FW
Indonesia can reduce its import of textile raw materials by urging textile product manufacturers to switch to cellulose fiber. Currently, the country imports all raw materials to produce cotton-based textiles. Requirement for 80 per cent of synthetic fiber or polyester raw materials is been met by domestic industries, while the remaining 20 per cent is still imported.
The Ministry of Industry estimates a number of new factories will enter the market to provide raw materials. This will be supported by the national industry's ability to produce high-quality rayon as plants for producing the raw material for rayon fiber can be harvested in relatively shorter ages in Indonesia compared to countries that have four seasons. Meanwhile, investment commitments in upstream petrochemical sector will make Indonesia independent in procuring fiber. The Ministry of Industry, in the next three and five years, will also encourage synthetic fibers as raw materials.
Garment manufacturers in Vietnam are trying to capture the domestic market. They are developing and introducing new products for local consumers and turning to becoming original design manufacturers. They are investing in new technologies and focusing on new product development. As of now the market is predominated by global brands.
Spending on garment products accounts for about six per cent of Vietnamese consumers’ total spending, indicating that the market holds great potential for domestic enterprises. These companies are attempting to raise their market share from ten per cent to 30 per cent. Despite their strength in exports and being the world’s third largest garment exporter, Vietnamese garment companies have yet to tap into the domestic market in a significant way. Most companies focus on developing stores in major towns and cities without adequate attention to the rural market.
Vietnamese garment makers need to renovate their management methods and equipment while ensuring quality and affordable prices of their products. They also need to focus on designs, building brands and expanding the retail network in order to increase their competitiveness and capture the domestic market share.
One company has opened nearly 200 fashion outlets throughout the country featuring a wide variety of products. Some companies are introducing their own brands to the market.
As per the General Department of Vietnam Customs, the country has imported cotton worth over $2 billion during the first eight months of 2018. Of this, imports from the US exceeded $1 billion. This increase in cotton imports was attributed to growth in garment and textile exports, as Vietnam depends on nearly 100 per cent imported cotton materials. Vietnam plans to buy over $3 billion worth of cotton this year, up $700-800 million against the previous year. The country has also set a target of earning $34-35 billion from garment and textile exports.
Last year, the textile and garment industry gained a year-on-year increase of 10.23 per cent in export value to $31 billion, beating its target set at the beginning of the year of $30 billion.
As per RIA Novosti reports referring to Dilbar Muhamedova, Head of the Department of Strategic Forecasting of UzTekstilProm (Uzbek Textile Industry) Association, Uzbekistan plans to stop export of cotton fiber and ensure its full processing in the domestic market by 2025. The industry, in 2018 will process about 520,000 tonne of cotton fiber with the current design capacity of 720,000 tonne. In March this year, Shavkat Mirziyoye, President, Uzbekistan announced plans to reduce cotton exports and increase its processing in the domestic market. The country, every year, produces about 3.5 million tonne of raw cotton and 1-1.2 million tonne of cotton fiber. About 50 percent of the produced cotton fiber is exported.
Refunds of VAT and GST will benefit denim fabric maker Nandan Denim by Rs 20 crores annually. This subsidy benefit is likely to be recognised by the company from Q2. Nandan Denim reported a profit of Rs 5.23 crores for the three months ended June compared to Rs 16.31 crores in the same period a year ago. Net sales were Rs 359.62 crores during the three months ended June compared to sales of Rs 424.44 crores a year ago.
Power subsidy will be around Rs 4 crores to Rs 5 crores on an annual basis. And GST will be around 2.5 per cent of the sales made in Gujarat. Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.
The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material. A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover.
The Sri Lankan Board of Investment (BOI) has approved setting up of six apparel factories in the Northern region. These factories will be set up with an investment of Rs 8 billion and provide employment to 7,917 workers. The six apparel plants include: Omega Line, Hirdaramani Fashion, Hirdaramani Clothing, Timex Garments, MAS Active and MAS Intimates.
Another 15 projects in different sectors are also operational and represent investments of Rs 16.3 billion and have employed about 837 workers in the Northern region. Two new projects of the BOI currently awaiting commercial operation, five projects are looking forward for implementation, two have been awaiting the signing of agreements while five are awaiting for approval.
Pure London will be held from February 10 to 12, 2019. With an international audience the three-day seasonal show will strive to help the industry navigate global issues in the fashion industry, including the storm that is Brexit, by providing a platform to answer the key questions many are too afraid to ask.
Visitors will continue to see over 700 women’s and menswear brands offering ready to wear and premium collections, footwear and accessories as well as the recently rebranded Gen Z section. Pure London will continue to evolve and build on the progress made towards creating a sustainable future for fashion. The show will feature a graffiti style pledge wall for visitors to interact with. A unified festival of fashion will be created across London, offering collaborative solutions to benefit visitors.
Pure London is UK's leading trade fashion buying event, representing women’s wear, menswear, footwear, accessories and young fashion. The show offers buyers from UK and international independents, multiples, department stores, etailers and mail order the opportunity to discover collections launching for the season ahead, attend catwalk shows and hear from their peers and other industry experts in valuable seminars and workshops. Pure London is an ITE Group event. ITE is one of the world’s leading organisers of international exhibitions and conferences.
Jinqing Cai has been appointed President of Kering Greater China. Her mission will be to consolidate Kering’s position in Greater China and strengthen the links between the group and its local partners. Cai will be based in Kering’s Shanghai office and will report to Jean-François Palus, Group Managing Director, Kering.
Starting her career in 1993 in New York as an associate in a strategic consulting company, Cai later moved to Hong Kong to work for private equity fund management companies, k1 Ventures and Lark International Entertainment. In 2002, she co-founded the PR firm New Alliance Consulting International in Beijing and managed the highly successful inaugural annual conference of Boao Forum for Asia.
In 2005, Cai became the founding partner of Brunswick Beijing, playing a central role in the PR firm’s high profile cross-border transactions. In 2012, she joined leading auction house Christie’s as the first Managing Director of Christie’s China. She was appointed President of Christie’s China in 2014 and then Chairman in 2016.
Cai has a bachelor’s degree from Wellesley College in Massachusetts and a Master’s in Public Affairs from Woodrow Wilson School of International and Public Affairs, Princeton University.
Sritex is an Indonesian textile company that exports military uniforms to 35 countries. Half of its garment sales are military uniforms, although it also supplies fashion brands such as H&M. While some Indonesian companies have been buffeted by a volatile local currency, Sritex has managed to shield its supply chain from currency risks.
Sritex is less exposed to currency risks because it produces its own raw materials in its home base for yarn spinning, weaving and garment finishing. Indonesia’s currency, the rupiah, is one of emerging Asia’s worst performing currencies this year, having lost nine per cent against the dollar and is trading at its lowest for 20 years, hurt by rising US interest rates and global trade tensions.
While currency depreciation should in theory benefit exporters, it is often not the case in Indonesia where an estimated 70 per cent of raw materials used by manufacturers have to be imported. Sritex has a RS&D center in Germany, which has helped it develop special fabrics for the German military, such as those that are able to offer protection from mosquitoes.
Sales at Sritex jumped 35.6 per cent in the first six months and net income rose nearly 70 per cent, which would support the company’s plan to invest in a new weaving factory next year.
Makers of worsted fabric in India are set to face a squeeze in margins this year as global wool prices have reached a new high. International wool prices have increased by up to 180 per cent in the last two years, but Indian worsted fabric makers are unable to pass it on to consumers. Indian consumers are not ready to pay for the price rise and so manufacturers are using more manmade fiber.
Leading makers of winter garments, such as Raymonds, Reid and Tailor, Indoworth India, Jayashsree Textiles, OCM and Reliance are now increasingly moving to polyester viscose from polyester wool to lessen the impact of high wool prices on their margins. Wool is categorised in terms of fiber diameter of between 14.5 microns to 32 microns, and prices are higher for lower micron wool. The price has increased by 70 per cent for the category of wool used by the knitwear industry.
There is a sharp gap in the demand for and supply of wool due to adverse climatic conditions in Australia and it has caused a major rise in wool prices in the last couple of years. India produces about 2.2 million meters of worsted fabric every month.
