Product and service innovations to help US mitigate trade war effects
"The past one and half year has been like a roller-coaster ride for the US textile market. During this period, the market witnessed several ups and downs mainly on account of the Sino-US trade war. Stakeholders Exhibitors at the recent edition of New York Show, wished this war to end quickly and the Sino-US economic and trade relations to resume as before."
The past one and half year has been like a roller-coaster ride for the US textile market. During this period, the market witnessed several ups and downs mainly on account of the Sino-US trade war. Stakeholders Exhibitors at the recent edition of New York Show, wished this war to end quickly and the Sino-US economic and trade relations to resume as before.
Desire to cooperate to sustain trade relations
Since the onset of the US-China trade dispute, the share of the Chinese textiles in the US market has witnessed a substantial drop. An enterprise from Shoaxing attending the show informed the US clients are not only downsizing their Chinese suppliers but also reducing their orders from every Chinese supplier. Small clients are adopting a wait-and-watch approach, while large clients are reducing their number of orders and cutting down the price by a large margin.
Wayne Buchen, Former Operation Senior Manager of Lacoste and Under Armor, emphasised trade relations
between the US and China can never come to an end as both countries have a strong desire to cooperate with each other. This suggests that the Sino-US textile trade would not be stopped due to the ongoing trade war.
Some experts feel it is much harder to purchase from other countries than from China as the country offers a superior supply chain and production technology. In addition, its complete industrial chain, infrastructures, logistics, traffic, and policy environment add value to products Made in China.
Many local American purchasers attending the Show noted that though the trade friction has resulted in loss of money, cost and communication between the two countries, it has enabled Chinese enterprises’ to accelerate their industrial structure, upgrade their products, improve their R&D level and productivity, and upgrade their technical services to strengthen their competitiveness in international competition. The trade friction is thus proving beneficial to China as it is encouraging its entrepreneurs to upgrade their facilities.
Product and service innovations to mitigate trade war effects
Many stakeholders are actively pursuing countermeasures and development solutions. They are focusing on product innovation, and strengthening their range of services. As the head of a Hubei-based home textile enterprise noted, every marketplace had developed its own fixed client group, so price changes or increase were hard to achieve. The linchpin for Chinese textile enterprises to maintain their competitiveness is to produce differentiated products so that clients cannot find substitutes of such a high cost performance ratio.
Many Chinese enterprises emphasize though American clients are capable of purchasing ready-to-wear from Cambodia and Bangladesh, they still rely on Chinese enterprises for fabric supply in the short term.
Artistic Denim Mills aims for a green supply chain
Artistic Denim Mills (ADM) aims at 100 per cent sustainability through the entire supply chain. By partnering globally recognized brands and manufacturers, ADM creates sustainable, ethical raw materials and earth-friendly fabrics that meet a wide variety of demands, such as the comfortable and sculpting properties of four-way stretch. An early pioneer of liquid dye technology featuring less sulfide contents than traditional dyes, the company is selective about the chemicals it uses, choosing those deemed to have a minimal impact on the environment, its employees and consumers.
For example, ADM exclusively uses pre-reduced indigo, decreasing its chemical use by 70 per cent when stacked against conventional denim factories. Rather than distressing denim with harmful chemicals and labor-intensive hand sanders, the company employs computerized laser technology to provide those unique fading patterns the fabric is known for. These lasers also have the added benefit of reducing the use of stones and chlorine during wet processing.
ADM makes denim that’s aniline-free—a non-toxic way of producing the traditional, iconic indigo blue that consumers associate with denim and jeans. Aniline appears on the restricted substance lists of some major clothing brands and retailers. To lessen denim’s impact on the planet and to help create a circular economy in textiles, ADM also uses pre-consumer recycled cotton fibers.
The North Face launches new material
The North Face has launched new material known as Futurelight that aims to create a new paradigm in clothing and protection. The material has been created using a technology known as nanospinning. Nanospinning allows for adjustments in weight, stretch, breathability, durability, texture and constructions for both knit or woven fabrics during the manufacturing process—something the brand said gives it the ability to match products to a variety of activities and consumers.
The first Futurelight collections released by The North Face—the Summit Series, the Steep Series and the Flight series—will include jackets, pants and bibs common to outdoor sports, all produced using nanospinning. In order to ensure the technology would hold up in extreme conditions, the brand enlisted the help of outdoor athletes to field test the apparel in locations around the world.
Futurelight fabric in The North Face’s new collections will also be produced with “industry-leading sustainability. The facing and backing layers in the collection’s three-layer garments, for example, will feature 90 percent recycled materials. The North Face released the Summit Series, Steep Series and Flight Series on Oct. 1 through its own retail channels and through key retail partners.
Government plans apparel cluster and park in Noida
The Union Ministry for Textile and Women and Child Development plans to develop an apparel cluster in the Noida region which will help it to create five lakh new jobs. The cluster will also distribute one lakh cloth bags in the next three months across the district.
Apart from this, the state government has asked the Yamuna Expressway industrial development authority (Yeida) to develop an “apparel park” in Sector 29. This park will be developed with an investment of Rs 5,000 crore in the next three years. It will manufacture all kinds of garments and accessories, including buttons, yarn and other materials at these units.
In addition, Yeida plans to develop a fashion street in the city on the lines of Paris fashion markets. The fashion street will have high-end fashion stores, restaurants and ramps.
Tencel seen as a viable sustainable alternative
Lenzing invites fashion industry players to use more environmentally friendly materials like Tencel and develop a sustainable fashion business. The aim is to introduce Tencel as a basic material for clothing that can be used from natural materials. Tencel is obtained from certified protected forest trees, then processed into fiber, then spun into yarn, then made into material. Through this mainstay fiber, Lenzing wants to make big changes by embracing every stakeholder, including consumers, and in particular also has a mission to support fashion designers to develop better since both Lenzing and fashion designers jointly share positive values about the concept of sustainability to build a more advanced and responsible fashion industry. Tencel is a solution for reducing textile waste, which causes environmental pollution.
The fashion industry is one of the biggest contributors to textile waste in the world. Fabric with fiber has good air circulation, makes clothes comfortable to wear and is able to maintain moisture and skin health. In addition, fabric made of fiber has a more vibrant color, is smooth and biodegradable. A sustainable fashion industry is important for social and economic life, given the current excessive consumption of fashion products that has dominated the world.
Pakistan textile exports up two per cent this fiscal
Pakistan’s textile exports increased 2.3 per cent during the first two months of the current fiscal year. Knitwear exports increased both in quantity and value by 10.7 per cent and 12.8 per cent respectively. Readymade garment exports increased both in quantity and value by 34.6 per cent and 7.5 per cent respectively. Bed wear exports increased both in quantity and in value by 20.4 per cent and 1.2 per cent respectively. The country’s textile exports constitute more than 60 per cent of total exports. Knitwear exports comprise 14.4 per cent of total exports. Readymade garment exports have a share of 12.5 per cent in exports. Bedwear has a 10.7 per cent share in exports.
The industry wants levies on cotton imports removed so that textile exports can go up. Exports fell one per cent during the last fiscal year as a strong negative price effect dominated the positive quantity effect. Exports, however, recovered 2.79 per cent in the July to August period of fiscal 2020.
The textile industry has asked for subsidised gas and electricity rates and tax breaks. Exporters are unclear about the actual energy tariffs for the purpose of quoting prices of products. A special energy package was extended early this year to the erstwhile zero-rated industry to provide it a competitive energy tariff to expand and increase exports.
China’s Jiangsu province acquires textile heft
In the first half of 2019, operating income of the textile and garment industry in the Jiangsu province of China grew 5.3 per cent. Profits were up 6.1 per cent. Cloth output was up 34.2 per cent and chemical fiber output was up 26 per cent.
A series of measures have made Jiangsu's textile industry rank eighth in the country. There are industrial bases in the province covering garments, knitwear, textiles, apparel, suits and trousers. The province is upgrading industries, deepening the structural reforms of the supply side and accelerating the construction of a modern industrial system. Technology centers are being established in leading enterprises, promoting research on and application of advanced technologies. At the same time, garment enterprises are being encouraged to develop personalized customization services via new production methods. Intelligent manufacturing is being implemented. Enterprises are induced to objectively analyze their own strengths and weaknesses and find the best transformation path based on their own situation. They are given guidance and policy support in solving problems, so as to create a good environment for enterprises to carry out the intelligent transformation and jointly promote industrial optimization and upgrading.
The textile industry is a pillar industry of China's national economy and plays an important role in expanding exports, attracting employment, increasing farmers' income and promoting urbanization.
Nylon 6 chip capacity in China up 20 per cent
During the third quarter, nylon 6 chip capacity in China increased by 20.6 per cent. Consumption of nylon textile filament and staple fiber tumbled in 2019 while that of engineering plastic and film only grew moderately.
From January to August 2019, nylon 6 chip imports reduced by 11.2 per cent. The proportion of imports from Taiwan fell from 42.2 per cent to 21.4 per cent. As for the significant decrease in China’s imports from Taiwan, it was mainly due to the fact that China started production of huge volumes of new high-speed spinning chips. So with much cheaper prices (also considering transportation fees, shipment terms etc.), nylon 6 chips produced in the Chinese mainland replaced those from Taiwan gradually. Imports from Russia and South Korea decreased slightly. However, imports from Thailand, Saudi Arabia and Malaysia increased significantly, and imports from Vietnam, Belarus, and Germany increased slightly. Thailand surpassed Russia and became the second largest source of nylon 6 chip imports for China. There was also notable growth from Saudi Arabia. In the second half of 2018, imports from Saudi Arabia expanded significantly.
Should this trend continue in future, new caprolactam plants will open and the cost of feedstock will fall further.
Rising input costs put pressure on Pakistan’s textile segment
Input costs in Pakistan's manufacturing sector and particularly the export sector are high. For one, utility rates are higher than in competing countries. Purchase agreements are forged with fuel exporting countries or with domestic private sector terminal operators at higher rates than are available to other countries as well as due to poor performance within the energy sub-sectors.
In the first week of June, a 17 per cent sales tax was imposed with the intention of plugging the loopholes that account for lower revenue collections than the sales tax refund applications. However, 70 per cent of semi-finished products emanate from indirect exporters and is supplied to direct exporters. This has raised the cost of inputs, making the country’s exports uncompetitive in the international market.
The textile sector in Pakistan employs 40 per cent of the industrial labor force, accounts for 59 per cent of total exports on an average, and is therefore regarded as the most important manufacturing sector of the country with the longest production chain and the potential for value addition at each processing stage. However concessions announced for the textile sector, which has the highest export earning capacity in the country, have not yet been implemented.
Lenzing launches botanic shoe in India
Lenzing has entered Indian footwear with the botanic shoe. The launch of botanic shoe comes at a time when India has committed to ending the use of single-use plastic. Tencel fiber and the material construction to create the shoe require no special care, making it all season friendly. The shoe has a healthy mix of performance, sustainability and versatility. It has a strong presence of Tencel features such as sustainability (raw material wood from responsibly managed forestry, environmentally friendly production processes, compostability), comfort (breathability, smooth to the skin) and performance (moisture management, reduced bacteria growth). Tencel for footwear is conceptualized using source ingredients from nature.
Lenzing is looking at partnering footwear brands in India that are looking for sustainable solutions with strong performance features. The possibilities range from the textile fiber in the upper material, as a filling material or a nonwovens fleece in the inner sole through to Lenzing Lyocell powder in the outer sole or the padding. Likewise, shoelaces and the supporting material for zippers are possible. The more shoe components are made of Tencel Lyocell/modal fibers, the closer is it possible to get to the vision of a bio-degradable shoe.
Globally, Lenzing has partnered with brands such as UGG, Converse, Native, Gant, TOMS, Allbirds, Alceste, Veja, H&M, Soludos and Leguano for sustainable footwear.
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H&M and Pringle launch knitwear
H&M has launched a knitwear collection with Pringle. There is a cosy hoodie in wool with a Pringle font emblazoned down each sleeve. Knitted midi-length dresses have a directional turtleneck zip detail and a slashed thigh that is ideal for throwing on top of gym leggings. There are also knitted trousers and sweater combos. H&M has reworked different scales and colourways of the argyle. Inspired by streetwear styling and sport influences, the Swedish fast fashion brand developed new designs around the classic pattern, and introduced an acid yellow color as a highlight accent which brought the whole collection together. The collection uses raw materials such as organic cotton, recycled polyester, viscose and wool. The collection features Pringle’s heritage highland argyles and jacquards reimagined with a sporty twist.
Scotland’s brand Pringle was founded almost two centuries back and is known as the oldest British fashion brand. H&M has also launched a collection from recycled materials like recycled polyester, recycled brass, recycled zinc and a blend of Tencel and Refibra. Inspired by masquerade balls, the collection includes eveningwear such as softly tailored check separates, figure-fitting dresses and oversized hoodies, in an earthy color palette of light neutrals, black, with pops of orange and red.
Archroma joins ZDHC Foundation
Archroma, a global leader in color and specialty chemicals towards sustainable solutions, has joined the ZDHC Foundation as a contributor.
This decision is in line with Archroma’s commitment to continuously challenge the status quo in the deep belief that it is possible to make the textile industry sustainable. Archroma develops innovations and system solutions developed in compliance with this commitment and aims to help textile manufacturers to optimise productivity and/or value creation in their markets.
Archroma is supporting the ZDHC Manufacturing Restricted Substance List (ZDHC MRSL) and the related “pyramid” conformity system designed to eliminate duplicative approaches. This is the fundamental base to the success of ZDHC and all stakeholders of the textile value chain.
Archroma has already uploaded and published a first batch of more than 1020 products on the Chemical Module of the ZDHC Gateway, the online search tool that enables stakeholders in the textile value chain to evaluate the ZDHC MRSL conformance level of chemical formulations used in their production processes. These products are all bluesign® approved and are therefore associated with the highest level of confidence in ZDHC MRSL conformance. More products will be added in the ZDHC Gateway in the weeks and months to come.
Sustainability and innovations rule Premiere Vision Paris F/W 2020-21
"Held from September 17-19, 2019, latest edition of Premiere Vision in Paris showcased innovations for F/W 2020-21. Well-attended by top international buyers and insiders, the show held a number of meetings and networking activities. Focusing on sustainability, the fair displayed several new age materials and products in its Smart Creation area. One of them was Reda Flexo, a new merino wool fabric with an eco-friendly stretch fiber added to it. "
Held from September 17-19, 2019, latest edition of Premiere Vision in Paris showcased innovations for F/W 2020-21. Well-attended by top international buyers and insiders, the show held a number of meetings and networking activities. Focusing on sustainability, the fair displayed several new age materials and products in its Smart Creation area. One of them was Reda Flexo, a new merino wool fabric with an eco-friendly stretch fiber added to it. Also on display were cotton fabrics produced with Supreme Green Cotton, a variety of OGM free cotton grown by Greek manufacturer and cotton grower Varvaressos, whose cotton fields are irrigated according to a pioneering satellite-powered drip irrigation system using Israeli innovative technologies that customise water pouring and help save up to 40 per cent water.
Tanned leathers and biodegradable fabrics
Innovations by leather manufacturers and tanners included Evolo by Sciarada. This is a new variety of leather
which is tanned by reusing raw materials without additional chrome. This reduces the level of water consumption and recycling leather from the tanning process. Other tanners who offered their environmentally friendly leathers included Dani, Chiorino and Raynaud.
Eastman Naia Cellulosic Yarn showcased 100 per cent Naia fabrics that are more biodegradable. The brand also offered new blends with other sustainable fibers such as cellulosic fibers, wool, bamboo and silk, while offering sports mesh entirely made with Naia.
Sportswear and outdoor brands displayed their performance and eco-friendliness fabrics. Prominent among these was Polartec, the polar fleece specialist, which showcased a special material that aims to be more sustainable as it is trying to cover its fleece with two matelassè strata that prevent the microplastic fibers to be released when washed.
Wool and other fabrics for winter
Sensitive Fabrics by Eurojersey offered a wide selection of prints, which though similar to checked and herringbone wools, are doubled with other Sensitive Fabrics on the inner side to enable them to be used for winter jackets and coats also.
Estethia G.B. Conte, a division of Marzotto Group, launched new line technical wools known as Wool+ which can be worn during commuting and other daily activities. . Redaelli Velluti presented its Super Velvet three-layer waterproof fabric and also a selection of Primaloft eco-friendly materials that are worked as fake-furs, are super soft and as beautiful as natural ones.
Schoeller launched it Proearth collection of biodegradable textiles designed for lifestyle, fashion and outdoor categories. These textiles are made with virgin polyester optimised for biodegradation and tested to biodegrade at faster and better rates than competitive offerings. For this fall the offer includes fabrics for jacket, pant and lining material qualities with various color options.
Bio-technical treatments on display
Denim exhibitors displayed innovative bio-technical treatments such as those developed by M Blue including Avocado Finish and Lanolin Finish adding softening properties, and Stay Fresh, adding odor-control properties to garments. Shinjentex presented a special enzyme wash that requires no further garment washing after the treatment. Also new was the selection of denims offered by Hemp Fortex that also uses fibers like hemp, wild silk and yak hair.
Innovations also ruled the products displayed by shirting specialists. Canclini, for instance, offered Canclini 1925, a series of more casual shirting fabrics available in different weights, patterns and weaves, such as checked fabrics for over shirts and leisure time shirts, and in chambray and lightweight indigo denim alternatives.
Pakistan needs to evaluate policies while vying for top slot in global textile market
"The war for the best apparel maker crown is getting hotter with Pakistan joining the race alongside Vietnam, Cambodia, India, Bangladesh. However, as the country aspires to reach the top, it first needs to check the availability of a suitable product category, materials required, labor cost and skill, workers’ rights, compliance, access to ports, manufacturing equipment, tariff structures, distance to end market and most importantly production capacity. The country also has to the face the additional obstacle of government taxation."
The war for the best apparel maker crown is getting hotter with Pakistan joining the race alongside Vietnam, Cambodia, India, Bangladesh. However, as the country aspires to reach the top, it first needs to check the availability of a suitable product category, materials required, labor cost and skill, workers’ rights, compliance, access to ports, manufacturing equipment, tariff structures, distance to end market and most importantly production capacity. The country also has to the face the additional obstacle of government taxation. To attract government’s attention on this issues, some apparel manufacturers are going on strike and even shutting down temporarily.
Lack of government support hinders growth
One such company, Shahkam Industries exporter of hoodies, track pants and polos to brands like American
Eagle, Zara, Primark, Pull and Bear, Forever 21 and Urban Outfitters. Operating since 1992, Shahid Bhatt, CEO of the company believes Pakistan is very competitive as it has excellent raw material, readily available yarn and factories which, after the lifting of quotas in 2005 and the cotton crisis of 2009 survived. He says, the main obstacle in their progress is the government’s lack support. Bhatt reveals that Vietnam gets duty free access to the US, whereas Bangladesh has the same situation as Pakistan. Additionally, their industry is preferred by their government and given protection because it forms 80 per cent of their industry. He feels the only reason the Pakistani industry is able to survive is because other places import their fabric/raw material and Pakistan makes on its own.
Butt also believes the government needs to incentivise downstream value addition. It needs to punish export of raw material (yarn and cotton) and compel value addition of them. If they don’t, exports will remain low – our yarn is sometimes being sold to Bangladesh and other Asian countries and they use it to compete against Pakistan’s apparel, companies.
Increase in sales tax to make things worse
As per Awais Ashraf, Head of Marketing, Interloop, another successful manufacturing company that focuses on hosiery and active wear, the new 17 per cent sales tax is likely to increase prices of the raw material, leading more people to import their raw materials, killing the local industry. Pakistan also needs to focus on vocational training and literacy. Untrained labourers cost margins to exporters as they make mistakes.
The prices of electricity and gas are also increasing, leading to bigger companies like Interloop trying to generate their own power. However, other countries facilitate their industries with electricity and gas. They get uninterrupted supply and industrial zones are created, with duty free benefits.
Pakistan’s infrastructure too isn’t sophisticated enough to compete with larger rivals. Bangladesh is the top contender followed closely by Vietnam and India. Though the country has abundant materials and labour it first needs to tick off other requirements with the support of the government. Overall, the country has huge potential in the apparel sector. However, to reach the top, it needs to first reevaluate its policies.
