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Luxury houses, retailers and brands don’t seem to be bothered about viscose’s impact on the environment. Viscose is currently the third most commonly used textile fiber in the world. Like all cellulosic fibers, it starts off life as wood, which can hail from ancient and endangered forests. With demand for dissolving pulp projected to increase by 122 per cent in the next 40 years, the viscose industry is a growing threat to vulnerable habitats around the world.
The production of viscose employs chemicals to break down the cellulose. Factories supplying viscose to the international market have been found to be dumping untreated wastewater in lakes and rivers, ruining lives and livelihoods by destroying subsistence agriculture and exposing local populations to cancer-causing substances.
After many years of complacency from fashion brands and producers with regard to environmental impacts of viscose manufacturing, the tide is finally beginning to turn towards more responsible production methods. Lenzing and Aditya Birla, two of the world’s largest viscose producers, have committed all their sites to meeting EU Ecolabel requirements for viscose production by 2022.
Even so, more needs to be done. Manufacturers need to translate initial commitments into detailed implementation plans, concrete investments and the transparent reporting of their performance, including of complaints and grievances.
President Donald Trump has suspended Rwanda’s right to export duty-free clothing to the United States as Kigali increased the tariffs on imports of used clothing and footwear. The move was seen by many in Washington and Africa as foreshadowing how the Trump administration planned to apply its ‘America First’ trade ideology on the continent. Despite the suspension, Rwanda will maintain its other duty-free benefits under the African Growth and Opportunity Act (AGOA), America’s flagship trade legislation for Africa.
Kenya, Tanzania, Rwanda and Uganda have increased duties on used clothing and shoes in 2016 to nurture their local textile industries. But in March 2017, the Secondary Materials and Recycled Textiles Association (SMART), a trade group representing US used clothing exporters, filed a petition, arguing that the increase violated AGOA. Though they contested SMART’s assertions, Kenya, Tanzania and Uganda rolled back the duty increases. But Rwanda refused joining the ranks of Canada, Mexico, the European Union and China, all of which have been the targets of Trump’s aggressive trade tactics.
Beijing’s retaliatory tariffs on US cotton will accelerate offshoring of cotton spinning and lower-end textile and apparel manufacturing to South and Southeast Asia as Chinese businesses are bracing up for possible US tariffs on their finished goods.
The Trump administration’s tentative 10 per cent tariff on $200 billion Chinese merchandise has so far not touched the vast majority of China-made textiles and garments, except for fur and leather apparel and accessories like hats, gloves and handbags. Before the recently added 25 per cent duty, most US cotton sent to China was exempt from import tariffs, which range from 1 to 40 per cent, depending on volume and prices.
Ad per China Cotton Association, normal imports that did not fall under the processing trade, bonded supervision areas and other special customs categories – which are tariff-exempt provided no imported cotton is consumed in China – accounted for only 21 per cent of total imports last year.
For the half year Salvatore Ferragamo’s revenues were down 6.2 per cent at current exchange rates. Asia Pacific area is confirmed as the group’s top market in terms of revenues. The group has a total of 677 point of sales, including 407 directly operated stores and 270 third party operated stores in the wholesale and travel retail channel as well as a presence in department stores and high-level multi-brand specialty stores.
Gross profit decreased by 7.7 per cent. Its incidence on revenues was down 110 basis points, moving to 64.1 per cent from 65.2 per cent, mainly due to the negative impact of currencies. Operating costs decreased, at current exchange rates, by 4.6 per cent.
Ebitda fell by 14.5 per cent over the period, with an incidence on revenues of 17.3 per cent from 19 per cent. Ebit was down 18.5 per cent, with an incidence on revenues of 12.7 per cent from 14.6 per cent.
Italy-based Salvatore Ferragamo, is one of the world’s leaders in the luxury industry. The group is active in the creation, production and sale of shoes, leather goods, apparel, silk products and other accessories, along with women’s and men’s fragrances. The group's product offer also includes eyewear and watches.
A Focus Incubation Center has opened at Northern India Textile Research Association (NITRA), Uttar Pradesh. This is a move to promote innovation and startups in the textile arena by providing the right facilities and support to budding entrepreneurs of the industry. The Focus Incubation Center will provide the necessary facilities and technical guidance to encourage technical textile entrepreneurs for testing new ideas and technologies and thereby leap forward to more innovations in the products that they make.
NITRA is India’s premier textile research association. Its long research and development experience covers almost every aspect of the textile and apparel industry. NITRA has been designated as a center of excellence for protective textiles and automotive textiles which will provide the infrastructure for developing the expertise and technical capability for quality evaluation, product development and knowledge dissemination in the field of protective textiles.
Innovation is the key to success, sustenance, and growth in today’s highly competitive customer driven market place. R&D, in particular, helps entrepreneurs in optimizing the cost of production, improving quality, and leading production to new innovative and value added items so that the individual company and the industry, as a whole, can sustain fierce competition in the market.
Levi’s plans to reduce 40 per cent of greenhouse gas emissions in its supply chain by 2025. The denim giant has been applauded for setting a new standard on climate commitments in the apparel industry. The announcement will allow Levi’s to quickly reduce its carbon footprint in its entire supply chain, including its overseas factories, with adequate commitments that will help the company meet or beat the reduction standards laid out in the UN Paris Agreement on climate change. By reducing air pollution around its factories and helping slow climate change, this move from Levi’s will also literally save lives.
Levi's had previously pledged to reduce emissions by 25 per cent and use 20 per cent renewable energy by 2020 — but those goals were for its direct operations only. Levi’s direct operations account for a mere one per cent of its total climate pollution, with the remaining 99 per cent of its climate pollution in its supply chain.
Cotton textile exporters want the GST Council to allow accumulated Input Tax Credit (ITC) on fabrics available with weavers as on July 31 for adjusting GST payment on outward supplies - both domestic and export. They want tax refund on inputs already acquired.
Although the GST Council, on July 26, recommended that refund of unutilised ITC to taxpayers in the textiles sector be allowed, the notification had, however, also stated that the accumulated credit lying unutilised as on July 31, 2018, will lapse.
This is expected to lead to serious problems for the textile sector as the costs will go up on the available stocks as on July 31, 2018. Most dyes and chemicals, packing materials, fiber and yarn used by the textile sector attract 12 per cent to 18 per cent GST, whereas the rate on fabrics is only five per cent leading to accumulated ITC on account of inverted duty structure.
Section 54 of the CGST Act allows refund of unutilized Input Tax Credit shall be allowed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. Apparently the decision to make accumulated credits till July 31 null and void was taken due to some technical reasons.
DuPont Industrial Biosciences has collaborated with bluesign® for bio-based, high-performance polymer Sorona®. The bluesign® system unites the textile supply chain to jointly reduce its impact on people and the environment, ensure responsible use of resources, and guarantee the highest level of consumer safety.
As a bluesign system partner, DuPont Sorona brand joins a list of chemical suppliers, manufacturers and brands committed to applying the system in their business through continuous improvement of environmental performance and a focus on a sustainable future.
To qualify for the bluesign system partnership, DuPont Sorona brand completed a comprehensive company assessment and roadmap meeting — demonstrating its merit for the certification of its products. DuPont™ Sorona is a versatile polymer comprising of 37 per cent renewable plant-based ingredients, using 30 per cent less energy and releasing 63 per cent fewer greenhouse gas emissions as compared to Nylon 6. In addition to reducing its reliance on fossil fuels, Sorona polymer combines eco-efficiency with function for use in a variety of applications due to its performance attributes. Its exceptional softness, inherent stain resistance and uncompromising durability offer a sustainable, high-performing material option for customers throughout the supply chain.
Cambodia’s exports of garment and footwear products grew 9.3 per cent in the first half of the year. Textile shipments to the EU grew 10.66 per cent while those to the US rose by 10.73 per cent. These two markets jointly account for 72 per cent of Cambodia’s total exports.
Exports to Canada expanded more than nine per cent while shipments to the rest of the world grew by 10.10 per cent. The country’s economic growth for the year is placed at seven per cent, backed by a strong performance of the garment, tourism and construction sectors. From a macroeconomic perspective, the country is strong, with garments being one of the main contributors to national growth.
The EU is Cambodia’s top export destination, accounting for 40 per cent of all its exports. These have risen sharply in recent years, increasing by 227 per cent between 2011 and 2016. Cambodia now is second among all EBA beneficiaries in terms of trade volume.
Growth in export was achieved despite recent warnings from the European Union and the US that they would annul Cambodia’s preferential trade status if the human rights situation in the country fails to improve.
The Bangladesh government, along with many of the country’s employers and worker's organisations has signed on with the International Labour Organisation’s (ILO) Decent Work Country Programme (DWCP) which will run until 2020.
The programme was introduced by ILO to identify industry challenges and set out corrective actions which industry can then look to work towards. The organisation has so far introduced three such programs in the last 15 years. The latest program will focus on the high unemployement among young people; particularly those with high levels of education, high and stagnating income inequality, inadequate social dialogue, low productivity in some sectors and the slow improvements made to the Occupational Safety and Health situation.
The areas highlighted include skills development and green growth; promotion of safe and clean working environments; social dialogue between government, employers and workers; and social protection for all workers and vulnerable groups including protection against climate change.
