FW
China’s May exports of textiles and garments higher than last year
China’s textile and garment exports fell 2.88 per cent in January to April this year compared to the same period last year. Exports of yarns, fabric and related products were up 1.41 per cent year on year. Exports of garment and accessories were down 5.5 per cent year on year.
However, in May 2019 China’s textile and garment exports were up 1.65 per cent over the same period last year. Export of yarns, fabric and related products increased by 3.55 per cent compared with the same period of 2018. And exports of garment and accessories were down 0.11 per cent year on year.
Compared with the sharp growth and apparent slowdown in textile and apparel exports from January to April, China’s textile and garment exports stabilized in May, and the export performance was better than expected. Even in the face of the uncertainty brought about by the Sino-US trade war, the Chinese textile industry still reflects strong resilience and international competitiveness. China for instance continues to be a major supplier of innerwear like cotton and manmade fiber underwear as well as bras. This is likely attributable to the combination of the specialty manufacturing and materials needed to produce these items compared to more basic apparel.
Bemberg opens new showroom in New York
Bemberg, the sole maker of this one-of-a-kind, matchless, high-tech natural material, opened its new Bemberg™ Lining Showroom in New York. This is the first showroom totally dedicated to unique, high quality Bemberg lining fabrics. The initial focus will be on a homeland supply of Japanese-made lining manufacturers, introducing them to the market in a new and dynamic way.
The showroom was hosted by CHH America, whose remit will be to communicate the advantage and values in choosing Bemberg™ for the best linings option, and how its unique, responsible profile can add quality and brand value appeal to tailoring based apparel brands, designers and upcoming fashion students. The unique offer from this showroom is a dedicated new stock service, managed by CHH, where they will deliver even small meterage on demand.
In addition to this service, Bemberg™ is presented a full range of new fabric innovations at Premiere Vision New York. These include manufacturers from around the world including SMI, Sidonios, Ekoten, Ipeker and Silver from the US, as well as the luxury linings already installed at the showroom.
Hohenstein awarded with the ECOfit certificate
Hohenstein has been presented the certificate for the Baden-Württemberg support programme ECOfit alongwith four other certified companies. The certificate was presented for the company’s new laboratory ventilation system which saves almost 100 tonne of carbon dioxide per year. Another unusual feature at Hohenstein is the installing of nesting aids for woodpeckers: these provide the birds with new habitats and at the same time prevent permanent damage to the building façades.
Since April 2018, Hohenstein has taken part in eight ECOfit workshops with companies from the Ludwigsburg region. Together they developed individual actions for better company environmental and climate protection. An inspection was then carried out by an independent commission.
Lectra acquires 100 per cent rights of Retviews
Lectra has signed an agreement with shareholders of the Belgium company Retviews to acquire 100 per cent of capital and voting rights. The transaction involves the acquisition of 70 per cent of Retviews for €8 million today. The acquisition of the remainder of capital and voting rights will take place in three times in July 2020, July 2021 and July 2022 for amounts of about 0.9 times 2020 revenues, 0.7 times 2021 revenues and 0.5 times 2022 revenues, respectively. These amounts will come from Lectra’s available cash, with no financing from the bank.
Founded in 2017, Retviews has developed an innovative technological offer that enables fashion brands to analyse real-time market data, in order to increase their sales and margins. Today, more than 30 brands use Retviews in France and Belgium. By uniting with Retviews, Lectra aims to help customers to quickly enter the era of Industry 4.0. Thanks to artificial intelligence algorithms, Retviews’ offer enables brands to make the best decisions at every moment throughout the life cycle of a product, in order to optimise their collections Together, the two companies will create synergies with Lectra’s current offer, develop their technology and market their solution to fashion customers worldwide, thanks notably to Retviews 32 sales and services subsidiaries covering more than 100 countries.
Trade war impacts global cotton trade
The China-US trade war has adversely impacted the world cotton market. The trade war not only impacts the raw cotton market, it shifts the buying logistics for cotton yarn and the fabric markets as well. When the cotton market falls, demand is usually stimulated. Futures prices have moved with the progression of the trade war. For some reason, this drop in the futures market hasn’t stimulated that demand.
China needs cotton. In 2014, its stocks were approaching 67 million bales, of which 51 million were reserves. Those reserves have been reduced. Chinese cotton buyers are loving the huge crop Brazil had last year. Brazilian cotton producers grew 12.8 million bales of fiber — averaging almost 1,500 pounds an acre-- in 2018. From 2014 to 2016, Brazil was harvesting only six million to seven million bales but is anticipated to press 12 million bales this year. Brazil consumes only 3.7 million bales domestically, so much of its cotton is aimed at the export market. In 2016, Brazil exported 2.8 million bales, but this year is anticipating shipping over eight million bales. This has put a damper on Chinese demand for US cotton. Brazil will ship more cotton to China — once the United States’ largest cotton customer.
New guidelines for denim making released by Ellen MacArthur Foundation
New guidelines are laying out better denim manufacturing practices that focus on garment durability, recyclability, and traceability. The popular denim pants of today are a far cry from the tough work wear that they were originally designed to be, and are often so stretchy, distressed, and heavily dyed that they last a fraction of the time that their less-trendy predecessors did.
In an effort to fix this problem, the Ellen MacArthur Foundation has released a set of guidelines. The guidelines strive to tackle waste, pollution, and other harmful practices in the denim industry. They set out minimum requirements on garment durability, material health, recyclability and traceability. The guidelines are based on the principles of the circular economy and will work to ensure jeans last longer, can easily be recycled, and are made in a way that is better for the environment and the health of garment workers. A pair of jeans should be so designed it can withstand at least 30 washes. The garment should include clear product care information on labels; contain at least 98 per cent cellulose fibers made from regenerative, organic or transitional farming methods; should not contain metal rivets or keep these to a minimum; and should be easy to disassemble for recycling.
Indonesia fumbles with modest fashion
Indonesia has struggled to penetrate the global modest fashion market. A heavy focus on its large domestic market and lack of attention to exports had caused the country to perform poorly. E-commerce companies fail to pay designers. Unethical event organizers ask clients to pay upfront for a show, than fail to deliver. Indonesian designers are often unable to follow through when it comes to fulfilling orders. Products are sometimes rejected because they fall short on quality, with sloppy workmanship such as poorly finished seams and stitches among the most common complaints. Indonesian designers do branding and don't focus too much on selling. Indonesian designers are unable to scale up output to meet growing overseas demand.
Established textile manufacturers are more interested in mass production than producing smaller runs of designer clothes. Highly skilled seamstresses are scarce. Indonesian designers typically focus on ethnic wear and bold colors, which although appreciated by the domestic market often don’t resonate with customers in more conservative Middle Eastern countries, or with those in Muslim-minority western nations who don't want to stand out from the crowd more than they do already.
Modest fashion can be worn for religious or cultural reasons, or by women who just prefer to dress conservatively.
India and China consume more than exports
The share of goods traded across the border in both India and China has fallen by 5.6 percentage points. This decline does not reflect trade disputes or hint at an impending slowdown. Instead, it reflects healthy economic development in China, India and the rest of emerging Asia. More goods are consumed domestically than exported. As consumption rises, more of what gets made in these countries is now sold locally instead of being exported to the west. Over the decade from 2007 to 2017, China almost tripled its production of labor intensive goods. At the same time, the share of gross output China exports has decreased from 15.5 per cent to 8.3 per cent. As wages rose in China, and the country moved into higher-value activities, its share of global exports of labor-intensive goods declined by three percentage points. India has similarly been exporting a smaller share of its output over time.
In 1997, Asia accounted for only 36 per cent of the 5,000 largest global firms but by 2017, that share was up to 43 per cent. The countries represented in this group also drastically changed. China accounts for the biggest increase by far. The number of Indian firms in the top 5,000 global firms list has shot up to 142 from 25 during 1995-97.
Indian cotton yarn exports down 22 per cent
Cotton yarn exports from India fell 22 per cent in the first quarter. Global cotton yarn demand is under stress as GDP growth in China has fallen and there are recessionary trends in major cotton markets including Bangladesh. The slide in exports of cotton yarn is worsened by low margins in the Indian cotton market due to higher domestic prices. Indian cotton yarn manufacturers are losing due to China’s grant of duty-free access to Pakistan and Vietnam.
India is the world’s largest exporter of cotton yarn and has major markets in China, Bangladesh, Pakistan, Vietnam and South Korea. Yarn exports to China account for a third of total yarn exports from India. Exports to Vietnam increased by 72 per cent in the last year. This year, yarn exports to China, Bangladesh, Pakistan and the European markets are down. Millers who are turning to the domestic market are feeling the heat due to a spike in duty-free garment imports from Bangladesh. Imports of garments from Bangladesh have jumped 82 per cent, much of it made from duty-free fabrics coming from China.
Cotton spinning mills in India are resorting to partial shutdown as a squeeze in demand from China and Bangladesh has resulted in accumulated yarn stocks.
Abuses damp Myanmar’s record
Though Myanmar’s garment exports make up around 10 per cent of the country’s export revenues, this strong growth is at risk due to several factors. The country is yet to develop an efficient legal and institutional framework to establish sound labor market governance. There are limited opportunities for women already working in the sector to learn new skills or to seek a promotion. Factories generally lack formal policies and processes to effectively identify and address workplace harassment and abuse. There are concerns about abuse from managers, limited toilet breaks and unbearably hot working conditions. Though trade unions have the right to organise strikes in Myanmar, heavy handed tactics to deal with protests have painted the garment industry in a negative light. The European Union’s potential withdrawal of its Everything But Arms trade preference scheme has cast an even bigger shadow over the industry, especially with 60 per cent of Myanmar’s garment exports heading to the EU. Concerns about labor rights have led the EU to review Myanmar’s access to the European market.
Still, Myanmar’s garment industry has cemented itself as an important engine of sustainable development. With minimum wages lower than those of China, Cambodia and Vietnam, Myanmar has attracted orders from international retailers.












