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Indonesia saw an increase in textile production by eight per cent in the period January to March 2018.The increase was triggered by domestic demand and tightening of wholesale and other imports.
After the policy of bulk import curbing, the performance of textile and textile products in the second half of 2017 rose to reach a 2.5 per cent growth from the previous year.
The industry now wants an integrated cluster and close to the source of raw materials; a tightening of textile imports; affordable factory rental rates; upstream and downstream industries integrated in one region.
Indonesia hopes to triple textile and textile product exports in the next five years. If this happens, this sector will be Indonesia’s largest non-oil export contributor and create jobs for six million people.
In 2016, apparel exports from this southeast Asian nation decreased 3.2 per cent due to several challenges including high logistics costs and gas and power tariffs being higher than other competitor countries.
At present, the US is the largest clothing importer from Indonesia. If the country were to lobby with the US to expand its Generalised System of Preferences to include more Indonesian apparel and accessories, this would facilitate the entry of more Indonesian products into the US at lower tariffs.
Guess net revenues for the quarter was up 14.7 per cent. In constant currency, net revenue increased by 7.7 per cent.
By region, the Americas retail revenues decreased 2.1 per cent in constant currency, while comp sales including e-commerce increased one per cent. Wholesale revenues locally surged 11.3 per cent in constant currency. European revenues increased 9.1 per cent in constant currency, while comp sales including e-commerce increased one per cent and Asian revenues rose 25.1 per cent as comp sales including e-commerce gained 15 per cent in constant currency. Licensing revenues increased 23.5 per cent.
Guess was also able to expand the company’s operating margin, despite cost pressures related to its transition to its new distribution center in Europe.
Operating margin in Asia improved by 430 basis points as it continues to leverage its infrastructure investments in China and Japan. In the Americas, the company ended the quarter with positive comps while being significantly less promotional. This translated into a 910 basis point improvement in operating margin for the Americas retail segment.
For the second quarter Guess expects net revenues to rise 14 per cent to 15.5 per cent. For fiscal 2019, revenues are expected to rise 8.5 per cent to 9.5 per cent.
The German pavilion at Techtextil North America was a real eye-catcher.
Visitors were very interested in exhibitors’ products. They gained potential customers and were able to make numerous high-grade contacts. The level of interest shown in German highly innovative e-textile solutions, which are completely new in the sector, was very high.
In addition to the appealing exhibition stand concept and the excellent organisation, the companies taking part were particularly pleased with the high visitor standard.
Besides gaining new customers, the focus of the companies taking part in High-Tex from Germany was on cultivating customer relations. The German pavilion gave them a good opportunity to get to know the US market better.
The companies taking part in High-Tex from Germany made their presentations on around 1,300 sq mts of exhibition space with their own exhibition stands, with selected exhibits on a central Plaza.
Additionally, the German Institutes of Textile and Fiber Research, the Association of the Finishing, Yarns, Woven Fabrics and Technical Textiles Industry and the German American Chamber of Commerce provided insights into current research projects and offered information about the sector.
High-Tex from Germany was a good starting point for cultivating contacts with customers in the United States.
India’s retail market is said to be the world’s third largest consumer economy.
The Indian retail industry has emerged as the world’s fifth-largest global destination in the retail space. It accounts for over ten per cent of the country’s Gross Domestic Product and around eight per cent of employment.
Various initiatives to enhance the retail industry in India are seen as a positive step forward. Demonetization slowed down business across the country but with the Indian customer’s growing interest for global brands and quality shopping experience, brands’ commitment to the Indian market remains high and the overall market continues to be positive.
Brick-and-mortar vs online is not a debate anymore. The kirana store has survived. The typical Indian consumer uses both online and offline touch-points. Brands should find the right mix of channels and offer the strategic blend of online–offline options to customers. Neighborhood stores which have a huge loyalty base can lure younger customers by going online.
Malls are definitely seen as the preferred shopping destination of the consumer as the customer can hang out with entertainment and food chains available around.
Compared to high streets, malls witnessed an increase in lease rentals and land prices.
Brands have to balance their presence between malls and high streets.
A new book describes the origin and evolution of Japanese computerised knitting manufacturing giant Shima Sheiki. Shima Seiki is known for its wholegarment knitting machines.
The success story of Shima Seiki began in 1962 when Masahiro Shima laid the foundation of the company with the sole aim of developing a fully automated seamless glove-knitting machine.
With time, Shima Seiki proliferated its product range, adding flat knitting machines and entered the era of computerisation. As a result, the company started focusing on computer-aided knit design and programming and revolutionised the world of knitting with the introduction of the wholegarment knitting machine in 1995.
Today, wholegarment knitting machines produce knitwear for major high-street brands as well as high-end fashion houses.
The book narrates the story of how Masahiro Shima developed both technology and philosophy and connected them to build the empire of Shima Seiki, the market leaders of today in knitting. The book narrates the story of the inventor himself and how his company brought a revolutionary change in the fashion industry.
Shima Seiki offers total textile solutions. Shima Seiki’s seam-free wholegarment knitting technology offers an alternative to labor-intensive manufacturing.
Wholegarment knitting is capable of producing knitted items in their entirety on the machine, and allows complex 3D forms for fitting the human body or even car seats without the need for sewing.
American Eagle Outfitters (AEO) had digital sales growth of over 20 per cent in the fourth quarter, reaching record levels, making it the 12th consecutive quarter of double-digit growth.
Digital penetration increased 340 basis points in the fourth quarter, expanding to just under 31 per cent of revenue in the fourth quarter, compared to 27 per cent in the prior year period.
Earnings are projected to grow from 16 cents in the corresponding quarter of last year to 22 cents in the first quarter of 2018 (three months ended April 2018). Higher sales, a reduced promotional environment, benefiting from improved consumer confidence, and a lower tax rate are the main factors that should drive earnings growth.
American Eagle’s lingerie and active wear brand, Aerie, has gone from strength to strength, driving sales growth for the company. It posted a 15th consecutive quarter of positive comps in the fourth quarter 2017, at 34 per cent, building on the 17 per cent seen in the prior year period.
In addition to impressive growth in core intimates, the company has seen strength in apparel, active wear, and swim wear. The company expects the brand to cross a billion dollars in sales in the next couple of years, with a lot of this growth coming from its digital channel, which has been growing at a tremendous rate.
Aerie is also expanding its store count, with 35 to 40 new stores expected in 2018.
According to the Brandz Top 100 ranking, Dior, Gucci, JD.com and Abibaba recorded the highest growth in valuation in 2018.
The total cumulated value of these brands increased by 21per cent in a year, reaching $4.4 trillion. Among fashion, luxury and apparel brands, LVMH ranked 26th, Nike 29th, Hermès 39th, Zara 42nd, L’Oréal 44th, Gucci 54th and JD.com 59th.
Also listed were Ikea in 76th place, Ebay in 88th and Adidas in 100th.
The survey was conducted by Kantar. The retail category grew by 35 per cent, thanks to the e-commerce boom.
Technology and tech-related brands like Amazon, Alibaba and Ebay dominated both the retail category and also the Top 100 overall ranking, in which they accounted for more than half of the cumulated value.
Rwanda has expressed its willingness for further discussions with the United States on the dispute of imports of second hand clothes, despite the elapse of the deadline.
Earlier, the US had given Rwanda time till May 30, 2018 to review its stance on used clothes entering the country.
Rwanda had increased the tariffs on imported used clothes from $0.20 to $2.50 per kilo in 2016 with an intention of eventually phasing out the importation. The move is likely to boost its local manufacturing sector.
Rwanda is relying on major clothes manufacturers as the country seeks to phase out import of second hand clothes and promote made in Rwanda products.
It has undertaken several projects to boost the local industry. Some of these include the C&H Garment established at Kigali Special Economic Zone and UTEXRWA and Kigali Garment Centre (KGC), a company with over 400 shareholders tailors raising Rwf3 billion to start a clothing factory.
The garment industry is plagued by reports of dodging workers’ rights in the steadily growing Myanmar garment and footwear sector with new factories popping up all around Yangon’s industrial center, generating exports of $3 billion every year.
Research indicates that along with the potential physical and psychological costs of poor working conditions in garment factories, there can be significant financial harm, to both the women and the industry.
According to a 2017 report by Care International shows that in Cambodia, the productivity cost of sexual harassment in the garment sector is estimated to be $89 million per annum: $85,000 due to employee turnover as workers leave jobs where they feel unsafe, $545,000 due to absenteeism and $88 million in reduced productivity.
Prompted by the Cambodia figures, Ellen Maynes, Gender Operations Officer at International Finance Corporation, a part of the World Bank Group, says the organisation is planning the first-ever attempt to measure the scope of workplace harassment in Myanmar and how much it’s costing the country’s businesses.
Polyester is posing a threat to all natural fibers. World production of polyester went from five million tons in 1990 to more than 50 million tons today. Most of that growth occurred in China alone.
Cotton’s share in fiber use has dropped from 50 per cent to just over 30 per cent. Pressure from polyester production will continue and that is just a reality all natural fibers, including cotton, have to face.
However all is not lost. There is evidence China is shifting away from polyester production due to its negative environmental impact: converting crude oil, natural gas and coal into fiber is damaging to the environment. China has in recent years introduced several new acts of environmental legislation which impact on polyester production and, by association, commodity prices.
Cotton could potentially capitalise on such issues, as well as concerns about microfiber pollution.
While organic cotton undoubtedly has positive connotations with consumers, it is more expensive to grow with more variable yields, making it much more difficult to get to market at a profitable price point. Organic cotton is not necessarily economically viable.
While proponents of organic cotton will undoubtedly take issue with such sentiments there is no disputing the fact that the organic cotton market has struggled to maintain any significant momentum in recent years. Indeed, it often feels like a case of two steps forward, three steps back.
