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Tuesday, 24 July 2018 14:39

EU tees imports up six per cent

The European Union’s import volume of T-shirts rose 6.06 per cent during January to April 2018. India’s export volumes of T-shirts to the EU rose 3.48 per cent. The rise in volume indicates India successfully caters to European buyers. However, to stay relevant and competitive, India dropped unit prices and, as a result, there was a fall of 0.55 per cent in T-shirt shipment value of exports to the EU in the same period.

Bangladesh’s export volume of T-shirts to the EU rose 10.81 per cent. But there was a 1.95 per cent drop in value terms. Vietnam was the only country among Asian manufacturing powerhouses which registered growth in both volume and value of T-shirt exports to the EU. Export volumes surged 4.20 per cent surge on a year on year basis, whereas shipment values were up 8.18 per cent during the review period.

Despite the fact that China remains a key global centre for the T-shirts, production is gradually shifting to other countries in Asia. Asian countries accounted for the highest dollar worth of exported T-shirts (inclusive of all materials) during 2017 and had a 56.7 per cent share of worldwide exports.

Nguyen Thi Tuyet Mai, Secretary General of the Vietnam Textile & Apparel Association (Vitas) says, Vietnam is one of the world’s leading destinations for investors in the textile & garment industry due to the bilateral and multilateral agreements that the country has signed. Vietnam joined 16 FTAs, of which the two new-generation FTAs – CPTPP and EU-Vietnam FTA — are expected to facilitate the development of the industry.

Taiwanese company Far Eastern Apparel recently received an investment certificate to implement a $25 million garment project in VSIP II-A IZ in Binh Duong province of Vietnam. The company also signed a contract for leasing more land to expand its investment in its cloth and chemical fibre project in Bau Bang IZ.

Similarly, Singapore-based Herberton launched a textile and garment project, Ramatex in the Nam Dinh, with total investment capital of $80 million. The project is expected to become operational the next year and generate 3,000 jobs. Meanwhile, Japanese Itochu has spent 5 billion yen ($47 million) to acquire 10 per cent of Vinatex’s shares more, raising its ownership ratio in the Vietnam’s largest textile & garment group to 15 percent.

 

Invista’s Cordura® brand and Cone Denim® are debuting their latest collaboration at Outdoor Retailer Summer Market in Denver from July 23-28, 2018. This new denim innovation - Cordura® S Gene® Denim offers an authentic look and feel with hidden performance and engineered stretch benefits.

The Cone Denim's® S Gene® innovation was originally introduced in 2007. The high performance dual-core technology S Gene® yarn provides exceptional stretch and recovery. These yarns are made with two core components which optimise stretch and maximise recovery, and the dual-core is wrapped in spun cotton to provide a soft cotton hand and natural appearance.

Cordura®’s Gene® Denims feature high-strength nylon 6,6 filament technology and are validated to meet the durability, performance, and quality standards required for Invista's Cordura® brand fabrics. Cone Denim offer authentic indigo and black Cordura® S Gene® Denims in a range of weights from 10.75 to 11.75, with varying stretch 14 to 32 percent.

 

In fiscal 2017-18, Bangladesh’s total apparel exports to UK was $3.71 billion – a rise of 3.9 per cent from 2016-17. British businessmen are now willing to invest in Bangladesh as there is a big demand for Bangladeshi products in Britain. UK remains the third top destination for Bangladesh’s apparel exports, beating Brexit fears.

Bangladesh has also sought GSP Plus facility from United Kingdom, its third biggest trade partner, following Britain’s exit from the European Union. This facility would be granted to Bangladesh when it graduates out of the least developed country (LDC) club.

 

Axel Drieling of the ICA Bremen recently visited the Brazilian Association of Producers of Cotton (ABRAPA) and its central laboratory Centro Brasileiro de Referencia em Analise de Algado (CBRA).

He provided consultancy to ABRAPA and CBRA in June 2017 on Brazil's Standard HVI Program (SBRHVI). His latest visit added more expertise in this area as well as examined the quality management and procedures of CBRA as it prepares for ICA Bremen International Laboratory Certification.

Drieling also delivered a tailored training workshop at ABRAPA to 15 participants from a range of laboratories involved in instrument testing of Brazilian cotton production. The workshop defined the best prerequisites for assuring valid test results for the Brazilian cotton –something which is a key focus for ABRAPA.

 

"Romania’s textile industry is struggling to make profits with stiff competition from Asian countries and its own high labour costs. And the situation has been augmented by Brexit resulting in many companies shutting shops. For example, Alin Benta, which operated in Romania’s second city of Lasi. After reopening in early 2017, Benta started producing upholstery for Swedish IKEA. Like many of Romania’s roughly 4,500 textile factories, employing more than 200,000 people in one of the EU’s poorest countries, Benta’s operation relied heavily on British clients who paid in pounds. As sterling started devaluing by as much as 20 per cent against the Romanian lei, the factory’s monthly earnings fell by 50,000 lei (£9,400). Benta had the courage to revive once again and find clients but other companies have been unable to do so."

 

Brexits negative impact on Romanian textile factories 001Romania’s textile industry is struggling to make profits with stiff competition from Asian countries and its own high labour costs. And the situation has been augmented by Brexit resulting in many companies shutting shops. For example, Alin Benta, which operated in Romania’s second city of Lasi. After reopening in early 2017, Benta started producing upholstery for Swedish IKEA. Like many of Romania’s roughly 4,500 textile factories, employing more than 200,000 people in one of the EU’s poorest countries, Benta’s operation relied heavily on British clients who paid in pounds. As sterling started devaluing by as much as 20 per cent against the Romanian lei, the factory’s monthly earnings fell by 50,000 lei (£9,400). Benta had the courage to revive once again and find clients but other companies have been unable to do so.

Cut-throat competition

Workers at hi-tech car plants in Slovakia, Poland and Hungary have used their bargaining power to extractBrexits negative impact on Romanian textile factories 002 higher wages from foreign auto giants, Romania’s garment factories have very little grip over the market. Mihai Pasculescu, Head of the Romanian Textile and Leather Federation says mass brands look for low prices. Similarly, Aurelian Ciobotaru, a factory owner in Lasi, added the one who sets the lowest price takes the order. Elena Stoica, President, Romanian Manufacturers Association and owner of two factories employing about 1,000 people in Vrancea County of eastern Romania, says negotiations went badly. Some (brands) agreed to support them but many didn’t.

Data from Romanian Ministry of Commerce and the British Romanian Chamber of Commerce demonstrates a steady decline in orders from British brands over the past years. The slump will be reflected in the statistics in the next couple of years, as factories try to switch clients. It takes 2-3 years to rebuild.

Governed by small industries

The Romanian market is dominated by small and medium-sized factories, accounting for about 95 per cent of units. They remain dependent on middlemen and have minimal bargaining power. Brands can simply take their business elsewhere, at little upheaval or cost. Bettina Mussiolek, Coordinator for Eastern Europe and Turkey at the Clean Clothes Campaign opines there is no way for the garment industry in these countries to upgrade. It’s a real trap both for the national economy and factories. And it’s a social disaster because only poor wages can be paid and workers face extremely bad conditions.

Big factories, which face outside monitoring of working conditions, frequently pass orders to smaller factories, even to tiny, apartment-based operations where oversight is minimal or non-existent. For smaller factories to grow, move up the hierarchy and secure better prices, they need to be certified. But many cannot afford the investment necessary to secure certification.

Pasculescu said that while Brexit indeed marked a tipping point in terms of forcing factories to look elsewhere beyond Britain, garment production in Eastern Europe was still competitive with increasingly expensive rivals in China with proximity to Western markets. The industry is not about to fold. But between 2007 and 2015, an estimated 3.4 million Romanians have left to work abroad, putting the country second to Syria in terms of migration rates. While that time, the industry could manage the downturn, the Brexit impact seems to be extremely unencouraging.

On the strength of the first quarter and the new lineup that helped boost major gains in first quarter net revenue, VF Corp raised its full-year forecast for revenue to between $13.6 billion and $13.7 billion, reflecting an increase of 10 percent to 11 percent.

By segment, the company’s revenue for Outdoor clothing is expected to increase from 6 percent to 8 percent, Active wear is forecast to increase from 13 percent to 14 percent, revenue for workwear is seen growing more than 35 percent, and revenue for jeans is expected to be flat compared to the prior year.

The direct-to-consumer revenue of the company is predicted to rise between 11 per cent and 13 per cent versus the previous expectation of an 8 per cent to 10 per cent increase. Digital revenue is expected to increase more than 30 per cent versus the previous expectation of a more than 25 percent gain.

 

Kraig Biocraft Laboratories, a developer of spider silk-based fibers, has opened a new facility in Quang Nam province, Vietnam. The facility will be used for the company’s Prodigy Textiles subsidiary due to its proximity to mulberry production, building layout, utilities and access to shipping ports. Kraig Biocraft also plans in the future to open a 124-acre campus near the site as part of its strategy to develop affordable spider silk materials.

The company has also been working in collaboration with a local cooperative to expand mulberry production. The project is a major element of Kraig Biocraft’s production expansion plans and marks a significant increase in capacity.

Last month, the company completed the production of its first roll of pure Dragon Silk fabric, marking the first time that its proprietary recombinant spider silk fibers were used to create a 100 per cent pure woven silk fabric. The material will be used to make ballistic shoot packs for the U.S. Army.

 

The massive drop in unit prices of garments has resulted in a stellar surge in clothing imports of the European Union, according to the data released by Eurostat.

Unit Value Realisation (UVR) in the period was € 17.05 per kg of fabric equivalent as against € 18.65 in the same period last year. The rebound of the euro from a year earlier boosted demand from European buyers and due to a fall of unit prices in euro terms by 8.58 per cent on the yearly note, value of imports plummeted by 1.09 per cent.

The shipments from Bangladesh continued to cover the larger chunk in the European market beating even China which is losing ground in its clothing exports to EU.

Bangladesh clocked € 1.44 billion in the April month while China’s exports could just hit € 1.15 billion in the month indicating Bangladesh is clearly pacing up to match the Chinese shipment values in EU.

 

Make it British, a campaign set up by Kate Hills to encourage more people to buy British and make in the UK, has announced that Make it British Live will take place next year at the prestigious Business Design Centre in London’s Islington in 2019 from 29-30 May.

Kate Hills, founder of Make it British says that the move to the Business Design Centre presents a great opportunity for UK manufacturers to showcase what they do in a beautiful venue that is filled with natural light and steeped in history.

Make it British began in 2014 and was originally called Meet the Manufacturer. The first trade show took place in a small warehouse at The Old Truman Brewery in East London with just 56 exhibitors. Next year, Make it British Live Expects to welcome well over 200 exhibitors from across the fashion and homeware sectors.

Kate, a former fashion buyer, founded a website called Make it British in 2011 as a platform for promoting UK manufacturers and British-made brands. Make it British now includes events, such as Make it British Live! and regional Make it British forums, along with an extensive Make it British membership and directory and online training.