gateway

FW

FW

Thursday, 30 May 2019 13:06

India faces tariff issues with RCEP

India has resisted RCEP demands on tariff reduction. India fears the RCEP demand to eliminate tariffs on 90 per cent of the traded goods will have a disastrous effect on its already struggling micro, medium and small sector.

Apart from being reluctant to slash tariffs for political economy reasons, India has expressed its reservations over inclusion of e-commerce in the RCEP talks. The RCEP draft is opposed to data localisation, while India fears the monopoly power of digital giants.

Perhaps exasperated by the slow progress over the talks, China is in favor of a RCEP that consists of Asean plus Japan, China and South Korea. This move leaves out India, Australia and New Zealand. It would seem that India is in a tight spot but the bright side of this story is that there are a number of Japanese, Korean and Chinese companies who would, in fact, prefer a tariff wall for finished goods. Moreover, China is turning into a high cost producer, and needs lower tariffs and a softer currency in days to come. To that extent, India’s export markets in the Asean may not recede in a hurry. India can keep domestic interests in mind, while being flexible in certain areas. For instance, India can offer to liberalise foreign participation in education, accountancy and legal services.

The world’s largest spandex manufacturer Hyosung has developed new high-performance creora® ActiFit spandex and this will be launched at the Outdoor Retailer Summer Market in Denver from June 18-20, 2019. The spandex provides long-lasting durability, UV and chlorine resistance, and superior recovery required of cycling, swimming, triathlon and adventure racing apparel where athletes can encounter numerous environmental surroundings. The multi-sport apparel made with creora® ActiFit spandex will give athletes the confidence to focus on their sport and not be bothered by what they are wearing.

At Outdoor Retailer, Hyosung will also feature a collection of multi-functional, sustainable fabrics and apparel under its in-house Fashion Design Center’s 2020 Megatrends ‘Connected, beyond’ presentation – Protect the Body and ECO-nomy.

ECO-nomy ‘connected with responsible thinking’ is a viewpoint where sustainability is a business. Brands will need to evolve to create more circular business models to win consumers over as they become more interested in the transparent process of sustainable materials and design.

Thursday, 30 May 2019 13:03

High pile fabrics come into athleisure

Athleisure is beginning to expand beyond simple stretch fabrics into more luxurious high-pile fabrics, such as velvet, velveteen and velour. Yoga pants are no longer considered the only athleisure garment. Athletic brands have picked up on the trend to add more velvet and velour yoga pants, track suits and lounge wear to their product lines. High-pile fabrics are defined by a three dimensional texture with very visible pile of fibers on the surface creating a soft, smooth texture. Modern high-pile fabrics also include sweat-wicking and breathability. And now, with the addition of sweat-wicking and breathability, they even have a place in modern consumers’ workout regimens. Unlike the thick and heavy velvets of previous generations, modern velvet is lightweight, stretchy and breathable, all the while maintaining its soft-brushed finish.

High-pile fabrics can be used on both outer and inner layers of clothing. The soft, cozy fabric makes an ideal inner lining to enhance comfort and warmth. While high-pile fabrics can be produced using weaving, warp knitting and weft knitting, weft knitting is the preferred method. As more customers are looking for clothes that are warm, comfortable, and moisture-wicking, the new generation of breathable and lightweight three-layer high-pile is bound to be a welcome addition to the athleisure market.

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.