FW
Asper WTO Statistical Review 2017, the ratio of international trade growth to GDP fell to 0.6, representing the worst year since 2001; growth was just 1.3 per cent in volume terms, the weakest growth rate since 2008. Despite a brightening of the EU economy, textile and clothing (T&C) activity in the EU lost dynamism towards the end of the year. Textile activity improved to some extent, while activity in the clothing industry showed no signs of recovery. Year 2016 witnessed the slowest growth in EU exports since the financial crisis, while the retail turnover development was less dynamic than in previous year, recording a modest growth.
In spite of political concerns, the overall situation of the EU and OECD countries continued to improve both in The EU’s economic improvement did not, however, benefit the clothing sector (whose production fell further), whilst the textile sector edged ahead by just +1.6 per cent. Production prices again fell across the European Union as a whole, with an overall reduction of -1.1 per cent. The only exception was in the United Kingdom, where output prices rose.
Turnover index
The EU-28 turnover index for the clothing sector surpassed the 2010 threshold, up by +0.8 per cent. The index for textiles reached a new high in 2016 at 107.5, compared to 105.5 points in 2015 – an increase of +1.9 per cent. In the EU as a whole, investment only grew very slightly in 2016, taking into account the time lag between investment decisions and their implementation. Besides, Switzerland and Turkey faced declines in both sectors. Employment in the EU for both the textiles and clothing sectors remained almost stable in 2016. The textiles sector was in a more robust position, enabling it to boost employment, whereas the clothing sector again declined.
Outlook seems positive
Barring some continuing uncertainty, in particular related to the trade policy of the US and the effects of Brexit, especially on exchange rates, the outlook for the industry looks positive. Prices are rising, but quite slowly. This is also true for the costs of energy and certain raw materials. The value of the euro has tended to recover, at least until August 2017; EU consumer confidence and especially within the eurozone is at its highest level since April 2001. Unemployment has been steadily falling for more than four years now, both in the EU as a whole and in the eurozone, and the public finances of the majority of Member States have recovered.
Q1 2017 preliminary data was also favourable for the textile sector, except the decline in traditional sectors of spinning and weaving, as well as nonwovens, while finishing has seen a marginal recovery. Knitted items (circular knitting) continued to grow, but at a reduced pace. ‘Other textiles’, including technical textiles, expanded more sustainably. The growth mainly came from the Eastern European countries. The clothing sector continued to cut production, yet turnover rose slightly. However, managers’ expectations during the second half of 2017 continued to rise in the clothing industry with positive assessments of production expectations.
Denim Days will be celebrated in Amsterdam from April 11 to 17, 2016. The show focuses on denim’s tradition and innovation, heritage and style. The program has something for denim lovers of every kind, from brands and makers to wearers and speakers. There will be animation shops, fashion shows, conferences and an international exhibition.
This edition of Amsterdam Denim Days include a six-day public program named City Center which involves product launches and other events taking place in a variety of shops and boutiques; the public festival Blueprint features a selection of denim labels, workshops, seminars, exclusive denim items, exhibitions, music and food; and an invitation-only trade show for professionals called Kingpins.
The Kingpins show gathers several international players in production and finishing of denim. Blueprint is known among denim professionals as an exclusive fashion-forward denim platform. So far it was only for professionals. For the first time, the participating brands and initiatives will be open to all denim addicts.
www.amsterdamdenimdays.com/
India wants to develop apparel, made-ups and home furnishing sector. Steps will be taken to develop skills repository for the apparel value chain, national occupational standards in the industry, establish well-structured sector specific labor market information systems and improvise the training delivery value chain, including third party assessments and certifications.
The scheme envisages imparting training to youngsters as well as assessing and certifying the existing workforce in the apparel sector. Existing manpower of apparel factories and those having prior knowledge will be assessed and certified.
The Apparel Made-UPs Home Furnishing Sector Skill Council of India (AMH SSC) has been launched with a primary mandate of enhancing and building a capacity in skill development. One of the salient responsibilities of AMH SSC is designing training programs based on industry demands of different segments and ensuring that all successful trainees are certified through an accredited assessment agency.
Assessment is the process of evidence collection of a person’s competence level through a range of methods, tests, observations, interviews, assignments and professional discussions etc. AMH SSC has been given the target of certifying more than two million persons till 2022 in skilling courses for the apparel sector.
Revenues from India’s coir exports are encouraging. Coir exports during the April-January period of the current fiscal are up 5.5 per cent. Exports in the current fiscal are expected to exceed last year’s levels.
Currently, China, Korea, Japan, Germany, Canada, US are the major markets for Indian coir products. Exporters are looking at exploring the Australian market in a big way with value-added products. Coir fiber exports to China are not showing substantial increase. This has resulted in sufficient availability in the domestic market. The domestic need is approximately one lakh tons.
Steps are being taken to modernize the industry, enhance productivity and ensure uniformity of coir rolls in the export market. Leading spinning machinery manufacturers in India may be given the incentive to develop new spindles to improve productivity. Value-added coir producing units will be ensured a steady supply of raw materials.
Coir geo-textiles are used in road construction. A 18 km rural road network in Kerala has used this material. In future it may be used in the construction of national highways. This can lead to a 25 per cent saving in construction cost besides increasing the durability of road by five years.
Australian shorn wool production for the 2015-’16 season is expected dip by seven per cent over the 2014-15 season. The seven per cent decline compares with a 5.6 per cent decline in the weight of wool tested in the first eight months of 2015-’16.
Dry seasonal conditions in spring in many major sheep-producing areas have resulted in lower average wool cuts per head this season. The hot, dry conditions over summer in a number of regions is likely to further exacerbate this during the autumn shearings and has also reportedly resulted in increased turn-off of sheep.
For the 2015-16 season upto February, there has been a significant increase in the weight of wool between 16.5 micron and finer, only a small decline in the volumes of 17 micron wool, but a significant decline in volumes of wool between 21.6 and 23.5 microns. Volumes of other micron categories mostly fell by around six to nine per cent. The mean fiber diameter for Australia to February, was 21.1 microns, the same as in 2014-’15.
Some regions, such as areas in Western Australia, have seen better rainfall mainly from intense summer storms which have relieved stock water shortages but pasture conditions remain a concern.
Asia Fashion Fair will be held in Japan, July 5 to 7, 2016. This is a clothing and textile fair started in 2003, and is held three times a year. Every year, there are more than 10,000 buyers visiting AFF. Many Asian enterprises will exihibit their products. The fair attracts many high quality suppliers and increasingly plays a big role in the industry.
Japanese exporters have been paying more attention to the textiles and garments supplied by various production bases in Asia in recent years. This event showcases garments, accessories, fabrics, trims and home textile products and many more related products and services in the cosmetics and beauty products and fashion accessories industries.
Textiles have long played an important role in Japanese life. Japanese weavers and dyers used silk, hemp, ramie, cotton and other fibers, and a range of weaves and decorative treatments, to produce textiles of distinctive design and exceptional aesthetic merit.
As with many other Japanese arts, Japanese textiles historically have developed through an interaction of external influences and indigenous techniques and design choices, and a tendency to develop both technology and aesthetics to a high degree of refinement.
www.asiafashionfair.jp/en/exhibitor/
There was a slump in local production of cotton during 2015 in Pakistan. So, this time the ministry of textile industry wants cabinet support for an action plan to ensure the country’s textile manufacturers receive enough cotton supplies.
According to government data, Pakistan’s cotton production dropped 33.85 per cent to 9.71 million bales during this past 2015 growing season. The fall was particularly pronounced in Punjab province. Pest attacks, inferior inputs and sliding prices are key reasons for the low output, ministry officials say.
The ministry has recommended waiving sales tax and duties on cotton imports to help support mills in the short term. Along with this a minimum support price for Pakistan-produced cotton to stem the trend of growers switching to other crops in wake of falling global prices. The ministry wants to ensure a ready supply of local raw materials for small- and medium-sized textile units that lack the capacity to import directly.
As per figures, the annual cotton requirement of the textile industry is 16 million bales against the local production of 9.7 million bales this year. The gap is wide and may grow if the government does not address the issue.
The country produced 14.71 million bales in the same period of last year against domestic demand of 15 million bales from the textile industry. According to the Pakistan Cotton Ginners’ Association (PCGA), cotton output dipped to 5.95 million bales in Punjab during the last growing season from 10.74 million bales harvested a year earlier (2014). Sindh province’s production fell marginally to 3.77 million bales, compared with 3.96 million bales in the previous year.
Many experts opine that the government has never been sensitive to the rural economy. And the current policies might drag the country into losing its inherent strength in agriculture. But Khawaja Anis, president of the Pakistan Cotton Ginners’ Association, has gone on record saying that the industry was happy to import cotton, as long as it was cheap:
At a workshop conducted in Hanoi, Nguyen Cam, Deputy Minister of Industry and Trade, discussed Vietnam’s textile and apparel sector. The workshop discussed ways to promote the participation of APEC small-and medium-sized enterprises (SMEs) of textile and apparel global value chains. The aim of the event was to support the effective integration of SMEs into the APEC region. There is a need for SMEs to participate in the global value chains (GVCs) in general and the apparel sector in particular.
The value chain follows the creation of products or services through different production phases, including physical transformation, the input of various manufacturing services, the distribution of products to consumers and their disposal after consumption. These activities can be conducted within the enterprises of a particular geographical area.
What emerged from the workshop is that the GVCs are a new and more comprehensive approach to international divisions of labour. However, access to international divisions of labour based on GVCs would help enterprises have a better understanding of their position in the global market, and therefore they can actively select appropriate phases to maximise their benefits.
Pham Quynh Mai, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, discussed the difficulties faced by the textile and apparel sector despite its fast growth. The sector is still depending on raw materials and materials imported from foreign countries, especially China. To access markets, enterprises need knowledge, while SMEs should sign design and outsourced manufacturing contracts with large enterprises to learn from their experiences, according to Nguyen Huong Tra, a SME development expert at the workshop.
"Recently, at the Tranoi New York, the big American fashion event, one saw a certain paradigm shift. A number of European exhibitors landed there seeking to test waters. The aim was to find new customers to replace shrinking sales in the stagnant European economy and to make up for the lost export opportunities brought about by EU's boycott of Russia."
Many Italian and French designers are now increasingly looking to North American buyers to make up for the continuing shortfall in demand because of the shrinking sales in Europe. EU sanctions on trade with Russia, has also added to their woes.
Wooing the US consumer…
Recently, at the Tranoi New York, the big American fashion event, one saw a certain paradigm shift. A number of European exhibitors landed there seeking to test waters. The aim was to find new customers to replace shrinking sales in the stagnant European economy and to make up for the lost export opportunities brought about by EU's boycott of Russia.
Among the many European exhibitors making their debut in the North American market was Bagutta, the Italian shirt manufacturer. According to Ivan Demartis, the company's Retail/Export Co-ordinator due to the current economic trends, they are now more focused on international fairs and events. While, in Italy at least, the economic situation is getting better, however, it is not expected to be back like before. Therefore, brands are looking at better opportunities in international markets beyond Europe. However, Demartis opine this is something of a challenge because of the variations in taste, one has to present a strong identity, and communicate that identity and the quality of the product.
According to Enrico Colombo, Owner of Printed Artworks, an Italian fabric printer based in Milan, trading conditions are tough now as compared to earlier. Now the market is worldwide, but the quantity of buying has fallen. Besides the slow home market, a number of European exhibitors were also feeling the adverse effects of sales lost due to trade sanctions against Russia. Experts feel the fight with Russia limited their business as Russia had supported and sustained the market for 10 years. And now all that market is lost. Even for established brands the going has been tough to break into newer markets. Mahna Mahna a bag maker from Japan, despite its historic connection with the US, has been finding it t difficult to break back into North America.
Predictably at an event dominated by European brands, the consensus was that consumers value products made in the continent. According to Sarah Zafrani, a Fashion Designer with Paris-based Venera Arapu being made in Europe is definitely seen as a guarantee of higher standard. One has also seen a polarisation in US tastes in both the formal and informal sectors. While the Americans like sportswear there is also demand for high-end, dressy clothes. Even though sportswear is still a strong force in the US, there is some suggestion that Americans are starting to feel the need to smarten up. There has been a transition towards 'Athleisure' with sneakers and sport pants.
Maredi Moda Cannes will be held November from 8 to 10, 2016. This is a trade show for beachwear and lingerie fabrics and accessories, outsourcing and new trends. There will be workshops, presentations and discussions on innovations in beach wear, new trends, business models and also an arena for professionals to meet.
The show promotes creativity and Made in Europe styles. Maredi Moda is currently the most qualified international meeting point of printed and plain fabric producers, accessory makers and specialized manufacturers from the Euro Med area for beachwear and underwear. It today represents the only reference point worldwide for swimwear.
Maredi Moda stands out as a reliable partner for all those companies that avoid mass production and large-scale downgrading in favor of a quality-oriented perspective. The beachwear and underwear sector is experiencing a lively recovery. The earlier edition of Maredi Moda Cannes closed with a four per cent rise in visitors compared to previous editions. The event hosted 2870 buyers coming from countries like Italy, France, Spain, England and Germany.
Maredi Moda is organized by Maredi Moda Scarl, a non-profit consortium, to promote European high quality production of textiles and accessories for beachwear and underwear produced by European companies.
www.maredimoda.com/
