FW
Q1 sales of German textile and clothing companies increase by 2.5%
German textile and clothing companies have made 2.5 percent more sales in the first quarter of this year. The number of employees rose year on year by 1.5 percent. The German textile and clothing industry has about 1 400 companies and 135 000 employees and is the second largest consumer goods industry in Germany. Exports increased by 9 per cent last year, while the sales declined due to a crisis in the German fashion retail.
German brands are leaders when it comes to excellent design and value. Worldwide, German companies produce according to best environmental and social standards. The medium-sized companies in the German textile industry assert itself worldwide with high quality.
Several measures needed for growth of Indian technical textiles
Indian technical textile market is expected to witness substantial growth from 2016 to 2024. The government of India has launched various support schemes for textile and apparel manufacturers to make them globally competitive. The schemes target technology up-gradation, infrastructure development, export promotion etc. Various state governments have also announced their textile policies aimed at attracting investments in their states.
However, several measures still need to be undertaken and prioritised to facilitate the growth of the overall technical textile industry in India and help in the growth of India as a global manufacturing hub. Some of these measures include: establishing regulatory norms for mandatory usage of technical textile items in specific industries to increase their consumption, developing exclusive HSN codes for identifying high growth products for further development, establishing and implementing Indian standards for developing high quality products of global acceptance, improvement of operational standards, focus on training and education and creating end user awareness for increasing domestic demand for high end technical textile products.
Besides the above measures, few specific measures need to be undertaken for developing India as a global manufacturing hub including measures to attract investments from domestic and global players, forming partnerships with global players for acquiring technical know-how, the creation of mega parks to attract large-scale investments and focus on R&D initiatives.
US Court approves litigation settlement of Welspun India
Textile firm Welspun India has received preliminary court approval for settlement of its litigation in the US with regards to labelling and marketing of Egyptian cotton products. In May this year, Welspun India had announced that company and its subsidiaries, which have been facing litigation in the US surrounding its premium cotton home textile products, have entered into a settlement agreement in the US.
The settlement agreement provides monetary payments to settlement class members not exceeding $36 million (about Rs 250 crore). The company has agreed to increase payouts to individual settlement class members without increasing the aggregate $36 million settlement cap.
As per statutory procedure, the settlement agreement is subject to final approval and review by the appropriate courts in the USA. Welspun had reported a consolidated loss of Rs 78.43 crore for the quarter ended March 31, 2019, due to exceptional expense of Rs 224.01 crore related to settlement of litigation in the US with regards to labelling and marketing of Egyptian cotton products.
Vietnam’s textiles exports up 16 per cent
In 2018, Vietnam’s textile and garment exports grew by 16 per cent. The free trade agreement with the European Union is expected to yield huge benefits. The EU is the second biggest market for Vietnamese textile and garment products. Textiles and garments shipped to the EU are currently subject to export tariffs of 9.6 per cent, but when the free trade agreement takes effect, the rate will be gradually reduced to zero in seven years. If Vietnamese firms meet origin requirements, the agreement will open enormous opportunities for exports. To be exempt from tariffs, apparel products must satisfy two conditions: the fabric used to make apparel must be from Vietnam or the EU, and the production process must be carried out in Vietnam or the EU. However, apparel products can also benefit from preferential tariffs under this deal if the material fabric comes from the countries that have FTAs with both the EU and Vietnam, such as the Republic of Korea.
However, Vietnamese firms still face several challenges as most of them have engaged in only cutting and sewing so far, and not producing fabric or yarn. Additionally, most production materials still come from China, which doesn’t have a trade deal with the EU.
Upcoming Texworld USA to focus on sustainability, circularity, traceability
Texworld USA will be held July 22 to 24, 2019. This is the largest fabric sourcing event for the North American market. This edition boasts an exciting educational line up with a spotlight on sustainability, and will also cover topics including circularity, traceability, and how to stay relevant in the current state of the industry. Since companies are uncertain how to implement sustainable practices, Texworld’s educational platform aims at addressing this matter by explaining how to improve internal processes and systems like a direct to consumer business model and how to become sustainable-certified. Interactive sessions will address current issues facing the industry, from supply chain changes to the impact of environmental textile trends. Insightful and informative sessions will be offered for every role and level of experience across every segment of the industry.
The African continent is a rapidly developing apparel market with Morocco, Egypt, Jordan, and the AGOA beneficiary countries topping the list for sourcing executives. The event will present the latest on this emerging region in the light of trade tensions, tariffs, and sustainability considerations. Experts will share their thoughts on the future of the area for apparel and the range of factors companies should consider when evaluating these countries.
Collection Premiere Moscow (CPM) in September
The next edition of Collection Premiere Moscow (CPM) will be held from September 3 to 6, 2019. It will showcase collections for the spring/summer 2020 season. Exhibitors from Germany, Italy, France and Turkey will be strongly represented. Around 30 per cent of the exhibition space will be taken up by Russian manufacturers. CPM Shop & Retail Solutions is a service meant for specialists, manufacturers, retailers and service agencies, who, for example, manage online shops and retail chains digitally and are looking for the latest IT solutions, products and services for retail range management including merchandising.
There will be a focus on lingerie with CPM Body & Beach Fabrics featuring new products in terms of fabrics, haberdashery, accessories and print technologies. Spain will be represented by brands such as Admas, Disney, Santoro and Ysabel Mora. Exhibitors from Germany include Bugatti, Ceceba, Götzburg, MEY, Rosch Fashion and Tom Tailor Underwear. CPM Body & Beach is organised by Lingerie, one of the most influential Russian publications about lingerie and the lingerie business. At the upcoming edition of CPM, the magazine will be celebrating its 15-year anniversary and inviting its most important business partners, customers and friends. There will be a competition for young lingerie designers.
In spring/summer 2019 season Russian clothing imports from the European Union increased by eight per cent.
Sudowolle Group to showcase Biella Yarn and HF collections at Pitti Filati
Südwolle Group, a leading producer of worsted yarn for weaving, circular and flat knitting in pure wool and wool blends, will showcase its Biella Yarn and HF collections at Pitti Filati. These variety of landscapes, both natural and human, is an inexhaustible source of inspiration, colours, feelings and shapes which is reflected in the yarn collections we create to clothe your daily life.
The new products feature the finest wools, sometimes in blends with other natural fibres, for lightweight contemporary knitwear. The color palette indulges prevailing trends with numerous shades of whites and beiges and an array of greys, from luminous ice tones to the darkest greys verging on black. Alongside these neutral and balanced hues there are flashes of bright color in yellow, green-blue and turquoise. An exploration of warm autumnal colors ranges from a variety of different khakis, ochre, sand and hazelnut to intense dark browns
India to revise customs rules
India may revamp its customs duty regime, weeding out some exemptions and correcting inverted duty structures in order to encourage exports. An inverted structure is one in which the import duty on finished goods is lower than that on the materials or parts that go into making such a product, thus acting as a disincentive for local manufacture.
There will be a review with respect to encouraging domestic manufacturing. Sectors such as telecom, metals, batteries and chemicals for electric vehicles could see changes. Earlier duties were imposed on smart phones and telecom equipment and enhanced. A comprehensive review may now be undertaken that could lead to a reduction of duties on some critical inputs used in the manufacture of phones while raising them on finished products to further encourage domestic manufacture of handsets. Companies which have established assembly lines will be asked to locate their entire manufacturing chain in India.
Procedures for exporters and importers will be simplified. There is a move to anonymous assessment, aimed at greater efficiency and transparency in functioning. Single-window clearance has already been put in place for traders. Measures to boost exports, including tax refunds, are also on the anvil. Provisions to check tax evasion will be tightened.
India may extend rebates to yarn and fiber
India may extend the rebate scheme to other textile categories like yarn and fiber. As of now the scheme to rebate embedded central and state levies is confined to the garment and made-up sectors. The decision may be taken in the light of the urgency to do away with the popular merchandise export incentive scheme (MEIS), which is against World Trade Organization rules. MEIS which offers incentives based on the markets the goods are being exported to has to be withdrawn as Indian textiles have graduated out of the group of items allowed export sops at the WTO.
The embedded taxes include central excise duty on fuel used in transportation, embedded CGST paid on inputs such as pesticides and fertilisers used in production of raw cotton, purchases from unregistered dealers, inputs for transport sector and embedded CGST and compensation cess on coal used in the production of electricity. Also funds for exporters under the Technology Upgradation Fund Scheme (TUFS) will be cleared. GST issues on textiles and clothing, including inverted duty structure in the manmade fiber sector, will be addressed. The hank yarn obligation may be reduced from 30 per cent to 15 per cent.
India slipped to the fifth position among garment and textile exporters in 2018.
Global hemp market growing by 14 per cent
The global industrial hemp market is growing at 14 per cent. Its driven by hemp’s nutritional and cosmetic qualities. Hemp is seen as a sustainable, organic and regenerative agricultural crop.
Almost everything that can be made with cotton or soy or corn can be made with hemp – with less impact on the earth. Hemp is a weed, so it grows prolifically with little water and no pesticides. It takes up relatively little space, produces more pulp per acre than trees and is biodegradable. Hemp crops even give back by returning nutrients to the soil and sequestering carbon dioxide.
Hemp is cultivated for a medley of biodegradable materials including plastic polymers, building products, fabrics, wood, biofuel, paper and even car components. Virtually every part of the plant can be used. The stalk’s outer bast fiber can make textiles, canvas and rope while its woody core – hurd – is used for paper, construction and animal bedding. The seeds are high in protein, fiber, omega-3 fats and other nutrients. The oil can be used for paints, adhesives, cooking and plastics. Even the leaves can be eaten and used to make juice. This fiber from industrial hemp has been used for thousands of years to make paper, rope, cloth and fuel.












