FW
The much-awaited Yarn Expo Autumn will commence in Shanghai from tomorrow October 11 to 13, attracting thousands of industry players looking for quality yarn and fibre products from China, Asia and elsewhere. As an effective and highly praised platform reflecting the latest industry trends and attracting worldwide buyers, Yarn Expo has been growing in popularity every year, with the number of exhibitors increasing to around 493 this edition, up from 319 last year. The exhibition space has also expand by 115 per cent, allowing suppliers to showcase more of their products. “Given the reputation of Yarn Expo as the best trade platform in the Asian region, suppliers are keen on joining to meet their potential customers here,” said Wendy Wen, Senior General Manager, Messe Frankfurt (HK). Suppliers from 13 countries and regions including Bangladesh, Mainland China, Hong Kong, India, Indonesia, Korea, Malaysia, Pakistan, Singapore, Switzerland, Thailand, Uzbekistan and Vietnam will participate in this year’s autumn edition.
Foreign participation
Being held in one of Asia’s major transport hubs, Yarn Expo gathers leading yarn and fibre suppliers from throughout the region. This year, the India Pavilion is once again a highlight of the fair, bringing around 40 leading Indian names to Shanghai. In addition, Better Cotton Initiative (BCI) as an international organisation which promotes sustainable cotton production, will join the fair for the first time with five spinners demonstrating their cotton yarn made from eco-friendly cotton. Another show highlight includes the returning Birla Planet Pavilion. Birla Group benefited from its participation in the previous Yarn Expo where it succeeded in increasing its brand awareness in China. This edition, they will form the pavilion with 16 companies to present a wide range of products, including Birla Modal and Birla Spunshades. The world’s largest rayon spun yarn producer, PT Elegant Textile Industry will also join as one of their important members.
In addition to these pavilions, Uzbekistan and Pakistan exhibitors will also return to the fair to cater to the growing demand for their high quality and competitive cotton yarn. The positive feedback from existing exhibitors along with the show’s growing influence has further attracted new exhibitors who are interested to develop in the Asian market. Rubberflex Sdn Bhd from Malaysia, the world’s largest manufacturer of advanced latex threads is one of the newcomers, and they are ready to showcase their renowned products with features of heat-resistance, high elasticity and durability. Last but not least, Indonesian companies are showing much enthusiasm towards the fair that more of them choose to participate in this week’s Yarn Expo Autumn. PT Indo-Rama Synthetics Tbk, for instance, will display viscose, polyester spun, melange yarn and other specialty yarns.
Domestic exhibitors in the spotlight
Domestic players’ will exhibit latest innovations from five highlighted display zones including Fancy Yarn Zone, Natural Cotton Yarn Zone, Colourful Chemical Zone, Quality Wool Zone and Green Linen Zone. Amongst the five highlighted zones, the Fancy Yarn Zone, which focuses on innovation, will double in size and accommodate around 50 companies this year. Fibre products under the theme trend, innovation, green and comfort will also be presented by around 200 exhibitors in the Colourful Chemical Zone. There is a wide range of products such as nylon, viscose filament, renewable and recycled fibres and more for visitors to discover in these zones.
Concurrent shows
Together with Yarn Expo Autumn 2017, three other textile trade fairs are held concurrently from October 11-13 in the same venue: Intertextile Shanghai Apparel Fabrics – Autumn Edition, PH Value and the China International Fashion Fair (CHIC). Yarn Expo Autumn is organised by Messe Frankfurt (HK); The Sub-Council of Textile Industry, CCPIT; China Cotton Textile Association; China Wool Textile Association; China Chemical Fiber Association; China Bast & Leaf Fibres Textiles Association; and China Textile Information Centre.
Kering is trying to sell its sports lifestyle brand Puma that it had purchased in 2007. One reason could be lack of synergy between Puma and the group's luxury labels such as Gucci or Balenciaga.
Puma’s sales are booming, and its financial indicators have been greatly improving for several quarters. Puma's dynamic market performance and its rallying operational margins could pave the way to a sale. The Kering group has finally recovered its outlay, after ten years, making Puma's sale more likely. Kering has a 86 per cent stake in the brand.
However, though Kering may intend to sell, there are few buyers who can afford an acquisition of this magnitude for a brand which is not yet as profitable as the likes of Nike or Adidas. So, Kering has several financial alternatives at its disposal: it could put Puma on the market, or demerge and distribute the equity among its shareholders. Through the sale, the French luxury goods giant could generate fresh capital for broadening its brand portfolio, and may prioritize an acquisition in the highly dynamic jewelry industry.
Sporting goods manufacturer Puma is based in Germany. Founded in 1948, it designs, develops and markets footwear, apparel and accessories. Puma offers performance and lifestyle products in team sports, running and training, golf and motorsport. It also has a dedicated line of golf equipment, apparel, footwear and accessories.
Lenzing has launched a new product, Tencel Luxe. This is a lyocell filament and is the first time Lenzing has entered the filament market. It will further support Lenzing’s shift to become a true specialty player in the botanic materials market derived from sustainable wood sources.
The smooth surface of Tencel Luxe gives fabrics a silky smooth feel and a liquid-like drape for the most sensual silhouettes. The filaments are naturally breathable due to their wood-based origin and offer outstanding color fastness, enabling designers to express bold color palettes where creativity knows no boundaries. They are the new player for sustainable high-end cellulose textiles by offering superior aesthetics, performance and comfort level that allow them to be the perfect partner with other noble fibers such as silk, cashmere or wool.
The eco-botanic lyocell filaments are made from wood pulp, which is sourced from sustainable wood in line with Lenzing’s strict wood and pulp Policy. They are produced using Lenzing’s pioneering closed-loop lyocell production process. This process ensures minimal environmental impact due to low process water and energy use and raw material consumption.
Tencel Luxe will open new markets for Lenzing and allow the company to participate in the premium segment of the fabrics market.
LVMH, the world’s biggest luxury goods company, saw a 12 percent rise in like-for-like revenues in the third quarter of 2017, beating estimates after a strong showing by its clothing and leather goods division. LVMH which owns fashion brands such as Louis Vuitton and Christian Dior as well as Moet & Chandon champagne and Hennessy cognac says revenues in the period came in at €30.1 billion.
Analysts had expected revenue growth on a like-for-like basis, which strips out currency swings and the effect of acquisitions or disposals, to rise 9 per cent in the quarter. The fashion and leather goods unit, the biggest contributor to LVMH’s earnings and which is powered by the Louis Vuitton label, posted like-for-like revenue growth of 13 per cent, in line with the previous three months and also beating forecasts.
Fashion label Louis Vuitton, known for its branded-luggage, leather handbags and sought-after outfits, remains a star performer. LVMH has also recently fully integrated Christian Dior into the group, which boosted non-organic revenue in the third quarter and helped offset a negative currency impact.
Like-for-like sales in LVMH’s fashion and leather goods division as a whole were up 13 per cent between July and September, unchanged from the growth posted a quarter earlier.
Première Vision’s first Vision Barometer, created to study the economy of creative materials for fashion, showed an uptick in textile production in 2016 and a slight downturn in leather manufacturing. The new index offers a quantified measure of business activity in the market of materials for creative fashion, the target of Première Vision shows.
The forecast for the rest of 2017 and beyond is one of some clearing amid climatic disturbances, as the industry deals with complicated issues along the supply chain.
The index provides a means to measure the global activity of creative materials, upstream from the activity of fashion brands. The results of the barometer allow exhibitors to compare their own performance on two levels–compared to that of their colleagues and competitors in the creative fashion market and compared to the more general activity of the global leather and textile markets.
For the full year 2016, the Première Vision Textile Index grew 1.7 per cent in volume compared to 2015. Manufacturing among Première Vision Fabrics exhibitors from developed economies grew 1.9 per cent, a much faster pace than the Textile World Production index, which fell 0.1 per cent. Within these economies, the activity of European players, up 3.7 per cent, was stronger than that of companies in developed Asian countries, a 0.6 per cent increase, represented mainly by Japan, South Korea, Taiwan and Hong Kong.
China has banned imports of solid waste, which the WTO has objected to. The US, European Union, Australia, Canada and South Korea have sought more information on which types of materials would be affected, with some noting that this issue is of great interest to their business sectors.
There is apprehension the ban would curb global textile recycling progress, prevent China’s manufacturing sector from accessing these recyclable materials and minimize other eco-friendly opportunities for recycling.
In July, China had notified the WTO that it would be imposing a ban on import of certain kinds of solid waste by the end of 2017 as a pollution control measure, similar to recent inspections and shut downs of factories across sectors including textile dyeing and finishing plants, in a wide-reaching effort for easing China’s pollution problems.
For recycled commodities such as recovered paper and fiber, and plastic and copper scrap, China accounts for more than half of the world’s total imports and these are very clearly valuable scrap commodities. The US wants to know if China is planning to extend the measure to cover ferrous and non-ferrous scrap. Canada wants to know the specific products China intends to ban as part of the catalog of solid waste that will fall under new restrictions.
American Pima cotton has evolved from a textile option to a global standard for premium cotton fiber. Demand for American Pima has increased through the entire downstream supply chain on a global basis. India is the top buyer. It’s seen as comfortable clothing in India’s climate. Yet there are obstacles.
One, is contamination from bale packaging in the making of cloth. Plastic fibers from bale packaging, especially white ones, intertwined in the cotton lint can render hundreds of yards of fabric worthless if not detected early in the bale opening portion of the manufacturing process. It has become so serious that China, one of American Pima’s biggest customers, is considering mandating cotton bale bagging.
US growers, ginners, merchants, and scientists are getting down to minimizing or eliminating foreign fiber contamination to increase demand for American Pima. Another challenge is more problematic. It’s sticky cotton caused by secretions from silver leaf whiteflies and aphids on cotton lint. Gummy cotton lint is a problem from start to finish in the manufacturing process. It is expensive to gin and costly in textile manufacturing.
The major issue is that some growers do not follow control programs because they are too difficult and expensive. However, one grower’s sticky cotton affects all growers at a gin.
HSBC will partner the Fashion Trust to provide international expertise and mentoring to the initiative’s grant recipients. HSBC is one of the world’s largest banking and financial services organizations. Fashion Trust is an initiative belonging to the British Fashion Council (BFC).
The partnership with HSBC is a great opportunity for designers supported by the BFC Fashion Trust as it will provide them with an unique platform to be mentored by a global financial leader.
BFC Fashion Trust is a charitable initiative founded in February 2011 to offer selected designers mentoring and financial support to promote the art and business of fashion. HSBC’s reach covers 90 per cent of the world’s trade flow putting it in a unique position to provide advise and expertise for designers and retailers as they look for growth opportunities and continue to set global trends.
BFC Fashion Trust is part of a group of BFC business support initiatives and charities aimed at supporting British designers and businesses from school level to emerging talent, and future fashion start-ups through to new establishment and global brands. The business support includes developing websites, e-commerce platforms and brick and mortar stores.
The British fashion industry is known for its creativity, innovation and iconic longevity.
Pakistan is hoping for a FTA with Vietnam. But Vietnam is Pakistan’s competitor in textile and hence, unlikely to import from Pakistan. Its rice needs are met by domestic production and neighboring Asean countries. Hence, it is highly unlikely that demand will be generated for Pakistan’s top exports through the trade agreement.
Vietnam’s imports in 2016 were worth $200 billion of which Pakistan’s share was just $239 million. While demand for Pakistan’s textile products will be limited, there is potential to export cotton, cotton yarn and fabrics. The trade agreement with Vietnam can easily head in a similar direction to Pakistan’s trade agreements with other countries: imports of expensive value added products and exports of cheap resource-based goods.
The potential to import from Vietnam is far greater, especially with 2016’s auto policy in place. But it seems unlikely that potential gains in cotton exports can offset imports of auto parts and similar goods. The Asean countries have a strong auto sector. Under the auto policy, new investors can import non-localised parts at a duty ten per cent lower than before. Localized parts can be imported at half the previous duty than before by new entrants. The purpose of the auto policy is to increase competition in the local market and push existing players to improve their quality and product. However, it can also have the impact of increasing the import bill as foreign auto parts become cheaper.
The Rebate of State Levies (ROSL) and duty drawback have been restored to pre-GST levels. Duty drawback which was introduced to boost exports stood at 7.7 per cent before GST was introduced. ROSL was introduced in March and was fixed at 3.9 per cent. But soon after the introduction of GST, they were reduced to 2.2 per cent and 0.39 per cent respectively.
But then they were brought back to their earlier levels and are likely to remain so for the next three months. This was because of pressure from the knitwear industry, which felt the country had already lost its international market share in knitwear exports and would definitely lose its competitiveness with other countries like Bangladesh and Sri Lanka.
Unlike the non-GST regime, exporters will be getting a refund of three to 3.5 per cent on excise duty and service tax. Still there will be deficit to the loss of incentives created by the reduction in the rate of drawback and ROSL.
Meanwhile the knitwear industry in Tirupur is eager for a free trade agreement with the European Union and the US. Sri Lanka has a free trade agreement for readymade garments with the EU, so buyers in Europe do not need to pay import duties for goods imported from the island nation.
