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The Philippine Exporters Confederation (Philexport) says the Foreign Buyers Association of the Philippines (FOBAP) has stated orders cancelled previously due to the pandemic are slowly returning, giving hope of a rebound in garments and hard goods exports between 10 and 15 per cent this year. Local factories have received new orders worth $280 million.

Robert Young, FOBAP president and trustee of Philexport for textile, yarn and fabric sector informed from sewing floor to store shelf, the 2021 outlook for troubled mid to high fashion items are dim and hazy. Therefore, a price re-costing/re-levelling is a must. Only the basics and essentials, such as undergarments, fast fashion are now staying alive.

Young noted fresh confirmed export orders for the country’s soft goods comprising mostly garments worth $200 million will be on sewing floor up to the first quarter. Buyers included Wacoal, Adidas, Ralph Lauren, Ann Taylor, JCPenny, among others.

Almost 70 per cent of the orders are from the US, while the rest are from European Union, Canada, Australia, among others. Young is optimistic about export growth despite the pandemic, as the country’s factories hope to book orders which are not served by other Asian neighbours due to their full production.

Most of these orders are coming from the relocated (moved out) foreign factories in China. Also, the Philippines will have added volume for more complicated items jackets/sportswear which are not the production preference of other countries. To boost exports particularly to the EU, Young urged government to request the EU to grant the usage of imported fabric/textile in the apparel production, thus it will be eligible for zero duty to the trading bloc under the Generalized Scheme of Preference Plus (GSP+).

Monday, 11 January 2021 13:59

ITA changes dates of spring Showtime event

  

The International Textile Alliance has prepended the dates for spring 20201 Showtime market a week earlier to May 16-19. The show was originally scheduled for May 23-26. The ITA hopes to support permanent showrooms and temporary exhibitors by appointment during the Premarket dates of April 25-27 and during the last few days of the rescheduled High Point Market on June 8-10.

Carrie Dillon, Managing Director of ITA informed the decision to offer multiple dates to showcase products in the spring offered the best opportunity to service all stakeholders on a schedule that meets safety and sourcing requirements. The ITA said many manufacturers exhibiting at High Point Market are attending buyers during the Showtime event. The decision to move up the core event in May and provide additional dates in April and June was in response to a feedback from both ITA members and Showtime buyers and us aimed at giving buyers multiple opportunities to shop.

ITA’s leadership also recognized the timing issues on vaccine rollout and supply issues were additional reasons to provide multiple buying opportunities. The ITA will enforce the same social distancing and safety measures during the spring Showtime events as were successful in November 2020.

  

National Committee on Textiles & Clothing (NCTC) has appealed to the Prime Minister for removing Anti-Dumping Duty (ADD) on Viscose Staple Fibre (VSF) and address the VSF spun yarn availability and price issues to prevent job losses and stoppage of production across the VSF textile value chain. Under the common platform of NCTC trade bodies expressed the textile industry has been facing stagnation for many years mainly due to the lack of availability of basic raw materials of man-made fibre/filament yarn at internationally competitive prices.

NCTC observed “owing to the growing demand for Viscose Staple Fibre and its blended textiles and clothing market opportunities, the demand for Viscose Staple Fibre has increased steeply not only in India, but also across the globe. As the imported yarn price was cheaper due to high anti-dumping duty prevailing on the domestic viscose staple fibre, the weaving and knitting sectors have been importing large volume of VSF spun yarn. The import of VSF spun yarn has increased from 2 million kg during 2016-17 to 56 million kg during 2019-20”.

The VSF Value Chain Industry players concluded removing ADD on VSF will make the domestic VSF prices aligned with the Global VSF prices making the entire Indian VSF textile value chain globally competitive and boost production and exports of these products.

  

The Swiss subsidiary of German distribution company Lidl, supermarket line has announces the availability of Cotton made in Africa (CmiA) certified clothing on its shelves. This is a standard for cotton grown in sub-Saharan Africa, which respects the environment and improves the living conditions of farmers.

The share of Cotton made in Africa (CmiA) is gradually increasing in the global textile distribution chain. Andreas Zufelde, Chief Commercial and Marketing Officer of Lidl Switzerland, noted the company is offering customers a clear orientation and the opportunity to make an active contribution to improve the living conditions of African cotton farmers and protect the environment by purchasing a product. The clothing comes in the form of bed linen, pyjamas, T-shirts, leggings, briefs, socks and jumpers.

The arrival of these garments in Lidl shops in Switzerland follows the Lidl Group’s membership of CmiA initiative in February 2020. With this action, the German retail giant, which employs 315,000 people in 7,839 shops in 26 countries around the world, wants to reduce its ecological footprint.

Launched in 2005 by the German foundation Aid by Trade with the support of German public partners (GIZ), NGOs and companies, the CmiA project aims to integrate sustainable African cotton into the global textile industry.

  

As per Ministry and Commerce and Industry figures, India has seen a slight decline of 5.57 per cent in knitted fabric export values from January to October 2020. The country shipped $348.71 million worth of knitted fabrics during the said period as against $369.27 million in the corresponding period of 2019. Sri Lanka was the top export destination, with imports worth $144 million of knitted fabrics from, however there is a decline of 15.12 per cent on year on year basis. However, there was slight recovery as Sri Lanka’s import from India grew 3.41 per cent in October.

Meanwhile, US, witnessed a sharp increase of 73.18 per cent, valued at $90.24 million in knitted fabrics imports from India. Bangladesh was the third top destination but a steep contraction in its manufacturing activities resulted in a 30.65 per cent fall and India could just export worth $44.74 million in Jan-Oct. Likewise knitted fabric exports to Ethiopia also grew 15.84 per cent to $19.34 million.

These four markets accommodated approximately 86 per cent of total knitted fabric exports from India during first 10-month period of 2020.

  

COVID -19 has severely affected Bangladesh exports, mainly due to the huge drop in shipment of readymade garments. According to the Export Promotion Bureau data, readymade garment (RMG) exports decreased 16.94 per cent to $27.47 billion in 2020 from $33.07 billion the previous year. Latest figures reveal the country’s export earnings in 2020 fell to $33.60 billion from $39.33 billion in the previous year as the COVID-19 outbreak hit global economy.

The first lockdown caused unprecedented disruption between March and May, when billions of dollars worth of exports were cancelled or postponed, threatening the country's garment industry which is responsible for more than 80 per cent of the county’s exports. Export earnings began to increase again from June but the second wave started taking a toll from October, although exports from July to December were down only 0.36 per cent compared to the same period in 2019.

Bangladesh Garment Manufacturer and Exporters Association (BGMEA) has expressed fear that the downward trend will continue until April as the situation appears to be worsening with exports in December down nearly 10 per cent on the same month in the previous year.

BGMEA President Rubana Huq’s saus, woven garment export posted the worst performance since June 2020 as it declined 18.07 per cent. Given the effect of lockdowns in Europe and the US and its impact on retail and demand, the worst ever Christmas sales the world has seen, and most of all the effect of price decline, it was a dark year for the industry that the industry has seen.

Monday, 11 January 2021 13:19

China lifts import quota on Australian wool

  

China has lifted import quota on Australian wool, reported The Australian Broadcasting Corporation (ABC) citing Australia's Department of Foreign Affairs and Trade. China takes a third of Australia's exports however, rising diplomatic tensions between the two counties have seen China clamp down on imports of a number of Australian commodities such as barley, wine and timber.

Australia has been a leading voice calling for an independent inquiry into the origins of the novel coronavirus and, partly because of this, has seen its relations with China sour. The ABC reported the quota will increase to just over 38,000 tonnes, up from around 36,000 tonnes in 2020. It also reported that New Zealand's import quota to China remains unchanged. Australia controls 90 per cent of global fine-wool exports, where prices are largely driven by Chinese wool mills and Italian garment makers.

  

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has warned the industry could collapse unless the government agrees to extend a scheme to lend garment manufacturers money to pay wages due to the pandemic. They want the government to extend salary stimulus package by six months and put back the deadline for loan repayment by one year.

Rubana Huq, President, BGMEA wrote an open letter and said meeting the scheduled repayments to the government-owned Bangladesh Bank from the end of this month - as agreed - would force many garment manufacturers out of business. Without the moratorium of salary stimulus package being extended by six months or the tenure of the loan being extended by at least one year (currently 24 months) the industry will collapse.

According to Huq, the country’s apparel exporters have already borrowed a about 105 million Bangladeshi taka from the salary stimulus package to pay workers’ wages during April, May, June and July last year. Although factory owners agreed to repay the money in 18 instalments from the end of this month data released by the Export Promotion Bureau suggest the industry was still facing difficulties.

The country’s export earnings in 2020 fell 14.57 per cent to $33.60 billion from $39.33 billion in the previous year as the pandemic hit global economy. Export earnings began to increase again from June but the second wave of COVID-19 started taking a toll from October, with RMG exports in December down nearly 10 per cent compared to previous year.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) too called for minimum wage to be frozen for two years to help members survive the economic impact of COVID-19. However, unions said garment workers were already facing abject poverty and urged the government to reject the plea.

  

Andreas Ferrarese, Italian Ambassador to Pakistan announced Italy wanted to start a new era of economic and trade cooperation with Pakistan through transfer of technology and for up-gradation of Pakistan’s textile industry. Reports suggest, Green economy, transfer of technology for industrial sector including textiles and agro industry, construction sector, education and health are major areas of focus to extend bilateral cooperation. Through the green economy, Italy wants to cooperate with Pakistan for environment protection, circular economy, resource saving and management, ecosystem protection and recovery, water conservation and natural disaster prevention. The Italy-Pakistan Textile Technology Center (IPTTC) in Faisalabad at the National Textile University (NTU) shall upgrade the local textile sector. The training centre, which is the first of its kind for Italian textile machinery technology in Pakistan, was inaugurated recently. The Italian government project will support the development of the local textiles industry, by equipping it with Italian machinery.

Pakistan exports to Italy were $.731million during fiscal year 2019-20 with textile, leather, rice, ethanol, textiles articles, sets, worn clothing, cotton, apparel, crocheted, cereals, raw hides and skins, beverages and footwear. Currently, Italy is providing technical assistance to Pakistan’s textiles, leather and marble sectors.

  

Two Paris Fashion Weeks scheduled for January mainly, menswear and haute couture, will not feature any live runway shows. This has been done keeping in mind the rules laid down by the government as the second nationwide lockdown was announced in France; informed the Fédération de la Haute Couture et de la Mode.

The decision was taken after discussions between the Préfecture de Police in Paris and the Fédération, which informed the participating houses. It also follows the latest address from French Prime Minister Jean Castex, where he emphasized lockdown restrictions would remain in place in France. Restaurants, cinemas and ski resorts have been closed since December as the country struggles to slow down the Covid-19 pandemic.

However, Fédération’s executive president Pascal Morand insists the seasons will continue, albeit overwhelmingly online. He also informed many houses were still deciding on the exact format of their shows but stressed that houses could still present shows with models on the web, though behind closed doors. The federation has a state-of-the-art platform, where people can see every collection on the web. So, everything is in place for it to work.

Paris had already published significant schedules of shows, highlighting the desire of many houses to present collections. There are 71 houses listed on the menswear calendar, including such powerhouse marques as Louis Vuitton, Dior Homme and Hermès, along with influential designer brands as Yohji Yamamoto, Rick Owens, Dries Van Noten, Vetements, Paul Smith, Loewe and Thom Browne. The couture calendar features 32 houses, such as Chanel, Armani Privé and Jean Paul Gaultier.