FW
After a busy and successful show, Premium Exhibition closed its doors. Despite the fact that the first and last day was quiet, the second days was lively and busy. Visitors crowded show halls and pavilions catching up with new trends and forecasts for s/s 2017. The general atmosphere pervading the event appeared easy-going and smooth.
From both, the exhibitors’ and buyers’ side, the show continues to be an important event for the industry. Stefano Colombo, marketing manager, Colmar, commented that they were satisfied and encouraged by the positive feedback that they got from Middle European markets. Premium is a strategic show for them especially for the German speaking countries.
Though, not only exhibitors showed their satisfaction with the event but also buyers. Berit & Jan Petersdorf, Angelo's, Hamburg, said that they like the new layout of the show. It seems there is more space, it's airier and the walk ways appear very clear.
Despite the recent news of the Brexit, most insiders and exhibitors didn’t seem to be worried about UK willing to leave the EU. According to many the first effects of such a change will only be noticeable in about one-two years. In addition, for many the UK market includes only a few multibrand stores, and therefore still represents a small market quota for many companies exhibiting at Premium.
A cotton and textile fair will be held in Uzbekistan on October 12 and 13, 2016. The aim is to expand and diversify Uzbek cotton’s export destinations, increase efficiency and optimize shipment of Uzbek cotton to the world market and become the basis for mutually beneficial cooperation between participants of the world cotton and textile industry. The cotton fair is expected to stimulate further development of market mechanisms in cotton trading and improve business relations between Uzbek producers and customers.
Participants will enjoy an opportunity to sign contracts for Uzbek cotton, set up long-term cooperation in cotton trading, as well as to be familiar with the quality of Uzbek cotton and the latest innovations in trade and logistics. Round tables and bilateral negotiations between Uzbek cotton exporters and consumers will be organized. Guests will have an opportunity to participate in the cotton trading session on the Uzbek commodity exchange.
Topics to be discussed include world cotton and textile market: demand and supply, prices and factors; current state and prospects of production and marketing of cotton in Uzbekistan; new technologies to increase cotton competitiveness; present and future of the world cotton textile market. Uzbekistan is one of the world’s largest producers and exporters of cotton. The first such fair was conducted in 2005.
Manufacturers of waterproof textiles are currently aiming at the creation of a light and thin waterproof material which offers insulation, are wind resistant and are waterproof.
While traditional waterproof textiles are composed of two layers and a third layer is put as a liner to improve resilience, the new approach is to create single-layered waterproof textile. This is because the inclusion of three layers makes the fabric heavy.
Manufacturers are now devising different techniques to make waterproof textiles light weight by making them single layered. This trend is expected to impact the future of the global waterproof textiles market. <br> </br> Waterproof textiles are used to manufacture garments that provide protection from wind and rain. Garments made from waterproof textiles also prevent the loss of body heat. In most cases, waterproof textiles are ventilated to provide an escape passage for sweat. They prevent the penetration or absorption of water and are also referred to as waterproof breathable textiles.
Waterproof textiles are widely used to manufacture outdoor equipment and sportswear. According to a report published by Transparency Market Research (TMR), the rising demand for high-performance and comfortable apparel such as sportswear is driving the global waterproof textiles market.
Another trend that would certainly capture the global waterproof textiles market in the future is the use of recycled polyethylene terephthalate (PET) bottles in the manufacturing of these textiles. Conceived as a initiative to fight environmental pollution owing to the high use of plastics, recycled PET bottles are used to produce polyester fiber which is then used to manufacture waterproof textiles.
The eco-friendly nature of these textiles will appeal to an expanding segment of the urban society that possesses an increased awareness about environmental conservation. This will propel the global waterproof textiles market.
North America currently leads the global waterproof textiles industry due to a high demand from Canada, Mexico and the US. The growth in the sportswear market is primarily responsible for the high demand for these textiles in North America. Europe is proving to be a lucrative market for waterproof textiles, with high demand from the U.K., Germany, and France. Similarly, the rising demand for waterproof textiles from India, China, and Japan is driving the market in Asia Pacific.
Leading players in the global waterproof textiles market include Columbia Sportswear, APT Fabrics, Clariant, Lowe Alpine, General Electric, Dow Corning, Huntsman Textiles Co. Ltd., Archroma, WL Gore & Associates, Inc. and Heartland Textiles Co. Ltd.
Worries loom over cotton spinning mills as multiple global factors play out to influence the demand for and the price of yarn as well as that of cotton. So far, in the last four-six quarters, it was a stable ride up the profitability graph for yarn mills. Demand for yarn was moderate and cotton prices were stable.
The biggest problem is the recent and sudden spurt in cotton prices, which is higher than that of yarn. The price of the benchmark Sankar-6 variety of cotton has jumped by 19 per cent, whereas that of 30s-count yarn is up 11 per cent (inclusive of duties) since January.
The mills, especially the mid- and small-sized units, will take a beating on margins if the trend continues. The larger mills are tiding over the problem through imports. According to K Selvaraju, secretary general of the Southern India Mills’ Association (SIMA), large mills have started buying West African cotton as costs are lower. At current price levels, imported cotton works out cheaper by Rs 2,000 per candy of 355kg. Experts say that the cotton imports for the season will surpass projections.
Some say that the acreage under cotton cultivation is down, after two seasons of deficit rainfall as the reason for domestic cotton prices ruling high. So, cotton production is likely to fall to a five-year low of 35.2 million bales (a bale is 217.7kg) for the 2015-16 season ending September, or perhaps even lower.
"The fashion industry directly contributed £28 billion to the UK’s economy in 2015 and employed 880,000 from manufacturing to retail. The impact of Brexit on the fashion industry is multi-leveled. Post Brexit, there will be an immediate hit on costs and margins for many British designers and stores. According to analysts, once Brexit has been achieved, it could jeopardise design talent and retailers within the global marketplace forever."
The fashion industry directly contributed £28 billion to the UK’s economy in 2015 and employed 880,000 from manufacturing to retail. The impact of Brexit on the fashion industry is multi-leveled. Post Brexit, there will be an immediate hit on costs and margins for many British designers and stores. According to analysts, once Brexit has been achieved, it could jeopardise design talent and retailers within the global marketplace forever.
The British Fashion Council (BFC) during the campaign reported that of the near-500 designers it polled, 90 per cent planned to vote for ‘Remain.’ In the short term, some in the industry are happy.
Currency volatility
The fall in the pound is good news for retailers that have a large tourist pull, with Harrods reporting a strong start to its summer sale. There is some respite also for Burberry, which in May announced a £100m cost-cutting drive after a 10 per cent fall in profits. Burberry should benefit from a weaker pound, given significant currency imbalances, according to Thomas Chauvet, luxury analyst at Citi.
Head of luxury goods at Exane BNP Paribas, Luca Solca calls this positive effect ‘margin tailwind.’ But he sounded a note of caution. Brexit, and the turmoil in financial markets, is likely to have negative repercussions, he said, reflecting the bank’s revising down of 2016-17 growth estimates. Consumers may pause before spending, and businesses may pause before committing to capital investments. Buyers and retailers are nervous about speaking openly. They want consumers to continue shopping as if nothing has happened.
In a global marketplace, stores work with extremely complex business models, especially dotcom retailers, which buy and sell in multiple currencies. Currency volatility is a huge worry. Store buyers placing orders for brands that are paid for on delivery will be concerned about price. Meanwhile, the only way many young British designers can afford to make their products is by having them manufactured abroad. This will now be more expensive.
Restriction on movement
One of the key topics of the referendum was immigration. In Blackburn factory, two-thirds of the workers are East Europeans because they don’t have the skilled labour in UK. Many are now lobbying for the future of British fashion, particularly the free movement of people. The BFC sits on the Creative Industries Council, a government-run forum. The fashion industry’s message aligns with those of other creative industries. More directly, some of BFC’s funding comes from the European Regional Development Fund.
Other bodies are also in danger of losing funding. It’s about job creation, feels Judith Tolley, Manager of the Centre for Fashion Enterprise (CFE), which supports emerging brands with funding from the EU that’s matched with funds from the London College of Fashion. The CFE has funding of £5.3m secure for a new three-and-a-half-year project supporting fashion and tech pioneers in the UK.
Movement restriction could be career-limiting for UK fashion graduates. British talent has flowed freely into European houses for decades, helping to define the look of the luxury era. It’s the history of the past 20, 30 years. LVMH, Kering and all those companies will want to arrange visas for the best talent. Think about the top creative directors such as John Galliano, Phoebe Philo, Stella McCartney and the late Alexander McQueen. But it could make a difference to all the hundreds of graduates who staff the design studios.
Thailand’s industrial output rose for a third straight month in May but recovery remains fragile with both exports and domestic consumption sluggish.The manufacturing production index in May rose 2.6 per cent from a year earlier. In April, output rose a revised 0.89 per cent from a year earlier, instead of the 1.54 per cent reported a month earlier. Industrial goods accounted for nearly 79 per cent of total exports in May, which declined 4.4 per cent from a year earlier. May's output increase was led by autos, air conditioners and rubber products.
Capacity utilisation was at 67.45 per cent in May, up from April's revised 59.52 per cent. Exports have contracted in each of the past three years. Shipments are forecast to fall 2.5 per cent this year, down from a two per cent drop projected earlier, while the economy is expected to grow 3.1 per cent.
Thailand is an export oriented economy with exports accounting for around 65 per cent of the GDP. The country mainly exports manufactured goods, electronics, machinery and equipment and foodstuffs. Agricultural goods, mainly rice and rubber, account for eight per cent of total shipments. Its major export partners are China, Japan, the United States and the European Union. Others are Malaysia, Australia and Singapore.
Textile Exchange (TE) has published the Responsible Wool Standard (RWS) at www.responsiblewool.org and outlined details about its background and development process. TE and the European Outdoor Group (EOG) will hold a launch event for the Responsible Wool Standard on, July 14 during OutDoor in Messe Friedrichshafen. Speakers will include: Anne Gillespie, Director of Integrity, Textile Exchange; Stuart Adams, Founder, Continuum Textiles; and Mark Held, General Secretary, European Outdoor Group.
Textile Exchange and the European Outdoor Group will present key elements of the RWS and answer questions about the standard. RWS is an independent, voluntary standard intended to be a global benchmark for animal welfare and land management practices in sheep farming. The development of the standard has been led by TE, with strong input from the EOG, and extensive engagement with wool growers, certification bodies, brands, supply chain companies and NGOs.
Between 2016 to 2023, the size of the Spandex market is likely to exceed 1,550 kilo tons growing at a CAGR of more than 8 per cent. In 2015, the size of the Spandex market was estimated at over 760 kilo tons. This phase is commonly known as elastane. The size of the Spandex market of Asia Pacific especially China was the largest and accounted for more than 60 per cent of the total volume in 2015. The country accounted for a major chunk of the market in Asia Pacific region in 2015.
Over the last few years, dry spinning technology was majorly preferred among manufacturers over other processes like wet spinning, melt extrusion and reaction spinning. Growing application scope in apparel and textile industry is likely to drive the spandex market over the forecast period. They are used in textile manufacturing applications such as leggings, gloves, cycling jerseys and competitive swimwear. Spandex market price was seen to be weak in mid-3014 owing to ease of tight supply and low demand from downstream applications. The market is expected to grow with recovery in US economy post recession.
Asia Pacific market is likely to witness highest gains over the forecast period. China accounted for more than 50 per cent of global share in 2014 and is the major manufacturer. In 2012, China had around 30 manufacturing units with a total capacity of 520 kilo tons and domestic production exceeding 320 kilo tons in the same year. 40D and 20D are major products manufactured in China. The share of the Spandex market in North America is likely to witness moderate growth owing to increasing sportswear demand in the US Europe is likely to witness below average growth over the forecast period. Latin America is likely to grow at significant rates owing to growth in sportswear and apparel industry.
Pakistan’s cotton yarn exports in May increased slightly by 0.31 per cent over April. But that was a 27.44 per cent fall from the same month of previous year. Total shipments between January and May were 27.38 per cent lower than the corresponding time frame of the last year. Cotton yarn was Pakistan’s most competitive industry on the global market before 2015. Nonetheless, the sector has been in big trouble, caused by cotton shortage and electricity load shedding.
Local traders predict the current declining trend cannot be reversed in the short term. Pakistan’s cotton yarn exports have been on the decline for the last couple of years owing to surging cost of production on account of rising energy prices and shortages. After surrendering a significantly big part of the international textile clothing market to its regional rivals, especially Bangladesh, since the abolition of quotas, Pakistan is now fast losing its cotton spun yarn markets to the much cheaper Vietnam.
Also the reversal of cotton policy by China has hit Pakistan’s yarn production and yarn exports. Pakistan lost its position as the largest cotton yarn supplier to China in 2014 to India. Vietnam has also enhanced its cotton yarn share in the Chinese market.
If Nepal’s garment industry can tap even 0.05 per cent of the potential $200 billion US market, the country’s readymade garment exports can exceed a billion dollars. However, Nepal can compete in the global market by diversifying away from the US and producing small quantities of customised and specialised products with higher profit margins to cover higher costs. In the past, the United States, with the introduction of duty-free, quota-free access to some 66 items, was the largest market for Nepal’s garment industry.
Compared to Bangladesh or Ethiopia, Nepal has a much higher minimum wage and transport lead time, and policies are much more export-friendly in those countries compared to Nepal. The meteoric rise of Nepal’s garment industry was brought about by the interplay of various factors, both domestic and foreign. The much-needed boost came at a time when garment-exporting industries in Asia were hit by the quota system imposed by importers in Europe and America. This coincided with rising labor costs in garment exporting countries undermining their low cost advantage. Producers were forced to look for alternative, cheaper locations. Hence, Nepal emerged as a relocation site, especially for Indian producers who had already hit the quota ceiling.
