FW
"The United States Fashion Industry Association (USFIA) has released the fifth annual Fashion Industry Benchmarking Study, a survey of executives from nearly 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country. Done in conjunction with Sheng Lu, Associate Professor at the University of Delaware Department of Fashion & Apparel Studies, the survey quizzed respondents on their business outlook, sourcing practices, utilisation of Free Trade Agreements and preference programs, and views on trade policy."
The United States Fashion Industry Association (USFIA) has released the fifth annual Fashion Industry Benchmarking Study, a survey of executives from nearly 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country. Done in conjunction with Sheng Lu, Associate Professor at the University of Delaware Department of Fashion & Apparel Studies, the survey quizzed respondents on their business outlook, sourcing practices, utilisation of Free Trade Agreements and preference programs, and views on trade policy.
The “protectionist trade policy agenda in the United States” was ranked as the top challenge for the US fashion industry for the second time in a row. More than 60 per cent respondents ranked this issue among their top five business challenges, with more than one-third ranking it first or second. From 2014 and 2016, respondents consistently ranked trade protectionism between eighth and eleventh position.
Rising cost ranks high
The pressure of “increasing production or sourcing cost” was ranked as one of the top five challenges by about 54
per cent executives, a notable increase from 34 per cent in 2017. This cost could be rising in absolute terms and intensified trade tensions caused by protectionist policy agenda may force companies to switch to more expensive sourcing destinations.
A positive picture
Executives are more confident about the five-year outlook for the US fashion industry in 2018 compared to a year ago, although confidence has not fully recovered to the level seen in 2015 and 2016. Almost, 100 per cent respondents plan to hire more employees in the next five years, compared to 80-85 per cent in previous studies; market analysts, data scientists, sustainability/compliance related specialists or managers, and supply chain specialists are expected to be the most in-demand.
The survey was conducted between April 2018 and May 2018. In terms of business size, 76 per cent respondents have more than 1,000 employees, and around 64 per cent with more than 3,000 employees; the findings well reflect the views of the most influential players in the US fashion industry.
Eliminating barriers
The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade. USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States. Headquartered in Washington D.C., USFIA is the voice of the fashion industry in front of the US. government as well as international governments and stakeholders. With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow.
Vietnam’s apparel exports to member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) rose 16.49 per cent in the first half of the year. Although the CPTPP has yet to come into force, exports to its member countries increased 23 per cent. The respective growth rates in Japan, the European Union, South Korea and China were 24.6 per cent, 13.2 per cent, 28 per cent and 50 per cent.
Export turnovers were recorded for many high-demand products across major export markets. The United States remained the largest market for Vietnam’s apparel products, accounting for over 46 per cent of the total turnover.
Vietnamese enterprises have adapted to changes in export markets and applied modern technologies to production. Some have invested in robots, each of which can replace up to 60 workers, enabling the company to better meet export orders.
However, the sector is under pressure, prompted by the US-China trade war. It now faces risks involving the exchange rate because of the devaluation of the Chinese yuan. For sustainable development of the sector, enterprises are enhancing their competitiveness with technological applications to complete orders in shorter periods of time and provide quality products for customers, besides working to meet environmental and labor requirements.
Impetus Bioscience has partnered ICA Bremen for cotton DNA testing services. The developments were made over the last few months in response to increasing demand for transparency within the supply chain and from consumers.
The venture has expanded partners’ testing capabilities to identify many changes in the DNA of cotton, most significantly, the distinction between the lower and higher percentage of genetically modified cotton present in the sample. The analytical process involves exact quantitative measurements made possible by using state-of-the-art real-time polymerase chain reaction technologies alongside other testing methods.
Polymerase chain reaction is a method of making multiple copies of a DNA sequence, involving repeated reactions with a polymerase. Specific DNA sections of genetically modified insect resistant cotton can now be identified and quantified. Previously, a positive screening result indicated a genetic modification, which only allowed a positive or negative diagnosis of genetically modified cotton. These new methods of analysis allow the immediate and definite classification of genetically modified plants.
As the degree of processing of a sample increases, the limit of quantification always decreases - so the sensitivity decreases. However, the latest developments now also allow the examination of the end product, which previously couldn’t be analysed. ICA Bremen is an international center of excellence for cotton testing, research and quality training.
The Ministry of Foreign Trade of Uzbekistan held a meeting with the Islamic Republic of Afghanistan to discuss issues of further development of and cooperation in the sphere of trade-economic relations between the two countries. Uzbekistan made a number of proposals during the talks, including the involvement of Afghan investors into joint activities based on the principle of public-private partnership, as well as the creation of a border trade zone.
In addition, Afghanistan was invited to start working on establishing free trade regime between the countries. The delegation of Afghanistan also expressed hope for the assistance of Uzbekistan in the restoration and development of the textile industry, namely in the exchange of experience and in training of specialists in this field.
As knitwear garment exporters in Tirupur operate on wafer-thin margins, under-cutting of rates to bag export orders is rather rampant. TEA has decided to take a call on this issue, and requested its members to ask their buyers to consider a 10 per cent increase in garment prices while finalising orders. Yarn prices have gone up 20-25 per cent and so have dyeing rates. At this juncture, units cannot afford to ignore input costs. They can instead show this message to the buyer when negotiating a deal rather than relent/budge.
Asked if the timing was right for an upward price revision, considering that the government has effected a 10 per cent increase in basic custom duty on specified textile products from July 16, Raja M Shanmugham, President, TEA maintained it was a separate issue. The industry had been requesting the government to curb the back-door entry of Chinese textile goods, he added.
Rieter’s sales increased 24 per cent in the first half of 2018 compared to the previous year period. Order intake too went up by three per cent compared to the previous year period. Despite higher sales in the first half of 2018, Rieter achieved a lower EBIT margin. While earnings in the business group components developed positively, the business group machines and systems posted a decline in profitability. The EBIT margin was 2.7 per cent.
Net profit was 2.1 per cent of sales. The equity ratio as of June 30, 2018, was 43.1 per cent. Rieter achieved strong 80 per cent increase in sales in Asia (not including China, India and Turkey). In particular, Uzbekistan, Bangladesh, Vietnam and Indonesia developed positively. A good level of sales was achieved in China, despite a slight decline of one per cent. In India, sales fell by 36 per cent while demand for machinery improved significantly. In the first half of 2018, sales in Turkey increased by 19 per cent. In the north and south America region, sales increased by 39 per cent.
In some markets, Rieter customers are faced with rising interest rates, strong currency fluctuations, commodity price volatility and political uncertainties.
Pure London will be held from July 22 to 24. The message this season is all about the future, making a better future for all, discussing relevant and pertinent issues facing the industry.
With a host of other informative talks confirmed, styling seminars, regular WGSN trend briefings and live catwalk shows, Pure London will deliver an insightful and thoughtful fashion experience. Pure London is the UK’s leading trade fashion buying event, representing women’s wear, men’s wear, footwear, accessories and young fashion. The show offers buyers from UK and around the world an opportunity to discover collections launched for the season, attend catwalk shows and hear from their peers and other industry experts in valuable seminars and workshops.
As sustainability shifts to being an integral part of the entire fashion value chain, Pure London is keen to take the lead as a disruptor in the industry, to probe key issues and offer visitors an inspiring and educational content program that helps guide brands and retailers towards alternative business models and new concepts centered around sustainability.
Pure will have an exciting mix of brands and some of leading champions driving a better future for fashion. Visitors can learn about new technologies making this new era possible.
Isko held the fifth edition of its educational project, Isko Iskool Denim Award, in Milan’s BASE. This year’s theme was ‘UnDocumented’ which tried to imagine the future of denim from the point of view of newly graduated students from around 30 international fashion schools. It involved them in projects interpreting values of sustainability and respect for the environment.
Around 216 contestants participated in the event which included students from highly qualified fashion schools and young creatives. The 32 chosen finalists included 20 students who participated in the Denim Design Award and 12 others who participated in the Marketing Award, all supervised by Isko’s marketing team and Creative Room - the company’s creative studio based in Castelfranco Veneto, Italy.
The shortlisted participants were voted by two distinct juries of experts, partners and insiders and were awarded at the special final event and party held in Milan.
The Bangladesh State Minister for Labour and Employment has said the government will not extend the tenure of Accord and Alliance as the Remediation Coordination Cell (RCC) is capable of running inspection and monitoring of workplace safety in garment factories. RCC was set up in May last year through the collaboration of the Bangladesh government, the Bangladesh Garment Manufacturers and Exporters Association, and the Bangladesh Knitwear Manufacturers and Exporters Association, with technical support from International Labour Organisation. The government has already recruited 130 inspectors to run the cell, which will work as the permanent body for the inspection of workplace safety.
The government has extended the tenure of the Accord and the Alliance for Bangladesh Worker Safety for six months so that they can take preparations for departure from the country. As per the decision, the buyer-driven groups will run their operations upto December 31, 2018.
Chargeurs Fashion Technologies, the world's second-largest apparel interlinings manufacturer, is acquiring Precision Custom Coating's interlinings business. The acquisition consisting of a share deal of PCC Asia and an asset deal of the PCC USA interlinings business carveout, is expected to result in no redundancies and be completed by the end of 2018. The acquisition will expand Chargeurs Fashion Technologies’ global footprint and propel the business into new technical performance wear categories, such as outerwear, performance apparel and athleisure, as well as intimate apparel.
Chargeurs Fashion Technologies currently works with luxury, ready-to-wear and fast-fashion brands that include Chanel, Gucci, Hermès and Uniqlo. The company, since 2015, has been executing a strategy that involves a more selective marketing approach. It has been systematically upscaling its offerings, showcasing them in new showrooms in Paris, New York and Milan.
Angela Chan, managing director and president of Chargeurs Fashion Technologies, will oversee the company’s worldwide expansion. Chan is an industry leader with expertise across sourcing, business development, merchandising, product development and multichannel retail in North America and Asia. Also, current the CEO of PCC, Scott Tesser will join Chargeurs Fashion Technologies as Chief Sales Officer and will be responsible for the combined entity’s global sales strategy.
