Garment exports from has gone up 4.08 per cent in fiscal 2014-15. Knitwear exports increased 3.13 per cent year-on-year while woven shipments grew five per cent. Export earnings from the apparel sector were 5.24 per cent below annual target. Over 80 per cent of the country’s export earnings come from the garment sector, which was able to reach its target of annual export earnings only once e in 2013-14, in the last four years.
Exporters blame the fall in earnings on the shipping problems caused by the political crisis in January-March. Moreover the devaluation of major currencies—dollar, ruble and euro—is also responsible for the shortfall in target. Overall exports rose 3.35 per cent year-on-year in 2014-15, though the amount was well below the year’s target. Exports surged in June, the last month of the fiscal year, an increase of seven per cent from the previous month and an 8.68 per cent growth from a year earlier.
Jute and jute products exports grew 5.34 per cent year-on-year, home textiles 1.49 per cent, and leather and leather goods 0.56 per cent. Frozen foods declined 10.99 per cent year-on-year and furniture fell 8.55 per cent in fiscal 2014-15.
Kenya wants to expand its exports to the US beyond textiles. An opportunity has been provided with the renewals of African Growth and Opportunity Act (AGOA). The US Congress has renewed the 15-year old AGOA, which grants duty free access to imports sourced from countries in Africa.
Kenya currently exports less than 10 products to the US, out of the 6,400 which have been listed under trade promotion laws. Most of Kenya’s exports are textiles produced in the export processing zones. Kenya was among the first countries to qualify for export under AGOA in 2001 and since then textiles and apparel have dominated the composition of exports to the US. Apparel exports under AGOA tripled from 2001 to 2006. Under AGOA Kenya has increased employment, provided extra income to urban and rural workers and boosted its economy.
But bilateral trade has been in favor of the US, as Kenya imports more. US exports to Kenya have generally been manufactured high value goods such as aircraft parts, machinery, electronic equipment, pharmaceuticals, organic chemicals, plastics, and fertilizers. Kenya’s exports to the US are relatively lower priced goods and commodities such as tea, textiles, apparels, handcrafts, and processed nuts.
Copenhagen International Fashion Fair (CIFF), the leading trade show for premium brands in northern Europe, has released the names of three designers who will showcase their collections at the August edition of the fair. CIFF focuses and strives to create a platform for each brand to form new and lasting relationships with buyers and press. It moves forward and forms personal bonds with the brands, creating a unique and personal environment for designers and talents to show their work and develop their brand.
One of the designers is Swedish Louise Körner. Körner graduated with honors from Istituto Marangoni in London, in 2011, launched her own brand after working for Muuse. She will show in the Sleek area for the Spring/Summer ’16 fair.
LeatherProjects, another new brand, was founded in 2011 and sells high-quality leather goods handmade in Copenhagen. LeatherProjects will also show at Sleek. The last new brand, Wilk, to show in the Lab area, was founded in 2014 by Danish designer Anna-Louise Wilk. Wilk designs for the unworried women who dare to throw themselves at life – women who insist on fun and games and who don't sit around and wait for better times.
ciff.dk/
Egypt has halted all cotton imports in a bid to assist the production and marketing of the local crop. The market for Egypt's high-quality, extra-long staple cotton, once dubbed the country's white gold, has been in declining for years. Just six months earlier, the government had announced an end to support for farmers. It told farmers not to grow the crop unless they had contracts in place to sell it. At the time, the government felt cultivating Egypt’s long and extra long cotton, which competes with the US pima variety for high quality fibers, was too expensive. By then Egypt's own textile firms had shifted their focus to creating low-quality products with cheap raw cotton imports.
Egypt liberalised its cotton sector in 1994, exposing farmers to volatile global prices and rising fertiliser costs. Cotton acreage has fallen dramatically since the heyday of the 1960s, when Egypt produced cotton from up to 9,24,000 hectares helped by fixed state prices. Current production is barely half of that.
Egyptian cotton is regarded the world’s finest. The length of the fiber makes it possible to make the finest of yarns without sacrificing the strength of the yarn. The strength of the fiber makes fabrics more solid and more resistant to stress.
The Indian cotton textile sector which has not been doing too well for the past few years, could now see stability in current financial year. The sector would maintain an overall stable outlook led by stable spinning margins in the cotton yarn segment, range-bound cotton prices and favorable domestic and export demand.
However, the outlook for cotton yarn exporters is negative due to a slowdown in demand for yarn, particularly from China, leading to softer yarn realisations and lower capacity utilization. Unfavorable cotton-polyester staple fiber spreads have hurt substitution demand for synthetic fibers and synthetic yarn. Lower export competitiveness of Indian synthetic yarn also contributes to the subdued outlook as import and central excise duty continue on man-made fibers.
Last year, EBITDA margins for textile firms were affected after a 20 per cent decline in cotton prices. As a result inventory held by textile firms too saw lower profit margins. In the current financial year the margins could recover in the range of 10 to 13 per cent. Pakistan and Bangladesh are one of the biggest players in the textile sector. Currently, India has a small share in the global textile trade but is well positioned to gain from weak input prices and growing demand for apparels.
Lectra, the world leader in integrated technology solutions dedicated to industries using soft materials: fabrics, leather, technical textiles and composite materials—has announced the release of DiaminoFashion V6R2, the latest version of its marker-making solution. This new release expands the scope of its automated marker-making capability, producing better results and bigger savings in the cutting room.
Fashion companies and apparel manufacturers today are operating in a marketplace that has been transformed by fast fashion, moving at a pace that makes it difficult to remain both profitable and competitive. “The industry norm has moved from two big collections a year to a steady stream of low-quantity orders in a variety of styles, sizes and colours. This complexity has put enormous pressure on businesses, who need to find new ways to improve productivity and cut costs,” says Céline Choussy Bedouet, Chief Marketing Officer, Lectra, adding, “Because fabric makes up such a large portion of clothing’s cost price, an efficient marker-making process that optimizes material usage can be a real competitive advantage.”
Part of Lectra’s fashion and apparel offer, DiaminoFashion helps streamline the development process and keep production costs down without sacrificing product quality, forming an integral part of a lean process from product development to cutting room. With DiaminoFashion, companies can plan strategically to ensure they get the most out of every last inch of fabric—sometimes before even a single physical prototype is created. This latest version brings manufacturers one step closer to fully automated marker making with new added controls that make it possible to take fabric flaws and quality issues into account automatically.
www.lectra.com
Prima MU closed on a positive note with exhibitors, clients and organisers showcasing satisfaction over the networking opportunity. The first, important step towards the diversification and globalization of Milano Unica, following the development of the Shanghai edition, created a meeting point which brought 900 selected garment firms and a total of 1.580 operators to the hall hosting textile/accessories pre-collections, including 66 Italian exhibitors.
The early edition was organised to provide a preview of new fabrics and accessories proposals to top-end clients, who were able to discuss the creation of personalized collections with producers. “I can proudly say that the experiment has been successful,” said Silvio Albini, President of Milano Unica, adding, “The positive response from operators, not only Italian, now demands in-depth consideration on how to bring continuity to this event, not only on behalf of the Presidential Committee of Milano Unica, but, most of all, on behalf of all entrepreneurs in the sector.”
“Collaboration with Lineapelle has already proved positive for both tradeshow appointments – adds Massimo Mosiello, General Manager of Milano Unica. Mosiello further said that the edition will continue in New York on July 20, and then in Milan in September. “In addition, Filo, the yarn fair, will join us in Shanghai in October, with the support of Sistema Moda Italia,” he said.
The firms present were mainly Italian, with 63 percent European, 21percent Asian and 6 percent from the United States. Top-end clients representing brands such as Vuitton, Calvin Klein, Marina Rinaldi, Giorgio Armani, Gucci, Hugo Boss, Max Mara, The Kooples, Paul Smith, Thomas Pink, Turnbull & Asser, Etro, Marni, Versace, Alexander McQueen, visited the event.
The promising atmosphere was offset by data which, despite the positive trade balance, was not very favorable during the first quarter (export increased only for worsted and carded woolens) but confirmed the outlook of Centro Studi SMI, which, in collaboration with the University of Castellanza, foresees a growth in annual turnover at the initial phases of the production chain.
The next edition will be in New York on July 20 to 22, during New York Textile Week. Milano Unica XXI will follow from September 8-10 with its innovations on trends and the On Stage event, in collaboration with Woolmark and the MonteNapoleone Association, sponsored by the City of Milan. 2015 will close with Milano Unica World in Shanghai which will take place at the National Exhibition and Convention Center from October 13to15.
www.fieramilano.it
The Philippines cotton industry is facing huge competition on home turf as the United States cotton sector officials were scouting the country for local manufacturers to carry their products. As Cotton Council International ASEAN representative, Kraipob Pangsapa points out, demand for cotton grew in the Philippines, but the use of US cotton had shrunk. Pangsapa says they have to increase sales by five per cent this year and growth will fast forward if more deals are sealed with Phinilippine manufacturers.
According to the Cotton Council International, of the average 40,000 metric tons of lint consumed by the country per year, valued at $66.57 million, at least 97 per cent of cotton is being imported, mainly from the US. The local industry, inspite of favourable soil and climate, is facing a major setback due to numerous socio-economic and technical factors, such as the cotton bollworm issue.
Pangsapa says to address and aid rising demand of cotton in the country, Cotton US plans to partner with two big local brands to introduce their products to buyers. The Cotton Council International has 19 licensees divided into six categories: women’s wear, men’s wear, men’s innerwear, children’s wear, home textiles, and personal care.
Cotton USA brand was introduced to garment manufacturers and consumers in 1994 and on June 26, the CCI’s, marketing and promotions arm of the United States cotton industry, formally re-launched its 26-year-old flagship brand Cotton USA in the Philippines. And as Cotton Council International President Dahlen Hancock says their brand has been highly successful. The new generation of consumers needs to hear why cotton is such a wonderful product and why U.S. cotton is the premier cotton for textile and garment manufacturers and consumers. Usage of raw US cotton has reduced in Philippines but in the consumer and retail side, Philippines is stronger than Thailand.
South Africa faces factory closures resulting in thousands jobs losses. According to Etinne Vlok, the director of South African Clothing and Textile Workers Union’s South African Labour Research Institute (Salri), the South African clothing industry’s tough times are due to the lack of support from the local clothing retailers. This has also resulted in factory closures and thousands losing their jobs.
The latest employment statistics from Stats SA reveals there have been job loses in due to closer of factories. The data, based on Quarterly Employment Survey (QES) for the March 2015 quarter showed that there was a year-to-year rise of 1.5 per cent in the number of people employed across the CTFL industry from March 2014 to March 2015. Besides, there was a 1.5 per cent rise in number of employees from December 2014 to March 2015. The sector saw a rise in total number of employees, from 87,386 to 88,657 year-to-year and from 87,319 to 88,657 quarter-to-quarter.
However, the clothing sector’s overall national numbers dropped from 210,000 to around 100,000 between the years 2002 and 2010, mentioned Vlok. Vlok added, as Stats SA only records national figures and not provincial ones, he estimated the numbers in this sector of the Western Cape dropped by a similar total over the same period—from about 80,000 to about 30,000 currently. It was caused by a flood of cheap imports, both legal and illegal, mainly from China.
This means products manufactured locally are able to compete better with imported ones. In 2000, the situation was the reverse, it was cheaper to import, which contributed to the jobs bloodbath in clothing sector. It is against this backdrop that one looked at the numbers from the Stats SA survey, which showed a small increase. Vlok further said the industry was stabilising and numbers in the survey too further confirm this.
Indorama Synthetic's first quarter revenues fell 5.41 per cent compared to the same period last year. But for the second half of the year, revenue will be driven by additional production capacity of mill spun yarn. The budgeted capital expenditure this year will be used to increase production capacity at the mill spun yarn capacities in Indonesia and Uzbekistan. Meanwhile, total production has reached 60 million meters a year, and polyester production capacity is 277 thousand tons a year.
The company exports to 80 countries around the world such as North America, South America, and Europe. In 2014 exports were equivalent to 67 per cent of total revenue. In the first quarter of this year, exports reached 67.89 per cent of total revenue. Indorama has three factories. For now, the focus is on spun yarn. Increased production capacity is expected. The company is looking to increase revenues in 2015, amounting to $850 million, up from last year’s $726.02 million.
The company was incorporated in 1986. Indorama Synthetics is one of Indonesia’s largest exporters. A continuous process of reinvestment and productivity enhancement programs has made Indorama Synthetics one of the most competitive producers of polyester worldwide.
The spun yarn division accounts for over 20 per cent of the company’s revenue. With a capacity of over 2,50,000 spindles and over 50 per cent of its output being exported, the company is one of the largest exporters of spun yarn in Indonesia.
www.indoramaindia.com/
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