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Levi Strauss & Co. has reported stronger sales, which only goes to show that denim is on a comeback trail. This is largely due to increased ad spending and high demand. Sales for the second quarter spiked 6 per cent to touch $1.07 billion, as against $1.01 billion in the same period last year, with direct-to-consumer revenues jumping 13 per cent. Net income fell 43 per cent to $18 million, as against $31 million in the same period of the prior year, primarily due to a loss related to debt refinancing.
The San Francisco-based company said increased advertising spending in the quarter, particularly in the Americas, and credits sales gains to its diversification efforts and product innovation such as its dance-stretchy jeans. The strong year-to-date revenue growth reinforces the benefits of a more balanced portfolio as women’s tops, direct-to-consumer and international businesses delivered solid results disclosed their CEO in an announcement.
Innovation—some new stylish or functional twist to trusty denims—seems to be the key to appealing to customers these days, according to latest analysis from the NPD Group. NPD reports that newer styles of women’s jeans—those introduced in the last two years—account for about 70 per cent of all the pants sold in 2016. For men, the majority of jeans were older styles introduced in 2013, or earlier.
Earlier this week True Religion Apparel known for its high-end denim range filed for bankruptcy protection largely due to the growing trend toward e-commerce and fashionistas’ desire for affordable denim from chains like H&M and Zara.
Cotton exports from the United States in the 11 months of 2016-17 marketing year, are running over 70 per cent ahead of the same period last year and is on track to reach 14.5 million bales, the second highest level on record. The United States Department of Agriculture (USDA) cotton reports notes that the increase in exports is widely distributed across markets, with exports up in 20 of the 25 largest US markets.
Among the top 10 markets, only Mexico and Turkey have not exhibited robust growth. Mexico’s mill use has been declining and the US has a pre-existing near-100 per cent share of the import market, therefore export growth to Mexico is limited. Export growth in Turkey has been constrained by a much larger domestic crop which has reduced overall import demand by over 25 per cent.The increase in US exports represents a large increase in the US market share of Turkey’s imports.
Globally, strong US exports reflect improved market share in many markets, as the global consumption recovery has only modestly raised world import demand. Vietnam is likely to remain the largest market for US cotton with shipments up 70 per cent as import demand continues to expand and the already strong US market share grows, perhaps reaching 60 per cent this season. Continuing expansion of Vietnam’s mill use has supported extremely robust sales this year.
Shipments have nearly tripled to China, India, Indonesia and Pakistan as US cotton has captured a greater market share alongside substantial expansion of total imports in these countries. With exports to China up by nearly 200 per cent, it is now set to be the second largest US market, after having fallen to fifth place in 2015/16, its lowest ranking in 15 years. Globally, the USDA’s forecast for 2017/18 shows higher cotton production, primarily in India.
Robbie and Ayda Williams launched the Marc O'Polo special 50th Anniversary Sweatshirt Edition. True to the brand's birthday motto let’s celebrate 50 years of O', this special collaboration was timed to coincide with the 50th anniversary of the fashion label Marc O'Polo, founded in 1967.
The launch took place in Marc O'Polo’s flagship store on Theatinerstrae, Munich, among select audience Marc O'Polo had a surprise in store in the form of an eclectic panel discussion featuring Robbie, Ayda, Mads Mikkelsen and German MTV legend Marcus Kavka.
A confident man wears pink, says Robbie, and he and his family had very clear ideas about precisely which shade of the colour should be used for sweaters. And precisely this shade is the stand-out colour of the capsule collection. The pieces also carry Robbie's signature embroidered on the sleeve, and Ayda was even able to convince her husband to feature the song titles Love my life and Come undone on the women's sweatshirts. The accompanying campaign was shot by star photographer Peter Lindbergh.
The US seems to see huge potential in Africa to keep investing in the sector there and more specifically in Kenya. Last week, USAID and the East Africa Trade and Investment Hub (the Hub) signed a grant with Kenya that will create 2,000 full-time jobs and provide 1,00,000+ hours in skills development for young workers in the apparel industry.
While Africa looks as a strong region for robust apparel sourcing, the biggest drawback has been a lack of sophisticated logistics/skills in the apparel segment. Post this new program, however, young workers — who are expected to drive the sector forward — will gain skills. USAID; Kenya’s Ministry of Industry, Trade and Cooperatives; the Kenya Association of Manufacturers; and apparel companies will set up seven training centers throughout Kenya. Four thousand young people will participate in the program which encompasses recruitment, training and job placement in the apparel industry.
The signing of the grant also marks the official kick-off of the East Africa Cotton, Textile and Apparel Workforce Development Initiative, a partnership between the Hub and the American Apparel and Footwear Association (AAFA) to ensure US brands and retailers goods are manufactured as per best business practices and operations, according to USAID.
Last year the US imported $340.7 million worth of textiles and apparel from Kenya, which was a 7.56 per cent decrease as against the previous year. As of May, imports from Kenya were down 7.31 percent to $133.7 million. As other trade programs or trade relations become pressured, if AGOA stays intact, imports are expected to increase.
As per Vinatex’s (Vietnam Textile & Garment Group) current production capacity of the textile and garment industry has exceeded $35 billion per annum. Vinatex noted that 2016 was tough for the industry as demand from the largest export markets fell — exports to the US decreased 3.4 per cent, Japan 2.6 per cent and to South Korea by 2.1 per cent. Market analysis firm VIRAC notes the domestic garment market has small scale — when compared to other markets — because of low spending per capita in Vietnam.
Vietnamese garment companies will have to face two big problem: presence of counterfeit goods; and products imported across the border and low capability of enterprises in distribution, design and branding. A Vinatex report shows in rural areas, Vietnam’s textile and garment products have to compete with imported products with no clear origin, while in urban areas they have to compete with imports from the US, the UK and ASEAN.
While Vietnamese enterprises are reluctant to develop the domestic market, foreign retailers and fashion brands are having a field day. Maison, for example, has been bringing mid- and high-end fashion brands to Vietnam and distributing products of 21 brands, including Christian Louboutin, Karen Millen, Coast, Max&Co, Max Mara, Oasis, Charles & Keith and NYS and owns 44 shops in Vietnam.
Son Kim Fashion, following success with brands such as Jockey, Vera, Wow and J. Bus, has partnered with two Japanese investors Williamson-Dickie and Sumitex International to bring the US Dickies brand to Vietnam. Japanese Uniqlo with 2,000 shops worldwide is preparing to open two shops in Vietnam this year. Meanwhile, Forever 21 would come to Vietnam next year. While Vietnamese garment companies think the domestic market is too small, foreign investors consider Vietnam the new land to exploit with the garment market valued at $4.5 billion.
The Micro, Small and Medium Enterprises (MSME) minister, Kalraj Mishra is hopeful that khadi products would be exempted from GST which came into effect from July 1. Various khadi and village industries products attract different rates of GST ranging from 5 to 12 per cent. Addressing a meeting of khadi institutions, Mishra said for the larger interest of weavers and spinners associated with the khadi industry, the GST panel had started analysing the pros and cons of the new tax on various products. He disclosed that the finance minister had promised he would give GST exemption to ensure financial development of the economically backward lot of weavers and spinners.
Expressing concern over decreasing number of artisans in the khadi sector, the Singh said all round development of the sector would remain a mirage if there was no provision for sustainable economic growth of artisans; and added that no one knows the reason that how the number of artisans fell from 11 lakh in 1950 to nearly 2 lakh at present.
MARC O'POLOs Special 50th Anniversary Sweatshirt Edition was launched by Robbie & Ayda Williams in person. This special collaboration was timed to coincide with the 50th anniversary of the fashion label which was founded in 1967.
The brand had a surprise in store in the form of an eclectic panel discussion featuring Robbie, Ayda, Mads Mikkelsen and German MTV legend Marcus Kavka. A Facebook livestream broadcasted all the action inside before the event that culminated with Robbie and Ayda - appearing in front of their fans who had gathered in front of the store - unveiling shop windows specially decorated using design elements from their capsule collection.
This collection, designed in cooperation with Robbie & Ayda Williams, is now available exclusively in MARC O'POLOs stores and on http://www.marc-o-polo.com. Robbie’s is of the view that a confident man wears was pink«, and this was the stand-out colour shade from the colour palette that was used for the sweaters in their capsule collection. The pieces also carry Robbie's signature embroidered on the sleeve, and Ayda was even able to convince her husband to feature the song titles Love My Life and Come Undone on the women's sweatshirts. The accompanying campaign was shot by ace photographer Peter Lindbergh.
"Oman is gearing up to give a strong boost to its textile industry with a slew of projects. One such project is a greenfield textile industry at Sohar Freezone in the Sultanate replicating the success formula of India, Germany, China and Italy. The foundation was laid by India’s ShriVallabh Pittie Group (SVP), a global leader in the manufacturer of cotton yarn — the raw material for textiles. The Group’s Oman subsidiary, SV Pittie Sohar Textiles FZC LLC, is preparing to launch work on its $300 million cotton yarn project on a 27-hectare site at the free zone adjoining the Port of Sohar. "
Oman is gearing up to give a strong boost to its textile industry with a slew of projects. One such project is a greenfield textile industry at Sohar Freezone in the Sultanate replicating the success formula of India, Germany, China and Italy. The foundation was laid by India’s ShriVallabh Pittie Group (SVP), a global leader in the manufacturer of cotton yarn — the raw material for textiles. The Group’s Oman subsidiary, SV Pittie Sohar Textiles FZC LLC, is preparing to launch work on its $300 million cotton yarn project on a 27-hectare site at the free zone adjoining the Port of Sohar. Vinod Pittie, chairman, ShriVallabh Pittie Group, elaborated that the SVP Group is investing in the fundamental building block of what will inevitably evolve into a major textile hub in Sohar Freezone. With a cotton yarn plant in place, the potential for upstream, downstream, forward and backward integration is huge, and so is the opportunity for employment generation. Entire cities have sprung up in India, China, UK and the US, among other countries, on the back of textile industries.
The Group operates a complex of state-of-the-art plants in Gujarat, as well as a trio of traditional spinning mills in the Southern India. Total capacity is projected to double with the installation of 300,000 spindles and 7000 rotors at its upcoming facility in Oman. The upcoming project is the Group’s first-ever investment outside India. This is probably the first project of its kind in the world to be set up in a location that neither offers the basic raw material nor is a destination for the end product. Usually, it is either one or both criteria that are a prerequisite. The decision has been taken on the back of logistical advantages that it offers as well as an appeal investment expanse. Additionally, Sohar Freezone has well-developed infrastructure and is located not far from Dubai as well.
Sourcing advantages
Technology-wise, the Sohar project is set to be high-tech. The company has just completed one of the world’s most modern compact yarn projects in India, but this new project in Sohar will be the world’s most modern automated plant. Full automation will contribute to the production of a finer count of yarn and cost savings in the form of reduced energy consumption and lower manpower requirements. Machinery and equipment will be primarily procured from Germany. Raw cotton as raw material for the project will be sourced from the United States, Australia and India depending upon the grades of yarn required to be produced and the targeted markets internationally.
Slated advantages
The upcoming spinning project augurs well for the entire value chain of the textile industry, be it weaving, garment-making, etc. According to Pittie, it won’t be surprising to see that in three to five years, investments of around $1 billion will materialise in the textile cluster at Sohar. Imports and exports linked to the project will generate in excess of 5,000 containers in annual traffic through the Container Terminal.
The global market for textile fibres is projected to reach around 124 million tons by 2022, driven by the development and launch of innovative blends of textile fibres and yarns, expanding applications and burgeoning demand in emerging countries. In value terms, this translates to $156 billion in 2022, up from $126 billion presently.
Because Cotton is a valuable money crop, Azerbaijan has recently set course on restoring its traditional industry of cotton cultivation and now the state is providing huge support to this industry. From 1970 to 1980, cotton production was of crucial importance for Azerbaijan’s economy accounting for approximately 25 per cent of agricultural revenue. At that time, the country harvested a million tons of cotton per year.
Until 2016, cotton production remained insignificant. But the measures taken last year permitted increasing sown area of cotton to 51.400 hectares and its production shot up to 89.4000 tons. In 2017, the sown area reached 136,000 hectares, and production is planned to touch around 2,60,000 to 2,70,000 tons.
The state program for 2017 to 2022 will further strengthen measures directed at developing this industry. The purpose of the program is to develop cotton growing in Azerbaijan, increase export potential in this sphere, ensure employment of their rural population and increase the production of cotton to 5,00,000 tons in 2022.
If in 2015, some 35,000 tons of cotton were procured, then last year this figure touched about 90,000 tons. If last year cotton was grown on 51,000 hectares, then this year it is grown on 1,36,000 hectares. President Aliyev disclosed that cotton was grown in 20+ regions of the country. Cotton is the most widely used fiber in the world today comprising half of all fiber production. Around 90 countries worldwide grow cotton which is used to make clothes and other textiles worldwide with a large portion of the rest comes from synthetic products.
Gartex, India’s comprehensive exhibition on Garment and textile machinery, fabrics, accessories and allied industries, is set to showcase latest technological advancements in the Indian textile and garment manufacturing. The exclusive B2B exhibition is scheduled for July 29 to 31 July 2017 at Pragati Maidan, New Delhi. The show is determined to bring forth a complete value chain of garment and textile manufacturing solutions and technologies. Gartex has emerged as the definitive gateway to provide excellent quality and one-stop selling and sourcing platform. Top industry players such as Mehala, Durst, EFI Reggiani (Arrow Digital), Britomatics, Mimaki, Jaysynth, Colorjet, Negi Sign and many more are expected to be present.
Gartex serves as a one-stop-destination for latest innovations in textile and garment machinery and accessories market. The show this year would highlight latest developments in digital textile printing machinery, embroidery machines and garment and apparel machinery encompassing garmenting, digital textile printing technologies, fabrics and accessories.
Digitex will display the latest developments in digital textile printing technology encompassing machinery, inks, software and services. Visitors would get an opportunity to see digital printing for home furnishing and interior decoration, apparel and fashion, corporate interiors and other related segments.
One of the show’s central interests is garment and apparel machinery which includes pre and post process washing equipment, cloth inspection machine, cutting and laying machines, embroidery equipment, finishing machines, fusing machines, ironing and steaming equipment, knives/scissors grinding machines, quilting machines etc.
