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Australia's fashion brands close amidst rising competition
Australian fashion brands have started closing operations amid fierce competition from global retailers and e-commerce sites, as well as from consumers feeling the squeeze of the country's slowing economy. Menswear retailer Roger David closed the last of its 57 stores in December last year. Womenswear retailer David Lawrence was eventually acquired by department store operator Myer, while fund manager and major shareholder Will Vicars increased his stake in accessories brand Oroton Group.
Increasing number of e-tailers is also weighing on brands that rely heavily on brick-and-mortar sales, pressured further by the opening of Amazon's local operations. According to data from state-run Australia Post, the country’s e-commerce market totaled AU$21.3 billion in 2017, increasing from 18.7 per cent from a year earlier and surpassing overall retailers' 2.5 per cent on-year growth.
Brands, manufacturers looking at a closed loop chain
Some forward-thinking brands are aiming at creating a closed-loop textile supply chain. To bring about a closed-loop supply chain, industry players across the world are finding innovative ways to recycle and reuse, and some are even creating entirely new fibers and textiles from eco-friendly — and often unexpected — materials. To create a more sustainable process, some textile companies are developing alternative fibers from waste products, finding innovative ways to recycle fibers, and even fermenting agricultural products to make new materials. In Germany, Qmilk turns spoiled milk into fabric by drying out the milk and making it into a dough, from which a thin protein-based fiber is created. An Italian company is using citrus byproducts to create a spinnable fabric. In California and Japan, companies are working with sugar, water, salts, and yeast to make fermented spider silk thread. Pineapple leaves from plantations in the Philippines are used as faux leather.
Besides expanding the range of materials, textile suppliers are also looking at o reducing waste by recycling fibers. Evrnu, for example, uses cotton garment waste to make a fine fiber with a process using 98 percent less water and 90 percent less carbon emissions than cotton and polyester respectively. Similarly, Circular Systems, a starup, is taking factory floor scraps to turn them into yarn instead of burning them. This increases resource efficiency, by 20 per cent of textiles going into the factory end up in the cutting room floor. Fabric production has a big footprint. Overall, the world produces more than a 100 million tons of fiber a year. Millions of tons of new clothing, footwear, sheets, towels, and other products are being produced annually. The United States sends approximately 21 billion pounds of textile waste to landfills yearly.
Despite difficulties, China continues to lead world textile & apparel market
"Year 2018 was a landmark in the history of global apparel manufacturing as China’s dominance declined due to rising labor costs, slower economy and the government’s desire to decrease exports and increase production for domestic consumption. However, China will continue to remain top supplier to the US for some time even though growth would be limited to single digits instead of high-single digit or double digit annual percentages."
Year 2018 was a landmark in the history of global apparel manufacturing as China’s dominance declined due to rising labor costs, slower economy and the government’s desire to decrease exports and increase production for domestic consumption. However, China will continue to remain top supplier to the US for some time even though growth would be limited to single digits instead of high-single digit or double digit annual percentages.
Apparel import sees marginal increase
According to the US Commerce Department’s Office of Textiles & Apparel (OTEXA), apparel imports by the US from China increased a meager 1.34 per cent in 2018 to reach $27.37 billion. Imports from Vietnam increased 5.78 per cent year-on-year to $12.22 billion, shipments from Bangladesh increased 6.65 per cent to $5.5 billion, imports from India rose by 3.42 per cent to $3.81 billion while Cambodia’s shipments increased 12.19 per cent for the year to $2.42 billion. US apparel imports from the world increased by 3.38 per cent in 2018 to $82.88 billion. Exports increased 6.38 per cent to $6.08 million, led by knitwear and bottoms.
Other countries gain more than China
A recent study by the United Nations Conference on Trade and Development (UNCTAD) shows, trade war benefited other countries rather than protecting the domestic industries in the US or China. The study further estimated, out of $250 billion Chinese exports, only 12 per cent will be retained by Chinese firms, and 6 per cent by US firms. Similarly, of the approximately $110 billion in US exports subject to China’s retaliatory tariffs, roughly 85 per cent will be taken by companies in other countries, while US firms will retain less than 10 per cent and Chinese companies will keep only 5 per cent.
While exports of countries like Vietnam, Cambodia, India and Bangladesh to the US will continue to grow, they are likely to be
plagued by issues like labor and corruption as in the case of Brookfield Associates or protectionist measures or capacity problems like India or Vietnam.
Duty-free manufacturing by the Western Hemisphere
Some sourcing managers are also worried about the suspension of duty-free status to Cambodia by the European Union over its labor and human rights issues. Meanwhile Central America has witnessed steady growth in recent times with Honduras attracting substantial demand. According to Hughes, the Western Hemisphere provides immense opportunity for “duty free, closer to home” manufacturing, including Mexico and the Central American Free Trade Agreement (CAFTA) countries and Colombia.
Imports increase 5.13 per cent
Imports from all CAFTA countries increased 5.13 per cent for the year to $8.34 billion. US yarn exports to the CAFTA countries increased 5.06 per cent to $1.68 billion, while fabric exports increased by 6.05 percent to $962.7 million.
Imports from Mexico declined 5.76 per cent in 2018 to $3.36 billion. This decline could be attributed to the uncertainty of its duty-free status as the US, Mexico and Canada were renegotiated the North American Free Trade Agreement, which resulted in the trilateral US-Mexico-Canada-agreement signed in November and pending legislative approval. African countries like Ethiopia, Lesotho, Mauritius and Ghana also continue to grow on account of increased investment in African factories and infrastructure from US and Chinese companies. Thus, though certain countries witnessed prominent increases in apparel business, China continues to dominate with its quality products and timely delivery.
Intertextile Sanghai Home Textiles-Spring edition attracts 30 per cent more exhibitors
"Around 300 domestic and international suppliers will present a wide range of home textiles that include bedding and toweling, curtains, table and kitchen linen, etc. Prominent brands like Bambi Enterprises & Jaspa Herington from Australia, Mistral Home NV from Belgium, Shanghai Shuixing Home Textile, Sunvim Group and Yantai Pacific Home Fashion will display their products."
To be held from March 12 to 14, 2019, the Spring edition of Intertextile Shanghai Home Textiles will not only showcase an all-inclusive range of home textiles finished products but also organise inspiring fringe events to spur business interaction among trade partners. The event is expected to register 30 per cent increase in exhibitors this year.
Comprehensive display of home textiles
Around 300 domestic and international suppliers will present a wide range of home textiles that include bedding and toweling, curtains, table and kitchen linen, etc. Prominent brands like Bambi Enterprises & Jaspa Herington from Australia, Mistral Home NV from Belgium, Shanghai Shuixing Home Textile, Sunvim Group and Yantai Pacific Home Fashion will display their products. The event will also host several regional pavilions for exhibitors like Cixi, Gaoyang, Haimen, Huzhou, Pujiang, Tongxiang Zhouquan, Tongzhou and Zhenze, who will offer bedding products, towels, quilts, cotton slippers, silk and silk blended products.
Seminar on hot industry topics
Leading online shopping platform - T-Mall Home Textile Zone has invited domestic brands including Luolai, Lovo and Taihuxuezy to present their products at the event. The event will also host a fringe program comprising a series of seminars on topics ranging from market trends, product applications, latest technology, material developments, etc. Display areas for showcasing the intangible cultural heritage of home textiles, handicrafts and towels will also be earmarked
Other concurrent events
Intertextile Shanghai Home Textiles – Spring edition 2019 will be held concurrently with four other textile events: Intertextile Shanghai Apparel Fabrics – Spring Edition, Yarn Expo Spring, CHIC and PH Value. Intertextile Shanghai Home Textiles – Spring Edition is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).
The 2018 Spring Edition of the event connected 232 exhibitors with over 20,000 buyers. This year’s show, with around 30 per cent increase in exhibitors, will leverage the peak sourcing period for home textiles finished products in China.
Global textile industry learning to survive difficult times
"Poised delicately between a slow recovery of a second slide, the global economy demands a collaboration between brands and solutions for the entire supply chain. It is important for brands now to deliberate on the current situation and formulate future strategies. Continuous global crisis, high oil prices and turmoil & political instability is creating huge concern for textile business with lack of support from two of the biggest world markets, the US and Europe adding to its woes."
Poised delicately between a slow recovery of a second slide, the global economy demands a collaboration between brands and solutions for the entire supply chain. It is important for brands now to deliberate on the current situation and formulate future strategies. Continuous global crisis, high oil prices and turmoil & political instability is creating huge concern for textile business with lack of support from two of the biggest world markets, the US and Europe adding to its woes.
China continues to be the world leader in most fields with its textile and clothing exports rising fourfold since 2000.But its capacity development is likely to peak soon with a decline in government investment and increasing competition from other mills.
Challenges facing textile industry
Some of the major challenges that the textile industry faces today include a strong dollar and depression of global currencies, high oil prices, a stagnant US economy, national protectionist policies, greater importance of emerging economies, hunting new consumer markets, investment on product mix and research, hunting new low cost production facility. Another priority challenge includes bringing back the globalisation process and creating one big market.
Since the last few months, Chinese middle class has been critical of the government’s economic and sociopolitical policies. This
criticism, especially evident in online public discourse, focuses on the way the government has handled its relations with the US. This discontent among the middle-class threatens President Xi Jinping’s broader position and economic vision. It might thwart latent demand in major manufacturing centers, specifically in Southeast Asia. Though India will continue to be a major textile production center catering to huge domestic market, imports from China, Bangladesh are likely to cause a disturbance in the supply chain.
Strategies to survive tough market conditions
The Middle East is a big importer of textile products. But the effects of global economic slowdown have also been felt on the textile business of the Middle East. To survive competition, the industry needs to focus on integrating research and innovations in the textile business with quality control made an everyday assignment. It should also leverage new opportunities in emerging segments such as defence textile, camouflage fabrics, industry textiles and coated fabrics. Textiles in medical sector, construction industry also offer great opportunities for the sector.
It is important for brands to look at their customers more as partners. They cannot just focus on prices but have to also ensure reliability, expertise, quality and service are important for a successful business relationship. Developing the trend of global trade requires a tremendous study of trend, forecasting, political situation et al. It is getting complicated everyday as recession in various countries is causing fluctuations. However, in spite of all these business has to go on.
ISPO Munich 2019 focuses on women’s sportswear
"ISPO Munich, the world’s largest trade fair for sporting goods, focused on sportswear for women athletes this year. The show, held on March 2, 2019 at the Messe Munchen Exhibition Centre in Munich welcomed around 80,000 industry visitors from 120 countries. Around 2,943 exhibitors showcased their products and innovations, registering an increase of 5 per cent over the previous year. The ISPO Women’s Lounge organised talks with female executives, athletes and famous personalities including Corinna Umbach, Brand Developer and founder of CU Brand Spirit."
SPO Munich, the world’s largest trade fair for sporting goods, focused on sportswear for women athletes this year. The show, held on March 2, 2019 at the Messe Munchen Exhibition Centre in Munich welcomed around 80,000 industry visitors from 120 countries. Around 2,943 exhibitors showcased their products and innovations, registering an increase of 5 per cent over the previous year.
Interacting with females executives and athletes
The ISPO Women’s Lounge organised talks with female executives, athletes and famous personalities including Corinna Umbach, Brand Developer and founder of CU Brand Spirit; Aline Bock and Anne-Flore Marxer, professional snowboarders and film makers; Lorraine Huber, Freeride World champion; Maria Elena Rizzieri, Blizzard Tecnica Global Leader of the Women to Women project, etc.
The program focused on products and sales marketing for the target group women in the sports industry, implementation of women campaigns, body positivity, empowerment and entrepreneurship, women in management positions and female influencers as figureheads of sport brands. ISPO Textrends forum featured over 458 innovative products spanning 10 different categories for the Autumn/Winter 2020-2021 season.
Innovations on display
The major innovations on display included, ‘Crafted in Japan’ display by Cordura presented backpacks and travel bags made using Cordura durable fabrics, featuring brands like F/CE, Milesto, and MSPC Master-Piece. The company also presented its Cordura Nyco Knits, engineered with military-grade Invista T420 nylon 6,6 staple fibre blended with cotton.
Karl Mayer showcased functional, warp knitted meshes for leisurée, fashion, sports and athleisure, as well as fabrics with textile electrodes, engineered spacer textiles with
3D patterns, air-permeable jacquard designs and sporty lace fabrics.
Shima Seiki demonstrated its state-of-the-art SVR123SP computerised knitting machine for producing hybrid inlay fabrics and knit samples for shoe uppers and apparel applications.
Lonati and Santoni also presented the Goshoes single cylinder socks knitting machine and the X Machineoffering multiple possibilities in the knitting of unique Intarsia patterned goods and shoe uppers.
Eurojersey launched its new 2019 ad campaign ‘Free the Form’. It also presented its new Absolute Move collection of sensitive fabrics for sports bras powered by Lycra Sport technology. Isko presented its latest innovation Isko Vital, woven compression technology platform that showcased 18 different bottom silhouettes clim8 demonstrated its CES and ISPO 2019 award winning technology for base layer applications that allows the wearer to regulate temperature.
KnitWarm, based in Hong Kong, presented a patented self-heating textile that boasts softness, flexibility and breathability. The company also showcased its 4-in-1 jacket that consists of two jacket layers that zip together. Kymira, showcased its latest KYnergy technology designed to increase the wearer’s circulation, tissue oxygenation and cellular metabolism.
Noble Biomaterials, presented smart innovations, with its X-Static, XT2 and Circuitex technologies. X-Static harnesses the power of silver to create a technology that inhibits the growth of bacteria on fabric.
New exhibitors show their innovations
There wear many first time exhibitors who showcased their latest innovations and collections. For example, Norm from Germany displayed magnetic connectors on a conductor track system that allow easy installation of e-modules. In the apparel category, Careydesign, from China, presented functional urban garment made of a new Nano RGO-blended fabric. Maaree, from the UK, developed a high-impact sports bra with Overband technology.
German manufacuter Patronace showcased lightweight fashion wear with an abrasion-resistant skin protection system. UK’s Skapya’s convertible jacket featured a pocket system that fits the jacket itself while maintaining access to small items. Slovenian firm StandOUT SUP Wear featured a lightweight, breathable and flexible neoprene wear for standup paddlers. German brand Ryzon, presented a triathlon suit made of hydrophobic Teflon fabric with friction-free seams. Saola, from France, showcased its sustainably produced light outdoor shoes.
Changing demand, technology driven solutions revolutionise India’s fashion industry
"The Indian fashion industry is shifting from western brands to Indian designer and indigenous brands and clothing. This transformation is happening largely due to the income shift and the penetration of big brands into the Indian market. Gen Y or millennials are purchasing new, trendy, and fusion clothing rather than normal mundane clothes that look more like a uniform and are found in almost everybody’s wardrobes. Online fashion retail accounts for 18 per cent of the entire fashion sales in India. Flipkart alone crossed $1 billion sales in 2018, and its fashion-dedicated groups, Jabong and Myntra together clocked in $1.2 billion in sales last year. As per CNBC, Amazon will soon become a leading apparel retailer leaving behind competitors like Walmart."
The Indian fashion industry is shifting from western brands to Indian designer and indigenous brands and clothing. This transformation is happening largely due to the income shift and the penetration of big brands into the Indian market. Gen Y or millennials are purchasing new, trendy, and fusion clothing rather than normal mundane clothes that look more like a uniform and are found in almost everybody’s wardrobes.
Online fashion a big draw
Online fashion retail accounts for 18 per cent of the entire fashion sales in India. Flipkart alone crossed $1 billion sales in 2018, and its fashion-dedicated groups, Jabong and Myntra together clocked in $1.2 billion in sales last year. As per CNBC, Amazon will soon become a leading apparel retailer leaving behind competitors like Walmart. The e-tailer is expected to sell fashion products worth $52 billion till the year 2020.
Growing popularity of content-based marketing
With the emergence of new fashion brands, the popularity of content-based marketing is growing. Online marketing and delivering fashion industry related news is attracting more customers. Designers are using influencers to reach out to prospective consumers and build a reliable relationship with them. Moreover, many fashion business brands are starting their own blogs to deliver fashion advice, tips, and tricks to users. This is gaining immense popularity among people as everyone reads updates on industry behavior and fashion trends and tips.
Adapting to global change
The Indian fashion industry is accepting not only the changing demands and global styles but also differently designed clothes. Today, people prefer comfortable rather than
stylish but awkward clothes. This shift is changing conventional designing patterns with brands using comfortable fabrics, giving it a fashionable, trendy look. E-commerce fashion giants such as Myntra are offering try and buy solutions to users. Using these solutions, customers can try clothes at home and return immediately if they don’t like the fit.
Online stores are opting for custom-fit clothing. Customers can give measurements and get clothes stitched through e-commerce websites in a few days. This trend is more dominant in customised gift products such as T-shirts, wherein users can get funky designs printed on the fabric to give it a personalised and unique look.
E-commerce on the rise
Retail giants are offering clothing advice through their e-commerce apps. Once the user purchases a product or adds it to the bag, the app suggests possible options to pair it. Therefore, if a customer wants to purchase denim, the app will suggest options in T-shirts, shirts, bag, shoes, and accessories to team the denim with to get a complete curated look.
Physical stores retain popularity
Many fashion brands are setting up physical stores where their users can select the product on the store or buy it online as well. If the product bought online doesn’t fit or has issues, it can be easily exchanged in a day at the store. This adds to the convenience of online shopping. Collaborating with physical stores gives retailers the feasibility of delivering the product as early as possible. The fashion industry has great potential with its emerging demands and technology-driven solutions. All that a brand requires is the right knowledge and guidance to help set up its business in the industry.
EPCH buyer-seller meet in Santiago facilitates Indo-Chile interaction
"The Export Promotion Council for Handicrafts (EPCH) along with the Embassy of India in Santiago, Chile and Santiago Chambers of Commerce organised a buyer-seller meet on March 11 and 12 at Santiago in Chile. The event was inaugurated by Awadh Kumar, Commercial Attache, Embassy of India, Chile and Rodrigo Mujica R Diretor International Affairs, Santiago Chamber of Commerce. Magdalena Diaz Le Fort, Executive Director, Chile India Chamber of Commerce also graced the occasion."
The Export Promotion Council for Handicrafts (EPCH) along with the Embassy of India in Santiago, Chile and Santiago Chambers of Commerce organised a buyer-seller meet on March 11 and 12 at Santiago in Chile. The event was inaugurated by Awadh Kumar, Commercial Attache, Embassy of India, Chile and Rodrigo Mujica R Diretor International Affairs, Santiago Chamber of Commerce. Magdalena Diaz Le Fort, Executive Director, Chile India Chamber of Commerce also graced the occasion.
In its fifth year, the event featured 32 Indian exporters who displayed a wide range of handicrafts, decorative, houseware home furnishing, garments and made ups, shawls, scarves, fashion jewelry, jute bags, bags, fashion garments, and incense, aromatics and Christmas décor from Delhi, Rajasthan, Uttar Pradesh, Karnataka, Punjab, Maharashtra, Haryana, Kolkata and Madhya Pradesh. Rakesh Kumar, Director General, EPCH said, the main objective of the meet was to enable Indian companies to interact with their Chilean counterparts interested in sourcing handicrafts, gifts, lifestyle products
Indo-Chilean brand interaction
The first day saw meetings of some of the biggest Chilean brands like, Lider DIB Carpets & Home Republic, Cencosud Retails S.A., Lounge, Paris with their Indian
counterparts. Meetings with other major companies like Home Republic, Commercial Windsor Ltda, Imprtadora Triveni SA, Terapias Masajes Sacamostress and La Casa Magica were held on the second day.
As per Kumar Indian handicrafts exports were worth $3,573.49 million in 2017-2018. The average growth in handicrafts exports was between 15-16 per cent per annum. Exports to Chile increased to $12.05 million during 2017-18. The buyer-seller meet will further enhance Indo-Chilean Trade relations.
Gartex, Messe Frankfurt India collaborate for unified platform
"Mex Exhibitions and Messe Frankfurt India have entered into a strategic alliance to create a unified industry platform called ‘Gartex Texprocess India.’ The event will be a part of Messe Frankfurt’s Texpertise Network and leverage on the group’s strong global network and expertise in the sector. With the merger of these two strong textile trade fair brands, the organisers, aspire to collaborate for India’s textile industry development besides facilitating global sourcing and networking in the textile value chains."
Mex Exhibitions and Messe Frankfurt India have entered into a strategic alliance to create a unified industry platform called ‘Gartex Texprocess India.’ The event will be a part of Messe Frankfurt’s Texpertise Network and leverage on the group’s strong global network and expertise in the sector. With the merger of these two strong textile trade fair brands, the organisers, aspire to collaborate for India’s textile industry development besides facilitating global sourcing and networking in the textile value chains.
Broadening the show’s horizons
The partnership will benefit from synergies created due to higher operational efficiencies, improved logistical know-how, and overall commercial benefits. The experience and scale of operations of Messe Frankfurt will enable Gartex to improve its position in the garment and textile industry. It will boost the show by making it more expansive, broadening its horizons.
Gaurav Juneja, Director of Mex Exhibitions, says, “Gartex India has created new standards for the industry in terms of enhancing awareness, excellent networking, knowledge dissemination and industry bonding. Now, it is time to take it to the next level and with this strategic alliance with Texprocess of Messe Frankfurt Trade Fairs India, Gartex India will realise its true potential and soar to even greater heights.”
Focus on textile and garment manufacturing
The show will maintain a strong focus on garment and textile manufacturing solutions, embroidery machines, digital textile printing sector, sewing machines, laundry
solutions, innerwear manufacturing, denim show, fabrics, accessories, etc. The organisers aim to cover the complete textile process chain in the coming editions. This includes technologies involved in design, cutting, sewing, knitting, embroidery, finishing, refining, IT and logistics which will supplement its textile technologies portfolio through the association with Texprocess.
Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holding says, “Together, we are positioned to grow and provide industry stakeholders with a strong brand of enhanced offerings through a single-source business platform - ‘Gartex Texprocess India.’ The alliance has set pace for our brand expansion strategy as India is one the most promising textile markets.”
The unified Gartex Texprocess India edition will be held from August 10 to 12, 2019 in New Delhi.
Peta objects to rear label patch on Levi’s jeans
People for the Ethical Treatment for Animals says the rear label on Levi Strauss jeans that proclaims the brand name should be changed since it is made of cow leather. The animal rights group is calling on the brand to ditch animal-derived leather for a more ethical alternative, specifically vegan leather. Animal leather generates three times the environmental impact of its vegan counterpart, which is typically made from synthetic materials such as polyvinyl chloride or polyurethane.
The Higg Materials Sustainability Index, a cradle-to-gate material scoring tool from the Sustainable Apparel Coalition, rates cow leather as the number one material with the greatest upstream burden. Leather is considered to be a high impact material due to the swaths of land required for cattle grazing and growing feed, the levels of methane the animals release and the amounts of energy tanneries consume.
Animal leather often comes from cows who endure confinement, food and water deprivation, extreme crowding and disease. Branding, tail-docking, dehorning and castration are all commonly performed on them without painkillers, and they’re transported hundreds of miles to feed lots and slaughterhouses, where many are skinned while still conscious.
Denim giant Levi’s has listed empathy as one of its core values.












