FW
Tirupur’s textile industry has set a target of exports worth Rs 40,000 crores this year. The industry had to face a series of downs due to: Brexit, demonetisation and GST. In fact, GST has hit all industries hard. In the case of textiles, there were anomalies, especially the 18 per cent tax levied on job work. This was later reduced to five per cent and brought on par with other jobs like dyeing and compacting. Otherwise, the survival of the industry, especially knitwear, would have been a question mark.
Since knitwear industry has to handle cash every week for disbursing wages, operations were hit after demonetisation. But soon Tirupur bounced back following other modes of transaction. The industry fell Rs 4,000 crores short of its target Rs 30,000 crores. But the prime reason was Brexit because the international value of the pound fell by 25 per cent.
Half of the knitwear exports from India are contributed by Tirupur. But in the last five years, domestic business has grown five times faster than exports. This has happened because of a huge rise in demand for dresses. The average Indian changes clothes four times a day.
Apparel Textile Sourcing Canada (ATSC) is being held from August 21 to 23, 2017. There are more than 300 exhibitors from over 20 countries. The exhibition has brought to Canada hundreds of apparel and textile manufacturers from around the world, including China, India, Bangladesh, Pakistan, the US, the UK, Mexico, Colombia, Peru and more.
Through an impressive platform of seminars and sessions at the exhibition, attendees can make global industry connections, and gain the insights needed to navigate the international sourcing process. Featuring a wide range of Canadia-made products soon to be launched in the Canadian market as well as products from Chinese and other international manufacturers, the showcase include latest innovations by industry leaders.
Among the products on display are self-heating winter coats and boot insoles, T-shirts that monitor a person’s heart and breathing, leg bands that measure muscle performance and help prevent injuries, LED-backlit apparel and socks that improve balance.
The show is an unprecedented opportunity for Canadian importers, manufacturers, retailers, designers and small businesses to get a first-hand look at the global fashions, fabrics and textures that consumers will be after in the coming year. ATSC debuted in 2016 with more than 200 booths of merchandise and in excess of 1,800 attendees.
From January to May 2017 Japan saw a 1.98 per cent rise in its import volume. The value of imports fell by 0.54 per cent. During the first five months, both knitted and woven categories recorded a rise in volume terms (2.19 per cent and 1.38 per cent) and a decline in value terms (0.97 per cent and 0.15 per cent) respectively.
China, Vietnam and Bangladesh were the top apparel exporters to Japan among Asian countries. Volume-wise apparel exports from China and Vietnam were up by 0.36 per cent and 12.65 per cent, respectively, whereas Bangladesh’s garment exports dipped 3.95 per cent on a year-on-year basis.
However, in terms of value, China and Bangladesh felt the heat as both countries got lesser prices on exported apparels’ when compared to the corresponding period of last year. The value of China’s apparel exports plunged 2.46 per cent while Bangladesh saw a drop of 5.16 per cent. On the other hand, Vietnam saw an impressive value-wise rise in exports by 10.15 per cent. The year 2017 is projected to remain progressive for Japan as far as clothing demand is concerned.
Texworld Apparel Sourcing will be held in France from September 18 to 21, 2017. This is one of the world’s leading fabrics and apparel exhibitions. Texworld Apparel Sourcing is France’s biggest apparel sourcing fair. It has pavilions for countries like Bangladesh, India, Sri Lanka, Pakistan, Vietnam, China, Ethiopia, among a host of others.
No other fair provides this wide a choice. Purchasers and visitors will be arriving from UK and the European Union countries. Texworld features international manufacturers specialising in fabrics, trimmings and accessories. Over 100 exhibitors will be coming to Texworld to attend the show for the very first time.
There will be a new segment in this edition, Texworld Denim. It will assemble 80 textile and clothing exhibitors who are experts in denim. Planned around a concept for stands that are easier to view and are variable in size, this new segment will have a new trends forum and a social village enlivened by a diverse program of meetings and presentations.
A series of lectures about latest developments in the sector, news from exhibitors, catwalk shows and the trends forum go to make up a varied and imaginative program. Over 1530 exhibitors from 110 countries took part in the exhibition in 2016. The range of sourcing countries included UK, France, Turkey, Spain, Italy and Germany.
Over the last four years, raw silk production in India has increased but we are yet to become self-sufficient on account of growing demand for silk products. Raw silk production saw an increase of 30,348 tonnes during 2016-17 from 28,523 tonnes as compared to 2016 previous after a marginal slump in production during 2015-16.
The country continues to import no less than 6,000 tonnes of silk every year from China while the government’s ambition to become self-supporting in production remains unfulfilled. Central Silk Board (CSB) chairman K M Hanumantharayappa says demand (for silk) continues to grow every year.
The demand for silk products particularly saris and readymade garments are also increasing. Due to promotion of sericulture in the country, a number of organised players had set up modern silk goods production units. Till a few years ago, most weavers preferred Chinese silk for its superior quality and would use imported silk along with indigenous silk. In terms of quality there is no need of imported silk in terms of quality. Production of bivoltine silk has increased in recent times to constitute 25 per cent of the mulberry silk variety produced in India. According to the Central Sericultural Research and Training Institute (CSR&TI) Bivoltine silk is as good if not better than imported silk.
The difference between imported and indigenous silk was not much even after decrease in import duty. As per the (CSR&TI) if imported silk is available to weavers for Rs 3,500 a kg, indigenous silk is available for Rs 3,200.
Caprolactam (CPL) supply in China increased rapidly as the average operation rate of CPL plants rebounded to a high level. CPL and nylon 6 CS chip markets began to dip from August 10. Nylon 6 HS chip and nylon 6 filament markets did not follow the downtrend, but prices are bound to decline later as downstream purchases reduce.
The average operation rate of CPL plants rebounded from 58 per cent to 70 per cent rapidly by end-July. Shandong Haili and Lubao’s units also restarted in August. Meanwhile, Nanjing Fibrant, Tianchen Yaolong and Risun’s units also recovered running at full capacity or at 90 per cent. As a result, the average operation rate increased to 84 per cent.
Besides, with expectations of a bearish market, downstream plants would only lower and not increase operation rates. Therefore, CPL supply may be in surplus while demand would stay weak, which is bound to suppress CPL prices.
Nylon 6 textile filament plants are behaving more cautiously at present. As a whole, CPL supply is large while downstream demand is weak, so nylon markets would keep slipping up short. But the turning point may come when downstream demand rebounds in the traditional peak season and feedstock prices reach the bottom line.
The Chinese polyester market strongly pushed up in July, a typical slack season, which triggered downstream rejection. Meanwhile, scorching weather slowed down momentum. End-user demand seems strong but strength has weakened from July levels. This round of stock build-up by end-users is on the premise of low-pricing plus the spur of possible stricter environmental regulation.
Purchasing strength is restrained, reflecting a downstream cautious mood.
However, environmental protection issue has created a big uncertainty in the market. In the knitting and weaving sector, water jet looms that generate more pollution may get impacted. Shaoxing is a major region but affected looms are limited since the region mainly focuses on circular knitting. As for printing and dyeing, Shaoxing has been rectified intensively during G20 last year, which looks quite effective.
The polyester sales ratio continued to be low in early August, putting producers under stock pressure. Plants then cut price to promote sales, but downstream has not budged. In all, the polyester market in August has revived somewhat from end-July. Initially the market is likely to fluctuate, but environmental regulation as a big uncertainty plus the psychological effect may interact and give the market a chance to rebound around September.
Shanghai Tex will be held in China from November 27 to 30, 2017. It will focus on sports knitting technologies that create high performance sportswear for sports lovers.
The sports arena will look into three hot topics: sports bra, wearable technology and shoe technology. 3D printing innovator Materialise will display 3D printing technology. Sports Arena will attract professionals from different fields such as shoe uppers, soles, 3D printing and smart technology to explore the latest sports shoes developments and trends. Issues of comfort, support, shoulder strap design and function remain the main challenges in sports bra production. Exports on the intimate apparel industry will address both theoretical and practical matters in various bra issues.
Shanghai Tex will be held in China from November 27 to 30, 2017. It will focus on sports knitting technologies that create high performance sportswear for sports lovers.
The sports arena will look into three hot topics: sports bra, wearable technology and shoe technology. 3D printing innovator Materialise will display 3D printing technology. Sports Arena will attract professionals from different fields such as shoe uppers, soles, 3D printing and smart technology to explore the latest sports shoes developments and trends. Issues of comfort, support, shoulder strap design and function remain the main challenges in sports bra production. Exports on the intimate apparel industry will address both theoretical and practical matters in various bra issues.
By 2020 China is projected to become the second largest R&D industry globally, overtaking Japan. From 2016 to 2020 China planned to increase R&D expenditure’s share of GDP to 2.5 per cent by 2020. The country aims to become a high-tech regional hub encouraging scientific innovations and their commercialisation under the Scientific Innovation 2030 initiative and industrial transitioning plan – Made in China 2025.
The latter initiative is set to fuel innovation in manufacturing industries and support the development of emerging industries such as IT, 5G mobile communications, computerised machines, robotics, electric vehicles, medical devices, artificial intelligence, and bio-pharmacy.
However, industry’s development is projected to be negatively affected by growing skills shortage in the country, with graduates in science recording the lowest increase in number during 2011-2016. One of the most interesting yet least appreciated facets of modern China is its transformation from a low-cost, labor intensive manufacturer to an economy driven by an indigenous, self-sustaining process of technological change. The emergence of home grown research and development culture in China will not only help the country transition from developing to developed country status but also boost its transformation from an export to a consumption-led economy.
For the West, the rise of innovation and R&D in China means that the next big wave of Chinese competition is only a few years away – this time from China’s innovation prowess, not just its cheaper labor.
Cambodia’s garment and footwear industry generated over $6.5 billion last year while providing jobs for about 7,00,000 workers. Improving workers’ wages, health care, transport and working environment is likely to benefit employers by resulting in increased worker efficiency.
Improving labor productivity would be fundamental for Cambodia to remain competitive, given rising competition from other low-wage garment exporting countries. Cambodia wants preferential trade terms for its footwear exports from the United States.
Preference systems let developing countries export certain goods to donor countries at reduced tariff levels. Cambodian footwear, textiles and garments are excluded from the US GSP. Cambodia’s footwear and garment industry exports under the US’ most favored nation program are taxed by the US, which wants to protect its local industries. Cambodia’s real growth is projected to remain strong, expanding at 6.9 per cent in 2017 and 2018.
Risks to this outlook include the fallout from further rises in US interest rates, a slower-than expected economic recovery in Europe, and uncertainties over global trade. US monetary policy tightening is expected to result in the dollar appreciating vis-a-vis the euro and other currencies, which would make Cambodia’s exports and tourism relatively more expensive for the rest of the world, and therefore less competitive.
