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Marks & Spencer, is working hard to push home its most ambitious project of overturning more than a century of retail history by taking full control of its supply chain. M&S has been undergoing many changes to adjust to changing demands of its, mainly middle aged customers. After hiring new designers, overhauling its online offering and giving a facelift to stores.
M&S has always relied on third party suppliers to create, manufacture and ship most of its garments. Taking control of the supply chain means a radical departure to create more flexibility in its quest to source faster. Long-term relationships with those mostly British-based firms, based on big orders and long lead times, helped M&S keep prices down and build a reputation for quality. But as its most loyal customers – women aged 50-plus – have become more fashion-conscious, middlemen have hampered M&S’s ability to quickly refresh supplies of fast-selling items before shopper interest tails off.
Shoppers often found the clothes were sold out in their size or were not appropriate for the weather even as new M&S women’s wear collections won praise from the fashion press. In contrast, nimble retailers like Zara-owner Inditex , H&M and Next, which have more direct control over factories, replenish their stores faster and offer a more frequent turnover of styles.
After a mild winter and delivery problems at the new online distribution centre hit Christmas trading, leading to a 14th consecutive quarterly sales decline in the clothing side of the business, pressure mounted on M&S Chief Executive Marc Bolland. But investors seem prepared to give him more time after his revamp of the supply chain started to bear fruit.
While taking tighter control of the company’s supply chain started several years ago, the final push is being given by Hong Kong-based brothers Neal and Mark Lindsey, whom Bolland appointed as joint sourcing directors last year. The pair previously worked at Next, where they pioneered ‘virtual manufacturing’, a process that enables designers to produce patterns and layout plans for cutting fabric so they can give precise instructions to distant factories.
Adopting the Next model is a big shift for M&S, which until recently ordered most of its stock through so-called full service vendors. M&S has already taken control in the last few years of most logistics for the 40,000-odd shipping containers it fills a year, leaving detailed product design and factory liaison as the last jobs to come in-house.
In Vietnam, textile and garment projects would only be licensed if they are located in industrial zones and investors pledge to satisfy the norms waste water treatment, said an official of the Dong Nai provincial Planning and Investment Department in Vietnam. The country has become choosy about licensing foreign- projects. There is a growing tendency for rich provinces to say ‘no’ to projects in labor-intensive and low-value added industries like textiles and garments. While textile and garment projects are welcomed in Nam Dinh, they are being turned away in other provinces. Ba Ria–Vung Tau, Dong Nai and Binh Duong provinces in the south and Hai Duong province in the north have been restricting projects in the field.
Nam Dinh provincial authorities reported that the locality has licensed 32 textile and garment projects with foreign funding. Of the four Chinese-invested projects licensed recently, two are in textile and dyeing segment, registered by Thien Nam Sunrise and Yulun Vietnam. The other Chinese enterprises, Luenthai and Sanshui Jialida, teaming up with Vietnamese Vinatex, are moving ahead with a $400 million project on developing Rang Dong, an industrial park reserved for textile and garment companies.
Other provinces too are considering adding textile and garment to the list of conditional business fields. Hai Duong is the latest province to be ‘reconsidering’ textile and garment projects. The provincial authorities have decided to temporarily stop trying to attract FDI to six business fields, including textiles and garments.
The 33rd edition of Bangkok International Fashion Fair and Bangkok International Leather Fair 2015 (BIFF&BIL 2015) took off on March 11. The grand opening ceremony was held at Fashion Show Stage, in Muang Thong Thani. The theme in this edition is: 'Catching the Creative Spirit'. The fair has on display, the best products, materials, design elements across segments found in Southeast Asia.
Apiradi Tantraporn, Deputy Minister of Commerce inaugurated the fair with a welcome speech. The opening event was followed by a performances and fashion show by exhibitors. The official launch of METI or projects of the Ministry of Economy, Trade and Industry of Japan, who participated in BIFF&BIL 2015 also took place with a pres briefing.
METI is a collaborative project with the Government of Japan, to support business owners with exhibition and distribution channels through international websites. Nuntawan Sakuntanaga, Director General of Department of International Trade Promotion co-hosted the press conference with Chairperson of METI. The briefing ended with a fashion show of products of the participants of METI project.
Speaking on the occasion Sakuntanaga,said, "Since the organisation of the first BIFF&BIL, the Department of International Trade Promotion or DITP has continuously sought new methods and strategies to support and promote business operators in order to enhance the business capacity both on national and international level. DITP has always been the mediator between stakeholders in the industry such as busiess owners, production, designers and consumers. Therefore, BIFF&BIL has proudly evolved into a hub or the center of fashion and leather goods."
To ensure that BIFF & BIL 2015 continues to be effective and marches towards the next level, the department hired consultants from abroad to study and recommend approaches to improve the event. As a result, the department came up with a fresh identity under the concept ‘Catching the Creative Spirit’. It focuses on bringing innovative idea selection in fashion and leather goods from Thailand and overseas operators. The department will also adjust the format of the event to keep up with changing patterns of business. The exhibition will be divided by new products and by fashion style, so that the buyers can easily access the products and make decisions quickly.
The event also features an exhibition to showcase Thailand and other countries readiness in entering the AEC, providing raw materials, technical development, production, design and new approaches of presentation. The department plans to invite more participants from abroad, especially countries in ASEAN to add more diversity and make the event interesting.
Zones in the forefront
The new zoning concept at BIFF&BIL 33 stages four zones, based on the style of fashion. The ‘Salon’ is for formal fashion and leather products. The ‘Street’ is set for casual fashion and leather items. The ‘Heritage’ shows unique fashion and leather styles of each country, such as silk, textiles and handicrafts. The ‘Source’ represents raw materials, textile fibers, textile products, machinery and chemicals for the manufacturing of all kinds of fashion products. A great number of exciting activities are also planned, including ‘Trend Forum’ to present the global fashion trends; ‘Eco Fashion’ to exhibit fashion created keeping in mind environmental concerns and ‘One-Stop Supply-Chain Integration’ for business match-making. The new zone will allow buyers to bring a desired sketchpad to show and the prototype will be made on order and they can receive it during the event. In addition, conferences and seminars are prepared to provide knowledge on fashion and leather by professionals and by world-class fashion influencers.
DITP’s efforts to attract buyers and visitors, has seen a significant increase in exhibitors. This year, a total of 527 exhibitors are participating with 831 booths, a 17.5 per cent increase from last year. International exhibitors from more than 10 countries such as Malaysia, Indonesia, Cambodia, Laos PDR, Vietnam, China, Japan, South Korea, India, Bangladesh, Israel, Italy, Spain, Germany and Sweden are at the event. Thailand is globally accepted as the center of fashion and leather industry that offers complete business cycle solution. In 2014, Thailand’s export value of the product in this sector is worth $7.4 billion (239 Billion THB).
Archroma, the global speciality chemicals business, says halogen-free flame retardant powder coating additive, Pekoflam HFC, has been certified by the Oeko-Text Association to Oeko-Tex Standard 100. The company also claims that Pekoflam HFC is an organic phosphorous/nitrogen compound that provides excellent performance on synthetic materials, including polyamide fibres and blends with possible applications including military and protective wear, transportation interiors, and high-quality upholstery.
The Oeko-Tex Standard 100 is an independent test and certification system for textile raw, intermediate and end products at all stages of processing. Examples of articles that can be certified include yarns, fabrics, treated fabrics, and manufactured articles including clothing of all kinds, domestic and household textiles, bedding, towels and soft toys.
The chemistry in Pekoflam demonstrates higher efficiency compared to commonly used nitrogen and phosphorous based chemicals, with the product also applicable in water-based systems as well as in the Oeko-Tex Standard 100 compliant ‘green’ solvent based coating systems, Archroma suggests.
According to Archroma’s global segment manager flame retardants, textile specialties business, Michael Schuhmann, the primary advantage of Pekoflam HFC is its ability to combine the effects and properties of selected halogenated and non-halogenated technologies in a fire protection solution for various coating polymers. Pekoflam HFC thus offers a sustainable long-term alternative for synthetic textile applications, meeting the criteria of the Oeko-Tex Standard 100 and responding to the general trend towards more environmentally-compatible materials and end-products that pose significantly lower risks to health, he claims.
Vicunha, the only manufacturer to offer 100 per cent grounded in BCI cotton products, exhibited for the third consecutive time at the ‘Denimsandjeans’ fair held at Dhaka in Bangladesh recently. The brand is likely to open a showroom in Dhaka soon with export 30 to 35 percent of its production to more than 80 countries. Currently, the company has factories in Brazil, Ecuador and Argentina and other business offices in Colombia, Asia and Europe is responsible for getting their products to the world.
Vicunha was the only non-Asian company to exhibit and was one of the highlights of the event. It presented articles that offer flexibility, recovery functionality and aesthetics. More than 1,300 visitors from 400 companies around the world visited the fair. Vicunha saw visitors from brands like G-Star, Zara, Gap and American Eagle.
Among the novelties present was the launch of Perfect Fit, super line ‘smart’, which offers perfect recovery, and ‘Emana Slim’, which brings to serge the bioactive crystals technology, stimulating blood microcirculation and cellular metabolism.
Thomas Dislich, Director, Vicunha (Europe and Asia), also participated in a roundtable on sustainability along with Italian denim, Adriano Goldschmied and Piero Turk, strengthening the ecological positioning of the company.
Wuxi Huayang Dyeing Machinery has developed a range of air-fluid, dual-use dyeing machines. These machines use both air and fluid flow in the dyeing process. They allow users to customize the dyeing process according to the specific types of textiles. They are equipped with a series of specialized and patented components, including nozzles, cloth wheels and cloth spreaders, which help ensure greater color evenness and reduce defects. Used on a wide range of textiles, they consume 60 to 70 per cent less water, 30 per cent less power and 40 to 50 per cent less steam than the traditional models of high-temperature, high-pressure dyeing machines, and reduce the use of additives by about 50 per cent while shortening dyeing time by 1 to 2 hours.
Wuxi Huayang is an operating company of Cleantech Solutions which specialises in metal components and assemblies used in various manufacturing industries, including clean technology, textile dyeing and finishing machines. Cleantech Solutions plans to showcase the new dyeing machines at Shanghai International Textile Industry Expo, June 15 to 18. The company hopes to attract more customers from both domestic and international markets, especially from South-East Asia, where textile manufacturers traditionally resort to expensive imports from Europe and Hong Kong.
www.huayang-bearing.com/en_about.htm
The Confederation of Indian Textile Industry (CITI) and the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) will organise the first manmade fiber textile conclave in Mumbai, March 17. Under the themes innovation, efficiency and competitiveness, the conclave will explore the potential and examine the constraints in manmade fiber sector and evolve measures to spur growth and investment in this segment of the textile value chain.
The conclave, which would also emphasise on the need for interdisciplinary cooperation along the processing chain, would bring together leading manufacturers, consumers and end users of manmade fiber products to enhance the business potential in this vital sector.
As a part of the conclave, a business session will be held on emerging trends in manmade fiber technology. This session will discuss latest technologies, fiber/filament innovations, changing technology, changing applications, and also issues related to fiber demand and long term opportunities.
The conclave will also hold two panel discussions. One on issues related to manmade fiber consumption and mill demand, which is considered to be growing, but below potential. Experts will discuss the issues which affect fiber consumption and capacity. Demand for manmade fiber products is expected to increase with the advent and wide applicability of technical textiles.
The second panel will discuss the international manmade fiber textile trade and growth opportunities for India.
Despite Parliament's adoption of amended law more than one and a half years ago, the Bangladesh government has still not set rules for implementing the amended labour law, a key requirement for regaining the country’s GSP in the US. Labour and employment secretary Mikail Shipar has said that the government was supposed to formulate the rules a lot earlier. But, is still taking stakeholders’ opinions to incorporate them in the rules. Considering opinions from many sectors that are under the purview of labour law has delayed the formulation of the rules, even though the draft of the rules has already been written, he added.
The government amended labour laws allowing full freedom of association by workers at the factory level after the industrial disasters of Tazreen Fashions fire and Rana Plaza building collapse. The government has also allowed formulation of more than 236 trade unions in garment factories over the last one and a half years under the amended labour law.
Citing serious shortcomings in workplace safety and labour rights, the US government gave a set of 16 conditions for regaining the GSP which was suspended for Bangladesh on June 27 in 2013. Amendment to the labour law and formulation of the rules were major among the 16 conditions which are collectively called the Action Plan for GSP retention. Bangladesh has already submitted progress reports on the Action Plan twice, to regain GSP. But, the GSP scheme is currently suspended by the United States Trade Representative, the chief trade negotiation body of the US government, for all beneficiary countries since July 31 of 2013. The government hopes the country will regain the GSP as almost all the conditions have been fulfilled, with both government and private sector initiatives.
The cotton policies of China, the world's largest consumer, have global consequences. China changed farmer support policies, began restricting cheaper imports through its import quota system, and then started selling from its reserve stocks last year. The resultant drop in Chinese demand impacted global prices and prospects for India, for which China is the largest export market. Chinese imports have shrunk about 70 per cent in the past three years. This apart, the alternative to cotton — synthetics — has also turned cheaper on falling crude oil prices, the USDA reports find.
Going by India Ratings & Research reports, India’s exports to China dropped 26.4 per cent between April and October 2014 and with China not absorbing the increased supply it put a lid on prices. Meanwhile exports to countries like Pakistan and Bangladesh picked up but overall exports are still low. Total exports will drop 23 per cent in the 2014-15 season over the previous one, the Cotton Corporation estimates.
Minimum Support Price (MSP) for cotton have moved marginally by Rs 50 or so adding to the woes of excess supply. Market prices are now ruling below MSP. In the medium term, the situation is likely to remain the same and prices for cotton may not see a sharp climb.
A fall in production has been predicted by the USDA as large producers such as China, the US and Pakistan reducing output. The Indian market is set to remain flat, but will still be the top producing region for the second year running. Much of the increase in demand is estimated to stem from Chinese market, which holds almost half the global stock. China’s cotton policies and import restrictions can keep up pressure on prices. In Indian markets too, the muted export climate and higher stocks can restrict price rises.
Ethiopia and Kenya have succeeded in attracting the attention of investors by creating favourable conditions, and many major brands are beginning to source from these countries. The reason: rising wages in China, labour unrest and violence in Cambodia, and ineffective compliance with rules in Bangladesh, a new report from the global business information company Textiles Intelligence reveals.
Several major foreign companies have invested in the textile and clothing industry and a number of high profile brand names have started sourcing from Ethiopia. Brands including Marks & Spencer, VF Corporation, and the Inditex brand Zara are reportedly in the process of setting up offices in the country. This is reflected in the increase in the employment and export figures of the country as apparel industry employment in Ethiopia doubled while textile and apparel export earnings rose from $12.6 million to $111 million between 2010-11 and 2013-14.
In Kenya, as many as 46 apparel manufacturing industrial projects were approved in 2013. This was a record level and was more than double the annual average of 19 projects approved for the period 2009-12. In 2014, delegations from several large companies interested in sourcing from Kenya visited the country.
