FW
US denim imports overall fell in October 2017, and the market share map continues to shift. Total imports of denim trousers across categories were down 2.51 per cent for the period, putting the market at $2.94 billion in value, with the men’s and boy’s category dipping more than triple the less than 1 per cent decline in women’s and girl’s.
China remains the United States’ largest supplier of denim trousers, though its share continues to slip. The Asian powerhouse commanded 25 per cent of market share across the categories as of October with $738.9 million worth of exports to the US, though that number is down nearly 12 per cent year-over-year.
Mexico ranks the second largest supplier of denim trousers to the US, delivering $666.4 million worth of product a 22.6 per cent share of the market. Bangladesh is currently the third largest supplier of denim trousers to the U.S., and it’s share of the market, which currently stands at 14.1 per cent seems to be continuously on an upswing. The country exported $416 million worth of denim trousers to the U.S. in the year to October.
Rounding off the United States’ top suppliers of denim trousers, in order of import value and market share, are Pakistan, Vietnam, Egypt, Nicaragua, Indonesia, Cambodia and Lesotho. The US imported $1.84 billion worth of men’s and boy’s denim trousers in the year to October, accounting for 62 per cent of total denim trouser imports. In men’s category, Mexico was the top supplier, though the $703.9 million worth of products it shipped to the US came in nearly 9 per cent lower than the prior year period. Bangladesh and China followed as the No. 2 and No. 3 suppliers in men’s and boy’s.
According to a recent report in the Guardian, evidence of worker confinement has been found in the supply chain of luxury fashion retailer Hugo Boss.
One of the company’s suppliers in southern India, Best Corporation, has been accused of several transgressions, including: refusing to allow its female workers to leave its factory on their own free will; banning workers from having cell phones or only permitting telephone calls under managers’ supervision; and the denial of independent inspections by local labor and human rights organizations.
Hugo Boss acknowledged that forced labor was a concern within its supplier base. In that report, the company says it knew of no instances of grievances filed related to human rights violations – but Hugo Boss did not report any third-party human rights reviews, either. The problems Hugo Boss and other fashion companies have confronted in India have long been a drag on the reputation of the country’s garment sector. NGO, India Committee of the Netherlands, reported a year ago that various forms of human rights abuses at factories, including forced labor and child slavery, were found in over 90 per cent of spinning mills across the country’s southern region. The majority of these people were teenage girls and women between the ages of 14 and 18; and anywhere from 10 to 20 per cent of them were younger than 14. Of the almost 750 mills surveyed, a standard working week was over 60 hours long. In addition, only 39 of those mills paid the locally mandated minimum wage and only 10 of them had any trade union presence.
Cotton production recovery continues in 2017/18 with a projected 11 per cent growth due to increased area to touch 25.4 million tons. Following the sharp drop in production in 2015/16, the 2016/17 production recovered 7 per cent to 23 million tons. Production in the USA for the current season is expected to increase 25 per cent to 4.7 million tons, a 930,000 and increase. India remains the world’s largest producer with 2017/18 production expected to be 6.2 million tons with 8.7 per cent growth. The second largest producer, China’s, production is projected at 5.2 million tons with a 7.1 per cent increase. Pakistan’s production projections for 2017/18 is 11.5 per cent increase to 1.9 million tons. Production increase in Turkey is estimated to grow 18 per cent to 829,000 tons. Other major cotton producing countries are expected to have positive growth attributed to increased area and yields.
From the season low of 77 cents per pound at the start of season, prices are at a season high at the end of this calendar year up to 88 cents per pound. The current season average of 80 cents per pound is lower than the 2016/17 average of 83 cents per pound. With a lower international price from the previous season and the rising price of competing fibres, global consumption is expected to grow. International cotton prices have continued to move upward over the last few months as the season has been underway.
After stagnating in 2016/17, global cotton demand is expected to increase 3 per cent in 2017/18 to 25.2 million tons. Chinese mill use is expected to remain stable at 8.1 million tons, while India and Pakistan are expected to increase 3 per cent and 4 per cent respectively. Consumption in Vietnam is expected to grow 12 per cent to 1.3 million tons. Moderate growth of 2-3 per cent is expected for other major consuming countries of Bangladesh, Turkey and the United States.
As the fair and the potential in the Asian market continue to gain prominence in the global industry, Yarn Expo Spring 2018 is ready to once again create an effective sales and sourcing platform for the industry. Held from March 14 to 16th of the National Exhibition and Convention Center, this year’s fair is expecting over 450 exhibitors (2016: 393) to take part. A full spectrum of quality yarn and fibre products, such as natural and blended yarns, man-made fibres and yarns as well as the fair’s rising star specialty yarns will be featured to accommodate all kinds of sourcing needs.
With Yarn Expo Spring 2018, four other textile trade fairs are held concurrently in the same venue that is Intertextile Shanghai Apparel Fabrics Spring Edition, Intertextile Shanghai Home Textiles – Spring Edition, PH Value and the China International Fashion Fair (CHIC).
Jack & Jones, the men’s apparel brand, a division of Denmark-based Bestseller, is launching two jeans that contain recycled post-consumer cotton in its effort to ensure sustainable denim. The jeans are to be included in the brands “never out of stock range.” The brand says jeans will contain the highest possible amount of recycled post-consumer cotton to reach a high level of quality. The remaining cotton will be sourced as either ‘better cotton’ or organic cotton.
The sustainable jeans project is in support of Jack & Jones’ Low Impact Denim initiative which includes the use of laser and ozone technologies. This is a part of the brand’s mission to accelerate a circular fashion system. As a strategic partner of the Global Fashion Agenda, a Copenhagen-based industry group dedicated to transforming the way fashion is consumed/produced, Bestseller is rolling out three action points on post-consumer waste.
Besides increasing its use of recycled textile fibre by 2020, all Bestsellers designers and buyers will have completed a training module on circular fashion design. The company will also offer and promote a used garment collection channel to consumers in selected markets along with partners. The action points are in reply to Global Fashion Agenda’s call to action unveiled at the Copenhagen Fashion Summit in 2017. The group called on fashion brands and retailers to sign a commitment to speed up its efforts to create a circular fashion eco-system by increasing the volume of used garments collected and resold as well as by increasing the share of garments made from recycled post-consumer textile fibre.
Dorte Rye, Bestseller’s Sustainability Manager, explained that the action points are key to a more circular system, however, they cannot stand alone. “The coming years ahead both Bestseller and the entire industry as such must learn together and be very innovative to take on the challenge on creating a more circular system for fashion.”
Inditex is gaining traction in Asia. According to the brand’s latest results, the region saw some of the group's biggest openings in the last financial year, and continues to be its second largest global market after Europe.
Last year, the continent accounted for almost a quarter of all global sales of the Spanish group. According to Inditex CEO Pablo Isla, the company plans to continue investing heavily in Asia. In 2012, Asia accounted for just 19 per cent of the retail giant’s revenue, rising to 23.9 per cent at the end of 2016. Meanwhile, other regions have remained relatively unchanged, except for Spain, which decreased its share from 20.7 per cent of all sales in 2012 to 16.9 per cent last year.
Over the last five years, Inditex has been particularly focused on growing both its physical store estate and expanding its online presence – a dual strategy that has been replicated across the Asian territory. In 2017, Zara opened an online store in India, joining the brand’s presence in Singapore, Malaysia, Thailand and Vietnam. But China is where the brand is most widespread, with a total of more than 620 stores.
Some 2017 milestones for Inditex included the opening of a 3,200-sq. mt. Zara flagship in Shenzhen, China; and similar launches in Mumbai, India; Nagoya, Japan; and Hanoi, Vietnam. Shenzhen also saw the opening of a Massimo Dutti flagship, while Bershka’s brand image was revamped in Tokyo. Meanwhile, Pull&Bear launched in Vietnam, where Pablo Isla eyes the launch of more brands following the arrival of Stradivarius in Ho Chi Minh, Massimo Dutti and Pull&Bear.
But for Inditex, Asia is not just an attractive retail market. The company has almost a thousand suppliers and more than 2,734 factories in the region, with Asian workers accounting for 10 per cent of the group’s total number of employees.
Swedish fashion giant H&M group is preparing for the launch of multi-brand e-commerce store focussing on fashion and discount fashion. The new project, called 'P12', could launch mid-April where around 60 brands have already been lined up to sell with the H&M group whose motto is ‘The Paradise for Style and Bargain hunting.’ As per reports suggest they have about 100 offices and an estimated investment of at approximately 50 million Euros.
The potential e-shop is expected to join the fast-fashion company's overall new digital strategy which it announced during its most recent and unhappy financial results where it said the group would close more H&M stores in 2018 and open less new stores than previously decided on. In spring, the group will also launch its H&M lines on Tmall, the mega Chinese e-commerce platform, while its upcoming brand, Nyden - a fashion brand targeted at millennials, will only be sold online and in limited flagship stores. For the fourth quarter 2017, H&M group sales fell by 4 per cent to 58.4 billion Danish kroner, over the fiscal period (6.1 billion Euros). For the entire year, total revenues rose by 4 per cent to 231.7 billion kroner, or 22.2 billion Euros.
Krichev and Bobruisk cities in Mogilev Oblast region of Belarus will get two new garment manufacturing factories during the first quarter of 2018. These two new units will be set up by Belarusian branch – Sharm Premyer of Russia-based knitted-goods manufacturer Sharm. The company will use the unused premises of rubber goods factory of the Belarusian tire maker Belshina for its factory in Krichev which will incorporate state-of-the-art equipment. Seamers are also being prepared and trained.
The second unit in Bobruisk may be housed in a rented building. These two manufacturing units is expected to create about 600 jobs and produce around 5,00,000 ready-made garments on a monthly basis, collectively. Goods manufactured here are to be exported to Russia from where it will be distributed through proprietary outlets.
Tatiana Andrushchishina, Director of Sharm Premyer says, favourable business terms, skilled workforce, good logistics and proximity to the Russian border made Mogilev Oblast as the obvious choice to set up these factories for the company.”
These two garment factories will manufacture products such as T-shirts, trousers, skirts, shorts, sweaters, breeches, polo shirts and tank tops to cater to the new millennials. Sharm Premyer has been manufacturing in Belarus since 2006 where their three manufacturing units produce around 2,50,000 garments every month.
There has been an exponential increase in LEED certified green factories in Bangladesh. The Alliance and the Accord have shown immensely positive results and the $50BN mark is closer to target. Bangladesh now exports $200MN apparel in terms of value. Year 2018 is expected to be a key year for this industry. The Alliance and the Accord will be leaving after their tenure is over and industry watchers will be keenly watching to see how factories in Bangladesh have managed to overhaul their operations.
Steps are already being taken to continue the progress the consortiums have made, with BGMEA planning to come up with their own plans. Key indicators for 2018 are: Enhanced Backward Linkage: Many government policies have permitted the textile industry to progress in the past few years. As a result of this, textile owners have started modernising their factories through newer machinery, better management practices and the implementation of new technology.
Better Infrastructure: The government has recently commissioned two studies to analyse the feasibility of a floating terminal and a mid-sized seaport, both near the Chittagong seaport to remove hurdles at the Chittagong seaport and enhance logistics. The government has already spent $6 billion this year alone and in recent years has undertaken the construction of a new seaport the Payra seaport, and the Padma bridge which is set to be completed by this year. So for 2018 looks bright for apparel buyers.
Go green initiative: The top three environmentally friendly garments factories in the world are located in Bangladesh. In a move to be more ethical and change the way, the world looks at Bangladesh, the RMG industry and Bangladesh apparel factory owners have initiated a move to be more eco-friendly. Currently 67 factories have obtained LEED certification and over 222 factories have been registered for the LEED certification process. The government has helped to promote this trend by providing loans at 9 per cent for apparel manufacturing factories that work towards being green.
AATCC, the world’s leading not-for-profit association serving textile professionals since 1921 — presents their 2018 International Conference (IC) to be held from March 6 to 8, Greenville, US and features a keynote presentation, educational tracks, a poster session, networking receptions and the Awards Luncheon, where their most prestigious awards will be presented.
Jerry Inman, Demand Worldwide, will provide the keynote presentation ‘The Retail Rebels: Who Will Conquer the Connected Consumer?’ where he will explore collaborating, communicating and connecting with next generation of shoppers and employees, Generation Z.
Three simultaneous educational tracks reflect the Association’s three Interest Groups: 1. Concept 2 Consumer® (C2C) which will focus on colour management and lighting trends for the evolving retail landscape, speed to market, sustainability throughout the supply chain, and textile testing.
2. Chemical Applications: This will address advances in colouration and chemistry, technologies to achieve comfort, odour control and antimicrobial, and the Herman and Myrtle Goldstein Student Paper Competition. 3. Materials Presentations will include advances in fibres and fabrics, flexible wearable technology, medical textiles, and comfort and performance clothing needs and assessments.
The conference, to be held at the Hyatt Regency in Greenville, is open to anyone.
