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Faced with the loss of their traditional export markets because of political and security problems in their neighborhood, Turkish textile companies are looking to penetrate new markets to sustain their export growth. Turkey is surrounded by a violent neighborhood: a war-ravaged Syria, an unstable Iraq and sanctions-plagued Russia. One advantage Turkey had over China is its proximity to Europe -- knowing and understanding Europe's needs. But now Turkish exporters are forced to look for markets beyond their borders in Southeast Asia.
Garment makers are looking at Malaysia, Japan, the ASEAN region and Canada. Malaysia is seen as an especially attractive market because of its stability unlike China which is passing through turbulent economic times. Turkish companies expect Malaysia, along with Singapore and Indonesia, to grow in the future. They want to actively increase their contacts with the Malaysian textile sector.
Turkey is Europe's largest textile manufacturer and the fourth largest clothing manufacturer in the world. Many major textile brands such as Esprit, H&M, Hugo Boss, s.Oliver, Adidas, Nike and Zara source their clothing from Turkey. Turkey's total global textile exports in 2015 amounted to $14 billion, of which home textiles accounted for three billion dollars. Turkey's home-textile exports in 2014 amounted to $3.3 billion.
Dadabhau Bhuse, Maharashtra minister of state for co-operation urged the local weavers and entrepreneurs to create own brand so as to earn identity and reputation in the competitive market. The minister was inaugurating a Buyer-Seller meet in Malegaon, Maharashtra recently.
Bhuse highlighted the potential of grey and ready-to-wear fabrics manufactured in Malegaon to attract the global market. There fabrics and saris being sold in local and international markets are manufactured by people of Malegaon. But, since powerloom weavers in Malegaon do not have a brand name, the sellers are using their own name and selling these quality products and earning handsome profits, Bhuse observed.
He pointed out the skill and potential of local weavers and powerloom owners will be a great hit. Taking a cue from ‘Make in India’, ‘Make in Maharashtra’ campaigns, Bhuse said that they need to start ‘Make in Malegoan’ campaign. The minister further said that he earnestly wishes that local grey cloth and ready-to-wear sarees and fabrics are exported directly from Malegaon with their own brand names.
The three-day Buyer-Seller Meet was jointly organized by the Regional Textile Commissioner Office Navi Mumbai and Powerloom Development and Export Promotion Council (PDEXCIL).
In a move to support a full-fledged garment industry by harnessing technology and improving its citizens’ skill Rwandan government is up to set up tailoring institute. Rwanda government is planning to set up a tailoring institute to harness technology and improve skills of its garment industry.
As Francois Kanimba, Minister of Trade and Industry points out the institute will help transfer technology with regards clothes made in Rwanda and clothes that Rwandans are willing to put on. The idea is to reduce dependency on imported clothes, both new and second hand. While extending help, the Minister asked tailors in which specific areas they needed training, saying that the government is working with the Workforce Development Agency (WDA) to train over 300 Rwandans. He said the government is ready to support tailors in their efforts to start up a clothes making factory.
He said cutting down second hand clothes is in line with the government’s decision as well as East African Community countries to ensure health, self-dignity as well as reduce unemployment among local youth. The project is being undertaken along with the Association of Professional Tailors’ Rwanda.
The clothes making factory is scheduled to be established in Kigali with hope to go to other provinces of the country, hence create five clothing factories across the country. Rwanda government is currently in talks with investors that may wish to invest in the project. The investors will most probably come from China which ranks first worldwide as the top garment maker. The initial investment would include the buying 670 machines to produce different types of garments.
Rwanda has two textile companies in Kigali, including the Chinese-run C&H Garments whose products are exported. C&H Garments has invested in computerized sewing machines and will train up to 400 local workers.
During 2015, the value of imported wear products (shoes and clothes) into the country was $100 million of which $80 million (approximately Rwf60 billion) was spent on clothes (both new and second hand). Over $15 million dollars was spent on second hand clothes. A recent study carried out by the Ministry of Trade and Industry revealed that tailoring offers the best opportunity for increasing more locally made products. This initiative is aimed at Rwanda’s economic development but most specifically to create jobs for Rwandans. Success of the project will spell a drastic cut in the imports of clothes from countries like Kenya, China, and Dubai among others. Rwandan government’s target is to create over 200,000 off-farm jobs year on year.
One of the biggest spinning mills in Bangladesh, Delta Spinners is setting up a new plant for export market to increase its aggregate production to nearly 15,000 tonnes per year, an increase of around 67 per cent. Adjacent to the existing mills, the Tk 540 million new unit is being constructed on an area of 117,000 sq. ft. Expected to start operations in mid 2016, the new plant will be equipped with state-of-the-art machines with nearly 27,000 spindles.
The company is expanding its operations to cope with growing demand for both high-end and traditional yarns. Mostafa Jamal Haider, Managing Director, Delta Spinners said the company's profitability and other indexes will increase sharply when the export project starts operations.
Meanwhile Delta has opened letter of credit for procuring equipment and some of it will arrive in Chittagong Port by April 2016. Machines are being procured from the world's best manufacturers from Switzerland, Japan, Spain and Taiwan to get optimum output. The aim is to install the latest machines to produce both conventional and non-conventional yarns.
Demand for non-conventional yarns is rising in Bangladesh, which usually have high-value addition than traditional ones. Bangladesh mainly exports basic clothing but it is now gradually leaping up to another upper segment of clothing market. Demand for jersey, sportswear, suits and other luxury clothing is on the rise in recent years and for this reason, demand for high-end yarns is also growing. As per industry estimates indicate the internal rate of return or IRR might increase by 20 per cent after implementation of the project. The company's EPS (earnings per share) is expected to increase from the existing Tk 0.58 to Tk 2.0 according to sources.
Delta Spinners started its journey with financial support from erstwhile Shilpa Bank. The mill was established in early 1994 at Kaltapara in Gouripur of Mymensingh, about 140 kilometres from Dhaka. It was listed with the bourses in 1995.
Pakistan’s textile industry is hit by the government’s taxing structure and surcharge policy, making the industry environment uncompetitive for Pakistani textile manufacturers and traders.
A recent study by All Pakistan Textile Mills Association (APTMA) revealed the 5 per cent tax and surcharge are two major reasons for the industry being uncompetitive . On the other hand, the Indian counterparts enjoy a tax-holiday on textile products export and taxes in Bangladesh and China are close to one per cent only.
Quoting the World Trade Organisation, the study observed that from 2006 to 2014 the textile and apparel industry in Pakistan registered only 18 per cent growth while Bangladesh, China and India registered 175 per cent, 107 per cent and 96 per cent respectively in the same period. Energy tariff, under-utilization of power generation capacity and shortage of energy are cited as the other irritants for the growth of the industry in the study. Pakistan’s textile export rose to $13.8 billion in 2010-11 and maintained its momentum till 2013-14 but, it declined to $13.5 billion in 2014-15.
Meanwhile, the textiles ministry of Pakistan aims to double value-addition to $2 billion, which will enhance the annual exports to $26 during the next five years. In order to create eight million value chains the APTMA is targetting $20 billion worth of textile exports by 2018. To achieve this, the organization sought immediate withdrawal of surcharges on gas and electricity along with the reduction of corporate tax rate to 25 per cent and turnover tax to 0.5 per cent.
Bangladesh’s apparel exports to the US may be affected by Walmart’s decision to trim its store count. The US imports readymade garments worth $5 billion annually from Bangladesh and Walmart alone accounts for 20 per cent of this. Bangladesh exported 1,720 million sq. mt. of clothes worth in the January-November period of last calendar year to the US.
Meanwhile Walmart has decided to close down 269 stores in the US and across the globe under its cost-cutting move. A review of the company’s portfolio is underway to ensure assets are aligned with strategy.
Walmart has some 11,600 worldwide stores and their financial performance is being assessed. It says it’s actively managing its portfolio of assets to maintain healthy business. On the other hand, the company is committed to growing. It says it will open more than 300 stores around the world next year.
Though the impact of Walmart's cost-cutting measure would not be felt immediately, Bangladesh garment makers feel prices for their products might decline further. Walmart may not minimise orders from Bangladesh immediately but the annual growth might remain static for Bangladesh’s products.
Walmart has 200 factories in Bangladesh. It is a founding member of the Alliance for Bangladesh Worker Safety comprising 26 North American retailers and suppliers.
www.walmart.com/
The readymade garment sector in Bangladesh will explore newer markets across the world to give a boost to the country's exports. Garment villages are being set up. Private banks have been asked to provide loans at a relatively lower rate of interest. However, one problem the sector is facing right is that imported raw materials are held up at customs. The delay in delivery of deliver of raw materials through air cargo is disrupting the supply chain of the export oriented sector. Garment manufacturers and exporters want import consignments to be released as soon as possible.
Manufacturers say clearing agents are being denied entry into airports for reasons of security. Apparel exporters in Bangladesh have to import many accessories including price and security tags selected by buyers and raw materials such as fabrics and product samples for completing export orders. But now exporters are facing difficulties in getting their required imported consignments. In some cases, it takes more than two weeks compared to a single day needed previously.
Foreign-owned garment factories in Bangladesh can import raw materials without paying duties if they follow the country’s wage structure, only export goods to countries where the investment is made, and remain outside the export processing zones.
"Global uncertainty, slowing demand, currency fluctuations are some of the factors pushing industries to think of ways to remain competitive. The focus of the Première Vision New York and Milano Unica New York will be on the growing demand for the Made in USA. According to Guglielmo Olearo, International Exhibits Director at Première Vision, while American brands are sourcing more from Europe because of the price benefit, consumer demand is not quite upbeat. The year 2016, he feels, will be a year of uncertainty with rising geopolitical tensions like Cold War between Turkey and Russia."
Days when trade fairs were only organised for exhibitors and visitors to showcase and understand forthcoming fashion, fabric trends are passé. Today, with numerous issues like economic slowdown, shifting production and trade dynamics and awareness about creating sustainable supply chain confronting the industry, fair organisers are roping in stalwarts during the fair days to deliberate on these topics.
In fact, the trade fairs being organised this month in New York, like Première Vision, Texworld USA and Milano Unica, for instance, will witness industry experts discuss topics such as future of emerging global production trends, low demand, raw material scenario as well as new product development, among others.
Premiere Vision, Milano Unica to focus on issues
Global uncertainty, slowing demand, currency fluctuations are some of the factors pushing industries to think of ways to remain competitive. The focus of the Première Vision New York and Milano Unica New York will be on the growing demand for the Made in USA.
According to Guglielmo Olearo, International Exhibits Director at Première Vision, while American brands are sourcing more from Europe because of the price benefit, consumer demand is not quite upbeat. The year 2016, he feels, will be a year of uncertainty with rising geopolitical tensions like Cold War between Turkey and Russia.
For Ercole Botto Poala, President of Milano Unica, the US is emerging as a potential and strong market for the Italian companies because of the quality and price these players are able to offer. While Milano Unica will be held at the Jacob Javits Convention Center’s River Pavilion from January 24 to 26, 2016, Premiere Vision will host the show on January 19 and 20, 2016. And Texworld USA, with a focus on new fibre innovations and sustainability returns to the Javits Center from January 24 to 26, 2016 featuring 331 exhibitors representing 15 countries.
Seminars, workshops highlight at events
With 353 exhibitors compared to 296 last January, Premiere Vision will also have a dedicated ‘Made in New York’ area supported by the city of New York and the Council of Fashion Designers of America focusing on local manufacturing and industry. Bob Bland, CEO of Manufacture New York, will discuss “Urban Manufacturing for the 21st Century: Global Problems, Local Solutions” at the show.
Texworld will have exhibitors from the US, China, Peru, Portugal, the U.K., Colombia, Pakistan, South Korea, Japan and India along with dedicated country pavilions from Taiwan and Turkey. With several US yarn and fabric companies present at the fair, the fair will also have a panel discussion as part of the Lenzing Seminar Series on ‘Made in NYC’ in which Bland will join Erin Kent, programs manager at the CFDA, and Tina Schenk, owner and founder of Werkstatt to discuss resources that can assist companies make their lines in the city.
Sustainability will be another focus area at two of the Texworld talks. At ‘Designed with Sustainability in Mind’, Issac Nichelson, Chief Sustainability Marketing Officer at Recover Tex; Jerker Ligthart, Senior Chemical Engineer at Chemsec, and Lewis Perkins, Interim President at Cradle to Cradle, will discuss how to integrate sustainability into a collection, from conception to finished garment to a second life.
In ‘Latest on Standards and Sustainability’, Sandra Marquardt, North America representative for the Global Organic Textile Standard; Lenzing’s Carey, and Nikki Hodgson, corporate responsibility coordinator for the Outdoor Industry Association, will talk on how to select materials that have a preferred environmental status and can be sourced responsibly and certified to a standard.
Texworld USA seminar series will take a comprehensive look at several areas of importance to the textile, apparel and sourcing industries. Key topics include: social media strategies and tips, sustainability and design, fibre innovation, the future of trade and TPP, Spring 2017 colour trends, and more.
www.texworld.messefrankfurt.com
The Technology Upgradation Fund Scheme has been amended. Now, it will provide a one-time capital subsidy for investments in employment- and technology-intensive segments of the textile sector. The move is aimed at promoting exports and import substitution. The scheme will be credit linked and only projects for technology upgradation covered by a prescribed limit of term loans sanctioned by the lending agencies will be eligible for grant of benefits. It will be effective for a period of seven years, up to March 31, 2022. In case the applicant has availed of subsidy earlier, he will be eligible for only the balance amount within the overall ceiling fixed for an individual entity. The maximum subsidy for overall investment by an individual entity will be restricted to Rs 30 crores.
Every individual entity will be eligible for a one-time capital subsidy on the eligible investment, as per the specified rates and the overall subsidy cap. During 2010-11, the scheme was suspended for 10 months, but was eventually restored as a close-ended scheme and restricted to future sanctions and committed liabilities reported by banks. However, the close-ended scheme was introduced without sufficient notice for preparation on the part of lending institutions. So those who had invested during those 10 months in the so-called blackout period of 2010-11 were left out and are still awaiting a decision on their eligibility. The quantum of liabilities under the blackout and left-out period is pegged at around Rs 3000 crores.
www.idbi.com/tufs-textile-jute-industries.asp
A textile and garment machinery exhibition will be held in Bangladesh from January 28 to 31. More than 1,000 world class leading brands from 32 countries and regions will be present. The participating brands are from: Austria, Bangladesh, China, Denmark, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Singapore, Spain, Taiwan, Thailand, Turkey, UK, US, and Vietnam. They will exhibit machinery covering processes in the textile and garment industry supply chain, including spinning, weaving, knitting, dyeing, printing, finishing, testing, washing, embroidery, sewing and other related equipment.
Well-known brands such as Mayer & Cie, Santoni, Shima Seiki, Stoll, Terrot, Picanol, Karl Mayer, LMW, Rieter, Saurer, Tajima and Toyota will take part.
Bangladesh will also host a plastic, packaging, and printing industrial fair from January 20 to 23. This year, 260 exhibitors from 11 countries including Austria, Bangladesh, China, Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, Taiwan, and Thailand will participate. More than 11,200 professional buyers are expected to visit the show.
Renowned corporations like Starlinger, Cheso Machinery, Haitian Plastics Machinery, KungHsing Plastic Machinery, and Venus Plastic will take part.
Bangladesh is planning to build an industrial zone on a 100 acre area for plastic goods manufacturers. The project is expected to be completed by 2018. It may have some 360 industrial units.
