Indian economy grows fastest at over seven per cent
The Indian economy grew 7.7 per cent year-on-year in January-March.The figure surpassed China’s growth rate of 6.8 per cent in the January-March quarter, confirming India as the fastest growing major economy.
India also reported 4.7 per cent growth in annual infrastructure output in April, signaling a recovery after it slipped to a three-year low of 4.2 per cent in 2017-18. Construction activity jumped to 11.5 per cent during January-March after a 3.9 per cent drop in the year-ago period.
The faster pace of growth in the latest quarter might also strengthen expectations of an interest rate increase.
India’s recovery could be threatened by higher global crude oil prices. India meets 80 per cent of its oil needs from imports. Higher oil prices have already pressured the rupee.
Alongside, rising global trade tensions due to the imposition of import tariffs by the United States could moderate global trade growth, tempering Indian exports.
However, growth is likely to get a boost from monsoon rains, potentially brightening the outlook for agricultural output. Monsoons deliver about 70 per cent of India’s annual rainfall and are the lifeblood of its economy, spurring farm output and boosting rural spending.
Economic growth could reach 7.4 per cent in 2018-19.
Angora rabbit fur on the firing line
Angora rabbit fur is being used for sweaters, hats, gloves, and more.
Angora rabbits have long, soft fur. Most angora comes from rabbits on Chinese factory farms. The rabbits writhe in agony as workers tie them down and rip out their fur.
Brands like Calvin Klein, H&M, Marks & Spencer, Tommy Hilfiger, and Topshop have dropped angora wool from their clothing lines. So far more than 300 major retailers have banned angora.
Since then Chinese exports of angora have dropped steadily and are down 85 per cent.
Then there is mohair. Most of the world’s mohair comes from farms in South Africa. Shearers throw angora goats, cut off swaths of their skin, and cut conscious animals’ throats. Workers pick up goats by the tails, likely breaking them. One farmer dumped rams into tanks of cleaning solution and shoved their heads into the liquid, which would poison them if they swallowed it.
Workers punch holes in goats’ ears with pliers, causing the animals to scream. The goats bleat and roll around when they’re castrated without painkillers.
Like in the case of angora, the largest clothing companies in the world— Zara, Topshop, Gap, Banana Republic, Uniqlo, Esprit, Mango, Old Navy, Athleta, and H&M—have banned mohair.
Bayer to acquire Monsanto
German-based Bayer plans to take over US seeds group Monsanto. The deal would create the world’s largest integrated pesticides and seeds company but would limit the number of competitors selling herbicides and seeds in Europe.
Bayer’s move to combine its crop chemicals business with Monsanto’s industry-leading seeds business is the latest in a series of major agrochemicals tie-ups.
If Bayer does not close the deal by June 14, Monsanto could withdraw from the takeover agreement and seek a higher price.
It has already secured the go-ahead from key jurisdictions, including the European Union, Brazil and Russia. Apart from the United States, it still needs clearance in Canada and Mexico.
Bayer said synergies from folding Monsanto into its organisation would be about 300 million dollars below its previous target because it will have to sell more businesses than initially expected.
Bayer has a plan to create combined offerings of seeds and pesticides with the help of new digital farming tools, which include sensors, software and precision machines.
There are concerns the proposed acquisition could reduce competition in a number of different markets resulting in higher prices, lower quality, less choice and less innovation.
A merger would also reduce competition in the market for the genetic traits behind herbicide tolerance, which are typically licensed out to third-party seed companies.
Asia buffeted by trade tensions
Asia's major manufacturing hubs are facing a rocky ride from rising global trade tensions.
The biggest risk for China's manufacturing sector stems from a potentially crippling trade war with the United States. Forthcoming trade tensions could put pressure on trade and related supply chain activities. Investment decisions in potentially affected industries have been delayed.
New export orders for Chinese factories have fallen for a second straight month.
A full-blown Sino-US trade war will ripple through global supply chains, hurting economies from Europe to Mexico through to Australia and Japan.
Any stress on Japanese exports will put more pressure on the economy which contracted at the start of the year. Japan’s domestic business growth is slowing and only a modest pickup is seen in export orders.
Activity in South Korea, another major export hub, contracted for a third straight month as new orders continued to decline, prompting companies to cut staff at the fastest pace in almost a decade.
Taiwan’s factory growth slowed in May to a 22-month low for new orders.
India’s manufacturing sector grew at a softer pace in May, while rising inflationary pressures added to expectations that an interest rate hike is around the corner.
ABG acquires lifestyle brand Nautica
The Authentic Brands Group (ABG) has acquired the lifestyle brand Nautica from VF Corporation, which still includes The North Face or Timberland and Vans.
Nautica is now the group's largest brand, including Spyder. ABG's portfolio increases globally to almost 7 billion dollars in annual sales.
This acquisition brings it closer to its goal of achieving a retail sales split of 50 percent international and 50 percent domestic and reaching 10 billion dollars in annual retail sales by 2020.
Nautica's wholesale business, over 70 US retail stores, e-commerce and product development will be transferred to the operating company of Aeropostale, which is also part of the ABG Group.
It now works for both the clothing brand and Nautica. Aeropostale and Nautica together generate annual sales of approximately 2.4 billion dollars worldwide.
Abercrombie‘s net sales rise
Abercrombie's net sales rose nearly 11 percent to $730.9 million. The company expects its current-quarter revenue to rise in the high-single percentage digits.
Net loss attributable to Abercrombie & Fitch narrowed to $42.5 million from $61.7 million a year earlier.
Abercrombie's eponymous brand has seen higher demand this year after having struggled for the past five years, thanks to revamped stores and new advertisements.
Both the Abercrombie and Hollister brands topped Wall Street expectations for same-store sales, while the company's net loss remained much smaller than expected.
AAFA criticises US govt’s tariffs on imports
Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, criticised the use of punitive tariffs by the Trump administration on U.S. imports of steel and aluminum from Canada, Mexico, and the European Union.
According to him, this move is likely to result not only in inflationary costs, but also retaliation by the country’s trading partners.
Canada, the European Union, and Mexico are the three largest markets for exports of Made in USA apparel.
Canada and the EU are the top two markets for Made in USA footwear.
The ability to export Made in USA product is essential for the health of the domestic manufacturing industry.
The tariffs will be detrimental for American companies and workers. They will not only inflate prices throughout the economy but also hurt job growth.
US retailer PVH revises outlook
Recently, PVH the company behind typical American fashion brands has increased its full-year earnings outlook after posting better than expected revenue gains for the first quarter.
According to the company the sales in the three months up to May 6 rose 16 per cent from a year ago to $2.3bn. Earnings came in at $2.29 a share, versus 89 cents in the same period a year ago, thanks in part to a 20 cent-per-share boost from favourable currency exchange rates. Net income attributable to the company soared to $179.4m from $70.4m a year ago.
Tommy Hilfiger revenue rose 21 per cent to hit $1bn, alongside a 25 per cent jump in the brand’s sales in foreign markets to $655m. Calvin Klein revenue rose 18 per cent to $890m from a year-ago, with international sales ringing in 25 per cent higher at $475m.
Emanuel Chirico, PVH chairman and chief executive, stated the company is pleased with its first quarter 2018 results, its performance underscored the power of the diversified business model and the continued momentum in global designer lifestyle brands, Calvin Klein and Tommy Hilfiger.
PVH says it would lift its full-year earnings outlook, despite expectations that the foreign-exchange tailwinds would subside. Its previous guidance for earnings between $8.76 and $8.86 a share was raised to $8.81 to $8.91 a share.
Demand for PVH’s recognisable brand names has helped it weather tough times in the retail sector, among changing shopping habits and consumer tastes. After rising 52 per cent last year, their shares are up another 14.12 per cent so far in 2018.
Tokyo Girls Collection has its first US runway
Tokyo Girls Collection, a semiannual fashion show that attracts tens of thousands of women in arenas, had taken its event to New York for the first time on 31st May 2018.
The Tokyo Girls Collection, or TGC, event attracts an average of 30,000 spectators in arenas and is streamed live on the Internet. Models, singers and celebrities parade the latest casualwear from Japanese and international designers on the runway, while spectators can order the clothes on their smartphones instantly. TGC is promoted by Japan’s foreign affairs ministry and the nation’s tourist agency. TGC has been focused on international implementation of Tokyo street culture which is a semiannual event that started in 2005, taking place in spring and autumn.
TGC is one of the major fashion festivals in history. It has been held twice a year since August 2005 with the theme of international implementation of Tokyo street culture. A total of about 100 popular Japanese models perform in a fashion show displaying Japan street fashion. The festival also features live performances by important artists, a special stage filled with popular guests, booths where participants can touch and try popular items, and various other contents that are unique to TGC.
Moda Operandi expands to menswear
Moda Operandi, the online retailer that allows for consumers to preorder looks straight from the runway, is expanding to menswear. The company informed in a statement that it aims to cater to luxury minded men, offering them a curated selection of the season’s best offering.
The men’s section of Moda Operandi’s website will feature more than 50 brands, including Prada, Maison Margiela, Givenchy, Ralph Lauren, Thom Browne, Off-White, Balmain, Lanvin and Burberry. The launch is happening just in time for Milan and Paris men’s fashion weeks in late June.
Deborah Nicodemus CEO of Moda Operandi, says that the company has identified a gap in the market for men to experience the same exclusive opportunity. It saw strong interest in the menswear category over that last two holiday seasons, which led us to the decision to introduce Men's as a standalone business.
This is the third time in two years that Moda Operandi expands to a new market. Recently, the company also started selling home goods and fine jewelry, after securing 165 million US dollars in growth capital from C Ventures, K11 and Apax Digital in 2017. In total, the company has raised over 297 million dollars in funding.
Moda Operandi was launched in February 2011. Collections from some of the world’s top designers are made available for preorder at the website, months before they are available anywhere else.
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Menswear brands and buyers upbeat about spring 19 at Pitti
Despite tough market conditions on the high street Menswear brands and buyers are feeling positive about the spring 19 season, and independents are keeping their budgets in line with last year.
The spring 19 trade show season starts on 12 June at Florence exhibition Pitti Uomo. Menswear sources have told Drapers they are keeping more budget in-season to react to the weather and are generally feeling optimistic about the season ahead.
Debra McCann, owner of The Mercantile in London’s Spitalfields, warned that economic uncertainty and changeable weather had resulted in a high level of unpredictability in the market. Ben Tattersall, sales manager at agency Just Consultancies, stated that despite a challenging year for retail, he expects the mood to be upbeat at trade shows. Likewise, Ravi Grewal, co‐owner of menswear independent Stuarts London hopes to be surprised at the upcoming exhibitions.
On the other hand Hoggett expected the casual appeal of retro sportswear to stay popular for spring 19.
Chandler agreed athleisure and looser styles would stay strong, and men would also become braver in their choice of colour, texture and print.
India International Garment Fair 2018 in July
The 61st India International Garment Fair 2018, to be held on 16-18 July 2018 in New Delhi, India is one of the Asia's largest and most popular apparel and clothing trade shows. A perfect amalgamation of fashion, design and quality, the show brings together professionals and industry experts to share valuable experienced knowledge and innovative ideas to make advanced this sector in the world market.
Profile of exhibit based on Blazers, Blouses, Cardigan, Cashmere Products, Casual Wear, Children's Wear, Denim Wear, Infants' Wear, Jackets, Knitwear, Ladies Wear, Men's Wear, Pullover, Shirts, Shorts, Silk Garments, Skirts, Suits, Sweater, Sweat Shirt, T-Shirt, Trousers, Vest, Wool Garment, Designer's Labels, Bridal Wear, Cocktail Dresses, Evening Dresses, Leather Garment, Fur Garment, Maternity Wear, Uniforms, Work Clothes, Outerwear, Swimwear, Body Wear, Skiwear and Down Coats.
Visitors like CEO, Managing Director, General Manager, Chief Manager, Sales, Marketing, Planning, Department, Engineer, Technician, Consultant, Coordinator, Supervisor, Financier, Accountant related to the textile industry are the target industry.
Global Union news from IndustriALL
IndustriALL’s steering committee meeting of the ICT, held on 28-29 May 2018, discussed global industry trends; evaluated current activities and future strategies to strengthen union power and respond to challenges faced by the trade union movement. 24 countries that will come under the scrutiny of the Committee on the Application of Standards for alleged violations of international labour conventions. Algeria, Belarus, Brazil, Haiti, Mexico, Nigeria and the Ukraine are few of the countries where IndustriALL Global Union trade union affiliates are directly affected.
The Committee on the Application Standards (CAS), checks how International Labour Organisation (ILO) standards ratified by member states are being applied.
The CAS will examine cases on violations of the fundamental ILO Convention 87 on Freedom of Association and Protection of the Right to Organise in Algeria and Mexico.
Belarus will be inspected under Forced Labour Convention 29, whereas Brazil and Nigeria, will come under examination for breaching ILO Convention 98 on the Right to Organise and Collective Bargaining Convention.
The CAS will address violations of multiple Conventions on hours of work and weekly rest (Numbers 91, 14, 30, 106) in Haiti and the Ukrainian government will be invited to supply information on violations of labour inspection Conventions 81 and 129.
China now the largest export market for Ethiopia
Export to China in the first six months of the Ethiopian Fiscal Year 2017-18, which started July 9, accounted for 17.3 per cent of Ethiopia's total export, overtaking Somalia, now accounting for 14.32 per cent.
Ethiopia's largest export destination in 2017 was neighboring Somalia, which imported 269.3 million U.S. dollars' worth of goods accounting for 9.26 per cent of Ethiopia's total exports.
According to the Ethiopia Ministry of Trade (MoT) Ethiopia exported 239.82 million U.S. dollars' worth of goods to China in 2017, accounting for 8.25 per cent of its total exports. The second largest export destination for the East African country. Ethiopia exported about 2.9 billion U.S. dollars’ worth of goods in 2017.
The revenue was earned from the exports of agricultural products, textile and garment, leather products, minerals, flowers and construction materials.
With Chinese firms located in Ethiopian industrial parks tentatively starting to export industrial goods to China. The volume of Ethiopian exports to China is expected to significantly increase in the coming years.
