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The fashion industry in France is now 2.7 per cent of France’s GDP and accounts for up to a million jobs. Revenue from fashion industry is expected to register a CAGR of over 10 per cent from 2017 to 2021. In terms of sales, apparel make up the largest segment of the French fashion industry.
Women’s wear is the largest category in the sector, representing over half of the overall value sales of apparel in France in 2016, while men’s wear accounts for 32 per cent. However, both women’s and men’s wear posted low growth rates in 2016, with each increasing in current value by one per cent.
As for textile and apparel production, France ranks as the third largest in Europe, behind Italy and Germany. France accounts for over 12 per cent of total textile and apparel sales and ten per cent of the textile workforce in Europe.
In recent decades, France focused more on innovative and high value added textile products such as technical textiles, which now make up 15 per cent of the market. Linen is one of the most important fibers in this category, in which France now manufactures 70 per cent of European production.
Indian apparel makers want rupee to stabilize. The rupee has been rising in recent months, in stark contrast to the situation in other countries who compete with India garment exports. While other countries have started taking recourse to depreciating their currencies in the last one-and-a-half years, the rupee has appreciated.
The Chinese yuan depreciated by 13 per cent against the dollar in the last 12 to 18 months, Bangladesh’s taka by six per cent and Vietnam’s dong by seven per cent. The Indian rupee, however, has risen by about six per cent in the last three or five months.
The rupee rose against the dollar even as the dollar rose against most other currencies due to strong flows of foreign institutional investor money into India’s stock markets. Exporters are not able to book orders due to the over-valued rupee as apparel exports are highly price-sensitive.
The rupee was over-valued by 18 per cent in February 2017. Now it is almost 20 per cent. The second factor worrying apparel makers is rising cotton prices. The rising cotton prices and rupee appreciation will nullify the intended impact of the recent export stimulation packages and also weaken India’s position against its competitors.
The market for technical textiles in India is expected to grow at 12 per cent CAGR between 2015-16 and 2017-18. India is expected to play a key role in shaping the technical textiles market with consumers spending more on home textiles, sportswear products, and medical products.
Technical textiles provide new opportunities to Indian textile industry to have a long term sustainable future. Despite achieving a high growth rate, the per capita consumption of technical textiles in India is 1.7 per kg vis-a-vis 10 to 12 kg in developed countries.
Globally, technical textiles make up 29 per cent of the overall textile industry. In some western countries they have 50 per cent share. In India, the share is a meager 10 per cent. India can be positioned as a manufacturing hub for technical textiles. Demand for technical textiles is expected to stay steady from 2015 to 2020 due to a broadening application in end-use industries, such as automotive, construction, health care, and sports equipment.
Development and industrialisation are the main drivers for the demand for technical textile products in a country. In 2015, the global technical textile market was valued at around $153 billion. On the back of strong demand, the global technical textile market is estimated to reach $194 billion by 2020, with global consumption expected to surpass 40 million tons.
The total turnover of the German textile and fashion industry grew by 0.2 percent in 2016 compared to 2015 touching €32 billion counting the shoe and leather goods industry. The diverging developments of the various segments are once again striking. Sales of textiles rose 2.9 per cent, increasing considerably. As Ingeborg Neumann, President of the Confederation of the German Textile and Fashion Industry, explained the strongest segments are primarily non-woven fabrics and technical textiles for application in medical and structural engineering, automotive industry, and aeronautics. German enterprises are globally leading in this regard. Furthermore, smart textiles provide new markets for a long-term future. As per Gerd Oliver Seidensticker, President German- Fashion Association points out in 2016, the German fashion industry faced many challenges both domestically and abroad. But the good thing is the exports are doing well again. Big losses in strong markets like Russia were compensated elsewhere which led to a slight increase in exports by 1.4 per cent. As for the future, its important to keep an eye on structural changes in sales at trade level. The target is to provide customers with service- and customer-oriented shopping experiences by using the opportunities of e-commerce and stationary trade. Globally, German products enjoy strong demand. Textile and fashion exports rose 1.2 per cent. Next to strong and attractive German fashion brands, technical textiles are primarily responsible for the growth. The export volume settled at a record level of €26.6 billion in 2016.
VF Corporation, the a global leader in branded lifestyle apparel, footwear and accessories has introduced the company’s ‘2021 Strategic Growth Plan’ and key initiatives designed to deliver superior returns to shareholders.
The Greensboro, NC-based company expects to deliver revenue growth at a five-year compounded annual growth rate (CAGR) of between 4 and 6 per cent led by its top three brands, its direct-to-consumer business, and international business. It projects earnings per share to grow at a five-year CAGR of between 10 and 12 per cent. The company also expects to generate over $9 billion of cash from operations between 2017 and 2021 and return $8 billion to shareholders through dividends and share repurchases.
President and CEO Steve Rendle says their 2021 strategic growth plan fuels aspiration to consistently grow by creating amazing products and brand experiences that transform and improve the lives of consumers worldwide. The company’s direct-to-consumer business increased substantially in Q4 led by Vans, North Face and Timberland, in the Americas, Europe and Asia, and the European business increased in sales for all three brands. VF’s Board of Directors authorized a change in VF’s fiscal year end from the Saturday closest to December 31 of each year to the Saturday closest to March 31 of each year. The changes will be effective for the fiscal year beginning on April 1, 2018.
Hungarian wool is exported across Europe, Japan, India, Turkey, Egypt, and the largest volume goes to China. One of the largest exporters of Hungarian wool is certain that Hungary is a good place to invest. Hungarowool was established in 1997 and János Vass, has been working in the local wool industry for over 30 years. He says‘ Hungary is ripe for such investment since it has the space, expertise, workforce and and wool!’ Wool processing is returning to Europe with costs rising in China making processing in Europe a more attractive cost effective option, particularly for companies in Europe. BREXIT and uncertainty created by Trump will further boost the industry with processing chains within Europe offering greater certainty and stability. Also, the Hungarian government’s support for the wool industry is strong. János Vass says that the characteristics of Hungarian merino wool can be verified by testing. ‘At Hungarowool WTAE testing certification’ He further added they can offer wools ranging from 23-24.5 micron. Although merino wool has a lower yield than other merino type wools, due to the farming circumstances the lanolin content is higher, as is its higher tensile strength which is an advantage during processing’, The company strongly believes in the Campaign for Wool. It is working to produce finer wool and better develop the Hungarian wool industrial development.’
In recent years, Vietnam’s garment and textile exports have registered an annual growth of 25-30 percent. Compared to world’s annual apparel consumption of about $350-400 billion, Vietnam’s share is still low but the prospects for the country’s garment and textile industry is good.
According to trade experts, free trade agreements (FTAs) between Vietnam , ASEAN and other countries, which are in force or under negotiations, are a useful tool to lift the industry’s turnover in the future. For example, the Vietnam-Japan Economic Partnership Agreement, which took effect in late 2009, opened major opportunities for the country’s growing industry as it regulates to cut all tariffs on apparel products to Japan to zero percent.
Vietnam shipped garment and textiles to Japan worth $882 million, a rise of 23.8 per cent compared to the same period last year for the first six months of this year, accounting for 13 per cent of the industry’s total export turnover.
Besides, the Trans-Pacific Partnership Agreement (TPP), which involves Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, is also giving high hopes for Vietnam’s apparel industry to access and expand export to TPP members, particularly the US – a market consuming one quarter of the global garment and textile products.
The US is Vietnam ’s top importer, importing $5.1 billion worth of good last year and $3.5 billion in this year’s January-June period. Le Quoc An, a senior advisor to the Vietnam Garment and Textile Association, predicts Vietnam’s exports to the US in the next five years will double, if the TPP is signed.
One of the world’s largest garments producers Bangladesh is second only to China and clothing accounts for around 83 per cent of its exports. This is why the country is one of the most market for Mayer & Cie’s the makers of circular knitting machine.
The company recently returned from DTG Dhaka exhibition with orders for 80 machines. The German circular knitting machine manufacturer is represented there every year by its local representative, Brady. Torsten Meile, Mayer & Cie.’s regional sales manager and another regular DTG visitor. They showcased the latest S4 3.2 II model, a 30 ins single jersey machine with gauge up to E24 and currently, the most popular Mayer model in Bangladesh.
Meile says, DTG, which is a purely domestic trade fair, recorded more visitors than in the past and exceeded their expectations in that respect. India is also among the top five important markets for Mayer & Cie’s with the company having 36 per cent share in the country's premium and midrange market. In 2016, the company booked orders from India well in excess of 200 circular knitting machines. Amongst those orders, the S4 3.2 II was in high demand, followed by the D4 2.2 II. The most popular electronic machine in 2016 was the OVJA 1.6 E, a jacquard machine for double jersey fabric.
Batliboi has looked after Mayer’s numerous Indian customers for many years and collaboration between the two companies continues to be close.
The 6th edition of Bangladesh Denim Expo on May 17 and 18, 2017 at the Convention City, Bashundhara, in Dhaka, Banglades already has over 10,000 preregistered visitors. The major theme, ‘Denim Networks’, underlines the growing importance of developing long-term relationships and a shared approach in the contemporary denim industry. Another novelty of this edition is the extended space dedicated to exhibitors, events and expanded Trend Zone. For the first time, the expo will take place in two different halls, with the fair doubling its space: the “Nabaratri Hall 4”, spread over 40,000 sq. ft. will host exhibition booths, special events; and special ‘Virtual Reality Booths’; the ‘Rajdarshan Hall 3’ covering 30,000 sq. ft. will host seminars and amazing ‘Denim Innovation Night’. One of the highlights is a seminar “From ideas to technologies: discovering a new age for garment finishing” by Alice Tonello, R&D Manager at Tonello Garment Finishing. Piero Turk, World Famous Denim Designer will look at new trends in finishing through cultural, economic, ecological and technical considerations. Additionally, this edition will feature several special event-displays that will capture the attention of all denim lovers. Amongst them are the “Tonello Denim Gallery”, “Sashiko Stitch”, the “Repair Display” along with special “Information Exchange” and absolute novelties of the “Virtual Reality Booths”, a fascinating virtual tour of a fabric mill, denim factory or laundry. Two-day expo will end with a marvelous “Denim Innovation Night”, a special event that will showcase latest trends in denim styling and finishing. Bangladesh Denim Expo exclusively featured in “See now, Buy now – Bangladesh 2017” The fact that the Expo has been able to develop connections between buyers and local companies is confirmed by its inclusion of its May 2017 edition as the only local event in Bangladesh in the calendar of “See now, Buy now - Bangladesh 2017”, a very important project that aims to connect international buyers with Bangladesh suppliers. The project is promoted by the CBI (Center for Promotion of Imports from Developing Countries), an agency of the Dutch Ministry of Foreign Affairs in collaboration with BGMEA, and will be taking place in May-June 2017. And as Md Mostafiz Uddin, Founder & CEO of Bangladesh Denim Expo says, “Network is a key concept of contemporary society, and the denim industry is the highest expression of this. To face the important challenges ahead for markets nowadays, we believe is absolutely necessary to create connections, share knowledge and ideas, building together.”
Exports of readymade garments from India grew 4.5 per cent in rupee terms and one per cent in dollar terms during April to January 2016-17 as compared to the same period of the previous financial year. A special package of reforms for the apparel sector was announced in June 2016 targeting employment generation and exports.
The special packages given to the sector are employee provident fund scheme reforms (12 per cent of the employer’s share of provident fund is paid by the government); introduction of fixed term employment; additional incentives under ATUFS; and enhanced duty drawback coverage through ROSL.
In addition to the special package for apparel, several other initiatives have been taken to boost exports. These are a three per cent interest equalization scheme for manufacturers or exporters of readymade garments; Integrated Skill Development Scheme; Amended Technology Upgradation Fund Scheme; two per cent MEIS scheme; and all India duty drawback.
During the April to January period in financial year 2016-17, exports worth Rs 91467.85 crores were made from India while for the same period in financial year 2015-16, exports stood at Rs 87560.23 crores. Exports contribute around four per cent to India's gross economic output. Although the country is hugely dependent on oil imports, exports of oil-based products have supported the economy to a large extent.
