FW
The first eight months of 2017 saw strong growth of Vietnam’s main exports. Exports of phones and components were up 14.8 per cent, garments were up 7.2 per cent, footwear up 13 per cent, seafood up 19.2 per cent, wood and wooden products up 10.6 per cent and vegetables and fruits up 48 per cent.
Export turnover in the eight months rose 17.9 per cent year-on-year. Of this, exports by the domestic sector saw a 15.7 per cent increase while those of the foreign-invested sector were up 18.9 per cent.
The US remained the largest consumer of Vietnamese goods followed by the EU and China. But China’s share of Vietnam’s imports saw a year-on-year surge of 14.7 per cent.
Import value registered a year-on-year surge of 33.5 per cent for machines, equipment, tools and components, 33.3 per cent for telephone and its components, 24.8 per cent for electronic products, computers and components and 16.3 per cent for steel.
Import turnover during the first eight months jumped by 22.3 per cent year-on-year, with imports by the domestic sector showing a 18.4 per cent increase while those of the foreign-invested sector increased by 25 per cent.
Vietnam is changing the rate of import tax and export tax for certain goods.
The Kerala Agricultural University (KAU) University has identified 12 indigenous plants for manufacturing natural textile dyes. A study by the College of Agriculture (CoA), Vellayani, as a part of the Western Ghat Development Programme (WGDP), identified 12 indigenous plants capable of giving colour to cotton and silk textiles. This will provide an organic option for dyeing.
KAU has been looking at industrial production of natural dyes for textile industry. The technology for using these plants for commercial textile industry has been standardised under another research project sponsored by the RKVY (Rashtriya Krishi Vikas Yojana). The technology will be of great value in the development of eco-friendly and safe clothing, especially for newborns and people allergic to synthetic dyes.
The KAU has not revealed the names of the plants owing to patent issues. Plant dyes were used for garment dyeing and wall paintings till the advent of synthetic dyes in the 16th century.
The biochemical properties of these natural dye compounds had also been deciphered, which would help identify the biomolecules in them. Going back to the safer, cheaper, and durable natural plant dyes would also help the ecosystem and the lives of workers in dye manufacturing industry, he added.
Kerala, especially the Western Ghats region, is gifted with a wide array of plants for manufacturing natural textile dyes. There is also a treasure of traditional knowledge on temple wall paintings and in colouring traditional mats, among the rural and tribal people, says P. Indira Devi, Director of Research.
The 12 natural dyes with five different mordants, of which three are natural, have been screened. All silk and cotton materials dyed with these pigments have been tested in SITRA (South Indian Textile Research Laboratory) for colour fastness to light and stability to washing. Through this analysis, combinations of natural dye and natural mordant with good stability have been identified, says V G Jayalakshmi, Principal Investigator.
As a part of a special industrial package Punjab-based knitwear industry has protested against the Centre’s decision to give tax exemption to hill states of Jammu & Kashmir, Uttarakhand and Himachal Pradesh under GST. Knitwear Club Chairman Vinod Thapar as well as Knitwear & Textile Club General Secretary Charanjiv Singh have written to the two union ministers from Punjab, stating the 12 to 28 per cent GST rate on knitwear products has proved to be a big blow to the Punjab-based knitwear industry due to which it has reached a stage of bankruptcy and also caused loss to the state’s exchequer.
They also stated thousands of units in the small-scale and cottage sector are on the brink of closure, as a direct result of excluding Punjab's knitwear industry from the special package given to the Himalayan states. According to them even though the hill states were already enjoying tax exemption, the tax holiday under the GST regime will give the local industry in Punjab a reason to move to the hill states.
They added since both ministers are part of the Union government, they are expected to protect the interests of Punjab's knitwear industry. Also, as the BJP and the Akali Dal are major political stakeholders in Punjab, it becomes obligatory upon both ministers to fight effectively for the interests of the Punjab-based industry.
Li & Fung has entered a joint venture with a Hong Kong-based knitwear exporter South Ocean Knitters Holdings. Dubbed Cobalt Fashion Holding and worth roughly $700 million, the JV will merge the operations and resources of Li & Fung’s sweater vertical with South Ocean’s knitwear business to become one of the world’s largest knitwear suppliers.
It combines the strengths of South Ocean’s yarn development and manufacturing knowhow with Li & Fung’s product design and supply chain innovation. The total turnover of the JV is about $700 million. The JV will service brands and retailers at all price levels and in all segments, covering the US, UK, Europe, Japan and other Asian markets.
Li & Fung Group chairman William Fung says the company is excited as it does have a long history and solid track record, with a strong foundation of product innovation and expertise, given access to the world’s leading fashion brands and retailers, it has first-hand insight into how knitwear and its supply chain can be transformed to best suit today’s fast-changing apparel market.
Silas Chou, President and CEO, Novel Enterprises, the parent company of South Ocean, well known for building billion-dollar brands Tommy Hilfiger and Michael Kors, is confident that this partnership is an important milestone for the global knitwear industry. South Ocean is one of the most established knitwear companies in Asia with over 40 years of experience in supplying the world’s top brands and retailers with beautiful, functional and innovative knitwear, says Silas Chou.
Closing of the transaction, and establishment of the JV, will take place once the necessary regulatory approvals have been obtained, Li & Fung stated in a release.
Lenzing, Santoni, Tonello and Unitin will present DEN/IM 2.0 at Munich Fabric Start.
This is a new and improved collection of athleisure garments made with stretch indigo on seamless circular knitting machines.
DEN/IM 2.0 follows the August 2016 launch of DEN/IM, which initially touted knit denim as a viable alternative and competitor to traditional active wear bottoms.
The four companies have come together to tweak and enhance the concept. The updated collection emphasizes new elements like compression, ventilation, moisture control, thermal conductivity and body mapping.
Each knitted garment in the collection incorporates different combinations of fibers and knitted structures to create a unique cross-over concept.
Engineered ventilation areas, 3-D knitted structures and padded areas are strategically positioned on garments. Body mapping seamless sportswear consists of one piece of multiple knit structure fabric, which provides improved wear comfort by adjusting to personalized body heat exchanges. Tencel fibers help regulate body temperature and provide moisture wicking properties.
In an age where new innovations and interpretations drive the denim category, there is always something that emerges as a new way forward and DEN/IM 2.0 is presenting itself as that new evolution.
Stars in the denim supply chain will share their latest development in integrating performance benefits into the authentic denim world at Munich Fabric Start.
For Q2 Guess’ revenues increased five per cent, operating margin expanded 120 basis points and operating profit grew 49 per cent compared to last year’s second quarter. There were positive results in Europe and Asia, where revenues saw double-digit increase, as a result of new store openings, wholesale growth and positive comp sales. Trends in operating margins for these two regions expanded this quarter compared to last year.
Net earnings rose 30.4 per cent. Adjusted diluted earnings per share grew 26.7 per cent compared to last year. But retail revenue in America dropped 11.2 per cent. E-commerce sales and retail comp sales fell 10 per cent. However, America’s wholesale revenue grew 6.6 per cent.
European revenue grew 20.1 per cent. Retail comp sales, including e-commerce, grew five per cent. Meanwhile, Asia revenues grew 17.5 per cent. Retail comp sales including e-commerce grew seven per cent.
Guess has achieved meaningful cost reductions, especially in its supply chain. It’s accelerating reduction of its footprint in the US, which currently makes up less than 36 per cent of its global sales. It has significantly increased adjusted guidance for fiscal 2018 and is now expecting to grow top-line, adjusted operating margin and adjusted earnings per share compared to last year.
Cambodia has urged garment factory owners to invest in the latest technology and machinery to increase efficiency and become more competitive as the country shifts to higher value-added manufacturing. Exports of Cambodia’s garment and footwear sector continued to increase at 7.2 per cent in 2016 from 2015.
Cambodia’s garment and footwear industry is undergoing a transformation from producing cheap, labor-intensive products to higher value-added products. The country gets 100 per cent preference from Australia, New Zealand, Norway and Switzerland and 99 per cent preference from the EU under the ‘Everything But Arms’ clause.
The country wants the US to review its Generalised System of Preference for Duty-Free and Quota Free granted to the kingdom, as a less developed country, for its exports to have better preferential access to the North American market. It has requested the United States to offer duty free preference to some of Cambodia’s main commodities, including luggage, leather goods and other products.
Improvement of working conditions for factory workers was one of the main criteria set by the US when it came to giving preferential trade treatment. And Cambodia says it has performed well in improving the conditions of garment workers and workers are now paid decent salaries, allowing many families to get out of poverty.
"Just like corporates in steel and automotive industries, apparel companies are increasingly waking up to sustainability and doing their bit to go green. In line with this, Pratibha Syntex, Indore, is going to be the first company to release its sustainability report. Last year, Arvind, had produced its first ever sustainability report for the year FY 2013-14. Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo, also generated a sustainability report under its parent company Aditya Birla Fashion and Retail (ABFRL)."
Just like corporates in steel and automotive industries, apparel companies are increasingly waking up to sustainability and doing their bit to go green. In line with this, Pratibha Syntex, Indore, is going to be the first company to release its sustainability report. Last year, Arvind, had produced its first ever sustainability report for the year FY 2013-14. Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo, also generated a sustainability report under its parent company Aditya Birla Fashion and Retail (ABFRL).
Green initiatives
Pratibha Syntex, winner of GLASA award, is India’s first textile factory to achieve the ‘bluesign system partner’ status. It has decided to convert all its materials to 100 per cent sustainable products regardless of whether buyers take interest in them or not. Some of its key efforts to achieve this goal cover both environmental as well as social aspects like using zero discharge facility when its 100 per cent processed water is recycled with 93 per cent efficiency and is reused in the operations of the plant. Rain water harvesting in one of its facility makes its water positive. Under solar powered facility, electricity generated from solar panels constitutes 30 per cent of power consumption by the company. It has replaced its entire lighting system with LED lights which leads to significant amount of energy savings. Sameer Bhand, VP-Strategy & Sustainability of the company states that Pratibha’s focus is not just on bringing change but inducing overall transformation.
On similar lines, Devadas PM, AVP, Business Excellence, IE & Sustainability, Madura Fashion & Lifestyle, says the company is working on seven sustainability missions with targets identified and fixed for each mission. Like energy, it reduced purchase of grid electricity by 25 per cent through demand/waste reduction and achieved 14 per cent reduction in consumption by implementing the LED lights across all the factories. Very soon, 60 per cent of Madura plants’ energy consumption will comprise of solar energy.
Exporters’ initiatives
While large corporates are leading the pack, exporters are also doing their bit. A Sakthivel, Chairman, Poppys Knitwear, Tirupur, says the company uses 100 per cent BCI cotton and organic cotton yarn for its garment orders as required by buyers. It is first factory in Tirupur to initiate the green factory project. The company has fitted solar street lights, sewage treatment plants, servo motors in sewing machines, which consume less energy. Even more than 30 per cent of the normal tube lights have been replaced by LED lights. One more such company making commendable efforts is Raj Group, Panipat. The company has converted 40 per cent load of electricity by solar rooftops, converted pet-coke boilers to LPG and is running printing rotary machines totally through LPG plant. With rain water harvesting in place, the company is developing three big parks nearby its factory and has planted 500 trees in these parks for ensuring fresher, cleaner air.
Investments needed
But these efforts need substantial investments to gain sustainable status. Poppys Knitwear plans to spend approximately 2 per cent of its total budget on sustainability. It also envisions replacing remaining normal tube lights with LED lights, incorporate windmill power projects and solar panel roofings. Making it a core agenda of the organisation, for Pratibha Syntex, sustainability is not a programme with certain budget; it is in the company’s DNA and therefore its entire operation is very much aligned with it. Madura Fashion & Lifestyle has spent Rs3 crore till date and further plans to invest in solar installation at 4 of their facilities, rain water harvesting systems in 5 facilities and reduction of waste in all their activities. Raj Group is putting 500 KLD plant for ZLD, using recycled cotton, BCI cotton and GRS cotton in our products.
High input costs are resulting in the closure of a large number of textile mills in Pakistan engaged in making yarn and fabrics. The spinning industry is incurring heavy losses by supplying yarn below cost. The textile industry has been hit hard due to the high cost of energy, resulting in making Pakistan’s exports uncompetitive in the global market.
The industry now wants measures to be taken on an immediate basis to improve the efficiency and viability of the textile industry. These include: expeditious payment of long outstanding sales tax refunds and other refunds to address liquidity issue and check the large scale influx of imported yarn and fabrics in the country to save the domestic industry.
Pakistan has been facing a drastic decline in exports during the last four years. The country will encourage investment in the spinning and weaving sectors in such a manner that the maximum cotton can be converted into yarn and downstream products as it will facilitate farmers and the spinning industry while helping the whole textile chain and national economy in general.
Pakistan is helping the entire chain of textile sector to adopt and upgrade to new technology. Funds have been allotted to carry out research activities and bring about a qualitative improvement in industry-academia linkages.
Vietnam’s pact with the Eurasian Economic Union (EAEU) which took effect in October 2016 has enabled the country to access a market of 183 million people with a GDP of nearly $2.2 trillion. The union include: Russia, Belarus, Kazakhstan, Armenia and Kyrgystan.
Currently about 900 Vietnamese exporters are active in the EAEU market, with key exports including seafood, coffee, rubber, tea, rice, apparel, woodwork products and confectionery. From 2017, there has been a strong increase in Vietnam’s import of Russian food, coal, steel, paper products and chemicals, while healthy growth has been recorded for Vietnamese shipments of mobile phone components, apparel and farm produce to Russia.
In fact, Vietnam-Russia trade makes up 90 per cent of total trade revenue between the country and the EAEU, while trade between Vietnam and Belarus and Armenia in 2016 even recorded a decrease from 2015. The reason: Vietnam has a long-time trade partnership with Russia and an inadequate understanding about other EAEU markets.
So Vietnam-EAEU trade has fallen short of potential, staying at just over $3 billion on an annual average. Vietnamese enterprises have to study these markets and boost their product quality to maximize trade before the EAEU signs free trade agreements with more nations.
