FW
Clothing manufacturers in Zimbabwe want the rebate for them to be extended by a year. They say if the government delays this extension, the textile industry will soon shut down. The clothing manufacturing sector presently operates at below 30 per cent capacity since the sector now only employs about 8,000 workers compared to more than 40,000 workers during its peak period. More than 200 clothing manufacturing companies have stopped operations.
Unscrupulous companies and individuals escape duty after they smuggle clothes into the country and label them as if they have been locally seamed. The country’s borders are very porous and aided by corrupt customs and immigration officials. Clothing manufacturers want the introduction of an import policy that would allow the sector to import textile materials duty free.
Zimbabwe’s textile and clothing sub-sectors consist of three components: production and ginning of cotton, transformation of lint into yarn and fabric, and the conversion of fabric and yarn into garments. Companies operating at up to 30 per cent capacity have severely been affected by the dollarisation and the influx of cheap products from abroad. They did not have the foreign currency to buy raw materials and pay wages and utilities from the start. There are some companies that are operating up to 60 per cent capacity and these are mostly those who have been into exports.
Garment makers in Bangladesh expect robust export growth this year due to continuity of political stability, a shift in work orders from China and economic recovery in major export destinations. They brim with confidence as exports grew significantly in the last three months compared to the same period a year ago. In December last year, apparel shipments rose 14.56 per cent year-on-year, in November 14.74 per cent and in October by 18.40 per cent.
Garment makers have a lot of work orders as buyers now prefer Bangladesh to China because of higher production cost and a shortage of skilled workers there. Political unrest in the first few months of 2015 took a toll on exports, as many international retailers could not visit Bangladesh and exporters had to delay or cancel shipments. But the situation is different now.
Brands are cautiously optimistic that the initiated upgrading of factory and workers safety will continue. As China’s manufacturing base is shrinking due to higher cost of production, garment orders are shifting to Bangladesh. So export target for the year are likely to be achieved.
Chinese manufacturing contracted for the 10th straight month in December as demand remained weak and factories trimmed staff and output. Another reason behind the rise in export orders is the improved economic situation in the US and the EU, two major export destinations for Bangladeshi apparel items.
"Bangladesh aims to invest $25 million in India to directly reach out to end consumers, which is expected to boost sales to $1 billion from the present $300 million over the next three years. There is a considerable demand for RMG products made in Bangladesh such as trousers, shirts, blouses, skirts, kidswear, cotton nightwear and jeans."
India and Bangladesh are competitors in apparel exports but at the same time trade is improving between these nations as rising number of Indian manufacturer-exporters are looking at setting up factories in Bangladesh. And Bangladesh on the other hand, Bangladesh is exploring the India as a potential growth market.
Trade improves but issues need resolution
Both countries are putting in efforts to improve ties. As Prime Minister Narendra Modi’s visited Bangladesh in June, he committed to look into the request for 50 acres of land either free of cost or at a nominal price in Gujarat to set up an apparel warehouse and Bangladeshi retail stores in the state. Bangladesh aims to invest $25 million in India to directly reach out to end consumers, which is expected to boost sales to $1 billion from the present $300 million over the next three years. There is a considerable demand for RMG products made in Bangladesh such as trousers, shirts, blouses, skirts, kidswear, cotton nightwear and jeans.
However, there are certain issues that the country is concerned about while doing business with Indian retailers. One is devaluation of the rupee against the dollar and second is non-payment of dues by the Indian retailers. For example, since 2011, a total of 22 small and medium exporters of Bangladesh supplied garment products worth $5 million to Lilliput India. However the company could not pay its dues. Another Indian retailer, Aldi too is yet to pay $1.2 million against export proceeds of the Bangladeshi exporters for the last couple of months.
According to the Export Promotion Bureau, Bangladesh, RMG export earnings from India in the first month of the FY 2015-16 decreased to $10.38 million from $14.28 million in the same month of the FY 2014-15 because of such concerns related to non-payment of dues.
Indian mills eye prospects in Bangladesh
Keeping the low labour costs and industry-friendly policies in Bangladesh in sight, Indian mills are planning to either establish their base in the country or provide better service to the growing garment manufacturing industry. Experts say the Bangladesh garment industry imports approximately 40 per cent of woven fabrics, which is expected to increase over the next five years. As of now, the largest portion of imported fabrics from India to Bangladesh is in denim fabric followed by shirting and suiting which includes non-denim bottom wear fabrics. Out of India’s 30 plus denim mills, the top 10 mills are exporting their denim fabric to Bangladesh.
However, there are problems like the trade policy between the two countries. While 48 types of textile products including finished garments from Bangladesh are being sold in India without any duty following the free-trade agreement signed between the two countries, yarn and fabrics exported from India attract duties in Bangladesh. This disparity will certainly affect the domestic garment producers/suppliers, as China too is using the trade route through Bangladesh to dump their products.
After China rolled back its cotton stockpiling policy it resulted in a decline of cotton imports. Indian cotton yarn exporters found Bangladesh as the next big market for exports. According to government estimates, lesser cotton imports by China may lead to as high as 41 per cent drop in shipments from India this year. India expects Bangladesh to increase cotton imports, which could beat the slump in Chinese imports. As of now, Bangladesh buys around 55-60 lakh bales from India.
A global business summit was held in West Bengal, January 8 and 9, 2016. Textiles and clothing were one of the focus industries at this summit. The Apparel and Export Promotion Council for the first time sent a delegation while national and state industry leaders were delegates and panelists. Leading retail chains like V Mart, Lifestyle participated in the deliberations. A roadmap was discussed for making Bengal a major hub for clothing and textiles in the coming five years and increasing its share of Indian textiles from five to 10 per cent. Around 13 textile parks were launched under Project Texpro Bengal. The project would provide industry land, infrastructure, single window clearance, environment compliant infrastructure, power apart from a host of subsides (capital, land, stamp duty, labor, power etc).
Among the associations which participated were the Apparel Export Promotion Council, Confederation of Indian Textile Industry, Federation of Hosiery Manufacturers’ Association of India, Cotton Textiles Export Promotion Council, Clothing Manufacturers’ Association of India, Bengal Hosiery Manufacturers Association, Chamber of Textile Trade and Industry, Eastern India Garment Manufacturers and Exporters Federation, West Bengal Hosiery Association, West Bengal Bleachers and Dyers Association and the Intimate Apparel Association of India.
According to exports figures released by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA),the country's apparel exports to some potential non-traditional markets declined considerably during the first half (H1) of the current fiscal year 2015-16, despite posting an 8.13 per cent growth to all the new markets during the corresponding period of last fiscal.
Exports to Brazil and Turkey dropped by 24.25 per cent and 6.47 per cent respectively. Shipments to China, Japan and Russia recorded a slow growth of 0.40 per cent, 3.99 per cent and 2.16 per cent respectively. However, the total export of ready-made garment (RMG) products to the new markets grew by 8.13 per cent with earnings worth $2.01 billion during the July-December period of the FY '16.
Bangladesh's exports to the new destinations witnessed more than 20 per cent growth from FY 2011-12 to FY 2013-14. The new emerging markets included Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey. Knit products export to Brazil, China, Russia and Turkey fell drastically by 36.79 per cent, 16.95 per cent, 8.21 per cent and 4.85 per cent respectively during the first half of the current fiscal compared to that of the corresponding period of last fiscal, data revealed.
Similarly, woven products export to Brazil also witnessed a 6.22 per cent decline, 0.18 per cent to India, 5.16 per cent to Japan and 7.10 per cent to Turkey during H1 of FY 16.
Industry experts are of the opinion that the sector’s dependency over cotton-based products and lack of effective efforts for product diversification and new market exploration as well as shortage of specialised skilled workforce, poor infrastructure and entrepreneurs' unwillingness to take risk are some of the factors responsible for the limited product exports.
www.bgmea.com.bd
El Nino could have a major impact on how much cotton world’s farmers produce in the coming year. The United States could see plantings increase from 8.6 million acres to a little over 9.1 million acres in 2016.
A mild El Nino would reduce world cotton area by 1.5 to 2.5 per cent in 2016. World production would rise 1.5 per cent and yields will rebound. World consumption would rise and world ending stocks would decline 7 to 8 per cent. World ending stocks would fall below 100 million bales to somewhere around 97 million bales. This would be the first time since 2012 that ending stocks would be below 100 million bales.
A very strong El Nino would bring world area down 1.5 to 2.5 per cent. World production could fall to 96 to 98 million bales as yields could be impacted. World consumption could be up a little bit, and if world consumption goes up and production goes down, world stocks could drop below 90 million bales.
The current El Nino pattern, which is the term used to describe a warming of the water in the Western Pacific, is the strongest in recorded history for the October, November and December periods. Its size is put at six million square miles.
Invista’s brand Cordura’s latest innovations include the Denim Alchemy collection, the Reinforcement series and the 4Ever Fleece. The Denim Alchemy collection offers outdoor enthusiasts with lightweight performance denims, offering high stretch, quick-dry and temperature regulation capabilities. The fabrics combine the legendary durability of Cordura fiber technology, softness of lyocell fiber as well as moisture management, thermal regulation, and innovative stretch functionality to help break through winter’s chill without sacrificing mobility and style. Denim Alchemy features high tenacity nylon combined with exotic blends of polypropylene, viscose, and elastomerics.
The Reinforcement series takes rugged adventure to new heights, offering enhanced wearer protection. Featuring flex, UV-fade resistance, moisture-wicking, non-slip and hi-viscose properties in its woven constructions, the Reinforcement Fabric collection offers a menu of abrasion resistant layers designed for today’s outdoor and urban adventurer alike.
Cordura’s 4Ever Fleece consists of durable soft comfort performance knits and fleeces. It includes hoodies and stylish jogging pants for both men and women. The collection caters to the athleisure trend and helps today’s consumer move from an office chair to a yoga mat or even a rock face. The collection is designed to provide added wearer comfort and help reduce the limitations encountered in active outdoor pursuits.
www.cordura.com/
Rick Helfenbein will be the president and CEO of the American Apparel & Footwear Association. Right now he is the chairman. He’s an experienced apparel and footwear executive. For the past 16 years, Helfenbein has directed the US operations of the Hong Kong-based apparel and footwear giant Luen Thai and was one of the key executives that helped grow the company into the largest publicly listed apparel, accessory, and footwear manufacturer on the Hong Kong exchange.
He has had extensive experience in US apparel manufacturing, textile mills and Central American sourcing. Helfenbein holds a degree in economics from Wharton. He lectures frequently on the subjects of supply chain and international trade at industry events, and prestigious business schools including Wharton, Harvard, Cornell, and Columbia.
During his time on the AAFA board, he helped secure several legislative victories including the passage of the Generalized System of Preference update legislation, the first significant change to the GSP program in 40 years. He has also been active in promoting AAFA’s global presence, appearing several times on national television with commentary about international trade and other industry related issues. As AAFA president and CEO he will continue the fight to expand and protect opportunities for all its member companies.
https://www.wewear.org/
After the success of its first Source India Programme held at Hotel Grand Hyatt, Mumbai in 2010, the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) has now decided to organise the second edition under the MAI scheme - an exclusive Buyer-Seller Meet in Surat inviting buyers from Asia, the Middle East and Gulf, Africa and South American countries. The event will be held on August 13 and 14, 2016 at Hotel Grand Bhagwati, Surat.
The objective of holding the Mega Export Promotion Programme in Surat is to showcase Surat as the leading centre of production of synthetic fabrics in India and to highlight the Council’s initiative of ‘Focus Surat’ to further develop this thriving textiles centre as a hub of production and exports of synthetic fabrics in India. The event is primarily aimed towards aggressive selling of Indian man-made fibre textiles to leading apparel and textiles buyers in Asia, the Middle East and Gulf countries as well as Africa and South America.
The Buyer-Seller Meet will be widely publicised by the Council to attract leading foreign buyers. The buyers will be identified and selected by the Council with expert help and active guidance of the respective Indian Missions in each country and with the assistance of the foreign textiles and clothing trade bodies and chambers.
Buyers from United Arab Emirates, Saudi Arabia, Bangladesh, Sri Lanka, Vietnam, Afghanistan, Poland, Australia, United Kingdom, United States, European Union, Cambodia, Iran, Indonesia, Malaysia, Myanmar, Thailand, Kazakhstan Egypt, Ethiopia, Sudan, Nigeria, Morocco, Turkey, Peru, Colombia, Brazil, Guatemala, among others are being invited to make this event a success. Representatives of the leading international apparel brands and their buying houses of international repute based in India and abroad, and others connected with the import of textiles including the leading apparel manufacturers in India will also be present at the Buyer-Seller Meet to discuss and firm up business deals. Fashion shows will also be held to showcase ability of Indian fabrics/made-ups for the fashion needs of Asia, Middle East & Gulf, Africa and South America.
The Council proposes to select more than 100 member-companies of different product groups including suiting, shirting, made-ups, home textiles, dress materials, saris, yarn and fibres on a first-come-first served basis for participation in the Buyer- Seller Meet.
www.srtepc.in
Birla Cellulose, which is currently spearheading a unique initiative called LIVA Accredited Partners Forum (LAPF) to scale up the textile value chain, will now kick off a joint marketing drive to increase reach of its partners at the international markets.
“We will help the LAPF partners to promote their products at the international level by enabling them to take part at different marketing fora, apart from helping them with design developments and technology,” said Manohar Samuel, President, Marketing and Business Development at Birla Cellulose. He was talking at the LAPF conclave organised as part of the ongoing efforts to help the partners reach out directly to the leading women’s wear exporters and international brands.
After launching the LAPF to aggregate the top talent in the fabric industry, Birla Cellulose has roped in leading players like Shreeji, Mafatlal, Mercury, Karuna Tex, Svarn Tex, MI Industries, VSM among its 250 plus partners. Apart from enabling the LAPF partners to join the international marketing fora, Birla Cellulose will provide them chance to promote their products through special drives like Market Week and Mill Week, to be held abroad.
The company recently gathered LAPF partners and international brands at Delhi NCR. The initiative was held in collaboration with the Society of Noida Apparel Export Cluster. Around 40 LAPF partners showcased their innovations in LIVA fabrics to 160 garment exporters, including international brands such as Marks & Spencer, Macys, and GAP, apart from Shahi Export, Orient Craft, Pearl Global and Richa &Co. Top buying house such as Triburg, Impulse, LI Fung, and Asmara, domestic brands like Biba and ITC were also present.
The conclave also saw the unveiling of LIVA Spring Summer 2017 Collection with innovations like modal knitted slubs, modal denim, lurex embellishments in LIVA blends and modal yoga wear. The LIVA SS’17 would be showcasing the collection under two unique themes called Tropical Trails and Leisure Luxe.
www.adityabirla.com
