Global apparel manufacturing map changes with brands moving to new destinations
"Politics is not the only factor that is leading to this shift. Factors like rising labor costs and an increasing reluctance in China to produce low-cost goods are equally responsible for brand exodus from China. Companies are diverting their supply chains despite the risk involved "
The global apparel manufacturing map is changing with many fashion brands shifting their focus away from China to new attractive destinations. On October 1, President Trump increased the existing tariffs on $250 billion worth of Chinese goods from 25 per cent to 30 per cent. He also taxed an additional $300 billion worth of Chinese imports at 15 per cent rate. This led to fashion brands such as Uniqlo, Levi’s, Crocs, Calvin Klein and Tommy Hilfiger moving their entire manufacturing base out of China.
However, politics is not the only factor that is leading to this shift. Factors like rising labor costs and an increasing reluctance in China to produce low-cost goods are equally responsible for brand exodus from China. Companies are diverting their supply chains despite the risk involved
Bangladesh emerges a popular choice
A lot of brands are migrating to Bangladesh. They are training their workforce and importing new expensive machinery into the country which has the capacity to manufacture everything from denim to shoes. They have even developed the laser technology needed to create high-quality jeans in the country. 
However, Bangladesh is yet to fully smoothen out the difficulties that previously beset its manufacturing industry. Brands and customers still cannot forget the Rana Plaza tragedy in Dhaka, killing 1,134 people – even though safety standards have improved significantly since then.
Vietnam gains popularity for footwear manufacturing
Another emerging popular choice is Vietnam, especially for footwear manufacturers. The country offers free trade with end-market countries including the 28 nations of the EU, Australia, Canada, Japan, Mexico, New Zealand and Singapore. Workers are skilled, labor is cheaper than China, the country’s infrastructure is also well developed. The country produces a much higher amount of footwear than anywhere else in Southeast Asia. It also makes very high-quality footwear, which is why Uniqlo makes all its footwear in Vietnam even though they rely largely on Bangladesh for everything else.
Favorable government policies attract brands to Cambodia
The third popular destination for brands is Cambodia, where apparel manufacturing accounts for 80 per cent of national export earnings and employs more people than any other industry. The country allows 100 per cent foreign equity ownership and an exemption from import duty on machinery and equipment. It’s ports helps it to import raw materials from China.
Cambodia also benefits from the EU’s ‘Everything but Arms’ scheme, which allows developing countries duty-free access to the EU market for export goods.
Indonesia to digitise clothing and textile industry
Alongwith these countries, Indonesia are also emerging as a preferred manufacturing destination for brands. The country’s capital Jakarta is rolling out an ambitious plan to digitalise its clothing and textile industry by 2030. This will be achieved by investing in top-quality machinery, training the workforce and working with local and international investors to build new, artificial-intelligence-ready factories.
The Indonesian government also wants to introduce the 3D scanning technology where customers can send in a 3D scan of their measurements and receive clothes fitted to their bodies – and AI-related 5G technology.
Though all these countries have a lot of potential, it won’t be easy for them to replace the role of China as a global apparel manufacturer. They will have to engage in plenty of cross-border sourcing in order to meet their requirements.
Bangladesh apparel exports to India up 17 per cent
Apparel exports from Bangladesh to India have gone up by 17 per cent from April to August 2019. This has impacted small players 80 per cent of the industry is still in the micro, small and medium sector. India’s apparel imports from Sri Lanka, on the other hand, have declined by two per cent over the same period.
To add to India’s problems, China has entered the picture. Free trade agreements with Bangladesh are encouraging duty-free imports of Chinese fabrics, with Bangladesh importing duty-free fabrics from China, adding value, and exporting duty-free to India. With Sri Lanka, India has a duty free agreement, but only up to eight million pieces.
The Indian apparel industry is worried about duty-free imports of readymade garments from Bangladesh. Bangladesh can export more than 60 products including garments to India, without any duty, under the South Asian Free Trade Area agreement. These exports have grown 480 per cent in the last five fiscal years. Textile goods produced and sold in India are subject to GST. However, the same products from Bangladesh reach India without any duty and so there is a 10 to 15 per cent cost difference between the products.
Kenya reduces cotton imports
Kenya plans to revive the cotton industry. Among the steps chalked out is eliminating imports of cotton raw materials within the next five years. The country used to produce over 30,000 tons of cotton in the 1980s but production has declined to 7,500 tons currently. Rising cost of production has made the cash crop unprofitable. The hope is to increase cotton production to 10,000 tons by the end of 2020, through increasing the area under cultivation. Kenya is keen to use locally produced cotton to supply textile factories that export most of their products to foreign markets.
The cooperative model will be leveraged to revive the cotton industry and create additional jobs. A pilot project has been launched, where farmers have formed a cooperative. This will be replicated to 22 counties across the country. Farmers will be provided with certified seeds to ensure they achieve optimum yields. As of now Kenya is losing value addition opportunities due to over-reliance on imports of intermediate cotton products that are converted into finished textile products.
Kenya will be taking steps to expand exports and raise the country’s share of new investments. The country will particularly be focusing on trade windows such as the African Growth and Opportunity Act and the European Economic Partnership Agreement which have not been fully exploited.
Buyers want more improvement from Bangladesh
Bangladesh’s apparel sector wants funds to become socially, environmentally and economically sustainable. To make a factory safe for working, make it socially and environmentally compliant, huge investments are needed. But entrepreneurs need financing to do so at a competitive cost.
As of now, the country leads the list of green industries around the world with 101 LEED certified factories and more than 500 in the pipeline. But continuity of this success will depend on the commitment of stakeholders in finding ways to make the industry more sustainable. Despite Bangladesh’s progress in many aspects, buyers and customers want to see more improvement in the readymade garment sector especially in the areas of factory inspection, workers’ safety and fairness of labor practices.
The contemporary textile and readymade garment sector has been going through major changes with the emergence of technologies linked to the fourth industrial revolution, changing many conventional models of business in the sector. Meaningful exchange of knowledge can make sustainability easier to attain for manufacturing processes across the garment industry. Bangladesh is the second largest apparel exporter in the world. Though climate change is one impediment in the growth of the country’s apparel industry and its future sustainability, Bangladesh has one of the lowest per capita carbon emissions in the world.
Arvind opens water treatment facility with Gap
Gap and Arvind have partnered on a new water treatment facility. This will do away with the use of freshwater at Arvind’s denim manufacturing unit in Ahmedabad. The facility will save eight million liters of fresh water every day in the textile production process. This amounts to 2.5 billion liters a year.
Gap is a retailer and Arvind is a textile manufacturer. This is a milestone for both companies in their endeavor to reduce the amount of water used in production and, hence, preserving freshwater sources. The mill in Ahmedabad will work entirely with reclaimed water using Membrane Bio Reactor technology that treats wastewater from surrounding areas without infusing any chemicals in the process. The project is an example of innovative, sustainable solutions unlocked through partnership across the apparel industry.
Water will come directly from the local municipality through a new pipeline to help go a step forward in water preservation and prevention of water scarcity. Through this collaboration with Gap, Arvind hopes to not only achieve its water goals but eliminate the use of water in its textile production process. In the last two decades Arvind has made significant efforts towards water reduction and recycling. About 90 per cent of its water comes from recycled sources.
Ralph Lauren adopts digital identities
Ralph Lauren has introduced digital product identities to its range for supply chain transparency. The move will also help the brand with better insights about manufacturing, orders and inventory of their products thereby helping the brand improve its efficiency. The initiative, starting with Polo, will allow customers to scan the product label through their smart phones and confirm its authenticity. Each product label is equipped with its unique digital product ID that contains the product detail. The customers will also be able to get other product-related details in addition to receiving styling tips and recommendations. Furthermore, the brand will gain from improved real-time supply chain visibility allowing it to track details starting from the source – eventually leading to better inventory management.
US-based apparel giant Ralph Lauren uses technology to deliver more for its consumers and ensure the integrity of its products throughout the lifecycle. The application of this technology means every Polo product will be born-digital, which represents a new milestone in data intelligence innovation in this sector.
The brand targets working professional men in their early-to-mid 30s, new-to-the workforce women in their mid-to-late 20s, and the creative class. The last few years have been about cutting costs including closing 50 stores, eliminating more than 1,000 jobs and removing three lines of management.
Reebok unifies logo
Reebok will unify its logo and wordmark. The two graphic elements will be integrated into all sports and fashion products, including clothing and footwear. The logo was first introduced in 1992 and has been used in different ways since its launch. The new logo is the evolution of the original in order to connect the brand’s heritage with its future.
German sportswear company Reebok is owned by Adidas. Their products stayed entirely separate from one another — until now. As the sneaker industry shifts, evolves, and changes, these two major brands are joining forces for the first time ever. Reebok and Adidas have jointly launched a sneaker called Instapump Fury Boost, the shoe merges Adidas’ technology Boost with Reebok’s silhouette Instapump Fury. Boost is a cushioning technology from Adidas. It uses a material called thermoplastic polyurethane that compresses under pressure for better shock absorption and instantly bounces back to its original shape. Adidas originally introduced Boost in 2013. Reebok first launched the Instapump Fury sneaker in 1994. At the time, the sleek sandal-like design stretched over a thin GraphLite shard that bridged a gaping split sole unit. The Instapump Fury pushed the limits of what was possible in the world of athletic footwear and became a cult classic lifestyle favorite. There was no other athletic shoe like it. Now it is being rereleased with the Boost technology from Adidas and other minor changes and upgrades.
Swiss researchers develop better ways of recycling used clothing
Researchers at Lucerne University of Applied Sciences and Arts and Texaid in Switzerland have developed new methods to spin the old clothing into a coarse yarn which is suitable for making carpets. These design and material researchers also created prototypes from the short fibers and even from the dust which arises when fabrics are torn. These prototypes could be used for noise insulation and finding new methods to spin fine yarn from used textiles -- so fine that it can be used to manufacture new clothes again. The purpose of the new research is to make these textiles be recycled for high-quality uses
With its headquarters in the Canton of Uri and one of the leading service providers of textile recycling in Europe, Texaid collects around 37,000 tonne of old clothes in Switzerland each year. Around 30 percent of these textiles collected are in too poor condition to be worn again as second-hand clothing.
Prices of polyester filament yarn fall in China
Prices of polyester filament yarn in China kept falling in the second half of 2019. Stocks of grey fabric accumulated in September and the operating rate of fabric mills rose. In October, stocks of grey fabric declined by around six days, and players became more cautious in restocking. Some plants cut the run rate. Stocks of knitted fabrics dropped, mainly winter fabrics like plush fabric and water-jet fabric. Stocks of lining and silk-like fabric were especially high.
Downstream plants have a chance to hoard stocks when feedstock price is low. In addition, if feedstock price remains firm or hits a new low, some plants may prepare feedstock in advance. Some PET bottle chip plants plan to have a turnaround in November, but some polyester units that had a turnaround before will resume operation. Polyester fiber plants are unlikely to intensively cut the run rate in November supported by rigid demand and taking the spring festival into account.
New units in the upstream market are still anticipated to start operation but some are delayed. No change in capacity expansion is expected. Besides, the anticipation of end-user polyester demand will be revised slightly. Downstream players are not very confident on demand in the second half of the year.
19th International Sourcing Expo Australia to showcase a wide range
The 19th edition of Australia’s premier international sourcing show-The International Sourcing Expo Australia will occupy 16,500 gross sq m to showcase a full a spectrum of product and service offerings from off-the-shelf clothing through to made-to-order pieces, fabric, and functional textiles.
The expo will be held from November 12,2019 at the Melbourne Convention & Exhibition Centre alongwith the Footwear & Leather Show Australia and China Clothing Accessories Textiles.
The event will have 700 textile apparel and footwear manufacturers and agents from 20 plus countries. There will be 4000 trade visitors participating in the show. Exhibitor participation from India, China, Bangladesh, Pakistan, Hong Kong, Fiji, Indonesia, Vietnam, South Africa, Ethiopia, Taiwan, Turkey, Australia, United States, Peru, Brazil, Mexico, Singapore, and United Arab Emirates.
Attracting sourcing managers for Australia’s large fashion retailers, niche fashion brands, online outlets and designers, the show allows buyers to meet with many reputable suppliers more than they could physically visit on an overseas trip.
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Stefanno Pilati to showcase first independent collection at Pitti Immagine Uomo 97
Random Identities, the first independent venture by Stefano Pilati, will be showcased at Pitti Uomo 97 that will be held from January 07 -10, 2020. The collection offers ready-to-wear garments for the digitised era.
“It is, first of all, an enormous pleasure to present the new project of Stefano Pilati, Random Identities, in a premiere showing at Pitti Uomo in January says Lapo Cianchi, Director of Communications and Events at Pitti Immagine and the natural, expected, outcome of a relationship of mutual esteem and friendship.
Channeling the lessons of a dizzyingly comprehensive career across top fashion houses, among them Armani, Prada, Yves Saint Laurent, the collection showcases Pilati’s expertise in design and tailoring. The designer’s industry insider connections have been parlayed towards producing exceptional quality, with a digital-first model.
Going beyond the original contribution that Stefano offers to the public on the concepts of genre and identity besides overcoming the boundaries of the strictly clothing related reality, Random Identities arises or at least seems to arise from an inner an impulse of Pilati to express himself through fashion, an obsession to dress that is the result of decades of integrity, work, and continuous learning”.
The label’s menswear-oriented garments inhabit a strain of head-turning provocation that is nonetheless deftly controlled by monochromatic color choices and stark detailing. Inspired by the dress style of Pilati himself, the label's categories strike a look that balances refined, rigid cuts with everyday wearability.
Moda to offer complete overview of the fashion season
Bringing together over 1,200 collections under one roof at the NEC Birmingham, Moda, a Hyve Group plc event, will deliver the complete season's overview to over 9,000 fashion buyers. The show will bring fashion to life with 16 catwalk shows across the three days from February 23-25, 2019 to inspire buyers and sell brands, alongside a comprehensive retail-focused seminar programme, interactive workshops and networking events.
Visitors can expect to see a compelling line-up offering newness and industry favourites, with brands such as Caprice, Tamaris, Xti, Refresh, Carvela, UNISA, Peter Kaiser, Alpe, Fly London, Nero Giardini, Marco Tozzi, Keddo, S Oliver, Jana, Lunar, LOTUS, Ravel, EMU Australia, Shepherds Of Sweden, IGI, MUSTANG, Blowfish, MODA in Pelle, HB Shoes, Vionic, etc.
Lisa Govier, Footwear Director at Moda says: “The Moda team has worked incredibly hard to create the right environment for footwear brands this season and we are over the moon to announce a roll call of over 100 brands coming together at Moda, offering the most exciting, efficient and effective buying platform for visitors. Our dedicated buyer acquisition team will now help facilitate introductions between brands and retailers to deliver superb ROI for our exhibitors whilst also introducing buyers to exciting new brands that may not be on their radar, via our speed-networking programme.”
Hyve Group plc is a next generation global events business whose purpose is to create unmissable events, where customers from all corners of the globe share extraordinary moments and shape industry innovation. The group aims to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for its customers.
AATCC scholars to present latest research at committee meetings
"AATCC, headquartered in Research Triangle Park, N.C., USA, provides test method development, quality control materials, and professional networking for members in about 50 countries throughout the world."
Two undergraduate scholars will present their latest research to the Concept 2 Consumer Interest Group during AATCC’s committee meetings on Wednesday, November 13, 2019.
Michelle Kerstein, Senior at North Carolina State University Wilson College of Textiles, majoring in Fashion and Textile Management, will present her research on consumers and the circular economy. Kerstein is a recipient of AATCC Foundation Darsey Family Scholarship. She will discuss her latest findings on the increased awareness that consumers have on the negative impacts of the textile and apparel industries. Kerstein will be discussing how manufacturers and retailers need to work with and engaging consumer base by supporting models that increase clothing use, clothing swaps, clothing rentals, and the secondhand market. She will also discuss how companies can invest in safe and renewable materials that excite consumers and discover solutions that turn used clothes into new-like textile recycling and upcycling.
Reannan Riedy, Senior Retail Entrepreneurship student in the Jim Moran College of Entrepreneurship at Florida State University will present her undergraduate research on phase change materials (PCMs) at the fall committee meetings. Riedy has been a member of Dr. Meredith McQuerry’s research team in the FSU Textile Testing Laboratory since 2017. She has presented her research findings at the International Textile and Apparel Association Conference, the National Fire Protection Association Conference, and the AATCC International Conference. Her recent work to develop a simple, valid, and feasible methodology for quantifying the presence of PCMs on a textile material’s surface will be presented. Riedy will discuss the latest findings in a laundering durability study that she conducted to determine the useful life of a proprietary, micro-encapsulated active cooling and technology finish segment.
AATCC, headquartered in Research Triangle Park, N.C., USA, provides test method development, quality control materials, and professional networking for members in about 50 countries throughout the world.
Adidas expects sales to increase by 8% in 2019
Adidas expects its sales to increase at a rate of between 5 percent and 8percent on a currency-neutral basis in 2019 with significant sequential top-line acceleration during the fourth quarter. The company’s gross margin is forecast to increase to a level of around 52.0 percent in 2019. The operating margin is expected to increase between 0.5 percentage points and 0.7 percentage points to a level between 11.3 percent and 11.5 percent.
In the third quarter, the company’s currency-neutral revenue grew by 6 percent. This improvement reflects high-single-digit growth in Sports Performance, driven by increases in the training, running and outdoor categories. Its gross margin increased by 0.3 percentage points to 52.1 percent (2018: 51.8 percent). The brand’s net income from continuing operations decreased by 2 per cent to € 644 million. It’s revenues in the first nine months of 2019, increased by 5 percent on a currency-neutral basis.
