FW
The 11th International Cotton and Textile Fair, which opened in Tashkent on October 15, this year, saw more than 1,000 representatives of the cotton and textile companies and firms from 40 world countries participating.
The fair’s main objective is to expand the long-term cooperation with international organisations and foreign companies, analyse the trends and review the prospects for the development of the world market, and to inform the Uzbek cotton consumers about its quality and latest innovations in the areas of production cotton, trade and logistics.
The demand and supply, prices and factors of influence on the world cotton market, the state and prospects of production and marketing of cotton in Uzbekistan, were the topics of discussion at the conference.
The government of Uzbekistan with the assistance of the International Cotton Advisory Committee (ICAC) organises the fair annually; it is being held since 2005. Uzbekistan signed export contracts worth about seven million tons of cotton fibre at the fair, totally.
Globally, Uzbekistan ranks sixth for production and fifth for the export of cotton. Around 3.5 million tons of raw cotton and 1.2 million tons of cotton fibre are produced by the country each year. Companies from Bangladesh, China, and South Korea are the main buyers of Uzbek cotton.
The Saudi Arabian readymade garment industry is valued at about $4 billion, 90 per cent of which is imports from foreign markets. Roughly 10 per cent of the total value of Saudi consumer spending goes on garments and footwear and the figure continues to rise as population and income grow.
The garment industry in Saudi Arabia is still taking its first steps and is expected to come under fierce competition from global brands that will enter the market soon. The kingdom’s recent decision to allow foreign investors to venture into the local retail market could usher in major changes in the market and encourage local manufacturers to offer more competitive products in terms of quality and cost.
Women’s garments account for 54 per cent of the market and baby wear accounts for 15 per cent, while men’s garments make up only six per cent of the market. 60 per cent of textile sales occur during the months of Shaaban and Ramadan in preparation for Id.
The Saudi Arabian apparel market is heavily reliant on imports especially when it comes to fabric, cloth, accessories and readymade western clothes. There has been a shift toward branded apparel sold through international retail chains. Sales of branded apparels are estimated to be around 25 to 30 per cent of total apparel sales.
Nigeria’s glory days of textiles came to a painful end 14 years ago when most factories were shut down due to factors beyond their control. The ripple effect of the downturn of events at these factories was a tsunami of sorts leaving thousands of suppliers, food vendors and traders with nothing to fall back on.
Most children of the former textile workers are roaming the streets, getting involved in anti-social and criminal activities. Many ex-workers have been driven from their homes by their landlords, while others got divorced by their wives.
The textile industry in Nigeria faces problems of power, multiple taxation and other teething challenges. Administrative buildings have become dens of rats as well as snakes especially in the rainy season. The textile industry is reduced to producing nothing but customised fabrics for politicians, royalty and the well to do for wedding ceremonies.
Chinese textile traders among other outside textile industrialists contribute almost 99 per cent of the textile products sold in Nigeria. Areas that in the heydays of textile companies had thousands of factory workers are now ghost towns. The government’s intervention fund has not revived the textile industry due to policy somersaults and poor infrastructure. There is massive corruption in the disbursement of the fund.
According to industry sources, after the killings of two foreigners, business executives from global clothing giants H&M Inditex and Gap have cancelled trips to Dhaka this month. This has caused anxiety for Bangladesh’s $25 billion garment export sector.
For the year-end Christmas season, Bangladeshi suppliers to the world’s top brands said they didn’t expect the disruptions to hurt their orders. However, the pressure on an industry is increased by the attacks. The industry faces competition from other low-wage countries and is trying to repair its safety image after several fatal accidents.
Britain warned of more attacks after an Italian aid worker and a Japanese man were shot dead in a span of few days, and the US and Canada asked their diplomats to restrict their movements. Australia too, cancelled a cricket tour in the wake of the attacks.
However, Bangladesh’s government rejected the claim by the Islamic State and blamed the growing violence in the country on its domestic political opponents trying to show it in poor light.
Siddiqur Rahman, Chief of the Bangladesh Garment Manufacturers and Exporters Association said that their western buyers panicked after the killing of the two foreigners and some buyers cancelled their visits during the peak time when they place more orders.
H&M spokeswoman Anna Eriksson said that they were monitoring the situation in Bangladesh closely and they were taking appropriate security measures. Besides, she said, they were also in close dialogue with other brands regarding the situation. Gap, on the other hand, refused to comment on a change in its travel plans. Tesco said that they had asked its employees to be vigilant and consider their movements carefully, but had not stopped business travel to Bangladesh.
www.hm.com
Five leading Hong Kong fashion designers participated in the recently concluded Mercedes-Benz Fashion Week Tokyo 2016 Spring/Summer. They were supported by the Hong Kong Trade Development Council (HKTDC). Tokyo Fashion Week is one of the international fashion events throughout the year where the HKTDC organises Hong Kong designers to participate.
The ‘Fashion Hong Kong’ group show stole the limelight, grabbing the attention of fashionistas and industry players alike at this year’s Mercedes-Benz Fashion Week Tokyo 2016 Spring/Summer, which took place at Shibuya Hikarie.
Lulu Cheung, Chailie Ho, Polly Ho, Kathy Lam, and KOYO William were the participating designers. They received an overwhelming support from both the local and international fashion communities, and the show went viral on various social media channels.
A ‘Fashion Gallery’ Pop-up Showroom was also set up to facilitate networking and business opportunities besides staging the ‘Fashion Hong Kong’ group show. Over 260 buyers, media and fashionistas visited the ‘Fashion Gallery’. The designers’ sources of inspirations, such as music, movies, paintings, space travel, and nature, and their showpieces were showcased.
Hong Kong industries, such as the fashion industry get support by HKTDC by creating marketing opportunities. Besides the Tokyo Fashion Week, the HKTDC will also come together with designers to explore other fashion markets, such as participating in the Copenhagen Fashion Week and the New York Fashion Week, as the next stop abroad.
www.hktdc.com
Bangladesh garment manufacturers and exporters want a ten-year loan rescheduling. They also want the government to provide gas connection on a priority basis.
The readymade garment sector faced challenges from January to March this year due to political unrest. Due to the blockade in the first quarter of this year, supply of raw materials and accessories and transport were affected, so garment manufacturers could not finish products on time and as a result shipments suffered.
In 1983-84, readymade garment exports stood at 3.89 per cent of the country’s total exports. It was 79.61 per cent in 2012-13 and 81.16 per cent in 2013-14. Among other pressures on the readymade garment sector are the devaluation of the dollar in the international market.
In the 40 years since independence, the poverty rate has plummeted from 80 per cent down to less than 30 per cent today, GDP growth has averaged around five to six per cent for over 20 years, and the garment industry has had a lot to do with it.
Bangladesh rose to its position largely because of its lack of regulation and the low wages it pays its garment workers. Bangladesh’s minimum wage for the sector is one of the world’s lowest.
International Conference on African Textile Industry is being held in Addis Ababa, Ethiopia, starting from October 19, 2015. A press release issued by Ethiopian Textile Industry Development Institute stated that participants include investors engaged in cotton, textile, tailoring and stakeholders. Holding the conference in Addis Ababa will benefit Ethiopia to share experiences in textile and garment industry.
Through this conference, the country can also display its potential in the sector and also bring in foreign investors and buyers. Based on the conviction that only by sustainable development the livelihoods of future generations and vital resources can be protected, Aid by Trade Foundation started and initiative, ‘Cotton made in Africa’, which was established in 2005.
The long-term aim is to further develop the value chain in those countries where raw materials are produced in order to generate maximum added value. This goes beyond supporting sustainable cultivation of agricultural and forestry products.
Slow producer sales, lower crop prospects in India, US dollar index weakness and technically oriented buying have combined to lift cotton futures above the highs of the prior four weeks. Concerns about US crop quality also may have played a role.
Prices averaged 57.61 cents, up from 54.41 cents, reflecting gains to 12.62 cents from 10.94 cents in premiums over loan repayment rates. Deficit rains have stunted India’s crop growth and lowered expected yields. Rainfall during the southwest monsoon season (June to September) was 14 per cent below the long-period average.
The Cotton Corporation of India was expected to begin procurement under the minimum support program the third week of October. US total cotton demand remained estimated at 13.9 million bales, 9,20,000 bales below last season and the smallest since a similar offtake in 1988-89. Exports at 10.2 million bales would account for 73 per cent, with domestic mill use contributing the remainder.
Global stocks are projected to decline four per cent or nearly five million bales from the 2014-15 all-time high. The world stocks-to-use ratio is forecast at 95 per cent, down from 101 per cent last season, but well above the recent low of 40 per cent in 2009-10. China is expected to account for 61 per cent of the world carryover, similar to the prior two seasons.
China and Cambodia have seen a 16 per cent rise in bilateral trade volume in the first seven months of the year. Bilateral trade between China and Cambodia has rapidly increased in recent years.
The two countries hope to be able to achieve a target of $5 billion in trade volume by 2017. China is the largest investor in Cambodia. Chinese investments have been made in the fields of energy, garment industry, banking and finance, telecommunications, construction and real estate, tourism, and agriculture. There are more than 3,000 registered Chinese companies operating in Cambodia.
China is one of the top providers of development assistance to Cambodia. The main drivers of the growth of trade between Cambodia and China over the last several years include the strong growth in construction sectors that need to import construction materials, especially from China, while Cambodia exports agricultural products like rice, corn, cassava.
Chinese assistance is mostly in the form of concessional loans. These loans target infrastructure projects, such as roads, bridges, and hydropower projects, and oil and mineral exploration.
As Chinese labour becomes more expensive, and workers become more vocal, Cambodia’s cheap and controlled labor force provides an escape route for Chinese companies.
Very soon the work to build Perarignar Anna Handloom Silk Park in Kanchipuram will begin. The environmental clearance for it is almost done, and the park will hire more than 2,000 weavers.
During the public hearing recently, no objections were raised and the environmental clearance that had delayed the project is set to come through in the next couple of months with the installation of a common effluent treatment plant, said Rajesh NV, Managing Director, Perarignar Anna Handloom Silk Park Limited.
The proposed treatment plant with Zero Liquid Discharge (ZLD) system will ensure environmental safety, said Rajesh. The technology was developed by WTT Technologies, Tirupur.
During the Global Investors Meet last month, Perarignar Anna Handloom Silk Park was a part of MoUs signed with the State Government. Through Scheme of Integrated Textile Parks (SITP), the project has got a funding of Rs. 83 crore. Through Integrated Power Development Scheme (IPDS), it plans to raise another Rs. 100 crore.
Rajesh further said that they were planning to 2,000 upgraded handlooms that would directly benefit 2,000-4,000 people. In the next three years the park should be operational.
