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VF Corporation, the a global leader in branded lifestyle apparel, footwear and accessories has introduced the company’s ‘2021 Strategic Growth Plan’ and key initiatives designed to deliver superior returns to shareholders.
The Greensboro, NC-based company expects to deliver revenue growth at a five-year compounded annual growth rate (CAGR) of between 4 and 6 per cent led by its top three brands, its direct-to-consumer business, and international business. It projects earnings per share to grow at a five-year CAGR of between 10 and 12 per cent. The company also expects to generate over $9 billion of cash from operations between 2017 and 2021 and return $8 billion to shareholders through dividends and share repurchases.
President and CEO Steve Rendle says their 2021 strategic growth plan fuels aspiration to consistently grow by creating amazing products and brand experiences that transform and improve the lives of consumers worldwide. The company’s direct-to-consumer business increased substantially in Q4 led by Vans, North Face and Timberland, in the Americas, Europe and Asia, and the European business increased in sales for all three brands. VF’s Board of Directors authorized a change in VF’s fiscal year end from the Saturday closest to December 31 of each year to the Saturday closest to March 31 of each year. The changes will be effective for the fiscal year beginning on April 1, 2018.
Hungarian wool is exported across Europe, Japan, India, Turkey, Egypt, and the largest volume goes to China. One of the largest exporters of Hungarian wool is certain that Hungary is a good place to invest. Hungarowool was established in 1997 and János Vass, has been working in the local wool industry for over 30 years. He says‘ Hungary is ripe for such investment since it has the space, expertise, workforce and and wool!’ Wool processing is returning to Europe with costs rising in China making processing in Europe a more attractive cost effective option, particularly for companies in Europe. BREXIT and uncertainty created by Trump will further boost the industry with processing chains within Europe offering greater certainty and stability. Also, the Hungarian government’s support for the wool industry is strong. János Vass says that the characteristics of Hungarian merino wool can be verified by testing. ‘At Hungarowool WTAE testing certification’ He further added they can offer wools ranging from 23-24.5 micron. Although merino wool has a lower yield than other merino type wools, due to the farming circumstances the lanolin content is higher, as is its higher tensile strength which is an advantage during processing’, The company strongly believes in the Campaign for Wool. It is working to produce finer wool and better develop the Hungarian wool industrial development.’
In recent years, Vietnam’s garment and textile exports have registered an annual growth of 25-30 percent. Compared to world’s annual apparel consumption of about $350-400 billion, Vietnam’s share is still low but the prospects for the country’s garment and textile industry is good.
According to trade experts, free trade agreements (FTAs) between Vietnam , ASEAN and other countries, which are in force or under negotiations, are a useful tool to lift the industry’s turnover in the future. For example, the Vietnam-Japan Economic Partnership Agreement, which took effect in late 2009, opened major opportunities for the country’s growing industry as it regulates to cut all tariffs on apparel products to Japan to zero percent.
Vietnam shipped garment and textiles to Japan worth $882 million, a rise of 23.8 per cent compared to the same period last year for the first six months of this year, accounting for 13 per cent of the industry’s total export turnover.
Besides, the Trans-Pacific Partnership Agreement (TPP), which involves Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, is also giving high hopes for Vietnam’s apparel industry to access and expand export to TPP members, particularly the US – a market consuming one quarter of the global garment and textile products.
The US is Vietnam ’s top importer, importing $5.1 billion worth of good last year and $3.5 billion in this year’s January-June period. Le Quoc An, a senior advisor to the Vietnam Garment and Textile Association, predicts Vietnam’s exports to the US in the next five years will double, if the TPP is signed.
One of the world’s largest garments producers Bangladesh is second only to China and clothing accounts for around 83 per cent of its exports. This is why the country is one of the most market for Mayer & Cie’s the makers of circular knitting machine.
The company recently returned from DTG Dhaka exhibition with orders for 80 machines. The German circular knitting machine manufacturer is represented there every year by its local representative, Brady. Torsten Meile, Mayer & Cie.’s regional sales manager and another regular DTG visitor. They showcased the latest S4 3.2 II model, a 30 ins single jersey machine with gauge up to E24 and currently, the most popular Mayer model in Bangladesh.
Meile says, DTG, which is a purely domestic trade fair, recorded more visitors than in the past and exceeded their expectations in that respect. India is also among the top five important markets for Mayer & Cie’s with the company having 36 per cent share in the country's premium and midrange market. In 2016, the company booked orders from India well in excess of 200 circular knitting machines. Amongst those orders, the S4 3.2 II was in high demand, followed by the D4 2.2 II. The most popular electronic machine in 2016 was the OVJA 1.6 E, a jacquard machine for double jersey fabric.
Batliboi has looked after Mayer’s numerous Indian customers for many years and collaboration between the two companies continues to be close.
The 6th edition of Bangladesh Denim Expo on May 17 and 18, 2017 at the Convention City, Bashundhara, in Dhaka, Banglades already has over 10,000 preregistered visitors. The major theme, ‘Denim Networks’, underlines the growing importance of developing long-term relationships and a shared approach in the contemporary denim industry. Another novelty of this edition is the extended space dedicated to exhibitors, events and expanded Trend Zone. For the first time, the expo will take place in two different halls, with the fair doubling its space: the “Nabaratri Hall 4”, spread over 40,000 sq. ft. will host exhibition booths, special events; and special ‘Virtual Reality Booths’; the ‘Rajdarshan Hall 3’ covering 30,000 sq. ft. will host seminars and amazing ‘Denim Innovation Night’. One of the highlights is a seminar “From ideas to technologies: discovering a new age for garment finishing” by Alice Tonello, R&D Manager at Tonello Garment Finishing. Piero Turk, World Famous Denim Designer will look at new trends in finishing through cultural, economic, ecological and technical considerations. Additionally, this edition will feature several special event-displays that will capture the attention of all denim lovers. Amongst them are the “Tonello Denim Gallery”, “Sashiko Stitch”, the “Repair Display” along with special “Information Exchange” and absolute novelties of the “Virtual Reality Booths”, a fascinating virtual tour of a fabric mill, denim factory or laundry. Two-day expo will end with a marvelous “Denim Innovation Night”, a special event that will showcase latest trends in denim styling and finishing. Bangladesh Denim Expo exclusively featured in “See now, Buy now – Bangladesh 2017” The fact that the Expo has been able to develop connections between buyers and local companies is confirmed by its inclusion of its May 2017 edition as the only local event in Bangladesh in the calendar of “See now, Buy now - Bangladesh 2017”, a very important project that aims to connect international buyers with Bangladesh suppliers. The project is promoted by the CBI (Center for Promotion of Imports from Developing Countries), an agency of the Dutch Ministry of Foreign Affairs in collaboration with BGMEA, and will be taking place in May-June 2017. And as Md Mostafiz Uddin, Founder & CEO of Bangladesh Denim Expo says, “Network is a key concept of contemporary society, and the denim industry is the highest expression of this. To face the important challenges ahead for markets nowadays, we believe is absolutely necessary to create connections, share knowledge and ideas, building together.”
Exports of readymade garments from India grew 4.5 per cent in rupee terms and one per cent in dollar terms during April to January 2016-17 as compared to the same period of the previous financial year. A special package of reforms for the apparel sector was announced in June 2016 targeting employment generation and exports.
The special packages given to the sector are employee provident fund scheme reforms (12 per cent of the employer’s share of provident fund is paid by the government); introduction of fixed term employment; additional incentives under ATUFS; and enhanced duty drawback coverage through ROSL.
In addition to the special package for apparel, several other initiatives have been taken to boost exports. These are a three per cent interest equalization scheme for manufacturers or exporters of readymade garments; Integrated Skill Development Scheme; Amended Technology Upgradation Fund Scheme; two per cent MEIS scheme; and all India duty drawback.
During the April to January period in financial year 2016-17, exports worth Rs 91467.85 crores were made from India while for the same period in financial year 2015-16, exports stood at Rs 87560.23 crores. Exports contribute around four per cent to India's gross economic output. Although the country is hugely dependent on oil imports, exports of oil-based products have supported the economy to a large extent.
One of the most significant sources of China VSF industry, Cotton Linter Pulp or CLP used to play a critical role but it has been waning of late. At its peak, CLP capacity surpassed 2.15 million and more than 40 enterprises offering it but volumes have decreased in recent years, and made up only around 1.3 million tons/year till the end of 2016. CLP has been a major raw material for viscose fiber for years and it comprised 70 per cent of China's pulp supply before 2006. But its now struggling to survive. Besides further increase of imported Dissolving Wood Pulp (DWP) is affecting CLP made up less than 10 per cent of total pulp supply in China in 2016.
CLP is facing tough times primarily due to competition as its being replicated due to quality issues. CLP is made from cotton linter and cotton linter a byproduct of cotton whose production is correlated with cotton output. With declining cotton production in recent years, cotton linter supply too is tight. Then there are sustainability issues the scale of Chinese CLP companies is largely smaller compared to DWP enterprises, with annual capacity of no more than 100 kt and running intermittently. The black liquor made during production is a global issue. Only a handful of big companies barely meet the sustainability standards as they could ramp up their technology. Then there is the cost factor. CLP production cost has been increasing. In 2016, low-quality cotton linters for staple-grade CLP was more than 5,000yuan/mt up from 3,000yuan/mt. It is remarkable that waning CLP in the article mainly targets at viscose-grade CLP.
Soorty Denim, a well know integrated denim manufacturer from Pakistan, has been given the Hightex innovation award for its new Denim Active concept at the Keyhouse event, during Munich Fabric Start last month. The new concept dims the border between casual wear and sportswear, linking the two lifestyles.
“Denim Active” contains Coolmax eco-made® fiber which ensures moisture management and is made from 97 per cent recycled resources such as plastic bottles. While working out, body temperature increases, Coolmax helps to evaporate sweat, it keeps cool and dry. The 360 degree stretch in a light weight fabric allows one to make free body movements. Denim Active is soft and comfortable yet still maintains the actual denim look and feel in a specially engineered second skin silhouette.
The new Keyhouse is a revolution and proficiency centre for textiles, presenting future-oriented and business-related concepts in a concentrated manner. This collaborating trade fair format forms a backdrop for smart textiles, future fabrics and technologies, with a high degree of integration in textile products and high fashion. Pioneering showcases, sustainability and new technologies are put in the spotlight in this trade fair area in the context of cross-sector macro trends, rounded off by expert workshops and seminars on trends, technology, finishing and research.
Japanese casual clothing retailer Fast Retailing dismissed any chance of their company making products in the US in spite of President Donald Trump's repetitive calls for manufacturers to produce there. Tadashi Yanai, chairman and president Fast Retailing, made the remarks despite calls by US President Donald Trump for American and foreign companies operating in the United States to manufacture in the country. He also added the company's logistics system is a key issue for its US operations, adding Fast Retailing can open outlets at a pace of 20 to 30 a year.
Yanai says Trump administration's moves would not do US consumers any good, as local production for his firm is impossible at customer-friendly prices. He added, they will pull out of the United States if forced to engage in local production. Yanai further added even if Trump directly called on Yanai's company to build a plant in the US, as he did with Toyota Motors, Fast Retailing would not be able to manufacture at costs that enable attractive price points for customers in the US. He is confident about consumers coming to Uniqlo stores if they provide products that match their lifestyle.
Yanai said the company's strategy will include opening outlets in areas around Silicon Valley on the West Coast and large cities on the East Coast, including New York and Boston. While closing existing outlets in large shopping malls on city outskirts. Yanai also stated Fast Retailing has started studying the possibility of using aircrafts to move products in the US as well as building a new logistics center. He explained bringing US operation to profit may take time, citing rival H&M as an example. Even though swift growth of online retailers, including Amazon.com, has significantly muffled brick-and-mortar operators in the US.
The United Arab Emirates (UAE) has assured Bangladesh knitwear manufacturers of taking care of their demands along with an increase in export volume to the Gulf country. Saeed Bin Hajar Al Shehi, UAE Ambassador to Bangladesh gave the guarantee when a five-member team of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), led by its acting president A H Aslam Sunny, met him at his office.
Numerous subjects and questions regarding knitwear export to the UAE from Bangladesh were discussed at the meeting. Sunny informed the ambassador about latest developments in knitwear businesses between the two countries. UAE now imports knitwear worth $3.50 billion annually from various countries across the world.
Bangladeshi manufacturers may tap the huge opportunity in the UAE’s knitwear market as local manufacturers export goods worth $100 million only at present. Demand for diversified attires in the UAE will continue for a long time since 62 per cent of its population are young and middle-aged. Sunny pointed out that the BKMEA is looking to enlarge its market in the Middle Eastern countries. He urged Hajar to ease visa regime for readymade garment exporters.
