FW
In 2016, the US apparel and footwear industry is expected to grow by three to five per cent. The strong US dollar will continue to have negative foreign currency translation effects on the industry’s gross profits for the rest of this year. Next year, provided foreign exchange rates stay the same, companies will experience a roughly 40 basis point drop in operating margins because of higher sourcing costs at current exchange rates.
Apparel companies will continue to benefit from low cotton and oil prices this year, which could help the industry’s operating margins. Sales for department stores have fallen 24 per cent since 2002 and more and more apparel companies are realigning their focus and growing their online and direct-to-consumer offerings.
Apparel companies, particularly big names like Nike, Ralph Lauren, VF Corp and PVH, are expected to grow sales and expand operating margins through their organic growth initiatives. Nike, VF Corp and Hanesbrands have been the primary revenue and income growth drivers for the apparel sector this year, and they all sell athletic apparel, which points to the continued trend toward athleisure-focused sales.
E-commerce sales in the apparel sector may grow 14.2 per cent next year and online penetration will reach 16 per cent of total sales.
www.nike.com
Ajit Desai, Managing Director, Kariba Textiles said that due to the rise in cost of imported raw materials as a result of continued depreciation of the Kwacha, textiles manufacturing companies are becoming expensive to operate in Zambia.
The materials required to manufacture blankets, he said, which are acrylic yarn and fibre, are not manufactured locally, which makes production of blankets costly in Zambia. He also urged other investors recently, to consider yarn manufacturing, especially since many farmers grow cotton, in turn helping to reduce the cost of producing blankets.
Only one textile company is operating in the country for some time, he added, as investors are scared to explore the textile sector as it is expensive to import raw materials and the Kwacha is not competing favourably against other major currencies. Desai said that because the blankets are sold in the local unit yet the raw materials are bought in foreign currency, the weakened Kwacha was affecting the operations.
Desai further stated that they import the raw materials on credit, which are quoted in foreign currencies, and after the blankets are manufactured, they are sold in Kwacha. However, the challenge is, paying back for the raw materials to the supplier because of the continued instability of the Kwacha. This has a negative impact on the business as prices can’t be increased unexpectedly, he said.
He further urged the government to consider buying blankets from local firms as a way of supporting the manufacturing industry, through its various departments such as hospitals and prisons. Dismas Chapula, economist, Ministry of Commerce, Trade and Industry economist for industry monitoring said that the government was committed to supporting textile industries because of its potential to create employment.
The ever-changing world of fashion is fluid where ideas, processes and innovations from across the world are in continuous progress, changing the game frequently. C.L.A.S.S. is to hold a unique event at its headquarters in Milan in January 2016 to keep up with the most interesting innovations in the textile field.
At the event, fashion professionals will be introduced to a new generation of textile technologies, providing customised programmes focussed on design synergy, innovative textile research and strategic communication. The creators of C.L.A.S.S. Education are eager to spread the knowledge of the new production process, smart textiles and innovation in the field.
Pioneering the first communication programmes for brands and companies that approach innovation and excellence throughout sustainability, Founder and CEO of C.L.A.S.S., Giusy Bettoni is an expert in her field. A creative-thinker, experienced product developer and educator at Parsons School of Design of New York, James Mendolia will impart excellent knowledge of product development and academic leadership to lead the C.L.A.S.S. Education process.
C.L.A.S.S. Education, which addresses fashion designers, merchandisers, product developers, sourcing specialists and textile technicians, will introduce fashion professionals to a new generation of textile technologies. This includes, onsite textile supply chain assessment, hands-on material analysis, luxury fashion tours, and interactive Eco-Fashion workshops.
Innovative Textile Solutions: Eco-Fashion Workshop, the first C.L.A.S.S. Education’s class, is to be held in January 2016 in Milan.
www.classecohub.com
Bangladesh’s export earnings from the US market in the first quarter of the current fiscal year grew by 15.75 per cent. Earnings from India also witnessed a growth of 11.42 per cent year on year because of a huge rise in exports of jute and jute products. But readymade garment exports to India posted a growth of only 4.2 per cent.
This was because Bangladesh’s garment makers lost some competitiveness because of lower cotton price in India. As India has surplus cotton with lower prices, pricing of India’s garment products was better during the period.
Earnings from the US market posted a negative growth of 8.42 per cent year on year. But there was a rise in readymade garment exports to the US. This was because of progress in factory remediation work, the steadiness of value of the taka against the dollar, relaxation of US visa processing and value addition by Bangladesh’s garment makers. In addition economic activity has picked up in the US.
Confidence of US buyers in Bangladesh has grown in recent months. The US recently eased visa processing, allowing a visit by mid-level garment officials of Bangladesh. This helped marketing of Bangladeshi products in the US market.
Hansae will set up a production facility in Haiti. Hansae is a South Korean garment manufacturing company. It will build the factory for manufacturing garments and generate jobs for 5,000 people. It will help Hansae better serve its clients in the US market.
Retailers are on the lookout for opportunities to source production as costs rise in Asia. Hansae is mainly engaged in manufacturing garments like shirts, knits, women’s suits and casual apparel. It has production units in Guatemala, Indonesia and Vietnam, from where it exports to overseas buyers such as Abercrombie & Fitch, American Eagle, Gap, Hollister, Sears, Kohl's, Nike, Old Navy and others.
Textiles are a crucial component of Haiti’s economy. They represent Haiti’s largest manufacturing sector, accounting for 90 per cent of exports, and about 10 per cent of the country’s gross domestic product.
Most garment companies operating in Haiti focus on high volume, low margin apparel almost exclusively for the US mass market. Besides being close to North America, Haiti-based producers have competitive advantages that have enticed South Korean investors in recent years. Those include competitive labor costs, tax benefits and US legislation that expands duty-free access for textiles made in Haiti to include those made with fabrics sourced from anywhere.
China’s exports declined by 6.1 per cent over the previous year in August. The country continues to face challenges in rebalancing to cope with slowing export demand, particularly after the recent yuan devaluation.
China has been making strategic investments outside of its own market into other Asian countries which offer more competitive labor costs. While China remains the largest supplier of textile apparel to the US, Vietnam’s apparel exports to the US showed a 12.7 per cent year over year increase. Cambodia’s exports also showed a 7.2 per cent increase in July 2015 compared to July 2014.
Vietnam ranked second among the EU’s largest trading partners in 2014, exceeded only by China. With the long-awaited free trade agreement finally reached between the EU and Vietnam, this developing economy is due for further expansion and is rapidly becoming the new dominant force for apparel.
Bangladesh now meets the criteria to be reinstated in the Generalized System of Preferences (GSP) trade program, having lost its membership in 2013. The 2015 depreciation of the rupee to a two-year low is expected to have mixed effects on India’s fiber, yarn and apparel exports. While the rupee’s depreciation makes Indian exports more competitive, most of India's cotton (70 per cent of total fiber exports) historically went to China where buyers, after the yuan was devalued in August, will likely attempt to renegotiate prices. As a result, Indian exporters will see increased pricing competition and will not get the full benefit of the rupee depreciation.
The Cotton Corporation of India (CCI) will start purchasing cotton if the crop fits into parameters set by the procurement agency in terms of moisture content.
CCI will first attempt to sell its stock of 17 lakh bales procured during the previous season and then take a call on buying cotton from farmers subject to market conditions.
Now prices of cotton are around Rs 2,500 per quintal, which is above minimum support price, and therefore there is no requirement as yet for cotton procurement. However, as arrivals increase, a possibility could arise for procurement from farmers.
At present, arrivals that have begun in parts of the country have a moisture content between 18 to 20 per cent. CCI purchases cotton with a moisture content below 12 per cent.
The agency expects to begin procurement from Telengana this season followed by Andhra Pradesh and Maharashtra. In Telengana, CCI has established 84 purchase centers. Some 330 centers may be opened across cotton growing regions of the country.
Mills from the country have been purchasing cotton from the corporation. There is an expected slump in cotton output by 5 to 10 lakh bales this year because acreage has been affected to the tune of some 20 per cent.
cotcorp.gov.in
Officials said, at the bilateral commerce secretary-level meeting to be held in mid-October, Bangladesh will place a fresh list of products seeking duty-free access to Nepal.
They said that so far, against Dhaka's granting of full duty-free access of 108 products to the Himalayan nation, Kathmandu had agreed to offer nominal preferential access to 50 Bangladeshi products.
A senior official of the Ministry of Commerce (MoC) said that they had asked the Bangladesh Tariff Commission to prepare a fresh list of products to place in the next meeting of commerce secretaries seeking duty-free access to Nepal.
Nepalese officials agreed to grant tariff preference to 50 Bangladeshi products; most of these are hardly imported by the country. Of the 50 products, Nepal agreed to reduce duty by 3.0 per cent for products having import-duty more than 15 per cent. It agreed to reduce duty by 5.0 per cent for products that have less than 15 per cent import duty.
Bangladesh and Nepal’s two-way trade is still meagre. Bangladesh exported goods worth US$13.68 million to Nepal and imported goods worth US$21.50 million from the Himalayan nation in the fiscal year 2013-14.
Bangladesh mainly exports woven garments, knitwear, agri-products, footwear, raw jute, and jute goods to Nepal, while it imports vegetable products, animal or vegetable fats and oils, products of chemical or allied industries, plastics and rubber articles, textiles and textile articles, natural or cultured pearls, etc.
www.mincom.gov.bd
Turkish brands to share their success stories
Fashion conference at the IAF Convention will highlight positive global developments in the fashion industry under the title ‘Making it better’. Istanbul is one such example that has seen a number of positive developments in the global fashion industry.
The conference covers supply chain, CSR and sustainability, raw materials and marketing and branding. In the emerging brands session, upcoming successful Turkish brands share their success stories with the apparel world. Their development from manufacturer to brand to retailer to cross border success shows how in emerging economies such as Turkey, the apparel industry continues to evolve and create more value added. Brands such as Kigili, Lia Lea, Les Benjamins and 2Wins will demonstrate how in practice it is done.
Young designer session
In the young designer session, Dominique Jacomet, the Director of the Institut Francais de la Mode and Wendy Malem, Director of the Centre for Fashion Enterprise, will present the unique worth project, that has spawned a number of great new and innovative products and that has brought together the designers with manufacturers, including Turkish producers.
IAF and TCMA have brought this project to the stage because it shows such a good combination of a new generation of fashion companies, with new methods of financing, creating new business for manufacturers. But also, Colombian designer Andrea Landa, winner of the IAF Designer Award 2014 and Turkish designer Asli Filinta will share with the audience how they are growing a new fashion business.
Fashion industry experts to descend in Istanbul
Christoph Auhagen, CBO of Hugo Boss will be a keynote speaker on October 14. Other speakers include Gordon Richardson (Creative Director of Topman), Jan Hilger (COO of Ahlers), Leyla Ertur (Country Manager Production, Europe Region of H&M) and Murat Akkun (CSR Country Manager of Inditex).
October 15 will offer a matchmaking programme connecting delegates to the Turkish garment industry and specialised workshops. During the IAF General Assembly there will be a unique discussion session on the future of the industry. This session will be led by the World Bank's lead specialist Emiliano Duch.
Industry association executives and board members from major associations from five continents will be in the panel. The World Bank is collaborating with the IAF on forming a clearer picture of what are the most successful strategies and policies to create a stronger fashion industry globally.
www.iafconventionistanbul.com
A cooperation between the three industry partners Kelheim Fibres, Linz Textil and DyStar has led to a development of an innovative new viscose melange yarn named Danufil Proshade.
Danufil Proshade has a blend of standard viscose fibres and Kelheim’s speciality viscose fibre Danufil Deep Dye and is only dyed as needed at a later stage in the process, which is new, as usually, a melange yarn is spun out of differently coloured fibres. Particular properties of the fibre make this possible. There’s a substantially higher dye-absorption capacity than standard viscose fibres due to this speciality fibre’s permanent cationic charge.
A selected range of Levafix and Remazol dyes allows a salt-free dyeing process. The environment benefits as because of shorter dyeing cycles it is possible to save up to 30 per cent water and energy, at the same time increasing productivity–a time saving of up to 40 per cent.
Also, numerous tests have proved excellent reproducibility, levelness, and a high level of light-fastness and fastness to washing. Besides, a comprehensive customer support is offered, which includes, support in developing dye recipes that ensure optimum results. Moreover, Danufil ProShade can replace a stock of differently dyed yarns or fabrics, thus reducing significantly the amount of capital required.
A fast and flexible reaction to orders and production on demand, even of small melange lots is possible as the subsequent dyeing can be done in thousands of different melange tones according to the customer’s specific needs.
High-quality dyes and customer-oriented support from DyStar together with Kelheim Fibres’ expertise in the manufacturing of viscose speciality fibres, know-how and innovative spinning technology from Linz Textil make an innovative product, which delivers a higher level of efficiency and a better ecological performance in melange production.
www.kelheim-fibres.com
www.dystar.com
