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Textile Asia was held in Pakistan from September 16 to 18, 2017. The textile machinery fair aimed to increase productivity and enhance competitiveness. Textile Asia is a landmark event, which has provided an effective podium for joint ventures and collaborations among the local textile industry and international entrepreneurs, more than 50,000 trade and corporate visitors visited the fair during the three days, besides more than 600 foreign delegates.
Exhibiting countries included: China, France, Germany, India, Italy, Korea, Taiwan, Turkey, Austria, Czech Republic, UK, and USA etc. Textile Asia is jointly organized by the Pakistan Readymade Garments Manufacturers and Exporters Association and E-Commerce Gateway Pakistan.
Pakistan is taking several concrete steps to increase the volume of overall exports. Changes will be made to the scope and coverage of the export package. Pakistan’s apparel exports grew by 5.55 per cent in 2016-17.
Value-added textile is being considered as a key priority area. Efforts are being made to set the right policies and incentives that encourage private sector investment in value addition. The apparel segment happens to be the highest value-added link in the entire textile value chain. Pakistani products do not get a proper market share due to high input costs.
The yarn sector, affected by high cotton prices in the past six months, might become normal within a fortnight. Demand for yarn in markets like Bhiwandi, Ichalkaranji and Kolkata has picked up with the requirement for fabric going up in view of the festival season. In addition, the unsold yarn stock with spinning mills is also low now. Because of the stable and lower cotton prices, India would have a competitive advantage in the international market also.
India is likely to get a record crop with a 15 per cent increase in area and a favorable monsoon and weather. Cotton prices would also be comparatively lower throughout the season and therefore the domestic demand is expected to pick up.
The Indian textile and clothing industry had been passing through continuous recession during the last three years mainly due to poor offtake in the global market. Competing nations like Vietnam and Bangladesh have competitive advantages through free trade agreements and preferential trade agreements. In addition high tariff rates have been imposed on Indian textile and clothing products in the the European Union, the US, Canada and China. The global cotton position is expected to be very comfortable during 2017-18 due to an increase in area under cultivation by around 11 per cent.
With GSP Plus, Sri Lanka hopes for a further $400 million in revenues from apparel exports to the European Union. The country has regained the GSP Plus that was lost in 2010. Last yearm Lanka’s apparel exports totaled $4.8 billion and in the first six months of this year they stood at $2.7 billion. Sri Lanka's export basket has not changed much since the 1990s.
If Sri Lanka is to substantially increase export revenues, diversifying to new sectors is the key to success. Similarly diversification of markets is also a priority for Sri Lanka. While the UK is currently an important market for Sri Lanka, with Brexit becoming a reality, Sri Lanka will immensely benefit if it also focuses attention on accessing non-traditional markets among the EU countries. This will not only cushion the potential negative impact of Brexit on Sri Lanka but will also help contribute towards the country’s target of doubling its export revenues.
The EU aims to support Sri Lanka’s economic growth by launching a series of initiatives which includes support to design and implementing a coherent trade strategy for export competitiveness, support for trade policy development and regulatory reforms, enhancement of Sri Lanka's WTO trade negotiations capacity, support Sri Lanka's regional integration process and help Sri Lanka maximize the use of the EU GSP Plus scheme.
Street Legal Clothing, based in Canada, will start sourcing garments from Tirupur. But this will be done only if manufacturers based there are able to match the prices offered by the Bangladesh factories. Nevertheless Tirupur remains a strategic sourcing hub for the company.
The company works with three vendors from India. Another plan is to import cotton and polyester cotton blend fabrics from India and get the cutting and stitching done in Bangladesh. Fabrics are imported from China as well. Street Legal, an import house, sources uniforms, work wear, sportswear and hunting jackets from Bangladesh, India, China and Cambodia for the Canada market.
Price is the key point for the company. It is trying to work with vertical units so that the profit does not split and it gets the advantage of complete in-house production while getting benefits on the price issue. If the price is right, Street Legal sources millions of pieces. Otherwise it has to make do with only 2,000 to 3,000 pieces a style. In terms of basic products like men’s shirts and tees, it does 1,00,000 pieces. With a business of $8 billion, the two decade old company has an office in New Delhi.
Retailers and brands are choosing virtual warehousing coupled with a strong omni-channel supply chain system to meet the challenge of a constantly evolving product demand. Virtual warehousing allows inventory to be physically housed anywhere – including a distribution center, a temporary facility, or the back room of a store – and distributed on an as needed basis.
With virtual warehousing, a brand’s supply chains work as a network, and this network is then considered for fulfillment. So when an order arrives, the network is consulted, irrespective of where the product is stored, to identify the best possible way to fulfill the order as quickly as possible.
A supply chain is sporadic and can fluctuate at any given time for any given reason. Consumers are fair weather, fickle and their needs can change instantly. What this has meant for suppliers is that some inventory may be critical and in high demand in one geographic area in the supply chain but too expensive and slow moving for stocking in another location. The suppliers that are winning are those that have decentralized their supply chain to meet consumer demand.
With the right omni-channel planning and Enterprise Resource Planning integration, big retailers can segregate inventory, provide transparent financial ownership and tracking, secure inventory availability per channel and even share warehouse shelf space.
Asia Pacific is the largest and the fastest growing market for polyester fibers. China and India are the key markets in the Asia Pacific. Rising demand for products that use polyester fibers, such as industrial and consumer textiles, home furnishings, non-woven fabrics, apparels, carpets and rugs etc., will speed up polyester fiber sales in the region from 2017 to 2035.
Polyester fibers are long chain synthetic polymers that are formed through chemical reactions between an alcohol and an acid. Polyester fibers are majorly composed of ethylene glycol and terepthalic acid. Polyester yarns and fabrics made from this type of polyester are very elastic, strong and have high wrinkle and abrasion resistance.
Polyester fibers are extremely strong, resistant to most chemicals and shrinking, stretching, abrasion, wrinkle and mildew resistant. They are hydrophobic in nature and dry quickly and withstand wear and tear longer than cotton and retain their shape in extreme climatic conditions and are thus preferred for manufacturing outdoor clothing.
Polyester fabrics are used to make a wide variety of products – this includes jackets, shirts, pants, blankets, bed sheets, cushioning and insulating material in pillows, upholstery padding, comforters and upholstered furniture. Due to its tenacity and high strength, polyester is also used to make ropes and yarns that are further used in safety belts, conveyor belts, tapes, tire reinforcements and in plastic reinforcements.
As per Fashion Transparency Index 2017 only 32 per cent of the top 100 global fashion brands are somewhat transparent about their value chains, publishing complete supplier lists for their customers to make informed purchasing decisions. The Fashion Transparency Index ranks clothing brands every year according to how much they disclose about their suppliers, supply chain policies and practices, and social and environmental impact.
In 2016 only 12.5 per cent of the 40 companies surveyed by Fashion Revolution, a not-for-profit ethical initiative catalysed by the Rana Plaza disaster, were publishing supplier lists. This year, Adidas and Reebok came out on top with 121.5 out of 250 points, closely followed by Marks & Spencer and H&M.
By 100 per cent transparency, Fashion Revolution means brands being aware of exactly who make their products -- from who stitched them right through to who dyed the fabric and who farmed the cotton. And crucially, it requires brands to share this information publicly. Three brands, including luxury fashion brand Dior, scored zero as they disclose no information at all. In light of this, the seventh edition of Mostafiz Uddin's pet project, Bangladesh Denim Expo, due to be held on November 8-9 in Dhaka, will be set around the theme ‘transparency’.
The exhibition will highlight the need for transparency within the entire denim development chain, showing the progresses made by Bangladesh denim factories towards achieving greater transparency. A total of 61 exhibitors from 11 countries will showcase denim products at the expo to be held at the International Convention City Bashundhara. Of the exhibitors, 44 would be foreign and 17 local.
There would be at least eight seminars and sessions for the CEOs, merchandisers and managers of globally-renowned fashion brands to speak on the matter of transparency in the apparel supply chain.
"What gives luxury designers such as Schiaparelli, Ralph & Russo, Chanel, Dries Van Noten, Stella McCartney, Guo Pei and Ermenegildo Zegna, an edge over others? It’s the unique textile that brings life to the entire ensemble and couture. These designers and couturiers are increasingly focusing on creating unique textiles to highlight craftsmanship, inspire designs and promote sustainability. For haute couturiers, exclusive textiles are as crucial as designs. Some houses will go as far as acquiring heritage ateliers and fabric mills to ensure the uniqueness of their creations."
What gives luxury designers such as Schiaparelli, Ralph & Russo, Chanel, Dries Van Noten, Stella McCartney, Guo Pei and Ermenegildo Zegna, an edge over others? It’s the unique textile that brings life to the entire ensemble and couture. These designers and couturiers are increasingly focusing on creating unique textiles to highlight craftsmanship, inspire designs and promote sustainability. For haute couturiers, exclusive textiles are as crucial as designs. Some houses will go as far as acquiring heritage ateliers and fabric mills to ensure the uniqueness of their creations.
Schiaparelli’s Crystal dress, shown at Paris Haute Couture Week in July, featured 3D crystal embroideries on finecrystal mesh, which is one of Swarovski’s latest innovations. With the multicoloured crystals, the iridescent dress reflects light from more than 4.7 million facets. Bertrand Guyon, Creative Director, Schiaparelli, points out there are only crystals on the dress, nothing else. The crystals are specially made for Schiaparelli – the purple tinted with lilac and the iridescent pink.
Chanel is another pioneer in the field. It has 10 prestigious artisanal ateliers under one roof – including Lesage and Montex, who are known for their embroidery work, Guillet, which specialises in creating delicate fabric flowers and plants, as well as Lognon, the pleater. Company’s official say, the purpose for the investment in these artisan ateliers is to preserve and nurture the valuable heritage and a vital part of its luxury style.
Ralph & Russo – the pride of the wearer
British haute couture house Ralph & Russo creates every single piece of textile from scratch with suppliers from around the world, from Switzerland to Italy and France. Tamara Ralph, Creative Director of Ralph & Russo, says textiles are crucial because, for their clients, it’s not just about the exclusivity of a dress, but also exclusivity of the different techniques that go into the designs. This is what makes haute couture, what it is. For such designers, in addition to exclusivity, technical excellence is also important. Ralph cites the ornate bridal gown at the finale of its 2017 couture show, which featured embroideries that took artisans 6,000 hours to complete, and a delicate ball gown featuring hand-cut petals, each shaped with curling irons for a more natural and realistic look. It’s hard to say whether design or textile comes first as it’s a marriage of the two observes Ralph who works closely with a team of artisans and embroiders to develop textile swatches and tweak the elements as they go forward.
Subtly luxurious textiles and fabrics are more common in men’s suiting as well. High-end luxury menswear brands such as Ermenegildo Zegna and Cerruti have mills that make exclusive fabrics in-house and consistently invest in R&D of new textiles. Zegna’s Wool Mill, established in 1910, is known for its high quality, ‘satin-like’ wool, cashmere and noble fibres.
Sustainability drive
Ready-to-wear houses, such as Dries Van Noten and Stella McCartney, are collaborating with textile innovators for creativity and sustainable causes. Dries Van Noten is known for developing his own textiles. Van Noten, known for his unique prints and patterns, has long been working with artisans and embroiderers in India – some for 20 years. He appreciates Indian artisans’ skill and always gives them enough work so they can continue their workshops instead of joining big commercial factories in the city.
Van Noten the vegan designer works extensively with textile innovators for alternatives to animal products such as leather, silk and suede. One of her recent collaborations was with Bolt Threads – a biotechnology company known for sustainable materials such as a yeast-based vegan silk. Stella McCartney’s eco-friendly fashion is fuelled by her innovative and tenacious spirit.
Nepal Yarn and Textile Expo is being held September 15 to 19, 2017. The expo will showcase a range of textile products like cloths, knitted and hosiery products including machinery. There are altogether 55 stalls displaying locally produced textiles and garments.
Nepal’s textile sector, which is mostly cotton and synthetic based, is passing through a tough phase. A large number of textile factories in Nepal have either closed down or are on the verge of closure due to labor unrest, high taxes, unclear government policies etc.
Nepal charges customs and VAT duties on imports of polyester fabric from India in excess of 32 per cent. Against this, Nepal has provided tax relief to fabrics and garments exported by China which attract only 17 per cent duty. Nepal is strong consumer of polyester fabric. The textile sector in Nepal includes manufacturing of yarn, Jute, Woolen carpets, Garments, Pashmina and Cotton terry towels. These are also major exports from the country. Textile and yarn are more important for the local domestic market.
Jute farming and manufacturing used to be the main cash crop and exportable industrial product till the early 1970s but economic viability could not be maintained in the face of cheap substitutes like plastic. Jute now contributes only marginally to the economy.
Gujarat is witnessing a sharp decline in forward contract of cotton for export in the new season. This is because exporters have had bad experiences in the past few years and faced losses due to advance commitment of cotton buying. Gujarat, a leading cotton producing state has sown cotton on 2.63 million hectares as on September 4 as against 2.38 million hectares in the corresponding period of 2016. Gujarat accounts for a 25 to 30 per cent share in India’s cotton exports.
Usually a month before the new season, exporters commit advance orders with ginners and cotton suppliers for exports in November and December. However, in view of unfavorable experiences in recent years, exporters are not taking risks in forward contracts resulting in virtually no forward contracts this year.
Good monsoon has increased cotton sowing by almost 18 per cent nationally and 10.50 per cent in Gujarat. Higher sowing has brightened the expectation of better production. India will remain the world’s largest cotton producer in 2017-18 with a four per cent increase in output. The country has exported six million bales of cotton so far during cotton year 2016-17. Cotton production in the US is forecast to increase by 20 per cent.
