FW
On behalf of the apparel export community, Garment Exporters Association has forwarded pre-budget recommendations to the Finance Minister Arun Jaitley, to make Indian exports competitive in the global trade.
The recommendations include reduction of transaction costs, hike in duty drawback rates by five percent to ensure full refund of excise duties, custom duties, education cess and other central and state-level taxes. The association further sought reduction in interest at pre- and post-shipment levels and keep it capped at 7 percent. It asked the minister to continue the three percent interest rate subvention scheme for three more years that expired on March 31, 2014.
Since most of the competing economies allow import of garment and textile machinery without customs duty, the industry body appealed that even Indian government should not levy any customs duty on import of textile machinery and accessories. Implementation of GST (goods and service tax) must be the prime focus and it should be implemented immediately to simplify the present tax structure. It suggested that the Technology Upgradation Fund Scheme should also get more funding to encourage upgardation of technology to improve productivity. To make Indian products competitive in the global market, the government also needs to allow duty-free access to yarns and fabrics, so that the final product prices could be kept under control.
Apart from the above recommendations, the association has also appealed to the government to make India, an easy to do business destination to attract more investments into the country, fixing of rupee value against the dollar so that exporters don’t suffer in-case of currency fluctuations and easing labour laws to improve labour productivity by granting ‘seasonal industry’ status to the garment export business.
Bangladesh garment exporters are facing problems in transporting goods to the port due to a blockade enforced by the opposition party. The number of vans carrying readymade garment products to the Chittagong port for shipment has almost halved. Though the police have provided escort in transporting goods to and from the Chittagong port, most exporters and transport owners are not willing to transport goods as they on previous occasions have experienced arson attacks and vandalism despite having the protection.
Apparel manufacturers fear the current political instability might lead to huge loss for the sector through shipment delay and cancellation of orders. Exporters have already started to face shipment delays, order cuts and cancellations due to the political turmoil. They feel that if the problem continues, global buyers will decrease the volume of orders. In fact, many American buyers have stopped visiting Bangladesh. That means owners of companies in Bangladesh have to go abroad to negotiate orders.
Exporters say the transportation of goods under police protection is a piecemeal solution and that the export business requires a stable situation. In a normal situation about 600 trucks carrying readymade garment goods ply to the Chittagong port every day.
Italy's Pitti Uomo show held from January 13 to 16 saw 15 per cent increase more visitors than the January 2014 edition. Foreign buyers grew by 11 per cent while Italian ones increased by 17 per cent. The event registered 35,000 visitors, of whom 24,000 were buyers.
The show covers men’s apparel like formal and classic, rock n roll. Pitti Uomo offers an energetic and stimulating atmosphere in terms of brands, colors, materials and fabrics. Very positive and enthusiastic comments came from US brands that participated in the maiden ‘Born in The USA’ area.
Starting off with a crowded first day, similar to previous editions, from the second day on, visitor numbers increased notably and halls were crowded. A positive atmosphere pervaded the halls. Many exhibitors were pleased with the quality and quantity of visitors, and buyers also showed their enthusiasm for the varied and interesting selection of brands and products on show.
This was the 87th edition of Pitti Uomo. Nudie Jeans has chosen to be part of Pitti for the past two seasons for the show’s international environment and its reputation and for the variety of visitors it attracts. The show offered possibilities for meeting good quality clients.
www.pittimmagine.com/en/corporate/fairs/uomo.html
Techtextil the a trade fair for technical textiles and nonwovens will be held from May 4 to 7, 2015. Manufacturers from all over the world will present their latest developments in the fields of functional apparel textiles and smart textiles. Countries like Belgium, China, France, Great Britain, Italy, Portugal, South Korea, Taiwan, Turkey and the USA will have their pavilions.
The new heart of Techtextil is the ‘Innovative Apparel Show’, where four universities and fashion schools will present their innovative designs on all four days of the fair. After a live walk, they will explain the processes and materials used. This year the event will host the Techtextil Symposium. The subjects to be covered include: thermo-plastic composites, bio-based polymer composites, hybrid yarns, self-cleaning textiles, 3D printing, 3D spacer fabrics for personal protective equipment, multi-axial technologies for customised technical textiles and smart fabrics.
Students will compete to come up with innovative and realistic approaches for building with textiles or textile-reinforced materials. Awards will be presented for outstanding inventions and developments in the fields of technical textiles, nonwovens and functional apparel textiles.
techtextil.messefrankfurt.com/
The Woolmark logo will be seen on a more diverse range of products. This includes: more sports, outdoor, casual, denim and wool-filled products. Woolmark has introduced a sub-brand Australian Merino Wool.
Sports and outdoor apparel products have traditionally been dominated by synthetics or feather and down products. Now apparel products made of wool are catching on in a big way. With the increasing trend toward casuals, Woolmark has established a category called ‘Contemporary’, cementing wool’s place as a modern, contemporary fiber. In line with this, specifications have been established for machine washable or machine wash and tumble dry wool denim products.
The minimum wool content for interiors and floor covering products using the Woolmark logo has been reduced from 80 per cent to 50 per cent. This means the same minimum wool content for all products - interiors and apparel - using the Woolmark blend logo. By reducing the minimum wool content it is hoped more interior companies will qualify to become Woolmark licensees and more wool products will be seen on shelves.
The Woolmark logo certifies both garment quality and fiber origin and promotes the fiber of Australia’s wool growers to an international audience. These changes to Woolmark’s licensing program represent positive movements into new areas of the wool industry.
www.woolmark.com/
With a view to resolve disputes in arising out of non-payment for cotton and explore means for future cooperation, a high-level delegation of the International Cotton Association (ICA) is likely to visit in Dhaka soon. As per sources, the ICA has already informed BTMA (Bangladesh Textile Mills Association), the apex body of the country’s textile mills, urging it to make necessary arrangements in this regard. In November last, ICA president Jordan Lea had visited Bangladesh and held discussions with BTMA president Jahangir Alamin and requested him for arranging mediation for early settlement of disputes.
It must be mentioned here that ICA has recently introduced mediation mechanism for quick settlement of disputes between the party and the review board. BTMA has already written to member mills, which have defaulted on behal of ICA, in this regards.
Liverpool-based ICA, which oversees the global cotton trade, introduced the mediation services to help resolve disputes over reneged contracts that have blocked hundreds of blacklisted firms from doing business. The ICA prepares the list based on complaints from cotton supplying companies worldwide. The companies became defaulters as the importing companies did not receive shipments for an abnormal price hike of the item in 2010-2011. It has blacklisted as many as 700 companies as defaulters including 96 from Bangladesh for failing to make payments to suppliers. The group is now trying to find ways to help get them off that list
BTMA has informed ICA to appoint arbitrators in Bangladesh to resolve disputes in payment as it was very expensive to attend the hearings in UK.
India's cotton exports may drop this season by less than expected. Exports picked-up late 2014 though the levels are still well below a year before. The pace of exports accelerated to 7,80,000 bales during December, the highest level since April. Large shipments were made to Vietnam and Indonesia.
Recovery is attributed largely to the weakness in the rupee, which has depreciated by five per cent since August and made Indian cotton prices competitive globally. The raised export hopes come despite a weakened forecast for Indian production. Yields have dropped in the state of Gujarat, which with Maharashtra is one of the two main cotton growing states.
Cotton arrivals from Gujarat and Maharashtra are down 16 per cent year on year so far in 2014-15. There have been pest outbreaks in the coastal belt, affecting the last crop picking, and deficient rains in the Saurashtra region of Gujarat. In spite of this, India may still be the world’s top cotton grower, overtaking China for the first time in more than 50 years. China's output has been dented by a drop in sowings stemming from its subsidy reforms. India is the world’s second largest exporter of cotton.
The sourcing caravan is moving on to the next hotspot. Bangladesh's garment industry has grown at an annual average rate of 16.9 per cent since the multi-fiber agreement was abolished in 2005. And there is further room for growth. Japan is now actively seeking to diversify its garment import base away from China. Chinese investors themselves are seeking to source from Bangladesh, given rising wages in China.
Bangladesh is likely to be the best destination that has the ability to grab the lion’s share of the global readymade garment market presently held by China. If Bangladesh can address the key constraints hindering exports, it could take some of the market share being gradually vacated by China.
Capturing even 20 per cent of China’s garment export markets would more than double Bangladesh’s total exports. China is currently either vacating some price competitive product segments or investing abroad in more competitive locations, offering great opportunities for Bangladesh.
Bangladesh can potentially become an important player in manufacturing based on a strong comparative advantage in labor-intensive industries. This comparative advantage, matched with a large population, has translated into very strong price competitiveness in the garment sector and possibly could, with the right policies, translate into competitive positions in other manufacturing industries.
UK's premier platform for fashion fabrics and clothing accessories the London Textile Fair was took place from January 14 to 15, 2015. Most exhibitors were manufacturers and agents who specialise in textiles and accessories for high-street clothing industry. Nearly 360 exhibitors showcased Spring ’16 pre-collections and Autumn ’15 highlights to buyers and like River Island, Asos and Marks & Spencer.
Buyers showed keen interest in crepes, jacquards and prints on viscose, silk and cotton. The younger generation of buyers wanted to know about waterproof and breathable fabric. For Spring ’16 the trend moved to a clean and crisp look from the weathered look seen previously. The finish is shiny, with an almost plastic appearance.
The UK is a big market for Turkish companies. About 40 Turkish companies exhibited at the show. Lithuanian linen supplier Baltic Flax showcased a range of 100 per cent linen and linen blend samples in natural colors and striped and checked designs.
thelondontextilefair.co.uk/
As per data released by the US Department of Commerce's Office of Textiles and Apparel (OTEXA), apparel imports from Vietnam witnessed the most rapid growth to the US in November. Vietnam has gained the biggest share of US apparel imports so far this year. Apparel imports have not grown much this year. The value of total apparel imports for the first 11 months of 2014 increased by only 2.5 per cent compared to the same period in 2013, to just over $75.8 billion.
Many US apparel brands spurred away due to rapidly rising wage rates in China which had led to a shift away from that country. As Vietnam has aggressively expanded its apparel and textile capabilities to attract more customers in the US and Europe, US apparel imports from Vietnam totaled a record $8.5 billion, up 14.6 per cent over the first 11 months of 2013.
Vietnam is exporting more expensive garments to the US than in the past. Key categories for Vietnam are women's cotton knit tops, women's and men's cotton pants, women's manmade fiber knit tops and dresses, and cotton underwear.
China has suffered the biggest share loss so far in 2014, dropping from 37.4 to 36.6 per cent of total US apparel imports. Imports from China fell 4.5 per cent in November to $2.1 billion. Indonesia edged ahead of Bangladesh as the third largest source of apparel to the US. Both countries have lost share so far this year. India has gained a small amount of US apparel import share this year (4.2 per cent) of total US apparel imports. Mexico has declined to 4.5 per cent of total dollar imports of apparel. A decade ago ,it was the second largest source, after China.
