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Jharkhand wants investors for the textile, apparel and footwear sectors as these have good growth potential. As per chief minister T Raghubar Das these sectors are the second largest employers in Jharkhand after agriculture. By products of textile, apparel and footwear are used for making cosmetics, biomedical products and fertilizers. These not only fetch revenue but also generate large scale employment.
Jharkhand’s tussar production increased to 3,238 metric tons in 2016-19 from 143 metric tons in 2007-08. The tassar culture employs 1.80 lakh farmers and 30,000 weavers in the state. The state is planning to construct a textile park. It is also interested in starting a footwear design development institute.
Orient Craft opened in 1972 with merely four people and an investment of Rs 15,000. Now, over 32,000 people are working under the company. The company will invest Rs 3,000 crores and open six skill development centers. Orient Craft will train rural youths and give them employment. In the beginning, migration- affected districts will be taken up for training local youths.
Adesh Gupta, CEO of Liberty Shoes Limited points out, India currently produces 125 crores shoes. Additional capacity of 400 crores will require in next 10 years. Shahi Exports has units in nine states and will soon open a unit in Jharkhand as well.
Italy is losing its iconic brands to foreign, usually French, groups. It is becoming increasingly hard to create a luxury conglomerate in Italy. And companies have to think hard and strategies. Giorgio Armani has created the Giorgio Armani Foundation. Its heirs, three nieces and nephews, are already on the board of directors of the company.
OTB (Only the Brave) controls Diesel and a portfolio of brands including Marni, Maison Margiela, Viktor & Rolf and Paula Cademartori. The founder is already thinking of the future, of his children, and how to ensure a smooth transition in management, and one of the options under consideration is a possible public listing sometime over the next few years.
Similarly Prada opted for a public listing on the Hong Kong stock exchange in 2011. Versace sold a 20 per cent stake to the US fund Blackstone in 2014. Zegna redistributed the ownership stakes among the grandchildren, heirs to the company, in 2014.
The fact remains that these are businesses with broad appeal, to private equity funds and to international investment firms. They are courted by international stock markets. There's no lack of options. The main thing for these companies is to remain attractive by continuing to show steady growth.
Over 95 per cent of the total investors in the Bangladesh apparel industry are local. Bangladesh has a number of foreign investors in the textile and apparel sectors. The country encourages foreign investments in high value added items, non-traditional apparel items and, in the primary textile industry, especially woven textiles.
Special economic zones will be awarded to countries like UK and China. Meanwhile Bangladesh is also working on decreasing its dependency on imports. There has been significant capacity building in the area of yarn and fabric manufacturing, especially for knitwear items. Denim production capacity has also got a significant boost in the last decade. Almost 50 per cent of the demand for denim fabric by the export-oriented garment industry is being fulfilled by domestic denim mills. Besides, Bangladesh produces almost 100 per cent of the accessories it needs.
However, fiber has to be imported since the country does not grow cotton or petrochemical products. It is also lagging behind in woven fabric production. Though Bangladesh produces for global brands, there are hardly any brands it has developed. The next step is to correct this. Factories are now getting prepared for the next leap forward. In-house design development, presentation of collections to buyers, investments in high value added production capacity are happening in the apparel industry.
Trade Show Executive Magazine has bestowed Texprocess Americas with two awards for the Fastest 50. Every year, winners are selected based on the highest percentage of growth in each of the following categories; net sq. ft. of paid exhibit space, number of exhibiting companies and number of attendees.
This year, Texprocess Americas got home awards for net sq. ft. of paid exhibit space and number of attendees award for the second time. Dennis Smith, President and CEO, Messe Frankfurt North America feels making to the Fastest 50 list once again is a sign of success and underlines the commitment to US industries that Messe Frankfurt North America serves.
Texprocess Americas, co-produced by SPESA, was held at the Georgia World Congress Center, in Atlanta, Georgia from May 3to 5, 2016 alongside co-located shows Techtextil North America and JEC Americas. The three-in-one show attracted over 9,000 visitors including top industry executives, buyers, designers, engineers, technical directors, plant managers, product development managers, media and more. The Georgia World Congress Center will host Texprocess Americas again with Techtextil North America from May 22-24, next year.
Some major European fashion brands including H&M, Inditex, C&A and Tchibo will skip the Dhaka Apparel Summit scheduled which begins on February 25. The reason: repression of unions in Bangladesh, they have said. All four have said that they will not be attending the Apparel Summit, citing the current climate of repression against unions as incompatible with activities to promote the industry. This was declared in a joint release by IndustriALL Global Union and UNI Global Union from Geneva.
It said that the absence of global brands at the Apparel Summit sends a clear message to the Bangladesh garment industry that so long as workers and trade unionists are being arrested and intimidated for speaking up for the rights of garment workers, there will be no business as usual. Said to be an international event, the Dhaka summit will be inaugurated by Bangladesh prime minister Sheikh Hasina.
IndustriALL Global Union and UNI Global Union, two global platforms of labour rights groups, are signatories to the Accord on Fire and Building Safety in Bangladesh formed following the Rana Plaza factory collapse in 2013 that killed more than 1,100 apparel workers. Along with two global trade unions, the accord was been signed by over 200 apparel brands, retailers and importers from over 20 countries in Europe, North America, Asia and Australia.
Recently, global labour rights groups urged all affiliated trade unions across the world to participate in the campaign sending protest letters to Bangladeshi embassies or directly to the Bangladesh government demanding release of jailed trade union leaders. Responding to the call, trade unionists, workers and NGOs staged protests outside Bangladesh embassies and consulates in over 16 cities, including Berlin, Geneva, London, Brussels, the Hague, Washington DC, New York, Ottawa, Kathmandu, and Seoul, the release said.
The Indian handicraft and gift fair (IHGF) is on at New Delhi, February 16 to 20. IHGF is amongst Asia’s largest gifts and handicraft fair. It is held twice a year, spring and autumn. It is a distinctive business platform for importers, wholesalers, distributors, retailers, fashion designers, potential franchises, mail order companies and a few more to source an unparalleled variety of handicrafts, gifts and lifestyle products from a cross section of handmade manufacturers from India.
Over 2,750 exhibitors, spread over 190,000 sq. mt. are offering an entire range of home, textile, lifestyle and fashion with traditional artistic finish in perfect harmony with modern designs and contemporary colors. IHGF has carved out its presence in the world by offering huge sourcing opportunities to international buyers and agents. It has now become Asia's one stop sourcing event since its inception in 1994 while providing extended a business platform to small and medium exporters.
The event has attracted buyers from renowned international houses having a large number of stores and domestic retail buyers from many leading retail chains of India and e-commerce companies. India will introduce brands in handicraft products similar to handloom brands. The exercise will generate better quality assurance and certification and selling of handicraft products in international markets.
"With its global supply chain, international talent pool and dependence on new wealth creation, upward socio-economic mobility and optimism to fuel spending, fashion has benefitted greatly from globalization. Now it stands to suffer in a new political reality that could give rise to new curbs on the free movement of people and products, and breed greater uncertainty at a time when many consumers are already feeling less secure, says Alexander Betts, Leopold Muller Professor of Refugee & Forced Migration Studies, Oxford University."
With its global supply chain, international talent pool and dependence on new wealth creation, upward socio-economic mobility and optimism to fuel spending, fashion has benefitted greatly from globalization. Now it stands to suffer in a new political reality that could give rise to new curbs on the free movement of people and products, and breed greater uncertainty at a time when many consumers are already feeling less secure, says Alexander Betts, Leopold Muller Professor of Refugee & Forced Migration Studies, Oxford University.
New trade barriers
For fashion, the most drastic consequence of the political shift away from liberalism is the resurgence of protectionist trade policies. Many fashion businesses have spent years building up global supply chains and outsourcing production to manufacturing hubs in China and South East Asia. In fact, about 97 per cent of clothing and about 98 per cent of shoes sold in the US are imported from overseas, according to the American Apparel and Footwear Association.
After resuming office, the first thing Donald Trump did was to pull out the Trans-Pacific Partnership, a 12-nation agreement, designed to encourage trade between a bloc of countries — including Vietnam, Japan and the US — by reducing import and export duties. Trump has also warned to introduce punitive tariffs and quotas to restrict the importation of goods from countries like Mexico and China.
In a bid to encourage businesses to reshore manufacturing, the US president has backed a so-called ‘Border Adjusted Tax’ prompting fierce opposition from a coalition comprising over 100 companies from Nike to LVMH. The measure would be ‘absolutely crippling’ for businesses, says Robert Burke, Chief Executive & Chairman, Robert Burke Associates. It would virtually put businesses out of business immediately… Brands have spent years & years developing production and mills in foreign countries. They are not set up for a quick change on this. If there is going to be any kind of evolution in bringing jobs and production back to the US, it has to be done strategically.
Reshoring production would enhance the competitiveness of ‘Made in America’ campaign, which have been gaining momentum. But the West — after losing ground to Asia for decades — currently lacks the skilled labour pool and the modern equipment necessary for mass garment manufacturing. What’s more, the high cost of labour in the US and Europe would also eliminate product margins and make it impossible for companies to maintain current prices.
Restrictions on talent migration
The decline of liberal values across Europe and the US has also manifested itself in calls to restrict immigration. Less than two weeks after taking over as president, Donald Trump issued a highly controversial executive order barring anyone from seven Muslim-majority countries — including Syria, Iraq, Iran and Sudan — from entering the country. (The ban has now been lifted following legal challenges.) Meanwhile in the UK, Prime Minister Theresa May has refused to guarantee EU citizens living in the UK the right to remain after Brexit. In turn, British citizens’ freedom to live and work anywhere in the EU will almost certainly be revoked. For the fashion industry, which depends on a global talent pool, restrictions on immigration are bad news.
According to Floriane de Saint Pierre, Executive Search Consultant, brands have a worldwide audience. They need to have an understanding of the world. In order to do so, they must be able to access and hire the most qualified profiles in every field, from entry level to C-suite. Companies absolutely need to hire the talent they need — so to have free movement of talent.
A tightening of immigration policy will likely not have a huge impact on top-level personnel. Top-level design talent usually doesn’t have a lot of constraints to get a working visa in the US or Europe because they are very skilled individuals with a unique skillset. But some of the fashion schools that train top design talent‚ like London’s Central Saint Martins, would certainly suffer from stricter border controls.
In the UK, 15 per cent of workers in retail and related wholesale operations were born abroad, with 6 per cent coming from the EU, according to Oxford think tank Migratory Observatory. Across Italy and France, many of the highly skilled artisans working in the manufacturing ecosystems of large European luxury brands come from all over the world. Whatever the long-term policy outcomes, recent political shifts in the US and Europe are feeding increased anxiety for many, with serious implications for the emotionally-driven fashion industry. Ultimately, anything that limits free trade is not good for global business, remarks Mario Ortelli, Senior Research Analyst, Sanford C. Bernstein.
The Spring edition of PH Value China International Knitting Fair sponsored by China National Textile and Apparel Council (CNTAC ) and organized jointly by the Sub-council of Textile Industry, CCPIT (CCPIT TEX ) and the China Knitting Industrial Association (CKIA ) will take place this March in Shanghai. The organisers say, PH Value is committed to the knitting clothing and accessories, showing the latest developments in product and technology, coupled with fashion highlights in trend forecast.
The show, that has been created to directly support the growth of Chinese knitting industry, is a unique platform for the exhibitors to meet potential customers explore new market opportunities, and learn the next season’s trends. The organisers endeavour to make it a bridge for both exhibitors and buyers to develop win-win cooperation and support the growth of Chinese knitting industry.
PH Value is also seen as a service platform for the industry, inviting agents, retailers, franchisers, wholesalers, department stores, chain supermarkets, trade companies, as well as e-buyers to network with the attending brands. In addition, the exhibitors will share more than 100,000 professional visitors with the other four international shows taking place simultaneously. These include Intertextile Apparel Fabrics, CHIC, Intertextile Home Textiles and Yarn Expo. China International Knitting Fair Spring edition of PH value will be held from March 15-17 at at the National Exhibition and Convention Center in Shanghai.
With major apparel companies ramping up efforts to expand presence within the country and abroad, the fashion market in South Korea is expected to grow 3.3 per cent this year. The size of the domestic fashion market is predicted to reach 39.3 trillion won in 2017, up from 38.3 trillion won estimated for last year says a report by the Samsung Fashion Institute.
This marks the fourth consecutive year of single-digit growth. The market expanded 11.8 per cent on-year in 2011. A grim outlook has prompted major apparel companies to revamp their strategies, bolstering overseas expansions and mergers as a way to brace against the slowing market.
E-land has been a leader among the players in entering foreign markets, currently running some 7,300 stores under its 44 different brands in China with solid revenues. The fashion division of Samsung C&T Corp., the de facto holding company of Samsung Group, and LF, the apparel affiliate of LG Group, have both tapped into Asia's biggest country.
Industry say companies need to come up with a fresh approach for overseas markets, as distinguished items are a key to success in the cutthroat environment where consumers are already swamped with ‘Louis Vuitton and Cartier’. According to the Korea International Trade Association, South Korea's apparel trade balance remained in a deficit, with exports reaching $1.89 billion and imports totalling $8.33 billion.
‘Make it British campaign that seeks to involve Bristishers in ‘You make it’ is witnessing a rise in the number of requests from businesses looking to work with UK manufacturers. A survey by Make it British reveals 45 per cent of UK textile manufacturers say business is better than last year.
Explaining this Kate Hills, CEO and Founder of Make it British said her organisation has a wealth of high-end manufacturers in the UK who provide a valuable service to British designers and who rely on the skills, flexibility and location of these suppliers when developing their collections for London Fashion Week. Make it British has seen a surge in enquiries from people looking for advice on where to find UK manufacturers and how to work with them. For this Make it British has launched ‘Ask Kate’.
It’s a live interactive broadcast every Thursday when Kate Hills gives people the opportunity to ask questions in real time. As a part of the answers she gives plenty of essential tips and practical advice for businesses looking to make their products in the country.
Adding to that Caroline Rush, CEO of the British Fashion Council (BFC) observed that many of the British designers are already manufacturing product here in the UK and they frequently ask to make introductions and provide more information on the right production partners. The survey showed that many manufacturers are reporting increases in production of 25-50 per cent compared to 2015. Of the 95 UK textile manufacturers taking part, 30 per cent said they were receiving more enquiries now than prior to the EU Referendum.
Make it British organises an annual two-day event, Meet the Manufacturer, which showcases the return of manufacturing to the UK. It’s the only sourcing event exclusively for British fashion, textiles and homeware. This year it would take place on May 24 and 25 at the Old Truman Brewery, London and would boast of over 150 exhibitors plus a series of workshops and seminars, connecting manufacturers of textiles, apparel and leather goods with buyers, designers and retailers looking to produce quality British-made products.
