FW
The Bahamas Federation of Retailers has appreciated the government’s move to cut duty rates on imported clothing and shoes by 20 per cent. According to the federation, this duty cut has not only resulted in a ‘strong sales capped by “one of its best holiday seasons on record but also empowered the vendors to pass on their cost savings to customers.
The Federation now expects the government to codify the new policy into legislation and expand it to the rest of the wholesale and retail industry as it will significantly boost the local economy through increased domestic investment, increased local employment, increased domestic demand, increased selection & variety and therefore increased returns to the government via the resultant increases in NIB & VAT receipts generated.
This elimination of 20-25 percent Customs duty on footwear and apparel was unveiled in the 2018/2019 budget. Recognising that Bahamian retailers were struggling to compete with online shopping and south Florida merchants, the Government implemented the Customs duty waiver as part of its package of tax relief measures.
Bangladesh is the only country in the world, which is mainly dependent on cotton fiber. Other major textile- and garment-producing countries have diversified their production to manmade fiber like viscose. Bangladesh imports more than eight million bales of cotton a year and the consumption of cotton by the mills has increasing more than by 10 per cent year-on-year. Consumption of cotton will continue to grow in Bangladesh in the near future because of the high export of garments. Africa has become a huge source of cotton for Bangladesh. Last year, Bangladesh met 37.06 per cent of its cotton requirement from Africa. CIS (Commonwealth of Independent States) countries supplied 11.35 per cent of the cotton, 11.14 per cent from the US, 4.65 per cent from Australia and 9.65 per cent from the rest of the world.
Cotton prices are declining worldwide. This is good news for Bangladesh. Now Bangladesh cotton importers can either book a lot of cotton in the futures markets or import cotton. If spinners can purchase cotton at lower prices, they can supply the yarn and fabrics at lower prices to garment makers. Garment exporters in turn can sell the goods to western buyers at competitive prices.
Pakistan’s textile exports from January to November 2019 were five per cent higher than exports last fiscal. The industry has no surplus to boost exports and is sitting on obsolete technology and is inefficient. Textile exports have remained stagnant since 2012-13. The textile story, in fact, has been the same for over a decade. The industry is dominated by the spinning sector. Basic textiles have flourished on subsidies while the value-added sector is neglected.
Big players are involved in the basic textile sector, while in value-added textiles the exports are dominated by small players. There are thousands of such exporters but 90 per cent of bank finances go to the yarn and fabric sectors and the rest to the value-added sector that accounts for 60 per cent of Pakistan’s textile exports. Per unit rates in all subsectors of textiles are the lowest in Pakistan, compared with competing economies’.
Exporters are paying a premium because of the negative perception of their country abroad. In real terms Pakistan’s textile exports have remained stagnant in the last six years. During this period textile exports from Bangladesh and Vietnam increased at a compound rate of over 7 to 10 per cent. Pakistan’s share in global textile trade has declined from 2.2 per cent at the start of the century to less than 1.70 per cent.
Between July and November 2019, garment exports declined 7.74 per cent.
During the first fortnight of December exports declined by more than three per cent. One reason for falling garment exports is a significant increase in production costs because of the implementation of the minimum wage in December last year. Poor efficiency and the relatively higher cost of doing business are chipping away at Bangladesh’s trade competitiveness. Concentration of the industry on a few product items and to a handful of markets is a challenge. In the last eleven months to November, 61 factories were shut down, rendering 31,600 workers jobless.
The source tax on garment exports has been lowered to 0.25 per cent. The industry says this has to be done with retrospective effect and wants conditions attached to the one per cent special incentive to be withdrawn along with the tax on incentives. Another helpful factor is said to be a devaluation of the currency, especially for manmade fiber garment and synthetic fiber garment exports. This is expected to enable product diversification to take place automatically.
The garment industry has to increase its efficiency at least by 30 per cent if it wants to be more competitive globally and this can be done only through efficient management practices, technology selection and product and market diversification.
A ZDHC conference held in Mumbai on December 10 focused on creating awareness and commitment for safer chemical management practices in textile production. Over 200 delegates from local and global brands; textile chemical companies and service providers, came together to share their experiences, and exchange information on sustainable chemical management practices and challenges.
Panel discussions included topics on leveraging sustainability for growth and competitive advantage in the fashion industry and challenges and opportunities in the chemical management landscape.
The Indian apparel industry is at an early stage in terms of sustainability and building a sustainable supply chain. Leading apparel brands in India have realized the need to adopt sustainable chemical practices in the industry and are taking baby steps in this direction. The bulk of the Indian chemical industry is quite aware of chemical restrictions and leading companies are ready to invest in R&D and marketing activities to develop sustainable products, but need support from apparel brands. The Indian consumer is woefully bereft of product safety redressal mechanisms, but the Consumer Protection Act of August 2019 provides a ray of hope. ZDHC will proactively engage Indian apparel brands and support them in their journey for sustainable chemistry.
Garments Machinery Manufacturers and Suppliers Association (GMMSA) will be held in Ludhiana from January 3 to 6, 2020. The expo will showcase over 2,000 products in knitting, weaving, dyeing, finishing, printing, sewing machines and accessories by leading brands with participants from India and over 16 countries. Being a leading platform for showcasing of the latest machinery in garment manufacturing, this year’s edition too is being organised to facilitate garment machinery manufacturers and suppliers to showcase their products with the latest world-class technology. The expo is the largest industrial exhibition of garment machinery in Punjab. GMMSA expo has become a brand that has established its credibility as it provides the latest technology and knowledge at the doorsteps of the industry.
Machinery manufacturers are keen to be at the forefront in showcasing their latest technology to increase productivity and achieve cost efficiency in each process of garment manufacturing making the industry more competitive.
Many garment manufacturers of Ludhiana are facing the issue of long credit periods, as in the domestic market they have a payment cycle of almost six months. To manage this payment cycle they need to have enough resources. As this factor also increases costs, they are now seriously working to reduce the credit period.
Ashok Todi, President, West Bengal Hosiery Association
On the completion of 125 years of its operations, West Bengal Hosiery Association thanked its members for their contribution towards the growth of the association. “Their contribution encouraged us to give maximum benefits to consumers,” said Ashok Todi, President of the association.
WBHA now aims to bring everyone associated with the knitting industry in India on one platform. “This will enable us to move in the same direction and also reform the hosiery industry,” he added.
The Textile Association (India), Mumbai Unit has announced a Seminar on “Opportunities for Textile Industry in Challenging Scenario” on February 29, 2020 at Hotel Fortune Park Galaxy, Vapi, Gujarat (India). The seminar will provide an opportunity to the textile technologists amd experts to share their thoughts to meet the challenges and interaction will be highly productive and beneficial. This will give a rare opportunity to the participants to listen to such high-quality experts.
The seminars organised by The Textile Association (India), Mumbai Unit has always been on contemporary and innovative topics deliberating on the subject by high profile and experienced speakers. The TAI, Mumbai Unit apart from organising the events in Mumbai organises the seminar at Vapi for the benefit of the technicians of that cluster. This Seminar will show the roadmap for the opportunities for the Indian textile industry in the changing scenario. This seminar will be addressed by renowned experts from different parts of India who will present their papers to over 200 equally high-profile practicing technologists and technicians.
The seminar will share insights on the varied industry and textile technical topics. Its panel discussion will focus on ‘Developments in Textile Industry to meet the emerging market demands.’ The panel will comprise experts from the textile industry.
To tap the growing potential of the Tanzanian market, the 15th editon of the Tanzanian Trade Show will be held from February 21-23, 2020. Setting new highs for participation from over 20 countries and visitors from over 12 African countries, TTS 2020 will enable international companies to showcase their products and services in the developing markets of Tanzania and other East & Central African countries. It will also provide International and Tanzanian Enterprises an opportunity to showcase their distinctive products and explore the current requirement of the market.
Tanzania is the major distribution hub to the 410 million consumer market of East Africa as it has one of the busiest ports in the region. With its own population of approximately 50 million, it is one of the best countries to target in Africa as it boasts of a long history of peace and political stability. It is also one of safest places to travel with a booming business and a fast growing economy compared to other countries in the region.
The overall performance of the Tanzanian economy remains strong with a high rate of growth, and a low rate of inflation over the past five years. The country’s GDP grew to US$ 44.5 billion n 2016 from US$ 31.4 billion in 2010. Its annual GDP growth rate averaged 7 per cent over the past 5 years, making it one of the 20 fastest growing economies in the world and beating the Sub-Saharan Africa average GDP growth rate of 4.4 per cent during the same period. Its imports grew by 27 per cent, from US $ 9.8bilion to US$12.5 billion in 2016.
Sandeep Sakseria, Hony Secretary, West Bengal Hosiery Association
Starting on a small scale, the Indian hosiery industry has evolved over the years. ”This evolution has led to the growth of the West Bengal Hosiery Association into an official organisation for West Bengal hosiery manufacturers,” said Sandeep Sakseria, Hony Secretary, West Bengal Hosiery Association at an event to celebrate the completion of 125 years of the association.
The knitting industry in West Bengal is evolving at a rapid pace. “To grow further, we need to not only upgrade our machines but also acquire more land and amend our labor laws. We need to also build integrated units like those in Bangladesh,” affirms Seksaria.
With its scope widening over the years, hosiery industry in India has moved to knitwear. Knitwear now constitutes 20 percent share of the apparel industry. Bangladesh, which has required manpower to develop this sector, is now focusing on it. “We too have the entrepreneurship, skilled manpower, raw materials to grow this industry. However, we need more support from the government. This platform will enable knitwear leaders to exchange their views on the industry issues,” adds Seksaria.
