FW
At a recent global textlile trade show, Lenzing and The Woolmark Company signed a Cooperation Agreement and presented the partnership between the lyocell fiber TENCEL and Merino wool. The perfect fiber duo introduces a new dimension to high-end textiles and active wear.
Merino wool has been renowned as a fiber material for a long time and has always been used as a raw material in clothing and in home textiles. In the high-end segment, Merino wool is a highly desirable fiber. The end result can be extremely fine and glossy. TENCEL is ideal as a blending partner for Merino wool. The properties of moisture management and a smooth fiber surface are enriching factors when combined with Merino wool.
International brands have been successfully using the fiber duo in their collections. The blend is particularly popular among customers in Europe and the US. In internal retail analysis, it is striking that the TENCEL/Merino wool blend is often used in knitwear.
The blend is used predominantly in the active wear segment, according to Robert van de Kerkhof, CCO Lenzing. “Our activities will focus on woven fabrics with high-quality fabrics for formal suits, clothes and shirts. We are operating with wool blends in a high-end, segment with high margins and are interested in expanding this business,” he explains.
The best of two worlds TENCEL is of botanic origin. Merino wool is a protein fiber. The fibers unite the best of two worlds. TENCEL stands for a silky smooth drape and the blend with Merino wool demonstrates that the luxurious flow of the fabrics can create new and fashionable silhouettes
Thermal regulation is, however, one of the most interesting features of the blend. Both fibers absorb moisture vapour very well and create a pleasant micro climate on the skin. “It is also interesting that Merino wool becomes even more usable for summer with TENCEL and TENCEL becomes more suitable for winter as a result of blending with Merino wool,” Robert van de Kerkhof comments. “This means that the blend can be used whatever the season is.”
Business targets of the cooperation
The long term goal is to expand the high-end Merino wool market with TENCEL/Merino wool blends by 2020 and firmly establish this elegant blend in global collections. The product developments will be backed up with In-house developments and co-operation with external trend experts, especially for shirting are being intensified to inspire fabric manufacturers in Asia. Globally, the focus is on flat knits and circular knits for women’s outerwear, and for men’s and children outerwear.
India’s 2016-17 cotton production is forecast at 28.5 million bales. Yields are expected higher through a combination of better crop, pest, and weed management practices and a probable normal monsoon after two consecutive years of deficient rain.
Mill consumption is forecast lower than the 2015-16 marketing year as demand remains weak.
Planting decisions are largely driven by expected price realization, but additional factors such as the relative cost of production of competing crops, water availability, anticipated minimum support prices and a timely monsoon are crucial factors.
Farmers consistently exhibit strong preference for cotton relative to other crops. But India’s cotton yields remain significantly lower than the global average of 800 kg per hectare, a difference attributed largely to the relatively low plant populations that farmers seed in order to create rows that are wide enough for bullocks and workers to traverse. The area may decrease over the long-term as rising food demand and efforts to encourage food crop production prompt farmers to shift to other crops.
The advent of biotech cotton has improved the predictability and stability of cotton as a crop which has supported the expansion of cotton area in recent years. Arrivals may be lagging compared to previous years but larger supplies are being held in the supply chain among various stakeholders.
Bangladesh’s readymade garment exports to the US in 2015 rose by 11.74 per cent compared to the previous year. But in the first two months of this year they grew by 8.46 per cent compared to the same period last year.
However Bangladesh’s export earnings from the US declined slightly in February compared with that in the previous month.
If Vietnam gets zero tariff facility to the US market under the Trans-Pacific Partnership it would pose a severe challenge to Bangladesh. The country would have to enhance its productivity and skills to remain competitive. It would have to go in for upgradation and product diversification.
Exports of Vietnam to the US market grew by 22.73 per cent in the first two months of this year while readymade garment exports showed a 23 per cent growth. Earnings in January showed a 11.31 per cent growth while earnings in February posted a single-digit growth.
Apparel exports of China to the US market in the first two months of this year grew by 8.92 per cent compared to the same period last year.
India’s apparel export to the US market in the first two months of 2016 grew by 9.49 per cent compared to the same period last year.
Hanes Brands will acquire Champion Europe. Hanes intends to take advantage of its strong balance sheet to fund the acquisition with debt. It will acquire the privately held Champion Europe, based in Italy, in an all-cash transaction. The purchase price will be 10 times actual calendar 2016 earnings before interest, taxes, depreciation and amortisation, subject to adjustment for cash, debt and working capital.
Champion Europe, based in the US, is a leading designer, marketer and distributor of athletic apparel and accessories across Europe, Africa and the Middle East. It is defined by an American athletic heritage and a reputation for providing innovative and durable products for male and female athletes and teams throughout the world for a wide variety of sports.
Sauro Mambrini, chief executive officer and president of Champion Europe, will remain with Hanes Brands to oversee Champion Europe operations.
Hanes, based in the US, offers comfortable, attractive clothing for men, women and children, including T shirts, hoodies, underwear and more.
The acquisition is expected to close mid year 2016. Hanes has a vision for Champion as a global brand. Combining the Champion businesses will create a unified growth platform to benefit from the global consumer growth trend for active apparel.
www.hanes.com/
By 2022, California will be the state with the highest minimum wages in the country, making it an expensive place to do business. Currently, the federal minimum wage stands at $7.50 an hour.
In April 4, Governor Jerry Brown signed a bill that made California the first state to raise the minimum wage to $15 an hour by the end of 2022. Under a deal reached with state lawmakers last week, the state minimum wage will rise to $10.50 on Jan. 1 for businesses with 26 or more employees.
Annual hikes will result in a minimum of $15 per hour in January 2022. Smaller businesses would have until the end of 2022 to comply. Currently, California’s minimum wage is $10 an hour.
New York’s Gov. Andrew Cuomo also signed legislation on April 4 that will raise New York City’s minimum wage to $15 an hour by the end of 2018 before it spreads to the rest of the state.
For workers in New York City employed by businesses with at least 11 employees, the minimum wage would rise to $11 at the end of this year, then another $2 each of the next two years. For employees of smaller companies in the city, the minimum wage would rise to $10.50 by the end of the year, then another $1.50 each year for three years. For workers elsewhere in the state, the increase would be slower.
Bangladesh has revised the cash incentive scheme for the fiscal year 2015-2016, raising the rate of incentive for textile products exported to the Eurozone area and leather goods.
The rate of cast incentive for export of textile products to the Eurozone area has been increased to six per cent from the current four per cent. The sector gets cash incentive as an alternative to the duty bonds and duty drawback facility. The rate of cash incentive for export of leather goods has also been increased to 15 per cent from the current 12.5 per cent.
Exporters who have already received the cash incentive at the existing rate will also be allowed for the additional benefit.
Exporters would receive cash subsidy for the products against net repatriation of the FOB (freight on board) prices. Bangladesh will shore up and offer incentives for export-oriented industries. Six export products alone account for nearly 90 per cent of the country’s yearly export earnings.
Bangladesh’s exporters have been passing through a torrid time in recent times because of the euro zone crises, higher production costs and infrastructure deficiencies.
The country offers export incentives for agro products such as vegetables and fruits, leather goods, home-made textiles and jute goods.
The National Fire Protection Association (NFPA) has released the Bangladesh ready-made garment (RMG) industry high level assessment report. It presents an appraisal and gap analysis of Bangladesh’s fire and building safety standards, inspection procedures and training programs.
The final report includes short-term and long-term recommendations that provide a road map for sustainable electrical, fire and life safety in RMG manufacturing facilities in Bangladesh.
NFPA and the University of Maryland were invited by the Alliance for Bangladesh Worker safety (the Alliance) to provide an independent review of their factory upgrade program designed to improve worker safety.
The Alliance identified a sample of 14 factories currently undergoing remediation in the Dhaka region of Bangladesh. The project team to visit the sites, observe building operations and interview key stakeholders in the building industry.
Based on these activities, NFPA made recommendations for the government officials and other stakeholders to undertake efforts to institutionalize sustainable worker safety enforcement programs.
“The Alliance has been working hard to meet its goal to create a safe environment for workers in Bangladesh’s factories, and its results-oriented process has helped make progress within the industry, said Don Bliss, NFPA’s vice president of Field Operations.”
The success of the suggested methods for improvement after the Alliance timeframe expires will depend on the concerted efforts of all stakeholders in Bangladesh RMG fire and life safety.
Australia is ready to eliminate import duties on all items from India. About 90 per cent immediately and the rest over the next five years. As part of the proposed free trade agreement (FTA), the country’s special envoy for trade Andrew Robb said the free trade pact officially known as the Comprehensive Economic Cooperation Agreement (CECA) is likely to be freezed in about 6-8 weeks.
According to Robb, this would translate into import duties on more than 9,000 items out of about 11,000 exported to Australia coming down to near zero as soon as the pact gets implemented and benefit sectors like auto parts, textiles, leather and pharmaceuticals.
The country has also agreed to ease visa norms for Indian workers as part of the pact, especially for intra-corporate transfers (ICT), the trade envoy said. In both goods and services, we have offered India the best of what we have extended to our other FTA partners.
Lower duties
Australia, on its part, wants India to lower duties in wines and high-end dairy products collaborate in the services sector and provide stability on investment policies. “We understand the sensitivities that India has in the goods sector. But, there are certain items such as high-end dairy products and wine where there is no domestic competition and duties can be lowered,” Robb said.
The proposed India-Australia Comprehensive Economic Cooperation Agreement (CECA) seeks to lower barriers in market access for goods, services as well as investments and bring about alignment in customs procedures and standards. Australia has signed FTAs with China, South Korea and Japan in the last two years and is also part of the US-led Trans Pacific Partnership (TPP).
Robb said that while Australia could provide expertise to India in a host of services such as construction, engineering, water management, health and education, it wanted the CECA to provide an assurance that India’s policies related to investments in a particular sector would not change in the middle of project-execution.
Currently, India-Australia bilateral trade was about $14 billion in 2014-15, with Australian exports at $11 billion and Indian exports just at $3.2 billion. The two countries hope to increase two-way trade to at least $40 billion by 2020, which would still be much lower than Australia-China’s $160 billion worth of annual trade.
‘UKP Brand Protection’ provides brands with a covert anti-counterfeit measure integrated into garment labels and trims. U.K.P. Accessories has introduced revolutionary anti-counterfeit technology that allows a covert material to be integrated into various garment labels and trimming products. The technology will allow brands to produce garments and accessories carrying labels and trims that can be quickly and easily authenticated to ensure they are genuine.
“With counterfeiting, an issue of high concern for clothing brands worldwide, ‘UKP Brand Protection’ provides a cost-effective solution that can be easily implemented,” explains Steve Starkey, Managing Director of U.K.P. Accessories. “We work with brands to find a solution that fits into their anti-counterfeit procedure which is enabled by the flexibility of application of the technology.”
The covert material is integrated into products during the production process and is a permanent part of the label or trim. Swing tickets and other printed items can have the material combined with printing inks, while with woven labels, the material is mixed with the polyester yarns. A simple detector is then used, providing the user with a light and sound notification to authenticate the presence of the anti-counterfeit material.
Another feature of the technology is that it is entirely covert, not only being invisible to the naked eye, but also not visible under any special lighting such as UV and infrared. This ensures it cannot be copied and only verified using the specific detection device. “We are excited to be able to offer our innovative solution to brand owners and managers and help bring some peace of mind to counterfeit struggles.” added Steve Starkey.
U.K.P. Accessories provides garment branding solutions to clothing brands worldwide, with offices in the UK, Hong Kong, India and China. The company produces a wide range of garment labels, trims and packaging products, created to customer’s bespoke requirements.
Bangladesh may overtake China as the world’s biggest cotton importer in the current crop season thanks to strong demand from apparel makers. In the year ending July 31, 2016, Bangladesh may import a record 5.75 million bales of the fiber, up 6.5 per cent from a year earlier.
Bangladesh’s share of the global cotton export market doubled from 1995 to 2012, mostly because of the strong performance of the garment sector. The country imports 50 per cent of the cotton from India. It was 22 per cent six years earlier. Due to the higher quality, lower prices and shorter lead time, India has become the largest cotton sourcing country for Bangladesh. Much of Bangladesh’s apparel export is fuelled by cotton sourced from India.
About 14 per cent of cotton imports into Bangladesh come from Africa. The main African countries are Zimbabwe, Mali, Ivory Coast, Uganda and Zambia. Bangladesh is almost entirely dependent on raw cotton imports for the export market. More than 40 per cent of the imported raw cotton and 80 per cent of the imported yarn and fabrics are used by spinning mills and the readymade garment sector to meet the export demand.
