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Cotton Leads the program launched in 2013, focuses on responsible cotton production as well as responsible textile manufacturing. More than 125 international and local Cotton LEADS™ partners and supporters across the global cotton supply chain attended a one-day conference in Hong Kong titled ‘Moving Toward Sustainability in the Supply Chain’ recently. The Cotton LEADS™ partner conference focused on responsible cotton production, as well as responsible textile manufacturing. Updates on national-level improvement progress from cotton growers in Australia and the US was shared at the meet. The highlight of the day was a preview of a comprehensive and scientific assessment of cotton’s environmental impact the ‘Global Life Cycle Assessment for Cotton’, to be released in full over the coming weeks. The second half of the one-day event was dedicated to technical presentations and discussions with companies offering innovative textile manufacturing options. Among the presenting companies were: Mayer & Cie; Tonello Company; Bros Eastern and SPG Prints B.V.
Cotton Leads cotton producers operate with a system that is transparent, well-regulated, and that continues to reduce the environmental impact of cotton production. It has more than 360 partners including yarn spinners, textile and apparel manufacturers, retailers and brands. It aims at supporting responsible and sustainable supply chains and sourcing.
Cotton Leads is also actively involved in advancing responsible technologies and continuous improvement beyond the agriculture boundary. It is committed to responsible cotton production and is founded on core principles that are consistent with sustainability, the use of best practices and traceability in the supply chain.
This joint program, initiated by Australia and the United States, offers manufacturers, brands and retailers a reliable cotton supply and assurance that their raw material is responsibly produced and identified. Cotton Leads is driven by producers, scientists and professionals striving to make sure cotton is produced responsibly now and for years to come.
Cotton Leads gives the supply chain an opportunity to hear about responsible production progress at the farm level—directly from the growers implementing this progress—and to hear about the latest technologies from textile companies advocating sustainability downstream.
The sixth edition of Denimsandjeans.com Bangladesh is scheduled to be held on October 5-6, 2016 at Dhaka and the theme ‘Vintage Recall’. After launching the first denim show in Bangladesh, the organizers in the past three years have successfully managed to bring the international mills to a platform where they could watch the denim industry of Bangladesh. The objective behind the show has been always to showcase the importance of Bangladesh in the global denim industry. The 5th edition, which ended on March 3, 2016 at Dhaka, has received a positive response from all exhibitors as well as visitors. The two days of this denim show started with the opening remarks byGauhar Rizvi (Advisor to PM) followed by representatives of some reputed business communities.
The features of Denimsandjeans is not limited to being a trade show but is a denim event where a number of activities take place and bring together the global denim fraternity where they can share their views, ideas, new technologies, business propositions etc. and enable a closer bonding among them. The 5th show was no exception and a number of events took place including seminars, live video conferences, student competitions etc. This time the live video conferences by reputed denim designer Leopoldo Durante and Owner of Pizarro Laundries - Vasco Pizzaro, not only set a new benchmark but also showed the perfect blend of quality and technology together.
According to a World Bank report, top four apparel producers in South Asia: Bangladesh, India, Pakistan, and Sri Lanka, have made big investments in world apparel trade and account for 12 per cent of global apparel exports. As per the report, at a time when nearly one million people are expected to enter the workforce every month for the next three decades, export-oriented apparel production in India and other South Asian countries has the potential to create more and better jobs.
The report ‘Stitches to Riches? Apparel Employment, Trade and Economic Development’, launched in New Delhi is aimed at demystifying the global and South Asian apparel markets, estimating the potential gains in exports and jobs, and identifying policies that can unleash South Asia's export and job potential compared with those of their closest competitors in the Southeast Asia region including Vietnam, Cambodia, and Indonesia.
As wages increase, China, the largest apparel manufacturer for the last 10 years, is expected to slowly relinquish its lead in the global apparel market, opening the door to other competitors. This could be a huge opportunity for India and other South Asian countries. Even a 10 per cent increase in Chinese apparel prices could create at least 1.2 million new jobs in the Indian apparel industry, the report stated.
A new Wool Resource Center has opened doors in Hong Kong. The center is a global hub for all things wool, providing market intelligence, technical innovations and sourcing information for spinners, knitters, retailers, designers, students, garment makers and visiting woolgrowers.
The center was set up by Australian Wool Innovation. Hong Kong is a manufacturing hub for spinners and knitters with many global brands travelling there for sourcing trips. It has a long history in the sourcing of Australian wool. As part of its interactive program, Woolmark will also host seminars and training workshops for anyone who is passionate about understanding the natural properties of wool.
Wool growers travelling to Asia can use the centre for industry presentations, supply chain partners can showcase their product or host a launch, and designers can find inspiration and touch and feel the latest and greatest in wool. Importantly, it also connects the Hong Kong office of Woolmark with global players in the wool industry, acting as a permanent trade space with the aim to assist visitors improve business relationships and commercial outcomes.
The Wool Resource Center includes a library, a showroom and an events space for visitors to develop and enhance their education on wool. There are six separate zones including open-plan workspaces, a meeting room and an auditorium
Taiwan Man-Made Fiber Industries Association (TMMFA) chairman Hou Po-ming, feels Taiwanese textile industry need to develop into a complete supply chain and compete through quality instead of quantity as it is hard to compete with China through quantity.
As per latest data, China controls 73 per cent of the global chemical fiber market share while Taiwan only holds 2.9 per cent. Opportunities lie in high-end functional fabrics and other smart applications, the industry could make use of global trends in sports and leisure activities.
Meanwhile, Taiwan’s functional fabrics have a global market share of 70 per cent, with more than 50 per cent of the world’s fireproof fabrics produced in Taiwan and eight out of 10 yoga apparel lines sold in the US manufactured by Taiwanese companies. According to the association, the nation’s textile industry has the upper hand in research and design, as well as capability to supply high-end products to downstream industries, global brands and channel distributors. As the industry as a whole is responsible for the livelihood of 150,000 Taiwanese families, Hou urged the incoming government, which will take office on May 20, to work on joining regional economic agreements such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership soon to eliminate tariffs.
Pakistan and Turkey are working toward a free trade agreement. Currently, Turkey levies heavy duties on Pakistani textile products. The introduction of FTA would help Pakistan earn foreign exchange from the export of textiles as well as other products such as fruits and vegetables. It will also facilitate the provision of comparatively cheaper products to Turkish consumers. Pakistan views the free trade agreement with Turkey as the key to revive the textile economy.
The FTA between the two countries is expected to be signed before the end of 2016. Turkey mainly exports telecommunication equipment, televisions, textiles and machinery while imports from Pakistan include textile yarn, cotton fabrics, plastics and organic chemicals.
The two countries already have very close cooperation in diverse fields including defense and fighting war against terrorism and extremism. It’s hoped the FTA would spur joint ventures, besides increasing trade, as it would help lower the current high customs duties between the two sides.
Negotiations are being held in fields such as trade in goods, trade in services, intellectual property rights, competition policies and dispute settlement mechanisms. The two countries are embarking on new trade liberalisation initiatives.
The sale of apparel and footwear in the US through online portals has showcased a steady growth over the years from 2009 to 2014. The US online market (both B2B and B2C) is one of the largest and most sophisticated in the world and has matured rapidly over the past five years. Internet penetration in the country has increased from 71.0 per cent in 2009 to 87.0 per cent in 2014. The rapid increase in number of internet users has also been supported by growth in Smartphone usage. The number of smartphone users has witnessed a CAGR of 32.3 per cent during the years 2009-2014. The online sales of apparel and footwear have driven away the large proportion of revenue from the brick and mortar retail outlets. Such a trend has arisen majorly on account of greater convenience, affordable prices and variety of products offered by online portals.
Apparel products have registered a higher amount of sales than footwear in comparison. The online market for footwear in the US has performed sluggish in comparison to apparel segment. The online footwear revenues have showcased a consistent trajectory of growth from 2009 to 2014 at a CAGR of 15.3 per cent. Over the years, the market has reflected tremendous increase due to the rising of disposable income of the masses and an increase in affinity to shop footwear online.
Telengana will discourage cultivation of cotton from this year. Reason: fears that the cotton prices in the international market will come down and Telengana farmers may suffer. Cotton cultivation area will be reduced from the present 42 lakh acres to 15 to 20 lakh acres.
The decision is to discourage cultivation of cotton and encourage crops like soybean and maize. Arrangements will be made for sufficient seed of soybean and maize. Irrespective of cultivation area, soybean seed subsidy will be extended to all farmers. Earlier the subsidy on seeds was given only to farmers having five acres. Implements needed to sow soybean seeds would also be given to farmers on subsidy.
The World Trade Organisation passed a resolution on cotton exports in a recent meeting at Nairobi to which India was a signatory. India will remove export subsidies on cotton exports from next January. Though the Union Ministry of Commerce and Industry clarified that the Nairobi ministerial decision on elimination of export subsidies on cotton will, in fact, be good for Indian exports, as it will create a level playing field for farmers, Telengana fears cotton prices in the international market will come down.
Vietnam wants to develop its silk manufacturing as there is great interest for its products from silk experts, material suppliers, designers and customers. Vietnam’s silk products have great growth potential.
However, the need of the hour is to apply new technology to make silk products. Other Asian countries succeed with their silk products because they can uphold traditional brands and develop products with new techniques.
Silk products account for 0.5 per cent of the world’s commercial market share which is worth 1.15 trillion dollars. The figure promises great opportunities for Vietnamese silk manufacturers. However, it is not an easy task to develop Vietnam’s silk products.
Vietnamese companies put out hundreds of tons of silk every year, which is mostly exported to Japan. However, the quality cannot meet international standards because Vietnamese farmers breed degenerate silkworms. The problem is that silk producers in Vietnam cannot connect agriculture institutes and order high-quality silkworms.
There is a lack of cooperation among businesses, associations and research institutes in the country. Vietnam uses good weaving and dyeing techniques but they are getting obsolete and badly need up gradation. Now, Japanese manufacturers and experts are stepping in to improve the quality of silkworms. Vietnamese and Japanese universities are collaborating on research work.
Pakistan’s lint production has come down by around 31 per cent. High cost of inputs, weak prices, poor weather, increased pest attacks of pink bollworm and white fly are discouraging farmers from better crop management despite all efforts.
Pakistan is the world’s fourth cotton producer after China, India and the United States. The country’s area harvested is expected to decrease to 2.8 million hectares and yield is estimated at 28 per cent lower.
The decline in lint production has led to a decline in the annual growth of the country this fiscal year. Growth has declined by around 0.5 per cent to five per cent. Pakistan’s cotton production during the 2016 crop year has fallen to its lowest in 17 years, depressed by poor weather and pest outbreaks. This will force consumers to rely on imports to meet end demand.
The country may face a production deficit of around 3.5 million bales. Imports would stand around at 2.75 million bales. Asia is the major cotton producing region. China and India account for 54 per cent of the total world cotton production. India’s 2015-16 crop is estimated at 27.8 million bales, down six per cent from the preceding year on lower area.
