Sterling Group Holdings eyes Hong Kong stock exchange
Apparel manufacturer, Sterling Group Holdings, is seeking a listing on the stock exchange in Hong Kong. The group, which supplies international apparel brands in the United States and Europe including the UK and Spain, recently ventured into the business uniform market by supplying flight crew uniforms for US airlines.
It’s confirmed sales orders from all customers for the seven months ended September 30, 2018 amounted to around HK$295 million, of which 29 percent are from new customers.
Sterling operates three production facilities, representing 30 percent of its total sales volume .
The group aims to convert more of its outsourcing to in-house production by purchasing additional machinery for production facilities and factories in its base in China and Sri Lanka.
It reported net profit of HK$31.1 million in 2017, a 117 percent increase from 2015, while revenue grew by 45 percent to HK$671 million during the period.
Gap on a discount spree
Gap’s current level of promotion witnessed a decline in April 2018, after a recording a seven-year high in February and March 2018. The company is currently on a discount spree as the brand offers 50 per cent off on almost everything.
To counter this, other rival stores such as American Eagle and Abercrombie also ramped up discounting during the first quarter of 2018.
These stores' rampant discounting goes against the grain of what many other retailers such as Michael Kors, Coach, and Ralph Lauren are doing. These stores have been vocal about their commitment to cut back on markdowns, believing that they are detrimental to the brand's perception among consumers.
Heavy discounting has been the flavor of the past decade as retailers try to appeal to price-conscious consumers scarred by the recession. As a result, consumers have become hooked on discounts and usually aren't willing to pay full price.
New Zealand textile industry faces grim future
The New Zealand textile industry is likely to die within two years due to the increasing preference for using offshore production.
Jobs in textile, clothing and footwear have plunged from 47,000 to just 9500 in a span of 40 years upto 2016 and factories are being priced out of the market by cheaper overseas suppliers.
Each year more and more government departments taking all their uniforms, clothing and safety equipment offshore to be manufactured as New Zealand manufacturers aren't as competitive as those in the Far East.
Statistics from the Ministry of Business, Innovation and Employment showed that in 2009, the export value of tapestries, trimmings and embroidery was $5million, while its value in 2017 was just $2million.
Planet Textiles to discuss microfibers
Planet Textiles will be held in Canada, May 22.
The sustainable textiles summit serves as a place for textile industry members to work together on scaling sustainable innovations, reducing the negative impact of microfiber pollution and developing best practices for chemical management.
There will be breakout sessions and discussions focused on sustainable goals and on efforts to prep industry members to shift to a more circular model in coming years.
Denim makers will also have access to the latest information on dyeing, laundering and water saving techniques to make their supply chains more sustainable.
The goal for Planet Textiles is to help the textile industry find more harmonized sustainable solutions, as now more than ever, the industry—and the consumer—are calling for transparency and products to be made more sustainably.
Planet Textiles will look at how small start-up companies can scale sustainable innovations in the industry from the lab to commercial reality. Other themes include textile microfibers in relation to the growing problem of microplastics pollution, fate and implications for marine eco-systems. Deforestation in relation to the manmade cellulosic fiber sector will also be high on the agenda – along with the harmonization of textile chemical management and wastewater guidelines.
Ethical scores in Bangladesh on a rise
According to the recent the 2018 Q2 Barometer report by Asia Inspection (AI), ethical scores in Bangladesh rose by an average of 15 per cent during the past 12 months. The results reflect the continuous pressure faced by the Bangladesh-based textile and apparel manufacturers to improve their ethical performance. However, in spite of the increase in ethical scores, as indicated by the AI data, factories in Bangladesh are still plagued by health and safety issues, which were ranked the most pressing concern of Q1 2018, taking over working hours and wage compliance.
The scores for Chinese manufacturers showed little change with average scores flat at 7.7 out of 10. By contrast, there was a market improvement in the scores of South and Southeast Asia, with Cambodia continuing to outpace its economic forecast for the second year running, and inspection demand rising 22.4 per cent YoY in Q1 2018. Pakistan also maintains momentum gained during last year, with inspection volumes expanding 10.3 per cent YoY in Q1 2018.
Dyers’ event in Mumbai
The Society of Dyers and Colorists (SDC) organized an event in Mumbai, April 20. The theme was sustainability driven innovations. This event was attended by 30 qualification holders, medalists, trustees and voting members of SDC.
Sustainability is not a buzz word but has become important in terms of energy efficiency from conceptualisation to building materials. Companies adopt this as the core of their corporate strategy for success in the long term.
Sustainability is not only in R&D but also imbibed into the people – employees, vendors, customers and stakeholders how to use energy efficiently and save Mother Planet.
In textiles, PVC-free silicone-based inks are used for screen printing with stretch which effect soft feel for synthetics and cotton. RO membrane is used for ZLD application due to regulations. Water can be recycled, and sludge disposal is necessary. Enzyme is used for plastic recycling in effluent treatment.
SDC is the world’s leading independent, educational charity dedicated to advancing the science and technology of color worldwide. Its mission is to educate the changing world in the science of color. SDC is a professional, chartered society. Becoming a member gives access to SDC’s Professional Coloration Qualifications including the elite Chartered Colorist status. It has an international network of regions and activities.
Chemical kalamkari pollutes river
Towns in a district of Andhra Pradesh have won the geographical indication (GI) tag for the production of kalamkari.This involves carving out intricate designs on wooden blocks and using these to print patterns on fabric.
The name kalamkari is derived from the words qalam (pen) and kari (craftmanship), meaning drawing with a pen.
But there has been a spurt in the use of modern and chemical methods that threaten the traditional art of block printing on fabric using organic and vegetable dyes.
To keep up with growing demands and reduce production costs and time, many villagers have started using chemical dyes and the screen printing method to produce the famed textile style. The modern technique involves digitally creating designs and then making large stencils, which are used instead of blocks.
What the screen printing method can produce in 40 minutes, block printing or hand painting can take days.
The process of kalamkari involves several steps, one of which is to wash the fabric in the Krishna River to ensure that the color lasts longer. The water in the river has the correct mineral composition required to help the colors develop and set. However, the chemical dyes used by other producers have begun to pollute the river.
Cambodia to grow at slightly higher rate
Cambodia’s economic growth is projected to accelerate to 6.9 per cent in 2018 compared with 6.8 per cent in 2017.Rising government spending and favorable global conditions, including robust demand in advanced economies, are expected to underpin Cambodia’s high growth trajectory.
Tourist arrivals accelerated to 11.8 per cent in 2017, compared with five per cent in 2016.
While growth in the construction sector is an important driver of growth and a creator of jobs, it is necessary for Cambodia to closely monitor the construction and real estate boom by developing macro-prudential policies to help reduce the scope for speculative activities.
The agriculture sector also rebounded, with the expansion of rice and rubber plantations, and the gradual recovery of agricultural commodity prices.
Risks remain, however, and they include erosion of export competitiveness due to rapidly rising real wages, a build-up of vulnerabilities from a prolonged real estate and construction boom, potential election-related uncertainty, and periodic jolts of protectionism and escalating trade disputes between the world’s largest trading countries.
To maintain strong growth, it is essential that Cambodia invests more in education and skills training while addressing the constraints facing small and medium businesses.
The country can diversify growth and create more jobs by reducing the costs of company formalisation, operation and financing.
Bangladesh builds on ties with Canada
Bangladesh’s textile products enjoy duty-free access to Canada. If the trade facilities offered by Canada remain unchanged, Bangladesh’s exports to Canada will reach three billion dollars by 2021.
In enlarging the trade volume in the Canadian market, Bangladesh is planning to showcase its products especially leather and diversified jute products as there is a huge opportunity for growth.
Bangladesh has a target of 50 billion dollars in overseas sales target by the end of 2021 and Canada is going to be a key garment export destination.
Bangladesh and Canada may form a blue ribbon panel to explore possibilities of expanding trade and investment. The signing of a bilateral investment treaty between the two countries would go a long way toward increasing foreign direct investment from Canada to Bangladesh.
Sustainable economic growth, health, and education are the three areas Canada wants to work on in Bangladesh. The country is also working to strengthen garment worker safety in Bangladesh. Canada wants to expand in the services sector in Bangladesh, such as aircraft safety.
Canada is a country of some 37 million people, with French and English as official languages. It is a leading as well as growing trading partner of Bangladesh, providing export opportunities.
Burberry files US $ 2 mn lawsuit against Target
British fashion house Burberry recently filed a lawsuit against American retail company Target Corp for copying its design on their products.
The lawsuit, in the New York’s federal court, cited that Target counterfeited the British fashion brand’s designs even though it was aware of Burberry’s trademark rights.
The brand fears that with Target’s reputation of collaborating with big brands, the customers can easily be manipulated to believe that the products on Target are endorsed by Burberry.
The UK-based clothing and accessories designer has therefore demanded Target to immediately stall the selling of ‘in-dispute’ pattern-made scarves, luggage, eyewear and home products.
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Aeffe apparel sales up 18 per cent
For the first quarter Aeffe apparel sales grew 18.3 per cent at constant exchange rates. Revenue grew 20.3 per cent at constant exchange rates, EBITDA grew 32 per cent and net income grew 39 per cent.
Aeffe is an Italian group that includes labels Alberta Ferretti, Philosophy by Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier.
Aeffe’s domestic market, Italy, accounted for 47.6 per cent of total revenue. After posting a 20.7 per cent increase last year, it grew 18.2 per cent in the first quarter 2018. The rest of Europe accounting for 21.7 per cent of revenue increased by 15 per cent, thanks chiefly to the UK, Germany and Spain.
Russia, with a share of three per cent of total revenue, was also on a positive track, its sales up 12.6 per cent. The US was the only region to record a downturn, chiefly due to the negative nationwide trend in department stores.
Meanwhile the rest of the world, driven by booming sales in Greater China, posted a 45.9 per cent rise, accounting for 22.5 per cent of total revenue.
In terms of distribution channels, wholesale revenue, accounting for 74.7 per cent of Aeffe’s total, grew 24.4 per cent while the retail channel was up 8.5 per cent. Finally, royalty revenue increased by 19 per cent and was worth 2.6 per cent of total revenue.
Wool platform developed in New Zealand
Industry partners in New Zealand have come together to develop and launch an independent online wool trading platform.
Called Natural Fiber Exchange (NFX), it draws on international models as an open access, independent trading platform and represents a cross section of the wool market. It is pro-competitive, transparent and encourages fair discovery of prices for the fiber products traded between buyers and sellers.
Buyers can compare all prices in real time with all parcels of wool available simultaneously over multiple rounds of bidding. An integral feature of the platform is as a tool to provide an objective reference point from the perspective of both buyers and sellers.
Online trading is playing an increasingly important role in international commodity markets. This platform is a natural evolution towards developing the most efficient means of selling significant volumes of wool.
Meanwhile farmer-to-merchant wool trading is set to kick into gear in the coming weeks, as shearing will commence on sheep farms across the country. However – like last year – the outlook for prices remains difficult.
Prices are down significantly on the prices achieved during 2016 and 2015. Buyers from China are not sourcing wool from Europe.
There has been no great increase in supplies just yet this year – despite the fine weather.
Walmart may increase India sourcing
Walmart may step up sourcing from India for its global operations as the Flipkart acquisition gives it access to the huge supplier base of the e-commerce company.
The US retailer currently sources goods worth over a couple of billion dollars, such as apparel, generic medicines and handicrafts, from Indian suppliers such as Welspun and Dr Reddy’s for its stores in the US, UK, Canada and South America.
Walmart’s sourcing from India is still small compared with that from China. But the combination of its Best Price cash and carry business and Flipkart is now expected to help boost India’s contribution. The bigger base of suppliers from Flipkart will offer it more opportunities to source for its retail outlets abroad, while also allowing suppliers a wider exposure to overseas markets.
The India market opportunity for Walmart will in fact be meatier than that from building a larger supply chain to source goods for global markets. Between the cash and carry business and Flipkart, Walmart will focus more on India, with its backend systems and expertise in large-scale sourcing. It will focus on expanding the 100 million Flipkart customers.
Walmart has over 20 Best Price cash and carry outlets in India. In fiscal 2017, the India unit posted revenue of Rs 3,641 crores, of which two-thirds came from sales of food and groceries.
Adidas, Nike relocate manufacturing from China to Vietnam
Many companies have relocated their footwear manufacturing business from China to Vietnam.
Adidas has halved the amount of footwear it makes in China since 2010, having moved most production to Vietnam. The nation has also overtaken China as Nike’s predominant footwear manufacturer – who held the title 10 years ago.
Uniqlo, the Japanese fashion company, has increased its suppliers in Vietnam by 40 per cent in the last year.
According to a survey by the United States Fashion Industry Association, the most common sourcing model is shifting from ‘China Plus Many’ to ‘China Plus Vietnam Plus Many.’
“The typical sourcing of portfolio today is the 30-50 percent from China, 11-30 percent from Vietnam, and the rest from other countries,” the report states.
