FW
Africa is looking increasingly attractive to US clothing manufacturers. Though Bangladesh and China remain top sourcing destinations for clothing production, China is facing wage pressures and rising production costs and Bangladeshi garment factories are facing safety issues.
American clothing giant Phillips-Van Heusen Corporation, which owns the Tommy Hilfiger and Calvin Klein brands, sources five to six per cent of its global production from Africa. Over the next five years it hopes to make that 25 per cent. However, buyers need to evaluate the region as a true strategic option rather than just a testing ground.
East Africa in particular is a clothing production destination, thanks in part to strong public-private partnerships. Labor is abundant and well educated in Ethiopia, the second most populous African country. Ethiopia has cost advantages: low wages, relatively cheap work permit visas for foreigners, and low electricity prices boosted by investment in renewable energy.
H&M started sourcing from Ethiopian garment producers in 2013. Since labor is cheap in Africa compared to ever increasing wages in Asia, more companies will be looking to move operations to Africa. Ethiopia and Kenya benefit from duty free access to the US market under the African Growth and Opportunity Act. Both could compete globally in apparel manufacturing.
"The World Fashion Convention kicked off in Mumbai today. The two day convention being held on September 27 and 28, 2016 is being hosted by the International Apparel Federation (IAF) and the Clothing Manufacturers Association of India (CMAI). In his opening speech Rahul Mehta President IAF & CMAI spoke about how IAF has been working and supporting various countries. Siting Bangladesh highlighted how IAF played a pivotal role to in uplifting the apparel industry. He said “IAF- provides very active n dynamic support to its members."
The World Fashion Convention kicked off in Mumbai today. The two day convention being held on September 27 and 28, 2016 is being hosted by the International Apparel Federation (IAF) and the Clothing Manufacturers Association of India (CMAI). In his opening speech Rahul Mehta President IAF & CMAI spoke about how IAF has been working and supporting various countries. Siting Bangladesh highlighted how IAF played a pivotal role to in uplifting the apparel industry. He said “IAF- provides very active n dynamic support to its members.” Mehta said, one of the main goals of every IAF convention is to connect in a profound way the local fashion industry of the host country to the global fashion industry. “India stands out for the size of its domestic market, for its enviable growth rate, for its deep rooted own design tradition, but also for its enormous complexity. In a sense it is also a strong metaphor for emerging economies in the world in general."
The event kicked off with 300 leading delegates both from India and across the world. The two day convention has leading industry stakeholders across the value chain deliberating and presenting insights on various opportunities covering the entire spectrum from manufacturing to technology to branding and retailing.
A packed line up of informative sessions
The two day convention is packed with insightful and informative sessions. The first session ‘New opportunities in Sourcing’ focuses on emergence of Bangladesh, India and a few African nations as major sourcing destinations for apparel brands and manufacturers worldwide in the last decade, with China facing issues of a sharp rise in wages in. Moreover, improved business climate in countries like India has worked in favour, making it a preferred sourcing destination. The session highlights emerging opportunities in these 'new' sourcing destinations and prospects of forging partnerships with local players. It focused on how 'traditional' manufacturing economies are retaining their position in global apparel production chain. The session will include brief presentations and a panel discussion by experts who will share facts and give insights in the global context. The presenters include Prashant Agarwal Jt. Managing Director Wazir Advisors, Alex Thomas, Vice President, VF Corporation, Ms. Belinda Edmonds, Executive Director African Cotton & Textiles Industries Federation (ACTIF), speaking for Africa, Faruque Hassan, Senior Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), speaking for Bangladesh, Ashok Rajani, Chairman, Apparel Export Promotion Council (AEPC), speaking for India, Alexander Shumsky, Executive President, Russian Fashion Council, speaking for Russia among others.
Session 2 focuses on new opportunities in retailing. With growing strength of retail market in emerging nations; Global retailers face the puzzle of combining the specific demands of Indian consumers with their standardized retail structure and operational processes. The session focuses on emerging trends and opportunities in retail sector at the global level and how would these trends translate to the Indian market. How retailers are trying to create a seamless shopping experience while addressing the channel conflict. The session also seeks to answer questions and offer insights into future of fashion retailing. Among the top speakers in this session is B S Nagesh, Founder, TRRAIN and the panellist include Aniruddha Deshmukh, MD& CEO, Mafatlal, Govind Shrikhande, MD, Shoppers Stop, Rakesh Biyani, Director, Future Group, Vinay Nadkarni, MD & CEO, Globus, Manish Mandhana, MD, Being Human & Mandhana Ind.
Session 3 focuses on ‘New opportunities in Technology’. The focus here is on the growing importance of technology in efficient garment processing, use of IT tools in business and business process re-engineering are new driving forces for growth of textile and apparel industry. The idea of the session is to learn from the experts about various technologies, processes and methods that will help in achieving the above mentioned goals. With Mike Fralix, President & CEO, [TC] 2 as the moderator, the session has an impressive lineup of speakers including Mark Jarvis CEO, WTiN, Philippe Ribera, Innovation Director, Lectra, Simon Fernandes, Regional Director, Alvanon, Ms. Vonita Samtani, Vice President (Strategic Channel Partners), WGSN among others.
Session 4 focuses on ‘New Opportunities in Denim’ the session will look to help denim players build on the potential opportunities existing across denim value chain. With Deval Shah, Business Head – Diesel & GAS, Reliance Brands, Harminder Sahni MD, Wazir Advisors as moderator the penalists include Claudio Grotto, Founder, GAS Jeans, Anurag Asthana VP (Sourcing) Myntra, Subir Mukherjee, Business Head (Denim), Bhaskar Industries, Sanjay Vakharia, Director & COO, Spykar Lifestyle among other top names. Session 4 focuses on brand and new opportunities there with. It delves on how should brands look at branding to stay relevant and connected to their core consumers? How are brand strategies evolving in this dynamic world? This session seeks to answer some of these questions and offer insights into new opportunities in branding in global context. The keynote presenter is Bruce Atherley, Executive Director, CCI with moderator Darlie Koshy, DG & CEO, IAM & ATDC and the panellist include Ashish Dixit, President, Madura Garments, Gaurav Mahajan, President (Apparel), Raymond, Ms. Manjula Tiwari, CEO, Future Style Lab, J Suresh, CEO & MD, Arvind Brands among others.
Global Organic Textile Standard (GOTS) is gearing up to organise a national seminar for the organic textile industry in Bangladesh on November 23 in Dhaka. The theme of the conference is: ‘Business Case for Sustainability with Organic Textiles.’ The event will be attended by representatives of brands, senior management of manufacturers and exporters. Professionals from the fields of compliance, regulation, quality assurance, green chemistry and chemical management and technical experts along with media and trade associations would also attend the seminar. Attendees will benefit from the conference by gathering new knowledge and insights in the fields of holistic environmentally and socially responsible textile processing and gain a better understanding of related problems and possible solutions.
Speakers from leading brands and various experts shall talk about Business Case for Sustainability with Organic Textiles, best practices in manufacturing, social and environment issues. There shall also be a panel discussion on challenges and opportunities in a sustainable textile supply chain.
It may be recalled that in 2015, GOTS had organized the 1st International GOTS Conference in India. The theme there was ‘Strong Partnerships for Success’.
After the implementation of Trans-Pacific Partnership (TPP), the Vietnam Textile and Garment Association (VITAS) and Mexico’s National Chamber of Textile Industry (Canaintex) expects the value of Vietnamese exports to Mexico to double in 3 to 4 years as tariff on Vietnamese goods exported to Mexico would fall to zero from the current 30 per cent.
Representatives of Canaintex said that with TPP agreement coming into effect, Vietnam’s garment and textile exports will rise sharply and its market share in TPP member countries would increase substantially due to preferential tax policies. According to VITAS, Vietnam has targeted to increase its garment and textile exports from $28 billion at present to USD 50 billion by 2020. Of the $28 billion, nearly $11 billion worth of garments were exported to the US, another TPP member country, last year.
A delegation from Canintex recently visited Vietnam to lay foundation for bilateral garment co-operation between the two countries. During their one week stay in Vietnam, the team visited several factories and a garment and textile industrial park.
Major Western retailers like Walmart, Nike, Adidas, Levi Strauss, H&M and Gap Inc among others that source clothing from Cambodia have declined to endorse a proposed hike in the garment industry’s minimum wage that amounts to roughly $40 a month.
Like many of its neighbours in the Southeast Asia, Cambodia is a popular spot for American and European brands to sub-contract production of textiles and shoes. It offers easy market access and above all, cheap labour. Against this backdrop, exports of garment and footwear have more than doubled in the last decade. But the industry is not without conflict. In recent years, its overwhelmingly female workforce has led mass strikes and protests to demand higher wages and several workers were killed in a police crackdown in January 2014.
This month, labour unions representing hundreds of thousands of garment workers proposed a hike in the industry-wide minimum wage from $140 a month to $179.60. They’ve been met with stiff opposition from factory owners’ lobby, the Garment Manufacturers Association in Cambodia, which countered with its own monthly minimum wage offer of $144.20. Many Western brands, too, have declined to endorse the unions’ proposal.
In These Times reached out to six of the top U.S. and European brands with contracts in Cambodia—Walmart, Nike, Adidas, Levi Strauss & Co., H&M and Gap Inc.—asking for their position on the unions’ proposed minimum wage hike. None of them endorsed the proposal. Walmart and Nike did not respond; Adidas, Levi’s, H&M and Gap all highlighted their support of ongoing negotiations.
To support capital projects, skills training and research and development, the UK government has launched a £97 million worth Textiles Growth Program. The program focuses on Greater Manchester, Lancashire and West Yorkshire where the country’s textile and clothing sector and home ware manufacturing is concentrated. The program is aimed at businesses within the textiles sector and covers manufacturers from carpets to clothing, as well as industry suppliers, such as textile machinery manufacturers and designers.
As part of the program, a combination of capital and revenue grants would be available for projects related to new or improved premises, plant, machinery, equipment, energy efficiency, workforce training, research and development. One of the companies to benefit from the program so far is Grafea, which makes a range of high-end leather bags, rucksacks and satchels for luxury markets in Italy, China, Russia and America from their site in Dukinfield in Tameside, Manchester. As the popularity of their products grew, directors Yanni and Charis Kioupouroglou, recognised the need for a significant expansion programme, including the purchase of new equipment so they could increase production capacity and cater for the growing demand.
The duo decided to apply for support through the Textiles Growth Program. They have, till now, worked with a number of growth hub services including UKTI that has helped the company expand into new premises and grow their presence overseas.
Aiming to tide over any supply shortfall, particularly at the end of the season, members of the Indian cotton fraternity plan to visit Colombo to meet port officials in that island country. The delegation would comprise of 4 to 5 members. Most likely they would travel in the first week of October. They are now awaiting confirmation from Colombo Port officials. ICF International sources perceive that textile manufacturers in Tamil Nadu would benefit if the proposal comes through.
Earlier, in his presidential address, J Thulasidharan, President, ICF had said the area under cotton in 2016-17 has been estimated to be lower by 10 per cent compared to the current year. He further said that China's fibre policy and release of old stock might tilt the global cotton demand and supply equation. Further, cotton supply could be tight due to the overall shortfall in acreage. It is therefore necessary to guide farmers on practicing Precision Cotton Farming.
The recently concluded Premiere Vision Paris held from September 13 to 15 saw a dip in number of visitors compared to the September 2015 edition. This is a trade show aimed at the leather, textile, yarn and accessories sectors.
The event welcomed a total of 56,475 visitors and 1,898 exhibiting companies in September 2016, an improvement over the February 2016 edition, but a slight reduction in exhibitor participation and visitor attendance compared with the same edition the previous year. Reasons for the drop include a market threatened by political tensions, security threats, weaker growth in countries like China as well as a downturn in global textile and clothing consumption.
As for the visitor profile, 73 per cent visitors came from 126 different countries. The UK was at the top of the four European visitor countries, followed by Spain, Italy and France. Germany showed a slight in decline in visitors compared with September 2015 but a steady attendance compared with February 2016. However, a higher number of US visitors registered in this edition compared to September 2015, and the US remains the seventh largest visitor country followed by Turkey, which registered a drop in attendance. A drop in number of Japanese visitors was also seen.
The textile and garment sector in Vietnam attained an annual export revenue growth of 15 per cent between 2010-2015 period. The sector is projected to grow strongly in the next decade owing to bilateral and multilateral trade agreements the country has signed, especially the Trans-Pacific Partnership. The industry’s shipments was worth $27.5 billion last year and is expected to touch $31 billion this year.
Large scale industrial parks, better traffic infrastructure, effective management of waste water treatment and environmental issues, and stable policies for taxes, fees and wages, and streamlined customs procedures are important factors for sustainable development of the industry. The industry needs large-scale industrial parks for domestic and foreign-invested producers of fiber and cloth and dyeing enterprises. Enterprises want loan interest support to invest in integrated wastewater treatment facilities.
Improved waterways and road connectivity between large-scale parks for apparel firms and ports and logistics centers will help enterprises in the sector lower costs. Since apparel importers are shifting orders to markets with abundant low-cost labor, the industry wants to adjust the master zoning plan for textile and garment industry development until 2020 with a vision toward 2030.
The country’s deeper international integration will enable the industry to bank on opportunities.
Fashion World Tokyo 2016 will take place from November 7 to 9, 2016. The exhibition has seven specialised fairs: textiles, fashion wear, bags, shoes, fashion jewelry, men's fashion and OEM. The number of exhibitors have increased by 190 to touch 860 compared to last year, and it will attract 28,000 buyers from all over the world.
Besides Japan, companies from 16 other countries including Italy, the US and India will join this edition of the fair. This is the second edition of the fair and exhibitors include textile manufacturers of cotton, silk and synthetic fiber, leather manufacturers and fashion material manufacturers of buttons and zippers.
A new production technology zone will also be launched in this edition, which will make the fair more satisfying for fashion manufacturers. It will feature sewing machines, a user-friendly CAD system, X-ray inspection units for quality control and various kinds of printers.
Additionally, the show will gather exhibitors carrying new and unique materials. A special textile with a ceramic ion material improves blood circulation, recovers muscle fatigue and eliminates active oxygen. A material knitted with paper has a smooth touch to the skin. Another textile aims for an activated carbon effect by using a thread spun out of carbonized cotton.
