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The textile sector in Pakistan is battling with problems such as severe competition from neighbors, high cost of doing business, shortage of raw materials, high tariffs and delays in sales tax refunds.
During the first ten months of the current financial, the trade deficit rose by 40 percent compared to the corresponding period of the last financial year. Textile exports for the same period have fallen by one per cent from the corresponding period of last year.
Because of all this, the textile industry in Pakistan is running below capacity.
Pakistan’s textile sector contributes 60 per cent of the country’s foreign exchange earnings and provides more than 38 per cent employment in the manufacturing sector.
The industry wants tax free imports of cotton and polyester staple fiber since the country has suffered huge losses due to failure of cotton crop for the last two consecutive years. So it feels that imposing customs duty and sales tax on imports of cotton would be suicidal.
It also wants zero rating of all inputs including packaging materials, spare parts and fuel and energy and that the turnover tax be reduced to 0.25 per cent from the existing one per cent.
The industry has also asked for long term loans and working capital at competitive rates.
Resil Chemicals has tied up with Acticell to develop environmentally-friendly, sustainable textiles.
Resil Chemicals is a textile finishing chemicals and auxiliary manufacturer. Acticell is an Austrian chemical research company.
The collaboration is focused on developing a range of green, sustainable chemical solutions for the denim industry.
This process of denim treatment helps to create a new look as well as replicate denim effects similar to that of hand sand and PP process on denim garments.
Resil Chemicals is a manufacturer of silicon and other finishings. It provides finishings to brands. Growth would be achieved by introducing new finishings and promoting new applications of similar chemicals in products like plastic water tanks and mattresses. The company also considers its own backward integration as an added advantage. At present about 15 to 20 per cent of its business comes from exports to countries in Asia-Pacific, Middle East, Europe and Africa.
Acticell develops chemical procedures for the innovative surface treatment of cellulosic material. It creates tailor-made solutions for manufacturers of denim fabrics and denim clothes. Its products can be used as an enzyme booster to decolorize jeans, as a bleaching agent to replace harmful bleaching technologies and as a dyeing pre-treatment in the textile industry. Products are 100 per cent safe, non-toxic, and environmental-friendly.
Levi Strauss is granting more than $350,000 to the inaugural class of LS Collaboratory fellows who are working to create a more sustainable apparel industry. The funding will go towards new approaches and innovations in the apparel supply chain. Projects include expanding a natural indigo dyeing facility, creating products that are less water-intensive and making wastewater treatment solutions more accessible to small artisan workshops.
The collaboratory is an annual fellowship program for entrepreneurs and social entrepreneurs who see design and sustainability as inextricably linked and are working to create a more sustainable apparel industry. Each year the program tackles different social and environmental sustainability challenges facing the industry, with this year's inaugural class focused on an area that is critically important to the future of the apparel industry and the planet.
Following the collaboratory workshop weekend held at Levi Strauss Eureka Innovation, fellows submitted project proposals for reducing water usage or improving water quality with the opportunity to receive funding from Levi Strauss. to implement their solutions. The ideas selected represent some of the boldest, leading-edge ideas from leaders who represent the future of the apparel industry.
Kevin McCracken, co-founder of Social Imprints mentioned that working with the company has changed and looks forward in educating and challenging the team to think in a more holistic way about our impact. With access to funding and mentorship from the most innovative team in the apparel industry, the company has an opportunity to make a real difference in what they do and produce products.
Kavita Parmar, founder and creative director at the IOU Project further added that to have the support of the entire team at an iconic brand and industry stalwart like Levi Strauss believe that the company can truly make a difference in the apparel industry.
This year's collaboratory fellows had the unique opportunity to work through ideas and challenges with Levi Strauss. Leaders and employee mentors along with sustainability and apparel industry experts as they developed concrete, tangible plans for reducing their organization's water footprint.
The company is getting the next generation of global leaders to share ideas, aspirations and innovations for achieving a common goal of accelerating the sustainability of the apparel industry,says Paul Dillinger, vice president and head of global product innovation, Levi Strauss
Laos’ trade value with China and the other nine Asean countries is increasing. Laos’ imports from China had a value of about 2.94 billion dollars in the four years from 2013-2016. The value has increased considerably each year and last year it stood at over 769.7 million dollars, up from about 581 million dollars in 2013.
There were about 110 types of import products with the main ones being electronic goods followed by vehicles, steel, paper and spare parts.
Laos’ exports to China were about 372.5 million dollars in 2013 and soared to over 1.13 billion dollars last year. The total value was around 3.25 billion dollars in the four years from 2013-2016 from 112 types of export products, mainly copper, crops, rubber, furniture and ores.
Laos also has made progress in its trade value with the other nine Asean countries.
The value of Laos’ exports was 2.65 billion dollars last year, up from about two billion dollars in 2013. The four years from 2013-2016 saw a total value of more than 9.11 billion dollars.
In these four years, Laos exported the highest value of goods to Thailand, followed by Vietnam and Cambodia. The main exports are electricity, copper, spare parts, crops, garments, drinks, rubber, livestock, sugar, furniture and ores.
In terms of imports to Laos from the nine Asean countries, the bulk of the imports came from Thailand, followed by Vietnam and Indonesia.
The main imported products were electronic goods, fuel, vehicles, drinks, spare parts, steel, cotton, plastics and food.
J Crew is slashing prices in an attempt to tackle slumping sales and waning customer interest. Following a six per cent sales slump in 2016, the company is investing in retuning J Crew’s identity as an affordable and accessible brand for everybody — not just the fashion-forward crowd.
J Crew is now trying to compete without marking everything down by 40 per cent every other week. It has created an analytics team to research and optimize the cost of each item. It also plans to switch up its supply chain beyond China so that clothing will arrive in stores faster.
America’s favorite basics store is known for its lace jogging pants, skirts, tank tops, tees, dresses, fine Italian cashmere sweaters, sequin and lace-detailed skirts and playful jewelry.
J Crew has been an institution since 1983. It is renowned for its fresh, luxurious take on everyday staples.
Pricing at J Crew has become a major grievance for a brand that used to be known for selling trendy, affordable basics.
The brand was always interested in quality, often focusing and investing on small details. But then it came into competition with a new class of trendy fast fashion retailers who operate at lightning speed. Also, design details such as nicer buttons and richer colors are less apparent on the internet.
H&M has initiated several steps to improve conditions of workers at its suppliers. One of its major goals has been to ensure that factory employees are represented by trade unions to negotiate collectively.
For this it is training factories on workplace cooperation, negotiation skills, collective bargaining and labor law.
The group facilitates dialogue between employers and employees at the factories and in the labor market in countries where its products are made.
Almost 300 factories are enrolled in the workplace dialogue and industrial relations programs while more than 3, 70,000 factory workers are directly covered by democratically elected worker representation through its programs run in Bangladesh, Cambodia, China, Ethiopia and India.
The goal is to have democratically elected worker representatives and improved wage management systems in place at its supplier factories by 2018.
The group is also trying to make sure that wage issues are negotiated and that workers have knowledge about their wages, benefits and rights.
Such systems are being implemented at an increasing number of factories - 140 until the end of 2016, and an additional 96 during 2017.
Factories in Bangladesh, Cambodia, Indonesia, India, China, Turkey and Myanmar are participating in this program.
In a bid to herald change in the entire fashion industry, the group is focusing on collaboration projects with partners to train management and workers on workplace cooperation and dispute resolution.
Germany is keen on India’s FTA with the European Union. Talks on the free trade pact started in 2007 but have been marred by flip-flops and disagreements. The last round of talks was held in 2013 and the discussions have remained deadlocked on issues including tariffs on automobiles and wines and spirits.
India has decided to unilaterally terminate all existing investment treaties with EU partner countries in place of a model Bilateral Investment Treaty. Germany wishes India had not done this.
Germany feels India and the EU should not focus on issues like tariffs and import duties but instead on the larger issues involved.
India and Germany are set to ink a series of agreements to further deepen ties in key areas of trade, investment and energy, besides exploring ways to step up defense cooperation.
Both India and the EU have reservations on China’s decision to put billions of dollars in infrastructure projects including railways, ports and power grids across Asia, Africa and Europe. A strand of the China-Pakistan-Economic Corridor cuts through Gilgit and Baltistan in Kashmir, which India claims are illegally held by Pakistan.
Germany is ready to conclude a government-to-government agreement with India in defense procurement and feels India is a strategic partner for Germany and provides stability in Asia.
Cotton made in Africa (CmiA) certified cotton is processed all over the world in all major textile production countries. The aim of the Cotton made in Africa Supply Chain Workshop, held in Coimbatore/India mid-May, was to further establish CmiA in India where demand is also increasing. There were 80 experts who attended the meeting, representing actors along the textile value chain.
Christian Barthel, Director Supply Chain Management at Cotton made in Africa, presented examples of best practice, demonstrating how Cotton made in Africa can further be integrated in the textile supply chains in India.
One of the CmiA partners is the cotton trader Stadtlander stated that as an internationally oriented company in the cotton trade, a great importance has been attached to reliability and dynamism. Cotton made in Africa also work in accordance to these values says Maximilian Daebel of Otto Stadtlander during the workshop, According to Lorenz Reinhart, working for the swiss-based, international cotton trader Reinhart, CmiA is a key component of the strategy of the company.
Through its worldwide network along the textile value chain, Cotton made in Africa ensures that CmiA cotton can be purchased cost-neutral, all over the world and at any time. This enables companies on the one hand to combine their sustainability goals with their procurement targets in the best possible way. CmiA thereby maximizes its support for smallholders in Africa, helping them to improve their living and working conditions, and protects the natural environment. A global comparison shows that CmiA cotton saves over 500 liters of water on every T-shirt. in 2016 around 50 million textiles bearing the Cotton made in Africa label were brought onto the market. At present 30 companies market Cotton made in Africa products.
Talking about the Cotton made in Africa,it was initiated in 2005 by Hamburg. Michael Otto as an independent initiative. Today it is the largest initiative for sustainable cotton in Africa and links 695,000 African smallholders and around 30 textile companies with each other along the worldwide supply chain. The products can be identified by the Cotton made in Africa label.
Chinese textile and clothing exports fell Chinese textile and clothing exports fell by 7.4 per cent in 2016, with far reaching effects, according to the latest issue of Textile Outlook. As a result, China lost some of its share of world markets. The fall in Chinese textile and clothing exports extended to yarns, fabrics, knitted clothing and woven clothing.
Rising labour costs and production costs in China are mainly to blame for the fall in exports as production shifts increasingly from China to lower cost countries such as Bangladesh, Cambodia, Myanmar and Vietnam. The impact of falling exports has been felt in many sectors of the Chinese textile and clothing industry. It has also been felt in a number of other Asian countries especially those supplying products of higher added value.
Supplies of textiles and clothing from Japan, fell by 14.8 per cent in 2016 to their lowest level in over a decade. Supplies from Hong Kong declined by 16.9per cent while those from South Korea fell by 10.1per cent and supplies from Taiwan were 9.9per cent lower. On the other hand, China continues to dominate its major markets and there are no signs that such dominance will come to an end any time soon. In the US market.
Furthermore, China stands to make increases if the USA continues to adopt a more isolationist and protectionist stance under President Trump. In particular, the decision of the USA to withdraw from the Trans-Pacific Partnership (TPP) free trade agreement may enable China to fill the vacuum and take a more prominent role in international trade. Some authorities believe that China could even replace the USA as the pre-eminent player in global economic affairs.
China is in the process of negotiating a new economic trade area called the Regional Comprehensive Economic Partnership (RCEP). If this comes to fruition, it will cover all ten nations which are members of Asean (Association of Southeast Asian Nations) including Brunei, Cambodia, Indonesia etc.
Chinese textile and clothing producers are also expected to benefit from strong growth in demand among domestic consumers in the next decade. Some projections estimate that clothing sales in China could climb to as much as US$300 billion by 2019.
"Considered an alternative to Indian garment industry, Sri Lankan apparel industry has seen tough times of late. However, it still accounts for over 46 per cent of Sri Lanka’s total exports and generates the highest industrial employment opportunities to over 300,000 directly and 600,000 indirectly, which includes a significant number of women. Gauging the importance of the industry, the government has developed research, innovation and design. The sector also maintains high ethical standards and is highly praised for its compliance and labour rights practicing than any other competitive countries."
Considered an alternative to Indian garment industry, Sri Lankan apparel industry has seen tough times of late. However, it still accounts for over 46 per cent of Sri Lanka’s total exports and generates the highest industrial employment opportunities to over 300,000 directly and 600,000 indirectly, which includes a significant number of women. Gauging the importance of the industry, the government has developed research, innovation and design. The sector also maintains high ethical standards and is highly praised for its compliance and labour rights practicing than any other competitive countries. However, on August 15, 2010, the EU suspended Sri Lanka’s GSP+ status, which impacted the industries growth dynamics.
Vision 2020 the way forward
The Sri Lankan government has set out a vision to position Sri Lanka among the top 10 high quality apparel -manufacturing countries in the world by 2020 turning in $8.5 billion in revenue. The country is working with leading international brands such as Victoria’s Secret, Gap, Liz Claiborne, Next Jones New York, Nike, Ann Taylor, Tommy Hilfiger, Marks & Spencer. However, Sri Lanka’s textile and clothing industry’s export earnings of the first two months of running year recorded decline despite the full order books of large-scale manufacturers. Sri Lanka’s exports statistics of February 2017 show a declined by 2.7 per cent year-on-year (YoY) to $868 million after falling 1.1 per cent in January 2017, extending the year-to-date decline to 3.2 per cent YoY to $1.73 billion. On the other hand, according to Sri Lanka Apparel Export Association, total apparel export has decreased $102.1 million in 2017 January-February over the same time of previous year.
US is biggest destination for Sri Lankan textile and apparel products. Apparel categories being exported are: sportswear, lingerie, loungewear, bridal wear, workwear, swimwear and children’s wear. UN Comtrade data shows, Sri Lanka is the second largest brassieres supplier to both the EU and the US, accounting for about 10 per cent of the supply in each of these markets. In addition, it is also the third largest swimwear supplier to the US, with 8 per cent market share, trailing only China and Indonesia. Apparel export to the US declined in February 2017 compared to previous year. And as Sri Lanka Apparel Exporters Association (SLAEA) Chairman Yohan Lawrence says, as an industry, its apparel industry stakeholders should look at markets other than US and the European Union, without losing the foothold on them.
As per Euromonitor, the country’s industrial production of textiles amounted to only $0.85 billion, while it imported more than $2.2 billion of such items in 2014. UN Comtrade data highlights that China and India are the Sri Lanka’s major sources of textiles, accounting for 35.1 per cent and 28.5 per cent respectively.
If the country aims to achieve the slated target, then raw materials imports for apparel production, should be reduced gradually by enhancing and encouraging foreign investments. Labour shortage problem can also be removed by bringing more women into the workforce. And lastly, the country needs to diversify its products and look for new markets to expand exports.
