FW
MAS has become the first company from Sri Lanka to join the ZDHC program. ZDHC is aiming to achieve zero discharge of hazardous chemicals in the textile and footwear value chain. The new partnership makes way for both MAS and ZDHC to create a positive impact across the group’s value chain and is aligned with the company’s own sustainability plan which includes an ambitious internal goal to reduce hazardous chemical use in its manufacturing processes, products and its own supply chain by 2025.
MAS is one of the world’s most recognized design-to-delivery solution providers in the realm of apparel and textile manufacturing. It has 50 manufacturing facilities across 15 countries, and design locations in key style centers across the globe. Over 88,000 people are involved in its operation.
The group has expanded its product portfolio to bras, shape wear, performance wear, sleepwear, swimwear and active wear as well as its own fabric supply chain. The customer portfolio includes brands such as Victoria's Secret, Nike, Lululemon, Calvin Klein, Marks & Spencer, Patagonia, Speedo and others.
MAS Holdings is driving a culture of sustainability among its workforce, 70 per cent of whom are women. Now the apparel conglomerate is broadening its mandate by seeking out greater collaboration on projects that will position Sri Lanka as a hub for sustainable manufacturing.
American sportswear brands are beginning to experiment with manufacturing at home. What they do is limited run collections that test both the process and the prices that customers are willing to pay for domestic goods. Often, the manufacturing processes that are being utilized in the US are new technologies that aim to disrupt decades-old processes. Disruptive because the broader sports industry still makes a vast majority of goods abroad, mostly Asian nations. Local manufacturing is seen as competitive as it allows products to be made at a tighter timeline and for a local audience. The aim is to bring jobs back to America and to tighten American brands’ supply chains around the world.
Under Armour is one such brand. It’s the second largest sports brand in the US. It’s committed to designing and manufacturing apparel and footwear out of a 35,000-sq. ft. facility that opened last year.
Under Armour isn't the only sports brand that is experimenting with US-made processes. Adidas plans to build a 74,000 sq. ft. production factory that would focus on running footwear. It is expected to be fully functional in the second half of 2017 with an initial targeted production of 50,000 pairs of shoes this year. Reebok is also bringing some manufacturing capabilities to the US. It plans to open a manufacturing lab that relies on futuristic liquid material and 3D drawing.
The Kenyan garment sector remains relatively small, with just 40,000 workers. But if the African Development Bank gets its way, this is set to change. In 2015, it launched an online business platform designed to boost small businesses in the fashion and textile industry. The bank believes the sector could generate 4,00,000 jobs in sub-Saharan Africa by 2025.
In Kenya, like many other African countries, the domestic textile industry has suffered because of the race to the bottom by global brands seeking out low-cost labor. Most artisans are trapped in domestic markets without links to international trade. Now some companies are trying to challenge this norm by sourcing artisans from marginalised communities to produce their fashion lines. There are initiatives that connect Kenyan artisans to luxury brands such as Vivienne Westwood and Stella McCartney in a bid to pull high fashion houses away from mass production factories.
Community groups, recruited from existing networks like self-help and women’s groups, produce 1,00,000 units a year, mostly bags and accessories. A portion of the profits will be reinvested into further training, as well as providing support to families, for instance, through improved childcare facilities.
There is another initiative which enlists established western designers with an existing client base to come up with designs for traditional artisans in Kenya to produce. The hope is this will ensure a sustainable market.
Italian producers of knitting yarns are seeking new clients and new markets on the strength of craftsmanship, creativity and innovation. Over the past few years, the high-end market segment has been penalized by Russia’s difficulties and China’s consumption crunch.
In 2016 turnover for Italy’s yarn industry was down largely due to a drop in exports while imports grew. A decrease in exports is predicted for 2017. Fashion trends do not favor knitwear and the US is not doing well in the retail sector. Some customers have been wiped out by recession. Others are having a hard time and have reduced orders.
So luxury companies have repositioned themselves in a slightly lower segment. Fancy yarns are an increasing focus for Cariaggi, which specializes in high-end carded and combed yarn. Lineapiu has presented a yarn mixing paper and polyamide fiber, providing an organdy effect that recalls Japanese washi paper, used in origami. This type of yarn is seen as broadening opportunities for the fashion industry. Lineapiu will launch 3D fashion components to recoup in 2017 the loss suffered in the US last year.
For Pecci Filati exports are 65 per cent of its turnover. The company launched a new brand Filati Naturali two years ago.
Dutch denim brand G-Star Raw is using Bluesign components in its collection, from zippers and rivets to labels and linings. Bluesign is a sustainable technology provider. G-Star Raw will launch Bluesign products this year. Components will be sourced from Bluesign-approved suppliers and produced according to Bluesign criteria. G-Star has already introduced the fabric into its supply chain.
In 2017, G-Star also plans to begin launching a new sustainable production innovation every other year. The innovations will be based on either materials or washing levels—steps that will help close the loop in denim. In 2013, G-Star was the first denim brand to join Bluesign and allowed the sustainability solutions provider to set the standard for responsible chemical use. In 2015, the brand partnered Calik, the first Bluesign denim mill. One year later, G-Star and Calik debuted the first Bluesign-approved denim fabrics, which are in the market now.
G-Star combines Bluesign’s chemical use guidelines with support from the ZDHC Foundation and its own individual action plan, which entails a team of technical engineers working with G-Star’s 28 key suppliers (50 per cent have been partners for over ten years) to clean up their chemistry. The brand sees this as a challenge to detox its denim processes and the industry.
Copenhagen Fashion Week is being held from January 31 to February 3. The two big fashion fairs, CIFF and Revolver, are running from February 1 to 3. CIFF is holding its biggest fair to date, peppered with a promising line-up of brands and agencies and a comprehensive program of special projects and collaborations, including installations. CIFF is also hosting a roster of fashion shows by Danish designers.
The show’s Raven and Raven Projects area houses a selection of global menswear, with highlights such as Cottweiler, Phire Wire, Xander Zhou and Axel Arigato. Japanese retailers have brought several brands to the show and Los Angeles-based street wear brand 424 is displaying a collaborative collection including clothing, but also candles, perfumes, posters, bags and tools.
Revolver is presenting a variety of new brands this season, including Swedish brands, Kings of Indigo from the Netherlands and four new Danish brands. These will join Scandinavian favorites such as Soulland, Saks Potts, Whyred and Mads Norgaard Copenhagen. For the second time, Revolver is hosting a mini-edition of White Milan. White Inside Revolver presents a selection of Italian brands including names such as PDR Phisique du Role, Corelate, Nine In The Morning, OOF, Delirious, Virginia Bizzi, Aalto, Sides Wow and Oc Lab.
World cotton output is expected to rise by two per cent in 2017-18, International Cotton Advisory Committee (ICAC) in its first estimate of the 2017-18 crop. The growth is the result of an increase in planted area, which is expected to grow by five per cent after two seasons of contraction. But after improving by 13 per cent in 2016-17, the world average yield is projected to decline by two per cent.
In 2016-17, the cotton area in India, the largest cotton-producing country, fell by 12 per cent due to competition from food crops. However, the average yield recovered by 16 per cent and production in 2016-17 is estimated to rise by two per cent. In 2017-18, India’s area is forecast to recover by seven per cent as firm domestic cotton prices and less attractive prices for competing crops attract more farmers to cotton.
Cotton area in China has declined for five consecutive seasons. However, output has not fallen as quickly due to the fact that the share of cotton grown in Xinjiang, which has higher yields than other producing regions in China, has increased considerably. In 2017-18, China’s cotton area may expand by three per cent. Following a season of higher than expected yields and firm cotton prices, cotton area in the United States is expected to expand by 10 per cent in 2017-18.
Apparel Textile Sourcing Canada (ATSC), will be held in Canada from August 21 to 23, 2017. This is the first Canadian trade show to be launched by an online B2B trade platform and is also the largest being held in the country. This is the second year of the show. The 2016 show had more than 200 booths of merchandise and more than 1800 attendees. Canadia’s import of clothing, textile and footwear touched an all-time high in 2016 at CAD$2.1 billion. With positive business sentiment, ATSC has increased 50 per cent exhibit space at Toronto’s International Centre for this year’s show.
The event connects Canada to the world players. It attracts to Canada hundreds of apparel and textile manufacturers from around the world including China, India, Bangladesh, Pakistan, the US, the UK, Mexico, Colombia, Peru and more. Through an impressive platform of seminars and sessions, attendees can make global industry connections, and gain the insights needed to navigate the international sourcing process.
New for 2017 will be a leading-edge trends showcase featuring the latest and greatest in apparel and textiles and a high-profile roster of international speakers. A fashion show and design contest will also be held, featuring items available to be sourced at the event, as well as fashions from local designers and students.
The growth of the Canadian market and its unique business opportunities are attractive to Chinese manufacturers. An increased number of high-quality Chinese producers will be seen at the 2017 show.
"Though a marginal increase, yet the entire textile industry is in support of the measures allotted by the FM Arun Jaitley in the Union Budget. Total budget allocation for the textile ministry is Rs 6,226.5 crores for fiscal 2017-18 against last year’s revised allocation of Rs 6,286.1 crores. Budgetary allocation for powerloom, silk and wool textile sectors have increased and handloom and handicraft sector were also allocated sizable amount of funds. Salient features include:"
Though a marginal increase, yet the entire textile industry is in support of the measures allotted by the FM Arun Jaitley in the Union Budget. Total budget allocation for the textile ministry is Rs 6,226.5 crores for fiscal 2017-18 against last year’s revised allocation of Rs 6,286.1 crores. Budgetary allocation for powerloom, silk and wool textile sectors have increased and handloom and handicraft sector were also allocated sizable amount of funds. Salient features include:
Technology upgradation support
Government’s flagship technology up-gradation scheme ATUFS receives an allocation is Rs 2,013 crores for 2017-18, which has been welcomed by the industry at large. Scheme for in situ upgradation of plain power looms received Rs 68.31 crores, which is a big boost form Rs 48 crores last year. Under this scheme, power loom owners would get support to upgrade weaving technology without replacing the whole loom.
Incentives to boost competitiveness, employment, skilling
Allocation under Remission of State Levies has increased sizably to Rs 1,555 crores. This scheme includes refund of state taxes to garments exporters to make the industry competitive and boost employment. Fund allocation under Pradhan Mantri Paridhan Rojgar Protsahan Yojna is Rs 200 crores. This new scheme provides the Employee Pension Scheme contribution of 8.33 per cent of the employers for all new employees enrolling in EPFO under PMRPY for the first three years of their employment. This will boost employment by incentivising employers and improving competitiveness. Integrated Scheme for Skill Development for the textile sector receives Rs 174 crores, which is operational for last several years for under skilled factory workers.
Additional measures
Basic custom duty on Nylon mono filament yarn (for use in long line system for Tuna fishing only) has been reduced to 5 per cent (from earlier 7.5 per cent). Textile and apparel industry would benefit from Trade Infrastructure Export Scheme (TIES) with an allocation of Rs 3.96 lakh crore. Higher income and spending by rural India will stimulate consumption of textiles and apparels.
Reduction of corporate tax by 5 per cent to MSME (turnover below Rs 50 crores) will benefit textile and apparel industry as majority of enterprises fall into this category. Further, additional allocation to banks for NPA accounts, cashless transaction, labour reforms and relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the industry.
A positive Budget says industry
Prabhu Damodaran, Secretary, Indian Texpreneurs Federation says the Budget focuses on aggressive spending in infrastructure, which will reduce logistics expenses. Ajay Sahai, DG Federation of Indian Export Organisations, observes the Budget is a roadmap for textile sector. Infrastructural development will not only boost domestic textile market but also ease exports by reducing logistics costs. A new and restructured central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme has also been announced.
Ujwal Lahoti, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL) welcomed the Budget and appealed to restore some of the incentives relating to interest subvention for merchant exporters and cotton yarn and MEIS benefit for cotton yarns. The job creating package for textile sector found a worthy mention in latest Economic Survey 2016-17. However, the made-ups sector which is included in the package still awaits the rates on ROSL scheme (Refund of State Levies). He said he hoped the rates will be announced soon so that the sector could take advantage of this path breaking scheme.
He further stated that the Economic Survey 2016-17 has expressed concern on Indian exporters of garments/textiles being disadvantaged on account of absence of Free Trade Agreements (FTAs). The Survey estimated an FTA with EU and UK can lead to almost 1 lakh additional jobs being created in the garment sector apart from an increase in exports of $2 billion. If fabrics and made-up industries are also included in this calculation, the exports can easily increase to $3.5 billion and an additional 1 million jobs can be created. With these FTAs taking time, government should immediately consider giving an additional benefit of 3 per cent MEIS for exports of made-ups to EU so that the adverse impact can be mitigated to some extent, till such time the FTA is signed.
M B Raghunath, President (Sales & Marketing), Mafatlal Industries welcomed the Budget and said the garment sector will get a boost on long term basis due to 35 per cent increase in government expenditures in Rural Infrastructure Development Rural investment and rural economic improvement will boost demand for textiles and garments. Small & medium scale textiles and garment manufacturing companies will benefit. Indirect taxes are not addressed by the FM because the same will be addressed at the time of GST implementation.
“An inclusive Budget with a clear focus on agriculture, infrastructure, digitization and employment generation. Medium and Small Enterprises (MSMEs) are the backbone of the industry and generate the maximum employment. Tax cut for the MSMEs with an annual turnover of Rs 50 crore is a welcome gesture and will drive the growth engine as most of India's companies will get this benefit of 5 per cent tax reduction which will be a relief for them,” says Deepak Chiripal, CEO, Nandan Denim.
Weighing in pros & cons
Textile industry is one of the largest employers in India and contributes about 14 per cent to industrial production, 4 per cent to the GDP and gives direct employment to around 45 million workforces. Expanding tax net by increasing tax limit slab up to Rs 5 lakh will give more money into low-medium income groups. This move will give more money into hands of such people which will trigger more demand in markets. After short-term sluggish demand due to demonetisation, this will surely help to boost the market sentiments. Considering the benefits provided to the poor including affordable housing, it is a good budget for the poverty stricken as it mainly focuses on the rural economy.
ZDHC Foundation has launched a new online portal for chemical management training. The ZDHC Academy enables apparel brands and textile manufacturers to receive certified training to improve their knowledge and practice of responsible chemical management.
The Academy claims the release of the platform is significant for the ZDHC programme as it shifts its focus from the development of tools to implementation. The Academy is entering a critical phase of collaborative implementation.
ZDHC's training co-lead and senior corporate responsibility manager at UK retailer Tesco said that developing safer chemical management standards is one thing, but to truly eliminate hazardous chemicals, the next step is to educate and support those working in mills, factories and even within brands, to understand how to implement these standards.
Aimed at manufacturers and suppliers, the ZDHC Academy is currently offering its first course ‘An Introduction to Chemical Management in the Textile Industry’. The first training courses will start in February in countries like Bangladesh, India, Italy, Turkey and Vietnam.
Going forward, the ZDHC Academy will provide accredited training modules in up to 20 countries and expand to include additional courses and e-learning possibilities. The platform offers the ability to organise and administer tailor-made chemical management training modules and incorporates brand specific requirements.
