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A conference on the clothing, textile, footwear and leather (CTFL) sectors is being held in South Africa on September 6 and 7, 2017. The point of discussion is the impact of downgrade of South Africa’s debt on its industry and the broader economy. The downgrades by various rating agencies during 2017 (and possible future downgrades) will raise the cost of borrowing for workers, businesses, government and consumers. This will have a negative impact on investments by businesses and on spending by consumers on products made in CTFL factories.
It is feared this could lead to increased factory closures and retrenchments in the CTFL sectors, placing an even greater strain on South Africa and its poor. The country already has high levels of unemployment.
The conference will consider the impact of the downgrades (including of possible future downgrades, especially of local currency debt) and measures to mitigate its impact, including a proper and credible turnaround plan to be formulated immediately and implemented expeditiously.
The event is being attended by 500 delegates, including CTFL factory workers, union officials, factory directors and managers, service providers, government officials, the retail sector, as well as delegates from associated sectors like cotton farming. The whole value chain will be represented.
Oklahoma is the fourth largest cotton producer in the US. A 17 per cent increase in cotton production has been forecasted due to more acreage being placed in cotton. A lot of people are moving to cotton now. As of August 1, Oklahoma had 4,50,000 acres in production, an increase of 55 per cent. Last year the state finished the season with 2,90,000 acres in cotton and was ranked sixth nationally in acres harvested.
In 2003, Oklahoma was ranked 13th nationally in cotton production. The state’s cotton production in the late 1990s and early 2000s hovered at 530 pounds an acre. However, advances in technology and methods of fighting the boll weevil have improved yields dramatically.
Texas leads the US with a forecast of 5.7 million acres, with Georgia second at 1.3 million acres. Mississippi third in forecast acreage. The prospect for cotton crop in the US has been lifted above 20 million bales, an 11-year high. This despite damage from Hurricane Harvey. The forecast for the crop in India, the world's top grower, has been raised to 6.46 million tons and that for production in China to 5.16 million tons.
Yarn and Fabric Show will be held in Sri Lanka from September 15 to 17, 2017. This will be held together with Home Textile Sri Lanka Expo and Sri Lanka International Air Freight, Shipping and Logistics Expo.
The three shows targeted at the entire business community will assemble technology, yarn and fabric manufacturers and the logistics sector under one roof and enable manufacturers of Sri Lanka to get to know of the latest developments and technology available so that they can compete in the world market.
More than 150 exhibitors from over five countries are participating in these expos. The textile and apparel industry of Sri Lanka has been seeing continual and steady growth in manufacturing and exports. With such consistent and enormous growth of its apparel sector, there is a definite need for Lankan textiles and apparel sector to witness latest technologies to upgrade itself.
The exhibitions are being organized by CEMS, a multinational which launched its operations in Sri Lanka in 2009. Based in the US, CEMS is celebrating 25 years in 2017 and has operations in eight countries including south and south-east Asia and South America.
CEMS organizes over 40 exhibitions a year on all important sectors of the trade and economy.
There have been promising developments in the Iranian clothing industry over the last two years. The quality of raw materials, textiles, to be specific, has improved over the years as designers have grown conscious about fashion trends. Iranian apparel producers today are able to produce and offer clothing for different tastes in various styles.
Currently Iranian apparel production meets less than 30 per cent of domestic demand but Iranian producers have the capacity to increase their share to 70 per cent. On an average, an Iranian buys two items of clothing a year.
The Iranian textile industry has the highest job creation potential after the oil industry. At least 7,50,000 people are directly involved in the apparel industry. However, the huge volume of foreign clothes smuggled into the country has had a detrimental effect on domestic producers. The abundance of foreign brands, which flaunt cheaper price tags, has eroded the competitiveness of domestic producers.
Garment manufacturing facilities in Iran are outdated due to the inability to import latest equipment because of different reasons, including lack of financial resources and years of international sanctions imposed on Iranian industries. Much of the equipment used in this industry is over 40 years old. Renovating the equipment used in the apparel industry and technology transfer are top priorities.
Over the past three years, lndia’s garment exports to the US have grown. In comparison, large garment exporting countries to the US, including China, Bangladesh and Vietnam have seen a decline in unit realisation. India, has not only maintained realisations but also expanded market share. The average realisation per square meter equivalent of apparels exported by India to the US has risen. The average for China has fallen 13 per cent whereas for Bangladesh it dropped by 11 per cent. Vietnam reported a drop of nine per cent in average realization. Due to rising labor costs in China, Chinese apparel manufacturers have been slashing prices to stay competitive in the global market.
Manmade garments such as winter wear and other specialised garments fetch higher value in the US than cotton-based garments. Compared to China, which lost market share by 380 basis points to 38.2 per cent between 2014 and 2017, India's share rose by 80 basis points to 4.5 per cent.
Indian apparel manufacturers are becoming compliant to US norms in terms of quality of products, labor conditions, and other legal aspects. While this has increased India’s cost of production, US buyers are willing to compensate for this by paying higher prices.
Bangladesh is digitally mapping its readymade garment sector. It marks a transformative industry shift towards greater transparency. Digital RMG Factory Mapping in Bangladesh (DRFM-B) will provide real time and credible factory data to stakeholders of the industry through an interactive online platform such as Google Maps. Through this initiative, a foreign buyer can access all types of information, such as the factory database, from any corner of the world. This will comprise names, locations, types of products, worker numbers, country exports, hospitals and trade union and fire services facilities.
DRFM-B will help enhance buyers’ confidence because real time information would easily be visible through this system and accountability framework of entrepreneurs would also be ensured. Through its mapping and relationship building, DRFM-B is expected to fuel advancements in Bangladesh’s garment industry, inspire shared responsibility, responsible sourcing and collective action, and build upon pre-existing improvement efforts through informed decision-making.
The interactive web-based map consisting of different types of information about factories would help establish transparency and awareness and ultimately lead to long-term sustainability and competitiveness of the country’s readymade garment sector. The final version of the map—showcasing all 20 Bangladeshi garment-producing districts—is expected to be completed by mid-2021.
US based Aurora Specialty is a leader in finishing, coating, and dyeing of a broad spectrum of textile substrates, both woven and nonwoven. It has new products engineered to meet the evolving needs of the pressure sensitive tape, medical tape, industrial belt, home furnishings, automobile, building construction and printable textiles industries.
Aurora currently has a significant market share in medical tape, athletic tape, and gaffer tape segments in North America and has begun moving into the athletic stretch tape category. With its new manufacturing capabilities, Aurora is poised to help companies enter that new and growing market.
Expressions is a line in printable textiles category. Treated with a new proprietary coating developed by Aurora, Expressions has been engineered to maximise print output and throughput with the newest digital printing equipment. The entire line is cross-compatible with the latest generation of latex, solvent/eco-solvent and UV printers without sacrificing quality or productivity.
In addition, Expressions has the industry’s leading print output with regard to outstanding color reproduction and broadest color gamut.
Aurora provides a wide variety of finishes like water repellency, antimicrobial and FR, to name a few, and is well-known for pressure sensitive tape fabrics, as well as industrial belting and printable textiles.
"Who knew the Trump government would change the fate of people who are wanting to set up base in Vietnam on the grounds of low labour cost and increasing sourcing activities. Steve DiBlasi, VP-global sourcing, Lanier Clothes shifted a fair amount of his company’s apparel production from China to Vietnam around six years back to take early mover advantage of benefits associated with TPP which the then Obama administration proposed. The free-trade agreement, which could have given duty-free access to apparel imported into the United States from Vietnam, became null and void post Trump Presidency."
Who knew the Trump government would change the fate of people who are wanting to set up base in Vietnam on the grounds of low labour cost and increasing sourcing activities. Steve DiBlasi, VP-global sourcing, Lanier Clothes shifted a fair amount of his company’s apparel production from China to Vietnam around six years back to take early mover advantage of benefits associated with TPP which the then Obama administration proposed. The free-trade agreement, which could have given duty-free access to apparel imported into the United States from Vietnam, became null and void post Trump Presidency. Vietnam is still the No. 2 exporter of apparel into the United States but for sourcing managers, it’s no longer an interesting proposition. DiBlasi pointed out this at a seminar ‘Vietnam Continues to Lure US Firms’ during the recent Sourcing at MAGIC show at Las Vegas Convention Center.
Facts reveal an interesting picture
The moderator of the seminar was Julie Hughes, President, US Fashion Industry Association, a Washington-DC, organization that works to break down barriers to importing apparel and textiles into the United States. The Association had commissioned a study on sourcing in Vietnam, conducted by Sheng Lu, Assistant Professor of fashion and apparel studies at the University of Delaware. The study, surveyed 34 executives of large fashion companies with more than 1,000 employees, and revealed this year only 36.7 per cent of executives expected to expand their sourcing in Vietnam compared to 65.4 per cent last year.
The study revealed next year, the minimum wage in Vietnam, which is still relatively low, is scheduled to increase 6.5 per cent. Currently the minimum wage ranges from $114 to $165 a month, depending on the region within the country. China’s minimum wage is around $350 to $400 a month. For these sourcing executives, China is still the No. 1 go-to place to make clothing. Lu remarked it is not about the price rather it is about capacity and it is about speed-to-market that is keeping China relevant to the fashion world. There is ease in doing business in China, and it is investing in technology. The executives who participated in the survey said 30 to 50 per cent of their sourcing is done in China while 11 to 30 per cent is done in Vietnam. Of the 106 categories of apparel products, China was the top supplier in 88 categories and Vietnam was No. 1 in five categories.
Vietnam’s growing sourcing strength
So why is Vietnam been increasingly becoming manufacturers’ paradise? DiBlasi says, it has been relatively easy to get goods in and out of the country through the various ports located in Hai Phong in the north, Saigon in the south and Da Nang in the central region. It is also easy to find factories through various agents that work in the country. Avedis Seferian, President and Chief Executive, WRAP (Worldwide Responsible Accredited Production), a nonprofit that inspects apparel factories around the world to certify they are treating their employees fairly, are socially responsible and have a safe working environment, noted Vietnam has been taking social compliance in their factories very seriously. They recognise that today’s market is far more transparent than before and you are far more at risk of bad news spreading, particularly with social media. DiBlasi pointed out, Vietnam has a pro-business culture, is good on compliance, is working to protect its environment and is moving apparel factories to rural areas to reduce costs.
Raw materials are still imported from China as there is a lack of mills and dyeing houses, and Vietnam’s minimum wage is rising every year over the next decade. In addition, there is no free-trade agreement with the US, but there is one between Vietnam and Europe, which goes into effect next year. This would typically mean more European apparel manufacturers, which pay more than US manufacturers, will be heading to Vietnam to make their clothes.
CENTRESTAGE, Asia’s premier fashion event, organised by the Hong Kong Trade Development Council (HKTDC), opened today and will continue till September 9 at the Hong Kong Convention and Exhibition Centre (HKCEC). The four-day show features more than 210 fashion brands from 22 countries and regions, along with nearly 40 fashion events, including the opening gala fashion show, CENTRESTAGE Elites, some 20 fashion shows, as well as designer sharing sessions, an industry forum, trend forecast seminars and networking activities.
Talking about the second edition Byron Lee, Senior Exhibitions Manager, HKTDC says, “CENTRESTAGE in its second edition seeks to consolidate position of Hong Kong as vanguard of fashion. It is shaping as a platform for providing business opportunities, going beyond fashion catwalks and exhibition, with many buyer forums and first edition of Fashion Summit (HK) 2017-Zero Impact, the Asia’s largest panel for discussing sustainability in the fashion industry, first of its kind in Asia for the next two days.”
CENTRESTAGE debuted last year as a new promotion and launch platform for international, especially Asian fashion brands and designs, reaffirming Hong Kong’s position as Asia’s fashion capital. Under the theme “Nouveau Playhouse,” this year’s CENTRESTAGE, which is one of the celebration activities of the 20th anniversary of the establishment of the HKSAR, features three thematic zones: GLAM, ALLURE and METRO. Exhibiting fashion brands include those from the Chinese mainland, Taiwan, Australia, France, India, Italy, Japan, Korea, Sweden, Thailand, the United Kingdom and the United States. Overseas brands include BARBARA DI DAVIDE - I CASHMERE, CHENG PAI CHENG, Edward Achour, GLAMOROUS, IVAN Pettersson, KEEPSAKE, LUNNAPADAR, N12H and Zero Design. Numerous local brands are also taking part in the show, including anagram, Angus Tsui, HARRISON WONG, izzue, Yi-ming and more.
The HKTDC has organised 34 buying missions to visit the show, bringing buyers from more than 1,000 companies from 25 countries and regions, including Galeries Lafayette from France, Andreas Murkudis from Germany, Shinsegae from Korea, Isetan from Japan, select shops DONGLIANG and AnyShopStyle from the Chinese mainland and Breeze Center from Taiwan, along with local retailers such as Lane Crawford, Harvey Nichols, D-mop, DFS, Club 21 and more.
CENTRESTAGE ELITES and other catwalk shows to preview upcoming style
Some 20 fashion shows have been organised during CENTRESTAGE, including FASHIONALLY Collection #10, presented by online fashion hub FASHIONALLY. The show spotlights 10 up-and-coming local fashion designers collaborating to showcase Hong Kong’s design prowess.
Tonight’s large-scale opening gala fashion show, CENTRESTAGE ELITES, will feature the 2018 spring/summer collections of Hong Kong fashion brand FFIXXED STUDIOS, founded by Kain Picken and Fiona Lau, and Korean design master Juun.J. The Korean brand’s first runway show in Hong Kong has been made possible with the collaboration of brand partner JOYCE and the HKTDC. JUUN.J’s 2017 fall/winter collection is also currently available at JOYCE.
The “FASHION HONG KONG” RUNWAY SHOW”, will follow CENTRESTAGE ELITES, showcasing the 2018 pre-spring and spring/summer collections of six local brands: HARRISON WONG (designer: Harrison Wong), KENAXLEUNG (designer: Kenax Leung), LOOM LOOP (designer: Polly Ho), DORISKATH (designer: Doris Kath Chan), Maison Vermillion (designer: Dora Chu), and HOUSE OF V (designer: Vickie Au).
Another show highlight is the finals of The Hong Kong Young Fashion Designers’ Contest 2017 (YDC), which will be held in the evening of 9 September. Over the years, the YDC has identified many outstanding designers for the local fashion industry and nurtured numerous Hong Kong designer brands. This year, 15 shortlisted young fashion designers will compete for the top three awards, the Best Footwear Design Award and the newly established New Talent Award. The VIP judge of the year is Mug, founder and designer of popular Japanese fashion brand G.V.G.V., who will come to CENTRESTAGE to share her insights and ideas with the finalists.
Tomorrow (September 7), fashion environmental NGO Redress, will stage the grand final show of The EcoChic Design Award 2017. The following day (September 8), the Knitwear Innovation and Design Society will organise the Knitwear Symphony 2017 and the seventh Hong Kong Young Knitwear Designers’ Contest. More local design talent will be uncovered on 9 September at The Hong Kong Footwear Design Competition, organised by the Federation of Hong Kong Footwear Ltd and co-organised by the HKTDC. In addition, numerous overseas brands, including Cindy Zhang (UK), DRESSEDUNDRESSED (Japan), MAXRIENY(Chinese mainland), POURQUOI (Macau), STYLE MEISEN (Japan), and local brands such as 112 mountainyam, Blind by JW, izzue, IKA BUTONI, YEUNG CHIN and WHOSTHAT are staging fashion shows during CENTRESTAGE to launch their latest collections.
Global industry experts to discuss market trends
The HKTDC has also invited experts from WGSN, Pantone and Fashion Snoops to forecast the coming year’s fashion and retail trends. Tomorrow’s (7 September) inaugural Fashion Summit (HK) 2017 is expected to be the first large-scale summit in Asia on fashion sustainability. The Summit is organised by the Clothing Industry Training Authority, Hong Kong Design Institute, Office of the Hon Felix CHUNG Kwok-pan, Member of the Legislative Council, Redress, Sustainable Fashion Business Consortium, The Hong Kong Research Institute of Textiles and Apparel and the World Wide Fund for Nature Hong Kong. Industry experts will gather at the two-day conference to discuss hot industry topics under the theme “Zero Impact.”
At various sharing sessions, CENTRESTAGE ELITES’ FFIXXED STUDIOS, YDC VIP judge Mug, and Korea’s Samsung C&T Corporation Fashion Division Vice President Jean Colin will offer insights into their creative journeys and markets.
Hong Kong in Fashion
The HKTDC had launched Hong Kong in Fashion citywide campaign to spread the fashion buzz to the wider community. Between August 15 and September 30, more than 90 fashionable activities are being staged around Hong Kong. The campaign is organised in collaboration with over 100 partners, including high-end hotels, shopping malls, fashion boutiques, restaurants and design institutes.
CENTRESTAGE will become “OPENSTAGE” on closing day (September 9) and welcome general public aged 12 and above free of charge. A series of events, including a fashion parade, lifestyle tips-sharing, make-up and nail-art demo, will be arranged. Members of the public will have the chance to experience this major international fashion event and check out the latest designs from leading brands.
The prospect for the cotton crop in the US has been lifted above 20 million bales, an 11-year high. This is despite damage from Hurricane Harvey. The upgrade was only 50,000 bales short of July estimates before Hurricane Harvey struck. This is the first major hurricane to make landfall in the US in 12 years.
There have been continued attempts by cotton investors to assess damage to the US crop from the storm, which affected Texas in particular, which is typically responsible for about half of the domestic output of the fiber. Some estimates for damage have exceeded 6,00,000 bales, including losses of so-called modules, the temporary storage piles of compressed crop at the edge of fields. However this would represent a relatively small part in production terms of the cotton harvest.
Hurricane Harvey and its aftermath represent a more concentrated version of the uncertain weather market that cotton has faced all summer. This uncertainty will continue now around the question of whether the 2017 crop can get enough heat units and clear weather to mature. The forecast for the crop in India, the world's top grower, has been raised to 6.46 million tons and that for production in China to 5.16 million tons.
