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MARKET WATCH 9 JAN, 2018

NATIONAL

INTERNATIONAL

SRTEPC calls upon FM to increase ROSL rates  

The Synthetic & Rayon  Textiles Export Promotion  Council (SRTEPC) in its  budgetary submission has called  upon Mr. Arun Jaitley  Finance  Minister to increased Rebate of  State Levies (ROSL) Scheme to  Yarns and Fabrics.  SRTEPC has suggested  that the existing rates of ROSL  Scheme need to be increased at  least up to 5% and the MMF yarn  and fabrics should also be  covered under this Scheme which  enable the industry to generate  more employment and foreign  exchange.  In its submission to the  FM  SRTEPC noted that  Government has introduced this  innovative Scheme with the  objective to boost employment  generation in the employment  intensive textiles and apparel  sector by Remission of State  Levies on export of garments and  made ups through the mechanism  of rebate.  Currently  ROSL Scheme  has been available for RMG and  Made ups only that specifically  provides rebate of State levies  comprising of State VAT/CST on  inputs including packaging  fuel  duty on electricity generation and  duties and charges on purchase  of grid power  stamp duties on  export documents and embedded  SGST in purchases from  unregistered dealers as  accumulated through the stages  of production from yarn to  finished garments.  However  it may be  mentioned that both Fabrics and  Yarns also have significant value  additions and employ substantial  number of persons at various  stages such as spinning  dying  warping  weaving  processing  finishing  printing  etc. Without  investments in these back  processes  manufacturing of high  quality Garments and Made ups  for exports would not be possible.  Moreover  there exists  unrebated State duties/taxes  such as Stamp duty  Electricity  Duty  Tax on fuel  wheeling  charges  fixed charges  Cross  subsidy on electricity bills  transmission charges  Water  Cess  Green tax  etc. on exports  of both yarns and fabrics.  Therefore  SRTEPC has  suggested that the existing rates  of ROSL Scheme need to be  increased at least up to 5% and  the MMF yarn and fabrics should  also be covered under this  Scheme.

Source: Tecoya Trend

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States that push exports may bag sops from Centre

NEW DELHI: The government is considering incentives for states which play a proactive role in promoting exports, commerce and industry minister Suresh Prabhu said on Monday and added that his ministry is in the process of preparing a strategy to promote overall exports and push the country's industrial growth. "We are thinking of ideas whereby we can incentivise the states which promote exports. I have mooted this idea before the states and asked them to give their ideas on this," Prabhu said after the third meeting of Council for Trade Development and Promotion here. During the meeting, Prabhu said Goa chief minister Manohar Parrikar suggested that all states should prepare their export policies focussed on organic farming, value addition and special economic zones. So far, only 14 states including Gujarat, Tamil Nadu, Tripura and J&K have done the same. Members of the council also deliberated on creating a framework for making the states active partners in boosting exports. India's merchandise exports rose 12.01% year-on-year to $196.48 billion between April and November 2017. When asked about the concerns raised by exporters in the meeting related to GST refund, Prabhu said the issue was discussed and the ministry is working on an 'e-wallet' system to resolve the matter wherein duty paid supplies have to be undertaken and the amount will be credited when the proof of exports is made available. Other issues that came up for discussion during the council's meeting include role of FDI in promoting exports and enhancing role of states to push shipments. The minister said the government wants to streamline every aspect of foreign trade and an announcement on the review of the FDI policy could be expected soon.

Source: The Economic Times

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Bihar govt offers lucrative package to apparel industry

Ludhiana :To provide enough business opportunities, the Bihar Government seems to be leaving no stone unturned to attract the investors from Punjab, especially those dealing in textiles, apparel, dyeing industry from Ludhiana. The Bihar government is offering huge incentives, better infrastructure to the industrialists to set-up manufacturing units in Bihar. A delegation of exporters, the industrialists dealing in textile/ apparel industry, dyeing industry is on a tour to the state. The delegation members, including president of Knitwear and Apparel Exporters Organisers’, Harish K Dua, had a meeting with the Principal Secretary, Department of Industry— S Sidhartha— and Bihar Industrial Development Authority Managing Director— RS Srivastva— and with other senior officials. While the Bihar government wants to provide job opportunities to its population, the industrialists from Ludhiana said they were offered good infrastructure, reasonable power tariff, enough labour and subsidies which were the basics for any industry to flourish. Talking to The Tribune, Harish Dua, said Bihar Government was ready to provide us prime location on a highway. “They are ready to provide us power up to Rs5 per unit. Not just that, the Bihar government has offered to set up common effluent treatment plants and sewerage treatment plant. We will have to provide them just the maintenance cost, once they are installed. Besides, fire station, hospital, schools - whichever facilities are viable, they are ready to give us”, said Dua. At the same time, Dua said the Punjab government had still not formulated any policy but a delegation will soon meet higher-ups in Punjab for further expansions, if state government showed eagerness. If the Bihar government is successful in luring industrialists from here, it will be able to generate employment to approximately 20,000 population (textile workers). These knitwear and apparel manufacturers cater to a large number of brands and retail companies such as Spencer’’s Retail, Walmart, GAP and designers in France, Germany, US and other developed countries.

Source: The Tribune

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Here is why foreign apparel brands are offering big discounts

The high street is not any more out-of-bounds for most city dwellers. Walk into a Zara or H&M store and one can find products on sale for as little as Rs 250 at H&M and at Rs 390 in Zara. In their bid to draw in more customers and build loyalty in what has become an extremely competitive market, Swedish fashion retailer Hennes & Mauritz (H&M) and Spanish fashion retailer Zara have reduced prices by 25-30% for sales kicked off end of December. The high street is not any more out-of-bounds for most city dwellers. Walk into a Zara or H&M store and one can find products on sale for as little as Rs 250 at H&M and at Rs 390 in Zara. In their bid to draw in more customers and build loyalty in what has become an extremely competitive market, Swedish fashion retailer Hennes & Mauritz (H&M) and Spanish fashion retailer Zara have reduced prices by 25-30% for sales kicked off end of December. The lowest price points offered by these two brands in the past ranged between Rs 500 and Rs 700. Pinaki Ranjan Mishra, partner and national leader, retail & consumer products, Ernst & Young, said, “With these brands going deeper in newer cities, they are introducing lower price points to attract customers. Moreover, both these brands have very efficient supply chains, benefits of which they may be able to pass on to customers.” An H&M spokesperson in a reply to an email sent to the company said, “End-of-season sales that occur twice a year start with up to 50% and this has been our strategy since we launched in the country.” No Zara spokesperson was available for comment. Experts said when Zara had entered the country around seven years ago, their average price point was around Rs 1,200 to Rs 1,400. But to hold on to this price point was difficult. The pricing battle intensified after H&M entered the country a little over two years back. Zara has corrected prices by about 25-30% to bring its entry level to around Rs 799 per product (before discount) in the last couple of years to compete with H&M. Overall in 2017, post the festive season, retail sales were low and the brands might be trying to clear their inventory. Although brands are introducing lower price points, this may not impact the company’s margins much as they are likely to make up for this through sale of products with higher prices. “Both the brands believe in profitable growth and would definitely try to save their margins,” Mishra said. Rajat Wahi, partner, Deloitte India, said international brands after opening the first few stores in metros are struggling to attract footfalls in smaller cities. So, to introduce the brand to the new customer segment, price points are being tweaked. What is driving most brands to introduce products under Rs 1,000 — say at Rs 999, Rs 899 or Rs 799 — is that customers have to pay less tax post the GST (goods and services tax), he said. Post GST roll-out, taxes were lowered to 5%, from 7%, on products costing below Rs 1,000, even as they go up to 12% on products priced above Rs 1,000. Brands edging towards luxury are struggling in the country, and this is prompting them to tap opportunities in lower price segments, Wahi said. Inditex Trent, the joint venture between Zara brand-owner Inditex and Tata Group’s retail arm Trent, witnessed 21.4% increase in sales to Rs 1,023 crore in FY17, but the company’s net profit fell 40% to Rs 48 crore after the Spanish chain slashed prices by around 10-15% to keep pace with its competitors. Arvind Singhal, chairman of Technopak, said brands have managed to do well mainly on account of affordable pricing, while providing quality products. Swedish fashion retailer H&M scaled up revenues to Rs 704 crore between December 1, 2016 to August 31, 2017 (nine months), from Rs 291 crore in the year-ago period, on the back of lower price points maintained to combat Zara. Zara, which is present in India for the past eight years, operates more than 21 stores at present, while H&M, which entered the country more than two years ago, has 29 operational stores.

Source: The Financial Express

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Rupee rebounds 6 paise against dollar in early trade

The rupee recouped by 6 paise to 63.45 against the US dollar in early trade today on fresh selling of the American currency by exporters and banks amid early gains in stocks. Forex dealers said persistent inflows of foreign funds and weakness in the dollar against other currencies overseas supported the domestic unit. Yesterday, the rupee had retreated from its near three- year high and ended lower by 14 paise at 63.51 against the US currency on fresh bouts of dollar demand amid concerns over the sluggish outlook for economic growth. Meanwhile, the benchmark BSE Sensex rose 134.73 points, or 0.39 per cent, to quote at an all-time high of 34,487.52 in opening session.

Source : Business Standard

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India-Israel Dastkari Haat underway in New Delhi

Its a fair that art lovers would not want to miss, a grand amalgamation of traditional handcrafts, their technique and classical dance presentations that is underway in Delhi Haat in the capital these days. Indian and Israeli artists perform here together exhibiting their skill and traditions passed down through generations. In this fair that will continue for a fortnight, you will find all that is best in the cultural and classical  traditions of both the countries. Nihad Dabit is putting the final touches to his work of art, a lovely horse of wire, a resident of Israel Nihad specializes in this art form and is presenting it for visitors at the exhibition here. Artisans from both countries are uniting in a unique efort these days, sharing their experiences in the fair organized in Delhi Haat of Capital New Delhi. Organised with the help of the Ministry of Textiles in this fifteen day interactive workshop will see craftsmen of the two countries exchanging their skills, creating work which symbolizes the famous artistic heritage of both the countries. This is also an important step towards strengthening the cultural and diplomatic relations between India and Israel. Five Israeli artisans are collaborating with master craftsmen of Jammu and Kashmir, Bihar, Delhi, Chhattisgarh and Rajasthan to create new designs in works of art. This fair, which takes place every year, acts as a platform that provides unique employment opportunities for local artisans.

Source : DD News

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Welspun Introduces Wel-Trak™ A Revolutionary, Patented, End-to-End Traceability Solution For Textiles

FRANKFURT, Germany — January 5, 2018 — Welspun India, one of the largest Home Textile manufacturers in the world, has introduced a patented, end-to-end traceability process called Wel-Trak™. This revolutionary and industry-defining process ensures that customers and consumers can trace the provenance of the cotton raw materials throughout the supply chain from farm to the retail shelf. Wel-Trak™ delivers end-to-end traceability by deploying:

• Automated data capture using RFID

• Customized software for validation

Robust IT & ERP systems to enable smooth operations across all stages of production. Strengthened physical and systems controls which streamline the tracking process. Dipali Goenka, CEO & Joint Managing Director, Welspun India Ltd., said, “All our customers across the globe are very excited about Wel-Trak™, as it is unique in the textile industry. Having a mechanism in place that will enable them to track the source of the final product right back to the specific farm it comes from, definitely adds value and transparency to the whole process.” The proprietary process allows traceability of any product back to its fibre source, through a state-of-the-art solution, thereby providing transparency and real time information. Furthermore, Welspun is delighted to announce a partnership with Oritain Global limited, a world leader in the use of scientific traceability to determine provenance of food, beverages, pharmaceutical and now extended to cotton fiber. This partnership provides independent validation of Welspun’s supply chain by using a method of chemical fingerprinting to identify the origin of the cotton fibre used for its home textile products. This exclusive tie-up with Oritain’s traceability technology supplements Wel-Trak™ and demonstrates Welspun’s commitment to full transparency and traceability of its home textile products throughout the supply chain. Based on its analysis, Oritain has created a database of unique ‘chemical fingerprints’ for special cotton growing areas such as Egyptian, US Supima and Australian cotton. This will be extended to include Organic and American Upland cottons. This database enables Oritain to verify a sample against its stated origin. Using this method, Welspun can conduct tests at various stages of its manufacturing process and verify the origin of cotton at each stage to ensure the authenticity of its final products.

Source: Textile world

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Sutlej Textiles gains 6% on board approval for green fibre project

Shares of Sutlej Textiles and Industries gained 6.5 percent intraday Tuesday as the company has approved setting up of a green fibre project. The company board has approved setting up of a green fibre project to manufacture polyester staple fibre by recycling of pet bottles in Jammu Kashmir. However, the company has deferred brownfield capacity expansion of 28,800 spindles due to uncertain market conditions. The share touched its 52-week high Rs 109.55 and 52-week low Rs 77.50 on 06 November, 2017 and 11 August, 2017, respectively.

 

Source: Money Control

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Textile effect on canvas

KOCHI: A stroke of water is initially splurged on paper. Then an ink-dipped brush in red, orange, mustard yellow and blue is touched to the water. The result is beautiful imagery of traditional with modern art toned in a series of colourful textile effects. New Delhi-based artist Deepshika has used this technique to  create art which has been exhibited at the ongoing exhibition at M R Butler Business Centre, Panampilly Nagar. Brought up in a family of art lovers and painters, Deepshika found herself always dabbling with colours. “I was introduced to colours at the age of two as my mother and her two sisters are artists. I have no formal training in art. I initially learnt art from my mother Renu D Singh,” she said.Deepshika is an artist who enjoys minimalistic art. The medium she usually works with is acrylic on canvas. One of the highlights of her work is that her art revolves around the effect of textiles. “My art ‘Emrald’ is based on ‘shibori’ which is the tie and dye effect on saris. ‘Jamuni’ reflects a kanjivaram sari.” Other themes that the artist explores is an altogether different style of art which is called ‘mother of pearl’. The art reflects the name of the series on the canvas. She has continued to work with ‘mother of pearl’ and ‘textiles’ for a while along with two more different styles.  “I intend to carry on producing the same style till I am completely associated with them,” she says. Though she has worked on different mediums, she is presently working on acrylic. She has exhibited her work in different parts of the country but her first solo exhibition was held at Gallery G in Bangalore in October, 2016. This is the second solo exhibition she is conducting. “My art is sold via word of mouth. I am a very private person.I am working on a different kind of art work now which is unlike those that have been exhibited so far,” said Deepshika. Talking about the space that artists’ get, she opined there are artists whose works speak volumes and who have been welcomed in the art world, in peoples homes and on different platforms. There are others who have made a way for themselves with sheer hard work. “However, I feel that the real art and hard work is in the villages. This art is dying slowly,” said the artist. The exhibition will continue till January 12.

Source: Indian Express

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Pakistan : Trading activity hit over withdrawal of import duty on lint

Cotton market on Saturday witnessed slow down in trading activity following the government’s decision to withdraw duty and taxes on lint imports. This is a timely decision because much of the local cotton had already been lifted by spinners and very little quantity is left with growers and ginners. Though world cotton prices are currently on the higher side, it seems that many buyers would like to exercise the option of imports after the government removed 4 percent customs duty and 5pc sales tax on lint imports. The demand for removal of duty and taxes was raised by All Pakistan Textile Mills Association (Aptma) and this has now opened up another source for meeting cotton shortage, observed Adnan Naseem director Karachi Cotton Association (KCA). At the Karachi Cotton Association, the spot rates remained unchanged at overnight level. The following deals were reported to have changed hands on ready counter: 3,100 bales, Sadiqabad, at Rs8,050 to Rs8,075  800 bales, Mirpur Diwan, at Rs8,000  800 bales, Shaher Sultan, at Rs7,600  400 bales, Mian Channu, at Rs7,300  and 1,00 bales, Vehari, at Rs6,500. There is a possibility that demand for cotton would rise in coming days because over 250 Pakistani exporters are participating in Heimtextil, Frankfurt which is the largest home textiles fair in the world. Against this, Indian exporters of home textiles are faced with high cost of cotton and yarn and this could not be in their favour at this juncture when huge orders are usually placed by world leading brands for their the entire year consumption. Reports suggest that around 5,000 bales of Indian cotton have reached Kara¬chi port. However, there are little prospects that all the booked orders by Pakistani spinners of around 0.5 million bales with Indian exporters would be honored because of a sudden rise in Indian cotton prices.

Source: YarnsandFibers

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No sales tax, customs duty on cotton imports in Pakistan

The Pakistani Government last week withdrew sales tax and customs duty on cotton imports with effect from January 8 to meet the shortfall of silver fibre, a key input in the country’s textile industry. The Economic Coordination Committee (ECC) of the cabinet approved a proposal regarding the same at a meeting headed by Prime Minister Shahid Khaqan Abbasi. The textile sector, which contributes more than 60 per cent of the country’s total exports of $20 billion, had been demanding the abolition of 4 per cent customs duty and 5 per cent sales tax since last year to promote value addition. The ECC meeting also approved financing plan for 1.2 billion cubic feet/day capacity of re-gasified liquefied natural gas (RLNG-III) pipeline project from Karachi to Lahore, according to Pakistani media reports. The country set up its first RLNG plant in 2015 with a production capacity of 600 million metric cubic feet/day (mmcfd), and another with the same capacity was added recently to reduce the gap between demand and supply of around 2 billion cubic feet per day. Despite being the world’s fourth largest cotton producer, Pakistan relies on import of cotton to meet local demand, which is estimated at 15 to 16 million tons per year. Cotton production is expected to be around 11.1 million bales of 170kg each during the 2017-18 crop year. (DS)

Source: Fibre2Fashion

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Apparel Exports Jump in November on Shipments to Nicaragua

Although apparel imports sustained only modest gains in recent months, reversing earlier declines, exports of clothing have enjoyed double-digit growth of late, according to data released by the U.S. Census Bureau. U.S. apparel imports rose by 6.1% in November, to $7.2 billion on a CIF basis, while total U.S. goods and services imports increased by 8.2%, to $209 billion. In October, apparel imports increased by a slightly lower 5 percent, to $8.68 billion. Apparel exports skyrocketed by 12.4% in November, to $532 million, while total U.S. goods and services exports increased by 9.5%. In October, apparel exports from the U.S. rose y 10.4%. Apparel shipments to Nicaragua have increase by 46.4%, to $144.4 million to comprise more than a quarter of all U.S. apparel exports so far this year. Year-to-date apparel imports have fallen so far this year compared to last year, according to OTEXA, the International Trade Administration’s Office of Textiles and Apparel. Total apparel imports declined by 0.3% on an MFA basis in the first eleven months of the year, to $74.7 billion from $74.9 billion in the same period in 2016. Among the top 10 U.S. apparel trading partners, only Vietnam, India, Nicaragua and Mexico have grown their apparel shipments to the U.S. this year. On a square meter equivalent (SME) basis, imports have edged up by 1.1% this year, continuing the trend toward lower-cost goods, despite upward pressure on labor and raw material prices. The average cost per unit of an imported garment fell by 1.4% in the January to November period. The average cost per SME increased by 11.2% from Mexico, 4.8% for El Salvador, and 1.1% from Honduras, but dropped for all other key trading partners, with the cost per SME from China suffering the biggest drop, down by 5.1%.Vietnam’s apparel shipments to the U.S. continued to grow, increasing by 7.4% year-to-date to over $10 billion, gaining a percentage point of U.S. apparel import market share so far this year, to 14.4% as of the end of November. Mexico’s apparel exports to the U.S. increased by 5.8% to $3.1 billion, helped by near-sourcing efforts on the part of many U.S. brands. Mexico’s share of U.S. apparel imports increased by 0.3 percentage points.

Imported apparel from China has fallen by 3.1% so far this year, causing our largest trading partner to lose the most share of U.S. apparel imports in the period, down by a percentage point to 33.7% of the total, or $25.2 billion. Bangladesh also lost share, with apparel shipments to the U.S. down by 4.3% year-to-date, to 6.3% of total U.S. apparel imports.

Source: Sourcing Journal Online

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Rising minimum wage puts pressure on Cambodia's garment export industry

Garment workers in Cambodia will see their wages increase 11% this year, but this will put further financial pressure on the country’s export sector. Cambodia’s minimum wage, which has grown 150% in five years, will rise from US$153 to $170 a month, and include the 700,000 workers in the garment industry. Garments and footwear make up 78% of the country’s exports, according to the General Department of Customs and Excise, rising 7.2% in 2016 to $7.3bn. Most exports are destined for Europe and the US, which respectively account for 45% and 25% of the market. However, growth is forecast to have slowed to 5% in 2017, according to the Garment Manufacturers Association in Cambodia (GMAC), which warned that the minimum wage increase could mean the country gradually losing its competitive advantage as a low-cost sourcing destination. The association represents 520 garment and 52 footwear manufacturers in Cambodia – 25 new factories opened last year, while 53 closed, it said. GMAC deputy secretary-general Kaing Monika told The Phnom Penh Postthe wage increase would likely result in the majority of GMAC members struggling to remain profitable. He urged the government to offset the higher salaries by reducing logistics costs. The association’s proposals include halving the export management fee and reducing the fee levied by the Cambodia Import-Export Inspection and Fraud Repression Directorate-General, known as Camcontrol. Mr Monika said the current Camcontrol inspection fee of $50 per container should be reduced to $15, the same level as the fee levied by the Customs Department. Despite the rising wages, Pich Ngun, managing director of Scan Global Logistics Cambodia, said it was doubtful garment manufacturing would move away from Cambodia anytime soon. “These wages are not really a big concern if we compare it with other countries in the region,” he told The Loadstar. He said wages were much higher in China and Thailand, and in Vietnam they were increasing at a similar pace. “Myanmar is lower than Cambodia, but it has other issues, such as the minority crisis and military control. Sri Lanka and Bangladesh are very competitive, but Cambodia is still OK and manufacturers will not move away because of this,” Mr Ngun added. According to the World Bank, a slowdown in the garment sector could potentially be offset by greater export diversification. Inguna Dobraja, World Bank country manager, said: “Cambodia appears to be on the verge of climbing up the manufacturing value chains – from garments to electronics and auto parts – and that is a very encouraging development.” Mr Ngun agreed: “Cambodia needs to diversify as the demand of increasing labour costs will never end,. The country has to bring in more high-value industries to cope. There is already some investment from Japan and others, however it has not been significant yet.” Meanwhile, political uncertainty is increasing in Cambodia, following prime minister Hun Sen’s recent clampdown on the opposition party, independent media and NGOs. Mr Ngun said: “Political stability is another big concern for foreign investors, as they are very worried about next year’s general election. The US and EU have voiced great concerns on the credibility of the National Election Committee after one of the big opposition parties was dissolved by the supreme court last month. “If there is no improvement in the situation, the US and EU might reconsider their tax-free imports for some Cambodian products, resulting in a big blow for our logistics industry.”

Source: Asia correspondent

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Africa : Merlin resumes its operation following business rescue strategy

One of the oldest textile companies in Bulawayo city, Merlin Limited, which was under judicial management, has secured a partnership and resumed its operation following the implementation of a business rescue strategy involving immediate injection of $2.1 million minimum working capital by one of the firm’s creditors. In an interview on Friday, Merlin judicial manager Mr Cecil Madondo said that Merlin is now up and operational with feed material such as yarn having been procured. Last week, we also approached Zesa and Bulawayo City Council seeking reconnection of water and electricity at the factory. Regarding the advert on the impending auction sale is that they are conducting it to dispose of non-core assets which includes vehicles (Toyota Dyna Truck, Nissan Sunny, Hyundai Excel and Mazda F1300) and industrial machines that include washing machine, drying machines, weaving machines, winch machines and electric motors. But before the assets are disposed, they have to seek approval through the High Court. It is hoped that with immediate injection of minimum capital, the textile giant would start production on a very small-scale, producing samples to facilitate the procurement of orders from the market. It is envisaged that production would then increase gradually from levels ranging between 20 percent and 30 percent as more orders are received. It also envisaged that the minimum capital would also be used to carry minor repairs and maintenance on selected machinery and equipment, which will allow the firm to start production. The resuscitation of operations at Merlin would see the company not only focusing on producing napkins but a range of high quality and high demand products such as diapers and women sanitary wear, face towels, morning gowns, bed sheets, baby carriers, bath mats, wrappers and kitchen towels. A proposal has also been put forward that the company sets up its own ginning plant that would create a complete production cycle and also synergise with cotton growers. Through the proposed ginning plant, the textile concern intends to produce and sell yarn, which was also on demand locally and in the region.

Source: YarnsandFibers

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Colombiatex Celebrates 30th Edition as Key Latin American Trade Show

Colombiatex 2018, considered the largest textile and apparel supply trade show in Latin America, is getting ready to take over the runways of Plaza Mayor in Medellin, Colombia, from Jan. 23 to 25, to showcase its expertise and the breadth of its industry. Organized with the support and guidance of Colombia government trade promotion agency ProColombia, Colombiatex will showcase its 30th edition as a global stage to connect supply and demand of the textile and apparel sector, affording opportunities for networking between entrepreneurs, buyers and those connected to the Colombia fashion Industry. “With the theme Open Your Eyes, in 2018 we will seek to test our convictions to find, in that sea of knowledge and information to which we have access today, that fact, moment or revealing process which will connect us to the consumer,” said Clara Henríquez, director of commercial platforms at show organizer Inexmoda. More than 550 Colombian and international exhibitors, and 22,000 visitors are preparing to attend the event. “Colombiatex 2018 is considered the main textile and full-package platform to find supply chain top vendors from the Latin American region from yarn to fabric, home textiles to full package apparel, including trims, fabrics and finished product,” said Sylvia Reyes, Textiles and Apparel director at ProColombia USA. “Colombia is considered a one-stop-shop where you can find all the main supply chain suppliers of the American region, but where you can also connect with finish product vendors of all categories and more than 40 countries,” Reyes said. “It is the hub to extend your production and distribution opportunities in the backyard of the U.S., with an attractive solution for sourcing with the best lead-time in the Americas.” Brazil will be the guest country, invited to empower the fashion system, get acquainted with the Colombian industry, and generate new opportunities. The participation of Brazil as guest country at the trade show demonstrates the excellent commercial relationship between both countries. Felipe Jaramillo, president of ProColombia, said, “Colombiatex is celebrating three decades of commitment to implement the best quality, best practices and top variety of excellence in the apparel industry to satisfy and fulfill all the needs of our global markets.” Jaramillio said in the last five years, buyer attendance has increased about 65 percent, with buyers from more than 60 countries at the last edition. Over the years, he said the biggest changes have come from the use of new technologies, the implementation of clean and ecofriendly practices, and the importance of corporate social responsibility, which are now key factors in the industry. Colombiatex is focusing more on “strategically growing in quality” by increasing its local and international innovative offerings. Colombiatex de las Américas has empowered the textile and garment sector creating business opportunities, offering places for interaction, business, fashion, and knowledge and achieving lasting commercial relationships. The continuity of the trade show for 30 years has showed the industry’s weight on the continent, not only for the economy, but also for social and cultural empowerment. “The Colombian fashion system has acquired greater specialization and recognition in the export of products with higher added value,” Jaramillo said. “In 2015, fashion exports sector reached 108 destinations. In 2016, exports reached 111 destinations,” with the U.S., Ecuador and Mexico combining for 55.2% market share. Colombia is an important sourcing country for its quality, designs and materials, innovation, but also its strategical geographical location, he said. “Colombia is also the number one exporter of woven apparel in South America, being a leader in products including bras, girdles and jeans,” Jaramillio said. “We are also the top shapewear exporter In the Americas and third in the world, and we are the number one swimwear, bras and men’s underwear exporter in South America.” In addition, Colombia is the sixth largest exporter of textiles and footwear, the eighth largest for apparel and the second for leather goods in Latin America. Colombia will also participate at Magic in Las Vegas next month, Feb 11-14 supporting eleven companies. At Curve, shapewear brands such as Curveez, Tecnomed, Chamela, Fajitex, True SS, and Ellipse Lingerie will exhibit. At Project, it is supporting footwear brand KAANAS, while at Platform, footwear brands Stivali, Tahi Shoes and Sergio Tomani Shoe will exhibit. Textile mill Tejidos Gulfer will show at Sourcing at Magic. ProColombia will host exclusive guided tours of the Colombian companies.

Source : Journal Online

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Japan External Trade Organization to Host First Textile Salon

The Japan External Trade Organization, a government-based firm, will host its first Japan Textile Salon, Jan. 17 and 18, in New York City. The event will take place at The Altman Building. A slim selection of 22 textile exhibitors was chosen to showcase design techniques and the use of various fabrications and materials. The show aims to increase sales and distribution channels within the U.S. market for each exhibitor, according to the firm. The Textile Salon will introduce Japanese color trends for the upcoming spring 2019 season with a focus two themes: Moon Night Diver, a compilation of blues purples and greens that “depict the interplay of light and show;” and Biotech Lab, a “nature-inspired” palette comprised of botanical greens and blue-greens. Notable fabrics for display include organic cottons, Coolmax, premium fabrics made by a special circular loom that employs a traditional silk braiding technology, and water-repellent stretch fabrics. And technologies will be on display, such as inkjet printing techniques and traditional Japanese hand-printing methods, according to the organization. Asuka Yatabe, a project coordinator for the Japan External Trade Organization, told WWD that the exhibitors selected are “among the top weavers, design studios and manufacturers. This show is extremely focused.” The Mitsubishi creation process. Photograph courtesy of JETRO. Yatabe said JETRO narrowed down its exhibitor list by enlisting the help of the Japan Fashion Week Organization, a major player in the Japanese textile industry. The companies selected for the salon are “highly compatible” with the global market, according to Yatabe. “Many of them have already established strong relationships with very well-known design houses based in Europe and through various textile shows we host in partnership with Japan Fashion Week.” Each exhibitor was selected because of his or her contribution to the show’s “uniqueness” regarding novelty in textures, fabric innovation or use of natural materials; craftsmanship in printing techniques or technology; functionality, or utilitarian fabrics, and ecology, for the use of sustainable materials. Companies exhibiting at the salon include Styletex Co., Numajiri Textile Laboratory, Design House Kaze Corp., Sunwell and StyleM. “Novelty and functionality are the key words that kept coming up,” Yatabe said. “We were hearing stories from the key industry players [and] these were the two qualities that they most expect from Japanese textiles.” Functionality refers to synthetic, high-tech, stretch or deodorizing fabrics, while novelty denotes craftsmanship or the use of ancient techniques. And sustainable textiles are becoming “bigger and bigger” in Japan due to consumer demand. “[Many] consumers care about this very much. They want to know where the products are coming from.” Yatabe also noted that the Textile Salon “will evoke inspiration and creativity” for fabric buyers pursuing authentic, quality, and unique Japanese fabrics. “This is what Japanese novelty fabrics are all about. We are confident buyers will leave our show with many special gems.”

Source : Business News

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ICAC: Global cotton consumption to increase

The International Cotton Advisory Committee, Washington, D.C., announced Jan. 3 it expects global cotton consumption to increase in the coming year. Recovery continues in cotton production for 2017-2018, according to the ICAC, which projects an 11 percent growth to about 25.4 million tons due to increased area put into production. Production in just the United States for the current season is expected to increase 25 percent to 4.7 million tons. India, according to the report, will remain the world’s largest cotton producer, with 2017-2018 production expected to reach 6.2 million tons. China will come in at No. 2, with 5.2 million tons of production. Pakistan is predicted to increase 11.5 percent, to 1.9 million tons, while Turkey is predicted to increase its production 18 percent to 829,000 tons. Other major cotton countries are expected to have positive growth attributed to increased production area and harvested yields. Meanwhile, international cotton prices have moved upward over the last few months that the season has been underway, according to the ICAC. “From the season low of 77 cents per pound at the start of season, prices are at a season high at the end of this calendar year up to 88 cents per pound,” the report stated. “The current season average of 80 cents per pound is lower than the 2016/17 average of 83 cents per pound.” Global consumption, according to the ICAC, is expected to grow with a lower international price from the previous season and the rising price of competing fibers. After stagnating in 2016-2017, global cotton demand is expected to increase 3 percent in 2017-2018 to 25.2 million tons. Chinese mill use is expected to remain stable at 8.1 million tons, while India and Pakistan are expected to increase 3 percent and 4 percent respectively, according to the report. Consumption in Vietnam is expected to grow 12 percent to 1.3 million tons. Moderate growth of 2 to 3 percent is expected for other major consuming countries of Bangladesh, Turkey and the United States, according to the report.

Source: High Plains Journal

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Outlook 2018: The View from Apparel’s Editorial Advisory Board

The apparel industry is always in flux. It’s built into the very nature of the product ― fashion — and it’s also built into the entire process, and the technologies involved in designing the product, producing it, moving it, delivering it, marketing it and selling it. Yet, advances in technology in the past couple of years have so changed the world, and the world’s economies, and consumer behavior, that the retail landscape ― or, at least, portions of it — seems to be transforming at a faster pace than it has in the past. Old models are breaking up quickly, as apparel brands and retailers scramble to keep up with seismic shifts such as the convergence of brick-and-mortar and digital, 24/7 anytime-anywhere shopping and demands for customization and personalization, all of which have upped the ante on instant gratification across product and delivery. These old models are falling by the wayside in large part because of transformations wrought by technology such as smartphones, 3D visualization and advanced analytics, and we can expect this trajectory to continue, as technologies such as artificial intelligence (AI), augmented reality (AR), virtual reality (VR), cryptocurrencies, robotics, drones, blockchain and others enable changes in both consumer and brand/retail behavior. Like everything else, these technologies will offer both challenges and opportunities to apparel players, who will continue to grapple with a wide scope of business issues ranging from increased demands from consumers for sustainably produced apparel and transparent supply chains, to unpredictable weather patterns and political uncertainties. And Amazon. Apparel checked in with its Editorial Advisory Board members to hear their thoughts on the coming year. We asked about the top challenges to the apparel industry of 2018, and which technologies they expect to be transformative. What are the top three challenges the apparel industry will face in the coming year, and how might these be overcome, if at all? Chris Devous, Vice President, IT and CIO, The Antigua Group I think seasonality will become more of a factor than in recent years. People tend to buy for the current weather, and retailers tend to stock for the expected weather, but in recent times what is expected and what actually happens have been divergent enough to drive price reductions and closeouts. Unfortunately, the supply chain has not changed dramatically, so overcoming incorrect predictions is ever more difficult and costly. The only way to overcome this is to reform supply so that it is more responsive. This would require moving manufacturing and textile storage/production closer to the consumer ― which is cost prohibitive. There may be a technical solution, but at the moment nothing dramatic has presented itself. I think it likely that a convergence of technologies, either new technology or new uses of existing technology would be necessary to create an agile supply chain. Consumer demand will become increasingly driven by the instant gratification offered by successful online retailers such as Amazon. This means more intense and short-lived trends that are more difficult to track and respond to. The only way to overcome this is to be a trendsetter rather than a trendgetter. The analytics that can predict trends successfully more than 30 percent to 40 percent of the time will win out. Sustainability is going to be increasingly important as consumers tailor their buying decisions and brand loyalty to ecological concerns. The best way to handle this is to be sustainable throughout the supply chain. Zero emission mills, recycling, low emission transportation, everything that makes a greener planet.

Walter Wilhelm, Chairman,WWA Advisors LLC

Trying to rationalize the role of retail brick and mortar in the new era of e-commerce shopping is one of the industry’s biggest challenges. For example, will more stores follow the model of having all sizes and colors in a style available at retail but not for pickup when ordering (with the items purchased being shipped)? The apparel industry will need to learn how to set up smaller production operations in the United States near key markets. Funding will be needed for required infrastructure investments (e.g. updating ERP, PLM, and purchasing new cutting-edge technology).

Jim Thompson, CFO, Cavender’s Boot City

Supply chain — The BAT (Border Adjustment Tax) may not come back but the executive branch sentiment continues to emphasize bringing manufacturing back to the United States with proposed higher duties and other restrictions on imports. The geopolitical situation in Asia is also a risk for potential supply chain disruption. The risk can be somewhat mitigated by having multiple sources from different geographic regions where possible. Shifting shopping patterns ― Everyone talks about the “Amazon effect” on retail. The growth in online shopping has disrupted traditional bricks-and-mortar retail, resulting in a smaller retail footprint. Now that Walmart has entered the space in a big way with Jet.com and continues to refine how to use its store network as distribution hubs, the retail model may be poised for another change. All retailers can watch and learn from what they are doing, replicating where practical and finding other ways to create a unique customer experience to bring customers into the retail store. Pricing — The dollar has weakened a little recently after passing the new tax law but still remains strong against many currencies in Asia. A strong dollar is good for the U.S. economy but it makes imported goods more expensive. The majority of apparel and footwear is imported so a strong dollar puts pricing pressure on these items. The competitive retail environment makes it difficult to pass along the higher costs in merchandise prices, resulting in margin pressure. The dollar will fluctuate during 2018 as the details of the tax law and estimates of its impact on the U.S. deficit become known. Trevor Little, Professor, TATM Department, College of Textiles, NC State University. One big problem with the “global” apparel industry is that everything is beginning to look the same. Consumers are not excited since they too feel that they will look the same. [Psychologist, psychoanalyst and author of "The Psychology of Clothes" John Carl] Flugel wrote in the 1930’s that “The paradox of fashion is that everyone is trying at the same time to be alike, and to be unalike, his fellow-men,” and this dilemma exists today. What we need is more of the “unalike.” As we moved from Mass Production to Mass Customization to Mass Variety the “industry” has placed a challenge to the consumer's pocketbook ― buy mass-produced at lower prices and look alike or pay much higher prices and look a bit different. So how will this transition play out over the next year? Sustainability will continue to have influence. It's time for the industry to deliver “authentic sustainability” ― not just long overdue process improvements or human labor conditions. New materials will come on-stream and may play an important role in building a range of new products. What newer type of technology (AI, robotics, blockchain, cryptocurrency, AR/VR, etc.) has most captured your interest, and how do you expect it to transform the apparel industry and/or your specific business?

Jim Thompson, CFO, Cavender’s Boot City

Artificial Intelligence and its impact on predictive analytics will continue to be a tool used by retailers and the supply chain. Augmented Reality and Virtual Reality have the potential to transform the customer experience both online and in brick-and-mortar stores. I’m very interested in learning more about how both of those tools can be used to make better purchasing decisions and enhance the customer experience. Trevor Little, Professor, TATM Department, College of Textiles, NC State University PLM must articulate its economic return on investment to become an integral part of the firm. AR may become more important than VR and offer important ROI for manufacturers, especially in digitally connected countries. The thrust of online sales will begin to influence the supplier’s modus operandi to be able to deliver merchandise that is in-demand — at the SKU level. Robotics is slow to emerge but it appears that co-bots [collaborative robots, which interact with humans in a shared workspace] might be the interim approach. A transition that is taking place is where more and more of the “apparel” formation is occurring at the “textile” formation stage. This progression continues as it removes significant amounts of direct labor from apparel assembly.

Jeff Marshall, Director of Marketing, Dragon Crowd

AR and VR open interesting opportunities for trying on clothes digitally. Consumers are shifting toward shopping by full outfit or by event, vs. shopping for key pieces. Walter Wilhelm, Chairman, WWA Advisors LLC 3D design is finally starting to be a must-have technology because it streamlines development and minimizes sample making. This is major. 3D printing for accessories and for some footwear elements is finally becoming affordable and fast enough to justify. Wearable technology is still looking for a breakthrough but maybe this will happen in 2018 (as it did with RFID in recent years).

Chris Devous, Vice President, IT and CIO, The Antigua Group Blockchain and cryptocurrency are worth watching. Imagine a world in which suppliers can be paid electronically without involving banks, letters of credit, or any of the other barriers we find ourselves dealing with. Imaging being able to set up shop without having to establish a banking relationship to get paid? Jordan K. Speer is editor in chief of Apparel.

Source: Apparelmag

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