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Pakistan’s exports of readymade textiles for July to May were up by 13 per cent. In terms of quantity, readymade garment exports surged 15 per cent. In May, the country’s exports of readymade garments were up by 24 per cent compared to May 2017. Readymade garment exports grew by 27 per cent in May 2018 from May 2017.
Textile exports make up around 60 per cent of the country’s total exports. The textile sector has the largest share in Pakistan’s exports. Pakistan’s competitors are upping the ante on textile exports to make inroads into more global markets. While China’s share in global textile exports is 36 per cent, Vietnam contributes 12.4 per cent, and Pakistan seven per cent.
Pakistan predominantly being a textile export economy is struggling to maintain its share in global textile markets both in basic and value added textiles. Pakistan is the only country in the region that saw its total textile exports decline by ten per cent between 2011 and 2018.
Other economies like China, India, Bangladesh, Sri Lanka and Vietnam increased exports at a CAGR of 20 per cent or more during the same period. Vietnam, a relative newcomer in the sector, posted a CAGR of 107 per cent followed by Bangladesh at 61 per cent.
Liva, a leading fabric brand from the Aditya Birla Group launched a state of the art LAPF Studio in Tirupur. LAPF Studios act as a one-stop customer experience centre for innovation, technical, product and marketing solutions.
This is the third such Studio after Noida and New York. The studio has a collection of more than 2000 fabric innovations. Technical specifications, uniqueness of the fabric and marketing stories are available in wide variety of fabrics including woven, knitted, flat knitted etc. Liva’s seasonal collection specially designed by in-house designers will be on display in the studio to attract global buyers to the cluster.
LIVA Accredited Partner Forum (LAPF) is the first of its kind platform in the textile fraternity that connects and builds a network of textile professionals. The Liva Studio aims to showcase the strengths of its versatile and abundant range to cluster which has become a prominent sourcing base for garment exports.
The collaboration between Tirupur Exporters Association (TEA) and Birla Cellulose brings seamless alignment with global innovation and ensures preference for the cluster’s products with global brands. One important aspect of differentiation is the sustainability credentials of both Tirupur Cluster and Birla Cellulose which would be communicated through a benefit story. Focusing on best in quality and cost is of paramount importance for greater operational efficiency, a must for the cluster to be competitive against global knitwear hubs.
With latest fabrics and innovations, Preview Textile Fair Munich fabric start will open from July 19 to 20. Comprising over 360 collections the portfolio presents a powerful line-up of internationally renowned suppliers. Vendors include some new exhibitors like Teapel, Furpile Idea from Spain and Nayla alongside well-established brands like UCO Raymond and Europa SAS that enhance the specifically designed Denim & Sportswear Area of VIEW.
For the first time, over 300 pre-collections made by internationally established weaving mills and manufacturers will be exhibited. With 22 new collections displayed in the View Fabrics and View Additionals segments the carefully compiled portfolio will be extended.
The ever-increasing demand for these early presentation date voiced by both producers and ready-to-wear manufacturers underscores the importance View Premium Selection has as a platform for the European market.
Boasting a comprehensive line-up for women’s and men’s wear View Premium Selection gives the sector all the components it requires for developing their collections at this point in time. Over two intense trade fair days the initial trends, colours and innovations for fabrics and findings can be seen and directly incorporated into the production process.
Egyptian cotton production is on to rebound with help from a devalued currency and bigger cultivation area, recovering from a slide in exports since 2011. Nabil al-Santaricy, Head, Alexandria Cotton Exporters Association says cotton exports are expected to reach about 52,000 tons in the 2017-18 season that ends in August, up nearly 37 per cent from the previous year.
Production fell drastically in 2011, when political upheaval meant regulations to maintain quality was not enforced. But demand for the Egyptian product, known locally as ‘white gold’ has picked up as rules to ensure quality have been strictly imposed again since 2016. Ahmed Elbosaty, Chairman of Modern Nile Cotton, Egypt's largest cotton trading company stated Egypt is the world's second largest exporter of long-staple cotton, used mainly to make luxury linens, behind the United States.
The Agriculture Ministry has increased cultivation area in 2018-19 to lift exports from Egypt, where sunny skies and superior seed produce cotton with unusually long fibres used to make light and durable fabrics with sheen and soft touch. Cotton cultivation could expand further as the authorities push farmers to avoid water intensive crops, such as rice, to prevent shortages as Ethiopia prepares to start filling a huge dam on the Nile, considered Egypt's lifeline.
The worldwide market for denim jeans is expected to grow at a CAGR of roughly 0.8 per cent over the next five years.
Denim jeans are purchased for durability, longevity, and versatility because consumers find greater value in a product they know will last longer and fit better.
Denim jeans are trousers typically made from denim fabric. They are now a very popular article of casual dress around the world.
Therefore price is not the main factor in the denim jeans purchase decision, unlike other clothing. This positioning ensures that denim jeans will continue to have a place on store shelves and in consumers’ closets.
Denim jeans are trousers typically made from denim fabric. They come in many styles and colors. However, denim blue jeans are particularly identified with US culture. Denim jeans are a cornerstone of the American wardrobe and an important cotton product accounting for almost one-fifth of all cotton clothing at retail. Almost all US consumers own denim jeans and most of them say their closets are full of denim and they enjoy wearing it regularly.
The denim jeans market is expected to increase due to growth in GDP per capita, international tourism etc. Yet, the market faces some challenges such as the global economic downturn, high probability of terror attacks etc.
Bangladesh will lose duty-free access given by the European Union (EU) on readymade garment (RMG) exports in 2020 as it is expected to cease being a ‘least developed nation’ by then. If the central government provides adequate support to the industry then exporters could reap the benefits of Bangladesh’s loss. As per data from the United Nations Conference on Trade and Development, Bangladesh’s per capita income stood at $1,355 in 2016, a 39 per cent increase compared to 2013 ($974).
By 2020, its per capita income is predicted to overtake India’s, which stood at $1,706 in 2016. As per the World Trade Organisation, if the country’s per capita income remained more than $1,000 continuously for three years, it could be classified as a developing nation. Bangladesh may become a developing nation with a fast-growing economy.
Since the duty-free access given by the EU was one of main advantages enjoyed by exporters in Bangladesh, Tirupur knitwear exporters have been repeatedly saying that there was no level playing field. They have been urging the government to provide adequate sops to sustain the industry. Tirupur Exporters Association (TEA) president Raja M Shanmugham stated Indian exporters may not benefit even though Bangladesh is predicted to be stripped of the duty-free access by the EU.
Zahid Mazhar, Sr Vice Chairman All Pakistan Textile Mills Association (APTMA) says as per final statistics of cotton arrival released by Pakistan Cotton Ginners Association on May 1, only 11.58 million bales of 155 kg of cotton were produced in 2017-18. In fact, for three seasons in a row cotton crop has been below target. As per Pakistan Central Cotton Committee’s report this year about 48 per cent of cotton crop area in Sindh was missed due to scarcity and poor management of water,.
Because of the imposition of custom duty and sales tax on import of raw cotton, import of finished cotton yarn has seen 500 per cent increase in 2016-17 as compared to 2011-12. Mazhar says due to the high cost of doing business and inadequate supply of raw cotton almost 140 textile mills have closed resulting in a loss of one million jobs.
Another 75 to 80 mills are on the verge of closure which will add another 0.5 million to the unemployment figure. Due to closures of about 140 mills and the mills operating under capacity, Pakistan’s textile exports is suffering a loss of more than $4 billion per annum. He also stated Pakistan’s cotton crop is far behind consumption requirement of 15 million bales, for the third consecutive year.
"Blockchain was originally created as a public ledger for bitcoin, the crypto-currency. In the apparel industry, blockchain means more transparency when it comes to what apparel is made of, and where and how it is made. Daniel Newman, Principal Analyst and founding partner, Futurum Research explains blockchain can help lift the veil on supply chain. In a global economy, companies all over the world partner for manufacturing, agriculture, pharma development, etc. But as distance between companies grows, so does the ability to ensure that the products and processes agreed upon are actually followed when the final product is made. Blockchain can help combat fraud by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer."
Blockchain was originally created as a public ledger for bitcoin, the crypto-currency. In the apparel industry, blockchain means more transparency when it comes to what apparel is made of, and where and how it is made. Daniel Newman, Principal Analyst and founding partner, Futurum Research explains blockchain can help lift the veil on supply chain. In a global economy, companies all over the world partner for manufacturing, agriculture, pharma development, etc. But as distance between companies grows, so does the ability to ensure that the products and processes agreed upon are actually followed when the final product is made. Blockchain can help combat fraud by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer.
Being more transparent can enhance consumer loyalty, which would be a boon for any store or brand in a competitive marketplace. Recent Cotton Incorporated Lifestyle Monitor Survey illustrates more than half of consumers (56 per cent) are less loyal to brands than they were a few years ago. However, consumers admit they would be more likely to buy clothes from stores that offer things like clothes made from 100 per cent cotton (81 per cent) and clothes made in the USA (76 per cent).
The way it works
Blockchain would work as a public digital ledger where each item being manufactured would be given a unique product identity that is then stored in the
blockchain. As an item makes its way through the production system, each transaction needed to manufacture that product is validated on a digital ledger that is continually updated for everyone in that network. Once information is entered, it can’t be changed. All participants have access to the same data at the same time, allowing them to seamlessly find information and answer questions.
Elaborating on this, Lori Mitchell-Keller, Global General Manager of Consumer Industries, SAP, says both manufacturers and retailers should understand blockchain’s key capabilities. With blockchain technology, manufacturers have access to a living activity log, so they can manage the flow of goods, identify and track problems to any point within the supply chain and streamline processes. In addition, retailers who are purchasing apparel can benefit from the technology, particularly from the transparency, security and reliability it provides. Given that information on blockchain cannot be tampered with, retailers can ensure the items they sell are authentic and appropriately priced based on the products used and the overall manufacturing process.
As per Monitor Research, apparel manufacturers could more easily trace factors such as the fiber being used in their garments. It would also allow manufacturers and retailers to track and then promote natural fibre content to consumers. This is especially important, considering that consumers are willing to pay more to keep cotton from being substituted in their underwear (70 per cent), t-shirts (65 per cent), denim jeans (62 per cent), casual clothes (60 per cent), dress clothes (57 per cent), and activewear (55 per cent).
Finding faults early on
Mitchell-Keller pointed out that retailers can develop an authenticity trail from point-of-origin to point-of-use, reassuring consumers, as well as everyone along the global supply chain, that the products are authentic, transactions are protected, and operations are efficient. In addition, if there is an issue with a product, retailers can use blockchain to locate the affected batch and remove it from shelves faster than ever before. Blockchain’s revolutionary capabilities not only alleviate many points of friction in business transactions but they allow companies and individuals to easily exchange digital assets, positioning the technology for mass disruption.
Up to 99 per cent of Vietnamese products exported to the EU would be free of tariffs once the EU-Vietnam Free Trade Agreement (EVFTA) goes into effect. Vietnam’s exports to the bloc could rise by as much as four per cent to six per cent a year in the first ten years.
The deal would provide new opportunities for Vietnam to increase exports of clothing, seafood and agricultural products. The products Vietnam could not export before due to high tariffs can now be exported to the EU market with more competitive prices.
The deal would also benefit the EU, increasing the region’s income. It provides a big opportunity for European exporters. The EU hopes to finish processing this free trade agreement quickly so that businesses, workers and consumers alike in the EU can reap benefits as soon as possible.
However, signing of the EVFTA can also give rise to several challenges. There will be competitive pressure in the farming and automobile sectors but that’s not considered unusual. The deal is expected to be signed at the end of this year. Vietnam is the second country in the southeast Asian region after Singapore with which the EU has reached a free trade agreement.
From January to April ’18, Vietnam’s textile and clothing exports to the US were up 6.18 per cent from the corresponding period in 2017. Vietnam is the third largest textile and clothing exporter to the US after China and India (volume-wise) and second after China (value-wise). Readymade garments had a 94.34 per cent share of the exported value while the rest 5.66 per cent was shared by other textile products.
Earnings from readymade garment exports rose 4.05 per cent yearly. Exports of cotton apparels were up 1.84 per cent and exports of manmade fiber apparels were up 6.75 per cent. On the other hand, exports of wool apparels fell 12.34 per cent and exports of silk and veg apparels fell 12.34 per cent year-on-year.
Exports of non-apparel products from Vietnam to the US skyrocketed by 61.24 per cent. Made-ups topped the export growth in non-apparel products and saw a staggering jump of 107.18 per cent. Yarn exports from Vietnam to the US jumped by 15.20 per cent, while the value of fabric exports got a boost by 4.20 per cent. The South-east Asian manufacturing powerhouse is ready to achieve its export target of 35 billion dollars by this year.
