FW
Turkey’s textile exports decreased 5.5 per cent in the first three quarters of 2019. The share of textiles and raw materials in Turkey’s total exports for the first nine months of the year stood at 5.6 per cent. In September, exports to 28 countries in the EU region decreased by 9.5 per cent.
In the first three quarters of 2019, Turkey’s textile exports to Italy declined by 7.4 per cent. In September alone, exports to Italy declined by 9.5 per cent. Exports to the US market increased by 12.7 per cent.. However, in the first nine months of the year, Turkey’s exports to this country decreased by 2.1 per cent.
Turkish exports of woven fabrics in the January-September period of 2019 decreased by 7.6 per cent. Yarn exports decreased by 4.6 per cent. Home textile exports decreased by 2.9 per cent. During this period, fiber exports decreased 11.1 per cent. In fiber products group, synthetic and artificial fibers have a share of 62.6 per cent and cotton fibers have a share of 33.8 per cent. In the January-September period of 2019, exports of technical textiles increased by 8.8 per cent. Nonwoven export increased three per cent. Ready-to-wear and apparel export increased by 0.4 per cent. In September, this figure was up by 3.2 per cent.
Taiwan’s textile industry is a major provider of functional fabrics for outdoor and sportswear brands. Taiwan accounts for 70 per cent of the world’s output of functional fabrics. As the world’s largest producer of functional fabric, the country’s textile industry is home to cutting-edge techniques, new technologies and the development of groundbreaking industry standards. With the strong development and integration abilities for functional artificial fibers, as well as the ability to provide a wide variety of customized fabrics in small quantities, Taiwan continues to develop competitive advantages in functional, environmental-friendly and smart fabrics. The textile industry also features low pollution and low energy consumption with production process, innovative technologies in its semiconductor and biomedical industries, electronic components, and cross industrial integration.
Today, nearly 50 per cent of all fabric is made from recycled materials and Taiwan is leading this big change throughout the global textile industry. Recycled yarns—used for apparel, industrial and sport accessories—are growing in importance and are a core part of the Taiwan textile industry, reducing the negative impact to the environment. As a leader in recycled polymer and polymer blends, the country is constantly introducing new sustainable textile developments, which combine high-tech, ecology, function and life aesthetics, such as the latest recycled nylon from ocean waste and water-free dyeing.
India's cotton yarn exports have been hit in the past few months. High prices have made the product uncompetitive in the overseas market. Cotton yarn exports declined 36 per cent on year in April to August while in value term exports were down nearly 39 per cent. There are other reasons as well for the slowdown in yarn exports. Orders with China’s weaving, knitting, and garment factories have been drying up due to the ongoing trade war with the US. This has had a cascading impact on the textile sector in Bangladesh, which has been the top destination for Indian cotton and yarn. The subdued demand has dragged prices of yarn below the cost of production in India that hit exports. Similarly, demand from Indonesia and Vietnam has also fallen for the same reason.
However, as cotton prices are set to fall with arrivals of the new crop, Indian yarn too may be back in the game from November. Enquiries from overseas importers have started coming in and probably in November Indian companies should start exporting cotton yarn. However, resumption of exports will reduce only half of the backlog so far. The country’s exports will be down 15 per cent to 20 per cent by the end of March from the current 36 per cent decline in volumes.
Cotton production in India is expected to be 15 per cent over that of 2018-19. This will be the second highest on record. Harvested area in India is projected at a record 12.9 million hectares in 2019-20 as domestic prices and internal support price prospects favor cotton over competing crops. The above average monsoon rainfall is expected to provide an extended picking season, which is expected to increase the yield to a three-year high. Last season India’s cotton crop was at a decade low at 312 lakh bales.
Global cotton players are looking at India, with its record production and likely increased stock situations, to feed the world cotton market. This kharif season, India grew cotton on a larger area, at 127.67 lakh hectares, about six lakh hectares more than last year. Cotton prices are weak in the domestic market. Cotton prices hovered at Rs 41,900 per candy of ginned cotton, down from Rs 43,900 two months ago. Cotton trade bodies in India are yet to come out with their own crop estimate.
Global cotton production is about five per cent above 2018-19. The October production estimate includes decreases for Brazil, Pakistan, Australia, and the United States, which more than offset an increase for India.
Environmental-friendly sourcing is a priority across the apparel space, says McKinsey. Reflecting growing concerns from consumers, many brands are investing in sustainable processes and setting ambitious goals. Sustainable sourcing at scale will be a must for apparel companies over the next five years.
Sustainable sourcing covers multiple individual processes but the main areas are sustainable materials, transparency and traceability, supplier relationships, packaging, circular economies and broader ecological footprint. In the first half of 2019, only one per cent of new products launched by mass-market apparel companies were tagged as sustainable online. The industry lacks a common language on sustainable sourcing, let alone a shared set of standards. A powerful driver for introducing environmental-friendly practices is public pressure. Internet searches for sustainable fashion tripled between 2016 and 2019.
In the not-so-distant past, sustainability was used primarily as a tool to mitigate reputational risk and ensure compliance. But now transparency and traceability are critical to the future. Incorporating sustainability throughout a company’s supply chain is a challenge that brands must take seriously. Like most things within a global supply chain, it’s complicated. Reaching internal alignment on the need to be more transparent is much easier than obtaining the information required.
India’s cotton imports have jumped sharply. The high minimum support price is holding domestic prices at an elevated levels despite weak demand. With domestic prices remaining artificially higher than international prices, cotton imports may rise further.
Cotton yarn exports have fallen owing to low demand. Yarn exports fell 40 per cent month-on-month in July, largely due to an 80 per cent fall in demand from China which has entered into the second phase of the free trade agreement with Pakistan. The pact includes cotton yarn which directly competes with India.
India’s apparel exports are seeing a moderate recovery with the stabilising demand from the United States. The US-China trade war seems to have had no major impact as the apparel exported by China for July were 35 per cent higher than those in the previous month. India is yet to see the benefit in the trade war, as only a ten per cent m-o-m increase in exports was recorded in July. Exports to the EU market have been adversely affected by the preferred access to competing nations like Bangladesh and Vietnam. These could make it increasingly difficult for India’s apparel exporters to maintain their competitiveness in the EU.
The global fashion industry is in a state of flux. As one of the more cost-sensitive sectors, the fashion industry is generally quick to respond to shifts in global markets and trading conditions. The sector’s supply chains, for example, have undergone shifts even before the US–China trade tensions. With production costs increasing in China, textile and garment makers were already relocating manufacturing operations to other lower-cost Asian countries. The US–China tariff war is now accelerating this trend, while Britain’s impending exit from the European Union is keeping global industry players on their toes.
These uncertainties have taken a toll on the trade growth outlook for the consumer fashion goods sector, which deteriorated significantly across key markets over the past quarter. At the same time, clothing exports from Bangladesh, Vietnam, and Cambodia have been on the rise. The value of these countries’ exports jumped 11 per cent, 13 per cent, and 14 percent respectively during 2018. In Bangladesh, the world’s third-largest clothing exporter ahead of Vietnam, the fashion sector now dominates outbound trade from the South Asian country. Europe is another beneficiary of the fashion industry’s changing supply chain. Already the second largest exporter of both clothing and textiles, the EU saw increases of 11 per cent and seven per cent respectively during 2018.
According to a study released by the European bank for reconstruction and development (EBRD), United States is the biggest destination for Jordan apparel exports as the country exported about $1.2 billion worth of goods to the United States.
According to Munir deyeh, President of Jordanian textile and apparel conglomerate, domestic apparel sales in Jordan fell by 60 per cent in 2018.
The statistics of the Jordan-based Value Chain Analysis (VCA) Garments reveal that the country’s apparel industry now has 85 large-scaled enterprises and employs 95 per cent of its labors. Most of these apparel companies are foreign-funded enterprises, joint ventures or holding companies, whose apparel is mainly exported to the United States, accounting for 95 per cent of its total apparel exports. Most of Jordanian apparel factories are located in North Jordan, followed by the central and Southern regions.
Major African cotton producer Mali expects to increase its output to 1 million tonne annually within next two to three years as it plans to introduce new cotton varieties to boost yields. The country is targeting a record 2019/20 cotton crop of 800,000 tonne this year which is expected to make it the top producer in Africa, edging out rival Burkina Faso.
The so-called “Cotton 4” African producers - Mali, Chad, Benin and Burkina Faso - are meeting with other member states at the World Trade Organization in Geneva this week to discuss measures to promote trade. One of the key topics they hope to address is the reduction or removal of billions of dollars of state subsidies which they say create an uneven playing field for exporters.
The United States and Brazil are the world’s top exporters of cotton, with C4 countries together ranking in fifth position with about 1 million tonne in annual export. But proportionally cotton is a bigger contributor to African producers’ budgets and they are also taking steps to encourage more investment in creating African textiles, rather than just exporting raw cotton.
Fynd has launched Uniket. This is a direct-to-retail solution which will enable shopkeepers in Tier II and Tier III cities to grow their business by getting direct access to the brand’s inventory and the flexibility to buy anytime, anywhere and in any configuration they like. Uniket also enables a shopkeeper to buy in single pieces rather than buying complete sets from a typical wholesale market. Through Uniket, Fynd provides shopkeepers with their own free website and app with a selling capability of over 50,000 styles from 50 brands. Shopkeepers no longer need to worry about customers leaving their shop dissatisfied due to a lack of choice in their favorite brands. By downloading the Uniket store app, shopkeepers can now keep a minimal inventory in their shop, of brands that are in high demand, and also offer delivery of these branded and quality stocks to their customers’ doorstep. The Uniket store app offers up to 45 per cent margin on bulk orders and 15 per cent commission on customer orders.
Uniket’s aim is to tap the unorganised retail market, support shopkeepers and offer a seamless shopping experience to customers across the country. Uniket has on boarded 6,500 stores and has established its presence in 350 cities across 24 states across India.
