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Thursday, 30 May 2019 13:02

Everlane partners with Bluesign

Everlane is partnering Bluesign in an effort to move toward more sustainable textile manufacturing practices. This partnership will ensure working with the cleanest materials possible and advance toward reducing their environmental impact. Their aim is to lead the change toward an honest and sustainable supply chain.

Bluesign is a textile production-focused auditing body. Bluesign’s standards were developed in the interest of providing safe consumer products, reducing the impact of manufacturing on people and the environment, and promoting the responsible use of resources. Everlane, launched in 2011, has a revolutionary message about material and supply chain traceability. The organization works with brands and manufacturers to improve operations throughout their supply chains. The brand has mindful of its impact on the environment through the materials and processes it uses.

As a subscriber to the Bluesign system, Everlane’s textile production partners are subject to the group’s independent verification program. Everlane’s Clean Silk collection is being produced by a Bluesign-certified silk manufacturer. All silk produced by Everlane will be dyed and washed with 100 per cent recycled water and 100 per cent renewable energy by 2022. In October 2018, Everlane announced that it would remove all virgin plastic from its supply chain by 2021.

The US government’s latest proposal to levy tariffs on Chinese imports has forced Columbia Sportswear to concentrate on managing its supply chain rather than its sales operations. The levies have also led the company to hold back its distribution projects. The company plans to pass on some of this financial pain to its customers by increasing the prices of its apparels.

The company had been spared in the initial rounds of tariffs. However, earlier this month, the US proposed a 25 per cent tariff on additional $300 billion worth of Chinese imports that included apparels and footwear. The company has also moved some of its distribution projects to other countries in order to take advantage of more stable business regions for the near term.

The Confederation of Indian Textile Industry (CITI), the apex industry chamber covering the entire spectrum of the textile and clothing industry for both domestic and export markets, will submit the ‘White Paper’ to the new Union Textile Minister to provide policy support to the textile and industry.

CITI will request the government to provide the much needed policy support to the industry. This will not only achieve the revolutionary initiative of ‘Make in India’ but also make Indian textile and clothing sector a $350 billion industry by 2024-25.

The last five-years have been a period of consolidation, policy disruptions and shaping up of a new India where many structural reforms took place in the Indian economy and specifically in the textile and clothing industry. The industry has gone through a phase of consolidation where exports stagnated, aggressive state policies directed investments and domestic demand was disturbed due to demonetisation, banking restructuring and implementation of Goods and Services Tax (GST).

Africa has become the largest source of cotton for Bangladesh. Last year, Bangladesh imported 37.06 per cent of its requirement of the white fiber from East and West African countries. At the same time, 11.35 per cent of the cotton came from the Commonwealth of Independent States, 11.14 per cent from the US, 4.65 per cent from Australia and 9.65 per cent from the rest of the world.

In Africa, there are three cotton zones: East Africa, West Africa, and Central Africa. These are well known for high-quality and long staple length. Bangladesh’s cotton imports will continue to be commensurate with the expansion in spinning. Last year, Bangladesh imported 8.28 million bales of cotton. In dollar terms, the imports are worth three billion dollars. The country produced 1.65 lakh bales of cotton last fiscal year, which is less than three per cent of the country’s annual demand for 10 million bales. The hope is to produce 2.5 lakh bales of cotton by 2021, which will meet nearly seven per cent of the local consumption. Cotton has helped farmers in Bangladesh cultivate land which used to previously stay fallow due to lack of irrigation facilities. Cotton imports are proving to be a major drain on foreign exchange reserves in Bangladesh.

Thursday, 30 May 2019 12:56

Brands renege on promises

Global fashion brands give the impression they provide workers with living wages but don’t.

Living wage commitments don’t always necessarily result in positive action. Even clothing companies which have declared themselves committed to providing workers in the supply chain with living wages fall short of their promises. As such, consumers purchase products they believe are made by workers earning a living wage, when in reality, low wages continue to be the status quo across the global garment industry.

Most corporations outsource their living wage commitments to multi-stakeholder initiatives and external initiatives. By outsourcing their living wage commitments to external initiatives, this means that some companies have conflicting definitions and approaches to living wages, causing their commitments to lack clarity.

Since fashion corporations within the garment industry do not take action, workers will continue to receive low wages that do not meet the basic needs of food, housing, medical care, clothing and transportation for themselves and their families. Key obstacles standing in the way of garment companies providing workers in their supply chains with living wages include inconsistency and confusion among firms over what constitutes a living wage; lack of transparency among companies with regards to the wages they pay their workers; and companies’ lack of a roadmap signaling how they will go about providing living wages in future.

Bangladesh’s apparel manufacturers and exporters are in line for a flat cash incentive, regardless of export destination or criteria. A five per cent cash incentive looks likely. Currently, the four per cent cash incentive on exports is applicable for manufacturers or exporters exporting to non-traditional destinations and fulfilling a number of criteria. Also the subsidy to fuel the business sectors may be raised by over 22 per cent.

The industry has requested for more measures. These include an exchange rate according to market mechanism; doubling the default loan rescheduling deadline; VAT exemption for apparel manufacturers, including for the use of utility services like power, gas, water and others; keeping the source tax at 0.25 per cent; lowering the corporate tax rate to ten per cent for apparel manufacturers like what it was before; duty-free imports of safety equipment like fire rated paint, solar energy operated lamps, close-circuit camera systems, and archway gates; exemption from stamp duty; special interest rates for bank loans for apparel manufacturers; creating a special emergency fund for medium and small manufacturers who are on the verge of closure; and a fund for technological advancement in the apparel sector.

Apparel exports contribute around 83 per cent to Bangladesh’s total export basket.

The CO Leaders Award is given to those pioneers of the textile industry who walk that extra mile to take the fashion industry beyond the boundaries of creativity. What makes the achievement so noteworthy for Pratibha Syntex is that the company has attained this success among more than 700 applicants from across the globe and has succeeded in outrunning some of the best fashion stalwarts of the industry. CO, which is globally the most dynamic sourcing and information platform for the fashion industry, awards companies only after evaluating the functions of companies that endeavor to connect the market to world class, new and trending fashion products and services that are environment friendly and are a beneficial deal for customers.

Since 1997, Indore-based Pratibha Syntex is one of the leading apparel manufacturers known for sustainable practices. The company produces over 60 million pieces of apparel annually including garments, innerwear, thermals and sleep wear. The firm is also engaged in social initiatives to generate employment for rural women.

Since 2016, Pratibha Syntex has been committed to working on a baseline so as to minimise 50 per cent consumption of fresh water and 20 per cent of electricity by the year 2020.

"Recent editions of Yarn Expo have been highlighting the growing importance of transparency in the textile chain. The Spring 2019 edition of the expo highlighted shifting sourcing trends, brands’ entry into new markets and initiatives needed to achieve sustainability in the textile industry. The next edition of the fair, Yarn Expo Autumn 2019, will be held from September 25 to 27, 2019 at the National Exhibition and Convention Centre (Shanghai)."

 

Yarn Expo 2019 upholds in textile supply chainRecent editions of Yarn Expo have been highlighting the growing importance of transparency in the textile chain. The Spring 2019 edition of the expo highlighted shifting sourcing trends, brands’ entry into new markets and initiatives needed to achieve sustainability in the textile industry. The next edition of the fair, Yarn Expo Autumn 2019, will be held from September 25 to 27, 2019 at the National Exhibition and Convention Centre (Shanghai). It will be held concurrently with the 25th Autumn Edition of Intertextile Shanghai Apparel Fabrics, as well as CHIC and PH Value.

Brands demand transparent supply chains

Organised by Messe Frankfurt (HK) and the Sub-Council of Textile Industry, CCPIT,the Spring edition of theYarn Expo 2019 upholds transparency textile supply chain Yarn Expo had a common theme across each case study that included the rise in consumer demand for sustainability and transparency, and its consequent effects across the industry. And as Manohar Samuel, Senior President of Marketing & Business Development at Grasim Industries points out brands are realising the importance of fiber in creating an environment-friendly products. CCI agreed to this viewpoint by observing that trade buyers from further along the supply chain are sourcing directly from yarn & fibre suppliers. They are demanding traceability. The main advantage of using traceable cotton is that it’s easier for brands and retailers to do their due diligence, by starting right from the origin.

Trade buyers focus on improve traceability

Exhibiting at Yarn Expo has enabled companies to attract a wider variety of trade buyers who seek to improve their traceability. One such company, Safilin was able to direct customers to the exact fields that grow flax for their linen. As a result, the company got enquiries directly from brands who want to improve their carbon footprint.

Exhibitors say, sourcing directly from yarn and fibre companies can provide brands an access to innovative yarns and fibers, ultimately offering product differentiation. It can also reduce the risk of costly production problems such as breakage, while creating a product that commands higher premiums at retail.

The success of Autumn edition of the show was reflected in its 9 per cent increase in visitor numbers. The fair also organised its first ever Media Tour that invited textile industry media to highlight the expo’s growth besides emphasing on the growing role of suppliers’ in the industry’s continuously adapting sourcing trends.

Wednesday, 29 May 2019 13:30

Trident expands spinning capacity

Trident is expanding spinning capacity at its Madhya Pradesh plant. The project, is expected to begin commercial production by January 2021, will help strengthen Trident’s existing home textile business and further expand its market presence. Trident’s existing capacity is 5,43,744 spindles and 6,464 rotors, and the current capacity utilisation is 99 per cent. Trident has planned for maintenance capex at Rs 100 crores for fiscal ’20 and the same will be utilized toward small maintenance capex in the form of de-bottlenecking and upgradation of capacities.

Trident is the flagship company of the Trident Group, an Indian business conglomerate and a global player. Based in Punjab, Trident is a vertically integrated textile (yarn, bath and bed linen) and paper (wheat straw-based) manufacturer and is one of the largest players in the home textile space in India. The company is upgrading its business operating system.

India has emerged as not only the largest producer of raw cotton but also a major cotton surplus and cotton exporting country in recent years. This gives a distinct advantage to Indian home textile manufacturers. Home textile companies which have invested in technology and systems are bound to consolidate and grow, leveraging their capabilities with cost-efficient manufacturing and a strong market presence.

Australia’s wool market has crumbled amid heightening US-China trade war. The dispute has led to a slowdown in the Chinese economy and a dip in consumer confidence. Another reason for the recent hesitation from Chinese mills is that stocks of garments, fabrics and yarn in the Chinese wool textile industry are rising. Chinese buyers are reluctant to buy the greasy commodity at auction. As China has a 75 per cent share of Australia’s exports, any reduction in China’s demand will hurt the Australian wool market.

Currently, wool clothing have not been included in the punitive tariffs imposed by the US on Chinese imports. A potential US tariff hike on wool imports from China would have a severe knock-on effects for Australia’s wool trade. If the US imposes a 25 per cent duty on imports of wool clothing from China, that will flow-on back to Australian wool growers given that Australia supplies around half of China’s raw wool requirements.

The US and China have been locked in a bitter dispute since July last year after the US enforced tariff increases on 818 categories of Chinese imported goods worth 50 billion dollars. Tensions threatened to reach boiling point last month when the US threatened to raise tariffs again.