The US has ended trade concessions for India under GSP. India calls the decision discriminatory, arbitrary, and detrimental to the development, finance and trade needs of India, which is a vast and diverse developing country with unique challenges. Turkey has also been stripped of its GSP trade concessions. Punitive tariff hikes will be imposed on imports from Mexico over its leniency toward immigrants from Central America.

The US is on a mission to end the massive trade deficits and has imposed or hopes to impose higher tariffs on imports from several countries while involved in a trade war with China.

India came under the GSP program in 1975. The program is limited to certain categories like apparel and footwear with the aim of alleviating poverty by promoting exports by poor craftspeople and artisans in those sectors. In retaliation for the US raising tariffs of steel and aluminium imports from India, India has threatened to increase duties on agricultural products like walnuts, apples and other fruits imported from the US. The US dairy industry says India’s sanitary and phytosanitary requirements are unscientific and so exporting to India is difficult. According to Indian laws imports should not come from cows that have been given cannibalised feed that includes offal or other meat products. India provides unimpeded market access to dairy products from all countries that meet the criteria.

Entrepreneurs in Egypt are creating sustainable and ethical fashion solutions. Norhan El Sakkout founder of Saqhoute believes fashion should focus on producing quality products. Her products are priced higher than fast fashion products but her designs are versatile and long-lasting. El Sakkout believes in paying a fair wage to the people who produce her clothes. Although the minimum wage is common for workers in Egypt, El Sakkout prefers to pay above-market rates. El Sakkout tries to source locally produced natural fabrics, but she is not always successful. As a result, she often relies on using blended fabrics, which is also important for supporting local craftsmanship.

Similarly, Josline El Kholy, co-founder of Jozee Boutique, an ethical fashion brand, believes companies are ultimately responsible for informing their customers about products. El Kholy, who founded the brand with her husband, Ezzeldine Moukhtar, works with men and women across Egypt to produce bespoke embroidery on their clothing. She believes in partnering with employees. Employees work at their own pace, in their own homes. It’s more like a collaboration instead of an employer-employee relationship.

Fast fashion is plagued by ethical issues, including the treatment of garment factory workers. Its effect on the environment — from the disposal of cheap apparel to the pollution of natural resources — is also a growing cause for concern.

Some Chinese garment makers are planning to set up their factories under joint venture in Bangladesh as the country is a competitive destination to relocate plants amid raging US-China trade war and the rising cost in the world’s second largest economy.

Chinese textile and garment industry owners have invested heavily in neighboring Vietnam and Cambodia in the last two decades. However, now they are focusing to shift their factories to Myanmar and Bangladesh.

The reasons for the change in focus include a lack of skilled workforce in Chinese textile and garment industry, rising cost of production, shifting industrial base to industries such as IT and over-investment in Vietnam and Cambodia where labor costs are lower.

Faisal Samad, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met some entrepreneurs of Hong Kong-based Chinese Manufacturers’ Association during their visit to Dhaka from May 22 to May 26. The entrepreneurs came to Bangladesh to explore investment opportunities.

Gap has reduced its manufacturing exposure to China from 25 to 21 per cent over the past three years. The company has been moving sourcing out of China for the last several years and will continue to do this responsibly going forward. Less than five per cent of its sales come from China. The trade war threatens to increase costs for consumers and temper growth in its third largest market, mainland China. The supply chain agreements emanating from China are a sore spot. Specifically for China, the company is working diligently to mitigate the potential problem for consumers by incrementally moving away from reliance on the region. Including only apparel, its penetration is approximately 16 per cent, which is significantly lower than the relevant portions of the industry. That level is lower than that of peers like Abercrombie & Fitch, one quarter of whose goods are manufactured in China.

Gap, based in San Francisco, has been battered by a big miss on earnings and serious declines in same store sales across its key brands. Inventories in the first quarter were up over ten per cent as sales slowed and the potential for tariffs to temper consumer demand could worsen.

Denim veteran Christine Rucci, artist Johnny Germano and skateboard maker Ben Williams will debut a new brand collaboration, Down to Earth Original Denim and Decks, at New York’s Denim Days on June 9, 2019. The line will feature a tightly edited collection consisting of jeans, jean jackets, T-shirts, hats and some accessories in addition to skateboards, all made locally with sustainable fabrics and processes.

Christine Rucci has over a three decades of denim expertise. Johnny Germano is an artist and the founder of the apparel brand Down to Earth Original. Ben Williams is a skateboard maker. The line’s soft launch at Denim Days will include original artwork from Germano made with Recycrom pigments derived from old denim. One hand-painted, indigo-dyed skateboard will be raffled off at the event, and the proceeds will be donated to a non profit.

Down to Earth Denim and Decks is sponsored by denim and apparel industry stalwarts like Cone Denim Mills, Stony Creek Colors, Officina 39, Create a Marker NYC, A&E, Williamsburg Garment Company, YKK Fastening and Made in NYC.

Consumer dependent industries have begun to shift their focus toward environmental sustainability and consciousness through the use of ethical and responsible practices that don’t pose a threat to the planet. Within the art industry there is a tremendous amount of room for this growth.

Sheikh Abdul Mannan, Chairman, The Textile Traders Association (TTA) has stressed the need for fully availing the preferential market access by the EU countries for textile products under the GSP Plus scheme in order to bridge the trade as well as current account deficit (CAD) which has contracted by 27 percent to $11 billion during the first 10 months of the current fiscal year due to favourable policies of the government.

Mannan revealed that the Textile Policy 2014-19 is addressing the issues of all the sub-sectors of value-chain by laying down a comprehensive plan for the sustainable growth for the industry. He reiterated that the country aims to enhance exports to $30 billion by 2020. Though the target may appear ambitious but only value-addition to 13 million bales per year that Pakistan produces can help us achieve it.

The public-private partnership initiative for labor law compliance would result in enhanced compliance to international standards. This would help maintain the GSP Plus status as well as enhance business productivity and sustainability.

Mannan applauded the government for imposition of regulatory duties and banning furnace oil imports. He also lauded the new rules governing imports of used vehicles that have reduced the import bill during the period under review. He added that the challenge for the government lies in reversing the declining trend in exports, which have declined 2 percent to $21 billion despite massive devaluation of almost 40 percent in the rupee’s value during the last 10 months and special incentives for export-oriented sectors including textile.

"ColorJet printers have 45 per cent more production speeds than the nearest competition. They consume 47 per cent less space and 42 per cent less power as compared to other machines. Additionally, other digital textile printers consume 51 times more water as compared to ColorJet printers, making it the most sought after brand with its products starting at $59,000."

ColorJet India, the biggest Indian manufacturer of digital printers, will launch Vastrajet®- 8164, a digital textile printer with 16 heads at ITMA Barcelona 2019.

This advanced, high speed direct to fabric printer provides outstanding performance, increased productivity, superior printing accuracy with minimal maintenance needs.The printer is equipped with the latest technological innovation from ColorJet –AiS™ (Adaptive Ink System). The AiS™ provides its customers with a flexibility to use ink of their choice to address his various issues of logistics, procurement, colour consistency, etc.

The new Vastrajet®- 8164 is also equipped with AIVC™ technology which provides consistent print performance at varying environmental conditions.

ColorJet will also demonstrate its high-speed Metro-8166 which delivers industrial-level production with speeds of up to 294 sq. metre per hour. The Metro-8166 will be operated at ITMA 2019 on reactive ink, whereas the Vastrajet®- 8164 will be run on pigment ink on cotton blended fabrics.

ColorJet printers have 45 per cent more production speeds than the nearest competition. They consume 47 per cent less space and 42 per cent less power as compared to other machines. Additionally, other digital textile printers consume 51 times more water as compared to ColorJet printers, making it the most sought after brand with its products starting at $59,000.

ColorJet India markets its products in 25 countries worldwide and has installed and implemented over 4,000 of its printing solutions and products across 450 cities around the world backed by a strong 278-member team, of which almost 100 are in technical related functions.

"Goller, a CHTC Fong’s International Group Company, will introduce the new Knit Merc at ITMA 2019 to be held from June 20-26, 2019 in Barcelona, Spain. The development will help in achieving the highest quality mercerisation of knitted fabrics at the lowest tension and with under 3 per cent variation in dimensional stability with high grade fabrics, for perfect dyeing results every time."

Goller, a CHTC Fong’s International Group Company, will introduce the new Knit Merc at ITMA 2019 to be held from June 20-26, 2019 in Barcelona, Spain. The development will help in achieving the highest quality mercerisation of knitted fabrics at the lowest tension and with under 3 per cent variation in dimensional stability with high grade fabrics, for perfect dyeing results every time.

The Knit Merc is the result of intensive R&D developments at Goller and follows the successful introduction to the market of the company’s Sintensa Cyclone drum washing compartments for achieving the highest washing efficiency at the lowest tension.

The Knit Merc being can accommodate 8.4 metres of fabric in its impregnation compartment and a further four metres in its first chain section to achieve a production speed of 25m/min at 30 seconds dipping time.

It is designed for dry-on-wet mercerising, either cold or hot, and is equipped with an inlet combination of scroll and slat rollers for fabric guidance, a Tandematic uncurler in front of a rubberized de-airing roller and a grooved 320mm bottom roller with 320mm and 600mm perforated upper drums.

It benefits from automatic tension regulation and the low liquor content is ensured by the integrated lye tank and automatic circulation and filtration units.

An 8-tonne high efficiency squeezer is stationed at the exit before the chain section and a 5-tonne squeezer at the exit of the chain field.

Further fabric control and stability is provided by a cast iron pin chain with automatic optical and mechanical sensors, the Tandematic uncurler, an overfeed device and a driven belt arrangement for fabric support.

"Children’s fashion is not a child’s play,” says a recent kidswear advertisement featuring Amitabh Bachchan. Brands and retailers are scratching their heads over how to appeal to kids’ tastes besides keeping parents happy. They are not only consulting kids during their pre-production process besides offering them customised clothes."

“Children’s fashion is not a child’s play,” says a recent kidswear advertisement featuring Amitabh Bachchan. Brands and retailers are scratching their heads over how to appeal to kids’ tastes besides keeping parents happy. They are not only consulting kids during their pre-production process besides offering them customised clothes.

Robust growth predicted, girls’ wear to dominate sales

As per Global Industry Analysts (GIA) estimated, the US market for children’s wear is projected to exceed $76.4 billion by 2024. This would mean a CAGR of 3.9 percent from 2016 to 2024.The survey notes that an average household spends about $108 on kids’ clothes. Out of this, girls’ wear represents the largest product segment.

The Mintel Group also notes the influence kids are having on the children’s wear industry. The firm in its ‘Children’s Clothing US 2019’ report advises retailers and brands to consult kids while developing and designing clothing assortments. This would prove highly beneficial for brands as it help them cut down on wastes besides reducing their producing costs.

According to GIA, the preferred material for children’s clothing is cotton, due to its wash-friendly properties. Around 83 per cent of the surveyed parents opted for the cotton material with around 44 per cent expressing their concern over brands and retailers substituting synthetic fibers for cotton. Nearly half of the parents expressed their willingness to pay a slightly higher price to prevent brands from substituting cotton with synthetic fibers in their kids’ jeans.

Retailers and brands also need to remember that performance features such as shrink resistance, stain resistance, fade resistance, odor resistance and durability coax parents to pay more for their kids’ clothes. The Monitor™ research reveals that while discussing back-to-school apparel, 72 percent of parents expressed their willingness to spend more on shrink resistant clothes. This was followed by those who willing to pay more stain resistant, (70 percent), fade resistant (68 percent) and odor resistant (64 percent) clothes. Around 64 per cent of respondents also prefer clothes with durability enhancement features.

Parents opt for offline stores, kids prefer online shopping

The C&R Research “YouthBeat Shopping” report reveals parents prefer to shop at brick and mortar stores as it’s tough to gauge the exact size of their kids’ clothes without actually trying them on. Around 40 per cent of these parents prefer to shop in stores where they can do additional shopping, either for themselves or others.

While retailers remain their favorite choice, parents are increasingly opting for retailers who offer stylish and affordable clothing, as well as other items on their shopping list. Retailers therefore need to consider other ways to cater to the needs of these parents.

As parents prefer offline stores, kids are increasingly veering towards online stores such as Amazon, Walmart and Target. Amazon has emerged as the top choice among tweens and teens as it offers from toys to clothes, or video games to phone cases. As per C&R Research, Nike is the top apparel brand for children while Justice is the second-most popular brand. Under Armour ranks as the second most preferred brand among tweens.

Older parents go organic

The GIA report also points out that the changing American demographics are creating an increasing number of older parents who are in their late 30s and 40s, have higher disposable incomes and a willingness to invest in their children’s wardrobes. These consumers buy expensive designer outfits from brands such as Dolce and Gabbana, Hugo Boss, and Marc Jacobs. Also, parents prefer to buy the safest available clothes for their kids. This is translating into an increased interest in clothes made of organic and natural fibers, as well as recycled materials.

The Mintel Group notes a growing interest amongst dads about their child’s clothing. Around 45 percent of dads feel it’s important for their children to look stylish. And 26 percent believe price to be more important than quality.

"FY 2019 has been a mixed year for Indian textile companies. For smaller companies like Morarjee Textiles, Bombay Rayon Fashions, Mafatlal and JCT, it was a challenging year as their quarterly earnings slipped below given estimates. However, for bigger companies like Arvind Mills, Raymond, Vardhman Textiles and Grasim Industries, the year yielded a positive outlook despite a challenging global business environment."

FY 2019 has been a mixed year for Indian textile companies. For smaller companies like Morarjee Textiles, Bombay Rayon Fashions, Mafatlal and JCT, it was a challenging year as their quarterly earnings slipped below given estimates. However, for bigger companies like Arvind Mills, Raymond, Vardhman Textiles and Grasim Industries, the year yielded a positive outlook despite a challenging global business environment. Not only did these companies record higher growth in production and exports of garments, their revenues along the integrated chain also increased.

Raymond to launch eco-friendly fabrics

India’s largest textile and global conglomerate Raymond had a robust FY ’19 as its revenue from the textile segment in the third quarter increased 10.3 per cent to Rs 847.7 crore from the earlier Rs 768.4 crore. The company’s revenue in the second quarter from branded textiles increased by 15 per cent to Rs 884 crore. The company is currently embarking on an expansion project by collaborating with Reliance Industries. This joint venture will launch the eco-friendly range of fabrics, Ecovera which will be manufactured using R|Elan, a technology from Reliance.

Arvind to increase manufacturing capacity

Ahmedabad-based textile manufacturer Arvind Mills demerged into three separate entities in November 2018. The company’s consolidated revenue of the continuing business for Q3 of FY ’19 decreased by 1 per cent year-on-year from Rs. 1,691 crore in Q3 of FY ’18 to Rs. 1,680 crore in Q3 of FY ’19. The management attributed this decline to lower volume sales by 5 million metres in the denim business.

The company produces nearly 250 million of fabric annually but converts only 10 per cent of this into garments. It now plans to increase this to 40 per cent over the next three years and 50 per cent by 2020. The company also plans to use more of its looms and mills for contract manufacturing of garments.

Yarn, fiber development focus for Vardhman Textiles

The revenue of Vardhman Textiles’ increased by 12.3 per cent year-on-year and 8.2 per cent quarter-on-quarter to Rs. 1,648 crore. Its revenue in Q2 of FY ’19 grew by 27.7 per cent year-on-year and 10.3 per cent year-on-year to Rs. 118 crore and Rs. 1,592 crore from the acrylic fibre and textiles segments respectively. The company plans to invest Rs 1,500 crore in its fabric and yarn manufacturing facilities over the next 2-3 years It also expects its fabric division to be more profitable compared to yarn division owing to less capital requirement.

Grasim Industries to expand India operations

Production of viscose stable fiber by Grasim Industries increased by 11 per cent to 141,000 tonnes in Q3. Its sales volume increased to 134,000 tonnes, The net revenue of the company n Q2 of FY ’19 increased by 23 per cent to Rs. 2,606 crore.

The VSF business of the company will continue to expand in India by partnering with the textile value chains, achieving better customer connect through its brands Liva and Livaeco and enriching the product mix through a larger share of specialty fibres.

Morarjee Textiles to integrate supply chain

Ashok Piramal Group’s Morarjee Textiles reported a net loss of Rs 5.8 crore in Q3 ending December 2018. However, the company’s net sales increased by 0.08 per cent to Rs. 95.3 crore from Rs. 95.2 crore in the corresponding period.

In May last fiscal, the company undertook a backward integration project to incorporate its manufacturing processes and to reduce the dependence on vendors of yarn and woven fabric. The expansion project enabled the company to integrate its spinning, weaving and printing activities and thereby improve profits margins.