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The 14th International Textile Asia exhibition will be held in Lahore from August 29 to 31. This is a trade fair for textiles, garments, embroidery, digital printing machinery and chemical and allied services organized by Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA. The aim is to facilitate exports of value-added sector in Faisalabad, Multan as well as Sialkot. The event will provide a podium for joint ventures and collaborations for the textile sector’s small and medium enterprises.
More than 350 international brands from around 29 countries will display their products in more than 500 stalls. Participation of 210 foreign delegates will also mark the event. Exhibiting countries include: Austria, China, Czech Republic, France, Germany, India, Italy, Korea, Taiwan, Turkey, UK, US etc. This is Pakistan’s largest textile show and the local textile sector’s whole chain has been invited to attend. Some 80 per cent of the country’s small and medium enterprises are located in Punjab.
This is the 14th successive year of the show and the event is being organised at a time when the government is looking at modernising and upgrading the textile sector for better quality products and enhanced productivity. The event provides enormous opportunities for learning, information sharing and mutual cooperation for all stakeholders of the textile industry in South Asia.
Uganda may come out with a textile industry policy that will prohibit government and traders from importing products which are manufactured by local factories. Manufacturers want priority for local goods as they face the danger of being kicked out of business. They are hurt that local industrial products are rotting in stores as the government and traders prefer imports. They want heavy taxes to be imposed on imported products so that the government and traders can consume local goods.
One suggestion is that factories should diversify into manufacturing other products such as African wares to capture both local and international markets. Most Ugandans wear imported second-hand clothes. Used shirts, blouses, trousers, caps and many other clothing items reach Uganda in huge bales from countries such as the US and the UK.
After landing in Africa, the clothes find their way along a chain of wholesalers until they end up with small retailers in thousands of trading centers dotted around Uganda. There are calls in the Ugandan media for banning imports of second-hand clothes to promote the development of homegrown textile industries and enhance economic growth. But most Ugandans prefer the cheapness and a variety of styles and fashion provided by imported second-hand clothes.
Therefore, since these young adults have little money to spend on premium or branded clothing, they spend little on apparels. This, in turn boosts the sales of low-cost fashion brands such as Zara and H&M.
Low cost, a great puller
Maureen Atkinson, Senior Partner at global retail advisers, J C Williams Group believes this shows that the earlier model all about the logo, has changed now.
Meanwhile stock value of American Apparel dipped further to record a net loss of $19.4 million and a 17 per cent decline in revenue in its most recent quarter. Atkinson says the brand’s customer has outgrown it and the brand not been able to resonate or connect with the next generation. Atkinson too confirms the millennial generation has lower employment rates, non-dependable jobs and many worked on contract. Many have student debts and if they came across fashion for less money, they would spend less as then they would be able to spend more on consumer electronics, which has become a priority.
Advantage low-priced brands
However, while American Apparel and other branded retailers were having a hard time, Zara and H&M were making a killing as they kept their prices low by operating as efficiently as possible and also provided what was in trend. Emily Scarlett, H&M Canada’s spokeswoman says they have the best prices for customers by having in-house designers, no middlemen, buying in large volumes, efficient logistics, buying the right products for the right markets and being cost-conscious at every level. Also, the brand is both, importer and retailer, thus it could maintain full control over every link in the supply chain, from the supplier to the store. She further feels the lead time for garments varied and they placed orders well in advance for basics with high-volumes and also for the brand’s annual fashion collections. Garments that were trendier had a quicker turnaround time.
India has imposed an anti-dumping duty on imports of flax or linen fabric having a flax content of more than 50 per cent and exported from China or Hong Kong. This duty would be effective for a period of five years from August 12, 2015.
An anti-dumping duty of $0.75 per meter on flax or linen fabric having a flax content of more than 50 per cent has been imposed on goods originating in and exported from China. For fabric originating in or exported from Hong Kong, this duty would be applicable at $0.63 per meter.
The justification is that flax or linen fabrics with more than 50 per cent flax content are exported from China and Hong Kong below their normal value, resulting in dumping, which is likely to cause injury to the domestic industry.
Anti-dumping duty on flax or linen fabric having a flax content of more than 50 per cent was first imposed in December 2009. Subsequently, a review was carried out as a subsidiary company of Aditya Birla Nuvo filed a petition seeking continuation of the duty on such fabric imports from China and Hong Kong.
The Emerald Expositions’ Outdoor Retailer (OR) Summer Market in Salt Lake City was held from August 5 to 8. The three-day event showcased latest outdoor apparels, footwear, gear, accessories, raw materials, and technologies from 1,600 brands. The US market for outdoor apparel grew by 7.9 per cent over the past year. Specialty retailer sales of outdoor products grew by 5.2 per cent.
The outdoor industry is in transition on several fronts. Outdoor specialty retailers have struggled to compete with a growing number of multi-national and omni-channel retail brands. Growth in the outdoor market is coming from categories such as: footwear, paddle sports, climbing gyms, yoga, and hammock. In fact, sales of light weight hammocks have risen by 51 per cent in the past year.
Outdoor enthusiast wants gear that is super-light and versatile rather than ultra technical. College students are also challenging traditional outdoor brands with a modern outdoor movement based on healthy lifestyles and an increased appreciation of sustainable fibers and cleaner technologies.
The search for a replacement for long-chain (C8) DWR finishes which contain harmful PFOA and PFOS has brands looking at a number of options. Many brands have transitioned to C6 or short-chain fluorocarbon finishes. But these tend to break down more quickly in the environment and perform less effectively in repellency tests. At the same time, brands are working to make DWR products lighter and more comfortable. The 2016 winter market will held from January 7 to 10.
www.outdoorretailer.com/summer-market/show.../show-overview.shtml
Any move by the Federal Board of Revenue (FBR) for imposition of regulatory duty on import of cotton yarn without taking all stakeholders of the textile chain on board will be strongly opposed by the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA). It came as a surprise for the sector that the FBR took some decisions to facilitate the textile sector in the country, in a meeting with All Pakistan Textile Mills Association (APTMA), Pakistan Textile Exporters Association (PTEA), and the Garments Manufacturers Association, said PRGMEA Chairman, Ijaz A Khokhar. However, the key stakeholder of the sector, the PRGMEA was not invited to the meeting.
Khokhar stated that garments value-added sector under the PRGMEA strongly opposed any barrier on import of fabric for garments export and also any regulatory duty imposed on yarn import. While formulating national policies regarding the textile chain, the value-added garment sector should be taken in confidence as well.
The present rate of 5 per cent custom duty on import of cotton yarn is adversely affecting the domestic spinning industry. Thus, appropriate measures in this regard, which includes imposition of regulatory duty on import of cotton yarn, need to be adopted. The FBR stated in a meeting that that an inter-ministerial committee that included representatives of the Federal Board of Revenue, the Ministry of Textile Industry and the Ministry of Commerce was constituted to give recommendations with regard to imposition of regulatory duty on import of cotton yarn.
However, the garment sector was completely ignored and not taken on board for any consultation, felt Khokhar. Incidentally, this is the only segment of textiles that showed a rise of more than 10 per cent in Pakistan's exports of 2014-2015, out of the total textile sector.
Prices of fabric dyes and chemicals used in the wet processing segment of the apparel production chain are likely to go up if current currency volatility continues. This is likely to pose a challenge for the garment sector in Tirupur. Reason: a substantial volume of the raw materials used for production of fabric dyes and chemicals is imported. With the rupee depreciating against the dollar, imports have become costlier.
Currently, almost 80 per cent of H-acid, a main raw material for the manufacture of fabric dyes, is imported. Apparel manufacturers in Tirupur feel any significant cost hike in fabric dyes and chemicals would result in higher processing charges which, in turn, will have a cascading effect on garment prices. The situation will thus hit competitiveness of garment exporters who are already facing stiff price challenges in the global market. If the currency volatility is not halted, the cost of dyes and chemicals will increase.
Apart from H-acid, a sizeable quantity of other raw materials like vinyl sulfone and K-acid used in fabric dyes production, acrylamide and polyvinyl alcohol used for manufacturing chemicals meant for the dyeing industry, is imported.
In recent years, Bangladesh has turned into a textile chemical exporter from importer. Experts say, this has helped the country save and earn millions of foreign currency. At present, Bangladesh exports hydrogen peroxide, a major chemical used in the bleaching and sterilising process in textile, paper and pulp industries, to several countries, including India, Nepal, Malaysia, Pakistan and Sri Lanka.
The largest destination is India, with more than 1,200 tons of hydrogen peroxide being exported here per month. This is followed by Pakistan, where, about 400 tons is exported. Data from Export Promotion Bureau, in the fiscal year 2014-15 reveals, over $7 million worth of chemicals were exported and India and Pakistan together accounted for about $6.5 million.
Mostafa Kamal, Chairman and Managing Director, Meghna Group of Industries says, there is a huge potential to export hydrogen peroxide to other countries as well. However, Pakistan’s antidumping duty on imports of chemicals from Bangladesh has affected the country’s export potential. The National Tariff Commission of Pakistan recently, issued a notice inviting interested parties to attend a hearing on the issue. A Bangladesh Tariff Commission official though, said that they would fight against Pakistan’s move.
The Maharashtra government is set to float a new textile policy, through which it would invest Rs 80,000 crores in the next five years in the textile sector. This would develop around the concept, ‘fabric to fashion’. BJP MLA, Suresh Halwankar from Ichalkaranji, who is the architect of the policy has stated that the cotton producing state will also become the producer of readymade garments, which is a first. Currently, the clothing industry from cotton to fabric to ready-to-wear clothes is scattered across the country. The new policy is being floated as transportation costs are increasing the cost of products while delivery time is also high.
A presentation to this effect was made by Halwankar before the CM Devendra Fadnavis, textile minister Chandrakant Patil, et al. The government has accepted the proposal in-principle and is chalking out a road map to implement it. The new policy is set to change the situation as the state will process its cotton within its domain and the ready-to-use cloth will also be produced in the state. Also, the government will assist financially through subsides with low interest, will identify locations and acquire land for setting up all types of units. Moreover, the power ministry will ensure sufficient power supply, while the labour ministry will organise skill development sessions and workshops, he added.
Bangladeshi team to visit US
As per Hedayetullah Al Mamoon, Senior Secretary to the commerce ministry the team will got to America in the last week of September to urge the United States Trade Representative (USTR), the chief trade negotiation body of the American government, to review the progress report of Bangladesh Action Plan once again, and reconsider its decision of not allowing GSP to Bangladesh.
The USTR left out Bangladesh from the list of 122 nations for whom US President Barack Obama re-authorised the GSP, America’s biggest scheme for the world's poor nations, on July 29. The reason for the exclusion was Bangladesh's failure to fulfil all of the 16 conditions the US had laid out when it revoked the trade privilege two years ago on grounds of poor workplace safety and labour rights.
However, Bangladesh has said the country has made "tremendous progress" with the 16-point action plan laid out by the USTR after the twin industrial disasters of Tazreen Fashions fire and Rana Plaza building collapse put a question mark on the country’s fire and labour safety conditions. Bangladesh has worked upon bringing major reforms like the amendment to the labour law to allow full freedom of association by the workers and completion of inspection of 3,669 factories.
Although delayed, the labour and employment ministry hired additional 200 factory inspectors, as per the conditions set by the US. It allowed registration of more than 350 trade unions and opened a publicly accessible database of the garment sector. The government also arranged training programmes for industrial police as per the conditions.
Impediments to GSP access
Bangladesh, despite trying to implement several reforms, failed to formulate the rules for applying the amended labour law of 2013 and bring changes to the law to allow full freedom of association for factory workers of the export processing zones. The government also could not arrest the killer of labour leader Aminul Islam, who was tortured and brutally killed in Tangail in April 2012.
The GSP issue could have been discussed in the second meeting of the Trade and Investment Cooperation Forum Agreement (Ticfa) with the US next month, but the government has now decided to pursue it separately. Bangladesh and the US signed the Ticfa in November 2013 to settle trade-related disputes between the two countries through discussions.
In fiscal 2014-15, Bangladesh exported goods worth $5.58 billion to the US, with 95 per cent of them being garment products, which were subjected to 15.61 per cent duty. A year earlier, the amount was the same at $5.58 billion. American businesses imported $19.9 billion worth of products under its GSP programme in 2012, including many inputs that are used in US manufacturing, according to the USTR.
Ustr.gov
