FW
In the first quarter of the current fiscal year, garment exports from Bangladesh dropped 1.64 per cent year-on-year. Earnings from the sector fell 11.52 per cent short of the quarter’s target. While the country’s apparel exports have taken a hit in recent months, competitors have seen a rise in exports. Garment shipments from Vietnam increased by 10.54 per cent in the same quarter. It was 2.2 per cent for India and 4.74 per cent for Pakistan.
The second biggest apparel exporter globally, the Bangladesh garment manufacturing sector is not having the best of times lately. In the last seven months, 59 garment factories have gone out of business while around 25,900 workers have lost their jobs. Most garment factories are small and medium enterprises and they fail to maintain compliance strictly and pay their workers under the new wage structure.
Labor costs are rising across Asia and Bangladesh is no exception. Factories in Bangladesh have grown in a haphazard fashion, some even operating on the upper floors of office or residential buildings. Western apparel makers feel more secure buying from countries like China and Vietnam, where manufacturing is better planned and organized. Price pressure is intense. Western customers are demanding that prices be kept under control.
Sutlej Textiles’ net sales were Rs 643.90 crores during the period ended September 30, 2019, as compared to Rs 666.89 crores during the period ended June 30, 2019. Net profit was Rs 16.64 crores for the period ended September 30, 2019, as against Rs 7.43 crores for the period ended June 30, 2019. EPS was Rs 1.02 for the period ended September 30, 2019, as compared to Rs 0.45 for the period ended June 30, 2019.
Net sales were Rs 643.90 crores during the period ended September 30, 2019, as compared to Rs 708.73 crores during the period ended September 30, 2018. Net profit was Rs 16.64 crores for the period ended September 30, 2019, as against Rs 24.61 crores for the period ended September 30, 2018. EPS was Rs 1.02 for the period ended September 30, 2019, as compared to Rs 1.50 for the period ended September 30, 2018.
Net sales were Rs 1310.79 crores during the six month period ended September 30, 2019, as compared to Rs 1344.64 crores during the six month period ended September 30, 2018. Net profit was Rs 24.07 crores for the six month period ended September 30, 2019, as against Rs 32.52 crores for the six month period ended September 30, 2018. EPS was Rs 1.47 for the six month period ended September 30, 2019, as compared to Rs 1.99 for the six month period ended September 30, 2018.
Ferrari is collaborating on an apparel line with Giorgio Armani. This is part of the carmaker’s strategy to squeeze more out of its brand value. In the third quarter, earnings before interest, taxes and amortization rose 11 per cent. Revenues rose nine per cent. Ferrari, based in Italy, aims at earning ten per cent of earnings before interest and taxes within a decade from three defined brand extension areas: apparel, entertainment and luxury services. Ferrari has long had one of the world’s most recognizable brands, but it has only recently translated that into value. Its brand value grew from $4 billion in 2014 to $8.3 billion in 2019.
As a part of the new strategy, Ferrari will focus the use of its brand, reducing licenses by half and eliminating a third of the product categories currently available. Besides the apparel line to be produced in Italy through a long-term deal with Armani, Ferrari will expand its entertainment offerings, which currently comprise theme parks in Abu Dhabi and Spain and two museums in Italy, with driving simulation centers to leverage its Formula 1 racing heritage. The third category, luxury services, will include a new restaurant with Michelin-star chef Massimo Bottura to open next year at the Maranello headquarters, which already has a Ferrari-themed hotel.
Origin Africa was held in Tanzania from October 28 to 30, 2019. Experts from the public and private sector forecasted the future of the East African cotton, textile and garment industry. During Origin Africa 2019, designers demanded more attention and appreciation for their role. While in India, for instance, designers work with factories and factories work with designers, East African designers hardly have any training working with factories and brands. Their creations are not respected or rewarded as intellectual property.
Even Tanzania is inhabited by over 100 tribes with their own colorful clothing traditions but outside the country garments called kanzu (a white or cream-colored tunic for men) and khanga (a more colorful dress for women) are considered to be the traditional attire of Tanzania.
Employment in the East African textile and apparel industry, including Kenya, Rwanda, Tanzania and Uganda, could reach 80,000 jobs in 2025 and 2,00,000 in 2030. Garment exports from the region could reach 1.4 billion dollars in 2025 and double to 2.7 billion in 2030. Within two or three years Madagascar is expected to be Africa’s biggest apparel exporter to the US under the African Growth and Opportunity Act, beating Kenya and all other AGOA-entitled African countries.
Global cotton consumption is expected to fall this year. Decrease in consumer confidence; trade war are two major reasons. China will continue to be the main cotton consumer. Mexico and Pakistan, meanwhile, will increase their imports by 48 per cent and eight per cent respectively.
India is expected to produce six million tons of cotton in 2019-2020. The surge in production due to a bigger cultivated area and a boost to yields from above-average monsoon rains is likely to bring down prices. But India still has to import cotton. This is because certain grades such as contaminated free certified cotton and extra long staple cotton are not produced in India.
For the moment though high cotton prices in India have kept the industry burdened with low earnings. Since Indian supplies are uncompetitive due to higher prices, buyers are giving preference to Brazil and the US. The expectation is that bumper cotton production in the new season could damp prices and make exports viable. The minimum raw cotton buying price has been raised by 38 per cent in two years even as global prices were corrected to their lowest level in more than three years.
Garmon has unveiled a revolutionary patented technology that reduces the amount of water and energy utilised in garment finishing. Smart foam will allow manufacturers to follow a sustainable and accessible garment production. Unlike traditional process, where the chemical carrier is water, in smart foam technology the chemical carrier is a special foam created with new technologies. Smart foam is capable of developing a range of finishes, unique designs and concepts from traditional styles.
Apart from a significant reduction in water and energy consumption, application of chemicals through smart foam helps save water to the extent of 80 per cent. The system requires room temperature to process the treatments. So the energy required is reduced. It is also the easiest and most affordable system for saving water in garment finishing. Compared to the nebulisation system, the all-new smart foam technology can load chemicals three times faster in the washing machine and requires no sealed equipment thereby allowing technicians to interrupt finishing treatments and check garments with safety and ease. The technology can be utilised with any type of traditional or advanced washing machine.
Garmon, a brand for chemical solutions for the denim and fashion industry, also offers easyfoma and easyfoam pro.
Intex will be held in Sri Lanka from November 13 to 15, 2019. More than 200 suppliers from 12 countries are expected to participate at this textile trade show and promote their business and explore new business opportunities in South Asia and other markets. Textile fabrics, yarns and accessories will be exhibited.
Fashion for Good will give insight on trends and technological innovations in textile, driving sustainability in the value chain; Better Cotton Initiative will highlight sustainability in textiles for a better understanding of environmental, social and economic sustainability; Cotton Council International will present the latest in research, highlighting new ideas in technology, fashion, blends, processes etc.
Intex South Asia provides a robust platform for untapped South Asian intra-regional trade, by delivering access to industry developments, networking opportunities and strategic initiatives with other global suppliers from across South Asia and the world to help expand industry and business, in one location, under one roof. While agility, flexibility and digital solutions have become the crucial drivers of success, partnerships and relationships form the core. Intex South Asia provides an excellent forum for all stakeholders of the industry from Sri Lanka and overseas to build and develop these relationships. This exclusive networking platform is useful for importers, wholesalers and agents.
Vinatex predicts, Việt Nam’s textile and garment industry is likely reach its target of $40 billion in export turnover this year as the industry reported export earnings of $29.3 billion in the first nine months of the year. This was mainly due to the industry's efforts to overcome difficult global economic conditions. Solutions had been implemented synchronously to remove difficulties, especially input prices which had dropped sharply due to the trade war.
Technology is seen as a key factor helping Việt Nam’s textile and garment industry to promote business and expand its markets. Many Vinatex firms had invested in automatic cutting and spreading machines to replace workers, and in 3D design. Meanwhile, yarn and dyeing were also under pressure from the fast development of technology. Businesses have also forged e-commerce deals or invested in their own online sales services to increase domestic market share.
According to the new wool market research report published by the Persistence Market Research (PMR), the global wool market is likely to grow at a CAGR of 3 per cent to reach nearly $ 49 billion by 2029-end.
This growth can be attributed to several factors including the increasing disposable income of consumers across various geographies, which has significantly boosted the spending capacity of consumers on apparels and interior textiles.
A prominent share of the global wool market volume is consumed by the textile producers in China. Favorable conditions, such as economical textile production, the availability of raw material, and significant growth of the manufacturing sector in China, are expected to boost the consumption of wool from textile industries. Thus, East Asia, with a significant contribution from China, is expected to provide attractive opportunities for the growth of the global wool market.
International Apparel and Textile Fair (IATF) is on in the UAE, November 4 to 6, 2019. This is the only fashion B2B trade show in the Middle East that showcases the latest season’s trends and quality products, an opportunity to meet exhibitors from all around the world and connect directly with mills and manufacturers. This is a platform for sourcing apparels, fashion fabrics, prints, machineries, clothing accessories, home textiles, footwear and handbags. The fair has attracted a wide range of textile mills, accessories/trim suppliers, print designers and major footwear manufacturers. Exhibitors are mainly from Turkey, Hong Kong, China, India, Poland, Italy and more. Exhibitors can unite at one platform to showcase their collections to buyers from within the Mena region.
IATF is passionate about staying ahead of market changes in order to offer the best guidance to buyers today and for the long term. Natural fibers and rustic materials are being showcased. The themes are: Wrinkled and Undulating, Natural Imperfections, Space Dye and Neps, Rustic Reimagined and Denim Rediscovered. Attractive, extremely fashionable products made from bio-sourced, recycled and recyclable materials, or with eco-friendly elasticities, notably for stretch knits, denims and suitings are on display. Colors range between confidently expressed naturals and a delicate sensuality.
