FW
Timberland X Thread is a range of men’s footwear, backpacks, bags and T-shirts. This is a collaboration between global outdoor lifestyle brand Timberland and Thread, a company that transforms plastic bottles into fabric. It combines Timberland’s large supply chain and loyal customer base with Thread’s responsible, transparent approach to creating premium fabrics and vital jobs in the developing world.
Both companies look beyond the environmental value of recycled plastic bottles to focus on responsibility, transparency, and creating social value. The shoes and boots are crafted with durable uppers in Thread fabric made with 50 per cent post-consumer recycled PET, 50 per cent recycled PET mesh lining for comfort and breathability, and a durable outsole made of 15 per cent recycled rubber.
Duffel bags and backpack are made with Thread fabric and waterproof leather trims. T-shirts are made with 50 per cent Thread fabric and 50 per cent reclaimed cotton from fabric scraps.
The partnership comes on the heels of Timberland’s support last fall of Thread’s initiative which addresses the problem of undignified and child labor in global supply chains, with a targeted focus on Haiti. Timberland supports the people of Haiti following a five-year tree-planting effort to help smallholder farmers reach self-sufficiency. Timberland hopes to transition from being a supporter of smallholder farmers to purchasing cotton from them for the brand’s supply chain.
Switzerland-based inventor of electronic yarn traverse system SSM (Schärer Schweiter Mettler) will be exhibiting at the forthcoming Techtextil exhibition for technical textiles and nonwovens, Germany, May 9 to 12, 2017.
The Schärer, Schweiter and Mettler companies merged in 1989 to become SSM. SSM is an established leader in air texturing. The company can also offer a complete portfolio for processed yarns. The unique characteristics of tailormade high performance yarns helps such yarns to substitute other classical materials in a large range of applications, thereby continually increasing the use of technical textiles and consequently their consumption. Despite this overall positive scenario, production lot sizes can vary greatly, from large ones for standard yarns to small ones for specialties. Managing such variances poses a challenge for any producer.
The SSM DURO-TW precision winder for technical yarns offers a new level of flexibility and winding quality in one machine. The assembly winder DURO-TD allows the plying of multiple ends or yarns. Optional intermingling guarantees loop-free twists as well as optimal unwinding during twisting. The ability to run closed precision winding enables higher package densities, thereby increasing the knot-free length. SSM also offers the complete range of sewing thread finishing machines.
In the past six months the value of New Zealand’s wool exports has fallen 10 per cent. The wool industry has had a tough season so far. China used to buy 60 per cent of New Zealand’s wool exports but no more. There has been a sharp decline in exports to China for a large part of last year. Also there has been a huge change in the value of the New Zealand dollar against the currencies in which wool is exported. Against the sterling, the New Zealand dollar is 30 per cent stronger than it was for the same time last season.
The value of medium wool exports per ton dropped by over 9.4 per cent. Fine cross bred wool is down 21 per cent and strong wool is down 12.5 per cent. The only rise in value is for fine wool. Fine wool returns are up about two per cent. Wool operations are becoming not really profitable. Overall low prices have made it hard for farmers to get decent prices. The cost of shearing is also hitting farmers.
Wool from New Zealand is cruelty free. Extra care and attention goes into the shearing process to secure the safety and well being of the sheep. The wool is not chemically processed and is sold in its raw, natural state.
Sri Lanka feels apparel exports are no longer viable and that it is time to look at other growth areas that promise better returns. The country is looking at production of electronic items such as mobile phone accessories and robotic machine spares since China has decided to use around 4000 robotic machines for production.
Another profitable area would be parts of electronic and electrical goods and other modern equipment which are needed by Japan and which are manufactured in countries such as Thailand.
With this in view, Sri Lanka is planning to introduce technology in schools soon. Sri Lanka is convinced in RMG, competing with countries such as Bangladesh where wages are lower is futile. While productivity and speed are Sri Lanka's hallmarks in the current fast fashion landscape, its garment makers are acutely aware that changes are afoot. Whole industries have been wiped out or completely changed because of technology. Competition from countries like Vietnam could deal a blow to the South Asian nation’s apparel export industry.
While Sri Lanka has been successful in establishing and growing its apparel manufacturing industry, more can be done to realize its potential as a regional hub and to continue to boost opportunities, especially for women and the poor.
Textech, the textile and garment exhibition, with over 200 stalls from six countries, will be held in Sri Lanka from March 9 to 11, 2017. The event showcases products like chemicals and dyes, office and commercial supplies, computer hardware and software, industrial products, printing and publishing, plant, machinery and equipment, textiles, fabrics and yarns. Investors and international textile and apparel players are looking at Sri Lanka with renewed interest.
One reason is the country may regain GSP Plus on exports to the European Union. This could expand export earnings of the country. Sri Lanka could enjoy the preferential tariff regime of the GSP Plus facility with the European Union until 2023.
GSP Plus is only awarded to countries in the low and lower-middle income categories and an upgrade to an upper middle income country makes it ineligible. Sri Lanka’s apparel exports account for over 50 per cent of its export earnings. Sri Lanka has always been an important location for apparel firms. And Sri Lanka’s garment exporters have a design-to-deliver supply chain. This means design, manufacture and logistics such as delivery are carried out in Sri Lanka. Meanwhile exporters are also teaming up with industry players in China and Hong Kong to improve overall supply chain management.
Kyrgyzstan plans to create a full cycle of industrial production to develop its textile industry especially sewing. Kyrgyzstan’s sewing industry consists of small and medium-sized enterprises and provides about 1,60,000 jobs. The sewing industry is improving the skills of workers and upgrading production facilities and equipment.
The industry is now planning to enter new markets like Germany and Belarus. Kyrgyzstan is now creating a value chain in the apparel industry. All production stages will be merged into a single scheme, starting from farmers who grow cotton to sewing shops.
Garments make up seven per cent of the country’s total exports. Since 2013, there has been a decline in garment industry due to the global financial crisis, and falling orders due to lower purchasing power in Kyrgyzstan’s main export markets — Russia and Kazakhstan. More than 80 per cent of the garment products in Kyrgyzstan are produced by individual entrepreneurs who work under patents and do not report to the National Statistical Committee.
The just concluded 9th International Trade Fair in Bishkek dedicated to products and equipment in the fashion was aimed at strengthen business contacts and expanding cooperation between companies working in the garment and textile industries. More than 50 sewing, textile and handicraft enterprises, as well as representatives of companies from Uzbekistan, China, Russia, Turkey and India, took part.
Bangladesh and Kenya are looking to enhance bilateral trade. They are working on removing barriers such as the existing 25 per cent duty, ensuring smooth supply of raw materials and enhancing technical support. In the last fiscal, Bangladesh earned $10.78 million from exports to Kenya and knitwear exports stood at $0.38 million.
Kenya is preparing itself as one of the representative countries for garments made in the East African region. Agricultural products are central to Kenya's export industry with horticulture and tea being the most important.
Bangladesh is the world’s second biggest apparel exporter after China. Garments including knit wear and hosiery account for 80 per cent of export revenue. Bangladesh has a population more than four times Kenya’s but a lower dependency ratio, as population growth has been slower. Labor force skills - measured by the average number of years of schooling of the working-age population - have increased in both countries.
International sea freight transport costs have, until the late 1990s, been markedly higher in Kenya than Bangladesh. Inland road haulage rates remain higher, because haulage is more cartelised in Kenya than in Bangladesh. Labor costs in manufacturing have been lower in Bangladesh than in Kenya.
Australia wants India to turn into a major cotton buyer. India happens to be a big market for cotton. India is the largest producer and consumer of cotton globally. One advantage is that Australia has nearly 1,200 cotton growers and can supply even small quantities of cotton to India. Also Australian cotton finds favor with Indian spinners. Indian textile mills use Australian cotton as a blend to produce high value garments.
Where India used to purchase some five to seven per cent of cotton produced in Australia every year, in 2016 this shot up to nearly 23 per cent. Australian cotton is known for its quality and strength. And the country has what Indian spinners really need, long staple cotton. At present, Australian cotton and Indian cotton prices are almost at par.
There are more than 1,200 cotton farms in Australia. Australian irrigated lint yields are the highest of any major cotton producing country in the world, being about three times the world average. Most of this yield gain is attributed to seed technology.
Cotton represents 30 to 60 per cent of the gross value of total agricultural production in Australia, on an average year, Australia’s cotton growers produce enough cotton to clothe 500 million people.
"Amid various ups and downs, the Indian denim sector has been able to sustain its growth momentum. Going ahead, it is expected to grow at a faster rate in spite of India’s apparel exports as well as the domestic market expected to register sluggish growth. Growing at a CAGR of 13 to 15 per cent y-o-y, the denim segment is registering growth at a time when overall apparel growth rate is being pegged at a lacklustre figure of 3-5 per cent, down from 12-15 per cent growth seen during the past couple of years."
Amid various ups and downs, the Indian denim sector has been able to sustain its growth momentum. Going ahead, it is expected to grow at a faster rate in spite of India’s apparel exports as well as the domestic market expected to register sluggish growth. Growing at a CAGR of 13 to 15 per cent y-o-y, the denim segment is registering growth at a time when overall apparel growth rate is being pegged at a lacklustre figure of 3-5 per cent, down from 12-15 per cent growth seen during the past couple of years.
Decoding denim performance
Denim makes up a sizable share of India’s total textile exports and production is expected to increase to 1.5 billion metres by 2020. Indian denim industry is primarily aiming to increase its exports share, currently pegged at 35 per cent of production compared to domestic consumption of 65 per cent. P R Roy, Chairman of Diagonal Consulting (India) points ut, denim is witnessing one of the fastest growth rates as an apparel fabric segment, up by 500 million metres from 700 million metres in 2010 to 1.2 billion in 2015. Yet, there is a gap of another 300 million metres if the denim industry needs to tap its full export potential.
As per Prashant Agarwal, joint MD, Wazir Advisors while total denim fabric capacity in the country is about 1.2 billion metres per annum, utilisation is at around 900 million metres, of which 250 million metres are exported. However, denim apparel exports is around 50-60 million metres, says.
Global denim market
Global denim market is slated to grow at about 8 per cent annually from $55 billion in 2015 to $59 billion in 2021. While the projected growth rate in Asia including India is around 12 per cent, that for Latin America, North America and Europe is expected to be around 15 per cent, 10 per cent and 4 per cent, respectively in the next six years, according to industry experts. Statistics by the National Bureau of Statistics of China indicate that the country’s denim export is dwindling.
Xintang used to be the most vibrant denim manufacturing centre of the world, which is facing several issues today. With initial investment from Hong Kong, cheap migrant labour from China’s inland provinces and a relatively accommodating local government policy framework, the town was an ideal manufacturing zone for international brands like Zara, Gap and H&M, until quite recently. This small town in Guangzhou province was home to more than 3,000 companies in the jeans and denim business, whose 200,000 workers cut and stitched 800,000 pairs of jeans a day.
That’s how things were before China’s labour cost increased by at least five fold during the past decade. Owing to low cost operations in India, Bangladesh and Vietnam, companies started investing in these regions and China’s denim sector started experiencing downfall. Having said that, it just doesn’t offer promising paradigms for Indian manufacturers in the wake of powerful opponents such as Bangladesh and Vietnam. To continue the growth story, consumption of denim apparel has to grow as well. US, a major consumer of denim apparels, has witnessed sizable decline in imports.
Country counting
China has maintained 26.5 per cent share of US denim imports; a year-to-date total of $522 million, down 4.4 per cent from last year. Unit imports from China dropped by 8 per cent but the average cost per garment rose by 4 per cent. The 7 per cent increase in men’s jean imports from China was more than offset by a 9 per cent drop in women’s jeans imports.
US brands imported $470 million worth of jeanswear from Mexico between January and July, or 11.7 per cent less than in 2015. Total units from Mexico fell by 6.4 per cent, with the average cost per pair down by almost 6 percent to $8.13. Men’s jeans comprised almost 90 percent of US denim imports from Mexico and were responsible for most of the decline from that country as well.
Imports from Bangladesh, the US’s third-largest source of denim apparel, increased by 8 per cent, with units up 11.7 per cent and average cost down by more than 3 per cent, with women’s seeing most of the gains. Bangladesh is a major supplier of jeanswear to many of the fast fashion retailers. Vietnam experienced the biggest increase, whose denim exports to the US rose by 16.1 per cent so far this year, to $78.7 billion. Women’s jean imports from Vietnam rose by almost 17 percent, to $86.6 million.
Vietnam is currently ranked among the world’s top five textile and apparel exporting countries. This means the country needs a lot of raw material, especially raw cotton. Vietnam’s cotton imports are likely to reach five million bales in the 2016-17 financial year. The US will be one of the biggest beneficiaries. Cotton imported from the US has made up around 40 per cent of Vietnam’s total cotton imports over the past few years.
Vietnam’s cotton consumption has been increasing at an average 22 per cent year on year for the last five years. Domestic cotton consumption for 2014-15 represented a 35 per cent growth in quantity from the previous year. Vietnam’s spinning industry is expected to consume a lot of raw cotton in 2015-2016, up by 25 per cent from the previous year.
Vietnam is home to over 100 spinning mills with an estimated capacity of over 9,00,000 tons of cotton-based and manmade yarns. Up to two thirds of Vietnam’s cotton imports are spun in foreign-owned mills. The country’s textile and apparel exports are expected to have even bigger growth in the near future, thanks to several free trade agreements, such as the Trans-Pacific Partnership, the free trade agreement with the EU, and that between Asean and China and between Vietnam and Korea. This also means that Vietnam will remain as one of the fastest growing cotton importing countries.
