FW
"Heimtextil, after four successful trade fair days in Frankfurt am Main, dropped curtains in style. In spite of the snow, ice and storms, particularly on the first and last days of the trade fair, almost 70,000 trade visitors from across the world attended the leading trade fair for home and contract textiles and were won over by quality and variety of the exhibited products as well as the trends of the new season. Growth was driven primarily by Brazil, China, the UK, Italy, Japan, Russia, the US and UAE."
Heimtextil, after four successful trade fair days in Frankfurt am Main, dropped curtains in style. In spite of the snow, ice and storms, particularly on the first and last days of the trade fair, almost 70,000 trade visitors from across the world attended the leading trade fair for home and contract textiles and were won over by quality and variety of the exhibited products as well as the trends of the new season. Growth was driven primarily by Brazil, China, the UK, Italy, Japan, Russia, the US and UAE. A total of 2,963 exhibitors from 67 countries presented their new textile products and designs across 20 halls and were highly satisfied by the orders they received and business contacts they made.
Detlauf Braun, CEO, Messe Frankfurt, highlighted the positives following the end of the trade fair, “The figures speak for themselves. Heimtextil grew once again in 2017 in terms of its visitor and exhibitor numbers. But it’s no longer about quantity and hasn’t been for a long time. I am especially pleased about the high quality of the products exhibited as well as the intensity of discussions between purchasers and exhibitors. Frankfurt is the international meeting place and beating textile heart of the interiors industry.”
Andreas Klenk, CEO, Saum & Viebahn said he returned to Heimtextil at the right time: as successful positioning gave their new profile and product orientation. The feedback from visitors was positive and they were able to acquire both export and domestic contacts.
Textile Design: The eye feels too
It is not just the feel of a material that determines its appeal – something that was also obvious at Heimtextil with the great interest shown in textile design. The colourful fabrics and varied designs by well-known designers and young talent were popular and attracted a lot of attention: “For me as a designer, Heimtextil is extremely interesting, in particular because I can see myself designing bed linen, pillows and other home textiles in future in addition to wallpaper”, says star designer Michael Michalsky, who presented his new wallpaper collection at the trade fair. “At the world’s leading trade fair, competitors are present in great numbers. Here, I can experience marketing of products at close quarters and get direct feedback.” And it was not just designers that showed great interest in the globally unique design offer at Heimtextil. Exhibiting companies also used the creative hotspot to acquire new designs for their upcoming collections.
Trend towards more materiality
An end to bare walls and cold floors: home textiles celebrated their comeback in private homes. Curtains, carpets and decorative cushions are decorating people’s own four walls and lending them a personal note. “We can also confirm the trend towards more materiality. In addition to our new wallpaper products, we have seen an increased interest from visitors in our new fabric collections”, said Andreas Zimmermann, CEO, Zimmer + Rohde. This trend is boosting orders at Heimtextil, “The quality of visitors was very high. We met very high-quality, good international purchasers and excellent potential new customers. We are therefore very satisfied with our attendance at Heimtextil.”
Sleeping as a lifestyle
After nutrition and fitness, sleeping will be the next big lifestyle theme. This was proven by the numerous innovations seen in the bed segment. Mediflow from Hamburg, for example, presented an improved version of its water pillow capable of full adjustments for firmness and supportive effect. Robert Kocher, European CEO, Mediflow, said, “This year, we had lots of new customers at our stand who had heard about us and wanted to know more about our products or even ordered them directly. Visitors primarily came from the Middle East, China, the eastern European region and Scandinavia. We also enjoyed intense discussions with American and German customers. This is also the great strength of Heimtextil. It is not just about sales, but also communication and establishing relationships or simply getting direct feedback on our products”.
The next Heimtextil, international trade fair for home and contract textiles, will take place from January 9-12. 2018 in Frankfurt am Main.
"US President Trump’s ‘Make US great again’ has had significant impact on the average hourly wages of garment workers, with their wages getting a spiked 2.9 per cent from the same period last year. Owing to this, unemployment rate dropped to an 18-year low at about 4.1 per cent. Mark Zandi, Chief Economist, Moody’s Analytics, says the job market is very tight and getting tighter. Businesses are struggling to hire or hang onto people so they have no choice but to raise wages. These are people who are very skilled. It’s very difficult to hold onto those workers. The industry also has a high percentage of foreign born workers. "
US President Trump’s ‘Make US great again’ has had significant impact on the average hourly wages of garment workers, with their wages getting a spiked 2.9 per cent from the same period last year. Owing to this, unemployment rate dropped to an 18-year low at about 4.1 per cent. Mark Zandi, Chief Economist, Moody’s Analytics, says the job market is very tight and getting tighter. Businesses are struggling to hire or hang onto people so they have no choice but to raise wages. These are people who are very skilled. It’s very difficult to hold onto those workers. The industry also has a high percentage of foreign born workers. The biggest reason behind this is the immigration restriction imposed by the government, which is forcing manufacturers to pay their remaining workers even more. This is only the beginning. It’s going to get a lot worse.
Senator Tom Cotton, along with Senator David Perdue (R-GA), introduced a legislation in 2017 that would further raise Americans’ wages by reducing the current mass legal immigration levels, where more than one million mostly low-skilled legal immigrants enter the US every year, putting downward pressure on working and middle-class Americans’ wages and job opportunities. At the same time, the Act would shift the current legal immigration system from one that prioritises high-skilled, English-proficient immigrants over those with low-education rates and minor skills.
The scenario till now
According to the Bureau of Labor Statistics, over the past two decades, fashion manufacturing jobs in the US have declined by more than 80 per cent, dropping from about 900,000 jobs in 1990 to just 150,000 jobs in 2011. Just two years after the federal government enacted the North American Free Trade Agreement (NAFTA), companies laid off 706 American workers from fashion manufacturing jobs in the US, with 67,511 workers initially filing for unemployment. Between 1996 and 2011, companies laid off an average of 323 American workers every year in the fashion manufacturing industry. In that same period, American workers in textile mills suffered an average of 200 layoffs per year. In 1996, some 1,040 American workers in the clothing, textile, and leather manufacturing industry were fired from their jobs.
Every year the US admits more than 1.5 million foreign nationals, with the vast majority deriving from family-based chain migration, whereby newly naturalised citizens can bring an unlimited number of foreign relatives to the US. In 2016, the legal and illegal immigrant population reached a record high of 44 million. By 2023, the Center for Immigration Studies estimates that the legal and illegal immigrant population of the US will make up nearly 15 per cent of the entire US population.
Immigrants and low wages
For blue-collar American workers, mass immigration has not only kept wages down, but in many cases, decreased wages. Meanwhile, the US continues importing more foreign nationals against whom working-class Americans are forced to compete. In 2016, the US brought in about 1.8 million mostly low-skilled immigrants.
For white-collar American workers, mass immigration has become a tool for the big business lobby, cheap labour industry, and Silicon Valley elites to replace US citizens with cheaper foreign workers. For example, 71 per cent of tech workers in coveted high-paying, white-collar Silicon Valley jobs are foreign-born, while the tech industry in the San Francisco, Oakland, and Hayward area is made up of 50 per cent foreign-born tech workers. The growing foreign-born population dominating the workforce in Silicon Valley comes as nearly 500,000 Americans graduate in the STEM fields every year. Overall, four million young Americans enter the workforce every year, but their job opportunities are further reduced as there are roughly two new foreign workers for every four American workers who enter the workforce.
In 2015, the textile and textile products industry in Malaysia was the 10th largest export earner, contributing approximately 1.7 per cent to Malaysia’s total exports of manufactured goods. The textiles and textile products industry in Malaysia comprises four sub-sectors. These are primary textiles which cover activities such as polymerisation, spinning, weaving, knitting and wet processing; made-up garments; made-up textiles; and textile accessories.
Due to the intensified global competition, Malaysia’s textile manufacturers are moving up the value chain by diversifying into the production of higher value-added textiles, implementing automation and computerised manufacturing processes, seeking business collaboration with foreign companies to acquire new technologies and undertaking research and development activities to develop new processes, new applications and value-added products. The industry currently employs more than 68,000 workers.
The US, Japan, China, Singapore and Turkey are Malaysia’s top five export destinations. The US is the leading market for Malaysian textiles products taking 18.3 per cent of the industry’s total exports. Malaysia’s imports from Germany for the first 10 months of 2014 rose by 4.4 per cent while Malaysian exports to Germany during the same period went up by 3.9 per cent.
Malaysia is Asean’s number one exporter to Germany. The main exports include electronic and electrical products, electrical machines, printers, machinery parts and components, rubber products and optical lenses.
Honeys, the big Japanese clothing retailer that shifted production from China to Myanmar in 2012, is mulling with the idea of opening its third factory in Yangon, it is understood. The expansion of operations of Honeys in Myanmar is highlighted in a National Association of REALTORS (NAR) report on the bright outlook for the manufacturing sector as it benefits from an end to economic sanctions and low-cost labour.
Honeys, which in 2012 became the first Japanese garment manufacturer to begin production in Myanmar, makes about 18,000 pieces of clothing a day at its two Yangon factories, it was reported on January 14. It said that the factories account for about 20 percent to 30 percent of Honeys sales in Japan, one of the main destinations of garments made in Myanmar, along with South Korea and the European Union.
Since it began operating less than two years ago, the number of production lines at the second Honeys factory increased from five to 34 and its workforce from about 300 to 2,600, NAR reported. Honeys began outsourcing to China in the early 2000s but decided to shift part of its production to Myanmar because of cheaper labour. Labour costs were beginning to rise in Myanmar, which introduced a minimum daily wage in 2015, but at about K200, 000 a month were still lower than Bangladesh and Vietnam, Mr Takeshi Iguchi, Honeys head in Myanmar, informed the NAR. Cheap labour and the lifting of sanctions had contributed to rapid growth in the garment sector and the Myanmar Garment Manufacturers Association representing domestic and foreign companies, had quadrupled to about 400 members since 2015, NAR maintained.
"At oncoming February 2018 edition of CPM, 750 exhibitors, around 1,350 international brands from 27 countries will be presenting their new autumn/winter collections for 2018/19. In fact, for the 30th edition of CPM-Collection Premiere Moscow to be held from February 19 to 22 2018, the organisers OOO ‘Messe Düsseldorf Moscow’ and ‘Igedo Company’ from Düsseldorf have seen a significant increase in area of country pavilions."
At oncoming February 2018 edition of CPM, 750 exhibitors, around 1,350 international brands from 27 countries will be presenting their new autumn/winter collections for 2018/19. In fact, for the 30th edition of CPM-Collection Premiere Moscow to be held from February 19 to 22 2018, the organisers OOO ‘Messe Düsseldorf Moscow’ and ‘Igedo Company’ from Düsseldorf have seen a significant increase in area of country pavilions.
Christian Kasch, Project Manager International, CPM explains, “The upcoming CPM is also set for continued growth. After the difficult years of Russian market, which CPM successfully defied, this is very pleasing. Even long before the official registration deadline for international exhibitors, we were able to report a significant rise in the number of requests and number of exhibitors in the Germany and Turkey country pavilions. For the newly created ‘CPM Accessories & Shoes’ area in particular, demand was particularly high.”
CPM’s growth is also reflecting a positive development in Russian fashion market. A study by the Fashion Consulting Group reveals, more and more international brands from the mid-range and premium price segments are coming to Russia. In the first half of 2017, 28 international brands opened their first stores in Russia. Around half of them are from the fashion segment. Most brands are from Italy. Nikolay Yarzew, Russian Project Manager, CPM, is expecting record number of Russian exhibitors. He says, “Due to the extended exhibition space with new halls and themed areas, we are also expecting a further noticeable increase in the number of professional visitors.” Business development and expansion are once again buzzwords for Russia.
Thomas Stenzel, MD, OOO Messe Düsseldorf Moscow, states, “CPM is the number one tradeshow for the Russian market and is regarded as the ultimate order platform. We are committed to ensuring that a wide range of top-class brands and collections relevant to this market are not only present, but also have a noticeable growth in their presence. For Russia, CPM is an ideal platform for the fashion business in terms of communication, imports, exports and trends. And for anyone who does business in Russia’s fashion sector, CPM is a must. It plays a crucial role in the success of the Russian clothing market!”
Country pavilions
The pavilions, which are promoted by corresponding countries, show a representative selection of ladies’ and menswear collections from Germany, Italy, Spain, France, Turkey and Russia. The largest collective comes from Germany: ‘Made in Germany’ is the biggest country pavilion at CPM with an increasing growth rate. ‘Made in Italy’: Ente Moda Italia (EMI) will be presenting more than 140 collections at the next CPM.
With a creative booth, Turkey is flying the flag as a fashion country at CPM with resounding success: the Turkish space has been extended to 2,280 m2. Sabri Sami Yilmaz, Board Member of the Turkish ITKIB association, says, “The retail sector is developing rapidly in Russia. It is estimated that annual average growth rate is 10-15 per cent since 2000. As far as the developments in retailing are concerned, the trend is spreading towards big cities outside of Moscow. Turkish ready-to-wear exports to Russia are worth $500 million, while total textile exports are about one billion US dollars. This data shows that Turkey is Russia’s third biggest importer of ready-to-wear and the second biggest importer of textile products.”
New support programme
Small, aspiring fashion brands are shaping the development of Russian fashion market. But taking part in trade fairs poses a particular challenge for these young designers. To support newcomers at the start of their careers, the new StartUp Russia support programme will be launched at CPM. As a part of the Designerpool project, brands like Kogel (Asya Kogel and Nadya Orlova), Ija Yots, Masha Varlamova and Notmysize (Leon Kraifish) will be showcasing their collections at the upcoming CPM. Awarding the best creations by young designers, the finale of the annual PROfashion. Masters competition also traditionally takes place during CPM.
Bangladesh-based Denim Expert (DEL) would represent the country at the Munich Fabric Start 2017. DEL is a modern denim manufacturing unit run from the port city of Bangladesh, will present Spring/Summer '18 trends at the Munich Fabric Start to be held from January 31 to February 1. This would be the sixth year when DEL would participate in the show.
Mostafiz Uddin, the MD of DEL, said since its inception, DEL has always participated in the major apparel expos and denim shows held across the world. DEL will not only display latest collections and also showcase the position of Bangladesh in international denim scene.
Mostafiz, who is also the Founder and CEO of the Bangladesh Denim Expo, further averred that now Bangladesh has many trendsetting stories to tell the world. Like world's best LEED certified green denim manufacturing unit, as well as the best green denim textile unit and also the best green washing plant, all of these are situated in Bangladesh.
Denim Expert will introduce some new washes, keeping in fashion with the trends in this Munich Fabric Start. The new washes include spot repair and aged effects, artistic paint treatments, color blocked patch effects, pinto paint wash, moon bathed used, vintage fantasy, extreme vintage finishes, vintage dusty used, natural hand worn effects, shadow patch & repair, heavy re-worked patch and repair. Focusing more on women's jeans wear, the DEL will also introduce some exclusive wash effects like localized damage & rips, sun-bleached used, color blocked patch, cut & sewn contrast panel effects among others.
China’s exports aren't really growing despite the yuan’s massive six per cent depreciation against the dollar in 2016. One major economic engine, housing and investment, looks poised to slow this year. Mortgage lending slowed and credit growth as a whole have dropped to their lowest level in ten months. Slowing credit growth means weaker investment down the line.
China’s December exports are down six per cent from a year earlier. In contrast, Korea has shown a rise of six per cent and Taiwan a rise of 14 per cent. So China’s Asian rivals are posing stiff competition and doing far better. China’s November exports to the US and Europe were up seven per cent and six per cent but then these are also the places where trade tensions are likely to flare up in 2017.
With growth in Europe and the US looking up, and developing countries struggling, Chinese export growth is poised to become more dependent on trade relations with the West. China’s labor market is looking better, so consumers will likely step up somewhat, and the investment slowdown will likely be moderate—barring a major policy misstep. But trade is still important, particular with capital outflows showing no sign of abating.
Bangladesh’s garment exports to Germany will continue to grow in future due to the high quality of products and competitive prices, German traders feel. Germany is the second largest export destination for Bangladeshi apparel after the US. As a member of the EU, Germany will continue its duty privilege for Bangladesh, said Manfred Junkert, DGM of the Confederation of the German Textile and Fashion Industry at a press conference on the sidelines of Heimtextil fair in Frankfurt recently.
Garment exports from Bangladesh to Germany have been increasing over the years. The Asian country exported garments worth $4.65 billion to Germany in 2015-16, $4.33 billion in 2014-15 and $4.37 billion in 2013-14, according to Export Promotion Bureau (EPB).
Talking about Brexit, Junkert said it was a serious issue for them as the UK is a big trading partner of Germany. If the UK leaves us (EU), there is a possibility of serious consequences for Germany, Junkert observed. The UK is the third largest export destination for Bangladesh after the US and Germany, with Bangladesh shipping apparel worth more than $3 billion to the UK a year. As a trade bloc, the EU is the largest garment export destination for Bangladesh. It offers a zero-duty benefit since 1971 under its Everything but Arm scheme. Bangladesh exported garments worth $17.15 billion to the EU in fiscal 2015-16, $15.36 billion in 2014-15 and $14.75 billion in 2013-14, according to EPB.
On the Transatlantic Trade and Investment Partnership or TTIP, Junkert said negotiations have stalled now with the change in power in the US. Usually, signing a free trade agreement takes six to seven years. Germany will have to wait more than this time to sign the TTIP. It now depends on the US government, Junkert maintained.
Concerns over future fine wool supplies have pushed the Australian wool market to its highest level since 2011. There have been sharp rises over the three days as the market continued with the rally in December. Finer microns were reasonably steady but 30-microns and coarser fell as much as 30 cents. The finer microns enjoyed the most support and extended their premiums over the broader microns which had less extreme rises. Buyers scrambled for quantity for most of the week, pushing lower spec types along with the better types.
Merino skirtings followed fleece types higher with the superfine types most affected. In line with pre-Christmas trends, the crossbred market was again fairly lackluster compared to the merino catalogue. All buying segments were active, with indent, forward sellers, processors and even some speculators working hard to secure wool. Chinese, European and Indian interests were all active in the market.
Even though 51,300 bales were up for sale, this week’s offering included one of the smallest percentages of merino wool for the selling season and there is concern over the amount of finer wool coming onto the market in future. The good season experienced across Australia is becoming evident at sales, with higher vegetable matter content wool being offered.
More than 20 leading international apparel brands have written to Bangladeshi Prime Minister Sheikh Hasina to express concern about the recent labour unrest in Ashulia and particularly the detention of union leaders. Those among the signatories are H&M, C&A, Esprit, Gapm Next, VF Corp, Primark, Inditex and Li&Fung. The letter urges the Bangladeshi government to adopt a wage board for the garment sector and suggests that the local increased cost of living is contributing to unrest among garment workers.
The letter requests the government to take steps to ensure the protection of workers' rights and pays special attention to the representatives of the workers who were arrested. The letter makes clear that the brands do not support any illegal strikes or violent protests but recognise that the root cause of unrest must be addressed through social dialogue; improving the dialogue on the labour market.
In what could be deemed a thinly veiled threat, the letter goes on to suggest that unrest among garment workers could cause damage to the reputation of Bangladesh as a reliable sourcing market. Explaining why it signed the letter, H&M said in a note that it was deeply concerned by the recent unrest in the Bangladeshi textile industry. For H&M group it is important that its products are manufactured under good working conditions, in all production countries.
The factories have re-opened and production has resumed. Factory management, trade union representatives and trade association Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are now negotiating the terms for the terminated workers. H&M’s staff in Dhaka is monitoring the situation closely and are in close contact with the company’s suppliers, industry associations, trade unions and other buyers.
