Guatemala is preparing for an increase in business from the United States-based apparel brands that might need to shift sourcing partnerships away from China. With demand for sustainable sourcing from apparel brands, mills in the region are preparing to meet that need. Guatemala’s textile industry is more high end. The quality—whether in fabric or sewing and cutting—is a lot higher than other parts of Asia or even in Honduras or Haiti.

A hot topic of discussion at the 28th annual Apparel Sourcing Show, held from May 14–16 at the Grand Tikal Futura Hotel and Convention Center, was the escalating United States–China tariff war and greater sustainability options across the supply chain. Exhibitors with sustainable offerings were able to accommodate the growing demand for eco-friendly supplies. Liztex, one of the largest textile manufacturers in Central America, located in Amatitlán, Guatemala, saw strong trend toward producing fibers from recycled sources.

But while Guatemalan companies are excited about a growing opportunity to increase apparel and textile production, they are also concerned about whether their country can compete with China’s enormous production capacity. Investments to expand the country’s capacity would be necessary to accommodate demand that could result from the trade war.

Voltas and Shima Seiki have opened an experience zone in Tirupur. The zone has state-of-the-art machines that not only help customers understand total fashion and whole garment technology but will also act as a local center for education, hands-on training and post-sale support center. The foremost objective of the experience center is to make the customer experience whole garment machines and find for themselves the various possibilities to make the whole range of garments directly from machines. This innovation will help the industry save time as the garment is manufactured by the machines directly from the yarn. Whole garment machines can also give remarkable fashion and meet all quality guidelines in terms of grip, finishing and more. The experience zone also is equipped with a hands-on lab with a high-tech total fashion system where customers can design their virtual sample in the computing device provided in the lab and in the process the time for sample-making is reduced. Currently customers have to go through multiple levels of approvals.

After the experience center in Ludhiana, Tirupur has the second experience center by Voltas which is looking at opening a similar center in New Delhi, Mumbai and Kolkata.

Leading denim producer Isko will enter a new market in the United States next month when it introduces Isko Vital, a four-way-stretch fabric that provides compression technology. After launching the fabric for European customers during the International Trade Fair for Sports Equipment and Fashion in Germany in February, Isko is currently in discussions with brands to integrate Isko Vital into their designs. At the Outdoor Retailer trade show in Denver June 18–20, the Inegöl, Turkey–headquartered Isko will unveil Isko Vital to the North American market.

The company says it is now ready to unveil Isko Vital stateside as the first woven fabric to offer a compression-technology system of this kind. Using its existing Blue Skin fabric, which has been used in the company’s denim, Isko created Isko Vital by blending this textile with polyester and Lycra. The material stretches in four different directions, giving 360-degree freedom of movement.

While Isko focused on developing a more technologically advanced performance fabric, the company remains committed to sustainable practices. A recipient of the Nordic Swan Ecolabel and the EU Ecolabel for pieces in its Earth Fit denim collection, Isko is also a member of ZDHC (Zero Discharge of Hazardous Chemicals), the Amsterdam-headquartered group that challenges companies to eliminate hazardous chemicals throughout the supply chain.

As a member of the global apparel-manufacturing community, the company recognises its responsibility to ensure that its fabric is created with sustainability in mind. Noting that consumers are demanding more from companies, in addition to the lack of brand loyalty among generations Y and Z, Cortazzi recognizes that her company must distinguish its products from the competition by offering eco-friendlier options.

The new Inditex CEO is Carlos Crespo. He will lead technology (systems, data and digital), IT security, logistics and transportation, construction and works, legal, procurement and sustainability. In addition, he will be responsible for defining the company’s global strategy. Crespo joined Inditex in 2001, when he was in charge of accounting within the financial administration department. After having been tasked with the administrative management of stocks in the group’s logistics centers, Crespo was put in charge of internal auditing in 2015. In 2018, he was promoted to the position of general director of operations.

Inditex, the owner of Zara, is the world’s biggest clothing retailer. Unlike many in the troubled apparel sector, Inditex, based in Spain, has been able to avoid heavy discounting thanks to its tightly controlled inventory and its ability to get looks on sale in a few weeks allowing it to respond to fast-changing trends. The company launched Zara online in 106 new markets in November and benefited from favorable comparisons to unseasonably cold weather last year. The company operates with a very special kind of business model. Every division commits initially to a small quantity for fashion merchandise and then replenishes it in response to customer demands and preferences.

For the first four months of the year, Coats’ sales rose two per cent on both a currency-neutral/organic basis. The fashion sector was key to business in the period as the rise was driven by its strength in its apparel and footwear unit as well as in performance materials. The two per cent growth in apparel and footwear unit came as underlying retail markets remained mixed but overall supportive. It saw a robust performance in the core thread business, which grew three percent as it continued to deliver high service levels to customers. Geographically, key Asian markets performed best, with some offset in Latin America.

The four per cent growth in performance materials was driven by double-digit rises in hi-tech end uses (for example, wire and cables, including Gotex), with some ongoing offset from traditional end use segments in North America, as well as the phasing of certain customer programs.

Thread leader Coats entered 2019 in a strong position, with continued positive momentum in its core apparel and footwear and hi-tech performance materials businesses. While the company remains cautious around the current macroeconomic uncertainties, based on its current assessment of business trends it anticipates delivering 2019 full-year performance.

Bangladesh has not been receiving high prices for its garments. The main reason is its exports of products like woven shirts and bottoms have many competitors. To get better prices Bangladesh apparel manufacturers need to make value-added apparel items and improve their negotiation skills. As buyers have alternatives, they pay low prices. Competitors like Myanmar and Ethiopia manage better prices than Bangladesh.

After the Rana Plaza building collapse Bangladesh’s apparel sector has improved a lot. Apparel manufacturers are working to brighten the image of the country and have been following compliance strictly and strengthening workplace safety. But the positive image has not been projected properly in the West. Only 20 per cent of the exports now are value-added garment items. Bangladesh will get more prices if it manufacturers outwear, lingerie, jackets, suits etc. The ease of doing business has to be substantially improved. At the moment Bangladesh is one of the lowest performers on ease of doing business. At the moment Bangladesh is one of the lowest performers in the World Bank’s ease of doing business index. It is 176 out of 190 countries. The country needs improving its rankings. Human capital transformation is a must as the efficiency level of workers is enhanced. It is nearly 50 per cent whereas in other countries it is 80 per cent.

Clothes from India and Pakistan dominate Bangladesh’s apparel market ahead of the peak sales season of Eid-ul-Fitr thanks to their affordability and attractive designs. Many consumers, especially women, prefer foreign dresses. From comparatively cheaper shopping destinations like New Market, Gausia and Chandni Chowk to posh shopping malls such as Bashundhara City, Pink City and Jamuna Future Park, people are flocking everywhere in search of suitable foreign dresses. Besides, some aristocratic fashion houses including Shoppers World, Nabila, Prem’s Collections, Zaara, Vasavi and Style Sell are also selling foreign dresses. Once the business of foreign dresses was limited to the capital and other big cities of Bangladesh, but now this trade has spread even to the village areas.

So Eid shoppers in Bangladesh are buying Pakistani salwar suits, lasas and shararas, Thai jeans, T-shirts, shirts, lasas, tops, and palazzos, Chinese gowns, skirts and children’s wear and Malaysian skirts, tops and hijabs.

Among men’s wear Indian punjabis and kurtas, Pakistani punjabis and kablis, and Chinese shirts and pants are also on the priority list. Especially the demand for Indian saris, salwar kameezes, lehengas, kurtis and tops is high. Bangladeshis still prefer to make round trips to India for Eid shopping. This time, an estimated 1,50,000 shoppers are expected to travel to the neighboring country.

Aarvee Denims & Exports has posted net profit of Rs 0.39 crores for the period ended March 31, 2019 as against Rs 0.32 crores for the period ended December 31, 2018. The company reported net sales of Rs 180.96 crores during the period ended March 31, 2019 as compared to Rs 176.94 crores during the period ended December 31, 2018. The company has reported EPS of Rs.0.16 for the period ended March 31, 2019 as compared to Rs.0.14 for the period ended December 31, 2018.

The company reported net sales of Rs 180.96 crores during the period ended March 31, 2019 as compared to Rs 226.54 crores in the same the period last year. It clocked in a net profit of Rs 0.39 crores for the period ended March 31, 2019 as against Rs 0.81 crores for the period ended March 31, 2018.

"The US-China trade war and other disruptions like labor issues in Cambodia and political unrest in Central America have deeply impacted sourcing patterns in America. An analysis of the country’s men’s wear imports and shifting production proclivities reveals that the emergence of certain countries or regions as specialists for import of certain products over the years."

The US-China trade war and other disruptions like labor issues in Cambodia and political unrest in Central America have deeply impacted sourcing patterns in America. An analysis of the country’s men’s wear imports and shifting production proclivities reveals that the emergence of certain countries or regions as specialists for import of certain products over the years.

Mexico emerges top jeans supplier

As per the data from the Commerce Department’s Office of Textiles & Apparels, Mexico emerged as the top supplier of men’s and boys’ blue jeans to the US in the first quarter of 2019. The country held a 36.81 per cent share of US imports of the category for the year. Despite the uncertainty over the fate of the US-Mexico-Canada Agreement (USMCA), jeans imports from Mexico increased by 16.64 per cent to $172.19 million during the January to March period. The country holds a 5.73 per cent share of the women’s and girls’ blue jeans import market, currently dominated by China, Bangladesh and Vietnam.

Bangladesh and China are the next two biggest suppliers of men’s and boys’ jeans. However, Bangladesh’s shipments increased by only 0.93 per cent to $51.24 million in the first quarter while imports from China declined by 3.39 per cent in the period to $39.9 million.

Pants and shorts dominate from Bangladesh

Bangladesh leads the men’s and boys’ cotton trousers, breeches and shorts category with a 24.58 per cent imports share. The country’s imports in the quarter increased 13.59 per cent to $442.31. Bangladesh was followed by Mexico with a 16.62 share in the imports market. Imports from the country’s increased by 9.57 per cent to $234.63 million while those from China declined by 14.06 per cent to $203.36 per cent.

Bangladesh also captures the shirts market

Bangladesh also holds the top position in export of men’s and boy’s cotton woven shirts. The country holds a 21.67 per cent share with its exports increasing by 23.38 percent in the first quarter to a value of $146.97 million. China, on the other hand, holds a 18.94 percent share with its shipments declining by 22.27 per cent to $109.91 million Vietnam has 11.86 per cent share. Its shipments increased by 5.66 per cent to $76.81 million. Among their neighbors, imports from Indonesia increased 17.94 percent in the period and Sri Lanka’s were up 6.39 percent to $28.68 million, but India’s shipments declined 12.05 percent to $57.13 million.

The import market for men’s and boys’ cotton knit shirts is led by China with a 14.06 percent share for the year through March, with Vietnam holding 11.8 percent of the market and Honduras 9.87 percent.

Vietnam’s shipments increased by 24.76 percent in the first quarter to a value of $200.92 million, while imports from China rose by 4.6 percent to $180.55 million and Honduras’ shipments were up 1.38 percent to $146.25 million.

China exports maximum number of suits and coats

China dominates import share in men’s and boy’s outerwear. The country holds a 44.4 per cent market share with Vietnam occupying the second spot with a 25.6 per cent market share. However, China exported 1.47 per cent less of men’s and boy’s outerwear in the first quarter, while Vietnam’s exports increased by 31.56 percent in the period to a value of $107.02 million.

Controlled by three main suppliers -- Italy, China and Canada; the wool suit supply market declined in the first three months in this year. Italy’s supplies increased by 6.52 percent in the period to $23.81 million, while China’s shipments were basically flat at $18.74 million and imports from Canada declined 9.96 percent to $16.07 million.

"With growing preference for ‘Made in America’ products, US textile and apparel exports increased by 0.9 per cent to $5,776.88 million from January to March 2019. Apparels exports during this period increased 5.04 per cent compared to the same quarter of 2018. Within these, export of functional apparels increased by 14.4 per cent to $401.05 million, while exports of other products including sports apparels, knitted apparels, sweaters and coats also recorded high growth."

With growing preference for ‘Made in America’ products, US textile and apparel exports increased by 0.9 per cent to $5,776.88 million from January to March 2019. Apparels exports during this period increased 5.04 per cent compared to the same quarter of 2018. Within these, export of functional apparels increased by 14.4 per cent to $401.05 million, while exports of other products including sports apparels, knitted apparels, sweaters and coats also recorded high growth.

A growing market for the US apparel, China accounts for 2.32 per cent of total US apparel exports. Other important markets for US apparel exports are: Italy, Ukraine, Saudi Arabia, Colombia and Peru. Countries including Thailand, Sri Lanka, and many African countries are other growing US export markets.

Short lead times, advanced technology favor western countries

A recent report on the apparel industry shows, nearshoring will be a reality by 2025 with more clothes being made in the US and nearby countries. Though higher production costs in the western markets are still an obstacle, McKinsey reveals cheaper freight and lower duties make it less expensive for companies to produce their goods in western countries like Mexico than in China for the US market.

Companies can also compensate for some of their labor cost disadvantage by shortening their lead times and increasing the share of clothes sold at full price. Automation decreases production costs. For instance, sewing a pair of jeans takes an average of 19 minutes. However, as McKinsey and RWTH Aachen note, robots can reduce this time by 40-90 per cent. Another important technology is the one used to create distressed jeans. This technology, used by Levi’s, reduces lead time from 20 minutes to 90 seconds.

China maintains lead

McKinsey reveals that around 82 per cent of sourcing managers plan to automate their production process by 2025. If they’re right, production is coming back – but the jobs aren’t. And China isn’t likely to fritter away its current advantage even as it becomes more expensive: Chinese garment companies are building factories in cheap labour countries closer to Europe such as Ethiopia. With these caveats, it’s likely that the buyers of mass market clothes, not just expensive designer threads, will be dressing in garments from geographically closer countries soon.

With the US imposing tariffs on China from July 2018, US apparel retailers and buyers began exploring newer sourcing destinations. However, China offers a lower average UVR than many other supplying countries as its industries thrive on government subsidies and incentives even. Also, China is automating its manufacturing and supply chains to cut costs, and delivery times. The technology costs for China are much lower than other competing countries which enable it to command a better price for its apparels.