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Intertextile Pavilion Shenzhen will be held in China from July 5 to 7, 2018. Buyers will have around 38 per cent more suppliers to source from this year. With a strong focus on women’s wear, the fair features a wide range of premium women’s wear fabrics, lingerie and swimwear fabrics, printed fabrics, accessories and much more.
Intertextile Pavilion Shenzhen has consolidated as the go-to platform for Chinese women’s wear sector due to its location in the country’s fashion capital, while it is being increasingly used by suppliers from around Asia, in particular Japan, Korea and Taiwan, to gain access to all the big Chinese and global retailers who source at the fair.
Last year saw significant increases in domestic fast fashion-oriented buyers and online and designer brands, with many exhibitors offering flexibility in terms of small MOQs and on-demand deliveries to take advantage of these trends. The Fine Japan Zone will house around 12 companies, with a focus on high-quality cotton and manmade fabrics for women’s wear and casual wear. The Korea Pavilion will provide women’s wear fabrics including manmade, embroidery jacquard, tri-acetate woven and printed options, as well as knits, functional fabrics and faux fur. The Taiwan Pavilion features knitted, jacquard, woven functional and denim fabrics, as well as lace and embroidery.
The textile industry in South India wants a relaxation in cabotage rules for movement of cotton from Gujarat to Tamil Nadu by sea. It’s believed this will bring down the transport cost of cotton. Cabotage refers to the practice of imposing restrictions for movement of domestic cargo by foreign flag vessels.
The southern states account for almost 60 per cent of the spinning capacity in the country. However, a substantial volume of raw material —cotton — comes from Gujarat and Maharashtra. The industry sees scope for a 50 per cent reduction in transport cost if the cotton is moved by ship instead of lorries as done now.
About 10 lakh bales of cotton are being moved by ships from one domestic port to another for the last couple of years in Indian flag vessels. Relaxation of the rule will enable several foreign flag vessels to move cotton from one Indian port to another at competitive prices.
Every year, mills in Tamil Nadu buy 60 lakh bales to 70 lakh bales of cotton from Gujarat. This cotton (Shankar 6 variety) is popular for use in hosiery items. Textile processing facilities are spread across clusters in different states and hence transport cost is key to determining the cost competitiveness of the industry.
Gujarat’s textile and garment exports have fallen by 30 per cent after the cut in incentives that came with the implementation of GST. Export incentives for cotton and polyester reduced roughly by four per cent. This makes products more expensive in the international market and reduces exporters’ competitiveness.
The situation with apparel exports is no different. Exporters used to get duty drawback of 7.5 per cent before GST implementation. This has been slashed to 2.5 per cent, due to which there is a significant impact on exports. As incentives have been cut, the prices of products have increased.
For apparel manufacturers, it was a double whammy, as some key global markets like UAE imposed VAT on apparel exports from India. With duty drawback slashed, exporters were already struggling to generate export volumes at competitive prices, and they now face a stiffer competition in these regions due to changes in tax rates.
Sri Lanka and Middle Eastern countries are some of the key markets for garment manufacturers from Gujarat. With a cut in duty drawback, there is stiff competition from the likes of Bangladesh and Vietnam, both of which get tax incentives in addition to export incentives. Besides, these countries are preferential importers for several global markets. Gujarat accounts for 12 per cent of apparels exported from India.
The European Union is preparing to impose a new tranche of sanctions against Myanmar’s democracy-suspending, coup-installed military regime.
More than 2,000 civilians have been killed by junta forces, 14,000 have been arrested and more than 7,00,000 displaced. However there is a feeling sanctions would mainly impact already vulnerable female workers in the country’s export-oriented garment sector – and not meaningfully hit the military junta’s revenue streams.
Many garment sector jobs have already been lost because of Covid and the coup. There are supposed to be around 5,00,000 workers in Myanmar’s manufacturing sector. Currently, trade unions are banned and 301 union leaders have been arrested and 55 killed.
The EU reinstated Myanmar into its privileged trade scheme in 2013 during the quasi-democratic government. The Everything But Arms (EBA) trade scheme grants some of Myanmar’s export goods tariff- and quota-free entry to European markets.
In 2016, in response to the country’s democratic progress, the US restored much of Myanmar’s trade benefits that had been suspended for chronic abuses under direct military rule.With greater access to western markets, Myanmar’s garment exports increased five-fold from 2012 to 2019. In 2019, they were a third of Myanmar’s total export value that year. The EU was the largest purchaser of Myanmar-made apparel before Covid.
Surat textile weavers and processors have entered their third critical point in one and a half years. In November 2016, high-value currency notes were withdrawn, immobilizing Surat as its economy was largely cash based involving small processors and migrant employees. Last July, the industry was shut for long after the Goods and Service Tax was imposed, rendering a big blow to textile processors, whose cost increased sharply along with compliance burden.
Post GST, there has been a fall in Surat synthetic fabric production by a third. Daily operating shifts have reduced from three to two. Polyester yarn prices have increased six per cent to eight per cent in the past one month and 12 per cent to 15 per cent in the past three months.
This is happening at a time when fabric demand is low. Demand will revive only when the festival season begins a few months later. Due to an extra month in the Gujarat calendar, festivals will start with a month’s delay. Power looms have another problem. Synthetic fabric has five per cent GST but yarn attracts 12 per cent GST. This means when selling fabrics, they will not be able to claim full GST paid of yarn and hence huge amount of unused tax credit will remain in their books.
China is offering the United States a package of trade concessions and increased purchases of American goods aimed at cutting the trade deficit with China. The package includes elimination of Chinese tariffs already in place on US farm products including fruit, nuts, pork, wine and sorghum.
US aircraft maker Boeing would be a major beneficiary of the Chinese offer if Trump were to accept it. Boeing is the largest US exporter and already sells about a quarter of its commercial aircraft to Chinese customers.
China wants the US to set aside threats of tariffs on Chinese goods and US investment restrictions on Chinese companies. China also wants a relaxation of US export controls that ban American firms from selling certain high-technology products to China.
But getting to a reduction of the US China trade deficit on a sustainable basis would require a massive change in the composition of trade between the two countries. The United States’ two biggest exports to China are cars, aircraft and soybeans.
Agreeing to a deal focused primarily on reducing the trade deficit could also weaken America’s original tariff goal of pressuring China to end policies that it says are aimed at misappropriating US technology.
The 4th edition of Intex South Asia, the region’s apparel sourcing show will be held from November, 14-16, 2018 at BMICH in Sri Lanka.
The show provides a one-stop comprehensive sourcing and trading platform for global apparel manufactures, international sourcing and buying offices, buying houses, apparel brands and retailers, etc.
Intex South Asia is focused on transforming the South Asia region into a textiles and garments powerhouse. With Sri Lanka regaining GSP Plus, countries can make use of ‘regional cumulation’ to benefit from Rules of Origin (ROOs) when local sourcing for product input is not possible. Regional cumulation creates stronger regional co-operation between countries which are members of an EU recognised regional grouping like SAARC and countries which are GSP beneficiaries.
In 2017, over 200 exhibitors from 15 countries including India, Pakistan, Sri Lanka, Bangladesh, China, Korea, Taiwan, Hong Kong, Thailand, Indonesia, Singapore, Switzerland, Turkey, Australia and USA exhibited their 2018-19 Spring/Summer collections.
Buyers from more than 21 countries comprising India, Pakistan, Bangladesh, Nepal, Dubai, UK, Italy, Australia, Austria, Spain, Germany, Hong Kong, Taiwan, Malaysia, Uganda and Nigeria converged in Colombo for the show.
The show is endorsed and supported by leading trade bodies of the region.
The Indian textile and clothing industry registered a 5.37 per cent export growth during 2017 as against the global export growth of 3.94 per cent.
Countries like Germany, Vietnam, Spain and India are capturing the export space vacated by China.
During 2017, India was the largest cotton yarn exporting country, registering a 25 per cent global market share. Yarn export increased by 7.21 per cent during this year when compared to 2016.
The Indian spinning sector’s long pending demand for extending the MEIS benefit for cotton yarn export is yet to be considered. If considered, this would enable the Indian spinning segment to have a level playing field and utilize the surplus spinning capacity and also convert the 60 lakh to 70 lakh bales of raw cotton being exported into value added yarn and thereby create new jobs for several thousands of people and increase forex earnings.
The yarn market has gained momentum in recent times. The unsold yarn stock level is one of the lowest in recent years. Taking advantage of increased fabric demand, yarn prices increased to a certain extent during May 2018 when compared to the previous month.
The demand for coarse and medium counts especially open end yarn both in the domestic market and export market has increased considerably and several mills have got advance bookings.
"The 2018 edition of Intertextile Shanghai Home Textiles has collaborated with international forecasting firm NellyRodiTM Agency to form a trend committee with different fields of expertise in order to gain latest comprehension of international lifestyle forecasts. ‘Future’ is the keyword of the season and three themes have been developed to illustrate this keyword. The three themes are: Caring Future: A greener, more moral and socially oriented creation that draws inspiration from new eco-gestures and good altruist sense with a new credo – take care of nature and man."
Jointly hosted by Messe Frankfurt, The Sub-Council of Textile Industry, CCPIT and China Home Textile Association, Intertextile Shanghai Home Textiles is Asia’s foremost home textiles fairs. Reputed as an ultimate destination for the burgeoning Asia’s home textiles market, the fair is a great trade platform for home textiles and accessories for suppliers and buyers from across the globe.
Forecasting future lifestyles
The 2018 edition of Intertextile Shanghai Home Textiles has collaborated with international forecasting firm NellyRodiTM Agency to form a trend committee with different fields of expertise in order to gain latest comprehension of international lifestyle forecasts. ‘Future’ is the keyword of the season and three themes have been developed to illustrate this keyword. The three themes are: Caring Future: A greener, more moral and socially oriented creation that draws inspiration from new eco-gestures and good altruist sense with a new credo – take care of nature and man.
Crazy Future: Plays on whimsical surrealism and petulance, the master of light-hearted insouciance. It plants a seed of madness in creation. Emo Future:
Is new nostalgia for the origin of things and reconnects us to the essential. Neo-mysticism consecrates the elements and celebrates spiritual, benevolent nature. It inspires the perpetuation of traditions and rituals our ancestors practiced, in all their wisdom and humanism, to glorify nature
The three themes will be demonstrated and discussed throughout the four-day fair in a series of events, while exhibitors’ products that resonate with the themes will be displayed in the Trend Area. Trend Forum tours will also take place, allowing show attendants to learn and discuss with designers and trend experts about lifestyle trends.
Wide spectrum of products
As the leading home textillle trade fair in Asia, participants can expect to see latest items and discover the forthcoming market direction. To fulfill this, more than 1,000 suppliers from China and across the world will showcase a wide variety of products covering the whole spectrum of home furnishing, while trend forecast, which is being introduced during the show, will provide both exhibitors and buyers with insight and guidance to stay ahead of the market.
"With the evolution of the fashion industry, Yarn Expo’s position and importance in the market has evolved. As Wendy Wen, Senior General Manager of Messe Frankfurt (HK) elaborates, “Fashion brands are more experienced nowadays in yarn and fibre selection, and are having more impact on the look and function of fabrics, which is flowing through to the final outcome of the garment. The need for brands to stay ahead of latest fashion trends and textile innovations in a competitive environment makes it vital for them to source at a comprehensive event with innovative and quality suppliers. This has propelled Yarn Expo to become one of the most influential fairs on the textile calendar.”
Yarn Expo 2018, to be held from October 15-17, 2018 at the National Exhibition and Convention Center, Shanghai, is expected to attract over 500 exhibitors. The expo has, for long, been the leading choice of fabric manufacturers and has attracted numerous brand buyers.
An influential event
With the evolution of the fashion industry, Yarn Expo’s position and importance in the market has evolved. As Wendy Wen, Senior General Manager of Messe Frankfurt (HK) elaborates, “Fashion brands are more experienced nowadays in yarn and fibre selection, and are having more impact on the look and function of fabrics, which is flowing through to the final outcome of the garment. The need for brands to stay ahead of latest fashion trends and textile innovations in a competitive environment makes it vital for them to source at a comprehensive event with innovative and quality suppliers. This has propelled Yarn Expo to become one of the most influential fairs on the textile calendar.”
Widening buyer profile
She says, another trend at Yarn Expo is the strong demand for emerging products such as fancy and specialty yarns, and synthetic fibres. “During last
year’s autumn edition, 55 per cent more buyers attended the show as compared to 2016, 40 per cent more for specialty yarns and over 30 per cent for synthetic fibres,” explains Wen. This growth is also reflected in the number of trade buyers choosing Yarn Expo as their sourcing platform in recent years: from 7,375 in the 2015 autumn edition to 17,185 from 84 countries and regions last year. This in turn is attracting more exhibitors to utilise Yarn Expo as their business platform, with 258 exhibitors in 2015 growing to 493 from 13 countries and regions last year.
A connecting bridge
Yarn Expo’s buyer profile ensures the fair provides relevant business opportunities for all exhibitors. As Nadeem Akhtar, Marketing Manager, Hussain Mills says, “The main reason to attend Yarn Expo is to increase our customer base, and we’ve achieved this through the fair. Yarn Expo is the key bridge for us to keep connected with Chinese and Asian buyers – it’s the best show that we cannot miss.”
Mohammad Saad, Director, Abtex International, a supplier of cotton, melange and other yarns has been attending the Yarn Expo for more than 10 years. “This is the best platform for anyone dealing in yarns. You have buyers from all over the world, so Yarn Expo is the best fair in Asia for worldwide exposure,” he says.
Chemtax Industrial from Hong Kong a well-known agent of fancy and polyester yarn, and textile machinery is a regular and as Ricky Chan, Sales Manager states, “Yarn Expo is a strong platform to enhance our presence in this market and to interact with buyers. We saw many of our existing clients and potential business partners this edition.”
Singapore-based Texvista International, a supplier of a wide range of yarns is exploring the Chinese market but is glad that customers from Europe and America visited its booth. “This is a highly effective fair to meet Chinese buyers to learn first-hand what the market needs,” explains Rahul Gupta, Marketing Manager.
A long-term platform
Birla Cellulose, an Aditya Birla Group company, has been utlilising the fair’s prominent position since 2013 by successfully promoting its brand and products to leading Chinese and global players. The company’s initial experience proved successful and they now organise a Birla Pavilion at both the spring and autumn editions to showcase their own and their partner mills’ capabilities.
Sachin Malik, Senior Vice President (Sales & Marketing) shared the company’s experiences at the fair. “Yarn Expo is an important long-term platform for Birla, to be visible to the wider textile industry, and to connect to our customers and their customers through the entire value chain. Each edition, we see more and more buyers and more customers in the industry recognise the importance of this fair. With China being the largest market in the industry, Yarn Expo has developed into a premium event in the global textile industry calendar.”
