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International chains, led by H&M and Zara, are facing falling sales in Israel. H&M, the Swedish multinational clothing retailer, has suffered a dip in sales of between seven to ten per cent so far this year. Sales declines have been so steep that they have caused overall turnover at shopping malls around the country to fall 1.3 per cent since the start of the year, even as the population has grown about two per cent.
The US apparel chain Forever 21, which targets younger shoppers, was a huge success when it entered the Israeli market five years ago, but it will now be closing several mall shops over the next several months, leaving it with just four in Israel.
Even Zara, the international chain most popular with Israeli shoppers, has seen a sales slowdown. The reason international chains are hit is that the Open Skies aviation agreement that went into force four years ago which has led to cheaper airfares and more routes between Israel and Europe. When Israelis travel abroad, they go into the malls and discover that prices are lower. In the first seven months of this year, the number of overseas trips by Israelis climbed 12 per cent from compared to the same time in 2016.
The global garment industry is infamous for its labour sweatshops in developing countries. Workers are grossly underpaid and work under despicable conditions – producing for a global apparel market valued at around three trillion dollars. They get paid less than the living wage – the wage required by a worker to meet the basic needs of a family unit of four (two adults, two children) in order to maintain a decent quality of life.
The living wage is different from minimum wage for labour as fixed by the governments of different countries. Garment workers in the BRIC countries – Brazil, Russia, India and China-- get paid only around half of the living wage required to support a decent standard of living.
Workers on an average need to be paid an additional 35 per cent over the living wage to offset the financial demands of income tax and social security. Agricultural workers are actually the lowest paid in the garment supply chain. While garment factory workers are paid around half the living wage, agricultural workers get paid even less in all the four countries. On an average, in Asia, garment workers get about one-third of the minimum living wage. In India, a monthly minimum living wage is Rs 18,727 – without overtime payment and benefits.
The global eco fiber market is growing at a CAGR of 12.1 per cent. Expanding textile industry in emerging nations, including India and China, has been a major growth driver. In addition, increasing environmental concerns coupled with volatile prices associated with conventional fabrics has also spurred their adoption in global market.
In the early 1990s, garment manufacturers started developing environmental-friendly products such as bamboo fibers, biodegradable detergents and paper as well as organic cotton, produced from controlled use of chemicals and pesticides; and fertilizers.
Organic cotton farming does not utilize any toxic chemicals and is certified to organic agricultural standards. The production of such fibers uses over 70 per cent less water and 62 per cent less energy compared to conventional fiber production while improving soil quality and having less impact on the air. Additionally it promotes a safe work environment and better livelihoods.
Regenerated eco fibers emerged as the dominant segment in 2016, with over 55 per cent volume share. Asia Pacific is projected to grow at a CAGR of 9.5 per cent from 2017 to 2025. The rising emphasis on sustainable disposal of textile and industrial waste in order to minimize the harm to people and the environment has spurred the demand for regenerated fibers.
Xinxiang Chemical Fiber’s viscose filament has a 52 per cent market share in India. Viscose filament is used for manufacturing saris. The Chinese company’s yarn, which could be as thin as 20-denier or one third of the thinness of hair and which is of high breathability and without knots, is popular in India. The yarn can replace silk threads.
Products supplied by Xinxiang Chemical Fiber almost always meet quality standards. The company is principally engaged in the manufacture and distribution of chemical fiber textile raw materials. The company's major products include centrifugal viscose rayon filament yarn, continuous viscose rayon filament yarn, viscose staple fiber, polyester, and spandex of five series with more than 100 varieties.
Set up in 1960 the company has the biggest viscose rayon yarn production capacity in the world. Its products go to more than 30 countries including Denmark, Italy, Japan, South Korea, India. Viscose filament yarn is a natural yarn made from wood pulp or cotton pulp. Owing to its silky appearance and feel, it can be used to make fabrics for clothing and home textiles. It is also widely used to make viscose embroidery thread.
Pakistan is the fourth largest producer and the third largest consumer of cotton. But the country is still a supplier of raw material instead of value added products. The textile sector contributes 60 per cent to overall exports of the country. It contributes nearly one-fourth of industrial value-added, provides employment to about 40 per cent of the industrial labor force, and consumes more than 40 per cent of banking credit to the manufacturing sector and accounts for eight per cent of GDP.
Nearly 35 per cent of textile units in the country have already shut down for various reasons, including higher cost of doing business, becoming uncompetitive in international markets etc. At least 140 textile mills have shut down during the past four years. While machinery in the spinning sector is being sold in scrap. What has added to Pakistan’s fears is that China is building a cotton textile production base in Xinjiang. By 2023, this region will be China’s largest garment export processing base.
This huge investment in a textile park in the bordering region of China is posing a serious threat to Pakistani textile industry. In addition to funding textile industrial parks and clothing factories, Xinjiang will subsidise local cotton and electricity in qualified industrial parks.
Greenshowroom and Ethical Fashion Show Berlin will take place from January 16 to 18, 2018. Two new discussion forums on innovation and sustainability are scheduled to be held during the show. Fashion buyers will be able to view contemporary fashion and casual wear on the ground and first floor, with a focus on environmental aspect of clothing production.
The conferences will be a hotspot for discussions on the future of fashion and sustainability in the textile industry. Ethical Fashion Show is an international fair for sustainable fashion. Here exhibitors show clothing for men, women and children from different areas such as sportswear, street wear and much more. Also, jewelry, shoes, bags and accessories are on display at the fair. In addition to the exhibition conferences and fashion shows take place.
Ethical Fashion Show presents international casual wear and street wear brands-- supplemented by an extensive program with a knowledge lounge, lectures, catwalk show and get- together events. The focus is on fashion and sustainability in the apparel, clothing, lifestyle and fashion industries.
Greenshowroom stands for elegant designs and sustainable high-grade materials. Exclusive ambience, personal atmosphere and that certain extra something distinguish the extraordinary profile of the fair. Visitors can look forward to fashion, beauty and lifestyle products of the highest standard.
Garment Technology Expo (GTE) was held in Gujarat, August 18 to 20.
Over 230 participants and brands including leading manufacturers as well as suppliers of garment machinery and accessories from over 18 countries including Germany, Japan, Taiwan, China, Korea, Italy and India participated. The show attracted a total of 7,600 visitors.
The highlights of the expo were the latest machines of the world’s leading brands in operation and for visitors to see and compare. When looking to upgrade or set up a garmenting unit or add or replace a few machines, one wants to go to the place where all relevant brands are present and all technical know-how as well as working models.
Professional organisation enabled benchmark facilities and services for exhibitors and visitors alike.
The profile of exhibitors participating in GTE Ahmedabad included technology specialists in CAD/CAM, sewing, spreading, fusing, laundry, finishing, cutting, printing, embroidery, testing equipments, knitting, software solutions, spare parts, attachments and accessories and trims as well as those offering support services, trade publications etc.
Some of the leading brands at the show were HCA, IIGM, Magnum, Mehala, ALT, E.H.Turel, Tukatech, Ramsons, Colorjet, Jincheng, Dhaval, Pioneer, INL and Paramount.
This edition of the show was abuzz with constant activity featuring new technology machines as well as innovative and new products.
Garment Technology Expo’s next edition is scheduled from January 19 to 22, 2018, at New Delhi.
Prada’s sales were are cooling off because of the strong value of euro hitting the purses of tourists visiting Europe and shopping for luxury goods. The Italy-based, Hong Kong-listed luxury house says net profit slumped 18.4 per cent to €115.7 million at the firm that also includes the Miu Miu, Church's and Car Shoe brands. And overall net sales slid 5.7 per cent on a constant exchange rate basis in the six months to the end of July to €1.47 billion ($1.77 billion). It had not been able to generate the kind of growth in other global markets that its rivals have enjoyed. The reason could be that the product just isn’t the must-have it once was.
On a constant exchange rate basis sales in Europe fell by 7.7 per cent, with only its clothing lines bucking the downward trend, which is a problem as margins are higher for bags and shoes.
China was the only area to post growth as it is an important country for the firm. China’s crackdown on corruption and too-conspicuous consumption had hit luxury sales for many brands in recent years. But while Prada’s rivals got back on the recovery trail, the Italian influencer continued to struggle, so any positive news on its China ops is to be welcomed.
It all led CEO to the company investing heavily (over €105 million) in stores and e-tail to improve performance. Whether the company can drive sales of higher margin products sufficiently to boost profits remains to be seen. The firm’s turnaround could take longer than expected after earlier declaring 2017 to be the year when the turnaround would come to fruition.
Primark’s sales at actual exchange rates are expected to be 20 per cent ahead of last year’s. Primark has performed particularly well in the UK where full-year sales are expected to be 10 per cent ahead of last year on a comparable basis and its share of the total clothing market has increased significantly. Primark is almost unique in not offering its products for sale via e-commerce.
Favorable weather as it moved into the fourth quarter and a strong product offer meant lower markdowns while early trading of the new autumn/winter range has been encouraging.
The store count is being upped in all of Primark’s markets. Last year, the group added 30 new stores and 1.5 million sq ft of space in nine countries. It now has 345 stores with 11 added in the UK; three in each of Spain, France, the Netherlands, Italy and the US; two in Germany and one each in Belgium and Ireland. Its UK flagship store was extended by 40 per cent during the year.
In the next financial year, Primark is planning over 1.2 million sq ft of additional selling space. France, Germany and the UK will see the most space added and overall it will open 19 new stores, together with a number of relocations and extensions.
Around 22,900 professional buyers from over 50 countries visited CPM Moscow held from August 30 to September 2. This is an increase of 7.42 per cent over previous year. The show also saw the participation of 1,300 brands, an increase of 31 per cent over the previous year, and 700 exhibitors from 27 countries..
Successful elements of the edition included a top buyer lounge, a fashion show and a fashion contest. A particular visitor magnet, especially for international brands and their representatives, was the CPM Fashion Night with celebrity representatives from Russian TV, Eastern European social media stars, influencers, the media and VIPs.
With segments like lingerie and swimwear, CPM has been an exciting pulsating platform for European, Far Eastern and Russian exhibitors for almost 15 years now. It is a firm foundation for successful business and sustainable brand launches. Country pavilions of Germany, Italy, Spain, France and Turkey offered exhibitors interesting opportunities.
Established, professional and topical industry forums also contributed to the increasing numbers. Professional buyers enjoyed substantiated, trendsetting presentations, forums and panels of an international standard as part of the high-profile Russia Fashion Retail Forum. The forum informed about developments regarding clothing exports to Russia and gave insights into the current situation of the Russian clothing market.
