FW
India is set to beat China and become the top cotton producer this year. China will be ousted from the number one position for the first time in over 30 years. India will produce 30 million bales of cotton in the season that started August while China will produce 29.5 million bales.
The reduction is largely due to fewer incentives for farmers to plant cotton in China’s eastern provinces. Total area in China is projected to decline 11 per cent while for India, the late monsoon will benefit cotton. Some areas originally expected to be devoted to alternative crops, with an earlier planting window, are now projected to move to cotton.
The relatively low profitability of cotton in China is due to the government’s decision to abolish its temporary purchasing policy to prop up prices. The cotton growing area in Yangtze River basin and Yellow River basin has gone down by about 12.1 per cent and 14.5 per cent. The growing area of cotton in China is expected to continue its declining trend in the next few years. The shrinking growing area will result in a big supply gap in the cotton market.
However, China will remain a big consumer of cotton due to its large population, growing incomes and increasing export demand. This can create a big opportunity for India to step up its cotton and yarn exports to China.
Leading sports-lifestyle brand Nike has launched its second garment product dyed using the waterless CO2 dyeing technique pioneered by Dutch company DyeCoo Technology. The company's Tennis ColorDry Polo was dyed without using water, which also eliminates the need for added chemicals during the fabric dyeing process. It was made using 96 per cent recycled polyester fabric and each polo T-shirt is made with the equivalent of 11 plastic bottles.
The new Tennis ColorDry Polo is the company’s initiative towards making use of sustainable materials and new manufacturing technologies so that there is lower environmental impact. The garment also helps the player deliver superior performance. CO2 dyeing involves heating carbon dioxide to above 31°C and pressurising it to above 74 bar – at this point it becomes supercritical, since above this point, distinct liquid and gas phases do not exist and, consequently, CO2 has the properties of both a liquid and a gas.
DyeCoo's dyeing machine incorporates a stainless-steel chamber where the supercritical fluid CO2 - rather than water - is used to dye textile materials. The supercritical fluid CO2 swells hydrophobic man-made fibers and this process enables modified disperse dyes to diffuse within the fibre. In the same chamber, fabric drying and the removal of excess dye are also carried out. www.nike.com
Alliance for Bangladesh Worker Safety, says that its goal is to create a credit facility of $20-35 million via five local banks. The facility would be in US dollar denominated currency, enabling lower interest rates. The group will provide technical assistance to the financial organisations on remediation progress to encourage banks to extend loans to the Alliance-linked factories, especially small and medium enterprises besides covering administrative and startup costs and up to $2.0 million in a first-loss guarantee, it added.
America’s VF Corporation, teamed up with International Finance Corporation (IFC) in September last year to provide $10 million for financing fire and building safety improvements in the RMG sector. Three local apparel makers have already got funds under the move.
As for post-inspection activities, initial assessment of fire, electrical and structural integrity were conducted in all its listed 647 factories, while 300 corrective plans were approved. The official review panel closed down five factories while 12 were partially closed and two are operating reducing their load.
The Alliance has also announced its plan to conduct its final assessment in at least 60 units by July next following its verification programme in line with the corrective action plans in more than 100 units. The Alliance is concerned that its efforts have slowed due to current violence, turmoil and uncertainty. It appealed all parties who are committed to a vibrant and successful Bangladesh to resolve differences through dialogue rather than violence, says the statement.
The Chhattisgarh government has decided to increase production of Kosa silk in order to provide livelihood for people residing in rural areas of the state. The chief secretary Vivek Dhand has sent out letters to all district collectors to support the measure, so that a committee can be formed in every district to implement the proposed plan.
The state government is in the process of chalking out an elaborate five-year plan for promotion of Kosa silk production in Chattisgarh and all district collectors have been asked to submit a report on production prospects of Kosa and silk in their respective regions. There would be a lot of focus on planting Kauha (Arjun) and Saja saplings during the monsoon season to promote the Kosa silk production drive. The government expects the plantation to benefit since training would be provided in weaving threads at the Kosa production site.
State Horticulture Department will host technical and training programs for the people involved in the Kosa and silk trade. The government has also directed to develop women self-help groups (SHGs) under National Rural Livelihood Mission to help them with the Kosa and ailk production. Chhattisgarh now one ‘Raw Material Bank’ for Tussar silk established in Raigarh district, according to the 2013-14 annual report of the Union Ministry of Textiles. The primary objective of the ‘Raw Material Bank’ is to ensure economic and fair price for the primary Tussar Silk growers.
Cgstate.gov.in
The 'hank yarn obligation', an age old stipulation obligating the textile mills to produce a minimum of 40 per cent of the yarn as hank yarn, is a deterrent to growth and threat to their economic viability. According to the textile entrepreneurs from Tirupur, though there are certain exceptions provided on the clause when it comes to production of blended and hosiery yarn, this old rule holds no significance in the present textile scenario existing in a liberalised economical condition. They wanted the obligation rule either be scrapped or reduce the obligation limit to 10 per cent.
D Prabhu, secretary of Texpreneuers Forum, points out that with the introduction of schemes like Technology Upgradation Fund Scheme, many handloom weavers have moved either to power looms or auto looms. Hence, the demand for hank yarn has come down. The textile units were forced to produce 40 per cent of the yarn as hank yarn without having adequate demand in the market.
Prabhu further says that the forum has pointed out in its representation to the Union Textiles Ministry that due to the hank yarn obligation rule, about 3.21 crore kilograms of hank yarn is produced in the state in a month against the actual requirement of 16.22 lakh kg. Scenario across the country is also almost the same. Textile mill owners are of the opinion that the report of an external agency appointed by the government to study the repercussions of hank yarn obligation on textile sector should be released soon.
Concerned with reports of federal government's decision to increase gas tariff from next month, the All Pakistan Textile Mills Association (APTMA) has urged the government to review this decision in the best interest of the domestic industry.
Chairman, APTMA Sindh and Balochistan Region, Tariq Saud, has said the proposed increase in gas tariff from April 1, 2015 by 64 per cent per MMBTU is punitive and unjustified. The huge raise in tariff would cripple the entire textile value chain, which is using gas for power generation and processing, he said adding that the decision would erode viability of the export-oriented industry, as it was already hit hard by the over-valued currency phenomenon.
An increase by Rs 262/MMBTU would push up gas prices to Rs 750/MMBTU. It would push up the proportion of energy in the cost of production by another 20 per cent, resultantly the country’s textile products would become uncompetitive in the international market, Saud added. He also demanded the government to remove inefficiencies in the system to ensure adequate and non-discriminatory supply throughout the country.
The tariff increase would divert an extra Rs 67 billion for the gas utilities, which could lead to thwarting of any effort to improve efficiencies in the system. The government needs to come up with a workable solution and bring the energy cost at par with competitors in the region, as sizeable quantities of basic textile from regional competitors had already started making inroads into domestic market, threatening the very existence of the local industry, he said.
The growing complexity of the fashion industry is forcing companies to transform from traditional to more modern business models. This led Lectra, the world leader in integrated technology solutions dedicated to industries using soft materials, fabrics, leather, technical textiles and composite materials, to plan the ‘Lectra Fashion PLM V4’.
As Daniel Harari, Lectra CEO points out, fashion companies need to adapt their ways of working to be agile enough to offer compelling products to please consumers and reach the market quickly. Lectra provides companies with business expertise, technologies and change methods to meet the challenges of today’s modern fashion market and remain competitive. Lectra Fashion PLM is the embodiment of these pillars.
Lectra Fashion PLM was developed to improve teamwork from design to production and to help fashion companies build better products faster while boosting overall business performance. Lectra Fashion PLM focuses on collection planning and calendar management, Lectra R&D teams partnered with South Korea’s leading fashion company Samsung-Cheil Industries and DBApparel, the French market leader for branded intimate apparel.
Lectra develops the most advanced specialised software and cutting systems and provides associated services to a broad array of markets including fashion (apparel, accessories, footwear), automotive (car seats and interiors, airbags), furniture, as well as a wide variety of other market sectors, such as aeronautical and marine industries, wind power and personal protective equipment. Lectra serves 23,000 customers in more than 100 countries with 1,500 employees and $281 million in 2014 revenues. The company is listed on Euronext.
The International Apparel Federation (IAF) is all set to host the 31st edition of World Fashion Convention in Istanbul. With organizing partner TGSD and support from IHKIB, this year’s World Fashion Convention will be held concurrently with the 8th Istanbul Fashion Conference on October 14 and 15, 2015.
IAF President Rahul Mehta recently visited Istanbul to meet Hikmet Tanriverdi, President of the Istanbul Textile and Apparel Exporters Association (IHKIB) and Şeref Fayat, President of the Turkish Clothing Manufacturers' Association (TGSD). Elaborating on the reasons behind finalizing Istanbul as destination for World Fashion Convention, Mehta said, “IAF is creating bridges between continents. We aim to provide maximum value to our members in international cooperation. Manufacturers, retailers, brands, solution providers and associations are working together to improve our industry together. That is why we are hosting this year’s convention in Istanbul, close to the bridge that is literally connecting the continents.”
He further added, “IAF, representing more than 20 million employees in over 50 countries, is happy to use this opportunity to support Turkey’s $30 billion export target in 2023. The theme this year is ‘Making it better’. The industry faces multiple challenges which combined create downward pressure on clothing’s value perception of consumers. The IAF World Fashion Convention will look into the future and highlight the current positive developments that are rejuvenating and strengthening our industry. We will look at investments in local skills, investments in CSR and sustainability, in products, in supply chain management and in marketing.”
With the 31st edition of the IAF World Fashion Convention coming to Istanbul, Turkey will be in the center stage of international apparel industry. IHKIB President Hikmet Tanriverdi said, “We hope to make significant contributions to the world apparel industry.” Iafnet.eu
Marks & Spencer, is working hard to push home its most ambitious project of overturning more than a century of retail history by taking full control of its supply chain. M&S has been undergoing many changes to adjust to changing demands of its, mainly middle aged customers. After hiring new designers, overhauling its online offering and giving a facelift to stores.
M&S has always relied on third party suppliers to create, manufacture and ship most of its garments. Taking control of the supply chain means a radical departure to create more flexibility in its quest to source faster. Long-term relationships with those mostly British-based firms, based on big orders and long lead times, helped M&S keep prices down and build a reputation for quality. But as its most loyal customers – women aged 50-plus – have become more fashion-conscious, middlemen have hampered M&S’s ability to quickly refresh supplies of fast-selling items before shopper interest tails off.
Shoppers often found the clothes were sold out in their size or were not appropriate for the weather even as new M&S women’s wear collections won praise from the fashion press. In contrast, nimble retailers like Zara-owner Inditex , H&M and Next, which have more direct control over factories, replenish their stores faster and offer a more frequent turnover of styles.
After a mild winter and delivery problems at the new online distribution centre hit Christmas trading, leading to a 14th consecutive quarterly sales decline in the clothing side of the business, pressure mounted on M&S Chief Executive Marc Bolland. But investors seem prepared to give him more time after his revamp of the supply chain started to bear fruit.
While taking tighter control of the company’s supply chain started several years ago, the final push is being given by Hong Kong-based brothers Neal and Mark Lindsey, whom Bolland appointed as joint sourcing directors last year. The pair previously worked at Next, where they pioneered ‘virtual manufacturing’, a process that enables designers to produce patterns and layout plans for cutting fabric so they can give precise instructions to distant factories.
Adopting the Next model is a big shift for M&S, which until recently ordered most of its stock through so-called full service vendors. M&S has already taken control in the last few years of most logistics for the 40,000-odd shipping containers it fills a year, leaving detailed product design and factory liaison as the last jobs to come in-house.
In Vietnam, textile and garment projects would only be licensed if they are located in industrial zones and investors pledge to satisfy the norms waste water treatment, said an official of the Dong Nai provincial Planning and Investment Department in Vietnam. The country has become choosy about licensing foreign- projects. There is a growing tendency for rich provinces to say ‘no’ to projects in labor-intensive and low-value added industries like textiles and garments. While textile and garment projects are welcomed in Nam Dinh, they are being turned away in other provinces. Ba Ria–Vung Tau, Dong Nai and Binh Duong provinces in the south and Hai Duong province in the north have been restricting projects in the field.
Nam Dinh provincial authorities reported that the locality has licensed 32 textile and garment projects with foreign funding. Of the four Chinese-invested projects licensed recently, two are in textile and dyeing segment, registered by Thien Nam Sunrise and Yulun Vietnam. The other Chinese enterprises, Luenthai and Sanshui Jialida, teaming up with Vietnamese Vinatex, are moving ahead with a $400 million project on developing Rang Dong, an industrial park reserved for textile and garment companies.
Other provinces too are considering adding textile and garment to the list of conditional business fields. Hai Duong is the latest province to be ‘reconsidering’ textile and garment projects. The provincial authorities have decided to temporarily stop trying to attract FDI to six business fields, including textiles and garments.
