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The textile industry in Pakistan is waiting for the announcement of a revival package from the government sooner than later. This was delayed because the Prime Minister was away from the country. During his last visit to Karachi, the PM had met a textile industry delegation when he issued directions to concerned ministries to uphold dwindling textile exports. The delegation had apprised the PM about the issues confronting growth. It was followed by the constitution of a committee by the PM to work out remedial measures to reduce the cost of doing business and restore export competitiveness.
The PM had also directed the finance minister to withdraw all levies on import of five million bales of cotton. It is likely that the government will announce a rebate of six per cent in the shape of Drawback of Local Taxes and Levy (DLTL), Long-Term Financing (LTF) facility on the import of machinery for five export-oriented sectors and sales tax refund of packing material for zero-rated sectors.
Reducing trade deficit with China is a good sign for Vietnam, says an official of the Ministry of Industry and Trade MoIT, Vietnam. The country’s trade deficit with China fell by 13.3 per cent to $9 billion in the first eight months of 2016 thus ending the rising trade deficit faced from 2001, according to the General Statistics Office (GSO). Deputy Director of the MoIT’s Industry and Trade Information Center Le Quoc Phuong blamed the global economic downturn that caused a reduction in demand in almost all markets including Vietnam. Furthermore, domestic businesses are striving to intensify their import markets to lessen dependence on the traditional ones, he said. He added saying that that they are actively importing commodities from other markets such as the Republic of Korea (RoK).
The GSO said Vietnam imported goods worth $20.3 billion from RoK in the last eight months of this year showing a year-on-year rise of 9.3 per cent mainly computers, electronic products and spare parts, he cited. However, the declining trade deficit with China at present is just temporary, he said, noting that made-in-China commodities still remain the first choice of Vietnamese businesses due to the proximity between the two countries and highly competitive prices. When economic growth bounces back, Vietnam needs more measures to reduce imports from China to reach a trade balance in a sustainable manner, he recommended.
The garment and shoe industry throughout eastern and south-eastern Europe pays poverty wages. Despite working overtime, many workers in the Ukraine for example draw a salary that’s at least five times less than a living wage. Among their customers are fashion brands like Benetton, Esprit, GEOX, Triumph and Vera Moda.
Many of the 1.7 million garment workers in the region live in poverty, face perilous work conditions, including forced overtime, and have accumulated significant debts.
These European sweatshops offer cheap, yet experienced and qualified workers. Far too often the monthly wages earned by the mostly women workforce only just meet the legal minimum monthly wages. The legal minimum wages in the region are below the respective official poverty lines and subsistence levels for these countries. The consequences are brutal. Sometimes, workers simply have nothing to eat. Their wages are just enough to pay for energy, water and heating bills.
Many of the workers are exposed to heat and toxic chemicals, unhygienic conditions, unpaid and illegal forced overtime, and abusive treatment by management. Workers are intimidated and are under constant threat of termination or relocation. Many are forced to work overtime just to reach their production targets. Major international fashion brands profit substantially from these low wage system.
Despite Myanmar’s textile and garment sector having experienced rapid growth in recent years, its garment exports have declined when compared to its regional neighbours, said Messe Frankfurt, CEO, Michael Scherpe. Development of the country’s garments-for-export industry lies with the financial and technological support of the government, added the CEO.
Myanmar’s clothing industry has the potential of growing in the next 10 years but exports are lower than other countries, said Scherpe, stressing the need for financial and technological assistance to the sector as FDI alone cannot expand development. Myanmar’s clothing exports are likely to become the best in the European market if European investors can expand their market share. He suggested Myanmar upgrade its apparel industry by developing production machinery and design adding more value to its products.
“We want Myanmar’s clothing manufacturers to take part in the Paris Fashion Show which is scheduled to take place in Paris, France’s capital, in February next year.” said Daw Thet Su Hlaing of Messe Frankfurt Myanmar. She said Messe Frankfurt Myanmar will prepare Myanmar garment manufacturers for the global market. It is required that we focus on how many buyers can be attracted, rather than travel costs to a trade fair, she added.
According to sources, Myanmar’s textile and apparel sector has developed gradually since 2012 while European experts expect Myanmar to become one of the top textile and clothing exporters in the region, given the proper industry nourishment.
Bangladesh-based M&J Group, has a long-standing partnerships with H&M, G- Star Raw and Jack & Jones, among others to supply garments.The company is a major garment maker in South-east Asia, known for high technology and expertise value in terms of processing plus creativity of the best Italian tradition in fashion.
It is participating in the ongoing Denim Première Vision Paris to consolidate its own strategy in Europe and present its important novelties for the spring/summer 2019 collection.
The collection for 2019 is designed for a market which takes into account both the Z generation and millennials. Aesthetics and technology are combined to create new shapes, dimensions and eco-sustainable visions. New cutting and tailoring systems meet laser printing, embroideries and flocking developed in multiple layers and new shapes, resulting in material tonalities which reach down to the core and do not end on the visible surface. Details become the bright fulcrum which adds value to the denim canvas, selected from among the best manufacturers. The natural and metal-colored motifs with laser technology produce colors which burst out of the canvas to create soft textures, new details to complete raw denim and transparent patchworks, all with a glossy pink guiding thread.
In case the US Congress doesn’t ratify the Trans-Pacific Partnership Agreement (TPPA) by the February 2018 deadline, Malaysia is taking no chances and has started taking precautionary measures. Its Parliament is on track to ratify the TPPA by amending specific laws. This is because both the US presidential candidates Hillary Clinton and Donald Trump have voiced concerns about the pact that would encompass about 40 per cent of the world’s GDPs. The four new preferential markets for Malaysia through the multilateral FTA are the US, Peru, Canada and Mexico.
However, many feel nay-saying is just populist campaign to appease Americans worried about losing jobs to Asian imports and Clinton would finish the pact that President Barack Obama has given his nod. The US-led deal cuts import tariffs while raising bars on labour conditions, environmental protection and intellectual property rights.
The International Trade and Industry Ministry Secretary-General J Jayasiri feels, the TPPA will come into effect as long as six countries accounting for 85 per cent of the bloc’s GDP ratify the agreement. All 12 countries in the TPPA have 24 months to ratify the agreement which was signed in February in New Zealand. The 12 countries that negotiated the TPPA included Malaysia. The agreement will come into force 60 days after that. Should the TPPA fall through, Malaysia would find ways to engage with the four countries in the bloc with which Malaysia does not have an existing free trade agreement (FTA), Jayasiri said.
The supply chain in Bangladesh lacks transparency in pricing. Buyers don’t want to share how much they pay and producers don’t share how much they charge. Even if brands don’t pay the cost price, producers meekly give in. Therefore, if producers in the country were to share their experience of brands with the outside world, brands may start taking them seriously.
After the 2013 Rana Plaza building collapse that evoked worldwide factory safety concerns, development partners particularly the European Union countries and the US joined efforts to improve factory safety conditions. Progress has been made since then. New inspection systems allow all export factories to be inspected and the most dangerous factories have closed down. Consumers are becoming more and more alert and aware and are willing to pay more for clothing which is not tainted with blood.
However, a lot still needs to be done to make the industry truly safe and sustainable. Everyone wants corporate social responsibility, but that calls for considerable investment, which is a problem. Effective cooperation between producers and buyers is hampered by unreasonably short delivery deadlines, regular late cancellation of orders, and lack of transparency and lack of trust.
Fearing losing its current preferential access under African Growth and Opportunity Act (Agoa), Kenya is lobbying against the planned Trans-Pacific Partnership Agreement (TPP) between US and 12 Asian states. The country joined other trade ministers from African countries at this year's Agoa forum in Washington to urge the US government to reconsider the move as it will make the goods coming from Africa uncompetitive in the market.
Trade Principal Secretary Chris Kiptoo preferences that Kenya enjoys will be eroded once the US enters into trade agreements with other states outside Africa. He maintained by saying that other trade agreements such as the Transpacific Partnership Agreement that the US is planning would affect the goods that are currently enjoying preferential rates to America.
TPP eliminates or reduces all tariffs on goods traded between partner countries. The TPP agreement would abolish many of these tariffs. Kiptoo notes that it would be difficult for Kenya to compete with countries such as Vietnam and other Asian states that are part of the TPP agreement and a big producer of the textile goods.
Swedish fast fashion brand H&M’s revenue growth slowed down by about one per cent this month, the slowest pace in more than a year. Markdowns eroded third-quarter profit margins by 1.1 percentage points. Europe’s second-largest fashion retailer plans to introduce two brands next year. The earnings outlook for next year will be helped by a gradual reduction in the pace of investment, which has been higher than normal as it prepares the new brands and adds online shopping.
H&M monthly sales have been disappointing more often than not over the past year. Pretax profit fell 9.1 per cent in the third quarter, which ran through August. Inventory surged 24 per cent, mostly due to unsold autumn wear, and that position is expected to improve. The company plans to add e-commerce in eleven markets and open 425 net new stores this financial year. In 2017 H&M intends to open stores in four to five new markets, including Colombia, Iceland and Kazakhstan.
Europe’s fashion retailers have been suffering lately from an unseasonably warm end to summer and a lack of compelling fashion trends. Business conditions are close to a recession. Price competition in the industry is escalating H&M feels the need to continue cutting prices in the fourth quarter following a weak start to the autumn season.
Amazon, EasySize, Evo Pricing and Lectra explored diverse uses for customer data during a round table event organized by the ESCP Europe - Lectra ‘Fashion & Technology’ Chair in Paris. Lectra, the world leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, the French business school ESCP Europe and their joint ‘Fashion & Technology’ Chair examined the multiple ways the fashion industry’s ecosystem can use customer data, during a recent round table event at the start of the fifth Fashion Tech Week in Paris. The speakers included: Elise Beuriot, senior category leader, EU Luggage, Amazon, Olivier Dancot, VP of data, Lectra, Fabrizio Fantini, founder and CEO, Evo Pricing, and Gulnaz Khusainova, founder and CEO, Easysize. There are multiple ways in which the fashion industry’s ecosystem can use customer data. Analysis of customer data lends itself to limitless applications along the entire fashion value chain. Its impact is immense, whether in terms of customer satisfaction, competitiveness, revenues or waste limitation.
Fashion is an industry where unsold items generate a lot of waste. Algorithms and big data analysis can reduce leftovers by anticipating demand several weeks ahead in order to optimize the price and replenishment. Fashion companies who exploit data to inform their decisions become more efficient. They are better armed to protect their margins, but can also sell for less, and potentially reach a larger number of consumers.
A wealth of data offers many sources of inspiration for stylists. For teams in charge of collections, complex models allow the analysis of data like online traffic and purchase history in order to design and offer products consumers expect, which is a priority for a company obsessed by the customer.
For editors of software dedicated to fashion, and suppliers of cutting machines designed for the clothing industry, analyzing usage data enables the offer to evolve, making each step in the value chain more efficient and perfectly adapted to the needs of brands, retailers and manufacturers.
