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Kingpins Amsterdam, held on October 28 and 29 2015 at Westergasfabriek was a huge success. International visitors from countries such as Japan, Colombia, India, the US, and Bangladesh, besides the Southern and Northern European countries were attracted by the show.
Brands such as Tommy Hilfiger, Hugo Boss, Levi’s Scotch & Soda and G-Star visited the show. The focus was on new fibre mixes for better interaction with the wearer, greater hype on stretch fabrics, and denims developed with the aim to preserve the environment better. These were the novelties for spring/summer 2017.
Special fibre blends were showcased by many manufacturers. One of them was ITV, which launched a new denim that also has a small percentage of tear-proof silver and, even if the garment aged and carries breakings, the brightness of silver of these fibres shines through the weave of the fabric. Besides, ITV also developed new denim mixing cotton with merino wool, cashmere, silk and hemp. Bossa’s new invention of denim incorporates 15 per cent silver fibres, which protect the wearer from dangerous radiations such as from cellular phones. Ortabluefrequency was launched by Orta, which is a series of fabrics that has high-tech performance such as fabrics with over 30 UV ray sun protection, liquid resistance properties and moisture-wicking properties.
Stretch developments were also on show and many launched multi-directional stretch denims and Invista’s revolutionary Hybrid technology concept.
In 2013, Swedish fast fashion retailer H&M forayed in Africa for sourcing, the first retailer to do so. Since then the brand has made it obvious that Africa is the place for them in the future. To test waters, Ethiopia was the country H&M started with a small operation, which is now its regional hub. Later, the company opened production in Kenya, and things are fine so far.
Hande Diltemiz, H&M Country Manager, during a panel on best practices for a sustainable African apparel value chain at the Africa Sourcing show in Ethiopia recently, said that they were excited to be in the continent and looking for more opportunities there. He added that they wanted to contribute to sustainable growth in Africa.
Stressing on the importance of setting up sustainably in the region from the start Diltemiz said H&M’s focus is on doing the right thing from the start, outlining best business practices for local manufacturers and suppliers, establishing good labour practices, securing environmental performance, and developing a sustainable cotton industry.
However, this cannot be compared to Asia and Ethiopia has its own challenges and they need to find out how to do things better there. H&M looks at sourcing form Africa as a long-term exercise and Diltemiz says that they were first ones and more buyers and investors would be coming to Africa in the future. She believes that in teh end, it will be a collective success.
According to a report by International Cotton Advisory Committee, Chinese imports are projected to fall by 24 per cent, to less than 1.4 million tons. China will likely remain the world’s largest importer in 2015/16, but its share of world imports has fallen from 55 per cent in 2011/12 to 22 per cent in 2014/15 and may only reach 17 per cent in 2015/16. Instead, imports to other Asian countries are taking on a larger share and will partially offset the decline.
In 2011/12, imports by the rest of Asia accounted for 31 per cent of world imports. In 2015/16, Asian imports excluding China are expected to reach 4.5 million tons, representing 60 per cent of world imports. Bangladesh, Vietnam and Indonesia are the three largest importers in the region outside of China. Imports by Bangladesh may slightly exceed one million tons in 2015/16, up 4 per cent from last season, while imports by Vietnam are projected up 5 per cent to 990,000 tons. After declining in 2013/14, imports by Indonesia increased 13 per cent to 735,000 tons in 2014/15 and may reach 780,000 tons in 2015/16.
Mill use in Asia outside of China is forecast to rise by 4 per cent to 12 million tons, representing 48 per cent of world consumption projected at 25 million tons in 2015/16. Mill use in India is expected to reach 5.6 million tons, up 3 per cent from 2014/15 and in Pakistan, 2.6 million tons, up 2 per cent from 2014/15. The cotton trade remains competitive as China’s cotton policy evolves and cotton-exporting countries continue to seek new markets. However, world production is forecast down 9 per cent to 23.9 million tons, about 1.1 million tons below consumption.
Although production in the United States is projected down by 11 per cent to 3.2 million tons and exports down by 9 per cent to 2.2 million tons, it will likely remain the world’s largest exporter. India, the world’s second largest exporter, could see a small recovery in 2015/16, with exports forecast to increase 15 per cent to 1.1 million tons.
www.icac.org
Aditya Birla Group firm Grasim Industries has reported a 17 per cent increase in consolidated net profit to Rs 489 crores for the September quarter. Total consolidated revenue for the company stood at Rs 8,393 crores.
The company produces viscose staple fibre (VSF) used in apparel and cement that makes more than 90 per cent of their revenues. “The company will continue to focus on expanding its domestic market through product development activities, working closely with brands, designers and retailers. A better customer connect through brand Liva is leading to growth in demand for VSF based products in the textile value chain,” it said in a statement.
Revenue for viscose staple fibre (VSF) increased by 13 per cent driven by higher sales. "In the VSF business, prices are likely to be influenced by the developments in the industry such as the resumption of operations at some of the shut capacities in China and prices of competing fibres,” the company added.
www.grasim.com
Invista, owners of the Lycra brand, will unveil a transformative patent pending technology for knit denim fabrics at the upcoming Kingpins Denim Show in New York after showcasing the innovation at the Amsterdam show in October. Under the platform of Lycra Hybrid technology, these fabrics combine the best of both worlds – the comfort and flexibility of a knit with the authentic aesthetics and performance of a woven.
Meanwhile, Invista was recently granted the Ringier Technology Innovation Award 2015 for its Novadyn transparent polyamides, recognizing their new-to-market polyamides with a unique combination of performance, cost effectiveness and recycled content. Novadyn polyamides can be used in molded parts, filaments, fibres, and films, and can be used in a variety of applications including automotive, electrical, industrial and consumer products.
Based on extensive trials with fit models and Invista’s proprietary wear force testing protocols, the Lycra Hybrid fabrics have been segmented into three different categories, each with unique performance levels -- level 1 offers everyday denim fabrics that meet Invista’s standards for Lycra brand; level 2 are fabrics that meet Invista’s shaping technology standards can qualify for the Lycra Beauty brand; and level 3 are fabrics that meet its athleisure standards and can qualify for Lycra Sport branding.
The company began working on the new technology several years ago as they saw performance fabrics taking an increasingly important role in the denim space. The fabrics employ a specific patent pending construction to achieve the look and feel of traditional denim, but with much greater stretch and flexibility. Invista worked under confidentiality agreement with several mills on this project including Advance Denim of China, Knitdigo of Taiwan, Santanderina of Spain, and Willy Hermann of Austria. Garments from each of these mills will be on display at the Kingpins Shows.
It will also be hosting a seminar on the technology at the Kingpins show that will include a panel discussion by representatives of some of the mills, as well as a video featuring students who have personally tried jeans made with the new technology. The New York edition of Kingpins Denim show will be held on November 3 and 4, 2015.
According to ICAC, subsidies offered to the cotton sector, including direct support to production, border protection, crop insurance subsidies, and minimum support price mechanisms are estimated at a record $10.4 billion in 2014/15, a considerable rise from a record of $6.5 billion in 2013/14. Twelve countries provided subsidies in 2014/15, and the subsidies averaged 22 cents per pound, up from 15 cents per pound in 2012/13.
Since 1997/98, when the Secretariat first began reporting on government measures in cotton, there has been a strong negative correlation between subsidies and cotton prices: in years when prices are high, subsidies tend to decline and in years when prices are low, subsidies tend to rise. This relationship was maintained during 2014/15. The Cotlook A Index declined from an average of 91 cents per pound in 2013/14 to an average of 71 cent per pound in 2014/15, and subsidies provided to cotton growers increased.
In some countries, such as Brazil and India, minimum support price programs were triggered during 2014/15 because market prices fell below the government intervention prices. Some countries provided subsidies for cotton inputs in 2014/15, especially for fertilizers, storage, transportation, classing services and other marketing costs. At the same time, the use of crop insurance subsidies is also on the rise.
The share of world cotton production receiving direct government assistance, including direct payments and border protection, increased from an average of 55 per cent between 1997/98 and 2007/08, to an estimated 83 per cent in 2008/09. During 2009/10 through 2013/14, this share declined and averaged 47 per cent. In 2013/14 the proportion of production receiving direct assistance is estimated at 44 per cent, however, the share increased to 76 per cent in 2014/15.
www.icac.org
In 2014 Farm Bill debate, the US cotton industry was relegated to the sidelines, because of the adverse rulings in the WTO case, Brazil brought up against the US cotton programme in 2002. Gary Adams, President and CEO, National Cotton Council testified at a House Agriculture Committee hearing on October 21 that the Council does not want this to happen again. Dr Adams said that for the 2015 crop year, India will be the largest cotton producer, surpassing China for the first time. Before 2004, India generally produced between 10 million to 14 million bales. Starting in 2004, India significantly increased production to 19 million bales and has continued to increase each year since (to 29 million bales for 2015-16), he added.
The Minimum Support Price (MSP) operated by the Cotton Corporation of India is based on seed cotton production. The MSP equates to a cash price of between 70 and 80 cents per pound or 20 to 30 cents per pound above the US cotton loan rate. Besides, the Indian government also provides subsidies estimated at more than $9 billion a year for fertiliser for cotton and other crops. However, with the $1.40 per pound China was paying its producers for cotton two years ago.
More than 50 million bales of cotton are amassed in government reserves because of China’s support system, which are likely to have an impact on world cotton prices for years to come. Though developments in India, China, Pakistan, and other cotton-producing nations are underway, some of these entities are expected to impact the US cotton programme when the World Trade Organization holds its 10th Ministerial Conference in Nairobi, Kenya, next month.
According to a latest report by International Cotton Advisory Committee (ICAC) subsidies provided to the cotton sector, including direct government support to production, border protection, crop insurance subsidies, and minimum support price mechanisms are estimated at a record $10.4 billion in 2014-15 compared to $6.5 billion in 2013-14.
Subsidies to the cotton sector in one form or the other were provided by 12 countries, viz. China, India, Turkey, the US, Greece, Brazil, Spain, Mali, Burkina Faso, Colombia, Ivory Coast, and Senegal during the 2014-15 season. As per the report, these subsidies averaged 22 cents per pound, up from 15 cents per pound in 2012-13.
There has been a strong negative correlation between subsidies and cotton prices since 1997-98, when the ICAC Secretariat first began reporting on government measures in cotton. Subsidies tend to dip in years when prices are high, and when they are low, subsidies tend to rise. The report stated that this relationship was maintained during 2014-15 as well. The Cotlook A Index declined from an average of 91 cents per pound in 2013-14 to an average of 71 cent per pound in 2014-15, and subsidies provided to cotton growers increased.
Minimum support price programmes were triggered during 2014-15 because market prices fell below the government intervention prices, in some countries such as India and Brazil. While some other countries provided subsidies for cotton inputs in 2014-15.
The 136-year-old Mulji Jetha market in Mumbai, among the largest textile bazaars in Asia, is dotted with hundreds of wholesale stores and some retail ones too. Crowded with customers all day, today the market is flooded with Chinese textiles instead of fabrics from the country’s traditional textile hubs. Premal Udani, Managing Director, Kaytee Corp an apparel manufacturer that supplies to Walmart, says that Mulji Jetha hardly had any imported items 25 years ago. However, now there are hardly any local textiles. He believes the issue is critical for fabric compared to apparel. The Chinese onslaught, or flooding of cheap Chinese items, is yet to happen in the apparel sector. However, he fears that apparels will be the next to face the onslaught from China.
He also feels that the government needs to not take a long-term approach regarding this and if it doesn’t do something soon, one may have to face the risk of organised mills going extinct in 10-15 years. The textiles sector employs the maximum workers after agriculture in the country. Prime Minister Narendra Modi wants the sector to triple in size, from the current $110 billion to $300 billion by 2020. Rajeev Gopal, Chief Marketing Officer at viscose staple fibre maker, Birla Cellulose, points out says that the Indian textile industry is facing serious threat from China, and even Indonesia, across the value chain—from fibre to yarn to fabric and even garments—because of dumping at very low prices. The sector generates a large employment and is also a huge foreign exchange earner. Gopal too believes that the government needs to safeguard the Indian textile industry.
Pakistan’s textile and garments sector has emerged as the sole beneficiary of preferential access to the 28-nation European Union under the GSP Plus scheme. From January to July 2015, the value of garments exports to EU witnessed a growth of 26.78 per cent in euro terms. In quantity terms, exports of garments increased by 6.48 per cent.
In euro terms, exports of home textiles witnessed a growth of 17 per cent. Exports of cotton and intermediary goods of textiles dropped by 19.5 per cent. The decline was also witnessed in terms of quantity, which dropped by 8.1 per cent. Exports of total textiles dropped by 4.75 per cent during January to July 2015 over the corresponding period of last year. Carpet and rug exports dropped by 7.06 per cent during January to July 2015, over the corresponding period of last year. Textiles alone constituted around 80 per cent of total exports to the EU during January to July 2015.
Pakistan was granted GSP Plus in 2013. In the first year of the GSP Plus scheme, Pakistan’s exports to EU reached 7.52 billion dollars in calendar year 2014 from 6.22 billion dollars over 2013, an increase of 21.24 per cent.
