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The home textile industry is giving importance to sustainability. Textile sustainability encompasses many factors including responsible chemical and natural resource use and respect for workers and communities. Textile sustainability also includes safe and environmentally effective production practices and products that are free from harmful levels of dangerous substances.
There is a comprehensive portfolio of testing and certification programs that help home textile companies attain all those standards. Science-based testing and certification can help defend and build brand equity in a risky global market place.
Consumers want to know that their products are made responsibly with respect for people and the environment. Consumers are demanding sustainability in their apparel and home textiles will not be far behind. There is a high level of consumer interest in and demand for sustainable products.
People also want to know that the products they buy are safe for their families to use and in order for manufacturers to meet those demands they have to know every detail about the production process. Third party testing and certification can take away much of the uncertainty inherent in a complex supply chain and help ensure that products and facilities live up to expected standards.
The textile yarn market is projected to grow at a CAGR of 4.2 per cent from 2015 to 2020 and reach $12.64 billion dollars by 2020. The market growth is driven by higher levels of discretionary expenditure by consumers and development of new varieties. The market is further driven by factors such as urbanisation and high industrial requirement.
Asia-Pacific accounts for the largest market share for textile yarn, followed by North America and the rest of the world. Textile yarn products such as cotton and polyester are among the widely used products in Asia-Pacific; changing consumption pattern is one of the major factors driving the textile yarn market in this region.
The North American region is projected to be the fastest growing market with investments from several multinational manufacturers, especially in countries such as the US and Canada. Stringent government regulations for the trade of textile yarn products pose one of the inhibitors for the textile yarn market. Also, the volatility in production level of plant and animal source yarn hinders the growth of the textile yarn market.
With 47 million spindles and 0.75 million open-end rotors, India has the world’s second largest spinning capacity. Cotton yarn accounts for nearly 73 per cent of total spun yarn production.
"More than trends and new designs, clothes have gotten much cheaper with the rise of ‘fast fashion.’ Today, anyone can chase trends, even on a budget. The ability to buy low-cost clothing is not necessarily a good thing. Here are three reasons why $14 jeans and $25 dresses cost more than one thinks."
The craze for cheap clothes puts a strain on our environment. Moreover, there are several aspects involved in cheap clothes which one may not be aware of. Indeed, the fashion world is changing rapidly. Neon colors, power suits with shoulder pads, and fingerless gloves witnessed in the 80s are forgotten now. The 90s featured Doc Marten boots, butterfly hair clips and babydoll dresses. The early 2000s brought us low-rise pants, blazers, and the first incarnation of the skinny jeans phenomenon.
More than trends and new designs, clothes have gotten much cheaper with the rise of ‘fast fashion.’ Today, anyone can chase trends, even on a budget. The ability to buy low-cost clothing is not necessarily a good thing. Here are three reasons why $14 jeans and $25 dresses cost more than one thinks.
Tragic human aspects
The requirement of incredible manufacturing output made international brands like H&M, Zara, and Gap make arrangements for required stocks. To meet that need, it's much cheaper for clothing retailers to have their garments manufactured overseas. Currently only 2 per cent of clothing for sale in America is made domestically. Manufacturing goods overseas is an exercise of good economics. If factories in Bangladesh or China can make clothes for less than factories in America, it makes sense for companies to use them. However, unsafe and unethical labor practices are major reason for the cheapness of foreign manufacturing.
Even with regular improvements, there has not been sufficient supply chain management to ensure overseas garment workers are not exploited or working in unsafe conditions. The April 2013 Rana Plaza building collapse in Dhaka, which killed over 1,000 people, was partially attributed to the pressure placed on factories housed in the building to complete garment orders on time. Though Rana Plaza had been evacuated the day before the collapse when alarming cracks had appeared in the building, managers ordered factory workers to return to work the next day or lose a month's pay - with tragic results.
Incidentally, the fashion industry came together to improve safety for garment workers in Bangladesh but such an Accord will not do nearly as much as changes in consumer behavior will.
Environmental aspects
Strain on our environment is the other consequence of cheap clothes. Even though cotton and wool are renewable resources, they are finite. Polyester is already the world's dominant clothing textile and that trend can only continue while we treat clothing as disposable. It may seem as though there is an easy way to have fast fashion and ease environmental guilt too - just donate cast offs to charity.
According to a Salvation Army distribution center in New York City, the center processes an average of five tons of garments every day and only chooses 11,200 (pieces) to send out to stores.
Low cost, standard factor
The money made from fast fashion is through rapid turnover. For eg, H&M has new garments coming into the stores almost every day. Once a look premieres on the runway, a fast fashion manufacturer like H&M or Zara can design and produce a knockoff and have it on display in stores worldwide within a few weeks. This situation may be great for fashionista on a budget, but it's tough on the high-end clothing designers and fashion houses.
If high-end manufacturers like Ralph Lauren or Tommy Hilfiger have to speed up their process, generally, there is a six month lag-time between a garment's appearance on the runway and its availability for purchase - it is inevitable that they will have to lower their standards in order to do so.
This affects regular consumers when it becomes impossible to find a dress or slacks that can be hemmed or altered without being destroyed. When all of the ubiquitous clothing choices are disposable, even the high-end ones, then the clothing line in your budget gets bigger, even if individual items are cheap to buy.
Best clothing choices
Clothing is not optional unless you live and work in a remarkably open-minded area. There are several ways to make great clothing choices that don't overload your budget or your conscience. For example, wear what you buy. It is important to invest in high quality clothing because; money spent on high quality clothing can be a better investment. Swapping clothes with friends is another option. A great way to handle issues of changing tastes - is to regularly hold clothing swaps with friends.
Even if your cheap clothing purchases don't hurt your budget in the short term, the long-term costs of fast fashion can be far too expensive. So avoid over spending on cheap clothes.
Japan is signing a free trade agreement with the EU. The EU and Japan are keeping leading roles in the development of advanced technological materials and creating high quality fashion goods. For the EU’s textile and clothing sector, Japan is among the top 10 largest customers. For the Japanese industry, the EU is the second biggest export market. The EU mainly exports clothing and in particular premium products made from wool and silk while it imports fibers and yarns from Japan.
Japanese and European textile and fashion sectors face similar challenges. The free trade agreement will help their companies increase trade and investment potential. A comprehensive trade deal will build platforms for R&D cooperation creating innovation and business opportunities.
Full elimination of tariffs, which will mean duty free access from day one for all textile and clothing products, will be beneficial for industries on both sides. Currently, tariffs are quite similar in both parties; duties can be up to 11 per cent when exporting clothing to Japan.
The trade deal shall result in simplification of burdensome customs procedures. Japan with its progressive technologies is already one of the EU’s most advanced partners. The trade deal will have a positive impact not only on the flow of goods between the countries, but also enhance the spillover effect in innovation.
January cotton crop in India for the 2015-16 season has been estimated at 353 lakh bales, whereas in December, the estimate was 357 lakh bales. Total cotton supply for the 2015-16 season has been estimated at 440.60 lakh bales while domestic consumption is estimated at 315 lakh bales, thus leaving an available surplus of 125.60 lakh bales. The arrival of cotton during the ongoing 2015-16 crop year is estimated to be lower than last year up to the same period.
This is due to the fact that farmers are holding back seed cotton expecting better prices. Arrivals are lower this year also due to the relatively lower crop estimated for the 2015-16 crop year compared to last year. The cotton crop estimate for Punjab is nine lakh bales this year while in Haryana it is 17 lakh bales. Last year, Punjab yielded an estimated 13 lakh bales while Haryana yielded 23.50 lakh bales.
There are four major cotton species of cultivated cotton and India is the only country to grow all four species of cultivated cotton. In addition, hybrid cotton is also cultivated in the central and southern zones. The diploid species contributes 25 to 30 per cent of the country’s production. The tetraploids variety contributes the remaining 70 per cent of the cotton production in India. These varieties have fine quality fiber and are normally used by the textile industry.
Leading global technology research and advisory company Technavio’s latest report on the global textile machinery market provides an analysis on the most important trends expected to impact the market outlook from 2016 - 2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
According to Technavio heavy industry research analysts, the top three emerging trends driving the global textile machinery market are: Automation in textile machinery, growing popularity of spinning machinery in India and overseas demand for Spanish machinery.
According to the report, automation plays a crucial role in improving the quality and cost-competitiveness of textiles. Automated textile machinery accelerates textile production and increases the flow rate of fabric, enabling lean manufacturing.
Technavio expects spinning capacity in India to develop, as the country has high cotton export demand. More than 10 -15 per cent capacity will likely be added in the next year. This creates a positive scenario for the domestic spinning machinery manufacturing industry.
The report says that the Spanish textile machinery manufacturers are gradually making a mark in the global market as they develop the latest technologies in areas such as braiding, technical fabric, spinning, finishing, dyeing, and printing. These manufacturers also manufacture customized machines and are also exporting over 80 per cent of their production.
To enhance competitiveness in production of readymade garments, the government of India is preparing to develop a Garment Processing Zone (GPZ) within Simara Special Economic Zone (SEZ), in Bara district.
The concept of the GPZ came into light after the United States extended zero tariff preference for 66 products, including apparels, into its market through ‘Trade Facilitation and Trade Enforcement Act’ to Nepal. The world’s largest economy is all set to provide preference for Nepali products through a separate act to support the country’s aspiration to graduate to the league of developing nations by 2022 through sustainable and robust economic growth.
Through the act, the United States which is expected to come into effect after a month, has declared it would provide duty-free access to 66 Nepali products and support the country in trade capacity enhancement. Nepali apparel entrepreneurs are excited with the recent development because the United States was a major export market for Nepali apparels until Multi Fiber Agreement (MFA) was phased out on January 1, 2005. The country had exported readymade garments worth Rs 12.5 billion in fiscal 2001-02. Garment industry, which is on the verge of collapse after MFA was phased out, is expected to revive once again.
GPZ in Simara SEZ will be completed within three years as per SEZ Development Committee, which will house 69 blocks for garment industries and will be equipped with all required facilities - power, road connectivity, water supply and sanitation, among others.
Vietnam has invited Indian investment in its apparel production. Since Vietnam joined the Trans-Pacific-Partnership agreement, Indian apparel firms that invest and run their production in Vietnam can enter leading markets such as the US, the EU, Japan and Canada with a zero tariff.
Vietnam has highlighted favorable conditions for investment such as a convenient infrastructure, competitive labor costs, central and local incentives to stimulate investment on land leasing, and tariffs. In addition the country has committed to reforms and projects the social environment in the country as friendly.
To bolster bilateral cooperation in the sector, India has offered a $300 million preferential credit for its business projects in apparel in Vietnam within a decade. However, while an opportunity has come to shift investments to Vietnam, not just for garment but even for textile companies, Vietnam doesn’t grow cotton and needs textile items for making garments. Not many Indian firms will be able to seize the moment.
To set up a decent-sized textile or garment unit in Vietnam, and gain from the duty advantage, a company needs to invest at least Rs 1,000 crores. In an atmosphere of a global slowdown, a massive liquidity crunch and stressed balance sheets, it’s not possible for many Indian companies to move out immediately and invest.
Indorama Ventures (IVL), Thailand and India’s Dhunseri Petrochem (Dhunseri) have agreed to enter into a 50:50 joint venture (JV) to manufacture and sell polyester (PET) resins for Indian domestic markets and for exports. Dhunseri will purchase a 50-per cent stake in the 216,000 ton Micro Polypet (MicroPet), a company owned by Indorama Ventures in, Haryana. IVL in turn will acquire a 50-per cent stake in a carved out entity, called Haldia, of Dhunseri, with an effective capacity of 480,000 tonnes PET manufacturing located in West Bengal. The JV is subject to regulatory approvals and expected to complete in H2 2016.
In India, PET usage per head is just 0.6 kg per annum compared to 2.6 kg per annum in China and 10.9 kg per annum in the United States. This JV is a win-win situation for both the producers with 700,000 ton per annum of combined capacity in the strongest growth market having a population in excess of a billion people, as well as having favorable trade agreements with logistically advantaged countries in the region. The JV will gain significant synergy benefits being the sole producer of PET resin in North and East India and with both sites being effectively integrated with third party PTA suppliers, which will bring savings in SG&A and procurement. IVL’s global market reach and high utilisation rates are expected to supplement Haldia’s location benefit at Eastern India’s largest port while micropet enjoys a strong location advantage in the high-demand territory of North India.
Bangladesh’s Ready Made Garments (RMG) sector, the biggest earner of foreign currency for the country after the agricultural sector, may face an uncertainty in its exports to the US as a result of the signing of a bill opposing import of goods produced by forced labour by US President Barack Obama. The US government lists garment products from Bangladesh among goods that are produced by child or forced labour, although there was no official remark on whether Bangladeshi goods would be affected by the restrictions. According to the new law, shipments derived from slavery will be kept out of the country that closes a legal loophole that allowed import of such goods if US demand exceeded domestic production.
Senior commerce secretary Hedayetullah Al Mamoon said that there was no scope to include Bangladesh in the provision of forced labour or workers’ abuse, as ‘forced labour is completely banned by the constitution and there is no such abuse of women in the country.’ He added that an official statement would be made after a US statement reaches the Bangladeshi government and discussions are held with authorities concerned following a review.
Meanwhile, BGMEA President Siddiqur Rahman said that there was no slavery, child labour, forced labour or abuse of RMG women workers in Bangladesh. He claimed that such allegations of forced labour were totally absent in other industrial sectors too.
