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The Southern India Mills Association (SIMA) has welcomed the GST era for the textile industry. It says a seamless tax structure for the entire cotton textile value chain is a great step forward. With the implementation of GST, all indirect taxes would be merged. So far the textile industry had been suffering with numerous taxes and different types of cess which were not duty drawback compatible and therefore adding to the cost, thus making the industry uncompetitive especially the micro, small and medium enterprises and decentralized segments.
Various exemptions and loopholes in the laws enabled a major portion of manufacturers and traders in the textile value chain to opt for tax evasion by mis-declaration and by various other methods but that would end. The country, after independence, for the last 70 years was struggling with a complex tax structure, rigid and antiquated laws that were major stumbling blocks to achieve a sustained economic growth rate.
Tamil Nadu accounts for a third of the textile business in India. SIMA feels 2017-18 will be a good year for the cotton textile industry with a sound tax ecosystem and real time governance coupled with availability of surplus cotton. Interestingly, SIMA now wants some taxes and levies that are not subsumed in GST like the market committee fee and various other municipal taxes to be also scrapped.
Bangladesh’s shipments to Japan declined 3.7 per cent in the first 11 months of 2016-17. Earnings fell 16.09 per cent short of expectations.
But the country’s exporters hope to cross the billion dollar mark by the end of the fiscal year, an achievement already made in the EU, US and Canadian markets. Japan is Bangladesh’s single largest export destination among Asian nations and its market offers promising returns for quality apparel and leather and jute and associated goods. Japanese consumers are quality conscious. Exports to Japan have been soaring over the last few years maintaining nearly 20 per cent growth every year.
During the July to May period, Bangladesh exported garments worth $696.32 million to Japan. Of this, $374.38 million were from woven items and $321.94 million from knitwear. Japan wants to reduce its dependence on China for goods like apparels, electronic gadgets and home appliances.
Another catalyst has been the relaxation of the ‘Rules of Origin’ by Japan on knitwear and woven garments from least developed countries. This allows Bangladesh to enjoy a zero-duty trade privilege and a competitive edge against countries like China and Pakistan in meeting Japan’s annual demand for garments worth over 40 billion.
Bangladesh is keen to collaborate with India on various fronts such including supply chain, technology and textile education. Bangladesh is the world’s second largest readymade garment exporter and India is the second largest producer of manmade fiber and textile fabrics.
Bangladesh feels it can work with India for creating a supply chain, where it can source the raw material like cotton and manmade fiber, yarn and textiles and convert them into fashion apparels. In 2015-16, Bangladesh’s garment exports to India grew by 31 per cent. Bangladesh’s overall exports to India increased by 30.82 per cent at the same time.
Besides being the top cotton producer in the world, India possesses huge capacities for producing yarn and fabric, and is also among the largest manufacturers of manmade fibers, yarn and fabric. As a neighbor, India is ideally positioned to supply these inputs at lower prices and with lower lead times to the Bangladesh readymade garment industry.
Connectivity offers a game-changing opportunity for India and Bangladesh. This is pivotal to India’s connectivity with its north-eastern region and with countries of Asean. Equal emphasis on physical and institutional connectivity between India and Bangladesh will facilitate the exploration of more opportunities through trade and investment.
"ISPO Textrends highlighted the need for meeting personal goals, whether on a high performance level or through experiencing something new on a more leisurely and wellbeing approach. ISPO Textrends expert Louisa Smith says the outdoors market is expanding, brands should be aware of consumer needs, especially the millennials, who are reaching their peak purchase power, seeking out the much sought-after work/life balance, rather than just the hardcore sports participant at a professional level."
ISPO Textrends highlighted the need for meeting personal goals, whether on a high performance level or through experiencing something new on a more leisurely and wellbeing approach. ISPO Textrends expert Louisa Smith says the outdoors market is expanding, brands should be aware of consumer needs, especially the millennials, who are reaching their peak purchase power, seeking out the much sought-after work/life balance, rather than just the hardcore sports participant at a professional level.
Evolution of performance fabrics
In the outdoor market, there is a surge in high performance apparel, soft-wear, backpacks, tents and footwear, with the companies selected to feature in ISPO Textrends at the ISPO Shanghai delivering, not just on function but also style. There is an increase in water sports activities from kayaking to surfing, kite surfing to free diving that crosses over into street sports, inspired by athleisure that has dominated the activewear/lifestyle market. From attending music festivals to taking to travel, performance fabrics feature across a wider spectrum of the market than just the traditional sports market.
Products embrace mega trends
A key mega trend is ‘Moment’ with consumers realising they have an abundance of ‘stuff’ in the form of multiple gadgets, appliances and personal possessions, there is a notable mood to pushing forward to outdoor experiences to share on social media and via group apps. They now realise activities and experiences shared on social media have much more kudos than having the latest must-have item. This is about taking time out, encountering new experiences and locations in the great outdoors through to more extreme sports, and most importantly sharing it.
Fabrics selected for the season have also embraced the ‘Dynamic’ mega trend, focusing on renewed efficiency that comes into play as sustainability comes into focus. A range of recycled and biosynthetic fabrics feature alongside the inherent and also enhanced possibilities of natural fibres including cotton, merino wool and modal. Cleaner technology also comes through with one dye-bath processing, reducing water consumption to layering technology that adds value to the consumer, eliminating finishing process and harsh finishes.
Hybrid fabrics that reduce garment processing stage also feature as body mapping and zoning are applied into the fabric seamlessly, rather than being inserted by machine. The final mega trend, ‘Calm’, is evident through all selected products. With a noticeable nod towards lightweight qualities and a new sensual and soft touch in all sectors of the market without neglecting the multi-functional technically and creativity. Surface effects also come through, with the colour palette for the season ranging from a deep intensity contrasting with a fresh tropical tone through to muted hues.
ISPO Shanghai – a showcase for 2019 trends
From July 6-8, 2017, the innovative ISPO Textrends forum will highlight all latest developments for Spring/Summer 2019 at ISPO Shanghai. In addition, on July 7, there will be a fully illustrated presentation of not just trends and colour palette for this season but also a recap of the trends for Fall/Winter 2018-19.
France may cancel its financial offer for garment factory remediation if Bangladesh failed to make the required progress in this regard. A review of the progress in its credit facility program undertaken for upgradation of safety standards of the country’s export-oriented readymade garment sector didn’t satisfy France.
French development agency AFD aims at assisting and supporting Bangladeshi RMG factories to upgrade their safety standards (on a priority basis) as well as their social and environmental performances.
France is concerned about the slow progress in the preparation of the credit facility program to finance safety retrofits and environmental upgrades in the Bangladeshi readymade garment sector. Bangladesh is one of the cheapest places in the world to make clothes, and its plentiful supply of inexpensive labor has made it second only to China in global apparel exports.
Accord and Alliance together have inspected roughly 2,000 factories in Bangladesh for structural, electrical, and fire safety, most of which have at least begun a process of remediation. While both accords require participating brands to pay for inspections, neither requires companies to pay for the safety improvements themselves—which could total nearly a billion dollars nationwide. Brands typically commit to maintaining their orders if factories upgrade and might even pay for some orders in advance.
As per the report UK clothing import market has been seriously disrupted after announcement of Brexit. Decision of the UK leaving the EU has resulted in decline of overall clothing imports by 10 per cent in the first quarter of 2017 from a year earlier. In a report by Emerging Textiles , there is a significant difference between previous years, with export prices down and volume of imports increasing, however the report mainly focused on knitted and woven garments,
This difference is sharp with what had been experienced in the previous years, when export prices were lower and volumes had sharply increased in UK
During the first quarter, UK’s clothing shipments from outside the EU increased by 1.5 per cent versus a decline of 4.9 per cent in the first three months of 2016, while the average unit value rose 17.5 per cent as against a slight rise of 0.6 per cent in the same quarter of 2016. There was a jump in export prices by more than 20 per cent in woven suits and trousers. But, in woven suits and trousers, the level of imports in volume has dropped by double-digits, according to the data released by EURATEX.
Mitsuhiro Shima is president of Shima Seiki. He was the vice president. He replaces his father and company founder Masahiro Shima. Masahiro is now chairman of the board of directors.
Mitsuhiro Shima joined the company in 1987. He became a director in 2002 and executive director in 2007. He has been in charge of system development, machinery production, material purchasing and corporate planning before becoming vice president in 2012.
The transition takes place during financially favorable times, just as the company announced one of its best fiscal years in its 55-year history. This includes a 25.9 per cent increase in net sales, a 94.8 per cent increase in operating income, and a 121.6 per cent increase in net profit over the previous fiscal year.
Shima Seiki is a Japanese flat knit machine manufacturer. Founded in 1962 and soon became an industry pioneer with Masahiro's invention, the fully automated glove knitting machine and the fully automated seamless glove knitting machine. The seamless glove became inspiration for the eventual development of the seam-free whole garment knitting technology for which the company is now best known. Meanwhile it became an industry leader through its continuous innovation and consistent renewal of benchmark technology which more often than not has become the reference standard for the industry.
In 2016, 40 per cent of European e-shoppers purchased goods or services from a vendor located in an EU country different from theirs. There is still a significant growth margin, especially considering the high number of European small businesses and SMEs which sell internationally in France alone, the national e-commerce and distance selling federation FEVAD estimates that 55 per cent of them presently do.
In terms of cross-border purchases the Spanish market has 58 per cent of local e-shoppers spent money abroad last year. A practice, which is popular in Italy too, with 47 per cent of consumers going cross-border. On the other hand, the huge German market, home to many European e-tail leaders, has a different approach, with only 26 per cent of consumers going cross-border. As for the UK, the largest e-market in Europe, its figure is consistent with the European average, at 40 per cent.
In 2016 the European e-tail market was worth €530 billion, and UK e-tailers were with €174 billion, a figure which is expected to come close to €200 billion in 2017. Germany follows the UK at a distance, with an e-tail market worth €77.9 billion, and France is third with €72 billion.
At the end of 2015, only 7.5 per cent of Eurozone e-tailers were selling abroad. According to FEVAD, 68 per cent of leading websites are now retailing internationally. In early 2017, a report compiled by e-commerce market researcher yStats revealed that more than 50 per cent of online shoppers worldwide make transactions via e-tailers located in a country different from theirs.
EU for a long time has worked on harmonising community regulations regarding e-commerce. Initially, the regulators had to deal with the free-returns policy adopted universally in Germany, which the country's e-tailers are keen to preserve. At present they are faced with another huge challenge in the form of Brexit, with its as yet undefined impact on transaction duties.
Iconic denim brand Wrangler has joined Field to Market: The Alliance for Sustainable Agriculture, a multi-stakeholder initiative working to unite the agricultural supply chain in defining, measuring and advancing the sustainability of food, fiber and fuel production in the United States. It engages in broad communication and collaboration with agricultural stakeholders to ensure a coordinated, outcome-based approach to sustainable agriculture grounded in science. By providing useful measurement tools and resources, Field to Market helps brands and growers track and promote continuous improvement at the field level.
Wrangler is the first major apparel brand to join the initiative, as an associate member working to help increase the supply of sustainable cotton. The brand buys roughly 50 per cent of its cotton from US growers. Wrangler is taking a leadership role in catalyzing continuous improvement in the sustainability of US cotton.
Wrangler will coordinate with Field to Market to focus on cotton-growing practices that not only reduce environmental impacts but also improve profitability for growers. Wrangler plans to work with Field to Market to create a program that includes scores of growers who are focused on journeys of continuous improvement for healthy soils, collectively focused on achieving the best possible results for yield, irrigation water use, efficient input use, soil conservation and reduced emissions.
The China Cotton Association (CCA) and Cotton Association of India have signed an MoU for co-operation on a host of matters relating to cotton, including regular exchange of delegations between the two trade bodies, training, information exchange and dissemination and speedy resolution of member’s issues, among others. The partnership will go a long way in making cotton trading safer in both countries, says CAI. Nayan C Mirani, President CAI says, India and China are the largest cotton economies, and signing this MoU will go a long way in resolving the issues faced by traders in both the countries.
This MoU will promote Indian cotton in China and cover the way for good trade practices and cooperation between both.
