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AWI partners brands in product development
Australian Wool Innovation (AWI) works with leading brands such as Adidas and Max Mara in new product developments. AWI partners premium brands and strategically invests in targeted campaigns – through both digital and traditional channels – to help create demand for Australian wool among consumers in key markets globally. It is determined to maintain the momentum in its international marketing efforts and in its investments in R&D. The aim is to unite the wool industry behind a common goal: to help woolgrowers be their best and get the best returns for their hard work. AWI collaborates with leading manufacturers and brands to promote the premium natural benefits of wool as a performance fiber.
The company is committed to greater engagement with Australian woolgrowers. The board is trying to have the right mix of skills and experience. A general manager of operations has been appointed– a new role that will allow the CEO to focus on more strategic activities. Meanwhile, wool prices have hit record highs in recent months. In 2018 growers were able to reap the benefits of an increase in the average EMI of 23 per cent from the previous year. The sports, outdoor and athleisure markets are helping drive up demand for Merino wool.
APL launches shoe collection featuring Australian Merino Wool
Athletic Propulsion Labs® (APL) has launched the APL TechLoom Breeze Merino Wool collection, its most sustainable and lightest running shoe to date. Each shoe in this collection features 80 per cent Australian Merino wool, innovatively knitted with APL’s patented, stretch-rebound TechLoom upper. This unique combination delivers greater elasticity, strengthens the shoe and allows it to naturally hug the foot for maximum support, especially during performance and sports lifestyle activities.
The APL TechLoom Breeze Merino Wool collection forms a part of APL’s Holiday 2018 Collection and is also the first technical-knit footwear to be certified by The Woolmark Company in the global market. More than two years in development, the certified wool rich blend engineered knit is designed to keep its form and shape, using filament-wrapped wool yarns to strengthen and add resistance to prevent abrasion and extend wear. The running shoe utilises the latest fully-fashioned knitting technology, meaning the shoe is knitted to its final shape, reducing the amount of wastage associated with regular cut-and-sew techniques. This innovative design also enhances wool's natural breathability, as the technology allows for seamless design features such as breathable panels.
AAFA hails trade war truce
AAFA is encouraged by the news of a 90-day cease fire in the US-China trade war – following the meeting between President Trump and President Xi on the sidelines of the G20 in Argentina recently.
In a statement American Apparel & Footwear Association President and CEO Rick Helfenbein said the resumption of talks between the US and China is encouraging for the industry.
AAFA is pleased that American consumers have been protected from additional tariffs on most of its products to date. This 90-day reprieve on increased and future tariffs will lead to the swift removal of the punitive tariffs already imposed by the administration. The association will continue to emphasise to the administration the need to stop taxing American consumers to the detriment of its retail economy.
AAFA cautions US against terminating NAFTA
Rick Helfenbein, President and CEO of the American Apparel & Footwear Association (AAFA) has cautioned the Trump administration against terminating the North American Free Trade Agreement prior to the ratification and implementation of the new US-Mexico-Canada Agreement, following reports that they will give a formal termination notice to Congress. As per Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, terminating NAFTA before USMCA is ratified will definitely create economic havoc and uncertainty for American companies who conduct business in the region.
The association has told the US administration it is essential for the new agreement to be implemented seamlessly, so that its businesses can learn the new rules and have time to adjust our supply chains to take advantage of the deal. Adding additional pressure on Congress to sign or fail is not in the best interest of America.
Tariff increase on Chinese imports to escalate prices, hinder growth
"The apparel industry is waiting with bated breath for the much-anticipated meeting between President Trump and Chinese President Xi Jinping that will decide the future of US tariffs on Chinese exports. Trump is expected to slap tariffs on another $267 billion worth of Chinese goods, which also includes apparel and footwear. This would push up tariffs from 10 to 25 per cent in January 2019. China already faces $50 billion worth of tariffs."
The apparel industry is waiting with bated breath for the much-anticipated meeting between President Trump and Chinese President Xi Jinping that will decide the future of US tariffs on Chinese exports. Trump is expected to slap tariffs on another $267 billion worth of Chinese goods, which also includes apparel and footwear. This would push up tariffs from 10 to 25 per cent in January 2019. China already faces $50 billion worth of tariffs.
Escalating tariffs to reverse economic progress
Currently, goods originating in China, including some apparel products and leather, nearly all raw materials used to make textiles, from cotton to cellulosic, polyester and even vegetable fibers, woven and nonwoven fabrics, certain textile machinery, hats and handbags, are subject to 10 per cent tariffs, and escalating the tariff threat could see some of those products facing a higher 25 percent tariffs.
For US companies importing manufacturing inputs or finished products, these additional significant costs will result in higher prices, fewer jobs, slower wage growth and reduced investment. The cost of the trade war can reverse this year’s economic progress.
Negative impact on brands
Julia K Hughes, President, United States Fashion Industry Association believes that more penalty tariffs will
have a negative impact on fashion brands/retailers and customers as prices will rise across the board. The company believes there is a time lag before companies increase prices and it impacts customers. Increasing tariff on clothing and footwear would hurt both the economy and brands/retailers.
To deal with this, most companies have developed a contingency plan which includes shipping some products earlier than usual and shifting some production outside China. However, these actions will also have ripple effect on prices which is expected to rise in many countries and very little unused capacity at the most sophisticated production facilities.
According to Hughes, companies can adopt certain strategies in the short-term to minimise the price pressure. However, she warns if the duties increase to 25 per cent, there might be a substantial price increase by mid-2019.
Reshore jobs, bolster production
Auggie Tantillo, President and CEO, National Council of Textile Organizations (NCTO) supports the US president’s decision to address China’s unfair trade practices. However, he believes imposing tariffs on apparel and other textile end items would reshore jobs throughout the domestic supply chain. Further, it would bolster production throughout the western hemisphere where there is ample supply from multiple countries. Shifting sourcing away from China to suppliers in the USMCA/CAFTA region would also alleviate any impact to consumers, since producers in this hemisphere enjoy duty-free access to the United States.
Negative effects of non-China sourcing strategy
Rick Helfenbein, President and CEO, AAFA terms 25 per cent tariff as a non-starter. He believes American business operating on tight margins cannot absorb such an increase leading to a rise in prices for American consumers. He also feels an abrupt shift to a non-China sourcing strategy would have a catastrophic effect on its already fragile sourcing eco-system.
Levi’s denim customisation offers creative freedom to customers
To what consumers’ appetites for perfectly damaged jeans, Levi’s has been selling denim customised by Aldridge, rapper Snoop Dogg, actress Sasha Lane, surfer Kelly Slater, tattoo artist Dr. Woo, basketball star Blake Griffin and others.
Model Lily Aldridge, Vice President of technical innovation for Levi's, designs a pair of jeans on an iPad alongside Bart Sights. So does her husband, Kings of Leon singer Caleb Followill, A pair of Levi's designed by Lily Aldridge go through the laser process.
Technology to create personalized experiences
Levi’s plans to expand its customisation program next year where consumers can follow Aldridge’s lead and get their denims customised. The brand will install a laser machine, developed by Spanish company Jeanologia, in one of its stores in the U.S. Online and in stores, consumers will use a similar app to personalise their jeans. Levi’s is yet to finalise the cost for customisation of their jeans.
Lily Aldridge places a tear on a pair of jeans she personalises at Levi's temporary downtown L.A. studio. She has customised so far two pairs of jeans and drew cheetah spots on a back pocket with the laser machine. These jeans are displayed by Bart Sights, Vice President-Technical Innovation for Levi's.
Besides beating fast fashion at their own game, customisation delivers what people need when they want it, and giving them the freedom to express their creativity.
Uniqlo profits up 38 per cent, continues retail expansion globally
Uniqlo’s operating profits have steadily increased each year, with a reported growth in August this year of 38.1 per cent. The Japanese retailer is attempting to take over the European market. This Fall, it opened stores in Stockholm and Amsterdam and has announced more European stores next year, including Copenhagen and Milan.
Uniqlo wants to be known as an important and influential player in the fashion industry. It wants to be Japan’s answer to Zara or H&M. Meanwhile Uniqlo plans to double the number of stores in Southeast Asia and Oceania to about 400 by 2022. The emphasis is on standalone suburban stores meant to extend the brand's reach beyond shopping malls. Standalone suburban locations were key to the chain’s growth in Japan.
The Japanese retailer aims to triple revenue generated in the region in the year ending August 2022. That would mark a faster rate of growth than for Uniqlo overall, which expects revenue to double over the same period.
Besides Thailand, Uniqlo’s presence in the Asean region covers Australia, Indonesia, Malaysia, Singapore and the Philippines. For Uniqlo, the Indian market has the potential to become the next China -- Uniqlo's biggest market outside of Japan.
UK apparel retailers under pressure to comply
There are concerns over the sustainability of the UK fashion industry and the vast amount of associated waste that is channeled to landfills. In the UK, some 235 million items of clothing are sent to landfills a year and 1.3 billion tons of carbon emissions are produced by the global fashion industry.
As consumer awareness increases, this year has seen an unprecedented war on single-use plastic with most companies ditching plastic straws and plans announced by many to reduce waste, the fashion industry might have to change its tune of denial. Rock-bottom prices by UK fast fashion retailers are leading to a throwaway culture.
Fast fashion retailer Primark is planning to launch a take-back scheme next year, where clothes can be returned once they are no longer wanted and used by overseas charities. While this scheme is a step in the right direction, it is not enough and presents the industry with the problem of what to do with all the garments returned as the UK lacks an industry that deals with these materials. With UK high-street already struggling, retailers may have to consider being drivers of change rather than risk being branded as unethical by consumers down the line.
Pakistan: PCGA opposes import of raw cotton
Pakistan Cotton Ginners Association (PCGA) has opposed the import of raw cotton through Torkham and Wagah borders, terming it against the law and detrimental to local cotton growers as well as the national interests. They argue granting permission to cotton import through Torkham or Wagah border was unlawful as cotton can only be imported through the seaport. They suggested the government to impose regulatory duty and sales tax on the imported cotton to save the local market.
They feared granting import permission would not only depress the local cotton prices to the disadvantage of growers but may also hurt the indigenous crop because the country had no fumigation facilities at the borders to make the import pest free.
Quoting import law, the PCGA office-bearers said the import was also illegal for raw cotton as it could only be imported with prior permission of the DPP and adopting phytosanitary measures complying with the Plant Protection Quarantine Act 1967, which also disallows cotton import other than Karachi seaport, where quarantine and fumigation facilities are available. Around 1,947,544 bales were lying unsold in ginneries and another two million bales would be received from the field in near future. In the presence of four million bales in the country, it is an unwise decision to allow the import of cotton from neighboring countries.
Textiles sector a success story India
The textile industry is the second largest industry in India. India is the largest jute producer in the world and the second producer of cotton and silk worldwide. The evolution of the textile industry has been phenomenal. From being a country that produced to take care of domestic requirements, the sector has grown manifold to become the second largest producer in the world.
Textile structures in technical applications are creating new market potential. The growth and success of Indian textile industries lie in the vertical integration of policies and framework which have helped manufacturers in domestically subjugating the entire process which also bears an impact on the overall cost like raw material treatment, captive power generation etc. This has also led to in-house production of cotton, jute etc.
Natural fibers like cotton, wool, which are currently exempt from tax, are taxed under GST. For example, it is levied at five per cent for cotton and 18 per cent for synthetics, while silk and jute are exempt. Despite this, the textile industry as a whole would benefit from GST. With the advent of GST, various fringe taxes like octroi, entry tax, luxury tax etc, are subsumed. This helps reduce costs for manufacturers.












