FW
Bangladesh has launched the Center of Excellence for the Bangladesh Apparel Industry (CEBAI), aimed at improving the productivity of the country’s readymade garments industry through research and development. It will create skilled and semi-skilled workers through market-responsive training or through providing support for skill development endeavors.
The center will also regularly conduct research on the industry to keep it on the right track of development and act as a think tank for the apparel industry. CEBAI is the first such center established in the world. It would act as an important catalyst for the industry’s growth through research and skill development programs. It will provide all sorts of training and skill solutions, basic, regular and product based research, professional consultation and new market developments.
Swedish SIDA and retailer H&M are funding $1.5 million for the first three years of the project to be implemented by ILO. The skill delivery wing will be set up at Ashulia while the research and planning cell will be at Dhaka University and other activities would be conducted at private enterprises.
CEBAI aims to produce 6,000 skilled workers in two years. For meeting the growing global demand and export targets, Bangladesh will need 3.5 million skilled and semi-skilled workers by the next seven years.
India's cotton exports are expected to fall by 29 per cent in the ongoing crop year. The country has exported only 4.5 million bales of cotton so far. Exports have slowed down due to higher global stockpiles and a sharp decline in demand from China.
Total cotton exports from India, the world’s largest producer and the second biggest seller, stood at 9.9 million bales in the last crop year. The record volume of cotton stocks has put downward pressure on international cotton prices. The Cotton Corporation of India, which procures cotton at government set price from farmers, has procured 8.69 million bales of cotton at the support price as against the target of nine million bales in the 2014-15 crop year.
Cotton procurement has been stopped now as domestic prices have improved and arrivals have also tapered down. Cotton prices have increased by Rs 1,000 to Rs 1,500 per candy. CCI is offloading cotton at different rates depending on variety. Since it is a huge quantity, the sale would continue up to September. The country’s total cotton production has been pegged at over 40 million bales in the 2014-15 crop year as against 39.8 million bales in 2013-14.
India and Canada have signed two different MoUs for skill development in the apparel sector. As per the MoU, Canada’s Fanshawe College will help impart training with modern quality methods to Indian trainers and in turn they would give training with new concepts to workers employed in the apparel, made-ups and home furnishing sectors in the country. This would result in the availability of a larger number of quality master trainers. This would further ensure quality training in the apparel sector.
Skill enhancement is considered necessary in the apparel sector mainly to reduce the rejection percentage. Imparting quality training with the latest concepts would help to enhance workers’ productivity levels, which is currently lower in India compared to its competing countries.
India hopes to conclude the Comprehensive Economic Partnership Agreement (CEPA) with Canada by September 2015. Exporters in Tirupur welcomed this and say the CEPA would provide a good opportunity in future to boost India’s apparel exports to Canada. In 2013-14, total knitwear garment exports from India to Canada stood at Rs 680 crores, with Canada being the eleventh biggest destination for Indian knitwear exports. In the first ten months of financial year 2014-15, Indian knitwear exports to Canada were valued at Rs 565 crores.
India is planning to revive its ancient Indian Ocean pathways in an attempt to counter neighbouring China’s maritime ambitions. As Beijing is trying to fulfill its maritime ambitions through the silk route, New Delhi is considering introducing a cotton route that will help India shape its economic and strategic partnerships with other countries in the Indian Ocean region.
The Chinese initiatives, launched in 2013 would connect only coastal countries in south Asia whereas the Indian initiatives could increase New Delhi’s economic co-operation and strategic partnerships with almost all the countries in the region.
India’s Project Mausam will be implemented mainly to revive India’s ancient maritime routes and cultural linkages with neighbouring countries. The Modi administration has given a special emphasis on cotton as India exported the item to foreign countries for the first time way back in the first century AD. Since then, the South Asian country has emerged as a leading global supplier of garments made of top quality cotton.
It is evident in various archaeological discoveries from sites at the Red Sea ports of Berenice and Myos Hormos that India used to export cotton to a number of Central Asian countries via the ancient silk route.
A new range of inner wears for women developed out of Eri silk using knitting technology will soon be rolled out by the Central Silk Board (CSB) in association with Tirupur-based NIFT-TEA Knitwear Institute. According to Shankar Kotrannavar, Assistant Director of CSB, the technology to make the product has been evolved during a research conducted to bring out innovative products using silk with knitting as the base. Till now, clusters like Tirupur are predominantly into cotton-based knitwear products, he said on the sidelines of an event organised by the Board and NIFT-TEA Institute at Sripuram.
The new set of lingerie developed out of Eri silk is comfortable, light and has good thermal properties for winters and coolness in summer. Kotrannavar also hinted that the joint research being conducted by the Board with NIFT-TEA Institute would be soon developing more diversified silk-blended products that could be manufactured with knitting technology. Even though the Board usually promotes products with pure silk as raw material, it is trying to come out with products made of silk blended with other natural fibres such as cotton, modal and bamboo only based on the industry demand that was based on the trends, he said.
Fabric made of pure silk was little more expensive and hence, the industry was looking for blended products to cut down cost at the same time could offer the consumers the luxury of silk.
Smaller markets such as Orlando and Washington, DC and not the largest US markets like New York and Los Angeles are the top markets driving both growth rate and dollar volume increases for the apparel industry, says global information company, The NPD Group
New York and Los Angeles are the largest US markets in terms of apparel sales. These two top markets had strong performance across in-store and online channels. Among the top 25 designated market areas (DMA) in the US, online dollar sales of apparel increased for most, but only a handful grew in-store sales in the 12 months ending February 2015.
According to chief industry analyst of The NPD Group Inc, Marshal Cohen, the big regions were no longer leading apparel industry sales growth. “When New York and Los Angeles don’t even make it into the top 10 list of DMAs driving apparel growth, we have a big opportunity gap in the market. We need to understand the cause in order for the apparel industry to regain traction moving forward.”
Cohen further added that impulse purchases were the big growth driver. The strategy of driving traffic to websites needs to exist in tandem with efforts to drive traffic to the stores.Regardless of regional market size, or method of purchase, the apparel industry needs to engage consumers with something new and different – something they can’t find everywhere, he pointed out.
Online sales of apparel tell a different regional story. Overall, this segment, which now accounts for 17 per cent of industry dollars, increased 19 per cent in the 12 months ending February 2015.
At a meeting organised by Canada Bangladesh Chamber of Commerce and Industry (CanCham) titled ‘RMG Meet UP’ to discuss ‘Journey to the Next Milestone: Strategy for the RMG Sector’, North American buyers expressed keen interest in working with apparel makers from Bangladesh. They said they want to work together with the country's apparel makers to boost sourcing.
The CanCham has decided to organise such informal meeting every quarter between the country's apparel makers and its North American buyers to identify and address the challenges faced by the industry to boost RMG exports. The inaugural meeting was attended, among others, by Canadian high commissioner to Dhaka Benoit Pierre Laramee, local representatives of some leading RMG buyers in North American countries, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam and CanCham President Masud Rahman.
The issues discussed during the meet included infrastructure, power, eco-compliance, working condition, traffic jam, especially from Dhaka to nearest apparel belts like Gazipur, training to the mid-level management, product diversification and publicity of country's green and clean RMG factories.
Bangladesh's export to US totaled $5.4 billion in 2013, a 9 per cent increase from 2012 and up 158 per cent from 2003. Since January 2003, Canada allowed duty-free access to Bangladeshi products, due to which the country's exports, especially garment items, have seen a steady rise. Of the total exports from Bangladesh to Canada, 96 per cent are apparel items. Bangladesh exported goods worth $1.1 billion to Canada and imported goods worth $585.5 million in fiscal year 2013-14. www.canchambangladesh.org
INATEX-INDO INTERTEX-TECHNITEX 2015, the most influential event on textile industries in South East Asia, is scheduled to take place from April 23-25, 2015 at Jakarta International Expo (JIEXPO) Jakarta. The three binding exhibitions will set as an exclusive business platform for domestic and international quality supplier of textile and garment industries. The event themed ‘The Only Trade Platform to Meet ASEAN Garment Industry’, will have 490 exhibiting companies from 24 countries occupying over 12,000 sq. mt. space consisting of Hall A ( A1, A2 and A3) and Hall D (Hall D1). These exhibitions will give people an opportunity to meet international decision makers, developers and buyer of entire value-creation chain. The event is being supported by Indonesia Ministry of Industry, Indonesian Textile Association, Asia Nonwoven Fabrics Association, Indonesian Chamber of Commerce and Industry, Indonesia Exhibition Companies Association as well as other strategic partners.
According to exhibition project director Paul Kingsen, a new chapter under the name of TECHNITEX will be launched. It will be a special exhibition performing all vertical aspects of the raw material, products and equipments relating to nonwoven industries. Since Indonesia has a growing non-wovens and technical textile sector, there would be smooth transition of many producers willing to diversify from traditional textile production. There is one-day seminar on 23 April held by ANFA talking over the potential and opportunity of nonwoven industry to grow in Indonesia.
He further added that INATEX will show all range of material, products and accessories on textile industries. INDO INTERTEX will show new machinery and technology on textile and garment industries. These three exhibitions are also expected to attract more than 8,000 visitors from local and international business owners and professionals.
Bangladesh hopes to make Canada a key garment export destination. Of Bangladesh's exports to Canada, 96 per cent are apparel items. Between July and March 2014-15, Bangladesh exported goods worth $734.02 million to Canada and imported goods worth $495.80 million in July-February of the same fiscal year.
In fiscal 2013-14, Bangladesh’s exports to Canada were worth $1.1 billion while imports were $585.5 million. Canada has been providing support to Bangladesh to develop workers' skills and improve working conditions in the sector. The country has provided duty-free benefits to Bangladesh since 2003.
The growth rate of Bangladesh’s garment industry has been around 9 per cent over the previous year, which is slightly lower than the past five years' average of around 12 per cent.
Garment makers have been facing challenges of poor infrastructure, political crisis, lower worker productivity and a lack of experience of mid-level management. An inadequate supply of gas and a ban on new gas connections to the factories are the biggest challenges.
In spite of all this the sector is confident of achieving the apparel export target of 50 billion dollars by 2021. Currently Bangladesh is the second largest garment exporting nation after China.
Textile mills in Telengana want at least 50,000 bales of cotton a day to be allocated through e-auction at reasonable market prices. There are a large number of spinning and textile mills in Telengana. They feel the CCI is not offering sufficient cotton to them. The CCI is said to be holding 83 lakh bales of cotton all over India, and if this is so, this will suffice the mills’ consumption for another four to five months.
Telengana has about 10 lakh spindles of which eight lakh run on cotton and the balance on other fibers like synthetic and viscose. Poor availability of cotton is forcing mills to run on a partial basis or to procure from states like Maharashtra or Madhya Pradesh, an unviable option.
Mills in Telengana say cotton lint sales policy adopted by the CCI is not consumer friendly. They say that against a total arrival of about 57 lakh bales in Telengana, the CCI has purchased 50 lakh bales, amounting to 90 per cent of the total arrivals of raw cotton from the state. There has been a huge increase in price of cotton, making the total textile industry unviable.
The Telengana industry is labor and capital intensive, employing thousands of rural women workers.
