FW
India’s cotton output for the 2015-16 season, beginning October 2015, has been estimated at 345 lakh bales. Adding last season’s surplus, the total cotton supply would be 432.60 lakh bales for the season. Of this, domestic consumption is projected at 304 lakh bales, which will leave a surplus of 128.60 lakh bales.
Up to February end, cotton arrival is estimated at 245 lakh bales, which is 11.31 per cent lower than 276.25 lakh bales of arrival during the same period last season. The lower arrival this season indicates a lower crop, and if the trend continues, the estimate will have to be further revised downwards.
Pest attack in parts of Punjab and Haryana and drought for the second consecutive year in some areas have reduced cotton yields this season. Nevertheless India is the largest cotton producer in the world. Cotton production in China and the US has been estimated to be lower by 13.3 per cent and 17.7 per cent respectively than that in the previous season.
Pakistan has replaced Bangladesh to emerge as the largest buyer of Indian cotton in the October-December 2015 quarter. The second biggest buyer of Indian cotton is Bangladesh.
With increasing internet penetration in China (over 53 per cent of the total 1.37 billion population), visits to shopping malls have been digitised for the convenience of millennial, the drivers of online shopping, who admit to impulsive shopping online a trend that mirrors in India as well.
The Chinese e-commerce giant Alibaba, one of the world's largest retailers, has been celebrating the country's ability to buy in abundance through its shopping fests since 2009.
Alibaba Group Chief Marketing Officer Chris Tung says that festivals are not just about offering consumer’s products at great prices, but are platforms for brands to explore newer and more innovative ways of engaging with people. It is to showcase how technology presents an opportunity for consumer engagement.
The company has brought in "new retail", which is equipping brick and mortar stores with technological mediums, allowing buyers to scan product barcodes for information about them, pay for them digitally, and even have them delivered at home.
Through its 11.11 shopping festival, held on November 11 each year on Singles' Day, the company has turned the country's purchases into a spectacle for the world.
The online shopping festivals, particularly, have succeeded in turning non-believers in digital purchasing into believers who are eager to grab the deals on offer.
India's leading e-tailerFlipkart and Amazon, along with other digital platforms, have managed to get Indians not just from metros, but also from smaller towns to go on an online shopping spree largely through their shopping festivals.
The average Indian shopper, who was known to put his/her money on a product -- that too a brand he or she has known for long -- only after making a store visit, was suddenly seen waiting for Big Billion Day (Flipkart's online sales event) or Amazon's Great Indian Festival to purchase a mobile phone.
From kitchen knives, plastic containers, televisions, refrigerators to smart phones and even gold and diamond jewellery, Indians have now turned themselves into devoted digital consumers who boldly shop for their daily needs, luxuries and fancies online.
H&M is joining forces with artist M.I.A. for the fashion retailer's latest sustainable campaign, World Recycle Week, an ambitious garment collecting movement. Starting from April 18 to 24, H&M, the first fashion company to launch a global garment collecting programme, aims to collect 1,000 tons of unwanted garments from customers in its more than 3,600 stores worldwide.
This is part of H&M's goal to close the loop in fashion by recycling garments to create reusable textile fibers. To help raise awareness, M.I.A. has filmed an exclusive new video for H&M highlighting the environmental impact of clothing going into landfills around the world. The video will debut on 11 April at hm.com.
H&M intends to create a viral campaign to generate a global recycling movement to mark the first ever World Recycle Week. The video, starring M.I.A., features a diverse supporting cast including models, actors, dancers, and social media mavens, who will take to their social channels leading up to World Recycle Week, encouraging everyone to participate in ‘#HM rehaul’ video call to action.
The term ‘rehaul’ is being exclusively used as the antithesis to a blogger haul video, which typically show items recently purchased. #HMrehaul videos will exhibit customers around the world filming the garments they intend to recycle followed by a drop off at their local H&M store's collection bin, available in every store worldwide.
Recently, the European Commission’s DG GROW invited representatives of the textile, fashion and creative industries to a workshop on the EU funding opportunities for the sector. More than a hundred participants attended the event with the aim to get a better understanding of practical ways to participate in the European Fund for Strategic Investment (EFSI) which drives the Investment Plan for Europe.
Director for Innovation and Advanced Manufacturing from DG GROW Sławomir Tokarski stated in his opening speech that the EFSI, operational since one year, has already landed about €50 billion in the European business. The EFSI supports investments in real economy - infrastructure, education, research and innovation, as well as risk finance for small businesses.
Industry representatives were invited to present projects to be submitted for the EU funding. The European silk industry, approached by EURATEX, unveiled its project ‘Towards European Sericulture’.
Emphasised, Philippe de Montgrand, President of AIUFFASS Silk Section, that silk industry in Europe has a long tradition combined with a strong capacity to innovate. About 200 silk producing SMEs are concentrated in Lombardy (Italy) and Rhône-Alpes (France) providing 20,000 direct jobs. Currently, raw silk supplies mainly depend on China and the EU fashion brands and silk manufacturers are concerned by the long term access to high quality raw silk and the risk of supply shortage.
The ninth edition of Milano Unica Shanghai, the third appointment of the new Milano Unica World calendar is open. Following edition two of MU New York and after the success of the 23rd edition of Milano Unica, the textile and accessory exhibition opens in China targeting the same great success obtained last October 2015: ‘The best edition ever,’ according to President Ercole Botto Poala.
Due to the Chinese new year celebrations, the reduced participation of the Chinese businesses in Milan, totally expected but it will be certainly offset by the clients interested in visiting the 78 Italian businesses, among the world’s most important, showcasing their SS 2017 collections.
In October 2015, with a three per cent increase on the already excellent results achieved in the March 2015 edition, more than 4,000 selected operators visited the trade show, attracted by Italy’s glamorous image.
Milano Unica Shanghai, the showcased textiles include an array of materials differentiated by a variety of quality products and styles, enough to fully satisfy customer demands. Experimentation, a taste for beauty and a careful eye to sustainability are the key aspects of the super-luxury precious materials re-interpreted in a technological vein. Fabrics feature high performance and the finest, almost seductive, workmanship in handmade embroidery and an exclusive array of prints.
India’s Largest Quality Vocational Training Provider for the Apparel Industry, Apparel Training & Design Centre (ATDC) was awarded ‘Best Vocational Training Provider (VTP) Training 2016’ by Associated Chambers of Commerce and Industry of India (ASSOCHAM) at ‘Award-cum-summit Skilling India: The Way Forward’ at a function held in New Delhi.
ATDC has been selected for this award for its contribution to large scale quality skilling of Indian youth specially women in rural and semi urban areas for meeting the rapidly changing skill requirements of apparel sector with real time industry relevant skill modules and new learning solutions, thus providing wage employment for youth specially women having dedicated verticals to work with Ministry of Textiles, GOI (for ISDS Project), DGE&T (Ministry of Skill Development & Entrepreneurship, GOI) (for Longer Duration Vocational Courses) and AICTE (Ministry of HRD, GOI) & RGNIYD (Ministry of Youth Affairs & Sports, GOI) (for B. Voc. Courses).
While exporters require cycle and through put time to be brought down in the context of ‘Fast-Fashions’ approach gaining ground world-over, the domestic sector wants “Product Lifecycle Management” ‘fast-turnaround of store merchandising’, captivating visuals etc. The e-commerce/m-commerce wants fashion to meet instant gratification standard with supply chain-logistic management. ATDC is the largest vocational training provider for the textile-apparel chain offering a comprehensive bouquet of courses for ‘career’ progression in an integrated manner by creating a “step ladder-training eco-system” with clear focus on “Skilling of aspirational Indian youth”.
Chinese cotton imports in February fell 65 per cent compared to the same time last year. Cotton demand from China is slumping, thanks to heavy inventories and sluggish economic activity. In fact, China is expected to be overtaken by Bangladesh as the world’s top cotton importer in 2015-16.
Chinese cotton demand in the year to July 2016 is expected to fall to the lowest in twelve years. China is believed to have accumulated as much as 11million tons of cotton as part of a price support scheme. The country is now planning to release these supplies back on the market, but at what price, and at what speed, remains to be seen.
Pressured by sluggish global demand, cotton futures had a terrible start to the year. By late February, prices in New York were down 15 per cent from the start of the year. Chinese imports remain the key to the price outlook. Since the global inventory reduction in 2016-17 is due solely to China, the upside price potential in New York will probably remain limited for as long as China's imports do not pick up again and worldwide demand essentially stagnates.
Prices are still down about 10 per cent since the start of the year.
Indian government has reestablished the Khadi and Village Industries Commission (KVIC), the nodal agency for promoting khadi fabric in the country through a notification. Nearly 1m018 Khadi and Village Industries institutions are registered as members, while KVIC was granted deemed Export Promotion Council status in December 2006.
Five per cent of the free on board value or Rs 10 lakh, whichever is less, is provided as incentive for KVI units which undertake direct exports. In addition, KVIC encourages Khadi and Village Industries to participate in international trade fairs by subsidising 75 per cent of the airfare and 50 per cent of stall rent to augment export of their products.
In case of women entrepreneurs and institutions like ST, SC and NE States, air fare and stall rent are extended to the extent of 100 per cent subject to maximum limit of Rs 1.25 lakh each. The Ministry of Micro Small & Medium Enterprises too is implementing a number of schemes for the holistic development and promotion of khadi, according to the sources. These include; strengthening of infrastructure of existing weak Khadi Institutions and assistance for marketing infrastructure provides for renovation of Khadi sales outlets.
The reduction of VAT on cotton and other yarn has been welcomed by cotton spinning industry in Punjab. The state has around 100 spinning mills. The industry hopes to get a level-playing field with the VAT reduction and compete with the spinning industry in neighboring states.
Cotton ginners were demanding various types of tax relaxations. VAT reduction will not directly help the cotton ginning factories but it will provide some relief as demand for yarn will increase and spinning mills will increase cotton purchases. Ginning factories in Punjab have reduced to nearly 100 from 422 in 2003.
In the wake of higher VAT in Punjab, the weaving industry preferred to purchase yarn from spinners in Himachal, UP and Uttarakhand. Out of the 100 spinning mills in Punjab, ten mills with an installed capacity of 1.5 lakh spindles had closed recently due to the unfavorable tax regime.
The spinning industry was facing tough times in Punjab due to the higher VAT. Spinners from neighboring states used to sell it at two per cent VAT, but with a reduction in tax rates, the spinning industry will be able to compete.
Reduction in VAT will prove a big relief to the Punjab-based spinning industry.
Coimbatore, Tamil Nadu, has institutes devoted to industrial textiles, home textiles and medical textiles. Coimbatore is one of the major textile centers in the country. With several medium and large scale industries looking at technical textiles for diverse applications, these centers will promote innovative applications for textiles, especially using non-woven materials.
One center promotes research, encourages industry to use the machinery installed, takes up testing, imparts training, and also manufactures products for commercial use. It has set up full production lines to make wet wipes for diverse uses and needle punching coir products and is working on various raw materials to produce non-woven mats that can be used as filter in different industries.
The market size for industrial textiles in the country is Rs. 9,929 crores. For medical textiles it is Rs 4,282 crores and for home textiles it is Rs 9,274 crores. The market is growing at the rate of six per cent to 14 per cent annually, depending on the product.
In 2012-2013, import of industrial textiles was 22 per cent of the total technical textiles imported, import of medical textiles was 15 per cent and import of home textiles was seven per cent. Export of technical textiles was to the tune of Rs 7,117 crores and of this 15.1 per cent was industrial textiles, 9.9 per cent was medical textiles, and 10.9 per cent was home textiles.
