FW
With the advent of a new fabric that hit shop floors and popularised fleece wool from Australia, demand for medium micron wool is set to boost. The new product is a fur-like fabric that resembles the inside of a sheep-skin boot. It has succeeded in capturing the imagination of the international markets in a big way. Prices paid for 19 to 21 micron wool this season has strengthened in the Australian wool market. The new woolen product is made from 70 per cent Merino wool. The remainder comprises crossbred wool that weighs approximately 970 grams per square metre.
Northern hemisphere’s winter is driving demand for 25 to 27 micron wool this season. At present, China is the leading country that imports these fur-like coats and heavy skirts. A variety of greasy wool ranging from 19.5 micron to 27 micron is used to manufacture this product. However, bulk of it is made from 21 to 22 micron wool. The product is made resilient by using a small portion of comeback and crossbred wool to add weight and reduce cost. This also helps the product stand up once it is processed.
Shares of Hong Kong tycoon Victor Fung Kwok-king’s menswear retail unit Trinity surged 32 per cent after Shandong Ruyi Group, one of China’s largest textile firms, agreed to take control of the firm struggling to cope with fast shifting consumer behaviour.
Shandong Ruyi, 51 per cent owned by chairman Qiu Yafu, has agreed to buy 1.85 billion new Trinity shares at HK$1.2 each, totalling HK$2.22 billion. The deal, when completed, will give Shandong Ruyi 51 per cent control over Trinity, while Fung and his family members will see their combined stake diluted from 40.95 per cent to 19.79 per cent.
The selling price represented a 60 per cent premium to Trinity’s closing price of 75 cents on Wednesday before trading was suspended. Trinity operates retailing and licensing businesses in Greater China and Europe selling menswear brands. Over two years ago, Trinity signed soccer legend and fashion icon David Beckham in a five-year deal to be the face of the Kent & Curwen label.
It incurred net loss of HK$257 million in the year’s first half compared to a loss of HK$200 million in the same period last year, amid what it called a “depressed retail environment” in the mainland - its biggest market. Shandong Ruyi has grown from a modest textile factory set up 45 years ago into a major integrated textile empire spanning raw material cultivation, textile processing and design, marketing of brands and apparel. Operating 3,000 retail points of sale in Asia-Pacific, it has three listed subsidiaries in China, France and Japan.
Last year it acquired a majority stake in French fashion group SMCP - the parent company of Sandro, Maje and Claudie Pierlot. It plans to use the shares sale proceeds to retire debt, fund potential acquisitions and bolster working capital.
Indian apparel exporters are gearing up to re-negotiate terms and prices of their products with buyers in the UK to neutralise a decline in their realisations due to the sharp fall in the pound against the rupee. Exporters have started bypassing vendors in the UK for supplies to countries in the European Union. This would allow them to deal with importers there directly.
Indian exporters are also gearing up to raise prices of their apparel products in next year’s contracts to compensate for the fall in the pound. Thirdly, exporters are re-negotiating for receivables in dollars instead of pounds. They are convinced that the re-negotiated terms would protect them from any further fall in the pound without affecting their trade with the UK, which contributes nearly 11 per cent of apparel exports.
As the pound has fallen evenly against other major global currencies, exporters anticipate no problem in arriving at re-negotiated terms with importers in the UK. There has been a decline in UK’s share in India’s overall apparel exports from 11.04 per cent in 2015 to 10.62 per cent now.
Importers in the UK buy apparel from India not only for internal consumption but also for exports.
It’s tough times for Vietnam’s homegrown fashion brands as they are struggling while international brands are receiving a hearty welcome from customers. Zara, the Spanish fast fashion brand, opened its first store in Vietnam in September 2016 and received a tumultuous response. Many other moderate and budget fashion brands such as Mango, GAP, and Topshop are also in Vietnam and are opening new stores on a regular basis.
In contrast, many stores of domestic designers are struggling to attract and retain customers despite affordable prices and regular promotions. There is a clear segmentation of consumer fashion in Vietnam as younger generation of Vietnamese with an interest in fashion and a good income are more inclined to opt for international brands. Japanese casual wear designer, manufacturer and retailer Uniqlo is also looking for a local franchisee to enter the Vietnamese market in the near future.
With apparel products targeting all ranges of customers, men, women, teenagers and children alike, gathering at one single retailing area spanning thousands of square meters, such brands introduce between 5000 and 10,000 new designs every year on an average so they appeal to a very wide base of customers.
The US government has rejected Pakistan’s demand for preferential treatment to its textile products in the US market. By doing so, the US administration has clearly told Islamabad they have to rely on the existing General System of Preference (GSP). The message was conveyed by the visiting top aide of US President on trade, Michael Froman at a meeting with the commerce minister of Pakistan Khurram Dastgir Khan.
The minister asked the visiting USTR to revise travel advisory, ensure preferential access to its textile market and ease visa regime for exporters of IT related services to further strengthen trade ties between the two countries. The US delegation led by Ambassador Michael Froman, United States Trade Representative (USTR) also included Ambassador David Hale, Matthew Vogel, Deputy Ustr Michael Delaney, among others. The Pakistani delegation included secretary commerce Azmat Ranjha, Secretary Board of Investment (BoI) Azhar Ali Chaudhary, etal. The US had initially invited the commerce minister to visit Washington and attend TIFA meeting. However, commerce minister made it clear that only if the US was ready to give serious access to Pakistani textiles would he be ready to visit the country failing which the USTR should visit Pakistan.
"Canopy recently released the updated and expanded edition of the Hot Button Report, a ranking of 11 viscose and rayon producers that represent 70 per cent of global viscose production. The Hot Button Report is the first tool of its kind that enables fashion brands and retailers to assess producers’ impact on the world’s forests, as well as their leadership in forging solutions to eliminate endangered forest fibre from the rayon and viscose supply chain."
Canopy recently released the updated and expanded edition of the Hot Button Report, a ranking of 11 viscose and rayon producers that represent 70 per cent of global viscose production. The Hot Button Report is the first tool of its kind that enables fashion brands and retailers to assess producers’ impact on the world’s forests, as well as their leadership in forging solutions to eliminate endangered forest fibre from the rayon and viscose supply chain.
Highlights 2017
Two major producers, Birla Cellulose and Lenzing who make up 25 per cent of global supply, now have ‘light green shirt’ ranking. Three Chinese producers, Sateri, Sanyou and Fulida, are undergoing CanopyStyle Audits, and reports are anticipated to be made public in late Fall 2017. Two producers still sit with ‘’red shirts’’ and continue to be unresponsive. One new viscose producer, Enka, has recently joined the CanopyStyle initiative with the adoption and initiation of the audit. Three producers are starting to make progress on transparency by listing their pulp suppliers publicly on their website.
The ranking features five new criteria to incentivise continuous improvements and progress, aligned with CanopyStyle priorities on alternative fibres, conservation solutions and transparency. Completing the CanopyStyle Audit is a priority next step expected from all producers that have not yet started this independent verification process.
Nicole Rycroft, Executive Director and Founder, Canopy says, “We have seen remarkable progress with CanopyStyle over the past four years as a result of the collective action of our brands partners.” In upcoming year, CanopyStyle brands and designers are looking for additional leadership from their rayon and viscose suppliers. Initiating the CanopyStyle Audits, advocating for conservation, and advancing the development and production of next generation solutions are all key performance areas for producers striving to meet their customers’ expectations.
Outlook ahead
The 2017 edition of the Hot Button Report will be followed by the public release of several more CanopyStyle Audits of viscose producers as well as additional implementation tools for CanopyStyle brands. Canopy and our over 750 brand partners across all forest product sectors are committed to catalysing commercial scale production of next generation papers, packaging and fabrics and the kind of supply chain transformation that will see meaningful protection for the world’s ancient and endangered forests to the benefit of our global climate.
The Taipei Innovative Textile Application which began on October 17 at Taipei Nangang Exhibition Center put the spotlight on latest trends in smart and green fabric applications as well as underscored Taiwan’s leading position in the global textile industry. Organized by Taiwan Textile Federation and Taiwan External Trade Development Council (TAITRA), the three-day event featured more than 760 booths operated by 400 exhibitors from Taiwan and countries such as Germany, Japan, South Korea, Sweden and Switzerland. An array of accessories, apparel, fabrics, fibers, filaments, trimmings and textile-related technologies and services is expected to help the show, themed functional, recyclable and fashionable.
During her address at the opening ceremony, President Tsai Ing-wen praised Taiwan’s textile firms for employing an innovative approach to revitalizing what was once seen as a sunset industry. According to Tsai, the government strongly supports Taiwan’s textile industry and is working to boost its global competitiveness through a variety of measures. These include: assisting in the development of functional textiles, building local brands, establishing tie-ups with international outfits and fostering further cooperation with the country’s information technology companies. Government efforts also extend to securing greater access for local textile companies to regional markets through negotiating free trade agreements, ensuring Taiwan takes part in regional economic integration initiatives such as the Trans-Pacific Partnership and achieving favorable treatment under the New Southbound Policy, the president added.
The Zero Discharge of Hazardous Chemicals (ZDHC) program has four new members -- the Sustainable Apparel Coalition (SAC), the Unione Nazionale Industria Conciara (UNIC), Seri.co of Centro Tessile Serico (CTS), and Covestro.
SAC is the apparel, footwear and home textile industry’s foremost alliance for sustainable production. The coalition’s main focus is building the Higg Index, a standardised supply chain measurement tool for all industry participants to understand the environmental and social and labor impacts of making and selling products and services. SAC and ZDHC share a large number of overlapping brands. UNIC is the representative of the Italian tanning industry, which employs 18,000 workers in approximately 1,300 companies and is a fundamental component of Italian manufacturing. CTS is a testing laboratory and product certification system. The company offers support services for production activities. Covestro is a world-leading supplier of high-tech polymer materials, including waterborne raw materials for textiles and synthetic leather. It provides technology and R&D support that enables the production of coated textiles and polyurethane synthetics without solvents.
The ZDHC program is a collaboration of leading brands, value chain affiliates and associate contributors working for sustainable chemical management. By joining ZDHC these organisations commit to supporting the goal of widespread implementation of sustainable chemistry in the textile and footwear industries.
When one talks about the thriving of Bangladeshi denim, the fact that comes into the fore is that there is lot of technical innovation and an increased focus on social responsibility in the country. The production of denim in Bangladesh has slowly come of age over the last few years. As a matter of fact, denim manufacturing in Bangladesh is on the rise. In the last five years, an equal number of new denim factories have come on the horizon while five more are set to open soon. In 2014, the country’s denim industry grew 15.5 per cent year-on-year and 8 per cent in 2015, a data compiled by the Bangladesh Textile Mills Association (BTMA) shows.
Western brands, such as H&M, Levi’s, Zara, River Island and Wrangler, source denim from Bangladesh. On the other hand, Marks & Spencer describes the country as a key market for denim production. And, as the number of technologically advanced factories rises, the industry looks set to grow even further. For some time, the sourcing landscape in Bangladesh has been plagued by uncertainties like issues of sustainability political upheaval and the treatment of workers have left the industry with a damaged reputation. However, advances in technology along with a new focus on social responsibility and continuing low costs are making the denim sourcing scene in Bangladesh increasingly appealing to brands of all sizes.
In drought-prone Gujarat, the conventional wisdom is that more water means more crops. And to grow more crops, one has to give up the age-old methods and learn new techniques, keep knowledge of the same and adopt new methods of farming. This is what Cotton Connect has been providing to famers of village Ranmalpur in Gujarat. It is financed by Irish clothing retailer, Primark that operates in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, the Netherlands, the United Kingdom, the United States, Italy and India among others.
Primark's involvement in the village program is part of its efforts to improve ethical standards in the retail brand's £19 billion business which sources most of its garments from developing countries. Already 1,251 women have participated in the retailer's schemes which include yield-increasing programmes and healthcare drives. The company hopes to increase that figure to 10,000 in the next six years.
Although Primark does not have a figure of how much cotton it buys, it is the most common fabric that is used in its clothes. And though the company buys no cotton directly from farmers, its long-term strategy is to ensure all the cotton in its supply chain is sourced sustainably. After China, India is the world's second largest producer of cotton. The majority of the world's 100 million cotton farmers are smallholders in developing countries. Far away from the city, the industry can be brutal to farmers who face competition from unfair world prices and unscrupulous middle men. Many farmers find themselves caught in a vicious cycle of debt and poverty.
For farmers, the challenges range from the impact of climate change, poor prices for seed cotton, by way of competition from highly subsidised producers in rich countries.
