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The latest edition of Intertextile Shanghai Apparel Fabrics-Spring Edition 2015 opened at a brand-new venue ‘the National Exhibition and Convention Center’ in Shanghai on March 18. The three-day fair has a record number of exhibitors participating this time and there is buoyancy among exhibitors and visitors. Over 2,600 suppliers from 24 countries and regions against 1,469 last year, are participating in the biggest ever Spring edition.
“The extra space we have allows us to not only welcome more exhibitors for our buyers to source from, but also to hold concurrent fairs alongside Intertextile Shanghai. And being located closer to the textile manufacturing hubs in the areas surrounding Shanghai, we expect more quality domestic buyers to attend. Plus, with the addition of CHIC this year, as well as the return of our Yarn Expo fair and PH Value, we now cover the entire textile value chain, something both exhibitors and buyers here can benefit from,” said Olaf Schmidt, Vice President, Textile and Textile Technologies at Messe Frankfurt, in his inaugural speech.
Country pavilions and special zones
Various overseas exhibitors are exhibiting their range through different pavilions like the
SalonEurope, Milano Unica Pavilion from Italy, the Portugal Pavilion, the Germany zone, and the France and Premium Wool zones along with country and region pavilions from Japan, Korea, Pakistan and Taiwan, as well as the Texprocil Pavilion from India. For the first time at an Intertextile fair, the Origin Africa Pavilion from Kenya is also present and the Verve for Design zone has doubled in size compared to the 2014 Spring fair. This area features design studios from Australia, France, Hong Kong, Italy and the UK displaying their creative and original fabric pattern designs.
While Verve for Design returns to the fair this year, the All About Sustainability marks its debut after its popularity at last October’s Autumn Edition. This zone is in response to increased interest on sustainability in the industry, especially from China in recent years.
Trend forums and seminars
This year’s fringe program is again keeping the industry up to date on latest trends, market information and more. Four international and Chinese Trend Forums are providung guidance for next season’s trends, with the Intertextile Directions Trend Forum designed by experts from the around the world, and the Fabrics China Trend Forums focusing on menswear, ladies wear and colours.
A series of seminars is also being held, with speakers from both China and abroad delivering informative lectures and presentations on design and trends, technology, sustainability issues, and market information and business strategies.
Three concurrent textile industry events are also taking place at the same venue. Yarn Expo Spring, PH Value previously known as the China International Knitting Trade Fair and CHIC, the 23rd China International Fashion Fair are also being held from March 18 to 20. www.intertextileapparel.com.
Southern India Mills’ Association (SIMA) has appealed to the Union government to take a quick call on foreign trade policy having textile and clothing -sector specific measures to help the segment explore opportunities. SIMA chairman T Rajkumar says with rupee’s fall against the Euro negatively affecting business, India is losing business opportunities to countries such as Pakistan, who enjoy duty free access to the European market. The industry body has appealed to the government to make benefits under the focus market incentives scheme to be competitive till the country enters into free trade agreement with the European Union countries, the US and China.
Further, it has demanded Rs 3,500 crores for the ongoing Technology Upgradation Fund scheme to meet liabilities of the last three quarters and for the next financial year and another Rs 3,000 crores for pending cases under the scheme. It has also asked for a reduction in excise duty on manmade fibres from 12 per cent to six per cent on par with cotton and removal of import duty and special additional duty. The industry also sought removal of six per cent excise duty on shuttleless looms.
The association further appealed for a reduction in cost of coastal shipping transport by 20 per cent to 30 per cent by providing exemption from fuel duties and sea fare taxes.
www.simamills.org
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After the government in Cambodia ordered an increase in wages of garment workers, western apparel companies, are seeking better deals from other destinations. The Southeast Asian country's garment and textile exports increased 1 per cent in the January-November period of 2014, to $4.52 billion, according to the Garment Manufacturers Association in Cambodia. Full-year figures have yet to be released, but the industry expects a single-digit growth.
Grand Twins International, Cambodia, a Taiwanese garment company's local unit reported a 12 per cent decline in 2014 to roughly 230.7 billion riel ($57.1 million). Net profit plunged 52 per cent to around 14 billion riel. The industry started suffering after labour disputes hit it in 2013, with workers’ agitation leading to large-scale strikes around the country for increase in wages. Some of the demonstrations led to riot like situation. To ease tension, the government increased monthly minimum wage from $61 to $80 in 2013, to $100 last year, and to $128 in January. After adding other benefits like housing assistance, transportation and other allowances, a worker’s minimum earning reach to more than $150.
However, it is much higher compared to neighboring Vietnam where the highest minimum wage in urban areas is around $140 and its productivity is 30 per cent higher than Cambodia. So, companies like Gap, H&M, Walmart and other are moving their orders from Cambodian factories to other destinations that offer lower production costs.
www.gmac-cambodia.org
Myanmar is continuously working to banish the unfavorable image of its textile industry and improve the sector to sustain business. To spruce up its image, the country plans to host seminars for European companies. The first ever code of conduct for the country’s apparel sector was released recently as a guide for best practices and responsible corporate behavior. Employee contracts are not always a part of the country’s business culture. Some factories need to improve this. Some still need to make sure there is an adequate fire safety plan and that working hours don’t exceed the maximum allowed by law.
The country’s apparel sector currently employs at least 3,00,000 workers. Myanmar’s garment sector is growing rapidly. Apparel product types and production options available are significantly more diverse than they were even a year ago.
The industry is increasingly establishing itself as a good production base for medium quality sportswear and fashionable jackets and coats. Casual trousers, skirts, blouses and baby apparel products are also produced. Most new factories produce for the EU market. Corporate social responsibility is crucial for Myanmar, not only because brands want to see compliance that jives with international standards but also because better working conditions encourage factory workers to be more motivated and satisfied in their jobs, which itself results in improved factory productivity.
India's cotton production could be lower than initial estimates due to reduced cotton yield in Andhra Pradesh and Karnataka. The yield has been affected due to lack of irrigation in view of erratic power supply. Cotton production in Andhra Pradesh is likely to be at least 50 per cent lower.
Productivity in Maharashtra too has been affected due to dry weather during the crop's crucial growth period. There have been lower arrivals of cotton in markets across the country. One reason could be farmers are holding back due to lower prices. But the other reason could be a drop in production.
Cotton arrivals as of December 25, 2014, dropped to 88.10 lakh bales since the beginning of the current season on October 1 as against 117.89 lakh bales during the same period a year ago. Arrivals in Karnataka are down at 2.68 lakh bales compared to 3.62 lakh bales a year ago. Arrivals in Andhra Pradesh are lower at 13.04 lakh bales compared to 18.51 lakh bales a year ago. In Maharashtra, arrivals are down by nearly 50 per cent at 14.17 lakh bales.
Strong indications of increased cotton yarn exports to China are expected to boost sentiments in the Indian cotton yarn and cotton markets. Cotton prices are expected to remain up in the coming months. Cotton yarn is also likely to find support in the domestic market. Imports of cotton yarn by China during January 2015 have increased. The import volume of cotton yarn in January 2015 into China increased 20.41 per cent on an annual basis. China’s imports rose 5.5 per cent compared to December 2014.
India has a 32.28 per cent share of cotton yarn in the Chinese market, the largest. India is followed by Pakistan (27.03 per cent) and Vietnam (18.54 per cent). India expects February and March exports to China to improve further. Cotton prices are ruling higher in China compared to India, so Indian cotton yarn is competitive in the Chinese market. Textile mills in China prefer Indian cotton yarn to keep their cost of production under control.
Traders in India are expecting cotton yarn prices to improve from next month. Anticipation for better exports and summer demand from local mills can boost market sentiments. Local mills are buying yarn to meet their immediate demand. Heavy arrivals of cotton are likely to push prices lower but they would prefer buying for a longer period of consumption.
Vietnam earned $3.4 billion from apparel exports in the first two months of 2015, up nearly 18 per cent against the same period last year. The sector had a goal of achieving an export turnover of $28 billion in 2015, up 16 per cent compared to the previous year.
The US, Japan and the Republic of Korea are the three largest importers of Vietnam’s garments. Apparel exports to the US are expected to reach $11 billion this year, a growth rate of 13 per cent. When the EU-Vietnam free trade agreement is signed, tariff reduction, from 12 per cent to 0 per cent, will facilitate Vietnam’s apparel exports to the European Union.
The first SWITCH Asia roundtable and networking event will take place in Myanmar, March 30 to 31. It will focus on sustainable development of the garment and textile industry in Asia with Asian policymakers as well as garment industry associations, manufacturers and importers. It is being held in association with the International Labor Organization.
Discussions will center around sustainable supply chains; opportunities and challenges for a sustainable garment and textile sector in Asia; best practices with a potential for replication in Asia; the role of consumers; sustainable competitiveness strategies at the regional level; and the relation between the garment sector and sustainability, CSR and social development.
Keynotes include a presentation on regional strategies and changing dynamics to sustainably develop garment production. The sessions will also cover sustainability, productivity and factory issues in garment manufacturing targeting Asian and European markets, supply chain management for sustainability, sustainable consumption and production in the garment and textile industry, and maintaining competitiveness within and across regions.
Since 2008, the SWITCH Asia program has been supporting 16 grant projects in Asia’s textile and garment sectors, ranging from CSR to cleaner production, product labeling and certification. SWITCH Asia was launched in 2007. It promotes sustainable consumption and production among consumers, small and medium sized enterprises and Asian policy makers in 15 Asian countries, from China and India to Bangladesh and the Maldives.
www.switch-asia.eu/
Low wage coupled with lack of financial help from the government has take a toll on handloom weavers in Bangladesh. They are now forced to shift to other professions. As per the Bangladesh Handloom Board (BHB), the handloom industry which is a major source of earning for many rural people is passing through hard times. Weavers from rural areas are withdrawing from traditional handlooms due to a lack of capital. The picture of the handloom industry is the same in every part of the country. About 0.129 million handlooms were closed down (made inactive) over the last three decades due to fund crisis, throwing over 0.10 million weavers out of employment. Over 11 million people are employed in the handloom industry, which meets nearly 50 per cent of the country’s fabric requirement, the data said.
Insiders feel that value addition by the handloom sector stands at Tk 10 billion. It meets over 40 per cent of domestic textile requirement, accounting for 63 per cent of textile production. The handloom industry meets the common people’s requirements for saris, lungis, bed sheets and the like. There are over 0.5 million handlooms in the country according to the handloom census of 2003. Of the amount, some 0.129 million are outmoded till date, sources said.
As per Hafiz Uddin, General Manager of BHB, the BHB is trying its best to revive the country’s handloom industry by providing microcredit to weavers as per government directive. BHB has started over 50,000 inactive handlooms through ongoing microcredit program.
