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In terms of skill base in the garment industry, Pakistan is way behind Sri Lanka and Bangladesh, Firoz Rasul, the president of the Aga Khan University, says. He was speaking as the chief guest at the 17th convocation of the Textile Institute of Pakistan (TIP) held at, Bin Qasim (Ghakkar Phatak). Rasul said he admired TIP’s work, significance and its impact. He added that textile was one of the most important sectors of the country and considered the backbone of Pakistan’s economy.
Pakistan was the eighth largest exporter of textile in Asia, fourth largest producer of cotton and third largest consumer of cotton in the world. It is also the world’s second largest cotton yarn exporter and third largest cotton cloth manufacturer and exporter, he informed. He appreciated the fact that the sector provided employment to about 40 per cent of the industrial labour force and accounted for eight per cent of the total GDP.
However, Pakistan lacked quality and innovation in engineering and technology development. Rasul also highlighted the energy crisis, shortage of gas supply and power cuts for the reducing number of textile mills in the country. He observed production capability was low because of obsolete machinery and technology while in the long term, cotton as a crop would not be viable in Pakistan with its scarce water resources.
Denim designer Maurice Malone of Williamsburg Garment Company (WGC) believes the US garment manufacturing industry is poised for growth driven by small to mid-sized brands. WGC is an American denim brand manufacturing in US Malone is a 30-year veteran of clothing design and production. WGC is doing its part to drive American infrastructure as it expands into manufacturing its own knit products and establishing a manufacturing line for others to utilize.
On why denim manufacturing has moved overseas, Malone says it was not fair to say automation and foreign production didn't erode the American garment manufacturing industry, on the contrary it were manufacturers themselves. The goal of corporations is to maximize profits for investors. In contrast this was against the Chinese philosophy of keeping people working by choosing larger volumes for smaller margins while sacrificing higher profit per piece.
On why manufacturing units moved overseas, the Malone opines Americans almost always choose to buy cheaper textiles than buying American. That is why American producers not claiming the luxury sector must find ways to steam line production process and offer a better product at competitive prices as per the WGC goal. Consumers seek lower cost products, companies move production to lower cost areas to stay competitive. This happens even if people want to see products made in America.
Aiming to reverse the snowball effect, Malone believes Americans should start small and develop their own production chains within the US. This would help reverse the outflow. For consumers, the goal of the manufactures must be to produce reasonably priced, completive goods.
Is it possible to grow an exclusive brand in the digital world? That in short is the whole idea of a debate staring at the luxury fashion industry where growth has slowed. This at a time when digital technologies have allowed other sectors to expand globally. The mood in the luxe sector is grim. Global volatility and stock market uncertainty have led to an overall slowdown. A report by McKinsey and London-based publication Business of Fashion last month revealed, nearly 70 per cent of surveyed fashion executives, investors and industry observers believe conditions for the industry have become worse.
According to Achim Berg, a lead author of the McKinsey report and leader of the firm’s apparel, fashion and luxury practice, the key message is that 2016 was a really bad year for the industry, probably the worst one since the financial crisis. That was especially true for the luxury part of the industry which was a bit surprising because everyone knew that the year gone by was bad. But it was never expected to be so bad.
Some brands have turned to new technologies to connect with an increasingly digital consumer who demands immediate gratification, quick service and ever-new ways to interact with old brands.But the luxury world, by its very nature, can seem out of place with trends in today’s marketplace.
Many brands are trying anyway, though for now success seems limited. The McKinsey and Business of Fashion report forecasts annual online sales of luxury fashion will increase fourfold to 12 per cent of total sales in 2020 from an anaemic 3 per cent in 2010. Perhaps no other innovation has garnered more attention in recent years than the “see now, buy now” process in which a designer’s collection is presented on a fashion show runway to the usual select cadre of press and retailers, but also streamed on the web.
In a move that could help further development of Cambodian apparel industry, Phnom Penh, the capital of Cambodia was host to an exhibition and conference for a visiting delegation of Bangladesh companies. Talking on the occasion, Abdul Ahmad, President of the Federation of Bangladesh Chambers of Commerce and Industry said there are several opportunities for investment and trade in various sectors for each member of the Bangladeshi delegation. In fact, they were eager to hear from Cambodia on what it can offer and where Bangladesh companies could invest.
Bangladesh’s envoy to Cambodia, Saida Tasneem said although trade between the two countries was minimal at just $6.7 million per annum, there was potential for cooperation between the countries which could benefit both.
Kumar Mangalam Birla, owner of diversified conglomerate Aditya Birla Group has increased his shareholding in Aditya Birla Nuvo by purchasing shares from minority investors including 3.86 per cent from Anil Ambani-owned Reliance Mutual Fund for Rs 775 crores. The merger will make Grasim one of India's largest diversified companies with a healthy mix of business with steady cash flows and long-term growth opportunities.
The plan includes listing the financial services company, with Grasim owning 57 per cent, the promoters 16.6 per cent and the rest by the public. With this, Aditya Birla Nuvo will merge with Grasim Industries. The stake purchases that boosted Birla's holdings to 62.77 per cent from 58.39 per cent, invited criticism from proxy advisory firms and local investors, who said it was against interests of minority shareholders. Reliance MF, the second-largest shareholder after Life Insurance Corporation of India, sold almost its entire stake.
Birla's unlisted private firms Turquoise Investments & Finance and IGH Holdings bought about 57 lakh shares between December 2016 and January 2017. Apart from Reliance Mutual Fund, the identity of the other sellers could not be ascertained. It has been also noted that the acquisition is part of its plan to increase shareholding in group companies under the creeping acquisition route allowed by the Securities & Exchange Board of India.
For companies in the textile chain that want to analyze, certify and optimize their production sites in terms of sustainable and socially responsible production conditions, it is Step by Oeko-Tex that is an independent certification system. The said certificate is awarded by the Oeko-Tex Community which is part of the Hohenstein Institute, one of the most respected research facilities in the German textile industry.
Step by Oeko-Tex was launched in 2014 that replaced Oeko-Tex Standard 1000. More popular than that is Standard 100 by Oeko-Tex, although this only tests the health safety of products and not the entire production chain like what Step by Oeko-Tex does.
The Oeko-Tex Step stands for Sustainable Textile Production and is used to certify production plants at all processing stages from fiber production to spinning and weaving/knitting, all the way up to refinement plants and manufacturers. The Step by Oeko-Tex certification divides the topic of sustainability into six different modules: chemicals and their use, environmental performance, environmental management, social responsibility, quality management, and occupational health and safety.
Archroma, a global leader in color and specialty chemicals that pioneered custom color engineering in textile and fashion, recently sponsored a seminar with founder of Design Seeds, Jessica Colaluca, during this year’s PrintSource New York exhibition. The said exhibition that focused on the use of Color Anthropology and how recent global political events including the election of Donald Trump and the passing of Brexit may alter the already established fashion industry color palette for the upcoming season.
Colaluca avered that the US election of Donald Trump impacted the colors we are - and will be - wearing this upcoming season. While not in the literal sense of red, white and blue being patriotic, but the notion of Americana and how people want to relate to it was shaken. In many ways, the modern folk/hipster aesthetic was born in reaction to consumerism gone wild which made natural colors make sense the past three years. But with the volatility of politics, nationally and globally, it makes sense the aesthetic will evolve dramatically once again.
Allowing for a feeling of empowerment, optimism and selfexpression, Colaluca pointed to strong fashion trends like flannel shirts and red dad caps that have dominated the market such as Modern Folk and Americana start blurring political lines of very different people with distinctly different ethos.
As early as Q4 2016, color anthropologists could see a fallout coming on this trend aesthetic in the hipster and early adopter segments because the aesthetics cross over with people of very different political and cultural beliefs, therefore separating themselves from a belief system they don't share. To address the fast pace of these shifting color trends, Colaluca highly recommends that fashion designers and brands leverage tools like Archroma's Color Atlas system. “The Color Atlas has beautiful modern colors that are constantly relevant, maintained Colaluca.
The Apparel Export Promotion Council (AEPC) has said that the cap of Rs 50 crore should be removed under the Amended Technology Upgradation Fund Scheme (ATUFS) in the upcoming Union Budget 2017-18 in order to attract more investments in the textile industry. It has also suggested the government to avoid changing drawback benefits and procedures under the GST regime.
Ashok Rajani, Chairman, AEPC said that the industry has been benefitted by the Rs 6,000-crore special package for the garment industry announced in June 2016 which aims at facilitating new investment, exports and employment. He further said that the AEPC expects the budget to supplement it taking the introduction of GST also this year.
He also said that the companies that are scaling up should be given some sort of incentive and the condition of term loan component of 50 per cent should not be imposed since there is no interest subsidy for the loans being taken from the banks. Clubbing of license should also not be permitted under annual advance license for the enhanced Duty Drawback Scheme, he observed.
Talking about the apparel market, Rajani said that the global apparel markets have been stagnant since 2015. For India, the growth in 2015-16 was a nominal 0.2 per cent while in 2016-17 it is expected to be similarly modest. However, India's domestic market is growing, which is an opportunity for the apparel manufacturers.
Madhya Pradesh has emerged as a hub of textile industry of the country in the last one decade due to the industry-friendly policy of the State government. This is what Minister for Commerce, Industry, Employment, Mineral Resources and Overseas Indians Rajendra Shukla said recently. He said that the State has a bank of around one thousand acre in all the districts to establish industries.
A special policy is being brought soon to encourage garment industry in the State. The minister was addressing the 14th International and 72nd All India Textile Conference. More than 300 representative of textile industry are taking part in the conference at Bhopal.
Shukla mentioned that Madhya Pradesh is progressing rapidly. It has no more a bimaru State now and has come in the category of the developed State. He further mentioned that all the facilities are available in the State to establish industry. Electricity, water, transport and other facilities like good roads are available. Moreover, sufficient land is available.
Besides, Shukla said that the State Government is working with full steam and commitment in the leadership of the Chief Minister Shivraj Singh Chouhan for the development of the State and to maintain the status of developed State.
Shukla mentioned that factories of well-known groups like Vardhman, Trident, Nahar, SEL Group, Raymond and Grasim are functioning successfully in the State. An amount of around Rs 7 thousand crore has been invested in the textile sector and 40,000 persons have got employment in last 6 years.
Textile projects worth Rs 4,000 will be established in the State soon. He told that the biggest 750 megawatt solar power plant of the world is being established at Rewa. An amount of Rs 6,000 crore will be invested in this plant. White Tiger Safari has been made in Mukundpur of Rewa, he added.
US president Donald Trump’s thought of a possible 20 per cent tax on US imports from Mexico is raising eyebrows in Asia where exports to the US drive growth in many economies. Japanese officials are of the say that they hoped to hold talks on trade with US officials soon. Finance Minister Taro Aso said the Japanese side should thoroughly explain how Japanese companies have been contributing to American society, including creating jobs.
Trump's press secretary Sean Spicer said the 20 per cent tax was among several options to finance building a wall along the US southern border, but no decision has yet been taken. In the light of the event, Mexican President Enrique Pena Nieto has scrapped his scheduled trip to Washington next week over the issue. He has flatly rejected Trump's assertion that Mexico will pay for the wall on its border.
China's official Xinhua News Agency reported that Trump was considering the 20 per cent tariffs without any editorial comment. However, the report cited unnamed analysts saying Trump would have to withdraw the US from the North American Free Trade Agreement or Nafta, to be able to impose such a tax. Mr Trump has said he wants to renegotiate Nafta.
A steep tariff on exports from Mexico to the US may have a telling effect on manufacturers like Toyota Motor Corp, which like almost all other automakers builds small cars in Mexico to take advantage of its lower wages. Along with other Japanese automakers, Toyota employs thousands of people at factories in the US. It also is planning to build a plant in Mexico to make the popular Corolla sub compact.
