Turkey’s readymade clothing and apparel exports rose 4.6 per cent in the first 10 months of the year compared to the same period previous year. The aim is to reach $18 billion at the end of 2018 and $19 billion at the end of 2019. The apparel sector contributes 10.7 per cent to Turkey’s overall exports and 13.1 per cent to industrial exports.

The EU is the biggest market for Turkey’s ready-to-wear and apparel sector. This is followed by Germany, Spain, Britain, the Netherlands, France, Iraq, the US, Italy, Denmark and Israel.

As for other markets, there was a 48 per cent increase in exports to Russia, one of Turkey’s largest trading partners, followed by a 30 per cent increase in exports to China, the world’s largest ready-to-wear supplier. Exports to Qatar rose by 102.4 per cent, by 65 per cent to Libya, 50 per cent to Slovakia, 40 per cent to Serbia, 35 per cent to Egypt, 28 per cent to Romania, 25 per cent to Albania and 24 per cent to Kazakhstan.

Turkey’s readymade clothing and apparel sector, which has assumed the role of a pioneer, does value added exports and contributes to employment and exports.

The Cotton Textiles Export Promotion Council (Texprocil) presented 56 awards across 32 categories to 36 companies this year. Smriti Zubin Irani, Minister for Textiles, presented the awards in Mumbai. The criteria laid down for selecting the winners included their export performance for the year 2017-18 with the weightage on percentage increase in their total export, breakthrough in the market and focus on product development etc. This year a category on generating highest employment was also added.

Top players received accolades in different categories. Vardhman Textiles was honored with six different awards while Trident and Welspun each got four awards. In the category ‘Other Fabrics’ including embroidered lace etc, Atlas Exports got gold and Alok Industries achieved silver.

Special achievement awards were given to GTN Textiles for yarn; Paramount Textile Mills for fabrics and Premier Fine Linens for madeups. Globe Cotyarn got the gold award for the highest employment generation as did BVM Overseas, the yarn division of Sintex Industries. It is pertinent to mention that 22 out of 36 award winning companies this year received the awards last year as well.

Texprocil has a membership of around 3,000 companies spread across major textile clusters in India.

A workshop on how to effectively implement global framework agreements (GFAs) in the textile and garment industry of Myanmar took place recently. The aim was to ensure that under GFAs workers’ rights are respected in the supply chain at all global operations of multinational companies.

More than 60 per cent participants were young trade unionists. The workshop included a presentation on GFA brands in the textile and garment sector and the importance of signing an agreement with multinational companies as a means to build better industrial relations.

Participants discussed how they could use global framework agreements for organizing and how to apply brands’ leverage for workers’ rights under any rights violations. The participants continued with mapping of multinational companies in the textile and garment sectors, and looked at ways of overcoming the difficulties of organizing a new workplace.

Trade unionists raised questions on gender discrimination, outsourcing of some jobs, the differences on rights in an agreement and in reality, violations against unionization, fair wages and fair treatment under a GFA. An attorney from Myanmar gave a talk on workers’ rights violations in Myanmar, legal rights and implementation. Participants closed the workshop with new organizing plans under GFAs and future mapping ideas.

Denim Première Vision will be held in London on December 5 and 6, 2018. The show will welcome 89 exhibitors, compared to 80 a year ago. Among the companies present will be:, Advance Denim, Albiate 1830, Artistic Denim Mills, Artistic Fabrics and Garment Industries, Artistic Milliners, Arvind, Berto, Bossa Denim, Calik Denim, Kurabo, Kuroki and Raymond UCO Denim.

The spring/summer 2020 season will be divided into four fashion themes, discover, care and share, performance perspective and personalization. The first day will be dedicated to conferences on topics related to fashion, while the second will focus on eco-responsible denim. In addition to round tables on respectful denim, a smart library will show samples and innovations of selected exhibitors and a smart wardrobe will present finished products conceived thanks to eco-responsible materials and production processes.

Following the launch of the Première Vision Marketplace, its market space for fabric samples, in the latest edition of Première Vision Paris in September, the team responsible for this pole will be available to give information to exhibitors and buyers about the tool. This marketplace will welcome the suppliers of the leather sector next February and the exhibitors of the denim sector in June. Manufacturers of textile accessories will join them in September.

Pakistan has allowed the import of cotton from Afghanistan/ Central Asian states via the land route. The objective is to bridge the demand and supply gap in the textile sector. The textile industry of Pakistan consumes around 12 to 15 million bales of cotton per annum.

The cotton imports will be subject to all sanitary and phytosanitary regulations. A permanent quarantine facility will be set up for cotton imported through the land route. Cotton is a sensitive crop. It attracts a variety of pests and a fumigation process is a must to counter such threats.

Meanwhile Pakistan will withdraw sales tax and customs duty on imports of cotton. This is to encourage value addition, reduce the cost of doing business and bridge the gap between production and consumption.

Pakistan has been a net cotton importer since 2001. The country produces short to medium staple length cotton which implies that long and extra long staple cotton has to be imported for production of finer yarn counts for subsequent transformation into high value added finished products. Import of cotton remained duty free till zero per cent slab was abolished in 2014-15 and customs duty of one per cent was imposed along with a five per cent sales tax.

Bulgarian textile mills, unions and brands including H&M, Inditex and ASOS met recently to look at ways to improve wages and labor rights in the country’s garment and footwear sectors. The groups met as a part of an EU-supported project targeting the textile sectors of seven countries in the region, namely Albania, Bulgaria, Croatia, Macedonia, Montenegro, Romania and Serbia. All face challenges in improving employer-employee relations and labor rights in their respective textile sectors, with these issues hampering growth and competitiveness.

In Bulgaria, there are around 1,00,000 workers in the textile, garment, leather and footwear industries. The sector is characterised by low wages and poor image, which has led to labor shortages. Bulgaria has the lowest minimum wage in the European Union. There are very few collective bargaining agreements.

Industriall Global Union has introduced the cooperation between brands and unions which started with the Bangladesh Accord, and continued with global framework agreements (GFAs) and the ACT initiative which is intended to achieve living wages through industry-wide collective bargaining linked to the brands’ purchasing practices. A training session was carried out for national, regional and local level union representatives on how to use GFAs for organising workers into unions.

Representatives from GFA partner brands H&M, Inditex and ASOS, also members of ACT, explained how they in cooperation with unions solve problems when they occur and promote social dialogue and collective bargaining.

Norms under the Amended Technology Funds Scheme (ATUFS) may be simplified for players in textile and intermediaries across the value chain. Textile players face severe difficulties while availing benefits under the ATUFS due to its complicated structure.

The complicated structure of ATUFS has made it one of India’s least preferred subsidy schemes. For example, overseas machinery suppliers have to be enlisted in suppliers’ list for which the government asks for documents like the ISO (International Organization for Standardization), a certificate which machinery suppliers are reluctant to show. Secondly, the government has introduced joint inspection by textile experts in financial institutions or industry associations.

Apart from the allocation of 16-digit machine identification code number engraved on imported machinery, the government has included approval for all individual machinery mandatory for the plant. The total fund allocation under ATUFS has been low since its launch in January 2016.

Meanwhile, India’s textile and apparel exports jumped by a staggering 38 per cent in October due to growing demand from overseas. The boom has been triggered by a recovery in the global economy. The depreciating rupee helped boost realisations of textile and apparel exporters. While overall textile exports posted a jump of 28 per cent, shipment of apparel from the country shot up by 54 per cent in the month under consideration.

"In recent years, these companies have been facing many challenges from the Chinese markets. Prices are increasing, minimum units required are rising, there are worker shortages, late shipments and factories are closing. Although some large companies have begun shifting production elsewhere to find cheaper labor costs and factories that could meet their needs, many companies that had well established supply chains, have not established back-up plans or searched for new countries for sourcing."

For long, fashion accessories companies have relied on Chinese factories to make their products. Twenty-five years ago, fashion jewelry shifted production from the US to Asia and as other categories, such as handbags, grew in importance, the factories overseas became the go-to places to manufacture.

In recent years, these companies have been facing many challenges from the Chinese markets. Prices are increasing, minimum units required are rising, there are worker shortages, late shipments and factories are closing. Although some large companies have begun shifting production elsewhere to find cheaper labor costs and factories that could meet their needs, many companies that had well established supply chains, have not established back-up plans or searched for new countries for sourcing.

Chinese companies face staggering taxes

Chinese companies making luggage, handbags, backpacks, wallets, purses, hats, belts and similar items are suddenly facing staggering duties as a side effect of the tariff war. With purchase orders shipping between September 24, 2018, and January 1, 2019, they will now pay an additional 10 per cent duty, and goods shipping after January 1, 2019, will be subject to an additional 15 per cent tariff —making for an additional 25 per cent total.

The majority of goods imported by these Chinese companies were already taxed at tariff rates ranging from 16 to 20 per cent of the imported value. The addition of another tariff has created cumulative tariff rates that exceed 30 per cent and go as high as 45 per cent. This subjects handbags and luggage items to the highest tariff rates of any product imported into the United States. In fact, these rates are on par, or higher than, goods from countries that do not have normal trade relation, such as Cuba and North Korea.

Decreased margins for US retail companies

The US retail industry for accessories is already under financial stress as sales have been down over the past two years and many of the larger retailers have consolidated or closed retail locations. In the short term, these companies will have decreased margins, but in the long term, the cost increase will be passed along to consumers.

While there are many categories that are not currently impacted by these tariffs, such as footwear, jewelry and apparel, they will be included in future tariff announcements. There is no timeframe, no schedule and no assurances of a new trade agreement with China in the near future.

India emerges an alternative to China

India will become an alternative to China for production of these categories of goods. There are a few US-based resources that are likely to expand but in order to mitigate the long-term effects of tariffs, the US is aggressively exploring other options for its members and associated companies.

Indian factories are continuing to expand their capabilities and quality, with many becoming increasingly design focused. And in many Indian factories founded in the late 80s and 90s, second generation leaders are taking the helm, bringing with them a global perspective, innovative ideas and an understanding of how their businesses must change to provide solutions for brands and thrive in this ever-changing market.

The tariffs have highlighted lack of diversity in the US supply chain. The lesson that US must learn is that in order to be successful the US companies, alongwith a healthy stock portfolio, also need to have a healthy sourcing portfolio.

A Buyer-Seller Meet is being held in Sweden, November 22 to 23, 2018, by the Export Promotion Council for Handicrafts (EPCH).

EPCH is the nodal agency for the promotion and development of handicrafts exports from India to various destinations of the world.

More than 25 Indian exporters are participating in this BSM and displaying a wide range of Indian handicrafts, home furnishings, floorings and textiles, houseware and decoratives, fashion accessories, shawls, scarves, bags, fashion garments from India. The Buyer Seller Meet is a B2B exhibition for booking orders for future sourcing of foreign buyers in Sweden.

With premium products to suit contemporary demands, manufacturers in India focus on freshness and new thinking. India’s exports to the Scandinavian region have seen a healthy and consistent growth with Indian manufacturers and exporters growing knowledge of market trends and consumer preferences.

The main export markets for Indian handicrafts are the US followed by the EU, Middle East and the Far East. However, Scandinavian countries are emerging as a new potential destination for exports of handicrafts. Indian craftsmanship, ethnic designs and colors are unique and have no comparison with products from other countries. The range produced in India is very large and wide and the quality and price structure varies from high-end market to middle end market.

VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories has appointed Todd Dalhausser, Brand President, Altra®, effective immediately. He will report to Steve Murray, Vice President, Strategic Products.

Dalhausser was earlier employed with Wolverine Worldwide, where he served as Senior Vice President of Sales for Saucony North America, one of the leading brands in the Running Specialty sector. He managed Saucony/Hind’s apparel business, where he oversaw design, development and product merchandising. He also held similar positions for both Vans® and Reebok.

The appointment of Dalhausser as President of the Altra® brand provides an opportunity for Brian Beckstead, co-founder of Altra®, to assume a new role as Founder and Chief Marketing Officer. In this role, Beckstead will be responsible for all Product and Marketing for the brand. Beckstead will report to Dalhausser.