Sri Lanka’s apparel exports during January to October grew 4.4 per cent year on year. Exports to the US grew 4.5 per cent year on year and exports to the European Union grew 4.2 per cent year on year.

October apparel export earnings declined one per cent year on year. In October, apparel exports to the US slowed down 6.5 per cent year on year. Apparel exports to the EU recorded a growth of 3.1 per cent year on year. Sri Lanka’s apparel exports were impacted by sluggish retail markets in the EU and US as well as fierce competition among global suppliers. It is estimated that there’s four per cent oversupply in the global apparel market. Sri Lanka is not able to fully capitalise on the US-China trade war, as Sri Lankan manufacturers don’t have the capacity to cater to the export orders that China is losing.

The country expects apparel export earnings would average around $450 million in November and December, enabling the industry to cross the $5 billion mark. Apart from Bangladesh and Vietnam, some African nations such as Ethiopia are also emerging as major apparel exporters to the US and EU, as they have the capacity to manufacture garments at a lower cost while meeting the necessary sustainability standards demanded by US and EU retailers.

Kitex has been allotting regular capex for improvement of technology and infrastructure and is in the process of upgrading its current facilities so as to expand its capacity. Kitex, based in Kochi, is a manufacturer of specialized infant apparels. Its products are sold in over 18 countries. The key market for the company is the US followed by Europe.

The facility at Kochi covers an area of 1,80,768 sq.ft. The process line is equipped with a digital dispenser system for error-free, automatic and computer-controlled preparation of color guidelines, high quality knitting machines, modern dyeing, printing and finishing systems that use cutting-edge technology. Its garmenting unit uses the latest machinery for pattern computer-aided design, plotting and grading. It has automatic spreader machines which enhance the speed of spreading and automated cutting machines for faster and precision cutting.

Kitex has a daily capacity to manufacture 3,60,000 units of infant garments. Having an integrated and traceable value chain which meets global standards at various stages of the product supply chain is the key global differentiator at Kitex. The company buys yarns, dyestuffs and chemicals from approved sources. The dye recipes, dye dispensing and yarn dyeing are done using robotic technology for accuracy and quality.

A recently released apparel trade statistics by OTEXA indicates, India will surpass both Bangladesh and Vietnam in next six months to become the second largest kidswear supplier to USA after China. India clocked in $157.86 million from kidswear exports to the US from January to October ’18, growing at 6.52 per cent.

In volume-terms, India saw a surge of 16.53 per cent and shipped 7.94 million kg worth of kidswear to the US market. During the 10-month period, US managed to grow only 1.33 per cent in volumes and 2.10 per cent in kidswear import values which are quite low as compared to India’s escalation in its respective export.

Simultaneously, all top Asian exporting nations fell in their respective value-wise exports in kidswear segment to the US. China, Bangladesh and Vietnam dwindled by 3.23 per cent, 2.50 per cent and 2.52 per cent respectively and the declining trend of these countries helped India capture shift especially from China which caters to 47 per cent of kidswear demand in US.

Markedly, India emerged as the only country which increased its value-wise share, while all other countries declined their share on y-o-y basis.

The 5th session of Spinexpo, to be held from January 16-17, 2019 in Paris, will focus on Organic Futurism. © Spinexpo. The theme will focus on how to use traditional materials more creatively thanks to new technologies that combine organic and synthetic materials to create more high-performance yarns. The fair will present a preview of its collections and color ranges for the Spring/Summer 2020 season. The key theme of the trends for the collection will be In Between. Buyers will be taken on an educational and entertaining tour of the challenges facing the profession today.

One of the new lines on show will be KnittingIndigo from the Taiwanese spinner AA Global, which is the result of more than 30 years of research.

Bangladesh has announced that inconsistencies in the newly announced wage structure for readymade garment workers would be solved after the national elections scheduled for December 30, 2018. State minister for labor Md Mujibul Haque urged all agitating workers at Ashulia, Gazipur and Narayangonj to join work as it would not be logical to create unrest in the RMG sector ahead of national elections.

The minister arranged the briefing following a meeting of Crisis Management Core Committee. Representatives from several ministries, Bangladesh Garment Manufacturers and Exporters Association, industrial police and other law enforcement agencies and labor leaders attended the meeting. He urged factory owners to give workers a clear idea about the new wage structure and requested them to develop relationship with the workers to avert any untoward situation.

Workers of many factories at Ashulia, Gazipur and Narayanganj started demonstrations on December 9 rejecting the new wage structure. The workers allege their basic wages in some grades in the new structure have been decreased from what they were previously.

The Bangladesh government has decided to reduce the rate of source tax on RMG export earnings by 58 per cent. Finance minister Abul Maal Abdul Muhith has already conveyed his consent to National Board of Revenue to reduce the source tax to 0.25 per cent from current 0.60 per cent.

Earlier, in September, the government had slashed the tax rate for RMG exporters to 0.60 per cent for the current fiscal year, following pressure from exporters, reducing from 1 per cent reinstated in the budget.

NBR would complete the procedures, including taking vetting from law ministry, to issue the statutory regulatory order reducing the rate to 0.25 per cent. As per Income Tax Ordinance-1984, exporters are supposed to pay 1 per cent tax at source on their export income. According to an NBR estimate, previous reduction in source tax may reduce its earnings from the sector by Tk 1,600 crore in the year. Now NBR will incur another Tk 1,400 crore for the fresh tax cut.

Denim trends for 2019 are expected to be shaped by consumers and the environment around them. While the connection between denim and politics ebbs and flows through history, the relationship is expected to pick up steam in the coming year as the next US presidential election nears and younger generations continue to find their voice.

A whole generation is getting into demonstrating and gaining a voice about what’s happening around the world. Millennials and Gen Z will likely follow in the footsteps of young generations from the ’60s and ’70s, which took bold actions to fight racism and injustice, fought for women’s rights and protested the Vietnam War. Their fashion will follow, too.

Flare and crop flare are gaining traction in the women’s market, while men’s is moving toward straight cuts with an exaggerated cuff. Bolder historic references come through in washes like acid, enzyme and tie-dye. Raw denim is shifting toward something that looks handmade and one-of-a-kind. This is an artisanal direction, which will challenge many companies, particularly those that manufacture on a large and cheap scale.

Fashion has become more democratic. People want something that doesn’t look mass produced. Social media will be the tool that helps keep luxury streetwear on the map in 2019 and beyond.

Gap’s quarterly revenue is up 6.5 per cent compared to the same quarter last year. Net margin was 5.57 per cent and return on equity 29.45 per cent.

Gap’s payout ratio is currently 45.54 per cent. The business also recently declared a quarterly dividend, with a yield of 3.65 per cent. The firm has a price-to-earnings ratio of 12.49, a P/E/G ratio of 1.15 and a beta of 0.67. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.85 and a current ratio of 1.97.

The company has one platform for all its brands, ensuring customers can purchase items for any of them in one place. This has also ensured its new brands get the recognition that would not have been possible if they had had a separate web presence. An upshot of this is that the company was able to deliver strong growth from its online and mobile channels in the second quarter.

Gap offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, and Intermix brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel and everyday activities.

US jeans imports from China rose just 2.91 per cent for the year through October to $790.89 million worth of goods, compared to the year-ago, while shipments from Mexico increased 1.61 per cent in the same timeframe to $679.41 million. Imports from both countries have only increased slightly as the countries face disruption in US trade policy. In order to mitigate risk in their supply chains, the countries have had to shift sourcing plans.

Tariffs have caused China to lose a majority of its jeans market to other Asian nations. Vietnam saw shipments to the US rise 46.16 per cent in the last 10 months to $248.95 million, while Bangladesh shipments increased 12.78 per cent to $481.41 million.

Other Asian suppliers seeing a hike include Pakistan, with imports rising 12.52 per cent to $206.05 million; Cambodia, with shipments up 27.49 per cent to $99.08 million; and India, posting a 44.59 per cent hike to $31.35 million. Meanwhile, suppliers are also taking market share from Mexico since they have the same attributes of quick shipping times and duty-free trade because of the Central American Free Trade Agreement (CAFTA). US jeans imports from CAFTA countries rose 7.37 per cent in the 10 months to $116.37 million worth of goods.

Bangladesh’s exports of terry towels rose by 49.60 per cent from July to November. In fiscal 2018, exports of home textiles, including terry towels, bed sheets, linen, curtains, and pillow covers, grew 9.95 per cent year on year. However, terry towel exports declined 4.40 per cent year on year.

With a trade advantage of nearly 15 per cent, including six per cent cash incentive, the home textile sector in Bangladesh, especially terry towels, is performing well. Bangladesh regularly exports different types of home textiles and specialized textile products including terry towel bed sheets, bedspreads, pillows, pillow covers, cotton table napkins, furnishing fabrics, curtains, window and door curtains, cushions, cushion covers, carpets, table covers, kitchen accessories, mattress covers, bath linen, and other home furnishings.

However, at least 10 small and medium factories have closed in the past two years. Another three or five are struggling to survive. At least 70,000 workers lost their jobs due to closure of those factories. The sector’s (including terry towel) growth started to witness a decline from January 2014, when the European Union allowed zero-duty benefit to Pakistan under its GSP Plus scheme on the export of home textiles and some other products. The EU imported over $6.86 billion worth of home textiles in 2016.