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Nigerian exporters have come together to form a fashion training facility. The center has over 150 sewing machines, pattern making and cutting tables. It has the primary objective of promoting garment making skills, creating job opportunities and upgrading technical skills to improve quality, productivity and efficiency levels in the garment industry.
The purpose of the center is to build capacity of Nigerian garment producers in apparel production for the local and export market. Nigeria is awash with creative talents in the fashion industry, whose designs can compete anywhere globally. However, there is a wide gap in production and finishing, which affects the marketability of garments made in Nigeria.
Capacity utilisation in Nigeria’s textile and apparel sector has increased from 29.10 per cent in 2010 to 49.7 per cent in 2011 and is currently 50.2 per cent. The industry is dominated by foreigners, though it harbors various classes of players, individual investors, partnerships and government involvement in the industry. Mills are of all sizes. They have been set up by players from Hong Kong, India, UK, China, Japan and even Colombia.
Nigeria’s textile and apparel industry covers the entire clothing value chain, and has a strong potential for growth due to availability of cotton and the country’s large market-size represented by over 170 million inhabitants, who provide a natural market for textiles and apparels.
Industrialists and investors attending the groundbreaking-cum-inauguration ceremony of 24 industrial units in the state on Thursday by Chief Minister Raghubar Das have posed complete faith in government’s changed pro-investor approach for renewed industrial development in last two years. Textile major Orient Craft Chairman Sudhir Dhingra appeared moving a step further to claim that the State was having all the potential to leave Bangladesh behind and become top textile exporter in the world.
This is a historical day for garment industry in the State. The CM had expressed worries during a meeting with him in July last year over migration of unemployed young men, women and even teens to different parts of country in search of jobs and used to get ill-employed there. This is why the industry is coming up with huge garment production unit with employment capacity of over 15,000 in next six months.
He further added that the garment sector was among the quickest employment generating industries as it required only a maximum of 90 days to provide basic training to someone and make him worth employable in this industry. All the garment sector companies coming to the State carry a history and reputation of their own, and I strongly believe that we can change the fate of sector and people of State with support of the government, says Dhingra.
Ranjan Medicant Super Specialty Hospital Managing Director also confirmed changed industrial scenario in the State and said that the government had done wonderful job in attracting the investment whose trust is setting up a 500-bed super specialty hospital in Bokaro.
Footwear company SKF manufacturer promoter Aftab Alam, Kaveri Agri Warehousing (India) Managing Director G Suman Rao and other investors also posed faith in the way Government machinery had been functioning relentlessly to take MoUs done during Global Investors Summit (GIS) on February this year forward.
The textile industry has been urging the central government to decide a uniform Goods and Services Tax (GST) rate of 5 per cent for items across the textile value chain. The council is expected to reach a consensus regarding the tax structure during the two-day meeting chaired by Union finance minister Arun Jaitley, which is currently underway in Srinagar.
Over 20 textile associations led by the Southern India Mills' Association (SIMA) had recently issued a joint memorandum to the Union textiles minister Smriti Irani. A uniform levy of 5 per cent GST on all textiles and clothing products would ensure smooth migration of entire textile value chain from the present tax structure to GST tax structure with full compliance, creating win-win strategy for all the stakeholders and would bring substantial revenue to the exchequer when compared to the existing revenue.
Sriramulu Balakrishnan, MD, KG Denim pointed out saying that currently, fabrics do not attract excise duty or sales tax. Post-GST, the textiles industry expects that it should be nil rate of tax or be minimum. Representations have been made to the ministry of textiles by TEXPROCIL. Branded apparel is subject to both excise duty and sales tax.
Vikram Mahaldar, VP and global sales head of OCM believes that after the GST is imposed, mills and buyers will have to pay extra money for fabrics made from natural fibre, as they are exempt from any taxes in most part of the country. This may lead to short term decline in demand till channel stocks last, and until customers accept the change.
As for the e-commerce sector, it is likely to bring in greater convenience as GST promises standardisation for online marketplaces. "The 'one tax, one market' concept on which GST is based is expected to be a big welcome step and promising standardisation for online marketplaces to make e-commerce convenient. Jimmy Kaul, MD and co-founder of Shopotox commented on this saying that he believes that once GST comes into full effect, e-commerce sector would be structured well and the way forward will be easier.
India’s exports for April 2017 jumped nearly 20 per cent in dollar terms over exports during April 2016. This is particularly heartening when export figures were showing a decline over the last 24 months.
Medium and small scale exporters have a near 40 per cent share in total merchandise exports. These exporters have a leading role in exports of readymade garments, leather and footwear and gems and jewelry, which are important contributors in India’s export basket.
Exports from India have gone down in secular terms from 2013 to 2016 and between 2014 and 2016 the drop in exports was more than 17 per cent in dollar terms. Exports of readymade garments have nearly stagnated between 2015 and 2016.
For leather and leather products, another sector dominated by small and medium enterprises, there was a drop in exports during the last two calendar years. The story is identical for labor intensive small and medium sector of gems and jewelry which has a 15 per cent share in India’s export basket.
An increase in credit offtake is a natural corollary to the growth in any economic activities as enterprises, particularly small and medium enterprises, cannot maintain a cash chest ready for use for increasing manufacturing as per market demand.
Bangladesh has called for US investment in high-end garment sector during the third round of talks under the Trade and Investment Cooperation Forum Agreement (Ticfa). The issue of Bangladeshi garments attracting high duty in the US markets was also raised. However, a US reinstatement of GSP privileges to Bangladesh was not discussed in the meeting.
Bangladesh acting commerce secretary said they have not discussed the GSP issue at the post-meeting briefing in Dhaka. However, Bangladesh raised the issue of high duty on its garment shipments to the US. Readymade garments from Bangladesh currently attract 15.62 per cent duty while entering the US, which reduces competitiveness of these products in the US market.
Bangladesh has sought US investment in some sectors, including the high-end garment sector, telecom and energy sectors. Fair prices of goods, technology transfer and infrastructure development were also discussed in the meeting.
“Both governments pledged their commitment to deepen their engagement and increase their trade and economic ties. The United States particularly noted its interest in addressing specific market access barriers to trade and concerns on overall labour reform,” the US Embassy in Dhaka said in a press release. In 2016, the two-way trade between Bangladesh and the US was $6.8 billion.
Adidas has seen a spurt in sales by 16 per cent in the first quarter of 2017 in comparison to the same period last year. The company’s operating profit increased 29 per cent during the first quarter. As a result, the operating margin improved 0.9 percentage points to 11.1 per cent. However, its gross margin decreased 0.2 percentage points to 49.2 per cent as against 49.4 per cent for the same period in the previous year.
For 2017, Adidas expects sales to increase at a rate between 11 per cent and 13 per cent driven by double-digit growth in Western Europe, North America and Greater China. Gross margin is forecast to increase up to 0.5 percentage points to a level of up to 49.1 per cent. Gross margin will mainly benefit from the positive effects of an improved pricing, product and regional mix as well as further enhancements in the company’s channel mix.
Operating margin is forecast to improve between 0.6 and 0.8 percentage points to a level between 8.3 per cent and 8.5 per cent, reflecting the projected gross margin improvement as well as an expected decline in other operating expenses as a percentage of sales. As a result, operating profit is expected to grow between 18 per cent and 20 per cent.
Max Mara and Woolmark have developed an innovative wool denim line. Max Mara has always chosen Merino wool as the fiber of excellence for its collections and this season pushed the boundaries on traditional uses of wool - such as fine tailoring, heavy coats and knitwear - to showcase a different approach for the fiber and celebrate its innate versatility.
The brand has utilised innovative 100 per cent wool denim fabrics that replicate the look and style of traditional denim - retaining the traditional 3/1 weave, but have added benefits thanks to the natural qualities of merino wool, including increased softness, warmth and resistance to wrinkles.
The twisted, strong wool yarns have been dyed with ecological dyes to imitate natural indigo and have been tested against the stringent guidelines to gain the Woolmark certification.
Merino wool is a luxurious, natural fiber and Max Mara’s latest autumn/winter collection highlights wool’s modernity and global relevance in high-end fashion. Woolmark has provided Max Mara in-depth training and education on the natural benefits and innate versatility of merino wool. The two brands have planned a global road show that will cover Milan, Moscow, London, Sydney and Beijing.
Woolmark is the global authority on wool.
The largest US retail associations called on new Trade Representative Robert Lighthizer to support the North American FTA aiming to salvage an accord that has come under fire from his boss. Leaders of the American Apparel and Footwear Association, the National Retail Federation, Retail Industry Leaders Association and US Fashion Industry Association sent a letter to Lighthizer on urging him to tread lightly on the 23-year-old pact.
Lighthizer was sworn in, clearing the way for the administration to seek an overhaul of NAFTA. President Donald Trump called the treaty a “disaster” during the election campaign and has threatened to withdraw from the agreement with Mexico and Canada if renegotiated terms aren’t favorable enough.
In a draft letter circulated in March that laid out its goals, the administration told lawmakers it wanted to strengthen the US manufacturing base and “level the playing field” with its NAFTA trading partners on tax treatment. Retailers, which rely heavily on imports, have opposed any changes that would tax imports at a higher rate.
Steve Lamar, Executive VP of the AAFA, in an earlier interview had said the company’s approach is if you look across the textile, apparel and footwear industry, there’s a broad consensus that NAFTA works that it creates jobs that supports workers and communities on both sides of the border.
Jonathan Gold, VP of supply-chain and customs policy at the NRF pointed out saying the ultimate concern for the business community at large is failure to come to a deal that ends in the US pulling out of NAFTA. An imperiled NAFTA comes during a challenging time for apparel retailers. Falling prices, increased competition and a lack of style trends have made it harder for clothing companies to maintain sales and profit.
If the trade deal changes, apparel trade groups say the industry could be faced with rising costs and another blow to its already-fragile profit margins. Mexico is the largest Latin American supplier of apparel products to the US and the fifth-biggest worldwide behind countries like China and Vietnam according to the US department of commerce.
The next edition of ITMA will be held from June 20 to 26, 2019 in Spain. This is the world's largest textile and garment technology exhibition. Held every four years since 1951, it showcases the entire textile and garment making manufacturing chain as well as raw materials.
A core value of ITMA is to be relevant to the textile and garment making industry and end-users. As such, it is always exploring new ways to reinvent and to make its platform vital to all stakeholders by offering an integrated sourcing experience. During every ITMA, manufacturers are able to have meaningful discussions with their partners and customers on innovative ideas that offer users a competitive advantage.
Due to the favorable response received from fiber and yarn exhibitors and visitors at the last two ITMA shows, ITMA 2019 will include woven, nonwoven and knitted fabrics in the fiber and yarn exhibit sector. In addition, digital and screen printing inks have been classified in the printing chapter. This will allow ink producers to be in the same hall as printing machinery manufacturers so that visitors can easily source technology and consumables. A new service introduced for the benefit of machinery buyers is leasing and financing services.
Over the years, the exhibition show profile has evolved in keeping with industry trends and challenges. It now features the entire textile and garment making production chain, including raw materials.
"India’s textile and clothing industry is looking to push up exports to Japan. And in line with this the government is looking to help the Indian textile trade and industry for better understanding of quality culture in Japan. The aim is to meet Japanese quality standards in order to boost exports. The Indian government signing a MoU with Japan Textile Products Quality and Technology Centre (QTEC) to establish and encourage both quality compliance activities jointly and organize collaborative ‘Industry Capacity Building Programme’."
India’s textile and clothing industry is looking to push up exports to Japan. And in line with this the government is looking to help the Indian textile trade and industry for better understanding of quality culture in Japan. The aim is to meet Japanese quality standards in order to boost exports. The Indian government signing a MoU with Japan Textile Products Quality and Technology Centre (QTEC) to establish and encourage both quality compliance activities jointly and organize collaborative ‘Industry Capacity Building Programme’. In line with this, one-day workshops, across nine major textile centres spread across India are being organised. New Delhi hosted one ICBP meet on May 17.
Focus on trade, meeting Japan’s standards
Subrata Gupta, Joint Secretary, Ministry of Textiles was the guest of honouur. In his address Gupta spoke on Japan’s quality consciousness and said India’s manufacturing capacity is enormous but exports to Japan are minimal in textiles. He further said by changing mindset companies can match up op Japanese quality requirements and enhance the quantum of textiles exports.
Vijay Mathur, Additional Secretary General, AEPC, in his special address, presented a case study of Neetee Clothing, Gurgaon, who had successfully met both quality and process requirements of Japanese market.
In this inaugural speech, Ajit B Chavan, Secretary, Textiles Committee, gave a brief introduction on the background of the program. He said India is a major global textile economy with textile exports worth $40 billion. India ranks 4th and 5th among the top 10 textiles and clothing exporting countries respectively. India’s top exports destinations are Europe and the US with total exports touching $16.78 billion in 2016. Japan on the other hand is a major textile importing country with 97 per cent of its textiles being sourced through imports mainly from China (62.11 per cent) followed by Vietnam (10.56 per cent), Indonesia (4.12 per cent) and Bangladesh (2.76 per cent). While India’s exports to Japan were a mere $429.4 million, amounting to 1.24 per cent share.
The reason for low exports to Japan is lack of awareness about Japanese textile quality requirements among Indian textile manufactures. And the MoU was signed between Textiles Committee, India and Japan Textile Products Quality and Technology Centre (QTEC), in November 2016 to look into this issue. The MoU is expected to herald a new beginning in international trade of textile and clothing between India and Japan.
Speaking about the importance of quality in international trade, Kartikay Dhanda, Director, Textiles Committee said trade and industry appreciated the initiative taken by the Indian government and the Textile Committee which will bring in sizeable difference in business.
Toshiki Tasaka, Director, Overseas Coordination Department, QTEC, Kei Funaki, ASEAN and South Asia Regional Manager, Overseas Coordination Department, QTEC spoke on the difference of quality requirements between western buyers’; ‘quality and compliance in Japan and JIS Overview’; and ‘banned substance in Japanese Market’.
The Textiles Committee of India serves textile trade and industry by providing various services including testing, inspection, market research, total quality management and more. With 28 offices and 19 state of art laboratories it has a nationwide network in all major textiles centers of India.
On similar lines, Japan’s QTEC has been providing world class facilities to Japan’s textile industry for quality evaluation, standardization, technology evaluation, conformity assessment, technical guidance and education, factory certification.
