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Cotton prices will remain weak as supplies of cotton outstrip demand and surpluses grows, says Textiles Intelligence. The average price of cotton has been falling and is forecasted to fall further. One factor affecting the price of cotton is weak demand caused by uncertainty arising from the US-China trade war. Until relations between the two countries improve, demand for cotton will remain suppressed and so will the cotton price unless there are major revisions to crop estimates or there are signs of greater strength in the global economy. The continued weakness in cotton prices has been reinforced by an increase in the size of the global stockpile. Surpluses are growing in the main producing nations, and stock levels at the end of the 2019-20 season are expected to be 1.3 per cent higher than they were at the beginning.
Pressure on prices will continue into 2020-21 as demand is forecasted to remain weak while yields are expected to improve as a consequence of better weather conditions. In fact, the global cotton crop in 2020-21 is forecast to reach its second highest level ever.
Global consumption of cotton is expected to rise in the 2019-20 season as Chinese demand stabilises. But there is also expected to be a rise in global cotton production as yields in India rebound and plantings increase in the USA.
UKFT will continue to work closely with the apparel industry to help companies grow their exports to the EU and the rest of the world.
The organisation will undertake a new project to promote the fantastic capabilities of UK textile manufacturers at the key textile trade shows of Première Vision, Milano Unica and Intertextile Shanghai.
Through membership, UKFT offers one-to-one assistance with business plans and strategies, market trends, HR and employment advice, marketing and PR, logistics, IP protection, labelling, standards, range planning and pricing, and more.
This year the group will also the launch of a range of new UKFT membership benefits including exclusive discounts and deals on everything from insurance, foreign exchange andcrowdfunding.
The UKFT seminar programme will start again in the spring and will feature topics such as access to finance, e-commerce, social media, practical exporting, sustainability and care labelling. And this year will see UKFT develop a range of online seminars to ensure companies across the country can access information to help their businesses grow.
There will also be launching of Scottish Fashion & Textiles Export Strategy and a Scottish Skills Strategy this year, together with an increased focus on innovation. We will also continue to develop our work in Wales and Northern Ireland helping to maintain UKFT’s position as the largest network of fashion and textile businesses in the UK.
To ensure new businesses can enter, grow and thrive within the industry, UK Fashion is relaunching UKFT Rise this month as a supportive community for UK fashion and textile entrepreneurs who have been in the business less than three years. The first event is on 30 January in London
JETRO (Japanese External Trade Organization), is overwhelmed to announce the third installment of JAPAN TEXTILE SALON in NYC with 16 Japanese textile companies presenting their latest designs in New York City to be held on January 21st-22nd from 10 am-6 pm at The Altman Building 135 West 18th Street, New York.
The Japan Textile Salon is an innovative platform showcasing the latest textile sources. Discover a wide array of textiles, fabric mixes and cutting-edge production capabilities coming out of Japan.
This season, the organization will focus on the topic of sustainability and eco-friendly textiles. The group has shortlisted 16 visionary companies who are among the best weavers, printing producers, design studios and manufactures with R&D capabilities from Japan.
They will also host two-panel discussions by leading industry experts on sustainability. The fashion industry is the second most polluting industry in the world. From the extreme water usage, dyes, fabrics, factories and waste, fashion heavily contributes to environmental damage. The term “sustainable fashion” means helping to protect the earth by being more thoughtful in clothing production and consumption in order to create a better tomorrow. We will explore ways in which the industry is working toward solving this global issue.
The Salon is organized by JETRO which is a government-related an organization that promotes mutual trade and investment between Japan and the rest of the world. Established in 1958 to promote Japanese exports abroad, JETRO's core focus is helping small to medium size Japanese firms maximize their global export potential and assist global companies in setting up business opportunities in Japan.
"The $2.5 trillion fashion industry accounts for 10 per cent of global greenhouse gas emissions. Most of this damage is caused during the production and processing of garments especially those made from synthetic materials. These synthetic materials are sourced from fossil fuel and account for over 60 per cent of all fibers used today. Synthetic fibers are non-biodegradable and release microplastics on washing which degrades not just the environment but also human health. Another major culprit of sustainable fashion is leather, whose supply is underpinned by the use of chemicals and releases excessive amounts of methane."
The $2.5 trillion fashion industry accounts for 10 per cent of global greenhouse gas emissions. Most of this damage is caused during the production and processing of garments especially those made from synthetic materials. These synthetic materials are sourced from fossil fuel and account for over 60 per cent of all fibers used today.
Synthetic fibers are non-biodegradable and release microplastics on washing which degrades not just the environment but also human health. Another major culprit of sustainable fashion is leather, whose supply is underpinned by the use of chemicals and releases excessive amounts of methane.
Cotton a sustainable option to synthetics
A sustainable option to these is cotton, a natural, biodegradable fiber whose farming and production relies on the use of pesticides and extreme amounts of water. Using the same methods of production and fabrics for majority of garments, can ensure the industry’s practices become more sustainable and hold suppliers accountable for heightening unsustainable garments in the market. The fashion industry forecasts carbon emissions will grow 60 per cent by 2030. To counter these negative effects, we need to introduce stricter policies. However, the current policies do not provide a space for reforms that could address the issue’s severity. Though G7’s Fashion Pact, signed in 2019, has come as a relief, brands are still not committed to mitigate and adapt to climate change, restore biodiversity and protect the oceans.
A non-binding guideline to enforce a legal framework
Though the industry has introduced some other initiatives including the Fashion Industry Charter for Climate Action and the UN Alliance for Sustainable Fashion to ensure
sectoral engagement, the policy outputs of these remain voluntary. The Organisation for Economic Co-operation and Development and the International Labor Organisation have also complied a non-binding guideline for enterprises. This guideline emphasises that domestic legislation should ‘establish and enforce adequate legal frameworks’.
The European Union regulates the apparel industry by ensuring its member states and foreign exporters follow rules on the use of chemicals, product safety, packaging and packaging waste. The policy makers have been pondering over such fundamental environmental safeguards for years. However, they need to formulate more progressive notions.
A new tax on synthetic fibers needed
Though the industry needs a harmonised legal framework, it is currently being presented with sporadic voluntary schemes perceived as proofs of sustainable manufacturing practices. The industry has introduced several certification schemes, such as the Global Organic Textile Standard, OEKO-TEX and EU Ecolabel, to testify textiles’ sustainable manufacturing and assessment tools, like the Higg Index by Sustainable Apparel Coalition, and labeling, to characterise products as ‘sustainable apparel’. As none of these schemes’ use is prescribed by the current policies, accountability is not part of the system yet.
Based on these forecasts, it is evident that the industry needs to fill some policy gaps urgently. For this, it can introduce either a tax or limitation on the use of (new) synthetic fibres. It can also incentivise sustainable farming and production through subsidies, like the EU offered to boost sustainable farming in select countries, could promote environmental sustainability and economic development, too. The industry can achieve its sustainability goals by making the current schemes mandatory.
The 20th edition of the knitting and sewing trade show Knit-Vision, to be held in Jalandhar, Ludhiana, will showcase 200 businesses from India and abroad. Organised by Showman Associates from January 18-20, 2020, Knit-Vision will feature businesses in categories including knitting, sewing, accessories, textiles, printing, processing, allied machinery, and technology, according to the trade show’s website. The event expects over 50,000 visitors and the exhibition space will measure 1 lakh sq. ft.
Over 1,000 products will be showcased at the four-day business-to-business event. The trade show has three main sections, Tex Tech, PrintoTech, and Denim Tech. Product categories will include buttons, rivets, fasteners, textile dying machines, power loom machines, knitting machines, sewing machines, knitwear accessories, embroidery equipment, leather machines, and weaving machinery among others.
Organiser Showman Associates is a Punjab-based fashion events business which also hosts a range of business-to-customer shopping exhibitions. The business is also currently hosting the Grand Shopping Expo, a fashion-themed retail festival with a focus on clothing and accessories, at the Government College for Girls in Ludhiana from January 3 to 7.
Industrialists in Pakistan have urged textile leaders to collaborate with China to modernise its textile industry and reduce trade barriers between the two countries, ultimately boosting textile export from Pakistan. The textile industry in Pakistan currently suffers from lack of product and process innovation, heavy reliance on local and traditional raw materials and technologies, leadership and management skill gaps, compliance issues as perceived by international buyers, high cost of capital and difficulty in obtaining financing for new facilities are some of the major problems the textile industry of Pakistan is grappling with.
Chinese companies can bring technology and higher skills with them which would improve the productivity and efficiency of the textile sector which largely lacks technically skilled labor and supervisory staff. The two countries should develop corporate and strategic alliances for different parts of supply chain integration. Pakistan exports a wide range of items including raw cotton, cotton fabric, cotton yarn and thread, knitwear, bedwear, woollen carpets and rugs, garments, towels and tents, and there are different sub-sectors within the textile industry including spinning, weaving, processing and stitching.
Around the spring festival of 2019, the spandex operating rate in China declined to below 80 per cent. Monthly operating rate of the spandex industry was at 79 to 83 per cent in the second half of this year, which was lower than the same period last year. The spandex industry operating rate is anticipated to gradually get close to around 80 per cent. In the third and the fourth quarter, spandex industry inventory continued to slowly fall. In the second half of this year, demand for covered yarn, warp knitting and double-faced circular knitting for spandex was considerable. Coupled with the shutdown and production reduction of old spandex units, the annual spandex output growth was extremely small compared with the same period of last year. Inventory of spandex plants hit a high at the beginning of the third quarter, and it was in a slow downward tendency at the end of the year, with an inventory drop of around ten days.
Spandex downstream weaving plants may collectively shut down for taking a holiday during the spring festival. Though spandex plants are likely to decrease the operating rate, the drop may be smaller than that of downstream. During the spring festival, inventory of spandex plants is anticipated to move up, which may restrict the growth in market after the spring festival.
Bangladesh’s export earnings fell 5.84 per cent in the first six months of the fiscal. Receipt between July and December was also 12.77 per cent lower than the half-yearly target. Of the six months, shipments rose only in July and December. Exports rebounded in December, registering a 2.89 per cent growth. In the first half, shipments of apparel, which usually make up more than 80 per cent of national exports, fell 6.21 per cent. Knitwear exports were down 5.16 per cent and woven exports declined 7.28 per cent. However, export earnings from apparel items improved a bit in December in comparison to November. But the increase in December does not signify that the sector is turning around as such. The first two weeks of December remained negative while the second half picked up slightly.
Leather and leather goods are the second highest export earner for Bangladesh after garments. But between July and December, export earnings from leather and leather goods fell 10.61 per cent. Worse, the possibility of a rebound for export of leather and leather goods over the next two years is dim as the demand for non-leather goods is on the rise worldwide. Non-leather goods are seen as comfortable and less expensive compared to leather goods.
"Both department stores and apparel retailers in the US lost ground in 2019 as consumers increasingly turned to online shopping. Worst affected were stores like Macy’s and Gap, along with Kohl’s Corp., L Brands Inc. and Nordstorm Inc., which emerged as the poorest-performing individual stocks on the S&P index. These brands lost most of their market share to online and discount retailers like Ross Stores Inc. and TJX Cos., which owns Marshalls and T.J. Maxx."
Both department stores and apparel retailers in the US lost ground in 2019 as consumers increasingly turned to online shopping. Worst affected were stores like Macy’s and Gap, along with Kohl’s Corp., L Brands Inc. and Nordstorm Inc., which emerged as the poorest-performing individual stocks on the S&P index. These brands lost most of their market share to online and discount retailers like Ross Stores Inc. and TJX Cos., which owns Marshalls and T.J. Maxx.
As per Credit Suisse, over 7,600 stores closed during 2019 and the outlook for 2020 does not look any brighter. However, many US department stores and apparel retailers plan to buck this slowdown and bounce back by closing their stores, shrinking their store sizes and offering more experiences like old-fashioned tailoring and trendy in-store cafes to attract customers.
Department stores to scale down operations
Most department stores will scale down their store fleets. Macy’s, which has about 640 namesake stores, has been gradually closing locations since 2016. Similarly, J.C. Penney,
which has about 850 stores in the US, closed a handful of them this year. Due to these closures, the S&P 500 department stores index is set to drop close by around 30 this year, the biggest decline among all S&P 500 industry indices. Like Macy’s and JC Penney, Gap too plans to shut about 230 stores with more focus on Old Navy and Athleta brands. Preppy apparel retailer Abercrombie & Fitch Co. is also closing flagship stores. Retailers who don’t plan to close their stores may shrink their sizes. As Sucharita Kodali, an analyst at Forrester Research reveals, Lord & Taylor plans to introduce new, more compact stores.
Focus on new retail experiences
Department stores also plan to reorganise their apparel spaces. They might follow the Nordstrom Local model, which focuses on tailoring, returns and helping customers find a specific look, rather than selling items. They might also focus on setting up their showrooms near recreational spaces like restaurants, bars and cafes. GlobalData research reveals for online thrift store ThredUp, the second-hand apparel market is expected to grow to $32 billion in 2020. This will compel apparel companies to either revise their inventory or join the resellers. Retailers will also collaborate with resellers like ThredUp for selling their collections.
However, the new accounting regulations could impact the income of retailers and department stores from credit cards. Department stores will be affected more as they rely more on credit income. Most hit will be Macy’s followed by Target.
Pakistan’s cotton growers and ginners want the five per cent tax to be withdrawn. They say, if the five per cent duty on import of cotton were removed, prices of local cotton would further decline. Cotton growers’ complain that only the proposal for withdrawal of duty on imported cotton is under consideration and not on cotton seed oilcake. The price of cotton oil seed has decreased compared to oilcake, which this is alarming as the oil is supposed to be extracted from cotton oil, which is used in animal feed. The country has to import more edible oil due to this situation.
If cotton is imported at the current duty rate, it is cheaper than local cotton. The duty draw facility is also available to the textile sector on re-export of that commodity.
Due to this situation growers have stopped investing in the cotton crop. Even when there is a shortage of cotton in the country its prices are declining. Cotton growers say when there is a need to support cotton, its prices drop and the price gap between the Pakistan market and the international market widens, as the All Pakistan Textile Mills Association (PTMA) is a single buyer influencing the market
