FW
India’s woven fabric exports rose 17 per cent in April. During April, 134 countries imported woven fabrics from India, topped by Bangladesh and followed by UAE and Sri Lanka. The three together accounted for 30 per cent of total woven fabric shipped during the month.
Cote D’Ivoire, Croatia, Ethiopia, Nepal and Philippines were the fastest growing markets for woven fabrics, and accounted for close to two per cent of total export value in April.
Cotton fabrics were 51 per cent of woven fabric exports in April. Plain fabric exports accounted for 64 per cent of all types of woven fabrics exports in April 2018, up 14 per cent in volume year on year. Bangladesh, UAE and Senegal were the top markets for plain fabrics.
Denim fabric was the second largest woven fabric exported in April, with volumes increasing 18 per cent year on year and value up 9.5 per cent. Denim fabric was mainly imported by Bangladesh, followed by Egypt and Colombia. Denim exports to Bangladesh declined 44 per cent in value as against a year ago.
Shirting/suiting volumes surged 33 per cent while lungi and dhoti exports fell four per cent after a recovery in the previous two months.
Furnishing fabric exports doubled in April with the UK on the top followed by the US and UAE.
Morocco’s price index of industrial production decreased by 0.2 per cent in April 2018.
The decline in prices extended to the the clothing industry by 0.5 per cent, food industry by 0.3 per cent, pulp and paper industries by 0.8 per cent, metallurgy by 1.2 per cent, and non-metallic mineral products by 0.6 per cent.
Some industries saw a price increase in April: textile manufacturing by 0.7 per cent, leather and shoe products by 0.2 per cent, and cork and wood products by 1.2 per cent.
In March, prices of metallurgy increased by 0.7 per cent, pulp and paper industries by one per cent, and clothing and textile prices by 0.4 per cent. Wood and cork production prices each rose by 0.4 per cent in March.
There was an increase in the prices of fuel, meat, fruit, and vegetables in April, as the consumer price index climbed 0.3 per cent, after rising by just 0.1 per cent in March.
Morocco ranks seventh in the world’s list of fashion exporters. The country has high ambitions to foster this industrial sector in terms of quality, sustainability, technology and logistics.
The Indian economy grew 7.7 per cent year-on-year in January-March.The figure surpassed China’s growth rate of 6.8 per cent in the January-March quarter, confirming India as the fastest growing major economy.
India also reported 4.7 per cent growth in annual infrastructure output in April, signaling a recovery after it slipped to a three-year low of 4.2 per cent in 2017-18. Construction activity jumped to 11.5 per cent during January-March after a 3.9 per cent drop in the year-ago period.
The faster pace of growth in the latest quarter might also strengthen expectations of an interest rate increase.
India’s recovery could be threatened by higher global crude oil prices. India meets 80 per cent of its oil needs from imports. Higher oil prices have already pressured the rupee.
Alongside, rising global trade tensions due to the imposition of import tariffs by the United States could moderate global trade growth, tempering Indian exports.
However, growth is likely to get a boost from monsoon rains, potentially brightening the outlook for agricultural output. Monsoons deliver about 70 per cent of India’s annual rainfall and are the lifeblood of its economy, spurring farm output and boosting rural spending.
Economic growth could reach 7.4 per cent in 2018-19.
Angora rabbit fur is being used for sweaters, hats, gloves, and more.
Angora rabbits have long, soft fur. Most angora comes from rabbits on Chinese factory farms. The rabbits writhe in agony as workers tie them down and rip out their fur.
Brands like Calvin Klein, H&M, Marks & Spencer, Tommy Hilfiger, and Topshop have dropped angora wool from their clothing lines. So far more than 300 major retailers have banned angora.
Since then Chinese exports of angora have dropped steadily and are down 85 per cent.
Then there is mohair. Most of the world’s mohair comes from farms in South Africa. Shearers throw angora goats, cut off swaths of their skin, and cut conscious animals’ throats. Workers pick up goats by the tails, likely breaking them. One farmer dumped rams into tanks of cleaning solution and shoved their heads into the liquid, which would poison them if they swallowed it.
Workers punch holes in goats’ ears with pliers, causing the animals to scream. The goats bleat and roll around when they’re castrated without painkillers.
Like in the case of angora, the largest clothing companies in the world— Zara, Topshop, Gap, Banana Republic, Uniqlo, Esprit, Mango, Old Navy, Athleta, and H&M—have banned mohair.
German-based Bayer plans to take over US seeds group Monsanto. The deal would create the world’s largest integrated pesticides and seeds company but would limit the number of competitors selling herbicides and seeds in Europe.
Bayer’s move to combine its crop chemicals business with Monsanto’s industry-leading seeds business is the latest in a series of major agrochemicals tie-ups.
If Bayer does not close the deal by June 14, Monsanto could withdraw from the takeover agreement and seek a higher price.
It has already secured the go-ahead from key jurisdictions, including the European Union, Brazil and Russia. Apart from the United States, it still needs clearance in Canada and Mexico.
Bayer said synergies from folding Monsanto into its organisation would be about 300 million dollars below its previous target because it will have to sell more businesses than initially expected.
Bayer has a plan to create combined offerings of seeds and pesticides with the help of new digital farming tools, which include sensors, software and precision machines.
There are concerns the proposed acquisition could reduce competition in a number of different markets resulting in higher prices, lower quality, less choice and less innovation.
A merger would also reduce competition in the market for the genetic traits behind herbicide tolerance, which are typically licensed out to third-party seed companies.
Asia's major manufacturing hubs are facing a rocky ride from rising global trade tensions.
The biggest risk for China's manufacturing sector stems from a potentially crippling trade war with the United States. Forthcoming trade tensions could put pressure on trade and related supply chain activities. Investment decisions in potentially affected industries have been delayed.
New export orders for Chinese factories have fallen for a second straight month.
A full-blown Sino-US trade war will ripple through global supply chains, hurting economies from Europe to Mexico through to Australia and Japan.
Any stress on Japanese exports will put more pressure on the economy which contracted at the start of the year. Japan’s domestic business growth is slowing and only a modest pickup is seen in export orders.
Activity in South Korea, another major export hub, contracted for a third straight month as new orders continued to decline, prompting companies to cut staff at the fastest pace in almost a decade.
Taiwan’s factory growth slowed in May to a 22-month low for new orders.
India’s manufacturing sector grew at a softer pace in May, while rising inflationary pressures added to expectations that an interest rate hike is around the corner.
The Authentic Brands Group (ABG) has acquired the lifestyle brand Nautica from VF Corporation, which still includes The North Face or Timberland and Vans.
Nautica is now the group's largest brand, including Spyder. ABG's portfolio increases globally to almost 7 billion dollars in annual sales.
This acquisition brings it closer to its goal of achieving a retail sales split of 50 percent international and 50 percent domestic and reaching 10 billion dollars in annual retail sales by 2020.
Nautica's wholesale business, over 70 US retail stores, e-commerce and product development will be transferred to the operating company of Aeropostale, which is also part of the ABG Group.
It now works for both the clothing brand and Nautica. Aeropostale and Nautica together generate annual sales of approximately 2.4 billion dollars worldwide.
Abercrombie's net sales rose nearly 11 percent to $730.9 million. The company expects its current-quarter revenue to rise in the high-single percentage digits.
Net loss attributable to Abercrombie & Fitch narrowed to $42.5 million from $61.7 million a year earlier.
Abercrombie's eponymous brand has seen higher demand this year after having struggled for the past five years, thanks to revamped stores and new advertisements.
Both the Abercrombie and Hollister brands topped Wall Street expectations for same-store sales, while the company's net loss remained much smaller than expected.
Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, criticised the use of punitive tariffs by the Trump administration on U.S. imports of steel and aluminum from Canada, Mexico, and the European Union.
According to him, this move is likely to result not only in inflationary costs, but also retaliation by the country’s trading partners.
Canada, the European Union, and Mexico are the three largest markets for exports of Made in USA apparel.
Canada and the EU are the top two markets for Made in USA footwear.
The ability to export Made in USA product is essential for the health of the domestic manufacturing industry.
The tariffs will be detrimental for American companies and workers. They will not only inflate prices throughout the economy but also hurt job growth.
Recently, PVH the company behind typical American fashion brands has increased its full-year earnings outlook after posting better than expected revenue gains for the first quarter.
According to the company the sales in the three months up to May 6 rose 16 per cent from a year ago to $2.3bn. Earnings came in at $2.29 a share, versus 89 cents in the same period a year ago, thanks in part to a 20 cent-per-share boost from favourable currency exchange rates. Net income attributable to the company soared to $179.4m from $70.4m a year ago.
Tommy Hilfiger revenue rose 21 per cent to hit $1bn, alongside a 25 per cent jump in the brand’s sales in foreign markets to $655m. Calvin Klein revenue rose 18 per cent to $890m from a year-ago, with international sales ringing in 25 per cent higher at $475m.
Emanuel Chirico, PVH chairman and chief executive, stated the company is pleased with its first quarter 2018 results, its performance underscored the power of the diversified business model and the continued momentum in global designer lifestyle brands, Calvin Klein and Tommy Hilfiger.
PVH says it would lift its full-year earnings outlook, despite expectations that the foreign-exchange tailwinds would subside. Its previous guidance for earnings between $8.76 and $8.86 a share was raised to $8.81 to $8.91 a share.
Demand for PVH’s recognisable brand names has helped it weather tough times in the retail sector, among changing shopping habits and consumer tastes. After rising 52 per cent last year, their shares are up another 14.12 per cent so far in 2018.
