FW
Diesel will launch the second round of its “Red Tag Project” and a capsule collection in collaboration with an influential designer during Milan Fashion Week.
For the first round of the “Red Tag Project”, Diesel brought out a capsule collection comprising ten pieces in collaboration with Shayne Oliver, the designer previously behind the “Hood by Air” label.
The collection was shown at Paris Fashion Week and will be available in store at outlets such as Opening Ceremony from August.
US imports of apparel from China during January-March 2018 were 0.87 per cent higher than in the same period of 2017.In volume terms, Chinese exports to the US increased 3.74 per cent.
In 2017, China's apparel exports to the US fell 3.17 per cent. But these exports were 33.67 per cent of total apparel imports of the US in terms of value and 42 per cent in volume.
In the first three months of 2018, China's share remained the highest, but was dwindling. In value, China’s share in US apparel imports was 30.17 per cent and in volume 38 per cent.
Vietnam is the second largest apparel supplier to USA. US imports of apparel from Vietnam during January-March 2018 increased 3.32 per cent compared to the same period in 2017. In 2017, Vietnam's apparel exports to the US had clocked a seven per cent growth.
US imports of garments from Bangladesh during January-March 2018 fell 0.92 per cent. In volume terms, imports fell 0.06 per cent. In 2017, imports from Bangladesh were down by 4.46 per cent.
US buyers are diversifying their sourcing base.
Imports have surged from Turkey, Myanmar, Cambodia, AGOA countries for mass apparel. And imports have clocked impressive growth from the fashion capitals of the world - Italy, France, Spain.
APLF Ltd, a joint venture between SIC Group and UBM Asia, recently held the Design-A-Bag Online Competition 2018 in Hong Kong. The annual event brought together the global design community to fashion access trade fair in Hong Kong to showcase their creations to the world and exchange design concepts among talents from various cultures and backgrounds.
Lemniscate Handbag designed by Ho Kuan Teck of Singapore was selected Best Overall Design out of the three finalists who received a 4-week bag design course in Milan valued at USD 4,200 with USD 1,000 accommodation allowance at the prestigious Arsutoria School on top of the final prizes. In the online favourite design category, voted by the Facebook audience, "Circular Bag" from Spain emerged as the winner with 345 likes.
The judging panel consisted of representatives from Giordano, All Saints, Jayne Fashion Consultancy, The Arsutoria School, Korea Colour & Fashion Trend Centre, Edizioni AF and OO Agency Paris.
Bangladesh has relaxed the restriction on the import of raw materials, which have already been shipped, under the free of cost scheme for the readymade garment industry.
Export-oriented readymade garment manufacturers have been allowed to release the excess raw materials, mainly fabrics, imported beyond the permissible limit. A hundred per cent export-oriented garment manufacturer can import raw materials worth one-third of its total export earnings in the previous year under the scheme without paying any duty and other taxes.
Foreign buyers sometimes directly provide raw materials free of cost for manufacturers to speed up the export process. But many importers from the readymade garment sector import raw materials, mainly fabrics, up to several times the limit beyond the permissible level.
The provisions were relaxed as many apparel exporters had already bought excess raw materials under the facility.
Some importers brought raw materials several times higher than the limit and sold them in the local market instead of producing finished goods for export. According to the order, raw materials only recently imported, unreleased and those which have already been shipped will get the benefit.
The facility will not be applicable for goods imported in future after releasing the current consignments.
Bangladesh’s exports to Turkey in the first ten months of the current fiscal fell by 19.35 per cent.
Turkey was a very promising market for Bangladesh. A good quantity of apparels used to be re-exported to Russia from Turkey. But Bangladesh lost its competitiveness in Turkey’s market as the country imposed a safeguard duty on apparel imports in 2011.
Turkey imposed the safeguard duty at a rate of 17 per cent in September 2011 on apparel imports from least developed countries, including Bangladesh.
Following the imposition of the safeguard duty, Bangladesh’s exports to Turkey declined by 24.23 per cent in fiscal year ’12 from fiscal year ’11, while the exports in fiscal year ’13 rose by 15.57 per cent. The country’s exports to Turkey in fiscal year ’14 grew by 34.23 per cent.
Export earnings from Turkey in fiscal year ’15 fell by 15.80 per cent. Export earnings from Turkey declined by 8.18 per cent in fiscal year ’16 while earnings fell by 4.57 per cent in fiscal year ’17.
Turkey is also a major readymade garment producing country and a competitor of Bangladesh on the global market with annual clothing exports of around 17 billion dollars and textile exports of nearly ten billion dollars.
Bangladesh’s apparel exports grew 9.37 per cent year-on-year in the first ten months of the fiscal year.
Exports increased 6.41 per cent year-on-year in the July-April period. The earnings slightly missed the periodic target.
Exports rose 7.11 per cent year-on-year in April riding on the higher shipment of garment items. Although the receipt is 0.51 per cent higher than the monthly target, it was the lowest in six months.
Knitwear exports rose 11.43 per cent and woven garments exports were up 7.42 per cent. Cotton, cotton products, and yarn exports went up by 19.01 per cent, jute and jute goods increased 7.66 per cent, home textile exports rose 13.07 per cent, leather and leather goods were down 10.02 per cent.
The industry is confident of achieving more than ten per cent garment export growth at the end of the fiscal year as the trend in the international market shows very bright prospects.
Significant investment in automation in the US textile and apparel industry, particularly in yarn, thread, and fabric production, has depressed US employment despite increases in domestic shipments.
In coming years, increased capital investment in automation should contribute to a further expected decline of 3.7 per cent in employment in the textile and apparel industry during 2015–20.
The most significant decline is projected in textile products (5.9 per cent) and textile mill sectors (5.7 per cent). At the same time, US textile and apparel exports are expected to increase 2.8 per cent, with US apparel exports increasing by ten per cent as a result of growing demand for higher-quality, specialized, or Made in USA apparel.
US textile mill producers are increasingly focused on the production of technical fabrics and smart fabrics used in the automotive, construction, healthcare, sportswear, and agriculture industries, as well as in protective applications.
The value of US technical fabric production is expected to increase by four per cent annually on an average during 2015–17 due to strong global demand. The technical and smart fabric sectors are less price sensitive than imports of lower-cost commodity fabrics.
One of the largest consumers of US-produced technical textiles is the US military, which by law must purchase its textiles from US producers.
India’s apparel exports have not benefited from the rupee depreciation. There was a 22.76 per cent fall for the month of April.
Readymade garment exports have fallen for the seventh consecutive month since October 2017. Exporters have seen the cost of working capital rising and are experiencing a fund crunch due to delays in the refund of taxes paid.
While consumption in the international market is growing at around one to two per cent, competition is increasing too as the business sees new entrants like Myanmar and Ethiopia. Competitors’ currencies are also depreciating, but they don’t have problems that Indian exporters do.
The fall in apparel exports has led to a decline in production. India's apparel production fell 18.6 per cent in March and saw a decline of eleven per cent for the period 2017-18. March saw the eleventh straight monthly decline in apparel production.
Availability of manpower is also a big concern in all the existing textile centers and productivity is low due to huge labor turnover.
If the rupee remains at these levels for the next few months, it can offset the loss of duty drawback to some extent and exports may see a growth of three or five per cent.
Rising cotton prices have hit Bangladesh apparel makers. If the price spiral continues, Bangladesh’s importers might face troubles as almost all the demand for the raw material is met through imports in the absence of domestic production.
The country has to import most of its cotton demand. Imports are from India, the US, the Middle Eastern countries and some African countries.
Cotton textiles is the largest imported category by Bangladesh, representing 55 per cent of total textile and apparel imports. This is followed by manmade textiles, others and apparel with a share of 35 per cent, 6.8 per cent and 3.2 per cent respectively.
China is the largest supplier accounting for a 58 per cent share. India is the second largest supplier of textile and apparel products to Bangladesh. Cotton textiles is the largest category with a share of 77 per cent in India’s textile and apparel exports to Bangladesh. This is followed by manmade textiles and apparel having a share of 17 per cent and four per cent respectively.
Currently Bangladesh imports yarn and fabric from China, India and other nations to fill the demand-supply gap. However, many new investments are planned in the spinning and weaving sectors of Bangladesh in the coming years.
"POINTERS • Lowest growth this fiscal year in four years • The annual index value dipped to 2.56 FY 2017-18 from 3.43 points in FY 2016-17 • The entire fiscal year was marked by low business sentiment • Even the festive period did not bring much cheer • Q4 was the best quarter, reflecting a recovery."
POINTERS • Lowest growth this fiscal year in four years • The annual index value dipped to 2.56 FY 2017-18 from 3.43 points in FY 2016-17 • The entire fiscal year was marked by low business sentiment • Even the festive period did not bring much cheer • Q4 was the best quarter, reflecting a recovery
In all four quarters this fiscal year (2017-18), the index values were much lower than comparable quarters in previous fiscal. The annual index value dipped to 2.56 in FY-2017-18 from 3.43 points in FY-2016-17, 5.32 points in FY-2015-16 and 7.28 points in FY-2014-15 -- reflecting 'dismal' growth. The entire fiscal year was marked by low business sentiment including the festive period, perceived as best the time to make up for turnover losses, when buying is high.
The index value was the lowest for July-Sept 2017 (Q2) at 1.87; followed by 2.71 points in Oct-Dec 2017 (Q3);
2.77 points in Apr-Jun 2017 (Q1); and 2.87 points Jan-Mar 2018 (Q4). In fact, Q4 was the best quarter this fiscal, indicating a recovery. The positive aspect is: the Index has been growing in the last two quarters.
All quarters are reviewed and compared to previous year’s quarters and the comparison is done at the assumed base value of 100.The average off our indices belonging to four quarters of the financial year is the final annual apparel index value.
Slack indices add to slowdown
The Sales Turnover graph over first two quarters followed a downward trend; the fall in July-Sept 2017 was the highest, it then moved up in the remaining two quarters Oct-Dec 17 at 1.52 and Jan-Marc ’18 growing to 1.60. Overall, Sales Turnover was never high throughout the fiscal.
Sell Through, Investments and Inventory Holding though not very dynamic, were never strong enough to influence the index greatly, as the graphs indicates.
The graph below shows varying growth rates for all performance factors over four quarters.
A dip in Sales Turnover, Sell Through and Investment graph and index should not be mistaken as a dip in sales, instead it indicates the rate of growth slowed down but in value and absolute terms there was growth in sales turnover.
Trendspotting: Four year low, it’s a dipping Annual Apparel Index
Annual Year Index Value
A closer look at the last four financial years indicates Apparel Index was much higher in FY 2014-15 and FY 2015-16 at 7.28 and 5.33 respectively compared to FY 2016-17 at 3.44 and 2.56 in FY 2017-18 , which is almost 35 per cent growth rate of what it was in FY 2014-15.
The onus for the dismal performance in the last two years could be attributed to demonetization and implementation of GST which have disrupted market sentiment and overall growth.
