Coinciding with the beginning of cashmere harvest season in China, this year Cashmere World was held concurrently with APLF 2019 in Hong Kong from March 13-15, 2019h. Similar to other events held during APLF, sustainability, consolidation of the supply chain and the demand for more creative designs were the three major trends that marked the event.

Recently, the governments of China and Mongolia, issued and enforced very strict environmental protection rules, intensifying scrutiny on cashmere production operations, and subsequently decreasing the number of breeding goats and cashmere output. This situation resulted in a spike in prices that was reflected at Cashmere World. According to the Schneider Group’s recently released annual cashmere market reprot, another factor affecting cashmere prices was the increasing demand for lamb in China; with higher prices for lamb meat, goats reared for fibres were supplanted by sheep, reducing cashmere production.

Sustainability led manufacturers to increasingly buy cashmere directly from nomad families without involving middle men, allowing them to trace the cashmere in terms of location as well as quality. This resulted in a consolidation of the supply chain. There is growing pressure to meet new standards before the industry besides creating an internationally acceptable industry body which sets standards and fights its corner.

Another clear trend that emerged at the event include need for more creative and diverse designs along with increased fabric blends and mixes that sell in summer and thus extend the sales season. In the past, brands used to provide their own design to their suppliers. Today, they expect their suppliers to suggest new creative designs and to provide them in smaller quantities. This presents a challenge to manufacturers who henceforth need to become more fashion oriented and flexible in terms of quantity.