The government said nine special vostro accounts have been opened with two Indian banks after permission from the Reserve Bank of India (RBI) to facilitate overseas trade in Indian rupee. Sberbank and VTB Bank-the largest and second-largest banks of Russia respectively-are the first foreign lenders to receive approval after the RBI announced the guidelines for overseas trade in the rupee in July.Another Russian bank Gazprom, which does not have its bank in India, has also opened this account with Kolkata-based UCO Bank. "Nine accounts have been opened. One in UCO Bank, one in Sber, one in VTB and six with IndusInd Bank. These six are different Russian banks," commerce secretary Sunil Barthwal said while releasing trade data. The move to open the special vostro accounts clears the deck for settlement of payments in rupee for India-Russia trade, enabling cross-border transactions in the Indian currency. The RBI has allowed these special vostro accounts to invest the surplus balance in Indian government securities to help popularise the new arrangement. On when the rupee trade with Russia may begin, Barthwal said there is a process involved in it and hopefully it would materialise soon. Barthwal said he held a meeting with officials of UCO Bank, RBI and the Department for Financial Services and discussed ways to promote rupee trade.

Source: The Economic Times

Kolkata and Tirupur ensuring their growth in Innerwear with different focus altogether

Innerwear market in India has been sustainably growing for years, the reason being the unorganised sector moving towards being organised to a great extent. The focus of Indian consumers is rapidly shifting towards buying right, and inclination towards healthy lifestyle is also contributing to the growth of innerwear segment. Millennials and GenZ consider fashion underwear a status symbol today as they tend to change their innerwear every 6 months on an average, as per various reports. Taking advantage of these demand drivers, Kolkata and Tirupur – the two established hubs of innerwear manufacturing – are on the growth track but in different ways. Mainly known for men’s innerwear, Kolkata’s giant companies and mass brands Dollar, Lux, Rupa etc., are continuously adding new product categories in the knitted segment, while Tirupur is focusing on innovative raw material, newer prints, design oriented innerwear. Especially, Tirupur is witnessing new players in innerwear manufacturing like Faso, Carnation Creations, Cruso, Tailor and Circus and more. As far as Kolkata’s companies (mass brands) are concerned, they are mainly known for underwear and have natural growth in the same. Over the years, they started covering a wide range of knitted garments which is continuing even now. The main reason for these companies to add newer product categories is that by doing so, they can earn more with less effort as from manufacturing to retail, they have an entire system in place. And in this exercise of expanding product portfolio, their core strength and major focus on underwear is not impacted any way. A few of such products which are new additions are women’s innerwear, athleisure, loungewear, gymwear, sleepwear, warmers, leggings and vests. Dollar Industries is now also focusing on womenswear like brassiere. “Our latest offering in brassiere product range has opened a new gate for the women’s product segment and has received good feedback from the market. We are sure that it will help us capture a reasonable share of the market in the coming years,” says Vinod Gupta, MD of the company. Another underwear giant Lux Industries Ltd., is witnessing growth in the underwear segment as it is hopeful of making Lux Cozi a Rs. 1,000 crore brand in the next three years. The company clocked a turnover of Rs. 2,300 crore in 2021-22 and is expecting around 12 per cent growth and may touch Rs. 2,600 crore in the current financial. At the same time, it also has plans to enter the kids’ segment in a big way. Saket Todi, ED of the company believes that there is no national brand catering to the kids’ innerwear market and so there is a huge potential to grow the segment. Last year, the company had crossed US $ 1 billion market capitalisation in the fast-growing innerwear market.

Source: The Apparelresources

India’s merchandise exports dip 17% to Rs 2.4 lakh crore

‘The October trade data was impacted by the Diwali and Dussehra festive season as factory workers tend to go on leave,’ said Commerce Secretary Sunil Barthwal. India’s merchandise exports fell 17% to $29.78 billion (approximately Rs 2.4 lakh crore) in October from $35.45 billion (Rs 2.8 lakh crore) in the previous month, while imports declined to $56.69 billion (Rs 4.5 lakh crore) from $61.16 billion (Rs 4.9 lakh crore) in the same period, the data by the commerce ministry showed on Tuesday. The merchandise trade deficit in October increased to $26.91 billion (Rs 2.1 lakh crore) from $25.71 (Rs 2 lakh crore) billion in the previous month, reported Reuters. A trade deficit happens when the amount by which the cost of a country’s imports exceeds the value of its export. “India’s overall exports [merchandise and service] in October 2022 are estimated to be $58.36 billion [Rs 4.6 lakh crore], exhibiting a positive growth of 4.03% over the same period last year,” the Centre said on Tuesday. “Overall imports in October 2022 are estimated to be $73 billion (Rs 5.8 lakh crore), exhibiting a positive growth of 11.82% over the same period last year.” Export sectors that recorded negative growth included gems and jewellery (21.56%), engineering (21.26%), petroleum products (11.28%), ready-made garments of all textiles (21.16%), chemicals (16.44%), pharma (9.24%), marine products (10.83%), and leather (5.84%). Sectors that recorded positive growth in October include oil seeds, oil meals, electronic goods, tobacco, tea, and rice. Oil imports rose by 29.1% to $15.8 billion (Rs 1.2 lakh crore), while gold imports declined by 27.47% to $3.7 billion (Rs 2.9 lakh crore) last month. “The October trade data was impacted by the Diwali and Dussehra festive season as factory workers tend to go on leave,” Commerce Secretary Sunil Barthwal told The Hindu. “This is a seasonal blip… We will assess whether this is a trend that will persist after looking at how November trade numbers turn out.” Barthwal also said that the World Trade Organisation has reduced global trade growth forecasts and the International Monetary Fund has downgraded Gross Domestic Product growth projections.

Source: The Scroll

India-UK Free Trade Deal Talks Likely To Conclude By March 2023: Report

The ongoing negotiations for the proposed free trade agreement between India and the UK is likely to be concluded by March 2023, Press Trust of India reported quoting government sources as saying. India and Britain launched negotiations for the free-trade agreement (FTA) in January with an aim to conclude talks by Diwali (October 24), but the deadline was missed due to political developments in the UK. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. Sources said that the commerce ministry has fixed an internal deadline to close the FTA by March next year.Reduction or elimination of customs duty under the pact would help Indian labour intensive sectors like textiles, leather, and gems and jewellery to boost exports in the UK market. The UK is seeking duty concessions in areas like Scotch whiskey and automobiles. New Delhi is also looking for easy business and temporary visa norms for skilled professionals. Experts have raised concerns that India should not ease norms in its intellectual property rights norms under the trade agreement. The bilateral trade between the two countries increased to $17.5 billion in 2021-22 compared to $13.2 billion in 2020-21. India's exports stood at $10.5 billion in 2021-22, while imports were $7 billion. India's main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and instruments, pharma and marine items. Major imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments, non-ferrous metals, chemicals and machinery. The UK is also a key investor in India. New Delhi attracted foreign direct investment of $1.64 billion in 2021-22. The figure was about $32 billion between April 2000 and March 2022. In the services sector, the UK is one of the largest markets in Europe for Indian IT services.

Source: The Ndtv

Weavers, Artisans From 11 States Including Odisha Participate In ‘Special Handloom And Handicrafts Expo’ In Delhi Janpath

Nearly 12 weavers and 13 artisans belonging to 11 states are participating in the ‘Special Handloom and Handicrafts Expo’ which was inaugurated by the Secretary Textiles, Ms. Rachna Shah here today. Addressing media persons, the Secretary Textiles emphasisised that the Government of India is continuously working through its various schemes with handloom and handicraft artisans. Support is being provided to them for better marketing, acquiring raw material, enhanced designing techniques and others, she said. On the occasion of 2nd Janjatiya Gaurav Diwas, the exhibition is an initiative of the office of Development Commissioner for Handlooms and Handicrafts, Ministry of Textiles, Government of India through National Handloom Development Corporation (NHDC) Ltd. to provide direct access to the handloom weavers and artisans to market their products to consumers. The exhibition enables an interface between the weavers/artisans and consumers. The week-long exhibition at Handloom Haat, Janpath will conclude on November 21, 2022. The exhibition will be open to public from 11 am to 8 pm on all seven days. Handloom and Handicraft sector is a symbol of our country’s rich and varied cultural heritage. The handloom sector of India engages 31 lakh and handicraft sector of India engages more than 30 lakh persons which is next only to agricultural sector in the country. The art of handloom and handicraft has traditional values attached to it and each region has exquisite varieties. The uniqueness of products such as Pashmina Shawl, Tussar Saree, Naga Shawl, Kotpad Saree, Madhubani Painting, Warley Painting, Art Metal Ware etc. to name a few attracts customers across the globe with exclusives art, weaves, designs and traditional motifs. Government of India has launched various schemes for Handloom and Handicrafts sector for branding of high-quality products with zero defects and zero effect on the environment to encourage and to give a distinct identity to the products, apart from highlighting the uniqueness of the products. It also serves a guarantee for the buyer that the product being purchased is genuinely handcrafted. All the exhibitors at the exhibition have been encouraged to display their products and thus aim to improve the earnings of the handloom and handicraft community. Handloom and Handicraft products drawn from some of the exotic locations of India are on display and sale at the exhibition.

Source: The Pragativadi

MEA, MoCI, MoE, MSDE jointly organise the first Virtual Global Skill Summit with Indian Missions ofTen Nations to build synergies towards fostering global skill mobility

To facilitate overseas mobility of the skilled workforce, the Ministry of External Affairs (MEA), Ministry of Commerce and Industry (MoCI), Ministry of Education (MoE) and Ministry of Skill Development and Entrepreneurship (MSDE) today jointly organizedthe first Virtual Global Skill Summit (VGSS) with the Indian Ambassadors /High Commission representing India Missions from ten nations. The summit aimed at institutionalizing a robust mechanism for exchange of information on skill requirements of countries and the skill availability in India. Shri Dharmendra Pradhan, Union Minister for Education, Skill Development and Entrepreneurship and Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution & Textiles co-chaired the Summit. Shri Rajeev Chandrasekhar, Minister of State for Ministry of Skill Development & Entrepreneurship, Electronics and Informational Technology (IT), Government of India graced the summit, Dr Rajkumar Ranjan Singh, Minister of State for Education and External Affairs and Shri V Muraleedharan, Minister of State for External Affairs and Parliamentary Affairs also graced the Summit with their presence. Aligning with the vision of Prime Minister Shri Narendra Modi, the Government envisions positioning the country as a preferred global hub for trusted skilled and certified workforce, and making India the skill capital of the world. This shall be achieved by creating world-class training infrastructure in the destination countries, propelling international mobility, and strengthening ties with foreign countries in specific areas to boost job opportunities for the youth. Addressing the Summit, Shri Piyush Goyal stated that it is remarkable to see the whole of the government approach today and have all ministries and India Missions, come together on a single platform bringing in convergence through skill development and drive partnerships fostering global skill mobility. He emphasised on in-depth sectorial and geographical mapping of available skills, related training infrastructure, stringent inspection processes, and language training. Shri Goyal also emphasised that serious negotiations need to be undertaken for dual degree and joint degree programs. This will facilitate opening of new opportunities for the Indian youth to work abroad. He said we must encourage on-the-job training and quality of skills should be maintained. This is an appropriate time for organising this Summit and skill development can be the foundation for an Aatmanibhar Bharat. Shri Dharmendra Pradhan said that following Prime Minister Shri Narendra Modi’s One Govt One Mission approach, this Virtual Global Skill Summit has been the opportune platform towards fostering partnerships for global skill mobility, creating robust policy framework, benchmarking with global standards and ensuring social security for Indian skilled professionals abroad, with all key line ministries, departments and country missions on a common platform. Shri Pradhan also said as we align ourselves to the Prime Minister Shri Narendra Modi’s 3T strategy which focuses on Trade, Tourism and Technology, India has huge potential to meet the global demand of skilled workforce. In digital economy & industrial revolution 4.0, India has become a natural leader which comes from our inherent ability to adapt to technology. With our efforts to impart high quality and new age skills, India has the potential to be the skill capital of the world, he added. The Minister further said that we should create stable model ensuring quality standards and work closely with the existing private players who already have the knowledge about the global supply chain market. It is imperative that we map job opportunities through our India missions, build capacity and train on relevant skill sets accordingly and encourage placements. With public-private partnership, multi-ministry approach, forward-looking policy framework, Government is set to play the role of facilitator in scaling up skill mobility by connecting Indian skilled professionals with global opportunities with a short-term and a long-term plan, he added. The summit deliberated on skill harmonization and bench marking of qualifications, quality standardization, capacity building, knowledge exchange to promote global mobility, employability, and readiness for the youth to join the global workforce. The demographic dividend has given India a competitive advantage- almost 54% of India’s population is above 25+ years which presents a good opportunity to provide overseas employment opportunities to the Indian youth in countries facing acute& ever-growing shortage of workforce. Indian Ambassadors from ten different countries namely Australia, France, Germany, Japan, Malaysia, Mauritius, Singapore, Tanzania, United Arab Emirates, and United Kingdom deliberated in this summit. NSDC International has recently conducted study to assess skilled demand in 16 destination countries (2022-2027). Basis the analysis, it has been reported that employability and high-quality skilled workforce will be the key challenge in the coming years, thereby, mapping of the opportunities for the Indian workforce is needed. United Arab Emirates, Kingdom of Saudi Arabia, Qatar and Germany are the top countries demand for the most skilled workforce in the future.

Source: The Pib

Getting crisis-ready: How SMEs can overcome a growth slump

Every business has its lows but events like the coronavirus outbreak can test even the best. A robust sales pipeline, new offerings and brand building, with some help from technology, can come in handy during a downturn Cut-throat competition, price wars, lack of innovation, bad service, supply-chain woes… the list of hurdles in the way of business growth is endless and forever changing. And it doesn’t even include the so-called black swan events like floods, a pandemic or political unrest.The coronavirus lockdown and the economic downturn have hit small and medium enterprises (SMEs) the hardest. Losses have been mounting and credit lines have dried up, there seems to be no end to SME troubles. More companies have shut down in the past four years than in the last 16 years.These trying times call for preparing for such setbacks and SME owners can use these guidelines to draw up their survival guides.

1 Keep building the sales pipeline

Businesses will always have highs and lows and sometimes lows are more frequent and prolonged, as is with the textiles industry. Every four years or so, this industry goes through a slump and the coronavirus pandemic dealt a double blow. Getting new customers for industrial businesses can be slow in a low season, which means as an SME owner, you can never stop your selling process.Reaching out to new prospects with content marketing, building relationships and providing value-added services for long-term returns will have to continue. Firing people is easy during bad times but the SMEs that let go off staff have suffered more in recent times. Keep your flock together. When the economic revival happens, you will grow faster. Have a wider base to drive growth. Contrary to what most SMEs think, in bad times, the effort to build a brand must be stepped up but without increasing the budget. Focus on innovative messaging, smart social media campaigns and one-on-one interactions using technology. The pandemic has taught us how virtual selling can be effective. Embrace metaverse meeting solutions for selling experiences.

2 Come up with new offerings

Some businesses were quick to understand market dynamics and moved fast to bag opportunities that the pandemic threw. Mask-making, home delivery of food and medicines, car servicing, lab testing and several such avenues opened up. Train your people to spot opportunities and seize them before others. Some businesses were quick to recruit and train graduates to be home lab test specialists. If it is any consolation, Airbnb, Uber, etc began their business during the economic downturn. Analyse not just your industry but your customer segment and find out the pain points. Offer solutions at reasonable costs and you cannot go wrong. Use lean startup models to quickly launch your services and improvise as you go along.

3 Execute meticulously

Do not wait to execute new ideas—lean management process, service excellence, a new product idea, etc. Once you spot an opportunity, put in place an execution plan with a clear stage-gate process and feedback loops. For new offerings, start with existing clients. Use discovery-driven planning to help with the execution of ideas.

4 Seek out more references

In a low season or during an economic downturn, most successful SMEs cater more to the service needs of their customers. They can’t afford to lose them. It is the right time to improve customer service processes. While you are at it, set objectives to get more references from each customer, and encourage salespeople to get more testimonials. Develop plans to partner with some customers to help them improve their productivity or efficiency. There are ways to seek references from customers: sometimes you have to ask for them or do a great value addition and the customer will offer references without you asking for them.

5 Plan for a positive cash position

Most retailers have a positive cash flow, with cash-paying customers and merchandise on credit. Some large retail chains get up to 150 days of credit. Not all businesses can do that. In B2B, most businesses run on credit. In rough times, the first thing most buyers do is squeeze suppliers, unless they are critical to their business. Finding ways to address positive cash flow is the key to managing growth in difficult years. Start a process to get pending payments, without antagonising them. Use factorial services if needed, or offer some incentives for timely clearance of invoices. Secure a moratorium and interest freeze from bankers for a limited period to get your act together. It is critical to be aware of your cash situation at any point in time during a crisis.

Source: The Moneycontrol

India moving at unprecedented speed towards development: PM Modi

India is working at an “unprecedented speed and unexpected scale” to develop itself and to meet the expectations of the world, Prime Minister Narendra Modi said during an interaction with the Indian community in Bali on Tuesday that was laced with cultural references and a celebration of the points of historical confluence between India and Indonesia India is working at an “unprecedented speed and unexpected scale” to develop itself and to meet the expectations of the world, Prime Minister Narendra Modi said during an interaction with the Indian community in Bali on Tuesday that was laced with cultural references and a celebration of the points of historical confluence between India and Indonesia. Addressing a gathering of some 800 members of the Indian diaspora and “Friends of India” on the sidelines of the G20 Summit in Bali, the Prime Minister said this was the “big difference” between India before and after 2014. He said this was “not due to Modi” but because of the speed and scale at which everything is being done. “India does not think small any longer,” he said, speaking in Hindi. “Today’s India, while taking pride in its heritage, staying close to its roots and aiming for the sky, is moving ahead to become a developed India.” The country’s roadmap for development includes the political and economic aspirations of the world, he added. This is being done not just for the people of the country but because the world has many expectations from India in the 21st century, and India sees this as “a responsibility and a duty and is moving ahead for the good of the world”, Modi said. Since 2014, when the BJP came to power, more than 320 million bank accounts have been opened -- as much as the population of the US -- and 30 million poor people have been provided free homes, he said. A total of 55,000km of national highways have been built, and the number of Indians who have benefited from free doses of Covid-19 vaccines is 2.5 times the population of the US and the European Union, he added. Other Indian initiatives in solar power, health care, and on the climate crisis will benefit the world, and India is standing shoulder to shoulder for a friend such as Indonesia, Modi said. South Asian countries are benefiting from India’s prowess in space and there is growing interest around the world in India’s home-grown defence hardware such as the BrahMos missile and Tejas combat jet, he added. Modi highlighted the special ties between India and Bali, the only Hindu-majority region of Indonesia, that go back thousands of years. He noted that while he was in Bali, people at Cuttack in Odisha were celebrating the Bali Jatra, a festival that celebrates trade relations between the two regions. He referred to the shared culture and religious practices of India and Bali, and said: “At a time when the grand Ram Temple is taking shape in India, we proudly remember the Ramayana tradition of Indonesia.” He added, “We often say it’s a small world. If we look at ties between India and Indonesia, these are not mere words but the truth. The waves of the ocean have kept alive these ties. Like those waves keep flowing, our ties are alive.” Indonesia has accepted people from India with love and they continue playing a role in the country’s progress, Modi said, adding that Sindhi people are active in textiles, sports goods, and the film and TV industries, while people from Gujarat are involved in gems, mining and agriculture. He recalled the Padma Shri awarded to Indonesian sculptor I Nyoman Nuarta in 2018, and the role played by Agus Indra Udayana in promoting Gandhian values. “Ties between the two sides are not just limited to good and happy times, there are also ties during times of sorrow. We share our joy and sorrow,” he said, noting that India had mounted Operation Samudra Maitri to help Indonesia after an earthquake in 2018. Both countries can learn much from each other, and Indonesia, like other countries, can benefit from Indian talent, technology, innovation and industry, Modi said.

Source: The Hindustan times

Out of the 205 MSMEs, 74 per cent are led by women entrepreneurs in the MSME Pavilion at the India International Trade Fair in Delhi

Union Minister for Micro, Small and Medium Enterprise (MSME), Narayan Rane on Tuesday inaugurated the MSME Pavilion at the ongoing 41st India International Trade Fair (IITF) in New Delhi. This year, the MSME pavilion has the highest ever participation of women led enterprises with 74 per cent of the MSMEs led by women entrepreneurs, mentioned the MSME Ministry in its official statement. The launch of the Pavilion in the Hall No. 4 of the IITF at Pragati Maidan was also attended by the Minister of State (MoS) for MSME, Bhanu Pratap Singh Verma. During the ceremony, Rane said that the fair will provide an opportunity to MSME entrepreneurs from different districts, especially women, Scheduled Caste/Scheduled Tribes to showcase their skills and products and create new opportunities for growth. The minister met many exhibitors participating in the MSME pavilion where 205 MSMEs are displaying their products across 26 sectors such as textiles, food, metallurgy, fragrances, footwear, toys, chemicals, electrical, leather, plastic, rubber, stone gem and jewellery among others. On the occasion of the 2nd Janjatiya Gaurav Divas, the Union Minister highlighted the contribution of tribal communities in the nation’s history and culture and underscored the need to re-energize the efforts for socio-economic development of tribal regions. Also Read: All Industries & Trade Forum appeals to PM Modi to impose import restriction on China and ASEAN countries to support MSMEs: Report Meanwhile, the Commerce and Industry Minister Piyush Goyal said more exhibitions similar to IITF must be organised and women entrepreneurs and MSMEs can be especially encouraged to participate in the next exhibition. He suggested organizing local fairs especially around festive and tourist seasons to encourage traditional and local handicrafts and handlooms.

Source: The Financialexpress

Tapping potential of garment waste

Eco-friendly, yarns made from recycled garment waste (locally called jhut) are learnt to have become very popular with global fashion brands. Some of the world's retail giants are said to be planning to use cent per cent recycled yarn-made apparel products by 2025-30. Bangladesh must get hold of this opportunity. But despite the enormous economic potential of this sector, little has been done at the policy level so far. On the contrary, the valuable garment waste or jhut produced here is learnt to have found its use in areas that has little or no economic prospect. For example, 35 per cent of the jhut material is reportedly being used as cheap fuel for heating boilers to generate steam at the gas-starved garment factories. Thus discovering the energy-generating potential of the garment waste, boilers are reportedly being imported from countries like China and South Korea, while some other entrepreneurs have been manufacturing boilers locally to meet the energy need of the country's garment factories. Add to this the lion's share (60 per cent) of the jhut from thousands of garment factories that is being exported to different countries including India, Hong Kong and Sweden where it (jhut) is being converted into high quality yarns through recycling. Those countries are making huge profit out of reexporting the recycled yarns to different garment manufacturing countries including Bangladesh. This is unfortunate. For such export takes place to the dismay of the local jhut-recycling textile units that can use a mere five per cent of the garment waste. Small wonder that these textile units, thus deprived of the locally recycled yarns, either have to shut down their factories or go for more expensive option of using imported yarn. The Export Promotion Bureau (EPB) data shows that during the financial year (FY) 2018-19, Bangladesh earned US$64.95 million through export of garment waste. But this amount is quite insignificant compared with what could be earned from exporting the recycled yarns and fabrics derived from the same garment waste to the global retail giants and fashion houses.Also, far from going that way, a large part of these leftover fabrics of the garment factories are being dumped in landfill sites! And such unconscionable wastage of the valuable jhut material from the garment industry has been going on since long for want of an appropriate policy to put those to better use. The good news is that the leaders of the apparel sector have, of late, become duly aware of the issue and are learnt to have been giving the attention that this long-ignored garment waste deserves.In this connection, the Readymade Garment (RMG) sector leaders have reportedly reasserted the immense economic potential that the garment waste or jhut holds at a recent city event. The potential, they further pointed out, lay in the high-quality fabrics, around 1.0 billion pieces of them, that could be made if roughly the 400,000 tonnes of garment jhut produced annually in the country could be recycled. The fabrics thus extracted from disposable garment waste can contribute a whopping US$3.0 billion annually to the government exchequer as revenue. What is more, Bangladesh can well become a recycling hub of the world by importing garment waste from the developed nations including the USA, the EU and Japan and then converting that into high value yarns and fabrics.Now to turn this immense possibility into reality, the local recycling enterprises would require adequate incentives including policy support from the government. Hopefully, the government would take urgent steps in this regard.

Source: The Financialexpress

Inside the green rush: Why ambitious businesses are angling for piece of EV pie

What do a textile businessman, an electrical cable maker, a firm that makes building construction material and a company that resurfaces airport runways have in common? Each of them wants a piece of the EV (electrical vehicle) pie.

Source: The Livemint

it’s hard to recycle discontinued fabric. Why not sell it instead?

What do you get when you buy a fabric company? Three years ago, Texas designer and showroom owner Lauren Hudson found out, when she rescued two heritage brands—Rose Cumming and Classic Cloth—from the throes of the Dessin Fournir bankruptcy. Along with inventory, some beloved patterns and marketing rights, she had also purchased a problem: What to do with the rolls and rolls of retired fabric? “When we acquired both, we pared down the selection a lot—we probably cut the lines in half,” says Hudson, who has relaunched the brands under the name Wells Textiles. “Some patterns we cut just to better curate the selection, others we cut because the mill went out of business, or because we no longer had the exclusive on the design … in the end we were left with thousands and thousands of yards of fabric we weren’t going to sell.”

Called “discontinueds,” forsaken yardage is something of a backdoor problem for textile brands of all sizes. Hudson found that fabric liquidators—yes, that’s a thing—would only offer pennies on the dollar for her stock, and the cost of transporting the rolls would far outweigh the revenue made selling them. Nor was there any kind of scaled fabric recycling program that Hudson could use. As best she could tell, thousands of yards of fabric were “quietly disappearing into the landfill … It’s pretty distressing.”She settled on a uniquely modern solution: Re-brand the fabric and sell it online, at an accessible price point. Launched just last month, Cottage Textiles is Hudson’s first foray into direct-to-consumer selling. The site offers up deadstock Rose Cumming and Classic Cloth fabric and wallcovering for often as little as $39 a yard.The selection includes a few chintzes and chinoiseries that might have fallen a touch out of style, but much Cottage Textiles’ wares would feel at home in a contemporary grandmillennial bedroom, and the site carries plenty of basics too—not to mention silk velvets for as little as $59 a yard. “A lot of these patterns were bestsellers and were retired for reasons that had nothing to do with their quality,” says Hudson. “It’s just: The mill closed.” Cottage Textiles represents both an inventory reduction strategy and a sustainability initiative. It’s also a complicated marketing maneuver. In an industry where designers are increasingly sensitive to clients having access to the same sources they do, “direct-to-consumer” can be a dirty word. It can also be risky for luxury brands to have inventory splashed across the internet on sale at liquidation prices. To that end, Hudson is quick to point out that there’s no crossover between Cottage Textiles’ selection and the contemporary relaunch of Rose Cumming and Classic Cloth. Likewise, Cottage Textiles’ website isn’t explicit about the origins of its selection—the names “Rose Cumming” and “Classic Cloth” are nowhere to be seen. “At Wells Textiles, we are committed to showroom distribution. I own the Wells Abbott showrooms. I’m in the showroom business on all levels,” says Hudson. “We’re creating something that’s completely separate from the trade—we’re not targeting the showroom client, that's not who we’re selling $39 fabric to. But there is a whole group of people that maybe can’t afford the services of a designer but still want beautiful fabric—look at something like Calico Corners. That’s the audience we’re trying to reach.” In setting up a DTC business, Hudson faces plenty of obstacles. The first will be finding a customer base online for a product that is notoriously difficult to sell to everyday consumers. At a time when online advertising is expensive and the pandemic home boom has tapered off, it will be an uphill battle. Another challenge: Stock is inherently limited. Once a Cottage Textiles pattern runs out, that’ll be it. But if the site is a hit, Hudson says she’ll invite other companies to sell their discontinueds. In spite of the hurdles, Hudson is optimistic, saying she’s already made some sales (the site operates like a normal e-commerce business, without sampling or a CFA process). And even if Cottage Textiles doesn’t turn into a cash cow, she believes it’s a worthwhile experiment, and not an expensive one. In setting up the business, she was able to take advantage of her warehouse, tapping into an existing logistics team who works on her to-the-trade textile lines. The last remaining snag? What to do with fabric if it won’t move online at a discount. “We’re still working on that, what to do with the fabric after it’s had its second life at Cottage Textiles,” she says. “I don’t really know what the answer is yet, but we’re going to figure it out—I want it to feel good. We, as an industry, need to figure it out.”

Source: The Businessofhome

India unveils Long-Term Low Emissions & Development Strategy at COP27

India yesterday presented its Long-Term Low Emissions and Development Strategy (LT-LEDS) report to the United Nations Framework Convention on Climate Change (UNFCCC) at the 27th Conference of Parties (COP27) summit in Egypt, laying out the steps it plans to take to achieve net zero by 2070. In a phased manner, India plans to transition to cleaner fuels and slash household consumption.

"This is an important milestone," said India's environment minister Bhupender Yadav at a COP27 event marking the report's launch. "Once again India has demonstrated that it walks the talk on climate change."

India's LT-LEDS focusses on six key areas to reduce net emission: electricity, urbanisation, transport, forests, finance and industry.

India has proposed increasing the use of biofuels, particularly ethanol blending in petrol, boosting the number of electric, public transport network expansion and using more green hydrogen fuel, an official release said.

Yadav said the country could not have a situation where the energy security of developing countries is ignored in the name of urgent mitigation.

The focus will be on the rational utilisation of national resources with due regard to energy security. The transitions from fossil fuels will be undertaken in a just, smooth, sustainable and all-inclusive manner.

The National Hydrogen Mission launched in 2021 aims to make India a green hydrogen hub. The rapid expansion of green hydrogen production, increasing electrolyser manufacturing capacity in the country, and three-fold increase in nuclear capacity by 2032 are some of the other milestones that are envisaged alongside overall development of the power sector.

Source: Fibre2Fashion

Decision on India joining IPEF trade pillar linked to return receipt

The decision on whether India would join the trade pillar of the 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) would depend on what the country would get in return, commerce and industry minister Piyush Goyal recently said. While 13 IEPF members have joined all four subjects—trade, supply chains, clean economy and fair economy—India has opted out of the trade pillar.

"With regard to joining the trade pillar of IPEF, India decides its strategy on its own terms...If you want binding commitments (from India) on different subjects, tell me what I am getting in return. It has to be good for my people and my country. What you give me in return will determine whether I will join the trade pillar. You negotiate and if we see some advantage, then we will join,” the minister said at a function organised by a media house in New Delhi.

The minister also expressed optimism that India-US bilateral trade in goods and services will reach $500-600 billion by 2030. Bilateral trade stands at about $175 billion now.

The United States is not looking for a new trade pact with any country, the minister said.

IPEF was launched jointly by the United States and other partner countries of the Indo-Pacific region on May 23 this year in Tokyo.

Source: Fibre2Fashion

INTER NATIONAL:

Walmart looking for general merchandise sales to rebalance as food, consumables surge

At the end of the third quarter, excess inventory was at just under $1 billion – roughly one-third of what it had been at the close Q2. Apparel and certain categories in general merchandise remain among the heaviest over-inventoried, according to John Furner, Walmart U.S. president and CEO. “We’ll continue to work through those. We said at the end of Q1 that we needed a couple of quarters to work through the inventory and we continue to do that,” he told investors during the company’s quarterly call this morning. During Q3, general merchandise comp was down in the low single digits at Walmart U.S. Sales were soft in home, electronics and apparel. Sales were strongest in lawn & garden, automotive and back-to-school classroom essentials. At Sam’s Club, the Home & Apparel segment comp increased in the high single digit range, with strength in housewares, apparel, sporting goods and seasonal. Inflation skews the mix. Although Q4 has gotten off to a good start, Walmart is operating on the assumption is that the consumer could slow spending – especially in general merchandise categories – due to persistent inflation pressures in everyday staples. When will general merchandise bounce back? One of the biggest changes this year has been the lop-sided portion of sales being driven by food and consumables. That imbalance is expected to continue into 2023, said John David Rainey, EVP/CFO. “We don’t have an anticipation that that bounces back next year,” he added. Market share growth: Trade-down customers are now shopping Walmart more frequently and buying from a wider range of categories than they were during the summer. The retailer is trying to hang onto them with its loyalty membership program and expanded online marketplace. Pricing: Walmart being Walmart, it is hoping to bring prices down next year as supply chain costs decline. For Q4, it is offering sharp prices in focused areas, especially in food. But it is also ready to cut prices further into the season if consumers start to pull back on spending. “The quarter’s just started. We’re trying to build in some conservatism,” said Doug McMillon, president and CEO of Walmart Inc. “We’ll see what happens in the rest of the quarter.”

Source: The hometextilestoday

H&M, Inditex among brands committing to source alternative fibres

H&M, Inditex, Stella McCartney and Kering are among a raft of companies to commit to a new Canopy-led initiative to purchase over 500m tonnes of low-carbon, low-footprint alternative fibres for the fashion textiles and paper packaging industries. Signed at this week’s COP27 summit in Sharm El Sheik, and spearheaded by environmental non-profit Canopy, the commitment towards more sustainable, lower-carbon alternative fibres – known as Next Generation Solutions – reflects a building urgency across industries to accelerate the transition to nature-positive business models. The market pull is essential to attract the investment necessary to scale these game-changing Next Generation alternative fibres on ecologically meaningful timelines, Canopy says. It is a move that will support the protection of the world’s vital forests and ecosystems and lower forest degradation pressures from the fashion and packaging supply chains. “We are thrilled to advance this commitment with forward-looking partners who are willing to challenge the status quo and in doing so provide a breakthrough for these game-changing technologies,” said Canopy founder and executive director, Nicole Rycroft. “This commitment will allow us to take a historic leap closer to the US$64bn of investments in sustainable alternatives needed to ensure forest conservation for our planet’s climate and biodiversity stability.” At last year’s UN Climate Change Conference, protecting nature was at the centre of commitments to deliver on global climate targets. Today one-third of the world’s most influential companies have yet to make forest conservation commitments, Canopy says, despite the scientific community’s warnings that at least 50% of the world’s forests need to be conserved or restored by 2030 to ensure global temperature rises stay below 1.5 °C. Figures from Canopy show that every year, over 3.2 billion trees are cut down to produce fibre for packaging and clothing, releasing vast amounts of CO2 into the atmosphere. Wood fibre alternatives – such as agricultural residues and recycled textiles – are readily available and can be scaled. Moving to Next Generation Solutions could help avoid almost 1Gt of CO2 emissions between now and 2030, it says. “At H&M GROUP, we are committed to becoming a circular business, in which moving towards more sustainable alternatives for our materials is crucial. Canopy has showed true leadership by bringing the fashion and regenerated cellulosic industries together with the purpose of reducing fashion’s dependency on forests,” said Madelene Ericsson, environmental sustainability business expert H&M The signatories have also committed to ensuring their respective supply chains are free of Ancient and Endangered Forests and are calling on industry peers to follow suit by shifting towards sustainable Next Generation alternative fibres such as ones made from agricultural residue or recycled textiles. When compared to forest fibres, Next-Generation Solutions have on average: 95% to 130% less CO2 emissions, 18% to 70% less fossil energy resource depletion, 88% to 100% less land-use impacts, and at least 5x lower impact on biodiversity/threatened species.

Source: The just-style

Textiles industry faces ‘legislative challenges’ to clean growth, report finds

Businesses that make new products from old clothing and waste textiles face ‘legislative challenges’ that stop them from selling their products, a new report finds. The report, published by the University of Exeter and produced for the Secretary of State for Environment, Food and Rural Affairs, highlights how the clean growth of Cornwall’s textiles and fashion industry can be achieved through recycling, repairing and refurbishing items of clothing. It looked at two Cornish Community Interest Companies (CICs) that create new products from textile waste and old clothes, which the authors describe as examples of “sustainable innovation, directly reflecting what the levelling up agenda foresees for many UK regions – not just Cornwall”.

Cultivate Cornwall and Upcycle Kernow will this year process an estimated total of 32 tonnes of fabrics, a figure set to double year-on-year. But the report finds that safety and labelling legislation for textiles, some of which dates from the 1980s, mean firms cannot sell all the products they make, representing a ‘barrier to clean growth’ for those businesses that use waste to make new products. Regulations on safety, including Product Safety Regulations 2005, Nightware Regulations 1985 and the REACH Enforcement Regulations 2008 were found to impose punitive extra costs for businesses repurposing textiles and fabrics, as they would be forced to meet the additional costs of safety tests. And regulations on labelling, such as the Textile Products (Indications of Fibre Content) Regulations 1986 and Textile Products (Labelling and Fibre Composition) Regulations 2012, intensify the labour process by requiring all refurbished products to have labels indicating material content while requiring businesses to develop their own infrastructure through which to categorise donated textile waste by its material type. This may not always be possible in where received fabrics lack their original labels, which means the businesses are not able to sell all the products they make. Dr Constantine Manolchev, senior lecturer in Sustainable Futures at the University of Exeter Business School, said: “Our report shows how clean growth can be achieved in Cornwall’s textiles and fashion industry. What Cultivate Cornwall and Upcycle Kernow are doing is bold and innovative. Their business innovation reflects the ambitious sustainability targets of the Levelling Up agenda but also goes beyond them – the two companies also engage with schools and train members of the local community. On the other hand regulations on safety and labelling mean they cannot sell all the products they make.

Source: The devonlive

Buying less and buying better is key to sustainability in fashion

For too long, sustainability loitered outside of the c-suite, by the water cooler and on the cutting room floor. Now, largely in part to citizen and business changes in priorities since the Covid-19 outbreak, sustainability is well and truly at the fore. Often, the focus is largely on how brands and businesses can change their operating plans to reduce their footprint. Yet a change in citizen behaviour – what and how they purchase – can also be highly influential when it comes to lowering environmental impact. The global fashion and textile industry has become a priority not only at a brand level, but a legislative one too. Key jurisdictions are setting bold and ambitious goals, which, ultimately, will drive better design and purchasing decisions. Whilst the war on plastic waste has been dominated by packaging and single-use products such as drinking straws and plastic bags, less focus has been given to plastic that’s inside our clothes. According to the 2017 Fibre of the Year report, 65 million tonnes of plastic was produced for textile fibres in 2016 alone. Yet many citizens are not making the connection between fibre and origin: that synthetic fibres are made from plastic and derived from fossil fuel. What’s even more alarming is that the 2021 Fossil Fashion report, released by Changing Markets, found that the production of synthetic fibres for the textile industry currently accounts for 1.35% of global oil consumption. This exceeds the annual oil consumption of Spain. And if the fashion industry continues with business as usual, in less than 10 years, almost three-quarters of our textiles will be produced from fossil fuels. Indeed, many global wardrobes have become a place of shame. Clothes hang there, untouched for years, while newer, cheaper garments burst in at a frantic place. McKinsey reports the amount of clothing has increased by more than 60% in the 15 years since the year 2000, while there has been a 40% drop in the amount of time clothing is worn, according to the Ellen MacArthur Foundation.

So, how can we change this?

“We need to increase our education when it comes to fibre choice and fibre impact,” explains The Woolmark Company General Manager Marketing and Communications Laura Armstrong. The global authority on wool’s recent research found that whilst fabric is considered in purchasing decisions, it’s all about feel and not environmental impact.“We need to appreciate the impact of synthetics to really appreciate the benefits of wool and other natural fibres.” Using science-backed research, The Woolmark Company champions the eco-benefits of Merino wool: a 100% natural, renewable, biodegradable and recyclable fibre. “It’s not just about what we buy, it’s equally important to consider what we don’t buy and when we are finished with that product, what we do with it. Wool is one of the most durable fibres, standing the test of time, remaining in our closets longer than any other fibre, it’s the most donated fibre and holds excellent recycling value,” explains Armstrong. “No other fibre has such a unique, well-established and commercially viable recycling pathway in both open- and closed-loop systems, allowing the fibre to stay in use and re-use for an indefinite amount of time. ”With recycling set to be an increasingly important topic for discussion, largely due to ambitious goals set out by the European Union, certain factors need to be taken into consideration. The nuances of this may not seem overly relevant, yet its implications reach far and wide. Take recycled polyester for example, almost all of which comes from plastic bottles. Many brands – large and small – champion their use of the fibre and use this as a way to reach their own sustainability goals. Yet recycled polyester is still a synthetic textile, which sheds microplastics into the air and ocean and can have negative impacts to both human and marine health.Recycling is just one piece of the circularity puzzle. Encouraging citizens to repair and reuse garments is essential in the circular economy. In fact, by encouraging better design and then repairing and reusing garments to keep them in use for longer, it alleviates the need to purchase new products and can therefore not only slow down the rate of consumption but also reduce the amount of waste produced. How often clothes are worn is the perhaps most influential factor in determining environmental impacts from clothing. Industry can also play a vital role in educating consumers about best-practice care methods to extend a product’s lifetime.

Making the right purchasing decision

Choosing clothes and textiles made from renewable resources is another way to make better, less impactful design and purchasing decisions. For brands, avoiding using non-renewable fibres derived from petrochemicals and fossil fuels and investing in natural, renewable and biodegradable fibres such as wool and cotton, companies enable farmers who produce these fibres to earn a decent income which allows them to reinvest back into their farm. Regeneration is a key element of the circular economy. It’s the transition away from using finite fossil fuel resources to using renewable resources. It’s about restoring and protecting ecosystems and returning biological resources back to nature. Natural fibres are well-placed to be part of this regenerative movement. Wool, for example, comes from sheep – an animal which offers a remarkable service: they commonly graze land that’s unsuited to growing food crop; they convert pasture which has no use to humanity into food and fibre to feed and clothe humanity; they help regenerate soil health and biodiversity; and are often brought onto exhausted cropping land to enable it to rest and recover. How wonderful it is then, that the clothes we make and wear can be derived from animals, or plants, which can help regenerate our earth. The term regenerative agriculture is still relatively new to the fashion industry; however, many Australian woolgrowers have long used regenerative farming techniques to enhance the biodiversity, fertility, health and carbon sequestration of their farm environment. By supporting the natural functions of the environment, regenerative agriculture is a holistic farming approach used by fibre producers that focuses on developing the biology and fertility of soils as the basis of the entire farm ecosystem. By keeping soils healthy when producing these natural fibres, farmers can, in turn, help the fashion industry become more sustainable. The journey towards a sustainable future is constantly evolving, and the final destination is yet to be determined. A shared commitment to forging a circular approach with all tiers of the textile supply chain is needed to accelerate and deliver sustainable solutions. Far too often work is done in silos, limiting scientific and innovative opportunities to close the loop. “We work with partners right across the supply chain to encourage and deliver sustainable solutions,” explains Armstrong. “As a company, we invest in sound, scientific data to firstly identify hotspots both on and off farm, and then collaborate and innovate solutions to these challenges.” It’s a big ask for citizens to change their purchasing habits. We know all too well that change does not happen overnight. By considering fibre and material impact, brands can inspire citizens to change their purchasing habits to buy less but buy better; buy trans-seasonal, timeless garments that are made to last, and buy garments made from fibres which help to regenerate our planet. About the author: Lisa Griplas is The Woolmark Company’s global sustainability communications strategist. With more than 15 years’ experience in marketing and communications, she has sound experience in leading content strategy and now specialises in sustainability communications. Her expertise lies in helping stakeholders understand, manage and amplify their sustainability performance to drive positive, truthful and meaningful conversations. Lisa’s knowledge of textiles and fibres – and their impact allows her to help evolve the business towards a sustainable future. Before joining The Woolmark Company, she was a journalist reporting on a variety of different areas, honing her writing and research skills for a wide audience.

Source: The just-style

Energy crisis: Economic and social implications for Bangladesh

Bangladesh is currently experiencing a major energy crisis, which has led to increased load shedding, a shortage of gas, and other primary energies for industry and business. Load shedding has become more severe and frequent, lasting several hours each time. This has adversely affected people's lives, industry, business and economy. On the one hand, people have been suffering greatly in their daily lives, with significant constraints on their economic activities and productivity, as well as their income and livelihoods. On the other hand, industry and business sectors have been facing multiple challenges such as increased costs of production, under utilisation of capacity, low production, decreased competiveness in regional and global markets and even incurred losses. This has severely affected production and business activities, particularly in energy-intensive industries such as textiles, leathers, RMG, ceramic, metal, and steel. The situation has become so desperate that now different industries are asking government to ensure supply of gas and electricity even in a higher price. Obviously, shortage of energy and load shedding has many implications to the economy and society. It is crucial to understand the economic and social costs of the energy crisis as well as its short and long-term consequences.Energy is a strategic and essential good for any economic activity. With the increased frequency of load shedding since July 2022, Bangladesh manufacturing and business sectors have been facing huge challenges. Various activities in manufacturing operations are energy intensive, and depend heavily on the power supply. The shortfall in energy has enormously affected the industrial sector in Bangladesh. Load shedding affect manufacturing operations and production as well as increases operational costs and thus reduces competitiveness in regional and global market. Load shedding has significant economic and societal costs, both direct and indirect. The direct economic costs arise from the disruption of production, increased cost of production, spoilage of goods, and increased cost of adjustment in the system. Moreover, industries and business have to incur significant additional costs in the form of costly backup energy, which is much expensive than the grid supplied energy. Increased operational costs of production arises due to expensive backup energy provisions, such as private diesel-fired generation in the industrial sector and small battery storage devices in the residential sector.The indirect cost of energy shortages and load shedding arises from industries' loss of opportunity as well as decline in the level of economic activity in different sectors of the national economy like wholesale and retail trade, transportation and communications, banking and insurance as well as the loss of investment and entrepreneurship. This has huge implication on economic growth, employment generation and poverty alleviation as load shedding and energy crisis not only hinder the smooth operation of production but also affects jobs, employment, and even economic growth. Moreover, load shedding has a negative impact on the country's investment climate, undermines confidence, and reduces both domestic and foreign investment. Although estimating the indirect costs of load shedding and energy shortages is difficult, it is reasonable to assume that the total economic cost of energy shortage in Bangladesh's industry and business sectors would be very high and even limiting economic growth, creating job losses and causing social unrest. The costs of energy shortages and load shedding are especially large for small and medium industries and enterprises that cannot afford expensive back-up systems. While large industries and manufacturers have their own generators, the majority of small and micro industries do not have enough capital to purchase backup generators. Due to their low revenue, investing in alternative energy sources is a difficult challenge for many small industries and business firms. As a result, their operations are halted when load shedding takes place, which increases downtime, lowers productivity, and occasionally damages equipment and even degrades the product quality. According to the Tannery Industrial Estate in Savar, "one-time load shedding damages 1,000 to 2,000 pieces or 40,000-45,000 square feet of leather at the dyeing or colouring stage." The various chambers of commerce and industry, as well as other industrial associations across the nation, have reported that the level of production in a number of industries has decreased because of the ongoing outages. The problem is more serious in energy-intensive sectors like textiles, leathers, metal and steel industries. For instance, one of the biggest exporters of clothing in Bangladesh, Team Group, has been forced to deal with three hours of load shedding every working day, which has messed up the company's production schedule and cost them an extra Tk 2 crores in operational expenses. According to the Bangladesh Textile Mills Association (BTMA), the gas crisis has forced textile mills to cut production since March 2022, and the situation has deteriorated to the point where the mills can no longer operate at more than 35-40 per cent of their capacity. To minimise the cost, BTMA is now willing to bear the extra cost for reliable supply of gas and electricity. BTMA also promises that if the government provides them with gas worth $1.2 billion, they will be able to export products worth $48 billion. Considering the magnitude of the economic and social costs associated with energy shortages and their concomitant impact on industrial production, exports, unemployment, and poverty alleviation, it is critical for the government to ensure uninterrupted and smooth supply of energy to the industrial sector. Government must take decisive actions to bring about change before we run out too much of time and eliminate the expensive rental power plants as early as possible. Much of the current crisis is rooted with the policy failures and institutional inefficiencies including limited exploration of indigenous primary energy sources, high dependency on imports of primary energy, continuation of expensive quick rental schemes. Corrective measures must be taken to improve institutional efficiency, reduce corruption, and promote competition in the energy sector, as well as remove special provisions of purchasing power and reduce losses. The government should explore alternative energy import sources, such as refined oil and even liquefied natural gas (LNG) from Russia or other countries. Efforts need to be intensified further to import electricity from Nepal and Bhutan through India, as Nepal is keen to export electricity to Bangladesh. Multifaceted energy diplomacy may be able to assist the country in navigating this critical period. Supplying energy even at a higher price but lower than self-generation cost would be advantageous for industries that are highly susceptible to energy shortages and load shedding. It is imperative for the government to develop a robust strategy and master plans for integrated development of primary energy, power generation, transmission, and distribution systems as well as diversification of energy sources.

Source: The Financial express

Can 'gripper' robots shift garment making from Asia to the West?

HAMBURG, Germany -- Clothing companies in Europe and the U.S. are hopeful they can finally automate one of the most costly and time-consuming steps in the garment-making process: moving fabric from one part of the factory to another.Laser-guided cutting machines and computer-controlled sewing machines have been staples of the industry for years, but transferring fabric between such machines is still largely done by the human hand, as robots struggle to handle soft fabrics precisely. This reliance on workers is one reason so much garment manufacturing has shifted from the West to Asia, where labor costs are often lower. Textile researchers at Germany's RWTH Aachen University estimate that in manufacturing a piece of clothing, handling time -- as distinct from the cutting or sewing steps -- accounts for about 80% of production time and roughly 80% of factory costs. Various approaches to solving the problem were on display at the recent Texprocess trade fair in Frankfurt. Germany-based Robotextile showed off robots capable of picking up individual layers of fabric from a pile and arranging them according to a preset plan. French sporting goods retailer Decathlon, meanwhile, has conducted trials using robotic grippers made by Germany-based Zimmer Group to automate the sewing of foam pads into cyclist pants. The technology uses artificial intelligence to help the robots deal with wrinkles in the fabric. "These trials are about holding production in Europe or bringing it back, and the success of reshoring efforts will depend on the quality of the technical solutions," said Erik Bauhaus, a research and development engineer at Zimmer Group. Sewbo of the U.S. has taken a different approach, using water-soluble solution to temporarily stiffen a sheet of fabric so that a robot can handle it as if it were working with a rigid material like metal or plastic. Using textile-gripping robots "saves time and resources for training workers, and the technology can be a good support for fashion brands to quickly respond to the domestic market demand," Fan Di, a professor at the Hong Kong Polytechnic University's School of Fashion and Textiles, told Nikkei Asia. The garment industry's traditional business model has been to place bulk orders with manufacturers in Asia, often with significant lead times. Reshoring production could help clothing companies in Europe respond more quickly to changing trends, Fan added. "Brands may want to reshore high value added processes for product categories that require fast response to the domestic market, while leaving the less time sensitive production and low value added processes overseas." Bringing home production could help ease life for European retailers in particular. After battling supply disruptions during the pandemic, they are now grappling with falling demand due to inflation sparked by fallout from the Ukraine war. Researchers at Germany's Niederrhein University of Applied Sciences recently warned that the business as usual approach is becoming too risky and recommended a shift to a post-order payment mode facilitated by speedy "reshored" on-demand small-batch production. On the other side of the equation, however, are worries in Asia about jobs. "The grippers will definitely increase production output manyfold," Robert Young, the Philippine Exporters Confederation's trustee for the textile sector, told Nikkei Asia. "But this represents quite a challenge to some Southeast Asian and less developed economies, especially the Philippines, because of the high acquisition cost and the need for technicians for maintenance. "Also, robotics are definitely threats to human laborers' job security in the developing countries, so they might be greeted by protests by the concerned labor groups here." Fan, the Hong Kong professor, warned that even if grippers help production move back to Europe, it will not create many jobs, which is one of the wishes driving Western reshoring efforts. And while automation may save on labor costs, it increases energy costs, meaning the current high energy prices could undermine the benefit of using the technology. Still, Anton Schumann, a partner at Germany-based textile consultancy Gherzi, said the advent of robotic textile grippers is "exciting" in view of the European Commission earlier this year unveiling its EU Strategy for Sustainable and Circular Textiles as part of the EU Green Deal. The strategy aims to have all textile products sold in the EU to be durable, repairable and recyclable, largely made from recycled fibers, free from hazardous substances and produced in ways that respect social rights. "Major retailers like Gerry Weber or s.Oliver may have to rethink their entire business model if the EU strategy gets through, and robotic grippers could play a role in bringing some production back to Europe, but only if the technology is really mature by then," Schumann said. "This will mainly concern some of the high-price niches, as the main volumes in global garment production will still stay in Asia, owing to the increasing weight of the Chinese consumer market in the global mix," he added.

Source: The asia.nikkei