FW
"If stakeholders in Bangladesh’s RMG industry are looking to uphold rigorous growth in domestic and international arena, they must emphasise on upgrading the textile value chain and other industries to ensure more value addition. Focussing on establishing semi-heavy industries could be one way. Heavy industrialisation will make sure of building a sector which is more strong and sustainable. The country has set a target of exporting $ 50 billion of RMG by 2021. But to push this growth, Bangladesh industries need to carefully look at how it scores on sustainability spectrum."
If stakeholders in Bangladesh’s RMG industry are looking to uphold rigorous growth in domestic and international arena, they must emphasise on upgrading the textile value chain and other industries to ensure more value addition. Focussing on establishing semi-heavy industries could be one way. Heavy industrialisation will make sure of building a sector which is more strong and sustainable. The country has set a target of exporting $ 50 billion of RMG by 2021. But to push this growth, Bangladesh industries need to carefully look at how it scores on sustainability spectrum.
Value chain upgradation strategy
The central bank’s periodical analysis of RMG sector has shown local value retention of the industry was 73.12 per cent in fiscal year 2008-09, it is 82 per cent in FY16. President of FBCCI and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Shafiul Islam Mohiuddin, has urged the big RMG entrepreneurs to bring diversity and make high-end products to bring out more value addition. For that the country needs to focus on semi heavy industry like sewing machine industry, knitting machine, dyeing machine, needle industry, etc. If Bangladesh wants to attain its exports target of $50 billion and succeeded in vision 2041, the country must spend more on research and development.
Machinery import status
Bangladesh Textile Mills Association (BTMA) president Tapan Chowdhury says Bangladesh textile millers imported machinery worth TK 71.19 billion in the last fiscal year 2014-15, and 2013-14, it was TK 50.63 billion because many millers went for business expansion and development of productivity. As per the association, more than 1,300 spinning, weaving, dyeing, printing and finishing mills operate in the country and the sector’s contribution to GDP is 13 per cent. Bangladesh has a strong position in backward-linkage industry.
SEZs to offer a lease of life
The cost of doing business in Bangladesh is considered to be one of the lowest when compared to the other major country. A study by Japan External Trade Organization (JETRO) shows that the cost of doing business in Bangladesh is lowest among 28 south Asian countries. At Anwara in Chittagong, Bangladesh government is set to approve a project for building infrastructure for the proposed Chinese Economic and Industrial Zone (CEIZ). The CEIZ will be developed under the Chinese government soft loan of US $ 280.71 million. The Seventh Five Year Plan and achieving the Vision 2021 of the government of Bangladesh, The Bangladesh Export Zones Authority (BEZA) has set a target to build 100 economic zones under public-private arrangement by 2030. The SEZs will be developed on 75,000 acres of land that will create 10 million jobs for the people. The SEZs will have the capacity to produce products and services worth $ 40 billion, according to BEZA sources.
A holistic industrial development
Bangladesh imports spinning, knitting, weaving, dyeing and other machineries from Belgium, Brazil, China, Czech Republic, Hong Kong, Indonesia, Ireland, Italy, Japan etc. If Bangladesh can build its infrastructure of machinery and chemical industry, the country will be able to sell those not only to domestic textile and clothing units and other industries; they also will be able to export them to other countries. And this capacity will help to diversify its portfolio. This upgradation will not only make sure sustainable development of textile & clothing sector, it would also open opportunities for other allied industries.
India hopes to act as a reliable sourcing partner for Asean. There are huge opportunities for collaboration between India and Asean in capacity building, sharing of knowledge and technology, and mutual assistance in education, research and development.
As India is the largest producer of cotton and jute, and the second largest producer of man-made fiber, enhancing digital and infrastructure connectivity with Asean countries is a possibility for India.
Asean is India's fourth largest trading partner. In 2016 India's exports of textiles and apparels to Asean was 1203 million dollars. Exports of textiles and apparels to Asean comprise three per cent of India's total exports to the world.
Association of South East Asian Nations (ASEAN) comprises Indonesia, Singapore, Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar and Vietnam.
India and Asean observe 25 years of dialogue partnership, 15 years of summit level interaction and five years of strategic partnership in 2017. A consensus on finalising the proposed protocol of the India-Myanmar-Thailand Motor Vehicle Agreement has been reached. This agreement will have a critical role in realizing seamless movement of passenger, personal and cargo vehicles along roads linking India, Myanmar and Thailand.
Issues related to increasing maritime and air connectivity between Asean and India and transforming the corridors of connectivity into economic corridors are under discussion.
The cotton belt of Haryana has assumed significance this year as there has been a record sowing of cotton, on 6.3 lakh hectares, which is over a quarter more than the five lakh hectares in the corresponding period last year.
More and more farmers are going for cotton this year and it is estimated the total area of cultivation would come to 6.53 lakh hectares as against 5.7 lakh hectares in 2016-17.
Many farmers who grew pulses, such as pigeon pea, and green gram or oilseeds, such as groundnut, are going for cotton as the cash crop fetched a good price last year.
In 2016, Haryana’s cotton growers had a bountiful yield after white fly attacks for three years in a row led to dwindling of the yield. Farmers in the region were left with limited choice as many areas suffer from water scarcity and hence were not suitable for paddy.
The 403-kilometre-long carriageway, which cuts through four major districts of Haryana — namely, Rohtak, Hisar, Fatehabad and Sirsa — bifurcates the region broadly into two in terms of agricultural practices.While fields on one side of the NH-9 grow mainly paddy, those on the other are known more for growing cotton. Over the years, there have been some changes with increased water availability, but this has broadly been the trend.
Lululemon Athletica has acquired a stake in 7mesh.Lululemon, based in Canada, makes performance gear for sports like yoga and running. And 7mesh, also based in Canada, makes cycling apparel like jackets and shorts.
Lululemon is aiming to have an initial line of product from the collaboration with 7mesh in stores by the middle of 2018, aiming to take advantage of the key cycling season.
Lululemon wants to dispel the impression that it does only yoga gear and is a yoga-inspired apparel maker. In recent years, it has sought to sell more clothes meant for running, swimming, and even outer wear.
New ventures like 7mesh are part of Lululemon’s ten-year plan to generate 50 per cent of net new profitability from businesses and product categories where it doesn't currently compete.
Athletic apparel has become a very crowded market and sales and traffic trends have put pressure on yoga-inspired manufacturers like Lululemon. Because athletic apparel has become increasingly trendy, a number of non-traditional players—including H&M and Urban Outfitters—have jumped into the category and started competing with the legacy players.
While sales at Lululemon have remained sturdy, with revenue increasing by five per cent in the most recent quarter, competition within the industry has become intense
Drapers looks at the rise of feminist marketing as why fashion retailers are embracing empowering campaigns. What follows is one of the most recognizable marketing campaigns of recent years: a triumphant minute and a half of women running, boxing, dancing and sweating. Sport England’s “This Girl Can”, created to get more women exercising, soared to viral success when it first appeared on TV screens in January 2015. It turned away from stereotypically “perfect” images by showing women of all shapes and abilities, marking a sea change in the way brands talk to their female consumers. Campaign manager for This Girl Can, stresses that the advert became such a success because it was based on real insight from its target audience.
Fashion retailers have been quick to unveil their own campaigns focusing on female empowerment. Swedish giant H&M sought to “redefine femininity” with its autumn 17 campaign, showcasing a diverse group of women to an updated version of Tom Jones’ She’s a Lady.
Another successful example of a brand backing up an empowering campaign with social responsibility comes from Italian clothing brand Benetton, long famed for its advertising campaigns. It sought to challenge male attitudes towards women in India, its largest international market, with the “UnitedByHalf” campaign for March’s International Women’s Day. The brand also worked with partners in the region on projects to support female factory workers in India.
Benetton India managing director chief executive officer Sundeep Chugh explains that women in India receive less than half the years of education of men and have the half their share of gross national income. Even India’s metro has been wracked by issues of women’s safety and sexual assault. Unless the issue of women’s equality enters popular debate, the situation in India will remain far from ideal.
The creative director of Paris fashion house Dior gave a rare glimpse behind the scenes at its studios ahead of Haute Couture fashion week, as the brand celebrates its 70th anniversary. Maria Grazia Chiuri, the first woman to hold the position in the label's history, stated that she went around Dior's archive as founder Christian Dior "went around the world" to inspire her new collection.
Inside the studios, scores of seam stresses worked on elaborate chiffon and gold-painted dresses, creating the ensembles that were unveiled in a highly-anticipated Autumn/Winter 2017-18 Haute Couture collection.
The Italian's first Haute Couture collection was presented on a fern-lined outdoor catwalk near Paris' Hotel des Invalides, with celebrities, including singer Celine Dion and Spanish actress Rossy de Palma, in attendance.
Chiuri further says that she had been inspired by a map she found in the fashion house's archives, symbolizing Christian Dior's willingness to allow cultures from around the world to influence his work. Later on Monday, Paris's Decorative Arts Museum will hold a VIP opening for its latest exhibition, "Christian Dior: dream designer", bringing together the designs and cultural inspiration behind Dior's history.
With less than two months to go before the largest home textiles sourcing event in Asia – Intertextile Shanghai Home Textiles – a number of leading suppliers from around the world are gearing up to showcase their latest products. The four-day show, which will unfold from August 23-26, is one of the region’s most significant events that connects the entire home furnishings industry. This full spectrum of home textile products and accessories is provided by top manufacturers from Mainland China, as well as Asian and European countries.
Statistics indicate Indian textile exports to Latin America in the last fiscal were higher than India’s exports to a lot of other countries such as Canada, Russia and With increasingly high quality and competitive prices, Chinese home textile products are gaining in traction, while the government’s 13th Five-Year Plan encourages the industry to upgrade by incorporating more innovative ideas and advanced technology. What’s more, Chinese suppliers are no longer limited to resellers or agents of foreign brands but are capable of producing high-end products and developing their own brands. Huatex International for example is one of the exhibitors. With experience in jacquard for over 13 years, it established its own brand Texdream in 2015 to provide quality woven fabrics. Hangzhou Aico Home Textile is another well-known brand in China that will present high-end home textile products like curtains, bedding and other decorative fabrics at the August show.
A line up of new launches
Amongst the Chinese exhibitors, there is no lack of companies equipped with both sophisticated design and production ability. Yuanzhicheng Home Textile has been cooperating with a famous Italian design company, Arte Tessile, to get new product design ideas for hotel and residential usage. Meanwhile, advanced and professional jacquard design software is used to improve the product development process. They have also developed widespread sales network and worked closely with several international hotel brands including InterContinental, Starwood, Shangri-La, Hilton, Hyatt, Marriott, Accor and more.
Zhejiang Maya Fabrics focuses on designing fabrics for high-end interior design and home furnishing industries. Their products are supplied to over 200 fabrics distributors, furniture manufacturers, design firms and hotel groups in 25 countries. In addition, they have been partnering with Art Institute of China and various Italian designers to incorporate the latest technology and innovative elements into their designs to keep up with the changing trends.
Apart from regular exhibitors, some new companies will catch buyers’ attention this year. Being the sole Asian distributor of leading British bedding brands such as Common Living, Harlequin, Morris, Sanderson and Scion, Qingdao Mirtos Textiles will also participate for the first time. Equipped with own design studio, they will be showcasing mid-range to high-end bedding products and accessories with stylish design and competitive price.
Global presence
To satisfy buyers with various sourcing needs, the show will also feature universal big names from different sectors. German brand JAB Anstoetz will be providing a series of delicate appliques to household textile decoration products, while UK’s Prestigious will offer a diverse range of fabrics for drapes and upholstery, wall coverings and home décor accessories. Some other leading suppliers also include DDécor, and Advansa Marketing, the leading German supplier of polyester fibres. Apart from fabrics and finished product suppliers, non-textiles suppliers like Somfy are also not to be missed. The Somfy Group from France excels at designing and producing automated controls for doors, windows and other building openings. Its Chinese subsidiary will make its debut in the show, presenting their world-class sun protection systems.
Andrew Martin International Interior Design Award
In addition to a sourcing platform, Intertextile Shanghai Home Textiles aims to bring more inspiration to the industry. This year, the show will feature the Andrew Martin International Interior Design Award, for the first time, which includes a forum where leading players from the interior design, architectural design, apparel design and art sectors will share their insights on the transformation of design in the new information era. This widely recognised annual award is organised by the well-known interior design house, Andrew Martin International since it was introduced to China in 2006. There will also be a Transborder Home Art exhibition, which enables new home living styles to be illustrated in the form of furniture and installation art.
In 2016, Asia Pacific’s top 500 retailers recorded total sales of 940 billion dollars, an increase of five per cent on the previous year.
Despite slowing growth in China and Japan, south-east Asian economies performed well in 2016 with many retailers in India, Indonesia, Philippines and Vietnam experienced double-digit sales growth.
Asia Pacific also continues to lead the digital commerce market. In 2016, mobile retailing sales totaled 328 billion dollars, an increase of 64 per cent and in China, Indonesia and South Korea, mobile commerce accounted for over 50 per cent of total digital commerce.
The Asia Pacific region contains more than half of the world’s population and is a major contributor to the global economy with extensive trading and collaboration with the rest of the world. In recent years, a significant share of global economic output and growth has concentrated in large cities in the Asia Pacific region. The region is highly dynamic, with rapid growth and urbanisation.
Asia Pacific includes parts of north Asia, south Asia, east Asia, west Asia, central Asia, south east Asia, Oceania and the Americas.
Retail sales growth for the period 2010-2016 outstripped every other region, turning in a compound annual growth rate of 13.6 per cent.
Tamil Nadu’s textile cluster is upset over the GST rates imposed on textile manufacturers, including job workers, who were so far exempt from any form of tax. While the principal manufacturers are to pay GST at 18 per cent, job workers will have to pay five per cent.
Tirupur, a knitwear and hosiery hub that earned Rs 25,000 crores through exports and posted a domestic revenue of Rs 12,000 crores in 2016–17, is dependent on job work at various levels of garment manufacturing for more than 80 per cent of its production. The textile cluster includes Coimbatore, Erode, Tirupur, Salem, Namakkal and Karur.
Owners of textile units say the power loom sector will be badly hit by GST. They say that for something that remains as an unorganized sector, the GST taxation procedure is too complicated. Chennimalai, in Erode district, is a handloom and power loom hub, employing over 15,000 people. Erode district has more than 3,00,000 people directly or indirectly engaged in the sector.
The power loom sector in Tamil Nadu provides employment to around 9,14,000 workers, and there are over 1,800 textile and spinning mills located in the state. The sector at Chennimalai is more of a cottage industry and more than 80 per cent of the products are sold in weekly shandies.
There is apprehension in Ludhiana that with GST imported garments will get cheaper.
The special additional duty stood as a protection for domestic apparel players. With GST, this duty protection will be removed and imported garments will be five to six per cent cheaper.
The textile industry fears that there will be an increase in imports from countries such as Bangladesh and China, where the cost of manufacturing is lower due to the availability of cheaper labor.
GST will render imported polyester fabric cheaper than made-in-India polyester fabric. The industry wants the GST on polyester yarn to be brought down from 18 per cent to 12 per cent.
Prior to GST, the industry had duty protection of 5.5 per cent from cheap imports. After the GST, all duties have been subsumed in five per cent of GST for both domestic manufacturers and importers. This, in effect, means no protection, as both domestic manufacturers and importers will be required to pay the same duty.
Prior to GST, the countervailing duty included six per cent excise duty on cotton and 12.5 per cent with Cenvat credit on polyester. Ludhiana is a leading producer of woolen and acrylic knitwear although it also uses extensively cotton and other blended fibers to produce a wide range of fabrics, hosiery, knitwear and readymade garments.
