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Cotton Corporation of India, the government agency that procures the crop at support prices, says the agriculture ministry’s estimate of cotton production is too negative and actual production will only be marginally lower compared to 2014. B K Mishra, Chairman and Managing Director, Cotton Corp says they expect an output of 35 million bales (of 170kg each) in 2015-16, marginally lower than last year’s 35.5 million bales. The first advance estimate by the ministry, pegs India’s cotton output at 33.5 million bales, which is the lowest in five years.
Data from the Agriculture Ministry shows that until now, cotton has been sown in 11.5 million hectares until now, compared with 12.6 million hectares sown in 2014. The June-September South-West monsoon recorded a deficit of 12 per cent till September 23, 2015 as per the India Meteorological Department. Rain-fed cotton growing areas in Telangana, Maharashtra and Andhra Pradesh experienced lower than normal rain.
Mishra added that though some crop was damaged due to a white fly pest attack in the northern states (Punjab), and the area under cotton has reduced in states such as Gujarat, the revival of the monsoon in the past few weeks is likely to help the crop in rain-fed areas. Procurement by government agencies such as Cotton Corp., however, may be lower this year because of higher prices of cottonseed and a possibility of exports to Vietnam and Bangladesh.
Physical procurement of cotton at support prices by a sort of ‘deficiency price payment’ system is being considered by the government mentioned Mishra. In this system, the difference between the market price and a predetermined threshold, which is a form of price insurance, would be paid to the farmers.
Sweden’s international fashion giant H&M has been accused of breaking rules in Cambodia by systematically employing people on short term contracts. Workers at some of H&M’s factories in Cambodia say they don’t dare to take sick days off or complain about overtime or low wages for fear of losing their jobs. Some workers also report that if they fall ill they risk losing their jobs.
Short-term contracts stop workers from unions. They dare not protest low wages, dare not refuse working overtime. They don’t even take a day off fearing their contract would not be renewed. H&M says it ensures those who have been working on short-term contracts for two years get a permanent job.
H&M has faced criticism over conditions in overseas factories before as well. There have been allegations of forced overtime, few opportunities to take a break and sexual harassment by its Cambodian sub contractors. H&M is a major player in Cambodia for long. There are no estimates on how many employees at the group’s overseas factories are currently on short-term contracts.
The textile industry in Cambodia employs around 7,30,000 people. H&M is the largest buyer of clothes from the south-east Asian country and works together with around 80 of its factories.
www.hm.com/
Influences from the '70s are coming back in fashion in denim wear, flares, jumpsuits, patches and embroidery are back in trend. Classic designs from the era are being combined with playful elements. Garments like cropped jackets feature distinct wide collars and utility pockets, along with embroidered and beaded patches and contrasting denim washes.
The mid-rise bell-bottom is available with all-over crochet detail, denim appliqué patches or hand-painted drawings. Flirty silhouettes and pastel colors come with the wide-leg, high-waisted flares.
One collection has a two-piece set with denim crop top and high-waist shorts, detailed with layers of pink, lavender and brown piping. The collection features a window motif that appears on chest pockets, pants and as cutouts on dresses. A pair of wide-leg overalls has a series of embroidered windows on the bib.
As designers look to the ’70s, many find inspiration in vintage materials. Denim patchwork pieces are used to create looks based on designs from existing styles. Some brands update a simple pant with a wider leg and design it in denim. Other notable styles are a reinterpreted denim shift dress that is currently in store in a wool fabrication. Details like oversized rivets and frayed edges are an additional nod to the decade.
Telengana is taking steps to help farmers, especially cotton growers, in the state. There has been a series of farmer suicides due to poor rainfall. Cotton growers in the state are also trapped by middlemen. About 1,132 farmers have committed suicide in the state during the last one year and 90 per cent of these are cotton growers.
Warangal, Adialabad, Karimnagar, Nalagonda, Nizamabad are the main cotton growing districts in Telengana facing a farmer suicide problem. Suggestions include increasing the number of cotton purchase centers and of purchase staff, involving the national agricultural cooperative federation in the purchase mechanism and a joint meeting of all stakeholders -- farmers, ginning mill owners and traders.
The aim is to help farmers get a more remunerative price for cotton and not face distress situations, where they contemplate drastic measures. The cotton procurement season begins in October. Last cotton season, Cotton Corporation of India (CCI) had fixed a remunerative price of Rs 4,050 per quintal. There is a proposal that the CCI increase the remunerative prices it offers this cotton season. This appears to be one feasible solution. During this kharif season, cotton growing area in the state has increased by 15 per cent.
The Oeko-Tex standard 100 has cancelled the certification of manufacturers of yarn dyed items in Pakistan. This has halted exports worth millions of dollars to different countries, particularly European Union countries. Most Multan-based exporters have had their Oeko-Tex certificates withdrawn. Multan is the export hub of traditional yarn dyed home textile products. Exporters say, their product is in compliance with Oeko-Tex standards.
Consignments ready to be shipped were offloaded due to the refusal of foreign buyers to accept them. Manufacturers say the certification agency must be persuaded to restore product certification for an interim period to clear current shipments and then re-assess or re-audit the units for further certification.
The Oeko-Tex standard 100 is an independent testing and certification system for textile raw materials, intermediate and end products at all stages of production. Examples for items eligible for certification are raw and dyed or finished yarns, raw and dyed or finished fabrics and knits, ready-made articles, clothing, domestic and household textiles, bed linen, terry cloth items, textile toys and more.
All components of an item have to comply with the required criteria. This covers the outer material, sewing threads, linings, prints etc as well as non-textile accessories such as buttons, zip fasteners and rivets.
https://www.oeko-tex.com/.../oeko_tex_standard_100/oeko_tex_standar...
Houston County and Georgia officials have announced that a Germany-based textile supplier has chosen Perry for its first foray into the North American market. A privately held, family-owned company, Sandler AG, supplies textiles to international manufacturers. The company will generate over 140 jobs with an initial investment of $30 million to Houston County.
Sandler supplies nonwoven textiles such as baby wipes and facial wipes to large companies such as Procter & Gamble with annual sales of about $346 million across the globe. Sandler officials had considered about 120 communities for the plant before deciding on Perry. The development authority’s speculative building at 700 Perry Parkway will be occupied by Sandler AG. This includes the land where the spec building is situated.
The company plans to use the entire 100,000-sq. ft. building, to build additional structures. The company’s CEO, Christian Heinrich Sandler stated that establishing a manufacturing plant in the US was one of the most important steps in their history. He added that establishing themselves in Houston County would allow Sandler to answer to the increasing importance of the North American markets and to account for the growing demand from outside Europe.
UKFT & Textile Services Association (TSA) have collaborated to organise a seminar on October 8, 2015 on garment life cycles. A garment’s life cycle is an important factor while designing apparel. Intricate beading, unusual binding methods and delicate fabrics all make an impact on the garment. The seminar would focus on all these aspects.
The fashion industry and the textile care industry can work together to deliver fashionable garments with a long life cycle and reduce problems faced by consumers while maintaining their favourite pieces of clothing. There are five basic wash care symbols that are used on garments throughout the world. Developed in the 1960’s, the symbols are designed to be understood in all countries, irrespective of language.
Billions of garments are used each year, these care symbols are a registered trademark protected in over 50 countries. Use of these symbols in Europe and elsewhere requires a license fee to be paid. The level of the fee varies from country to country but it can be charged per garment and can amount to hundreds of thousands of Euros per year. Speakers Kenneth Cupitt, Guild of Cleaners and Launderers and Adam Mansell, Director of Special Projects, UKFT would explain in detail about the labelling requirements, while advising on how one can save costs.
www.ukft.org
The 14th edition of MarediModa, the underwear and beachwear exhibition will be held from November 3 to 5, 2015 in Cannes, featuring textile and accessories collections. More than 100 European companies will exhibit at the fair, along with a top-level delegation of fast-fashion garment makers from the Euro-Mediterranean area, which are going to offer a qualified alternative to the more exotic productions.
The unique feature of the exhibition this time is new arrangement of the trends area, managed by MarediModa, designed and curated by a team made up of WGSN, IED (European Institute of Design) and David Shah, under the coordination of the fair management. The comprehensive conference schedule will also include a speech by David Shah on ‘Does Sex Sell Anymore?’
Invista, the leading company in the fashion textile innovation will be at the venue in Cannes even this year with its Lycra Xtra Life brand. The 2015 edition of ‘The Link’, the talent hunt contest organised and promoted by MarediModa will witness the most qualified European fashion design schools participate in the event.
www.maredimoda.com
The reason for this pressure, as per Cowen are three visible trends: Amazon will be the largest US apparel retailer by 2017 with its apparel business expected to grow to $52 billion in gross margin volume by 2020, a boon for strong brands but a bad news for traditional retail; major off-price retailers will open at least 2,500 stores in the US by 2020, while major retailers will expand by roughly 875; and spending on fitness-related wearable products will pull see a shift in spending from traditional retail as consumers are expected to spend $15.8 billion on the category by 2020.
Athleisure has taken the centre-stage as fitness conscious consumers are ready to spend on fitness wearables such as athletic apparel and footwear to match. “Price perception data for Nike and Under Armour from the Cowen Consumer Tracker Survey updated through July, further indicates the consumer’s willingness to pay for innovation, performance and newness,” the report says. Price satisfaction scores for Nike and Under Armour are up an average 3 percent over the last year.
Amazon’s apparel strength to impact brick-and-mortar
Though the macroeconomic trends are looking more positive, Cowen said each of the disruptive trends, plus the pervasiveness of high-turn, low cost fast fashion is “impacting apparel business models through a combination of deflationary pricing pressure and increased speed to market and end user which may impact future revenue growth and operating margin expansion.”
Amazon’s projected growth in apparels is expected to grab the market share from traditional brick-and-mortar retailers, and brands will have to closely monitor their relationship with the e-commerce giant. “Global brands that can effectively segment product between their own stores/website, the traditional wholesale partners and Amazon have an opportunity to expand distribution,” the report noted. Some brands, for instance, like Nike, Under Armour, VF Corporation and the North Face, may limit the products they sell through Amazon. “We think that the goods sold on Amazon will be more commoditized products, popular items that consumers can purchase from multiple companies stores and/or websites,” the report noted.
And as for exclusive products, like the current season’s clothing collection or a signature shoe release, will still be done on the brand’s own website so they can control the product display and requisite marketing.
Off-price retailers on the rise, fast fashion wins
The report suggests when it comes to the off-price disruptors, the discount category is experiencing “tremendous” growth in revenue and store expansion and that growth is only expected to continue. Macy’s and Kohl’s too recently entered the off-price race, joining other department stores like Nordstrom and Saks, and the sector’s rise will put added pressure on apparel pricing as the lower-cost formats fight the full-price stores for share of consumer apparel spending.
And fast fashion on the other hand has been the driving force behind the new way of retail and the quick-to-market strategy is helping brands such as Zara, H&M, Uniqlo, Primark and Forever 21 to steal the share held by apparel retailers. All these five fast fashion retailers brought in a combined $68 billion in global sales last year, or 6 per cent of the global apparel market, the report added.
Fast fashion, off-price and Amazon combined, with their promotional or discounted prices, according to Cowen, will “chip away at traditional methods of apparel distribution and exert deflationary pressure on average unit retail as all concepts compete for share of customers’ wallets.”
www.owenandco.com
Exports of raw cotton and waste from India plummeted by 58 per cent during the April-July period from a year before and those of man-made yarn declined nearly 6 per cent during this period. However, some of the other textile segments, such as jute and carpets, performed well during the April-July period with exports of jute growing 13.2 per cent and those of carpets by12.3 per cent, helping the overall textile exports achieve an under 1 per cent rise up to July this fiscal year.
Not just exports, even the production of textiles dropped in July from a year before, while that of garments gained 21.7 per cent during the month, according to the industrial output data. This indicates that not only export demand remains weak, but even domestic consumption is not picking up in textiles, so spinning mills have begun reducing production for the first time in five years. The fact that the government is yet to clear subsidy claims of around Rs 4,500 crore for investments made under the flagship Technology Upgradation Fund Scheme has further added to the woes of textile units.
Meanwhile fall in yuan as well as demand in the China market is hurting the Indian exports since many players heavily depend upon the country for their export share. China is the biggest market for textiles, accounting for over 70 per cent of India’s cotton and 40 per cent of yarn supplies. Experts predict that the Chinese market will witness a further decline in 2015 as well as 2016 putting pressure on Indian companies.
