FW
Following a proposal by the BGMEA, the Bangladesh government is planning to form a sectoral confederation to resolve the issues of the ready-made garment (RMG) workers. The government has formed 29 committees in the labor-intensive areas to look into the complaints lodged by workers. However, trade unions claimed that more than 11,000 workers of 99 units were terminated from their jobs soon after the recent unrest in the RMG sector on the issue of salary discrimination in the new wage structure. The government will gradually solve the RMG sector workers' problems after discussions with the owners.
Bangladesh wants Accord to leave by a fixed date regardless of whether there is a competent safety authority to replace it. Accord was a response to the Rana Plaza building collapse in 2013 that claimed more than 1000 lives.
With no transparency and no verifiable assurance that the unprecedented level factory safety achieved by Accord will be maintained, global brands sourcing from Bangladesh cannot take the risk of a return to conditions that led to the collapse of Rana Plaza in 2013.
Accord had appealed against a court order to leave Bangladesh by a specified date. An appellate court granted Accord a number of extensions, during which time Accord developed a handover plan. The plan is based on transferring responsibility for inspection and remediation of Accord factories in stages, based on a demonstrated capacity of the responsible body, RCC, to take over these functions.
However, both the ILO and the European Commission have repeatedly stated that the RCC is far from being ready to take over the Accord functions. Accord, a platform of more than 200 global apparel brands, retailers and rights groups based mostly in Europe, was formed immediately after the Rana Plaza building collapse to improve workplace safety in the country’s apparel industry.
Milano Unica was held in Italy from February 5 to 7, 2019. This is a textile and accessories trade show. Although the overall number of companies was essentially equal to that of February 2018, there was a significant increase in participation by companies from Japan, Korea, Great Britain, Poland, Rumania and Spain, with the USA and Germany holding steady.
The essentially steady number of exhibitors compared to the February 2018 edition was matched by a corresponding presence of visitors from sector companies, both Italian and foreign, numbering about 6,000. There were fewer Chinese companies, as the dates coincided with their New Year celebrations, but that was mostly made up by Korean and Japanese companies in attendance and a good showing on the part of European operators.
The richness of the textile and accessories collections was matched by the encouraging presence of Italian and foreign buyers. Milano Unica launched an online marketplace, which will be fully operative for the July 2019 edition. The initiative is intended to promote the textile-apparel fashion sector by extending traditional trade show activities to the digital world, including marketing, contents and promotions, making it possible for companies and their clients to stay up to date year round.
Despite a move to downtown Las Vegas, Liberty Fairs did not see a decline in the number of vendors exhibiting at its recent show, held from February 5 to 7, 2019 at the World Market Center. But, there was a slight decline in buyer attendance from a year ago. Retailers including Neiman Marcus, Nordstrom, Urban Outfittersand Ron Robinson shopped at Liberty. Los Angeles denim brand AG Jeans made its Liberty debut in a temporary space.
Despite being located off the Las Vegas Strip, this Liberty felt like other trade shows. Some vendors raved about their show’s business. Others said that there was room for improvement. But a move did create some confusion as retailers were seen looking for Liberty at the Sands Expo and Convention Center, where it is normally held and will return to for future Las Vegas shows. Retailers like Johnny Alper and Gila Leibovitch of The Vault Group of stores in Laguna Beach, Calif., wasted a lot of time in transit going from show to show.
Access to the trade show was easier because buyers didn’t have to walk through a crowded casino to reach the event. It was easier to set up booths at the temporary venue because vendors set up their own booths instead of workers employed by the Strip’s convention halls.
Project Womens held on February 5 and 7 at the Mandalay Bay Convention Center, Las Vegas saw registration increase by 2 percent over last year.
Yoga Jeans, which makes sustainable premium-denim jeans that wholesale from $50 to $72, received a lot of attention at the event. The brand is now expanding into the United States. California–based dress brand Sheer also registered positive results at the show with buyers from South Africa, Canada, Australia, the United Kingdom and boutiques in the United States stopping by the booth.
First-time Project Womens exhibitor Candice Cuoco showcased her Fall/Winter 2019 collection in the show’s Oasis section. Preparing to enter the wholesale market with pieces ranging from $38 to $500, the Los Angeles designer had appointments with Nordstrom, Neiman Marcus and Saks Fifth Avenue.
"As per Export Promotion Bureau (EPB) data, in the July-December period of the current FY2018-19, Bangladesh’s apparel shipments to new export destinations like Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey posted a robust growth of 36.21 per cent in the first half of the current fiscal year, riding mainly on enhanced cash incentive and initiatives of exporters to diversify their markets."
As per Export Promotion Bureau (EPB) data, in the July-December period of the current FY2018-19, Bangladesh’s apparel shipments to new export destinations like Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey posted a robust growth of 36.21 per cent in the first half of the current fiscal year, riding mainly on enhanced cash incentive and initiatives of exporters to diversify their markets.
For the first half of FY2018-19, apparel exports to Japan stood at $547 million, the highest in non-traditional export destination category, up by 50.62 per cent from $363.31 million in the same period of FY2017-18. Apparel exports to Australia were the second-highest with a growth of 18.46% to $360 million in FY2018-19 from $304.24 million in FY2017-18.India was the third largest market for apparel products from Bangladesh during the period, fetching $270 million, up by 143.30% compared to $111.33 million in the same period of FY2017-18.
Trade experts and industry stakeholders cited policy support measures from the government and increased cash incentives against export to non-traditional markets as the main drivers for the sharp rise in export earnings from new export destinations.
As Mohammad Hatem, Managing Director, MB Knit Fashion revealed apparel exporters now enjoy 4 per cent cash incentives against export to non-traditional markets, which encourages them to explore new destinations for their products. Additionally, these incentives allow apparel makers to practice competitive pricing in the global market. Bangladesh’s government raised cash incentives against export to non-traditional markets to 4 per cent this fiscal year from 3 per cent in FY2017-18, with an aim to boost exports to new markets.
Exhibitions help brands establish contacts
Shahidullah Azim, Former Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)
points out manufacturers are now participating in several expos to establish contacts with buyers from non-traditional markets. This is impacting the growth export earnings from new export destinations. In the next few months, export earnings from non-traditional markets are likely to rise as China and India are importing clothing products for local consumption and global retailers are opening new outlets in India.
Forming associations for bilateral agreements
The improvement in safety standards in Bangladesh’s ready-made garment (RMG) factories, and buyers’ relocating their sourcing destinations has also caused export earnings to increase. To retain this growth momentum, Bangladesh has to identify buyers’ priorities and design a strategy to develop its product basket to cater to buyers requirements.
Exporters Association of Bangladesh (EAB) believes exports to new destinations to be a reflection of buyers’ confidence, which has been boosted by improved safety standards in the industry. The association urged the government to work for more bilateral negotiations and trade agreements to avail duty-free access to markets with high tariffs.
Knitwear leads, policy measures and cash incentives drive growth of EU
Likewise, the European Union also indicates that earnings from apparel products from non-traditional countries reached $2.90 billion, up from $2.12 billion in the previous fiscal year (FY2017-18). Of the total amount, knitwear products earned $1.44 billion, which was 29.52 per cent higher than $1.11 billion in the corresponding period of FY2017-18. Woven goods fetched $1.45 billion, up by 43.58% from $1.01 billion in the first half of the previous fiscal year. Total apparel exports of the country saw a 15.65 per cent growth to $17.08 billion in the same period of the current fiscal year.
Under Armour’s gross margin for the fourth quarter rose 160 basis points to 45 per cent. Net revenues rose 1.5 per cent. The 2018 results demonstrate significant progress against the company’s multi-year transformation toward becoming an even stronger brand and more operationally excellent company.
By region, North American sales fell 5.8 per cent while those in Latin America dropped 15.1 per cent. Sales in the Asia-Pacific rose 35.2 per cent and sales in Europe, Middle East and Africa gained 31.7 per cent. By segment, apparel sales rose two per cent. Footwear slipped 4.5 per cent while accessories inched down 2.2 per cent.
Under Armour has been working on improving operations, including supply chain initiatives that are expected to help boost 2019’s gross margins. The company’s accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives it increasingly greater confidence in its ability to deliver for Under Armour athletes, customers and shareholders.
Lenzing introduced Tencel branded lyocell and modal fibres with microtechnology for enhanced comfort at the Première Vision show in Paris. Lenzing is an expert in producing and marketing of microfibers for the textiles industry and gives this specialty fibre category a new boost. Lenzing’s fibre portfolio boasts of a wide range of fine fibres for the textiles and fashion industry. Light and smooth fabrics can be designed with these fibres which are a major contributor towards the comfort of the clothing and the wearer’s well-being.
Tencel Lyocell and Modal fibres are produced in titers of 1.00 – 0.80 dtex using Micro technology and processed to lightweight fabrics. A clothing of Tencel Lyocell or Modal fibres, produced with Micro technology, is light on the skin and has a flowing drape. It is defined by feel-good properties like silkiness, softness and long-lasting suppleness, the company reports. Furthermore, Tencel Lyocell and Modal fibres with Micro technology are naturally smooth and supple as tests confirm, according to the manufacturer.
Trident, the flagship company of the Trident Group, one of the largest vertically integrated home textile manufacturer, has been granted a patent for 'Air Rich Yarn and Fabric and its method of manufacturing' by United States Patent & Trademark Office.
The present invention describes the novel ‘Air Rich Fabric’ and ‘Air Rich Yarns’ with pores throughout the cross section of the yarn. The invention is directed at producing air rich fabrics and yarns which have high breathability, quick absorbency, easy dryability, and increased bulk. Unlike regular terry fabrics which become harsh after multiple washes, air rich fabrics (Terry) retains softness and become more bulky even after multiple washes. That is why we call such fabrics- ‘Start Soft, Stays Soft.’
Silver Crest will set up a readymade garment manufacturing unit in Andhra Pradesh. The factory will have a capacity of 20.4 million units a year and employ some 2500 people. Established in 1995, Silver Crest is a major manufacturer of fine tailored clothing in South Asia and a manufacturer of high quality suits for an array of leading brands across the US, with a growing presence in France and the UK.
The firm has a capacity to make over four million garments a year across four facilities in Bangalore and currently employs 7700 people. The firm has captured a significant share of tailored clothing and caters to many international clients.
Textiles are a priority sector for Andhra Pradesh and the state envisages increasing productivity and efficiency in the cotton-to-garment value chain. The new textile policy is industry-friendly and aims at attracting investments worth Rs 15,000 crores and creating 2.5 lakh jobs. The state aims at increasing productivity and efficiency by attracting integrated textile units.
The new policy aims to make the state a seed capital by setting up of seed industries. A seed park will be set up. The hope is to attract Rs 3000 crores in investments and create 40,000 jobs by 2023 through this park.
