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The second edition of Denimsandjeans Trade Show will be back in Vietnam’s capital Ho Chi Minh City on June 7 and 8, 2017. It will bring together leading denim jeans and fabric companies besides chemical, accessory and other suppliers in the denim supply chain under one platform.
Over 50 companies from Vietnam, China, Indonesia, Hong Kong, India, Pakistan, Bangladesh, Brazil, Italy, Switzerland, Japan, Thailand, Taiwan and some other countries are expected to participate in the show. The theme of the show is ‘Street Style’. It seeks to highlight the importance that denim holds in the realms of street play. The trend area, the booths and the whole look of the show would reflect the importance of denim clothing in street wear styling.
Vietnam is the fastest growing apparel exporting country in the world. The country exported apparel and textiles worth $27 billion in 2016 and is expected to grow to $30 billion by the end of 2017. Upcoming free trade agreements with Europe and other regions are expected to boost apparel exports from Vietnam.
For 2017, Vietnam’s textile and garment sector aims for a growth rate of seven or eight per cent. The US and Japan are the two main export markets of Vietnam’s garments and textiles.
One of the factors that have driven Bangladesh’s textile and garment industry over recent years is the growing foreign direct investment in the industry. The country’s cheap labor, preferential location in the heart of Asia-Pacific and government support are some positive reasons.
Foreign direct investment in Bangladesh’s textile and garment industry increased by 11 per cent in 2016 compared to the previous year. South Korea was the largest investor in fiscal year 2016. South Korean apparel companies share was over 32 per cent in total FDI followed by Hong Kong. FDI from the United States stood at a modest $33.02 million.
An increasing number of international investors and famous fashion brands, such as Zara, H&M, Gap and Levi’s, are manufacturing and importing clothes from Bangladesh. Bangladesh is the world’s second largest garment exporter and is expected to export over $50 billion worth of garments by 2021.
The South Asian country also enjoys tariff-free market access in EU, Canada, Australia and some other major textile and garment markets in the world. In order to further increase FDI in the sector, Bangladesh is promoting investment opportunities not only in the textile sector but in the allied energy and infrastructure sectors that will help boost volumes in the textile trade.
Japan-based company Adastria has bought Velvet, an US-based apparel company. Adastria operates 21 brands and has a strong expertise in retail operations with more than 1,400 retail stores and e-commerce operations throughout Japan and Asia.
Velvet is known for the brand Velvet by Graham and Spencer. It is known for its modern, sophisticated staples with a laidback California attitude, both for women and men. Velvet has eight retail stores in the US, with a strong market presence through premium department stores and high-end specialty stores both in the US and abroad.
The acquisition allows Adastria to establish a strategic presence in North America, in the world of contemporary fashion. Adastria has a successful track record growing brands and businesses by leveraging its strong value chain management and brand management strategy. By working with Velvet’s management team, the company hopes to accelerate growth, especially in the direct-to consumer channels as it apply its expertise in retail and value-chain management.
Velvet is the second investment for Adastria in the US market. In April 2016, Adastria acquired a minority interest in Marine Layer, another apparel company. Building upon investments in Velvet and Marine Layer, Adastria aims to strategically enhance its global brand portfolio moving forward.
The value of Tanzania's cotton exports rose 55 per cent last year. The increase was propelled by an increase in both export volume and unit price. Farmers are opting for contract farming. While early season drought impacted the actual area germinated and established, it is clear if farmers are assured of support, they want to grow cotton.
In contrast, non-contract farming areas continued to decline in areas planted -- in some cases by as much as over 60 per cent. Through contract farming, cotton buyers agree to provide inputs, finance and advice on credit to primary producers of the product in return for having exclusive rights to purchase the crop at harvest time.
Contract farming areas have already doubled the levels of pesticide distribution that were recorded for the whole of the 2015-16 season. This is largely because ginners are procuring their own pesticides without relying on the limited stocks available from the Cotton Development Trust Fund. In non-contract farming areas the reverse is the case and farmers are struggling to obtain the pesticide that they require.
Cotton yields are set to increase further this year. The area under cotton has increased from 66 per cent to 77 per cent depending on the region.
Patagonia has got its full line of board shorts and bikinis Fair Trade certified. The move is part of Patagonia's broader drive to support workers, elevate communities and do work in an equitable way.
Fair Trade is a non-profit organisation which offers benefits to workers. Fair Trade Certified factories observe strict environmental norms. Patagonia’s swim and surf collection products are field tested by some of the best surfers in the world and incorporate recycled nylon or recycled polyester fabrics. Women's swimsuits and bikinis are printed using a laser process that minimises fabric scrap and waste. For every product made at a Fair Trade certified factory, Patagonia pays a premium that workers can use to elevate their living standards. The money goes directly to the people whose hands made that specific product. Premiums from Patagonia purchases have been used to fund child-care programs and vouchers for medicine and household goods.
In addition to the benefits paid directly to workers, Fair Trade certified factories are required to adhere to Fair Trade’s strict standards for safe working conditions and environmental responsibility.
The Tirupur knitwear industry will employ skilled workers from Orissa rather than untrained ones. And for this, training will be provided by the Orissa Skill Development Authority. The organization already imparts various knitwear industry-specific lessons through institutes spread across Orissa.
Experts from Tirupur will visit Orissa to oversee training programs and suggest changes that need to be incorporated to suit knitwear production. The initiative will thus provide an impetus to the apparel cluster in Tirupur, which does not have to train a rookie worker to cater to specific needs in production process and at the same time trained workforce in Orissa will get quality employment.
The initiative comes in the wake of an increase in flow of laborers from Orissa to Tirupur in recent times. However, these workers were not fully suited for specific needs that were expected by apparel manufacturers in Tirupur. As a result many workers from Orissa ended up doing unskilled work eventually move to other clusters.
Orissa Skill Development Authority has been instrumental in providing skilled employees from Orissa for upcountry clusters involved in automobile engineering, textile, construction and a few other industrial activities.
German athletic wear Adidas has taken technology to a completely new level to create a unique experience for its customers. The company recently launched a pop-up shop in Berlin, called Knit For You. Once the customers steps into the store, they get an opportunity to design their own sweaters made of Merino wool and can get a finished product that costs them $200, within an hour or two. To pick the design, customers will can visit the dark room and stand in the middle of an illuminated box. Different patterns will be projected on the chest. The patterns can be moved around on the sweater using hand gestures, which are picked up by sensors.
Customers are able to try out several options and look at them later on a monitor. It's also possible to test out different colours by putting swatches on the high-tech gadget. The sweaters are knitted on machines right in the store.
Though the brand has launched this as an experiment the inherent strategy is apparently clear. In the sneaker industry today, one clothing design usually takes 12-18 months to reach the store shelves. Adidas is trying to cut short this time frame for quite some time now. It has already engaged robotic intelligence into its operations heavily and dabbled in 3D painting. The Knit For You store in Berlin is open for a couple of months now and is delivering 10 sweaters on an extremely busy day. Adidas is currently keeping a close watch on this store’s performance and will soon decide about the next location for a similar kind of a store. If this experiment works, Adidas will be way ahead of its competitors.
Haryana is looking to be a global hub of textiles and a preferred investment destination. This will include fiscal and financial incentives for new units and growth and modernisation of existing units. The state is setting up augmenting infrastructure, setting up textile parks and facilities for skill training.
The aim is to generate 50,000 new jobs by and attracting investment in textile sector to the tune of Rs 5,000 crores. Haryana is a leading cotton producer in the country and provides employment to about a million people and readymade garments worth $2billion are exported from the state annually.
Textile enterprises acquiring technology will be provided financial assistance of up to 50 per cent of the cost for adopting technology from recognised national institutes, subject to the maximum of up to Rs 25 lakh. The policy proposes a capital subsidy of 10 per cent for eligible new projects of all textile enterprises across the state. It aims at positioning Haryana as a preferred destination for global textile majors, besides boosting textile exports by a compound annual growth rate of 20 per cent. Panchayat land will also be made available on lease for industrial development. The policy also provides for electricity duty exemption.
Textile exporters in Pakistan are deprived of liquidity. A major portion of their working capital is yet to be refunded. Incentives under the textile policy are yet to be disbursed. Trade deficit continues to widen and is at a record high of $20.2 billion in the eight months of ongoing fiscal year, which is $5.2 billion higher than the deficit recorded in comparative period previous year.
Financing such a huge gap in the midst of falling exports and stagnant foreign investment has become a challenge for exporters. This will increase their reliance on expensive foreign borrowings. One problem textile and garment exporters have is with gas prices. They say gas rates are almost 100 per cent higher than those paid by other industries.
Pakistan’s textile exports are not growing while the country is aiming to boost exports to touch $2 to $3 billion by June 2018. The textile industry contributes about 60 per cent to Pakistan’s total exports.
Cotton has been competing with primarily with synthetic fibers and in the past several years, cotton has been become much more expensive than other fibers. In Q1 of 2011, cotton accounted for more than 60 per cent of the market in women’s apparel. Today, it accounts for just about 40 per cent of the.
But there has been a turn in the market. Cotton prices are becoming competitive with synthetic fibers. And retailers, brands, manufacturers are looking at cotton with renewed interest. Cotton Incorporated is helping cotton regain its market share.
Women’s apparel accounts for about 60 per cent of the clothing market while men’s makes up around 30 per cent. Cotton didn’t lose quite as much market share in men’s apparel and there has actually been a little increase in this space in the last four or five quarters.
The cotton industry is trying to sell into a consumer market that is much more demanding than it was a few years ago. This time the fight is complicated by new trends in products such as active wear and terms like sustainability. As a result, performance has become a major theme in the apparel market. One of the areas Cotton Incorporated has been working on is how cotton can compete with synthetics in the performance market.
As a part of the initiative, Cotton Incorporated has developed a number of new technologies such as Storm Cotton, a waterproofing technology; TransDry, a moisture transfer technology; Wicking Windows, another moisture transfer feature; and Tough Cotton, which is an abrasion resistance technology.
