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In fiscal 2018, Bangladesh’s readymade garment exports to India were up 115 per cent compared to exports in fiscal 2017. Of the total amount, earnings from knitwear products were 89.75 per cent higher than the same period a year ago. Earnings from woven products were up 124.79 per cent.
Also, since India has raised duties on clothing imports from China, this has opened an opportunity for Bangladesh readymade garment exporters. India has doubled import duty on about 328 textile and apparel products from China. As a non-traditional export destination, India is a potentially great market for Bangladesh. It is logical if India’s textile products imports from China decrease, Bangladesh can grab the space.
Since India has a large population and a growing middle-income group, there is scope for exports from Bangladesh to Indian markets to see a sharp rise. Bangladesh already enjoys duty and quota-free market access to Indian markets. Now Bangladesh manufacturers have to develop good relations with global retailers, who are opting to open outlets in India. Non-tariff barriers are a great challenge for Bangladesh in penetrating Indian markets.
In the last fiscal year, Bangladesh’s export earnings from the apparel sector were 8.76 per cent higher compared to previous year earnings.
Readymade garment manufacturers from Bangladesh and Sri Lanka teaming up to develop eco-friendly jute-based garments with help from a design school. Known to be competitors in the apparel industry, Sri Lanka and Bangladesh are currently discussing how the clothing market is evolving beyond polymer. These have reportedly been initiated by MAS’ Mahesh Amalean and Brandix’s Ashroff Omar, the two largest apparel exporting companies in Sri Lanka with operations in India, Bangladesh, Vietnam and the USA.
The discussion between industry leaders of the Sri Lankan and Bangladeshi apparel sectors is a positive sign on increasing trade between them. Manufacturing jute-based apparels would undoubtedly result in an expansion in Sri Lanka’s apparel sector into other markets of South Asia. Foreign companies interested in doing business in Sri Lanka could explore opportunities in the country’s apparel sector and also look at setting up base to venture into the Bangladeshi apparel sector.
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), has urged Prime Minister Imran Khan to declare ‘export emergency’ in the country to control the decline in export sector. Pakistan’s current account deficit surged over 40 per cent in fiscal year 2018-19 to $18 billion. Low export is a major reason for the growing trade deficit, with the prime minister forming committees to address the deficiency. Value-added textile exporters want the federal government to formulate separate policies for various sub-sectors of the textile industry in order to resolve their sector-specific issues and problems.
As per Sheikh Luqman Amin, Senior Vice-Chairman, PRGMEA, different sub-sectors of the country’s textile industry cannot be treated equally due to their varying needs and requirements. Hence, the new government and textile ministry should formulate separate policies for the value-added and other sub-sectors of the industry in order to facilitate improved production and export.
Amin believes value-added textile exporters are facing a severe problem in meeting the export orders due to multiple reasons. These include: seeking the attention of the government on issues of ease of doing business; cost of doing business, one window operation, minimum interference of bureaucracy and formulation of a counsel of all stakeholders to resolve the issues of exporters. He stressed on the need for early clearance of outstanding refund cases.
"As India aims for 20 per cent yearly growth in exports over the next decade, Indian manufacturers need to develop a business strategy that can help the country to succeed in the US and European markets. In 2025, global trade in the textile and apparel market will cross $1.2 trillion. China has nearly 40 per cent share in global exports. However, in the past few years, the country is experiencing a downward trend in apparel exports and has vacated nearly $30 billion worth of space in global trade. Growth in global trade and China’s shrinking exports share present a lucrative opportunity for other countries with competitive manufacturing facilities. India can become one of the biggest gainers in the changing landscape of global apparel trade. Drip Capital offers insights into some of the intriguing aspects that can make India a global textile destination."
As India aims for 20 per cent yearly growth in exports over the next decade, Indian manufacturers need to develop a business strategy that can help the country to succeed in the US and European markets. In 2025, global trade in the textile and apparel market will cross $1.2 trillion. China has nearly 40 per cent share in global exports. However, in the past few years, the country is experiencing a downward trend in apparel exports and has vacated nearly $30 billion worth of space in global trade. Growth in global trade and China’s shrinking exports share present a lucrative opportunity for other countries with competitive manufacturing facilities. India can become one of the biggest gainers in the changing landscape of global apparel trade. Drip Capital offers insights into some of the intriguing aspects that can make India a global textile destination.
The prerequisites
Today, fair trade has become a prerequisite to sustain globally. Fair trade advocates expect that everyone in the
value should earn enough to fulfill basic household needs, regardless of volatile market prices. Environment sustainability is also a big concern and consumers in the West want products that are made judiciously. Indian manufacturers can stand out by positioning themselves as practitioners of Fairtrade. Environmental stewardship and labour-friendly working conditions can become India’s USP.
If India is to achieve close to 20 per cent yearly growth in apparel exports, manufacturers have to invest in skills training and process improvement to match global competitiveness. In recent times, there has been increased focus on skill development but these initiatives need to scale up. If the Indian garment industry remains at same productivity levels, they would need 35 million more workers to fulfill the new demand, which is nearly impossible. The objective should be to match the productivity levels of China in a few years, average output per hour and per machine output both in terms of quality and quantity. Indian policies make it difficult to import the fabric needed to produce winter or some specific garments. Locally, the textile industry is focused on cotton which leaves the exporters with no material to produce such products. This policy to protect the demand for local cotton producers is perhaps doing more than good.
"A new report by Changing Markets Foundation on sustainability has yet again brought fast fashion retailers under scanner as the biggest pollutants. The report concludes that many firms are still not doing enough to ensure sustainability of their textile supply chains. While there has been bold leadership from some retailers, a large part of the industry has still not demonstrated willingness to engage on the issue or set out policies on viscose production. These include: Burberry, Ikea, Missguided, Gucci, and Prada, as well as supermarkets such as Sainsbury's, Lidl, Morrisons and Asda."
A new report by Changing Markets Foundation on sustainability has yet again brought fast fashion retailers under scanner as the biggest pollutants. The report concludes that many firms are still not doing enough to ensure sustainability of their textile supply chains. While there has been bold leadership from some retailers, a large part of the industry has still not demonstrated willingness to engage on the issue or set out policies on viscose production. These include: Burberry, Ikea, Missguided, Gucci, and Prada, as well as supermarkets such as Sainsbury's, Lidl, Morrisons and Asda.
Viscose is a soft semi-synthetic fibre commonly used to make lighter clothing and is the third most-used fibre in the textiles industry after polyester and cotton. It is created from cellulose that is chemically extracted from trees, a process that requires hazardous chemicals. A number of major producers have been accused of failing to follow adequate health and safety processes, leading to pollution from production processes impacting surrounding water and soils.
Some well-known UK fashion retailers are sourcing viscose fabric from two factories in Indonesia and India,
which have been accused of polluting their local environments and harming human health with toxic chemicals. As per Changing Markets Foundation, if managed properly, viscose has the potential to be a largely sustainable fibre as it is made from plant matter and is biodegradable.
Path to sustainability
Changing Markets Foundation has set up a roadmap for sustainable viscose sourcing. Seven brands have signed up so far and started engaging with their supply chains on how to guard against the risk of viscose-related pollution. Inditex, Asos, Marks & Spencer, H&M, Tesco, Esprit, and C&A are the first signatories. Next has reportedly indicated plans to commit to the roadmap, which sets out best available techniques for viscose production in the near future.
Carmen Chan, Senior Sustainability Manager-F&F Clothing line, Tesco, says while she understood the complexity of the environmental challenge of viscose, it was not possible to tackle it alone. Collaboration is the key to help transform the textile and clothing industry. M&S has stated it will not source from any man-made cellulosic fibre suppliers which do not transition to a closed-loop manufacturing system by 2023-25, explaining such a system should recycle the majority of chemicals used during the production and prevent the process from negatively impacting human health and environment.
Phil Townsend, Sustainable Raw Materials Specialist, M&S says the roadmap was an important step forward in reducing environmental impact of viscose for making clothes. However, the industry needs to work together to create positive change and achieve the Changing Market Foundation's goals. Ikea has stated that it is working towards a goal that all Made Cellulose fibres shall come from responsibly sourced wood and be produced having minimum environmental impact to land, air and water.
The two largest viscose producers in the world, Austria's Lenzing and India's ABG, have both now committed to making all their sites meet EU Ecolabel requirements for production. In China, the country's 10 largest producers have joined together to form the Collaboration for the Sustainable Development of Viscose and are developing a 10-year roadmap for improvement, the report said.
Many more to achieve…
Natasha Hurley, Campaign Manager, Changing Markets Foundation says the onus was on manufacturers and their customers to turn commitments to improve their supply chains into detailed plans and ensure transparent reporting of their performance, including complaints and grievances. After many years of complacency from fashion brands and producers with regard to the environmental impacts of viscose manufacturing, the tide is finally beginning to turn towards more responsible production methods," she said. But the unlikely bedfellows of luxury brands and discount retailers continue to ignore an issue that is blighting people’s lives and the environment. What's more, most luxury fashion brands are failing to publicly disclose supply chain information. This is unacceptable. It’s time for them to wake up to transparency and sustainable fashion.
Huafu Fashion has opened the world's largest textile mill for spinning colored yarn in northwest China's Xinjiang Uygur Autonomous Region. Built with an investment of 5 billion yuan ($735 million ), the mill in Aksu, southern Xinjiang, will install 1 million spindles by the end of the year. The company has also built a dyeing industrial park in Aksu with an investment of 2.5 billion yuan. The park has the capacity to dye and print 100,000 tonnes of cotton yarn a year.
As the largest cotton growing region in China, Xinjiang has attracted major textile companies from east and south China to set up branches and factories. These include Aksu, Kashgar and Hotan in southern Xinjiang. Aksu's long-staple cotton output accounts for 93 percent of the country's total.
As of 2017, there are more than 2,700 registered textile companies in Xinjiang, which have provided jobs for more than 350,000 local residents. Huafu has 5,333 hectares of cotton growing fields in Xinjiang. Its annual cotton trade and logistic volume has reached 500,000 tonnes.
Uzbekistan, will organize a textile conference on September 4 to be attended by over 30 textile companies from over 30 countries. The conference will address the latest trends in industry, development of international textile technologies, certification and digital marketing, smart textile research projects.
Uzbekistan is the world’s sixth largest cotton producer. It is taking steps to increase the volume of cotton fiber processing. A textile factory is coming up. The factory will annually produce 10,000 tons of polyester fiber, 10,000 tons of polyester yarn, 20 million running meters of mixed fabrics and 7,000 tons of blended linen.
The country is already a strong producer of raw cotton and yarns. It has signalled its intent to foster advances in both technology and the range of activities by its textile manufacturers. Uzbekistan is ready to take its textile manufacturing capabilities to the next stage by investing in the latest technology for downstream processes of fabric manufacture, finishing and make-up.
The country intends to implement 132 investment projects in the textile industry, half of which will be financed through foreign investments and loans, by the end of 2019. In particular, 112 modern, high-tech industrial factories will be created and 20 operating capacities will be expanded, modernized and technologically upgraded.
Denim is on the upswing in the US. Retailers are starting to rebuild their denim assortments. So far this quarter, there’s 42 per cent more denim product in stock than this time last year. In terms of growth, leggings continue to outpace denim though the denim market is double the size of the leggings category.
Price points have increased considerably since 2014, creating a more competitive denim market. The average price point for men’s jeans in the US is up 20 per cent this quarter, and prices for women’s denim have increased ten per cent. Skinny jeans still represent 58 per cent of women’s jeans. Straight leg jeans come second followed by cropped and ripped. Other silhouettes that have gained since 2016 are cropped, culotte, mom and wide.
Wide leg jeans that hit just above the ankle have been an area of focus for brands like Madewell and Everlane. Finished hems, frayed hems, and black and white denim have performed well. Flared jeans are also gaining momentum with consumers. Flared shaping on skinny styles is the most versatile, but high-waist wider cuts bring a refreshing hit of newness.
Apart from jeans, others like denim outerwear, dresses, shirts, shorts and skirts have grown 12 per cent in the last month.
Turkey plans to achieve textiles exports worth $500billion by 2023. As a part of this plan, the country is seeking to make a number of investments and improvements in the sector. The government plans to add 13,000 km roads as well as 12,000 km new railways to allow easier shipping. It also plans to increase the number of logistics centers from 8 to 21 over the same period. This will help maximise the rate at which goods can be exported to the EU as a way to try and mitigate higher labor costs.
Another way Turkey plans to increase export value is by increasing the amount of specialised materials that the country is able to produce, along with raising the general quality of all textile goods. The government has put forth economic incentives to encourage research and development through grants and subsidies, aiming to of spend 1.8 per cent of the GDP on R&D by 2018 and to 3 per cent by 2023.
The government also plans to decrease the number of unofficial employees in the economy. This will be achieved by focusing on female employees in the garment industry who largely work as sub-contractors or out of the home. A framework has been laid out to increase the number of part-time positions, traineeships, and daycare centers that would allow for greater flexibility.
Indian textile and clothing exports increased 11 per cent in July 2018 over July 2017. Overall exports growth during April-July 2018 was three per cent vis-a-vis the same period last year. Production of manmade fiber grew five per cent in the same four month period of the last fiscal. Similarly, spun yarn grew 1.1 per cent during the said period as against the same period last fiscal. Fabric production grew by 2.5 per cent.
Being the single largest industrial employment provider with 10 crore people, the textile sector has benefited with continuous support from a slew of measures on all fronts. Import growth has come down significantly. While imports of textile and clothing grew five per cent from April-June 2017 to the same period this year, it is significantly lower than the growth of 16 per cent last year.
Measures taken to increase import duty on various textile and apparel goods will help in further reducing imports in coming months. Devaluation of the rupee by nine per cent in the last few months has made the industry competitive globally and imports dearer. The import duty on about 400 products has been enhanced, providing relief to the industry which was hit by huge imports post GST due to import barriers’ reducing significantly.
