FW
"If researches are anywhere to go by, soon we are going to see wool knitwear and bedding that enhance sleep pattern and also aid in relieving chronic skin conditions. As wool can be recycled, research shows wool garments are worn for longer and retained longer than those made of other fibres. In order to sustain properties, wool growers work hard to care for their sheep and land on which they graze, and there is evidence of significant carbon sequestration in the trees and shrubs on sheep farms, which mitigates the effects of greenhouse gases."
If researches are anywhere to go by, soon we are going to see wool knitwear and bedding that enhance sleep pattern and also aid in relieving chronic skin conditions. As wool can be recycled, research shows wool garments are worn for longer and retained longer than those made of other fibres. In order to sustain properties, wool growers work hard to care for their sheep and land on which they graze, and there is evidence of significant carbon sequestration in the trees and shrubs on sheep farms, which mitigates the effects of greenhouse gases. Holistic land practitioners will also tell you how livestock like sheep promote biodiversity and prevent desertification.
But the recent Pulse Report offers a completely different picture. The report ‘scored’ the industry on its environmental and social performance. The overall score received by the industry was 32 out of 100. The report calls for a replacement of ‘conventional cotton’ with polyester. Other suggestions include persuading consumers that polyester is as appealing as cotton, it should develop more man-made fibres, and continue to enhance polyester.
IWTO viewpoint
According to PCI Fibres, anyone in the fibre business has to be aware that polyester producers are constantly looking at other fibres and their markets to determine if polyester can take further market share.
Owing to certain disputed conclusion, the report has been a matter of debate. Geoff Kingwill, Chair, Sustainable Practices Working Group of the International Wool Textile Organisation (IWTO), highlights the most serious problem with the Pulse Report is it presents a ranking of fibre types without required data and analysis. There are clear rules about how to make comparisons of fibre products, particularly to the public. This problem is compounded by failure to make clear that the data the ranking relies upon is based in part on preliminary data. In addition, the ranking is based on just one stage – the first of several stages – of the life cycle of the fibre.
The Sustainable Apparel Coalition (SAC), which supplied the data for the report, is aware that overall impact ratings cannot be inferred from this one portion of data. It is particularly erroneous because while recycled polyester is included in the data used, recycled wool has yet to be incorporated, Kingwill added.
Need additional data to back report
Kingwill points out, the report is based on SAC’s supplied data through Higg Index. But this index itself is a work in progress, which makes the authenticity of data under spotlight. If there is any other tool that can offer authentic data is IWTO, which collects data through research projects and can support development of the Footprint Tool for wool and across fibres. Having said that the data and methods are still under development.
There are stringent rules about comparing fibre types, which are governed by the ISO. The ISO standard – ISO 14040 to be exact – requires that public comparisons be based on a full life cycle assessment. Without including all impact categories, the picture created is incomplete. Such rankings have the potential to mislead consumers and risk a loss of faith in the industry and data provider. Dalena White, IWTO’s Secretary General, said that a loss of credibility like that would be a shame. SAC and its members have worked hard to develop an objective tool that can be used to make positive change. IWTO was not consulted for the Pulse Report, which is disappointing because wool is a meaningful part of the fashion apparel industry.
The president of the Tirupur Exporters' Association (TEA) Raja M Shanmugham has appealed to banks to pass on the rate cut benefits to exporters, who have been allegedly struggling and facing hiccups post GST. Exports' associations in the region have welcomed the monetary policy committee's move to bring down repo rate from 6.25 per cent to 6 per cent.
Shanmugham has said the association had made representations to all banks for enhancing the limit to ease the working capital blockage. The entire business community expected it, as inflation is coming down, said Sakthivel and urged the RBI governor to take necessary steps to see all banks cut lending rates immediately as there is scope for the banks to reduce interest rate further beyond RBI rate cut.
A reduction of 50 basis points in key lending rate has been announced this time, as inflation has come down to 1.54 per cent in June. Inflation in May 2017 was 2.18 per cent, in June 2016 it was 5.77 per cent, says Sakthivel.
Economic growth unexpectedly slowed to its lowest in more than two years. Manufacturing sector contracted in July following the GST. Exporters are facing serious working capital crunch and hence adequate availability of cheaper fund, especially for MSME sector, is the need of the hour to make products competitive in the international market, Sakthivel added.
A group of cotton ginners from Maharashtra will visit Singapore to explore possible deals for Indian cotton. They will visit a couple of the world’s largest agri-commodities companies based in Singapore. The aim is to attract large buyers to Indian cotton. Asian heads of these companies will be invited to India so that they can see the quality of Indian cotton for themselves.
Similar visits have been made to potential buyers in Bangladesh, Pakistan, Vietnam and China. A team visited Chinese buyers, traders, ginners and warehouses and provided samples of their cotton which was tested by Chinese experts. This was followed by a visit to the Jalgaon region by Chinese traders and ginners as well as their visits to Indian farms. China has been the biggest importer of cotton from India until now.
Contracts have been struck with buyers in China, Vietnam, Pakistan and Bangladesh. There has been an effort to improve the productivity of cotton. What began as an effort to mentor some 40 farmers in 10 talukas of Jalgaon district resulted in a 50 to 70 per cent improvement in productivity.
India’s cotton production in 2017-18 is likely to be 375 lakh bales, up 12 per cent from the current season. In the current year, cotton exports from the country are likely to touch 63 lakh bales, lower from 72 lakh bales in 2016-17.
GSP has not really helped Sri Lanka enhance its exports to the EU. Production and labor costs remain high compared to competitors’, and it is doubtful if the country can meet its goal of doubling exports by 2020.
Bangladesh, for instance, has moved ahead in textile and apparel production in the last few years. Bangladesh accounts for 6.4 per cent of global clothing exports compared with Sri Lanka's 1.2 per cent. The EU, which is Sri Lanka's biggest export destination, absorbing some 36 per cent of total shipments, reinstated the country into the GSP Plus program in mid-May, removing import tariffs on more than 6,000 products, including clothing.
Sri Lanka was dropped from GSP Plus in 2010 for human rights violations, but remained in the less-favorable GSP program, under which its exports were taxed at 9.6 per cent. Wages in Sri Lanka are typically higher than in Bangladesh and Vietnam, making the country better suited to producing high-end garments such as swimwear, trousers and underwear, including lingerie for top brands such as Victoria's Secret. Sri Lankan labor laws also limit factory workers to 57.5 hours per week, with fixed weekly holidays. This compares with Bangladesh's working limit of 60 hours and Vietnam's 64 hours.
Staubli machinery is known for exceptional reliability, unsurpassed production speeds, and very long service life. The Swiss company, founded in 1892, offers automatic drawing-in machines, the latest generation dobbies, electronic jacquard machines, carpet weaving systems, technical weaving systems, and knitting solutions.
Stäubli is valued by industrial customers worldwide for its high-quality products and cutting-edge technologies. It has become a leading supplier to the global weaving industry. This expansion strategy has been constantly augmented by intensive R&D activities, and the results can be seen in a comprehensive range of high-performance products integrating state-of-the-art technologies.
The group’s textile activities have grown in line with its corporate targets. In 1969, Stäubli acquired German company Trumpelt, which specialised in heavy dobbies. As a shedding solution specialist in frame weaving, the company then decided to expand its range to include jacquard weaving. This led to the acquisition of Verdol, mechanical jacquard machines maker. To expand its product range to cover the complete weaving process, Zellweger (weaving preparation solutions) and Schönherr (carpet weaving systems) were purchased in 1994 and 1998 respectively. Finally, Deimo was acquired, a long-time industry partner providing drive and control systems for a wide range of applications.
Gap has joined Canopy, which works to protect the world’s endangered and high carbon value forests, species and climate. Over 100 global brands and designers have pledged to end the use of ancient and endangered forests in their rayon and viscose supply chain under Canopy.
There has been a strong surge in US brands taking action to stop their rayon fabrics from contributing to deforestation or forest degradation. Global forests are the second largest storehouses of greenhouse gases and 25 per cent of the global population depends on forests for their survival and livelihood.
Among the brands that have joined Canopy are The North Face, Timberland and Vans. Canopy collaborates with more than 700 companies to develop innovative solutions, make their supply chains more sustainable and help protect the world’s remaining ancient and endangered forests. Canopy’s partners include H&M, Sprint, Penguin/Random House, Zara, TC Transcontinental, The Guardian and Scholastic.
Manmade cellulosic fibers are commonly referred to as either viscose, or as rayon, and encompass rayon, viscose, modal and other trademarked fabrics such as Tencel or Lyocell. Gap is aiming for a dramatic increase in sustainable fibers and textile innovation for its fashion brands including Gap, Banana Republic, Old Navy and Athleta. The company plans to source 100 per cent of its cotton from sustainable sources by 2021.
Exporters of garments and made-ups like bed sheets and towels will continue to get rebate on certain state levies for three more months like pre GST regime. Garment and made-ups exporters can claim Remission of State Levies (RoSL) at the rates prior to the introduction of GST till September 30. The scheme aims at making exports competitive in the international market as exporters of made-ups get incentives of 3.9 per cent of the value of exported goods.
The government in June had slashed rates under the RoSL scheme on export of garments and textile made-up articles to 0.39 per cent to be effective from July 1st causing a furor in the two sectors. However, this announcement will allow exporters the old incentive till September 30. The special scheme for remission of state levies for three years was part of the Rs 6 000 crores package that the government had approved in June last year for employment generation and promotion of exports in the textile and apparel sector.
While there would be input tax credits under GST, there are many costs that are being taken care of under the various duty drawback schemes. There are many hidden costs as well. Unless they are addressed under GST, India would lose out to neighboring countries, particularly while exporting to the European Union.
Intertextile Shanghai Home Textiles will be held from August 23 to 26, 2017. Exhibitors from Belgium, India, Morocco, Pakistan, Taiwan and Turkey will participate with products like sun protection, wall coverings, carpets and rugs, bedding and toweling on display.
The show also helps buyers access finest suppliers of upstream designs and printing techniques. More than 20 worldwide textile design studios will be located at Intertextile Design Boutique, while the latest digital printing technology will be presented at the Digital Printing Zone by top brands like Digitex.
The estimated 10 million couples getting married every year in China contribute to the strong demand for home textile products. The ascending living standards resulting from increased urbanization together with the flourishing hospitality industry are also driving forces for the market.
Apart from the domestic market, the Chinese home textile industry is also actively opening up new markets around the world, particularly in the Asean region where exports continue to increase.
The home textile industry in China is modernizing with innovations, abd technological and artistic elements. Revenue and exports are expected to grow at 5.5 and 3.2 per cent annually respectively, while automation will be further promoted to enhance productivity.
Bangladesh’s apparel exports has grown only 0.2 per cent in fiscal year 2017. Total exports between July 2016 and June 2017 were 5.85 per cent lower than the target. Garment exports, which comprise knitwear and woven items, earned 7.34 per cent below the target.
The knitwear sector posted a three per cent rise while earnings from woven garment exports dropped 2.35 per cent. Among other sectors, earnings from frozen shrimp exports dropped 0.56 per cent. Leather exports fell 16.3 per cent but leather goods registered a 19.63 per cent growth. Shoe exports also saw a 8.5 per cent rise. Export earnings rose for jute and jute products by 4.66 per cent and medicine by 8.6 per cent. But agricultural product earnings dropped 7.2 per cent.
Bangladesh’s overall exports have grown a meager 1.69 per cent this year upto June, with its slowest pace in 15 years. The apparel sector accounts for almost 80 per cent of the country’s exports. Bangladesh’s imports between July 2016 and May 2017 were 11 per cent higher than in the same period of fiscal 2015-16. On the other hand, exports rose 3.8 per cent year-on-year in the July-May period.
Meanwhile, foreign direct investment has increased in Bangladesh, particularly in energy, telecom and the stock market.
In the second quarter, Adidas’ currency neutral revenues were up 19 per cent. In euro terms, sales were up 20 per cent in the second quarter. All distribution channels recorded double digit growth during the quarter, with particularly strong support from ecommerce, where revenues grew 66 per cent.
On a currency-neutral basis, the combined sales of the adidas and Reebok brands grew at double-digit rates in all regions except Russia/CIS. Growth was especially strong in the company’s key regions, Greater China and North America as well as in Western Europe, where sales increased 19 per cent. Sales in Russia/CIS declined 11 per cent, reflecting the ongoing challenging consumer sentiment as well as additional store closures during the quarter.
The company’s gross margin increased 0.7 percentage points to 50.1 per cent. This development was mainly due to the positive effects from a better pricing, product and channel mix. While royalty and commission income declined two per cent, other operating income decreased significantly.
Operating profit increased 18 per cent during the second quarter, resulting in an operating margin decline of 0.2 percentage points to 10 per cent. Other operating expenses increased 13 per cent. As a percentage of sales, however, other operating expenses decreased 2.5 percentage points to 41.1 per cent.
