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Business is booming for a clothing assembly factory located in the central Mexican state of Puebla. Exports are a success due to the North American Free Trade Agreement (NAFTA). Every month, Confecciones de Punta which produces 1,00,000 pieces of clothing, exports directly to stores in Los Angeles, New York and Houston. Jose Luis Hachity, CEO, for nearly 35 years says, “When NAFTA came into effect, we did not have to go to the US and make sales. Instead, US clothing industry leaders came looking for us.”
However, many small and medium-sized Mexican businesses fear that the end of NAFTA is at hand. He says even if the US withdraws from the trade deal, geographic proximity to the US gives Mexico a trade advantage. Hachity recounts, “We are more efficient when it comes to logistics because we are delivering our products within three weeks. No other country, not even Asian ones, can do that. Nowadays, that is crucial in the fast-paced fashion industry where designs change from one month to the next. We are able to keep up with those changes.”
Trade expert Luz Maria de la Mora was one within Mexico’s original team of NAFTA negotiators in the mid 1990s. She assesses, “Overall let’s say that tomorrow President Trump by his policies he would eliminate completely trade deficit with Mexico, the trade deficit will increase with another country because there is an appetite, there is a need in the US for have this kind of imports.”
Mexican clothing makers say half a million textile jobs could depend on the outcome of NAFTA re-negotiations, however, Mexican textile factory owners are working on new strategies and are sourcing new markets, in case the U.S. raises import duties.
The family office of the Hamburg OTTO family has brokered new investors of Sympatex Technologies. After having successfully restructured the Smart Solutions Holding (parent company of Sympatex Technologies GmbH) at the beginning of December 2017 and having evaluated the available purchase offers, the Munich manufacturer of functional textiles will be owned by members of the OTTO family and advised by KG CURA Vermögensverwaltung.
After the former conclusion of the legal challenging period of bond restructuring, the company can now embark towards a promising future. Sympatex will still operate as an independent company. No structural or personnel changes are planned and the Sympatex company headquarters will still be located in Unterföhring near Munich.
Rüdiger Fox, CEO of Sympatex Technologies explains. “In Germany, no other name represents credibility in terms of social and ecological corporate responsibility better than the OTTO family. With our consistent alignment towards innovation for sustainable functional textiles, we cannot image a better choice. We are already looking forward to continue to enhance the relations with the growing number of customers taking their ecological responsibility and the apparent future market requirements seriously.”
Moet Hennessy Louis Vuitton (LVMH), the world's biggest luxury goods maker, delivered better-than-expected sales growth in Q4 as it gained from a steady recovery in Asian demand, especially China. The French company, whose 70 brands range from Dom Perignon champagne to fashion houses such as Fendi and Givenchy, reported sales rose 11 per cent between October and December on a like-for-like basis, which strips out currency swings.
Demand from Asian shoppers has enhanced makers of high-end handbags, clothing and watches the past year, largely due to Chinese demand. LVMH said it was well-equipped to grow further in 2018 "despite unfavourable currencies and geopolitical uncertainties." The company which does not break out earnings for its labels, said group operating income for the entire 2017 stood at 10.36 billion, up 18 per cent from a year earlier and in line with forecasts.
The growth trajectory was partly due to the full integration of the Christian Dior fashion label. LVMH swooped last year on the couture part of the brand it did not already own, uniting it with the perfume and beauty parts of the Dior business. Bernard Arnault, Chairman and CEO says LVMH achieved another record year. The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2018, our leadership in the universe of high quality products.
Lectra, the technological partner for companies using fabrics and leather, has signed a share purchase agreement to acquire the entire capital and voting rights of the Italian company Kubix Lab. Founded in 2015, Kubix Lab has developed a cutting-edge technological offer called Link. This offer enables fashion brands to manage, from end-to-end, all product information deriving notably from multiple IT systems (ERP, PDM, PLM…), within one single application.
Users can modify, enrich or add new data, while maintaining data synchronization with all IT systems. In just a few months, Link has convinced over ten high-end Italian brands of its value.
Daniel Harari, Chairman and Chief Executive Officer, Lectra stressed, “We were particularly impressed by the relevance of the solution created by Kubix Lab. By capitalizing on their knowledge of best practice, the founders of Kubix Lab knew how to develop an offer perfectly adapted to the expectations of fashion companies. Link enables all players involved in product development, manufacturing and sales to collaborate in real time, in a simple and efficient way, around exactly the same data.”
Giampaolo Urbani, CEO and Co-founder of Kubix Lab says, “We are delighted to join Lectra. We are convinced its leadership, global presence, strong expertise in the fashion industry and the richness of its product portfolio will enable us to develop an integrated offer with high value for all Lectra customers.”
The founders of Kubix Lab will be in charge of developing an integrated Lectra – Link offer, which will complement and reinforce Lectra’s offer. As per Pierluigi Beato, R&D Director and Co-founder of Kubix, product data is at the heart of Link. They took an approach diametrically opposed to existing solutions on the market and designed an offer which is highly innovative, flexible, evolutionary and easy to use. With Lectra, both will take Link to the next level.
The transaction involves the entire acquisition of Kubix Lab for the amount of €7 million: €3 million paid when the acquisition agreement is signed; €1.3 million and €2.7 million paid respectively in 18 and 36 months’ time, providing objectives are met. Final completion of the acquisition should take place by January 31, 2018. These amounts will come from Lectra’s available cash, with no financing from the bank. Kubix Lab will be consolidated into Lectra’s accounts, effective from the signature of the final agreement
Leading Japanese flat knitting machine manufacturer, Shima Seiki has appointed Voltas as their new sales and service agent in India effective January 2018. To this effect, the Japanese firm has terminated the representation of Janaksons International, their former Indian agent. The Japanese firm is represented by Voltas's textile machinery division which would now handle sales and service support for Shima Seiki's products throughout Indian.
Shima Seiki in its recently issued release assured customers support will continue to be provided through this new partnership. Voltas Limited is the latest addition to Shima Seiki's worldwide sales and service network that covers 112 locations in 84 countries around the world. Voltas, a large Indian engineering firm is also a part of the prestigious Tata Group of companies.
The intimate apparel market is touching new heights both in terms of increased sales volume and value. Intimasia (Kochi) scheduled from March 8 to10, 2018 at AdLux, Ernakulum will be a three day event exclusively for the fast growing intimate apparel industry in Kerala. Intimasia is an eclectic mix of exhibitions, fashion shows, awards night, gala dinner etc. The show will feature the complete range of intimate wear brands and products including lingerie, men’s underwear, children’s inner wear, sleepwear, loungewear, swimwear, beachwear, shapewear, socks and stockings.
In its first edition, Intimasia is committed to elevate the intimate wear business by promoting fashion, innovation and ideation. Featuring some of the best brands, the event provides an opportunity to network with over 2000+ retailers, distributors and agents of Kerala. The event provides a medium for industry professionals to penetrate Kerala’s intimate apparel industry.
Currently, India’s domestic intimate wear industry is growing at an annual rate of 15 per cent with an estimated value of $245 billion. According to a World Bank working paper, among the Southern states, Kerala ranks second in the Investment Climate Index followed by Karnataka due to its world-class infrastructure and well-trained human resource pool. Kerala has a per capita income of Rs 1,96,842 supported by 94 per cent literacy. National brands have not been able to penetrate deep into the intimate fashion market of Kerala. As a result, 70 per cent of the market is occupied by local brands which act as fillers to compensate large demand. Intimasia Kerala will serve as a bridge for these brands to infiltrate into Kerala’s intimate apparel market.”
Following a report by the EU that did not specifically mention or condemned the political situation in Cambodia, local garment manufacturers say the country is no longer at risk of losing its preferential treatment status with the EU. Some believe the recent report provides sufficient evidence that the EU will not cancel its Everything-but-arms (EBA) with Cambodia, correspondingly, the Garment Manufacturers Association in Cambodia (GMAC) is urging investors to increase their stakes in the local garment and footwear industry.
The European Commission submitted a report to the European Parliament and the European Council on the generalised scheme of preferences for 2016-2017. The report made no mention of a possible withdrawal from the EBA with Cambodia over the dissolution of the main political opposition party, the Cambodian National Rescue Party (CNRP), in November last year.
The reported said, “The EU is engaging with Cambodia to address human rights issues related to land disputes arising from sugarcane concessions and labour rights issues, in particular freedom of association. The EU needs to see real and sustained improvements, if further steps are to be avoided.” It urged the government to “establish an independent and transparent mechanism in order to deal with claims for compensation.” Kaing Monika, deputy secretary general for GMAC, is happy with the EU report, “Reading the report’s section on Cambodia, we feel very relieved,” he said. “It doesn’t mention the political situation or a possible cancellation of the EBA.” Monika says this was important because the EBA contributes significantly to Cambodia’s competitiveness in the international arena. Based on the report, we continue to call on investors to remain confident in our garment industry,” he said.
Som Aun, President, National Union Alliance Chambers of Cambodia, shared the same view, “The report was very positive for our garment and footwear industry. The EU did not mention anything about a withdrawal from EBA. This should help keep investors’ confident in our industry.” Under the EBA initiative, all Cambodian products – except arms and ammunition – are allowed duty-free and quota-free into the EU market. In 2014, the EU became the largest purchaser of Cambodian garments, surpassing the US. The EU absorbs roughly 50 per cent of all Cambodian garment exports, notes GMAC.
At the Cotton Council International (CCI), booth at Première Vision, Paris from February 13 to 15, 2018 Cotton USA will be featuring new blended technologies in US cotton apparel that could benefit business.
CCI Executive Director Bruce Atherley says, “What’s New In Cotton is our new platform to show Cotton USA’s commitment to innovation. We introduced this platform in apparel at Première Vision in September 2017, and we are excited to bring this back to this spring’s show. The mission of this program is to inspire the textile industry to think about new, innovative ways to use U.S. cotton, so we are thrilled to share new ideas, technologies and opportunities with our partners at Première Vision to help them see the potential that U.S. cotton can add to their business,” he adds.
Applied DNA Sciences has announced the opening of a Central DNA Testing Laboratory in Ahmedabad, that will provide full forensic authentication services. The lab will support Applied DNA’s growing global textile business in the Asia-Pacific region with expansion capability for other supply chains present in the region, such as fertilisers and pharmaceuticals.
To be launched February 15, 2018, the Central Laboratory is strategically located in Gujarat, an economic hub for the development and advancement of cotton, other textiles, fertilisers, petrochemicals and pharmaceuticals. Ila Lansky, a forensic scientist with over 11 years of forensic DNA experience, will direct the Central DNA Testing Laboratory. She currently oversees all aspects of forensic analysis, testing, authentication and reporting for all samples submitted, following the standard operating procedures established by Applied DNA’s New York forensic laboratories.
The Central DNA Testing lab is a high throughput laboratory, providing customers with accurate reports and a short turnaround time. Lansky their methodology, “This is an important opportunity for Applied DNA to bring our proven technologies to the heart of India’s textile industry and share our impeccable standards and operational protocols. The laboratory will have the ability to process thousands of samples, serving our textiles customers in the region.”
James A. Hayward, President and CEO, Applied DNA says, “Opening a lab in Gujarat has both strategic and practical importance for Applied DNA. Our partnership with Himatsingka, has proven remarkably successful, with uptake in the commercial ecosystem and endorsement by big box retailers. Adoption of our technologies by other textile companies is growing. Working closely with such India-based industry majors as Himatsingka and GHCL, we know Applied DNA’s value in enabling source-verified supplied chains and contributing the steady growth and ensured protection of the circular economy. It only makes sense for Applied DNA to have a facility where so many of our current and future partners are based.”
Applied DNA is a provider of molecular technologies that enable supply chain security, anti-counterfeiting and anti-theft technology, product genotyping and DNA mass production for diagnostics and therapeutics. The company aims to “make life real and safe by providing innovative, molecular-based technology solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion”. The proprietary DNA-based CertainT platform can be used to identify, tag, test and track products to help assure authenticity, origin, traceability, sustainability and quality of products.
HCA, a 108-year-old company has expertise in all sewing related segments. They provide spare parts for finishing and stitching -- all garmenting related items. “Currently, we have a tie-up with 16 global companies. Things have been running smoothly till GST was introduced. This caused some disruption but now all is back on track. We expect things to improve March onwards,” says Megha Anand Dudhoria, Director (Sales and Marketing).
Dudhoria sees labour issues as the main challenge for the apparel sector, “When it comes to skilled labour. Laws are completely in favour of workers. Their work is not productive and it is a catch 22 situation. Infrastructure is another major issue the Indian garmenting industry is facing. Duty drawback to exporter is another area where the government needs to work on.”
She says HCA is doing a little production in India, basically automation. “The market is changing, people are shifting to server motors, they are looking for more productivity, however on the positive side, they are becoming more quality conscious.” Exhibiting at the recent GTE in Delhi, she says GTE is phenomenal as it has always been, “We are very happy to be here. The platform is really helpful for buyers and sellers. We are looking forward to more productive results post GTE.”
