FW
Fall in value of Turkish exports in 2019
In the January to March period of 2019, Turkey’s textile exports declined by seven per cent in value and increased 3.9 per cent in quantity. The export unit value of the ready-to-wear industry declined by 10.1 per cent. The share of textiles and raw materials in Turkey’s total exports decreased to 5.6 per cent from 6.3 per cent compared to the same period of last year. Woven fabrics are the most important export product group of Turkey’s textile industry. In the first quarter of the year, woven fabrics were 23 per cent of Turkey’s total textile exports.
Turkey’s total exports increased by 3.3 per cent over January to March 2019 in which textile exports have declined, while apparel exports made no headway. The EU is the biggest market for Turkey’s exports. However in the first three months of this year Turkish textile and apparel exports to the EU fell by 10.9 per cent. Similarly exports to the Middle East fell by 10.4 per cent. But exports to Asia and Oceania in the January to March period increased by 5.5 per cent. And Turkey’s exports to the former Eastern Bloc countries increased by one per cent. Textile exports to the US decreased by 3.6 per cent while exports to Bulgaria decreased by 19.6 per cent.
Egypt’s Q1 garment exports grows two per cent
Egypt’s readymade garment exports increased two per cent in the first quarter of 2019 compared to the same period of 2018.
The United States tops importing countries of Egyptian readymade garments. Apparel created within the Egyptian Qualified Industrial Zone (QIZ) is duty free to the US. Goods made in Egyptian QIZs can use fabrics imported from third countries and remain eligible for duty-free entry into the US market, provided 35 per cent of their value is added in Egypt, including a minimum of 10.5 per cent of Israeli content. Costs incurred in the US also count towards the 35 per cent threshold. Egypt’s readymade garment exports to the UAE were up 334 per cent in the first quarter. Exports to Canada were up 84 per cent.
Egypt’s textiles and clothing sector is the most integrated on the African continent. The apparel sector is the country’s most important industrial sector; it represents 6.5 per cent of total non-petroleum. Apparel exports in 2018 rose ten per cent compared to 2017. Fifty 50 per cent of the country’s apparel production goes to the US and 30 per cent to Europe. Egypt also enjoys duty-free market access to the EU. With its fabric base and sourcing proximity to Turkey, exports to the EU are likely to increase.
Coats opens innovation hubs in three countries
Coats has opened innovation hubs in Turkey, China and the US. These dedicated centers at key locations around the world enable Coats to collaborate with a range of innovation partners including customers, brands, suppliers, universities and start-ups. They will develop pioneering new products and processes in apparel and footwear and hi-tech products for end uses in automotive, oil and gas, protective wear and telecommunications by providing creative and inspiring spaces where an innovative idea can be developed collaboratively and rapidly worked up into a prototype design which is then manufactured in a standalone pilot factory.
Coats is the world’s leading industrial thread company. Each of the hubs has a distinct areas of focus. The location of the hubs has been specifically chosen. The hub in Turkey is at the center of the automotive industry in Turkey and will drive development into that sector through its focus on composite design and engineering as well as across all Coats’ technologies. It will be key to developing an innovative range of products taking personal protection garments to the next level in terms of comfort, fit, look and safety. China is a leading hub for apparel and footwear and the hub there will have a focus on creating a sustainable product portfolio.
Clothing for US children gets gender neutral
Genderless clothing for babies and children under the age of 12 has caught on in the US. Millennial parents appear to be more open-minded when it comes to gender and prefer to give their children more clothing options in different colors and styles, without being constrained by their gender.
Primary, founded in 2015, is a gender-neutral children’s wear brand. The brand uses its Instagram page, where it has 66,400 followers, to showcase all of its styles and colors, modeled on both boys and girls. Primary also encourages customers to post photos of their children wearing Primary and to tag them with #yesprimary for a chance to be featured on the brand’s page or in future marketing efforts. So far this year, the brand has been racking up major waitlists for new items. Around Valentine’s Day, there was a 6,000-plus waitlist for Primary’s rainbow heart pajamas, and this spring it saw a 4,000-plus waitlist for its raincoat. A big part of Primary’s success in the gender-neutral space comes from the fact that it’s been selling customers on genderless clothes since launch. Contemporary fashion brand Cos launched a line of children’s clothing for the first time, which came with a collection of genderless baby clothing. Children’s retailer Nununu has partnered with Céline Dion to create a gender-neutral line.
Cambodian exports to EU may plunge
Cambodia’s exports to Europe could see a huge decline if the European Union suspends Everything But Arms (EBA) trade preferences for the country. If EBA is withdrawn, tariffs on garment, footwear, and bicycle products will increase 12 per cent, 16 per cent and ten per cent respectively. The EU has already imposed tariffs on Cambodia’s milled rice.
The EU is a major trading partner for Cambodia, particularly for garments and footwear. As a least developed country, all of Cambodia’s exports to the EU, except arms and ammunition, have faced zero per cent tariff since 2001. Cambodia’s exports to the EU account for more than one-third of Cambodia’s total exports. In any case Cambodia has already taken measures to counteract the possible withdrawal of the EBA. The measures include cutting production and export costs to support local manufacturers and exporters. The measures are aimed at reducing operating costs for producers and exporters by about 400 million dollars a year.
The garment and footwear industry is one of the pillars of Cambodia’s economy. The sector has helped improve labor standards and workers’ living conditions, reduce poverty and promote sustainable growth. Cambodia’s garment sector employs some 7,00,000 workers, whose jobs could be in question if EBA is pulled.
Unitech to showcase finely designed rings at upcoming ITMA
Unitech Texmech is a market leader in spinning rings. Unitech rings are finely designed products designed to spin yarn from any kind of fibers like cotton, polyester, acrylic, wool, flex, blends, etc. Unitech offers a wide range of rings to cater to the varied needs of the industry and offer a lifetime of three to eight years depending on the count, speed and fiber characteristics. The K1 ring has excellent wear resistant properties and is tougher than coated rings. It is ideal for spinning fine and super fine counts, compact yarns, dyed yarns as well as yarns made from highly abrasive fibers. The QC ring is an economically priced product with the salient features of coated rings. The ring is suitable for spinning yarns from all types of fibers and is a true value for money black ring. The Ultima ring is a product with a unique surface coating, especially suitable for machines running at very high speeds, elite and compact spinning systems. A very hard and thin microfilm of atomic coating is given, to ensure superior gliding and wear resisting properties at high speeds.
Set up in 1976, this Indian company is engaged in the design, development and manufacture of precision components and systems for the textile, engineering and automobile sectors. Unitech will exhibit at ITMA 2019.
Vietnam set to be garment powerhouse
Competitive labor costs and preferential policies can help Vietnam become an ideal destination for investors in the garment and textile sector. The country can expand its market share globally, taking advantage of free trade agreements to become a manufacturer to the world’s established brands. Such agreements play an important role in helping Vietnam move up the value chain in the garment and textile industry. FDI companies have so far invested about 17.5 billion dollars in the industry. An increasing number of international buyers are sourcing products from Vietnam because supply chains for locally made products have improved and the country has joined more free trade agreements. In addition participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will benefit the country in the long term, helping the garment and textile sector expand market share in Canada, Mexico, New Zealand and Australia and many other countries.
The EU is the second largest export market for Vietnam’s garment and textile sector, with more than 40 per cent tariffs applied to garment and textile products expected to be reduced to zero per cent when the free trade agreement takes effect. Orders are expected to shift from China to Vietnam due to the ongoing US-China trade war.
Nepal builds special garment processing zones
Nepal is building garment processing zones and inviting investors to submit applications to install production plants at the zones. A special economic zone (SEZ) will come up in each of the seven provinces. The product specific industrial zones are expected to make the production process cost effective and help boost exports of Nepali readymade clothes. The mandatory export provision has been reduced from 75 per cent to 60 per cent to ensure sustainability of the firms inside the SEZs while 40 per cent of their production will be allowed to be sold in the domestic market.
The country’s earnings from readymade garment exports in the eight months of the current fiscal year grew 4.6 per cent compared to the same period of the previous year. There are 52 readymade garment factories operating in Nepal with an annual production capacity of seven million pieces. Nepal was shipping 87 per cent of its readymade garment production to the US till 2002. Following a dip in exports to the US, Europe emerged as a major buyer of Nepali readymade garments. The readymade garment industry collapsed after the Multi Fiber Agreement expired in January 2005, which provided duty-free access for Nepali garments to the US. More than 85 per cent of the garment factories have shut down since then.
Indian cotton imports up threefold
India’s cotton imports from the US rose over threefold, from March 2019 to April 2019. The main reason is high domestic prices and short supply. A sudden rise in domestic cotton prices has led mills and traders to import the natural fiber. Indian cotton is currently being sold three or four cents per pound higher than the comparable variety in the international market. Imported cotton appears to be attractive due to better yarn realisation, productivity and quality. Mills in south and north India are finding imports to be much cheaper than buying locally and spending huge amounts on transportation from Gujarat or Maharashtra. They don’t have logistic expenses. Rampant adulteration and contamination are also discouraging mills from sourcing cotton locally. A fall in output because of a drought in almost 40 per cent of the country has led to a short supply in the domestic market.
Imports are expected to rise 70 per cent in the current year. So far, India has signed import deals for around 1.8 million bales in the current year. Of this, 8,00,000 million bales to 9,00,000 million bales have already been shipped, and the remaining quantum is likely to shipped between May and July. Imports are also taking place from Africa.
Circle Economy, Fashion for Good to form global network of solution providers
Circle Economy has partnered with Fashion for Good to accelerate re-commerce and rental business models in the apparel industry. Through this partnership, Circle Economy and Fashion for Good will establish a global network of over 50 front-running solution providers and innovators, brands, and rental and re-commerce experts to exchange insights and tangible solutions to move the apparel industry towards circular business models that can create a positive impact for people and the environment. The project will work with six brands on a circular innovation process that will help them design and launch these new types of business model pilots by 2021.
Re-commerce, rental, and leasing offer commercial opportunities for brands to innovate their business model while optimising the useful life of clothes to their full potential and reducing the overall impact of the industry. The past two decades have seen a dramatic decrease in the amount of times clothes are worn. Coupled with a shift toward fast fashion, average consumers today buy 60 per cent more items than they did 15 years ago and wear them for half as long. Seventy per cent of closets usually go unworn and it is estimated that 33 per cent of women wear items as little as five times before disposing of them.












