FW
Though world cotton acreage is expected to contract 1 per cent to 31 million hectares in 2016/17, the average yield is projected to expand 5 per cent to 735 kg/ha, leading global output to grow 5 per cent to 23 million tons. According to the International Cotton Advisory Committee (ICAC), global cotton consumption is forecast to remain at 23.6 million tons in 2016/17 as low prices for competing fibres make cotton less attractive. ICAC believes while mill use may remain stagnant, world cotton trade volume may increase 1 per cent to 7.4 million tons in 2016/17. In 2016/17, China’s imports are expected to decrease by 8 per cent to 947,000 tons as the Chinese government continues to restrict imports in order to reduce its sizeable stocks of cotton.
While, at the end of 2016/17, global cotton stocks are expected to be down 5 per cent to 20.4 million tons as mills exceed production by 930,000 tons. Here it may be noted that in the 2015/16 season, global cotton output fell 17 per cent to 21.7 million tons, driven by a 9 per cent reduction to 31.1 million hectares in area, while world average yield dropped 9 per cent to 699 kg/ha.
KappAhl has increased the proportion of its sustainability labeled fashion range from 24 to 38 per cent over a 12 month period. KappAhl, a Swedish apparel retailer and fashion brand, has nearly 400 stores in Sweden, Norway, Finland and Poland. Its range includes garments which have been made using organic and Better Cotton Initiative cotton as well as recycled materials in its sustainable range. The brand is online.
Its sustainability work is carried out in everything from materials, water consumption, and reduced use of chemicals to clothes care and textile collecting. Sustainability and profitability are two sides of the same coin for the retailer. By 2020, all cotton in KappAhl's range will be sustainable – produced using identity cottons such as Better Cotton and organic cotton. At present, all cotton in KappAhl’s men’s shirts is produced with organic or Better Cotton while KappAhl’s children's collection Kaxs, is made using organic cotton – as is the baby collection Newbie.
KappAhl does not own any factories, but is one of many customers of independent manufacturers. The company is part of a project which works to improve water, energy and chemical management at its textile supplier production units in India, China, Bangladesh and Turkey.
Apparel exports from South Asia have grown by around 10 per cent annually from 2005 to 2014, with Sri Lanka alone setting a sales target for the industry of $8 billion by 2020. The IMF expects GDP growth for India, Pakistan, Sri Lanka and Bangladesh between 2015 and 2020 to be well above the world average, with India leading the way at around 8 per cent.
Ports in the region in 2015 handled just under 22 million 20-foot-equivalent units, similar to the east coast of North America. Meanwhile, 2015 throughput grew by 234,000 TEUs in India, 278,000 TEUs in Sri Lanka, 274,000s TEU in Pakistan and 324,000 TEUs in Bangladesh.
Part of the reason for the upswing in South Asia container handling is a greater trend towards transshipment and leading the way in this is Sri Lanka’s evolution as a regional hub.
Analysts opined lagging port infrastructure in the region for many years meant that container lines preferred to base their hub and spoke networks in the Middle East and Southeast Asia, but the development of the port of Colombo as a viable hub following the end of the civil war in 2009 has boosted the South Asia TEU count. The Sri Lankan hub’s growth was tapered by the continuous upsizing of vessels with deeper draft requirements, but the opening of the Colombo International Container Terminal at the new South Harbour in 2013 with 20-meter (66-foot) access channel, has kick-started further activity.
Dutch garment companies will sign the Dutch Agreement on Sustainable Garment and Textile. The Agreement and Fair Wear Foundation (FWF) that pledge the same goals will work together to achieve them. Companies that sign the agreement could use FWF membership to comply with the social requirements. All the work FWF member companies are doing to improve labour conditions at their suppliers are in line with the Agreement’s objectives points out FWF director Erica van Doorn.
FWF brands work to reduce risks in their supply chain, take responsibility when things go wrong and let an independent NGO publically report on their efforts. Members are required to develop internal management systems to better support good workplace conditions. Every year, FWF examines its member brands on how their management practices support good labour conditions during the ‘Brand Performance Checks’, a set of 42 detailed indicators.
On its part, FWF publically reports on the strengths and weaknesses of each brand, and on how they have progressed over time. Companies need to be able to prove that they have taken substantial steps forward toward positive change in the garment industry.
The 23rd HKTDC Hong Kong Fashion Week for Spring/Summer opened on July 4 at the Hong Kong Convention and Exhibition Centre (HKCEC) featuring more than 1,200 exhibitors from 18 countries and regions. The fair organised by the Hong Kong Trade Development Council (HKTDC), showcases latest fashion, international brands, garments, fabrics and accessories.
Under the theme “Garden Breeze”, Fashion Week features over 20 events including fashion parades, designers’ collection shows, house shows, trend forecasting seminars, forums and networking events. Together, they provide a full spectrum of business insights and spotlight the hottest designer collections. This year’s fair welcomes newcomers from Bangladesh, Italy, the Netherlands, and the Philippines. Six group pavilions have been set up to represent key fashion markets such as the Chinese mainland, India, Japan, Macau and Thailand.
Interestingly, in order to create business opportunities for exhibitors, a total of 91 overseas buying missions organised to bring over 5,100 buyers from 45 countries and regions to the fair. These include representatives from renowned fashion labels, mega chain stores and major distributors, including Forward from Russia, HARDTOFIND from Australia, H&M from the Chinese mainland, Jaspal from Thailand, MODAS GAEBEL from Spain, TRICYCLE from South Korea, V-Mart Retail from India and World Co from Japan. The fair will come to a close on July 7.
Leading textile and apparel producers in China have been transferring their business to Xinjiang, making the far northwest region a thriving textile and garment producer. Following the China-proposed ‘Belt and Road’ initiative and regional economic development, Xinjiang, which borders eight countries and boasts 29 national ports, has grown into a trading hub for garments, shoes, and daily necessities.
Xinjiang produces China’s best cotton, and more of it than any other region. Xinjiang’s cotton harvest reached 3.5 million tons, about 60 per cent of China’s total output, in 2015. Textile and garment exports to Central Asia and Russia via ports in the Xinjiang Uygur region have increased by more than 60 per cent from the same period last year. About 70 per cent of exports went to Kyrgyzstan and Kazakhstan, with the former ranking first. China plans to build Xinjiang into a major textile base by 2020 to facilitate exports to its western neighbors.
China has long been a top textile manufacturer for the world market. The country exported 2.5 billion dollars worth of textiles and garments through ports in Xinjiang. The plan is to bolster the textile and garment industry in Xinjiang in the hopes of increasing local employment and exports.
The Woolmark Company, the Australian Wool Innovation’s (AWI) marketing subsidy, has decided to consume 3 per cent of Vietnam’s $27 billion textile export market in the next four years. Following an unsuccessful attempt to enter the Vietnamese market more than a decade ago, Woolmark spent nearly $1 million annually to diversify its supply chain in Bangladesh, Russia, Belorussia and Ukraine with a major focus on Vietnam.
During a visit to one of 40 Vietnam-based factories using wool for the first time this year, AWI Vietnam Consultant, Tran Van Quyen is reported to have said that it was a realistic goal for Australian wool to infiltrate $810 million of the Vietnamese textiles and garment exports market by 2020. In order to get a bigger chunk in the Vietnamese textile market, education would be a key strategy. Several companies have now been trained in the dyeing, knitting and finishing processes and have already started taking on commercial orders, he went on to add.
Encouraging Vietnam to start early stage processing of wool, AWI feels that Vietnam could be an alternative to Australia’s heavy reliance on China as the major buyer of greasy wool. While wool entered the emerging Vietnamese market in 2012, it is said that the Vietnamese textile market acquired 800,000 kilograms of Australian wool in the 2014-15 financial year mainly through early stage processing mills in China.
US International Trade Commission (USITC) provides a quantitative assessment on the impact of trade on manufacturing jobs in the US textile and apparel industry in its newly released Economic Impact of Trade Agreement Implemented under Trade Authorities Procedures, 2016 Report. According to the report, manufacturing jobs in the US textile and apparel industry have been declining steadily over the past two decades. Rising import is found as not a major factor leading to the decline in employment in the US textile industry. As estimated, imports only contributed 0.4 per cent of the total 7.6 per cent annual employment decline in the US textile industry. Instead, more job losses in the sector are found caused by improved productivity as a result of capitalisation and automation. Rising imports is the top factor leading to job losses in apparel manufacturing.
However, USITC did not estimate the impact of trade on employment changes in the retail aspect of the industry. According to the US Bureau of Labor Statistics, approximately 80 percent of jobs in the US textile and apparel industry came from retailers in 2015.
Close on the heels of the government announcing radical changes in labour rules and an Rs 6,000-crore package for the garments sector, the textile ministry has pitched for the labour reforms extension to to the textile (yarns, fabrics and made-ups) sector. Textile secretary Rashmi Verma has reportedly said that the special package has talked of certain big reforms in labour laws. This is, of course, specific to the garments sector. They are hoping it will be extended to the textile sector as well, at least things such as fixed-term employment and increase in the overtime limit for workers.
Since both the labour-intensive sectors complement each other, extension of labour reforms to the textiles industry including the spinning sector will enable India to better capture the space being ceded by China due to soaring wages costs there, apart from helping create new jobs.
Late last month, the government decided to introduce fixed-term employment and bring in uniformity between contractual and permanent labourers in terms of wages and other incentives. It also raised the overtime work limits for willing workers to 8 hours per week (which will translate into roughly 100 hours a quarter against the current 50 hours per quarter).Thus a garment factory will now have the flexibility to hire contractual workers for a fixed period and get willing workers to do overtime to be able to meet supply commitments, given the highly seasonal nature of export orders.
Last month, the government had also announced that contribution to the Employees’ Provident Fund (EPF) will be optional for the employees of the garment sector earning less than Rs 15,000 per month. Such a move will leave more money in the hands of workers and help boost rural demand. Moreover, the government decided to bear the entire 12% of the employers’ contribution to the EPF scheme for a certain category of employees, up from 8.33% at present.
Now, the government aims at creating 10 million new jobs, $30 billion additional exports (over and above textile and garment exports of $40 billion in 2015-16) and investments of Rs 74,000 crore over the next three years.
Companies are working on spider silk. Spider silk’s tensile strength is comparable to steel’s. Yet it is lighter, and can be as stretchy as a rubber band. A real spider generates silk in specialized glands in its abdomen, and creates the silk strands using a spinning organ called a spinneret. Some spiders produce up to seven types of silk, each with its own purpose and attributes.
Synthetic spider silk can be used for everything from automobile parts to medical devices to performance outdoor gear, which is the area that’s attracting some of the most attention thus far. A California-based startup called Bolt Threads doesn’t use spiders to make its silk. The main ingredients are genetically modified yeast, water, and sugar. The raw silk is produced through fermentation, much like brewing beer, except instead of the yeast turning the sugar into alcohol, it’s turned into the raw stuff of spider silk.
Bolt Threads spins that into threads using a method similar to the wet-spinning process used to create cellulose-based fibers. It’s molecularly the same as natural spider silk. Unlike silkworm silk, which silkworms produce to make their cocoons, spider silk can’t be farmed in large quantities because spiders are cannibals, and will eat one another in close quarters. The issues holding back manmade spider silk have always been producing it in large quantities and developing the right spinning process.
