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Swiss textile machinery companies made a major impact at the inaugural ITME Africa trade show, with 12 member companies from Swissmem (the Swiss Textile Machinery Association) presenting their latest technologies. The event, staged in the Ethiopian capital Addis Ababa from February 14 to 16, featured more than 170 exhibitors from 15 countries. It was organized by India ITME Society, as an extension of its existing trade shows in India.
Post-show reports from the Swissmem companies indicated a high level of satisfaction with the organisation – and the positive impression made by the attractive design of the Swiss Pavilion. The business prospects were also said to be upbeat, with Ethiopia and neighbouring East African countries increasingly viewed as fertile ground for technological and commercial developments in textile production. The region is widely viewed as an emerging option for global apparel sourcing.
Machinery and know-how from Switzerland offers the innovative and quality-focused boost that these markets
could utilise to raise their competitiveness and broaden their appeal to international customers, according to Cornelia Buchwalder, Secretary General of the Swiss Textile Machinery Association: “Our member firms together have more than 4,000 years of cumulative experience, covering the entire textile value chain,” she said. “That means we have the power and the technological expertise to help textile manufacturers in these markets take the next step in their development.”
There were suggestions that attendance at the exhibition was affected somewhat by travel restrictions and uncertainty related to the corona virus outbreak, but reactions from the Swiss participants also included comments such as “promising”, “potential” and “exciting” – while some mentioned new sales leads and even concrete proposals.
The Swissmem exhibitors were: Amsler Tex,Benninger,Jakob Müller, Hunziker, Grob,Loepfe,Rieter, Bräcker, Graf, SSM, Saurer and Steiger Participations.
Rieter’s sales chief for this Asia-Africa region, Gerald Steiner, praised the Swiss Pavilion design and open-booth layout, as well as the visitor response: “We had good discussions with existing and potential customers and could generate new leads, “ he said. “Besides Ethiopia, East African and South African countries were also represented by visitors, while students from various textile universities were present to be updated about the latest innovations in the industry. On the whole, ITME Africa 2020 was a very satisfying event.”
Steiger Participations, the Swiss manufacturer of flat knitting machines, attended ITME Africa to introduce its own products and represent its shareholder Ningbo Cixing Co Ltd China. Steiger sales and marketing executive Carlo Corradi said: “The market of Ethiopia, with a population of more than 100 million, is considered to have good potential for the mid to long term. Various foreign textile manufacturers have already installed production units in Ethiopia, with the attraction of low production costs.” “Taking into account that it was the first international textile machinery exhibition in Ethiopia and in Africa, the quality of the various meetings with customers from Ethiopia and other East African countries was considered as very good and promising for the future. Some concrete projects are already under discussion.”
“Steiger Participations will follow up the various contacts made at this exhibition as a ‘landmark’ in the promising new markets of Ethiopia and East Africa in general. Participation at this exhibition in Africa is an investment for the future.”
Russian Fashion Council, in cooperation with partners and participating fashion designers of Mercedes-Benz Fashion Week Russia, has decided to cancel events that were scheduled to be held from March, 31 till April, 4, 2020 at Moscow’s Manege.
Over the past thirty days, the organisers from Russian Fashion Council have been closely monitoring and analysing the worldwide spread of the COVID-19 virus on a daily basis. Russian Fashion Council has conducted extensive consultations with The Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) in Russia, as well as Moscow's Health and Safety services to prepare a set of preventive measures for the upcoming event. However, due to the deteriorating situation on the global scale, the final conclusion is that the only completely safe way to move forward is to cancel the in-person event entirely to ensure well-being of all those involved.
Russian Fashion Council carries an overwhelming sense of responsibility, as there are over 1,500 people working on #MBFWRussia every season - organisers and partners, designers and their teams, makeup artists and hair stylists, models, technical staff, security staff, not to mention the larger number of journalists, buyers and bloggers. “We are hereby announcing that we are moving all activities of this Fashion Week to an online-only basis for this season. That way, we can guarantee a non-contact, completely safe way to provide our designers with the showcase space they need for this season,” said Alexander Shumsky, President of Russian Fashion Council.
Russian Fashion Council and Fashion Fund will stream a set of online events starting April-May, 2020 that will best support Russian fashion designers and safely demonstrate their newest runway-ready collections. The 40th season of Mercedes-Benz Fashion Week Russia will therefore take place online, through a virtual streaming service at www.aizel.ru - the leading Russian online designer fashion retailer.
As COVID-19 spreads globally, health and safety of workers and customers has become top priority for fashion retailers. Brands like Levi's and many others are not only closing their stores in China but also restricting employees from travelling into and out of the country. Supply chains are being disrupted as factories within China are shut. The epidemic has also hit Amazon employees as the retailer operates in the Seattle area where a few US cases are clustered.
Global supply chain to be disrupted
Though concerns around the virus' impact on supply chains were brewing for the last few weeks, these have now mounted as sellers on Amazon's marketplace are struggling to bring goods into the country. The outbreak has also rendered almost 9 per cent of Chinese container shipping fleets inactive. It has hit manufacturing indices in the country to their lowest point since the Great Recession. As a result, manufactures have shut operations stayed since the Lunar New Year break.
The outbreak has also slowed travel across China affecting apparel supply chains in the country. Moody's
analysts predict that if this outbreak intensifies further, it may materially disrupt the global apparel supply chain, hurting companies reliant on China for sourcing.
Walmart, Target feel the heat
Mass merchants like Walmart and Target, face multiple and countervailing effects from the outbreak. Not only could it disrupt their supply chains and decrease casual shopping amongst their consumers, it could also lead to a shortage of groceries and disease-fighting essentials that consumers are stockpiling.
Walmart is revamping its assortment and promotional and presentation plans. The retailer issued a memo to employees in late February stating the best practices for avoiding the spread of infection.
Luxury players’ plans slowdown
Luxury brands and retailers are also scaling back their expansion plans. Luxury stores are being shut and designers are cancelling their participation in fashion weeks. Recently, a number of designers dropped out of Paris Fashion Week, including Chinese brands Shiatzy Chen, Calvin Luo, Masha Ma, Maison Mai and Uma Wang. Additionally, LVMH Moët Hennessy Louis Vuitton canceled a reception for its 2020 LVMH Prize for Young Fashion Designers. Luxury brands like Burberry, Tapestry, Capri and LVMH closed their stores In China. They are requesting their stylists and personal shoppers to stay in contact with their customers and send them notes, reminders and private offers.
Decline in footfall at malls and shopping centers
A recent Coresight research reveals around a quarter of respondents are avoiding public areas and another 58 per cent plan to if the outbreak worsens. More than 40 per cent are avoiding or limiting visits to shopping centers/malls and more than 30 per cent are avoiding stores in general.
GlobalData forecasts, APAC duty-free sales are likely to decline by 19.1 per cent this year to $35.2 billion, due to the COVID-19 crisis. Sporting events and concerts are also likely to sell lesser merchandise. As shoppers stay away from physical retail, digital sales will increase. Delivery volumes are likely to increase by over 30 per cent as people will prefer working from home to avoid crowds.
According to IHL Group founder and President Greg Buzek, the crisis will spur investments into omnichannel technologies. There are likely to be significant increases in remote tools, moves to decentralize the supply chain and AI/machine learning, Forecasting technologies, and Analytics.
Luxury players will be the biggest losers as they haven't fully embraced e-commerce. They may reconsider their decision now.
The current economic slowdown and impact of coronavirus has compelled the GST Council to defer the proposal to hike GST rates on fertilisers, footwear and textiles.
On the other hand, the council has increased the tax rate on mobile phones and specified parts to 18 percent. Currently, mobile phones attract a GST rate of 12 percent, while its inputs are taxed at 18 percent.
The Council, chaired by union finance minister Nirmala Sitharaman, has also given relief to domestic maintenance, repair and overhaul (MRO) services, by slashing the rate to 5 percent with a full input tax credit (ITC).
Earlier, GST Council nominated fitment committee had proposed to provide level playing field to domestic MRO industry vis-à-vis foreign MROs. The recommendation is to reduce GST on MRO services to 5 percent with full ITC and change Point of Supply (PoS) for B2B MRO services to the location of recipient. Currently, Indian MROs are paying 18 percent GST.
In another move, the Council has decided to extend the deadline for filing of GSTR9, GSTR9C for FY18-19 till June 30, 2020. Also, the filing to be mandatory for taxpayers over Rs 5 crore of annual turnover. The earlier deadline was March 31 and turnover limit was Rs 2 crore.
Italy’s fashion sector is at risk due to COVID-19 , stores of fashion companies in the country such as H&M, Inditex and Uniqlo have been closed.
Spanish group Inditex has 390 stores across Italy, of which 101 stores are that of Zara. Stradivarius, another Inditex brand, has 84 stores, followed by Bershka, which has 67 points of sale. Oysho, Zara Home, and Pull & Bear operate with 41, 33 and eight stores respectively. Inditex entered the Italian market in 2002 and the territory remains a key market for the company. H&M operates 181 points of sale and Primark has five stores.
Fashion sales in Italy are five per cent of the Gross Domestic Product. The country is home to many luxury brands such as Prada, Dolce & Gabbana, Versace, Armani, Valentino, and many more. Brunello Cuccinelli counts 15 stores in the country. Italy is currently the country that is most affected by the Covid-19 in Europe. The number of fatalities now amounts to more than 800 and the number of people infected has increased to 10,500. The situation continues to escalate with a nationwide lockdown. The shuttering excludes those that meet basic needs such as pharmacies, supermarkets, and food stores, as well as kiosks and tobacconists.
Exhibitors noted a quiet yet positive turnout as the latest edition of fashion fabrics trade show Textile Forum defied Coronavirus panic by going ahead as planned. The show took place at One Marylebone, London from March 11-12, 2020. Despite Brexit challenges to the fashion market and the new threat of Coronavirus, mood remained quietly positive.
Around 40 exhibitors – mills, and manufacturers of textile products, trimmings and buttons – showcased at the event. They ranged from specialist lace manufacturers and leather producers to luxury garment makers, who were exceptions at the textile-focused show. Sustainability remained a buzzword across the show and shimmery tweeds, heavy textures, lace and florals were popular trends.
Although exhibitors said the show was much quieter show than usual, as a result of travel fear stemming from the coronavirus outbreak, they were positive about the buyers and businesses that they had seen. Most buyers in were from UK-based small-to-medium-sized businesses, and exhibitors were pleased with the presence of interesting start-ups. Bridal buyers made a notable appearance – despite fears over whether upcoming shows in their market would be going ahead.
For the third season running, the UK Fashion and Textile Association supported a manufacturing zone, where brands looking for UK product of garments and accessories could find those offering development and production services.
At a recent multi-sectoral meeting chaired by Sri Lankan Prime Minister Mahindra Rajapaksa, Joint Apparel Association Forum (JAAF) Secretary General Tuli Cooray proposed three key measures on behalf of the apparel industry to combat and minimise the impact of the pandemic. The industry seeks assistance from government in various areas such as extending over-time (OT) hours from legally permitted 60 hours to 90 hours for four months beginning from June and ensuring minimal disturbances to logistics.
It also requested for financial support to small and medium industry players to keep up with lost pace as certain fabrics from China would be available for processing in the coming weeks that would kick off operations of bulk manufacturers.
To ensure SME operations, industry requests banks and firms to grant adequate loan facilities subject to the Credit Support Scheme referred to the Central Bank Circular No.1 of 2020. Thirdly, logistics plays an important role in the supply chain so as to provide ontime delivery to its buyers.The industry will negotiate with independent service providers to offer weekly charter flights, the clearance for which is sought from government.
Estimated losses for the coming months round up to $510 million, and the situation is unlikely to achieve or reach near the target of 2019’s $5.3 billion exports.
Fast-fashion retailer Mango is accelerating its commitment towards creating more sustainable fashion. The vertical retailer plans to increase the proportion of sustainable fibers in its collections and use 100 percent sustainably sourced cotton by 2025.
In 2019, it joined the Fashion Pact, a global coalition representing 300 companies and brands with the goal of promoting environmental sustainability in the textile and fashion sectors. A few weeks ago, Mango became a member of the Sustainable Apparel Coalition, which encourages responsible textile practices in the supply chain while measures their environmental impact.
The brand makes all its denim pieces from sustainable cotton and some have been washed using Jeanologia’s technology, which helps Mango save 45 liters of water per pair. These practices minimize the environmental impact of denim fabric, since the use of chemical substances, water and energy is reduced in its production.
The Coronavirus outbreak has halted garment exports in Coimbatore, leading to a space crunch for exporters to store their goods. Almost all main vessels coming to Colombo or Kochi and proceeding to the US or EU originate in China. With shutdown in China for almost two months, the number of vessels starting from that country has reduced and the space available for cargo to be taken from other countries is also not much.
The government has issued orders that ports and Inland Container Depots clear imported goods immediately so that manufacturing industries that buy goods from other countries for production are not affected. Nearly 95 per cent of coir fibers from Pollachi in Coimbatore are exported to China. The Chinese who used to reside in Pollachi and inspect the goods before shipment went home for Chinese New Year and have not returned. Therefore exports to China have stagnated for the last two months.
The Drupa trade fair scheduled for June 16 – 26, 2020 will be postponed to April 20 – 30, 2021. In doing so, Messe Düsseldorf is following the recommendation of the crisis management team of the German Federal Government to take into account the principles of the Robert Koch Institute when assessing the risk of major events.
Based on the recommendation and the recent significant increase in the number of people infected with the new corona virus (SARS-CoV-2), including in Europe, Messe Düsseldorf has reassessed the situation. In addition, there is the general ruling issued by the city of Düsseldorf on March 11, 2020, in which major events with more than 1,000 participants present at the same time are generally prohibited.
In order to fulfill Messe Düsseldorf’s responsibility for risk prevention, the company primarily had to minimize the increased risk of infection at major events. Measures to reduce the risk of transmission at major events, which the Robert Koch Institute has clearly defined – such as ventilation of the venue appropriate to the risk of infection, the exclusion of persons from risk groups and the comprehensive installation of entrance screening, were practically impossible to implement. Also, comparable measures were and are unreasonable in view of the unforeseeable rapid development and the size of the various events with up to 60,000 participants.
