FW
The East African Community (EAC) has agreed to a three-year tax waiver of duties and value added tax on textile raw materials, fabrics and accessories that are not available locally.This step is expected to reduce the cost of production and also boost local manufacturing.The six-nation East African Community comprises Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.
The EAC will now shift to a four-band tariff structure for cotton, textiles and apparels to promote cotton yarn and fabric production. While imported raw materials not available in the region would attract zero duty, intermediate inputs would be taxed at ten per cent, fabrics at 25 per cent, and readymade garments at 40 per cent.
The EAC has also agreed to adopt a three-year strategy for a gradual phase out of used clothing and shoe imports. This will be done through increased tax on these products and categorisation of products per bale of imports.
The partner states have also decided to establish cotton lint banks to ensure availability of cotton lint for spinning mills and downstream value addition.
All partner states producing cotton lint will set a target of at least 30 per cent local value addition to domestic cotton lint. This threshold would be increased to 50 per cent within five years.
Dyeing industry in total confusion as due to the shortage of gas and electricity, compulsion of effluent treatment facilities and fund constraints have left the dyeing industry here in total disarray.The picture of new investment in the dyeing sector over the last few years is very frustrating while some units have been shut down for these reasons.
According to the industry sources 5 closed dyeing and textile factories with the production capacity of 100 tonnes per day invested an estimated amount of Tk 2 billion it further stated that boiler is the production unit in the dyeing industry which is run on gas. A dyeing factory needs uninterrupted gas supply for 10-12 hours for running the same. But the gas distribution authority in Chittagong neither supplies required gas to running units nor gives gas connections to new ones.
To invest in the dyeing industryno entrepreneurs have come forward as expected due to lack of uninterrupted gas supply and new gas connections, says Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).Frequent power outages, changes in the Bangladesh Bank regulations and excesses of the environment department for setting up effluent treatment plants (ETPs) in the factories have added to the woes, they added. It was also said that severe gas shortage has forced the unit to suspend production. The industry was set up at a cost of Tk 300 million with bank loan.
On the other hand, many more industries were given new gas connections in Narayanganj,. No small businesses like dyeing factories will be benefited as the cost of furnace oil is much higher in our country than that of other countriesas alternative fuel of gas and even though the government attaches importance on the import of LNG (liquefied natural gas)the production cost in the dyeing factories will go up much higher.
Simparel has launched a product lifecycle management software solution. Called PLM EVO, the cloud/web-based platform effectively redefines the user experience by enhancing design creativity and productivity, automating tasks and processes and providing easy to understand analytics that drive more-timely and better-informed business decisions across the product design, development and sourcing processes. It represents the latest evolution in Fashion PLM.
Simparel provides apparel manufacturing software solutions. It is a provider of next-generation information technology solutions for the fashion and consumer goods industries.
Available for deployment as either a standalone PLM (product lifecycle management) or as part of the fully integrated Simparel Enterprise solution, Simparel PLM EVO features a new design plug-in for Adobe Illustrator that empowers designers to launch new concepts and access materials, colors, designs and other PLM product information all right from within the popular design software. A new level of automation eliminates excessive data entry and streamlines processes and timelines. Real-time analytics built into the new system provides companies with greater process visibility and control than ever before.
The mobile-first design of the new system ensures ease of use and mobile access by internal teams, C-Suite executives, and global suppliers from their desktop, tablet and smart phone devices.
Between 2016 and 2024, the global luxury apparel market is expected to expand at a CAGR of 13.2 per cent. Big brands such as Louis Vuitton, Prada, and Versace are expanding to developing economies, which has not only improved their geographical reach but also won them a newer consumer base.
The global luxury apparel market is segmented into leather, cotton, denim, silk, and others. Cotton dominates the global market. The preference for cotton is due to its convenience in hot and humid weather in regions such as Asia Pacific and the Middle East and Africa. High cotton production in India and China has also made Asia Pacific a frontrunner in the global market.
Leather is preferred due to its durability and ability to adapt to myriad designs that characterize high fashion. The expensive nature of leather also makes it fit for luxury brands. Silk is also gaining significant momentum due to its smooth texture, softness, and the elegance it bestows on the overall design. The remarkable production of silk in India and China has also once again lent an impetus to the luxury apparel market of the Asia Pacific.
Presently Europe has a strong footing in the global market due to the presence of several luxury brands and houses that have been in the business for several decades. However, Asia Pacific is expected to have a strong demand for luxury apparel over the coming years.
Vietnam's Ho Chi Minh City will build large centers for designing fashion, trading garments, textile material and accessories to become the country’s future garment, textile material and accessory hub.
Ho Chi Minh City has set targets of meeting 80 to 90 per cent of Vietnam's demand for garments and textiles by 2020 and supplying 100 per cent of accessories for the country’s garment industry. However Ho Chi Minh City will not establish large-scale garment and textile industrial parks, because the existing ones can accommodate all relevant enterprises.
According to approved plans, the city has 23 industrial parks and export processing zones, of which 17 are operational. Most garment and textile firms are now located in the export processing zones of Tan Thuan and Linh Trung, and the industrial parks of Tan Thoi Hiep, Tan Binh, Tan Tao, Tay Bac Cu Chi and Dong Nam.
Vietnam is one of the five largest textile and garment exporters in the world. However the country is also one of the world’s leading importers of fabrics and materials. The shortage of high-quality materials for production is the biggest barrier to Vietnam’s textile and garment industry, hindering the country from taking advantage of free trade agreements.
The 2017-18 world cotton projections include increases in global production, consumption, and ending stocks, while trade is reduced two per cent. Production is raised for Pakistan, China, and Mexico based on higher estimated planted area. Higher global consumption reflects increases for China, India, and Pakistan, which are largely due to higher domestic supplies.
China’s consumption is raised in both 2016-17 and 2017-18 as sales from the national reserve and steady imports suggest that consumption there is stronger than previously estimated. A reduction of nearly 8, 00,000 bales in world imports results primarily from lower expected demand by Pakistan and Mexico. Exports are lowered for the United States, India, Brazil and others.
US cotton projections for 2017-18 show a reduction of 5,00,000 bales in exports from May to 13.5 million, as higher anticipated foreign production is expected to reduce global import demand. Beginning stocks, production and domestic mill use are unchanged. Accordingly, ending stocks are now projected at 5.5 million bales which, if realized, would be a nine-year high.
The projected range for the 2017-18 marketing year average farm price of 54 to 74 cents per pound is unchanged from May while the price estimate for 2016-17 is reduced marginally to 68.5 cents.
Knitwear garment exporters from Tirupur are keen on doing business in the wool sector. Woolmark is imparting knowledge and technical skills about Australian merino wool to manufacturers and exporters in Tirupur. The company conducted a workshop on the natural properties of the fiber with a view to up-skilling their technical expertise and a few companies had successfully developed samples of garments made from wool.
Woolmark wants to encourage manufacturers and exporters to use merino wool as a fiber and will provide them the necessary technical support. Tirupur units in turn are interested in developing fabric using this fiber throughout their supply chain. Their joint efforts are expected to help produce and position merino wool garments in a different light and drive consumption locally as well as globally.
Apart from sweaters, wool can be used in the manufacture of sportswear, T-shirts and casuals, which can be worn in both hot and cool climatic conditions.
Woolmark is a subsidiary of Australian Wool Innovation, a not-for-profit enterprise that conducts research, development and marketing along the worldwide supply chain for Australian wool on behalf of about 55,000 woolgrowers.
The company hosted a fashion show in Delhi recently to showcase garments made of Australian merino wool through a farm to fashion journey.
Creating a new cotton futures contract took Intercontinental Exchange years of planning, multiple rounds of wrangling with cotton merchants and finally an act of US Congress — but the exchange operator has quietly pulled the plug just 18 months after its debut.
The global product was designed as an alternative to the US cotton futures contract that has been the industry benchmark for decades, but whose limitations have contributed to wild price swings.
The new product, however, failed to take off, underlining the challenge of creating new derivatives products from scratch. Despite early expressions of interest, the global contract never attracted much volume after its launch in November 2015. The last trade took place a year ago.
The failure of the world cotton futures contract speaks to the difficulty of generating interest in a new derivatives market when liquidity is concentrated in another one.
Merchants had advocated for a world futures contract to overcome the constraints of the longstanding benchmark, which allows only US-grown bales to satisfy delivery obligations. When domestic supplies are tight, market squeezes and wild price moves sometimes result.
Despite its drawbacks, the ICE’s US cotton futures contract has registered record open interest of more than 2,00,000 contracts this year.
The organisers of the upcoming Apparel Textile Sourcing Canada (ATSC) show, the premier international apparel and textile sourcing event in Canada, are set to unveil the latest innovations in smart apparel and textiles on June 14, 2017. It will be a sneak peek of trending technologies that will be showcased at the ATSC show that will begin from August 21, 2017.
The technologies to be unveiled include self-heating winter coats and boot insoles, smart shirts for men, women and children that monitor everything from steps and calories, to breathing and heart rates, leg bands that measure muscle performance and help avoid injuries, LED-backlit apparel and textiles and socks that improve balance, and multi-sensor insoles that help prevent falls.
Representatives from over 20 countries will visit the ATCS show to exhibit their trending apparel and textiles. The participation of a rapidly-growing number of local and international exhibitors demonstrates confidence in the Canadian economy and the importance of the apparel and textile industry both in Toronto and nationally.
ATSC will also feature three full days of seminars, panels and sessions by leaders in industry, government and fashion, and a fashion runway event showcasing Canadian student and international exhibitor designs.
The trade show connects buyers to manufacturers from around the globe. This is meant to give a boost to small businesses, retailers, manufacturers and designers across Canada.
Garment traders in Jharkhand may close shop for a day in protest against the five per cent Goods and Services Tax (GST). They say it is extremely difficult for a trader doing his garment business in almost no space and sometimes at almost no profit to install a set-up for GST compliance. The systems, training and education and so many other things associated with it would only force traders to exit the business if GST is imposed on garments.
The Jharkhand Wholesale Garment Traders Association has strongly opposed the five per cent GST on garments saying that garments are a basic need of the poorest of the poor and imposing any tax on garments would be similar to imposing a tax on shrouds.
GST would benefit the industry in terms of lower logistic costs, low lead times, make pan-India selling easier by removal of forms needed, reduce administrative hassles by creating a single tax window, reduce costs by allowing taxes in all expenses to be adjusted etc.
However there a few oversights and anomalies which need to be corrected. Textiles is a very fragmented and unorganised industry. Mostly manufacturers just do a single process and hence a lot of job working is involved. Pre GST it was recognised as a manufacturing activity and exempt from service tax. However such exemption is missing in the current GST exemptions for services. This means it would have a 18 per cent GST rate which would make the job work segments and their principals uncompetitive against large composite mills who will not have this impact due to in-house production.
