FW
The much-popular Chanderi saris are to get a boost with the State Government extending every possible assistance, to take it to new heights.
Anthony de Sa, Chief Secretary, while inspecting sari manufacturing process at weavers’ houses at Chanderi, said that better avenues for craft of weavers will be explored through use of modern technology. He added that Chanderi weavers will not be allowed to face any problem and that the State Government would make efforts to resolve all their problems at by chalking out an action plan.
Thus, skilled weavers from Banaras and Bengaluru will impart training to the weavers and angle looms will be set up in place of wooden looms and punching machines will be installed for computerised designs. Besides, job cards too, would be provided to registered farmers. The Chief Secretary also visited and inspected under-construction Handloom Park costing Rs 50 crores on 4.19 hectares at Chanderi. This park is slated to have a facility to impart global level training to 240 weavers and there will be a computerised design centre to promote online sale and marketing of Chanderi saris. There will also be a yarn bank where weavers will be able to acquire all types of silk and other threads for saris at fair prices.
The Chief Secretary further added that Chanderi’s ancient heritage will be preserved and that Chanderi clothes will be linked with tourism and they will also get a trade mark.
Global synthetic fiber prices fell by 21.7 per cent in September, their steepest monthly decline in more than six years. Declining oil prices, currency devaluations in key textile production regions and slowing global demand due to curtailed economic growth in demand are all contributing to the decline.
After rising abruptly in late August, crude oil fell slowly and steadily throughout September, finishing the month at around two per cent down for the month. In Asia, the world’s largest fiber-producing region, synthetic fiber prices fell by 25 per cent year-over-year, the biggest year-over-year drop since early 2009.
Low capacity utilisation rates, hovering around 76 per cent, small orders due to expected price volatility and tightening liquidity have resulted in a slowdown in Chinese demand rather than the pick-up usually seen at this time of the year. Chinese demand for staple has been slightly better than for filament and is expected to get a boost from seasonal demand for fiberfill in outer wear for local consumption and exports.
The European synthetic fiber price index fell by almost 22 per cent compared to September 2014. The US index fell by almost 16 per cent in September, the least of any major world region, but its biggest monthly drop since August 2009.
Kusters Calico Machinery offers wet processing concepts for woven and knit fabrics. It has now come up with two new washing concepts, which will showcased at the forthcoming ITMA 2015 exhibition to be held in Milan, Italy. The super flush washer can handle sensitive woven fabrics from voiles to lycra. The flush master caters to requirements of pile fabric processing and print washing of tension-sensitive synthetic home furnishing fabrics with high twist yarns.
Both washers consume very little water. In the super flush washer, the combined washing effect of both horizontal as well as vertical washing produces a penetrative, diffusive and turbulent effect. The distance between the two fabric guiding rollers is very short. The tension control is through the load cell. The company opened in 1996. Kusters Calico currently exports around 70 per cent of its production to other countries.
The company is also expanding its business in coating and lamination technology. It is currently initiating factory expansion with a dust proof assembly shop to meet the growing demand and quality expectations of customers. This new expansion will help it deliver in shorter lead times and meet customer deadlines.
Kusters Calico, based in Gujarat, is a subsidiary of the German-based Jagenberg Group. Jagenberg caters to European markets and the OEM requirements of European machine manufacturers.
www.kuesters-calico.com
The government intends to rationalise various dole-out-based schemes; in light of that it plans to tweak the Technology Upgradation Fund Scheme (TUFS) in the textile sector and may end interest subsidy provided to mills against investments made by them.
The government may offer only capital subsidy or a similar form of support for investments under the new scheme, while details are being worked out in consultations with the Prime Minister’s Office (PMO). Under the TUFS, the government, at present provides interest subsidy up to 6 per cent, capital subsidy up to 30 per cent in the form of a grant and support under the margin money scheme (another form of capital subsidy). Budget allocation for subsidy payment has already been cut back to Rs 1,521 crores for 2015/16, compared with Rs 1,864 crores a year before.
The government wants to remove various interest subsidies across sectors to curb their distorting effect on the interest rate market. Replacing interest subsidy with other forms of support such as viability gap funding and upfront capital subsidy, aimed at ensuring better transmission of the monetary policy, is the government’s aim.
Farmers and exporters have been the biggest beneficiaries of interest subsidies so far. The government’s major interest subsidy outgo, including for subventions on short-term credit to farmers and export promotion, is budgeted at Rs 14,903.42 crores for 2015/16, compared to Rs 11,147.17 crores in 2014. However, this amount doesn’t include the subsidy payment under the TUFS.
India is the biggest importer of worn clothing and textiles in the world. In 2013 India’s total imports of used clothes were 4.3 per cent of total global imports. India was followed by Russia and Pakistan; both these countries accounted for 3.9 per cent of global imports of used clothes. The top three exporting countries in the year were USA, UK and Germany.
There are two categories under which used clothes are imported in India, wearable and mutilated. The import of wearable clothes requires a license from the government, with the condition of 100 per cent re-export. This segment constitutes about 30 per cent of used clothes imports. Import of mutilated clothes does not require government approval and accounts for nearly 60 per cent of worn clothing imports. The yarn extracted from mutilated rags and woolens is used to make blankets.
While new imported garments attract an import duty of 15 per cent, used clothes can be imported at a much cheaper rate. Between 2010 and 2013, India’s imports of used clothes and textiles increased by more than 200 per cent. Panipat is the home to the world’s largest shoddy wool industry, which supplies, low-quality blankets across India, south Asia and east Africa to the poor, while slightly better versions are commissioned by institutions such as railways, prisons and the army.
Germany will continue helping Bangladesh develop its garment sector. Bangladesh wants German cooperation in the field of solar power. It wants help in setting up coal-based power plants. Germany will put emphasis on expanding cooperation in the energy and leather sectors.
Bangladesh has teamed up with the International Labor Organization (ILO) and Germany to develop an Employment Injury Insurance scheme. This will initially be meant for the readymade garment industry. It may then be extended to other industrial sectors. Legislative issues will be addressed and national institutional capacities will be improved.
ILO actively promotes policies and provides assistance to countries to help extend adequate levels of social protection to all members of society. The need for setting up a mechanism to deliver compensation in the aftermath of the Rana Plaza tragedy highlighted the need for an Employment Injury Insurance scheme. Workers will receive payment in case of injury, while employers will benefit from low-cost and no-fault accident compensation insurance for workers.
This scheme is expected to benefit the lives of millions of workers, support businesses and enhance the reputation of Bangladesh’s industry worldwide.
The first Avantex trade fair, an initiative by Messe Frankfurt France dedicated to high-tech fabrics and R&D for the fashion of tomorrow was held concurrently with Apparel Sourcing fair. It drew the attentive curiosity of visitors and exhibitors at the Le Bourget Exhibition Centre.
Avantex was perceived as a significant indicator and catalyst of an ongoing trend in the fashion industry towards more technological, more connected, multi-functional aspects. “We wanted Avantex to drive fashion into the future, which was exactly what fashion product designers and directors wanted. With the invaluable support of the Taiwan Textile Federation, we brought together 28 exhibitors who offered a host of techniques; encapsulation, intelligent micro systems, conductive textiles, thermal solutions and new digital processes and high-tech materials which are - unusually - already available for immediate use in garments,” said Michael Scherpe, CEO of Messe Frankfurt France.
By the evening of September 16, 2015, 13,075 visitors from 109 countries had arrived at the venue. Especially visitors from France increased 12 per cent, for whom the subject was particularly apposite in view of the current atmosphere on the domestic textile market. Visitors from China up one per cent and Hong Kong - up 48 per cent also appreciated the Avantex offer.
The 17 exhibitors from Taiwan were offering multifunctional fabrics, highly technical and high-performing, featuring moisture transfer, quick drying, UV protection, insulation, anti-bacterial, deodorising and antistatic properties, expandable in four directions, etc, in colours and patterns.
The dedicated, highly eclectic forum, staged by Louis Gérin and Grégory Lamaud, was a perfect expression of the skills and technologies available to integrate collections of garments and accessories. A programme of 14 well-frequented presentations allowed the general vision of combining fashion with promising technologies to be defined more precisely and adopted. The participating experts addressed emerging subjects and prospects such as fascinating applications of intelligent textiles, linen of the future, 3D printing and the meld of electronics and fashion.
Avantex also celebrated the alliance between contemporary design and intelligent textiles at a fashion show featuring outfits produced by students at ESMOD under the tutelage of Eymeric François, emeritus fashion designer.
www.avantex.messefrankfurt.com
Leading European trade fair for garment sourcing - Apparel Sourcing, concluded recently. Its exhibitor list puts accessory sourcing at the forefront with the established shawls & scarves and accessories areas. Held at Le Bourget from September 14 - 17, 2015, Apparel Sourcing was attended by 400 exhibitors, who crowned it the garment and accessory industries' leading trade fair for manufacturing.
Part of the Texworld Paris constellation of trade fairs, Apparel Sourcing benefited from general glowing reports by French visitors, whose numbers had leapt 12 per cent by the 3rd day, making France the leader among the top five sources of visitors from European nations. Strong growth in the number of professionals from Tunisia representing a rise of 38 per cent, Morocco with 18 per cent, Portugal with 17 per cent and Romania with 51 per cent and other major manufacturing countries confirmed the potential and advantages of Apparel Sourcing for production which meets the demands of fashion labels in full.
It is a platform for skills in the production of ready-to-wear clothing and accessories for men, women and children of 14 countries, most of them in Asia: China, Hong Kong, India, Pakistan, but also including Korea, Turkey, Switzerland, Sweden and France. In September 2015, two new national pavilions from Bangladesh and Vietnam, underlined the variety of solutions available. Bangladesh's offer, already represented in a piecemeal fashion, has expanded into a squad of almost 13 exhibitors, well acquainted with European requirements through their attendance at previous French trade fairs.
In the case of Vietnam, the 11 exhibitors sponsored by the Vietnam Textile & Apparel Association concentrated on a casual/sportswear and accessory range, and were delighted with the commercial contacts they made.
www.messefrankfurt.com
What led to the downfall of these labels? Retailers are realising that while Gen Y loved brands and loved donning their logos, Gen Z didn’t really care much for that. They, instead pick disposable fast fashion from stores such as H&M, Century 21, and Uniqlo. And, there are three more brands in the pipeline that may face the same fate as the others unless they change their ways.
Brands face a bleak future
Abercrombie & Fitch is one among brands that are going down. Their marketing ethic and logo-centric clothes of ‘for cool kids only’ clearly stated that it was meant for a certain category of customers. The brand eventually started selling plus-sized clothes; it even got rid of the models in its stores, to attract good-looking shoppers. However, it still sells a surplus of outfits with the Abercrombie name on them.
The brand’s quarterly sales have dipped for 10 straight quarters, even at Hollister—its surf shop-cum-fast-fashion concept. Abercrombie is going ahead with its plan in a big way to open 15 new stores internationally this year, though the strong dollar is wrecking havoc on companies reconciling foreign currencies back to the US.
Year-to-date losses of the brand increased six-fold from the same period in 2014, even with a $408 million cash backup. This suggests that Abercrombie & Fitch may eventually succumb.
Gap's decision to remake all its stores into fast-fashion houses shows that it's following, not leading the retail industry. This happens when one chases fashion trends, instead of leading them. For 14 straight months, comp sales are down and the situation seems bleak. Gap is looking to turn its namesake stores and Banana Republic shops into disposable-clothing retailers too. While its Old Navy concept look as though it has successfully made the leap to fast fashion (second-quarter sales were up 3 per cent).
Art Peck, CEO, assured analysts, the retailer wants to layer the supply chain success of Old Navy onto its other concepts in time for spring 2016. The brand feels all its stores should do more than just dabble in disposable fashion, though ‘chic to cheap’ hardly seems to be the way to grow sales.
In the last quarter, Gap's comps were down 7 per cent, and Banana Republic's dipped 10 per cent. Thus, it needs to pull up its socks, and Abercrombie has proved that merely transforming a concept into a fashion-forward store does not spell success.
Another ones bites the dust
Guess’s second-quarter earnings dipped 17 per cent to $18 million, with per-share profits falling 19 per cent from the year-ago period to $0.21 as currency fluctuations swiped $0.10 per share. Sales in the Americas were down 5 per cent, and its e-commerce division suffered a 3 per cent drop.
Overseas too, the brand is struggling with sales in Europe down 4 per cent, and in Asia dipping 6 per cent; all this without any currency fluctuations. For three years, revenues have declined causing it to shut nearly 30 stores so far in 2015. Within the next year, 50 more would down shutters in a bid to control costs.
These retailers, seems to be dying a slow death, though each one has a unique opportunity to reverse the course they've set. Even if they don't regain their former glory and growth trajectories, they could still provide investors with meaningful returns.
www.gap.com
Indian spun yarn exports maintained their growth tempo in August 2015. After rebounding in June and July, exports grew 21.5 per cent in volume terms while the rise in value terms inched up three per cent.
China continued to propel yarn exports from India, although unit value realisations continued to decline. During August, 83 countries imported spun yarn from India, with China accounting for 44 per cent of the total value, with its imports rising 88 per cent in terms of volume and 67 per cent in value year on year. Bangladesh, the second largest importer of spun yarns, accounted for more than 11 per cent of all spun yarn exported from India. However, exports to Bangladesh increased 17 per cent in volumes and three per cent in value.
Egypt, the third largest importer of spun yarns, saw volume and value down one per cent and 18 per cent year on year. These three top importers together accounted for close to 60 per cent of all spun yarn exported from India in August.
Lithuania, Bahrain, Costa Rica, Cambodia, Romania, Canada and Argentina were the fastest growing markets in August, more than doubling their imports from India. However, they together accounted for only 1.3 per cent of total exports.
