FW
Viet Nam exports garments and textiles worth $18 billion
Vietnam’s garment and textile sector earned $18 billion from exports, an 8.61 per cent year-on-year increase. The figure included $14.02 billion of clothing and $1.02 billion of fabrics, up 8.71 per cent and 29.9 per cent respectively.
According to VITAS, the number of orders in the first half of 2019 was equivalent to 70 per cent of the figure in the same period last year. In particular, consumption of yarn and raw materials faced many difficulties because the main export market China cut import volume. Meanwhile, garment products also experienced a drop in orders.
The US remained the biggest buyer, accounting for 47 per cent of total orders. It was followed by member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 17 per cent, the EU at 13 per cent and South Korea with 9 per cent.
Meanwhile the country spent US$11.4 billion to import materials for garment and textile production in the first half of the year, up 5.6 per cent from the same period last year. Cotton imports reached $1.52 billion, fibre $1.23 billion, fabric $6.75 billion and auxiliary materials $1.89 billion.
Portugal textile exports to US up 11 per cent
Portugal’s textiles and apparel exports to the US in 2018 rose 11.25 per cent over 2017. There’s considerable added-value when sourcing in Portugal. Beyond quality and product innovation, manufacturers in the country are also known for flexibility and adaptability—which allows small-batch production, something the industry’s digitally-native brands, in particular, seek in their sourcing strategies. Portugal’s textile industry has exclusive products and is able to offer tradition and industrial knowhow at the textile level, with a capacity for constant renewal and resilience.
There is a strong network of partners in the textile cluster, excelling at innovation and sustainability. This regional network is part of what adds to the country’s flexibility. What’s more, as part of a strategic plan for the textile and apparel sector, Portugal has made pointed commitments in sustainability and digitization to be competitive. The increase of the production scale assisted by digital technologies allows flexibility in the Portuguese textile business model. Flexibility is among Portugal’s key competitive advantages. Besides that, the country is among global leaders of the private label, in what is an essential differentiator in the textile market. Portugal is bringing its competitive offerings to light at a time when sourcing has been upset over changing trade relations, and companies are looking for new places to manufacture product.
Pakistan to host fashion IAF’s World Fashion Convention in November
The next edition of World Fashion Convention will be held in Pakistan, November 12 to 13, 2019. This will attract global apparel industry leaders and is an unique fashion industry event, bringing the topics that matter and the speakers that count under one roof with both the supply and demand side of the fashion industry.
Previous editions were held in Istanbul, Mumbai, Hong Kong, Rio de Janeiro, Porto, Shanghai and Maastricht. This year, Pakistan was chosen as the host because it has a significant textiles and apparel industry and because the potential for further growth is large following an important improvement in the safety situation in the country. The convention draws on an average 300 delegates usually coming from over 20 countries.
The event is organized by the International Apparel Federation (IAF), the only global federation of its kind representing apparel associations from 60 countries, representing over 1,50,000 companies. The IAF convention caters to apparel industry leaders from across the supply chain, from all continents. The convention will show many inspiring examples of a smarter apparel supply chain. Top speakers from across the globe will cover the width of the supply chain, from raw materials to apparel sourcing and from production to retail trends. On top of that, the convention will provide an excellent opportunity to meet the global industry in one location.
US brands join adaptive clothing bandwagon
American children with disabilities have clothing specially made for them.The aim is to make the clothing industry more inclusive of children with disabilities. These clothing have features such as sensory-friendly and wheelchair-friendly options. The product development teams take great care in thoughtfully designing features for ease and functionality.
Asos offers a rainbow tie-dyed waterproof jumpsuit engineered for those who use a wheelchair for mobility. The jumpsuit was designed with input from Chloe Ball-Hopkins, a Paralympian. Target has introduced such apparel to its assortment for toddlers as well as children with disabilities. Zappos has launched a similar line. Kohl’s will debut clothing for disabled children in its three biggest children’s brands.
Adaptive clothing, as it is called, can be very expensive, and Target keeps prices down by leveraging fabric that it has in production as well as making large quantities of clothing. Target also debuted Halloween costumes such as a princess costume that has a wheelchair cover that has a carriage-like appearance. The retailer took in insights from shoppers as well as organizations such as the National Federation of the Blind and Pageant of Hope, which has beauty pageants for children who have disabilities, when it launched its adaptive line.
Slowdown in world economy feared this year
The world economy will expand by just 3.3 per cent this year, says the National Institute of Economic and Social Research. Global markets remain vulnerable to shocks in confidence or sentiment this year.
The main reason is the US’ trade battle with China. The US has imposed tariffs on Chinese goods, and China has responded in kind by targeting US exports. As well as reducing trade between the two countries, this has also damaged confidence and made companies worldwide more wary. Other problems include a surge in oil prices.
When oil prices rise, the economy takes a hit because firms and consumers have to pay more for the fuel and therefore have less cash to spend elsewhere. The European car market has stumbled, too, with sales slumping 7.9 per cent in June compared to a year earlier. Huge numbers of customers are abandoning diesel due to fears over the amount of pollution it causes. Car manufacturing is hugely important to the European economy. The damage done has been felt particularly keenly in Germany, where growth is expected to be just 0.5 per cent this year. In the developing world, the collapse of Venezuela's economy and a currency crisis in Turkey have also caused damage.
World cotton production to rise five per cent
World cotton production next year is expected to be five per cent above last year.World cotton mill use is forecast to resume its growth after a 1.3 per cent decline last year. Global cotton consumption is projected at 2.6 per cent above last year. Mill use is projected to increase in each of the leading raw cotton spinners, with China accounting for nearly one-third of the world total. Cotton production projections for the major-producing countries are mixed, with the increases more than offsetting the decreases. World cotton harvested area is forecast at 3.5 per cent above this year.
Global cotton production continues to be concentrated in a few countries. The top five cotton-producing countries are forecast to account for more than 78 per cent of total production. India is forecast to be the leading producer, contributing to 23 per cent of global production. India is projected to produce 29 million bales of cotton, nine per cent above last year. Area under cultivation is forecast to be unchanged.
China and the United States are projected to account for 22 per cent and 17 per cent respectively. Brazil is expected to contribute ten per cent and Pakistan six per cent. Pakistan’s crop is driven by higher area and a nearly unchanged yield.
US footwear event Materials Show in August
Materials Show will be held in the US, August 6 to 7, in Portland, Ore. and August 14 to 15, in Willmington, Mass. Buyers, designers, and thought leaders in the footwear industry can mix, mingle and source material and components. The semi-annual Materials Show is one of the most forward-thinking trade expos in the industry. Footwear designers seek out inspiration for upcoming seasons, and buyers source the practical components, textiles and processes they need to turn those designs into reality.
The event is designed to position attendees and exhibitors at the forefront of what’s happening in the footwear industry. This is the only event in the US focused on helping professionals better understand current and emerging materials and development at an in-depth technical level.
Attendees will participate in sessions led by suppliers and professors with decades of material expertise. Materials and innovation leaders from top footwear companies will discuss current trends, challenges and best practices. Attendees can tour textile development labs, learn about new materials, and explore how to better manage cost and quality issues. Presentations will explore key socio-cultural and aesthetic influences uncovered through extensive research and summarize the mindsets, desires, societal pressures, and other factors brands should expect to see exerting a force on the market in three or five years.
Consinee offers wide yarn capabilities
Consinee is China’s largest spinner and exporter of cashmere yarn. Using advanced manufacturing techniques, Consinee has a full-range of ready-to-wear and luxury cashmere yarn capabilities.
The company produces and sells nearly 10,000 tons of high-grade yarns and fabrics annually, including cashmere and other natural raw materials, of which 100 per cent cashmere yarn exceeds 2,000 tons, accounting for 20 per cent to 25 per cent of the world’s pure cashmere raw material production. Founded in 1999, the group is the only large textile yarn manufacturer in China that uses a new imported automation assembly line. In 2017, Consinee, in cooperation with Siemens, became the only enterprise in the textile industry to build a fully intelligent digitization system served by unmanned aerial vehicles. Among Consinee’s customers are Ralph Lauren, Calvin Klein, Burberry, Hugo Boss, Max Mara, Chanel and Hermès.
This is the first textile company in China to introduce a recycled production line from Italy. Currently, Consinee sustains two raw material production lines imported from Italy that produce 400 to 500 tons of high-grade natural recycled yarns annually. Consinee is also the first enterprise to advocate conscientious caring for animals and protection-pasture plants. It serves as one of the sponsors of ICCAW, the international cooperation committee for animal welfare.
India undecided on China after RCEP
In view of the Regional Comprehensive Economic Partnership (RCEP), India is looking at different arrangements to give the minimum tariff cuts to Chinese goods and delay the concessions by as many years as possible.
India has considered duty cuts on Chinese goods over a maximum 25 year period. Industries like steel, copper, textiles, aluminium, engineering, pharmaceuticals, leather and food have expressed fears about Chinese dumping. While the textile industry has sought protection of cheap manmade fiber imports from other RCEP members, the auto industry wants 28 sensitive automotive tariff lines to stay on the negative list for all member countries. The aluminium industry wants aluminum and its articles in the negative list or the exceptions to products they want to open up for imports under RCEP and the copper association has sought zero duty on copper ore and concentrate to prevent an inverted duty structure.
RCEP is a regional trade agreement spanning the ten Asean countries and the group’s six free-trade agreement partners — Australia, New Zealand, Japan, China, South Korea and India. Though talks on seven of the sixteen chapters of the agreement are complete, the key areas of goods, services and investment are still being negotiated. India wants to know the number of years various industries need to give zero duties to imports from RCEP countries especially China.
Rising costs, protectionist policies top business challenges in 2019
A report from the US Fashion Industry Association lists, rising production and sourcing costs and protectionist trade policies have emerged as the fashion companies' top business challenges in 2019. According to the survey, the number of companies holding a positive five-year outlook dropped from 84 per cent in 2018 to 64 per cent in 2019.
The report also noted around 83 per cent of the respondents to the survey plan to reduce their sourcing from China. Only 6.7 per cent of respondents plan to "reduce sourcing significantly" however, demonstrating the continued business value of maintaining a presence in China. Half of the respondents said their Chinese vendors lowered prices in an attempt to keep from losing customers to Vietnam, currently the alternative manufacturing country of choice.
According to the report, during 2018, American fashion brands and retailers paid more than $12 billion in tariffs on apparel and home textiles and another $3 billion on imported footwear. In spite of these costs, the effect on US reshoring has been negligible. The trade war has increased the production costs of textiles and apparel 'Made in the USA,' and to cover these costs these brands will have to increase their prices.












