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Even as H&M shareholders prepare to meet in Sweden, the Clean Clothes Campaign, International Labor Rights Forum, Maquila Solidarity Network, and Worker Rights Consortium have released a report revealing that the majority of H&M’s Bangladeshi supplier factories are still not safe. Three years after H&M became the first signatory to the Accord on Fire and Building Safety in Bangladesh; almost all its factories remain behind schedule in carrying out the mandated renovations, with 70 per cent of its strategic suppliers still lacking such a vital, life-saving feature as adequate fire exits. On the day of H&M’s Annual General Meeting, activists around the world will make their concerns known at their local H&M store.
Four NGO witness signatories of the Accord have reviewed H&M's strategic suppliers in Bangladesh, after two earlier reports in September 2015 and January 2016. Although some progress is visible, the slow pace is concerning. The new analysis shows that all factories that in January 2016 still had lockable doors that might prevent workers from leaving the factory in an emergency have now removed those locks. Also the percentage of sliding doors or collapsible gates still in place has decreased considerably.
However, more troubling is that 69 per cent of these factories have not completed the installation of all fire-rated doors required for a safe exit for all workers in the factory.
An average Nigerian cannot identify quality products, but will prefer to go for what is cheap in the market even if it does not serve for a long time. The nation’s textile industry faces a host of challenges. Smuggling has assumed huge dimensions. Cheap imported fabrics, power cuts and a rise in production costs are making it difficult for Nigerian textile traders to compete.
Electricity supply is still below 20 per cent. The business environment is not sufficient enough for ‘Made in Nigeria’ products to compete with Chinese imports. Nigerians have to compete with the Chinese without protection. Since manufacturers cannot produce enough material, this means that textile traders down the line must rely on imports, much of which is smuggled. At the same time, importers have tightened the supply chain, insisting on upfront payment since the local currency was devalued.
In the face of stiff Asian competition, manufacturers are asking for government protection. Traders, on the other hand, want a quick propping up of the local currency to make imports affordable. Until such intervention happens, more traders and manufacturers will be at the mercy of Asian suppliers.
In Nigeria, textile manufacturing is a key local industry, supported by a chain of suppliers such as cotton growers and natural dye makers.
Pakistan’s export competitiveness is declining as readymade garment manufacturers are dealing with high cost of production due to increase in energy costs as compared to competing countries, says Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) central chairman Shaikh Mohammad Shafiq,. Tariff rates of electricity for industry and commercial concerns are considerably higher in Pakistan than in competing countries basically due to over 50 per cent line losses and theft.
Today Pakistan ranks 138 out of 189 on ease of doing business, while last year it was 136. The high cost of doing business has started hitting the textile industry severely, which is evident from the growing number of factory closures in the sector. Oil prices have declined internationally but the Pakistan industry has not yet got relief.
Pakistan has set an export target of $35 billion to be achieved during the next three years. In recent years the country has been exporting more of value added products than of raw cotton, yarn or fabrics. In recent times, textile enterprises have increased the use of synthetic fibers and yarns. Garment exports from Pakistan to the European Union saw an increase of around 21 per cent in the first year of the GSP Plus scheme. The EU is now the largest importer of Pakistani textiles and garments.
In China, prices of 40s compact siro spun yarn in Jiangsu were down one US cent a kg in the third week of April while 30s spun viscose in Xiaoshan fell in yuan terms. Offers for ring-spun 30s yarn were down one US cent a kg at the upper end. Spun viscose yarn prices were weak in China, seeing falls in various specs including ring‐spun, rotor‐spun, siro‐spun, compact and siro‐spun and vortex‐spun yarns. Liquidity was dissatisfactory as well.
Discussions for Xiaoshan‐origin ring‐spun 30s yarn were down while in Fujian market prices for siro‐spun and compact and siro‐spun 40s yarn were seen moderating. In India, viscose yarn prices inched up taking advantage of an expected recovery in the global textile market. 30s viscose spun yarn prices were raised again by Rs 1 a kg (up two US cents) in the Indore market.
In Pakistan, prices generally rolled over but weak currency pegged values lower in dollar terms. Since yarn prices have not fallen, spinners may benefit from better margins in domestic markets. 35s viscose yarn price was up three cents a kg due to weak currency and 40s were up four cents a kg in the Karachi market.
India’s packaging and labeling requirements are much more stringent than the EU’s. So India’s garment makers should revisit the policy of Maximum Retail Price (MRP) to achieve parity at the international apparel market, feels Apparel Export Promotion Council (AEPC)’s additional secretary general Vijay Mathur. He said this at the release of World Bank’s “Stitches to Riches” report in New Delhi recently. He pointed out India's growth in the global apparel sector which has been slow could have been accelerated if the country tried to adopt international practices. It hopes that when the India-EU FTA is signed, it will give India a level playing field vis-à-vis Bangladesh which currently has an advantage in the EU markets.
AEPC feels there is a need to dispel the negative perception of India in the mind of foreign investors who think that the Indian trade scenario is sluggish. AEPC has been advocating an increase in the overtime working hours from 50 hours a quarter to 50 hours a month to increase overall production.
Right now research and development activities prevalent in the Indian apparel industry are not recognized. So AEPC feels there is a need, for instance, to consider the experiments in color and fiber undertaken by the industry for sample generation as it is an important step towards business generation.
Cotton Leads the program launched in 2013, focuses on responsible cotton production as well as responsible textile manufacturing. More than 125 international and local Cotton LEADS™ partners and supporters across the global cotton supply chain attended a one-day conference in Hong Kong titled ‘Moving Toward Sustainability in the Supply Chain’ recently. The Cotton LEADS™ partner conference focused on responsible cotton production, as well as responsible textile manufacturing. Updates on national-level improvement progress from cotton growers in Australia and the US was shared at the meet. The highlight of the day was a preview of a comprehensive and scientific assessment of cotton’s environmental impact the ‘Global Life Cycle Assessment for Cotton’, to be released in full over the coming weeks. The second half of the one-day event was dedicated to technical presentations and discussions with companies offering innovative textile manufacturing options. Among the presenting companies were: Mayer & Cie; Tonello Company; Bros Eastern and SPG Prints B.V.
Cotton Leads cotton producers operate with a system that is transparent, well-regulated, and that continues to reduce the environmental impact of cotton production. It has more than 360 partners including yarn spinners, textile and apparel manufacturers, retailers and brands. It aims at supporting responsible and sustainable supply chains and sourcing.
Cotton Leads is also actively involved in advancing responsible technologies and continuous improvement beyond the agriculture boundary. It is committed to responsible cotton production and is founded on core principles that are consistent with sustainability, the use of best practices and traceability in the supply chain.
This joint program, initiated by Australia and the United States, offers manufacturers, brands and retailers a reliable cotton supply and assurance that their raw material is responsibly produced and identified. Cotton Leads is driven by producers, scientists and professionals striving to make sure cotton is produced responsibly now and for years to come.
Cotton Leads gives the supply chain an opportunity to hear about responsible production progress at the farm level—directly from the growers implementing this progress—and to hear about the latest technologies from textile companies advocating sustainability downstream.
The sixth edition of Denimsandjeans.com Bangladesh is scheduled to be held on October 5-6, 2016 at Dhaka and the theme ‘Vintage Recall’. After launching the first denim show in Bangladesh, the organizers in the past three years have successfully managed to bring the international mills to a platform where they could watch the denim industry of Bangladesh. The objective behind the show has been always to showcase the importance of Bangladesh in the global denim industry. The 5th edition, which ended on March 3, 2016 at Dhaka, has received a positive response from all exhibitors as well as visitors. The two days of this denim show started with the opening remarks byGauhar Rizvi (Advisor to PM) followed by representatives of some reputed business communities.
The features of Denimsandjeans is not limited to being a trade show but is a denim event where a number of activities take place and bring together the global denim fraternity where they can share their views, ideas, new technologies, business propositions etc. and enable a closer bonding among them. The 5th show was no exception and a number of events took place including seminars, live video conferences, student competitions etc. This time the live video conferences by reputed denim designer Leopoldo Durante and Owner of Pizarro Laundries - Vasco Pizzaro, not only set a new benchmark but also showed the perfect blend of quality and technology together.
According to a World Bank report, top four apparel producers in South Asia: Bangladesh, India, Pakistan, and Sri Lanka, have made big investments in world apparel trade and account for 12 per cent of global apparel exports. As per the report, at a time when nearly one million people are expected to enter the workforce every month for the next three decades, export-oriented apparel production in India and other South Asian countries has the potential to create more and better jobs.
The report ‘Stitches to Riches? Apparel Employment, Trade and Economic Development’, launched in New Delhi is aimed at demystifying the global and South Asian apparel markets, estimating the potential gains in exports and jobs, and identifying policies that can unleash South Asia's export and job potential compared with those of their closest competitors in the Southeast Asia region including Vietnam, Cambodia, and Indonesia.
As wages increase, China, the largest apparel manufacturer for the last 10 years, is expected to slowly relinquish its lead in the global apparel market, opening the door to other competitors. This could be a huge opportunity for India and other South Asian countries. Even a 10 per cent increase in Chinese apparel prices could create at least 1.2 million new jobs in the Indian apparel industry, the report stated.
A new Wool Resource Center has opened doors in Hong Kong. The center is a global hub for all things wool, providing market intelligence, technical innovations and sourcing information for spinners, knitters, retailers, designers, students, garment makers and visiting woolgrowers.
The center was set up by Australian Wool Innovation. Hong Kong is a manufacturing hub for spinners and knitters with many global brands travelling there for sourcing trips. It has a long history in the sourcing of Australian wool. As part of its interactive program, Woolmark will also host seminars and training workshops for anyone who is passionate about understanding the natural properties of wool.
Wool growers travelling to Asia can use the centre for industry presentations, supply chain partners can showcase their product or host a launch, and designers can find inspiration and touch and feel the latest and greatest in wool. Importantly, it also connects the Hong Kong office of Woolmark with global players in the wool industry, acting as a permanent trade space with the aim to assist visitors improve business relationships and commercial outcomes.
The Wool Resource Center includes a library, a showroom and an events space for visitors to develop and enhance their education on wool. There are six separate zones including open-plan workspaces, a meeting room and an auditorium
Taiwan Man-Made Fiber Industries Association (TMMFA) chairman Hou Po-ming, feels Taiwanese textile industry need to develop into a complete supply chain and compete through quality instead of quantity as it is hard to compete with China through quantity.
As per latest data, China controls 73 per cent of the global chemical fiber market share while Taiwan only holds 2.9 per cent. Opportunities lie in high-end functional fabrics and other smart applications, the industry could make use of global trends in sports and leisure activities.
Meanwhile, Taiwan’s functional fabrics have a global market share of 70 per cent, with more than 50 per cent of the world’s fireproof fabrics produced in Taiwan and eight out of 10 yoga apparel lines sold in the US manufactured by Taiwanese companies. According to the association, the nation’s textile industry has the upper hand in research and design, as well as capability to supply high-end products to downstream industries, global brands and channel distributors. As the industry as a whole is responsible for the livelihood of 150,000 Taiwanese families, Hou urged the incoming government, which will take office on May 20, to work on joining regional economic agreements such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership soon to eliminate tariffs.
