FW
The European Union has granted Pakistan GSP Plus status till 2023. This enables Pakistan to increase exports of traditional and non-traditional products to EU member states. Pakistan and the EU share a strong bond in trade and investment. Pakistan sees the EU as an important trading bloc.
The EU accounted for 12.8 per cent of Pakistan’s total trade in 2015 and absorbed 23.7 per cent of Pakistan’s exports. More than 80 per cent of Pakistan’s exports to the EU consist of textile and clothing. Pakistan’s imports from the bloc mainly consist of machinery and transport equipment as well as chemicals.
Almost 72 per cent of Pakistan’s exports to the EU go to the UK, Germany, Spain, the Netherlands and Italy. Pakistan is looking forward to opportunities of market penetration in other countries like Greece, Slovenia and Ireland.
Pakistan wants to export agro-based processed foods in collaboration with European companies through joint ventures and transfer of technology. The GSP Plus status is monitored and reviewed every two years.
The enhanced trade preferences under GSP Plus are of particular importance to Pakistan’s textile and clothing industry. Over 70 per cent of EU imports from Pakistan are textiles and clothing.
It looks like knitwear manufacturers in Tirupur are not interested in raising capital through the equity market route. Perhaps, that is why SME-friendly dedicated trading platform Emerge has had no takers. Apparently small and medium enterprises fear loss of administrative control. Stigma relating to dilution of ownership and ignorance on the benefits of raising fund through an IPO is preventing Tirupur entrepreneurs from getting into stock market.
Emerge is an exclusive Initial Public Offering window which has been made available through the National Stock Exchange. Under Emerge, the minimum dilution of shares is only 25 per cent and hence owners or promoters can hold the majority stakes. Moreover the listing is aimed at enhancing the accounting practices and image of the company in the market and facilitating institutional lending easier at later stages.
Not a single SME manufacturer who has a registered office in Tirupur has been listed on the Emerge platform though it extends relaxed norms for an SME sector entrepreneur to make a stock market launch vis-à-vis the stringent norms in place for listing in the main board at the stock exchanges.
Equity market entry has not taken off yet in the Tirupur cluster. The IPO route of raising funds for expansion needs to get popularised in the cluster.
Sri Lanka’s largest export firm MAS Holdings is buying US-based apparel maker Acme-McCrary. With this acquisition MAS hopes to get a foothold in the western hemisphere and increase the degree of speed and flexibility with which it engages with its customers. Acme-McCrary produces tights, sheers and other seamless apparel. The company produces legwear and active wear for large US retailers. Acme-McCrary was the sole producer of the popular Spanx brand of hoses and is still engaged in product development for the brand. MAS had a small account of Spanx for a few years now.
MAS will expand Acme-McCrary’s manufacturing capacities and create at least 133 new jobs, while retaining the current jobs. MAS employs over 80,000 perople across over 45 facilities in 15 countries and exports products mainly to the US and Europe. The facilities include design offices, apparel and component manufacturing plants, and private industrial parks. MAS also provides technology solutions to the apparel and footwear industry.
The company has been working to integrate technology into clothing, partnering with startup companies in the Silicon Valley region of California and in New York in the fields of wearable technology and health and wellness.
Although the state government has announced compensation of Rs 30,800 per hectare to cotton farmers whose crop was devastated by pink bollworm attack, agriculture department officials have called the move an eyewash claiming the cotton growers are now unlikely to get even half of the promised compensation.
Agriculture Minister Pandurang Fundkar had announced a relief package for the calamity-hit farmers. The Maharashtra government estimates that 34.39 lakh hectares of the total 41 lakh-hectare area under cultivation in over 20 districts of the state, was affected by the bollworm pest. The package comprises insurance cover of Rs 8,000 per hectare, a compensation of Rs 6,800 per hectare under the National Disaster Response Fund (NDRF) and Rs 16,000 per hectare out of the recovery from the seed companies.
A senior official said, “The state has sought the Centre’s help for Rs 2,430 crore under the National Disaster Relief Fund (NDRF) but the Centre never approves 100 per cent of the demand. In that case, the state would not be able to compensate the farmers the contribution announced under the fund. It has also said it will give Rs 8,000 per hectare under insurance cover but most farmers may not be eligible for compensation as their first two pickings have registered excessive produce.’
Farmers are eligible for insurance only if the loss is for over 30 per cent of the total yield and there were many cases where farmers had produced over 70 per cent yield. Also, the recovery from seed companies under the Maharashtra Cotton Seeds Act, 2009, due to failure of seeds is difficult.
Uganda’s cotton has found favor with textile importers in Germany, Denmark and other European countries. Despite the unpredictable weather conditions that keep affecting yields, cotton prices have been on rise in Uganda. Increase in prices and the introduction of fast-yielding cotton variety, which takes four months as opposed to about seven earlier, is encouraging farmers to grow cotton.
Uganda's Vision 2040 highlights the importance of manufacturing and value addition in enabling the development of an export-led and an internationally competitive economy, which is able to spur growth. Almost 90 per cent of Uganda’s cotton is exported. Cotton production in Uganda is entirely rain-fed. The soil is highly fertile and therefore no fertilisers are used. Pest management is reliant on predatory black ants which are highly effective against most of the cotton pests. Pesticides, if applied, do not exceed two sprays on an average.
Uganda is the only country in the world that grows one variety of cotton, the long-stapled Bukalasa Pedigree Albar. The focus on one type ensures uniformity and easier quality control measures in producing lint and yarn. Currently, cotton is cultivated in about 1, 00,000 hectares.
In Uganda clothing and apparel manufacturing is still minimal and large quantities of fabrics and garments are imported.
Mother of Pearl, the sportswear-inspired brand founded in 2002 and Palmer Harding, the men’s and women’s shirt label founded in 2012 are the proud recipients of BFC/Vogue Fashion Fund 2017. For the first time in the history of this prestigious Fashion Fund, which awards £200,000 and provides mentoring to up to three British-based emerging designers with the potential for becoming global fashion forces, there are two recipients. Keeping in mind the adverse effects of Brexit, The organisation decided to ‘spread the benefit’ of the prize to two labels this year. Though this split is not something very new, the American counterpart of the benefit, CFDA/Vogue Fashion Fund has also done something like this, when it had three recipients, instead of two.
The fund aims to support British designers and businesses from start-ups to established brands with a focus on providing key expertise, and as a result has chosen to open up the prize money to be shared between up to three recipients, enabling the fund to benefit multiple designers at pivotal stages of growth and development.
Alexandra Shulman, Editor, British Vogue, has informed that the two recipients Mother of Pearl and Palmer Harding are very different in terms of the clothes they offer and the way they operate. But both these brands was able to convince the jury that they will be backing brands with strong potential who understood how they could grow and who had and exciting vision.
Tommaso Bruso has been appointed the new chief operating officer at Benetton. His task is to revamp Benetton’s labels and the group's franchising network. Bruso is currently in charge of the US unit of Italian clothing group Diesel. Before that he was Italian handbag brand Furla’s CEO for North America.
Benetton, based in Italy, saw a 1.2 per cent drop in 2015 sales. Famous in 1980s and 1990s for its colorful jumpers and controversial ad campaigns, Benetton failed to keep up with the rapid expansion of trendier rivals such as Zara, which woos clients with fast-changing, affordable collections inspired by catwalk fashion.
The company, which has 5,000 stores around the world, has embarked on a restructuring plan aimed at cutting down losses and retaking its place among the forefront of fashion brands.
India is Benetton’s biggest market outside Italy. The brand caters to the 18 to 35 age group but it also has different segments like young and trendy, young professionals, thriving middle class and loyalists between 35 and 45 years. As a brand, Benetton considers factors like environment and social responsibility very important. It aims to mobilise people to think, talk and act in ways that support the empowerment of women.
Bangladesh’s export earnings grew 3.97 per cent year-on-year from July to March period of current fiscal year. Garment shipments, which contribute nearly 82 per cent to total national exports, increased 2.39 per cent during July-March compared to the same period a year ago.
However, earnings from garment exports were 5.98 per cent lower than the July-March target. Apparel shipment went down due to various factors. Though the UK is the third largest export destination for Bangladesh, exports began declining because of Brexit. Garment shipments to the UK fell 5.19 per cent in the first half of fiscal 2016-17.
Similarly, apparel exports to the US, the single largest export destination for Bangladesh, declined because of a volatile economy after national elections. Jute and jute goods performed well in the July-March period, as exports grew 13.94 per cent. Shipments of leather and leather goods were up 8.41 per cent year-on-year. Furniture exports rose 18.21 per cent and pharmaceuticals 9.44 per cent.
Shipment of home textiles increased 4.68 per cent and plastic products 36.76 per cent, riding on the back of a ten per cent cash incentive on shipments.
"Gauging development trends of digital printing ink and nozzle helps end-users to seize the initiative. In view of this, there will be a number of sharing sessions on different themes at the oncoming Shanghai International Digital Printing Industry Exhibition from April 19 to 21. The intent is to have in-depth discussions on the development of digital printing ink and nozzle. In particular, the organizers have invited Dr Tim Philips, MD, IMI Europe, to speak on latest inkjet technology for textile digital printing at the technical lecture area of the exhibition hall on April 20th."
Gauging development trends of digital printing ink and nozzle helps end-users to seize the initiative. In view of this, there will be a number of sharing sessions on different themes at the oncoming Shanghai International Digital Printing Industry Exhibition from April 19 to 21. The intent is to have in-depth discussions on the development of digital printing ink and nozzle. In particular, the organizers have invited Dr Tim Philips, MD, IMI Europe, to speak on latest inkjet technology for textile digital printing at the technical lecture area of the exhibition hall on April 20th.
Discussing the nuances of digital printing
Dr Philips will focus on the world’s leading textile inkjet technology in digital printing and share a new generation of advanced film sprinklers, single pass high-speed printing machines and paint inks. Through technology, we can overcome different challenges in different circumstances. Also on the agenda is a discussion on how to open new opportunities through the technological advances brought by industry leaders.
As founder of Catenary Solutions and Managing Director of IMI Europe, Dr Philips has extensive experience in inkjet integration projects. He has worked at Xennia Technologies for eight years, a leading inkjet solution company acquired by Sensient in 2015. He founded Catenary Solutions in 2015 to bring more digital solution development and marketing knowledge to wider audience. As the managing director of IMI Europe, Dr Philips offers a wide range of courses, including inkjet studios, inkjet ink manufacturing and digital textile printing courses. The forum will be able to convey to the audience the most advanced inkjet technology and digital solutions in TPF2017.
Knowledge sharing on textiles inks
In textile ink usage, printing problem and filtering solution has always plagued users. The reason of the breakdown of textile digital printing is extremely complex, there are ink salting out, hydrolysis, reunion, filter fibre shedding and other conventional problems, and there are issues like compatibility, ink raw materials and other problems, even the inkjet filter selection and the installation are closely related with the print quality. The organizers have thus invited senior sales manager, Mr Chen Xincan in Hangzhou Kebaite Filtering Equipment, to share knowledge about filtering of textile inks with the TPF2017 audience.
At present, paint is the second largest pigment material behind dyes in textile industry. And in textile printing, paint printing has 80 per cent market share globally. In this context, Li Jianfa, International Marketing Director in China of National Glazed Group, will speak on ‘the application and case analysis of paint ink on digital printing.’ He will also share the composition of paint ink, coating process of coating ink and application of coating ink in blended and man-made fibres.
Industry’s authoritative ink and nozzle suppliers will be especially invited to attend the seminar presided over by Dr Philips, and give insights on latest technology. The audience will get the opportunity interact with industry experts and top brands and put forward the problems encountered in application.
Shanghai International Digital Printing Industry Exhibition
The 8th Shanghai International Digital Printing Industry Exhibition, hosted by UBM China and Shanghai Longyang, will be held at the Shanghai New International Expo Center for three consecutive days from April 19 to 21. The exhibition is expected to attract about 230 exhibitors who will lay out the latest and perfect digital printing machines and matching ink, nozzles, software and so on. Also on the agenda are numerous forums and one to one business negotiations. Wonderful not to be missed!
"Deploying inkjet technology into the textile industry is presenting an increasingly compelling opportunity for the print industry, recent research from Smithers Pira reveals this. Double digit growth across 2016-21 is making digital textile printing one of the most exciting market opportunity in the print and textile supply. It is creating new value-adding business opportunities for fabric printers and material suppliers, as the capabilities of the latest generation of digital textile presses dovetails with evolving priorities for end users, like fashion designers."
Deploying inkjet technology into the textile industry is presenting an increasingly compelling opportunity for the print industry, recent research from Smithers Pira reveals this. Double digit growth across 2016-21 is making digital textile printing one of the most exciting market opportunity in the print and textile supply. It is creating new value-adding business opportunities for fabric printers and material suppliers, as the capabilities of the latest generation of digital textile presses dovetails with evolving priorities for end users, like fashion designers.
A booming market
Exclusive data from the new Smithers Pira shows that in 2016 only 2.9 per cent of the overall market volume for printed textiles – 30 billion mt. sq. – is produced on such equipment. Digital print’s share has been increasing rapidly across this decade, however, with total volume rising from 461 million mt. sq. in 2012 to 870 million mt. sq. in 2016. This will push through the 1 billion mark in 2017, and in 2021 will constitute 1.95 billion mt. sq. of fabric – more than four times the volume in 2012.
This rapid expansion is translating into rising revenues – from €592 million in 2012 to €1.17 billion in 2016. Smithers Pira’s extensive research and analysis forecasts that this will grow at a year on year rate of 15.7 per cent for the next five years, reaching €2.42 billion in 2021. This is in contrast to the average growth for all printed textiles – which remains principally on screen presses – of around 3 per cent.
With double-digit annual growth across the board, major printhead developers, ink formulators and press builders are increasingly looking to capitalise on this market. This is especially true as some conventional analogue markets record static or even declining revenues through to the end of the decade. This is simultaneously fuelling both business consolidation and technology evolution. As this occurs, it is having an increasing impact on the global textile supply chain and ordering models.
With conventional markets under threat global print firms are seeing digital textile print as an attractive location to invest in. One strategic means to do this is through acquisition of smaller specialist technology developers. These are typically based in the Como region of Italy, which has developed this expertise to meet the demands of fashion industry centred on nearby Milan. US-based EFI made its own acquisition in July 2015, buying up Bergamo-based Reggiani. The first fruit of this – a joint-engineered printer – was shown in June at Drupa 2016.
Fashion industry trends
As in other print segments digital’s potential is founded on its ability to produce single, short and custom runs more economically and with a much faster turnaround than conventional screen printers. These advantages are important in signage – where digital print penetration is deepest – and fashion. Haute couture and high street fashion demand for digital print is worth €190 million in 2016 and will exceed €420 million in 2021. This is being aided by the fashion industry’s shift towards multiple mini-seasons within one traditional season. This favours digital as it translates into more new designs, and multiple repeat runs of short orders. This customisation potential is now being seen in the home décor segment with bespoke interior furnishings.
Another means to produce unique designs for a customer, is to overprint details onto screen printed textile stock. The need for quick turnaround on such orders also favours relocating textile print to areas like Europe, from lower labour cost regions like the Indian sub-continent. This so-called ‘reshoring’ trend further helped by the current political instability in Turkey, has developed its own regional hub feeding European demand. Sportswear is another key segment that is growing strongly, helped by an increasing interest in high-grade athletic wear from amateur sportsmen and sportswomen, such as cyclists.
Sustainability to the fore
A final motivator for the brands using digital print is the process’s superior environmental profile. Inkjet jobs can consume as little as 20 litres of water per kg of printed substrate – for cotton this can be as much as 10,000 litres per kg, a factor of 10 is the difference quoted most often. Furthermore, polyester and polyester blends used in many digital textile applications are recyclable. Advocates in this area are now coalescing into organisations like the Better Cotton Initiative (BCI), and the Textiles 3.0 consortium.
