FW
In a big move of sorts, China is all set to help Bangladesh improve issues of trade and investment environment and address the concerns of Chinese corporations operating in the country in the meeting of Bangladesh and China. Both sides are holding the 14th session of the Bangladesh-China Joint Commission on Economic and Trade Co-operation (JEC) with focus on specific issues relating to bilateral trade, economic assistance, investment and mutual co-operation.
As the second biggest global economy, China is keen to share its experience and advanced technology with Bangladesh, to provide finance, technology and training personnel to Bangladesh without reservation to expedite industrialisation. The Chinese side will raise seven specific issues including negotiations on China-Bangladesh Free Trade Agreement, strengthening co-operation on major projects.
They country will also discuss ways to strengthen Chinese assistance to Bangladesh, its future expansion, promotion of China-aided projects and co-operation on human resources. Bangladesh and China will discuss ways to have further concrete measures to bolster bilateral trade, widen economic co-operation and boost investment flow, eying mutual benefits by reducing the bilateral trade imbalance. China will also discuss Chinese Economic and Industrial Zone in Chittagong and Garment Industrial Park, the officials added. Apart from evaluating bilateral economic and trade relations, the Chinese side will also discuss economic development of China. The Bangladesh side will discuss ways to close the trade gap between the two countries and will highlight investment opportunities in the country.
The China National Textile and Apparel Council will hold an organic textiles roundtable on September 19. The event will look at the scale of organic textile industry in China and focus on efforts to harmonise Chinese national standards on organic textiles.
With continuous improvement of living standards, Chinese consumers are increasingly inclined to seek pollution-free, pure and natural textile products as well as for skin care and health care. Organic textiles meet this need as well as helping to reduce environmental pollution. China’s organic standards and relevant laws and regulations, although similar to other international standards in framework and content, are more stringent in terms of supervision, management and certification procedures.
There is a continued upward trend in demand for organic textiles in China. China's organic fiber - mainly cotton – comes mostly from the northwesterly Xinjiang region, with an output of approximately 1,570 tons per year, accounting for 50 per cent of the total national output. In terms of global organic cotton consumption, 60 to 70 per cent of the world’s organic cotton is used in China. Factories in Xinjiang are working with international organic organisations on organic cotton projects.
Since the introduction of new environmental regulations in the last two years, a quarter of the textile dyeing and finishing capacity in Shaoxing City have shut down. This information has been revealed in a recent research from China. The local government of Shaoxing has been particularly proactive in enforcing stricter national government regulations aimed at curtailing pollution from the country's textile industry. Incidentally, the city accounts for around a third of China's dyeing production capacity.
Research claims 64 dyeing and finishing units have been closed and a further 100 ordered to make technological upgrades as a prerequisite of remaining operational. The research conducted by China Water Risk offers a clear proof that China is serious about tackling textile industry pollution and will only tolerate cleaner, non-polluting operations in the future. China Water Risk also claims that with the spotlight on pollution, brand reputational risk is high. It adds that the shift in Chinese consumer attitudes towards clothes that do not contaminate their waters means that the largest consumer market in the world may have a different idea of the future of fashion.
It also claims that textile mills need to comply with new industrial standards or face shutdown within the next three years. For records sake 1.77 million inspections were conducted across the country that resulted in 191,000 companies being investigated. Of these around 20,000 were shut down, 34,000 had their operations closed while 89,000 had to conduct rectification actions.
Cambodia is hosting a garment machinery exhibition from August 26 to 29, 2016. This will have exhibitors from Austria, Cambodia, China, Germany, Hong Kong, India, Italy, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, and Vietnam. They will showcase a wide variety of cutting-edge machinery equipment, parts and components, and technologies, including printing machinery and ironing presses, sewing needles, knitting machine needles and felting needles etc.
Participants can find partners to network with, tap more business opportunities, and build long-term business partnerships. Inspired by Cambodia’s strong economic growth momentum, globally renowned industrial leaders are participating in the event to explore better opportunities in the Cambodian market. A business matching service will be provided for pre-registered buyers. By knowing buyers’ needs and preferences in advance, business matching specialists will be able to help them single out potential suppliers.
After decades of steady economic development, Cambodia has successfully drawn attention from foreign entrepreneurs. Nevertheless, the country still has some challenges to tackle such as low productivity, rising labor costs and a manufacturing coverage mostly confined to garment and food processing. In this regard, upgrading machinery equipment is among the solutions to boosting overall production capacity.
Denim Project is a brand that produces garments from 98 per cent denim waste. The Denim Project aims to be the most resource neutral denim label in the world. Fabrics that have been discarded by expensive brands are sorted by color, re-fibered, and spun into yarns. Then Denim Project adds two per cent stretch to the 98 per cent wasted fabric and designs a brand new line. Not only does the company focus on saving the earth's natural resources, it provides stylish denim at a fair price. The goal is to dress the world while doing good.
Production of textile materials such as cotton creates numerous ecological effects that are detrimental to land and water supply, especially when pesticides are applied. An overwhelming amount of waste is created by the fashion industry as it consumes precious resources and generates pollution.
Up to 15 per cent of fabric intended for clothing is wasted during the cutting process. The waste can provide every person on the planet three new T-shirts a year. This waste also contains enough water that could have supplied 25 million people annually, which equates to 38.5 billion liters of fresh water.
Denim Project has launched a fund-raising campaign. Funds received will be used to purchase machinery, source wasted fabric for production and create the base materials.
Worried over a non-stop fall in exports of woollen products, woollen manufacturers, are exploring options to reduce its dependency on the US and European markets that are facing a slowdown. The manufacturers are planning to increase their exports to Kazakhstan, Australia, Germany and China.
Besides their own concerted efforts, the exporters have sought government’s intervention. They believe the government’s support was needed in increasing duty drawback rates, speedy release of drawback, abolition of import duty on raw wool and textile machinery and consideration of special package to boost exports.
During the first quarter of the current fiscal, woollen exports have shown a decline of about 17 per cent in dollar terms. According to statistics, the total value of exports during April-June this year was $103 million (Rs 685 crores) as compared to $123 million (Rs 780 crores) in the corresponding period last year. Further, the total value of exports in 2015-16 was $462 million (Rs 3,013 crore) as compared to $510 million (Rs 3,112 crore) last year. The industry witnessed negative growth of 9 per cent in dollar terms.
Currently, import duty on wool is 5 per cent and the industry imports raw wool from the UK, Australia, China and Japan etc. Prices of wool have risen by 10-15 per cent in the last one year. The value of imports of raw wool was $69 million during April-June this year as compared to $76 million in April-June, 2015.
In 2015-16, India imported wool worth $308 million as compared to $349 million in 2014-15. The decline in wool import was mainly attributed to the decline in exports owing to weak global sentiments.
After accusing Welspun India of giving duplicate Egyptian cotton sheets, Target Corp has decided to terminate all business transactions with the supplier known as one of the world's biggest textile manufacturers. The retailer said it discovered last month that 750,000 sheets and pillowcases labeled Egyptian cotton were actually made with another type of cotton. The retailer immediately pulled out the items from its stores and started notifying customers that they will give them a refund on the products that were bought between August 2014 and July 2016 and sold for as much as $75.
Target has been the second-biggest customer of Mumbai-based Welspun's after Bed Bath & Beyond Inc, according to a Bloomberg data. The company makes towels, sheets, rugs and carpets for 18 of the top 30 global retailers. Its other major clients include Walmart Stores Inc, JC Penney Co and Macy's Inc. It also manufactures towels for the Wimbledon tennis championships and the Rugby World Cup.
Target has said that it was phasing out all its products from Welspun which it has used as a supplier for more than a decade. Termination of the process will take time since some merchandise has already been shipped or paid for. The withdrawal only includes two lines of Egyptian cotton bedding, and not all of its Egyptian cotton sheets are affected.
Swedish brand Hennes & Mauritz saw slightly bigger than expected July sales. There’s optimism in the second half of the year. Local currency sales at the world’s second-biggest fashion retailer rose 10 per cent in the month against a mean forecast for a nine per cent rise. July marked the tenth month of slower growth than a year earlier amid tough conditions for global clothing retail, tougher competition in H&M’s budget segment and several months of adverse weather conditions in some of H&M’s key markets.
H&M’s negative sales trend is however, widely expected to turn around from August as year-ago comparisons get easier. In August 2015 growth was a mere one per cent. July sales were probably supported by discounting and estimated like-for-like sales at the fast-expanding firm were unchanged from a year ago.
H&M has seen profits shrink for three consecutive quarters, squeezed not only by the usually big markdowns, but also by large long-term investments in online technology and new brands and by high purchasing costs in Asia due to a stronger dollar. H&M’s shares rose 2.7 per cent in early trade, trimming the year-to-date decline to less than 8 per cent.
Gap has forecast a full-year profit below earlier estimates. The apparel and accessories retailer is struggling to attract shoppers to its Banana Republic stores. Gap has been trying to reduce promotions and sell more merchandise at full price. However, shoppers are increasingly looking for deeper discounts. Chic and trendy clothes at lower prices from off-price, online and fast-fashion retailers such as H&M, Forever 21 and Inditex’s Zara are also luring shoppers away. San Francisco-based Gap has been controlling inventories and trying to replicate the success of its low-end Old Navy brand at its Gap and Banana Republic chains.
The company’s net income fell to $125 million in the second quarter ended July 30, from $219 million a year earlier. Excluding items, the company earned 60 cents per share. Net sales were unchanged from the $3.85 billion the company provided on August 8. Gap also owns the Athleta and Intermix clothing brands.
The brand opened in the United States in 1969. It came to India in 2015 and has stores in Mumbai, Delhi and Bangalore. Gap stores are a minimum of 4000 sq ft. Arvind Lifestyle Brands is the Indian franchisee partner of Gap.
With the closing down of the development of Karachi Textile City, hopes attached with the project of achieving exports worth $2 billion and generation of 80,000 jobs have been belied. The proposal of developing Karachi Textile City has been cancelled, as a special committee constituted earlier, headed by the finance secretary and comprised secretaries of the ministries of textile and planning, development and reform, proposed to the prime minister to shut the project and return the acquired land to the Port Qasim Authority.
It is learnt that absence of electricity and gas in the proposed textile city was the prime reason behind the abrupt closure of the project. The committee recommended that after handing over the land to the Port Qasim Authority, outstanding loans against the company must also be shifted to the authority.
