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The value of Vietnam’s textile and garment exports rose 19.2 per cent in 2017 compared to 2016. However, the cost of logistics activities for textile and garment enterprises accounts for 9.1 per cent of total export turnover. Logistics costs in the country are six per cent higher than in Thailand, seven per cent more than in China, 12 per cent higher than in Malaysia and three times more than in Singapore.
Despite reasonable labor costs, Vietnam’s competitiveness has been affected by transport costs, surcharges at seaports, and limited seaport infrastructure. Regulations on fees and charges for logistics services are high, making transport costs also relatively high, accounting for between 30 and 40 per cent of the cost of products, compared to some 15 per cent in other countries.
In addition, the surcharges of shipping lines also contribute to the cost of logistics operations in the country. Expanded costs for logistics have significantly affected the garment and textile industry, which employs a large number of labourers and is hugely dependent on input importation, which results in low added value.
To address these challenges, many firms have applied technology to better manage warehousing and optimise supply chains. One of the most commonly used technologies includes backing up bills and contracts, and automatically transferring documents between firms. Logistics enterprises are working to improve their competitiveness, and consider cooperating in transport services to reduce costs for other enterprises.
Japan and China, in recent months, have undertaken strategic measures to improve their trade relations in response to trade war measures against both countries by the Trump administration. Both governments are exploring closer economic relations to offset Washington’s trade war measures.
Japan, as the third largest economy in the world, is turning to China to offset the negative impact of the more openly predatory US policy. With the economies in the region closely linked, the US tariffs on Chinese goods will also indirectly impact Japan. However, Tokyo will use whatever foothold it can gain through this apparent thaw in relations with Beijing to ensure its imperialist interests are met. Rather than working as a junior partner of the US, the Abe government is increasingly pursuing a more independent foreign policy and remilitarizing so it can back it through force of arms if necessary.
For China, opening new markets would mitigate some of the effects of US tariffs already imposed on $50 billion worth of goods and another $200 billion that Trump is now proceeding with. To mend relations with Tokyo, Beijing has toned down its anti-Japanese chauvinism and also eased tensions over its territorial dispute.
The textile and apparel industry in Indonesia wants downstream products to be protected from the onslaught of imports. Other aspects that need improvement include electricity tariffs, ease of distribution and quality of human resources. For Indonesia, trade agreements with partner countries can increase both export value and market share.
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which expected to be ratified in November 2018 could have an impact on increasing the market share of apparel exports to Australia. Indonesia is also looking to complete trade agreements with key partners such as the United States and the European Union, which are the main destinations for Indonesia’s textile exports. With such agreements in place Indonesia expects its exports of textile and textile products to increase three-fold.
The cooperation agreement with Japan has helped increase Indonesia’s exports. Till now, lack of market access has been a constraint for the textile industry. Meanwhile, textile products from neighboring countries, such as Vietnam, can enter with a zero per cent import duty. At present, the market share of new domestic textile products is around 1.8 per cent while in Indonesia the textile industry has been integrated from upstream to downstream so that the potential for development is still large.
The Silk Mark Organisation of India (SMOI) recently organised the Silk Mark Expo in Guwahati. The five day event, sponsored by Central Silk Board, Ministry of Textiles, was held at the Northern Eastern Development Finance Corporation. (NEDFi) House.
The event was attended by 44 Silk Mark members and authorised users from across the country who showcased their ‘Vanya’ silk products such as muga, eri, tussar, etc. The Assam government announced the setting up of a yarn bank in the Sualkuchi at the event. The bank will make raw material available at the market price with a subsidy of 20 per cent. This initiative will benefit the local weavers who will be able to buy the raw material without paying any extra cost to the traders. Also, the raw material will be available locally, further eliminating the transportation cost.
A collaborative research between scientists in Kerala, and Florida has utilised supercritical carbon dioxide as a carrier to size and resize cotton. They have identified supercritical carbon dioxide attractive chemistries such as sucrose octaacetate, glucose pentaacetate and polyethylene glycol that can be applied to textiles via supercritical carbon dioxide at a pressure of about 90 bars, making the process cost-effective.
Researchers claim the process is cost-effective as it avoids other costlier functional chemistries and is environmentally friendly. Sucrose octaacetate in supercritical carbon dioxide system provided good results for cotton and polyester and the chemical is inexpensive as it is an agricultural product.
Green technologies such as supercritical fluids and plasma have been getting serious attention these days. Consumers prefer sustainable processes and clothing. Stating a survey, Melissa Bastos of Cary-based Cotton Incorporated stated almost 63 per cent of consumers globally invest time and effort into finding sustainable clothing.
The textile division of All Pakistan Textile Mills Association (APTMA) has proposed to Prime Minister Imran Khan to reduce electricity and gas prices. The association has proposed the withdrawal of tariff rationalisation surcharge currently at Rs 3.10/KWh and financial surcharge at Rs 0.48/KWh. As per the textile division's presentation, RLNG depends on international prices and are currently at Rs 1,600 mmbtu while the system gas available in Sindh and KPK are at Rs 488-Rs 600 per mmbtu. Disparity in gas price vis-à-vis system gas and RLNG is one of the major issues.
APTMA hoped the new government will take decisions in the interest of industrial sector after incorporating the feedback from the respective sectors. The finance ministry has assured APTMA of its full support to uplift this export-oriented sector on the condition that the sector will fulfill its obligations for increasing exports bringing in much needed foreign exchange and will not in any case be helpful to anyone involved in tax evasion.
Graf, based in Switzerland, a leading textile spinning solutions provider will showcase its wide portfolio of solutions at ITMA ASIA, in Shanghai from October 15 to 19, 2018. As a complete system provider, Graf offers a comprehensive package from product and technical advice through to service and service equipment. The full range of products and services is designed to deliver maximum value to customers. Graf also supports its customers by developing custom-made solutions for all their application needs.
Graf has a wide portfolio of solutions for the spinning and fiber preparation processes. Ri-Q-Comb flex is a circular comb series with adjustable height for up to 20 per cent lower imperfections. With 35 or 40 teeth respectively, nep values can be improved by up to 30 per cent.
Graf has become the worldwide leading supplier through its high-quality products. Since 1917, Graf has been manufacturing innovative metallic card clothings, flexible flat clothings and stationary flats for cards. Benchmarks have also been set by the high quality combs, service machines and accessories.
The EasyTop System of flat clothings stands for optimal settings of the carding gap and reduces the loss in good fiber. In addition, the handling of flat clothing replacement is much easier and can be done without special equipment.
Over the first eight months of the year, China's surplus with the US has risen nearly 15 per cent. This has added to tensions in trade relationship between the world's two largest economies. The US is China's largest export market.
Even with US tariffs targeting $50 billion of Chinese exports in effect for their first full month in August, China's exports to the United States still accelerated, growing 13.2 per cent from a year earlier from 11.2 per cent in July. The impact of US tariffs on China’s exports would likely be limited over the next few months.
The surplus with the United States was larger than China’s net surplus for the month, indicating China would be running a deficit if trade with the world’s largest economy was excluded. China’s imports from the United States grew only 2.7 per cent in August, a slowdown from 11.1 per cent in July.
The world’s largest trading nation got off to a strong start this year, but its economic outlook is being clouded by the rapidly escalating US trade dispute and cooling domestic demand. The US has threatened to slap tariffs on nearly all Chinese imports to the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.
As per latest US Census Bureau figures, overall value of Bangladesh's exports to the US increased 5.83 percent year-on-year to $3.63 billion in the first seven months propelled by higher apparel shipments. OTEXA also reveals export of apparel items grew 5.61 percent to $3.21 billion while Bangladesh moved to the third position from sixth with respect to garment export to the US.
Of Bangladesh's total export value, garment items account for over 90 per cent. China still holds the top position having exported $14.19 billion-worth garment items in the last seven months. However, China's garment export to the US declined 0.83 per cent year-on-year.
The inspection and remediation of factories as per recommendations of the Accord and Alliance has brightened Bangladesh’s image. Both Accord and Alliance have already completed over 90 per cent remediation in the garment sector, mainly fixing electrical, fire and structural loopholes.
Some US retailers who had left Bangladesh a few years ago for countries like Myanmar were coming back with hands full of work orders. Moreover, a lot of work orders from China have also shifted towards Bangladesh as the country has become an expensive destination for higher cost of production and a shortage of skilled workforce.
"Growing online shopping has increased the contribution of online retail sales. Last year, web-based shopping platforms from Amazon to Zalora accounted for 12.1 per cent of retail sales in the Asia-Pacific region. The global e-commerce market is estimated to be worth $2.3 trillion. As online stores deliver everything from furniture to clothing to groceries, consumers today rarely step out of their house to shop. As entrepreneur.com reveals, 51 per cent of Americans and 67 per cent millennials prefer to shop online rather than visit brick and mortar stores."
From buying clothes purely on fads or the desire to look good to buying clothes that complement modern lifestyles, consumers have come a long way. Changing lifestyles have pushed up demand for comfort clothing.
Comfort with style a priority
Growing online shopping has increased the contribution of online retail sales. Last year, web-based shopping platforms from Amazon to Zalora accounted for 12.1 per cent of retail sales in the Asia-Pacific region. The global e-commerce market is estimated to be worth $2.3 trillion. As online stores deliver everything from furniture to clothing to groceries, consumers today rarely step out of their house to shop. As entrepreneur.com reveals, 51 per cent of Americans and 67 per cent millennials prefer to shop online rather than visit brick and mortar stores.
This is also the reason why sale of luxury loungewear has increased over the years. Consumers expect their clothes to be both comfortable and versatile enough to accommodate their hectic schedules without compromising on style. The rise of luxury loungewear is seen as a response to varied lifestyles of modern consumers.
A striking example of this is the cashmere jogger which continued to be the best seller at Haroods – the luxury
department store in 2017. On similar lines, sale of sweatpants at MatchesFashion.com increased 300 per cent year-on-year while British retailer Selfridges registered a 30 per cent year-on-year growth in sales of premium loungewear. The retailer’s of cashmere loungewear pieces also doubled.
Known for their luxurious feel, the clothes made of Tencel, Lyocell marry style and comfort. They increase a consumer’s style quotient by exhibiting a sleek, sumptuous sheen and deeper, richer color compared to other fabrics. More absorbent than cotton, softer than silk and cooler than linen, Lyocell also provides long-lasting softness to help skin stay pleasantly cool and dry through day and night.
Moving towards functional fashion
With busy lifestyles, more travel and varied and flexible work lives, fashion too is adopting a functional approach. Consumers seek comfortable, fuss-free styles that adapt to the moment and can travel anywhere with them.
Also, with consumers becoming more aware about health and wellness, they expect more from the apparel industry, just as the versatility of activewear has grown in response to demand from the athleisure fashion consumer.
Shoppers don’t just buy a product, they buy everything it represents. Still, they can feel limited by choice in a clothing industry that produces some 100 million tons of fibers each year, of which synthetics are expected to be more than 98 per cent of future fiber production, according to petrochemical analytics firm, Tecnon Orbichem.
Consumers who buy eco-friendly clothes can now feel good about opting for garments made of fibres having the least environmental impact. A fiber of botanic origin, Tencel is extracted from the cellulose found in wood pulp, and its production process is more eco-friendly than other fibers in terms of water, land and chemical output. Using a special ‘closed-loop system’ recognised by the European Union with an European Award for the Environment, 99.7 percent of the chemicals and solvents used to make Tencel fibers are recovered and recycled with minimal waste and very low emissions.
Leading busy and aspirational lives, consumers today yearn to make their clothes durable, comfortable, timeless and eco-friendly. Increasingly, the apparel industry is offering up sustainable options to help satisfy that demand.
