Yarn, fabric, and garment products from China are expected to flood Indonesia because of the trade war. It will lead to an oversupply of domestic textiles, making the price drop and hit Indonesian textile companies.

The US has applied a 25 per cent tariff on textile products from China. Meanwhile, products from Indonesia are subject to a ten per cent to 15 per cent tariff. With these tariff differences, China sees an opportunity to shift its textile products to southeast Asia, including Indonesia. This market is an easy target for China since Indonesia does not apply trade barriers, unlike Brazil or Turkey. Indonesia remains an open market, and the most affected will be companies that rely on the domestic market.

Performance of Indonesian textile industry sector as continued to decline in the last 10 years. On an average, exports rose only three per cent while imports rose 12 per cent. The trade war is an opportunity for Indonesian textiles to takeover the space left vacant by Chin. But competitiveness of its products is still weak. Costs of energy, logistics, and labor are the inhibiting components. However, the textile companies’ credit profile is expected to be stable in the next several months.

LIVA will participate in the Yarn, Fabric and Accessories 2019 Trade Show, to be held in Ludhiana from August 21-23, 2019. The brand will showcase products across flat knit applications, stoles, kurtis and leggings categories. Partner brands like Prisma, Monica Collection, Aswira Premium Fabrics, Vandan Silk Mills, Swami Textiles will also showcase their collection at the trade fair.

New age fabric, Liva is soft, fluid and falls and drapes well. The new-age, naturally sourced fibre made into fabric in pure or blended form, transforms not just the garment but also the person wearing it. It is comfortable, soft, natural, and eco-friendly.

Tge trade fair will be held from August 28 to 31, 2019 in Shanghai. This is Asia’s leading trade fair for the interior textiles industry and celebrates 25 years. Around 1,150 exhibitors from 27 countries and regions will display latest products and technologies for the home and contract textiles sectors. The fair’s fringe program has been revamped to ensure it provides the industry with the latest trends and insights. These include design inspiration, residential and commercial textile trends, online to offline commerce, digital printing solutions and green designs and global licensing trends and opportunities. Renowned designers will discuss the latest trends and technologies in textiles for commercial environments. More than 80 exhibitors will offer products suitable for the contract sector.

Country and region pavilions from Belgium, Pakistan, Taiwan and Turkey will feature in 2019. More sourcing options are available this year for finished products and a range of home décor items. Bed, bath, kitchen and table suppliers from China will be joined by exhibitors from Australia, Austria, Denmark, Hungary, Japan and elsewhere in these product categories. Design studios from China, Finland, France, India, Japan, Korea, the Netherlands, Portugal, Switzerland and the UK will showcase their avant-garde collections.

The 2018 edition welcomed 39,730 trade buyers from 104 countries and regions.

In its endeavor to spread awareness among migrants to ensure safe migration for work, Dominic Asquith, British High Commissioner to India, launched the ‘Promoting Responsible Migration from Source to Destination in Supply Chain’ project. Partnered with Partnering Hope into Action (PHIA) Foundation, a civil society organisation, the project is jointly funded by the UK government and Marks & Spencer.

Notably, India’s $17 billion apparel export industry and $50 billion worth apparel retail market provides employment to over 20 million people and is majorly dependent on workers who migrate from states of Bihar, Odisha, Uttar Pradesh, etc. The project will strengthen communities besides tackling the problems they face through policy advocacy and awareness.

It will also map the stakeholders involved in recruitment and measuring the scale of the issue in the ready-made garment sector. Stakeholders will implement a research study and awareness building programs for factory workers and communities in Jharkhand and Gurgaon.

The Northern India Textile Mills Association (NITMA) has highlighted the worst financial crisis and slowdown faced by the textile industry through an advertisement in the Indian Express Newspaper. According to the advertisement, the crisis is forcing spinning companies to cut down their production and shut down their mills. This is likely to result in job losses and add to the already high unemployment rate in the country.

A recent article by the digital news website thelogicalindian.com also highlighted a February report by the International Cotton Advisory Committee (ICAC) that indicated that India’s cotton production is set to drop by 7 per cent due to ‘insufficient rainfall’. To counter this, textile spinning mills in North India are planning to cut down on their production and shut down their mills once a week.

Some textile units are also planning to lower their capacity by 50 per cent in the wake of the unsafe market situation and to have less borrowing/outstanding and stocks.

Acrylic staple fiber prices in July were down in China, India, and Pakistan. Downstream demand was dull as yarn producers themselves witnessed lower sales, which in turn resulted into lower procurement of acrylic fiber during the month. Supply in the market was largely stable with many plants either idle or with reduced production. In China, offers for cotton-type staple fell 19 cents a kg and medium-length staple was down 19 cents a kg as compared to June.

Cotton yarn prices were mostly down in China, India, and Pakistan in July. In China, cotton yarn prices were stable-to-down despite firmer cotton fiber prices during the month. Demand for yarn from the downstream sector remained weak. Spun yarn prices may stabilize in China with a recovery in demand in August, and in tandem with the seasonal rebound of textile production in the country. In India, cotton yarn prices were down amid sluggish demand that month. In Pakistan, cotton yarn prices were talked down amid muted trading during the month. In China, 32s carded cotton yarn was down 11 cents a kg while 21s combed was down ten cents as compared to June. In India, 30s combed for knitting fell 15 cents a kg on the month.

In the April-June period of this fiscal, India’s exports of cotton yarn fell by 34.6 per cent as compared to the same period last year. The steep fall has been caused by a variety of reasons, including a decline in exports to leading export markets like China, Bangladesh, South Korea and the duty-free access given for import of cotton yarn by China to countries like Pakistan and Vietnam. The slowdown has resulted in the closure of many mills – approximately one-third of the whole spinning capacity across India.

Considering the large scale investment in the spinning sector and the sluggish demand in the domestic markets, exports are the only avenue to ensure uninterrupted production and capacity utilization. Even though cotton yarn is a value added product, it has been excluded from export benefits like interest subvention, the Merchandise Export of India Scheme and the Rebate of State and Central Taxes and Levies schemes. There is no rebate on embedded taxes like agricultural cess, mandi tax, power and fuel surcharge, which are incurred in the production process.

Cotton yarn sector is one of the pillars of Indian textile industry and is also highly modernised and technology driven and also provides sustainable income to farmers.

Zimbabwe is plugging loopholes in the rebate scheme for clothing manufacturers. The country has lost huge amounts in tax revenue since some players in the garment making sector abuse the rebate facility. They use transfer pricing, under-invoicing and incorrect declarations to evade local taxes while taking advantage of preferential trade agreements to realise huge profits in regional markets.

Although the rebate facility has assisted manufacturers to reduce production costs, making their apparel competitive on the export market, some beneficiaries of the scheme undermine tax revenue and distort both national and regional value chains and linkages through various malpractices. These include disposal of fabrics intended for value addition on the domestic market and transfer pricing.

Materials eligible for rebate are: manmade yarn and include denim, cotton sewing thread, woven fabrics of polyester staple fibers, chenille fabrics, tulles and other net fabrics. The rebate was devised in order to resuscitate the clothing value chain. It was initially granted on select imported fabrics for use in the manufacture of clothing for a period of one year. The facility, which is due to expire this year after benefiting more than 50 companies, has been renewed over the years after taking into account developments in the textile and clothing industry.

Downloads of thredUP’s app from January to July 2019 were up 71 per cent from the same period in 2018. This is an online resale store based in the US. The company re-sells clothes at up to 90 per cent off retail prices and takes a cut of each sale. The company currently has five distribution centers and plans to open a sixth by the end of this year or beginning of next year. By year’s end, thredUP will have processed 100 million used items. The ten year old thredUP is in active conversations with dozens of retailers about how they can help them tap into a $24 billion apparel resale market. The company has received funding which it will use to expand its platform to offer resale clothing services to retailers.

Consumers download the thredUP app or go onto the resale site and then ship their used apparel, handbags, shoes and jewelry items from more than 35,000 brands. Company employees receive the items, process them, make sure they’re in good condition, price them algorithmically, photograph them and ship them out to shoppers when sold.

It’s expected that online resale will grow as much as ten to 15 times faster than fast fashion stores, department stores or traditional off-price chains.

Maroc will be held in Morocco on October 17 and 18, 2019. The fair offers a comprehensive overview of the Moroccan textile and garment industry from fast fashion to high-quality production of trend peaks up to offers of sustainably produced collections. Around 1,500 visitors from all around the world are expected. The fair will be segmented into the fields of fast fashion, denim, jersey, knit, lingerie, sportswear, leisure wear, technical garments, leather and shoes. The fair program will be supplemented by special B2B meetings and conferences, which deal with current production topics.

The Moroccan garment industry generates 15 per cent of the industrial GPD of the country and 25 per cent of Moroccan exports. The over 1,600 companies of the industry employ over 1,90,000 workers and have a production capacity of over one billion items. Morocco offers fast delivery by land with short-term delivery dates thanks to its proximity to Europe. The shortening of the delivery routes is also a way to reduce the ecological footprint of the companies, an important aspect in the course of sustainable production, a decisive factor for future competitiveness. Morocco is in a phase of continuous growth due to foreign investments and an expansion of its infrastructure. For this year an economic growth of three per cent is expected.