FDIs into Bangladesh see an upsurge, boost textiles sector
"Foreign direct investment (FDI) in Bangladesh’s textile sector at the end of September 2016 stood at $2,438.21 million. Struggling with labour issues and energy shortages, the industry is ready to adopt advanced technology and skill training to get out of the turmoil. While the country is a favoured investment destination owing to its inherent properties such as abundant cheap labour, strategic location as a gateway to Asia-Pacific region, and a legislative framework conducive to doing apparel business."
Foreign direct investment (FDI) in Bangladesh’s textile sector at the end of September 2016 stood at $2,438.21 million. Struggling with labour issues and energy shortages, the industry is ready to adopt advanced technology and skill training to get out of the turmoil. While the country is a favoured investment destination owing to its inherent properties such as abundant cheap labour, strategic location as a gateway to Asia-Pacific region, and a legislative framework conducive to doing apparel business. It is also marred by weak infrastructure, inconsistent energy supply, lack of land, weak financial sector, corruption and red tape in the bureaucracy.
FDI inflows
Statistics from Bangladesh Bank reveals, South Korea has invested $758.08 million from September 2015 to 2016. The corresponding figures for Hong Kong are $421.7 million; British Virgin Islands invested $214.02 million and garnered the third spot among the highest FDI figures for Bangladesh for the period ending September 2016. The other countries that made a significant contribution to Bangladesh textile FDI during the same period are: Taiwan with $155.24 million, China $93.71 million, Singapore $67.4 million and India $66.71 million.
It’s the smaller nations in the neighborhood of Southeast Asia and Eastern Asia that have contributed in terms of FDI as compared to the combined FDI corpus of neighbouring giants China and India. FDI from the United States stood at a modest $33.02 million. Bangladesh government will have to facilitate ease of business in a big way to attract major investors from the West like France, Germany and US. This includes the setting up of adequate infrastructure whereby the textile industry can locate itself in clusters in a special economic zone with adequate facilities for both workers and the visiting industry honchos. China has already provided some assistance in this direction for Bangladesh to set up a special textile park. According to the Bangladesh government, negotiations are on and it won’t be long before this is realised.
Government initiatives
The government is proactively seeking FDI not only in textiles but also in the allied energy and infrastructure sectors that will help boost volumes in textile trade. Some of the measures already undertaken include favourable industrial policy, export growth incentives and Public-Private partnership launched in 2009 and ratified for further enhancement ever since. If policy indications are anything to go by then western world wants Bangladesh to further reform its labour laws and provide enhanced package of minimum wages to its workers. In addition, they have expressed concern about safety norms adopted by the industry. However, of late, Bangladesh has monitored the upgrade of safety norms and has made a marked improvement.
The big cache lies in resolving minimum wages. This may not get ratified soon as it’s bound to impact the cost competitiveness of Bangladeshi garments. The alternative available for Bangladesh is to boost FDI inflow from India. On a promising note, Bangladesh has signed 30 bilateral trade agreements and the current Trump administration has scraped the TPP that made Vietnam a favourable destination for textiles which goes in favor of bilateral trade pacts.
From the holistic perspective, major contributing countries to Bangladesh’s export earnings are China, South Korea, India, Egypt, UK, UAE and Malaysia. With bright prospects ahead, the textile sector is headed for an exciting period in the near future given the inclination of stakeholders, government and foreign players.
BCI to hold Global Cotton Conference in Germany this May
A cotton conference is scheduled to take place in Germany from May 16 to 18, 2017. The Global Cotton Conference will bring the entire sector together to shape a more sustainable future for the cotton industry. The conference will offer the opportunity to explore themes at the field level, in the value chain and in consumer facing businesses. Industry experts, business leaders and other key stakeholders will participate in the event to share perspectives on the keys to unlocking a better future for cotton.
Cotton is one of the world’s most important natural fibers. It’s used by nearly everyone and supports 250 million people’s livelihoods. The conference is being organized by Better Cotton Initiative. BCI is a not-for-profit organisation stewarding global standards for better cotton, and bringing together cotton’s complex supply chain, from farmers to retailers.
Better Cotton Initiative exists to make global cotton production better for the people who produce it, better for the environment it grows in and better for the sector’s future. BCI aims to transform cotton production worldwide by developing better cotton as a sustainable mainstream commodity.
BCI works with a diverse range of stakeholders across the cotton supply chain to promote measurable and continuing improvements for the environment, farming communities and the economies of cotton-producing areas.
Turkey’s cotton demand on the rise
Turkey’s export-oriented textile and apparel industry relies heavily on cotton imports. Turkey is the world’s second largest consumer of cotton. As the industry has been booming over recent years, Turkey’s cotton demand is also soaring and is expected to reach a 19-year high in 2017.
Rising cotton demand is due to Turkey’s increasing focus on in the European market. Cotton mills in Turkey had to lower margins to keep their market share in the European market to continue operating. Meanwhile Turkish mills have also been investing in new machinery and technology to increase quality and lower costs in order to get ahead in the very competitive international textile trade.
Turkish domestic cotton production is also forecast to surge by 21 per cent year on year in 2016-17. In fact Turkey is the fifth biggest cotton yarn producer in the world, having a five per cent share in global cotton yarn production. The recovery in Turkey’s cotton production is mainly driven by higher local cotton prices and more local farmers switching from planting low return crops such as corn to cotton.
However, lack of irrigation water and high production costs such as seed, fertilizer, fuel and electricity remain as main obstacles for the industry to grow.
UK firm Metail ties up with South Korea’s Benit
UK’s fashion technology firm Metail has announced a partnership with Benit an arm of South Korean conglomerate Kolon. The deal will expand the reach of Metail’s game-changing technology in Asia, which allows consumers to discover, shop, share and try on clothes online in a unique and engaging fashion.
Metail’s aim is to digitise all of the world’s garments and people. It sees South Korea as the most mobile-focused, tech-savvy and fashion-conscious market in the world and feels Kolon, with its scale, stable of brands and market-leading fashion-focused IT services arm, is the right strategic partner.
Kolon is the fourth largest conglomerate in South Korea, with interests spanning manufacturing to construction, trade, life sciences research, environment, retail and fashion. Building on its leadership across multiple sectors, Kolon is now setting its sights on the fast growing South-Korean fashion e-commerce market through its technology branch Benit.
Kolon was looking for innovative and useful solutions for the development of the fashion market in the region and felt Metail's solutions were the most valuable. Consumers can’t try on clothes when buying clothes online. Kolon feels Metail can help overcome the difficulties in sizing and styling.
Through this agreement, Kolon hopes, fashion and distribution companies in the Korean market will be able to provide a useful and wonderful experience to customers.
Turkey builds up textiles trade with EU
Turkey’s textile exports to the EU increased 8.6 per cent year-on-year in 2016 while exports of apparel fell 2.3 per cent. The EU remains the largest exporting destination for Turkey’s textile and apparel products and the textile and apparel trade with the EU is expected to increase over the next few years. In 2016, over 64 per cent of total Turkish textile and apparel exports were destined for the EU.
Russian buyers are returning to Turkey after the political tension in November 2015 when Turkey downed a Russian jet. Textile and apparel exports from Turkey are also increasing to other markets like Iran, the US, Algeria, Israel, Poland and Bulgaria. Meanwhile, the depreciation of the Turkish lira is making exports easier.
Moreover, domestic market is also developing well and attracting more foreign investment. The domestic market is expected to grow by eight to ten per cent in 2017. An industrial rebound is expected in the country’s cotton production. The Turkish textile and apparel industry has a goal of doing exports worth 72 billion dollars in 2023. In order to achieve that target, Turkey has put increasing efforts to ensure national and regional stability and harmonious international trade relations.
India’s textile exports fell five per cent in 2016
India’s textile exports fell five per cent in 2016 compared to 2015. Demand remained sluggish and India has been losing out to China. That country’s cost of production remained almost flat and there has been currency depreciation. The Chinese currency has weakened nine per cent over the dollar. In contrast, the cost of production has increased sharply in India and the rupee has appreciated around five per cent. So India's receivable export proceeds have declined proportionately.
The past year has seen a 25 to 30 per cent jump in labor cost. Since labor is a major component of the overall cost, the cost of apparel production has risen proportionately. Overall, therefore, India's textile and apparel exports are estimated to remain flat in calendar 2017 as the benefits offered to the industry are negated by a sharp increase in the cost of production and appreciation in the rupee.
Demand for fabric from apparel makers has been subdued. The country's fabric production was tepid in April-September 2016, with a modest growth of two per cent. Demonetisation added to the challenges being faced by this fragmented and unorganised segment, seen in a six per cent fall in fabric production during the December quarter.
Isko holds denim seminar in Italyon supply chain
A denim seminar was held by Isko I-skool in Italy from March 13 to 15. This was part of Isko I-skool’s educational activities, where students learnt about the supply chain. Participants got an up-close look at many aspects of the denim industry. Students learnt and experienced all the steps of denim production, from cotton bolls to the latest washing technologies and forecasting trends.
Isko I-skool is the global fashion talent by Isko, a world leader in denim production and textile innovation. The seminar was held thanks to the invaluable contribution of some of the project’s prestigious partners: Lenzing, Archroma, Itema, Reca Group, Tonello, Swarovski and Betabrand.
Isko opened in 1904 and is the world’s largest denim manufacturer under one roof. With 1,500 high-tech automated looms, global distribution of employees and a production capacity of 250 million meters of fabric per year, the portfolio includes more than 25,000 products.
Isko has a presence in 30 countries and an international network of textile technologists, design experts and retail specialists. Use of its revolutionary stretch textile technology in jeggings gave women a sculpting, slim-line elegance. Its concepts can be tailored for any requirement including haute couture, street wear, jeans wear, sports wear and boutique collections.
Ethisphere hails VF Corp as the most ethical copmany
VF Corporation has been named the world’s most ethical company by the Ethisphere Institute. This assessment is based on a framework which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized way. The information provides a comprehensive sampling of definitive criteria of core competencies in the areas of corporate governance, risk, sustainability, compliance and ethics.
Scores are generated in five key categories: ethics and compliance program (35 per cent), corporate citizenship and responsibility (20 per cent), culture of ethics (20 per cent), governance (15 per cent) and leadership, innovation and reputation (10 per cent).
VF is a global leader in branded lifestyle apparel, footwear and accessories. Ethisphere defines and advances the standards of ethical business practices. It is one of only three apparel companies to figure in the list, underscoring the company’s commitment to leading its industry through ethical business standards and practices.
Since 2006, Ethisphere has honored companies that recognize their role in society to influence and drive positive change, consider the impact of their actions on their employees, investors, customers and other key stakeholders, and use their values and culture as an underpinning to the decisions they make every day.
Cambodia’s exports up 18 per cent
Cambodia’s exports grew 18 per cent in 2016 while imports went up 16 per cent. The European Union is Cambodia’s biggest market. Exports to Japan rose 45 per cent and exports to China by 50 per cent. By contrast, exports to the United States, traditionally a key market for Cambodian garment exporters – remained flat.
The country’s garment and footwear sector accounts for over two-thirds of the country’s exports by value. About 90 per cent of all exports were shipped under GSP and MFN schemes, which allow many Cambodian products to enter markets with reduced tariffs or duty-free. Imports from China – the largest supplier of goods to Cambodia – rose 16 per cent last year. Imports from Thailand and Vietnam increased by 22 per cent and 53 per cent.
Faster export growth helped trim Cambodia’s trade deficit from 11 per cent in 2015 to 10.2 per cent in 2016. But even with preferential trade privileges that have helped swell rice exports to the European market, Cambodian producers must improve quality and slash production costs to remain competitive.
The country still needs to import a lot of machinery and construction materials, which are required for the construction of manufacturing facilities and other business operations.
Brands are publicly disclosing their supplier lists. Popular online fashion retailer ASOS is set to publish a list of the factories where it produces its own-brand products. Uniqlo has revealed the names and addresses of 146 of its core factory partners.
Earlier Adidas, Converse, H&M, Levi Strauss and H&M have published a list of their manufacturers. Adidas and H&M have published the names and addresses of sub-contractors or fabric/yarn suppliers. Publishing supplier lists is important because it helps NGOs, unions, local communities and even workers themselves to alert brands of any potential human rights and environmental issues in their supply chains. This sort of transparency makes it easier for the relevant parties to understand what went wrong, who is responsible and how to fix it.
Marks & Spencer published an interactive map of its suppliers in both food and clothing, which spans 53 countries and covers 1,229 factories employing 787,331 workers. Gap, C&A, VF (which owns more than 20 brands including The North Face, Timberland, Vans and Wrangler) have revealed the names and addresses of the factories that manufacture their clothing around the world.
The information brands provide varies widely. Some publish every factory where their clothes are manufactured. Others may only reveal a selected portion of their manufacturers, such as their core high-volume suppliers, factories located just in one country or only the factories the company owns.
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34th Season of Mercedes-Benz Fashion Week Russia Finished In Moscow
Written by FW"From March 12 to 17 Moscow saw the Fall/Winter 2017-2018 season of Mercedes-Benz Fashion Week Russia. As part of the major Fashion Week in Eastern Europe more than 50 designers from Russia, Italy, Georgia, Kazakhstan and other countries presented their collections on the runways of the Manege Central Exhibition Hall. The season also featured several debuts of young designers, among them were awardees of the Russian Fashion Council's grants."
From March 12 to 17 Moscow saw the Fall/Winter 2017-2018 season of Mercedes-Benz Fashion Week Russia. As part of the major Fashion Week in Eastern Europe more than 50 designers from Russia, Italy, Georgia, Kazakhstan and other countries presented their collections on the runways of the Manege Central Exhibition Hall. The season also featured several debuts of young designers, among them were awardees of the Russian Fashion Council's grants.
This season MBFWRussia has brought together a number of representatives of international media outlets, such as Vogue USA, Vogue UK, The Huffington Post, Forbes USA, The Issue Magazine, Fashionista, Fucking Young, Dazed, Observer, BuzzFeed and many others.
The main business event of Mercedes-Benz Fashion Week Russia deserves special attention. The two-day Fashion Futurum International Conference was held with the support from the Russian Fashion Council, Moscow's Department of Culture, Ministry of Industry and Trade of Russian Federation, Agency for Strategic Initiatives and Skolkovo Foundation. The program of the event included panel discussions, public talks, workshops and presentations of startup projects in several zones of the Manege Central Exhibition Hall. More than 30 global fashion industry experts from 9 countries gathered in Moscow's downtown to discuss modern trends and the current challenges the industry is facing. The main topic of the conference was the destruction of fashion industry stereotypes, its transformation under the influence of the scientific and technological revolution.
Karim Rashid (Designer, USA), Pascal Morand (Executive President, French Federation of the Haute Couture and Pret-a-porter, France), Carlos Espinosa de Los Monteros (High Government Commissioner for the Spain Brand, Spain), Michael Burke (Head of Industry, Fashion, Sports & Toys, Google, USA), Scott Emmons (Head of the Innovation Lab, Neiman Marcus, USA), Danilo Venturi (Dean, Polimoda, Italy), Covadonga O’Shea (Founder, ISEM Fashion Business School, author of the bestselling Zara Phenomenon, Spain) and many other experts participated as speakers and mentors of the conference.
For the first time Fashion Futurum featured a fashion industry and retail Innovation Show. The Russian Fashion Council and Skolkovo Foundation choose 30 projects for the central display of the Manege Central Exhibition Hall. Among the most interesting startups are Style Counsel, ShareCloth.con, Cloudburst, 3D Footwear Brutally, Posh, SC-TEK, Bundlesapp, Cardberry, Try. Fit, Preloved.
"Despite the fact that fashion technologies in Russia are only at the development stage there are no industrial standards in this area, so Russian companies have an opportunity get their share of this market," Alexander Shumsky, President of Mercedes-Benz Fashion Week Russia and Russian Fashion Council, said.
On March 17, 2017 a closed runway show by Firdaws was staged separately, at the Petroff Palace. Rippling floor-length dresses decorated with beads and embroidery, slim fit tops and soft pastel palette were characteristic of the Firdaws runway show. Refined silhouettes and silk kerchiefs decorated with lacework highlighted the chastity and kingliness of the images presented. Many Russian and international guests attended the show, among them were Alla Verber (Mercury), Vyacheslav Zaitsev (Designer), Anastasia Stotskaya (Singer), Sati Kazanova (Singer), Irina Tchaikovskaya (society columnist), Yulia Baranovskaya (TV host), Anna Khilkevich (Actress), Maria Lisowska (Fashion TV), Giulia Pirovano (Instituto Marangoni), Princess Beatrice D’Orleans (President of the Spanish Luxury Association, Ambassador of Dior), Pascal Morand (Executive President, French Federation of the Haute Couture and Pret-a-porter), Sylvie Ebel (L’Institut Francais de la Mode), Ahmed Abdulrahman Al Saati (Bahrain's Ambassador to Russia) and Jae Suk Kim (Illustrator).
Some 60,000 guests, more than 30,000 photos on Instagram with #MBFWRussia, live streaming of all fashion shows on dozens of websites and social networks pages, sketches by fashion illustrators, with each season we only improve our performance.
Major photo agency, Getty Images is the international partner of Mercedes-Benz Fashion Week Russia. Photos and videos from the Fashion Week will be available for download to 60,000 media outlets across the globe.
SIUF to be bigger, grander with new additions this April
"It has never been a better time than now for international players of intimate apparel industry to dive in the booming Chinese market. China’s lingerie market is expected to reach a retail value of $25 billion by 2017—double that of the US—and will grow to $33 billion by 2020. Spending on discretionary categories in China will show strong growth in the coming years."
It has never been a better time than now for international players of intimate apparel industry to dive in the booming Chinese market. China’s lingerie market is expected to reach a retail value of $25 billion by 2017—double that of the US—and will grow to $33 billion by 2020. Spending on discretionary categories in China will show strong growth in the coming years.
Organised by Shenzhen Shengshi Jiuzhou Exhibition and owned by Tarsus Group, the joint trade fair ‘China (Shenzhen) International Brand Underwear Fair & Shenzhen international Underwear OEM/Materials and Fabrics Fair’, also known as SIUF, has made its way to become the most influential fair in Asia. Nearly 825 exhibitors and 105,600 industry visitors from 27 countries visited last year for the 11th show. The latest edition of SIUF is schedule for April 19 -21, 2017 in Shenzhen, China. This year, international hall will be launched including four sectors viz: country pavilions, brands, fabrics & accessories and B2B meeting room. “We need to thank our international brands and suppliers for inspiring us with this excellent idea. We will do our best to meet their expectation of a tailor-made service. We see it as our mission to help them expand their business in China rapidly with our buyer’s network and media support.” said Fengwei Zhang, CEO, Shenzhen Shengshi Jiuzhou Exhibition. Professional buyer resource means everything for SIUF. “Our key value is to help our exhibitors maximise their return, which could only be achieved by attracting the most representative professional buyers to join the fair,” he elaborated.
Evolving through the years
Incepted in 2006, SIUF has made its way to become the most influential lingerie fair for the whole China. Talking about China’s lingerie market, Zhang says “Chinese consumers, especially women, developed a mindset of buying things for their own good instead of flashy display. Spending on discretionary categories in China will therefore show strong growth in the coming years. Lingerie is going to be among the next hottest topics. The sales now are robust, foreign players are making inroads and local favorites are refining their offerings and branding. The era of lingerie is coming now.”
SIUF is much more than a fair. The whole package consists of a series of activities including China’s most authoritative distributor awards, the ‘Kingcraft Awards’, brand awards, the ‘Golden Dudou Awards’, underwear and home wear design contests, the ‘Oriental Charm’, trend forums, brand fashion shows and the ‘Super-model Talent show’ over the three-day fair.
SIUF has an extensive network of buyers covering the most important distribution channels of lingerie products, such as top distributors, retailer groups, chain supermarkets and shopping malls, as well as e-commerce platforms. “Professional buyer resource means everything for us to stand out from our rivals. Our key value is to help our exhibitors to maximize their return, which could only be achieved by attracting the most representative industry buyers to join the fair.” Zhang. Matsuoka of Atsugi, Japan’s most popular stocking brand, also commented his experience at SIUF, “I don’t know anywhere else that one could meet the key distributors all at once. The fair also offers chances like awards and gala dinner for us brands to build business network. We made a lot of useful contacts.”
Expanding Tier-II cities a great opportunity
While competition in Tier-I cities gets tougher, China’s fast growing Tier-II cities offer great opportunities for brands where traditional retail channels like franchised and multi-brand stores still dominate the underwear market. SIUF’s annual pre-show event ‘PHOENIX Dancing’ held in Tier-II across China aims to strengthen the connection between retailers and brands by inviting them to discuss the most leading edge topics and helping them build strategic partnerships.
As a show presenting the entire supply and distribution chain of intimate apparel industry, SIUF also offers the full range of machinery and electronic products related to the underwear industry. Product machinery, testing equipment, POS hardware and software, new technology as 3D printing and wearable electronics are to be found at the 73,000 sq .mt. exhibition ground.
The line up
Convening over 650 brands, many with enlarged and upgraded booths, there will be more product launches and trends on display than ever before in this edition. Participating exhibitors include: Invista, Lenzing, Taubert, Muehlmeier, Penn Textile Solution, Pressless, Creora, Asahi Kasei, Toyobo, Eurojersey, Bemis Hong Kong, Bluesign as suppliers and EmbryForm, Aimer, Maniform, Enweis, Roesch Fashion, Atsugi, Cosmolady, Regina Miracle, Oleno, Bodibody as brand owners. Zhang commented, “We have seen from other shows, how increasingly important having an all-in-one platform become for the niche market. Showcasing a wide portfolio of products from raw materials to brands, we bring the whole industry together to talk about the most leading edge topics and build strategic partnerships. We will continue empowering the buyers visiting the show by bringing them up to speed on emerging trends, featuring the newest developments and giving them first-rate accessibility to all the products, services and solutions that can help keep their businesses up to speed and competitive.” Registrations can be made online on: www.siuf.com/en/.
Arvind, Invista display collection in Mumbai through denim show
Arvind and Invista teamed up for a fashion show in Mumbai. They launched the festive collection for 2017. The denim giant and the fiber producer collaborated in bringing their latest in innovation, design and sustainability for the Indian market.
The fashion show highlighted the multifaceted nature of denim fabrics. The event showcased an innovative line of Flip denims (reversible denims), Azurite (Arvind’s patented technology of premium saturated indigo fabrics), 360 degree Mutants (multidirectional stretch knit denims) and XL Mutants (wider width knits for better production efficiencies) to name a few.
It showcased a collection of Denim Express, which is a speed to market solution of versatile fabrics that are always in vogue – a much needed requirement of the industry. The collection further extended to popular Arvind categories of Blue Natives, Neobubble, Boomerang along with the bestsellers across the market.
Arvind’s khadi denim collection was also on display. All Arvind stretch denims are powered by Lycra fiber and also include other Invista specialty products like Cool Max Everyday fabric, Cool Max All Season fabric and Cordura fabrics. These products with their strong performance properties provide a set of unique comfort and durability to the garments – a deeply desired feature by end consumers.
Welspun has opened a state-of-the-art plant in Gujarat. The Rs 150 crores facility will have unique capabilities of spun lace and needle punch lines which can manufacture multi-layer composites for various applications. This advanced and innovative technology will provide non-woven solutions for high-end industrial applications such as filtration, acoustics, automotive, fire safety, thermal insulation, vibration control, noise control, aerospace, defense and mass transportation. The initial capacity of the manufacturing unit will be 2,400 metric tons a year.
With this facility, Welspun has also invested in a wide range of finishing technologies including coating, laminating, dyeing, and printing to provide innovative solutions all under one roof. The new facility will enhance Welspun’s product offerings and provide cutting edge solutions in high growth areas such as industrial and defense applications.
Welspun has also invested Rs 100 crores to set up a fresh state- of- the-art fully automated cut and sew unit in the made-ups segment with a capacity of 10 million units a year. The new initiatives are testimony to Welspun’s commitment in enhancing employment opportunities in the region, particularly for women. Welspun plans to expand its focus on branded and innovative products to become a two billion dollar company in four years, with 20 per cent revenue coming in from domestic sales.
