FW
India: Textile and apparel exports register marginal growth in FY19
As per the Confederation of Indian Textile Industry (CITI), India’s textiles and apparels exports in the fiscal 2019 grew 1.66 per cent to $35.969 billion as compared to $35.381 billion in the previous fiscal, mainly due to a sharp drop in the shipment of apparels. Export of textiles products grew by 6.19 per cent to $19.830 billion during the fiscal under review as compared to $18.674 billion a year ago. Apparels exports declined by 3.40 per cent to $16.138 billion as against $16.706 billion in the previous financial year
Amongst textile products, cotton yarn/fabrics/made-ups, handloom products continued to be the largest export earner with a growth of 9.22 per cent, man-made fabrics exports increased by 3.15 per cent to $$4.978 billion as against $4.824 billion in the previous fiscal.
The carpet segment registered a growth of 3.63 per cent to $1.481 billion as compared to $1.429 billion in fiscal 2018.Exports of textile products and apparel in March 2019 grew by 6.96 per cent to $3.550 billion as compared to $3.319 billion in March 2018.
However, the monthly index of industrial production (IIP) of textiles declined (y-o-y basis) in February 2019. Exports of apparels registered a positive growth y-o-y in March 2019 which shows a positive correlation with increase in IIP of apparels in February 2019.
Suppliers in a bind over Gap
Gap’s decision to bifurcate may prove challenging for suppliers. Companies that sell to both Old Navy and Gap might find themselves in a more competitive environment. The different directions being taken by the chains, with Gap closing stores and Old Navy expanding, could pose advantages and disadvantages. But suppliers can benefit from Old Navy’s independence and growth because they will have better order streams.
Gap has decided to create two independent publicly traded companies. One is Old Navy and the other is a yet-to-be-named company that will consist of the Gap brand, Athleta, Banana Republic, Intermix and Hill City. The spin-off is intended to enable each company to maximize focus and flexibility, align investments and incentives to meet its unique business needs and optimize its cost structure to deliver profitable growth. There are real benefits for both companies in sourcing, which have contributed to the reason they decided on the split. Old Navy’s business model and customers had increasingly diverged from the company’s specialty brands over time. So, Gap decided to create two separate companies with distinct financial profiles, tailored operating priorities and unique capital allocation strategies. Old Navy is Gap’s leading brand comprising 47 per cent of sales.
Russian demand for synthetic fabrics increases
In recent years, demand for synthetic fabrics in Russia has increased significantly. Imports account for around 90 per cent of the local market. Much of the products come from China. In value terms, imports are growing at ten to 12 per cent. The market currently varies in the range of 2,50,000 to 2,70,000 tons a year in volume terms and has big potential for further growth, thanks to its rich raw material base and a well-developed petrochemical industry.
The hope is that in the near future Russia will be capable of replacing up to 50 per cent of imported synthetic fibers with its own production. The raw material base for the establishment of such production exists. All that needs to be done is to add some missing components in these technological chains, which will allow Russia to produce synthetic fibers at a lower cost. Implementation of these plans will provide an opportunity for the launch of large-scale commercial production of innovative fabrics in Russia.
Several years ago, there were plans to build a facility for the production of polyester fibers, as well as other raw materials, which are used in domestic technical textile production. The project was to have the capacity to produce up to 1,75,000 tons of polyester fibers and 30,000 tons of textile PET granulate a year. However the project was dropped.
Pakistan hopes for a surge in textile exports
Pakistan is expecting textile exports to grow. The value added sector is operating at almost full capacity and many big players are in the process of expansion. There are multiple reasons for exuberance – currency devaluation, subsidy to textiles, and availability of energy at competitive rates. One big booster is improvement in perception. The overall image of the country is improving and the opening up of visa regimes is helping as well. Buyers are visiting and new orders are being placed.
With the tariff war between the US and China, and protests against low wages in Bangladesh, buyers are thinking of diversifying from these two markets. Pakistan has the opportunity to grab a bigger share. However, building the requisite backward linkages is required. Without enhanced cotton production, it is hard for the textile industry to reach its true potential. One of the reasons for the erosion in competitiveness is the fall in Pakistan’s cotton production. The seed industry needs to be regulated and serious consolidation is required to improve the yield. The other factor is to do away with price support to other crops such as sugarcane which has resulted in substitution of sugarcane for cotton. Another need is to find new markets.
Eco India focuses on Doodlage initiatives
The second season of Eco India – a collaboration between Scroll.in and DW, focuses on the initiatives by a Delhi-based fashion brand Doodlage which makes chic garments with scraps of waste cloth. Designing clothes out of scraps of fabric and second-hand garments, Doodlage’s creative team dreams up new designs and sells its wares in 30 shops and online.
Doodlage up cycles fabric waste that chokes landfills. It collects this waste from large fabric manufacturers to create fashion products. In this process, Doodlage also ends up generating waste. But unlike other brands, this waste is shredded to create new fabric that goes into home furnishings and bags. The brand, targeted at anyone between 18 and 45 years, makes ethical fashion for all.
Every week, Eco India – a sustainability magazine highlights Indian eco heroes, often regular citizens, environmental activists, organisations and even kids, addressing a pressing ecological issue in their community.
It brings stories, people, challenges and innovations that are changing India’s approach to environmental issues. With this local focus, EcoIndia puts a spotlight on India’s movement towards sustainable and ecological development – one person, city and region at a time. Some highlights include entrepreneurial solutions to metropolitan waste management, cleaning rivers and fighting noise pollution.
Each episode of the show also includes segments on European cities and sustainable practices that demonstrate how environmental preservation is truly a global issue and solutions require international cooperation
Leading Vietnamese brands to participate in Global Sources Fashion Show
Over 30 leading Vietnamese producers of garments, textiles, handicrafts and fashion accessories will showcase their products at Global Sources Fashion Show this year. The major goods to be displayed include apparel, fashion jewelry, underwear, swimwear, bags, luggage, scarves, footwear and fabrics.
The four-day show will feature verified suppliers from major fashion manufacturing hubs, including Vietnam, China, Hong Kong, Taiwan, the Republic of Korea, Bangladesh, India, Indonesia and the Philippines. Exhibitors from Vietnam include members of the Vietnam Textile and Apparel Association (VITAS), Vietnam National Textile and Garment Group, and Handicraft and Wood Industry Association of Ho Chi Minh City.
With over 1,800 booths, the fair is expected to welcome 12,000 buyers from 150 countries and territories, including the US, the European Union, Hong Kong, Japan, Brazil, Mexico, Middle East, and South Africa, among others. The one-stop sourcing show is expected to witness growing participation from branded firms, including more than 500 exhibitors worldwide promoting their own designs and brands.
The event will also feature fashion parades and industry-related conferences, according to the organiser Global Sources.
Global activewear grows at six per cent
The global activewear market is growing at a CAGR of 6.5 per cent. The market is helped by a global cultural shift toward health and fitness. Companies are favoring a casual dress code and consumers are demanding more comfortable clothing.
Women’s sports bras, vests and tank tops are becoming more acceptable for not just athletic activity but for daily wear. Spacer fabric plays an important role in creating padding and support. In the past, sports bras were made using a spacer fabric knitted in a uniform thickness, and would add additional padding for support or to create a push-up effect. With the new generation of spacer fabric technology – the sculpted spacer – manufacturers can knit in a way that corresponds to the natural size and shape of women’s bodies, enhancing comfort with form-fitting support. The curved spacer is also a manufacturer’s dream – rather than attaching padding after the sports bra is sewn, the sculpted spacer is sewn all at once, eliminating several steps of the production process.
Yoga pants and leggings are the quintessential athleisure garment, but they wouldn’t have reached their pinnacle of popularity if it weren’t for four-way stretch fabric. Compared to the two-way stretch, it can be stretched during exercise without exposing the wearer’s skin. Further, four-way stretch fabric provides excellent elasticity to protect and support the body, while also allowing freedom of movement.
Birla Cellulose focuses on innovations in women’s apparels
Birla Cellulose hosted a Hub Development meet with brand Liva at Bhagalpur. The meet focused on the growth of the hub through innovations in saris, dress materials in stoles. This meet takes forward Liva’s initiative of providing innovation, technical, product and marketing solutions for the value chain, buyers, exporters and brands across the country.
The objective of the meet was to create awareness about emerging trends in women’s apparel, changing needs of consumer and growing environmental concerns. It also aimed to highlight opportunities for yarn partners and weavers to grow their business with Liva. Buyers representing prominent brands were present for the conclave.
The meet showcased innovative ranges of yarns, fabrics and saris by Liva’s esteemed partners. These products were appreciated for their superior hand feel and luxurious softness. Partners of the event were particularly excited about the possibilities of innovation in the segment besides processing and marketing support by Birla Cellulose.
Birla Cellulose aims to support the sustainability movement in India. Now, with the entry of Liva, saree too is set to be more sustainable with use of technologically enhanced eco-friendly fabrics.
Bangladesh knitwear does value addition
Gross value addition from Bangladesh’s readymade garment sector was 63.23 per cent in the first half of the current financial year. Value addition is calculated considering the import price of raw materials including cotton, synthetic/viscose fiber, synthetic/mixed yarn, cotton yarn and textile fabrics and accessories. Import price of raw materials in the July-December period of fiscal ’19 was 36.77 per cent of total export earnings from the readymade garment sector in the period. Thus, raw materials prices were 36.77 per cent of the total value of readymade garment exports.
Local value addition is estimated at 63.23 per cent. This can reach up to 75 per cent if the textile sector can produce high quality fabrics. The country’s knitwear sector is making a more than 80 per cent value addition. So the woven sector has to concentrate on developing fabrics. The import value of raw materials in fiscal ’18 was 39.06 per cent of the total export earnings from the readymade garment sector and the local value addition was 60.94 per cent. The local value addition from the readymade garment sector has remained static between 60 per cent to 63 per cent in the past six years. Total export earnings from the readymade garment sector during October to December of fiscal ’19 increased by 8.56 per cent as compared to the previous quarter.
Worker abuses rife at PVH factories in Ethiopia
Worker abuses have been detected at factories in Ethiopia that supply brands like Tommy Hilfiger and Calvin Klein. Ethiopian workers who make clothes for their high-street stores routinely face verbal abuse and discrimination. Workers in PVH supplier factories in Ethiopia are forced to do unpaid overtime and lose pay for drinking water at their work stations. Hiring managers at one factory felt the stomachs of job applicants to see if they were pregnant.
PVH, which runs Tommy Hilfiger and Calvin Klein, is one of the world’s top clothing companies, with about a million garment workers in its supply chain. PVH has helped finance the flagship manufacturing hub in the Ethiopian town of Hawassa.
One of the poorest nations in Africa, Ethiopia is pushing to switch its economic focus from agriculture to manufacturing, in the face of increased scrutiny over labor conditions and rates of pay in the supply chains of global fashion brands. As labor, raw material and tax costs rise in Asian factories, Ethiopia is seeking to offer a cheaper alternative, attracting big brands such as US chain Gap and Sweden’s H&M. Ethiopia does not have a minimum wage but companies sourcing from Ethiopia have a code of conduct prohibiting abuse.












