"Growing craze for athleisure among millennials is giving tough fight to traditional jeans manufacturers. As Jane Singer, Director and Head of Market Intelligence, Inside Fashion points out the two biggest challenges faced by the denim segment are convincing consumer, who already owns several pairs of jeans, to buy one more pair; and increasing profit margins on products for both retailers and manufacturers. The ‘new consumer’ is more demanding. They read labels, research products before buying, and will return products if they are not satisfied. During a session at Intertextile Shanghai, Singer said new technologies are providing brands with fairly easy ways to elevate their products. Many brands have turned to Lycra T400 technology to add improved stretch and retention to jeans. This has helped to give consumers jeans that fit better."

Growing craze for athleisure among millennials is giving tough fight to traditional jeans manufacturers. As Jane Singer, Director and Head of Market Intelligence, Inside Fashion points out the two biggest challenges faced by the denim segment are convincing consumer, who already owns several pairs of jeans, to buy one more pair; and increasing profit margins on products for both retailers and manufacturers. The ‘new consumer’ is more demanding. They read labels, research products before buying, and will return products if they are not satisfied. During a session at Intertextile Shanghai, Singer said new technologies are providing brands with fairly easy ways to elevate their products. Many brands have turned to Lycra T400 technology to add improved stretch and retention to jeans. This has helped to give consumers jeans that fit better.

Daniel Fang, Garment Center Marketing Dept Manager, Guangzhou Conshing Clothing Group, feels in recent years, the denim industry has benefitted from the successful use of new technologies throughout the supply chain. The wide use of super-stretch and bi-stretch has greatly improved comfort and shaping performance of denim garments.

Innovation, sustainability key to success

As Amy Wang, GM, Advance Denim observes, advertising and marketing does not equal innovation. There needs to be concerted focus on developing crossover materials and eco-friendly denim fabrics. Even a 1 per cent change in fibre and chemistry can make a huge difference in denim fabrics. Moreover, sustainability is a key concern in the denim sector. For manufacturers, the ultimate goal is to hit sustainability targets without compromising the look and feel that has made denim a consumer favourite.

Newly released Lycra T400 fibre with EcoMade technology is made in part from a combination of recycled PET and plant-based materials. 50 per cent of the fibre is made from recycled materials while another 18 per cent is plant based, bringing the total sustainable content to 68 per cent, according to Jean Hegedus, global segment director – denim & apparel, Invista. LYCRA T400 fibre with EcoMade technology has similar performance to standard Lycra T400 fibre, and the use of recycled PET means that there is less waste going to landfill. Hegedus added that most recycled fibres are not stretch fibres. At the same time, most stretch fibres made partly from renewable sources don’t offer the level of stretch performance that Lycra T400 EcoMade technology offers.

Stretch the mainstay

Almost every consumer today is looking for stretch fabrics, especially in jeans. Even loose silhouettes are looking to stretch fibres to boost shape retention and provide greater comfort to the wearer. Invista offers three options for bi-stretch functionality. Dual Warp technology provides easy-to-control levels of shrinkage and stretch, while retaining the authentic look of the fabric. Easy Set Lycra fibre (T562B) is for fabrics with low to moderate stretch, and offers easy to handle warping, sizing and beaming. Popular Lycra dualFX technology offers excellent growth and shrinkage, even for high stretch fabrics. For true 360-degree flexibility, Lycra XFIT technology is developed to add stretch to the warp for more even stretch in key areas including the seat, thigh and knee. In short, function is replacing fashion as consumers want comfort.

"Besides other prevailing challenges, apparel companies need to now tackle steep increase in prices of raw materials as well. As per recent stats, wool prices have soared to record highs this year on booming demand, while a drought in Texas and rising Chinese imports have sent cotton futures to a nearly six-year peak in the US. The price of oil, used to make synthetic fabrics like polyester and rayon, is up over 50 per cent from a year ago."

Besides other prevailing challenges, apparel companies need to now tackle steep increase in prices of raw materials as well. As per recent stats, wool prices have soared to record highs this year on booming demand, while a drought in Texas and rising Chinese imports have sent cotton futures to a nearly six-year peak in the US. The price of oil, used to make synthetic fabrics like polyester and rayon, is up over 50 per cent from a year ago.

Retailers, including Abercrombie & Fitch and Ralph Lauren, have already highlighted rising supply chain costs as a potential threat. But they have limited options beyond passing along prices to customers, an unappealing prospect for retailers facing declining mall traffic and increased competition from low-price competitors online. Some, including H&M, are planning steep discounts in coming months to reduce inventories, and could now see rising prices for cotton and polyester squeeze already slim profits. Adam Mansell, Chief Executive of not-for-profit organisation UK Fashion & Textile Association feels margins within the supply chain are incredibly tight. Unless you are supplying top-end luxury goods, it is a very difficult world to be in at the moment.

Reasons for price rise

Cotton prices are jacking up because bad weather is reducing global supplies. Cotlook, an independent analysis firm, forecasts a decline in the world’s stock of cotton by the end of this year. Chinese textile manufacturers have also begun drawing down massive government stockpiles. Oil prices have risen steadily over the last year, as the Organisation of the Petroleum Exporting Countries as well as Russia have reduced production, and countries like Libya and Venezuela have seen supply outages. Brent crude, an international benchmark, traded at about $78 a barrel on Wednesday, compared to about $50 a barrel a year ago. The fashion industry’s demand for wool is rising faster than farmers can handle. Wayne Gordon, commodities analyst at UBS Global Wealth Management Chief Investment Office, highlighted that you have to have the breeds of sheep, and it takes 2-3 years to have any impact on the market. It will put a pressure onto the fashion industry.

Difficult choice for brand

Indeed brands have a difficult choice to make – raise prices and lose customers or keep customers and accept lower profits. That’s a tough pill to swallow at a time when 700 clothing stores shut down in the UK alone last year, according to Local Data Company data compiled for PwC. At Abercrombie & Fitch, commodities are pushing expenses higher, though the company said transportation costs are a bigger threat right now. John Kernan, an analyst at Cowen, stressed that things are going to get be tougher, they are going to raise prices to offset cost inflation. It will be difficult.

Reimbursement of incentives under the Gujarat Textile Policy 2012, will be limited to sales within the state, and will not cover those made outside, according to the state Industries and Mines Department. A July 7 General Resolution (GR) of the Department states units will not include Integrated Goods and Services Tax (IGST), i.e. GST on inter-state sales. It will be only qualified to avail of reimbursement only for State Goods and Services Tax (SGST).

Textile is the first industry for which the incentive has been announced, while amendment of other policies for replacing VAT incentives with SGST is under process. With the introduction of GST from July 1, 2017, the state government had formed a committee to suggest modalities for SGST incentives. After considering its recommendations, the government has decided to extend SGST incentives in the form of reimbursement under the policy.

The GR also states that the unit shall not be entitled to reimbursement of IGST on inter-state supply, reimbursement of SGST input tax credit utilized for payment of IGST, and reimbursement of IGST input tax credit utilized for SGST payment. Under GST, the tax goes to the state where goods or services are consumed. The tax collected is divided equally between the state and centre.

A large textile process houses would not get any benefit of the policy because of the provision about SGST paid through cash ledger, says GST expert Monish Bhalla. ITC reimbursement is only in case of intra-state supply, which again goes against the ground reality as majority of the large units are either exporting or supplying pan-India. Meena Kaviya, board member of Association of Apparel Manufacturers and Exporters of Gujarat, welcomed the incentives and stated that sops should also be given for sales outside the state.

After many protests textile products were put in the tax bracket of 12 and 18 per cent originally, but majority of the items were moved to GST rate of 5 per cent.

The group makes the complete range of spinning preparation machines for the Indian market and serves customers out of three service centers. In initial years, from 1981 to 1992, the company was mainly concentrated on supplying blow room machines. In 1992, cards were added to the production program and in 2002 draw frames. It was in 2009 that a transition began with supply of the company series of machines to the Indian market under the brand name of Truetzschler. These cutting-edge machines ensure that products and services are of global standards.

For Truetzschler, 2017 was one of the most successful years across the globe. In the spinning sector major markets like India and China invested in spinning whereas new investments also came to Uzbekistan, Vietnam, Pakistan and Bangladesh. The non-woven business also expanded in China and Europe. Spinning and card clothing witnessed significant growth whereas the non-wovens and manmade division was steady.

China continues to be the most dominant market across all business units for Truetzschler worldwide. Currently Truetzschler commands a market share of over 50 per cent in India for blow room machines and cards. Truetzschler is planning to unveil its next round of innovations in products and technology.

For the Q2 Levi Strauss revenues rose 17 per cent. The San Francisco-based company delivered its third consecutive quarter of double-digit revenue growth, driven by the disciplined execution of its strategies and a more diversified portfolio. The iconic brand also quadrupled its net income for the three month period. Net revenues grew 17 per cent, driven by broad-based brand growth across Levi's brands in all regions and channels. The Americas witnessed 11 per cent growth but clocked a five per cent net income decline in the domestic market, on increased retail expansion and advertising costs.

Internationally, Levi’s soared, particularly in the continent, as both Europe and Asia reported gains of 19 per cent and nine per cent. By category, Levi’s direct-to-consumer revenues grew 19 per cent on a solid sales performance and the expansion of its retail network, as well as e-commerce growth. Total wholesale revenues grew 14 per cent reflecting higher revenues in all regions.

Adjusted EBIT grew 15 per cent reflecting the revenue growth and higher gross margins, while operating income increased 22 per cent. The Levi’s brand collectively operated 53 more own stores at the end of the second quarter than it did a year prior.

Kraig Biocraft has opened a new facility in Vietnam. This facility will have capacity, utility and security to support the planned growth in Vietnam through the first phase of operations and will be the launch pad for future expansion on a pre-designated 50 hectare parcel of land located nearby.

The company selected this facility due to its proximity to mulberry production, building layout, condition, utilities, and its proximity to shipping ports and the company’s planned 50 hectare future campus.

Kraig Biocraft Laboratories, based in the US, is a biotechnology company, and a leading developer of genetically engineered spider silk based fiber technologies. The company has achieved a series of scientific breakthroughs in spider silk technology with implications for global textile industry.

Vietnam has been the focus of company’s efforts to launch a commercial scale production of recombinant spider silk, due to the country’s existing silk production infrastructure. Kraig estimates it can produce its recombinant spider silk at prices similar to ordinary silk, given the company a tremendous competitive advantage.

The company has produced the first recombinant spider silk cocoons from the new line of hybrid transgenic silkworms recently created at its production and research facility.

Hyosung has adopted the holding company system. It will serve as the holding company and four affiliates – Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical – will handle manufacturing and operations. Hyosung will reinforce global competitiveness of the four affiliates by having them as independent entities under the supervision of professional executives. The conversion to the holding company system is slated for completion by the year end.

Hyosung TNC will utilize its unique and highly competitive brand of spandex to tap a variety of overseas markets. Its trading division will raise its international competitiveness based on the company’s cutting-edge marketing infrastructure and knowhow.

Hyosung Advanced Materials seeks to grow into a leading provider of automotive materials focusing on tire reinforcements, including polyester tire cord, car mats, and yarns for automotive seat belts and airbags. The plan is to foster new materials such as aramid and carbon fiber as Hyosung’s next growth engines.

Hyosung Heavy Industries will fully utilize its extensive knowhow and peerless technology in power systems and industrial machinery to reinforce its global competitiveness.

Hyosung Chemical’s vision is to emerge as a chemical substance specialist and develop new growth engines. Hyosung will also hire experts from various fields to significantly reinforce objectivity and transparency.

The Change Fashion Forum and Workshop was held in the US, June 27. This is an event that brings together leaders from the fashion industry, academia, and non-profit organizations to begin the development of a prioritized sustainable fashion research agenda and roadmaps for the priority areas identified in the agenda.

Change Fashion Forum focuses on creating innovation to pioneer the future of fashion and create a new sustainable ecosystem in the fashion industry. This means innovation throughout the entire product lifecycle, toward a circular and regenerative model — changing the way garments are designed, produced, shipped, bought, used, and recycled by introducing disruptive science and technology, and new business models.

The event comprised five working group sessions covering the stages in the circular ecosystem of the fashion industry: materials, production/manufacturing, retail and consumer, supply chain, and closing the loop. The event was sponsored by the Chapman Perelman Foundation and the New York Academy of Sciences.

New York Academy of Sciences hosts leading researchers from institutes and universities representing expertise from the fields of chemical engineering, toxicology, design, and material sciences. Beyond business model innovation, scientific and technological advancement offers the greatest hope to drive the evolution of the fashion industry towards a more sustainable model.

Carlo Benetton, the youngest siblings behind the famed United Colors of Benetton brand has died aged 74. Benetton, a father of four, died in his home in the northern Italian city of Treviso.

With his brothers Luciano and Gilberto and his sister Giuliana, Carlo Benetton founded United Colors of Benetton in 1965 in Ponzano Veneto, a village in Italy's northeast. Their signature soft wool jumpers made in a variety of colours quickly seduced the masses. The company went from strength to strength especially between 1982 and 2000 its fame fuelled by daring ad campaigns by Italian photographer Oliviero Toscani such as a 1989 poster which featured a black woman breastfeeding a white baby. But for over a decade the brand has been hit by dwindling sales.

Since 2010, business has been struggling that 83-year-old Luciano Benetton stepped back in as the company's chairman last autumn, having left the position in 2012. In 2017, following heavy losses, the 83-year-old Luciano Benetton announced he was coming out of retirement to retake the reins of the company.

Global automation in the textile industry is expected to grow at a CAGR of six per cent during 2018-25. The automation market in the textile industry is fragmented and has the presence of numerous players who offer various products and services.

Availability of favorable government policies will be one of the major factors that will have a positive impact on the growth of global automation market. Countries like India are key revenue generators for the global textile industry. Owing to favorable government policies, there are several investments and developments in this sector, which will have a positive impact on the automation market. These policies are beneficial for the growth of the industry and drive the automation of processes, in turn, increasing the demand for field, control, and communication devices.

India is already allowing 100 per cent FDI in the textile industry under the automatic route. Industries listed under the automatic route need no approval from the Reserve Bank of India or the Government of India for any investments. Such favorable policies will attract investments in this sector and create a demand for automation products and services in the textile industry. In terms of geographic regions, Asia will be the major revenue contributor to the automation market in the textile industry throughout the forecast period.