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Bangladesh wants to set up a readymade garment warehouse in Russia in a bid to increase trade with the Commonwealth of Independent States countries. The presence of such a warehouse will boost exports. Bangladesh has so far concentrated only on EU and American markets but now wants to explore new markets with diversified products.
The World Cup Football is going to be held in Russia in 2018. Bangladesh feels this is a great opportunity as knit garments would be in high demand during the world’s number one sports event. Bangladesh exported goods worth $796 million to CIS countries in 2014 and $721 million in 2013.
The Russian clothing and footwear market has been witnessing negative growth since 2014, forcing many European brands to close their stores and exit the market. This, along with China losing its position as the world’s leading garment manufacturer, has opened Russia for exports from Bangladesh and other Asian countries.
Apart from Russia, Bangladesh wants to have a garment warehouse in India, as well, especially, in Gujarat. The country is also in discussions with Sri Lanka and Turkey for free trade agreements, but some issues still remained unresolved.
In an attempt to set up a first of its kind polyester staple fibre plant in Bangladesh, the Deshbandhu Group has joined hands with US-based technology and engineering solution provider, Chemtex Inc. Both firms signed a contract in Dhaka recently. The fibre, produced from synthetic chemical compounds, is so common to natural fibres in terms of strength and quality that it has been considered as a substitute for raw cotton.
Chairman of Deshbandhu Group, Golam Mostafa, says Chemtex will be their strategic partner for the project being set up with $100 million investment. The plant, located in Sirajganj district, is expected to start production in 24 months.
With a flourishing garment industry in the country demand for these fibres is on the rise. Therefore, the plant will largely serve the domestic market. The total production capacity of the unit will be about 400 tons polyester staple fibre a day. Currently, Bangladesh fulfils its polyester staple needs through imports. It imports about $480 million worth of fibre with a total demand of three lakh tons a year.
This weekend, the movement fueled by the spirit of denim celebrating creativity, collaboration, and community, BLUE, returned for a second consecutive season at COTERIE, Jacob K Javits Convention Center, New York. An interactive exhibit featuring the work of today’s leading denim designers was a part of the special section, prominently located in the Javits Center lobby. The catalyst for these one-of-a-kind works of art was ‘music’. The designers interpreted one song and brought it to life through one piece of women’s denim apparel. The exhibit served as a platform for unbridled creativity and inspired denim design.
World’s leading ingredient brand in quality denim manufacturing, ISKO, and WGSN, the leading trend forecasting company partnered COTERIE. Together, they hosted moderate a panel discussion on the spirit and future of denim featuring some of the industry’s leaders. This exciting event was held on the first day of the show. The inaugural BLUE DENIM AWARDS was jointly presented by them. The awards are presented in three categories: Innovative, Inspired, and Emerging.
BLUE’s site-specific editorial publication, features premium brands that participate and creative is directed and produced by FLAUNT.
ThreadSol, an enterprise material management for sewn product industry, will be participating in China International Sewing Machinery & Accessories Fair 2015 (CISMA 2015), which commences from September 23 in Shanghai. ThreadSol is ready to launch a production management tool for global apparel industry called ‘IntelloTrace’. This follows the great success of other products like: intelloBuy and intelloCut, which have been adopted by some of the biggest names such as MAS, Hirdaramani, Blackberry, Madura Garments, Pratibha Syntex.
IntelloTrace, comes with an unrivalled ‘NFC’ technology, for the apparel production floor. With this product, production management and tracking will usher a new era, beyond the RFID and smart buttons. The product accomplishes the thriving need of the industry for a credible, business intelligent tracking product, which includes some very exclusive benefits for the global apparel industry. Besides, the advance technology, this product, streamlines the factory processes and facilitates customisation according to a factory’s requirement, involving minimal process change.
Mausmi Ambastha, Founder of ThreadSol says what sets IntelloTrace apart is its 360 degree visibility feature for the entire factory. Only one major problem is the focus of other tracking systems, while this product views the status of every operator, every department, and section of the factory, giving complete visibility, right from inventory to shipment.
Manasij Ganguli, CEO, ThreadSol opines IntelloTrace is the world’s first 100 per cent mobile management system. One can view the problem, the solution and advanced reports, with just a click on the phone.
United Apparel Fiji, one of Fiji's largest clothing manufacturers has attained an international accreditation. The company is now a Worldwide Responsible Accredited Production (WRAP) facility. Kaushik Kumar, Managing Director feels this is a great achievement as the company is among those WRAP certified global factories that promote social compliance, safe, lawful, humane and ethical manufacturing, he added.
Kumar’s his team put in great efforts to acquire this certification and the fact that the facility got certified in the first audit shows the high level of commitment to the principles of WRAP, which they adhere to. The certification provides them with competitive edge as social compliance and ethical manufacturing is becoming a requirement, while dealing with major companies.
The world's largest independent certification programme, WRAP’s main focus is on apparel, sewn products, and the footwear sectors. Becoming a WRAP certified facility, involves much more than passing an audit. WRAP, takes a collaborative approach to social compliance certification in which it works with the facilities to ensure they remain compliant with WRAP's 12 principles. WRAP principles are based on generally acceptable international workplace standards, local laws and workplace regulations, which encompass human resource management, health and safety, environmental practices and legal compliance including import/export, customs compliance, and security standards.
Four RMG workers died, while 16 were injured when the roof of a garment factory collapsed in Lahore. The building in which the factory ‘Jeans Company Private Limited’ was operating, was poorly constructed and producing for top brands like Primark, TOPMAN, Burton, New Look and River Island. The company produces jeans, shirts and caps for well-known brands and around 1,150 workers were employed at the factory. However, since, it was a Friday, most had left their workstation to attend prayers. Only 40 workers were present when the roof caved in, or else there would have been more casualties.
Jyrki Raina, General Secretary, IndustriALL Global Union points out many garment factories in Pakistan are dangerous as there was still too much complacency among global brands to take responsibility and ensure safe working conditions for workers who contribute to their profits. The roof, which collapsed was in poor condition, built with canes and mud. Also, on the rooftop, a number of chemical-filled drums had been stored by the management, which could be a reason for the collapse. Six people, including the factory manager were arrested after the accident.
The government should restore and activate factory inspections and ensure safety of workers, demanded Ittehad Labour Union for Carpet Industries’ General Secretary, Niaz Khan. The chief minister of Punjab, under pressure from several quarters, announced a compensation of Rs 500,000 ($4,800) for the deceased and Rs 100,000 for the injured. Moreover, trade unions are also ensuring that deceased workers’ families receive Rs 400,000 as insurance claim.
Faced with a sharp decline in exports, cotton textile exporters in India want free trade agreements (FTAs) with major importing countries like the European Union, Australia and Canada to be expedited. Indian exporters are offering their cotton textiles at competitive prices. Despite this, major importers like the European Union give preferential access to Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam. This severely affects shipments from India. Apart from that, there are discriminatory import duties on Indian textiles in markets like China and Canada.
India’s FTA talks with the EU are yet to be concluded and exporters want talks with the EU to be fast tracked so that preferential treatment to India’s competitors is withdrawn and cotton textiles of Indian origin are treated at par with those of other countries. The industry wants cotton textiles to be included under the three per cent interest rate subvention scheme, the product / country matrix to be recalibrated under the newly introduced Merchandise Exports from India Scheme, and funds to be released under the technology upgradation fund scheme.
Countries like Bangladesh import cotton and yarn from India to produce textiles and compete with Indian exports in developed countries. Consequently India’s cotton textile exports fell 7.39 per cent in August 2015 compared to August 2014.
Once it's hottest and booming markets, Prada Spa is witnessing a major dip in profits in China and Hong Kong, The Italian luxury brand saw a fall of almost a quarter in its net profit in the first half as sales dipped in China and Hong Kong. Prada, much like several other luxury brands is struggling in mainland China, as Chinese consumers prefer shopping in Europe and Japan for handbags and other luxury products. This is because these products are cheaper there due to exchange rates and the lack of high import duties. Besides, China’s ongoing crackdown on corruption and gift-giving has also hindered the demand in the market.
However, China’s slump is particularly affecting Prada as its handbags and fashion are losing ground. Apparently, Prada was discounting at its stores, a practice, which is typically avoided by high-end retailers to avoid hurting the brand.
The Italian fashion house is still struggling to get back on track after a number of weak quarters, despite favourable exchange rates with a weak euro. The brand also admitted that the ear future does not seem bright. Donatello Galli, Chief Financial Officer believes that in the second half, there would not be a huge improvement either, but that they are working towards cutting expenses wherever possible.
Moreover, analysts say the brand has suffered due to lack of innovative products. The brand is working on launching new handbags to overcome this hurdle. It would be the category that has typically driven growth and has high margins.
Shabir Ahmed, Chairman Pakistan Bedwear Exports Association (PBEA) was surprised by Muhammad Javed Bilwani, the self-proclaimed leader of the value added sector’s claim that he represents the entire value added sector, when in reality, Bilwani does not. All individual associations are represented by their registered trade associations such as Garment Association, Towel Association, Fabric Association, etc, and Bilwani only represents a small sector of the Hosiery Association. Ahmed is unhappy by the fact that Bilwani was giving wrong export figures. For example, about knitted fitted bed sheets, Bilwani had said Pakistan exports was $750 million, while the correct figure is about $200.
Bilwani statement has not gone down well with PBEA as they believe it is damaging the sector. Pakistan’s exports are dipping, while unemployment rate are on the rise. Also, foreign exchange earnings are low, which is affecting the country’s economy badly.
Ahmed says PM Sharif should take immediate steps to halt the dip in exports and raise employment and industrialisation in the country. He further urged the PM to look deep at the quality of bureaucracy, and to make efforts to improve the economy.
Bangladeshi businessmen and international relations experts are hopeful that Gao Hucheng, the Chinese commerce minister’s recent visit to the country would strengthen bilateral relations over the next few months. China granted Bangladesh nearly $100 million to set up an exhibition centre and expressed interest to invest $300 million in the country’s textile sector during. An MoU was signed on Bangladesh-China Friendship Exhibition Center project between AMA Muhith, Bangladesh Finance Minister and the Chinese Commerce Minister.
The grant and proposed investment will prove to be a boon, believe the textile bigwigs. Experts, feel this is another example of Bangladesh’s growing geo-political and economic importance in the region. Purbachal in the outskirts of Dhaka, will see a Bangladesh-China Friendship Exhibition Centre being set up, spread over 33,000 sq. ft. with 800 exhibition booths. China will provide $86.76 million to Bangladesh as grant of the total cost of the project, which is $102.2 million.
Abul Maal Abdul Muhith, Bangladesh Finance Minister said the Chinese government wants to increase regional connectivity, by constructing roads from Myanmar to Kunming through Bangladesh. Nearly 23 km of the proposed international road from Myanmar to Kunming would be built by Bangladesh under the Bangladesh-Myanmar friendship road project as a gesture by Bangladesh to China, he added.
