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Walmart will raise orders of Cambodian garments and footwear products this year and will also start buying travel goods manufactured in the Southeast Asian nation. The announcement follows an escalating diplomatic row between Cambodia and Western nations who have criticised its government’s crackdown on opposition and civil society.
In a letter addressed to Cambodia’s minister of labour Ith Samheng in December, Walmart Cambodia is a key element in the corporation’s international supply chain and it will help Cambodian manufacturers increase competitiveness, productivity and efficiency, according to a report in a Cambodian newspaper.
Walmart officials visited the country in early November to meet top government officials and visit local factories and expressed satisfaction over the quality of garments, footwear and luggage products bearing the ‘Made in Cambodia’ label.
The Garment Manufacturers Association in Cambodia (GMAC) has also expressed its satisfaction with the American company’s commitments and policy. Cambodian commerce minister Pan Sorasak recently stated that European and US buyers have already placed a high number of orders for 2018.
Textile industry watchers expect significant growth in FY19. The country’s textile exporters had struggled through 2017. Shares of several companies stagnated for most of the year as structural readjustments in the US retail industry; the largest market; seriously dented revenue and profit, including the rising cost of raw material.
Pawan Jain, Director, Corporate Affairs, Trident, predicts, “Usually clients keep inventories on the lower side at the year end, however, this time the inventory reduction was more than usual. Expect this process to reach normalcy by Q4 and growth to return in Q1 of next fiscal.”
Credit Suisse said in a note on Welspun India , destocking at US retailers may not continue beyond one more quarter as the stock in retail channel cannot fall more than a certain level. So a recovery should reflect in the second half of the fiscal year. But the reduction in the government’s duty drawback and rebate of state levies schemes can optically lower revenue growth in the second half of the current fiscal.
ICRA noted the credit profile of domestic textile companies is stable, indicating financial health. The aggregate debt of the domestic textile industry is declining as the industry reduced debt-funded expansion. Strengthening of the Indian rupee and cotton prices could upset profitability targets, however, industry data show that US imports of cotton textiles continues to rise with India’s export share growing.
Surat-based textile industry is still reeling under the impact of GST. Textile industry watchers note that largely in weaving and trading, capacity use at most of the power looms and trading units is underutilised by around 50 per cent, however, spinning units are finding buyers in the knitting industry due to the winter season. The others in the textile supply chain, such as weaving and trading, are still finding business unsustainable, more so among smaller players.
Against 40 million metres per day of production in the Rs 500-billion synthetic textile hub of Surat, the current production has fallen to 2.5 million metres per day. So also in the weaving sector, as against a Rs 600-million daily turnover in the pre-GST days, this sector is still down by 50 per cent, said Ashish Gujarati, President of Pandesara Weavers’ Association.
Moreover, power looms continue to down shutters with around 250 to 300 looms daily being discarded as scrap. Also there are still several traders and weavers who are yet to register and come under the tax net. Smaller traders are still hit as the issue is not about the 5 per cent GST, it is about the additional costs of hiring accountants and investing in new technology that is hitting the smaller traders’ hard. This has led to a steep 50 per cent drop in business.
In good times there were 6,50,000 power looms, 150-200 wholesale textile markets, 20,000 manufacturers; including 10,000 weavers, 75,000 traders, 450 processing units; and 50,000-60,000 embroidery machines in the Rs 500-billion synthetic textile hub in Surat. Three industry associations, including silk weavers and textile processors, have made representations to the Centre for relief from post the impact of the GST on business.
Against a normal Rs 100 to 120 billion worth of business during Diwali through dispatch of 1,500 trucks daily for a fortnight, this year business had fallen to just 15 to 20 per cent. Tarachand Kasat of the Surat-based GST Sangharsh Samiti decried, “This was the first time we saw such a Diwali. In the last fortnight or so, which sees peak of Diwali dispatches, business was down by 15-20 per cent.
The Ministry of Finance has simplified regulations to rectify error made by any business organisation during the filing returns under GSTR-3B following representations that were received by the government seeking clarifications on various aspects of return filing including return filing dates, amendment of errors in submitting/filing of GSTR-3B. This rectification will permit businesses to rectify the mistakes made during the calculation of GST liability which came into effect from July 1.
The Central Board of Excise and Customs (CBEC) in a recent communication to field officers has noted, "As return in Form GSTR-3B does not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis along with the values for current month itself in appropriate tables…" There can be no negative entries in the form GSTR-3B while making adjustment in the output tax liability or input tax credit. "The amount remaining for adjustment, if any, may be adjusted in the return(s) in form GSTR3B of subsequent month(s) and in cases where such adjustment is not feasible, refund may be claimed," CBEC added.
There is a facility to edit the information in Form GSTR-3B which can be used only before offsetting the liability. The rectification cannot be made after offsetting liability. In an earlier circular by CBEC on September 1, 2017, it was clarified that errors committed while filing form GSTR – 3B may be rectified while filing Form GSTR-1 and Form GSTR-2 of the same month.
H&M, Joules and BoohooMan have produced new activewear range, tapping into the continuing health and fitness trend. The Swedish fashion retail giant H&M has unveiled its latest women’s collection as a part of its ‘conscious initiative’ and has said it’s “blending fashionable design with highly functional details,” for a new activewear collection “made in sustainable materials.”
Inspired by “nature and strong women,” the collection launched internationally in select stores, will be available on the retailer’s webstore.
Revolving around the theme of ‘In it for the Long Run’, the collection includes tights, sports bras, hoodies and tops for training, running and yoga.
The brand said it has emphasised nature and sustainability, through the prints and the colour palette of green tones, black and beige, but also the predominant use of recycled polyester and elastane in all apparel. Details include quick-dry and seamless features, plus built-in support and holes for ventilation. The designs feature contrast panelling, criss-cross backs and decorative webbing.
Petra Smeds, the firm’s Chief Sportswear Designer, disclosed that a new knitting technique was used to create seamless garments while using less yarn and ensuring less fabric waste. Joules has launched into the active category the first time with a small (seven-piece) women’s collection that is already available online and that is expected to be launched in-store later this month.
Here also, functionality is their forte with moisture-wicking and ventilation features, comfort waistbands and pockets that can hold items like a phone. Prices start at £24.95, rising to £64.95. Joules CEO Colin Porter said the launch felt like a natural range extension given the brand’s lifestyle positioning and its nature inspiration.
Hong Kong-based garment manufacturer Crystal Group, is a strong proponent of humans when compared to robots. The company is considering an increase in its staff by more than 10 per cent in Vietnam and Bangladesh as it is of the view that humans are more cost-effective as against sewing robots. This is good news for the industry and has come at a time when the industry is working hard towards automation in this sector.
Crystal also believes that technological innovations such as Sewbot is practical, but it’s not yet time for them to replace humans, more so in low-cost nations. Palaniswamy Rajan, Chief Executive, Softwear Automation also shares the same view that though its creation, Sewbot is the future of the industry, it is not cost-competitive when compared to humans, especially in countries such as Vietnam. The company is in discussion to launch its first automated T-shirt production line in the US.
The apparel manufacturer, which recently raised $ 490 million in IPO in Hong Kong, is confident that countries such as Vietnam will continue to see extensive growth given the exodus of companies withdrawing from China, following increasing cost of production. Labour wage in Southern China has crossed US $ 700 a month, which is higher than that in Vietnam ($300-350) and Bangladesh ($150-200).
Correspondingly, the Crystal Group is planning to use the IPO earnings to set up fabric production facilities in manufacturing hubs such as Vietnam and Bangladesh. Last year, the Group was one of the largest apparel producers in the world in terms of volumes.
Data from the Ministry of Commerce (MOC) show 2017 was a good year for the Myanmar garment export sector. During the seven months of April and November, around $1.5 billion worth of garment products were exported from the country and bound for warehouses owned by Uniqlo and Primark in Japan and Europe.
Myanmar’s garment export have been growing exponentially following rising labour costs in former low-cost manufacturing hubs such as China as well as increasing demand from global clothes, lingerie and sportswear brands due largely to growing affluence in many parts of the world. Myanmar Garment Manufacturers Association (MGMA) reports the country’s garment sector represents the country’s second largest export sector and it is expanding. During the fiscal 2016-17, the industry exported garments worth around $2.2 billion, up from $1.8 billion the previous year. During 2013-14 and 2014-15, garment exports totalled $1.2 billion and $1.5 billion, respectively.
Industry watchers say new strategies need to be implemented for growth to remain sustainable. Daw Yin Yin Moe, Secretary of the Myanmar Textile Manufacturers’ Association cautions, “The garment sector has grown significantly over the past three years, but to continue expanding, we are planning to reach more customers in international markets and raise demand.”
Currently, about a third of locally produced garments are exported to Japan, while a quarter each is shipped to Europe and South Korea, respectively, according to the MOC. The balance is shipped in smaller quantities to China and the US. U Kyaw Win, Vice-President, MGMA, advised, to serve a wider range of markets, the industry will cooperate with the Government to host the Myanmar Gar-Tex Expo in Yangon next March. The exhibition will promote Myanmar-made garment products and expose local manufacturers to international competitors and customers,
The exhibition, which will showcase over 80 garment participants and host up to 3,500 trade visitors worldwide, will be organised by the Ministry of Industry in cooperation with MGMA, the Myanmar Textile Manufacturer Association, Textile Engineer Association, and Vietnam Textile & Apparel Association.
MGMA is confident that if all goes well, the Myanmar garment sector could be valued at around $8 to $10 billion in ten years’.
The Cotton Association of India’s (CAIs) December 2017 estimate of the crop for the 2017-18 season beginning October 1, 2017, is forecast at 375 lakh bales — the same level as in the previous estimate. The projected balance sheet by the CAI forecasts total cotton supply for the season at 425 lakh bales of 170 kg each.
The total cotton supply estimated at 425 lakh bales includes the opening stock of 30 lakh bales at the beginning of the season and an estimated 20 lakh bales of imports for the 2017-18 crop year. The domestic consumption is estimated to be 320 lakh bales while CAI estimates exports for the season to be 55 lakh bales. Up to end December 2017, CAI estimates cotton arrivals at 147.75 lakh bales as against arrival of 108 lakh bales up to December 31, 2016.
CAI President Atul S Ganatra has announced, “Around 39 per cent of the total crop estimated for the year has already arrived in the market and looking at the pace of arrivals this year, CAI is of the view that the projected crop of 375 lakh bales for 2017-18 crop year is very much achievable.” CAI’s estimate of 375 lakh bales of cotton crop is slightly lower than Cotton Advisory Board’s recent forecast of 377 lakh bales for the 2017-18 crop year.
CAI reports the Central Zone, comprising the main cotton growing state of Gujarat, is expected to contribute 213 lakh bales, while the South and North Zone are expected to contribute 100 lakh bales and 57 lakh bales, respectively.
Chittagong port handled about 2.56 million twenty-foot equivalent units of import, export and empty containers last year, up 9.36 percent from a year ago, despite prolonged congestion.
According to Chittagong Port Authority (CPA) data, 2017's container handling growth rate was the lowest in the last five years. Port users blamed prolonged vessel and container congestion throughout the year for this poor show. As per them the shortage of jetty, yard and equipment facilities at the port pushed the growth rate down.
CPA data showed the country's premier maritime port posted nearly 16 percent and 17 percent growth in container handling in 2016 and 2015 respectively. Container handling grew 9.6 percent in 2013.
Mahbubul Alam, chairman of the Port Users' Forum, held the lack of efficiency and poor capacity of the port for the slow growth. He stated that the port urgently needs new terminals with modern jetties and equipment to increase its efficiency and capacity.
Nasir Uddin Chowdhury, chairman of the standing committee on port and shipping of the Bangladesh Garment Manufacturers and Exporters Association, also echoed Alam.
The drawn-out congestion last year put the record number of container vessels waiting at the outer anchorage, he added. On an average, 15 to 20 vessels had to wait for 12 to 15 days at the outer anchorage before getting berth at the port jetties.
However, he confirmed that the decision to keep the port, customs and other related services open for 24 hours following the prime minister's instruction in July improved the situation a lot in the second half of the year.
The 4th edition of Morocco Style will see more than 400 international exhibitors display their creations in various segments. The four-day exhibition is a platform for national and international companies of different sectors to show and promote their skills, meet partners and collaborate with brands from several countries. The Morocco international fashion, textile and accessories fair is scheduled from March 28-31 in Casablanca.
The gateway of Africa', Morocco, which has free trade agreements with the European Union and United States, provides great advantage to textile exporters. Morocco Style is the best platform to enter into this market and participants will be able to take a advantage of all these opportunities with buyer delegations and professional visitors from more than 18 countries mainly neighboring countries such as, Tunisia, Algeria, Portugal, Spain.
The 3rd Morocco Style hosted 312 exhibitors from 11 countries such as, Morocco, Turkey, Spain, France, Portugal, France, China, India, Italy, Pakistan, Tunisia along with 1, 2443 professional visitors from Morocco. Some 37 foreign countries from West and South Africa, North Africa, Middle East and Gulf countries were also represented joining European countries such as Italy, Germany, Spain, Portugal, France, Belgium, Greece, Netherlands, England and America.
