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In 2015, the textile and textile products industry in Malaysia was the 10th largest export earner, contributing approximately 1.7 per cent to Malaysia’s total exports of manufactured goods. The textiles and textile products industry in Malaysia comprises four sub-sectors. These are primary textiles which cover activities such as polymerisation, spinning, weaving, knitting and wet processing; made-up garments; made-up textiles; and textile accessories.
Due to the intensified global competition, Malaysia’s textile manufacturers are moving up the value chain by diversifying into the production of higher value-added textiles, implementing automation and computerised manufacturing processes, seeking business collaboration with foreign companies to acquire new technologies and undertaking research and development activities to develop new processes, new applications and value-added products. The industry currently employs more than 68,000 workers.
The US, Japan, China, Singapore and Turkey are Malaysia’s top five export destinations. The US is the leading market for Malaysian textiles products taking 18.3 per cent of the industry’s total exports. Malaysia’s imports from Germany for the first 10 months of 2014 rose by 4.4 per cent while Malaysian exports to Germany during the same period went up by 3.9 per cent.
Malaysia is Asean’s number one exporter to Germany. The main exports include electronic and electrical products, electrical machines, printers, machinery parts and components, rubber products and optical lenses.
Honeys, the big Japanese clothing retailer that shifted production from China to Myanmar in 2012, is mulling with the idea of opening its third factory in Yangon, it is understood. The expansion of operations of Honeys in Myanmar is highlighted in a National Association of REALTORS (NAR) report on the bright outlook for the manufacturing sector as it benefits from an end to economic sanctions and low-cost labour.
Honeys, which in 2012 became the first Japanese garment manufacturer to begin production in Myanmar, makes about 18,000 pieces of clothing a day at its two Yangon factories, it was reported on January 14. It said that the factories account for about 20 percent to 30 percent of Honeys sales in Japan, one of the main destinations of garments made in Myanmar, along with South Korea and the European Union.
Since it began operating less than two years ago, the number of production lines at the second Honeys factory increased from five to 34 and its workforce from about 300 to 2,600, NAR reported. Honeys began outsourcing to China in the early 2000s but decided to shift part of its production to Myanmar because of cheaper labour. Labour costs were beginning to rise in Myanmar, which introduced a minimum daily wage in 2015, but at about K200, 000 a month were still lower than Bangladesh and Vietnam, Mr Takeshi Iguchi, Honeys head in Myanmar, informed the NAR. Cheap labour and the lifting of sanctions had contributed to rapid growth in the garment sector and the Myanmar Garment Manufacturers Association representing domestic and foreign companies, had quadrupled to about 400 members since 2015, NAR maintained.
"At oncoming February 2018 edition of CPM, 750 exhibitors, around 1,350 international brands from 27 countries will be presenting their new autumn/winter collections for 2018/19. In fact, for the 30th edition of CPM-Collection Premiere Moscow to be held from February 19 to 22 2018, the organisers OOO ‘Messe Düsseldorf Moscow’ and ‘Igedo Company’ from Düsseldorf have seen a significant increase in area of country pavilions."
At oncoming February 2018 edition of CPM, 750 exhibitors, around 1,350 international brands from 27 countries will be presenting their new autumn/winter collections for 2018/19. In fact, for the 30th edition of CPM-Collection Premiere Moscow to be held from February 19 to 22 2018, the organisers OOO ‘Messe Düsseldorf Moscow’ and ‘Igedo Company’ from Düsseldorf have seen a significant increase in area of country pavilions.
Christian Kasch, Project Manager International, CPM explains, “The upcoming CPM is also set for continued growth. After the difficult years of Russian market, which CPM successfully defied, this is very pleasing. Even long before the official registration deadline for international exhibitors, we were able to report a significant rise in the number of requests and number of exhibitors in the Germany and Turkey country pavilions. For the newly created ‘CPM Accessories & Shoes’ area in particular, demand was particularly high.”
CPM’s growth is also reflecting a positive development in Russian fashion market. A study by the Fashion Consulting Group reveals, more and more international brands from the mid-range and premium price segments are coming to Russia. In the first half of 2017, 28 international brands opened their first stores in Russia. Around half of them are from the fashion segment. Most brands are from Italy. Nikolay Yarzew, Russian Project Manager, CPM, is expecting record number of Russian exhibitors. He says, “Due to the extended exhibition space with new halls and themed areas, we are also expecting a further noticeable increase in the number of professional visitors.” Business development and expansion are once again buzzwords for Russia.
Thomas Stenzel, MD, OOO Messe Düsseldorf Moscow, states, “CPM is the number one tradeshow for the Russian market and is regarded as the ultimate order platform. We are committed to ensuring that a wide range of top-class brands and collections relevant to this market are not only present, but also have a noticeable growth in their presence. For Russia, CPM is an ideal platform for the fashion business in terms of communication, imports, exports and trends. And for anyone who does business in Russia’s fashion sector, CPM is a must. It plays a crucial role in the success of the Russian clothing market!”
Country pavilions
The pavilions, which are promoted by corresponding countries, show a representative selection of ladies’ and menswear collections from Germany, Italy, Spain, France, Turkey and Russia. The largest collective comes from Germany: ‘Made in Germany’ is the biggest country pavilion at CPM with an increasing growth rate. ‘Made in Italy’: Ente Moda Italia (EMI) will be presenting more than 140 collections at the next CPM.
With a creative booth, Turkey is flying the flag as a fashion country at CPM with resounding success: the Turkish space has been extended to 2,280 m2. Sabri Sami Yilmaz, Board Member of the Turkish ITKIB association, says, “The retail sector is developing rapidly in Russia. It is estimated that annual average growth rate is 10-15 per cent since 2000. As far as the developments in retailing are concerned, the trend is spreading towards big cities outside of Moscow. Turkish ready-to-wear exports to Russia are worth $500 million, while total textile exports are about one billion US dollars. This data shows that Turkey is Russia’s third biggest importer of ready-to-wear and the second biggest importer of textile products.”
New support programme
Small, aspiring fashion brands are shaping the development of Russian fashion market. But taking part in trade fairs poses a particular challenge for these young designers. To support newcomers at the start of their careers, the new StartUp Russia support programme will be launched at CPM. As a part of the Designerpool project, brands like Kogel (Asya Kogel and Nadya Orlova), Ija Yots, Masha Varlamova and Notmysize (Leon Kraifish) will be showcasing their collections at the upcoming CPM. Awarding the best creations by young designers, the finale of the annual PROfashion. Masters competition also traditionally takes place during CPM.
Bangladesh-based Denim Expert (DEL) would represent the country at the Munich Fabric Start 2017. DEL is a modern denim manufacturing unit run from the port city of Bangladesh, will present Spring/Summer '18 trends at the Munich Fabric Start to be held from January 31 to February 1. This would be the sixth year when DEL would participate in the show.
Mostafiz Uddin, the MD of DEL, said since its inception, DEL has always participated in the major apparel expos and denim shows held across the world. DEL will not only display latest collections and also showcase the position of Bangladesh in international denim scene.
Mostafiz, who is also the Founder and CEO of the Bangladesh Denim Expo, further averred that now Bangladesh has many trendsetting stories to tell the world. Like world's best LEED certified green denim manufacturing unit, as well as the best green denim textile unit and also the best green washing plant, all of these are situated in Bangladesh.
Denim Expert will introduce some new washes, keeping in fashion with the trends in this Munich Fabric Start. The new washes include spot repair and aged effects, artistic paint treatments, color blocked patch effects, pinto paint wash, moon bathed used, vintage fantasy, extreme vintage finishes, vintage dusty used, natural hand worn effects, shadow patch & repair, heavy re-worked patch and repair. Focusing more on women's jeans wear, the DEL will also introduce some exclusive wash effects like localized damage & rips, sun-bleached used, color blocked patch, cut & sewn contrast panel effects among others.
China’s exports aren't really growing despite the yuan’s massive six per cent depreciation against the dollar in 2016. One major economic engine, housing and investment, looks poised to slow this year. Mortgage lending slowed and credit growth as a whole have dropped to their lowest level in ten months. Slowing credit growth means weaker investment down the line.
China’s December exports are down six per cent from a year earlier. In contrast, Korea has shown a rise of six per cent and Taiwan a rise of 14 per cent. So China’s Asian rivals are posing stiff competition and doing far better. China’s November exports to the US and Europe were up seven per cent and six per cent but then these are also the places where trade tensions are likely to flare up in 2017.
With growth in Europe and the US looking up, and developing countries struggling, Chinese export growth is poised to become more dependent on trade relations with the West. China’s labor market is looking better, so consumers will likely step up somewhat, and the investment slowdown will likely be moderate—barring a major policy misstep. But trade is still important, particular with capital outflows showing no sign of abating.
Bangladesh’s garment exports to Germany will continue to grow in future due to the high quality of products and competitive prices, German traders feel. Germany is the second largest export destination for Bangladeshi apparel after the US. As a member of the EU, Germany will continue its duty privilege for Bangladesh, said Manfred Junkert, DGM of the Confederation of the German Textile and Fashion Industry at a press conference on the sidelines of Heimtextil fair in Frankfurt recently.
Garment exports from Bangladesh to Germany have been increasing over the years. The Asian country exported garments worth $4.65 billion to Germany in 2015-16, $4.33 billion in 2014-15 and $4.37 billion in 2013-14, according to Export Promotion Bureau (EPB).
Talking about Brexit, Junkert said it was a serious issue for them as the UK is a big trading partner of Germany. If the UK leaves us (EU), there is a possibility of serious consequences for Germany, Junkert observed. The UK is the third largest export destination for Bangladesh after the US and Germany, with Bangladesh shipping apparel worth more than $3 billion to the UK a year. As a trade bloc, the EU is the largest garment export destination for Bangladesh. It offers a zero-duty benefit since 1971 under its Everything but Arm scheme. Bangladesh exported garments worth $17.15 billion to the EU in fiscal 2015-16, $15.36 billion in 2014-15 and $14.75 billion in 2013-14, according to EPB.
On the Transatlantic Trade and Investment Partnership or TTIP, Junkert said negotiations have stalled now with the change in power in the US. Usually, signing a free trade agreement takes six to seven years. Germany will have to wait more than this time to sign the TTIP. It now depends on the US government, Junkert maintained.
Concerns over future fine wool supplies have pushed the Australian wool market to its highest level since 2011. There have been sharp rises over the three days as the market continued with the rally in December. Finer microns were reasonably steady but 30-microns and coarser fell as much as 30 cents. The finer microns enjoyed the most support and extended their premiums over the broader microns which had less extreme rises. Buyers scrambled for quantity for most of the week, pushing lower spec types along with the better types.
Merino skirtings followed fleece types higher with the superfine types most affected. In line with pre-Christmas trends, the crossbred market was again fairly lackluster compared to the merino catalogue. All buying segments were active, with indent, forward sellers, processors and even some speculators working hard to secure wool. Chinese, European and Indian interests were all active in the market.
Even though 51,300 bales were up for sale, this week’s offering included one of the smallest percentages of merino wool for the selling season and there is concern over the amount of finer wool coming onto the market in future. The good season experienced across Australia is becoming evident at sales, with higher vegetable matter content wool being offered.
More than 20 leading international apparel brands have written to Bangladeshi Prime Minister Sheikh Hasina to express concern about the recent labour unrest in Ashulia and particularly the detention of union leaders. Those among the signatories are H&M, C&A, Esprit, Gapm Next, VF Corp, Primark, Inditex and Li&Fung. The letter urges the Bangladeshi government to adopt a wage board for the garment sector and suggests that the local increased cost of living is contributing to unrest among garment workers.
The letter requests the government to take steps to ensure the protection of workers' rights and pays special attention to the representatives of the workers who were arrested. The letter makes clear that the brands do not support any illegal strikes or violent protests but recognise that the root cause of unrest must be addressed through social dialogue; improving the dialogue on the labour market.
In what could be deemed a thinly veiled threat, the letter goes on to suggest that unrest among garment workers could cause damage to the reputation of Bangladesh as a reliable sourcing market. Explaining why it signed the letter, H&M said in a note that it was deeply concerned by the recent unrest in the Bangladeshi textile industry. For H&M group it is important that its products are manufactured under good working conditions, in all production countries.
The factories have re-opened and production has resumed. Factory management, trade union representatives and trade association Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are now negotiating the terms for the terminated workers. H&M’s staff in Dhaka is monitoring the situation closely and are in close contact with the company’s suppliers, industry associations, trade unions and other buyers.
Avantex will take place in France from February 6 to 9, 2017. This is a trade fair dedicated to high-tech fabrics for fashion and research in the field, highlighting intelligent, connected fabrics, materials which combine nanotechnology and cosmetics, and surprising finishes and coatings.
The aim is to provide a pioneering offer, starting with raw material and continuing through to sales, for each segment. It’s a source for innovative products throughout the value chain. Start-ups will present their innovations and fashion solutions. Coloreel will exhibit its instantaneous dyeing machine for embroidery and Euveka, a robotic mannequin especially for pattern-making.
Wolford from Austria will exhibit its latest biodegradable designs. In addition, four European fashion schools with high-tech fashion origins will present their perspective on the future of the clothing and materials industries. Catwalk shows will showcase innovations and set them in motion.
Avantex has a vision of uniting high-tech companies and fashion product designers and managers and presenting a wealth of new developments and insights for the future of fashion. French firms will exhibit latest innovations in technical textiles, which will serve as basis for a fashion collection dreamed up by the show’s art directors. Avantex Paris belongs to the group of related trade shows organised by Messe Frankfurt France.
The textile industry in Pakistan has got a revival package. Results are expected in six months and to give a boost to the country’s dwindling exports. Import of cotton and man-made fiber will be exempt from duty and sales tax. Duty drawbacks on exports include four per cent on yarns/grey fabric, five per cent on processed fabrics, six per cent on home textiles/made-ups and seven per cent on garments, seven per cent for sports goods, leather and footwear and five per cent for carpets and tents.
A network of roads, highways and motorways will be laid, integrating different regions of the country. Interest rates have been lowered and investors are being facilitated. The zero-rated facility has been given to five export sectors in the budget.
Exporters are given incentives and will be liable to increase exports by five per cent from January to June 2017 and then by a further 10 per cent in financial year 2017-18. Dozens of power plants are being installed under the China Pakistan Economic Corridor. The objective is to ensure availability of cheaper electricity on a sustainable basis. The plan is that 10,000 megawatts of electricity would be added to the system by next year and 30,000 megawatts within the next few years.
