Pakistan Textile Exporters Association (PTEA) lauded the government’s move for liquidation of outstanding refunds through promissory notes but expressed concern over long outstanding liquidity under textile policy incentive schemes. It also demanded supplementary grant for payment of incentives under textile policies 2009-14 and 2014-19

The association claimed that inadequate liquidation of refunds would result in failure of getting desired results as huge amounts of exporters were still stuck against textile policy incentive scheme. The association says, exporters’ claims of Rs 10,300 million were outstanding against export finance markup support, Rs 1,500 million against Markup Rate Support, Rs 19,405 million against Technology Up-gradation Fund, Rs 434 million against Reimbursement of EOBI & Social Security contribution of women and handicapped employees of textile industry whereas Rs 2500 million were outstanding against Drawback of Taxes & Levies (DLTL) 2009-11.

Moreover, Rs 10 billion were outstanding on account of income tax; whereas Rs 10 billion was pending against income tax credit u/s 65B & 65E. With huge shortage of funds, textile industry was unable to tap its potential in accordance with capacity.

For the nine month period Nandan Denim’s capacity utilisation stood at 63 per cent. Gross margin stood at 30.2 per cent and declined by 199 bps due to lower sale realisation and relatively higher price of key raw materials such cotton, power etc.

Employee expenses and other operating expenses marginally increased by 3.2 per cent and 3.3 per cent respectively. Ebitda margin was 10.7 per cent. The temporary oversupply, aggression in pricing and higher credit period which the industry is facing impacted the volumes, realisation and profitability of the company.

Net finance cost declined by 52.8 per cent. Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.

The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material.

A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover. Nandan is gradually steering the business towards the value added denim category.

The late Robert H. Chapman, III, who served as Chairman, Chief Executive Officer, and Treasurer of Inman Mills in Spartanburg, S.C., received the 17th Oscar Johnston Lifetime Achievement Award. He was honored at the National Cotton Council’s 2019 annual meeting held in San Antonio, Texas.

The award was presented by outgoing NCC Chairman Ron Craft to Ellis Fisher, a son-in-law of Chapman who serves as Inman Mills’ vice president and general counsel and who accepted the award on behalf of Chapman’s family.

Along with his service at NCTO, Chapman served the NCC as a manufacturer delegate from 1999-2017, a Board member from 2005-2017 and as an advisor in 2016. He was a member of the NCC’s 1989 Cotton Leadership Class. A graduate of the University of the South, where he majored in economics, Chapman also earned degrees from the Institute of Textile Technology and Harvard Business School. In 1976, he joined Inman Mills, a company founded by his great-great uncle, James A. Chapman in 1901.

As per representatives of the Vietnam National Textile and Garment Group (Vinatex), the country’s garment and textile industry aims to achieve an export turnover of $40 billion this year. The group advocates that in order to achieve this goal, garment and textile companies should prepare specific solutions for each market scenario and closely collaborate with fiber and fabric firms to together overcome difficulties as well as market fluctuations.

This year, positive sign is expected from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with two potential markets: Canada and Australia. If market scenario is good, the EU market in the last six months of this year will add about $1 billion to garment and textile exports. Therefore, Vietnam’s garment and textile industry will be able to maintain steady export to main markets and achieve its export target of $40 billion this year.

The European Union may suspend trade privileges for its imports from Cambodia. Right now Cambodian exports to the EU are duty-free. The EU had announced in October last year that Cambodia could lose its special trade access to European markets under the EBA preferences, citing concerns over human rights and labor rights issues in the country.

The process consists of a six-month period of intensive monitoring and engagement with the Cambodian authorities, followed by another three-month period for the EU to produce a report based on the findings.

After 12 twelve months, the European Commission will conclude the procedure with a final decision on whether or not to withdraw tariff preferences. Any withdrawal would come into effect after a further six-month period.

The EU is a major trading partner of Cambodia, especially for the textile and footwear sector. As a Least Developed Country, Cambodia has enjoyed duty free exports of products, except arms and ammunition, to European markets for decades. Cambodia exported products to the EU bloc worth €4.9 billion in 2018. Over 46 per cent of Cambodia's total exports of apparel and footwear are to the EU.

The Apparel Textile Sourcing Miami (ATSM) will introduce a range of new sections, including machine demonstrations, a technical textiles section and a footwear sourcing pavilion. The event will host a number of apparel industry professionals, from buyers and sellers to supply chain executives, from the U.S. and Latin America

This year ATSM will be held one week later than originally planned. The new dates, May 28-30, 2019 will coincide with MiamiFashion Week. ATSM made its debut in 2018, and in its sophomore year, the event will double in size, with around 12,000 industry professionals expected to attend the event in South Florida.

There will be a special focus on how advancements in manufacturing grant microbrands the chance to add more design seasons to their collections and welcome new designers into the market. ATSM 2019 will examine the future of retail through the lens of microbrands and their influence on fashion’s transactional infrastructure, from raw materials to retail.

The competitive landscape in Brazil’s apparel market continues to rise as some of the world’s top brands seek a place to start operations. Puma, Adidas, WinCraft, and Nike have all made a push to provide products domestically, increase manufacturing capacity, and promote a stronger export market.

That makes Brazil one of the most promising apparel industries in the world today. The country features a high level of fashion consciousness, diversified demographics, and eagerness within the primary population to shop and experiment.

A secondary market for apparel is starting to open as well thanks to manufacturers opening their old stocks to the retail segment. Local companies can sell brand-name products at discount pricing, encouraging even more sales activity from the targeted demographics. Although there will still be growing pains to endure in the next 10-year period for the Brazil apparel industry, the stage is set for consistent growth. Brazil expects a CAGR of 4.5 per cent annually through this forecast period if conditions remain constant.

With China becoming health conscious the country has over 37,000 fitness facilities. A recent wellness trends report published by the Global Wellness Summit notes over 104 million Chinese have at least one fitness app on their phones while another five million have a gym membership. The country, home to approximately 500 gyms in 2001, currently boasts of over 37,000 fitness facilities. This includes several international franchises and specialized gyms.

Various governmentincentives also boosts this growing fitness trend in the country. The State Council had introduced the Healthy China 2030 initiative in 2018. Through this plan, the Chinese government hopes to engage 700 million people in physical activities at least once a week, while 435 million will exercise regularly. With so much happening in China on the wellness front, no wonder the athleisure trend has taken off.

Brands exploit growth through new initiatives

As per Euromonitor International, sportswear in China grew by 12 percent to $31.4 billion in 2017, and analysts expect this positive growth trend to continue in coming years. Analysts predict athletic brands will continue to capitalise on this trend. In 2016, Adidas had announced a plan to expand from 9,000 to 12,000 stores across China by 2020, and their strong results of 16 per cent in 2019 represents yet another strong and encouraging start to the year. Adidas saw 20th consecutive quarter of double-digit growth in Greater China.

Meanwhile, Canadian yoga-inspired brand Lululemon, which plans to generate 25 per cent revenue from its Asian markets by 2020, targets China for achieving this growth. The brand will adopt advertisement campaigns, influencer marketing and partnerships with wellness gurus for achieving this growth.

Similarly, Japanese brand Uniqlo also plans to exploit China’s newfound affinity for wellness by offering a colorful selection of hoodies, shorts, sweatshirts, leggings, tops, and sports bras and is a popular choice in middle-class Chinese households. The brand’s products stand out for their versatility, functionality and innovative fabrics such as odor neutralising dry-ex and the water-repellent Blocktech. The brand also plans to expand its brick-and-mortar stores in China. The forecast calls for over 1,000 stores by the end of August 2021.

Local brands make a mark

The Chinese wellness craze is benefitting not just international but also local brands like Particle Fever and Maia Active. These local brands have created niche businesses by appealing to younger, consumers who crave authenticity or individuality — and aren’t afraid to experiment.

The Chinese idea of a perfect activewear is different from that of the Western countries. To cater to this difference, the products of Maia Active are designed as per consumer-centric business mindset. The brand’s products are specially Asian-fitted which differentiates it from a lot of existing activewear brands in the market. The brand breaks through the conventional design approach and blends in fashion elements in its products.

Independent sports brand Particle Fever, on the other hand,offers a trendier version of the athleisure trend through its innovative and avante garde designs. The brand’s partnerships with the Woolmark Company and the posh retailer Lane Crawford reflect its extraordinary growth. The wellness sector in China is thus on a continuous growth path and is sure to scale new heights soon.

"Designers today are equipped with the right mindset and tools to face the rapidly changing manufacturing and retail landscapes. In a panel discussion at Sourcing at Magic in Las Vegas recently, experts set out to further streamline some of the sector’s confusion. The panel titled, “Fashion Design Is All About Tech and Innovation,” moderated by Fashion For Profit President Frances Harder, denim design and fit experts urged designers to use technology to create ways to overcome the denim industry’s biggest hurdles, including sustainability, on-demand manufacturing and performance fabrics."

Designers today are equipped with the right mindset and tools to face the rapidly changing manufacturing and retail landscapes. In a panel discussion at Sourcing at Magic in Las Vegas recently, experts set out to further streamline some of the sector’s confusion. The panel titled, “Fashion Design Is All About Tech and Innovation,” moderated by Fashion For Profit President Frances Harder, denim design and fit experts urged designers to use technology to create ways to overcome the denim industry’s biggest hurdles, including sustainability, on-demand manufacturing and performance fabrics.

Growth of the athleisure segment

Fabric innovation is the reason for denim’s comeback from the hit it took from the athleisure and activewear markets in 2014. As Jennifer Lynn Peterson, Designer, Silver Jean Co points out, everyone discovered that athleisure could be fashionable and comfortable at the same time. Jeggings and indigo knit helped the denim industry stay relevant. Denim mills had to develop denim urgently. Stretch denim, however, continued to be a hard sale for men’s brands. As Stefano Aldighieri, President of Another Design Studio 2.0 noted, brands would never even advertise it. They would not tell people it was stretch because otherwise men traditionally would refuse to wear them.

Brands need to focus on macro trends

Peterson feels, denim trends are less about new styles and more about achieving a certain look. Brands are styling jeans on their websites as an entire outfit. They want to be able to visualise themselves wearing it. Whereas fashion trends used to differ from city to city, said Ram Sareen founder of Tukatech, trends spread like wild fire and should be among designers’ least concerns. According to him brands should now consider how segments of the market are changing.

Aldighieri urged brands to extrapolate design concepts lifestyle and cultural shifts. According to him, brands should really look at the macro trends—the things that are really important—then give their own interpretation.

Consumers warm up to sustainable denim

According to Silver Jeans Co, consumers are warming up to sustainability. The technology required to be sustainable is becoming affordable. The company is planning to launch machinery that streamlines the process that requires fewer machines, no pumice and requires less water.

Aldighieri fears sustainability will be lumped with other industry trends. Sareen, on the other hand, advises brands to take a proactive approach to sustainability through on-demand manufacturing. According to him, the biggest cause of concern is the landfills of unsold garments. To eliminate excess, brands require better technologies to make only what they need.

In the last five years India’s exports of cotton yarn have declined by 25 per cent and fabric exports have declined by seven per cent. Reason: duty disadvantage faced by Indian exporters in major markets. Chinese imports of cotton yarn from Vietnam or Indonesia are duty free but Indian yarn carries 3.5 per cent import duty.

The decline in exports is impacting the whole value chain from farmers, spinners to weavers and knitters as there is considerable export surplus in the country. Exports of Indian spinning mills were good during 2013-14 when cotton yarn was covered under schemes such as the two per cent incremental export incentive, the two per cent interest subvention and the three per cent focus market incentive.

However, suddenly all incentives were withdrawn, leaving spinning mills in the lurch. India’s cotton yarn exports to China have fallen 48 per cent from 2013 to 2017 but exports from Vietnam and Indonesia have increased 129 per cent and 55 per cent respectively in the same period.

Markets like the EU, China, Turkey and Vietnam impose an import duty of eight per cent to 12 per cent on Indian fabric while duty free access is given to countries such as Pakistan, Cambodia and Bangladesh.