FW
Donear has acquired Grasim Bhiwani Textiles. The acquisition will give the Donear Group world class manufacturing capabilities, an iconic fabric brand and access to marquee customers globally. It will significantly enhance Donear’s product portfolio, give it access to a strong nationwide retail network, wholesalers and multi-brand outlets through which Donear can expand its reach.
Grasim is the country’s largest manufacturer of PV and PW suiting, selling its products under the Grasim and Graviera brands in India and abroad. The biggest strengths of Grasim Bhiwani are its quality-conscious trade partners and global customers, who have been associated with it for a long time.
Grasim Bhiwani caters to international fashion houses in the US and the UK, supplying fabric to them for making garments. These garments are available in some of the largest retail chain stores. Donear aims to build further on Grasim’s existing strengths. Both Donear and Grasim Bhiwani will maintain their individual identities and stay committed to offer the best products and services to their valued customers as one team.
Textile is Donear’s core business. It has a production capacity of around 45 lakh meters a month. Donear also has a strong international presence. With a comprehensive product basket, the company is supplies fabrics to India’s largest brands including Louis Philippe, Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle and more.
Chinese apparel export was growing exponentially till 2014 and later it showed a steep decline. In 2014, Chinese global apparel export was the highest ever and within two years it has lost 14.79 per cent of its exports. Due largely to its skilled workforce, China is ranked the number one textile and clothing exporters in the world producing over 43.1 per cent of global demand. However, now China is concentrating more on value adding tech intensive products. China’s textile industry is shifting gears for several reasons including higher costs of production and scarcity of a skilled labour. Exports are on the decline but the sector still maintains its key position in the world.
As per the 13th five-year plan of Chinese Government for 2016 to 2020, China is strategically moving towards more value adding tech intensive products. The plan is to maintain traditional market share and grow more on high value adding product range. Data indicates China is losing its export dominance since 2015 in almost all product sectors in textiles and clothing industry which are largely divided into eight major categories such as garment, cotton fabrics, chemical fabrics, wool fabrics, silk fabrics, knitted fabrics, textile machinery and best fiber.
An analysis of China’s Textile Industry Development Report (2014 to 2015) shows textile fiber production in China touches 50+ million tons, accounting for 54.36 per cent of world share. As much as 64.2 per cent of the world’s chemical fibers, 64.1 per cent of synthetic fibers and 26.2 per cent of cotton were produced in China. Further, apparel production in China reached 29.9 billion units in 2014, which is 10.4 per cent higher as against 2013. This huge production capacity of China gives a clear view that it is very probable that China will remain the top apparel sourcing country for international buyers.
C&A the global apparel retailer has disclosed details of its more than 2,000 suppliers from 40 sourcing countries. C&A published the supplier list in its new sustainability report, which included the addresses and names of suppliers, number of workers and product category of its entire Tier-I (cut and sew production units) and Tier-II (printing, laundries and embroidery) production units.
C&A global chief sustainability Officer Jeffrey Hogue says transparency leads to more accountability and behavior change: our priority is to ensure that the working conditions in our supply chain are upheld to our standards and the social and environmental performance continually improved. By being transparent about where our products are made, the customers and stakeholders can feel confident that they are making good choices in the partners and how the clothing is made.
In its new global sustainability report, C&A has disclosed its supplier list for three core reasons that is to be completely transparent about where its products are made, to improve worker rights within suppliers’ factories and to provide an open channel to problem-solve major labor issues.
At present C&A assesses suppliers based on Sustainable Apparel Coalition’s (SAC) Higg Index, which is universally used by many major apparel brands. The company updates its audit protocols annually to reflect transparency progress within its supply chain. To further promote transparency, C&A is working with a new set of zero-tolerance issues, including excessive working hours and failure to pay minimum wages, which will be taken into consideration for suppliers from this year forward. C&A aims to have 100 percent of its products derive from top-performing suppliers and go beyond auditing to fully engage workers in its global supply chain by 2020.
Austrian fibre maker, the Lenzing Group, known for its textile and nonwovens cellulose fibres is set to construct a state of the art ‘Lyocell fibre’ production plant in Thailand. The plant would be set up at Industrial Park 304 in Prachinburi Province of Thailand by the end of 2020. The choice of location was due to its extensive infrastructure, numerous tax benefits, availability of labour, competitive land cost, certified drainage system and sustainable biogenic energy supply. The production facility will have an annual capacity of 100,000 tons of fibres.
The decision to establish a plant in Thailand is part the brand’s strategy focused on strengthening the company’s core business operations. This is done by enhancing cooperation with buyers across the textile value chain to increase their share of specialty fibres to 50 per cent of the total group’s revenue by 2020 and further expand their geographical footprint.
SPG Prints has doubled the size of its digital ink production facility at its Netherlands headquarters. The investment in the ink plant expansion is another step towards SPG Prints’ goal of making digital the mainstream printing technology for textile applications. SPG Prints is a leader in the production of digital textile printing systems. The company manufactures reactive, acid, disperse and sublimation inks for use with digital inkjet printers, covering the full range of textile applications. For more than 30 years, the company has, through its innovation, led the textile industry in digital technologies.
The combination of research and development, print head expertise, close relations with print head suppliers, and its ink manufacturing capability gives SPG Prints a unique position in the textile market. The increase in the volume of its ink production means that it will continue to be able to serve the expanding digital textile printing market.
SPG Prints is active in the textile, label and industrial printing markets. It provides total system solutions, with a portfolio including screens, lacquers, inks, digital engravers, and a broad range of rotary screen and digital printing systems. The company has applied its electroforming expertise to developing both highly reliable rotary screen technology and an extensive program of precision metal products.
The Turkish ready-to-wear industry is entering the US market in a big way. A 4,000 sq. ft. showroom is opening in the heart of New York’s garment district. And 10 different Turkish brands and showrooms will be organized at the center, targeting American fashion and ready-to-wear companies. Brands and manufacturers will exhibit their different products from street fashion and maternity clothing to women’s knitwear and denim.
The US is the biggest ready- to-wear importer of the world. Clothing and textiles is among the largest and best-performing sectors of the Turkish economy, accounting for around seven per cent of the country's GDP. There are some 56,000 textile and clothing companies operating in the country.
Exporting ready-to-wear clothing is better for Turkey financially compared to exporting just the cotton. Turkey’s apparel and textile industry has been a powerful engine for Turkey’s economy, roughly ten per cent of the entire GDP, and now the country is looking to expand that success by expanding exports to as many countries as possible.
Turkey is a select few countries that mandates that all its textile manufacturers comply with internationally accepted environmental standards. As an example, unlike many Far East and Asian countries, Turkey bans the use of carcinogenic dyes. This results in more environmentally safe products.
Vietnam sees Australia as a great market for garments, handbags and leather footwear. Australia boasts of great purchasing power although its population is less than that of the US and Europe. Vietnam is second among the countries exporting footwear products to Australia.
In the first quarter of 2017, two-way trade between Vietnam and Australia reached AUS$1.35 billion. Vietnam exported goods worth AUS$687 million to Australia, up 8.3 per cent, while importing products worth AUS$665 million, down 18.6 per cent compared to the same period last year. During the period under review, Vietnam earned AUS$50 million from footwear exports to Australia, up 24.6 per cent, and AUS$42 million from garment and textile products, up 13.6 per cent.
Australia has a project that teaches Vietnamese companies how to produce higher value products made from Australian wool. They are taught about what yarns to buy, how to dye wool, and finish fabrics or garments made from it. At one time Vietnamese companies had no idea about making garments from wool. They generally used cotton, acrylic and polyester.
The next step in the setting up of wool manufacturing supply chains in Vietnam as Australia is establishing wool spinning plants in Vietnam. The focus will be on raw wool scouring and top-making, enabling greasy wool to be sold and exported directly from Australia.
"Exhibitors, experts and media held discussions about upcoming trends and dynamics of global fashion industry at the ongoing Hong Kong Fashion Week. They exchanged views from different markets. In his opening remarks Byron Lee, Senior Exhibition Manager said, “Despite clouds on the global textile horizon, this fair and Hong Kong in particular is standing tall.” According to research, in first six months of the year, Hong Kong has grown modestly by approx. 5 per cent, exporters’ confidence index also, for the first time in last couple of years, is pegged above 50 per cent."
Exhibitors, experts and media held discussions about upcoming trends and dynamics of global fashion industry at the ongoing Hong Kong Fashion Week. They exchanged views from different markets. In his opening remarks Byron Lee, Senior Exhibition Manager said, “Despite clouds on the global textile horizon, this fair and Hong Kong in particular is standing tall.” According to research, in first six months of the year, Hong Kong has grown modestly by approx. 5 per cent, exporters’ confidence index also, for the first time in last couple of years, is pegged above 50 per cent.
Other speakers included Lawrence Leung, Chairman, HKTDC Garment Advisory Committee and Kaylie Kan, Vice Chairman, Hong Kong Apparel Society. Sharing their insights about the fair, Lawrence mentioned in this edition quite a few new forums/features have been added, viz., ‘The Urban Clothing’ & ‘Fashionable Sportswear’. Besides new countries like Saudi Arabia, Vietnam, Canada & Nepal, overall 20 countries are presenting their know-how.
Stabilising global economy
Talking exclusively to FashionatingWorld, Lawrence said the global economy is on a recovery mode on the back of US economy stabilising. “Moreover, the EU is likely to revisit the figure of how long quantitative easing is required. But no one alone can pull the global economy out of woods in this ever connected and collaborative economy; especially when purchasing power of an individual globally is under pressure and clearly there is under trading in quite a few categories in the ever changing and evolving consumer behaviour matrix.”
Lawrence pointed out there is a clear rebalancing of power and sourcing hubs. “Notably, manufacturing is shifting base to newer production hubs. Case in point is China, which had a great economic vision of investing heavily into infrastructure, isn’t cheap any more. More and more Chinese companies are taking offshore manufacturing route by exploiting the cost arbitrage of low cost production centres such as Cambodia, Vietnam, Bangladesh, Myanmar and other competitive Southeast Asian countries. Chinese state policy/ vision is very clear and increasingly textile & clothing sector is consciously moving to hi-tech, advanced technology and value addition where it is profitably sustainable.”
Hong Kong gaining stronghold
Experts felt with inherent advantages, Hong Kong will continue to sustain its position as a apparel sourcing hub in the future. These advantages include: low cost of financing/ funding; supportive banking system and highly competitive and advance fintech/financial service sector; use of global language both in communication and deep understanding of the global buyers’ needs especially the US buyers from where it generates bulk of business; global laws are followed, which are easy to interpret and execute. It has been able to provide unmatched designing and innovative inputs at a time when fashion cycles are shortening and the buyer is desperately looking to develop some cutting-edge solutions and services to outperform competition. Superior logistics support and easy access of Hong Kong makes it a gateway to the East and West.
Union textile minister Smriti Irani inaugurated the country’s largest apparel trade show, the 65th National Garment Fair in Mumbai and released the show directory. Also present on this occasion were Kavita Gupta, Textile Commissioner, Sanjay Lalbhai, Arvind Group and Kishore Biyani, CEO, Future Group.
Around 50,000 retailers from all over India are attending the three-day B2B fair. On display are 1,005 brands from 822 exhibitors spread across around 6 lakh sq. ft. covering all the halls of the Bombay Exhibition Centre. The stalls was categorised into four zones: men’s wear, women’s wear, kids wear and accessories.
The business networking sessions continued with three sessions comprising agents and distributors; high street retailers; national chain stores and e-commerce companies. Speaking on the occasion Rahul Mehta President, Clothing Manufacturers Association of India (CMAI) said despite welcoming GST in textiles and garments, the government should reduce GST on job work for garments and made ups from 18 per cent to 5 per cent. He also gave an insight on the ‘ADHIGAM’ the new software designed for the textiles and garment manufacturers, traders and retailers to ensure GST compliance. The software automatically converts regular invoices to GST compliant invoices sending reminders to vendors/suppliers who have not paid tax at any stage of the textile value chain.
"Exports of technical textiles outside EU-28 increased year-on-year. This sector is a pillar of textile exports outside the EU with a 38 per cent share in 2016. The growth translated into almost €10 bn of exports, an increase of more than 2.4 per cent in value. With 20 per cent of technical textile purchases from the EU-28, the USA the biggest client."
Exports of technical textiles outside EU-28 increased year-on-year. This sector is a pillar of textile exports outside the EU with a 38 per cent share in 2016. The growth translated into almost €10 bn of exports, an increase of more than 2.4 per cent in value. With 20 per cent of technical textile purchases from the EU-28, the USA the biggest client.
With a plus 2 per cent year-on- year increase, menswear exports outside the EU-28 still accounted for 23 per cent of total clothing exports amounting to more than €5 bn. The leading buyer of menswear, Switzerland, reduced its purchases in value (-3.9 per cent). There was noteworthy double-digit growth in the value of exports to South Korea, Australia, Mexico, Serbia, Israel and Ukraine. The three major menswear products for export were trousers (32 per cent of category exports), shirts (19 per cent) and coats (17 per cent). Purchases of all three were up, thanks to the weak euro (€). Furthermore, exports of rugs and carpets outside the EU-28 expanded again strongly in value by +5.5 per cent. This sector represented 4.3 per cent of all textile exports outside the EU. Customer-wise, the four main buyers (USA, Switzerland, Norway and Russia) absorbed 49 per cent of exports of rugs and carpets outside the EU.
EU imports surge in home textiles and clothing
Homebuilding activity varied widely depending on the member state, and purchasing of homeware. Nevertheless, imported home textiles took advantage of lower average unit prices, resulting in a rise of plus 3.3 per cent in value corresponding to an increase of €192 million. This growth was mainly attributed to bed and home linen. Import of home textiles from outside the EU reached €6 bn and mainly divided among four countries: China (33 per cent), Pakistan (25 per cent), Turkey (16 per cent) and India (11 per cent). Besides, there were remarkable gains in value for Vietnam, Morocco, Taiwan and Ukraine.
In 2016, EU’s menswear imports increased to more than €20 bn (25 per cent of total clothing imports), with a plus 0.5 per cent increase in value and +4.4 per cent in volume terms, leading to a -3.7 per cent fall in the average unit price. Of the five main imported menswear items (trousers, shirts, coats, underwear, jackets), only shirts suffered weak demand. China remained the main supplier of menswear. In value terms, its share of total imports stood at 28 per cent, representing another year of steady decline. The EU-28’s second ranked supplier, Bangladesh, continued its rise adding +8.5 per cent to improve its market share. A comparable situation was observed in imports coming from Pakistan, which added +5.8 per cent in value.
Imports of womenswear reached €29 bn (36 per cent of total clothing imports), with a +0.8 per cent increase in value. Imports rose for the five main imported items: trousers, skirts and dresses, coats, blouses and underwear. China continued to be the main supplier but its share is being eroded year-on- year. Due to continued annual expansion of its import share, Bangladesh was inevitably next in line, with value increasing by +13.7 per cent. In third place, Turkey continued to be a preferred traditional supplier even with a slight dip of -0.3 per cent. Among other clothing articles, EU imports of worn clothing achieved an outstanding growth while pullovers & cardigans have pointed down.
