FW
Bangladesh will lose duty-free access given by the European Union (EU) on readymade garment (RMG) exports in 2020 as it is expected to cease being a ‘least developed nation’ by then. If the central government provides adequate support to the industry then exporters could reap the benefits of Bangladesh’s loss. As per data from the United Nations Conference on Trade and Development, Bangladesh’s per capita income stood at $1,355 in 2016, a 39 per cent increase compared to 2013 ($974).
By 2020, its per capita income is predicted to overtake India’s, which stood at $1,706 in 2016. As per the World Trade Organisation, if the country’s per capita income remained more than $1,000 continuously for three years, it could be classified as a developing nation. Bangladesh may become a developing nation with a fast-growing economy.
Since the duty-free access given by the EU was one of main advantages enjoyed by exporters in Bangladesh, Tirupur knitwear exporters have been repeatedly saying that there was no level playing field. They have been urging the government to provide adequate sops to sustain the industry. Tirupur Exporters Association (TEA) president Raja M Shanmugham stated Indian exporters may not benefit even though Bangladesh is predicted to be stripped of the duty-free access by the EU.
Zahid Mazhar, Sr Vice Chairman All Pakistan Textile Mills Association (APTMA) says as per final statistics of cotton arrival released by Pakistan Cotton Ginners Association on May 1, only 11.58 million bales of 155 kg of cotton were produced in 2017-18. In fact, for three seasons in a row cotton crop has been below target. As per Pakistan Central Cotton Committee’s report this year about 48 per cent of cotton crop area in Sindh was missed due to scarcity and poor management of water,.
Because of the imposition of custom duty and sales tax on import of raw cotton, import of finished cotton yarn has seen 500 per cent increase in 2016-17 as compared to 2011-12. Mazhar says due to the high cost of doing business and inadequate supply of raw cotton almost 140 textile mills have closed resulting in a loss of one million jobs.
Another 75 to 80 mills are on the verge of closure which will add another 0.5 million to the unemployment figure. Due to closures of about 140 mills and the mills operating under capacity, Pakistan’s textile exports is suffering a loss of more than $4 billion per annum. He also stated Pakistan’s cotton crop is far behind consumption requirement of 15 million bales, for the third consecutive year.
"Blockchain was originally created as a public ledger for bitcoin, the crypto-currency. In the apparel industry, blockchain means more transparency when it comes to what apparel is made of, and where and how it is made. Daniel Newman, Principal Analyst and founding partner, Futurum Research explains blockchain can help lift the veil on supply chain. In a global economy, companies all over the world partner for manufacturing, agriculture, pharma development, etc. But as distance between companies grows, so does the ability to ensure that the products and processes agreed upon are actually followed when the final product is made. Blockchain can help combat fraud by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer."
Blockchain was originally created as a public ledger for bitcoin, the crypto-currency. In the apparel industry, blockchain means more transparency when it comes to what apparel is made of, and where and how it is made. Daniel Newman, Principal Analyst and founding partner, Futurum Research explains blockchain can help lift the veil on supply chain. In a global economy, companies all over the world partner for manufacturing, agriculture, pharma development, etc. But as distance between companies grows, so does the ability to ensure that the products and processes agreed upon are actually followed when the final product is made. Blockchain can help combat fraud by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer.
Being more transparent can enhance consumer loyalty, which would be a boon for any store or brand in a competitive marketplace. Recent Cotton Incorporated Lifestyle Monitor Survey illustrates more than half of consumers (56 per cent) are less loyal to brands than they were a few years ago. However, consumers admit they would be more likely to buy clothes from stores that offer things like clothes made from 100 per cent cotton (81 per cent) and clothes made in the USA (76 per cent).
The way it works
Blockchain would work as a public digital ledger where each item being manufactured would be given a unique product identity that is then stored in the
blockchain. As an item makes its way through the production system, each transaction needed to manufacture that product is validated on a digital ledger that is continually updated for everyone in that network. Once information is entered, it can’t be changed. All participants have access to the same data at the same time, allowing them to seamlessly find information and answer questions.
Elaborating on this, Lori Mitchell-Keller, Global General Manager of Consumer Industries, SAP, says both manufacturers and retailers should understand blockchain’s key capabilities. With blockchain technology, manufacturers have access to a living activity log, so they can manage the flow of goods, identify and track problems to any point within the supply chain and streamline processes. In addition, retailers who are purchasing apparel can benefit from the technology, particularly from the transparency, security and reliability it provides. Given that information on blockchain cannot be tampered with, retailers can ensure the items they sell are authentic and appropriately priced based on the products used and the overall manufacturing process.
As per Monitor Research, apparel manufacturers could more easily trace factors such as the fiber being used in their garments. It would also allow manufacturers and retailers to track and then promote natural fibre content to consumers. This is especially important, considering that consumers are willing to pay more to keep cotton from being substituted in their underwear (70 per cent), t-shirts (65 per cent), denim jeans (62 per cent), casual clothes (60 per cent), dress clothes (57 per cent), and activewear (55 per cent).
Finding faults early on
Mitchell-Keller pointed out that retailers can develop an authenticity trail from point-of-origin to point-of-use, reassuring consumers, as well as everyone along the global supply chain, that the products are authentic, transactions are protected, and operations are efficient. In addition, if there is an issue with a product, retailers can use blockchain to locate the affected batch and remove it from shelves faster than ever before. Blockchain’s revolutionary capabilities not only alleviate many points of friction in business transactions but they allow companies and individuals to easily exchange digital assets, positioning the technology for mass disruption.
Up to 99 per cent of Vietnamese products exported to the EU would be free of tariffs once the EU-Vietnam Free Trade Agreement (EVFTA) goes into effect. Vietnam’s exports to the bloc could rise by as much as four per cent to six per cent a year in the first ten years.
The deal would provide new opportunities for Vietnam to increase exports of clothing, seafood and agricultural products. The products Vietnam could not export before due to high tariffs can now be exported to the EU market with more competitive prices.
The deal would also benefit the EU, increasing the region’s income. It provides a big opportunity for European exporters. The EU hopes to finish processing this free trade agreement quickly so that businesses, workers and consumers alike in the EU can reap benefits as soon as possible.
However, signing of the EVFTA can also give rise to several challenges. There will be competitive pressure in the farming and automobile sectors but that’s not considered unusual. The deal is expected to be signed at the end of this year. Vietnam is the second country in the southeast Asian region after Singapore with which the EU has reached a free trade agreement.
From January to April ’18, Vietnam’s textile and clothing exports to the US were up 6.18 per cent from the corresponding period in 2017. Vietnam is the third largest textile and clothing exporter to the US after China and India (volume-wise) and second after China (value-wise). Readymade garments had a 94.34 per cent share of the exported value while the rest 5.66 per cent was shared by other textile products.
Earnings from readymade garment exports rose 4.05 per cent yearly. Exports of cotton apparels were up 1.84 per cent and exports of manmade fiber apparels were up 6.75 per cent. On the other hand, exports of wool apparels fell 12.34 per cent and exports of silk and veg apparels fell 12.34 per cent year-on-year.
Exports of non-apparel products from Vietnam to the US skyrocketed by 61.24 per cent. Made-ups topped the export growth in non-apparel products and saw a staggering jump of 107.18 per cent. Yarn exports from Vietnam to the US jumped by 15.20 per cent, while the value of fabric exports got a boost by 4.20 per cent. The South-east Asian manufacturing powerhouse is ready to achieve its export target of 35 billion dollars by this year.
Uz Textile Expo will be held in Uzbekistan from September 5 to 7, 2018. This is an exhibition of technologies for the textile and garment industry in the CIS. It is expected to host the German National Pavilion, Spanish National Pavilion, large expositions of Italian, Turkish, Chinese, Indian, Swiss, South Korean textile machinery manufacturers, totaling over 400 well known companies and brands.
The business program will also include the Tashkent International Textile Conference dedicated to the development of the textile industry, roundtables, B2B and B2G sessions, exhibitors’ presentations and many more.
The event will demonstrate the latest achievements and innovations of the textile business and fashion industry of Uzbekistan and world leading manufacturers along the entire production chain - from yarn to ready-made clothing.
Among the products presented at the exhibition will be yarn and fibers, fabrics / knitted fabrics, home textiles, technical textiles, textile haberdashery, trims and accessories, women's / men's / children's clothes, hosiery, underwear, clothes for sports and recreation, textile equipment and technologies.
To assist local manufacturers in expanding their exports abroad, the Special Bayer Program will be organized once again within the framework of the exhibition. Over the years, more than 500 major buyers from Russia, Ukraine, Belarus, Kazakhstan, Turkey and other countries have participated in this program.
Lakshmi Machine Works has been having a strong presence in the Turkish market for over 20 years. It has a wide customer base. LMW has its own office at Istanbul and Kahramanmaras with a service set-up to offer faster and value-added services to its customers in Vietnam, Central Asia, Egypt, Iran and Pakistan.
The company has introduced its new Autoleveller Drawframe LDF3, Card LC 636 and a new compact spinning module, the new Drawframe LDF3, new Card LC636 and the new compact system.
Lakshmi Machine Works is a textile machinery manufacturing company. The company operates in two business segments: textile machinery segment, which consists of spinning preparatory machinery, accessories and parts, and another segment, which consists of machine tools, foundry division and advanced technology center. Lakshmi is planning new product roll outs. It would, in the next four years, offer the entire range of machinery from blow room to ring frame.
The company’s capacity utilisation levels have, for some time, hovered around 65 to 70 per cent. It feels the south is an attractive market for its range of products. More than 40 per cent of its textile machinery sales happens in the south zone. While the south zone tops in sales, inflow of new orders for Lakshmi is primarily from the west, followed by the south and the north.
TT plans to exit the spinning business and focus on garment manufacturing. The New Delhi-based knitwear and garment maker reported a 25 per cent dip in turnover. It attributes the loss in the last fiscal to the ongoing restructuring exercise and tax-related issues.
The company has already shut three of its five spinning units due to the low margins and high risks associated with the sector. It has a strong presence in the innerwear segment in north and east India through its flagship TT brand. It also exports yarn and fabric to 65-odd countries. This fiscal TT hopes to be back in the black and will focus on high value-added offerings through its garment range.
TT will invest around Rs 50 crores to set up garment-making facilities in Uttar Pradesh, West Bengal and also ramp up existing units in UP, Tamil Nadu and Kolkata. The unit in UP is likely to go on stream from July 18.
The company also procures from third-party manufacturers in Ludhiana and Delhi. As part of TT’s diversification plan, it had set up the garment brand HiFlyer in 2017. The brand is now being retailed through both offline and online channels. Expansion will be through a network of exclusive brand outlets and mutli-brand outlets.
Some more organizations have joined the Zero Discharge of Hazardous Chemicals program. Among these are Eurofins, the world leader in food, environmental and pharmaceutical product testing, and one of the key emerging players in consumer product testing, soft lines, and leather including chemical management and testing services.
Raymond UCO Denim is a formidable combination of advanced manufacturing and global market reach. Testex is a globally operating, independent Swiss testing and certification organization with a focus on textile and leather testing.
The Albini Group is an Italian textile company, aiming at manufacturing the most beautiful shirting fabrics, embracing the culture of quality, innovation and Made in Italy excellence.
CIEL Textile is a world-class global player in textile and garments operations, spanning across Mauritius, Madagascar, India, and Bangladesh.
The Nahar Group of Companies is one of the leading textile companies in India having approximately 8,00,000 spindles, weaving, processing, denim, knitting, and garmenting capacities along with a retail business.
The Association for Quality Assurance of Leather Bracelets Manufacturers is joining ZDHC as an associate. It is a Swiss-based international association of leather bracelets manufacturers for the watch industry. ZDHC works to eliminate the use of priority hazardous chemicals in textile, leather, and footwear production.
The perception of globalisation in Japan may be a bit different from that of other developed countries as Japan strongly believes in international production networks. In the past, a typical negotiation team for a free trade agreement consisted of representatives from the Ministry of Foreign Affairs, the Ministry of Economy, Trade and Industry, the Ministry of Agriculture and the Ministry of Finance. These representatives often fought harshly among themselves — even in front of their foreign counterparts. Poor coordination among them substantially weakened strategic moves and lessened their negotiating power. Now, Japan’s political leadership is overcoming traditional inter-ministry competition. The way of working toward FTAs has fundamentally changed.
The majority of Japanese support the idea of TPP 12, at least in so far as they understand its elements. They believe that the competitiveness of Japanese firms resides in their active involvement in East Asian production networks. In parallel with the TPP, Japan has already completed the negotiation over the Japan–EU Economic Partnership Agreement. The diplomatic relationship with China has been restored to some extent and negotiations over the Regional Comprehensive Economic Partnership and the China–Japan–Korea FTA are ready to be accelerated. Japan is trying to be a hub of multiple mega-FTAs and there is public support for this concept.
