FW
The EU’s apparel imports continued to surge in Jan-Feb 2018 too. According to the data has released recently by the European Commission.
The 28-nations bloc upped its apparel volume by 11.17 per cent while value got a boost of just 1.19 per cent all because of a massive drop of 8.96 per cent in unit prices.
Unit prices remained as low as € 17.07 as against € 18.75 in the same period last year.
Overall, China still holds the most supreme position in the EU’s apparel market with export worth € 4.60 billion in Jan.-Feb. ’18 period.
The volume of apparel shipment from China to the EU increased by 3.97 per cent on the Y-o-Y basis; however, the country noted a significant fall in value terms by 2.80 per cent.
The Garment Workers Coordination Parishad, which is a platform for readymade garment (RMG) workers comprising 52 organisations, has demanded that the minimum wage of the workers should be increased to Tk 16,000 ($189). Apparel workers in Bangladesh receive only $67 (Tk 5,300) per month, the lowest wage compared to all other countries in Asia.
It said that workers in India get $168, while those in Cambodia get $170. Workers in other countries like Pakistan, Vietnam and Myanmar receive $124, $154 and $86, respectively.
Kamrul Anam, joint convener of the association said that the workers should get Tk 16,000 as minimum wage with Tk 10,000 as basic salary to fulfil their monthly demands.
The leaders of the association have also asked for 10 per cent increment in salary every year, six months maternity leave and three months of apprenticeship period with basic salary. (KD)
"Significant investment in automation in the U.S. textile and apparel industry, particularly in yarn, thread, and fabric production, has depressed U.S. employment despite increases in domestic shipments”, according to the report titled “The Economic Effects of Significant U.S. Import Restraints" by the US International Trade Commission
In coming years, increased capital investment in automation should contribute to a further expected decline of 3.7 percent, on average, in employment in the textile and apparel industry during 2015–20.
The most significant decline is projected in the textile products (5.9 percent) and textile mills sectors (5.7 percent).
At the same time, U.S. textile and apparel exports are expected to increase 2.8 percent, with U.S. apparel exports increasing by 10 percent as a result of growing demand for higher-quality, specialised, or “Made in the USA” apparel.
Primark has joined the Ellen MacArthur Foundation’s Make Fashion Circular initiative that aims to drastically redesign the fashion industry by creating a circular economy for fashion around the world.
The move is part of Primark’s environmental sustainability strategy, developed to reduce the clothing chain’s impact on the environment.
Primark will embrace the three key principles of the initiative: business models that keep clothes in use; materials that are renewable and safe; and solutions that turn used clothes into new clothes.
The programme, Make Fashion Circular, aims to ensure the fashion industry evolves into a sustainable sector that can benefit society and the environment. It was founded in May last year at the Copenhagen Fashion Summit as the Circular Fibres Initiative.
The EU textile and clothing industry, over the last 10 years, has invested almost € 50 billion into modern manufacturing and service facilities and technologies, creating safer and higher added value European jobs.
The industry’s turnover, since 2013, has grown by 14% to € 181 billion and extra-EU exports by 15% to € 48 billion, while employment and company numbers have been maintained.
The General Assembly 2018 on June 7, Brussels, will showcase the remarkable growth of the EU Textile and Clothing sector through investment cases and success stories from a diversified group of European companies.
Keynote speakers at the event will include Mrs. Irmfried Schwimann, Deputy Director General at DG GROW, European Commission, Company owners/ managers of Amann & Söhne (Germany), Beaulieu International Group (Belgium), Cotoblau (Spain), Eurojersey (Italy), Innothera (France), Lenzing (Austria), Rovitex (Hungary), and Valérius (Portugal).
European consumer group Beuc has recommended the use EU ecolabelled products.
The label already restricts the use of all chemicals that may cause cancer, change DNA, or harm reproductive health as well as some allergens and endocrine disruptors.
The restriction will apply 24 months after publication in the EU Official Journal. This will follow its scrutiny by the European Parliament and Council. Once in force, clothing and related articles, textiles and footwear containing the listed substances – whether produced within the EU or imported – will not be allowed on the EU market.
Beuc has also welcomed the EU action to restrict 33 carcinogenic, mutagenic or reprotoxic (CMR) substances but it believes that more needs to be done to protect consumers against harmful chemicals in textiles such as endocrine disruptors or allergens.
"Having developed textile operations in 1958 in Northern region and in 1970 in Southern region, Vietnam’s textile industry has come a long way, dominating global textile dynamics today. In 2016, Vietnam was recognised as the third top garment exporter in the world where the top two were China and Bangladesh. Apparel exports account for 16 per cent of the country’s total exports (2017). Today there are about 6,000 textile and apparel manufacturing companies working with 2.5 million employees while the population in Vietnam is about 90 million."
Having developed textile operations in 1958 in Northern region and in 1970 in Southern region, Vietnam’s textile industry has come a long way, dominating global textile dynamics today. In 2016, Vietnam was recognised as the third top garment exporter in the world where the top two were China and Bangladesh. Apparel exports account for 16 per cent of the country’s total exports (2017). Today there are about 6,000 textile and apparel manufacturing companies working with 2.5 million employees while the population in Vietnam is about 90 million.
Apparel and textile products of Vietnam are exported to 180 countries and territories around the world. Garment manufacturing accounts for 70 per cent of the total businesses in this sector in Vietnam with CMT (Cut, Make, Trim) being the main method (85 per cent) of export. Main market for Vietnam textile and garment products are US, Europe, Japan and South Korea. The US has retained its position as the largest importer of Vietnamese textiles and garments, followed by Europe, which has led to rapid development of the country’s textile and garment industry.
Even after facing challenges like the abolition of the Trans-Pacific Partnership (TPP) trade deal in 2017, the country was able to exceed its 2017 target of
$30bn with an export turnover of over $31bn, an increase of 10.23 per cent over previous year. Le Tien Truong, Deputy Chair of the Vietnam Textile & Apparel Association (Vinatas), says major markets of the US, the European Union, Japan and South Korea maintained good growth, while there were breakthroughs in exports to other markets such as China, Russia and Cambodia. The South Korean market grew and came close to the Japanese market, reaching an export value of $2.7 billion in 2017 while Vietnam’s textile and garment exports to China reached $3.2 billion, the same as the export value to Japan.
Domestic market
Meanwhile Vietnam’s domestic market demand too is growing powered by young consumers, increasing urbanization, and growing disposable incomes. These markets are attracting major international brands. Country’s retail sales are rising at 20 per cent annually, and spending on apparel is the second highest in Vietnam, following spending on food items. As Vietnam Textile & Apparel Association stats show, the domestic textile and garment market has grown year-on-year at 10 per cent in 2017.
A recent report by Textiles Intelligence forecasts the country’s textile production capacity will rise 12-14 per cent per annum from 2016-2020 and export potential is forecast to increase 15 per cent per annum. Owing to such expanse, the Vietnamese textile and apparel industry will reach $50 billion by 2020. Le Tien Truong opined that the balance in development of the domestic market and the foreign market has been an important point for the local textile and garment industry to ensure jobs for the employees and to maintain development of the enterprises.
FDI spectrum
The first 11 months of 2017 witnessed a steep 11.9 per cent spurt in FDI in Vietnam as compared to the previous year, shows a government release, where Vietnam received a sum of $16 billion in FDI, mainly driven by manufacturing sector. FDI in Vietnam’s flourishing textile and apparel industry is increasing rapidly, which is making the country one of the most popular destinations in Asia for textile investment. According to the data from Vietnam’s Foreign Investment Agency (FIA), FDI investments in Vietnam were up 152.78 per cent year-on-year in the first two months of 2017, and investment in Vietnam’s textile and apparel industry now accounts for 21 per cent of the country’s total FDI.
FIA also reports that Chinese investors have registered 123 investment projects in Vietnam between January and February of 2017. One of the largest among these Chinese investments is the $220 million invested in a Vietnam polyester synthetic fiber plant in central Tay Ninh province. Chinese investment in Vietnam’s textile plants will enable it to have more advanced technology and increased capacity in its textile and apparel productions. Additionally, textile investment from South Korea in Vietnam is also on the rise. By early 2017, South Korea’s Sea-A Group has committed a total of $2 billion in capital in Vietnam’s textile and garment industry.
Katie Bickerstaffe and Pip McCrostie have joined M&S. Bickerstaffe is the outgoing boss of Dixons Carphone’s UK business. McCrostie brings extensive experience in finance and transactions from a career at Ernst & Young where she transformed and led the Global Corporate Finance business.
Under-pressure M&S has beefed up its board with two new non-executive directors offering the kind of retail and business experience it needs. It's believed that the retailer will accelerate its store closure program as sales continue to fall. The retailer has been encouraged by results so far where store closures haven't seen sales in those areas plunging. Instead, shoppers have switched to other M&S stores nearby.
The number of full line (i.e. those selling both general merchandise and food) store closures will rise to 100 from the 60 originally planned. M&S reset its strategy in November. The plan is to speed up store closures, accelerate the relocation and downsizing of other stores, and reposition its food offering. This year it has also detailed changes to its technology function, clothing and home logistics and food marketing.
Jill McDonald was appointed in October as clothing and home managing director. She has been tasked with delivering the sustained sales and profit growth that has eluded Britain’s biggest clothing retailer for a decade.
Intertextile Pavilion Shenzhen will be held in China from July 5 to 7, 2018. Buyers will have around 38 per cent more suppliers to source from this year. With a strong focus on women’s wear, the fair features a wide range of premium women’s wear fabrics, lingerie and swimwear fabrics, printed fabrics, accessories and much more.
Intertextile Pavilion Shenzhen has consolidated as the go-to platform for Chinese women’s wear sector due to its location in the country’s fashion capital, while it is being increasingly used by suppliers from around Asia, in particular Japan, Korea and Taiwan, to gain access to all the big Chinese and global retailers who source at the fair.
Last year saw significant increases in domestic fast fashion-oriented buyers and online and designer brands, with many exhibitors offering flexibility in terms of small MOQs and on-demand deliveries to take advantage of these trends. The Fine Japan Zone will house around 12 companies, with a focus on high-quality cotton and manmade fabrics for women’s wear and casual wear. The Korea Pavilion will provide women’s wear fabrics including manmade, embroidery jacquard, tri-acetate woven and printed options, as well as knits, functional fabrics and faux fur. The Taiwan Pavilion features knitted, jacquard, woven functional and denim fabrics, as well as lace and embroidery.
The textile industry in South India wants a relaxation in cabotage rules for movement of cotton from Gujarat to Tamil Nadu by sea. It’s believed this will bring down the transport cost of cotton. Cabotage refers to the practice of imposing restrictions for movement of domestic cargo by foreign flag vessels.
The southern states account for almost 60 per cent of the spinning capacity in the country. However, a substantial volume of raw material —cotton — comes from Gujarat and Maharashtra. The industry sees scope for a 50 per cent reduction in transport cost if the cotton is moved by ship instead of lorries as done now.
About 10 lakh bales of cotton are being moved by ships from one domestic port to another for the last couple of years in Indian flag vessels. Relaxation of the rule will enable several foreign flag vessels to move cotton from one Indian port to another at competitive prices.
Every year, mills in Tamil Nadu buy 60 lakh bales to 70 lakh bales of cotton from Gujarat. This cotton (Shankar 6 variety) is popular for use in hosiery items. Textile processing facilities are spread across clusters in different states and hence transport cost is key to determining the cost competitiveness of the industry.
