FW
Zimbabwe wants to revive its cotton and textile industry. More than a million Zimbabweans, including farmers, ginner, and textile producers and their families, depend on cotton for their livelihood.
Zimbabwean cotton is regarded one of the finest cottons in the world. However, crop hectarage is declining as farmers are shifting to other crops such as tobacco due to unviable prices. Subsidised cotton from developed countries is killing the competiveness of Zimbabwean ginners. There is a shortage of working capital. Capacity utilisation in the sector is below 10 per cent and there is cut-throat competition from cheap fabric imports. The local fabric market is now dominated by imports particularly from China, Pakistan and India.
The cotton output has declined from 4,50 000 hectares in the 2011-12 season to 2,41,849 hectares in the 2012-13 season. However, there are opportunities for the clothing industry if it focuses on niche quality markets rather than mass production commodity-like output. It has a competitive advantage locally and regionally based on delivery.
Strategies for the revival of the textile industry and value addition combined with financing from the banking sector are also expected to boost local demand for cotton and, hence, its production.
Load shedding is affecting Pakistan's textile mills. The problem is particularly serious in Punjab province, which constitutes 70 per cent of the total textile industry in Pakistan.
So severe is the energy constraint that exports to the European Union have declined to 25 per cent in the last three months compared with 40 per cent growth in exports in the first three months after the Generalised System of Preferences plus facility was extended to Pakistan in January 2014.Load shedding is expected to disrupt the supply chain of textile goods predominantly meant for exports.
Following significant reduction in hydel power generation due to unprecedented floods in the country load shedding has not only been increased for domestic consumers but also in the industrial sector where independent feeders are facing power shortages of more than 10 hours.The current electricity demand is 22,000 mw whereas the production is 14,000 mw. Thesupply situation worsened due to the massive line losses, theft and leakages.
Because of continuous load shedding the Punjab-based textile industry has been forced to curtail production, lay off workers and incur losses on commitments with foreign buyers. Market share once lost is almost impossible to regain.
Pakistan is eagerly awaiting Chinese President Xi Jinping's visit. Reason: He is to formally inaugurate several garment industry projects and joint ventures worth Rs 12 billion. Among these is an apparel park. The Chinese Ruyi group was set to install a denim mill of 100 million meters per day, a dying mill of 100 million meters per day besides launching a coal power plant of 150 mw in Faisalabad.
Pakistan’s garment industry feels if the visit doesn’t happen soon, and work doesn’t begin, orders will shift to Bangladesh, Myanmar and India. All these countries are interested in Chinese investment in their textile parks.
Another issue that’s plaguing Pakistan is energy supplies. Production activities have been badly affected and reduced to almost 60 per cent. A huge investment is needed to boost power generation.
The industry is facing prolonged delay in payment of refunds. Claims have accumulated into billion of rupees. Exporters’ money has been held up by the Ministry of Finance for the last several years and has now reached around Rs 25 billion against refund claims of duty drawback of local taxes and levies and sales tax. Due to these unreleased payments, exporters say they are facing an acute liquidity crunch.
The area of cotton cultivation in China this year is expected to decline 8.7 per cent compared with 2013 and cotton yield is also forecast to fall. The cotton growing area in the Yangtze River basin and the Yellow River basin went down by about 12.1 per cent and 14.5 per cent. Hebei and Jiangsu, two of the country’s major cotton regions, saw their growing areas decline 16.4 per cent and 20 per cent.
The relatively low profitability of cotton and the end of the government’s purchases to prop up prices are to blame for declining cotton growing area. In Jiangxi province, another important cotton growing region, some major cotton counties, such as Pengze and Duchang, have seen their cultivation areas fall by at least 10 per cent, and some major cotton growers have cut their planting areas by nearly half.
This decline is expected to continue for the next years. And this shrink will result in a big supply gap in the cotton market. However, China will remain a big consumer of cotton due to its large population, growing incomes and increasing export demand. In China, cotton is sown from April to May and harvested from September to November.
Pakistan's exports of textile and clothing fell by over five per cent in the first two months of the current fiscal year compared to a year ago. The decline in exports started in July 2014 despite the preferential market access to the EU. Exports of low value added products, such as cotton cloth, fell by 13.77 per cent; cotton yarn 27.01per cent; other textile material 5.88 per cent; and made-up articles, excluding towels and bed wear, 2.60 per cent during the period over the corresponding period last year.
In absolute terms, export proceeds fell to $2.169 billion in July-August 2014 from $2.289 billion over the corresponding months of last year. Last year, export proceeds grew by 2.75 per cent and reached $25.132 billion from $24.460 billion over the corresponding period of previous year. Raw cotton export witnessed a robust growth of 41 per cent in the first two months of the current fiscal year from a year ago. Total export proceeds witnessed a decline of 5.84 per cent in July-August 2014 over the corresponding period of last year.
After efforts of years, Pakistan was inducted in the club of countries enjoying free market access for most of its products in the European Union, but it has failed to capitalise on the opportunity.
Edwin Ingelaere is taking over as the new director of Lectra in northern Europe. The region is composed of a mosaic of countries with a large variety of cultures, languages, industries and markets. This is a region where Lectra has been market leader for more than 35 years. Ingelaere is in charge of a team of 35 people spread across nine countries. He will support Lectra customers in the region with their production optimization, quality improvement, cost reduction and go-to-market acceleration.
Before joining Lectra, Edwin Ingelaere was business development director for the machine-to-machine market. He has done telecommunications and electronic engineering and business management. More recently, a Belgian company specialized in wi-fi communications networks offered him various sales responsibilities.
Lectra is the world leader in integrated technology solutions dedicated to industries using soft materials—fabrics, leather, technical textiles and composite materials. It develops the most advanced specialized software and cutting systems and provides associated services to a broad array of markets including fashion, automotive, furniture, as well as a wide variety of other market sectors such as aeronautical and marine industries, wind power and personal protective equipment.
The company recently invested €50 million in a global transformation plan for the future, including a 60 per cent headcount increase in marketing, sales and consulting and an accelerated R&D plan.
www.lectra.com/
The IAF has commissioned a short global study on major developments in the apparel industry to Indian consultancy firm Technopak. The study will be handed over to all delegates of the 30th World Fashion Convention that will be held in Medellin, Colombia on September 30 and October 1. It would serve as a base for speaker like Stefan Siegel, Adriano Goldschmied and Horacio Broggi of Desigual, who would also talk about many of the same challenges faced by the industry.
One of the main points the IAF is making with this study is the increased relative power of developing countries' apparel industries in the global apparel system. IAF's global membership is a reflection of this more equal balance. It offers the opportunity for executives from all layers of the industry to discuss strategy on an equal footing.
According to the study, the global fashion market is becoming more homogeneous but at the same time these brands and retailers must adapt their collections more to local tastes. Sometimes these local varieties feed back into the global fashion loop, making the world market a source of inspiration for itself.
International brands are gaining market share in emerging markets. But more remarkable is the large share of local brands in these markets. Ideally, foreign brands actually help the development of local brands by setting an international bench mark, without actually dominating these markets and leaving plenty of room for local brands to prosper.
On the supply side, the study outlines the reaction to rising production costs, particularly in China. Improving production instead of moving production is an important trend and it is reinforced by increasing internet retail requiring companies to keep tighter control and more visibility over their supply chain. It is expected that, as a result, the market share for the large manufacturing groups will increase given their scale of operation, control over supply chain, and such other associated advantages as investment in tracking fashion trends, technology deployment and ability to attract talent.
The apparel industry will see new countries entering the global production chain. But more so than before, companies will seek to cooperate to try to exert sufficient influence over the new environment that they will be operating in. Realistically, they can only do so collaboratively, which is why we foresee a greater role for global industry groups working with multilateral organisation, national governments and local industry associations.
Iafconventionmedellin.com
Texworld and Apparelsourcing Paris closed this week after four busy days that saw the launch of new features like ‘Shawls & Scarves’, exploration of rich creative ‘Impulsion’, the Texworld winter trends 2015/16, designer catwalk shows and the Sustainability Days, discussions on the responsibility of the textile industry by Jason Kibbey, whole spoke on behalf of the Sustainable Apparel Coalition.
The event ended on a positive note, with both the exhibitors and the organisers expressing positivity. The number of visitors was up 5.16 per cent, with 15,034 visitors from 109 countries coming to see the 2015/16 winter collections shown by 1,166 exhibitors. The rise in numbers confirms the movement in fashion consumption in Europe.
Both regular and first-time exhibitors were delighted with the fruitful business transactions taking place during the event. Taking the figures continent by continent, Europe recorded a rise of 4.39 per cent and Asia took a great leap forward, showcasing 18.32 per cent rise. Brazil visitor number almost doubled by
10 per cent but Africa was down 11 per cent, reflecting the crises by which the continent is once more plagued.
Visitor figures from the six major countries were up, with a noteworthy resurgence by Italy (over 23 per cent), while recovery was evident in France (over 4 per cent), Turkey (over 4 per cent), Germany (over 3 per cent), Spain (over 1.5 per cent) and the UK (over 1.5 per cent). Three European countries stood out this season because of their double-digit growth, Ireland, where the economy is recovering was up over 22 per cent; Poland, over 20 per cent; and
Norway, which has returned to explore international potential in Paris was up over 25 per cent. Number in Bulgaria was up 64 per cent.
Asia also supported the fair, with the return of Japanese buyers showcasing a rise of over 9.5 per cent, South Korea, over 33 per cent and Hong Kong number was up over 21 per cent. China, with 8 per cent, is now coming to buy for its domestic market.
VF Corporation has roped in Sudhakar Puvvada as Vice President, Global Jeans Innovation Center. In this newly created role, Puvvada will oversee VF’s recently established Jeanswear Innovation Center in Greensboro, NC, where the company focuses on denim advancements to benefit its jeanswear brands, including Wrangler, Lee and 7 For All Mankind, and other brands throughout its portfolio.
Puvvada would be working with leaders in the group’s global jeanswear business to combine existing VF knowledge with the expertise and insights from external partners to build commercialization opportunities for VF brands. His background in both technology and consumer goods will help to empower group’s innovation agenda, which is expected to lead to sustainable, breakthrough innovations for consumers globally.
Puvvada joins VF from Ashland, where he served as Vice President, Technology Platforms. Also, he has worked in a number of research and product development roles in the home and personal care categories, including 14 years at Unilever. Puvvada holds Master of Science and doctorate degrees from the Massachusetts Institute of Technology.
VF introduced its Innovation Center strategy in 2013 and began to elevate innovation initiatives with existing teams to support key projects. Now, under Puvvada’s leadership, the company will assemble teams of chemists, scientists, engineers and designers for the Innovation Center who will combine their expertise in technology and new materials with VF’s proprietary insights and deep understanding of consumer needs.
www.vfc.com
The fabric trade show Première Vision has been renamed Première Vision Fabrics, while the yarns and fibers event Expofil has now been dubbed Première Vision Yarns. Le Cuir in Paris will henceforth be known as Première Vision Leather, while the fashion accessories event Modamont will now be referred to as Première Vision Accessories. Indigo, the textile design show, will now go by Première Vision Design. And the fashion manufacturing rendezvous Zoom has been relabeled Première Vision Manufacturing. A single online portal has been created, PremiereVision.com.
Premiere Vision is one of the world’s largest textile and fabric shows. It’s held twice a year and showcases the most creative fashion designs from across the world. The fair’s 13 annual events bring together over 2,600 exhibitors and receives more than 1,20,000 industry professionals. The event will also have inspirational films, audio-visual presentations and fashion seminars to assist professionals.
The grand Parisian edition to be held at the beginning of 2015 will be known as Première Vision Paris. Premiere Vision Pluriel is made up of six complementary trade shows held at the same time.
