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"Licensing has been finding increased importance in fashion fraternity these days. Same has been captured by a recent Euromonitor study, ‘Global Licensing Trends in Adult Fashion’. Licensing has spread across all aspects of the apparel and footwear business and across all demographics, ages and regions. As fast fashion and athleisure drive growth, fashion house and character collaborations reach new heights. While adult fashion is diverse in terms of licensing types, character is still one of the biggest licensing types in the industry."
Licensing has been finding increased importance in fashion fraternity these days. Same has been captured by a recent Euromonitor study, ‘Global Licensing Trends in Adult Fashion’. Licensing has spread across all aspects of the apparel and footwear business and across all demographics, ages and regions. As fast fashion and athleisure drive growth, fashion house and character collaborations reach new heights. While adult fashion is diverse in terms of licensing types, character is still one of the biggest licensing types in the industry. Adult-targeted classic characters’ appeal benefits from a nostalgia factor, and even some child-orientated franchises are marketed secondarily to adults by creating a ‘cool’ factor around them.
Fast fashion players such as Primark and H&M are highly active in licensing world. Direct-to-retail has enabled Primark to offer trendy DC Comics and Harry Potter licensed merchandise at very low prices, which it would not have been able to do otherwise. It is the largest retailer partner for Harry Potter themed products, while other collections also include Star Wars, Minions, Looney Tunes and Family Guy. In 2016, Primark was Western Europe’s third largest apparel brand, up from fourth place in 2013.
Athleisure defining trend of the decade
Athleisure is fuelled by consumers’ growing desire to prioritise wellbeing. The relaxation of dress codes has also played a huge role in its rise. Sportswear’s growth has intensified in recent years, recording a CAGR of 6 per cent over 2011-2016, compared to 4 per cent for apparel and footwear overall. The trend filters into licensed adult fashion. In April 2017, Warner Bros Consumer Products, the world’s fifth biggest licensor, partnered Her Universe for a range of superhero-themed women’s activewear. Sportswear has been identified by the industry as a key growth area for licensed adult fashion in coming years.
Character licensing
In womenswear, franchises increasingly target leading fashion shows. Disney, the world’s biggest licensor by far, has been very active in creating a larger space for its Minnie Mouse licence in fashion. In menswear, while Star Wars fever continues to be felt with new licensed fashion collections by Columbia Sportswear and Selfridges, Fun.com brought much needed excitement to formal and winter-wear thanks to its partnership with Marvel and DC Comics, launching an exclusive range in November 2016.
Untapped categories
Apart from this, there are various different categories that are still untapped. Categories, including suits and jeans could potentially offer good opportunities for expansion and growth. Licensing businesses need to be more creative, thinking outside the box and not limiting their merchandise just to tops and t-shirts. In categories that are not traditionally associated with licensing, subtle details could be used in a garment, allowing fans to connect with their favourite characters and franchises.
Partnerships between designers and character franchises are expected to continue, as these properties increasingly use designers’ credibility to enter and expand into adult fashion, reports Euromonitor.
Germany has plans for an environment friendly and fair textile economy. Some of the benchmarks are social standards and the avoidance of toxic chemicals. To begin with, 50 per cent of manufactured textiles have to be sustainable as of 2020, from raw material to manufacture and to the final product. The government will assist firms to fulfill human rights in due diligence and support incentives to invest in sustainable production of textiles.
Concrete enhancements will be seen along the textile supply chain from sustainable water management in cotton fields to fire protection measures in textile mills to fair compensation for sewers. A long history of manufacturing, innovation and flexibility has made the textile and clothing industry in Germany one of the most important sectors in the country.
Textiles and clothing are the second largest consumer goods market after the food and beverage industry. Germany is a major player in foreign trade with textiles and clothing. The country is the fourth largest exporter of textiles and clothing worldwide. The country is also the second largest textile importer after the United States and especially in the clothing segment imports a vast majority of apparel products, thus offering an appealing opportunity for foreign companies.
China and the Institute of Scrap Recycling Industries (ISRI) are at odds over textile waste. China wants to ban import of textile waste, saying to avoid pollution. But ISRI feels the ban will damage recycling potential of the textile industry and would have a negative impact on textile recycling industries in the US and China. ISRI also says the ban would impact the Chinese textile industry, as it relies on recyclable imports both financially and as part of textile companies’ sustainability projects.
China accounts for more than half of the world’s fiber imports. While ISRI supports China’s efforts to improve environmental protection and standards within its domestic recycling infrastructure, it disagrees that a ban on the import of specification‐grade scrap materials will help those efforts. ISRI feels there is a need to distinguish scrap from waste.
The global textile industry waste management market is projected to grow at a CAGR of close to 11 per cent over 2017 to 2021. The market is characterized by many well-diversified players competing intensely with one another. Global players increase their footprint in the market with their huge infrastructure and R&D support, and regional vendors are mainly restricted to developing economies.
German outdoor clothing brand Vaude has announced it will be extending its ‘Environmental Stewardship in the Supply Chain’ initiative to all its textile suppliers. Over the last two years the project has saved firms over $58,000 each says Vaude. At present Vaude rolls out the project to 100 per cent of its material suppliers as compared to previously where the project covered 80 per cent of the primary materials and lining fabrics used in the company’s products. Earlier this year, Ecotextile News reported on end of the project, after Vaude announced its success in Asia.
Vaude says the project has made mass energy savings after introducing measures to shut down hydraulic pumps when not in use, using energy from solar panels, and modernising defunct systems. Participating factories saw the introduction of professional chemical management systems, which automated storage, transportation and disposal of chemicals. The Federal Ministry for Economic Cooperation and Development will continue to promote and support the project when Vaude extends the project to all of its material suppliers.
Tamil Nadu is in the process of drafting a new textile policy. Textile units want improved infrastructure for weaving and processing capabilities. Competing states like Gujarat have built strong capacities in yarn spinning through state-sponsored subsidies to build factories.
The state’s textile units are seeking subsidies for companies venturing into weaving and processing units, which are areas in apparel-making that lead to value addition as well as higher margins for businesses. Incidentally weaving and processing are weak spots in the Tamil Nadu apparel supply chain, which need to be addressed.
In Tamil Nadu, weaving clusters like Salem still run on obsolete technologies involving power looms, which have been surpassed by automatic looms manufactured by Sulzer. The latest advancement is in air jet loom, which constitutes only a tenth of the looms used in Tamil Nadu, while there has been higher adoption of such looms in other states. Mill owners in Tamil Nadu want a policy specific to manufacturing competitiveness in the spinning sector in order to compete with the kind of factories coming up in Gujarat.
Production of Tamil Nadu textile manufacturers is expected to reach Rs 75,000 crores by 2020. Right now it’s Rs 50,000 crores. A textile policy will help sustain as well as improve the existing production units in the state. Technology in manufacturing units will improve and make them more energy efficient.
PRGMEA is actively considering establishing "Pakistan Apparels Export Council" to ease business, says central chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Ijaz. He stated PRGMEA had already completed initial work for the establishment of the proposed council. Ijaz disclosed a board will be constituted comprising members of Trade Development Authority of Pakistan (TDAP).
He says, the government should focus on formulation aggressive trade policies for averting sharp decline in exports of the country adding that polices should be chalked out with active consultation of stakeholders as well as strong interaction with stakeholders direly needed for ascertaining their sliding exports. He added the basic concept of setting the training institute was to produce trained workforce in the field of stitching, pattern designing, quality control, inspection, marketing and sewing machine mechanics male and females separately.
For boosting export, formulation sector wise policies particularly regional based policies would help in increasing exports. He stressed on the need for formulation sector wise and regional wise policies with consultation of stakeholders. and urged for edging out the possibilities of further decline in exports which is on down trend adding that special focus should be accorded on short term polices for overcoming the decline in exports the government must prepare a long and short term polices. He said PRGMEA was making efforts to enhance garment export to $8 billion by 2220 with the active cooperation of business community. Despite hurdles the business community engaged in RMG was making strenuous efforts for enhancing export, said Ijaz.
For the first half of 2017 the Picanol group’s turnover increased by 11 per cent. The weaving machines division experienced strong first half in 2017, having ended 2016 with a well-filled order book. Increasing demand for technology and quality brought strong sales, especially in Asia, with share increases in many markets. As a result, Picanol placed a record number of weaving machines on the market in the first half of 2017. The industries division also had a strong first half-year thanks to the increased demand from weaving machines and projects at other customers, which allowed Proferro (foundry and mechanical finishing activities) and PsiControl (controllers) to realize strong revenue growth.
The Picanol Group closed the first half of 2017 with a net profit of €58.1 million, compared to €60.4 million in the first half of 2016. Picanol expects a slight increase in turnover over the full 2017 financial year compared to 2016 – the best year in the history of the group – but is taking into account a limited impact of rising commodity prices.
In 2016, the weaving machines division experienced a record breaking year. The growing demand for quality and technology created strong sales and an increased share in many markets. This resulted in Picanol’s putting a record number of weaving machines on the market in 2016, thereby especially focusing on dealing with production peaks.
Pakistan and Indonesia have agreed on concession for 20 different items during bilateral negotiations under the Preferential Trade Agreement (PTA). Both sides discussed 20 tariff lines and Indonesia has agreed to give concessions on major exports from Pakistan including rice, textile, ethanol, kinnow and mangoes. The Indonesia-Pakistan Preferential Trade Agreement was signed in February 2012.
Concession on 20 tariff lines was a major success for Pakistan and now Pakistan’s kinnow exports to Indonesia will increase from 18 to 35 million tons and mangoes' exports will increase to ten million tons in a year. Before the PTA, Indonesia granted only two months for exports of Pakistan’s kinnows and mangoes but now after renegotiation, Pakistan can export these fruits to Indonesia for the whole year and any time limit has been removed.
Through these steps, Pakistani agricultural products will gain greater market access in Indonesia. The activation of PTA followed the signing of a Mutual Recognition Agreement on plant quarantine and sanitary and Phytosanitary measures between Indonesia and Pakistan. Pakistan and Indonesia have a current annual trade volume of $170 million, which is expected to increase after renegotiations on PTA between the two countries. Pakistan wants the same concessions from Indonesia which it is getting from other countries like China, India, Sri Lanka and Asean.
Nandan Denim’s topline, gross profit, and ebitda rose significantly during the quarter ended June 2017. However, an uptick in average realisation per meter was offset by higher cotton procurement costs and a rise in operating expenses, thereby impacting the company’s margins. Conclusion of the capex resulted in higher depreciation and finance costs, too, eventually taking a toll on the final profit margin.
The company is likely to reduce its debt by Rs 60 crores every year from its regular cash flows. The capacity utilisation rate at the company’s denim manufacturing facility is expected to scale up from 85 per cent in the recently-concluded quarter to 90 per cent by fiscal ’18-end, thus supporting higher volume-driven sales growth in the long run.
Headwinds such as the Gujarat floods and the pink bollworm attack on cotton fields in the state may lead to higher raw material prices. But the company has 47 to 60 days of cotton inventory and is reasonably confident of adequate supplies as the pan-India cotton acreage improves substantially. In the near future, raw material cost fluctuations are unlikely to affect the company’s operating margins considerably.
From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.
Myanmar’s garment industry is seen as synonymous with low wages, long working hours and sub-standard working conditions. But it is difficult to negotiate higher wages when factories are being squeezed by their multinational brand customers. So, unions must look beyond minimum wages and push for a new wage fixing mechanism that takes account of the way that brands contract with suppliers and the prices they pay.
To achieve a living wage there is a need for higher wages to be set across the entire industry in order to prevent individual factories and brands from negotiating lower prices based on lower wages. The minimum wage right now does not take into account other wage-related factors like working hours, skills training and productivity. There is a need for a system that lifts standards across the market and enables workers to enforce their own agreements.
In addition the country should ease entry restrictions for foreign firms, undertake active investment promotion in garments through complementary reforms in finance and trade policy, expand training to tackle the shortage of high-level skilled manpower, and engage with buying firms, especially global retail or apparel corporations.
Many owners view the minimum wage – which is the second lowest in the region after Bangladesh – as a maximum price rather than a floor price. They prefer paying the minimum wage rather than a living wage.
