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Trade and business ties between Hong Kong and the Republic of Korea are set to strengthen with the launch of Hong Kong Trade Development Council’s (HKTDC) office in Seoul. The upgraded full-fledged office will further boost Hong Kong’s trade and business promotion in Korea. “Hong Kong and Korea share a long and close partnership,” said Margaret Fong, HKTDC Executive Director. New opportunities have emerged with the Belt and Road Initiative, the Guangdong-Hong Kong-Macau Bay Area development plan and Hong Kong’s recently signed a Free Trade Agreement (FTA) with ASEAN three more good reasons for Korean companies to expand their business in Hong Kong.
We welcome more Korean firms to use Hong Kong as a base to unlock the massive business opportunities that the Belt and Road Initiative and the Bay Area bring,” said Fong. “With the signing of the Hong Kong-ASEAN Free Trade Agreement earlier this month, Hong Kong can offer an additional platform for Korean companies to tap the ASEAN markets,” she added.
The Belt and Road Initiative launched in 2013 aims to reinforce infrastructural and financial links from Asia to Europe. Among the key financing bodies for Belt and Road projects is the Asia Infrastructure Investment Bank, of which Korea is a founding member and the fifth-largest shareholder. With its extensive international connections and world-class services, Hong Kong is a key connecting global businesses to opportunities on the Belt and Road and in the Bay Area.
The Seoul Office is among more than 40 HKTDC offices globally that help promote Hong Kong’s role as a platform for doing business with the Chinese mainland, Asia and the world. Major imports and exports between the two economies include semiconductors, electronic valves and tubes, as well as telecom equipment and parts. Korean companies in Hong Kong are involved in financial services, logistics, transportation and cosmetics, among other sectors.
Guess is currently following a strategy of expanding its presence in Europe and Asia while moderating its presence in the American market. The company is targeting millennials as the primary segment for its apparels, and to that end it is strengthening its digital presence and upgrading its omni-channel capabilities. It is also working to improve its website to improve and simplify the user experience.
According to CEO Victor Herrero, Guess' Americas Retail and Wholesale revenues were still in the red, down 13.4 per cent and 16.8 per cent, though operating margins improved thanks to a profit improvement plan.
Guess has issued its fourth quarter guidance and expects a consolidated net revenue increase between 10 and 12 per cent, GAAP earnings per share and adjusted earnings per share to be in range of $0.48 and $0.55. Full year consolidated net revenue is expected to increase between 6 and 6.5 per cent, GAAP EPS is projected to be between $0.36 and $0.43, and adjusted EPS is expected be in range of $0.56 and $0.63.
Guess has been directly operated in 982 retail stores in the Americas, Europe and Asia and is taking several steps creating a better balance between the American retail and wholesale businesses.
Depression has gripped the knitwear export cluster in Tirupur following a significant decline in exports, in terms of value, in October. Approximately 8,500 units are engaged in manufacturing of textile products and garments in the knitwear hub, apart from a large number of job-working units, the vast majority of them run by households.
And here lies the crunch. Experts say it is the job-working units that see the sword of Damocles hanging by a thread over their head and they may have to close shop as they are unregistered units. These units do not have an industrial licence nor any relevant qualifications to be registered under the new tax regime as they are in the unorganised sector, reveals an exporter.
In the last two months, some workers who turned-entrepreneurs have decided to re-join the workforce just to make ends meet, while others are in the playing the waiting game hoping that things will return to normal. Raja M Shanmugham, President, Tirupur Exporters’ Association reveals, the garment sector has reached its endurance limit. Any delay in government intervention in handholding the sector by way of reinstating the old duty drawback structure and restoring the remission of State levies under RoSL (Rebate of State Levies) would drive them out of business.
Data records readymade garment exports from the country have dramatically dropped, registering a negative growth from June 2017 as against the year ago period. It peaked at a negative growth of 41 per cent in rupee terms in October, registering a turnover of 5,398 crore as against 9,110.75 crore in October 2016. Exporters feel this situation can be avoided if the government extends a line of support as in the past. On the flip side, while there is gloom on the export front, the domestic market is showing signs of a revival.
The Cotton Association of India (CAI) has released the first estimate of the country’s cotton crop, for the current season (October 2017-September 2018), at 37.5 million (375 lakh) bales of cotton, each weighing 170 kg. Last year’s crop was 33.725 million (337.25 lakh) bales (170 Kgs each). The projected increase this year is due to a 19 per cent growth in acreage as against the last season.
India’s cotton balance sheet for this new season will record a surplus with a closing stock of 3.9 million bales. Exports this season are expected to remain at 6.3 million bales of 170 kg each (the same level as last year). Total domestic demand is expected to be 32 million bales. It is not likely that production will exceed beyond 37.5 million bales. Yields this season will be affected by an infestation of pink bollworm and unseasonal rainfalls in cotton-growing areas during September and October. Many farmers diversified to cotton during the kharif season (June-July) following stagnant prices for pulses and oil seeds. Cotton delivery has just begun hence the exact scenario of quality and production will be known only by the end of the month.
As per the Senior Vice Chairman of the All Pakistan Textile Mills Association, Zahid Mazhar the news appearing in sections of the print media quoting the Pakistan Apparel Forum representative that an increase in prices of cotton yarn will have a direct bearing on exports of value added products is baseless and misleading. He noted the widespread resentment regarding the increase in prices of yarn in the domestic market does not paint an accurate picture. He says due to cotton crop failure for the third consecutive year and resultant increase in prices of cotton has increased the cost of doing business of the spinning sector of the country. They are now compelled to meet about 30 per cent of their consumption requirement through import.
Further the imposition of 4 per cent custom duty and 5 per cent sales tax on the import of cotton has further increased the cost of doing business which is already high, compared to competitors in the region, which is the main reason behind the recent upward spiralling price of yarn in the country.
Mazhar disclosed the spinning sector, which is the backbone of the textile value chain, has faced the main brunt of high cost of doing business in the last few years. This has made it unviable. Today, the spinning industry is incurring heavy losses by selling yarn below its cost due to poor demand from domestic consumers. Production of yarn is substantially more than the local consumption, therefore, their exports must be encouraged at all costs, otherwise it will result in permanent closure of mills and resultant unemployment.
Due to this about 140 textile spinning mills have already closed operations resulting in one million workers losing their jobs and another 75 to 80 mills are on the verge of closure. This will add to the unemployment figure by another 0.5 million, he added. The measures taken by the government is only helping the Indian textile industry, as is seen in the exponential rise in import of yarn from India. Due to the closure of these mills Pakistan’s textile exports is also suffering a loss of over $4 billion per annum, he added.
New designs and technical developments will be exhibited across all product divisions will be on display at Heimtextil to be held from January 9 to 12. It will also include items for pets for the first time. The new “All About Pets” section will presents textiles and accessories for four-legged companions. As per event organizer Messe Frankfurt the number of exhibitors including textiles for animals in their portfolio has grown steadily over a number of years.
Nearly 1,500 international manufacturers will present their new collections from bed, bath and table segments across nine hall levels. The products aim to service bedding dealers, wholesalers and online retailers, boutique operators as well as buyers and hotel industry players.
The exhibition will also feature numerous international suppliers of bathroom textiles and accessories. Exhibitors include: Irisette, Billerbeck and Frankenstolz, Mascioni and Dun or Fior. The exhibitors will also be presenting their new products in lifestyle-oriented vignettes among them are Schlossberg, Collection Stiegler and Curt Bauer, Kas International, Martinelli Ginetto, Sorema and Welspun.
Messe Frankfurt is one of the world’s leading trade fair organisers, generating around €645 million in sales and employing 2,297 people. The Messe Frankfurt Group has a global network of 29 subsidiaries and 57 international sales partners, allowing it to serve customers on location in more than 160 countries.
For the last 15 years, a slew global fashion brands have entered Vietnam targeting the middle-income group, these include Mango, UK’s Oasis and GAP. Sweden’s H&M and Spain’s Zara are among the latest entrants in the last few months. At the moment, over 200 foreign fashion brands are present in the country occupying more than 60 per cent of market share. Big fashion brands are interested in Việtnam because of its high annual average market growth rate of between 15 to 20 per cent.
Looking at the crowds that these brands have generated in their opening days, it is evident that they are meeting a demand and domestic companies are now looking at ways to deal with competition by changing their production methods and business practices to stay afloat. With textile and garment firms tend to specialise in production and not in design, branding and distribution, they have to adapt fast to be able to compete with foreign brands.
Đặng Phương Dung, Vice Chairwoman, Secretary General at Việtnam Textile and Apparel Association (VITAS), says growth of international brands would compel domestic companies to diversify their products in all market segments. The success of grand openings by H&M and Zara can be attributed to good marketing and advertising but it is undeniable that “fast fashion” is now an established customer favourite in Việtnam. Its young population and rapid improvement in living standards has made the country an attractive and fertile territory for international fashion brands.
These firms produce wide ranges of clothing for different market segments and sell them at an average price due to diminishing production costs that result from mass production. In the fashion industry, foreign companies tower over their domestic counterparts in terms of capital, professionalism, marketing and customer service, and most importantly, online selling.
Denim Première Vision celebrated 10 years in Paris last week with numerous exhibitors that reflected the show’s fashion status. Besides showcasing key fashion statements for Spring/Summer ’19, it also served as a platform for the denim supply chain to share new concepts including sustainability, technology and performance fabrics. The influence of the Alliance for Responsible Denim (ARD) was evident at Denim Première Vision. Kilim Denim, Orta Anadolu and Tavex were among the ARD members offering post-consumer recycled denim fabrics for Spring/Summer ’19 at the trade show.
ARD addressed two sustainable topics: Improving the environmental impact of denim finishing and developing a preferred industry buying standard, business model and roadmap for the introduction and scaling up of post-consumer recycled denim production. ARD sees post-consumer recycled denim as a fabric/product with a minimum content of 5 per cent post-consumer fibres, meaning at least 5 per cent of fibre comes from pre-used jeans. The ARD urges brands and mills to use post-consumer recycled denim to reduce their dependency on virgin materials and drive impact savings across all areas from electricity to water.
“Every year we make about 2 billion pairs of jeans and every pair uses 3,500 to 7,000 litres of water to produce,” said Helene Smits of ARD. As per Levi’s lifecycle assessment for jeans, about 68 per cent of water is used to cultivate cotton alone. The Alliance for Responsible Denim believes that by eliminating the cultivation process and including 20 per cent recycled content into jeans, brands can save about 500 litres of water per jeans. ARD is made up of key stakeholders and experts from the denim industry, including brands such as Mud Jeans, Nudie Jeans, G-Star, Chasin, American Toyda Kuyichi and Imps & Elfs.
Sustainability comes at premium cost. The mills did not disclose the price of their fabrics, but post-consumer recycled denim is not a cheap fabric. A price premium comes with most recycled products; however, more innovation, experience and scale can reduce prices in the future.
ITMA 2019 will be held from June 20 to 26 June at Fira de Barcelona, Gran Via venue. It will showcase latest technologies and sustainable solutions for the entire textile and garment manufacturing value chain in 19 chapters. Besides machinery, exhibits will also include fibres, yarns and fabrics, as well as leasing and finance services. Underscoring its commitment to innovation, the European Committee of Textile Machinery Manufacturers (CEMATEX) will continue to promote excellence in research and development at ITMA 2019. The CEMATEX Research & Innovation Grant will help defray participation cost of eligible educational and research organisations at the Research & Innovation (R&I) Pavilion by at least 50 per cent.
Fritz P. Mayer, President, CEMATEX which owns the ITMA exhibition, says, “Innovation has always been key to the global competitiveness and sustainability of textile and garment makers. Research and development plays a critical role to help the industry develop new competitive advantages.” He added, "ITMA is an ideal platform to foster collaboration among researchers, businesses and investors. An ITMA 2015 survey revealed over 90 per cent of the R&I exhibitors were able to establish new business relations and open up new markets.”
The R&I Pavilion will showcase cutting-edge textile and related research and development projects and encourage collaboration among companies, research centres and universities to develop novel materials and technologies to transform the textile, garment and fashion industry. The R&I Pavilion also provides an excellent platform for participating institutes and guest industry speakers to share their latest knowledge and projects at the Speakers Platform.
The Speakers Platform offers an additional channel to raise awareness of research projects and facilitate knowledge transfer. The Speakers Platform at the R&I Pavilion will feature 20-minute presentations based on following topics: Raw materials and manufacturing technology; Automation and digitalisation: Creating new opportunities in the textile and fashion industry;
Technical textile innovations and manufacturing technology; and Sustainable textile and garment manufacturing in the circular economy.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has put forward a proposal to the Bangladesh government to alter labour laws and establish ‘wage boards’ to bring in a minimum monthly wage for workers in the country’s ready-made garment (RMG) segment. Workers’ rights in the country has been a topic of debate as the complex situation in post-Rana Plaza Bangladesh continues to divide opinion.
Post Accord’s extension until 2021 the question of workplace safety has been widely discussed including the fact that many units claim to adhere to guidelines and also claim to be investing in factory/safety programmes, however, people in the industry and employees are wondering when wage board for apparel workers will be implemented. Siddiqur Rahman, President, BGMEA, says despite adverse situation the sector is currently undergoing, a minimum wage board for re-fixing wages of garment workers in line with the provision of the labour law need to be made.
Wage boards have been implemented in the past. The first minimum wage was established in 1994 when the rate was Tk 940; in 2006 it was Tk 1,662.50; in 2010 it was Tk 3,000; in December 2013 it fixed the minimum wages for garment workers at Tk 5,300. President of the Bangladesh National Garments Workers Employees League (BNGWEL), Sirajul Islam Rony, had stared earlier, given the huge increase in cost of living for workers in the past five years – wages of RMG sector workers should double. BGMEA’s detractors feel the motive of this move is a desire to improve the image of the Bangladeshi garment sector worldwide to enable the country to enhance sales in this segment.
