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Hong Kong-based garment manufacturer Crystal Group, is a strong proponent of humans when compared to robots. The company is considering an increase in its staff by more than 10 per cent in Vietnam and Bangladesh as it is of the view that humans are more cost-effective as against sewing robots. This is good news for the industry and has come at a time when the industry is working hard towards automation in this sector.
Crystal also believes that technological innovations such as Sewbot is practical, but it’s not yet time for them to replace humans, more so in low-cost nations. Palaniswamy Rajan, Chief Executive, Softwear Automation also shares the same view that though its creation, Sewbot is the future of the industry, it is not cost-competitive when compared to humans, especially in countries such as Vietnam. The company is in discussion to launch its first automated T-shirt production line in the US.
The apparel manufacturer, which recently raised $ 490 million in IPO in Hong Kong, is confident that countries such as Vietnam will continue to see extensive growth given the exodus of companies withdrawing from China, following increasing cost of production. Labour wage in Southern China has crossed US $ 700 a month, which is higher than that in Vietnam ($300-350) and Bangladesh ($150-200).
Correspondingly, the Crystal Group is planning to use the IPO earnings to set up fabric production facilities in manufacturing hubs such as Vietnam and Bangladesh. Last year, the Group was one of the largest apparel producers in the world in terms of volumes.
Data from the Ministry of Commerce (MOC) show 2017 was a good year for the Myanmar garment export sector. During the seven months of April and November, around $1.5 billion worth of garment products were exported from the country and bound for warehouses owned by Uniqlo and Primark in Japan and Europe.
Myanmar’s garment export have been growing exponentially following rising labour costs in former low-cost manufacturing hubs such as China as well as increasing demand from global clothes, lingerie and sportswear brands due largely to growing affluence in many parts of the world. Myanmar Garment Manufacturers Association (MGMA) reports the country’s garment sector represents the country’s second largest export sector and it is expanding. During the fiscal 2016-17, the industry exported garments worth around $2.2 billion, up from $1.8 billion the previous year. During 2013-14 and 2014-15, garment exports totalled $1.2 billion and $1.5 billion, respectively.
Industry watchers say new strategies need to be implemented for growth to remain sustainable. Daw Yin Yin Moe, Secretary of the Myanmar Textile Manufacturers’ Association cautions, “The garment sector has grown significantly over the past three years, but to continue expanding, we are planning to reach more customers in international markets and raise demand.”
Currently, about a third of locally produced garments are exported to Japan, while a quarter each is shipped to Europe and South Korea, respectively, according to the MOC. The balance is shipped in smaller quantities to China and the US. U Kyaw Win, Vice-President, MGMA, advised, to serve a wider range of markets, the industry will cooperate with the Government to host the Myanmar Gar-Tex Expo in Yangon next March. The exhibition will promote Myanmar-made garment products and expose local manufacturers to international competitors and customers,
The exhibition, which will showcase over 80 garment participants and host up to 3,500 trade visitors worldwide, will be organised by the Ministry of Industry in cooperation with MGMA, the Myanmar Textile Manufacturer Association, Textile Engineer Association, and Vietnam Textile & Apparel Association.
MGMA is confident that if all goes well, the Myanmar garment sector could be valued at around $8 to $10 billion in ten years’.
The Cotton Association of India’s (CAIs) December 2017 estimate of the crop for the 2017-18 season beginning October 1, 2017, is forecast at 375 lakh bales — the same level as in the previous estimate. The projected balance sheet by the CAI forecasts total cotton supply for the season at 425 lakh bales of 170 kg each.
The total cotton supply estimated at 425 lakh bales includes the opening stock of 30 lakh bales at the beginning of the season and an estimated 20 lakh bales of imports for the 2017-18 crop year. The domestic consumption is estimated to be 320 lakh bales while CAI estimates exports for the season to be 55 lakh bales. Up to end December 2017, CAI estimates cotton arrivals at 147.75 lakh bales as against arrival of 108 lakh bales up to December 31, 2016.
CAI President Atul S Ganatra has announced, “Around 39 per cent of the total crop estimated for the year has already arrived in the market and looking at the pace of arrivals this year, CAI is of the view that the projected crop of 375 lakh bales for 2017-18 crop year is very much achievable.” CAI’s estimate of 375 lakh bales of cotton crop is slightly lower than Cotton Advisory Board’s recent forecast of 377 lakh bales for the 2017-18 crop year.
CAI reports the Central Zone, comprising the main cotton growing state of Gujarat, is expected to contribute 213 lakh bales, while the South and North Zone are expected to contribute 100 lakh bales and 57 lakh bales, respectively.
Chittagong port handled about 2.56 million twenty-foot equivalent units of import, export and empty containers last year, up 9.36 percent from a year ago, despite prolonged congestion.
According to Chittagong Port Authority (CPA) data, 2017's container handling growth rate was the lowest in the last five years. Port users blamed prolonged vessel and container congestion throughout the year for this poor show. As per them the shortage of jetty, yard and equipment facilities at the port pushed the growth rate down.
CPA data showed the country's premier maritime port posted nearly 16 percent and 17 percent growth in container handling in 2016 and 2015 respectively. Container handling grew 9.6 percent in 2013.
Mahbubul Alam, chairman of the Port Users' Forum, held the lack of efficiency and poor capacity of the port for the slow growth. He stated that the port urgently needs new terminals with modern jetties and equipment to increase its efficiency and capacity.
Nasir Uddin Chowdhury, chairman of the standing committee on port and shipping of the Bangladesh Garment Manufacturers and Exporters Association, also echoed Alam.
The drawn-out congestion last year put the record number of container vessels waiting at the outer anchorage, he added. On an average, 15 to 20 vessels had to wait for 12 to 15 days at the outer anchorage before getting berth at the port jetties.
However, he confirmed that the decision to keep the port, customs and other related services open for 24 hours following the prime minister's instruction in July improved the situation a lot in the second half of the year.
The 4th edition of Morocco Style will see more than 400 international exhibitors display their creations in various segments. The four-day exhibition is a platform for national and international companies of different sectors to show and promote their skills, meet partners and collaborate with brands from several countries. The Morocco international fashion, textile and accessories fair is scheduled from March 28-31 in Casablanca.
The gateway of Africa', Morocco, which has free trade agreements with the European Union and United States, provides great advantage to textile exporters. Morocco Style is the best platform to enter into this market and participants will be able to take a advantage of all these opportunities with buyer delegations and professional visitors from more than 18 countries mainly neighboring countries such as, Tunisia, Algeria, Portugal, Spain.
The 3rd Morocco Style hosted 312 exhibitors from 11 countries such as, Morocco, Turkey, Spain, France, Portugal, France, China, India, Italy, Pakistan, Tunisia along with 1, 2443 professional visitors from Morocco. Some 37 foreign countries from West and South Africa, North Africa, Middle East and Gulf countries were also represented joining European countries such as Italy, Germany, Spain, Portugal, France, Belgium, Greece, Netherlands, England and America.
While drawing attention of Miftah Ismail, Advisor to the Prime Minister on Finance, Revenue and Economic Affairs, Pakistan Yarn Merchants Association (PYMA), has again demanded removal of regulatory duty imposed on import of yarn. Central chairman PYMA , Khurshid A Shaikh, Zonal Chairman Muhammad Aslam Moten and zonal vice-chairman Muhammad Khalid Gader have expressed their pleasure and satisfaction over appointment of Miftah Ismail as the new Advisor for Finance. Therefore, with a background of remarkable achievement, he must implement his decisions for enhancement of commercial and industrial activities.
PYMA office-bearers, while expressing their deep concern over hurdles in imports of yarn and continuous increase in production cost in the textile industry, stated that by removing regulatory duty, the government may play a vital role in supply of cheap raw material to textile industry. PYMA office bearers have requested Ismail to bring all stakeholders on board for improvement of economical and financial policies in order to prepare effective policies for removal of issues and problems faced by related industry. They stressed upon government that by broadening tax net and reduction in corruption, economical stability and business enhancement may be achieved and national economy will be saved from collapse.
Marks & Spencer has sold its retail business in Hong Kong and Macau to its franchise partner Al-Futtaim as it retreats from international markets to focus on its core business in Britain. Al-Futtaim, which already operates 72 M&S stores across 11 markets in Asia and the Middle East, purchased 27 shops in the deal, which completed on December 30.
The move follows a strategic review by M&S in November 2016, in which the company laid out plans to shut more than 80 stores at home and abroad as well as to seek joint ventures and franchise partnerships.
Indonesia's textile exports rose around five per cent on a year-on-year (y/y) basis in 2017. This is a great performance because the country's textile exports had been rather stagnant in the 2012-16 period and global textile demand declined this year, says Ade Sudrajat, Chairman of API.
Another important factor is, generally, Indonesia's competitiveness has improved in the textile industry, hence it can offer its textile products at more attractive prices globally. Several years ago various textile factories were moved from West Java and Banten to Central Java because minimum wages rose too steeply in West Java and Banten. Central Java, on the other hand, still offers a relatively cheap production environment.
Meanwhile, the stable economy of Indonesia has attracted more investment in Indonesia's textile sector. According to data from Indonesia's Investment Coordinating Board (BKPM), a total of IDR 10.24 trillion (approx. USD $759 million) was invested in Indonesia's textile industry in the January-September 2017 period, much higher than the IDR 7.54 trillion that was invested in the same period one year earlier.
The world's top economy remains the biggest market for Indonesian textiles. About 36 per cent of Indonesian textile shipments go to the US. A concern for Indonesia's textile industry is that competition from Vietnam is rising. Problematically, and unlike Vietnam, Indonesia does not have a free trade agreement with the European Union. Therefore, Indonesian textile exports to Europe are subject to import duties in the range of 5-20 per cent, while Vietnam can export its textile products to this region without import duties.
Sudrajat urges the government to focus on bilateral talks with the EU in order to improve the competitiveness of Indonesian textile products further. Indonesian Industry Minister Airlangga Hartarto says the government is currently trying to arrange zero import duties for textile shipments to the US and Australia, while it is also studying the plan to seek a free trade agreement with the EU.
Sports lifestyle label Fred Perry saw sales dipping 2 per cent in the year to March 31. The British brand saw sales worth £110.8 million, down from £113 million year earlier. The 65-year-old label has been owned by Japan’s Hit Union since 1995 and the owners paid themselves an increased dividend, rising to £11.3 million from £7.8 million. That higher payout was the result of an increase in profits as the company cut costs and saw generally lower expenses.
The company also increased the cash on its books to £13.6 million from £5.2 million, an important fact as weak cash flow can be a problem for otherwise-buoyant businesses. And as of March 31, the company had total net assets of almost £90 million and no debt.
Fred Perry, which was founded in 1952 by the former Wimbledon tennis champion, says sales in the UK and Europe were flat during the 12-month period it planned to continue focusing on building the Fred Perry brand by improving the “quality and depth” of its product offer across men’s, women’s, footwear, accessories and kidswear.
The company is continuing its pop culture associations with other celebrity hook-ups. It has been heavily associated with the music scene and youth culture since the 1960s and is continuing this tradition with its newest collaboration, launched late last year, being with musician Miles Kane.
Exports of home textiles from Egypt increased 4.8 per cent year-on-year in January-November 2017. Exports during the 11-month period were valued at $664 million, as against $443 million registered in the same period last year, according to the Egyptian Home Textiles Export Council (HTEC), under the ministry of foreign trade and industry.
Around 40 companies, under the aegis of HTEC, are going to participate in the Heimtextil International Trade Fair for home textiles, to be held in Frankfurt, Germany from January 9-12, 2018. Some Egyptian companies are also going to participate in the Carpet Domotex International exhibition, scheduled for January 13-17, 2018, in another German town of Hanover.
Meanwhile, exports by Egypt’s Textile Export Council increased by 3 per cent between January and October this year, standing at $673 million compared to $651 million during the same period a year before, according to official statistics.
