FW
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held several discussions with Chinese sewing machine manufacturer Jack Technology Co to explore potential partnership opportunities and boost RMG competitiveness in the country.
The association hosted a delegation from Jack Technology, led by CEO Yangyou Qui, at the BGMEA Complex in Dhaka. It was represented by President SM Mannan Kochi, Senior Vice President Khandoker Rafiqul Islam, and other key officials.
During the meeting, the two parties delved into various aspects of the Bangladesh garment industry, including its development trends and the current global market situation. They highlighted the critical need for cooperation to enhance the industry’s competitiveness through innovation and technological advancement.
SM Mannan Kochi emphasised the significant progress made by Bangladesh in becoming a competitive hub for high-value garment products. He urged Jack Technology to support the industry by facilitating technology transfer and sharing expertise in advanced machinery. This collaboration would be instrumental in driving the industry forward, enabling it to meet global standards and maintain a competitive edge, he suggested.
The delegation from Jack Technology also shared insights into the latest innovations and technological advancements in sewing machinery, which could be pivotal for Bangladesh's garment manufacturers in enhancing productivity and quality.
Both parties agreed that a strategic partnership focusing on technology transfer and innovation would not only benefit Bangladesh’s RMG industry but also strengthen trade relations between Bangladesh and China.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held several discussions with Chinese sewing machine manufacturer Jack Technology Co to explore potential partnership opportunities and boost RMG competitiveness in the country.
The association hosted a delegation from Jack Technology, led by CEO Yangyou Qui, at the BGMEA Complex in Dhaka. It was represented by President SM Mannan Kochi, Senior Vice President Khandoker Rafiqul Islam, and other key officials.
During the meeting, the two parties delved into various aspects of the Bangladesh garment industry, including its development trends and the current global market situation. They highlighted the critical need for cooperation to enhance the industry’s competitiveness through innovation and technological advancement.
SM Mannan Kochi emphasised the significant progress made by Bangladesh in becoming a competitive hub for high-value garment products. He urged Jack Technology to support the industry by facilitating technology transfer and sharing expertise in advanced machinery. This collaboration would be instrumental in driving the industry forward, enabling it to meet global standards and maintain a competitive edge, he suggested.
The delegation from Jack Technology also shared insights into the latest innovations and technological advancements in sewing machinery, which could be pivotal for Bangladesh's garment manufacturers in enhancing productivity and quality.
Both parties agreed that a strategic partnership focusing on technology transfer and innovation would not only benefit Bangladesh’s RMG industry but also strengthen trade relations between Bangladesh and China.
Visitors planning to attend ITMA ASIA + CITME 2024, Asia’s premier textile machinery exhibition, can register online by October 13 to secure early bird discounts of up to 40 per cent.
The event, scheduled from October 14-18 at Shanghai's National Exhibition and Convention Centre, China, will showcase cutting-edge technologies in the textile industry, reflecting rapid advancements in digitalization and sustainability.
Early bird rates are US$9 (¥60) for a five-day pass and US$5 (¥30) for a one-day pass, significantly cheaper than the onsite rates of ¥100 and ¥50, respectively.
The exhibition, co-owned by Cematex, CCPIT-Tex, CTMA, and CIEC, is set to be larger than previous editions, with about 1,700 leading manufacturers, including CHTC, Groz-Beckert, Karl Mayer, and Toyota, having already applied for space. These exhibitors will demonstrate advanced machinery across 18 product chapters, from spinning to garment making.
Ernesto Maurer, President of Cematex, emphasized the industry's rapid transformation driven by automation and sustainable practices. Gu Ping, President of the China Textile Machinery Association, highlighted the role of AI and internet technologies in evolving textile processes.
The previous 2022 edition spanned over 160,000 square meters, featuring more than 1,500 exhibitors from 23 countries and drawing 100,000 visitors globally.
In a decisive move towards sustainability, Active Apparel Group (AAG), a leading manufacturer of activewear and swimwear, has announced the implementation of an Environmental Management System (EMS) aimed at reducing its environmental impact globally. The EMS, developed following the ISO14001 Standard Framework, outlines specific targets and strategies to minimize carbon footprint across AAG's operations in China, Australia, and the USA.
A recent third-party audit of AAG's greenhouse gas emissions (GHGs) identified several focal points for reduction, including decreased energy use (Scope 1), minimized air freight, water conservation, efficient management of production waste, and increased utilization of sustainable materials. Daniel Hawker, CEO of AAG, emphasized the company's commitment to setting measurable goals in reducing their carbon footprint, acknowledging the significant emissions within the fashion industry's supply chain.
AAG's EMS is deeply integrated into its business operations, with clear ownership of targets and continuous education of its team members to ensure tangible results in reducing environmental impact. Quarterly progress reports are shared with stakeholders and reviewed by the Board of Directors, underlining AAG's transparency and accountability in its sustainability efforts.
This initiative forms part of AAG's broader Responsible Business Strategy, encompassing governance, social responsibility, and environmental impact. Alongside the EMS, AAG actively engages in various initiatives such as living wage audits, supply chain traceability projects, and waste management programs, reinforcing its commitment to driving sustainable practices throughout its operations.
In a bid to modernise and digitalise its operations, a prominent player in the textile industry, World Textile Sourcing (WTS) has partnered with World Fashion Exchange (WFX) to implement its fully cloud-based Apparel ERP software solutions across its global businesses. This strategic alliance aims to drive WTS into a new era of digital transformation, enhance efficiency, innovation, and visibility.
A leading provider of enterprise solutions tailored specifically for the fashion industry, WFX offers a comprehensive product suite that includes Apparel and Textile ERP, Fashion PLM, MES, and B2B Virtual Showroom. These can be implemented as standalone applications or integrated to form an end-to-end digital solution.
Headquartered in Peru with a showroom in New York, WTS has earned a reputation for delivering sustainable, high-quality fashion products to over 40 top brands in the United States. With a production capacity of up to 2 million garments per month, WTS is known for its agile supply chain, capable of turnaround times as fast as 30 days. The company offers both Free on Board (FOB) and Delivered Duty Paid (DDP) trade terms, with duty-free shipping available to the Americas, Europe, and most Asian countries. Their logistical capabilities are bolstered by TSA and CTPAT certified warehouses in South Florida.
From its collaboration with WFX, WTS expects to garner comprehensive coverage, custom adaptability, and WFX’s sectoral expertise. The WFX system aligns with the WTS’s unique business model and provides tailored solutions, ensuring it remains agile and responsive to market changes.
Moreover, WFX has extensive experience working with fashion businesses, including textile and garment manufacturers. The collaboration gives the company an opportunity to work with a partner that fully understands the demands of its business and industry. They have insights and solutions tailored to the company’s unique context, which assures its future scalability as a textile business.”
The partnership is expected to transform WTS's internal operations and customer service. Isla states, WFX enables the company to offer faster response times and more personalised solutions. Their advanced capabilities make it more scalable and competitive, ensuring it provides the best possible experience for its customers.
Looking ahead, WTS sees significant potential for growth and value creation through the partnership. WFX will help the company stay ahead of the curve, drive innovation, and set new standards for excellence within the industry, adds Isla.
Pakistan is witnessing a partial initiation of a new cotton ginning season, with one ginning unit becoming operational in both Sindh and Punjab. The state is likely to witness the commencing of more units in the coming days.
Partial cotton picking has started in some coastal areas of Sindh and southern Punjab, as per reports. There is a gradual increase in the arrival of raw cotton in the market, though the volume remains significantly lower compared to the same period last year. Currently, one ginning unit is operational in Hyderabad and another in Burewala, Punjab.
Cotton picking is gaining traction in lower Sindh, with rates ranging between Rs 9,500 and Rs 10,700 per 40 kg. However, high temperatures are hindering efforts to sow cotton, and textile mills have blocked payments worth billions of rupees, citing a financial crisis in the sector.
A recent meeting between the Pakistan Cotton Ginners Association (PCGA) and the All-Pakistan Textile Mills Association (APTMA) was limited to exchanging suggestions for improving the current situation. Abid Zaidi, a cotton expert, criticised the APTMA leadership for their lack of seriousness. He noted that ginners complained about textile mills importing cotton at higher prices while refusing to pay better rates for premium quality local lint. Zaidi also highlighted that up to 8 per cent of non-lint content in local cotton is accepted, a practice not seen in other countries, and urged textile mills to enhance the quality of lint.
The Karachi Cotton Association’s spot rate committee maintained the spot rate at Rs 19,700 per bale. Naseem Usman, Chairman, Karachi Cotton Brokers Forum, noted a rising trend in international cotton rates, with New York market futures trading at 80.52 cents per pound.
Ihsanul Haq, Chairman, Cotton Ginners Forum, states, adverse weather conditions have impacted cotton cultivation this season. Early sowing was disrupted by severe cold in February and March in coastal Sindh, while high temperatures are currently affecting crop growth in major cotton zones of Punjab and Sindh, including Rahim Yar Khan, Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Rajanpur, Multan, Sahiwal, Ghotki, Sukkur, Khairpur Mirs, and Nawabshah districts.
Haq also mentioned that the Punjab government recently announced plans to build a 1,000-acre garment city near Lahore, aimed at providing facilities for local and foreign investors to establish new textile mills. He suggested that instead of this initiative, the government should allocate funds to reactivate the 50 to 60 per cent of textile mills in the province that are currently inactive due to various reasons.
MarediModa, after four off-site editions, joins Cabana at Miami Swim Week (June 1-3, 2024), presenting a curated selection of top European fabric and accessory collections from Italy, Spain, and Germany for the S/S 2026 season. This "premium zone" highlights MarediModa's commitment to quality, creativity, innovation, and ethical production, solidifying its global influence in the swimwear industry.
Claudio Taiana, President of MarediModa, highlighted the importance of the event, stating that showcasing their collections in Florida during this key industry event underscores a specific lifestyle and approach. This exposure is crucial for reaching significant customers from the United States, Latin America, and Oceania.
Industry leaders are enthusiastic about the event. Alejandra Boggiano, CEO of Solkissed, expressed anticipation for the trends presented by MarediModa each year. Andrea Villegas, Owner of By AV Studio, emphasized the event as an excellent opportunity to select the best fabrics for the upcoming season and begin planning new collections.
Andy Nettle, Director of Development at Frankies Bikini, also expressed high expectations, noting that they are attending with the hope of finding unique and customizable Italian fabrics.
MarediModa at Cabana is set to be a highlight of Miami Swim Week, offering unparalleled access to premium European swimwear materials.
Ministry of Industry (Kemenperin) has expressed concerns regarding the influx of imported goods in the textile and textile product (TPT) industry in Indonesia. This influx follows the relaxation of prohibitions and restrictions (lartas) under Permendag Number 8 of 2024, which no longer enforces technical considerations (Pertek).
Players in the TPT industry also lament over the lack of lartas on imported goods similar to those they produce, says Adie Rochmanto Pandiangan, Director - Textile, Skin, and Footwear Industry.
Currently performing at an expansive level, the TPT industry in Indonesia is showing positive growth, notes Adie. Data from the Central Statistics Agency (BPS) indicates the textile and clothing industry sub-sector grew by 2.64 per cent Y-o-Y in Q1, FY24.
During the same period, demand for textile products from foreign importers rose by 7.34 per cent while the demand for finished clothes grew by 3.08 per cent Y-o-Y. The contribution of the TPT industry could, however be impacted by the elimination of Pertek, which would, in turn, directly impact the sector's sustainability.
Highlighting the concerns of the small and medium industry players, Nandi Herdiaman, Chairman, Bandung Connection Entrepreneurs Association (IPKB), says, the market might be soon flooded with imported products.
Echoeing these sentiments, Redma Gita Wirawatasta, General Chairperson of the Indonesian
Filament Yarn and Benang Producers Association (APSyFI), states, import control measures have become ineffective due to the relaxation of regulations. The association initially welcomed the Ministry of Trade's steps to control imports through Permendag Number 36 of 2023. Socialised since December 2023 and effective March 10, 2024, the regulation aimed to control imports. However, the containers continued to accumulate due to non-application of approval permits by rogue importers, he adds.
Approximately 26,000 containers are reported stuck. Around 85 per cent of these belong to traders while the remaining 15 per cent are intended for manufacturing. The absence of regulations controlling imports can affect the investment climate and development of the domestic textile industry, impacting employment levels, Wirawasta adds further.
Despite these challenges, however, the growth of the textile and clothing industry can be optimised by preventing the consumption of used clothing (thrifting) and improving market supervision in line with applicable regulations for imported goods, affirms the Ministry of Industry.
The global apparel industry witnessed a significant slowdown in March 2024, with both import and export figures dropping across major markets reveals Wazir Advisors May 2024 report, ‘Apparel trade scenario in key global markets and India’. This trend aligns with declining retailer inventory levels and weakening consumer confidence, reflecting a concerning picture for the near future.
Imports decline reflect waning demand
Import data for key markets like the US, EU, UK, and Japan paints a grim picture. The US, the world's largest apparel importer, saw a 6 per cent year-on-year (YoY) decline in imports to $5.9 billion in March 2024. Similarly, the EU, UK, and Japan experienced significant drops of 8 per cent, 22 per cent, and 26 per cent respectively, highlighting a global decrease in demand. The decline in apparel imports signifies a shrinking apparel market in major regions.
Import decline aligns with the retailer inventory data from Q4 2023. The data suggests a substantial decrease in inventory levels compared to the previous year, indicating that retailers are cautious about stocking up due to weakening demand.
Table: Decline in apparel imports in major markets March 2024
|
Market |
Value ($bn) |
YoY change (%) |
|
US |
5.9 |
-6 |
|
EU |
7.1 |
-8 |
|
UK |
1.4 |
-22 |
|
Japan |
1.7 |
-26 |
Consumer confidence, inventory levels reflect weak demand
The situation is further compounded by declining consumer confidence. In the US, consumer confidence reached a seven-quarter low of 97.0 in April 2024, signifying a hesitant consumer base less likely to splurge on apparel. This lack of confidence is likely to further dampen demand and hinder a swift recovery for the apparel industry. The report also reflects significant drop in retailer inventory compared to previous year. This indicates stores are selling through existing inventory and not placing large orders for new apparel. Weakening consumer confidence and declining inventory levels suggest a drop in demand for apparel.
Export woes for major suppliers
The export story is no brighter. Key supplier nations like China, Bangladesh, and India also experienced declines or stagnated growth in their apparel exports for April 2024. China, the world's leading apparel exporter, witnessed a 3 per cent YoY drop to $11.3 billion, while Bangladesh and India saw flat growth compared to April 2023. This suggests that the slowdown is impacting both ends of the global apparel supply chain, but supplier nations are still managing to export some apparel. In fact, the decline in apparel exports is slower than the decline in imports, indicating some continued demand for apparel globally.
Table: Declining exports from key suppliers
|
Market |
Value ($bn) |
YoY change (%) |
Change from March 2024 |
|
China |
11.3 |
-3 |
0 |
|
Bangladesh |
3.3 |
0 |
10 |
|
India |
1.2 |
0 |
-2 |
US apparel retail sales a puzzling trend
The report presents a puzzling trend in the US apparel retail sector. While US apparel store sales in April 2024 were estimated to be 3 per cent lower than April 2023, online clothing and accessory sales in Q1 2024 dropped by only 1 per cent compared to the same period in 2023. Interestingly, on a year-to-date (YTD) basis, US apparel store sales are still 3 per cent higher than in 2023, suggesting some underlying resilience. So while apparel imports, consumer confidence, and inventory levels all point to weak demand, US apparel store sales show an unexpected increase.
However, this resilience seems limited. April 2024's home furnishing store sales mirrored the broader trend, dropping 2 per cent YoY, with YTD sales a concerning 14 per cent lower than in 2023. This indicates discretionary spending may be shifting away from non-essential items like apparel and home furnishings.
The UK market also reflects a cautious consumer. April 2024 saw UK apparel store sales remain flat at £3.3 billion, indicating an 8 per cent YoY decline. However, a positive sign emerged in the form of a 7 per cent growth in online clothing sales for Q1 2024 compared to Q1 2023. UK apparel store sales are stagnant, while online sales are growing. This suggests that UK consumers may be shifting their shopping habits towards online channels.
The Wazir study reveals global apparel industry is experiencing a slowdown, with declining imports, exports, and retail sales in some regions. Weakening consumer confidence and decreasing inventory levels are contributing factors. However, the data also suggests some variation across regions and channels. US apparel store sales show an unexpected increase, while UK online sales are growing. Further investigation is needed to understand these inconsistencies and predict future trends in the apparel market.
A recent global survey by McKinsey & Company of apparel chief procurement officers (CPOs) highlights five key themes shaping the industry's approach to sourcing. The findings indicate a significant shift towards prioritizing efficiency, supply chain resilience, and sustainability, with a growing emphasis on collaboration with suppliers.
Key challenges
Demand volatility: Fluctuations in consumer demand and the bullwhip effect disrupt the supply chain, leading to shortages and overstocking.
Geopolitical tensions: Rising geopolitical instability is prompting brands to diversify their sourcing footprint to mitigate risk.
Sustainability regulations: Increasing regulations require brands to ensure ethical and environmentally friendly sourcing practices.
Competition: Fast-fashion giants like Shein are disrupting the market with rapid innovation and lower costs.
Five themes shaping apparel sourcing
Efficiency amidst volatility: Brands are prioritizing efficiency across the sourcing process to combat volatility and rising costs.
Rebalancing footprint: Brands are looking to diversify their sourcing bases to mitigate risk and improve speed and agility. Nearshoring is gaining traction, but challenges remain.
Strategic supplier relationships: Brands are forging deeper, long-term partnerships with suppliers to improve planning, resilience, and efficiency.
Sustainability: Sustainability is a growing priority, with brands working with suppliers to meet environmental and social responsibility goals. Data transparency is crucial for effective sustainability efforts.
Digitalization: Brands are embracing digital tools like 3D modelling and data analytics to improve decision-making, transparency, and efficiency.
To move ahead brands need to adopt certain strategies. To begin with they need to utilize data-driven strategies to establish sustainable sourcing goals that deliver economic value. Collaborate with suppliers for value-backed sourcing, material innovation, and cost optimization. Engage in transparent price discussions with suppliers using cost analysis tools. And build strong, mutually beneficial relationships with suppliers through value-sharing models and joint planning.
As the apparel industry transforms brands along with suppliers need to adopt new strategies, prioritize collaboration, and leverage digital solutions to build a more resilient and sustainable future.
