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The Tirupur Exporter’s Association has revealed that the exports of readymade garments from India declined by 9.18 per cent in June 2019 and 2.44 per cent in August 2019. This was the lowest growth recorded during both months in the past six years. India exported readymade garments worth $1.260 billion in August 2019 from across the country; In June, it recorded $1.357 billion worth of exports. The Tirupur apparel cluster accounted for about for 55 per cent of the total trade.
The industry is witnessing the full adverse effect of demonetisation and GST. Around 50 per cent work has come down in apparel units in recent months, as many were layingff workers.
The central government is taking steps like the restoration of Merchandise Exports for India Scheme and other incentives to put the industry on the growth track. But, it needs to establish Free Trade Agreements (FTA) with countries like the US and the European Union, without which Indian units cannot compete with companies in underdeveloped countries including Bangladesh, Vietnam and Cambodia.
India’s leather and leather products exports dipped four per cent in July 2019. Yearly decline was about 13 per cent. India is the second largest global exporter of leather garments. Being a consumer oriented sector, and predominantly concentrated in the micro, small and medium segment, the leather and footwear sector has been facing challenges on the export front due to factors like recessionary trends and fierce price competition. Major export destinations include Europe and the US. The sector employs about 42 lakh people.
Easy and timely availability of credit with affordable interest levels is extremely important for the leather and footwear sector as this alone can help in tapping the huge opportunities available in global markets. In this context, major steps are being contemplated including measures to improve trade credit flows and transmission of interest rate cuts by banks and monitoring export finance through an inter-ministerial group in the department of commerce. Priority sector lending norms for export finance are expected to galvanize the sector particularly small and medium units which have been affected by the slowdown. To help revive leather garment exports, the industry has requested for an enhancement of the duty free limit from three per cent to five per cent of freight on board value of exports.
H&M sales were up eight per cent in the third quarter from a year earlier.It was the fifth consecutive quarterly rise.
H&M, based in Sweden, is the world’s second biggest fashion retailer. The group has had well-received summer collections and an increased market share. The stock has soared 51 per cent this year on hopes that H&M is getting back on track after years of falling profits due to slowing sales at its core brand’s stores, and investments to adapt to tougher competition and changing shopping habits. Activity levels related to its transformation work remained high in the third quarter, an indication investments in physical stores and online will weigh on margins again in the quarter.
In the year-ago period, sales were disrupted in several key markets due to troubles implementing a new logistics system. Globally, H&M is also increasingly integrating online and physical stores in most markets including India where it launched its online store in March this year. The retailer stocks fast fashion items created in-house and teams up with designers for one-time collections. H&M has started to geographically diversify its collaborations, after having mostly formed partnerships with western brands in the past. For the upcoming autumn season, H&M has teamed up on capsule collections with an Italian designer and a Chinese designer.
Chic will be held in China, September 25 to 27, 2019. This is Asia’s leading trade fair for fashion and lifestyle. It will feature more than 690 exhibitors and brands from 10 nations. Sustainable development, green innovations and ecological supply chain solutions are the focus of attention at two locations at the fair. International brands will showcase in country pavilions (Italy, Korea, Hong Kong etc.). International individual exhibitors also present themselves in the different exhibition segments.
The professional visitor management and matchmaking offered by Chic enables international exhibitors to participate efficiently in the fair. Meetings and shows on recycling, climate leadership, sustainable production and green innovation will take place. The Sustainable Zone, which always takes place at the autumn fair, will show the latest sustainable market developments in fashion and lifestyle, environmentally conscious innovations and ecological supply chain solutions. For many trade visitors, Chic is the only way to obtain a competent market overview. The trade fair segments include those for men’s wear, women’s wear, leather and fur, accessories, bags and shoes.
China’s strong domestic market is expected to boost retail sales this year by 3.5 per cent, despite trade conflicts with the US. With a market share of 54.7 per cent, China also remains the world’s largest e-commerce market.
T. Rajkumar is the new Chairman of the Confederation of Indian Textile Industry. He heads Sri Mahasakthi Mills, Sri Arumuga Enterprise and Foundation One Infrastructures. He is also the Chairman of the Textile Sector Skill council and past chairman of Southern India Mills’ Association apart from being actively involved in various industrial bodies and educational institutions.
DL Sharma is the new Deputy Chairman of CITI. He is the director of Vardhman Textiles and managing director of Vardhman Yarns and Threads. He was president of the Ludhiana Management Association.
SK Khandelia is new Vice Chairman. He is the president and CEO of Sutlej Textiles and Industries. He is a chartered accountant. Through a steady application of forward thinking and a resilient strategy, he has been able to optimize Sutlej’s performance in terms of volume and profitability, which rose sharply after his takeover. Khandelia is actively involved in many industry associations and has been instrumental in initiating and implementing various philanthropic and welfare activities in his personal capacity as well as under the Corporate Social Responsibility.
Confederation of Indian Textile Industry is one of the leading industry chambers of the textile and clothing industry, representing the entire textile value chain through its leading regional and industry associations and 18 major corporate members.
In the first half of 2019 fabric mills in China faced a decrease in orders.At the same time inventory levels remained high. So weavers had to cut or halt production. From mid to late August, the market showed signs of recovery. Enquiries and orders slightly increased compared to those in the earlier stages, but overall shipments were still limited. Sampling orders of knitting factories increased, and the overall operating rate recovered by 50 per cent or so. In September, some actual orders came in and shipments of weavers also increased slightly. However, the price continued to be weak. Dyeing mills gradually got busy, but there was still a lull compared to previous years.
In early September, with the implementation of actual orders and as weavers gave discounts regardless of cost, the inventory burden eased. But current cotton stocks were still higher than those in the same period last year. Fabric mills will be dominated by selling stocks in September. In addition, due to the long-term impact of the Sino-US trade war, some orders shifted to southeast Asian countries. In addition to the increased downward pressure on the economy, order recovery in September is not expected to be as good as in previous years and may be weaker than market expectations.
The Global Change Award is an attempt to move the needle in a space where global consumption of textiles and shoes is on track to increase by 65 per cent by 2030.
The belief is that creativity and innovation can flip numbers in the planet’s favor and enable great transformation in the fashion industry. The Global Change Award was initiated in 2015 by the H&M Foundation. In its fifth edition the award has received more than 14,000 entries from 182 countries. Named the Nobel Prize of fashion, it aims to reduce fashion’s impact on the planet by helping groundbreaking ideas move from tissue sketch to market. The award’s aim is to inspire a new generation of creatives, scientists and entrepreneurs to reduce the planetary impact of the fashion industry through innovation.
To win, the innovation should have the potential to make fashion circular and to scale. Other criteria are a novelty, that the idea is economically sustainable, and that the innovation team is committed to making a difference and that the innovation should allow for major change in the entire industry. Several of the previous winners have on-going co-operations and pilot projects with the industry, and some are already on the market.
Bangladesh’s leather and leather products exports increased by 1.32 per cent in July to August of the current financial year. Exports of leather and leather goods from Bangladesh rebounded after more than two years due to higher shipments to non-traditional markets. Traditional markets are South Korea, China, European Union, US and Canada. Non-traditional ones are South Africa, India, Australia, Spain, Japan and Singapore. Moreover, the value addition to leather products was another reason behind the positive export trend. Work orders are expected to further increase after a certification is attained from the global rights body Labor Working Group. The LWG certification is awarded to companies based on points awarded for factors such as treatment and less use of water, solid waste management, chemical use and labor welfare.
The leather industry in Bangladesh has been struggling due to lack of new investment, lack of product variety, artificial leather penetration, and price hike of leather products. The US-China trade war is also blamed for the slump. China used to import raw hide and process it further to make raw material. Since the US imposed a 25 per cent tariff on a Chinese products entering the US market, including leather, China has stopped taking raw hide from Bangladesh.
ProGARM, the UK’s leading specialist in arc flash protection, has launched a new socks range, designed to enhance the safety of workers who work around high and low voltage electricity.The new range, made from inherently flame-resistant material, includes heavy weight socks, designed to be worn beneath work boots, as well as compression socks, which feature medical benefits, such as improved circulation to reduce tiredness in the legs and preventing conditions such as DVT, as well as a silver anti-bacterial finish to reduce odour and bacterial spread.
As a part of its ongoing commitment to safety and industry innovation, ProGARM has identified key areas that pose a risk to workers and have been developing a comprehensive range of base layers, including tops, leggings, underwear and socks, which offers the wearer the ultimate level of protection without obstructing day to day tasks.
Leading denim brand, IskoTM has collaborated with renowned British fashion designer Miles Johnson to create a visionary collection that showcases the Isko R-TwoTM program.
The collection is made from a combination of reused and recycled materials. It uses cotton from IskoTM’s own production facilities, which is combined with recycled polyester derived from PET bottles. The resultant fabrics are certified with RCS (Recycled Claim Standard) certification or GRS (Global Recycled Standard) certification depending on their content.
The entire collection is made using low impact materials and responsible finishing techniques. Miles and the IskoTM teams have carefully crafted these 34 designs at the Creative RoomTM in Italy. The styles incorporate responsible design principles which include minimal washing; removable trims made of eco-metal; natural based buttons and labels; green bar tacks; embroidered rivets.
