FW
India has set up institutional mechanisms to enable the textile industry achieve its full potential of production, exports and employment. One is a Knowledge Network Management System (KNMS) which will facilitate exchange of knowledge between academia, the farming community and the industry on productivity of natural fibers and diversification of their by-products. The KNMS will cover jute, silk, wool and cotton.
Another is a synergy group on manmade fibers which will formulate policy interventions to enhance the growth and competitiveness of manmade fiber industry in India. India has a great chance to capture the market for manmade fibers that’s been vacated by China.
Yet another is a task force on Textiles India which has been set up to steer follow-up action on various outcomes of Textiles India 2017 for growth of the textiles sector. Textiles India 2017, held in Gujarat from June 30 to July 2, 2017, was not only the largest ever international trade event in the textile sector in the country, but also hosted a series of roundtables and international conferences with the participation of eminent persons from the business fraternity, academia and policy makers to deliberate on various opportunities for the growth of the sector.
GST will have little effect on prices of textile products. However, the cut in GST rates on job work done in natural fibers including cotton and woolens has provided a major relief to textile companies. The move is expected to boost domestic business and increase international competitiveness. It will reduce the tax burden and avoid inverted duty for textile manufacturers.
The relief is expected to benefit the unorganised sector, where as much as 80 per cent of the work such as stitching, weaving and knitting happens. The five per cent tax rate is applicable for job works in apparel as well as shawls and carpets. Textile groups want to know whether operations like packaging, shifting of raw materials, loading and unloading also fall in the five per cent slab. Much of such operations are contractual but still have indirect tax implications for a company.
GST has been reduced to five per cent from the initially decided 18 per cent. The lower GST slab is expected to benefit the entire value chain of the textile sector. Though the five per cent tax rate is applicable for job work in apparel as well as shawls and carpets, it’s felt the tax relaxation will benefit the unorganised sector more. Textile companies want clarification over the term job work, which could include manufacturing activities such as weaving, cutting and knitting.
Exports of Egypt's cotton in the 2016-17 season have risen 19 per cent. Last year Egypt banned all but the highest quality cotton seed in order to save its historic crop, dramatically reducing the area under cultivation to about 1,30,000 acres, a more than 100-year low.
Egypt is now looking to scale that cultivation back up. The area planted rose to about 2,20,000 acres this year and is expected to hit up to 5,00,000 acres in the next two to three years. So the area under cultivation is growing and exports growing so that Egyptian cotton can now be sold at a price that's less than California pima.
Egypt, last November, floated its currency, roughly halving it in value and making its exports relatively cheap on international markets, a boon for Egyptian cotton traders able to source higher quality cotton after the new regulations. They see Egypt able to more than double its global market share within three years to capture about 20 per cent of a small but high-end market that trades some 5,00,000 tons of long-staple cotton per year. Egyptian long staple cotton is famously used for luxury linens. It trades at a high premium compared to the more common short-staple cotton.
Bangladesh has a target of earning $50 billion from readymade garment exports by 2021. The readymade garment sector is a vital sector of Bangladesh economy which is immensely contributing to the country’s export earnings, employment generation and value addition. Contributing approximately 80 per cent of the country’s total export earnings, Bangladesh is the second largest apparel exporter in the world, next to China.
And in the case of empowerment of women, this industry is one of the driving forces. Currently, more than 44 million workers are working in garment factories in the country and 80 per cent of them are women. Efforts are being made to ensure a safe, sound, green, environment-friendly and a vibrant garment sector. In fact, out of 10 eco-friendly factories in the world, seven are located in Bangladesh.
Steps are being taken on capacity building and improving the competitiveness of the readymade garment industry. Significant improvements have been made on various issues, including the development of garment industry, strengthening safety of workers, fixing minimum wages, inspection of industrial factories and strengthening of monitoring. Labor laws have been amended and attention has been paid to occupational health and safety, green growth and sophisticated, clean technology.
Bangladesh is unable to take advantage of shifting work orders from China. China’s market share in the global apparel trade has been declining over the last few years because of a dearth of skilled workers and the manufacturing shift towards high-end and technological products. Its market share last year was 36.7 per cent, down eight per cent year-on-year.
Some of these shifted orders were received by some other countries like Vietnam, Myanmar and Cambodia. Bangladesh is the second largest apparel supplier worldwide after China. One reason it could not take advantage of the shift in work orders is a shortage of capacity. While the number of garment factories was supposed to increase due to abundant work orders from western world, China, Japan and some other emerging markets, it did not pan out that way.
After the Rana Plaza building collapse in April 2013, the garment sector has not witnessed any major domestic investment except for the expansion of existing units by big garment companies. Also, more than 1,000 small factories faced closure due to strict inspection and remediation by Accord and Alliance. As a result, a capacity shortage has been created.
Bangladesh is therefore receiving a small quantity of work orders that are being diverted from China but the country is hopeful volume of such work orders will rise in the near future.
The Apparel Training and Design Centre (ATDC) encourages women to take up career in the apparel industry and makes efforts to nurture their talent, skills and dedication. There is visible recognition of women’s contribution in the apparel/fashion/retail sectors. There is recognition that when women join the workforce, the country progresses rapidly and their contribution to productivity increases the GDP of the country and the economic well-being of families. For women in general apparel manufacturing, design etc. are seen to be ideal jobs.
The institute has received an award from the Associated Chambers of Commerce and Industry of India for contributing to the development of women’s skills in the country.
ATDC is India’s largest quality vocational training provider for the apparel industry with over 200 centers pan India which offer the entire range of apparel-related vocational courses. These include 65 ATDC vocational institutes and over 135 ATDC-SMART centers and skill camps offering state-of the- art vocational programs. ATDC is probably the single largest training provider for any vocation in India and the single largest beneficiary or nodal agency for implementation of a government’s skill development scheme.
The courses are focused on the downstream apparel export and domestic manufacturing industries. Apparel Training and Design Centre has a mission to upgrade the technical skills of the human resources employed in the garment industry.
American Apparel, the iconic North American fashion brand that rose to stardom for its ‘Made in Los Angeles’ clothing and infamously fell into bankruptcy in 2015, is back in business. The brand has replenished its most in-demand apparel basics on an updated e-commerce website that looks almost identical to the old one. The fashion retailer is reconsidering its initial product pitch.
American Apparel is now shifting focus towards ethical production and dedicates sections on its website that talk about ‘green’ energy, healthcare prospects for workers and a more diverse marketing agenda in general. With credit to new ‘Globally Made’ approach, American Apparel’s product assortments, which have been dialed down to a curated set of AA Bestsellers at the moment, are being offered at much cheaper prices.
The brand is still trying to give America a chance by selling a series of identical product twins where one is made in the US and the other is ‘imported’. These will be displayed side by side on a brand-new page on their website. Although the American products are far more expensive and offer fewer options in terms of colours, the industry is keenly watching American Apparel’s endeavour as it has become a testing ground for the world to see if people actually want to buy local or not.
India has imposed an anti- dumping duty on 93 products including chemicals and machinery items imported from China. The other Chinese products on which India has imposed this duty include steel and other metals; fibers and yarns; rubber and plastic; electric and electronics; and consumer goods. In addition, 40 cases concerning imports from China have been initiated by the Directorate General of Anti-Dumping & Allied Duties.
India's exports to China include iron ore, cotton yarn, petroleum products, copper and chemicals, while imports include telecom instruments, electronic components, computer hardware, industrial machinery and chemicals.
Countries impose anti-dumping duties to guard domestic industry from a surge in below-cost imports. Anti-dumping steps are taken to ensure fair trade and provide a level playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products. India’s imports from China in 2016-17 have marginally dipped to $61.28 billion as compared to $61.7 billion in 2015-16.
India may impose an anti- dumping duty on castings for wind-operated power generators from China on the grounds the product has been exported to India from China at below normal value. Duties may also be imposed on a certain variety of Chinese pneumatic radial tires.
"As one of the largest printing markets in the world, textile industry has been offering newer avenues of growth to new age printing. Owing to its inherent advantages such as higher colour definition, shorter design time and lower production cost, the textile industry is witnessing winds of change. In this regard, Digital Printing Zone at Intertextile Shanghai Home Textiles will host more number of exhibitors, a series of seminars and the debut Digital Printing Micro Factory to reflect growing interest in the industry."
As one of the largest printing markets in the world, textile industry has been offering newer avenues of growth to new age printing. Owing to its inherent advantages such as higher colour definition, shorter design time and lower production cost, the textile industry is witnessing winds of change. In this regard, Digital Printing Zone at Intertextile Shanghai Home Textiles will host more number of exhibitors, a series of seminars and the debut Digital Printing Micro Factory to reflect growing interest in the industry. The exhibition, to be held from August 23- 26, will host over 1,200 exhibitors, presenting the full range of home textile products including upholstery fabrics, bedding & towelling, carpets & rugs, sun protection systems & curtain accessories, wallcoverings, original textile designs and digital printing solutions.
Digital printing micro factory
To enhance learning experience, the show will feature the Digital Printing Micro Factory for the first time, where four leading domestic companies will demonstrate the entire processing line from design software and printing machines to ink and final products. Being a leading Chinese large-format digital printing solutions providers, Twinjet Technology Development, specialises digital textile printers. They obtained support from brands like Dimatix and Ricoh to ensure printing quality and stability. Wuxi Pengda Science & Technology will present latest separation style hot transfer printing machine and automatic flat hot transfer printing machine in the Micro Factory. Apart from machines, sublimation transfer paper is another essential element throughout the digital printing process. Transfer Innovative Material (Suzhou) will showcase their highlighted transfer paper wherein customers can simply print patterns on the coated paper and heat transfer to most kinds of fabrics. The last member, Kushan Caidu Digital Printing, will illustrate their processing service in the Micro Factory.
Concurrent events
The 2017 Andrew Martin International Interior Design Summit will be held on the first two days where nine experts from interior design, architecture and art will discuss the transformation of design in new information era. There will be a Home Furnishing Crossover Exhibition where 40 designers and artists use furniture and installation art to illustrate new home living styles. Banking on last year’s success, Trevira will showcase inherently flame retardant fabrics and will invite visitors to create their own mood board with Trevira CS fabrics in a series of workshops.
Underlying themes
This year, China Home Textile Association, The Department of Home Textile Trend Research and Promotion, Concept & Style Fashion Project Group Italy have worked jointly to analyse global and domestic market together with consumer behaviour. From this, four themes were developed to express the 2018/19 Chinese home textiles trends: Down to earth: The tension generated by the increasing pervasiveness of digital screens and their sterility, leads to research an earthy connection, with roots and experience in nature. Connected senses: The digital revolution began with the transformation and transposition of an increasing number of ‘real life’ activities in expressible functions through digital entities. No borders: The multifaceted urban contest and the network are changing the way we perceive communities, identities and the way we pass a cultural substance. Re-thinker: We are in a period of transition, we eliminate the excesses to come to the lightness of being. We discover again the value of timeless classics, which are reinvented for the future.
To provide visitors with concrete ideas on trend concept and encourage companies to develop new products, the show will select products from exhibitors, which resonate the four trend themes presented in the Trend Area.
Global textile market is growing at a rapid pace. As a result, all segments related to textiles are growing as well. Here’s a sneak peek into the growth landscape of some of the promising textile segments that are slated to make a mark…
According to MRFR analysis, the global textile chemicals market size was estimated at $9.80 million in 2016, expected to expand at CAGR of over 3.2 per cent by 2022. Global apparel industry is expected to drive the market during this period. Increasing demand for technical textile across numerous end-use applications is also expected to be beneficial for overall market growth. Good qualities are used into technical textile products as compared to their conventional counterparts. Demand for technical apparel is increasing in the US amongst end-use industries such as home furnishings, apparel, industrial textiles, technical textiles the demand for specialty chemicals required for is production has also enlarged.
Textile colourant market
Textile colourant market is projected to increase to 6,248,000 tonnes in 2017. Demand is anticipated to remain steady due to growing applications in apparel and automotive industries. Owing to low labour costs and infrastructure development, demand is expected to remain higher in developing countries, among which Asia Pacific accounted 53 per cent revenue share in 2014. China colourants market is anticipated to grow at 5.2 per cent in value terms during this period. Excluding Japan, Asia Pacific remains the largest market for textile colourants globally expected to grow to 925.5000 tonnes in 2017.
Nonwovens
Global nonwovens market will grow to $50.8 billion in 2020, up from $37.4 billion in 2015, reveals Smithers Pira study. Global consumption in 2015 was 9.0 million tons and this will increase at annual rate of 6.2 and 7.2 per cent respectively over the next few years with consumption scheduled to reach 12.1 million tonnes in 2020. The nonwoven industry is now truly global and Asia is the dominant nonwoven producing region, accounting for 42 per cent of world’s production in 2014. China accounts for a significant 66 per cent of Asia volume and is the most important nonwovens producer worldwide with production volume in 2014 estimated at 2.4 million tonnes and increasing gradually.
Silk
A recent report highlights global silk market is projected to reach $16.94 billion by 2021, growing at a CAGR of 7.8 per cent from 2016 to 2021. Growth can be attributed to technological advancements in sericulture, which directly increases yield of silk, thereby affecting the silk market. Moreover, silk is a low capital investment industry, in terms of technology and labour, which is driving the market globally. The Asia-Pacific region is the largest market for silk. China dominates the silk market in the Asia-Pacific region followed by India due to easy availability of raw silk in the two countries.
Hosiery
Technavio’s market research predicts global hosiery market will grow at a CAGR of around 4 per cent. Consumers are looking for quality, durability, fit, style, and glamour while purchasing hosiery products. Increasing concern about personal grooming and appearance is one of the major market drivers. In terms of revenue, the socks segment dominated the global hosiery market in 2015 with a share of more than 69 per cent.
Technical textiles
Future Market Insights’ recent report on global technical textiles market projects Asia-Pacific will be the world’s largest for technical textiles from period 2017-2027. The report values the global technical textiles market at little less than $166 bn, and anticipates it to reach $260.3 bn by end of 2027. While global market for technical textiles is projected to grow at below average pace and register a CAGR of 4.6 per cent, demand is likely to gain traction across Asia-Pacific such as India and China, among others.
