FW
In view of the intensifying spread of Covid-19 across the globe and the precautionary travel restrictions put in place by the Indian government, Messe Frankfurt India together with Gifts & Accessories, the Exhibition Division of Netlink Solutions have decided to postpone four co-located fairs – Paperworld India, Corporate Gifts Show, Interior Lifestyle India and Interior Lifestyle India presented by Ambiente India, slated for March 2020. Having received definitive industry feedback in support of this decision, the co-located fairs will now take place from January, 21-23 2021 at the Bombay Exhibition Centre in Mumbai.
Given the escalating situation with regard to the spread of Covid-19, the Indian government has taken strong steps on visa restrictions of foreign nationals. With a large international contingent from China, France, Germany, Japan, Korea, UAE, Taiwan and Thailand slated to participate at the upcoming co-located fairs in March, the ongoing consultations with the industry demanded a new analysis of the situation, close to the opening dates of the fair.
As per the travel advisory issued by the Union Health Ministry, precautionary travel restrictions have tightened entry conditions, making it impossible for large parts of the international exhibitors and visitors to participate and attend the fairs for regular business. Messe Frankfurt’s decision of postponement of the fairs has, therefore, received a swift, unanimous and definitive support from exhibitors as well as industry associations supporting Paperworld India, Corporate Gifts Show, Interior Lifestyle India and Interior Lifestyle India presented by Ambiente India.
“The current situation represents a major challenge for the MICE industry over the world. We have been in constant dialogue with industry players and keeping the interests of our valued exhibitors foremost, we felt it was imperative to take this decision at this point in time.” says Raj Manek, Executive Director and Board Member, Messe Frankfurt Asia Holdings. “We remain committed to delivering high-quality platforms for networking, and look forward to delivering a great show next year.” added Minesh Modi, Director, Netlink Solutions.
In China, there are about 530 million workers in the secondary and tertiary industries, needing atleast 530 million pieces of face masks a day. This is an on-going requirement and for more masks are needed for the people staying at home to go out occasionally for shopping or outdoor activities. Above this, how many more masks are to be needed, if the change of mask is more often being a single use mask? Roughly accounted, one ton of meltblown nonwovens can turn out 1 million pieces of Single use masks, more than 100 tons of nonwovens in this category can turn into 100 million pieces of masks, still far short of supply.
We have meltblown nonwovens, who has got mask machines?
Before the outbreak of the current epidemic on February 6, Sinopec, a China Petrochemical Corporation, was seeking collaborative production of masks with vendors having masks machines, because the petrochemical complex produces meltblown, the raw material for nonwovens facemasks. But now, the nonwoven raw material is not something it wants to supply to masks manufacturers for co-production, rather it wants to keep the raw material for its own production of masks, instead of selling out cross-aisle to the other sectors of industry.
We have mask machines, where is meltblown?
On the other side, BYD Company Ltd., was the earliest respondent to Sinopec’s appeal for mask machines, now calls even louder for cooperation by saying “ We have mask machines, but have no way of buying meltblown nonwovens!” BYD staff told media “Our company needs 5 tons of meltblown nonwovens per days, but we have only found a supplier for around 10 tons of it, barely enough to support consumption for two or three days, this too at a lead time of about one month.”
Obviously, BYD is not the only company troubled with meltblown supply shortage. Some mask manufacturers said that some suppliers for meltblown nonwovens went with an offer as high as 150,000 Yuan/ton, still very hard to get it even at this cost with cash-and-carry terms. This generally happens only for critical medical-purpose product applications and not for an ordinary civil consumption product.
In fact, 150,000 Yuan/ton for meltblown nonwovens is not the ceiling price at the moment. Mr. Chen, coordinator for raw material allotment to some of the mask manufacturing companies in Changyuan city, Henan province, told the media “The price for meltblown nonwovens rocketed from the previous less than 20,000 Yuan/ton to 300,000 Yuan/ton and even higher up to 400,000-500,000 Yuan/ton in the price offering.” 
Demand spikes up production with new lines
The demand/supply relationship here in the market as the mask manufacturers are starving for meltblown nonwovens, is driving up the raw material prices. A meltblown nonwoven manufacturer in Beijing has told CHINA TEXTILE that its price was somewhere at 18,000 Yuan/ton before the coronavirus breakout, and is over 400,000 Yuan/ton, 20 times higher at the moment today on March 8. “It’s like one-day-one-price business” he said.
The production of this special product is usually adequate for consumption, due to its small niche market, but the outbreak of COVID-19 goaded a lot of companies not only in textile industry, but also in the other sectors of the industry to invest in new lines or capacity expansion, including some new comers who shunted their lines to the mask production to keep abreast of the rising demand, intensifying the competition not to sell out, but to buy in when it comes to availability of meltblown nonwovens. On February 24, Sinopec decided to invest 200 million Yuan in 10 new lines which are expected to go into production as soon as possible, multiplying its daily output to 18 tons of meltblown nonwovens. Two new lines out of this new capacity are set up in Sinopec Yanshan Petrochemical Company in Beijing, which was supposed to go into production on March 8, 2020.
The meltblown nonwoven is the core filter of the sandwiched mask that is flanked by spun-bonded nonwovens on both sides, and it is often made of polypropylene which is the key feedstuff for making meltblown nonwoven. According to China Non-Woven and Industrial Textile Association (CNITA), there was about 53,400 tons of this product, roughly 146 tons every day on full-year count, which is not confined to mask application, it is also widely applied to the niche market for environmental protection, garment and diaphragm in battery. Based on its slim production capacity, about 20,000 tons of meltblown nonwovens for N95 medical masks are needed, that is to say, 50 tons a day in a year to meet the demand if we take into account the mask production for 6 billion pieces as was reported last year.
Demand outstrips even increased production
As the factories are rebooting progressively across the sectors in the whole country, workers are asked to wear mouth muffles. There are about 530 million workers in the secondary and tertiary industries that means, a need to provide atleast 530 million pieces of face masks a day. And how many more are to be needed if the change of masks is more often these being a single use masks? Roughly accounted, one ton of meltblown nonwovens can turn out 1 million pieces of one-off masks, more than 100 tons of nonwovens in this category can turn into 100 million pieces of masks, still far short of supply.
This on-going and potential driver for more masks not only for the people at work, but also for the people staying at home to go out occasionally for shopping or outdoor activities. Moreover, there are two sectors driving demand at fast speed right now, one for workers to come back to factories, and another growing demand as global spread of the disease at an accelerating rate, both factors will push the demand for more new lines even higher.
As the price has blown out, another worry grows, nevertheless. The quickly rising demand for new lines for meltblown production overwhelms the machine manufacturers who are unable to deliver on time, with a promise to fulfill the contract in 6 months, in September this year. The heat will soon quench if the coronavirus dies away and out, what will blow out when so many expensive production lines are here and there or even under construction?
Contributed by Mr. ZHAO Hong
He is working for CHINA TEXTILE magazine as Editor-in-Chief in addition to being involved in a plethora of activities for the textile industry. He has worked for the Engineering Institute of Ministry of Textile Industry, and for China National Textile Council and continues to serve the industry in the capacity of Deputy Director of China Textile International Exchange Centre, V. President of China Knitting Industry Association, V. President of China Textile Magazine and its Editor-in-Chief for the English Version, Deputy Director of News Centre of China National Textile and Apparel Council (CNTAC), Deputy Director of International Trade Office, CNTAC, Deputy Director of China Textile Economic Research Centre. He was also elected once ACT Chair of Private Sector Consulting Committee of International Textile and Clothing Bureau (ITCB)
Tailored Brands closed sale of the Joseph Abboud trademarks to WHP Global for $115 million. In conjunction with this transaction, it entered into a licensing agreement with WHP for the exclusive rights to sell and rent Joseph Abboud branded apparel and related merchandise in the United States and Canada, the firm said in a statement.
The omni-channel specialty retailer of menswear plans to use the proceeds from the transaction for debt repayment, which will strengthen its balance sheet and provide additional financial flexibility to invest in its customer-facing transformation strategies.
Brands owned by Tailored Brands include men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G. WHP Global is focused on the future of brand management. The New York-based firm specialises in acquiring global consumer brands and strategically investing in high-growth distribution channels and global digital commerce platforms, in addition to introducing new product categories that are relevant to today's consumer.
Eco-friendly denim manufacturing techniques require upfront costs from the mills that employ them. Sustainability is linked to research and innovation. If the company doesn’t invest, there is no innovation and, as a consequence, there is no sustainability. Organic cotton fibers, nontoxic dyes and other sustainable components are all more expensive than their conventional counterparts. Even machinery upgrades that allow for water, energy and chemical efficiencies require constant investment. Mills may have to incur additional costs to have their processes and products audited and certified by third parties to verify claims.
There are three main areas of investment for eco-friendly denim production--dyeing, recycling fibers and finishing. Sustainability is one of the biggest expenditures for mills because it requires a lot of R&D, new technologies, innovations and education. The more sustainable innovation a fabric includes, the higher the price point is going to be. Because there is always room for improvement, there is no way any business can be 100 per cent sustainable. Mills must therefore stay nimble, both in terms of their strategies and plans for financing.
But because sustainability measures often improve efficiency, many, if not most, initial investments are eventually recouped through cost savings. These savings are in terms of energy, water and chemicals.
Garment manufacturers in the Philippines expect their export earnings to be flat this year. Apparel production has almost halted due to delayed raw material deliveries from China, Korea, Taiwan and other Asian countries. The Philippines has to rely on imports of fabrics, textiles and accessories. Coronavirus (COVID-19) which originated in China has also affected several countries, including Korea, Taiwan and other Asian countries.
The Philippines has prepared a roadmap for the garment and textile industry. The plan covers the period 2020 to 2029. In the short term, the hope is to be among the top 20 garment exporters with an annual growth of 12.3 per cent in garment exports and a three per cent to five per cent increase in textile exports. This will be made possible with the increase in the utilization of natural and synthetic textile fibers by five per cent to ten per cent. In the medium term, the roadmap forecasts the Philippines to improve its world ranking in garment exports into the top 15 largest globally. It is expected to increase its garment exports by 21.7 per cent annually and natural and synthetic textile fiber exports by ten per cent. Infrastructure gaps and logistical bottlenecks will be addressed.
Ugo Ghilardi is chief executive officer of Itema. He has been with leading companies in the mechanical and automation industries. He has an extraordinary mastery of operations activities and a customer-oriented attitude. Ghilardi is expected to dedicate his extensive global leadership experience and proven track record in the industry to consolidating Itema’s current position and conquering new market shares, as well as developing the Itema industrial capacity and prowess that has always played a role of primary importance for the company and its shareholders. He will focus on reinforcing Itema’s strong positions in many important markets for the future and on serving Itema’s customers to deliver long-term growth and value creation. With Ugo Ghilardi at the head, Itema hopes to face with renewed enthusiasm new challenges and targets.
Itema is part of Radici and manufactures advanced weaving solutions including weaving machines. Its mission is to deliver to customers not only advanced and innovative products but an all-inclusive assistance as an integral part of the process. Innovations presented by Itema, tailored and customized for denim production, attract great interest from denim mills, impressed by the considerable cost-saving, user-friendliness and unparalleled innovative content of the Itema looms. Itema has developed rapier, airjet and projectile weaving innovations exclusively for denim fabrics.
The overall brand value of Latin American retail sector has risen 38 per cent. Investment in digital transformation was key. The most valuable retailers are driving customer engagement and business value with innovative business models, including omni-channel solutions, online and mobile platforms and digital payment systems.
Chile’s Falabella has developed an integrated digital retail platform to maximise its diverse portfolio and to leverage its omni-channel strategy. E-commerce company MercadoLibre has a presence in around 20 Latin American countries and has introduced new digital payment methods including QR codes and virtual wallets. Mexico's discount store Bodega Aurrera has aggressive expansion plans and opened new stores to help strengthen its distribution capabilities and physical presence in the region. Supermarket chain Magazine Luiza and fast fashion retailer Renner are from Brazil.
The Latin American region is one of the world’s leading producers of apparel and textiles. Mexico is the second largest exporter of blue jeans to the US; it is also the third largest exporter of knits and the fourth exporter in cotton pants. Worldwide, Mexico is the 13th largest exporter of textile products, and in the footwear sector, it ranks in the top ten. Latin America produces 15 per cent of all apparel purchased in the US.
Danish fashion giant Bestseller has responded to a report that implicated its brand Jack & Jones for the use of factories that are linked to forced labour. The brand refuted allegations of having any dealings with one company with which its name was linked and that another has well-established ethical and diversity practices.
A report from the Australian Strategic Policy Institute had said the brand and 82 other fashion labels were possibly profiting from forced labor, as Jack & Jones works with two Chinese suppliers, Youngor and Esquel.
But Jack & Jones and Bestseller do not have a cooperation with Youngor. However, [the label’ does have a strong and close cooperation with Esquel, which is one of the largest textile suppliers in the world and who are known for their focus on sustainability and strong business ethics.
Sonia Syngal is the CEO of Gap. Syngal has earlier been with Sun Microsystems and Ford. She joined Gap in 2004. She went on to become CEO of Old Navy, Gap’s value chain, after leading the portfolio’s global supply chain and product-to-market model, and serving as managing director of Gap in Europe.
Gap is currently the largest specialty retailer in the United States, with 1,35,000 employees and 3,727 stores worldwide, including 2400 in the US. The company’s management structure will be slimmed down in order to speed up decision making as well as a refreshed senior compensation plan, based around performance and accountability. Gap owns brands like Old Navy, Banana Republic, Athleta, and Hill City. Syngal is expected to deliver value from the portfolio of brands over the long term.
India-born Syngal, moved to Canada and later to the US with her family when she was a child. She is the highest ranked Indian-American female CEO of a Fortune 500 company after Indra Nooyi stepped down as Pepsi head in 2018. Although the number of women heading Fortune 500 companies is now at a record high at 33, they constitute only around six per cent of female CEOs.
Coats’ revenue has fallen two per cent in fiscal 2019. However, operating profit jumped 30 per cent. Sales in Asia grew one per cent. Growth across key non-China markets (Indonesia and Vietnam) continued to benefit from incremental volumes moving out of China (a dynamic that was exacerbated by US-China trade war uncertainty in 2019). Americas and EMEA (Europe, Middle East and Africa) reported decline in sales by seven per cent and three per cent.
The industrial thread manufacturer enters 2020 as a lean and agile organisation, having delivered significant positive strategic change through 2019. This was a year of continued growth in profits and cash, despite a market backdrop which saw lower than normal growth in retail sales of apparel and footwear, and temporary softness in some of the industrial end-markets. In apparel and footwear, this meant taking a bigger market share by delivering high quality products with world class levels of speed, customer service and support. However growth was impacted by slower demand for zips and trims due to certain in-year fashion trends and conscious low margin product rationalization as well as the impact of tail market exits and other customer/product portfolio rationalisation actions.
Coats is well placed to take advantage of the fast-paced and rapidly changing modern world by capturing the many opportunities.
