FW
The Ethiopian Textile Industry Development Institute has announced that the export performance of the textile sector has increased after amassing $75.28 million in the first eight months of the fiscal from international markets. Export performance went up by $9.9 million or 15.1 per cent higher than the same period in the previous year.
The country received majority of export orders from markets like the Europe, US, Asia and Africa. Among several local and foreign-owned companies engaged in the production of textile, the Turkish textile giant, Ayka Addis bagged the major share and has already earned $75.28 million of exported products.
The export components of textile products that were sent to the international markets consist of untailored garments, spine and woven, tailored garments and woven products. Another Turkish giant textile manufacturer, Akber has undertaken the development of biggest textile plant with a total initial capital of $175 million in the Ejere town of the North Shoa Zone, Oromia Regional State. The new factory is expected generate 9,000 to 10,000 jobs, which is larger than any operating textile factory in the nation.
www.tidi.gov.et
Jute spinners have observed that the sector's excess capacity is causing a reduction in export earnings. Experts point out that because of about 0.1 million tonnes of carryover, spinners are being forced to reduce the price products which is giving bargaining power to importers.
According to data, in the financial year 2012-13, spinners exported 0.516 million tonnes of products worth Tk 34.96 billion, which was 0.458 million tonnes worth Tk 33.67 billion in FY'12. Every ton of jute yarn was sold at Tk0.073 million in FY'12 which reduced to Tk 0.0677 million in FY'13. Bangladesh is the key source for jute yarn in the world, supplying 90 per cent of the global requirement of nearly 0.6 million tonnes, according to the Department of Jute (DoJ).
Carpet and other handicraft industries in Iran, Turkey, Egypt, Sudan (both North and South), Syria, India and China are the main destinations for Bangladeshi jute yarn. The number of jute spinning mills has increased to 96 recently from 80 mills five years back.
According to the state-run Department of Jute (DoJ), the country now has 96 jute spinning mills, where 80,000 workers produce 0.75 million tonnes of yarn annually. The sector exported nearly 0.52 million tonnes of yarn and fetched around 650 million dollars in FY '13, which was 67 per cent of the total earnings from the jute sector.
www.motj.gov.bd
Thailand's textiles, apparel and fashion industry is making a mark globally, more so in the Asian region. It has a good supply chain and strong trade with ASEAN countries. Sukij Kongpiyacharn, Chairman, Asia Fashion Federation Thailand (AFF) Committee speaks to FashionatingWorld about the fashion business in Thailand and its acceptance in the domestic, global market
Give an insight on Thailand’s textiles, garment and fashion industry.
In textiles and apparels, AFF Thailand has a good supply chain. We are one of the strongest textiles in ASEAN and 70 to 80 per cent of the material that we use is local. We do not import much and this is what makes the Thai apparel industry competitive, as we have the speed to the market. When a buyer is looking for verticalisation and regionalization, we have the material locally. Each year we do apparel exports worth $3 billion and the domestic consumption is estimated at $3 billion for the whole apparel industry, this excludes textiles which is about $6 billion. Our combined exports of garment and textile last year was around $7 billion.
What are Thailand’s strengths in the textile value chain?
A strong supply chain is our greatest strength. And the only weakness is lack of cotton fields in the country. Almost 100 per cent of the cotton consumed is imported from US, China, India and other countries. We have a strong supply of polyester, as we have a big oil refinery which is another major strength.
What is the fashion business in Thailand like?
Our estimate is that domestic the consumption is about $3,000. Exact statistics is not available. Exports are clear because there are government regulations in place and we check with members who are into domestic, we count the number and estimate the volume of business. We know it is growing because department stores are expanding at a rapid scale.
Of the international brands available in Thailand, are they producing most of the products locally or are they being imported?
It is a combination they are produced here as well as imported because a lot of commercial brands are not actually produced in Europe or the US these are being produced in Asia. And for brands in China, even though they have brands of US, it is being produced in China and brought to Thailand. Mostly the products sold in Thailand are produced within Asia.
What is the acceptance of Thai designers within the country?
The domestic market can be classified into many groups. Modern trade or discount stores, department stores, and designer boutiques and smaller shops, it is difficult to characterize. We have a wide variety of retail outlets and each and of them has their own uniqueness in design.
As a part of AFF (Asian Fashion Federation), what is Thailand’s contribution in the whole chain?
AFF was created with a belief that Asian fashion would influence global market. But a single country it is too small to make an impact, so AFF came into existence with China, Korea and Japan, later Singapore was added and Thailand and Vietnam became the fifth and sixth to join in. They are hoping to try and share knowledge to support the business. AFF was formed with the belief that together it could take fashion from Asia to the world and it will be able to enhance the trade in fashion.
What impact is the coming together of six countries creating?
It is getting clearer now that we should support young designers and need to explain more to our members about free flow of goods between ASEAN members as we have FTA. Due to some technical issues members are not aware about how to do multiple country shipment like when Japan is shipping goods from China to Bangkok and if the product is not right from Thailand and they want to move to Singapore or Vietnam they can ship it without paying the import duty if the documentation is right. These are the things that help to reduce the burden of AFF members who do business in ASEAN. As an AFF member, each year one member country has to host a conference and pitch for business. We invite every country as an exhibitor or visitor it’s more of a match making exercise. That is our main focus every year.
What is Thailand’s business relation with China?
We import a lot of material from China. Many here are afraid of China as their products are cheap and competing is tough. But sooner or later Chinese business will not matter to us and Thailand will benefit from exporting to China.
What about Indo-Thai business relations?
Although India is the 2nd largest textile producer it consumes a lot of what is produced domestically. Moreover, logistics is another matter as shipment from China to Bangkok takes about a fortnight. The trade in textiles and apparels are more towards Thailand, Taiwan and China as all the business has shifted on the eastern side. Business with India is possible but price, quality and delivery matters. Interestingly, most successful clothing and textile traders in Thailand are Indians. We don’t know many Indian exporters and don’t have experience with Indian manufacturers. Among the Chinese, the first to import from China are the overseas Chinese. The Indian community in Thailand should be the first to do big business with India.
Siddiqsons from Pakistan that offers a wide collection of denims showcasing its strong skills in laser technology and up-to-date processing and dyeing techniques has ranked fifth, among the top five denim manufacturers and retailers in Asia by WGSN, the world’s trend forecaster and provides comprehensive seasonal coverage and item-specific design recommendations from all significant fashion week shows. Recently in its report, WGSN reported about top five denim manufacturers and retailers in Asia.
First on its list is Advance Denim, a one-stop company for on-trend and fancy fabrics, presenting a wide range of different kinds of fabrics such as double-coloured selvage with laser mended-look denim. These are high on the fashion radar this season. Base Wealth follows on the second position. The company presents a wide range of special fabrics focusing on women’s fashion denim with soft Tencel mixed with power-stretch lightweight fabrics for summer. Multiple coloured and printed fabrics in stretch are offered as well as innovative jacquards.
Focusing on indigo primarily for Spring/Summer 2015, third ranker, Black Peony’s collection consists of soft-handle power-stretch fabrics for women, as well as a comfort stretch for men. It also shows indigo yarn-dyes, jacquards and Tencel in top and bottom weights.
www.wgsn.com
Indian yarn exports to China have slowed down because China has begun offering a lower price for Indian yarn on ground that rupee has strengthened against the dollar. Chinese price for Indian yarn has declined by 6 per cent to 7per cent over the past one month and is now quoting at 3.30 dollars per kg.
Also China is expected to announce its cotton pricing policy in the first week of April, due to which importers are taking a wait and watch approach before they place fresh yarn orders from India. With country’s famous cotton stock piling policy, it has also built a good stock of yarn, so they are expected to utilize the available stock before place new buying orders.
Of late, China has been importing cotton yarn from India to make towels, T-shirts, jeans and stockings. The country is now focusing on high-value products instead of spinning yarn, which has opened up a huge window of opportunity for Indian suppliers of the raw material. India has produced 5,210 million kg spun yarn in 2013. Of this, 3,847 million kg is cotton yarn. In the same period, the country has exported 1,366 million kg yarn, which is 42per cent higher than that of 2012. However, though Chinese demand for Indian yarn has slowed down, there has been good offtake from Pakistan and Vietnam.
Australia has invited Pakistan Cotton Ginners Association (PCGA) to participate in the international cotton conference organised by Cotton-Australia in August 2014. The country would also assist Pakistani ginners to adapt modern technology to make their business economical and profitable.
Experts say the raw cotton provided to ginners in Pakistan is one of the most contaminated in the world, probably because of substandard picking process, storage and transportation. Contamination affects quality of cotton, which in turn has a negative impact on prices in the market. The ginners use decades old machinery, outdated technology and unskilled workforce, which result into low productivity - reportedly one of the lowest in the world.
Of the total production of cotton the world over, roughly around nine per cent cotton is produced in Pakistan. The yield is the lowest in terms of quantity and worst in terms of quality when compared with other cotton producing countries. In the ginning process in Pakistan, fibre generally constitutes 33 per cent, trash eight per cent and seed 59 per cent of the total cotton produced. The trash level being that high causes considerable loss to the ginners because of lower prices in the market.
Also during the post-production phase, since the industry lacks marketing and negotiation skills to deal with local and international customers, they fail to get the best price for their product. Lack of government support, price mechanism, inflation and allied factors also play their role in adversely impacting the industry.
Due to a fall in export orders, Bangladesh RMG exporters have put labour recruitment on hold. The recruitment in the country's readymade garment industry, the largest job providing organised sector, has declined significantly in recent times mainly due to the fall in export orders and the hike in wage rates.
As per BGMEA data, the RMG industry on an average recruits more than 0.5 million employees every year. In the last eight months (July-February) of the fiscal 2013-14, RMG factories recruited nearly 50,000 workers, and the estimated recruitment stood at 4.00 million in the FY 2012-13 and 80 per cent of them were women, mostly coming from the rural areas.
A hike in wage rate along with high power tariff, falling export orders and other issues have compelled owners of the apparel units to put the fresh recruitment of workers on hold. As per industry experts, most RMG units usually expand at least ten per cent of their production capacity every year to match with the growing demand for products from the buyers. But, this year, most of the factories could not even utilise their existing capacity because of the decline in export orders.
In the past month, clothing chains Rivers Australia and Just Jeans, and bedding -retailer Pillow Talk have recalled items, including children’s jeans, coloured with ‘azo dyes’. These dyes have a tendency to break down into carcinogenic chemicals. Though not all azo dyes are a problem, many are known to create a risk after prolonged direct contact. While Europe has already banned such imports, the US has put restrictions in place, which could turn Australia into a dumping ground for such hazardous clothing.
The Australian Health ¬Department’s National Industrial Chemicals Notification and Assessment Scheme now wants to ban hazardous azo dyes from sale and it has recommended the Australian Competition and Consumer Commission to restrict imports of hazardous dyed clothing and textiles. But no laws or rules have been implemented to restrict their ¬import. ACCC recently tested 199 items in mainstream stores and found four pairs of jeans and a pillowslip affected by the dyes.
As per Australian Cancer Council some azo dyes were identified as strong cancer-causing agent in rats and mice fed and injected with the substance in the 1930s. So it has appreciated the fact that clothes coloured with azo dyes were recalled.
www.health.gov.au
Ready-made garment (RMG) factory owners as well as Bangladesh Garment Manufacturers and Exporters Association (BGMEA), have criticized the government’s move of imposing 6.96 per cent increase in power tariff. The industry body in a statement said that it will result in the reduction of competitiveness of the export-oriented industry.
BGMEA says in a statement, factors such as the increase in the RMG production cost by 13 per cent over the recent past and the rise in the value of taka by 8.0 per cent against the dollar have already constricted the export profit. A rise in power tariff would further adversely affect the export industry.
Bangladesh RMG factories have already been in the news for inappropriate working conditions and the recent calamities at Tazreen and Rana Plaza claiming several lives. Global initiative is now helping victims of the tragedy while also assisting factories improve their work conditions. However, now left-leaning fronts have warned of agitation if the government does not roll back a rise in electricity rates. The main opposition party, the Bangladesh Nationalist Party (BNP), and the left fronts held separate rallies in Dhaka near the energy ministry to protest the hike. Power prices have been raised 11 times since the Awami League-led government took office in 2009.
The country's experts have expressed concern over increase in electricity tariff which, they fear may jeopardise the country's industrial growth.
www.bgmea.com.bd
Jeanologia of Spain, the world leader in sustainable development of technologies for garment finishing, has now strongly positioned itself in the South American market. After bagging the WGSN Global Fashion Award for best sustainable design team in the world, the company participated in Colombiatex held on January 21 and 22 and also in the Première Vision Brazil, where it presented its latest technologies.
At Colombiatex, the company displayed the Flexi HS laser technology, eco-washing G2, E-soft and E-Mark software. Jeanologia designer worked with Colombian designers using the software E-Mark for getting the highest returns on their production.
At the Premiere Vision Brazil, Jeanologia exhibited the E-Mark software developed exclusively for the apparel design laser intended for more efficient production, allowing creation and improvement of designs on jeans. This is a user-friendly software, fast to design and multilingual. It has also a constantly updated database, artificial vision control, design preview, production time estimation and analysis of remote control. It helps optimize productivity and minimize production errors.
Leading brands in the Brazilian market such as Calvin Klein, John John, Colcci, Forum, Carmin, Damyller, Lança Perfume, Morena Rosa, Osmoze Stream Zara, Renner C & A, Marisa and Oppnus Sawary and Colombian brands such as Army, Be Kool, Pronto, Studio F, Kenzo, Willdy, Atmosfere, Supreme, CI Jeans, Chevignon and Tennis have installed sustainable technologies developed by Jeanologia.
Over last two decades, Jeanologia has been developing ecological textile technologies such as textile laser, oxygen and ozone garments washing and garment softening by nano bubbles. Jeanologia products and solutions are currently being used in more than 45 countries, including México, Colombia, Brazil, USA, Germany, Italy, Portugal, India, China, Russia, Japan, Morocco and Bangladesh. Major brands such as Levi’s, Polo Jeans, Abercrombie & Fitch, Edwin Japan, Pepe Jeans, Diesel, Hilfiger Denim, Salsa Jeans, and other large retailers such as GAP, Uniqlo, Zara, use techniques and technologies developed by Jeanologia.
www.jeanologia.com
