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The Confederation of Indian Textile Industry (CITI) has welcomed the reduction of GST rates for manmade fiber yarns and its products from 18 per cent to 12 per cent. CITI feels this will help strengthen the entire textile value chain and make the Indian textile industry globally more competitive. It has sorted out a big issue of inverted duty for manmade fiber products as it was causing a serious escalation of the cost of synthetic products, which was further leading to cheaper imports from competing countries like China and Indonesia.
As of now, there is no refund of input tax credit at the fabric stage and under the GST regime, with the abolition of 12.5 per cent countervailing duty and four per cent special additional duty, imports have become a much cheaper option than sourcing fabrics from the domestic market. CITI is the apex industry chamber of the textile and clothing industry of India.
Reduced GST rates are expected to benefit not only the spinning and powerloom sectors but also support the initiative of Make In India and achieve the national objective of creating more employment opportunities. CITI hopes that the accumulated input tax credit will be refunded at the fabric stage especially for processed fabrics.
Interfiliere Shanghai will take place on October 10 to 11, 2017.
With an impressive selection of body wear industry specialists attending as exhibitors, the show provides offerings from fabrics, accessories, laces, OEM/ODM, embroideries, machineries and textiles.
Trend forums have always been signatures of all Interfilière shows, giving concise and inspiring insights into trends. The show will take the first look at spring/summer 2019 trends, showcasing a selection of innovations, fabric samples, accessories and colors reflecting trends curated by Concepts Paris. The forums will focus on lingerie, swimwear and sports/athleisure.
Interfilière Shanghai, in partnership with Concepts Paris, will present a live prototype presentation to inspire visitors and promote new industry codes with original combinations of fabrics and exceptional techniques. Live commentaries explaining the technical specifics of each creation will be given.
With its successful debut at Interfiliere Hong Kong in March 2017, the Studio will arrive at this Shanghai edition for the very first time. An undisclosed room, ideal for exhibitors to introduce the launch of a new product, solution or innovation to 40 targeted guests.
The show offers a unique rendezvous between China, the leading textile manufacturing country, and the rest of the world. There will be analyses of consumer expectations and the constantly changing market driven by innovation and performance.
E-tail luxury marketplace Farfetch is the UK's fastest growing retailer. While Farfetch is the UK’s fastest growing retailer, Primark enjoys the biggest revenue uplift. Farfetch had 70 per cent growth last year. Second place on the percentage growth list went to The Hut Group with 50 per cent growth.
Joint third place went to JD Sports and Wren Kitchens with a 31 per cent revenue rise each, while a trio of expanding names, Asos, Well Pharnacy and toy chain Smyths, each enjoyed a 28 per cent surge. The remaining names in the top 10 were Superdry and Screwfix with 27 per cent growth, and discount giant B&M on 25 per cent.
But some of these firms were boosted by acquisitions or are smaller so their percentage growth figures might not translate into such big numbers compared to other names not on the list. From the viewpoint of how much growth companies saw in absolute terms, Primark tops the list. It’s followed by JD Sports. Farfetch only came sixth here. Burberry comes in fourth ahead of TK Maxx, Screwfix and Morrisons. Globally, Amazon topped the ranking. That was more than the next four on the list. It was followed at number two by JD (big rival Alibaba was tenth).
Even though India is looking at a bumper cotton crop, prices are expected to remain above minimum support levels till December, except in Telangana. India’s cotton production in 2017-18 is expected to be 375 lakh bales. Presently, cotton price of the fair and average quality is above minimum support price. But private procurement currently on in Telangana is below minimum support price. Prices are low because the crop has more moisture due to the recent rainfall and traders expect better quality and increased arrivals post Diwali.
Even if the Cotton Corporation of India does minimum support price procurement operations, they may not be significant. If production has increased, consumption is also likely to increase. The number of spindles is increasing in Gujarat due to the incentives extended by the state government. Cotton arrivals started in Gujarat and Maharashtra 20 days ago. Cotton prices in Maharashtra are expected to remain higher than minimum support price at least till December.
Irrespective of market prices, though, yarn manufacturers have requested CCI to procure 30 to 40 lakh bales of cotton to help the industry during the lean period. However, CCI is clear on commercial procurement of cotton only if it does not get enough cotton through its minimum support price operations.
"The latest sustainability data predicts that by 2030, the industry’s water consumption will grow by 50 per cent to 118 billion cubic metres carbon footprint will increase to 2,791 tons; the amount of waste it creates will hit 148 tons. While significant efforts are being made by leading apparel companies, they don’t seem to be making much of a change at least just yet. The reason behind this is the insatiable appetite for fashion where people are buying more and more clothes."
The latest sustainability data predicts that by 2030, the industry’s water consumption will grow by 50 per cent to 118 billion cubic metres carbon footprint will increase to 2,791 tons; the amount of waste it creates will hit 148 tons. While significant efforts are being made by leading apparel companies, they don’t seem to be making much of a change at least just yet. The reason behind this is the insatiable appetite for fashion where people are buying more and more clothes. Since 2012, there has been a 10 per cent increase in the amount of clothes purchased in the UK alone. And not only are British consumers buying more, their clothing gets discarded quicker as they chase the latest fashion trends. It is estimated there is more than £30bn of clothing sitting in wardrobes across the UK that haven’t been used for over 12 months.
Behind this data seems to be the role of fast fashion. Owing to which people keep changing their clothing preferences faster. To circumvent this issue, academicians predict going ahead, slow fashion will become the norm, with consumers wearing classically styled garments that last for 10 years. This will minimise the need to make new purchases of the latest fashion fad, therefore reducing impacts.
Behavioural science at play
Earlier, questionnaires and surveys, used to predict the growth of ethical consumption, were good for identifying purchase intention but poor for predicting actual behaviour. Surveys are reliant on the participant being truthful and knowledgeable about their behaviour, but that’s also debatable. Rational models of consumption are based on the idea that individuals make choices that balance costs and benefits. An ethical consumer will make rational judgements about purchases on the best outcome in terms of costs and benefits for them and the environment. But consumption is quite irrational. Purchase decisions are more likely to be driven by desires linked to pleasure and excitement. These hedonistic subconscious forces create a less rational approach to consumption, which ultimately reduces the influence of rational thoughts about ethics and the environmental consequences of consumers’ purchases.
Ethical campaigning
By creating awareness and information dissemination, consumers can overcome these subconscious forces of fun and excitement. But evidence shows this does little to increase ethical behaviour. In fact, more information tends to reduce the influence of ethical issues due to the complexity of the issues. The real issue is can the industry find sustainable solutions that actually move ever closer to a disposable fashion industry. Instead of trying to appeal to the consumers’ supposed ethical streak, perhaps brands should aim to use new technology and business models to design products that can be recycled or re-engineered into new styles with minimal use of virgin materials, water, energy and chemicals. It is a major technical and commercial challenge but shifting to such a consumer-driven model may open up new opportunities for business, as well as becoming more sustainable.
Indian textile and apparel exports to Canada can double by 2020. Exporters have a huge scope for expansion and growth to fill the gaps in the Canadian textile and apparel market including its FTA partners. Indian manufacturers have a great opportunity to interact directly with Canadian buyers and fashion and apparel experts.
The total value of apparel production in Canada continues to decrease while apparel imports continue to increase. Since 2011, apparel imports have increased by 8.3 per cent annually. Between 2010 and 2014, the total number of establishments contracted by approximately 12 per cent. In 2015, approximately 20,000 employees were employed in the sector. Canada’s FTA with the United States, Mexico, Chile, Costa Rica and Honduras contain tariff preference level (TPL) provisions for certain textile and apparel goods being imported or exported within the respective free trade zones. TPL-eligible goods are goods that do not meet the requirements of the FTA Rules of Origin but can still receive the same preferential tariff treatment as goods from the country of origin, up to a negotiated quantity.
Canadian apparel and textile importers and retailers are eager to connect with the world’s major apparel and textile manufacturers. Some of Canada’s brands are Aritzia, Le Chateau, Walmart-Canada, Jockey-Canada, Gildan, Canadian Goose and Roots.
Clean Clothes Campaign works to ensure that those injured after a factory accident get the compensation they deserve. It has called upon brands to calculate and distribute payments contributed by international buyers and based on international standards.
One such tragedy the program is concerned about is the Aswad fire. Four years ago, a fire broke out at Aswad Composite Mills in Bangladesh. At least seven workers were killed and over fifty injured. Even after all this time the families and survivors still remain without full and fair compensation. Brands like H&M, C&A and Primark were sourcing from the factory.
The fire occurred in a factory that was deemed unsafe by inspectors, but which nevertheless continued to operate. It was caused by the explosion of an overheated machine on the ground floor, which set fabrics on fire, trapping workers on an upper floor. Compensation offered by the factory owner fell far below that received by victims of earlier disasters including the Tazreen factory fire and the Rana Plaza collapse.
Brands sourcing from Aswad did provide compensation but what Clean Clothes is emphatic the provision of such payments should not depend on public outrage or media interest but should come spontaneously.
Call to Action is a commitment by fashion companies to accelerate the transition to a circular fashion system. An initiative by Global Fashion Agenda, Call to Action is a counteraction to today’s linear and unsustainable take, make, dispose economic model, which sends too many garments to landfills and incinerators. The aim is to accelerate the fashion industry’s transition to a more circular system by increasing the volume of used textiles collected, reused and recycled by 2020. This includes a design strategy for cyclability by 2020, enabling re-use, upcycling and recycling.
The final list of signatories counts 64 leading fashion companies and corporations. Together, the 64 industry players represent 143 brands and a combined value of an impressive 7.5 per cent of the global fashion industry. Among the signatories are Adidas, ASOS, Bestseller, Eileen Fisher, Guess, Hugo Boss, Inditex, Lacoste, H&M, Kering, Tommy Hilfiger and VF.
The signatories have committed to defining a circular strategy for their own company by December 2017.
Global Fashion Agenda takes a central role in catalysing the various stakeholders involved in making this happen and over the next three years commits to provide the network, knowledge and advocacy to ensure that these issues are lifted, communicated and implemented in the broader industry.
From October 11 and global apparel fabrics & accessories industry will congregate in Shanghai to showcase the latest and the best trends the industry for the three-day Intertextile Shanghai Apparel Fabrics event. Shanghai will become a point of intersection between East and West. And as Wendy Wen, Senior General Manager of Messe Frankfurt (HK) explains, “Intertextile Shanghai Apparel Fabrics is first and foremost a business-focused sales platform. Nowhere else can over 4,500 quality suppliers from across the entire apparel sector be in immediate reach of buyers. And at no other event can these suppliers gain exposure to so many trade buyers from the international market. It is this unrivalled combination that creates the right conditions for business to flourish.”
As a global sourcing hub, the fair attracts buyers big and small, domestic and international. It is also a major source of inspiration for leading fashion brands which will participate in the fair’s business matching programme. This includes labels such as American Eagle Outfitters, Bestseller, C&A, Calvin Klein, E.Land, Eral, GVSSJEE, Joeone, L.L.Bean, Lily, Ports, PurCotton, Quiksilver, s.Oliver, Skechers, Trands and many more.
Autumn edition 2017 at a glance
The latest edition has a lineup of 4,538 exhibitors from 32 countries & regions, and is set to host close to 70,000+ trade buyers from 100+ countries & regions. There are country specific pavilions from France, Germany, Hong Kong, India, Japan, Korea, Milano Unica (Italy), Pakistan, Taiwan and Thailand. Chinese exhibitors are grouped by product end-use in eight halls. And there are group pavilions by Better Cotton Initiative (BCI), Button & Garment Accessories Industry Chamber, DuPont, ECOCERT, Hyosung, INVISTA, Lenzing, OEKO-TEX and more. Innovative product zones such as Accessories Vision, All about Sustainability, Beyond Denim, Functional Lab, Premium Wool Zone and Verve for Design, would enthrall the visitors. Fringe programme comprising of eight international and domestic trend forums, seven panel discussions, 30+ seminars, Digital Printing Forum and more, would keep the visitors engaged during the show. There are concurrent fairs held alongside the expo, including Yarn Expo Autumn, fashion garment fair CHIC and knitting fair PH Value to cash in on the potential.
Convergence of fashion & innovation
While an unmatched event in terms of sourcing from the entire apparel fabrics and accessories product spectrum, Intertextile Shanghai is also valued by buyers for its quality of products as well. Those looking for up-to-the-minute fashions are well served with the likes of the France and Japan Pavilions, while SalonEurope area presents the best of Europe. Cutting-edge original pattern designs can be found in Verve for Design, stylish accessories are on offer in Accessories Vision, while many new Chinese fashion brands are beginning to emerge at the fair.
The fair is also a focal point for fabric innovations. The Functional Lab is the centerpiece of the fair’s innovative offerings, there is plenty more to be discovered, especially from around the Asian region. Korea and Taiwan, in particular, are breeding grounds for textile innovation, and their pavilions will draw crowds of buyers from the first to the last minute of the fair. The Group Pavilions are a showcase of the industry’s best innovators, combined with the wide range of solutions offered by their partner mills within the pavilions. There are also many innovative products and solutions for environmental protection on offer at the fair this year, naturally in the All about Sustainability zone, but also in Accessories Vision and Beyond Denim, as well as throughout the domestic exhibitor halls.
"In order to take the eco-friendly route, many leading brands from apparel industry’s and retailers need to significantly increase their uptake of ‘sustainable cotton’, says a WWF study, Pesticides Action Network (PAN) UK and Solidaridad. The report ranks apparel brands and retailers who use more than 10,000 tons of lint cotton on their use and uptake of ‘sustainable cottons’ such as organic cotton and ‘identity cottons’ such as the Better Cotton Initiative, Cotton made in Africa, Fairtrade and others."
In order to take the eco-friendly route, many leading brands from apparel industry’s and retailers need to significantly increase their uptake of ‘sustainable cotton’, says a WWF study, Pesticides Action Network (PAN) UK and Solidaridad. The report ranks apparel brands and retailers who use more than 10,000 tons of lint cotton on their use and uptake of ‘sustainable cottons’ such as organic cotton and ‘identity cottons’ such as the Better Cotton Initiative, Cotton made in Africa, Fairtrade and others.
Findings reflect Ikea, Tschibo, C&A, Marks & Spencer, and H&M are the leading brandswhen it comes to reporting sustainable cotton use. A matter of concern is that top brands such as Walmart, s.Oliver, Amazon, Footlocker and Giorgio Armani, all scored zero in the report. Of all the companies, C&A made the biggest advance in uptake almost doubling its score. In terms of policy, Gap Inc, IKEA and Marks & Spencer were making the biggest advances while in terms of traceability, M&S, C&A and H&M expanded their list of public suppliers.
A lot more needs to be done
While the results are encouraging, it also showcases a lot still needs to be achieved. Only around half of all assessed companies have a policy on sustainable cotton. While company performance on uptake and traceability is considerably low on policy. Only 11 companies have time-bound commitments or targets for greater use of sustainable cotton and uptake of sustainable cotton remains relatively low with most of the ‘heavy lifting’ being done by a handful of leaders.
The report calls for brands that use large volumes of cotton to encourage further expansion of sustainable cottons to support farmers to switch to more environmentally-friendly ways of cultivation. It says brand should set public targets for using 100 per cent sustainable cotton by 2020; adopt policies on cotton that tackle key challenges such as hazardous pesticides, water, biodiversity, labour conditions and recycling; and report transparently each year on policies, strategies and targets, as well as performance and progress.
Critics feel this is essentially a self-assessment exercise, and some brands may be tempted to put a gloss on their sourcing practices. In addition, brands regularly suggest to Ecotextile News that to improve uptake of sustainable cotton it could be that donors should stop funding more production and instead support market mechanisms and finance. For example, by providing finance that would encourage cotton traders and mills to hold sustainable cotton stocks. A common problem in uptake is when a brand finalises its collection plan, there is no cotton available as no one will hold a stock which may remain unsold, so sustainable cotton gets sold as conventional.
Bram Verkerke, Solidaridad points out donors should stop funding (the shift to) sustainable cotton production. Sustainable cotton is still only 15 per cent of global production, so this needs to grow and will require donor funding. In a context where International Development Aid is generally becoming less accessible, it remains an important mechanism of international wealth re-distribution and should continue to support the most vulnerable in the cotton sector, i.e. farmers, their families and their workers.
Besides funding, there needs to be other strong market incentives as well, in this case primarily demand from retailers and brands that traders and spinners can count on, for them to stock sustainable cotton. This too, just like improved production projects, needs to be self-sustaining after an initial investment has overcome the initial extra costs, and this will only be the case if there is a business case (i.e. demand).
