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New M&S chairman Archie Norman could be at odds with the its senior management as it works to turn around fashion business. CEO Steve Rowe has vowed to get back to the core customer.
But Norman believes too much of the fashion they make is aimed at the 55-plus age group. The company needs to target women in their 30s and 40s too. Moreover, the company’s entry price fashion pieces need to be cheaper and have a more fashionable edge and that the buying cycle for fashion is too long.
Norman is expected to shake up the businesses. He is known as a troubleshooter/turnaround specialist (having done just that at Asda, Australia’s Coles and broadcaster ITV). But he’s non-executive chairman at M&S and so doesn’t have direct managerial responsibility, although he’s a voice that will clearly be listened to.
There has also been speculation he may want to push through closures of under-performing stores more quickly than the company has been planning. He reportedly also wants to change the head office culture to allow for faster decision-making by managers. The company’s profits for the latest half are expected to be down nine to ten per cent.
The 15th edition of Garknit-X was held in Kolkata, November 3 to 5, 2017. This is a machinery show for apparel, leather, embroidery and jute technology. This includes sewing, cutting, finishing, embroidery, fusing, laundry, printing and knitting machines for fabric trimming and embellishment, dyes and chemicals, software, cad/cam, print and packing, laboratory, support services and trading publications etc.
This is the largest technology exhibition in East India. Domestic and international machinery brands showcased their products. The three-day fair saw a massive display of latest machinery in different segments, including textiles, readymade garments, embroidery, digital printing etc. About 100 brands both international and domestic participated in the fair, which is held once in a year in this region.
The expo was attended by eminent professionals, senior corporate executives and industry decision makers. It featured live demonstrations to help participants know about the latest developments and updates from this sector. Since Kolkata is a gateway to this region as well as countries like Bangladesh and Nepal, the fair is very popular with buyers who are keen to adopt modern technology in their respective units to boost production capacity. The next edition of Garknit-X will be held at Tirupur, April 6, 2018.
Having made its mark in readymade garment production, the Dollar City seems to have now turned its focus on jute product manufacturing. The city has of late groomed 20 persons to make at least 25 varieties of jute products. The 49-day training was offered by the National Jute Board (NJB) in collaboration with NIFT-TEA College of Knitwear Fashion.
According to NJB, Tirupur can easily contribute to the jute product manufacturing as it has already cemented its position in readymade garment export front. Industrialists too hope that jute products could help the dollar city achieve the projected annual target of Rs 1 lakh crore in exports.
NIFT-TEA College is one of the 20 collaborative agencies of NJB for taking Jute Integrated Development Scheme (JIDS) to the masses. The objective of the JIDS is to create awareness about jute products and increase the number of skilled workforce for production of jute diversified products.
Among the 20 trainees at NIFT-TEA College, most were housewives or unemployed women. As per N Viswanathan, Project Coordinator, skill development initiative, at NIFT-TEA College, they have been conducting training programs on different textile products for aspirants. Jute product training is one among them. Many areas in and around Tirupur could be developed as jute product cluster. Jute product manufacturing is likely to become popular as it has a huge export market.
Factories like Zaber and Zubair, a sister concern of the Noman Group, play an important role in Bangladesh by supplying woven fabrics to domestic garment industry, helping them reduce lead time and increase quality for global brands. The company organized a fabric week for the first time in Bangladesh’s textile history. Held from October 29 to November 4, the exhibition displayed fabrics and garment products for global buyers at the company’s premises.
Generally, global brands organize a mill week to present seasonal products from different suppliers. But with this unique effort the group has taken a step forward in marketing and branding them. Zaber and Zubair is a major Bangladeshi garment exporter of towels and fabrics.
Every year in two sessions, spring/summer and autumn/winter, it employs experts from Sri Lanka, Italy, India, Bangladesh to make new collections with innovative designs. The company’s fabric capacity is 10 million meters per month. It has more than 200 factories and brands as customers. Zaber and Zubair regularly does supply chain management, motion study, value chain analysis and produces sustainable products in a sustainable way. It makes yarn and fabrics from recycling jute and does rainwater harvesting to reduce water consumption.
Textile manufacturing companies and dyestuff and chemical manufacturing companies are under pressure to comply with regulations and requirements and this is increasing the cost for them. A ‘sustainability’ seminar in Dhaka recently came up with some breakthrough solutions which can make real impact in changing the sustainability gamut of the textile value chain. The seminar titled ‘Sustainability 2.0’ highlighted how sustainability was supposed to be the integral part of business not to be considered as an imposed prescription or requirements as per as the concept of ‘Sustainability 2.0. However, use of eco-friendly chemicals and renewable raw materials in textiles, leather and plastic processing would reduce the impact on environment and play a major role in making the world sustainable. An unified platform for certification is better than a number of platforms.
BlueSign is important not only for textile dye and chemical manufacturers but also for textile processing mills. Normally, sustainability seminars are organized by donor agencies and regulatory companies. Normally chemical companies avoid engaging much with sustainability discussions.
Companies are trying to create textile chemicals having the lowest possible impact on environment without compromising on performance. Their technologies help ensure sustainability. They are working with renewable rather than finite raw materials that typically allow them to provide products with a lower carbon footprint as well as lower greenhouse gas emissions. Their approach is to reduce hazards upfront than trying to control them subsequently in an industrial environment.
Companies are developing products that reduce the impact of textile chemical finishes on the environment. They seek to either fully or significantly replace synthetic crude oil based raw materials with renewable ones. In addition, wherever possible, they include bio waste stream components in their formulations.
For the September quarter Century Textiles and Industries saw a 18.42 per cent rise in its net profit. It had posted a net profit of Rs 44.5 crores in the corresponding period of the previous fiscal. The company’s total income from operations, however, declined to Rs 1,844.57 crores from Rs 1,997.04 crores in the year ago period. During the quarter under review, its total expenses reduced to Rs 1,734.53 crores from Rs 1,952.13 crores in the corresponding period of the last fiscal.
Mumbai-based Century Textiles and Industries is active in textiles, viscose filament yarns, cement, and pulp and paper. In the textile business, Century has two revenue streams: cotton fabric and denim units. The company has a vertically integrated plant at Bharuch for manufacturing cotton fabrics.
Century Textiles and Industries is part of the BK Birla Group and was established in 1897. The cotton division of Century is one of the oldest in India and manufactures a wide range of premium textiles and supplies to many international players, including Royale Linen, Ralph Lauren, DKNY, Belk and US Polo.
Century Textiles’ financial metrics have declined, mainly due to its high debt. Interest costs have corroded its profit after tax.
Bangladesh wants Chinese investment in infrastructure development, equipment manufacturing, light industry, electronics and textile sectors. Bangladesh is the gateway to Asean and South Asian countries and close to China.
Principal exports from Bangladesh to China are woven garments, leather goods, knitwear, jute and jute goods and leather and frozen foods. Imports from China include textiles and textile articles, machinery and mechanical appliance, electrical equipment and products of the chemical and allied industries.
Bangladesh’s readymade garment exports to China in the July-March period of FY17 grew by 27.11 per cent compared to the same period of FY16. The country is now focusing on exports to China especially since China is shifting from production of basic products to high-end and high-tech items and meeting domestic demand for basic products through imports.
Chinese investment in Bangladesh’s port and energy infrastructure, as well as extensive Chinese military assistance, has encouraged the country, part of India’s natural economic hinterland, to maintain a closed border with India.
By mid-1980s, China had become the staunchest international friend of Bangladesh, cementing the relationship with numerous trade and cultural agreements, construction projects, and military transfers. In recent years economic relations between China and Bangladesh have increased manifold. Bangladesh business community has been invited to invest in the Chinese agriculture, automobile and electronics sectors.
Garments at the fashion retailer Zara in Turkey come with tags put on them by workers complaining they have not been paid for the merchandise in the store. The tags are a way of drawing shoppers’ attention. The tags are a way of putting pressure on Zara into making the payments.
The workers were employed by a manufacturer, which closed down overnight. The manufacturer owes them three months of pay and severance allowance. It can be difficult for brands to know exactly what their suppliers are doing. Factories may subcontract work without a brand’s knowledge to meet tight deadlines and Turkey’s proximity to Europe makes it convenient for fulfilling last-minute orders.
The fast-fashion formula of speed and low prices has created billionaires in the industry. Homegrown brand Zara leads the fashion industry in Spain. Zara is the flagship brand of the Inditex Group.
Inditex, which has a market capitalization of $113 billion, is one of the world's largest fashion retailers. It owns 7,405 stores and employs 1,62,450 people. The company has helped to reshape the fashion industry with its ability to quickly produce and turnaround cheaper fashion items.
Some of the world’s biggest brands source garments from Turkey. Among them are Primark, Inditex and H&M.
Texfusion held in London on October 31 to November 1 Nearly 165 exhibitors participated in the trade fair. Exhibitors reported fewer footfalls as market concerns continue to take their toll. The show’s modest footfall did not significantly affect all exhibitors, however, with both returning and new to the show manufacturers pleased with the turnout. There were new exhibitors from Brazil and more from Asia, particularly mainland China and Hong Kong.
The mood at the show was flatter than in previous editions. However, the exhibition’s international reach has helped boost its momentum. Future editions may have a dedicated space for Chinese exhibitors. For some buyers the show was a great source of inspiration. Indy Custom Apparel was looking for different ideas and materials to use for new products it’s trying to launch and saw a lot of interesting people. Indy Custom was particularly interested in sourcing from Pakistan and India, which this show caters to. Hong Kong-based manufacturer Novetex attended the show for the first time in a bid to break into the UK market and felt it was busier than other textile shows in Paris and Istanbul. The trade show’s visitors included Shop Direct, Topshop, Tesco, Next and Ted Baker.
Mini textile parks are being planned in Tamil Nadu. For each park, the state will provide 50 per cent of the cost to create roads, a sewage treatment plant and a captive power plant or Rs 2.5 crores as subsidy. Ten entrepreneurs could form a cluster and set up a mini-textile park on 10 acres after registering a special purpose vehicle. The entrepreneurs should buy the land on their own and establish a minimum of ten work sheds in the park to get the subsidy.
The total investment on buildings and machineries should be more than two times the amount spent for creating such facilities. The textile parks are expected to help improve the standards of living of handloom and power loom weavers in each district. Entrepreneurs should open a bank account in a nationalised bank in the name of the park. The subsidy will be released in three installments and the entrepreneurs should produce all necessary documents at the time of release of each installment.
The Director of Handloom and Textiles will monitor the progress of the work regularly. Discussions with entrepreneurs have already been initiated. Tamil Nadu accounts for nearly 30 per cent of the country’s handloom textiles production and 50 per cent of exports.
