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High-end streetwear helped boost global sales of luxury personal goods by 5 percent this year to an estimated €263 billion. While streetwear has proven to bring the next generation of consumers into the luxury fold, it is a double-edged sword.
Luxury brands are adapting to changing times and striving to connect with a younger and diverse customer base, grooming the next generation of loyal luxury customers.
Luxury brands and retailers are establishing exclusive design and marketing collaborations with streetwear labels, hip-hop and rap recording artists and entertainers, and fashion and social media influencers.
Several luxury goods labels have profited from hip-hop and streetwear-inspired collections over the past few seasons. Multiple luxury fashion houses, as well as the Louis Vuitton and Givenchy brands, have been partnering with streetwear brands and introducing sneaker- and streetwear-inspired products.
Multiple luxury fashion houses, as well as the Louis Vuitton and Givenchy brands, have been partnering with streetwear brands and introducing sneaker- and streetwear-inspired products.v
Louis Vuitton partnered with the Supreme skateboard brand on a design collaboration that apparently generated €100 million ($117 million) in sales. The collection, which was sold in pop-up stores in major cities worldwide in June 2017.
According to the report the luxury goods companies will increasingly need to innovate and keep up with millennial and Gen Z trends in order to capture and grow sales among the younger generations. The historically conservative luxury goods industry is striving to attract a more diverse and younger client base.
The U.S. holiday shopping season is on track to break sales records on the back of surging consumer confidence and increased use of mobile devices, presenting an unexpected boon for retailers and the delivery companies they rely on.
According to Mastercard analytics arm the holiday shopping season, a crucial period for retailers that can account for up to 40 percent of annual sales, brought record-breaking online and in-store spending this year of more than $800 billion.
Stakes are particularly high this year for traditional retailers that have invested heavily in technology and free delivery and returns, determined to stay relevant in a market increasingly dominated by Amazon.
Package delivery companies that handle returns for retailers have benefited from booming delivery volumes in recent years, but also have had to invest billions of dollars to upgrade and expand their networks to cope as e-commerce purchases surge to new heights.
Delivering individual packages to shoppers - and picking up returns - is a lower margin business for delivery companies, which make more when they deliver in bulk to businesses.
UPS has worked for years to increase its ability to forecast customer shipping demands to handle major package volume spikes ahead of the holidays. It has also raised shipping rates and added 2018 peak-season surcharges.
The returns delivered in 2017 are part of the 750 million packages UPS and is expected to deliver globally during the peak shipping season from the U.S.
Thanksgiving holiday through New Year's Eve. That is an increase of nearly 40 million over the previous year.
As per a recent report by ICRA, domestic spinners are likely to see a gradual recovery in performance from Q4 FY2018 onwards, after facing multiple issues over past several quarters which resulted in their profitability touching six-year lows in the second and third quarters of current fiscal.
Mr. Jayanta Roy, Senior Vice-President and Group Head, Corporate Sector Ratings, ICRA avers, “The improvement in performance of domestic spinners is likely to be aided by a downward bias in cotton prices amid healthy cotton crop and an upward bias in yarn realisations due to demand restoration. While there has been an uptick in cotton prices in the recent weeks, ICRA believes the same to be an aberration in light of slower-than-usual arrivals in the leading cotton producing state of Gujarat owing to elections and concerns emanating from reports of pest attacks.”
ICRA believes that the crop quantity and quality is unlikely to be impacted seriously because of the issues mentioned above and arrivals are forecast to pick up in Q4 FY2018. So, domestic prices are likely to remain ~10-12 per cent lower than average cotton price during the twelve month period ending Sep 2017, close to the price floor of Rs. 105/Kg which factors in increased minimum support price and bonus declared in Gujarat.
“The scenario on demand front is also likely to be more conducive, supported by improved clarity on export incentives for textile goods during recent weeks, which in-turn is likely to support India’s overall textile exports from Q4 FY2018 onwards. With improved demand scenario, the yarn realisations are likely to witness some upward bias, though the increase will be limited due to low cotton price,” Royadded.
The clarity on export incentives, which had been revised downwards post-GST created a transitory impact, is good for cotton yarn demand from export-oriented textile players in the downstream sectors and hence is likely to support demand restoration to an extent. In addition, the cotton yarn demand is also expected to gather strength from restoration of domestic demand following the temporary disruption caused by the transition to the GST regime and higher exports to China, before re-launch of its cotton auctions in March 2018.
Earlier, over 200 printing and dyeing units were in operation in Keqiao, is an important textile cluster in China which is was famously called ‘China Textile City’ — unfortunately,the traditional printing and dyeing industry faces serious environmental issues, including high energy-consuming, high-emission low-end equipment (80 per cent of which are more than 10-years old), however, since the last four years, there are only about 100 left in operation and here their production has fallen from 20 billion meters to 16 billion meters per year.
While relocating the industry, Keqiao worked out the negative list for equipment renovation and in 2016 alone, 2,023 sets of outdated printing and dyeing equipment were replaced.
By relocating to clusters and utilising technologically advanced equipment, the industry has risen from the ashes like the fabled Phoenix. Currently, as construction of the first- and second-Phase of the printing and dyeing cluster have been completed, 40 projects have been put into production, while 17 projects in the third Phase are under construction. In the first three quarters of this year, the local printing and dyeing industry recorded a 19.2 per cent growth in industrial output, 19.2per cent growth in sales, 27.8per cent growth in total profits and 23.7per cent growth in taxes.
Under the banner 'green, high-end and leading the world’, Keqiao is now building the Lanyin Fashion Town (industrial park), targeted at improving economic performance by introducing innovative technology, advanced equipment and effective management within a planned area of 3.5 square kilometers, Lanyin Fashion Town will be based on sustainable printing and dyeing; this will be supported by fashion culture tourism.
The Karachi Cotton Association (KCA) held a meeting on Thursday where representatives of the All Pakistan Textile Mills Association (APTMA) and the Pakistan Cotton Ginners Association (PCGA) were present to discuss the issue of increasing the cotton crop in the country and improving the quality of cottonseed.
Shorter Pakistani crop during the period 2017 – 2018, than earlier expected, has seen domestic prices rise to higher levels.Traders said in Karachi that Pakistan may harvest a crop of 11.5 million bales (155 Kgs) during the current season 2017/2018.
The rise in International cotton prices in America is said to have gone beyond 79 cents per pound this week.Indian prices for the natural fibre has also sharply risen following the fatal pink bollworm attack on the crop in Maharashtra.
Yarn prices have also shown increase in recent months while the large spinning units are said to be faring much better. If the cotton demand continues to increase, local lint prices may rise.
There are several issues which could topple the global economy including a feared property and banking bubble in China, the missile crisis in North Korea and the inconclusive Brexit talks.
Cotton export is estimated to extend by 15 per cent to 67 lakh bales (of 170 kg every) within 12 months in 2017-18, which began in October, due to the rise within the output of the commodity. This assessment was made by the Cotton Advisory Board.
The crop manufacturing is estimated to extend to 377 lakh bales through the 2017-18 interval, from 345 lakh bales.
As for larger manufacturing value within the textile business, he additionally mentioned, cotton costs present that compared to the earlier 12 months, common costs have decreased by 48 per cent for numerous cotton varieties.
In a separate reply, the minister mentioned the federal government is taking a number of measures to advertise procurement of cotton from farmers on minimal assist costs by Cotton Company of India (CCIL).
"The recently concluded 56th Dornbirn Man-Made Fibers Congress highlighted innovation is key for the industry and all producers have to work together in partnership along the whole supply chain in a world that is becoming increasingly digital and driven by the ‘millennial’ generation of consumers. The message was loud and clear to push European textile manufacturing ahead and not restrict itself by negative reports. The event hosted more than 100 lectures having the best concoction of industry and academic research."
The recently concluded 56th Dornbirn Man-Made Fibers Congress highlighted innovation is key for the industry and all producers have to work together in partnership along the whole supply chain in a world that is becoming increasingly digital and driven by the ‘millennial’ generation of consumers. The message was loud and clear to push European textile manufacturing ahead and not restrict itself by negative reports. The event hosted more than 100 lectures having the best concoction of industry and academic research. The key themes included fibre innovations, and fibres, textiles and nonwovens for healthcare and hygiene, protective applications, and sports and leisure wear. It attracted more than 700 participants from over 30 countries, including a 30-strong delegation from China. The three-day event also included several panel discussions and a young scientists’ forum, as well as a recycling workshop.
Aiming towards productivity
In his opening remarks, Robert van de Kerkhof, Chief Commercial Officer, Lenzing and President, Austrian Fibers Institute, noted the global fibre market is growing by 3-4 per cent a year, with the highest growth in Asia, especially China. Further, the technical textiles market is predicted to reach 42 million tonne by 2020, where functionality is being applied to a range of new applications, such as architecture, automotive and sportswear. But there is a dark side to the industry: after petroleum, the fashion industry is one of the world’s most polluting industrial sectors. According to Changing Markets Foundation, the manufacture of viscose, for instance, could be sustainable, but is often not, owing to its prevalent production methods. Kerkhof said, leaders have to raise the bar, state priorities, and show the brands and retailers that it is possible to produce fibres responsibly and sustainably.
Delusions and rectifications
Heinz Meierkord, President, CIRFS, the European Man-made Fibres Association, and CEO, Advansa, noted manmade fibres accounted for 68 per cent of global fiber production in 2016, followed by cotton with 24 per cent. Further, manmade fibers are more durable than natural fibers, the shelf life of synthetic fabrics is longer, washing can take place at lower temperatures, and they dry quickly, without the need for ironing. In many industrial applications, manmade fibers can also provide properties of light weight, high strength and protection from weather, as well as being used in geotextiles, medical textiles and filtration.
Awarding excellence
Paul Schlack/Wilhelm Albrecht Prize 2017 was awarded to two researchers working on the development of polyethylene-based carbon fibres as part of their doctorates at the Institut für Textiltechnik (ITA) at RWTH Aachen, Germany. Gisa Wortberg focussed on the development of polyethylene-based carbon fibres for thermochemical stabilisation, while Andreas De Palmenaer worked on the conversion of the polyethylene-based precursors. The researchers demonstrated the technical feasibility of using polyethylene as an alternative precursor material for carbon fibre, as well as the ability to control the process chain and its economic potential. Meanwhile, the Paul Schlack Honorary Prize 2017 was awarded to ITA’s Markus Beckers for the development and analysis of a new manufacturing process for polymer optical fibers.
Sustainable Routes
A recycling workshop was held a day prior to the congress. This was chaired by Syngroup Management Consulting of Austria, and focussed on the ‘Circular Economy: Textile and Nonwovens Waste – a threat or opportunity?’ Ikea and adidas were among some of the brands present during the workshop. It was jointly organized by Dornbirn-MFC in cooperation with CIRFS, EDANA (the international association serving the nonwovens and related industries) and the International Solid Waste Association.
In a panel discussion moderated by Giuseppe Gherzi, of Gherzi Consulting, Switzerland, on sustainability and performance in the sports and leisure wear industry, the key message was brands/retailers should work with the entire value chain. However, the question remains as to who should drive sustainability. Ranil Vitarana of MAS Holding, Sri Lanka, noted that the textile industry is extremely fragmented, but sustainability should be driven by Europe. However, there needs to be a cohesive plan to implement it faster.
Next edition of the newly rebranded 57th Global Fiber Congress Dornbirn will be held on September 12-14, 2018. The main topics, include : fibre innovations; transport and mobility; recycling; energy storage; surface modification and additives; and additive technologies.
The allocation of Uzbekistan visited South Korea to discuss the implementation of the project to create a textile Techno Park in the city of Tashkent. The company plans to expand the geography of exports to the countries of Southeast Asia, Europe, the Middle East, Africa, as well as North and Latin America.
The parties agreed that the Korean side will start supplying technological and laboratory equipment, and the Uzbek side will begin customs clearance of the equipment supplied.
The installation of the equipment is expected to begin in March 2018. Construction and installation work will be completed by mid-2018 and the Techno Park will be commissioned in September 2018.At present, Uzbekistan continues to attract foreign investments for construction of textile enterprises in the country.
Until mid-February 2018 the Korean decided for training in parallel with the installation of the equipment.
Main objective of the techno park construction works in the sphere of material science, dyeing and finishing production, fabric design as well as development of alternative energy sources. It is aimed at development and implementation of international training and research programs as well as exchange of experience to develop textile industry.
Group of buildings with the territory of more than 10,000 square meters is expected to be constructed within the framework of the project.
The establishment of the Techno Park is expected to raise the Uzbek light industry to a qualitatively new level of development and improve the training system for the sector.
Textile industry of Uzbekistan is considered to be one of the most dynamic and socially important sectors and ranks high among export-oriented industries of the country’s economy. The Uzbek textile industry is mainly focused on cotton, silk and wool.
Annually, Uzbekistangrows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber.One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry.
Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs.
According to the General Organization for Export & Import Control report Turkey has topped the nations importing Egyptian textile, capturing 38.3percent of the total exports recording $230.27 million.
The report noted that Egypt's textile exports have increased by 5 percent during the first 11 months of 2017 recoding $749 million compared $716 million during the same period in 2016.
The textile exports have witnessed a growth of 9 percent during November 2017 registering $72 million comparing to $66 million during the same month in 2016. 10 countries have seized 70 percent of the textile exports between January and November 2017 posting $526 million.
Within 11 months the United Kingdom has come next in the list of the top Egyptian textile importers at $144 million followed by Saudi Arabia at $29 million, then Tunisia and Germany at $24 million and $19 million.
Vietnam’s textile and garment exports to the Eurasian Economic Union (EAEU) have exceeded trigger levels, or the total amount subject to preferential tariffs allowed into EAEU markets for this year.
According to the Ministry of Industry and Trade, the Department of Domestic Market Protection of the Eurasian Economic Commission has announced that 173.3 tons of underwear and 112.7 tons of children’s clothes from Vietnam had been shipped to EAEU in the year to end-October, exceeding the trigger levels for this year in accordance with a free trade agreement between Vietnam and EAEU.
The agreement also stipulates that the union can slap safeguard duties on products beyond trigger levels within six months upon the shipment. In case the trigger levels are breached, Vietnamese underwear and children’s clothes will not be entitled to preferential tax and will be imposed Most Favored Nation (MFN) import duties.For each product, a trigger will apply each year if the volume of any products imported into the EAEU exceed the trigger for that year, the EAEU will immediately announce it to Vietnam by written document.
