China’s Dalian garment fair gets positive response from industry
The Dalian garment and textile fair was held in China from September 7 to 9, 2019. It attracted over 800 enterprises from countries like the US, Denmark, Canada and Japan. This high-level fair saw both purchase agents and buyers interact especially at the matchmaking conference between domestic and overseas purchasing agents and exhibitors.
This fair in the Dalian region of China has strengthened exchanges and cooperation with other countries in the field of textiles and apparel over the past 30 years, promoting the upgrading and development of China's textile and apparel industry and building a platform for foreign economic and trade cooperation. In recent years, Dalian’s textile and apparel enterprises have made outstanding achievements in high-end customization, intelligent manufacturing, e-commerce, overseas cooperation and responsible development. It has become an important channel for domestic enterprises and brands to enter the world as well as an important window for international brands to connect with the northeast Asian market.
China is the world’s largest garment and textile production country as well as the largest garment and textile trade country. In 2018, China’s textile and garment exports were up 3.7 per cent year-on-year and imports were up 6.4 per cent year-on-year.
British Fashion Council launches Institute of Positive Fashion
The British Fashion Council (BFC) plans to launch the Institute of Positive Fashion (IPF) to create an industry blueprint by bringing together expertise from different areas to help brands in the industry navigate an often confusing to understand topic and kick-start a much-need comprehensive step-change. Informed by research, expert opinion, industry insights and the significant industry experience of individual businesses and organisations, the power of collective effort will amplify independent activity.
The IPF will galvanise opinion and industry best practice across the fashion industry. It will accelerate progress made in all areas of sustainability that will be impactful and lasting, by creating educational programmes and campaigns aimed at both industry and the public. The aim being to catalyse and expedite change. The IPF ambition has been pushed forward by the Positive Fashion Committee since early 2019. The next quarter will see further development of the programme, that will build on the existing resources of the Positive Fashion Committee.
The BFC takes its role in shaping a truly sustainable industry for future generations seriously. As we build momentum we encourage and welcome participation and invite all parties to register their interest with us – This email address is being protected from spambots. You need JavaScript enabled to view it.
To coincide with London Fashion Week, DHL, in association with the BFC, have commissioned a White Paper highlighting the importance of sustainability in the fashion industry. The paper provides businesses with easy to follow recommendations ensuring positive fashion remains at the heart of the industry. The White Paper will be launched on the British Fashion Council’s website on Friday 13th September.
London Fashion Week to include events curated by BFC
For the first time, London Fashion Week will include activities and events curated by the BFC in partnership with key retailers, brands, partners and cultural institutions to engage communities throughout the capital to get involved and capitalise on the success of this global event to reach new audiences.
The BFC has curated a schedule of over 66 brands, 74 stores and 170 events all taking place between Friday 13th and Tuesday 17th September. This schedule is an extension of London Fashion Week, which for the very first time will open its doors to the public at the main hub, The Store X, 180 Strand.
It aims to inspire the public and makes #LFW a cultural city-wide celebration that will introduce fashion to a wider pool of people who may not have previously engaged with it, driving footfall into the capital, increase revenue opportunities for all businesses and celebrating the creativity, diversity and openness that makes the capital so unique.
33rd edition of Collection Premiere Moscow ends on a successful note
The 33rd edition of CPM – Collection Premiere Moscow ended on a successful note on September 06, 2019. Around 1,300 brands from 30 countries exhibited their collections for the spring/summer 2020 season in 16 halls of the Expocentre exhibition grounds. The exhibition attracted around 21,300 professional visitors from 50 countries with a focus on Europe and South Asia.
International exhibitors and professional buyers experienced an impressive meet and greet with Russian VIPs at the opening ceremony on 3 September 2019: welcoming the tradeshow visitors, Russian theatre and film star Maksim Averin heralded in the new season of ordering, catwalk shows and business forums. He emphasised the impressive size of the tradeshow and modelled in the catwalk show finale at the end of the opening event. Also making an appearance on the catwalk were the five winners of the World Fashion Channel – New Model Show project in cooperation with CPM.
An important premiere in the accompanying line-up was ‘Shop & Retail Solutions’ with a focus on shopfitting, retail fittings, retail marketing and technologies to support the development of the fashion retail trade. On 3 September lectures and workshops on this topic were organised by the online platform ‘retail.ru’. Speakers included Anna Lebedewa (Popai Russia), Marina Kazakova (Woodi Bureau), Michail Gusmanov (NLT), Konstantin Nosov (OZON) and other experts.
The Russian Fashion Retail Forum presented best innovations and technologies for the fashion retail sector. There was a particular focus on the challenges of the digital transformation of Russia’s fashion retail sector. From the current market situation to the most important development phases that require the introduction of digital technologies, all relevant topics were covered. Leading top managers and experts from RFRF co-organisers like ITMM GmbH, Fashion Consulting Group and PROfashion Consulting also presented their current analyses and forecasts for the coming season, as well as detailed presentations on the digitalisation of the fashion retail sector and how to prepare for Industry 4.0.
Countries vie to be the next apparel manufacturing destination after China
"With both Bangladesh and Vietnam registering steady export growth, competition between the two countries to become the next manufacturing destination alongside China is becoming intense. Statistics reveal, Bangladesh is the second largest and Vietnam the third largest apparel exporter in the world. While Bangladesh is known for its ability to manufacture low-end items at the cheapest rate with acceptable quality, Vietnam is more value-oriented with strong backward linkage and more educated workforce."
With both Bangladesh and Vietnam registering steady export growth, competition between the two countries to become the next manufacturing destination alongside China is becoming intense. Statistics reveal, Bangladesh is the second largest and Vietnam the third largest apparel exporter in the world. While Bangladesh is known for its ability to manufacture low-end items at the cheapest rate with acceptable quality, Vietnam is more value-oriented with strong backward linkage and more educated workforce.
Investments in the energy sectors trigger price war One of the major factors driving growth of industries in
Bangladesh is the availability and price of its electricity. Most industries in Bangladesh produce their own energy through captive power plants. Though the sector is currently suffering due to a shortage of gas supply, it is soon set to revive as huge projects including 2.4-gigawatt (GW) Rooppur Nuclear Power Plant are being developed by the government. These power plants will increase the generation capacity of the country significantly which is at approximate 16,000 MW now.
Just like Bangladesh, Vietnam government is also investing billions in its energy sector has set out $148 billion worth of investments to increase power generation and develop electricity network, with $40 billion to be spent in the period 2016-2020, of which 75 percent is to be directed to power sources and 25 percent to grid development.
These initiatives have also triggered a price war between them. While Vietnam offers the lowest gas price compared to other garments manufacturing countries, Bangladesh has regulated its gas price three times in the last decade as a result the utility cost of the industries rose higher than Vietnam by some margin.
Bangladesh offers low cost; Vietnam shorter lead times
Statistics from McKinsey apparel CPO survey 2017, reveal, Bangladesh is likely to be the top country over the next five years in garments export. The market is expected to grow annually at 7.0 per cent (CAGR 2019-2023). Vietnam market is expected to grow annually by 8.8 per cent (CAGR 2019-2023). CPOs mainly preferred Bangladesh due to its ability to produce bulk amounts at a cheap rate. However, as the wages increased in the last five years now.
One of the key factors that buyers are concerned about is the shipping time. Although the shipping time of these two countries are almost similar, Vietnam is quicker than Bangladesh which still has to depend on imported cotton, yarn and fabrics (specially woven) which adds to its lead time. The average lead time from Bangladesh to EU and USA ranges from 90 to 120 days whereas from Vietnam it is 50 to 60 days which clearly puts Vietnam ahead.
Sustainability Issues
As stakeholders are increasingly emphasising on sustainable practices, sustainability is becoming a major concern as an exporting industry. Though there have been some major accidents in Bangladesh like the Rana Plaza fire disaster, the country has improved significantly in the last five years and now leads green factory industry in the world. On the contrary, Vietnam doesn’t have many green factories. Its carbon dioxide emission ton per capita was 2.29 compared to Bangladesh 0.59 in 2017.
Hence, while Bangladesh scores on some parameters, Vietnam scores on others. Therefore, it is difficult to decide the next manufacturing partner of China. Not only are both developing at a rapid pace but also they have taken consolidated steps to incorporate sustainability in operations. Now, the only challenge that they need to deal with is increasing costs of business practices and other sustainability issues.
Bemberg showcases unique range of materials at Premiere Vision Paris
Bemberg™ by Asahi Kasei showcased a unique range of materials by its premium partners within the Smart Creation area @Premiere Vision Paris
Bemberg™ by Asahi Kasei showcased a unique range of materials developed by its premium partners within the Smart Creation area @Premiere Vision Paris. This entire range of fabrics has been developed by manufacturers from across the world including Ekoten, Euromaglia, Fiveol Textil, Infinity, Ipeker, Jackytex, Lanificio Europa, Le tinto by Stylem, Matias-Araujo, SMI Tessuti, Sidonios Knitwear, T.B.M Group, Tessitura Uboldi Luigi, TINTEX Textiles as well as the luxury linings from Brunello, Gi Tessil Foderami, Gianni Crespi Foderami, Manifattura Pezzetti and Tessitura Marco Pastorelli.
For more than 80 years, brand Bemberg™ has shaped a new future for smart innovation through heritage, research, knowledge and expertise to deliver the new face of Bemberg™: an original material for modern living. Founded by Asahi Kasei, Bemberg is the sole maker of this one-of-a-kind, matchless, high-tech natural material, with a unique and precious touch and feel.
Nicosia to return to ICA stage at Liverpool 2019
Joe Nicosia, Global Platform Head-Cotton, Louis Dreyfus Company, will return to the International Cotton Association’s (ICA) stage at its upcoming Liverpool 2019 Trade Event that will be held in October 2019.
Nicosia says: This year's ICA meeting comes at a crucial time for the world’s cotton industry. The year ahead is full of uncertainty and challenges. There has rarely been a time when clear thinking and analysis is more important for the global cotton trade than it is now.
Liverpool 2019 will be held from October 09-10, 2019 at the Crowne Plaza and St George’s Hall in Liverpool, UK. The event has already attracted sponsorship from 17 companies and 500+ delegates from all sectors of the cotton world are expected to attend.
Trade dispute to boost Vietnam’s GDP, predicted to grow 6.8 per cent this year
Hanoi-based SSI Research has revealed that Vietnam, a steady economic out performer in Asia, expects its GDP to grow by around 6.8 per cent this year. This growth could be attributed to spillover from the Sino-U.S. trade dispute and a discovery that its economy was previously larger than once thought.
Daunted by US tariffs on goods shipped from China, several manufacturers are moving to Vietnam. They can produce and ship the same goods from just across the border without paying US tariffs on a total $550 billion in goods made now in China. Low labor costs, pro-investment policies and lack of trade friction with the United States had already made Vietnam attractive to foreign factory investors.
Adding to its appeal, Vietnam is on track to enter a trade pact with the European Union after joining an11-country Trans Pacific Partnership free trade deal this year. Also, Vietnam is encouraging investment by software and high-tech hardware.
Uzbekistan textile exports touch $2 billion
The ‘Global Textile Days in Tashkent 2019’ forum is being held in Tashkent from Sept 9 to 3, 201. As per Ilhom Haydarov, Chairman of Uzbek Textile Industry Association, the country plans to increase the volume of its textile exports to $2 billion this year. It exported textile products worth of $1.6 billion last year. The Uzbek government is planning to reprocess the entire cotton yarn produced in the country domestically by 2025 and increase export of textile products up to $7 billion.
The International Cotton Advisory Committee will hold its 8th meeting within the framework of the forum, which will bring together scientific experts and specialists from leading cotton-producing countries of the world, including from China.
Nextt to promote US Cotton
Arun Agarwal, Chief Executive Officer of Dallas-based Nextt is visiting Lubbock this week with a mission to brand and promote Texas and United States’ cotton and interact with cotton researchers at Texas Tech University. He is already promoting Texas cotton as “Lone Star Cotton,” and his recent visit to Lubbock is part of the effort to promote and enhance the market opportunities for High Plains cotton.
Agarwal was impressed with the oil absorbency performance of the cotton based Towelie™ oil absorbent product, which he got introduced to, a few months back. Products like Towelie™ clearly promote the sustainable industrial applications of cotton, added Agarwal Nextt, a $ 500 million company supplies cotton home textiles to giants like Wal-Mart, Costco, Kohl’s, etc. The supplier, who manufactures 600,000 sq. mt. of fabric per day hopes to consume about 500,000 bales of United States’ cotton this year, which can come from the High Plains region.
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German textile industry criticises the ‘green button' seal
The ‘Green Button Seal has been heavily criticised by the German textile industry which terms it as being superfluous and creating duplicate structures to those that already exist. The Green Button Seal for sustainable textiles was recently unveiled by the Gerd Miller, Development Minister of German. The scheme aims to ensure that its consumers can purchase clothes that have achieved certain social and environmental standards, including a minimum wage for textile workers, a ban on child labor, as well as the use of certain chemicals and air pollutants.
Müller was inspired to ensure the social responsibility and safety of the clothing industry after being moved by the 2013 Rana Plaza disaster in Bangladesh. About 1,130 people were killed and 2,5000 injured when a garment factory collapsed in the capital Dhaka, affecting workers who made clothes for major chains like Benetton, Primark, Walmart, and Mango.
The seal has already been applied to products from some smaller German brands, but also large chains like Lidl and Tchibo.
China’s exports decline by 1 per cent in August 2019
China’s exports declined by 1 per cent in August 2019 as its sales to the US tumbled amid the escalating trade war between the two countries. The country’s imports too dipped by 5.6 per cent, leaving a trade surplus of $34.8 billion Economists had forecast these exports to grow by 2.2 per cent, while imports to shrink by 6.4 per cent. Shipments to the US fell 16 per cent from a year earlier.
Weak exports add pressure on China’s already-slowing economy and point to an increased need for its policymakers to beef up stimulus measures. The central bank plans to cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into the economy with the goal of stimulating demand.
The US administration had raised tariffs on Chinese goods at the start of the month, and is set to ratchet up levies further in October and again in December if there is no breakthrough. China and the US will hold face-to-face trade negotiations in Washington in the coming weeks, after a rapid deterioration in relations last month left global investors reeling amid increasing evidence the conflict is harming both countries.
Eastman showcases Naia sustainable fabrics at Redress Design Award 2019
Eastman, the Gold Sponsor of 2019 Redress Design Award showcased its NaiaTM fabric at the final competition in Hong Kong. All finalists at the competition incorporated NaiaTM fabric remnants into their collection pieces.
NaiaTM is made from fully traceable and sustainably sourced wood pulp in a safe, closed-loop process where solvents are recycled into the system for reuse. In addition, it follows an optimised, low-impact manufacturing process with a low tree-to-yarn carbon and water footprint. With a third-party reviewed life cycle assessment compliant with ISO14044, it is listed on the Higg Materials Sustainability Index. NaiaTM is also certified as biodegradable in freshwater and soil environments and is compostable in industrial settings, having received the “OK biodegradable” and “OK compost” conformity marks from TÜV Austria. Due to its inherent softness and luster that blend well with other eco-friendly yarns, Naiacan be the starting point in the sustainability journey of virtually any fabric or garment.
With NaiaTM, Eastman offers a viable eco-conscious choice of materials for sustainable fashion. It is a global advanced materials and specialty additive company that produces a broad range of products found in items people use every day. It has a diverse portfolio of specialty businesses and delivers innovative products and solutions while maintaining a commitment to safety and sustainability. As a globally diverse company, Eastman serves customers in more than 100 countries and had 2018 revenues of approximately $10 billion.
Study deliberates India’s participation in the RCEP and FTAs
"Though majority of the industry leaders believe trade agreements (FTAs) are not beneficial for Indian economy, a new research policy paper by former commerce secretary Rajeev Kher and Ram Upendra Das, Head of Centre for Regional Trade, an autonomous body promoted by the commerce ministry, offers a contrary view. The research paper reviews the most comprehensive of the 16 free trade agreements including the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), India-ASEAN Trade in Goods Agreement, India-Japan Comprehensive Economic Partnership Agreement"
Though majority of the industry leaders believe trade agreements (FTAs) are not beneficial for Indian economy, a new research policy paper by former commerce secretary Rajeev Kher and Ram Upendra Das, Head of Centre for Regional Trade, an autonomous body promoted by the commerce ministry, offers a contrary view. The research paper reviews the most comprehensive of the 16 free trade agreements including the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), India-ASEAN Trade in Goods Agreement, India-Japan Comprehensive Economic Partnership Agreement , India-South Korea Comprehensive Economic Partnership Agreement (CEPA), India-Malaysia Comprehensive Economic Cooperation Agreement (CECA). It acknowledges that Indian imports have increased at a greater pace than its exports however, this growth should be viewed in proportion to total trade in both pre-FTA and post FTA scenario.
The paper helps the commerce ministry to make an informed decision on India’s participation in the RCEP. It
assumes a special significance as India is actively engaged with not only the ten member states of the ASEAN and its six FTA partners - China, Japan, India, South Korea, Australia and New Zealand.
Declining trade deficit between India and ASEAN
Among the five FTAs that were considered, India was most engaged with the ASEAN in size of total trade ($81 billion) and the size of trade deficit ($12.9 billion). In ASEAN’s case, increase in its trade deficit was the least compared to other FTA partners during 2009-18. The country’s trade deficit to the total trade ratio vis-a-vis ASEAN decreased from -17.4 per cent in 2009 to -15.9 per cent in 2018. This is due to the fact that its total trade between India and ASEAN in the post-FTA period compared to the pre-FTA period, the increase in trade deficit is lower, hence the trade deficit to total trade ratio has declined.
The paper also highlights India's exports to all FTA partners primarily comprise non-raw material goods and constitute 78-96 per cent of the total materials. On the other hand, it imports primarily account for non-consumer goods. For ASEAN non-consumer goods was 84 per cent of total import. This can be an ideal export and import structure for India and FTA partners.
Need for better trade statistics
The paper also emphasises on the need for better trade statistics in services as lack of data hampers negotiations on trade in services. It recommends the development of a better understanding of trading, measurement and regulation of services in order to establish India as a major services exporter to take fuller benefits of FTAs. It also recommends a shift in India's engagements from geo-politics to geo-economics and studying FTAs on the basis of reciprocal benefits and employment generation potential rather than from a solely export perspective.
