FW
Santoni has launched an innovative project called K-Fabric. This process transforms circular knitted mesh into linear fabric, giving high-quality and economic benefits. The possibility of transforming circular knitted mesh into linear fabric makes the K-Fabric revolution process the new manufacturing paradigm par excellence, in order to answer the rising production demand of the luxury sector, the changes in the supply chain model and the search for new materials. Thanks to the optimization of the supply chain – from the idea to production, passing through the prototype and the sample – the K-Fabric revolution process meets the modern fashion market’s demand of customized and fast production cycles. Using seamless production flexibility, it basically makes possible the creation of new potentially revolutionary items. Besides giving the opportunity to reach superfine gauges, this process can provide a natural bi-stretch effect without adding elastic yarns and easily allows the knitting of jacquard patterns of any dimension, complexity and placement. Moreover, the K-Fabric process allows with ease the mixture of fibers and a fast and sustainable production of small quantities.
Santoni is a world leader in the production and distribution of circular knitting machines. Santoni’s X-Machine is a four-feed knitting machine which uses sock knitting processes and concepts to produce seamless shoe uppers.
Global imports of artificial staple fibers rose 1.94 per cent in 2018. Total imports moved up 4.01 per cent in 2018 over previous year and is expected to rise 2.93 per cent by 2021. Italy, Honduras, Czech Republic, China and Bulgaria are the key importers of artificial staple fibers across the globe and together comprise 54.62 per cent of total imports. They are followed by Belgium, Spain, South Africa and Portugal. From 2013 to 2018, the most notable rate of growth in terms of imports was attained by the Czech Republic, Italy and Bulgaria. Global exports of artificial staple fibers increased by 18.49 per cent in 2018.
Total exports increased 13.19 per cent in 2018 over previous year and are expected to grow at 8.85 per cent in 2021. China, Germany, Austria, France and Italy are the key exporters of artificial staple fibers across the globe and together comprise 80.18 per cent of total exports. These are followed by Spain, Turkey, the US and Japan.
The global trade value of artificial staple fibers has shown a sharp growth in recent years. Total trade moved up by 8.85 per cent in 2018 over the previous year.
Iran’s garment output rose 20 per cent from March to December 2019. After the ban imposed on imports of clothing, domestic units are taking all endeavors to boost the quality and quantity of their products. Domestic units supply nearly 80 per cent of the requirement for clothing inside the country. Improving and boosting domestic production has been one of the major strategies that Iran has been following in the past two years. Providing the required working capital for production units and offering them facilities is one of the major measures being pursued to support such units.
The contracts and agreements signed with domestic producers have resulted in a reduction of foreign currency expenditure. Nine expert desks have been established for the promotion of domestic production in various areas including automotives, motorcycles, petrochemicals, and telecommunications, as well as copper and steel industries, and by the end of the current year seven more such desks will be held.
There is a big opportunity for existing textile and apparel plants to expand and for new entrants to set up shop. In addition the Iranian currency’s depreciation has provided an additional boon by cutting imports and smuggling, which are the nagging problem of the industry. Smuggled clothing costs Iran and its apparel producers heavily in lost revenues.
For the third quarter Burberry’s revenue was up one per cent. Sales were up three per cent. Growth was led by full-price sales, and while this was partially offset by lower levels of markdown inventory being available for the clearance sale and continued disruption in Hong Kong, that full-price focus meant the company still came out ahead. The size of the dent Hong Kong’s woes are making in luxury revenues could be seen from the fact that Asia Pacific sales only grew by a low-single-digit percentage even though Mainland China was up in the mid-teens. Hong Kong’s sales halved — a giant sales fall in what should be one of luxury’s most important markets.
EMEIA grew by a high-single-digit percentage, supported by tourist spend, which particularly benefited Continental Europe. And the Americas region was stable as the US grew by a low-single-digit percentage, although the figures were partially offset by a weaker Canada performance. Burberry also continued to see growth in apparel while accessories benefited from a fuller leather goods offering.
The company now expects the full fiscal year’s revenue to grow by a low-single-digit percentage. And the adjusted operating margin is expected to remain broadly stable, despite the impact of the disruption in Hong Kong.
Sportswear brand Nike, which is growing at double-digit rates in the Old Continent, expects to exceed $10,000 million annually in sales and end 2020 with record turnover in the country. For the first time, Nike exceeded Adidas in footwear sales in the Germany market. Between June and November, the brand’s sales increased 14 per cent in Europe, Africa, and the Middle East (EMEA) markets, and almost all of its product categories, from sportswear to other brands such as Jordan witnessed “double-digit growth.
The growth rate in this market is also higher than that of Nike on a global scale, since, at the end of the first six months of its fiscal year, which goes from June to May, its revenue rose 9 per cent, to $21 billion. On the other hand, net profit in Europe stood at €1.1 billion, 18 per cent more than in the same period of the previous year.
Nike’s strength in Europe contrasts with the downward trend of Adidas, whose revenue has declined in this market over the past two years. In the absence of knowing the economic results of 2019, Nike managed to stop the draining in sales in Europe and ended the first nine months with revenues of 4,668 million euros.
"Though many countries added climate crisis to the top of their agenda in 2019, many were not serious about the urgency of this issue. On November 4, 2019, US President Donald withdrew from the Paris Agreement by notifying the United Nations of its intention to leave. Cosigned by the US and 194 other countries in December 2015, the Paris Agreement aims to keep global surface temperatures to below 2°C above pre-Industrial Revolution levels and limit their increase to 1.5°C. According to a UN Environment report published in November 2017, the industry is on its way to achieve these targets. Trump’s decision to withdraw from the Paris Agreement at such time comes as a big blow to industry."
Though many countries added climate crisis to the top of their agenda in 2019, many were not serious about the urgency of this issue. On November 4, 2019, US President Donald withdrew from the Paris Agreement by notifying the United Nations of its intention to leave. Cosigned by the US and 194 other countries in December 2015, the Paris Agreement aims to keep global surface temperatures to below 2°C above pre-Industrial Revolution levels and limit their increase to 1.5°C. According to a UN Environment report published in November 2017, the industry is on its way to achieve these targets. Trump’s decision to withdraw from the Paris Agreement at such time comes as a big blow to industry.
Only two brands meeting emission targets
An October 2019 report by Stand.earth reveals only two major brands -- Levi’s and American Eagle Outfitters -- are taking enough measures to meet
the targets set by the Paris Climate Change Agreement. These two brands are putting the world on the pathway to 1.5°C or less of warming. Meanwhile, 14 other brands, including Burberry, H&M and Kering (owner of Gucci, Alexander McQueen and more) are on target to achieving 2°C.
Signed by over 40 brands — including Burberry, Stella McCartney and Adidas — the UN Fashion Industry Charter for Climate Action in December 2018 targets GHG emissions reduction by 30 per cent. However, this target falls short of the recommendations put forward by the Intergovernmental Panel on Climate Change (IPCC) in a 2018 report.
Reorganising supply chains to go carbon neutral
Now, over 150 brands have signed up to Autumn 2019’s G7 Fashion Pact which aims to achieve zero GHG by 2050 in order to keep global warming below 1.5°C until 2100. However, the agreement does not set a roadmap to achieve these targets.
In September 2019, Gucci and its parent company Kering announced its intention to go carbon neutral by reducing its emissions before offsetting the rest. However, since 90 per cent of these emissions are generated from the brand’s supply chain, these targets need to address the production part first. It is therefore, the responsibility of the world’s leading fashion companies to help catalyse major shifts across the globe.
Sri Lanka’s total textile and clothing exports were up by 5.7 per cent in 2018. Out of this, exports of clothing increased by 4.7 per cent in 2018 over 2017.
Sri Lanka’s textile manufacturing has been an organized industry since the 1940s and a clothing industry since the 1970s. It’s therefore, necessary for Sri Lanka to chalk out a new policy for textile and clothing aiming at attracting more investments, creating new jobs and adding value to the apparel industry value chain. The country’s real challenge is to be competitive and yet increase significantly the share of its value and volume in the market. For that it needs to bring in a new broad perspective and a paradigm shift. Its supply chain practices need a new look. The craftsmanship needs to be perfect and coupled with branded labels. Professional ethics and relationships need to be improved. Among the steps considered are a knowledge hub with emerging technologies and innovations such as AI and advancements in material science coupled with digitalization, big data and analytics to create the perfect platform for modern-day business. This needs a change in the ways of designing, sourcing, manufacturing and delivering.
Volatility, geopolitical risks, natural disasters, terrorist attacks and social media disruptions are all taking their toll on global supply chains.
By 2025, Inditex wants to ensure the cotton, linen and polyester used by all eight of its brands will be organic, sustainable or recycled. Inditex’s brands Zara, Zara Home, Massimo Dutti and Uterqüe have already eliminated the use of plastic bags. By 2023, all single-use plastics will have been totally eliminated. In 2018, only 18 per cent of the bags were made from plastic.
Inditex applies technology to its advantage. Using Radio Frequency Identification Technology, it knows which items get sold and where. The brand invests in client feedback with regular surveys to know which fashion items people are wanting to buy. Next year, all of the group’s stores will have been fitted with containers for collecting used clothing for subsequent charitable purposes, reuse or recycling. The clothing collection program is one of the cornerstones of Inditex’s circular economy effort. Inditex, based in Spain, is the biggest fashion group in the world, with more than 7000 stores around the world. Zara is its flagship brand and leads the pack with 2,266 stores. Zara has shorter lead times, which means it is always up to date with, if not ahead, of trends. Zara makes sure these clothing items reach stores as soon as possible.
India’s textile and apparel exports fell by eight per cent from April to November 2019. Exports were severely affected by the trade conflict of the US with China, the EU’s struggle with Brexit, growing geopolitical tensions in the Middle East and the removal of GSP benefits to India by the US. Under GSP, developed countries grant import duty concessions, in addition to prioritising purchase of textile and apparel products from some countries.
The delay in announcement of Remission of Duties or Taxes on Export Products is set to result in a further three per cent or four per cent contraction in apparel exports. Many textile players signed export contracts on expectations of continuation of the Merchandise Exports from India Scheme (MEIS), and the Remission of State Levies scheme. The delay in announcement has blocked the working capital of exporters. Since cotton yarn bears the same incidence of state and central levies, similar to made-ups and garments, the industry wants cotton yarn to be covered under the Rebate of State and Central Taxes and Levies Scheme and MEIS and also under the three per cent interest equalisation scheme.
India’s apparel exports to the US rose six per cent in April to November.
Declining by 27 per cent YoY in December 2019, both in terms of US dollars and Indian rupees to $641 million or Rs 4,521 crore, the export of basic textiles declined to about 2.3 per cent of total merchandise exported from India during the month. A year ago, the same group of basic textiles had accounted over 3 per cent of total merchandised export.
Shipment of spun yarns shipment declined 9 per cent in dollar terms to $312.50 million or by 8 per cent to Rs 2,204 crore. The unit value realisation of all types of spun yarn declined by 28 US cents to average $2.71 per kg. Bangladesh remerged as the largest market for spun yarns, topping both in terms of volume and value, having risen year on year. Exports of cotton yarns declined 14 per cent to $250 million or Rs 1,766 crore in 2019. Around 78 countries imported cotton yarn from India in December at an average price of $2.752 a kg. Exports of blended spun yarns increased 3 per cent YoY to reach $40 million in December. Around 9.9 million kg of PC yarns were exported during the month while 3.7 million kg of PV yarns were exported.
Shipment of all kinds of filament yarns increased by 15 per cent to 69 million kg and was valued at $104 million. In terms of value, exports of nylon and polypropylene filament yarn recorded significant increases.
