FW
Wool manufacturer Botto Giuseppe from Valle Mosso, Biella, Italy, has become the prime reference for the FAIR cashmere project set up by US fashion label Maiyet. The raw material comes from Mongolia, the world's third largest producer of this fibre, and it is environmentally and ethically sustainable.
Maiyet is a US luxury fashion label specialising in rare artisanal products from all over the world. Based in New York and led by Kristy Cailor, Maiyet buys cashmere directly at source, with no intermediaries. Supporting local goat farmers from the Gobi desert in Mongolia, and improving their quality of life through tangible contributions, are among Maiyet’s objectives. The company also looks after goat vaccination and disinfection, in partnership with the Gobi Revival Fund.
FAIR cashmere is 'Cradle to Cradle'-certified at 'Bronze' level, and is awaiting its 'Gold' certification. 'Cradle to Cradle' is a rigorous certification system for products that are innovative across their entire supply chain. It tests the process through five criteria to evaluate a product's sustainable development level: waste, health, energy consumption, water resources (in terms of usage and pollution) and human resources use.
Botto Giuseppe was created in 1876 and is a manufacturer of fine fabrics and yarns. Over the years, Botto Giuseppe has added jersey and knitwear yarns to its range, and is now a vertically integrated producer, from yarns to finished products, in its two manufacturing centres in Valle Mosso and Tarcento. The company participates in the leading industry trade shows such as Milano Unica, Pitti Filati, Intertextile Shanghai and Spinexpo.
www.bottogiuseppe.com
www.fairbymaiyet.com
"The trend indicates that low-cost production enjoyed by the country two decades ago is now history and it is no longer profitable for many manufacturers, both international and Chinese, who are moving away from China in search of greener pastures. In addition to rising wages and energy costs, higher logistics costs and government quotas on imported cotton are other major reasons why manufacturers are exploring other destinations"
China’s demand as the textile manufacturing hub is waning as Chinese workers are asking for a hike in wages and thus, local manufacturers are finding ways to combat the current challenges. Higher pay, a stronger currency and Beijing’s desire to become a more automated, and high-tech society are all pushing clothing manufacturers/exporters to find new sources.
A leader despite odds
Domestic Chinese manufacturers are combating rising production and labour costs in the textile and apparel industry, which has also led to the country losing its status as the mass producer of goods. China’s costs have risen so quickly and to the extent that importing countries are moving to many other Southeast Asian countries such as Malaysia, the Philippines, Indonesia and Vietnam that offer low production and labour costs.
However, while China imports textile and apparel products from Bangladesh, Pakistan and other countries, its textile and apparel exports continue enjoy the number one status in global foreign trade, with China’s biggest markets the United States, the European Union and Japan. Also, many Southeast Asian exporters import China-made fabrics and re-export them after further processing. Last year, China processed approximately 10 million tons of cotton, 60 per cent of which was grown locally. The remainder was imported from countries including the United States, India, and Pakistan.
However, recent CCPIT data reveals China’s total export value of textiles and apparel from January 2015 to May 2015 was $30 billion, with the United States accounting for some $16.4 billion in this period. By contrast, in 2014, the total export value of textiles and apparel amounted to roughly $300 billion. And while the US market is showcasing much more resilience, the European Union’s and Japan continue to lag behind as far as economic recovery is concerned.
Focus on new export, production destinations
Amid slowing demand from the US, EU and other traditionally strong importing countries, Chinese players are now exploring newer export destinations such as South America, including Brazil, Africa and Russia. Sighting continuous rise in labour and production costs, manufacturers from China are also moving their production to places like South Carolina in the United States, where they are buying out mills to set up manufacturing base. The trend indicates that low-cost production enjoyed by the country two decades ago is now history and it is no longer profitable for many manufacturers, both international and Chinese, who are moving away from China in search of greener pastures. In addition to rising wages and energy costs, higher logistics costs and government quotas on imported cotton are other major reasons why manufacturers are exploring other destinations.
While labour and production costs are equally high in America, much lower energy prices, competitive prices of cotton, tax incentives from local governments and a considerable reduction in shipping costs since supply is closer to home are luring Chinese players to set up a shop in the US. And Chinese yarn manufacturers with US operations want to ship yarn to apparel manufacturers in Mexico, Central America and the Caribbean — countries that have duty-free access to the American market under NAFTA and CAFTA.
There are a host of significant trends that have an impact on today's global cotton industry, but, in the end, nothing is more critical than consumer demand. Whatever the issues may be, as long as people continue to buy cotton textiles and apparel, everything else is manageable. However, consumers are increasingly demanding more than a comfortable and fashionable product at a reasonable price – they want to know the product's story, too. That was the primary message delivered by panellists during the third Open Session of the 74th Plenary Meeting of the International Cotton Advisory Committee (ICAC), entitled ‘Demand for Cotton: the Views of Retailers’.
“Price and functionality are the primary drivers of consumer demand and will be for the foreseeable future, but sustainability is steadily growing in importance for buyers," said Prem Malik, a partner with Techware Consultants.
“Our customers love everything about cotton," said Pascal Brun, global supply chain manager for H&M, adding, “However, their concerns about sustainability are not going to go away. People want to know the story behind the products they buy: what they are made of, where they come from, and what impact they have on the environment."
Pramod Singh, cotton leader at IKEA, agreed with Brun's assessment. “Retailers need to be able to tell that story or the customers will go to someone who can," he said, adding, “Being able to talk about sustainability isn't enough to gain customers, but not being able to talk about sustainability is enough to lose them."
www.icac.org
Around 200 delegates from IndustriALL Global Unions are gathering in Phnom Penh today and tomorrow for Executive Committee meetings. The garment industry employs 600,000 workers in Cambodia and as part of its global action towards living wages in the sector, IndustriALL is working with its eight Cambodian affiliates to push for higher wages.
According to IndustriALL general secretary Jyrki Raina, the latest increase to the minimum wage does not meet workers’ expectations for a wage sufficient to support themselves and their families. The current demands by unions in Cambodia reflect the workers’ frustration with the brands, as well as the lack of response from government and employers to the unions’ 13 demands. Workers are saying that brands sourcing from the country must guarantee a living wage.
This is why it has become urgent for IndustriALL to continue to work with the brands sourcing from Cambodia towards industry level collective bargaining in order to improve wage conditions. The garment brands that source from Cambodian factories must take their share of responsibility for ensuring that garment workers earn a living wage.
H.E. Sat Samoth, Under-Secretary of State from the Ministry of Labour and Vocational Training will speak at the opening of the Executive Committee. To highlight the complex situation in the region, IndustriALL is hosting a panel debate on living wage action, collective bargaining and organizing in Cambodia and other Asian countries. Panelists include Cambodian government representative Heng Sour, Swedish retail giant H&M, GMAC general secretary Ken Loo and trade union representatives from Cambodia, Myanmar and Indonesia.
www.industryall-union.org
Taiwan based knitting machinery manufacturing giant Pai Lung Machinery Mill attracted a significant number of interested visitors at this month’s ITMA 2015 in Milan. With new technology in 13 different circular and flat knitting machines and a display of hundreds of roles of fabric, Pai Lung presented its capabilities in line with the ITMA 2015 theme of ‘Sustainability.’
According to the company, the most exciting development was its SPINIT technology, an advanced concept and revolutionary technology combining spinning and knitting. The cost of knitted fabric from SPINIT is significantly lower than traditional processes, Pai Lung estimating that savings of up to 37 per cent can be made in equipment costs, power supply and labour costs.
Another new technology introduced was its ‘inverse plating’ on its PLF-IP132 flat knitting machine. However, innovative circular knitting technology is always the key attraction at Pai Lung’s booth and the company introduced its new circular knitting technologies under new fabric designations as Active mesh- a single jersey with eyelet jacquard fabric made by a full jacquard rib-mesh machine, ‘3D embossing’ - a new yarn inlay knitting technology on Pai Lung’s PL-KD2, ‘Duplexknit’, ‘Multi-fleece’ is produced on Pai Lung’s PL-KFCJ 34“, 28GG, 72 feeders machine, ‘Warm terry’ is made on Pai Lung’s PL-KDPS-HP high pile shearing machine in 36-inch diameter with 14 gauge on the dial, and 28 gauge in the cylinder, with 56 feeders for high volume pile fabric production.
Many other developments and fabric applications were also shown on Pai Lung’s 880 square metres booth.
www.pailung.com.tw
Turkish foreign investments across the globe have increased considerably over the last decade. Major investment has particularly gone to Africa, where its value has reached $6 billion. According to industry estimates investments in North Africa almost doubled in the past five years, while in the sub-Saharan region Turkish investors have invested in countries such as Ethiopia, Cameroon, Cote d’Ivoire and Nigeria.
According to Oktay Ercan, Chairman of OE Group, the rise is in investment is because of the success of foreign policy initiatives of the Turkish government in Africa and Middle East since 2005. By providing employment to locals and making use of home-grown resources, the Turkish companies are helping Africa’s development. However, Ercan feels that more investment in Africa is required if Turkey aims to sustain its economic growth and move up the ranks of the G20.
“In brief, with the business and investment opportunities in Africa, the Turkish know-how, the financial mechanism in the Gulf should be established. The African countries declare that they have been taking Turkey as an example for development especially in the last five years,” he said.
The OE Group, has been actively operating in Africa and in the Gulf region since 2001, in the textile, retail, import-export, construction, mining, agriculture, livestock breeding and tourism sectors, employing 6,500 in its operations in 14 companies in the region: in the Middle East – in the UAE, Qatar and Saudi Arabia – and Africa, in Sudan, Kenya, Cote d’Ivoire and Cameroon.
Oe-group.com
FESPA has announced that FESPA Digital 2016 will mark its tenth anniversary by returning to the Amsterdam RAI from March 8 – 11, 2016. The four-day event will once again include FESPA Fabric, Printeriors and European Sign Expo.
According to Roz McGuinness, Divisional Director, FESPA, “As the first digital wide format and speciality printing event of 2016, exhibitors will maximise the opportunity to use FESPA Digital as a launchpad for digital devices that will address the wide format and speciality printing markets, including garment decoration, printed interiors and industrial.”
Over the last ten years, FESPA Digital has firmly established its role as one of the most creative and inspirational exhibition platforms within the wide format digital printing industry – not only in Europe, but around the world, attracting visitors from around 120 countries.
The Amsterdam RAI has seen significant improvements since FESPA Digital was hosted there in 2009. A brand new congress centre, which is due to open later this year, along with new cafés and eateries mean a much wider choice for both exhibitors and visitors.
Roz concludes, “FESPA’s commitment to digital is stronger than ever as we continue to reinvest back into the exhibition and our global print community. FESPA Digital 2016 will once again celebrate the endless opportunities with digital print through industry leading exhibitors, seminars, workshops and networking opportunities. It is set to be one of the most influential wide format digital and textile print exhibitions in 2016.”
www.fespa.com
The Government of Indonesia announced a package of economic policies consisting of three facilities. Cabinet Secretary along with the Coordinating Minister for Economic Affairs, Minister of Agricultural and Spatial Planning / Head of National Land Agency, Deputy Head of the Investment Coordinating Board (BKPM) made an announcement.
Package is divided into two approaches. The first regulation is related to labour-intensive industries, who will be given income tax relief under Article 21 and the second is about changes in Government Regulation No. 18 of 2015 which will provide tax allowance to the five labour-intensive industries.
The tax allowance was granted to new industries including footwear for everyday purposes, industrial sports shoes, the shoe industry engineering field, the apparel industry and the textile and apparel industry of leather.
Around 200 clothing brands such as Zara, Adidas, Nike, The North Face, Amer Group, Salomon, Arcteryx, Calvin Klein and H & M have production facilities in Indonesia. Recently Saiful Bahri, a member of the Indonesian Textile Association (API) field of Data and Information, explained the potential of Indonesia's involvement in producing the world's leading products.
Chairman of the Indonesian Textile Asoasiasi (API) Ade Sudrajat added that competitiveness of producers from Indonesia needs to be improved to compete with the rivals like China and Vietnam.
www.indotextiles.com
The textile, clothing and footwear industry in Fiji is gearing up for bigger growth. Fiji’s niche is specialised products in small volumes. It is close to its main markets of Australia and New Zealand. The developing country preference offered by Australia at the beginning of this year has also opened some new doors as it offers better rules of origin.
SPARTECA (South Pacific Regional Trade and Economic Co-operation Agreement ) is a nonreciprocal trade agreement where Australia and New Zealand offer duty-free and unrestricted access for specified products originating from the developing island member countries of the Pacific Islands Forum. However, low cost Asian competitors continue to attract bulk orders because of lower pricing. The challenge now is to convince buyers to come back to Fiji.
The industry is working on increasing exports and creating more employment. There has been a significant growth in employment numbers in the garment manufacturing factories with close to 8,000 staff now directly employed. This increase is attributed to the expansion of current manufacturers and a few new factories opening up. Work on revamping training facilities for the industry is going on. Meanwhile raw material inputs for the textile, clothing and footwear industries have been made duty-free. Sewing machinery, spare parts are duty-free as well.
Bangladesh has halted all jute exports to Pakistan. This has put Pakistan’s mills in trouble. Any delay in supply would mean an end to production of jute products especially jute sacks and leave thousands of its labor force jobless. Pakistan is one of the biggest importers of Bangladesh jute. If jute sacks are not available, the storage of crops, especially of wheat, rice, grains, and potatoes, is likely to go waste throughout Pakistan.
Raw jute was waiting to be shipped at Bangladesh’s ports, but the government issued a notification by hich exports of raw jute were suspended until further notice. The jute sector in Pakistan is already facing stiff competition from woven polypropylene and other packaging materials. Small farmers are likely to be the worst hit by the ban since they would not be able to sell their crops without the required jute bags.
Bangladesh is the largest exporter of raw jute in the world. It imposed the ban on jute exports to increase supply of the fiber for local jute bag and sack-makers. Jute prices have shot up in Bangladesh due to heavy rains and floods which caused yield loss. Mills in Pakistan, Nepal and some in India depend on Bangladeshi jute.
