UK sourcing show Source Denim, Fashion SVP’s dedicated denim showcase was held from January 15 to 16, 2019. Each fair has its own specific strengths. Source Denim’s seminar and panel talk program is a definite draw, particularly since it covers issues relevant to the fashion industry as a whole.

A speaker gave a whirlwind lesson on the history of denim, stretching back well before 1873 (the official birthdate of the blue jean) to the modern day, weaving in fun facts as well as touching on more serious issues such as the industry’s environmentally disastrous ways and how this could potentially be improved.

Sustainability was often the first word uttered. Since clients want assurance that every aspect of the garment manufacturing process is sustainable, jeans producers have invested in the latest laser and eco washing machines for their laundry, monitoring the impact of all their washes with the EIM program from Jeanologia.

This season, Source Denim partnered with Common Objective, a digital platform founded by the Ethical Fashion Group. Its aim is to help equip fashion businesses with the tools they need to achieve commercial success in the greenest possible way. Prior to the show, all Fashion SVP/Source Denim suppliers were invited to set up an online profile to shed light on their sustainability credentials and help buyers quickly identify suitable partners.

Children’s wear show Pitti Bimbo was held in Italy, January 17 to 19, 2019. It was visited by over 6,400 buyers, out of nearly 10,000 visitors altogether. Buyer numbers from Spain, the largest contingent, were up, as did those from Greece, Belgium, Poland and Saudi Arabia.

Pitti Bimbo showcased 553 exhibitors, of which 60 per cent came from outside Italy, with 152 between come-backs and new exhibitors. The results for the show's three days exceeded expectations. The collections exhibited creativity. The designs were modern and compatible with the latest ecological and social feelings. The exhibitors were segmented by product and company type. The show’s international leadership was confirmed within the children’s fashion and contemporary lifestyle industry.

However, the mood was somber, with a series of negative forecasts for growth, consumption expenditure and international trade. The number of buyers from strategic children’s wear markets like France, the UK and Turkey was stable, surprisingly on par with the remarkable numbers posted at the show’s last winter edition.

There were fewer Russian and Ukrainian visitors, though on the whole more than expected, given the worsening economic situation and geopolitical scenario in those countries. The number of Italian buyers was down. The number of German buyers too fell.

Textile industry in Pakistan wants duties on polyester and cotton yarn to be abolished. The rationale is: this will decrease input costs in the domestic sector. The powerloom industry has faced losses due to costly polyester yarn. Pakistan has taken positive initiatives for the revival of the export sector. Imports have started decreasing, whereas transactions witnessed a 10 per cent increase and exports two per cent increase.

Although duty on cotton imports has been abolished, duty on cotton yarn remains. Gas and electricity tariffs have been rationalised for the export-focused industry in an attempt to cut the cost of production and boost competitiveness. These incentives have brought down the cost of production for the textile value chain. Cotton production in Pakistan has fallen by 4,00,000 bales.

Now, the plan is to rationalise subsidies for agricultural crops in order to encourage cotton cultivation. Cotton ginning industry is being encouraged to reduce contamination, improve productivity and upgrade the machinery. Owing to trade tensions between the US and China, Pakistan’s textile industry is receiving a large number of import queries from the US. Simultaneously Pakistan is working on expanding its market share in China, Japan, the European Union and the US.

Lenzing has partnered WTS to create a range of knits made with Tencel Refibra technology. Among the pieces are jersey T-shirts for women made from Pima cotton, Tencel Modal, Spandex and 29 per cent Tencel Refibra lyocell as well as men’s tees created from 20 per cent Tencel Refibra lyocell and pima cotton. The collection includes dresses, tanks, henleys and polos, all with a varying amount of Tencel Refribra lyocell blended with premium and performance fibers.

Tencel Refibra lyocell, a manmade cellulosic fiber, utilizes post-industrial cotton scraps from garment production and wood pulp, moving the industry one step closer to achieving a circular economy. Tencel Refibra lyocell offers the best of both worlds—the performance consumers are looking for without the damaging impact to the environment.

WTS is a full-package manufacturer based in Peru. The manufacturer chose to partner with Lenzing because the company recognizes the need for sustainability and Lenzing’s ongoing commitment in this area provides unmatched credibility.

The two companies have collaborated in the past and share a similar vision. WTS has a long history and understanding of working with Tencel lyocell fibers. Lenzing needed a partner that had the understanding of Tencel lyocell and the vision and sustainability goals to elevate Lenzing’s product offering and WTS was seen as the perfect partner to bring this value to the knits market.

From January to November 2018, Sri Lanka’s apparel exports grew five per cent compared to the same period of 2017. Apparel exports to the United States during the same period increased 5.6 per cent and to the European Union it went up four per cent.

Sri Lanka’s total apparel exports were up 10 per cent in November compared to a year ago. Exports to the US in November increased 16.5 per cent from a year ago; exports to the European Union, which declined in August and September, to go up once again in November by 2.4 per cent. Following the restoration of GSP Plus, Sri Lanka’s textile and garment exports to the European Union have shown higher growth. With Sri Lanka now on track to be classified as an upper-middle income country for the second year in 2018, there is a possibility that the European Union would withdraw the GSP facility in 2021.

A country which is classified as upper-middle income for three consecutive years is no longer be eligible for GSP Plus. The industry expects around four to five per cent year on year growth in apparel exports for 2019. This is based on the assumption that there will be no hard Brexit and there will be a negotiated Brexit.

Iran’s exports of apparel and clothing increased 60 per cent in the nine months of the current year. The country exported 4,600 tons of garments, a significant 59 and 24 per cent growth in terms of weight and value respectively. Efforts are being made to make things easy for garment manufacturers to enhance exports. The decision to prohibit imports of some items has created huge opportunities for local manufacturers to increase their exports despite all challenges pertaining to the currency.

The country has taken measures aimed at renewing the country’s garment manufacturing industry, in a bid to enter international markets. Exporting apparel products to neighboring countries, including the CIS and, in particular, Azerbaijan, is on the agenda.

There are about 50,000 apparel manufacturing units in the country. Foreign representatives, branches and distributors of apparel in Iran who seek business licenses have been mandated to produce goods worth 20 per cent of their import value inside Iran and to export at least 50 per cent of this domestic production.

The initiative is aimed at increasing domestic production, creating jobs and reviving Iran’s apparel industry. Public interest in domestic products has dramatically surged over recent months. Plans are underway to establish a new apparel industrial town.

Indian textile mills are setting base in Ethiopia. Ethiopia offers ready-to-use sheds, income tax breaks and training subsidies and offers tax-free gateways into the US, Europe and China.

KPR Mills from Tirupur has started a unit in Ethiopia. Other prominent textile players to have followed suit are Raymond, Arvind, Best Corporation and JJ Mills. KPR has invested in a capacity of 10 million units, providing employment for nearly 1000 people. Raymond’s plant in Ethiopia has a capacity of two million jackets.

Besides the labor cost, which is 50 per cent lower compared to India, another big advantage is that land and building are readily available. So it is just a plug and play model with cheap power.

While Bangladesh has free trade agreements with major importing countries, the Indian industry is struggling to get into a similar arrangement. Negotiations have been more or less futile as any concession given to Indian textiles must come with commensurate concessions to other products that the textile importing country might want to export to India. Import duties generally range from 10 to 18 per cent for most European products but could go up to as much as 28 per cent for certain categories. In comparison, Bangladesh imposes little or no duty on the products it imports.

In 2019, sustainability will go mainstream and influence more aspects of our lives than ever before. The UN IPCC (Intergovernmental Panel on Climate Change) report published in October 2018 showed the urgency of change needed to avert global crisis. At the current level, the world is on course for a disastrous 3C of warming. Many of the widespread actions needed are aimed at government level, but there is so much other ‘noise’ in the world of politics. The UN itself identified that political will is the final barrier to achieving the shifts needed.

According to Statista, awareness of the sustainability issues with fast fashion is low, with sustainability currently ranking fifth (behind quality, value, price and brand) in importance when choosing clothing. The solution is to shift from a linear economy (make, use, dispose) to a circular economy in which resources are kept in use for as long as possible, then recovered and regenerated at the end of their service life. Some brands are already making strides in this area. Patagonia makes polyester fleeces with recycled plastic bottles and H&M has its garment collection scheme, and ‘conscious’ sustainable style range, but this type of offering needs to shift from a single range to the mainstream in order to meet consumer needs.

India is rolling out initiatives for the textile sector. One such is the India-specific apparel sizing which will help in taking policy decisions for the growth of the domestic industry. Embedded duties will be refunded fully and no tax will be imposed on exports.

India’s apparel and textile industry is being supported through the Amended Technology Upgradation Fund Scheme, the Scheme for Integrated Textile Parks, the Integrated Skill Development Scheme and other such schemes.

The special incentives for the textile and apparel sector will enable the establishment of larger manufacturing set-ups thereby leading to economies of scale for executing larger orders resulting in the enhancement of India’s share in global textile and apparel exports. Since 2014, Rs 35,000 crores have been invested in the textile and apparel sector.

India exports textile and apparel to all countries including China. The recovery in the US economy has given a boost to India’s textile and apparel exports. With a continuous growth in US economy, India’s textile and apparel export growth is expected to continue. India’s share in world trade in textile and clothing is estimated to be 4.95 per cent.

The free trade agreement between the EU and Vietnam is expected to be a win-win agreement for both parties, creating a resoundingly positive effect for businesses and their long-term investment plans.
The agreement will facilitate exchange and cooperation between Vietnam and Europe by simplifying customs procedures for certain products, recognising geographical indications, and applying environmental protection standards.

Vietnam is an important economy in Southeast Asia. Thanks to its political stability and open-door policies to attract investment, Vietnam has risen on the World Bank’s business rankings. Urbanisation in Vietnam is increasing rapidly, with the number of people in cities in 2015 accounting for 34 per cent of the total population, giving an indication of the great potential of the Vietnamese market.

Once the agreement goes into effect, the EU will eliminate import duties on approximately 85.6 percent of its tariffs lines on Vietnamese products. After seven years, 99 per cent of EU tariffs will be removed for Vietnamese products. Vietnamese textiles, footwear, and seafood products (except for canned tuna and fish balls) will incur no import duties within seven years after the agreement takes effect.

Vietnam will eliminate 65 per cent of its import duties on EU items and tariffs will be eliminated by over 99 per cent over the next decade.