FW
"As per textile trade analysts and industry stalwarts, India’s apparel exports growth will remain flat or may see marginal rise this year, due to factors like GST, rupee appreciation against the dollar and sluggish global demand. As Rahul Mehta, President, Clothing Manufacturers' Association India (CMAI) points out, the rise in minimum wages and rupee appreciation have resulted in estimates of sluggish growth in apparel exports. The rupee has risen to 64.2 against the dollar from 66.5 last August. This is in contrast to six consecutive years of depreciation. India had posted $17 billion worth apparel exports in 2016-17."
As per textile trade analysts and industry stalwarts, India’s apparel exports growth will remain flat or may see marginal rise this year, due to factors like GST, rupee appreciation against the dollar and sluggish global demand. As Rahul Mehta, President, Clothing Manufacturers' Association India (CMAI) points out, the rise in minimum wages and rupee appreciation have resulted in estimates of sluggish growth in apparel exports. The rupee has risen to 64.2 against the dollar from 66.5 last August. This is in contrast to six consecutive years of depreciation. India had posted $17 billion worth apparel exports in 2016-17.
As per Apparel Exports Promotion Council (AEPC), India saw a marginal 5 per cent growth in apparel exports which was worth $6.9 billion for April-July 2017. In fact, the industry had expected 15 per cent growth, however, things are sluggish now. Apart from GST and rupee appreciation, what has also affected the industry is a rise in raw material prices and wages.
Apparel exports remain sluggish
There are no signs of revival for global apparel trade. This has resulted in sluggish demand in key importing countries. According to ICRA, this may result in India’s apparel exports continuing to remain volatile. According to Jayanta Roy, Senior VP and Group Head, corporate sector ratings, ICRA, although there have been brief phases of growth in the past 18 months, the trend has been unsustainable and failed to instill confidence. In such a scenario, sustained growth in India’s apparel exports remains challenging. The challenges have been further augmented by the appreciation of rupee in recent months, which has reduced competitiveness of Indian exporters vis-à-vis global counterparts.
According to the report, the apparel and fabric industry has been facing headwinds as a result of temporary disruptions caused by demonetisation and transition to the GST regime. The impact of these developments has been more direct on highly fragmented fabric segment, with fabric production declining 1 per cent in the first quarter of 2017-18 following flat production in 2015-16 and a 2 per cent decline in 2016-17.
Despite significantly higher raw material prices, revenues of fabric manufacturers that ICRA contacted grew a marginal 4 per cent in the first quarter of 2017-18 pointing towards a steeper de-growth in sales volumes vis-a-vis production volumes. De-growth in fabric sales volumes in the first quarter was higher than the aggregate nation-wide production de-growth of 1 per cent due to the clearance of channel inventory by intermediaries prior to GST implementation, Roy points out.
ICRA noted although profitability of export-oriented players have been protected to an extent by prudent hedging, sustained strength of the rupee might exert pressure on their pricing ability and hence demand and profitability. Notably, the likely pressures on profitability, debt levels are expected to decline with industry focussing on sweating the existing assets more and undertaking limited debt-funded capacity additions. In such a scenario, it is expected that the financial risk profiles of Indian exporters as well as domestic-focused apparel/fabric manufacturers will remain steady in the near term.
"Global denim mills will congregate at Munich Fabric Start’s Bluezone in Munich, September 5-7, 2017 to present their Autumn/Winter 18-19 collections. Their major target is making a mark in the German and Northern European markets. These mills bring forth innovations and new product lines, with focus on sustainability and performance. For instance, Artistic Fabric & Garment Industries (AFGI) is working on the possibilities of sustainably-produced and recycled denim. Henry Wong, Director-product development and marketing, North America at AFGI, said fashion and performance jeans are more eco-friendly than ever when cut from AFGI’s denim made from recycled jeans and plastic bottles."
Global denim mills will congregate at Munich Fabric Start’s Bluezone in Munich, September 5-7, 2017 to present their Autumn/Winter 18-19 collections. Their major target is making a mark in the German and Northern European markets. These mills bring forth innovations and new product lines, with focus on sustainability and performance. For instance, Artistic Fabric & Garment Industries (AFGI) is working on the possibilities of sustainably-produced and recycled denim. Henry Wong, Director-product development and marketing, North America at AFGI, said fashion and performance jeans are more eco-friendly than ever when cut from AFGI’s denim made from recycled jeans and plastic bottles.
The Pakistan-based mill uses its new, advanced indigo dyeing technology, which saves a minimum of 50 per cent water compared to current industry methods, to provide true sustainable denim products that do not sacrifice aesthetics, softness and performance. Wong points out, even mercerisation chemical is recycled via state-of-the-art machinery. Project R, initiated by Tejidos Royo, offers a 360-degree approach to sustainability. This is a concept that reduces water, contaminants, emissions and energy. Debutant Royo is slated to use post-consumer denim as a raw material resource, diverting it from landfill and incineration. The Denim Recycled Collection is offered in stretch and stretch colours, including black, blue, brown, khaki and dark gray.
Royo is also introducing the Nanami Collection, a development based on the Japanese concept that creates an irregular effect and open construction in the fabric. Nanami denim uses the color 413, which gives the fabric a vintage appearance. The Nanami collection is based on Royo’s ‘Save Water, Fill Seas’ mission to minimise water consumption. The process utilises zero waste water in the dye process and reduces energy by 80 per cent.
Spotting trends
This platform will be highlighting major trends that the industry is set to bring in the next season. For example, Artistic Milliners is providing solutions to better suit new comfier cuts and nostalgic designs. The mill will present Sunday Jeans, a concept that uses smart fibres like Tencel and Modal to create supple blends and drapey constructions. Ebru Ozaydin, Artistic Milliners director of sales and marketing, said that the fabrics are engineered with the right amount of stretch to help designers create great looking fits with a soft hand feel. Bleisure by Royo is a collection of fabric with three-dimensional elasticity in length, width and depth. The versatile fabrics blur the line between business and leisure, resulting in styles with elegant, utilitarian and soft tailoring.
For brands wanting to bring in ’90s nostalgia, Artistic Milliners has created a collection of specific fabrics with the right aesthetics to create modernised ’90s fits. Ozaydin said that its 90210 fabrics take back to original Levi’s look of the era, revive and refresh a traditional palette for timeworn vintage appeal. The incorporation of stretch technologies provides a hidden comfort for the wearer paying tribute to iconic marble look and open twill.
Brazil-based Vicunha, a Brazilian brand, infuses vintage and authenticity with plain open weaves and ring effects for men and women. Retro shades of blue and darker, deeper dyes create a multitude of wash effects suitable for looser silhouettes and throwback styling. According to Vicunha, heavier weights, traditionally for the men’s market, are picking up momentum in women’s fashion. Atlantic Mills has a warp-only stretch selvedge, offering comfort from stretch but has the ’80s look of selvedge as it used to be worn. The mill uses 90 per cent BCI cotton and 10 per cent organic cotton in its range, including in its retro selvedge story.
Indian brand shining through
India’s top denim maker Arvind will be present with a story rich in indigo heritage. It will highlight Azurite, a collection of fabrics touted as ‘denim bluer than blues’. Made with indigo saturated fabric, with indigo in the warp and weft, Arvind develops deep blue hues targeted toward brands and designers with a pure love for indigo denim.
Performance Preferred
With growing eco-awareness, most companies are offering sustainable solutions in clothing. Artistic Milliners has recently launched Urban Commuter concept, which will focus on combining performance, sustainability and ‘climate control fabrics’ using natural eco-friendly fibres from Invista, Cordura and Lenzing.
Royo is bringing its new collection, ‘Atmosphere’. Aimed at outdoor activities that require maximum comfort and protection, the performance fabric provides thermal insulation and protects against rain, wind and cold temperatures. The fabric is made with high temperature resistant fibres and disperses body perspiration through ultrathin breathable hydrophilic lamination.
Vicunha will bring in its first temperature control denim with an expanded line that uses high-tech yarns from fibre producer Nilit. The mill introduces Body Fresh, a denim with antibacterial properties; Aquarius, a fabrication that wick moisture away from the body; and Breeze, a denim fabrication that maintains constant body temperature after physical activities or in warm climates.
World cotton stocks are projected to remain stable by the end of 2017-18 and stock-to-use ratio is expected to be essentially unchanged at about 75 per cent or nine months of mill use. China’s cotton stocks are forecast to decrease another 16 per cent, which would account for 48 per cent of world stocks. Ending stocks held outside of China are expected to increase by 22 per cent.
World cotton area is projected to expand by nine per cent. With output projected to increase by four per cent, India will remain the world’s largest cotton producer. After four seasons of decline, China’s cotton production is expected to rise by seven per cent. Cotton production in the United States is forecast to increase by 20 per cent. Pakistan’s cotton production is projected to increase by 17 per cent.
After falling two per cent in 2015-16, global cotton consumption rose by one per cent in 2016-17 as world economic growth strengthened. In 2017-18, world cotton mill use is projected to increase by two per cent. Mill use in China is expected to grow by one per cent while India’s cotton consumption is projected to recover by three per cent. Mill use in Bangladesh is projected to remain stable.
Shima Seiki has released a new i-Plating option on two models of its computerised knitting machines. Both machines feature special loop pressers for producing inlay patterns that yield novel knit-weave hybrid fabrics. By combining i-Plating with inlay capability on these machines, new possibilities of patterning are now available for a diverse knit design.
Unlike conventional plating techniques, i-Plating offers inverse-plating capability, in which alternate yarns are shown on the fabric surface in any specific pattern or design, producing jacquard-like patterns in plain jersey stitch. i-Plating goes a step further, overcoming current limitations in inverse-plating by offering this capability within the same course and for individual needles for greater efficiency and expanded patterning capability.
Shima Seiki, founded in 1962, is a computerised flat knitting machine manufacturer of Japan. It’s known for the fully automated glove knitting machine and the fully automated seamless glove knitting machine. The seamless glove became the inspiration for the eventual development of the seam-free Wholegarment knitting technology for which the company is now best known.
Wholegarment knitting is capable of producing knitted items in their entirety on the machine, and allows complex 3D forms for fitting the human body or even car seats without the need for sewing.
During the second quarter Lululemon Athletica’s net revenue increased 13 per cent. Direct-to-consumer net revenue grew by 29 per cent. Total comparable sales zoomed seven per cent while comparable store sales noted a two per cent increase during the second quarter. Additionally, gross profit jumped 17 per cent.
Lululemon Athletica, based in the US, is a yoga-inspired apparel athletic company. The company expects its third quarter revenue to be in the range of $605 to $615. The estimated rise in total comparable sales (in the mid-single digits) during the upcoming quarter will boost Lululemon’s revenue. Lululemon Athletica has acquired a stake in 7mesh.
Lululemon is aiming to have an initial line of product from the collaboration with 7mesh in stores by the middle of 2018, aiming to take advantage of the key cycling season. Lululemon wants to dispel the impression that it does only yoga gear and is a yoga-inspired apparel maker. In recent years, it has sought to sell more clothes meant for running, swimming, and even outer wear.
New ventures like 7mesh are part of Lululemon’s 10-year plan to generate 50 per cent net new profitability from businesses and product categories where it doesn't currently compete.
Jeanologia has launched a revolutionary generation of laser that reduces marking times by up to 30 per cent. The High Dynamic Range (HDR) is a new hyperbolic system that simplifies the way of designing, initiating a new era in laser production in the textile industry. The system increases the contrast of the dynamic tones of the image, obtaining a level of depth closer to reality and thereby achieving a more natural and 3D design.
HDR simplifies the way of designing, creating a common language in the industry, saving the designer’s time, boosting creativity and avoiding second-qualities. Jeanologia’s technology creates the opportunity to change the industry model, traditionally based on cheap labor, and moves towards a model supported by technology that increases productivity and lowers costs.
Since 1993 the company’s mission has been to create an ethical, sustainable and eco-efficient textile and apparel industry through r disruptive technology and know-how. Its laser, G2 ozone and e-flow system have revolutionized the textile industry. Jeanologia offers infinite design possibilities and garment finishes while saving water, energy and chemicals, eliminating waste and toxic emissions.
Currently the Spanish company has clients on five continents. Among its customers are Levi’s, Polo Jeans, Abercrombie & Fitch, Edwin Japan, Pepe Jeans, Diesel, Tommy Hilfiger, CK, Jack & Jones, Replay and retailers such as GAP, Uniqlo, M&S and H&M.
Most of German textile retail industry is committed to improving working conditions and furthering environmental protection. Textiles Partnership works for better working conditions, increased environmental protection and fairer living wages. Progress is checked by external experts on a yearly basis. For 2017, they have resolved to implement more than 1500 measures which will lead to concrete improvements. The measures relate to topics such as living wages, the fight against child labor, avoidance of harmful chemicals or sustainable water use in cotton cultivation.
At the moment, the Textiles Partnership has 148 members. The figure includes advisory members, who do not have to provide measure plans, as well as new members, who are obliged to generate action plans only in the coming year. Individual measures are oriented alongside key questions in the areas of chemicals and environmental management, social standards and living wages as well as sustainable natural fibers.
The key questions have been jointly devised by the different actor groups throughout the last year. The verbalization and implementation of measures in all three areas is mandatory for members. The Partnership is subject to the principle of procedural liability: joining the Partnership is voluntary – handing in action plans is mandatory.
Accessories Trilogy will be held in France, September 20 to 26, 2017. This is an exhibition of French knowhow in fashion accessories like shoes, gloves and leather goods.
The purpose is to emphasize manufacturing expertise as well as brands’ capacity for imagination. The exhibition will be enriched by a dialogue with avant-garde influencers. The exhibition-conversation is designed to let the public discover a selection of 40 fashion accessories from every angle and a variety of facets. It is a unique, in-depth opportunity to explore the objects that adorn our everyday lives.
The week-long exhibition unveils both the tangible and intangible contributions of craftsmen and manufacturers, revealing the quintessential aspects of each accessory category for visitors. France’s leather goods industry represents 459 companies, 1374 craftsmen and over 20,000 employees.
France is known as the birthplace of the glove-making industry. Saint-Junien, Millau and Grenoble are still the historic sites where traditional companies perpetuate unique, high-quality skills. The French glove industry employs almost 300 workers for a total annual production of approximately 3,50,000 pairs of mid-range and high-end gloves.
The GST levy on job work means a higher tax incidence on the carpet and apparel sectors. There is a five per cent GST on job work in textiles sector such as cutting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting, and coloring.
Exporters have asked for an e-wallet, which they can use like a running account where money will be debited from the e-wallet when duty has to be paid to supplies and the amount is credited when the proof of exports is made available. The drawback committee has been asked to look into cases of embedded tax on supplies and provide a refund of duties through the duty drawback mechanism. Exporters have been advised to do their own calculations before opting for higher drawback rates as in certain cases the lower drawback rates with refund of IGST benefits or ITC refund or CGST/IGST may be higher than the drawback rates.
A request has been made either to put zero GST rate on sale/ transfer of scrips or put it at five per cent.
So far the GST regime has led to a problem of liquidity but on the logistics part a lot of improvements are expected.
The global conductive textiles market is expected to grow at a CAGR of 15.6 per cent from 2016 to 2021. Growth of smart fabrics market, increasing awareness of the advantages of conductive textiles across varied end-use industries, and the high demand for conductive textiles from the military and defense are the key factors driving the growth of this market.
The woven textiles segment accounts for the largest share of the global conductive textiles market. This large share is mainly attributed to the properties of woven textiles that make it a preferred material for various end use industries, such as military and defense, healthcare, and sports and fitness.
The military and defense segment is the largest end user segment of the global conductive textiles market. Textile-based materials equipped with nanotechnology and electronics play a key role in the development of technologically advanced military uniforms. There is a high demand for conductive textiles from the military and defense end user segment as soldiers require protection against extreme weather conditions, such as heat, cold, wind, and rain; ballistic impact; and nuclear, biological, and chemical threats. Additionally, these textiles also find applications in parachutes, safety harnesses, ropes, and tenting. Among all regions, Europe is anticipated to lead the global conductive textiles market.
