Pakistan is now pursuing an export-led growth strategy. The assumption is that this is the only sustainable solution to overcome the trade deficit in the shortest possible time. The current account deficit is expected to be seven billion dollars at the end of the current fiscal year, down from $17 billion last year. This will be made possible by remittances worth $22 billion. For March 2019, exports are $17.1 billion and imports are $40.7 billion. The country is looking to bring down current account deficit to zero within two years if monetary policy remains tight and exports are encouraged through new investments.

A long term textile policy is being finalized by leading textile exporters, representing the entire value chain. The current account deficit has been a source of concern for the whole industry due to its negative impact on the growth of the economy as well as the industry. Provision of enablers for the restoration of competitiveness through timely interventions by the government has started bearing fruit. Pakistan’s textile exports are likely to cross $14 billion by the end of the current fiscal year. Leading business groups are upbeat other investors are ready to undertake new investment initiatives in greenfield and expansion projects in the textile value chain.

As per Mostafiz Uddinh, Founder and CEO, Bangladesh Apparel Exchange, increase in wages and production cost is forcing the country’s garment manufacturers to make value-added products, the country plans to focus on smart clothing. This shift from basic items to value-added ones has to be done slowly with proper planning and execution and the upcoming Bangladesh Fashionology Summit will help facilitate that shift.

The second Bangladesh Fashionology Summit 2019 will be held from May 2, 2019 at the International Convention City Bashundhara in Dhaka. It will strengthen the country’s position to fetch its share in the US $ 130 billion smart clothing market.

To be attended by 41 speakers from 15 countries, the event ‘Digitisation-the Next Destination’-will bring together fashion experts from across the world. In addition to keynotes, exhibits and knowledge-sharing sessions, the summit will also provide a platform for start-ups to showcase their cutting edge innovation in fashion. There will also be a Tech Innovation Zone to exhibit the best of the latest fashion technologies and innovations.

A premature cessation of Accord’s operations in Bangladesh would be a major setback for worker safety in the country. Over the past two months, at least 95 people have died in fires in buildings. The same combination of owners’ negligence of building regulations and authorities’ failure to inspect buildings and enforce regulations that made Rana Plaza possible is still a daily reality in Bangladesh. Authorities fail to notice or act on the knowledge that buildings have no safety licenses, violate building construction rules, have no fire-protected exits and keep many of their emergency doors locked, despite earlier fires.

The 193 Accord signatory companies have a binding obligation to only source from factories where Accord has verified that the fire, electrical, and structural safety remediation process is on track. Cognizant of that obligation, brands have made clear that a premature termination of Accord could endanger the safety of workers employed in the garment industry.

The Accord on Fire and Building Safety in Bangladesh is an enforceable agreement signed by apparel brands and trade unions following the Rana Plaza building collapse of April 2013 that killed 1,134 garment workers. Accord provides independent safety inspections, transparent remediation protocols as well a worker complaint mechanism and training. As a result, unprecedented safety improvements have been made to factories across the country.

"There is growing discontent amongst EU leaders against Pakistan. EU’s home textile manufacturing sector recently accused Pakistan of distorting its textile manufacturing sector with cheap imports, poor quality, and a total lack of respect for labor and environmental rights, conditions which European manufacturers must comply with."

There is growing discontent amongst EU leaders against Pakistan. EU’s home textile manufacturing sector recently accused Pakistan of distorting its textile manufacturing sector with cheap imports, poor quality, and a total lack of respect for labor and environmental rights, conditions which European manufacturers must comply with.

Agreeing to this view, Gustavo Gonzalez-Quijano, Secretary General of Cotance noted Pakistan was neither fulfilling any of its social obligations nor respecting the core conventions stated as obligatory for these EU trade programs. According to him, there was systematic abuse in both Bangladesh and Pakistan which could prove detrimental to the European industry.

Both Pakistan and Bangladesh benefit from EU trade subsidy programs under the Generalised Scheme of Preferences (GSP). Pakistan benefits from substantial duty reductions on its exports to the EU, under strict compliance with 27 international core conventions set out in the GSP+ prerequisites. Bangladesh, on the other hand benefits from the less generous, and also less onerous, Everything But Arms (EBA).

GSP+ benefits to Pakistan leads to unfair competition

The European leather industry is impacted with this unfair comparison to Pakistan which has been enjoying the benefits of GSP+ since 2014. The country has become highly competitive in leather sector with leather products growing to be its second-largest export-earning sector. It is therefore, important to discuss the effects of GSP+ on the European leather industry.

In a written question to the European Commission recently, Lithuanian Member of the European Parliament, Petras Auštrevičius from the Group of the Alliance of Liberals and Democrats for Europe raised Europe’s concerns about workers’ rights in Pakistan, specifically relating to the leather and textile sector. He questioned the European Commission’s decision to grant GSP+ to a country that does not respect the prerequisite 27 core conventions thereby, jeopardising the EU textile and leather sectors. He also quizzed the Commission about its initiatives to prevent unfair competition as a result of this GSP+ grant.

European Commission supports Pakistan

Replying to this accusation, Trade Commissioner Malmström, on behalf of the European Commission, highlighted the Commission had published its Midterm Evaluation of the Generalised Scheme of Preferences (GSP) Regulation in October 2018. The study had analysed the impact of textiles and leather imports from Pakistan on EU industry, concluding that though it may harm some producers, others will benefit from the opportunity to manufacture their goods outside of the EU and import them under GSP.

The European Commission aims to support these countries in meeting their commitments and strengthentheir cooperation with the United Nations and International Labour Organisation through GSP+ monitoring. The Commission believes that Pakistan justifies its GSP+ status as it is making sufficient progress in key areas.

It is indeed surprising that the European trade commission holds such views. His view that European industries may benefit from manufacturing their goods in a country that has dismal record of labor standards and is currently on the terrorism financing list, is thought-provoking.

There have been several innovations in the active wear segment, especially in fabrics. Brands are using fabrics with innovative features such as moisture wicking properties and an ability to protect against UV radiation besides offering freedom of movement.

The knitted three-layer high pile can either be used as an inner lining or as a decorative accent on the outer face. The pile keeps pile fibers firmly in place without spending extra time and effort on lamination. This simplifies the production process besides lightening the fabric, making it ideal for athleisure applications. This helps manufacturers save time and money, without sacrificing quality. Also, each of these layers can use a different material type — for example, a soft cotton lining and a UV protective fabric shell — optimizing function and comfort for outdoor sport enthusiasts.

Intarsia fabrics retain their vibrant colors and patterns for much longer, since the design is knit into the fabric itself rather than just pasted on the top. As brands are looking for new ways to embed their logos into athletic gear — and designers remain on the lookout for techniques that can create a unique look — intarsia is likely to make a big impact in the 2019 athleisure market.

A recent report, even though 80 to 85 per cent of the workers in the Asian garment factories are women, they are treated badly. The Clean Clothes Campaign in its report 'Foul Play' highlighted that only 2.5 per cent of the revenue from the sale of Nike or Adidas shoe is paid to women engaged in the production of these shoes. According to the report, even though the marketing budget for both companies has risen by above a fifth, it is mostly spent on marketing gimmicks such as the Dream Crazier video from Nike targeted at sportswomen.

Almost every sports brand has production lines in Asian factories including Nike, Puma, Asics, Adidas, Reebok, Under Armour and New Balance with varying levels of commitment to working conditions. The women employed in these companies mostly work in factories on the outskirts of large cities. They stay in rows of concrete bungalows, each small room filled with a double bed shared by two or more women. They even have to hide their pregnancies else they are terminated from work.

In 2015, a United Nations report found the abortion rate among garment workers in Cambodia is more than three times higher than in the general female population. The report also highlighted the 2013 incident in Bangladesh where many promises were made by clothing but very few fulfilled.

Polartec, the premium provider of innovative and sustainable textile solutions, and Kraig Biocraft Laboratories, the biotechnology company focused on the development and commercialisation of spider silk, plan to jointly introduce fabrics made from spider silk. Initially developed for specialised military applications, these first-of-their-kind materials made from recombinant spider silk will eventually service the global market for high performance textiles and apparel.

Kraig possesses the exclusive right to use patented spider silk gene sequences in silkworms, which is the first way to mass produce these fibers cost effectively and responsibly. These fully renewable, biodegradable and biocompatible ‘super fibers’ are thin, lightweight, flexible, resilient, extraordinarily strong, and display strength-to-weight ratios more comparable to aramid fibers than other current performance fibers. In apparel applications, the possibilities of recombinant spider silks are particularly exciting, realiaing unprecedented combinations of physical properties such as luxurious feel and breathable comfort with top durability.

In joint development since 2016, Polartec and Kraig are applying the performance characteristics of spider silk into yarns for military-grade textiles. This project combines two of Polartec’s most important innovation missions: providing best-in-class textiles to our Nation’s military personnel, and its investment in a fully biodegradable product line.

The Federal Reserve’s decision to lower interest rates this year has garnered diverse reactions from the US finance experts. Many advised caution to apparel manufacturers. Darrin Beer, Western Regional Manager, Commercial Services, CIT Group points out apparel manufacturers should ensure their accounts receivable are protected as the retail landscape can be volatile. He feels it’s important for them to ensure their business has sufficient capital to support growth and handle sales fluctuations due to seasonality, order deferments or cancellations.

The Federal Reserve’s decision to lower interest rates this year has garnered diverse reactions from the US finance experts. Many advised caution to apparel manufacturers. Darrin Beer, Western Regional Manager, Commercial Services, CIT Group points out apparel manufacturers should ensure their accounts receivable are protected as the retail landscape can be volatile. He feels it’s important for them to ensure their business has sufficient capital to support growth and handle sales fluctuations due to seasonality, order deferments or cancellations. A properly structured financing facility should provide a company with adequate borrowing flexibility to manage through any and all of these events.

Cash and inventory management

Efficient cash flow management is also something that Mark Bienstock, Managing Director, Express Trade Capital advises. As he says, watching cash flow is paramount to sustaining a profitable apparel business, both in the short and long term. The company advises clients not to buy or produce anything without underlying orders. Speculation requires significant cash-flow strains and interest costs that most companies cannot absorb.

Apparel manufacturers also need to be vigilant about their inventory management feel some experts. Managing their assets appropriately in relation to the scale of actual order activity will help manufacturers improve liquidity and reduce borrowing requirements.

New ways of cash-generation

Not just management, some experts also encourages clients to look for new ways to make money. For some, this may involve expanding with a direct-to-consumer platform where margins are more attractive, while others may target creditworthy online retailers.

According to Rob Greenspan, President and Chief Executive, Greenspan Consult, another way to increase cash flow is to focus on assets that turn into cash such as accounts receivable and inventories. Apparel manufacturers, during times of a slowing economy, need to maintain their liquidity. They need to focus on cash flow and profitability by reviewing their operating expenses and updating their sales projections and cash-flow plans.

Adopting a disciplined approach

Planning for future should always be disciplined and based on specific market-sector needs with a combination of cash reserves, needed additions to debt earmarked to support specific business-cycle (working-capital) needs and fixed-asset additions, point out experts. The ultimate goal is to negotiate extended open-supplier terms to match their trade cycle and only borrow to support growth and not for building excessive inventory levels in case they get a future order, says Ken Wengrod, Co-founder/President, FTC Commercial Corp. For this some experts recommend extending current financing agreements to take advantage of the present interest-rate environment. The combination of a supportive partner and retained capital will better prepare a company to thrive in the future.

British brand Mulberry has successfully implemented Aptos solutions for pre-season and in-season planning. For the next project phase, Mulberry will focus on product lifecycle management along with supply chain management in order to manage product development and fasten the sourcing process with greater efficiency. Aptos is supporting Mulberry by offering key functionality to integrate the entire process across functions, geographies and channels. Implementing both pre-season and in-season planning modules has provided the Mulberry team with the ideal opportunity to target best practice and evolve business process. The Aptos implementation structure and project team facilitated a quick and smooth project, which is already adding value for Mulberry.

With the market calling for greater agility and Mulberry’s business constantly expanding in terms of geographies and channels, the company not only had new planning needs but also requirements of sourcing, costing as well as increasing overall merchandising responsiveness. Mulberry chose Aptos for the retail expertise of Aptos across all processes and the ability to cover the merchandise process from end to end as well as the track record of satisfied customers. The decision enabled Mulberry to implement its agile supply chain initiative and also realize key objectives including reduction in inventory and greater visibility.

Participating for the first time Hyosung will exhibit a collection of specialty recycled fibers – Mipan regen nylon and regen polyester – along with a selection of fabrics incorporating creora elastane fibers created to enhance performance and comfort at the Performance Days exhibition from May 08-09, 2019.

Echoing the Performance Days exhibition theme “The Beauty of Function”, Hyosung will display multifunctional fabrics besides giving a fashion “plus” to design. These fabrics are practical and environmentally friendly and applicable to outdoor active sportswear, urban adventures and today’s innovative, everyday work wear. They include the Mipan regen 100% pre-consumer recycled nylon which reduces energy consumption and is GRS certified; regen-a 100 per cent GRS certified post-consumer recycled which conserves petroleum resources; creora eco-soft for low heat settable, and soft hand elastane for saving energy and creora Black dope dyed black elastane fpr saving water.

Hyosung will also present its 2020 Megatrends “Connected, beyond”, which focuses on three key themes connected with responsible thing and embracing of fashion trends, and connected between body and environment.