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Vietnam's decision to move away from ratifying the Trans-Pacific Partnership is a blow to the beleaguered trade pact and a setback for American economic ambitions in Asia. The 12-nation TPP is aimed at liberalizing trade and investment in the Asia-Pacific region. Earlier, Vietnam had been hoping that its participation in the deal would lead to an increase in exports.
Even in the US, which initiated negotiations for the pact, approval of the TPP is yet to be completed. This has prompted Vietnam to move slowly. In fact, approval of the TPP is not on the agenda for the current legislative session which runs through late November. This makes it clear that the country will not ratify the pact this year. Vietnam’s decision has had its fallout as well. The Philippines, considering joining the TPP after Vietnam, has changed its decision in recent weeks. This move is seen as moving away from Washington and getting closer to Beijing. With ratification of the TPP looking more likely to stall in a number of countries, the influence of the US in Asia appears to be rapidly weakening.
Responding to the needs of the technical textiles and fibrous materials market in Russia, Messe Frankfurt RUS will turn Techtextil Russia into an annual event, to be held in Moscow for the ninth time from February 20 to 22, next year.
Within the ‘Russian Textile Week’ (February 20 to 23, 2017), five top events will take place at the Expocentre fairground simultaneously. They are: Techtextil Russia – International Trade Fair for Technical Textiles, Nonwovens and Protective Clothing, organized by Messe Frankfurt RUS, Inlegmash - International exhibition for textile manufacturing and processing, CJF – Child and Junior Fashion Spring, Children's fashion and spring and Interfabric International exhibition of fabric and textile materials organized by Expocentre.
The central event will be the IVth international forum of light industry ‘Legpromforum-2017’ in which current issues, challenges and prospects for the industry in general and its` most dynamic segments will be discussed on the highest governmental level. The production and effective use of various types of technical textiles, scientific, and economic aspects of the process will be discussed at the Techtextil Russia Symposium.
Uniting leading industry events at one venue proved its effectiveness last year. Industry professionals positively assessed the joint exhibitions of Techtextil Russia and Inlegmash in the gone by years. The format of the Russian Textile Week allows visitors to attend one site and at the same time discuss a wide range of topics and to identify necessary solutions. The organizers of the Russian Textile Week are IEC Expocentre and the Russian Union of Entrepreneurs of Textile and Light Industry, the official partner is Messe Frankfurt RUS. Interestingly, CPM Moscow, the largest fashion fair in Eastern Europe will be held in parallel to Russian Textile Week.
This year, 120 companies from 15 countries presented their equipment, technologies and products at Techtextil Russia. Local technical textiles and non-wovens market was represented by key players. National Pavilions of Belgium, China, Italy and Germany highlighted the Techtextil Russia exposition.
Despite the 2013’s Rana Plaza factory collapse in Bangladesh, most consumers still turn a blind eye to the high cost that comes with cheap clothes. Despite best efforts by human rights organizations and environmental groups to change the status quo, a new research by McKinsey suggests that the worst is yet to come. This clearly shows that modern society has become increasingly desensitized to disaster.
The report found that while apparel has seen strong sales growth around the world, a burgeoning middle class in emerging markets has led to a spike in those countries. As a matter of fact, apparel sales in Brazil, China, India, Mexico and Russia are growing eight times faster than in Canada, Germany, the United Kingdom and the United States.
So if consumer spending increases particularly in developing countries and apparel manufacturers churn out cheaper, faster fashion without adopting a more ecologically-sound production process, the garment industry’s environmental footprint would grow bigger than ever, foresees McKinsey. At the rate things are moving, if 80 per cent of the population of emerging economies were to achieve the same clothing-consumption levels as the Western world, by 2025, carbon dioxide emissions would increase by 77 per cent and water consumption would surge by 20 per cent. And that’s before consumers’ post-purchase choices ever come into play.
Rooting out these problems will require businesses to measure sustainability performance across the entire supply chain, set goals for improvements, help suppliers to reduce their impact and hold suppliers accountable if they don’t. As per the report, 22 apparel brands have signed on to the Zero Discharge of Hazardous Chemicals (ZDHC) while more than 50 retailers and nearly 700 suppliers are involved in the Better Cotton Initiative (BCI).
The Campaign for Wool, The Clothworkers’ Company, The Drapers’ Company and The Weavers’ Company have collaborated for third year to bring about the ‘Making It in Textiles Careers Conference. This was done to provide a free conference for final-year textile degree students. Bradford hosted the conference. It encouraged the participating 120 design and technology students from 23 universities to consider the wide range of roles open to them in the UK’s diverse, creative and fascinating industry over two days of interactive talks followed by visits to leading textile mills in West Yorkshire. The conference brought together industry professionals, educators and undergraduates for a packed program which included personal and professional journey narratives by both new and experienced members of the industry as well as explanations of the supply chain, textile manufacturing methods in the UK and potential roles open to textile design and technology graduates at every stage of production.
The event also offered the opportunity to most students to tour one of six mills in the West Yorkshire area and see for themselves textile production on an industrial scale. One of the most inspiring stories of the conference was delivered by Richard Humphries, who has a silk mill in Sudbury. The company makes luxurious jacquard silks for interiors and gowns. The mill’s work can be found in stately homes including Chatsworth House and Buckingham Palace.
Humphries said the next generation should not only be inspired and made to know that there is a future in British textiles but also one should also make them aware that one can’t just be a designer but he/she needs to have business skills as well. The Huddersfield-based company is developing finishing methods using plasma and lasers to make fabrics last longer and be more sustainable.
The Cotton Association of India (CAI) is opposed to the creation of any buffer stock. It says, the creation of a buffer stock system would require a total investment of about Rs 16,000 crores for procuring the desired 80 lakh bales of cotton, which in turn will involve a total recurring expenditure of hundreds of crores a year by way of carrying cost including interest and warehousing cost. In addition to this, the CAI would have to bear the loss that may arise due to a fluctuation in prices.
The textile industry wants a directive to be given to the CAI to procure 70 to 80 lakh bales of cotton in the peak season and retain it as buffer stock and sell this quantity only to actual users during May-September.
CAI says the idea of a buffer stock for exclusive use by a certain sector is wrong, as it will not only distort the market, but will also unsettle other sectors of the cotton value chain. Since India is a huge cotton surplus country, and cotton is available to Indian mills at their doorstep, there is no reason for India to create any buffer stock. If the problem is non-availability of funds with textile mills to buy and stock cotton, it would be appropriate to address this through banking channels.
The Brazil-based Better Cotton Initiative has released its Harvest Report for 2015. And it reveals, the country has maintained its position as the largest source of ‘Better Cotton’ globally. Highlights from the report are: In 2015, 189 cotton farmers were licensed to produce Better Cotton. As many as 762,000 metric tonnes of Better Cotton lint was produced across 556,000 hectares. Better Cotton amounted to 57 per cent of the entire cotton crop in Brazil, compared to 45 per cent in 2014.
Better Cotton is sown and harvested in different annual cycles across the world. This means that harvest data becomes available from different regions throughout the calendar year. When a country’s harvest results are finalised, they will be released on the 2015 Harvest Report map on an ongoing basis.
This marks the fifth year of Better Cotton production in Brazil, and the second year of BCI’s Strategic Partnership with Associação Brasileiro dos Produtores de Algodão (ABRAPA). The next Harvest Report will be released by Tajikistan.
Bringing together 1,700 booths with fashion items from China and all across Asia, Global Sources has opened its largest fashion show in Hong Kong at Asia World-Expo. The show spans four categories: Fashion Accessories & Footwear, Fashion Apparel & Fabrics, Bags & Luggage and Underwear & Swimwear.
Top suppliers from mainland China, Hong Kong, Korea, India and throughout ASEAN have converged at the show that allows buyers to efficiently source fashion products including apparel, bags and luggage, fashion jewelry, underwear and swimwear, scarves, footwear and fabrics. The show also features 500 exhibitors who would accept small orders and 400 exhibitors who are promoting their own designs and brands.
Other highlights of the show are the Expanded Footwear pavilion, that has the largest collection of footwear in Hong Kong with 150 booths of sports, casual and fashion footwear, Fashion Tech Zone that introduces innovative products such as smart bags and smart footwear, sports fashion & active wear collection, Hong Kong's largest collection of sports fashion with 450 booths showcasing sports and active wear, yoga wear, functional fabrics etc
Among the thousands of buyers pre-registered to attend the show are Adidas, American Eagle Outfitters, Bossini, Cortefiel, Cotton On, Debenhams, Fossil, Furla, Gap, Giordano, Kate Spade, Laura Ashley, LCX, Mary Kay, Max Mara, Primark, Puma, Ralph Lauren, Ripley and Zalora.
American Apparel is preparing to file for its second bankruptcy in as many years. The situation is a result of capping a tumultuous stretch that includes tumbling sales and a split with Dov Charney. The filing would be done in the next few weeks. The move could help set the stage for sale of the Los Angeles-based company by letting it exit leases and close down part of the retail operation. Yet the plan isn’t final and could change as the holiday season approaches.
It may be recalled that the clothing maker came out of bankruptcy last February when former bond holders - led by Monarch Alternative Capital took over the company. A turnaround plan to return to American Apparel’s roots and focus on basic items like T-shirts and skirts didn’t improve results enough. The company has also hired restructuring firm Berkeley Research Group for guidance, it is learnt.
Earlier this year, American Apparel hired investment bank Houlihan Lokey to consider a sale after receiving interest. The potential buyers are mainly interested in the company’s wholesale unit and the brand. That leaves its roughly 200 retail stores in a state of fix.
"YKK, world’s largest zipper manufacturer is bullish about expansion in India. The Japan-based zip manufacturer already has a strong presence in Southeast Asia in countries like Taiwan, Bangladesh, Pakistan, Indonesia, India and Singapore. Although the brand has a strong market in Europe however, the US market has not met expectations."
YKK, world’s largest zipper manufacturer is bullish about expansion in India. The Japan-based zip manufacturer already has a strong presence in Southeast Asia in countries like Taiwan, Bangladesh, Pakistan, Indonesia, India and Singapore. Although the brand has a strong market in Europe however, the US market has not met expectations.
India on its mind, YKK looks at expanding base
With the market for denim and casual wear growing in India, YKK is witnessing a steady year on year growth. From garments to luggage, the brand is targeting every segment of customer. The brand has been offering high quality zippers, machines, and architectural products to Indian market. Apart from zippers, YKK also offers high quality buttons, hooks, loops, buckles. “We are in the high segment however, we have a wide portfolio to target customers across various verticals. In India, we are growing over 25 percent every year,” says Mohit Verma, Regional Head North, Sales and Marketing.
Elaborating on its strategy for market expansion Verma says “We approach both buyers and vendors. We interact about lead times, availability, services. This way we can be closer to customers. The jeans market is growing in India and we have received a good response from jeanswear manufacturers. And we can spread the word about our presence in India. People are fed up of using other products that are faulty. If they use our products the rejection rate is zero or negligible. So we have to manage both price and volumes. But lowering the price won’t affect the quality of the product.”
The brand already has a strong presence in India. Mumbai and Ahmedabad being the hub of denim wear manufacturing, both are core markets for YKK, while in North, markets like Karol Bagh, Tank Road, Gandhi Nagar have been major contributor to sales. “We plan to have a diversified product range to match various price points. We want our product to be used by the biggest of domestic or export brands and the smallest of tailors. In exports too we are growing” adds Verma. Mumbai continues to be an interesting market for the brand inspite of the city’s own set of challenges which include scarcity of land and higher wages. “Mumbai has become the denim capital of India. There are many firms doing mass production of denim. What’s produced in Mumbai is really good even though it may not be a certified factory or a buyer nominated factory. And YKK has a big share in this. The share of the western India has grown in the domestic market,” Verma opines.
The brand’s growing presence in India is supported by a massive backend infrastructure in Bawal. YKK has an equipped infrastructure covering almost 70 acres of land. It also has a strong dealers and distributor network with 14 offices all over India. “We are in places like Kochi, Jaipur, Ludhiana, Ahmedabad and soon planning to have warehouses in Mumbai, Ludhiana, Kolkata,” Verma informs. As a market, India has a huge domestic volume and YKK’s overall business records higher domestic quantities than exports.But in Japan YKK dominates the market.
The brand’s global production line reflects innovation and advanced technology. YKK Japan has a product portfolio that includes fire retardant zippers, water repellent zippers, and specific zippers for scuba diving suits and for suits that astronauts wear. Other than acquiring a larger market share YKK intends to focus more on introducing newer, innovative product in India. “We have a product for trousers called ‘CINC and EZFC, which was developed after studying the market for two years. This is at a price point where even the common tailor and the biggest brand in India can afford. Perhaps our biggest strength is we make products based on customer demand. We are planning to increase the product range. YKK India has a strong R&D department which fulfills the demand of customized Logo sliders, finishes and rubber sliders. According to the fabric base, we have to develop a product that looks like metal. We are increasing our production capacity for regular products. We will do within India what we are now importing,”explains Verma.
Counterfeit pose a major challenge
Unlike in Japan, the highly unorganised market in India poses a major challenge on its way. “In India, we have a lot of competitors from both brands and unorganized segment. There are foreign zipper brands in India as well. There are counterfeits in Ahmedabad and Mumbai which pose problems after washing. Counterfeits and imports from China are a challenge. Counterfeits may come from China or local manufacturers and maybe they are selling more than the original YKK brand. There are still many brands using fake YKK products. We are taking legal action against them,” says Verma.
Apart from legal course of action to stop the fraud , the brand is relying heavily on educating vendors about YKK’s quality and innovation. The brand is aggressively expanding its vendor network and organising training programs to impart knowledge about their USP. YKK also engages in CSR activities from literacy to women’s empowerment and green issues. “YKK has a strong pan India presence while many of our competitors are regional. In volume and value, they are far behind us” sums up Verma. Indeed YKK has set a benchmark of its own which is tough for others to reach.
Gandhinagar, is gearing up for the Indian Textile Sourcing (ITS) exhibition scheduled to take place there from February 16 to 18, 2017. With an exhibition area spreading over three halls, the organisers are expecting more than 350 exhibitors from all over India and overseas for the grand gala.
The exhibition anticipates the participation of 13,000 buyers in all, comprising 10,000 domestic and 3,000 international visitors. Overseas visitors are expected from the USA, EU, China, Korea, Bangladesh, Vietnam, Thailand, Sri Lanka, Egypt, Turkey, Middle East and Latin America The event would display the entire range of textile raw materials with distinctive supply chain for cotton, polyester etc. It is projected to be the largest textile sourcing event in South Asia that would cover textile raw materials to finished products.
The exhibition is envisaging a good response from the entire value chain of both fashion and retail. It will play the role of a facilitator to generate high volumes of business, enquiries and partnerships. This in turn will stimulate sourcing and discovery of new supply chain partners. The organisers of the exhibition are looking forward to participation from leading suppliers, brands, buyers and media.
