Indian government is exploring avenue to contain the imports of textile and clothing from Bangladesh. The persistent rise in exports of Bangladeshi ready-made garment (RMG) products to India provoked the Indian textile lobby to push the government to restrain the flow.

India offers Bangladesh duty-free, quota-free market access under SAARC Free Trade Area (FTA) or SAFTA in 2011. Textiles played a crucial role in pushing Bangladeshi exports to India from $672 million in 2016-17 to $1.04 billion during April-November period of 2018-19. During April-November this fiscal, total imports from Bangladesh stood at $781 million (annualised $1.17 billion). Bangladesh is the world’s second-largest exporter of RMG and its exports to India got a significant boost following the implementation of GST – which subsumed 12 per cent countervailing duty (CVD) – in July 2017.

What has particularly drawn the attention of the Indian textile industry is the absence of the minimum value addition criteria in SAFTA. Confederation of Indian Textile Industry (CITI) is apprehensive that this loophole might be used for diversion of Chinese man-made fibre-based garments through Bangladesh However, as amending SAFTA is not possible now, India might consider ‘imposing safeguard duty’ as per budget provisions.

HanesBrands, a leading global marketer of branded everyday basic apparels, posted 25 per cent increase in revenue at $803 million in FY19. The company’s net sales decreased by 1 per cent to $1.75 billion while its constant-currency organic sales increased slightly in Q4 that ended on December 28, 2019. For the full year, net sales increased 2 per cent to $6.97 billion.

Total International constant currency organic sales increased 10 per cent in Q4 and 12 per cent for 2019. In the quarter, sales increased in all International regions, including the Americas, Asia, Australia and Europe. Consumer-directed sales in constant currency increased 17 per cent in Q4r and 16 per cent for the full year. Consumer directed sales in constant currency represented 30 per cent of total sales in the quarter and 25 per cent for the full year.

The company generated $803 million in net operating cash in 2019 and paid down $609 million of debt. Of that, $559 million of operating cash generation and $460 million of debt reduction occurred in Q4.

International segment sales increased 7 per cent while operating profit decreased 2 per cent. On a constant-currency basis, net sales increased 10 per cent and operating profit increased 1 per cent.

As per Global Sewing Threads Market report from Facts and Factors, global demand for the sewing threads is anticipated to reach around US$ 5,627 million by 2026. The anticipated CAGR for the market is around 4 per cent from 2020 to 2026.

Synthetic category in the type segment held 65 per cent market share in 2018. Demand for synthetic threads is anticipated to increase owing to its advantages such as superior resistance to chemicals, tenacity, and higher abrasion resistance. In addition, the environmental conditions and microorganisms such as insects, bacteria, and mildew have no effect on synthetic fibers, thus significantly increasing its applications in the textile industry and apparel.

In application segment, the apparel category accounted for almost 39 per cent market share in 2018 and is anticipated to grow over the forecast period owing to growing fashion industry and trends. High disposable income and Westernisation will surge demand for apparel.

Asia Pacific accounted for almost 48 per cent of the market in 2018. Growing textile and export activities in China are anticipated to help the global sewing threads market boom during the forecast period. The textile industry has become one of the key pillars for China in terms of the economy due to the low labor cost, high investments, easy availability of raw materials, growing e-commerce.

As per 2025 predictions and trends released by Kantar, the global clothing market is likely to increase by 3.9 per cent till 2025 totaling $64 billion in five years. Approximately half of this will be generated by five major players: Japan's Fast Retailing, owner of Uniqlo; Spanish company Inditex; H&M, from Sweden; and American brands TJX and Old Navy. The worldwide fashion retail market, which is currently valued at 300 billion dollars, is likely to $360 billion in 2025.

An overall analysis of global retail, including hypermakerts, brands and discounters, reveals that the market could reach $6,700 billion in 2020 increasing by 4.8 per cent in one year, bolstered by e-commerce which will jump by 15.7 per cent this year, reaching 861 billion dollars. The online market will lead future growth with online sales, increasing four times faster than physical transaction within five years.

Most listed textile companies in Bangladesh declared poor financial results for July to December 2019 due to declining product prices, increased financial cost, overvalued local currency and rise in production cost. Of the 53 listed textile companies that have declared financial results recently, only nine were able to post profit growth while nine declared loss and the rest 31 witnessed a sharp fall in profits in July to December 2019 compared with that in the same period of the previous year. Profits decreased due mainly to a decrease in sales prices and an increase in financial expenses.

The cost of utility bills including gas and electricity has also increased that pushed up production cost for companies. Shortage of gas supply to factories hindered production. The new wage structure raised expenses of companies. Despite all investments made in workplace safety, compliance, implementation of the new wage structure and green industrialisation, the unit price has remained significantly lower.

Bangladesh is losing its competitive edge globally. Exchange rate has remained high for a long time while competing countries have devalued their currencies to gain share on the international market. Lending rates to businesses in Bangladesh are high in terms of international standards and have subsequently increased the financial cost.

"One of the most successful garment machinery manufacturers in India, Macpi offers a wide range of machines to its clients. David Noli, Area Sales Manager of the Macpi Group elaborates on the company, its products and operations"

Starting as a manufacturer of formal wear, shirts and suits, over the years Macpi has progressed to offering garment logistics, stitch free and bonding technologies and laundry to health care institutions. “We provide various innovative solutions to our customers,” says David Noli, Area Sales Manager of the group. 

Known for its vision to stay at 20 years ahead of the market, Macpi has been promoting fully automatic systems since the 80’s.  “That was the time when everybody was still using manual machines. We provided customers with the latest technologies and products. We function not just as a supplier but as a partner to our clients. We help them avoid mistakes and overcome their inefficiencies,” asserts Noli.  The automatic systems used by the company help it to recreate its computer workflow. Its machines are eco-certified and save both power and energy. 

According to Noli, though stitching plays an important role in garment making, it’s time to give bonding and stitch free technologies a chance. “This will allow us to develop new styles,” he says. This technology is showcased in several machinery exhibitions. “However, designers are hardly aware of them.  This creates a gap between technology inventors and the final users.  We need to bridge this gap,” notes Noli.

To implement the Industry 4.0 solution, industry leaders need to invest more time on their customers.  “They should be allowed to build their own structure around this concept,” states Noli further adding, “customers won’t trust you if you merely speak about the technology.” 

According to Noli, three emerging global apparel markets include Vietnam, Bangladesh and Ethiopia. While Vietnam was earlier a sub contractor of China for suits and high-end garments, it can now develop its own industry. On the other hand, Bangladesh is involved in manufacturing shirts and light knits.  “With sufficient support, both these countries will continue to grow. For instance, Italy, which was earlier a subcontractor for Europe and the US, later developed its own manufacturing label,” adds Noli. 

The trade war affects everyone.  “Suddenly, buyers realise that they can’t depend on any one country. This affects the entire global supply chain as orders spread out and countries start manufacturing according to their area of specialisation,” adds Noli. 

It’s becoming increasingly difficult to work in China as workers are no longer interested in machines. “However, the country still  offers the best combination of utilities, service and cost,” affirms Noli. 

The global economy is moving away from its traditional ways of operations.  “Some consumers are demanding low technology goods while others are asking for highly processed goods. There seems to be no mid-way in this,” adds Noli. 

Though Brexit will impact logistics in Great Britian, the rest of Europe will not face any problems. The remaining 27 countries will continue to stay together.  “Of these, Bangladesh can gain by reinventing its traditional methods of manufacturing. Similarly, Indian brands can approach the US and European markets with their products and under their own names. These brands can use our technologies for making their products,”  he states further.  

Noli views that the future prospects for the Indian apparel industry are very good. “However, it should not fall into the trap of cheap labor, cheap garments and more business,” adds Noli

Kornit Digital, a worldwide market leader in digital textile printing technology, announced that the company will be exhibiting at the upcoming Pure Origin event, taking place February 9-11 at the Olympia London. Hosted in conjunction with Pure London, Pure Origin is billed as “the UK’s only fashion sourcing show to bring every element of the fashion supply chain together in one location.”

The Kornit exhibit will call on brands and manufacturers to produce fashion in the most sustainable manner possible, approaching the fashion market with a statement that clothing can be produced on demand, in a profitable manner, without compromising on environmental concerns.

With its unique single-step printing solution and proprietary water-based NeoPigment inks, Kornit Digital enables on-demand textile manufacturing in a sustainable way. Furthermore, these solutions provide retail-quality impressions that enable retailers to become e-tailers.

“Kornit’s solutions answer the fashion industry’s rising need to correct its impact on the environment, a problem perpetuated by overconsumption and the growing number of designer collections,” said Omer Kulka, Kornit’s VP of Marketing and Product Strategy. “Conventional analog technology is ill-suited to this challenge, and not built for short runs or on-demand production. With e-commerce driving an expectation of immediate gratification, the industry demands efficient, sustainable, digital means of production, which lies at the core of Kornit’s value proposition.”

H. Kenneth Greeson, manager of Textile Chemistry Research at Cotton Incorporated, is the 2019 recipient of the AATCC Olney Medal. Greeson is being recognized for his work in durable press finishing of cotton. He has spent many years working with durable press chemistry—in particular, resin and cross-linking chemistry—and has made several significant advancements in cotton durable press technology.

Most recently, Greeson was awarded a utility patent for his work on the formulation of a non-formaldehyde durable press finish for cotton, known as Purepress. This technology combines smoothness with enhanced strength, tear and abrasion resistance, as compared to the traditional DMDHEU finish. The Purepress finish has comparable whiteness, enhanced strength, no shade change, and no odor; it also requires a lower cure temperature than the traditional DMDHEU resin finish.

Greeson has been an active member of AATCC since 1982. Greeson has shared his knowledge through publications in AATCC Review and Textile Research Journal, in addition to serving as a reviewer for AATCC publications. In recognition of his service to AATCC research committees, he was awarded the AATCC TCR Service Award. In addition to his service to AATCC, he is also the secretary of the Southern Textile Research Conference (STRC).

Established in 1944 in honor of Louis Atwell Olney, the founder and first president of AATCC, the Olney Medal Award recognizes outstanding achievement in textile or polymer chemistry or other fields of chemistry of major importance to textile science. The award consists of a gold medal, a scroll, and an honorarium.

Festival of Fashion, Pure London announced a host of exciting new and returning brands for this weekend’s show including a collective of 11 high end Italian footwear, accessories and menswear brands via Regione Campania, making their UK debut from the 9th – 11th February at Olympia London.

Established names showcasing their AW20 collections include Great Plains, Lacoste, Religion, AX Paris, Chalk, Blank, Thought, and DK Company brands; B.young, Fransa, Part Two, Soaked in Luxury, Dranella, Culture, and Saint Tropez; featuring alongside names including Alba Conde, Greenbomb, Smith & Canova, 8 Paris Rocks, Maloka, Flare Street, Comfy Copenhagen, Matthew O’Brien, Castlebird Rose, Carloe London, The Others, Emme Cadeau, Dictate, Sharewear Clothing Scheme, HIGHONFLEURS and Hilary MacMillan and many more making an appearance at Pure London.

This season Pure London welcomes the collective participation of Regione Campania and a group of carefully selected Italian labels. Regione Campania aims to strengthen the exposure of local brands in the clothing, accessories and footwear sector. The objective is also to facilitate new business opportunities as well as partnerships with key retailers in the UK and Europe.

Exponential growth for Pure Conscious indicates that sustainability and ethical brands continues in importance, moving from being a ‘trend’ to an enduring way of doing business.

Religion Clothing has become a Pure London stalwart and will showcase its new AW20 collection 'COME AS YOU ARE' which focuses on layering. Rich textures and oversized prints in a palette of nature-inspired neutrals - caramel, cathay spice and taupe run throughout. Sumptuous velvet tailoring hits the mark for this season’s opulence trend. Dressed down with one of Religion's new graphic statement tees made from sustainable cotton, for an effortlessly chic day-to-night look. This season is all about versatility and contrast - dress it up, dress it down - Religion are staying true to their core belief of the pursuit of individual style for this exciting new decade.

Pure London will see Lacoste showcase what they can do with their women’s collections since Louise Trotter joined as Creative Director. SS20 also marked a significant move for Lacoste into using sustainable and organic materials fabrics, alongside the brands continued partnership with IUCN highlighting the conversation of endangered species with the Save our Species collaboration. Great Plains returns to Pure London for the first time in 10years.

London Beauty Artists (LBA) will be offering on-demand beauty services throughout the three days on Stand N32 with highly qualified, experienced and insured Makeup Artists, Beauticians and Hair Stylists.

Offering a wide range of premium textiles including bottom weights, suitings, finer fabrics, and household linen since 1897, Birla Century now aims to focus on its brands and export businesses.“We aim to shift 60 per cent of our business to brands and exports in the next two years. For this, we plan to move away from the trader segment to OTC and RTS businesses which offer better margins. Our aim is increase our OTC and RTS business from 3.5 lakh meters per month to 7 lakh meters each per month,” says Ashish Mehrishi, Chief Marketing Officer of the company

Aggressive growth plans

As timing, quality and pricing are crucial in both businesses Birla Century is expanding operations aggressively and hopes to be well placed in both these segments. “We offer products in both apparel and home furnishing segments. Our products in the apparel division include yarn dyed shirting fabrics and bottomwear. Yarn dyed shirting fabrics span 25 per cent of our entire production while peach dyed fabrics span the remaining 75 per cent. Our yarn dyed fabrics are used for making both formal and casual wear,” he explains. The company offers two ranges in its OTC business; yarn dyed OTC and whites and dhotis. “Dhoti is our trademark business. We plan to increase this business from 35,000 meters to one lakh meters next year. We also plan to increase our Whites business to about two lakh meters next year.”

Birla Century aims to venture into brands and export business for better profitability, and to work on a plant level. The company also aims to venture into printing business and manufacture around half a million printed fabric. “As this was the only product missing in our apparel division, we felt the need to add it on a big scale. We plan to set up this business by April-May 2020,” Mehrishi informs.

Issues plaguing industry

The apparel market is currently affected by various factors such as trade war. People are also suffering due to high GST costs while payment cycle is affecting the working capital. “However, we are working on these issues and hope to minimise their impact.”

Consumers are demanding maximum designs in minimum quantities. This is affecting many domestic shirts brands. “Their ‘End of Season’ sale has gone horribly wrong as buying patterns have shifted to two months which has delayed the cycle of payments and inventories.” However, there is always a market for brands that offer innovative and good quality designs.

Players are running at 30 to 40 per cent capacities yet their prices have not changed. Mills are oversupplied. Things have become extremely difficult for manufacturers as profit margins have shrunk. However, we are not affected much as we handle diverse segments like OTC retail, brand and exports business. We are on track to make our plant completely green.

In future, Birla Century plans to expand its OTC and RTS businesses to Tier II, III and IV cities and other remote areas. “Efforts are on to reach out to consumers and understand their basic needs and serve them to our capacity. Though our brand recall is not satisfactory, people are aware of us and the legacy of Birla Century,” he sums up.