FW
Between July and November 2019, garment exports declined 7.74 per cent.
During the first fortnight of December exports declined by more than three per cent. One reason for falling garment exports is a significant increase in production costs because of the implementation of the minimum wage in December last year. Poor efficiency and the relatively higher cost of doing business are chipping away at Bangladesh’s trade competitiveness. Concentration of the industry on a few product items and to a handful of markets is a challenge. In the last eleven months to November, 61 factories were shut down, rendering 31,600 workers jobless.
The source tax on garment exports has been lowered to 0.25 per cent. The industry says this has to be done with retrospective effect and wants conditions attached to the one per cent special incentive to be withdrawn along with the tax on incentives. Another helpful factor is said to be a devaluation of the currency, especially for manmade fiber garment and synthetic fiber garment exports. This is expected to enable product diversification to take place automatically.
The garment industry has to increase its efficiency at least by 30 per cent if it wants to be more competitive globally and this can be done only through efficient management practices, technology selection and product and market diversification.
A ZDHC conference held in Mumbai on December 10 focused on creating awareness and commitment for safer chemical management practices in textile production. Over 200 delegates from local and global brands; textile chemical companies and service providers, came together to share their experiences, and exchange information on sustainable chemical management practices and challenges.
Panel discussions included topics on leveraging sustainability for growth and competitive advantage in the fashion industry and challenges and opportunities in the chemical management landscape.
The Indian apparel industry is at an early stage in terms of sustainability and building a sustainable supply chain. Leading apparel brands in India have realized the need to adopt sustainable chemical practices in the industry and are taking baby steps in this direction. The bulk of the Indian chemical industry is quite aware of chemical restrictions and leading companies are ready to invest in R&D and marketing activities to develop sustainable products, but need support from apparel brands. The Indian consumer is woefully bereft of product safety redressal mechanisms, but the Consumer Protection Act of August 2019 provides a ray of hope. ZDHC will proactively engage Indian apparel brands and support them in their journey for sustainable chemistry.
Garments Machinery Manufacturers and Suppliers Association (GMMSA) will be held in Ludhiana from January 3 to 6, 2020. The expo will showcase over 2,000 products in knitting, weaving, dyeing, finishing, printing, sewing machines and accessories by leading brands with participants from India and over 16 countries. Being a leading platform for showcasing of the latest machinery in garment manufacturing, this year’s edition too is being organised to facilitate garment machinery manufacturers and suppliers to showcase their products with the latest world-class technology. The expo is the largest industrial exhibition of garment machinery in Punjab. GMMSA expo has become a brand that has established its credibility as it provides the latest technology and knowledge at the doorsteps of the industry.
Machinery manufacturers are keen to be at the forefront in showcasing their latest technology to increase productivity and achieve cost efficiency in each process of garment manufacturing making the industry more competitive.
Many garment manufacturers of Ludhiana are facing the issue of long credit periods, as in the domestic market they have a payment cycle of almost six months. To manage this payment cycle they need to have enough resources. As this factor also increases costs, they are now seriously working to reduce the credit period.
Ashok Todi, President, West Bengal Hosiery Association
On the completion of 125 years of its operations, West Bengal Hosiery Association thanked its members for their contribution towards the growth of the association. “Their contribution encouraged us to give maximum benefits to consumers,” said Ashok Todi, President of the association.
WBHA now aims to bring everyone associated with the knitting industry in India on one platform. “This will enable us to move in the same direction and also reform the hosiery industry,” he added.
The Textile Association (India), Mumbai Unit has announced a Seminar on “Opportunities for Textile Industry in Challenging Scenario” on February 29, 2020 at Hotel Fortune Park Galaxy, Vapi, Gujarat (India). The seminar will provide an opportunity to the textile technologists amd experts to share their thoughts to meet the challenges and interaction will be highly productive and beneficial. This will give a rare opportunity to the participants to listen to such high-quality experts.
The seminars organised by The Textile Association (India), Mumbai Unit has always been on contemporary and innovative topics deliberating on the subject by high profile and experienced speakers. The TAI, Mumbai Unit apart from organising the events in Mumbai organises the seminar at Vapi for the benefit of the technicians of that cluster. This Seminar will show the roadmap for the opportunities for the Indian textile industry in the changing scenario. This seminar will be addressed by renowned experts from different parts of India who will present their papers to over 200 equally high-profile practicing technologists and technicians.
The seminar will share insights on the varied industry and textile technical topics. Its panel discussion will focus on ‘Developments in Textile Industry to meet the emerging market demands.’ The panel will comprise experts from the textile industry.
To tap the growing potential of the Tanzanian market, the 15th editon of the Tanzanian Trade Show will be held from February 21-23, 2020. Setting new highs for participation from over 20 countries and visitors from over 12 African countries, TTS 2020 will enable international companies to showcase their products and services in the developing markets of Tanzania and other East & Central African countries. It will also provide International and Tanzanian Enterprises an opportunity to showcase their distinctive products and explore the current requirement of the market.
Tanzania is the major distribution hub to the 410 million consumer market of East Africa as it has one of the busiest ports in the region. With its own population of approximately 50 million, it is one of the best countries to target in Africa as it boasts of a long history of peace and political stability. It is also one of safest places to travel with a booming business and a fast growing economy compared to other countries in the region.
The overall performance of the Tanzanian economy remains strong with a high rate of growth, and a low rate of inflation over the past five years. The country’s GDP grew to US$ 44.5 billion n 2016 from US$ 31.4 billion in 2010. Its annual GDP growth rate averaged 7 per cent over the past 5 years, making it one of the 20 fastest growing economies in the world and beating the Sub-Saharan Africa average GDP growth rate of 4.4 per cent during the same period. Its imports grew by 27 per cent, from US $ 9.8bilion to US$12.5 billion in 2016.
Sandeep Sakseria, Hony Secretary, West Bengal Hosiery Association
Starting on a small scale, the Indian hosiery industry has evolved over the years. ”This evolution has led to the growth of the West Bengal Hosiery Association into an official organisation for West Bengal hosiery manufacturers,” said Sandeep Sakseria, Hony Secretary, West Bengal Hosiery Association at an event to celebrate the completion of 125 years of the association.
The knitting industry in West Bengal is evolving at a rapid pace. “To grow further, we need to not only upgrade our machines but also acquire more land and amend our labor laws. We need to also build integrated units like those in Bangladesh,” affirms Seksaria.
With its scope widening over the years, hosiery industry in India has moved to knitwear. Knitwear now constitutes 20 percent share of the apparel industry. Bangladesh, which has required manpower to develop this sector, is now focusing on it. “We too have the entrepreneurship, skilled manpower, raw materials to grow this industry. However, we need more support from the government. This platform will enable knitwear leaders to exchange their views on the industry issues,” adds Seksaria.
Total 39 US textile companies were certified by the Global Organic Textile Standard (GOTS) in 2019, bringing the total to 113 individual companies. The newly-certified companies include one knitter, Roshan Trading Inc, and four cotton gins: King-Mesa Gin, Mesa Farmers Cooperative Inc, West Gin, and Woolam Gin.
A total of 14 manufacturers were certified: Avocado Green Brands, BAC Distributing, Brentwood Home, Chevaldi, Diamond Wipes International, Fibertex Nonwovens, Fischer Manufacturing, New Fashion Products, Panditos, Quality Sleep Shop, Sleep Technologies, Procter and Gamble, Tour Image, and WPT Corporation.
Retailers to gain certification included A1 Home Collections, Cole and Cleo, Conscious Step, Everlane, Fair Seas Supply Company, Green Cotton Group USA, Helix Sleep, Hope & Henry, Louis Dreyfus Company Cotton, Noleo Care Company, Modn Made, Organics and More, Pem-America, Sweet Dreams, Standard Fiber, Revman International, Sally Fox, Simple Ecology, The Home Depot, The William Carter Co, and Warwick Fulfillment Solutions.
GOTS covers the processing, manufacturing, packaging, labeling, trading and distribution of all textiles made from at least 70 per cent certified organic natural fibers.
Products may only be sold with a GOTS label if the entire supply-chain is certified and the necessary scope and transaction certificates have been obtained to prove certification. An independent on-site inspection is carried out annually by GOTS-approved certifiers.
The Solapur Garment Manufacturers Association (SGMA) recently urged the Union government to frame a new textile policy that would build India as garment sourcing hub for the whole world. As per SGMA, the new textile policy should promote entrepreneurship in the garment manufacturing sector. It should provide new units with loans of up to Rs 2 crore with interest-free provision for the first three years and subsequent three years with a subsidised interest rate of 4 per cent per annum. This will make them more competitive.
SGMA also urged the government to employ unskilled labor in the industry. It should introduce an on-job training incentive scheme wherein an incentive of Rs 3,500 per labour per month is provided for a period of initial six months.
Further, a provision should be made for a single window clearance system for setting up garment/ textile units and a single nodal officer must make sure that all the licenses and permission are be given within 15 days from the date of application.
The association also urged the government to declare Solapur as the India’s Uniform Manufacturing Zone which would make it one of the world’s first cities to have unique uniform sourcing hub.
Some US brands and retailers had a tough 2019. Once a venerable American institution, Macy’s is now among the ranks of tired department stores that have struggled to differentiate their offerings and give shoppers a reason to trek to their sprawling, mall-based stores. Gap split itself into two publicly traded companies: Old Navy will be spun off as a standalone company, while Gap, Banana Republic and several smaller brands will compose another. The breakup is meant to allow Old Navy, the crown jewel, to flourish on its own. However, sales at Old Navy have slipped in recent quarters.
L Brands, which owns Victoria’s Secret, also had a dismal year, with shares dropping 28 per cent. The lingerie chain, which has long been known for its hyper-sexualized advertisements, has lost market share to online upstarts that promote body-positive photographs of real women. In an effort to remake its image, it discontinued its annual fashion show this year and hired its first transgender model. Even so, waning demand has translated into declining sales and big losses.
Amazon has been punished by investors to some extent because its significant investment in one-day shipping has eaten into profits. Nevertheless, the e-commerce giant still recorded a gain of 19 per cent.
