Hong Kong reclaiming its stake in the global textile canvas
"A well-known supplier of quality dyed and printed fabrics, and famous for ODM (Original Design Manufacturer) and OEM (Original Equipment Manufacturer) products, Hong Kong has had a special place in the global textile map. However, owing to economic uncertainties, the country seems to be losing focus. The surge in cost is one of the key deterrents in its growth trajectory as well as the emergence of other sourcing hubs such as Singapore, Dubai, Malaysia is another reason for reduction in Hong Kong’s direct significance."
A well-known supplier of quality dyed and printed fabrics, and famous for ODM (Original Design Manufacturer) and OEM (Original Equipment Manufacturer) products, Hong Kong has had a special place in the global textile map. However, owing to economic uncertainties, the country seems to be losing focus. The surge in cost is one of the key deterrents in its growth trajectory as well as the emergence of other sourcing hubs such as Singapore, Dubai, Malaysia is another reason for reduction in Hong Kong’s direct significance.
Hong Kong’s textiles industry is a major export earner, accounting for 2 per cent of the total exports in 2015. Hong Kong was the third largest textile exporters to the world in 2006, according to World Trade Organization (WTO) data it was eighth largest textile exporter to the world in 2015, and as per statista.com Hong Kong’s textiles industry is a major supplier to the local and global clothing industry. Hong Kong Trade Development Council (HKTDC) research says, producing textiles locally, manufacturers have an advantage in accommodating orders from local garment manufacturers at short notice. Meanwhile, a significant portion of textile exports is destined for use in Hong Kong companies’ offshore production of garments, especially on the Chinese mainland.
Traditional markets for textile export are the US, the EU and Japan but recently these countries have built direct supply chain with textiles exporters from developing countries, which has resulted in lesser competitiveness of Hong Kong manufacturers and its rising cost of business. An increasing number of Hong Kong textiles manufacturers have shifted base to Southeast Asian countries like Bangladesh, Cambodia and Vietnam to survive.
Exports stats
Hong Kong’s textile exports decreased 7 per cent in 2015. In the first four months of 2016, it further decreased by 13 per cent. Re-exports, accounting for more than 99 per cent of total textiles exports, registered a decline of 13 per cent, while domestic exports slid by 15 per cent. With 75 per cent of the textile re-exports originating from the Chinese mainland, Hong Kong’s re-exports of textiles of China origin decreased by 13 per cent in January-April 2016. Hong Kong’s total exports of clothing slid by 10 per cent in 2015 over the previous year and in the first four months of 2016 the decline was 12 per cent. In January-April 2016, Hong Kong’s domestic exports of clothing slumped by 41 per cent, while re-exports declined by 11 per cent. Product wise, Hong Kong’s exports of woven wear fell by 8 per cent in 2015, which further declined 12 per cent year-on-year in the first four months of 2016. Exports of knitted wear subsided by 13 per cent, whereas clothing accessories and other apparel articles declined by 15 per cent and 10 per cent, respectively.
FTAs and investment promotion
Hong Kong has been attempting to sign Investment Promotion and Protection Agreements (IPPAs) with foreign economies in order to enhance two-way investment flows and boost its economy. Hong Kong’s IPPAs give additional assurance to overseas investors that their investments in Hong Kong are protected, and enable Hong Kong investors to enjoy similar protection in respect of their investments overseas. To secure favourable conditions for exports of goods (including textile and clothing products) and services from Hong Kong to the Mainland and international markets, it aims to enter into more FTAs with their trading partners. Hong Kong prepared to explore the possibility of entering into FTAs with other economies, so long as they are in Hong Kong’s interests and are consistent with WTO rules.
Work starts on Vietnam’s largest textile park
Construction on Vietnam’s Rang Dong textile park has started in Nghia Hung district in Nam Dinh. The vice chairman of the provincial people’s committee Ngo Gia Tu points out the park plays an important role in the province’s economic development strategy.
Nam Dinh is home to more than 480 textile businesses with over 70,000 workers. The sector’s revenue accounts for 40 per cent of the province’s total industrial production. Once operational, the industrial park will serve as a driving force for local socio-economic development, he indicated, asking investors to mobilise resources to build infrastructure facilities synchronously to ensure the project goes well.
As per Tran Minh Hoan, Head of the province’s industrial park management board the project covers a over 2,000 ha. area and is divided into three phases. The Rang Dong industrial park is looking to attract investors to achieve its goal of producing 1 billion metres of fabric by 2020. To meet environmental regulations, a wastewater treatment plant with a capacity of 110,000 cu.m per day will be built.
Vietnam has set a target of increasing domestic fabric output from 2.85 billion metres in 2016 to nearly 18 billion metres by 2025. To achieve this goal, the government has allowed the establishment of several textile parks in certain localities along with Nam Dinh intended to become a garment and textile centre of the north.
Amazon top shopping app for women in the US
Victoria’s Secret, Sephora and Nike are the top brands favored by US shoppers. And what contributes to these brands success is their online presence. Among men, Amazon was voted the favorite retailer across all categories, and it was the top shopping app for women. More than one-third of US apparel shopping is conducted online. These are the results of a study, which looked at trends in fashion, retail and beauty categories based on a national sample of 2,345 US consumers aged 13 to 34.
The US apparel market is seeing a dramatic shift to online that has caught many traditional retailers off guard. Mall-based specialty chains and department stores have begun to give up large chunks of their clothing and accessories business to Amazon and other pure play merchants.
The creation and implementation of more sophisticated online platforms such as product aggregators, pricing tools, geo-fencing, augmented reality, body scanning and other capabilities will further accelerate the shift, making it easier for consumers to shop online.
Older millennials (aged 25 to 34) are more likely than any other generation to spend most of their clothing budget online. At its current rate, the online penetration of apparel will grow to 25 per cent by 2020, double the level at the close of 2015.
Primark profit up 36 per cent
For the half year Primark’s operating profit rose 36 per cent. Sales were up in double-digits. Primark saw a substantial increase in selling space, which together with its strong consumer offering, contributed to a further increase in its share of the total clothing market.
Primark’s retail revenue rose 21 per cent at actual exchange rates and a 11 per cent currency-neutral rise. Operating profit was up three per cent. Primark performed well in the UK and sales was seven per cent ahead of last year with a strong increase in its share of total clothing market. This was driven by a two per cent growth in comparable sales and an increase in selling space.
In continental Europe, sales and market shares increased strongly. In the Netherlands, where sales densities are high and some stores are over-trading, the company added 32 per cent more retail selling space over the last year, including a flagship store in Amsterdam. Consequently, total sales in the Netherlands increased by 18 per cent but comp sales declined.
Overall, European sales for the group were level with last year but were one per cent ahead excluding the Netherlands. The company also continued to develop and evolve its US store offering.
Netherlands to source apparels from Albania
The Netherlands wants to forge ties with Albania. The country is exploring opportunities to cooperate with Albanian companies, who are active across the garment value chain. Albania is seen as a great opportunity for Dutch brands and buyers who want to source sustainable and responsible garments and shoes.
Albania’s garment and footwear sector produces the country’s top exports and mainly relies on cheap labor costs. The sector’s annual turnover accounts for 40 per cent of the country’s total exports. The quality of work is good. The majority of garment and footwear factories produce for Italian quality brands. Albania’s strategic geographical location allows an easy and rapid reach to the Netherlands. Add the ability to source small quantities and this is a sourcing country that offers good options for small and large Dutch fashion brands.
Also Albanian companies offer competitive production costs, short lead times and eagerness to open up to the world and move up the value chain ladder towards full cycle production. On the other side, Dutch companies offer a dynamic and innovative market, an experienced entrepreneurship attitude and commonly reliable partnership when it comes to orders’ payments.
The Netherlands has emerged as the second largest foreign direct investor in Albania in the past couple of years and is on track to further increase its presence in the Balkan country thanks to increased investment in the oil industry.
Farmers up the ante against mega textile park in Surat
Farmers from the coastal villages in Olpaad taluka in Surat have sought immediate involvement of the industries department to stop the process of allotting land at Pinjrat for the development of mega Textile Park by the Southern Gujarat Chamber of Commerce and Industry (SGCCI).
The Khedut Samaj Gujarat (KSG) has written to Gujarat industries commissioner Mamta Verma, as farmers of the remote Pedaganjam village in Prakasam district protested against the proposed mega textile park to create world class infrastructure to facilitate setting up of apparel manufacturing units.
Farmer say they are not against the development of industries in the region but are concerned that setting up of the park will harm environment and affect hundreds of fishermen. For the mega textile park, SGCCI has formed a special purpose vehicle (SPV) Textile Processing Park Association (TPPA). The park will be set up on 70 lakh sq. m. of land owned by the state government with initial investment of Rs 1,500 crores. The park would accommodate around 100 textile processing units, 40 water jet weaving units, around 225 garmenting units and other textile ancillary units. As per the proposed, around 50 per cent of the fabric manufactured in the processing units will be converted into home textiles and garments.
The company has carried out the environmental impact survey of the land. Since 277 hectare land for the park development will be received thus, the it does not fall under the Coastal Regulatory Zone (CRZ) Act says SGCCI, B S Agarwal. Agarwal also added that the development of mega park will change the face of coastal villages and many unemployed youths will get employment in the textile mills.
Ethiopia attracts Tirupur garment exporters with free land
Ethiopian and is offering free land as a government delegation has extended an invite to Tirupur-based garment producers to set up an apparel manufacturing facilities in Ethiopia. The investors of Ethiopian would get the benefit of preferential tariff benefits of zero import duty, when exporting clothing to markets of the US and EU.
Tadesse Haile, state minister for exports and investment feels Ethiopia is an ideal investment destination for Tirupur-based apparel exporters as exports from Ethiopia to the US and EU and would not attract duty as against shipping from India. Already one unit from Tirupur had set up facilities in Ethiopia and another is in the process of starting production.
The minister further added because there are abundant skilled labor in the country, investors definitely benefit from the world’s lowest energy rates. In order to speed up exports, the country is located in the horn of Africa has recently started a high speed train between Addis Abba, and Djibouti port, which is well connected to several major importing countries.
Cotton turns 'white gold' after highest productivity in Punjab
Joint director, Punjab agriculture, JS Bains says this year cotton is likely to make a revival in several Southwestern districts where paddy was grown in the last few seasons. Cotton, which is often termed by farmers as 'white gold' for bringing higher remuneration, is set to regain lost ground in Punjab where the area under the crop is expected to rise by more than 50 per cent after it fell to ever lowest 2.56 lakh hectares in the last year. The revival of the fibre is buttressed by the highest productivity of 756 lint kg per hectare in kharif season 2016-17 compared to lowest ever 197 lint kg per hectare in 2015-16.
Due to extensive damage caused by whitefly this kharif season cotton acreage is expected to jump over four lakh hectares in Punjab after two-years of consecutive decline in the area. In recent years farmers had opted for paddy in this region that traditionally grew cotton after yield declined and liberal sanction of new tube wells facilitated paddy sowing also the state has recorded highest ever cotton productivity in 2016-17 says, Bains.
By now, the expected revitalization of cotton has caused a spurt in demand for cotton hybrid seeds in North. There is also a rise in the demand for cotton hybrids in Punjab and Haryana. Further Bains says, this year the agriculture department has arranged for teams of surveillance, scouts to control the weeds.
Cordura presents heritage denim at Kingpins Amsterdam
Cordura’s Re/Mastered collection is inspired by iconic 20th century utility silhouettes. The collection is a tribute to Cordura denim and is made using specially engineered Cordura fabrics from leading mills Arvind, Artistic Milliners, Cone Denim, and Kipas.
Arvind’s classic Cordura Denim is well washed and worn and has been hammered hard in the line of duty. Artistic Milliners’ heavy duty, indigo blue, specially engineered 15 osy Cordura denim has been uniquely re-mastered for a heritage work wear outfit.
Taking inspiration from across Europe and different decades of the 20th century, a classic 1960s-style Dutch utilitarian field jacket combined with retro French motorcycle pants has been re-imagined through Cone Denim’s vintage-inspired Cordura red-edge selvedge denim.
Kipas Cordura canvas fabric has been custom dyed in British khaki to create a heritage work outfit. The silhouettes created for the collection borrow from functional shapes and authentic details of iconic garments from the past, taking inspiration from work wear, motorcycling, and even military applications. From ’60s firefighter jackets to brewery aprons, to mechanic’s coveralls, the new collection re-imagines these original pieces.
All garments in the Re/Mastered collection were specially dyed and finished to give the fabrics an authentic worn heritage look and feel that is central to the collection’s style. Cordura is presenting the Re/Mastered collection at the ongoing Kingpins Show in Amsterdam from April 19 to 21.
Chinese sportswear market gallops ahead
The Chinese sportswear market is growing at 11 per cent. Sportswear is finding success where other types of apparel are beginning to struggle. While the athletic apparel market in China rose by 11 per cent in 2016, overall apparel grew at less than half that rate, with an increase of five per cent.
Gym membership in the country doubled since 2008, and the number of marathons rose from 51 in 2014 to over 100 just two years later. The country is also taking action to tackle the rising number of health problems such as obesity and diabetes, and has launched a five-year fitness plan that will make investments in sports and fitness facilities.
China’s demographics are positioning it as an excellent market for athletic goods. It has a population of 415 million millennials, as well as the world’s largest middle class. People with higher incomes tend to participate in more leisure activities, including sports, so this growing demographic of young workers with disposable income is providing a large market for active wear.
Active wear is increasingly becoming accepted as everyday clothing, including in the office and sometimes even at weddings.
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China sheds polyester overcapacity, industry reviving
China’s polyester industry is reviving. Many Chinese polyester manufacturers are recovering from a recent period of overcapacity. Global demand for polyester is expected to grow faster than the capacity of Chinese manufacturers. Most demand for polyester fiber comes from China, India and Southeast Asia-based apparel, garments and home furnishings manufacturers. China alone accounts for 65 per cent of global consumption.
The manufacturing capacity of the whole industry in China is rising at three per cent a year. Global demand is growing at five to six per cent. Chinese polyester manufacturers are recovering in a positive direction from the overcapacity damage in 2015.
Xinfengming is China’s second largest polyester filament manufacturer and sells products across Southeast China and 12 countries globally. The company had a revenue of 17.5 billion yuan in 2016. Two decades ago, the US and Europe dominated the global polyester market. Today, the Asia-Pacific region has become an important location for polyester manufacturing with availability of cheap labor.
This shift was possible because of the Multi Fiber Agreement which helped to build mutual relationships between developed countries like the US and the European Union and developing nations like China.
Top brands focus on eco clothing
Sustainable clothing is striving to clean up the apparel industry’s reputation as the second most polluting industry on the planet. Mango has a new, mostly organic cotton collection in stores this season. Zara’s collection spotlights, among other green fabrics, a closed-loop material called Refibra made of recycled Tencel and cotton scraps.
H&M has a pleated gown in a fabric called Bionic, a polyester made from recycled plastic shoreline waste. The Swedish clothing giant has a target of using exclusively sustainable fabrics by 2030.
The definition of sustainable can vary widely, depending on the brand, but it generally involves some combination of greener supply chains, sourcing eco and recycled fabrics, manufacturing locally or ethically offshore and minimizing waste, polluting chemicals and energy consumption.
So every brand has to find its own eco recipe, depending on its financial and material resources and values. Ethical fashion brands are going after a growing demographic of aspirationals, a mix of hopeful millennials and Gen-Xers, that like to shop but prefer supporting brands with integrity.
Brands are entrenching sustainability throughout the supply chain. They're building proper sustainability teams instead of just tacking on a sustainable marketing director and green washing.
Brands are starting to calculate what climate change will do to their bottom line while coming to terms with their businesses' cost to the planet.
ADB aiding African designers
The African Development Bank has launched an initiative to assist fashion entrepreneurs in South Africa and Nigeria and Kenya. It is targeting to improve skills, financing, the supply chain, access to markets and handle many other challenges. The bank’s ‘Jobs for Youth in Africa’ strategy aims at creating 25 million jobs for youth on the continent as well as equipping an additional 50 million in the next decade.
African entrepreneurs have to import most of their materials, seek markets and build their own capacity by investing on their own. There has been a rapid growth in fashion designers across the country but without supporting infrastructure such as manufacturing, cotton production and marketing. Other challenges are problems with skills, especially marketing skills, financing that is difficult to obtain, expensive real estate, online payment issues in a region where banks are scarce, insufficient production capacity and so on.
The ADB aims at addressing these issues and empowering and funding the industry to produce local fabric and cut down fabric imports. Production of fabrics will also help designers from Africa get the fabric of their choice. African Development Bank commands huge funds and is known for its multi-billion infrastructure projects such as roads.
Swissmem looks to boost Egyptian textile performance
"Intended to strengthen the already well-established industrial ties between Egypt and Switzerland and to initiate a major step towards the revival of Egyptian textile manufacturing sector, national association Swissmem held a two-day symposium in early April in Cairo. Egyptian cotton is known worldwide for its quality and strength in applications such as shirts and bedsheets. Textile production, using both local and imported cotton, is a vital contributor to Egypt’s economy, ranking behind only tourism and Suez Canal revenues in the generation of income."
Intended to strengthen the already well-established industrial ties between Egypt and Switzerland and to initiate a major step towards the revival of Egyptian textile manufacturing sector, national association Swissmem held a two-day symposium in early April in Cairo. Egyptian cotton is known worldwide for its quality and strength in applications such as shirts and bedsheets. Textile production, using both local and imported cotton, is a vital contributor to Egypt’s economy, ranking behind only tourism and Suez Canal revenues in the generation of income.
Collaborations to move forward
Switzerland’s textile machinery suppliers, in order to empower the industry, have now initiated a major step towards revival of Egyptian textile manufacturing, with a highly-successful two-day symposium (April 4-5, 2017) in Cairo. A total of 13 association member companies presented their latest machines and systems to an audience of 400, including representatives of the major textile producers from the private and public sectors, as well as delegates from various universities and research institutes.
As the first of European textile machinery-producing countries to plan an event of this type, Switzerland recognises the enormous potential for renewal of Egypt’s textile sector. The devaluations, while making Egyptian goods theoretically more attractive in export markets, have also seriously impacted on the cost and accessibility to Egypt’s textile companies of new production technology from the major producers. The Swissmem symposium addressed this issue head-on, with direct offers of assistance in the key area of financing capital imports. Ernesto Maurer, Swissmem President, told the symposium that Switzerland is ready to support Egypt in its striving to re-connect with the worldwide textile community. He was referring to difficulties in accessing foreign exchange funds and the high costs associated with this, which have been a major obstacle to Egyptian companies seeking to renew their equipment and take up new technology. Funds need to be created prior to new investments, and here the Swiss textile machinery companies can help. Sometimes, it is also the case that service and upgrade of existing equipment can be easier to achieve than complete renewal.
Seeking solutions
Swiss textile machinery producers enjoyed strong export sales to Egypt in the years up to 2013, but the country’s economic and political uncertainties since then have seen shipments decline to only 20 per cent of previous levels. Now, with vigour Egyptian textile manufacturers are set to expand their markets, improve production capability and product quality, Swissmem is confident of providing them both the financial and technological solutions they require. Ernesto Maurer highlighted that Egypt will find a way back to its previous position of strength, and its leading role in the world of high quality fabrics. The Egyptian cotton brand ‘Giza 100’ once stood as a synonym for quality in textile raw materials. Swiss textile machinery industry is an enthusiastic partner in facilitating and stimulating this revival. The 13 Swissmem companies taking part in the symposium were: Luwa, Amsler Tex, Heberlein, SSM Schärer Schweiter Mettler, Saurer (Embroidery), Rieter Components (Bräcker, Graf, Nobibra and Süssen), Stäubli, Jakob Müller, Retech, Loepfe, Maag, Benninger, and Santex-Rimar.
