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Aimed at building a transparent and ethical apparel supply chain in the Americas, Nike Inc has entered into a new strategic partnership with private equity firm Apollo Global Management, LLC. Through the partnership, the company aims to increase its regional manufacturing capabilities, enable quicker delivery of more customized product to consumers and drive investment in sustainability. To establish the partnership, Apollo has established a new apparel supply chain company that has been acquiring existing apparel suppliers in North and Central America. It plans to invest in advancing their manufacturing operations and expertise to produce innovative, technical and customized apparel.
To broaden and diversify its capabilities and product offerings, the new company also expects to acquire additional textile and apparel suppliers in the Americas. This will create a more vertically integrated apparel eco-system from materials suppliers and apparel manufacturers to final embellishment, warehousing and logistics.
While the terms of agreements have not been disclosed, Apollo said that the new supply chain company has already acquired two businesses to form the cornerstone of this strategy: the apparel manufacturer, New Holland; and the embellishment, warehousing and logistics operator, ArtFX. The investment is made by the Apollo-managed Special Situations I fund.
This isn’t Nike’s first move to create ‘the supply chain of the future’. Last May, the sportswear giant unveiled the latest expansion of its European Logistics Campus in Belgium. The expansion will make Nike’s European operations more efficient, responsive and sustainable and would enable its growth by serving consumers across Nike.com, as well as its retail and wholesale partners in 38 countries, all from a single inventory location.
Monsanto’s decision to withdraw its application for Bollgard II Roundup Ready Flex technology is posing a big challenge to the government’s policy on licensing seeds technology. The move is significant as it comes at a time when the government is in the middle of a consultation on whether to limit royalty rates of seed-tech companies at 10 per cent of the seed price for the first five years followed by a 10% reduction in each of the following years.
Since this order, by way of a gazette notification, came just before Prime Minister Narendra Modi’s visit to the US, media attention forced the government to pass it off as a discussion paper. Last year, the government came out with a seeds price order which not only resulted in the price of the GM seeds being cut sharply, the cut was far sharper for trait values, or the royalty that firms like Monsanto charge for giving their technology to seed-producing firms.
While the Bollgard II seeds price was cut from Rs 930 per bag of 450 grams of seed and 120 gram of refugia seed to Rs 800, the trait fee was cut from Rs 163 to Rs 42. While the seed company took a hit of Rs 121 per bag, other seed companies took a hit of just Rs 9 per bag.
Earlier this year, the Ministry of Agriculture made a complaint to the Competition Commission of India (CCI) and asked it to probe allegations of anti-competitive practices by Monsanto. This was based on the complaints of seed companies who were selling Monsanto’s seeds under license.
India has agreed to cut off tariffs on an equal number of products for all member countries of the proposed Regional Comprehensive Economic Partnership (RCEP) on the condition that it be allowed to stagger implementation of the cuts over a longer period of time depending on the country involved and the item/items. New Delhi has also insisted that services be part of a single undertaking, together with goods and investments and not a separate agreement. RCEP countries, including the 10-member ASEAN, South Korea, Japan, China, India, Australia and New Zealand, are trying to create one of the largest free-trade bloc in the world and want to conclude the negotiations by next year.
Commerce and industry minister Nirmala Sitharaman has said that the three-tiered approach was given up in favour of a single-tier tariff cut at the RCEP as it was reasoned that in a bloc, it could lead to complications. On its part, India insisted that agreement on services should be part of the single undertaking and that tariff cuts should be staggered and time period for each country would be different.
This is a step back from India’s original position of giving China, the country Indian industry is most apprehensive about in the 16-member bloc, the lowest opening (on about 42 per cent items) in the three-tier structure and also its subsequent proposal of not bringing down tariffs to zero. However, if India is allowed a long-term staggering of the tariff cuts for China, it may lower damage to the Indian industry. While RCEP members were working on eliminating tariffs in 10 years, the staggering would logically be done over a longer period, although the details are yet to be culled out.
On the demand of leading textile industry Associations, the Federal Textile Board (FTB) is thinking of exempting the export-oriented textile sector from the provincial/local holidays in Pakistan. In a statement, the Associations said that the FTB was planning to recommend to the provincial governments for exempting the value-added textile industry from holidays in their respective notifications. The Board has further proposed to the export-oriented textile units that they should only observe holidays notified by the Federal government.
Textile industry associations had sought a reduction in the number of public holidays to bring down the cost of doing business for the export-oriented production units. The demand was raised in a meeting of the FTB held recently in the Ministry of Textile Industry under the chairmanship of Federal Minister for Commerce/Chairman FTB Khurram Dastgir. Representatives of All Pakistan Textile Mills Association (APTMA), Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Pakistan Hosiery Manufacturers Association (PHMA), All Pakistan Textile Processing Mills Association (APTPMA) and Pakistan Textile Exporters Association (PTEA) among others pointed out that they paid all the taxes and banks' mark-up for the period of holidays. Despite that, majority of the factories either remain closed or operate partially after paying double overtime to the workers.
Two separate platforms of western fashion brands and retailers namely Alliance for Bangladesh Workers Safety and , the European Buyers’ Group, Accord on Fire and Building Safety have snapped business relations with four more readymade garment factories in Bangladesh for their failure to comply with the safety standard of the Buyers’ Groups. While the Alliance for Bangladesh Workers Safety has cut business ties with three readymade garment factories, Accord on Fire and Building Safety terminated business relations with one of its suppliers as the factories failed to make required progress in remediation.
Alliance has suspended ties with Hi-Fashion, Fortune Fashion and Knitex Apparels in Chittagong while Accord suspended ties with Fresh Fashion Wear of Gazipur. With the four, the total number of RMG factories with which global buyers cut business relations in different times on workplace safety grounds reached to 130. Of them, the Alliance has cut business ties with 93 factories and the Accord with 37 supliers.
Alliance says, Hi-Fashion and Fortune Fashion failed to provide evidence of remediation; and also have failed to remove lockable gates from the factories. On the other hand, the Knitex Apparels was suspended from the supplier list of the buyers’ group due to closure of the factory, Alliance said. The Accord says the platform terminated business relations with Fresh Fashion Wear due to non-compliance with Occupational Safety and Health complaint mechanism.
With the four, the total number of RMG factories with which global buyers cut business relations in different times on workplace safety grounds reached to 130. Of them, the Alliance has cut business ties with 93 factories while the Accord with 37 supliers.
Special envoy of the African Development Bank (AfDB) on Gender, Geraldine Fraser-Moleketi has thrown open a new project within the Fashionomics initiative. Launched last year under her leadership, Fashionomics is a B2B website dedicated to fashion and textiles in Africa that is ready to launch. All fashion enthusiasts in New York, London, Milan or Paris agree that African fabrics are inspiring more and more famous designers. Fashion is not just about design or inspiration; it’s also a multi-million dollar industry that creates millions of jobs including in textile and clothing manufacturing.
In Africa alone, the fashion industry could generate €15.5 million in the next five years. Of course, that’s a far cry from the €1.3 billion that it generates worldwide. Based on these figures, the AfDB’s Office of the Special Envoy on Gender launched the Fashionomics initiative during the Bank’s 2015 Annual Meeting in Abidjan.
This initiative will offer the Bank’s support to Micro, Small and Medium-sized businesses (MPME) in the fashion and textile industry in Africa. The Bank has already invested €10 million in Madagascar, in the support of Project for Investment Promotion (PAPI), focused on MPME in these industries and in particular on women and young people.
US officials are of the view that consumption of Turkish cotton will hit a 10-year high next year as the country's cotton industry invests in new technology. Turkish mills have been investing in new machinery and technology to increase quality and lower costs in order to get ahead in the very competitive international textile trade. Thanks to increased sales in Europe, as well as thawing of relations with Russia, the US Department of Agriculture's (USDA) bureau in Ankara saw exports of Turkish textile rising.
The country’s domestic cotton consumption is expected to rise to 6.89m 480 pound bales in this fiscal (2016-17), This sees a climb of 115,000 bales from the previous session. This is also 285,000 bales above the USDA's official 2016017 forecast.
Political instability among many of Turkey's neighbours is forcing the industry to focus on competing in the European markets. Talking of political instability, it is an atmosphere of war in Syria, Iraq and Ukraine and also stalling of exports to Russia after the Turkish downing of a Russian plane in November 2015, it is gathered. Meanwhile, the mills in the country had to lower their margins to keep their market share in the European market to continue operating. Also, the bureau is quoted to have said heavy production will shrink imports but by less than expected, due to robust demand. The bureau saw imports at 4.02 million bales in 2016-17, down from 4.13 million bales in the previous season. This is some 216,000 tonnes above the USDA's official forecast.
On the imports side, imports from the US will fall due to anti-dumping legislation. Some time ago, after a lengthy anti-dumping investigation, the Government of Turkey had announced three per cent anti-dumping duty on the US cotton imports starting from April 2016. But all said and done, the US will remain the top seller to Turkey.
Multibrand fashion group VF Corporation sees Asia –especially China – as the primary driver of growth in the years ahead. VF’s brands include Vans, Kipling, Lee and The North Face. The plan is to continue to focus on locally relevant innovation, further invest in demand creation and leverage its scale and capabilities to fully capitalise on the growth opportunities and take market share.
China has seen consistent, strong growth from the country’s three largest brands: The North Face, Lee and Vans. In particular, Lee in China has experienced consistently strong growth over the years for the company, with product innovations driving recent success.
VF brands currently maintain a presence in more than 170 Chinese cities. And, that number is expected to increase in coming years. The corporation sees growth potential in a market with increasing affluence, a burgeoning middle class and increasing sophistication and demand for quality jeanswear. While jeans ownership is about eight pairs per person in North America, in China, it is still less than one pair per person.
The company sees a competitive edge in market, particularly for Lee. VF launched Lee as the first owned business in China in 1995.
Textech Expo Bangladesh 2016, organised by CEMS Global, the biggest and oldest international textile and apparel technology and machinery show will be held in Dhaka from August 31 to September 3. Textech provides a perfect B2B platform for manufacturers/distributors for direct interaction with potential buyers of apparel and textile machinery in Bangladesh. As many as 1,050 exhibitors from over 23 countries along with important industry associations are scheduled to participate.
Also participating are India’s Cotton Textiles Export Promotion Council (Texprocil) and Basic Chemicals Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) along with members. Assocham, with the support of Ministry of Commerce, will be setting up an exclusive India Pavilion. Being the only exhibition of its kind in Bangladesh, Textech Bangladesh is attended by top executives, CEO’s & operation/production managers from textile and garment industry, professionals from textile, spinning, weaving and knitting and dyeing mills among others.
Textech Expo Bangladesh 2016, organised by CEMS Global, the biggest and oldest international textile and apparel technology and machinery show will be held in Dhaka from August 31 to September 3. Textech provides a perfect B2B platform for manufacturers/distributors for direct interaction with potential buyers of apparel and textile machinery in Bangladesh. As many as 1,050 exhibitors from over 23 countries along with important industry associations are scheduled to participate.
Also participating are India’s Cotton Textiles Export Promotion Council (Texprocil) and Basic Chemicals Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) along with members. Assocham, with the support of Ministry of Commerce, will be setting up an exclusive India Pavilion. Being the only exhibition of its kind in Bangladesh, Textech Bangladesh is attended by top executives, CEO’s & operation/production managers from textile and garment industry, professionals from textile, spinning, weaving and knitting and dyeing mills among others.
