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According to a consortium of environmental groups, most companies using cotton do nearly nothing to improve environmental sustainability in their supply. A report titled ‘Top Brands Failing on Cotton Sustainability’, compiled by Rank a Brand, one of Europe’s largest brand-comparison sites on sustainability and corporate social responsibility in conjunction with World Wildlife Fund - Solidaridad and Pesticide Action network UK, reveals that 29 of the estimated 37 biggest cotton users scored in the red in a recent survey of policy, sourcing, use and traceability.
Interestingly, H&M, which is known for its poor manufacturing oversight, dirt-cheap textiles, rampant green washing initiatives and its connection with repeated manufacturing tragedies, scores remarkably well on the Rank list, thereby raising questions as to the credibility of the list. H&M's favorable placement, however, is almost certainly due to the fact that only publicly available information was used in scoring company performance, the environmental groups said. Also placed highly on the list is Ikea, the only company to fall within the ‘Leading the Way’ category. This is followed by ‘On its Way,’ a level occupied by H&M and Adidas. Next up: ‘Starting the Journey,’ which include Kering (parent company to Gucci, Balenciaga, Bottega Veneta, and others) and Marks & Spencer. And ranking poorly, in the ‘Not Yet in the Starting Blocks’ category’ is Burberry, Macy’s, LVMH, Uniqlo’s parent company Fast Retailing, Coach, Gap, Ralph Lauren and Richemont.
Leading garment exporter of Bangladesh, Envoy Textiles has been recognised by a US organisation for its green initiatives that helped save a significant amount of energy and water in its production process. Envoy Textiles received the Leadership in Energy and Environmental Design's (LEED) platinum certification - the first Bangladeshi exporter to get the recognition from US-based Green Building Council in the denim category.
Platinum is the highest level of green-factory certification that a structure can earn and LEED is a popular green building certification programme used worldwide. The procedure includes a set of rating systems for design, construction, operation, and maintenance of green buildings, homes, and neighborhoods. The programme aims to help building owners and operators be environmentally responsible and use resources efficiently. Envoy Textiles saves 30 per cent electricity by means of the green initiatives, according to Abdus Salam Murshedy, managing director of the company.
The factory in Bhaluka of Mymensingh produces high-value denim fabrics for renowned retailers such as Marks & Spencer, GAP, Wrangler, Tesco and Next. This recognition is a reward for the 10-year old factory after it met standards by improving working conditions and adopting the environmental protection system in its production process.
Vietnam’s exports to China for the first five months of 2016, has gone up by 16.5 per cent year on year while imports from China fell 3.67 per cent. Vietnam mainly imports machines, equipment, mobile phones, computers, fabrics, iron and steel from China.
Vietnam expects to ship about $20 billion worth of commodities to China and spend $48 billion on imports from partners this year. Its trade deficit with China would total $28 billion, 13.6 per cent lower than last year’s $32.4 billion dollars. The contraction could be a good sign for Vietnam which has long been dependent on exported goods from China. However, China still enjoys a vast surplus in cross-border trade.
The United States continues to be Vietnam’s biggest buyer, importing $14.6 billion worth of commodities from Vietnam, up 14.9 per cent compared to the same period last year. It was followed by the European Union with $13.3 billion in imports, up 11 per cent.
Vietnam had $134 billion in trade revenue with foreign partners during the period, with an export turnover of $67.7 billion, up 6.6 per cent year on year, and an import value of $66.3 billion, down 0.9 per cent.
The auction of Chinese cotton reserves began on May 3, 2016. The results in the first week showed a very active participation of spinners with a purchase rate of 99.9 per cent. This purchase rate is much higher than the 3.4 per cent purchase rate for all of 2015. Out of the 1,21,165 metric tons offered, 1,20,350 metric tons were purchased by spinners. Of the total volume purchased, 27,671 metric tons were domestic cotton and 92,679 metric tons were imported cotton. The imported cotton offered in the auctions was fully purchased while the domestic crop was 97.2 per cent purchased.
US and Australian cotton were the most popular during the auctions and were also purchased at a higher price. So the high purchase rate indicates a shortage of cotton, specifically high-grade imported cotton, in the Chinese market.
The auction floor price offered this year appeared to be acceptable to buyers compared to last year. The high rate of purchase is likely to continue at least during the first weeks as Chinese mills are short of cotton. Spinning mills are the main buyers. However, some traders are also involved in auctions mainly to source imported cotton as some of them see a recovery in global cotton prices.
Textile companies in Zimbabwe have suspended exports to South Africa due to the depreciation of the South African rand. The rand has been on a steady slide against the dollar. Due to exports suspension, some of Zimbabwe’s mills have reduced their working periods. As a result, capacity utilisation has gone down to around 30 per cent. Capacity utilisation in the industry last year declined to 34.3 per cent from 36.5 per cent in 2014.
South Africa has traditionally been a strong market for Zimbabwe’s textile industry. Since Zimbabwe is using a strong currency, the weakening of the rand and other regional currencies means that exports have become more expensive compared to cheap imports. The situation has been compounded by high production costs locally, which further erode earnings in a squeezed domestic market.
Currently, the textile industry in Zimbabwe employs less than 5,000 people and it’s possible the figure might shrink further due to low production levels. At its peak the textile industry employed about 30,000 workers.
The challenges facing the textile industry are mainly working capital and subdued aggregate demand due to issues of liquidity, stiff competition from imported products, and obsolete equipment.
Workers in the Cambodian garment sector will have new minimum wages from January 2017. Wage discussions would be carried out by a tripartite working group consisting of representatives of trade unions, the Ministry of Labor, and the Garment Manufacturers Association in Cambodia (GMAC). GMAC represents about 600 factories that export garments and shoes.
All parties coming to the negotiating table have to prepare themselves by conducting surveys on social and economic criteria as well as the poverty line. The aim is to reach an agreement on the new minimum wage by October this year. In recent years, the minimum wage in the Cambodian garment and footwear sector has increased significantly from $66 per month in 2012 to $140 per month at present. The garment and footwear industry is the largest foreign exchange earner for Cambodia. In 2015, the sector exported goods valued at seven billion dollars, making up about 80 per cent of the Southeast Asian nation's total export earnings.
There are around 1,000 factories producing garments and footwear in Cambodia, which together employ nearly 7,50,000 people. The ruling party is caught between satisfying Cambodia’s electorate of 10 million, of which garment sector workers are a significant part, and keeping investors happy.
Kingpins the exclusive denim invite only exhibition is now switching to an annual show in Hong Kong and debuting a new concept, the ‘Kingpins China City Tour’. Kingpins Hong Kong traditionally takes place biannually in March and August, but will now run once a year in the spring, following Kingpins Amsterdam and New York.
In place of the second show, the multi-city concept ‘Kingpins China City Tour’ will run in September. With the China City Tour Kingpins can meet its Chinese customers face-to-face, understand what they need and how Kingpins can not only address those needs but help to elevate and evolve the denim industry in China. The ultimate goal is to launch a Kingpins China show.
The China City Tour will start on September 19 in Guangzhou, travel to Hangzhou on September 21 and finish in Zhengzhou on September 23. The three cities are home to approximately 800 brands and jeans manufacturers. Guangzhou is where China’s jeans industry thrives. Hangzhou is a city with a focus on manufacturing women’s sportswear, a hub of denim potential and interest. Finally, Zhengzhou is a city with many wholesalers and small brands, has a high demand for denim but limited denim sourcing options. Eventually Kingpins will make multiple tours per year to various manufacturing cities throughout China.
Switzerland’s textile machinery producers have been long-term partners of Iranian textile companies. With export to Iran in 2015 totaling 6.4 million Swiss francs, Switzerland remains a significant provider of technology to the country and is anticipating the Iranian industry to account for a larger share of its global export sales total of more than a billion Swiss francs in the coming years.
The textile industry of Iran is ready for a new beginning and determined to achieve future progress in technology and global market penetration following the recent ending of international sanctions which hampered its development. Transfer of funds between the two countries was one of the major hurdles during the sanctions period.
The Iranian textile industry welcomes Swiss cooperation. In the recent past, the industry had had to rely on technology from low-level suppliers in other countries. Companies in Iran are hungry for both know-how and the latest technology in areas like synthetic fiber production and melt spinning which is part of a critical and high value added market. And they feel Swiss companies are ideal for meeting these requirements.
Delegates from the two countries have had frequent exchanges of technical and business information.
India is working to develop Bt cotton genes that can be integrated into traditional varieties and be made available to farmers as a viable alternative to the current technology, which is largely sourced from Mahyco Monsanto Biotech.
Historically multinational companies’ research budgets have far outweighed that of Indian research agencies. This project will have to address that because translating genes into commercial products is a huge challenge. Cotton is the only genetically-modified seed that’s legally allowed in India. Genetically modified food crops such as brinjal and mustard, which are in advanced stages of regulatory clearances, are yet to become available to farmers due to stringent opposition by anti-GM activists.
There are already several genes available in various labs and stages of development, but the aim is that India should not be dependent on foreign technology. While Bt cotton has always been controversial, it is now in the throes of a new controversy with the way seed companies and seed-technology companies such as MMB share royalty, technology and determine the price at which farmers buy cotton seed. There are different opinions on whether seed tech companies have the right or are obliged to license their technology to seed companies on request.
R Ramakrishnan is now the India head of Dornier, Germany-based company which is a market leader in weaving systems for technical fabrics and film stretching lines. Ramakrishnan, an electrical engineer, has worked for the subsidiary since its foundation. Thanks to his extensive professional experience, from being a service technician to head of customer support, he has acquired expert knowledge in weaving machines. In the complex world of weaving and special machines with constantly rising customer requirements, he has his special focus on finding satisfying solutions for Dornier customers.
In order to retain its lead in the textile and plastics industries, about eight per cent of Dornier’s annual turnover is spent on research and development. This, in addition to creative engineering work, thorough knowledge of technological context and customer proximity, contributes largely to the outstanding leadership of the family-owned company.
In December 2000 Lindauer branch of Dornier in Mumbai was opened as a sales office. Five years later Dornier Machinery India was founded as an independent subsidiary. With nearly 5,000 new and second-hand weaving machines, both rapier and air-jet, Dornier has been very successful in India and has also emerged a market leader in the division of film stretching machines for polyester films.
