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Hong Kong Trade Development Council (HKTDC), the international marketing arm for Hong Kong-based manufacturers, traders and service providers, released the results of its annual Centrestage Survey recently.
The Council’s report said that the women’s wear segment will continue to dominate the global fashion market in 2018.
HKTDC survey covered more than 200 buyers and 70+ exhibitors from Hong Kong, the Chinese mainland and other regions. The aim of the survey was to get an overview of the current market prospects, new product trends and the latest e-tailing developments.
In the survey, women’s wear attracted the highest level of ‘likes’ from both buyers and exhibitors (66 per cent and 82 per cent), casual wear garnered second place (23 per cent and 3 per cent).
If one looks at markets, Hong Kong has the greatest 2018 growth potential as noted by around 90 per cent of the respondents in their traditional markets followed by South Korea and Taiwan, the report stated.
The fashion brand-promotion survey noted a positive sales performance in 2018. 75 per cent of respondents held the view that Mainland China would emerge as the most promising emerging market in 2018 followed by Eastern Europe (43 per cent), followed by the ASEAN countries (43 per cent).
58 per cent of buyers saw no change in the retail price of their products in 2018, while 39 per cent hope for an increase in retail price. In terms of FOB selling price, 70 per cent of exhibitors said they expect to see a status quo in 2018, while 17 per cent of respondents predicted an increase. 13 per cent expect to see a decrease in the overall FOB selling price.
Discussing sourcing prices and production costs, those covered (buyers, exhibitors) under the survey had varied opinions. 55 per cent of the buyers expect an increase, 44 per cent anticipate no change while 1 per cent expects to see a price decline. On exhibitor’s side, 21 per cent of respondents expect production cost increase, while 79 per cent predicted either a fall or no change.
Sustainability and innovation were the buzz words at this year's International Woolmark Prize (IWP) held in Florence, Italy, recently, in conjunction with Pitti Uomo, the world's biggest trade show for men's fashion. With the finals beamed live around the world it provided the perfect platform to reinforce wool's superior attributes in satisfying expectations and requirements for both.
IWP, which seeks to identify emerging design talent through a capsule collection of garments utilising Australian Merino wool is judged in six regions, Asia; Australia and New Zealand; British Isles; Indian subcontinent and Middle East; Europe and USA. One finalist from each region is selected in the categories: menswear and womenswear and for the first time this year the 12 successful designers also had the opportunity to vie for an inaugural innovation award.
All 12 finalists focused on sustainability in their presentations, not just in throw away terms as something the judges might want to hear but as something central to the core of how they live their lives based on a genuine belief in its importance. Australian judge, fashion buyer and founder of retail and online fashion outlet Parlour X, Eva Galambos, says it was interesting to see each finalist mention sustainability without any prompting.
More than 65 designers from more than 60 countries took part in this year's awards.
Chinese market regulators say over 20 batches of luxury clothing, including those of big brands such as Giorgio Armani, Givenchy, Burberry, Marc Jacobs and Vivienne Westwood have failed quality tests. The Shanghai Industrial and Commercial Administrative Bureau reported 23 batches, or 18 per cent of the 130 batches that were tested, failed the pH index, poor colour fastness, unmatched fibre content and pilling tests.
Seven batches failed the test for poor colour fastness. A batch of Burberry knitted garments failed to deliver on colour fastness to alkali perspiration, while another batch of Marc Jacobs dresses was found to be substandard for wet rubbing colour fastness and acid and alkali perspiration colour fastness, the Shanghai Bureau said.
A batch of Vivienne Westwood women's coats failed the test in terms of colour fastness to water, acid and alkali perspiration as well as fibre content, the Bureau added. Colour fastness is a compulsory standard of clothing in China and dye in clothing with poor colour fastness can bleed on to human skin — which is harmful. Almost 18 batches were found to have unmatched fibre content types, or amount, as against what was marked on their labels.
The label of a batch of Giorgio Armani coats indicated a content of 93 per cent cashmere and 7 per cent of mulberry silk, while tests by the bureau found they actually contain 80.3 percent of cashmere, with the rest mulberry silk and wool, bureau officials noted. The bureau reported three batches failed for pilling, an important index indicating fabric quality, included a batch of MaxMara knitted sweaters and a batch of Etro women's garments. A batch of Burberry cashmere sweaters failed for both pilling and fiber content.
Two batches of clothing, namely a batch of Patrizia Pepe skirts and that of Gegina T-shirts, failed pH index tests — substandard pH index in clothing can cause skin allergies. The bureau has demanded that these brands stop selling substandard items and clear their stocks. They should also rectify and protect consumer rights.
The textile and textile product industry (TPT) is one of the main drivers of Indonesia’s exports. The government provides an incentive of corporate income tax by 30 per cent for 6 years or 5 per cent annually. This incentive is needed for the domestic TPT industry to be competitive. Anne Patricia Sutanto, VP, Director of PT Pan Brothers Tbk (PBRX) says the tax incentive is like a breath of fresh air for this sector, however, the government must be serious in implementing these rules.
As an export-oriented textile industry player, it asks for a government reference effort with all competitor countries so that all government policies related to the textile industry can be competitive. The government should also look at the dynamics in the global textile industry to take advantage of opportunities in future because this sector is stable and can be one of the pillars of Indonesia's development efforts.
Sutanto says what is important to them is the seriousness of the government in negotiation FTA with the EU, Canada, Mexico and Asian countries as a whole. In addition, the government must also build a vocational school for textile industry equipped with industry-based curriculum facilities. Although the conditions are not yet ideal, PBRX set a growth target at 12 to 15 per cent this year.
Bhima Yudhistira Adhinegara, Economist of the Institute for Development of Economics and Finance (INDEF) says the regulation is timely. The reason for global textile demand is currently recovering and this year TPT exports are good prospects, so it can be a stimulus for production. The current fiscal incentives are needed to encourage investment in the textile sector, especially investments in the opening of new factories or the reversal of old textile machinery that has been less productive.
The mega business event for textile and textile engineering sector, the 2nd global textile technology and engineering show GTTES 2019 will be held from February 1 to 3, 2019 in Mumbai. The GTTES is a growth catalyst and optimum business platform with numerous business leads, new customers offering best sourcing solution to India’s surging demand for textile machinery.
India is one of the world’s largest producers of textiles and thus one of the biggest market for textile machinery as well. The size of Indian textile and apparel industry is expected to reach $223 billion by 2021. This is a clear indication of the size of the market opportunity awaiting exhibitors at GTTES 2019. India and its neighbouring countries are main contributors to the increased demand of textile machinery and this expo is an opportunity to translate this demand to supply.
India is one of the few countries in world which has production at every level of textile manufacturing viz. fibre manufacturing, spinning, weaving, knitting, processing and garmenting. The most significant change in Indian textiles industry has been the advent of manmade fibres (MMF). Except spinning, majority of the textile and apparel machinery demand of India is being catered by imports. Weaving sector needs an additional around 82,000 looms. The capacity of knitting segment would need to be scaled up with an addition of 24,000 knitting machines by 2020.
Processing capacity will also need to increase its present capacity, with additional 30,500 million. Additional sewing machines would be required in garment sector by 2020 to cater to the high export and domestic demand for apparel in India. The size of the textile machinery demand and the market opportunity is $75 billion. GTTES 2019 offers sourcing solution to this market in India by focusing on weaving, knitting, printing, garmenting, embroidery and technical textiles.
Reports indicate that the Federal government is all set to announce another package for the textile sector. The Ministry of Commerce and Textile has twice briefed Prime Minister Shahid Khaqan Abbasi on this issue, following which, around seven proposals have been finalised.
The package would be related to cost of doing business as the textile sector was determined to get relief in electricity and gas rates. It has been proposed that electricity rate for the textile segment should fall to Rs 1.45 per unit — presently the rate is around Rs 11 per unit. The prices of regasified liquefied natural gas (RLNG) for the textile sector is expected to fall to Rs 300 MMBTU as against the current gas tariff of Rs 1001 per MMBTU.
The Commerce Ministry has also proposed that the government pay Rs 35 billion sales tax refunds and around Rs 17 billion customs duty drawbacks to the textile sector.
The textile policy liabilities have touched Rs 15 billion, it has been suggested that the government should also address this issue. Further, it has also been proposed that the government should implement a zero rating on packaging material.
Besides, it has been purposed that turnover limit of income tax of the power loom sector should fall from 1 million to 0.5 million. The government had announced Rs 180 billion trade enhancement package in January last year, of which Rs 160 billion was set aside for the textile industry, however, the Ministry of Finance has so far released Rs 16 billion under the prime minister textile package. Officials at the Ministry of Commerce say that exports of the country have registered an upward trend in the first six month following this package.
Online sales project more than triple US$74 billion by 2025, involving one in every five luxury sales.
The Age of Digital Darwinism report says there is a growing need for luxury brands to have digital competency, with McKinsey expecting the bricks-and-mortar environment to become dependent on digital.
E-commerce sales are growing rapidly, making up 8 percent of total luxury sales of online personal luxury goods of $20 billion. Monobrand online stores are currently dominating, by rapidly growing on multibrand platforms. These e-tailers or marketplaces were born digitally, giving them an advantage over brands having to adapt legacy systems, says the report.
Consumers have become more active in the luxury online sector, whether it is sharing content about brands on social media or participating as a secondhand seller or curator.
In an increasingly digital ecosystem, those hovering for success are adopting what McKinsey dubs a “Luxury 4.0” model. Which integrates customer data with production mechanisms and design, aiming to create a seamless process from concept to consumer. Luxury is centred on tradition and craftsmanship, 60 per cent of luxury managers see their brand selling 3D-printed goods within in the next decade.
Luxury brands are also facing competition from outside the industry. Amazon is changing customer behaviour, turning consumers into online buyers and making pushes into categories such as beauty and fashion. Amazon also accounts for 55 per cent of consumer product searches. Converging thriftiness and desire for sustainability is creating new models for consumption, such as rentals and secondhand marketplaces, the report notes.
Indian fabrics which are a non-importable item, as per import policy order, are being surreptitiously brought into Pakistan in bulk. The textile sector, the country's major revenue generation sector, is seriously affected by these imports forcing power and silk looms operators to shut shop. Around 400 containers, with about 20 tons of Indian fabric in each container, are imported every month, of which, around 300 containers are directly brought to Karachi market while 100 containers are re-routed to the city as transhipment consignments to Quetta.
The consignments of Indian fabric, which have no stamp of country of origin, were first shipped to Dubai and then Karachi ports under fake Chinese certificate of origin. Then, the consignments were cleared under fake certificate which ensured a Rs 2.8 billion financial loss to the country. The embossment of the country of origin on imported fabric was a mandatory requirement for the clearance of such consignments. Despite knowing the rules, the customs department cleared the goods under fake certificates that lead to a revenue loss of Rs 240 million per month to the country.
Muhammad Javed Bilwani, Chairman Pakistan Apparel Forum (PAF) reportedly confirmed a huge quantity of Indian fabric is being imported, saying they kept requesting the government to provide level playing field to their local industry and ensure strict vigilance/policies to avoid imports of Indian fabric as the influx of the said commodity has caused suspension of operations of 90 per cent power-looms across the country.
The 26th edition of the Italian textile trade show Milano Unica is starting today. The show, dedicated to fabrics and accessories collections for Spring/Summer 2019, will be on till February 8 at the Fiera Milano Rho exhibition centre on the outskirts of Milan. The management says this time there is a 10 per cent increase in the number of exhibitors, from 427 in February 2017 to 470 now. The show will host 416 exhibitors, and 34 Japanese companies featured in the Japan Observatory section, dedicated to Japanese manufacturing excellence and 20 Korean exhibitors featured in the Korea Observatory section.
The show's President Ercole Botto Poala has said, “The satisfaction expressed by buyers last July confirmed our choice was the right one, as it was self-evident, since it enabled us to respond to the market's requirements. Milano Unica's duty has always been to act on the stimuli issued by the world of fashion, not just in the interest of its exhibitors but also of the industry at large." The opening conference will feature a presentation of latest figures on the Italian textile industry.
Also, the conference will give industry the chance to discuss new challenges facing Made in Italy manufacturers, "from sustainability to digital technologies, including fashion tech, new markets and Millennial consumers." Among the speakers, Milano Unica are David Orban, entrepreneur and thought leader on emerging technologies. For the first time, in the Area Tendenze (trends area) section, the show will feature a sub-section dedicated to eco-sustainable products. The Creative Director of Ermenegildo Zegna, Alessandro Sartori, will meet fashion academy students on February 8 to talk about his professional experiences.
Shekhar Agarwal, Chairman, MD and CEO of Bhilwara Technical Textiles whose term in office is to expire on March 31, 2018 has been re-appointed in the same position for another three years by the board of directors.
Agarwal, at 65 years is a B.Tech (Mech.) from the Indian Institute of Technology, Kanpur and has done his MS from the University of Chicago. He is the Group Vice Chairman of LNJ Bhilwara Group. The core business interest of the group includes textiles, graphite electrodes, power generations and power engineering consultancy services.
He is presently on the board of various companies such as RSWM, HEG and Maral Overseas. Earlier, he was the chairman of the Confederation of Indian Textile Industry and the President of the Northern Indian Textile Mills Association. He was also the President of National Committee on Textiles of the Confederation of Indian Industry (CII).
