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Challenges faced by the denims players
Credit-fueled spending, according to Antoshak has given way to tight budgets as consumers continue to pay off their debts from the years leading up to the recession. As a result, sales of jeans in the United States, for example, have declined over the past several years, while the popularity of low-cost knitted athletic wear has gained considerable market share. And smartphones along with other such gadgets are grabbing the attention of today’s consumers. He says that while the extreme high end of the jeans market remains robust, but the mass market for denim around the world has stalled.
Another factor has also affected the denim market is synthetic fibers. He observes that in an effort to lower the cost of mass-market jeans production, many manufacturers have replaced cotton with some polyester. Stretch fibers have, of course, been a force in denim for many years but since cotton prices soared to over $2/pound in 2011, both mills and apparel companies have scrambled to find more economically priced fibers for use in their denim. Of course, cotton prices have since moderated, but so has the price of polyester solidifying gains by synthetics, he avers.
What all these factors have led to is an oversupply of denim worldwide and while the jeans business is cyclical, skepticism has plagued the market. Antoshak says that due to anemic demand, and an increasing switch to blends, global denim prices are relatively weak and the overcapacity situation has further dampened price levels. He cautions that the demand is likely to further fall over the next few years.
Denim’s survival depends on tapping opportunities
However, on a positive note Antoshak states that over that time, as excess capacity will be shed around the globe, some countries will actually step up construction of new mills. So along with a continuing decline in aggregate denim capacity is likely over the next few years as inefficient mills in Europe, North America and Asia are dismantled, at the same time new capacity comes on-line in China, India, Turkey and Brazil. The growth in these countries and a smaller number of other producers, such as Vietnam, will in time grow to offset declines in less efficient capacity elsewhere, he says.Looking out to the end of the decade, he points out that there will be increased demand for more elaborate variations of denim than had been the case previously and that the stretch qualities of elastomeric products will help maintain denim sales for some producers globally.
Antoshak further says that from the mill perspective, countries/regions such as North America, Europe, selected Asian suppliers like Indonesia, Korea and Taiwan will see consolidation and countries like China, Turkey, Brazil, Vietnam, India and Pakistan will witness growth. He says that there will be great changes in Asia, with China taking on a greater and greater role in the world market for denim, since the country is learning how to make quality cloth at much lower prices than other suppliers.
On the other hand, North America, according to him will be subject to greater imports of denim cloth and apparel containing denim. This in turn will drive more domestic mills out of the market, which means that Mexico, in particular, will become less of a force as the decade progresses, he says.
Questioning the rise of athleisure trend, Antoshak asks what will happen as young consumers age? Will they still want to wear the sweats ever day? Not likely. As a consumer product, jeanswear has survived fashion changes and economic challenges many times before. In part this success is due to the versatility of the product itself, he argues.
www.olah.com
Geotechnical Frontiers 2017, a popular trade show for geotechnical, civil and geo-professional communities will be held from March 12-15, 2017. Held every six years, the industry unites to share developments in geotechnical engineering and technologies at this speciality conference.
The theme ofthe conference is ‘Innovation and Collaboration in Technology and Practice’. Spread over four days, the conference will feature over 250 exhibits, technical programming, besides a comprehensive programme of short courses, panel discussions, training lectures, workshops, and paper presentations presented by top industry experts.
Practical, targeted training opportunities for those who attend the conference is one of the goals of the event. So those who are who are not interested in the technical paper programme can be a part of this training. The event offers several opportunities to connect with others form the industry on the trade show floor, at receptions, luncheons and other networking events.
Organised by the Industrial Fabrics Association International's Geosynthetic Materials Association and the American Society of Civil Engineer's Geotechnical Institute, the Geotechnical Frontiers 2017 is supported by the North American Geosynthetics Society under the auspices of the International Geosynthetics Society. The largest geotechnical trade event in North America, this event brings together many qualified buyers and decision-makers from geotechnical companies, government agencies and contracting organisations.
India’s share in the global apparel trade is unlikely to increase significantly over the long term. Structural challenges which constrain the industry need to be addressed.
The fragmented nature of the industry, low levels of modernisation, high costs of production and a limited presence in man-made fiber apparels are the main factors which have constrained the growth in India’s apparel exports.
The share of India in the global apparel trade is just four per cent despite the fact that India is one of the world’s largest cotton producers with the world’s second largest spinning and weaving capacity. Countries with benefits of economies of scale and abundant availability of cheap labor, such as China, Bangladesh and Vietnam, have been able to garner a larger share in global apparel exports over the last decade.
India is the world’s sixth largest apparel exporter after China, Bangladesh, Italy, Germany and Vietnam. Downstream sectors in the textile industry like weaving, processing and garmenting have not been able to derive benefits from the government’s Technology Upgradation Fund Scheme.
When it comes to yarn, most spinning mills are facing a working capital crunch since they have yet to get subsidies and incentives under the focus market scheme have been withdrawn.
Pakistan may have a trade policy by November. Over the last two years the country has faced a downward trend in exports.
The policy will offer incentives to the business community to improve its exports in terms of value addition and quantity. There will be a speedy export refund mechanism on value addition and incentives on import of machinery that improves value addition. The institutional framework for promotion of exports will be strengthened. New markets like African countries will be targeted.
Afghanistan has emerged as a major trading partner and has become Pakistan’s third largest export market. Pakistan used to export naphtha, a petroleum product, to the UAE. But then the UAE established its own plants and stopped importing naphtha from Pakistan altogether. This caused a big dent in the country’s exports.
The duty on the import of jewelry for export purposes caused the export of consequent value-added jewelry to cease. This duty will be looked at afresh and revised.
In addition the slowdown in China has hurt Pakistan’s export performance. Energy deficit, the law and order situation and devastating floods have added to the problems faced by the industry. Pakistan wants to take its exports from $24 billion now to $35 billion by 2018.
The Myanmar Garment Manufacturers Association’s second Annual Factory Awards Dinner is to be held on October 24, 2015 at the Summit Parkview Hotel Grand Ballroom. The awards are to honour the achievements of MGMA’s member factories in manufacturing excellence.
This year, there are several corporate sponsors—TÜV SÜD, OV Logistics, Fine 9 Consulting, BLX Labels, Maersk Line, Luther Law and SMART Myanmar. SMART Myanmar would be to sponsoring and coordinating the ‘SMART Award’—a trophy and recognition to be given out to the applying factory with the most noteworthy progress in social compliance improvement. Member companies too will receive several certificates for accomplishments such as ‘excellence in factory set-up’ and ‘recognition of best workplace facilities’ as well as several other mentions.
Professor Aung Tun Thet, presidential economic adviser will be giving the evening’s keynote remarks. During the evening, two factories will be recognised for excellence in social compliance practices.
A great opportunity to meet people from across Myanmar's garment industry, the event welcomes 200 guests, including several dozen garment manufacturers in attendance and many industry service providers and associations.
Many manufacturers with industry service provides, brand representatives and related companies and organisations had come together at last year’s Factory Awards Dinner for a an evening of business networking and celebration.
www.myanmargarments.org
Orizio, the Italian knitting machine manufacturer will be showcasing its latest innovations in knitting technology at ITMA 2015, which is to be held in November this year.
A press release by Orizio stated that high performance single and double jersey machines up to electronic models and a new special machine for high pile and special fabrics for outwear would be displayed.
The company’s efforts in sustainability have helped the company reduce energy consumption and wastes in its high-level engineering products at affordable prices, according to the manufacturer.
The sinkerless technology from 20 to 80 gauge with 90 feeds on 30” diameteris something that can knit impressive top quality fabrics perfectly, which is being showcased by Orizio. The JFP model, which is introduced this year, produces high quality jersey and jersey with lycra for sinkerless stitch structure fabrics.
JFP is equipped with the performing Orizio LC open frame with electric cutter, pneumatic roll expulsion and a brand new control system with touch screen.
Also, wear and tear of needles is saved and there’s a decrease in energy consumption due to new mechanical developments in the company's machines. Orizio further stated that impalpable and wafer-thin or voluminous, faux fur has always featured in the collections of fashion labels. However, it has never been as fresh as today, because of unexpected level of innovation.
The new Orizio PLE machine version is an electronic single jersey machine for the production of top quality high pile fabrics, with multiple colours high dimension patterns. PLE machine is capable of up to six colour reversible jacquards, with one side incorporating the jacquard as pile fabric, stated the release.
www.orizio.com
China and Britain want to fully tap their potential in bilateral trade, particularly of high value-added and hi-tech products, and in service trade and infrastructure projects. The intention is to have an upgraded and closer bilateral relationship in all aspects, especially in economic and trade exchanges.
China wishes to promote the export of high value added products to Britain while making good use of Britain’s advantage in high-end manufacturing, high and new technology, and research, to expand bilateral trade.
Potential areas of cooperation are technological innovation, e-commerce, financial and legal services, medical care and creative industries. Other areas are high-speed trains, nuclear power, life science, satellite application, new energy, and new energy cars.
Britain is China’s second largest trading partner within the European Union, while China is Britain’s fourth largest trading partner. In 2014, bilateral trade value increased 15.3 per cent year on year, with the growth rate ranking the first among all China’s trade partners in the European Union.
China hopes Britain will play a positive role in promoting the export of European high tech products to China. An early realisation of a China-Europe investment agreement and a feasibility study on the China-Europe free trade zone will be conducive to sustainable bilateral trade and investment cooperation.
The factory safety assessment reports provided by the ILO-hired firms were not being accepted by the Accord on fire and building Safety in Bangladesh. The apparel exporters told this to a high-powered International Labour Organisation delegation.
Bangladesh’s readymade garment factories (RMG) are undergoing double inspections because of the rejection from the European retailers’ group. The delegation of the ILO’s Direct Contacts Mission, in a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), wanted to know about the country’s progress on the ongoing safety assessment and whether the amended labour law had been implemented in the RMG sector or not.
Md Siddiqur Rahman, President, BGMEA said that the ILO team wanted to know about the trade union activities, number of Workers Participation Committee in the factories, activities of the Department of Inspection for Factories and Establishments, and formation of Occupational Health and Safety Committee in the RMG sector.
He added that they had informed the ILO team that the labour law was implemented and the registration of trade unions had increased in the sector. Besides, the team was told that the labour law implementation rules were just passed and the formation of Occupational Health and Safety Committee remains under process, Rahman stated.
The ILO team wanted to know in detail about the progress on the factory inspection programme, Rahman said. He added that the trade body informed that Accord, the platform of the EU retailers, was not accepting the inspection reports provided by the ILO teams.
www.bgmea.com.bd
Bangladesh’s garment makers have huge opportunities in the sweater industry. Right now the world sweater market is dominated by China. But since China is gradually inclining to the hi-tech and heavy industry, Bangladeshi apparel makers can easily grab the sweater market.
Sweaters are one third of the world knitwear market. And in Bangladesh too sweater production is one third of the country’s knitwear production. Sweater production can be enlarged by introducing automated machines. Many sweater manufacturers in Bangladesh have already introduced automated jacquard machines that are helping them enjoy a robust volume of production. Different sweater factories in Bangladesh have installed some 10,000 machines imported from Japan and South Korea.
Producing sweaters and functional fabrics in large volumes would be a pathway for Bangladesh’s apparel sector to reach its export target of $50 billion by 2021.
The knitwear sector in Bangladesh currently supplies 90 per cent of the knit fabric requirements. Many garment units have their own dyeing and finishing units. In fact a separate dyeing and finishing industry also has grown up over time to support the sector. There are more than 2000 knitwear factories and the industry has strong backward linkage facilities. The knitwear is exported to 153 countries of the world.
The second largest employer in that country, Omani companies have been encouraged to invest in India’s textile sector. Around 35 million people would be employed directly due to this.
At an exhibition entitled ‘Vastram—Splendid World of Indian Textiles’ which featured more than 30 traditional Indian textiles, Indra Mani Pandey, India’s ambassador to the Sultanate, said that textiles were an important part of India’s exports to the Sultanate and India whole-heartedly welcomes Omani investments in this industry.
There was Oman-India Investment Meet held recently and in the next two months, another investors’ meet was to be organised, Pandey said. He added that they were looking forward to Omani companies investing in India. There are 1,500 joint ventures between the two countries and there must be many textile-oriented ones among them. Besides, there is one, which is being created in Salalah, the ambassador stated.
Former assistant to Sultan Qaboos bin Said’s adviser at the Ministry of Information, Mohamed Al Riyami also encouraged this investment and felt that Omani investors should go to India and invest, but get the items in Oman and put them for sale there.
Pandey, while highlighting the diversity of Indian textiles in terms of production, material and the processes involved said that the purpose of the exhibition was to showcase this diversity to the people of Oman and the Indian community.
