FW
"Till now, the US used to be main market for athleisure companies but now, the table seems to be turning towards China. The market of activewear/athilesiure in the US with a population of 321 million people is estimated at $44 billion, says a NPD Group study. While the category is expected to continue to grow trend as per Morgan Stanley forecasts will reach $83 billion by 2020. With rising enthusiasm for sports activities, more local consumers are engaged in various forms of physical exercises amidst accelerating pace of life and mounting work-life pressures."
Till now, the US used to be main market for athleisure companies but now, the table seems to be turning towards China. The market of activewear/athilesiure in the US with a population of 321 million people is estimated at $44 billion, says a NPD Group study. While the category is expected to continue to grow trend as per Morgan Stanley forecasts will reach $83 billion by 2020. With rising enthusiasm for sports activities, more local consumers are engaged in various forms of physical exercises amidst accelerating pace of life and mounting work-life pressures.
But the Chinese market is brimming with opportunities. At nearly 1.4 billion people that dwarfs America. It began exploring national fitness policies as far back as 1978. Following the 2008 Olympics in Beijing, the president of China, Hu Jintao, announced a government-backed sports-for-all fitness policy.
Growth Triggers for Activewear
Higher disposable income is also one of the many reasons for growing popularity in China. According to National Bureau of Statistics, China’s per capita disposable income increased 6.3 per cent year-on-year. IBISWorld’s Gym, Health & Fitness Clubs market research report shows the industry was set to generate $5.81 billion last year, an 11.8 per cent annualised growth between 2011 and 2016. Activewear study shows consumers who buy athletic apparel work out at least three times per week.
Euromonitor International did a Sportswear in China survey and found running to be increasing in popularity because it does not require a specific field or equipment, with low entry barriers for ordinary consumers. Meanwhile, runners can eagerly and easily share their successes via their personal social media accounts such as WeChat, to have a sense of accomplishment. The rising passion for running amongst average consumers gave rise to the rapid growth of running footwear and apparel.
Activewear is not just for exercise
The Activewear study showed they also wear it for running errands (40 per cent), shopping (42 per cent), around the house (39 per cent), out to eat or a movie (33 per cent), and doing yard work outside (27 per cent). Nearly 6 out of 10 consumers (59 per cent) choose activewear for other activities because it’s comfortable. Regardless of activity preference or exercise level, cotton (47 per cent) is by far the overall fabric preference for activewear, followed by cotton blends (20 per cent), rayon (7 per cent), and polyester (4 per cent), according to the Activewear study. Further, 69 per cent says it’s the only fabric/one of the few fabrics they consider when shopping for athletic apparel.
Chinese consumers currently do not own a lot of activewear pieces. On average, they own 2.5 T-shirts, 2 compression or tight-fitting shirts, 2 tank tops or sleeveless shirts, 2 pairs of shorts, and 2 pairs of pants. The Euromonitor research found athleisure is popular with younger consumers who wear it on a daily basis. More sports-inspired apparel brands aim to enhance their brand awareness and reputation by cooperating with fashion and sports media. In addition, these brands often incorporate popular topics or elements in their products, to set trends by launching limited editions. Vans, for example, joined with Disney and introduced a ‘Toy Story’ series.
The Activewear study finds Nike (26 per cent) and Adidas (20 per cent) are the top activewear brands purchased in China by all consumers, whether they are light or heavy exercisers, or even if they don’t exercise at all. With the rising enthusiasm for sports activities, more local consumers are engaged in various forms of physical exercise to keep fit amidst the accelerating pace of life and mounting pressures from life and work, especially amongst white collar workers, the Euromonitor informs.
General Director of the Vietnam Textile and Garment Group (Vinatex) Le Tien Truong says the industry’s good results last quarter was due to rapid growth from new markets. Exports to Eurasian Economic Union (EAEU) grew 115 per cent and the Asian Economic Community (AEC) saw growth of 17 per cent.
Statistics showed the industry earned $6.75 billion from exports in the first quarter of this year, up 12.4 per cent from the same quarter last year. Although there were many challenges in key export markets, including low growth rates of exports to the European Union and the United States of 6.3-6.4 per cent, traditional markets such as South Korea, Brazil and India maintained high growth 14-34 per cent.
There was good growth in exports of new products like swimsuits and raincoats at 29 per cent and 41 per cent respectively. Vinatex, had foreseen difficulties in European markets and the failed Trans-Pacific Partnership agreement before devising their own ways to promote business overseas with new products.
Stable forex rate is a problem for businesses, particularly Vietnam’s rivals, including China, India, Bangladesh, Pakistan, Indonesia and Malaysia, devaluing their currencies to keep their market shares. Truong feels textile and garment businesses always expect that in macro policies, there would be calculations to balance the Vietnamese dong’s forex rate and currencies of other countries to raise competition. The industry could reach its targeted growth rate of 10 per cent this year.
Switzerland’s textile and clothing industry has a long history. To remain competitive globally, the industry relies on innovations. The Sustainable Biomedicine Textiles research initiative was set up by Empa and Swiss Textiles, the Swiss textile industry association, for this very purpose. Through innovative approaches and knowledge transfer, researchers and players are working tirelessly together to promote innovations in the field of biomedical textiles, and to bring them to the market more rapidly.
René Rossi, Subitex Project Manager and Head of Empa's Biomimetic Membranes and Textiles lab says the company needs to give up the idea that development of textiles revolves around cotton T-shirts. Their research is focused on a wide range of ceramic, metal, wood, and synthetic fibers.
Many Swiss textile companies have also recognized this, successfully transforming themselves into specialist manufacturers of highly technical and high-quality products. They have networked intensively with researchers and have skilfully occupied economic niches. Empa offers its services as a research partner precisely because it draws a line from basic research, as in the case of the "Zurich Heart" project, all the way to products that are close to the market. For example, it has developed optical fibers that are used in hospitals to measure the vital functions of premature babies, or as biosensors with pH-sensitive fibers to monitor wounds. Other examples of applications include textile pressure sensors that can be installed in wheelchairs, for instance, in order to show incorrect pressure loads; textile plasters that release medication in a targeted way and a wettable chest strap that can be reliably used for long-term monitoring of electrocardiograms for cardiovascular patients.
Pitti Uomo will be held in Italy from June 13 to 16, 2017. This is a men’s wear and accessories show with 1,220 brands and collections—almost 45 per cent of which come from abroad. The show is held twice a year. At last year's summer edition, there were around 30,000 visitors and 8,500 foreign buyers. This time the exposition space is spread over 60,000 sq. mt. and will accommodate 220 new names and returning presenters.
The event will see the return of Paul Smith and Tommy Hilfiger. Christian Louboutin will organize a sporting event for Pitti and present a men’s collection. Iconic luxury shoe designer Christian Louboutin is renowned throughout the world for his signature red soles.
Last year Italy’s non-EU exports slowed, mainly due to the United States, which is still Italy’s third largest export market after Germany and France: the US dropped by 5.6 per cent. However, the United Kingdom, Spain, Japan, and Russia did well. The textile and fashion sector in Italy expects turnover in 2017 to grow by 1.7 per cent. The textile and fashion sector is the second largest in Italy. It believes fashion reflects and anticipates societal changes, which are difficult to interpret with traditional tools.
Pakistan’s readymade garment exports during the first three quarters of the current financial year increased 5.93 per cent. Towel exports country decreased 3.18 per cent. In the first three quarters of the current fiscal, textile group exports registered a negative growth of 0.89 per cent.
Exports of made-up articles excluding towels grew by 2.97 per cent in the last nine months of the current financial year. Knitwear exports during the period decreased by 0.07 per cent. The country is looking for a $500 million increase in textile exports in the next three months. The government is helping the entire textile chain to adopt and upgrade to new technology. Funds have been allotted to carry out research and bring about a qualitative improvement in industry-academia linkages.
Pakistan’s textile and clothing exports rose 6.2 per cent year-on-year in March. The increase was mainly due to value-added products such as garments. Customs duty was brought down to zero from four per cent. Likewise, sales tax was brought down to zero from five per cent. Exports of value-added products grew during the month, both in terms of value and quantity. Exports of readymade garments rose by 19.5 per cent and that of knitwear grew by 5.4 per cent.
CII has been calling for a single national tax for a decade and it will help make GST implementation as smooth as possible. Shobana Kamineni, President, Confederation of Indian Industry (CII) says the Industry is completely ready for the introduction of the Goods and Services Tax (GST) bill, a landmark tax reform expected to be rolled out from July 1.
The reform agenda has picked up with substantive policies such as GST, insolvency and bankruptcy norms, FDI liberalisation and ease of doing business being implemented. Conditions are positive for an economic recovery in the current year, with GDP growth expected to lie in the range of 7.5-8 per cent. Kamineni while addressing the media said while there are many opportunities available in India, further strengthening of the growth process and job creation is on the horizon.
Going forward, it is possible to target 1 per cent additional growth each year to reach 10 per cent in the next three years. She said that it is possible to create 5 million jobs each year, if the GDP growth rate can be boosted by an extra 1 per cent. CII's analysis shows as of now, it is creating about 3.7 million jobs annually. 10-12 million people enter the working age population every year. Of these, about half actually do not look for jobs as they prefer to go into education or other activities. CII's intensive skill development activities are ongoing and are designed to enhance the employability of the workforce continued Kamineni.
CII would continue to request the government for quick action in reducing corporate income taxes for all corporates. This has become urgent given the lowering of tax rates across many other countries. The 25 per cent rate is currently applicable only for companies with a turnover up to Rs 50 crores. Eventually, the corporate tax rate could be brought down to 18 per cent together with the removal of all incentives.
Indonesia’s textile and textile product exports grew three per cent from January to February this year. The country’s clothing and textiles are exported to mainly the United States, Japan, Turkey, China, and Germany. There is high demand for Indonesian batik cloth and other traditional fabrics. Indonesia is one of the largest textile and apparel producers in the Asean region. The industry employs approximately 17 per cent of the country’s workforce and contributes significantly to the country’s economy.
Textile manufacturers are looking at Middle Eastern countries as potential export destinations. However, domestic textile products have been losing their foothold in Indonesian market over the past five years. Imported products dominate 70 per cent of the domestic textile market.
Plans are on to curb imports of textile and textile products to protect the domestic industry and encourage development of upstream textile industry. The aim is to make Indonesia competitive in the international market with other Asian major textile makers such as India, China, Vietnam and Bangladesh. Another problem is that most of the country’s textile factories especially weaving and knitting sector still use old machines, which are no longer efficient.
The Indian textile machinery industry grew 10 per cent from 2013 to 2014. It’s expected to reach Rs 35,000 crores by 2021. The textile machinery sector plays an increasingly vital part in shifting India’s textile and apparel industry from labor-intensive production to a more advanced and industrialized sector. Spinning machinery segment is expected to see the fastest growth over the next five years. Much of this segment’s growth can be attributed to expansion of spinning machinery. High demand for cotton exports and expansion of spinning machinery capacities will help India maintain high demand for spinning machinery over the next few years.
The Indian textile machinery industry has been experiencing tremendous growth over recent years, facilitated by the country’s booming textile and apparel market. India is expected to be a leading textile producing country in the world by 2020 and the domestic textile and apparel market in India is estimated to grow at 12 per cent CAGR over 2020. The technical textile market in India is also showing a promising growth, at 18 per cent CAGR. All this is believed to further boost demand for and output of textile machinery in India.
India’s apparel exports to the US grew 0.8 per cent y-o-y in March 2017. India is the fifth largest apparel exporter to the US. The growth in export value was solely on account of an increase in volumes. During the month, export volumes increased three per cent while export realisation fell 2.1 per cent.
Despite a growth in exports in March 2017, India’s share in the US apparel import market contracted by 30 basis points. It stood at 6.5 per cent during the month. For the year ended March 2017, India’s cumulative apparel exports to the US decreased 2.8 per cent. This was solely on account of a 3.6 per cent fall in export realization. Export quantity grew by a meager 0.9 per cent. Despite a fall in exports, India’s market share expanded by ten basis points to 4.5 per cent.
As for other top apparel exporting countries to the US, China recorded an increase of 5.7 per cent in its exports in March 2017. The country’s share in the US apparel import market expanded by 40 basis points to 23.7 per cent. Apparel exports by Vietnam and Indonesia grew 15.7 per cent and four per cent. Vietnam’s market share increased by 140 basis points to 13.9 per cent and that of Indonesia remain unchanged at seven per cent. Bangladesh reported a 6.5 per cent drop in exports in March 2017 while its market share dipped 90 basis points to 7.6 per cent.
Africa Sourcing and Fashion Week will be held in Ethiopia from October 3 to 6, 2017. Many international textile suppliers and buyers are expected to attend the third edition of the biggest textile trade fair in Africa. Nearly 250 international exhibitors from 25 countries are expected to be present.
A conference running parallel to the trade fair will discuss the themes currently dominating the textile industry. It will focus on becoming particularly relevant to more and more fashion buyers and present new approaches to eco fashion and sustainable solutions. The spotlight will be on various issues, including sustainability, with particular focus on production, environment and certifications. A fashion show, trend area and matchmaking platform are some of the other highlights.
International manufacturers of textile machines will also be showcasing new technologies for the African market. Italian textile machinery makers will present a range of product innovations. Designers will also get specific information targeted at them. Presentations by experts on international fashion designed in Africa and future forecast on women's, men's and children's apparels are lined up.
Three new trade fair brands Texworld Addis Ababa, Apparel Sourcing Addis Ababa and Texprocess Addis Ababa will be launched at Africa Sourcing and Fashion Week.
