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With the Global Investors Meet (GIM) around the corner in September, the Tamil Nadu government has decided to unveil its new investor-friendly textile policy in the next few days. Before the final draft is made, the Handlooms and Textiles Department is also studying the textile policies of states like Maharashtra, Gujarat and Madhya Pradesh to evaluate the financial and legal aspects.
The ministers concerned along with representatives of the textile sector met recently and sought the drafting of a new textile policy in accordance with recent trends in the sector. Sources say the revised policy may be announced before the commencement of the Global Investor Meet scheduled on September 9. As part of the GIM, 12 focus sectors have been identified, one of which is the textiles and apparels sector.
Minister for Handlooms and Textiles S Gokula Indira also said that the government plans to introduce suitable tax concessions and the single window system for the approval of the investment proposals. Tamil Nadu being one of the leading states in the textile industry has the country’s largest spinning industry accounting for almost 80 per cent of the total installed capacity in India. The state also contributes 40 per cent of the total yarn production in the country. There are 2,614 hand processing units and 985 power processing units in Tamil Nadu and the textile industry accounts for 17 per cent of the total invested capital in all the industries.
www.tn.gov.in
At the recently concluded Capsule New York, the men's denim collections showcased two distinct design directions for Spring ’16 lines. Some brands’ focus was on perfecting lightweight raw denim, while others tried out new silhouettes and washes. Designers were more creative and combined slim-cut denims with a dropped crotch. Annex is one brand that offered this silhouette. The brand Mostly Heard Rarely Seen offered the ultimate street wear in its exaggerated version of the style with shorts and jeans with a double-drop crotch. It also had a varied range with a combination of fabrics, hand-painted splatter effects, and patchwork.
Some brands looked into avante garde trends and paid attention to fabrics (specifically light-weight denims). Designer Jongsoo Lee of the brand Document, which has an eco-friendly goal, said that he focuses on thin denims to make the items feel more natural. Many brands tried out new wash techniques. Big John’s Sales and Marketing Representative Kiyo Kakemizu mentioned that raw denim’s popularity was dipping since most denim aficionados already had their pairs. Thus, Big John was focused on hand-whiskering effects, and ozone-wash for bleaching and various finishing treatments.
James Long too is experimenting with washes, treatments and design details, while keeping a relatively traditional cut and fit to jeans.
Australia, the world's largest wool producer and exporter will host the Wool for Future Generations: the 85th IWTO Congress in Sydney in April 2016. The event is co-hosted by the Federation of Australian Wool Organisations (FAWO).
Sydney, being the birthplace of Australian wool industry, makes an excellent destination to hold this event. A must-attend event for the global wool industry, the IWTO Congress connects wool growers, spinners, weavers, garment manufacturers, designers and retailers. Wool industry experts would discuss the role of wool for future generation, at this three-day event, which provides a strong platform for business networking, discussion and exchange between members on issues of interest to the industry.
The topics covered at the Congress would include market intelligence, consumer trends, health and wellness, environment, trade, retail trends and education, for the coming generations. Also, trade exhibitions and displays will be an integral part of the Congress.
Local and international speakers will cover relevant topics in the wool industry. Networking opportunities abound, with international textile manufacturers and fashion retailers participating. Wool is viewed as a fibre for future generations and the aim of such an event is to help the young generation take this forward with innovation, new technologies, creativity, training and our the experts’ to ensure a sustainable future for all.
Experts believe cotton stockpiles in India are poised to jump to a record as exports plunge and revival in monsoon rains boosts crop prospects. Inventories will surge 25 per cent by October from a year earlier. The surplus may further widen with next year’s harvest. China is importing less cotton because of swollen inventories. China’s imports in the first half of the year slumped 33 per cent. That has India, US and Australia battling for market share in countries such as Bangladesh and Vietnam.
Prices in New York slumped to a five-year low in January amid global oversupply. Futures on the Multi Commodity Exchange of India in Mumbai have declined about 34 per cent from a record in 2013. Disposing off the surplus is going to be a challenge for India. The silver lining for India is rising demand from domestic textile mills. Consumption may increase five per cent in 2015-16.
The area under cotton may drop five to seven per cent this year as most farmers didn’t get good prices in 2014-15. The plunge in prices forced the Cotton Corporation of India to buy 8.7 million bales at guaranteed prices. A revival in monsoon rains over the main growing regions may help the crop already planted.
In the first semester of 2015, Rieter, a global leader in textiles machinery saw sales rise six per cent while EBITDA margin increased by 36 per cent. Net profit rose to 5.3 per cent of sales. R&D spending increased slightly. Since January 2015, Rieter has been conducting its operations in machinery business, spare parts and services and technology components. There is a positive development in the three business groups and the effects of the cost-reduction measures.
The tax ratio was 29.7 per cent compared to 33.5 per cent in the first half of 2014. The group’s net result rose to 5.3 per cent of sales compared to 2.7 per cent of sales in the first half of 2014. Net working capital increased in the first half year of 2015 although inventories were reduced. This development is due to an increase in trade receivables and a reduction in trade payables as well as advance payments from customers.
Asian markets continued to develop at the good level during the first half of 2015. Compared to strong first half of 2014, a significant drop in orders was recorded above all in Turkey, while customers in India continued to invest well. In China, the market remained subdued.
www.rieter.com/
Women's wear designer Tanya Taylor and men's wear designer Siki Im have been named the winners of the 2015 Woolmark Prize for the US region. Other finalists in the women’s wear category were Chris Gelinas, Kaelen, Nellie Partow and Novis. In menswear, Siki Im beat brands Cadet, David Hart, Lucio Castro and Thaddeus O'Neil.
The winners were chosen based on their sketches of a six-piece merino-wool capsule collection, with one garment actually produced. Two finalists from each international region — Australia, Asia, the US, Europe, the UK and India, Pakistan, Middle East — will receive a cash prize of Australian $50,000 and the chance to produce and sell a six-piece capsule collection made from Australian superfine merino wool.
From there, two overall international merino prize winners (one from men’s wear, one women’s wear) will be named by the Merino Wool Company. The pair will each receive Australian $100,000. Men’s wear finalist will be announced in Italy in January while the women’s wear finalists will be judged in New York in February. A short time back the winners of this year's international Woolmark prize for Europe and Australia were announced. Also, two South Korean designers were named winners for the Asia region.
www.woolmarkprize.com/
The International Apparel Sourcing Show in New York was kicked off by hundreds of textile and apparel makers from China. The figure this year was up 30 per cent compared to last year as these companies are looking to get a foothold in new niche markets in the US. The show being held at the Jacob K Javits Convention Center, Manhattan has over 600 Chinese companies and around 1,000 companies from 20 countries participating and showcasing their products.
Sun Ruizhe, Vice Chairman of the China National Textile and Apparel Council pointed out China’s textile and apparel sector was undergoing a change and more Chinese companies were focusing on the overseas market. This was partly because of the saturation in China. Chinese consul-general in New York Zhang Qiyue also expressed his happiness about China’s presence at the show, which showed that the future of China-US trade and economic cooperation in the textile and apparel industry was promising.
China’s textile and fabric industry’s contribution to the US-China bilateral relations was huge. Bilateral textile and apparel commerce grew from $6.2 billion to $46 billion from 2000-2014. Exports from China to the US increased a little from January to May this year, as per the National Bureau of Statistics. In April 2015, exports of textiles and apparel to the US increased by 7.8 per cent.
Gap Inc, one of the biggest players in the industry has seen a drop in its market share in the US from 5.1 per cent to 4.7 per cent over the past five years. This, despite the brand performing better than other casual brands. The apparel retail’s rapid shift to online space and store-based retailers’ foray in this arena being relatively slower means that the brand may not be able to reverse the drop soon. In fact, Gap Inc’s store consolidation strategy has made it almost certain that its market share will continue to go down. The company needs to strive hard to stay ahead of casual apparel brands as it can hardly recover its market share from fashion players.
Still a strong player
Gap holds less than 5 per cent market share, despite being one the bigger players in the US. This shows the diverse nature of the US apparel industry. This may seem a low share, but the company has grabbed this share with only three main brands in its arsenal. Brands that have a comparable or higher market share are multi-brand retail chains, general merchandise retailers and supermarkets who generally offer a number of national and private label brands.
After the US recession, Gap started losing buyers who moved quickly to fast-fashion brands. They moved away from casual clothing to affordable fashion wear. Gap’s merchandise was being viewed as less fashionable by consumers which had a negative impact on sales. The market share of the retailer fell from 5.11 per cent in 2009 to 4.34 per cent in 2012. And as fast fashion brands continue to gain ground Gap’s market share will continue to fall. But despite that Gap will continue to remain a strong player as specialty players such as Abercrombie, American Eagle, and Aeropostale are smaller compared to Gap. Thus, the company’s position looks strong, although it does seem that it’s losing its footing over the past few years with growing competition. Of course, Gap can continue its strong leadership position by smart inventory control, and bringing out trendy products in keeping with demand.
The Bangladesh Apparel & Safety Exposition is set to take place at Chittagong from 6-8 August 2015. The expo is being organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The aim is to explore every avenue to achieve the vision of $50 billion in RMG export by 2021. This target was set during the Dhaka Apparel Summit 2014. Chittagong as the host city for the event has special significance as it is the commercial hub of Bangladesh. About 95 per cent of the country’s sea-borne export and import is handled at Chittagong Port.
The expo will feature locally developed apparels. This platform also provides an opportunity for global apparel retailers to meet experienced clothing manufacturers of Bangladesh. The event also aims to facilitate dialogue among stakeholders through four informative seminars to develop ways for the country to pursue its vision of the $50 billion benchmark and also the aim to be the main brand across the world by 2021. Besides, cultural talent of the country’s garment workers and their caliber will also be showcased at the event.
Since Bangladesh is considered the preferred apparel-sourcing destination, BGMEA hopes that this event will help exploit the country’s potential and ensure a safe and sustainable apparel sector in Bangladesh.
The Tirupur hosiery cluster feels that changes in the procedure of claiming excise duty credit could hamper its business. According to the new rules, excise duty credit can be claimed by producers of end products only if the previous links in the production chain have paid the duty for the inputs at each of the stages. Producers of garments from now will not be able to get exemptions on excise duty if duty it has not been paid on any of the inputs like buttons, fabrics or even packaging materials.
Tirupur says it’s a hosiery product manufacturing cluster which is dominated by mirco, small and medium scale enterprises. The production processes are scattered with little vertical integration. So ,it would be difficult for garment manufacturers to prove that duty has been paid on all items used in the course of manufacturing garments. Hosiery manufacturers further say most suppliers of inputs are micro enterprises and expecting them to keep financial statements on duties paid is not realistic.
They feel that the amendment notification was issued without much deliberation with industrialists in clusters like Tirupur, where the nomenclature of the production chain is unique due to its dispersed nature.
