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Cambodia’s garment exports up 16 per cent
Cambodia’s garment exports grew 16.1 per cent in the first half of 2018. Exports has been boosted by a trade agreement that allows Cambodia to export travel goods to the United States duty free. The US in 2016 expanded trade preferences, under changes to the Generalized System of Preferences, for Cambodia and other least developed countries producing goods such as bags and luggage and accessories for travelers.
Cambodia’s garment industry is the largest employer in the country. Garment exports account for 10 per cent of the economy. The Southeast Asian economy is expected to grow seven per cent this year, compared with 6.9 per cent in 2017. But growth may ease to 6.8 per cent in 2019 and 2020. Foreign direct investment is estimated to have increased 14.3 per cent during the first six months of 2018, more than half of it Chinese investment in Cambodia’s real estate sector.
Under the EU’s Everything But Arms scheme, 47 less developed countries, including Cambodia, enjoy duty free access to the EU for exports of all products except arms. However, one risk the country faces is a potential revision of trade preferences. Another is a slowdown in the agriculture sector, which is now recovering.
Non-improvement of ESG strategies to cost Asian companies dearly
As per a report commissioned by HSBC in conjunction with East & Partners, Asian companies, particularly those in Southeast Asia, are at risk of falling out of multinational corporations' supply chains if they fail to improve their environmental, social and governance (ESG) strategies. The conclusion is based on interviews with senior executives of 1,731 companies and institutional investors. More than 300 companies and investors in Asia -- specifically China, Hong Kong and Singapore -- participated in the survey conducted over five weeks to the end of June.
As per the report, 24 per cent of Asian respondents have an ESG strategy compared to 48 per cent of corporations globally and 87 per cent of European and UK companies. Globally, tax incentives and financial returns are the two biggest drivers for corporations undertaking ESG-related activity. But Asian corporations' motivations depart from those of their global peers.
The study suggests fewer Asian companies have an ESG strategy compared to their global peers. This creates an opportunity for Asian corporations to reinforce their position by utilising green-labeled financing to communicate their focus on sustainability issues, and for others to gain advantage over their peers while 'sustainability leadership' remains relatively scarce.
Textile Exchange organises first OCRT for West Africa
US NGO Textile Exchange organised the first Regional Organic Cotton Round Table (OCRT) for West Africa in Koudougou. Attended by over 100 participants, the meeting included a large number of producers from across the region as well as representatives from governments, NGOs, ginners, traders, manufacturers, brands, and exporters. It was held in collaboration with Catholic Relief Services (CRS) and USDA during the Salon International du Cotton et du Textiles (SICOT).
A key focal point was a new report by Change Agency for Textile Exchange. Based on key interviews with local industry stakeholders, the report dwelt on the potential for Burkina Faso to develop into a major African hub for organic cotton.
The report concluded that Burkina Faso has an excellent opportunity to grow its organic cotton sector, given more collaboration and a concerted effort to bring more value-adding into the continent rather than exporting raw cotton. The country is second only to Tanzania as a producer of organic cotton in Africa. This gives the country the opportunity to act as a hub for regional development, providing the raw material for the development of cotton ginning, mills and other facilities.
Burkina Faso’s organic cotton has demand from three places: global brands, regional demand from neighbours, and domestic demand.
Green Industry Conference on in Thailand
The Green Industry Conference is being held in Thailand, October 3 to 5. The focus is on the opportunities green growth could yield for businesses and emerging economies. The event is exploring how the green industry can create jobs and economic opportunities to diversify the economy, while decreasing resource dependency and pollution. The aim of the conference is to scale-up and mainstream green industry policies, methods, and techniques throughout developing and transition-economy industries.
Over 400 participants have gathered, including high-level officials, representatives of the private sector, industry associations, academia and civil society to discuss how the concept of green industry helps countries achieve multiple development objectives.
Speakers from around the world are participating in sessions on the themes of green industrial policy, resource management and the circular economy, greening businesses and supply chains, clean technologies and innovative business models, and building green industry infrastructures of the future.
Held first in 2009, the Green Industry Conference is the premier global conference on green industry trends and practices organized every two years by UNIDO and partner organizations. Previous conferences were held in Korea, China, Japan and the Philippines.
Thailand has attached the highest priority to sustainable development and several key green industry projects and programs are currently underway, including green mining, productive eco-designs and eco-standards.
US ups trade war, now includes wool and related products
The US has announced the third round of import tariffs on goods from China. The latest batch imposes a 10 per cent import duty on goods from China. The first two rounds earlier this year imposed 25 per cent tariffs on goods imported from China. China retaliated each time with its own punitive import duties on US products, such as cotton, soybeans, wine, fruit and beef. The latest round of US duties means that around 44 per cent of China’s exports to the US now have excess duties imposed.
A full-scale trade war is breaking out. Until now the products included in the first two rounds of import duties by the US did not include wool products. However, this week’s list includes a range of wool and wool-related products.
The list does not include any finished wool or wool blend clothing, such as suits, jumpers, trousers, coats, overcoats and so on. From Australia’s perspective, these are critical. These products make up the vast majority of US imports of apparel-related wool products from China.
China accounts for 53 per cent of all US imports of wool clothing. An extra duty would hurt the trade by pushing the price paid by US consumers higher.
Activewear to witness steady growth through 2019
A recently released study Future of Apparel by The NPD Group reveals, activewear, which currently represents 24 per cent of total apparel industry sales, will grow through 2019. Yoga pants, sweatpants, hoodies, and other activewear have become fashion staples in the U.S. for lots of activities.
In the 12 months ending June 2018, sales of total sweatshirts increased by double-digits and active bottoms by 5 percent. Total dollars in sweats/active bottoms categories are expected to grow through 2019 on strong performances across various activewear categories.
Athleisure’s growth is attributed to the fact it has mainstreamed across ages and demographics. As an example, social shoppers, a consumer segment identified in the Future of Apparel report that represents the largest portion of the population, are indicative of the athleisure consumer. They consider themselves to be social, fashion, and image conscious and activewear is a big part of their future purchase plans.
Tranoï to launch during Shanghai Fashion Week
French trade show Tranoï which just celebrated its 30th year of its existence recently, looks to launch during Shanghai Fashion Week in April 2019, after a pre-launch event on 14 October 2018.
Tranoï will organise cocktails for all organisations, journalists, buyers and influencers on October 14, 2018. The event will be held at the Bailian Fashion Center YQL, where Tranoï will also stage runway shows for five selected labels, as a preview of the offer for next season.
The trade show will have a mix of Chinese and Asian labels in Paris. Tranoi will begin with a small format, counting on a snowball effect for those thereafter. There are already two trade shows devoted to this selective market held during Shanghai Fashion Week; Mode Shanghai and On Time. The latter attempted a partnership with Italy’s White in 2017, but the project was rapidly curtailed.
GOTS releases factsheet on Sustainable Developmental Goals
Delhi hosted the ‘International Convention on Sustainable Trade and Standards’ (ICSTS), the first of its kind multi-stakeholder convention. The event was convened by the Quality Council of India (QCI) in collaboration with the United Nations Forum on Sustainability Standards (UNFSS). GOTS was the supporting partner to the convention. The convention focused on the practical questions of leveraging trade, standards, and global value chains as engines of sustainable development. It encompassed sustainable trade concept which acquires a broader conception of environmental, economic and social sustainability.
Speaking at the session titled ‘Strengthening Multi-Stakeholder Sectoral Initiatives and Responsible Sourcing Decisions in Textiles Value Chains,” Sumit Gupta, GOTS Deputy Director Standards Development & Quality Assurance said, as the world’s leading standard for processing of organic fibers, GOTS is actively working with national and international brands towards bringing in more transparency and accountability in textile supply chains. The criteria include traceability, waste treatment, environment, working conditions and other aspects of social compliance. This includes prohibition of child labor, excessive overtime and insistence on fair remuneration and so on. Gupta also elucidated how third-party standards, such as GOTS, can help to improve the supply chain interactions; all certified operations are listed in a public database for sourcing and proof. He also referred to the recently released GOTS Factsheet on how certification to GOTS helps to ensure compliance to each of the 17 Sustainable Developmental Goals.
(SDGs). He said, “GOTS is a Consumer Facing label. GOTS certified businesses are able to make sustainability claims that are visible to the end consumer. Consumers can then make informed decisions and can also verify those claims on GOTS website.”
India: AIC-NIFT-TEA, Avinashilingam University offer skills training in knitwear
AIC-NIFT-TEA Incubation Centre for Textiles and Apparels has signed a MoU with the Avinashilingam University for employability skill training in knitwear sector. The centre, which had already inked a pact with VLB Janakiammal College of Arts and Science for the same programme, also plans to join hands with the Periyar University and colleges affiliated to the Anna University in this regard. The idea is to absorb students interested in the knitwear industry, enhance their employability and train them to come up with innovative ideas to support the industry. The centre will first conduct boot camps in respective institutions before preparing these incumbents to join us.
The centre will help to understand existing problems in different sectors of knitwear industry and find out their root causes and probable solutions, which may be technical, managerial discipline or labour-oriented. They would purchase special machines, including body mapping sportswear producing machine, jean knitting and flat knitting machines, which are new to the industry. These students will be exposed to machines and be trained to come up with innovative ideas. In future, engineering students will be asked to share innovative ideas on smart factory concepts. The centre would also support the incubates to market innovative products.
Luxury fashion responds well to Tencel Luxe eco-botanic lyocell filaments
The luxury apparel sector is giving a tremendous response to Tencel Luxe eco-botanic lyocell filaments launched last year. Tencel Luxe was launched as the business spotted a gap in the market for a product with a similar profile to luxury fibres such as silk and cashmere, albeit without the associated sustainability challenges.
Tencel Luxe eco-botanic lyocell filaments are made from wood pulp of trees like eucalyptus, spruce, pine and birch trees. They use pulp sourced from sustainable wood and are manufactured via a closed-loop lyocell production process, which received the ‘European Award for the Environment’ from the European Union. The process ensures minimal environmental impact due to low process water and energy use, raw materials and chemicals consumption.
Demand for these fibers has been extremely strong with €30 million to be invested in a further pilot line at the company’s Lenzing headquarters in Austria.The market is pushing for further innovation which the brand will drive through new investments.These fibers have also established a price point which luxury brands are receptive to












