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In South Africa children’s clothing is outperforming other lines like men’s wear and women’s wear. Even in a tough economic climate, parents are spending and there is an increased emphasis on value buying.
The advent of technology and rise of social media have also been huge contributors to this growth, specifically in the pre-teen category. Thanks to social platforms such as Instagram and technology such as smart phones, satellite TV and tablets, children now have immediate access to international trends. This has led to an increasingly discerning and style conscious young customer, with the pester power to sway their parents’ purchasing decisions. Greater access to social media means that children’s fashion is inspired by that of social media influencers and celebrities.
Children’s fascination with social platforms that utilise augmented reality – such as Snapchat – will also influence design. Snapchat’s quirky filters may pop up on T-shirts and hoodies. While children are veering away from fussy, complex styles, they are focused on detail, embroidery, lace and even holograms. Siblings are increasingly opting to wear matching or complementary outfits. Establishing their identity is important but children are finding comfort in choosing to express themselves with their siblings.
Children love active wear as it is both fashionable and functional and as they see the athleisure trend become more popular with adults.
Bangladesh and Cambodia are working on a trade deal. This may eventually lead to a bilateral trade agreement that would drop tariffs on imports. Both countries are dependent on the garment industry as the main driver of economic growth, so they are looking at ways that trade can complement each other’s growth. A bilateral trade deal could lead to further garment production despite the countries’ competing for the same global market. If Cambodia could receive tariff-free leather, it would help bolster the kingdom’s travel goods sector, which last July received duty-free access to the United States.
Agreement has been reached on which products and items Cambodia will allow Bangladesh to import and export tariff free. Trade between the two developing nations has been minimal, amounting to just $6.7 million annually. Bangladesh’s main exports to Cambodia include garments, footwear and leather goods while Cambodia primarily exports cotton, cooking oil and fertiliser.
The countries may work to create a labor-sharing agreement that would allow Bangladeshi workers to migrate to Cambodia to fill the garment sector’s skills gap as it produces higher value-added goods. Having workers come from Bangladesh to Cambodia would be good for Cambodia because it would support future growth in manufacturing capabilities.
Bangladesh’s apparel exports to the US, its single largest destination, have declined 1.96 per cent year-on-year. The country’s garment exports to the UK, the third largest destination for the Asian country, declined 5.19 per cent year-on-year in the July-December period of the current fiscal year.
There is a change in the attitude of US consumers, who now prefer spending more on electronic gadgets compared to clothes. The US election has also impacted retail sales negatively. Global apparel exports to the US declined 6.44 per cent year-on-year in 2016. Garment items account for 95 per cent of the goods exported from Bangladesh to the US market.
All nine out of ten top apparel exporting nations of the world experienced negative growth in shipment to the US in 2016. Only Vietnam's apparel exports increased 0.30 per cent year-on-year in 2016. Moreover, Bangladesh now faces an export duty of 15.62 per cent under America's most favored nations' category.
But apparel exports from Vietnam to the US may face stricter rules as the US has abandoned the Trans-Pacific Partnership. Vietnam—one of the major competitors of Bangladesh in the US market—was supposed to enjoy a zero duty benefit as one of the member nations of TPP. After the scrapping of the TPP, the export duty of 8.38 per cent for Vietnam will remain in force. This may ultimately benefit Bangladesh.
Meanwhile Bangladesh’s garment shipments to the UK to declined and exports may be further hit as British consumers are facing rising inflation and weakness of the pound. The UK is Bangladesh's third largest export destination. Bangladesh has been enjoying zero-duty benefit to the UK under the EU’s Everything but Arms scheme since 1971. But the duty privilege might not continue once Britain leaves the EU trade bloc. If Bangladesh cannot sign a bilateral trade deal with the UK for the continuation of zero duty benefit, its exports to the British markets will fall further.
Bangladeshi exporters are getting a lot of work orders from British retailers, but they are offering lower prices. Small and medium-sized exporters have come under pressure as they cannot sell their products at the reduced prices and production costs have gone up.
Britain's largest clothing retailer Next is a major importer from Bangladesh, but it has slashed work order volumes. The retailer had planned to buy apparel items worth $260 million from Bangladesh in 2016 but took garment items of about $180 million.
Dhaka Textile and Garment Machinery (DTG) will take place February 23 to 26, 2017. This is Bangladesh’s largest textile and garment trade fair. Showcasing new technology, state-of-the-art equipment, materials and services, DTG is also an avenue for international suppliers and visitors to expand their business. DTG offers Bangladesh exporters an opportunity to expand their supply chains globally.
Fairs within Bangladesh project the quality of exports to visitors from home and abroad. Local producers in remote areas of rural Bangladesh who do not have the financial strength to participate in international trade fairs have the opportunity to display their products to buyers from abroad at such fairs. On the other hand, overseas participants have the opportunity to display their products to consumers of Bangladesh, where the domestic market for consumer goods is expanding.
Besides foreign participants have the opportunity to display their state-of- the-art technology to local producers and exporters. Entrepreneurs can exchange views and knowledge that would help them to improve quality of products and establish a network with buyers. The industry needs to seek some other way to bring apparel costs down without compromising on the currently offered quality. What better way to do so than revisiting raw material sourcing?
E-commerce in India is opposing the Goods and Services Tax (GST).
This has brought together Flipkart, Amazon and Snapdeal. Portals are becoming increasingly anxious about its implementation. They say if GST is implemented in its original form, the e-commerce industry in India will come to a standstill. They say tax evasion can be avoided by sharing of information, which they are already doing with states.
The bone of contention here is tax collection at source (TCS), which GST has made mandatory for all e-commerce portals. The aim has been to introduce a uniform tax regime for all e-commerce portals.
However, the issue is that TCS has to be collected by e-commerce portals themselves, and this is causing sleepless nights for them. There are lakhs of vendors and sellers on each of these platforms, and their count is increasing every single day. E-commerce portals will be required to spend huge amounts of money, time and resources to monitor the TCS for each of their sellers.
They claim this additional burden will reduce their profits and will slow them down and worsen things for them.
GST laws are being finalised, and most probably an announcement will be made by this month end.
Swedish apparel retailer H&M has expanded its sustainability work in Myanmar.
The company has a local sustainability team working in Myanmar, whose main responsibility is to make sure that every order is placed with the right supplier according to its high standards. The team regularly visits all its suppliers and has meetings with factory management to provide support and follow up on their sustainability performance and competence. Unannounced visits are carried out.
H&M conducts risk analysis to assess both business and sustainability conditions before deciding to source from a particular market. For Myanmar, the analysis included meeting with local civil society, government and industry leaders, visiting factories to gain a better understanding of the working conditions in Myanmar and conducting a thorough internal analysis of opportunities and challenges.
H&M is one of the leading fashion retailers working effectively in the sustainability sector. It has been actively involved in improving working conditions and strengthening workers’ rights in countries where their products are manufactured. It has production in Myanmar as well.
H&M believes its products should be manufactured under good working conditions and with consideration to environment, health and safety. The company has been putting in strong efforts to treat people with respect and to provide workers with good, fair and safe working conditions.
Last year, Vietnam’s total export turnover was 8.6 per cent higher than the previous year. This year the target is to go 6.9 per cent higher than last year.
Garment and textile exports are expected to have a turnover six per cent higher than that of last year. Exports of electronics, computers and spare parts are forecast to achieve an export turnover 19 per cent higher than last year.
Vietnam’s export turnover to its traditional markets including Asia, Europe and the US saw positive growth last year. Export turnover to the US saw the highest growth rate of 13.2 per cent followed by Europe with 11.3 per cent and Asia with 6.9 per cent.
The country believes that in 2017 import-export turnover would continue to increase thanks to the signing of a number of free trade agreements and FDI inflows shifting from other countries to Vietnam. Participation in the Asean economic community would also bring opportunities to the country by expanding its export markets as well as increasing competitiveness.
Last year Vietnam exported 25 products, with a turnover of more than billion dollars each. In 2016, the country reported a trade surplus of 2.68 billion dollars, accounting for 1.52 per cent of its total import-export turnover.
Texworld was held in France, February 6 to 9, 2017.
This is a specialized fabric show and this time the stress was on denim. Out of a total 760 exhibitors, about 60 companies specialized in the indigo blue cloth fabric. There were many customers from jeans brands and chain stores.
Three main trends dominate the market: stretch and bi-stretch qualities, vintage and second-hand looks, and sustainable products that employ less or zero water, less or no chemicals, but also alternative fibers.
Siddiqson developed its techno green selection of fabrics employing recycled polyester and recycled cotton. It also offers fabrics made with bamboo fibers, Crailar, a flax fiber. Also new is a fabric employing Jutacell, a fiber developed by Invista, obtained by employing leftovers from linen fiber manufacturing that would rather be thrown away.
Soorty has new sustainable products such as Zero Water Blue and Herbal Blue. Kassim considers stretch a big topic, together with greater demand for stretch qualities for men’s jeans. Foison concentrates on new products that feature second hand looks, though added with stretch for a comfortable fit.
Austrian lingerie specialist Wolford launched a few prototypes of a newly developed lingerie selection made with materials that can be 100 per cent recycled.
The Scheme for Integrated Textile Parks (SITP) hasn’t really been a success.
The intended objective, that of fostering the development of supply chain linkages and reduction in the cost of production by leveraging backward and forward integration in the value chain, is yet to be realised as most of the operational parks are partially functional.
Other problems are lack of coordination among units in a park, inability to attract the right investors, failure to achieve economies of scale and lack of collective approach in raw material sourcing and marketing.
High rentals in some parks, changes in other schemes or regulations, lack of marketing efforts, no special benefits available for investors in parks, poor accessibility and challenges for units in SEZ parks are some of the factors responsible for the scheme’s failing to attain its objectives.
Parks have not yet attained their planned investment levels due to lower occupancy rates. The current investment in 30 functional parks is around Rs 7,628 crores against their planned investment of Rs 16,628 crores.
Similarly textile parks have had a limited impact in bringing scale to the textile industry as most of the parks are of the size from 25 to 75 acres.
About 75 parks have been sanctioned till date, of which 30 are functional, while eight have applied for cancellation and others are at various stages of implementation. The 30 parks that are currently operational employ around 68,000 people, which is only 57 per cent of their planned employment.
Levi Strauss had a net revenue growth of one per cent for the full year and its fourth quarter. While full-year net income grew 40 per cent, fourth quarter net income declined by five per cent. Though the company’s direct-to-consumer sales grew due to Levi Strauss’ current retail and e-commerce performance, investments in the same area hurt net income.
For the full year, net revenue grew the most in Europe at ten per cent, due to strong growth of its retail channels. In Asia, net revenues also grew six per cent, excluding unfavorable currency effects of 18 million dollars. Meanwhile, in the Americas, net revenues remained relatively flat.
This is the fourth consecutive year of profitable constant currency revenue growth behind the strength of the Levi's brand and its global direct-to-consumer business. Given the diversified portfolio, the company remains optimistic about long term prospects for growth.
Gross profit for the fiscal year grew to 2,329 million dollars compared with 2,269 million dollars in 2015. For the three-month-period, gross profit was 659 million dollars compared with 658 million dollars for the same quarter of 2015.
Levi Strauss jeans are used by both workers as well as rock stars. It’s known for the 501 design and now the brand is adding stretch to this line. The move has been prompted by consumer preferences for comfort, which has women especially wearing yoga pants beyond their exercise classes.
