FW
Bangladesh will continue to enjoy duty-free and quota-free access to the European market under the Everything But Arms (EBA) regime. Bangladesh earned $18.68 billion from its exports to EU in 2015-16, which was 54.57 per cent of the total receipts for the fiscal year. Of the $18.68 billion, $17.15 billion was from apparel shipments alone. Once Bangladesh becomes a middle-income country, it can hope for GSP Plus.
Access to GSP Plus isn’t an automatic process. But in practical terms GSP Plus is almost the same as GSP under EBA. There will be little difference in terms of access to the EU market.
Bangladesh will not lose the GSP benefit under EBA the day it becomes a middle-income country but will enjoy the duty-free and quota-free benefit for three years during the transition period.
Meanwhile the country is aligning itself with international labor conventions like establishing trade unions and allowing trade unions to operate freely and respecting international conventions on human and labor rights and environmental protection and good governance.
Also, the country must not have formulated reservations which are prohibited by these conventions and the monitoring bodies under those conventions must not have identified any serious failure to effectively implement them.
Munich Fabric Start will be held in Germany from September 5 to 7, 2017. This is an international fabric trade fair and a leading textile trade fairs for fashion and garment industry in Europe. The portfolio covers: women’s wear, men’s wear, children’s wear, denim, street wear and sportswear.
Trending colors, patterns, prints, materials and accessories of the coming season will be shown. From ultra-light materials to high-tech coatings and ready-to-wear fabrics and collections, an extensive product range of fashionable textiles as well as the complete range of suppliers for ribbons, buttons and labels is presented. The fair is accompanied by an extensive program of lectures, panel discussions as well as fashion shows and presentations.
Stability, reliability and continuity are among the reasons for Munich Fabric Start’s steady growth. The show earlier this year, January 31 to February 2, communicated great energy to visitors and insiders with a series of seminars and events and a pool of innovative ideas and products. The Bluezone area - with refreshed trend areas and booths – registered a lively attendance. The Catalyst and Keyhouse – confirming their focus on high-quality manufacturers, mostly from Europe – also attracted attention from denim and fashion insiders.
In volume terms the European Union’s apparel imports from January to May ’17 fell 1.05 per cent. This includes a drop by 0.78 per cent in knitwear and 1.39 per cent in wovens. In value terms, EU’s apparel imports surged 1.03 per cent. The knitted segment saw a rise of 1.85 per cent whereas the woven segment was up by 0.28 per cent. The rise shows the EU is spending more value on the imported products. During the same period, unit value realisation was up 2.09 per cent against the same period last year. This shows prices are rising.
Clothing demand in the EU is declining continuously. Consumer trends are shifting from store purchases to digital shopping. Major apparel exporters including China, India and Bangladesh were down in their volume-wise apparel exports to the EU. The countries’ exports tumbled by 1.18 per cent, 1.22 per cent and 0.17 per cent respectively.
Amid falling exports, Bangladesh still witnessed an increase in the exported value by 4.25 per cent during the period. The weak euro for the second largest apparel exporter in the world proved to be the main factor behind the rising export value.
Though Bangladesh has been open to global and local improvement initiatives and has actively participated and helped them, the government is now under pressure to allow trade unions in factories inside and outside the ‘Export Processing Zones’. The body of European buyers Accord has unilaterally increased the tenure of its function in Bangladesh. Meanwhile Alliance has informed they have no intention to stay further after the end of its current term by 2018.
Recently the Foreign Trade Association (FTA) based in Brussels, issued a letter to Bangladesh urging the country to cooperate with international bodies such as the European Union (EU) and the International Labour Organisation (ILO) to resolving the outstanding labor problems in textile sector more specifically in RMG sector.
Faruque Hasan, Senior Vice President, Bangladesh Garment Manufacturer & Export Association (BGMEA) and Managing Director of Giant Group says Accord can’t impose their unethical decision on a sovereign country. On the other hand the EU has warned Bangladesh they might risk losing trade performances granted under the EU’s Everything But Arms initiative if it did not address standing issues. It has increasingly pressure on Bangladesh to do more to align national laws and practice ILO recommendations. Many others urged for an effective initiative to be led by Bangladesh government as if the country has its own control on its industry. Recently BGMEA drafted the outline of such a platform called ‘Shonman’ (respect). The platform will be run by the Prime Minister’s office. Its steering committee will comprise representatives from BGMEA, BKMEA, ILO, brands, trade unions and corresponding ministries. Insiders expect that an effective platform would take charge of all regulations and requirements and there will be harmony on that and there will no ambiguity and duplication in system of governance.
In the meantime, an FTA Round Table is also scheduled for mid-November which will look at the labor issues in Bangladesh FTA has offered its support to both the EU and Bangladesh in facilitating dialogue on the outstanding issues with the hope of arriving to a positive result for all actors involved.
Bangladesh wants to boost exports to Asia. Removing non-tariff barriers, signing trade-friendly bilateral agreements and proper use of preferential trade deals can boost Bangladesh’s exports to the region. Bangladesh’s exports to Asian countries in fiscal 2016-17 were 12 per cent of its total exports. At the same time European Union imported 55.83 per cent of Bangladesh’s total exports and the United States 21.19 per cent.
For a developing country, Bangladesh has made remarkable progress as an exporter of manufactured goods, especially readymade garments, but it’s highly reliant on the markets of developed countries.
Since there is an economic meltdown in traditional export destinations like Europe and the US, Bangladesh will have to find new markets. Grabbing more Asian markets can help reduce dependency on developed countries. With similarities in culture and taste, the markets of some Asian nations can help Bangladesh boost its export sector. Asia’s population is 59.6 per cent of the global total.
Bangladeshi apparel products are sold in China, Japan, Indonesia and some other countries, but not all of that is exported directly. International buyers import from Bangladesh and then sell the products in these countries. Bangladesh hopes to do more exports to the Japanese and other South Asian markets in the near future.
AM Silk is an industrial supplier of synthetic silk biopolymers. It has made a breakthrough with bioengineered spider silk, a new material which is will open new possibilities for applications throughout the medical, cosmetic and textile industries.
The synthetic silk an highly innovative product, has the potential to disrupt industries and provide substantial added value for AM Silk’s partners. The company has achieved what was long regarded as impossible: to learn from nature and produce spider silk artificially. Now it is possible to produce incredibly robust, skin friendly and at the same time environmentally friendly clothes.
Based in Germany, AM Silk is the first industrial supplier of synthetic silk biopolymers. Sustainably produced using a patented biotechnological process, AM Silk high performance biopolymers can be used in multiple ways including in medical or technical products as well as cosmetic ingredients. Among other things, the polymers are biocompatible, breathable and especially robust.
AM Silk’s high performance biopolymers are distributed in the form of Silkbeads (microparticles), Silkgel (hydrogel) or Biosteel fibers. They are currently used in coatings for medical technology products, in the textiles industry and as an ingredient in cosmetic products.
The company was chosen by the German edition of MIT Technology Review as one of the 50 most innovative companies in the world.
"Licensing has been finding increased importance in fashion fraternity these days. Same has been captured by a recent Euromonitor study, ‘Global Licensing Trends in Adult Fashion’. Licensing has spread across all aspects of the apparel and footwear business and across all demographics, ages and regions. As fast fashion and athleisure drive growth, fashion house and character collaborations reach new heights. While adult fashion is diverse in terms of licensing types, character is still one of the biggest licensing types in the industry."
Licensing has been finding increased importance in fashion fraternity these days. Same has been captured by a recent Euromonitor study, ‘Global Licensing Trends in Adult Fashion’. Licensing has spread across all aspects of the apparel and footwear business and across all demographics, ages and regions. As fast fashion and athleisure drive growth, fashion house and character collaborations reach new heights. While adult fashion is diverse in terms of licensing types, character is still one of the biggest licensing types in the industry. Adult-targeted classic characters’ appeal benefits from a nostalgia factor, and even some child-orientated franchises are marketed secondarily to adults by creating a ‘cool’ factor around them.
Fast fashion players such as Primark and H&M are highly active in licensing world. Direct-to-retail has enabled Primark to offer trendy DC Comics and Harry Potter licensed merchandise at very low prices, which it would not have been able to do otherwise. It is the largest retailer partner for Harry Potter themed products, while other collections also include Star Wars, Minions, Looney Tunes and Family Guy. In 2016, Primark was Western Europe’s third largest apparel brand, up from fourth place in 2013.
Athleisure defining trend of the decade
Athleisure is fuelled by consumers’ growing desire to prioritise wellbeing. The relaxation of dress codes has also played a huge role in its rise. Sportswear’s growth has intensified in recent years, recording a CAGR of 6 per cent over 2011-2016, compared to 4 per cent for apparel and footwear overall. The trend filters into licensed adult fashion. In April 2017, Warner Bros Consumer Products, the world’s fifth biggest licensor, partnered Her Universe for a range of superhero-themed women’s activewear. Sportswear has been identified by the industry as a key growth area for licensed adult fashion in coming years.
Character licensing
In womenswear, franchises increasingly target leading fashion shows. Disney, the world’s biggest licensor by far, has been very active in creating a larger space for its Minnie Mouse licence in fashion. In menswear, while Star Wars fever continues to be felt with new licensed fashion collections by Columbia Sportswear and Selfridges, Fun.com brought much needed excitement to formal and winter-wear thanks to its partnership with Marvel and DC Comics, launching an exclusive range in November 2016.
Untapped categories
Apart from this, there are various different categories that are still untapped. Categories, including suits and jeans could potentially offer good opportunities for expansion and growth. Licensing businesses need to be more creative, thinking outside the box and not limiting their merchandise just to tops and t-shirts. In categories that are not traditionally associated with licensing, subtle details could be used in a garment, allowing fans to connect with their favourite characters and franchises.
Partnerships between designers and character franchises are expected to continue, as these properties increasingly use designers’ credibility to enter and expand into adult fashion, reports Euromonitor.
Germany has plans for an environment friendly and fair textile economy. Some of the benchmarks are social standards and the avoidance of toxic chemicals. To begin with, 50 per cent of manufactured textiles have to be sustainable as of 2020, from raw material to manufacture and to the final product. The government will assist firms to fulfill human rights in due diligence and support incentives to invest in sustainable production of textiles.
Concrete enhancements will be seen along the textile supply chain from sustainable water management in cotton fields to fire protection measures in textile mills to fair compensation for sewers. A long history of manufacturing, innovation and flexibility has made the textile and clothing industry in Germany one of the most important sectors in the country.
Textiles and clothing are the second largest consumer goods market after the food and beverage industry. Germany is a major player in foreign trade with textiles and clothing. The country is the fourth largest exporter of textiles and clothing worldwide. The country is also the second largest textile importer after the United States and especially in the clothing segment imports a vast majority of apparel products, thus offering an appealing opportunity for foreign companies.
China and the Institute of Scrap Recycling Industries (ISRI) are at odds over textile waste. China wants to ban import of textile waste, saying to avoid pollution. But ISRI feels the ban will damage recycling potential of the textile industry and would have a negative impact on textile recycling industries in the US and China. ISRI also says the ban would impact the Chinese textile industry, as it relies on recyclable imports both financially and as part of textile companies’ sustainability projects.
China accounts for more than half of the world’s fiber imports. While ISRI supports China’s efforts to improve environmental protection and standards within its domestic recycling infrastructure, it disagrees that a ban on the import of specification‐grade scrap materials will help those efforts. ISRI feels there is a need to distinguish scrap from waste.
The global textile industry waste management market is projected to grow at a CAGR of close to 11 per cent over 2017 to 2021. The market is characterized by many well-diversified players competing intensely with one another. Global players increase their footprint in the market with their huge infrastructure and R&D support, and regional vendors are mainly restricted to developing economies.
German outdoor clothing brand Vaude has announced it will be extending its ‘Environmental Stewardship in the Supply Chain’ initiative to all its textile suppliers. Over the last two years the project has saved firms over $58,000 each says Vaude. At present Vaude rolls out the project to 100 per cent of its material suppliers as compared to previously where the project covered 80 per cent of the primary materials and lining fabrics used in the company’s products. Earlier this year, Ecotextile News reported on end of the project, after Vaude announced its success in Asia.
Vaude says the project has made mass energy savings after introducing measures to shut down hydraulic pumps when not in use, using energy from solar panels, and modernising defunct systems. Participating factories saw the introduction of professional chemical management systems, which automated storage, transportation and disposal of chemicals. The Federal Ministry for Economic Cooperation and Development will continue to promote and support the project when Vaude extends the project to all of its material suppliers.
