German Textile Tech Sales Up 20%, New Orders Down 17%
German textile care, fabric, and leather technology manufacturers saw sales increase 20% in real terms in the first eight months of 2023, with sales from Germany up 61% year-on-year and from abroad up 9%. However, new orders fell 17% short of the previous year's result in the same period, with orders from within Germany down 7% and orders from abroad down 20%.
German suppliers of laundry and dry-cleaning technology increased their exports by 2% to €239 million in the first seven months of 2023, with Poland, France, and the USA the most important export markets. German sewing and garment technology also saw exports rise by 3% to €247 million in the same period, with the most important customer markets being Italy, the USA, and France.
Manufacturers of shoes and leather technology in Germany even recorded an increase of 19% to €37 million in the period January to July 2023, with the main customer countries being the USA, Mexico, and France.
Italian technology suppliers also reported growth in exports in all three sectors in 2022. Italian exports in the laundry and dry-cleaning technology sector increased by 2% to €442 million in 2022 and were primarily shipped to Turkey, Poland, and Bangladesh.
Exports by Italian sewing and garment technology manufacturers also increased by 17% to €317 million in 2022. The main customer countries were Turkey, the USA, and Bangladesh. Italian shoes and leather technology suppliers increased their exports by 9% to €309 million in 2022, with the main customer countries being China, France, and Spain.
The mood among European textile care, fabric, and leather technology manufacturers is currently subdued, with the outlook uncertain, due to the tense geopolitical situation, ongoing labor shortage, and rising energy and primary product costs.
However, the steady increase in customer demands for automation, digitization, and sustainability gives hope for a surge in investment and thus an improvement in the order situation.
Schoeller unveils FLEX SHIELD: Ultimate protection and comfort
Swiss textile manufacturer Schoeller Textil AG has unveiled its latest collection, FLEX SHIELD, focusing on the intersection of protection, comfort, and durability. In response to modern consumers' desire for products that balance functionality with comfort, the FLEX SHIELD collection offers a range of textiles designed to provide both protection and freedom of movement.
Antonio Gatti Balsarri, Chief Commercial Officer at Schoeller Textil AG, emphasized the collection's commitment to dynamic protection that allows unrestricted movement. Each item in the collection incorporates Schoeller's pioneering textile technologies, ensuring breathability, thermal regulation, wind, and water resistance. A standout technology is the schoeller ceraspaceTM, boasting remarkable abrasion resistance that outperforms high-quality leather.
Moreover, Schoeller's focus on intelligent textile technologies enhances fabric properties, prolonging the lifespan of high-quality textiles and contributing to environmental preservation.
The FLEX SHIELD Collection will debut at the A+A event in Duesseldorf from October 24-27, 2023. Schoeller's dedication to quality, innovation, and Swiss craftsmanship shines through in this latest release, catering to the evolving needs of the modern consumer.
ITMF Survey: Global Textile Industry struggles amidst rising costs and weak demand
The Global Textile Industry Survey (GTIS) by ITMF, conducted in September 2023, reveals a cautious sentiment prevailing in the global textile sector. The key news angle is the persistent struggle of companies across the textile value chain, grappling with mounting costs and sluggish demand.
The business situation indicator paints a grim picture, standing at -27 percentage points, while business expectations have stagnated at around +20 pp since July, defying hopes of a boost from the Chinese economy.
Despite concerns about weakening demand, a global economic hard landing remains unlikely. Order intake briefly improved in May 2023 but plummeted in July and hit a new low in September (-28 pp), with the entire value chain operating on minimal orders.
The report does offer a glimmer of hope as order backlog slightly increased to 2.2 months in September, but the overall capacity utilization rate remains low at 69%, with manufacturers expecting this trend to persist.
One persistent concern is the impact of high inflation rates driven by soaring energy and raw material prices. However, the survey indicates that order cancellations are not a significant issue, and inventory levels remain steady along the textile value chain.
SIMA urges Tamil Nadu CM for textile industry support
The Textiles and Clothing (T&C) sector in Tamil Nadu, known as the backbone of the state's economy, is grappling with multiple challenges that threaten its stability and global competitiveness. With the industry contributing significantly to the state's economy, generating employment for over 60 lakh individuals, and contributing substantial foreign exchange earnings and GST revenue, the current scenario demands attention.
The global recession, exacerbated by factors like the Russia-Ukraine conflict, has led to a reduction in the purchasing power of international consumers, resulting in decreased export orders. Additionally, issues such as the shortage of quality cotton, high import duties on cotton, price volatility, and stringent Quality Control Orders have led textile manufacturers to scale down production, eroding global competitiveness.
As Tamil Nadu prepares to host the Tamil Nadu Global Investors Meet 2024, with aspirations to become a USD 1 trillion economy by 2030, it is imperative to strengthen policy initiatives. Other states have enticed textile investments with lucrative incentives, including capital subsidies and power subsidies, making the power-intensive sector competitive.
The textile industry, which was once a magnet for investments due to its power cost advantage, now faces an uncertain future. Unless the state government revisits policies, especially power tariffs, the survival of textile mills in Tamil Nadu remains in jeopardy.
Dr. S.K. Sundararaman, Chairman of The Southern India Mills' Association (SIMA), has appealed to Chief Minister M.K. Stalin to reconsider energy policies, including annual banking facilities for older windmills and network charges for rooftop solar panels. These measures are critical to sustaining the industry's competitiveness amidst a challenging environment.
Global Textile Industry remains cautious despite slight improvement in Order Backlog
The ITMF's Global Textile Industry Survey (GTIS) conducted in mid-September 2023 found that survey participants exhibited a cautious sentiment regarding the current business situation. The indicator for the business situation stood at -27 percentage points (pp), as companies in the entire textile value chain were struggling with rising costs and weak demand. Business expectations have remained unchanged since July at around +20 pp.
Order intake recovered in May 2023, but flattened in July and remained very weak in September (-28 pp). The entire textile value chain is running on minimum levels of orders. As long as brands and retailers do not increase orders, the entire value chain will continue struggling. Order backlog slightly increased globally, from 1.9 months in July to 2.2 months in September 2023. This indicator had been on a falling trend since the end of 2021.
The average capacity utilisation rate dropped again globally (69%). Textile manufacturers expect this rate to remain low in six months’ time as well.
Weakening demand has been the major concern in the global textile value chain for a year. In September 2023, this concern grew even stronger due to high inflation rates measured in the last few months, a phenomenon fueled by high energy and high raw material prices. Nevertheless, participants seem not to be concerned by order cancelations and inventory levels remain average along the textile value chain.
Apparel Group and Forever New Partner to Launch Womenswear Brand in Middle East
Apparel Group, a leading fashion conglomerate, has partnered with Forever New, a renowned global womenswear brand, to launch the brand in the Middle East.
The partnership will see the opening of three flagship stores in Kuwait and the launch of an online presence on 6thStreet.com in the UAE.
Forever New is known for its contemporary elegance and style, offering women timeless fashion pieces that blend seasonal trends with feminine silhouettes and distinctive detailing.
Neeraj Teckchandani, CEO of Apparel Group, commented on the partnership, saying that the company is excited to bring Forever New's unique aesthetic and quality collections to the fashion-savvy consumers of Kuwait and the UAE.
He added that the collaboration is a testament to Apparel Group's ongoing commitment to elevating the fashion landscape in the region and providing unparalleled shopping experiences.
Dipendra Goenka, CEO of Forever New, said that the company is proud to partner with Apparel Group to further expand its presence in the Middle East.
Better Cotton x Cotton Egypt Association renew strategic partnership
Better Cotton, the world's largest cotton sustainability initiative, and Cotton Egypt Association (CEA), the organisation responsible for promoting and protecting Egyptian cotton worldwide, have renewed their strategic partnership to further enhance the yields and sustainability credentials of Egyptian cotton while ensuring fair working conditions for farmers and workers.
Enhance Sustainability of Egyptian Cotton
The event was an important opportunity for dialogue between Better Cotton producers, supply chain actors, and key stakeholders from the British retail industry. It is anticipated that the event will result in increased demand for more sustainably produced Egyptian cotton.
Khaled Schuman, Executive Director of CEA, said that the event was a celebration of years of dedication, collaboration, and hard work that has led to the success of the two organizations in driving the sustainability of Egyptian cotton. He added that the great interest shown by retailers and the support from all stakeholders in attendance will pave the way for more success, more production of Egyptian sustainable cotton with Better Cotton's standards, and more uptake from retailers.
Key Takeaways:
Better Cotton and CEA have renewed their strategic partnership to further enhance the yields and sustainability credentials of Egyptian cotton.
The two organizations aim to ensure fair working conditions for farmers and workers.
The event was an important opportunity for dialogue between Better Cotton producers, supply chain actors, and key stakeholders from the British retail industry.
It is anticipated that the event will result in increased demand for more sustainably produced Egyptian cotton.
Levi's Celebrated for Branding Excellence
Levi’s, the iconic brand that epitomizes classic American style and effortless cool, has achieved a remarkable milestone by winning the prestigious Superbrands status. Alongside nine other exceptional brands, Levi’s was honored at a grand ceremony held at the Intercontinental Hotel, Dubai Festival City on the 28th of September.
The Superbrands organization, globally recognized as an independent authority and arbiter of branding excellence, celebrates outstanding brands and promotes the discipline of branding. This accolade serves as a testament to Levi’s relentless commitment to quality, innovation, and customer satisfaction.
Neeraj Teckchandani, CEO of Apparel Group, expressed his strategic perspective on this recognition, emphasizing that receiving the prestigious award is both an honor and a validation of their commitment to excellence and innovation. The award underscores their unwavering dedication to delivering unparalleled quality and value, reflecting the strength and resilience of their brand portfolio. Neeraj Teckchandani also praised the dedicated team whose consistent efforts enhance the brand’s reputation and strategically position them for continued growth in the competitive global market.
Levi’s exceptional ability to thrive in the competitive market reinforces its status as a leading brand in the global fashion and lifestyle industry. The award highlights Levi’s unique resonance with consumers, offering distinctive products and experiences that stand out in the marketplace.
Furthermore, this recognition underscores Apparel Group’s exceptional talent for nurturing and growing brands in a fiercely competitive market, further solidifying their position on the global stage.
Forest Essentials' Commitment to Excellence
Recognition for branding brilliance
Along with other 9 brands, Forest Essentials received this recognition at a grand ceremony held on the 28th at the Intercontinental Hotel, Dubai Festival City.
Significance of the Superbrands Award
The Superbrands organization, renowned globally as an independent authority and arbiter of branding brilliance, is dedicated to honoring exceptional brands and fostering the discipline of branding. The accolade is a testament to the relentless pursuit of quality, innovation, and customer satisfaction that each of the winning brands epitomizes.
CEO Neeraj Teckchandani's Perspective
In his strategic perspective on the recognition, Apparel Group CEO Neeraj Teckchandani stated, "Receiving this prestigious Award is both an honor and a valuable affirmation of our strategic commitment to excellence and innovation. This recognition underscores our relentless pursuit of delivering unparalleled quality and value, reflecting the strength and resilience of our brand portfolio. I am immensely proud of our dedicated team, whose consistent efforts enhance our brand's reputation and strategically position us for continued growth and success in the competitive global market."
Forest Essentials' Commitment to Excellence
This award bear witness to Forest Essentials’ exceptional ability to grow and exceed in the competitive market, reinforcing its status as a leading brand in the global fashion and lifestyle industry. The award demonstrates Forest Essentials’ unique ability to resonate with consumers, offering products and experiences that stand out in the marketplace.
Apparel Group's Expertise in Nurturing Brands
This recognition capitalizes on Apparel Group's exceptional ability to nurture and grow brands in the competitive market, further solidifying their position in the global market.
Indians to spend more on festivals, Cash payments more popular: UBS Report
Festive Shopping to Boost Indian Economy This festive season, Indians are planning to spend more than ever, as per a recent report by UBS released on Wednesday.
The report, which surveyed 2,000 Indians from 10 cities, found that 70% of them intend to increase their spending, with an average rise of 15% this year. Cash Payments Preferred over Digital The report also showed a preference for cash payments over digital ones, with the former increasing from 27% to 35% and the latter decreasing from 71% to 58%. This indicates a tendency to buy more local and offline products, which could support Prime Minister Narendra Modi’s “Vocal for Local” campaign. Local Businesses to Benefit The preference for cash payments is also a boon for local businesses, which may not accept digital payments. Moreover, the rise in festive spending is expected to stimulate the Indian economy. Recommendations for Businesses The UBS report has several implications for businesses.
First, businesses should offer attractive deals and discounts during the festive season to lure customers.
Second, businesses should facilitate cash payments, especially for local customers.
Third, businesses should invest in marketing and advertising campaigns to reach out to potential customers during the festive season.
Summary The UBS report suggests that Indians are eager to splurge on festive shopping this year, with a growing inclination to buy local and offline products. This is a positive sign for the Indian economy and could increase the sales of local businesses.
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ReHubs Europe Launched with Ambitious Goal to Recycle 2.5 Million Tons of Textile Waste by 2030
ReHubs Europe, a new international non-profit organization dedicated to boosting textile recycling, was launched at a kick-off meeting hosted by Mango. The launch follows three years of intense preparation and the publication of a Techno-Economic Study that analyzed the business case, cost, and environmental benefits of upscaling textile waste recycling in Europe.
Mission and Goals
ReHubs Europe will gather key players from the textile value chain, including textile manufacturers, fashion brands, collectors and recyclers, the chemical industry, and technology providers. The organization's joint ambition is to recycle 2.5 million tons of textile waste by 2030. This will require up to 250 industrial projects across Europe, covering different types of fiber-to-fiber recycling.
Industry Response
ReHubs Europe is the industry's response to the upcoming EU legislation, which sets compulsory collection and sorting of textile waste by 2025. The organization aims to upscale recycling capacity and bring together different players from the value chain to work together.
Leadership
ReHubs Europe will be led by Executive Director Chris Deloof, who has long-standing experience in the textile sector and is a passionate advocate for cross-industry collaboration. Deloof is also deeply committed to driving the transition towards a circular economy, which aligns seamlessly with ReHubs Europe's mission.
Industry Support
Euratex President Alberto Paccanelli expressed his satisfaction with the launch of ReHubs Europe, stating that the initiative proves the textile industry's commitment to moving towards a new circular business model. Paccanelli also thanked Robert van de Kerkhof (Lenzing) and Mauro Scalia (EURATEX) for their work in achieving this landmark.
Membership
ReHubs Europe is open to any companies that wish to invest in textile waste recycling in Europe. The organization will operate from Brussels in close partnership with EURATEX.
EURATEX and CIE urge EU for unified competitiveness strategy
In anticipation of the extraordinary Council meeting on October 6th in Granada, Alberto Paccanelli, President of EURATEX, and Jose Vte Serna, President of CIE, have jointly urged the EU Presidency to devise a fresh competitiveness strategy. This strategy is seen as crucial for reviving the European industry and ensuring its competitiveness in the coming decades. The proposed approach integrates trade, energy, state aid, and sustainability policies into a unified framework, aimed at bolstering a modern European manufacturing sector.
To fortify Europe's industrial foundation, the leaders emphasize three key points: securing a cost-competitive supply of clean energy, fostering innovation and nurturing a skilled workforce, and advocating for a level-playing field on sustainability globally.
They criticize the disjointed and conflicting objectives witnessed in recent years across trade, energy, industrial, and sustainability policies. The leaders warn that such inconsistencies may push European industry out of the market, potentially leading to de-industrialization and increased vulnerability to geopolitical challenges.
In light of this, they stress the need for a coherent set of policies that prioritize the competitiveness of Europe's domestic industry, including the textile sector. They propose expanding the scope of the Net-Zero Industry Act to encompass textiles and clothing, recognizing the industry's historical significance and its role in providing essential products across various sectors.
The European textile and clothing industry, with its 1.3 million direct jobs and diverse applications from fashion to automotive, aircraft, construction, and personal protective equipment, is deemed crucial to Europe's social and economic fabric. The leaders underscore the importance of maintaining Europe's capacity to produce high-quality, sustainable textiles and call for inclusion in future competitiveness policies and associated funding.
In essence, the call from Paccanelli and Serna underscores the vital role of the textile industry in Europe's economic landscape and advocates for a holistic approach to secure its competitiveness.
GOTS unveils game-changing Due Diligence Handbook
The Global Organic Textile Standard (GOTS), in collaboration with the UpRights Foundation based in The Hague, has unveiled the groundbreaking "GOTS Due Diligence Handbook for Certified Entities." This release marks a significant milestone in advancing sustainability, human rights, and ethical business practices within the textile sector. Ruslan Alyamkin, responsible for Standard Development and Implementation (Social Responsibility) at GOTS, emphasized the handbook's importance, stating it signifies GOTS's unwavering commitment to supporting Certified Entities on their path towards responsible business practices that prioritize human rights, social justice, and environmental integrity.
The handbook, rooted in recognized international frameworks, including the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector (2018) and the UN Guiding Principles on Business and Human Rights (UNGPs), provides GOTS Certified Entities with clear guidance on implementing due diligence processes. This empowers them to adhere to domestic due diligence laws like the German Supply Chain Law, French Vigilance Law, and forthcoming EU legislation.
The GOTS Due Diligence Handbook is a comprehensive blueprint designed as a structured roadmap, guiding Certified Entities in establishing and refining their management systems. It emphasizes a holistic due diligence approach, enabling GOTS-certified companies not only to identify but also proactively prevent and mitigate potential adverse impacts on human rights and the environment. This initiative equips Certified Entities to navigate potential challenges, transforming them into leaders in responsible business conduct within the textile sector. Combined with the GOTS 7.0 criteria, this handbook paves the way for a more sustainable and socially conscious approach.
Additionally, GOTS is currently undergoing the OECD Alignment Assessment, demonstrating its dedication to aligning its criteria with international standards. This process, expected to conclude in January 2024, signifies GOTS's commitment to sustainability, transparency, and credibility. GOTS's ongoing efforts also include further guidelines for Certification Bodies, empowering them to enhance auditing and verification techniques for compliance with GOTS 7.0 criteria, reinforcing its commitment to excellence and improvement.
ICA and TextileGenesis join forces for ethical cotton trading
The International Cotton Association (ICA) has solidified its dedication to ethical trading and sustainability by entering into a Memorandum of Understanding (MoU) with TextileGenesis. This collaboration aims to strengthen the textile industry by fostering digital cooperation. Notably, one significant aspect of this partnership is the sharing of information about companies that have failed to fulfill arbitration awards. The ICA will provide TextileGenesis with the names of such companies, enabling the platform to alert its users, effectively cautioning them against engaging with these entities.
ICA President Tim North emphasized the significance of this partnership, underscoring TextileGenesis' leadership in textile value chain traceability. The MoU implies that participants in the cotton supply chain will be informed if they are dealing with a company marked as "not safe to trade with" by the ICA. Both organizations are committed to promoting ethical business practices, sustainability, and contract integrity within their memberships.
Amit Gautam, CEO & Founder of TextileGenesis, highlighted the ICA's valuable insights into companies' arbitration commitments, which enhances risk assessment on their platform. The collaboration further strengthens the ICA's existing partnerships with various cotton standards organizations, solidifying its role in shaping responsible and sustainable trade practices in the industry.
Additionally, the ICA has reaffirmed its dedication to secure trading through formal commitments and bilateral agreements with Better Cotton (BCI). Furthermore, the ICA has established Memorandums of Understanding (MoUs) with various influential organizations, including the China Cotton Association (CCA), China National Cotton Exchange (CNCE), Cotton Association of India (CAI), Aid by Trade Foundation's Cotton Made in Africa (CmiA) initiative, the International Textile Manufacturers Federation (ITMF), and the U.S. Cotton Trust Protocol. These partnerships underline the ICA's commitment to fostering responsible and ethical practices in the cotton industry and its role as a key player in promoting sustainability and fairness throughout the global cotton supply chain.
