory and Caroda and High Production and the New Jersey-based company Inez.
There will be an interactive area with dry process equipment where visitors and exhibitors can learn and try denim finishing techniques such as handsanding, grinding and destruction. The event will also feature a vintage denim flea market.
The show will be more boutique kind, more informative and more creative than other fabric get-togethers. Jeanswear brands have also been invited to show at Blueprint.
printpattern.blogspot.com/2015/02/new-trade-show-blueprint.html
G7 leaders have agreed to establish a new fund to help improve the global supply chain in the wake of the Rana Plaza disaster in Bangladesh.
The fund would help provide compensation in the event of further similar disasters and provide cash to improve fire inspection and building safety regulations.
The fund would be administered in conjunction with the International Labor Organisation and require contributions from trade associations in developed countries represented at the G7.
It would act as an insurance system for firms that commit to prevention measures and help implement labor, social, environmental and safety standards such as better-trained fire prevention inspectors.
Extremely low wages have led global brands and retailers to choose Bangladesh over China and other developing countries in recent years, but in many cases the big brands have either turned a blind eye to working conditions in pursuit of profit or knowingly taken no interest in how their clothes are manufactured.
The Rana Plaza collapse prompted demands for reforms.
G7 countries have an important role to play in promoting labor rights, decent working conditions and environmental protection in global supply chains.
The G7 will recommend that western consumers have access to apps that better inform them about whether clothes they intend to buy were manufactured in decent working conditions.
The Indian manmade fiber industry is passing through a tough phase as the substantially high excise duty provides an edge to Chinese producers to dump polyester fibers in India.
Domestically produced synthetic yarn is losing market share to cheaper imported yarn from China, Vietnam and Bangladesh. Imports of fibers, filament yarn and spun yarns of polyester increased over 18 per cent in 2014-15 compared to the previous year. These imports were predominantly from China.
So the industry wants the excise duty on domestically-produced synthetic yarn to be scrapped. The reasoning is that the excise duty is unfair discrimination between cotton and synthetic fiber and is distorting the textile market in favor of cotton, which is the opposite of the global trend.
The global textile and clothing industry can be broadly divided into natural fiber and manmade fiber industry. The natural fiber industry includes cotton, wool, silk and jute; while the manmade fiber industry includes polyamides, polyester, polyethylene, viscose and acrylic.
Over the years, the clothing pattern in India has shifted. Men's clothing consumption has moved from the traditional cotton based wear to synthetic fabrics. Cotton dhotis are giving way to trousers mostly made of polyester or polyester blends. Likewise women are moving from cotton saris to synthetic saris or dresses.
Budget doesn't have much for the struggling textile manufacturers of Pakistan, other than one positive, is the cutting down of the export refinance rate from six per cent to 4.5 per cent and the long-term refinance rate from 7.5 per cent to six per cent. This will encourage borrowing in the sector. The establishment of an Exim bank for the promotion of exports also comes as a positive.
By 2019 the textile policy is expected to generate employment for three million people. The zero-duty rating on imports of machinery will be maintained. Also the much-needed tax refunds will be paid till September.
Sales tax on the spinning, weaving, and processing segments have been raised from two to three per cent whereas the tax on unfinished cloth and garments has been kept constant at three and five per cent respectively. What remains unaddressed, despite all the mentions of increased tax collection and tax-to-GDP ratio, is a broadening of the tax base.
Textile exporters say the global lack of competitiveness on the back of an overvalued rupee also remains unaddressed.
Exports all over the world are zero-rated and Pakistan wants to be no exception. The government has to pay around Rs16 billion in customs duty drawbacks and Rs 25 billion in sales tax refunds.
According to the Commerce Department data, apparel imports to the US grew by 1.8 percent in April compared to the same month last year, to $6.9 billion, a billion dollars less than in March. The increase greatly outpaced that of overall imports, which fell by 6 percent in the month to $190 billion.
The biggest driver of the overall decrease in imports was a steep decline in the value of consumer goods, by $4.9 billion, representing two-thirds of the total good imports decline. On a 12-month smoothed basis, which corrects for volatility of data in a particular month, apparel import growth was 3.1 percent in April, slightly less than March.
China, Vietnam, Bangladesh, Indonesia and India are the top five providers of US imported apparel so far this year, though Indonesia has seen its apparel exports to the US drop in the first four months of the year compared to 2014. Apparel exports continued to outperform the total export market, however, increasing by 7 percent compared to last April, to $580 million. Overall exports of goods and services dropped by 4.5 percent in the month, hurt by the strength of the dollar. On a 12-month smoothed basis, however, apparel exports were flat.
Canada emerged the biggest importer of US apparel so far this year, comprising more than one-third of exports, followed by Mexico, the U.K., Japan and El Salvador.
www.commerce.gov
Bangladesh's garment makers want to build warehouses in India so that they can supply apparel items directly to retail shops across India. Bangladesh seeks to boost its annual garment exports to the Indian market to a billion dollars in three years from about $100 million now. India has already allowed almost all globally renowned clothing retailers to operate in its market. The annual retail market size of India is set to cross $40 billion with growing middle class consumers. The Indian government has started widening connectivity by liberalising trade policy.
Bangladesh wants both Benapole and Petrapole ports to remain open every day for smooth export and import activities. These ports are on the border of the two countries. On an average, the two ports remain closed for three days a week, as it is a holiday in Bangladesh on Friday, while Saturday and Sunday are holidays in India.
Bangladesh also wants India to scrap the 12.5 per cent countervailing duty so that Bangladeshi garment makers can export more. Bangladesh's overall exports to India were worth $456.63 million in 2013-14 compared to $563.97 million in the previous year. Its imports from India were recorded at $6.03 billion in fiscal 2013-14 and $4.78 billion in the previous year. India exports goods worth more than $6 billion to Bangladesh a year through informal channels.
Cotton inventory in India, estimated at around 70 lakh bales at the close of the 2014-15 season and is expected to be the highest ever cotton stock carried by the country after 2008-09. The huge volume of carry forward cotton stock would place the country in a comfortable position.
However, the predominantly cotton-based textile industry in the country is subject to a crisis due to volatility in the price of the white fiber. The Cotton Corporation of India could sell only 12 lakh bales against 25 lakh bales offered during the last couple of months as the corporation’s rates were high. By not offloading the fiber procured from Telangana and Andhra Pradesh till end-April, the corporation gave mills a tough time, resulting in flaring up of prices.
There was some respite during the current season as prices had remained comparatively stable due to reduced imports by China and over supply in the global market. The global area under cotton is expected to drop by seven per cent in 2015-16 and production by nine per cent. Yet, the supply position in 2015-16 is expected to be comfortable as China would continue to reduce imports and downsize its reserves.
The British Wool Marketing Board (BWMB) has launched its new website. The newly designed fresh-looking site includes updated information on BWMB’s activities, such as shearing, training, marketing, the regional structure and useful advice for producers on fleece rolling and presentation. The new website is fully compatible and responsive to tablets and smart phones.
The website allows the board to showcase the work BWMB is doing to maximise the value of its wool. An important, easy to use feature of the new site will enable producers to register online or to amend their registration details. More detailed information is also available on fleece presentation and on the quality control scheme the BWMB operates across all depots.
Another important development in recent months is BWMB’s presence on social media with active accounts on Facebook, Twitter, Pinterest and Instagram. BWMB has been collecting, grading, promoting and selling great British fleece wool since 1950. BWMB is required to register all producers with four or more sheep. There are currently approximately 45,000 registered producers.
Receiving no financial support, although operating commercially, BWMB is a non-profit making organisation, returning to producers the market price for their wool, less its own costs.
www.britishwool.org.uk/
Just five years ago, Myanmar was isolated from the rest of the world. But that is changing. In 2011, the number of garment factories had grown to 200, from 120 the previous year. Today, it is estimated that the industry employs more than 2,00,000 workers, a tenfold increase since 2010 and double the number employed before US sanctions were toughened in 2003. An average of two new factories are opening every week.
One reason enticing garment producers back to Myanmar is cheap labor. The country has some of the lowest wages in Asia. At present, there is no minimum wage in Myanmar. Some of the world’s biggest fast fashion brands are already taking notice of Myanmar. Swedish apparel giant H&M placed test orders in 2013 and began sourcing from the country in earnest last year. Its garments are being manufactured in some 13 factories. Gap was the first major US apparel retailer to establish a presence in Myanmar.
Though manufacturing jobs will increasingly provide employment opportunities for young people in Myanmar, they will only be able to lift themselves out of poverty if these jobs provide fair wages and conditions. Due to Myanmar’s isolation and lack of exposure to international practices, it has limited experience in adopting new business methods or complying with international standards.
With banks insisting on credit ratings for extension of loans at lower interests, spinning mills in Tirupur and its hinterland have adopted a consultative approach for effective representation of company-related data to credit agencies for procuring the best possible rating. To help mills present the company’s financials and strengths in a scientific manner for optimising credit ratings, the Texpreneurs Forum, comprising different textile sector stakeholders, has engaged a group of experts for consultations.
The aim of engaging the experts and having an interaction with them is to make units understand what parameters credit rating agencies look for when computing the ratings for respective companies. Unless a company knows such details, it might miss giving key data which otherwise could boost the credit rating to higher levels than the eventual figures assigned to them.
Optimisation of credit ratings would bring immense benefits to spinning mills which are highly capital intensive in operations. A higher rating would improve the bargaining power of the units to get loans at much lower interest rates and also will come in handy when asking for enhancement of credit limits. Units in Tirupur need to concentrate on reducing the working capital intensity so that their fund requirements come down. They also need to infuse fresh equity from their own resources, opt for term loans of longer maturity profile and modernise the existing machinery, all of which will help increase the credit rating.
