FW
Data from the fibre consultancy PCI Wood Mackenzie records that International synthetic fibre prices increased by almost 13 per cent in 2017, more than triple 2016’s increase and the biggest annual rise since 2009.
The organisation’s Synthetic Fibres Index, which has risen in every month this year, was helped by increased International demand for apparel and textiles and higher oil and intermediates costs. Crude oil prices rose about 20 per cent to $65 per barrel in 2017, which together with strong demand for man-made fibres, have permitted producers of polyester and nylon intermediates and fibres to increase their prices. Energy experts forecast that oil prices will drop in early 2018.
Polyester filament remains the dominant man-made fibre product internationally. In China, where most of the world’s polyester filament production capacity is based, expansion this year didn’t manage to keep up with growing demand for the fibre, however suppliers will be unlikely to reduce prices if demand increases.
Staple fibre producers are running at or near capacity, with prices rising. Yarn spinners are moving to value-added products like hollow fibre and other products to blend with natural fibres. Higher prices are expected through 2018 when China’s ban on imports of plastic waste takes effect and reduces supply of recycled staple.
The spandex business is stable thanks to strong demand for apparel that contains stretch. Invista agreed to sell its spandex and nylon textile filament businesses, including brands Lycra, Coolmax, Supplex, Thermolite and Tactel, to Shangdong Ruyi, a leading textile and apparel company.
Acrylic staple prices were down for most of the year, but finally picked up a bit due to seasonal demand and higher polyester staple prices. Prices for its intermediate acrylonitrile, which were rising in the first part of the year, fell this fall.
Asian synthetic fibre prices remain over 20 per cent below the world average, down from 19 per cent a year ago. Turkey is in the process of almost doubling its polyester filament production capacity in the next two years, and has initiated anti-dumping measures, mainly against Asian imports. During the year, the gap between prices in the most expensive region, the U.S., and the least expensive, Asia, marginally narrowed, a trend that is expected to continue as the industry becomes increasingly international.
Sri Lanka's exports rose by 14.1 per cent from a year earlier to 976 million US dollars in October 2017, this was due to increased demand from the US and higher prices for agricultural products. Apparel exports to the US increased by 14.7 per cent while exports to the EU was up 8.0 per cent, with the help of GSP+ facility, the Central Bank disclosed. The US economy had been recovering and the Federal Reserve is already raising rates.
In the first 10 months of the year, exports were up 8.8 per cent to 9,399.7 million US dollars. Imports grew only 0.2 per cent to 1,727.2 million US dollars in October as against a year earlier with foreign reserve collections and slowing credit depressed economic activity. Up to October imports were up 8.7 per cent to 16.99 billion US dollars and the trade gap was up 2.7 per cent to 2,924 million US dollars.
Sri Lanka is now recovering from a balance of payments crisis generated in 2015 with large deficit budget which was accommodated by the Central Bank with money printing. When credit slows and foreign reserves are collected imports, and economic activity can slow or contract, though returning capital can help lessen the pain. The Central Bank disclosed that Sri Lanka's gross official reserves had risen to 7.5 billion US dollars by October 2017, with a 2.0 billion surplus in the balance of payments.
The Ministry of Economy’s Government policy’s — which makes relaxation of import of special raw materials for business players and small and medium enterprises (SME) — main aim is for the development of SMEs business.
Brand Manager, Danjyo Hiyoji, Erwin Arifin sees the Government's efforts as correct. The creative industry, especially fashion, is currently facing difficulty in getting varied raw materials to compete in the market.
As a shirt manufacturing businessman, the company cooperates or collaborates from upstream to downstream. Namely, the cooperation between the factory of textile materials and designers through to final production. "This cooperation is very helpful to keep working and maintain the existence of each party involved in the cooperation," Erwin was reported to have said recently. If coupled with the efforts of the Government to facilitate the acquisition of imported materials, then this will increase the capital and strength for this industry to be able to improve the competitiveness, especially with the brand or outside products that currently enter Indonesia, Erwin added and went on to say, even up to 100 per cent encourage the growth of this industry. This is because the raw materials that become special needs or demand from the textile industry, especially for the T-shirt industry, can be obtained so that they can produce optimally in the manufacture of textile products or T-shirts.
"So it can increase the selling value and the buyer's interest will be greater," he noted. Seeing the Government’s initiative, the Management of Danjyo Hiyoji is hopeful to gain business growth up to 100 per cent. Meanwhile, the company's business growth this year also recorded growth when compared to last year.
Nepali Government officials revealed that the government has started the construction of a Rs 2.5 billion (US$ 24.5mn ) garment processing zone in Simara, Bara to facilitate exports of Nepali readymade clothes. The facility, which will be spread over 300 bighas, is expected to be completed by 2018-19.
Chandika Prasad Bhatta, Executive Director of the Special Economic Zone (SEZ) Development Committee, announced that the site was being developed as an SEZ. The processing zone, he said, was expected to help the production of readymade garments and reduce manufacturing costs. “The services that will be offered at the processing zone will make Nepali products price competitive in the international market,” he added.
As per the Trade and Export Promotion Centre, exports of Nepali readymade garments have been falling in recent years due to lack of product diversification. In the last fiscal year, export earnings dropped by 9.9 per cent to Rs5.3 billion.
The US was the largest buyer of Nepali readymade garments till 2000. Exports to the US began falling from $171.39 million in 2003 onwards, touching a low of $60.51 million in 2010 after the US government stopped providing duty-free, quota-free market access to Nepali products.
Since February 2016, the US government has been providing duty-free access to 77 tariff lines under the Trade Preference Programme. Shawls, scarves, travel blankets, handbags and gloves are among the products that can avail of duty-free market access under the preferential treatment that will continue till 2025.
Bhatta said investors would receive a single window clearance in the area. “Services such as new licence issuance, licence renewal and tax and banking services will be available within the premises,” adding that visa related services would also be made available to foreign investors under the facility.
The SEZ will offer land plots to interested garment manufacturers at the rate of Rs 20 per square metre. They will be provided uninterrupted power supply and other logistics services at reasonable rates.
SEZ will offer facilities to firms that export at least 75 per cent of their output. Bhatta said that they would call for tenders post completion of the processing zone. “Companies with a history of being a large exporter, providing jobs to a large number of people and making large investments will be given priority to operate their production units inside the processing zone,” he concluded.
Irish clothing and accessories retailer Primark has appointed Paula Dumont López as the company’s new Head of Women’s Fashion. She is expected to take up her new job in January 2018. With an impressive track record, Paula will be responsible for overseeing women’s wear production and design for the international and domestic markets.
Paula recently served as Senior Vice President and Head of Esprit Woman since the last four years. Earlier this year, rumours abounded that she would be joining New Look as Chief Creative Officer, but the announcement was dismissed as just that, rumours, after CEO Anders Kristiansen, who appointed her, resigned his position at the company. The design executive joins Primark with her extensive experience in design as well as merchandising.
Before her work at Esprit, she was working at Inditex-owned Zara where she joined as a fabric buyer and later progressed to Head of Product for the Zara Basic vertical in her ten-year tenure. While several of its contemporaries continue to struggle in an increasingly swamped marketplace, the budget retailer Primark reported 19 per cent increase in sales as against the previous year. This helped raise the Group to a 15 per cent overall rise in revenue to touch £ 15.4 billion for the year to September.
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Shaikh Mohammad Shafiq, in a statement, congratulated Dr. Miftah Ismail’s appointment as Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, with the status of Federal Minister.
Shafiq expressed full confidence in Dr. Miftah’s ability and expertise to uplift the economy as he is a renowned businessman. Referring the TV talk show, he appreciated his enthusiasm to focus on resolving social and economic challenges faced by the county. He requested the PM to support him to achieve his goals, however, he notes that the Government needs to provide a conducive environment by reducing cost of inputs to achieve export targets.
Despite of capabilities and qualities of leadership Miftah can't achieve export targets unless he takes steps for the removal of hurdles hindering exports of textile sector. They should invite and consult with us to overcome these, he averred.
He urged all the stakeholders to play their role and trade Associations can also play a vital role and provide assistance in this regard. PRGMEA is a largest representative of value added sector, it can be beneficial to overcome these issues if takeen into confidence.
Utilities cost such as electric, gas and water are very high compare to our competitor country, he decried, for instance steam cost per ton per hour for Pakistan is US$ 16.44 and for Bangladesh its only US$ 5.6; whereas the Electricity/Kwh for Pakistan is 0.21$ while in Bangladesh it is 0.11$
The PRGMEA Chairman highlighted the fact that the low cost of labour in Bangladesh goes in favour of exporters. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. Their exports are now increasing at $3.5 billion per year and expected to hit $50 billion per year by 2020. Additionally the lower utilities cost further benefits the manufacturer, he pointed out. Terming funds blockage as another reason behind the continuous drop in exports. He said the export sector was unable to tap its potential as per its capacity.
Pakistan's major competitors such as India, Bangladesh and China were utilising all the channels and resources for capturing world market. “Under the prevailing situation we need to opt for similar approach to survive well in the market.” He advised.
Manchester and the surrounding area were built on the success of spinning and sewing during the first industrial revolution, until an interesting nickname called Cottonopolis.
But then production began to slow down, the emergence of Manchester Ship Canal and imports began to be done. Now after 40 years, cotton is once again back on the production line.
Through an investment of £ 6 million, UK cotton textile producers have begun demand for imported cotton from Southern California and in Manchester, the production of yarns used throughout the region in the supply chain will be reopened.
Director of English Fine Cottons Tracy Hawkins says that it has really come back involving weavers, finisher to dye to jointly form the supply chain again. There is a great desire to provide quality and excellent materials produced from the UK and are made here.
The company decided to follow the supply chain from bale to rail, to be a challenge in the garment business. At the top of the industry, an estimated eight billion yards of fabric was produced in 1912.
India will "leapfrog" Britain and France to become the world's fifth largest economy in 2018, ahead of an oncoming major global economic shift towards Asia, according to a British research organisation.
The World Economic League Table (WELT) 2018 released by Centre for Economics and Business Research (CEBR) said that in dollar terms, India will rise from its seventh rank to overtake those European economies next year despite the stumble of demonetisation and the introduction of Goods and Services Tax (GST).
Indian infrastructural projects will rebuild the world's most populous country, which will spend an amount as large as Canada's GDP on infrastructure.
Key projects include the Delhi-Mumbai Industrial Corridor, the Indian Smart Cities Project and more than 80,000 kms of new highways.
It was only in 1906 that the UK economy overtook the Indian economy, while the French economy was smaller than the Indian economy until 1951.
The growth in the Indian economy will also drive the rest of South Asia. Korea and Indonesia are expected to join list of the world's top 10 economies, with Taiwan, Thailand, Philippines and Pakistan making the top 25 list. Its other South-Asian counter parts like Pakistan will rise from the 41st position in 2017 to 25th in 2032, while Bangladesh will rise from the 43rd position to 31st in 2032.
Regarding China, the report stated that the country will overtake the US economy in 2030. This remains a remarkable achievement from an economy that was only 12 per cent the size of the US economy as recently as 2000, it added.
Since the impact of US President Donald Trump on trade has been less severe than expected, the report said the United States will retain the number one spot for a year longer, till 2029, than it was anticipated in the 2017.
James Munson, took over as MD of Marks and Spencer Reliance India Pvt. Ltd. in May.In 2011, when he was the marketing head in India, the company strived to sell women’s shorts with not much success, however, currently there’s demand is exponentially rising and Munson is all set to take the British retailer’s reins and lead it to success with low-priced products and new stores in India.
Marks and Spencer Group Plc. (M&S), which has a joint venture with Reliance Retail Ltd., has 62 stores in India. The retailer also sells the M&S brand on three online shopping sites, Myntra, AJIO and Amazon.
James sees India rising in line with international fashion trends, there is an alignment of fashion. In India, there is a greater demand for colour and print. We make sure with our local sourcing that we get additional colour and print into our stores here.
From a business perspective, James, sees India as increasingly becoming a competitive market, “which is good for us as well as the consumers”. The malls have professionalised in terms of investments.
James sees Indian customers increasingly follow global trends. For example, we’ve recorded a 62 per cent increase in the sale of dresses since last year as well as a 25 per cent increase in swimwear sales during 2017. Customers have brought into trends and key pieces such as the statement sleeves, embroidered detailing and patches across dresses.
James discloses that they are focusing on getting opening price points right to give the customer value for money. “We are pushing these value credentials in segments where we have real authority, like lingerie. Bras are growing at a rate of 31 per cent year-on-year and this year, we introduced a starting range of bras at Rs799, which was Rs1,299 last year. We have sold 86,000 units of that range so far this year”.
“We introduced a range of Rs999 in men’s polo T-shirts, which is starting to get traction. We have also introduced a ladies dresses line at Rs1,999, which has done phenomenally well. There is exponential growth in dresses” he added.
Why shift in price points? “It’s a combination of reviewing as to where we sit in the market, our ability to make sure that we have a very strong local sourcing base and that we are able to drive real value to our customers. Today, about 65 per cent of what we source for our business comes from India, Sri Lanka and Bangladesh; 30 per cent of our sourcing is directly from India itself, he discloses and adds, this gives us the benefit on supply chain and allows us to pass that benefit onto customers. But it’s not just about prices. It’s a combination of making sure that we are offering regular fashion in our stores at a price point that is compelling.”
The 2nd edition of Textyle-Expo will run from April 2 to 5, 2018 in Oran, Algeria. Despite the fact that the Algerian textiles and fashion industry significantly relies on imports, the Government is encouraging domestic production.
April 2 to 5, 2018 will see the 2nd edition of the International Textile and Fashion Fair - Textyle-Expo at the Mohamed Bem Ahmed Convention Center in Oran, Algeria. The event’s website revealed that the industry show’s first edition, in 2017, featured some 110 exhibitors and welcomed over 6,000 local and international visitors from countries including Tunisia, China, India, Taiwan, Turkey, the US and Europe.
Simultaneously along with the expo, a conference will take place in the Wahran Room of the Le Méridien Hotel. It will feature discussions on fashion, technology and markets with local and international industry specialists on the panel.
Panels will cover subjects including Algeria’s new investments law, the revitalisation of the country’s textile industry, the European consumer market and exports from the EU and the competitiveness of leather items.
A fashion shows will also be held, the same as in the first edition, with designers showcasing their collection. The Textyle-Expo website says only 6 per cent of clothing needs in Algeria are met by the domestic industry, with imports making up the remainder.
