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MARKET WATCH 09 OCT, 2018

NATIONAL

INTERNATIONAL

Textile sector shows improvement, but exports remain weak

The latest index from Wazir Advisors talks about trade performance of India's textiles and apparel sector and the overall economy of the country. It also looks at the import scenario of major textiles and apparel markets and raw material price trends prevailing in the sector. The Indian textiles and apparel industry has exhibited growth in overall sales and EBIDTA levels during the first quarter of financial year 2018-19. However, the scenario is different in terms of trade. On the one hand, apparel exports have declined significantly; on the other, there has been a sharp rise in apparel imports in first quarter of 2018-19. The issue of declining exports and rising imports needs to be addressed by the government in order to revive the Indian textiles and apparel industry's performance. These are the findings of the latest Wazir Textile Index (WTI), an index developed by Wazir Advisors for assessing the overall financial performance of the Indian textiles sector. This WTI comprises cumulative financial performance of the top ten Indian textile companies along with an update on market performance of the sector for first quarter of financial year 2018-19 (Q1 FY19). The WTI takes the collective performance of select top ten listed textile companies (by sales) of 2015-16 as the base/benchmark which is represented by the base Index number 100. The base is taken for each of the quarters and for full financial year performance of the companies in 2015-16. The financial performance of the industry is benchmarked to this base number to assess quarterly (Q1), half yearly (H1), nine monthly (9M) and yearly performance (FY) for future years against the set benchmark. It includes following three components: WTI Sales: consolidated sales index of top ten companies; WTI EBITDA: Consolidated EBITDA (earnings before interest, depreciation, taxes and amortisation) index; WTI Cost: consolidated index for cost of raw material, manpower and others.

Overall sales and EBIDTA of top companies have grown in Q1FY19

Based on detailed financial analysis, the WTI Sales was calculated to be 119.8 in Q1 FY19 as compared to 113.9 in Q1 FY18, which indicates that the overall consolidated sales increased by 5 per cent during the period April-June this year. The consolidated WTI EBITDA stood at 88.9 in Q1 FY19 as compared to 81 in Q1FY18. EBIDTA margins have rebounded and increased by 10 per cent in Q1 FY19 as compared to Q1 FY18. The WTI Cost for raw material (RM), manpower and others were 128.9, 137.5 and 118.1 in Q1 FY19. The y-o-y (year-on-year) increase of about 4-5 per cent was observed in the RM and manpower cost.

Source: Fibre2fashion

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Textile Staples Market is expected to create total incremental opportunity of nearly US$ 82 Bn between 2017 and 2027.

In terms of value, the global market size of the textile staples market is expected to expand from nearly US$ 125 Bn in 2017 to over US$ 200 Bn by 2027, registering a CAGR of 4.9% during the forecast period 2017 – 2027. The global textile staples market is expected to create total incremental opportunity of nearly US$ 82 Bn between 2017 and 2027. Several factors are responsible for this significant market growth. Growth in the automotive and transportation sector in APEJ region bodes well for the textile staples market. Textile components are widely used in transportation vehicles and systems including cars, trains, buses, airplanes and marine vehicles. The automotive sector is witnessing rapid development in China along with parts of Southeast Asia. In a fluctuating economic environment, the Chinese automotive industry has registered steady sales growth. Also, India’s economy is expected to grow at a robust pace in the coming years as most economic indicators predict a positive outlook towards the automotive industry, driven by strong consumer demand. This in turn will have a positive effect on the textile staples market during the forecast period. Growth in per capita spending in the APEJ region boosts the global textile staples market. APEJ has been regarded as a source region of exports, as China and other developing countries such as India are significant producers of textile staples. However, the region is slowly becoming an important consumer as well, because of consistent growth in incomes driving demand for textile staples. In recent years, there has been a rapid increase in household cotton consumption in developing regions than in other parts of the world. The increased penetration of organised retail is also likely to boost the consumption of textiles in the domestic markets, especially in India.

Cyclical pattern of textile staples market may limit the growth of this market

The historical market scenario of the textile staples market reflects the cyclical pattern of the industry including natural as well as synthetic fibre with periodic overcapacity and resulting pressure on pricing. This cyclical nature arises, in part, from investments made at the top of the cycle for cashing high margins with available funds, thereby shifting the balance of supply to demand as new capacity comes on-stream in large quantities. In the absence of sufficient economic growth to generate increased demand, or the closure of facilities to mitigate the effect, new capacity causes a period of regional or global overcapacity often leading to downward pressure on margins. It is anticipated that this cyclical pattern may hamper the growth of the market at a global level during the forecast period.

Global Textile Staples Absolute $ Opportunity Analysis by Application

Apparel is expected to create a total incremental opportunity of nearly US$ 30.5 Bn between 2017 and 2027. The segment is anticipated to register a CAGR of 3.6% over the forecast period. Interior Flooring is expected to create a total incremental opportunity of nearly US$ 7 Bn between 2017 and 2027. The segment is anticipated to reach a market value of nearly US$ 18 Bn by 2027 end, at a CAGR of 4.6% over the forecast period. Automotive is expected to create a total incremental opportunity of nearly US$ 15 Bn between 2017 and 2027. The segment is anticipated to witness a CAGR of 7.5% over the forecast period. APEJ is emerging as a significant player in the synthetic fibre segment driven by the growing demand for technical textiles. The APEJ region is emerging as a significant player within the technical textiles market. The U.S. is a significant consumer of technical textiles, followed by Western Europe and Japan. However, the technical textile industry in developed countries such as United States and Japan is maturing in a significant way. The fast-paced economic growth leading to infrastructure development as well as higher disposable incomes has made India a key market for technical textile products. Moreover, the country has established a foothold in the production of technical textiles owing to its skilled and technical manpower as well as abundant availability of raw materials.

Cotton staple will remain the dominant segment in the textile staples market

The cotton staple will remain dominant among other natural fibre counterparts as rising middle class in developing countries has a special preference towards cotton. In developed regions, consumers concerned about the environment also prefer natural fibres. The demand for synthetic textile staples, led by polyester, will be driven by technology advancement as functional aspects can be easily incorporated in them for technical applications.

Source: Find Market Research

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Don’t do business with new partiesin textile market: FOGWA

Surat: Embroidery and power loom weavers have issued an appeal to unit owners to not do business with new parties in textile markets located on Ring Road. The appeal has been issued after incidents of defaults by textile traders in the markets located on Ring Road is on the rise. Many fly-by-night operators have become active in the markets ahead of Diwali festival. Over the past 15 days, 20 incidents of cheating have come to the fore where embroidery unit owners and weavers have lost close to over Rs 10 crore. President of Federation of Gujarat Weavers Welfare Association (FOGWA) Ashok Jirawala said, “Embroidery and power loom weavers are soft targets for fly-by-night operators. There are certain fabric merchants who are hand-in-gloves with the cheater gangs and they arrange for soft targets. However, it is important that unit owners should not enter into dealings with new parties.” Jirawala added, “Recently, an Ahmedabad-based party had furnished fake shop address for delivery of goods and cheated the embroidery unit owners. The goods did reach at the said address, but when it was time for payment, the party disappeared. Same is the situation in the city where traders operated from rented shops and disappear after taking delivery of finished and grey fabrics.” President of Surat Embroidery Unit Owners Association Dinesh Angadh said, “The embroidery sector is passing through a tough phase and unit owners cannot afford to be cheated by the fly-by-night operators. Hence, we have appealed the unit owners to do business with their trusted clients and avoid entering into deals with new clients till Diwali.”

Source: Times of India

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Tamil Nadu goverment seeks early settlement of Rs 5,427-crore IGST dues for 2017-18

The Tamil Nadu government has sought an early settlement of Rs 5,427-crore integrated goods and services tax (IGST) dues to the state for the financial year 2017-18, along with the ad-hoc settlement of IGST dues for September 2018. In a memorandum to Prime Minister Narendra Modi, state chief minister Edappadi K Palaniswami on Monday said a significant shortfall in the settlements of amounts due to Tamil Nadu was found and accordingly the issue was flagged off to Union finance minister Piyush Goyal on July 6, 2018, for early settlement of the unsettled IGST to Tamil Nadu. The IGST collected is meant for distribution between the Centre and the states. Close to 50% of the IGST will accrue to the Centre and 50% to states. States would receive IGST in proportion to the consumption of goods and services on the destination principle. The share of Tamil Nadu roughly works out to be Rs 6,730.6 crore of which Rs 1,304 crore has only been settled and a balance of Rs 5,426.60 crore remains unsettled. He requested the Prime Minister to issue instructions to the finance ministry for early settlement of the unsettled IGST of Rs 5,426.60 crore to Tamil Nadu for the financial year 2017-2018 and the ad-hoc settlement of IGST due for September, 2018. The chief minister, in his 20-point memorandum, has also sought special assistance of Rs 2,000 crore as compensation for the unfair treatment that the state received under the 14th Finance Commission. The 14th Finance Commission had recommended an increase of 10% in vertical devolution from 32% to 42% to the states. Though the share in Central taxes due to vertical devolution has been increased, in reality the effect has been neutralised by reduction in the horizontal devolutionary share of central taxes to Tamil Nadu from 4.97% to 4.02%. This reduction in the inter-se share to Tamil Nadu is 19.04%, which is the highest erosion in share amongst all states. Thus, the combined effect on Tamil Nadu’s overall share in Central taxes has increased from 1.59% to 1.69% only, he pointed out. According to him, the average increase in share of Central taxes during the year 2015-16 over 2014-15 is 46.06% among fifteen major states and 49.85% among all the states, whereas Tamil Nadu could get an increase of only 20.98%. “This was the lowest amongst all the states. Further, Tamil Nadu is the only state to get an increase in share of central taxes lesser than 30%. By discounting the 18% growth rate in Central tax collection, Tamil Nadu has benefited only by 2.98% additionally over and above normal growth due to the increased share recommended by 14th Finance Commission, while all other states benefited by 31% on an average over and above the growth rate in central taxes,” the chief minister said.

Source: Financial Express

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India to be among top three economies by 2030, says Rajnath Singh

Union Home Minister Rajnath Singh Monday said India will be among the top three economies of the world by 2030 if it kept up its current pace of growth. “India today is one of the fastest growing economies. We were at number nine in the list of 10 biggest economies of the world but jumped to the sixth position over the past few years,” Singh said while addressing the concluding session of the two-day Investors’ Summit here. “If it goes at this pace India will sure be among the world’s three biggest economies by 2030,” he added. Stressing that the time was right for global investors to invest in India, the Union Minister said major structural and procedural reforms were underway in the country under the “credible” leadership of Prime Minister Narendra Modi. “You will see that the GST will prove to be a boon for the country in the coming times,” he said. Noting that the government’s policies can be debated, Rajnath Singh claimed that the “undoubtable credibility” of the prime minister has ensured that despite the fall in the value of rupee against the US dollar, due to a combination of factors, the investors’ confidence to invest in the country remains intact. “The Centre’ policies can be debated but the prime minister’s intentions cannot be questioned,” he said. On the occasion, the home minister congratulated Uttarakhand Chief Minister Trivendra Singh Rawat for organising the state’s first investors summit on a grand scale and said that it heralded the beginning of a new era in the economic development of the hill-state. Inviting investors to Uttarakhand he said the state had great potential in tourism and wellness sectors and its sound law and order would never give them a chance to complain. The investors will have a plethora of of opportunities to tap as 1.5 lakh wellness centres are to be set up across the country under Ayushman Bharat Yojana and Uttarakhand is capital of Yoga, Ayurveda and meditation, he said. “With a renewed interest all over the world in yoga and alternative treatment systems, Uttarakhand holds much in store for investors,” he said. Pointing out that there are no challenges on the law and order front in the state, he said investors can carry out their businesses peacefully. He further noted that delayed security clearance from the home ministry was a source of headache for investors and assured them that his ministry will grant clearance within 60 days of applying. Meanwhile, Rawat said the investment summit had achieved its objective by attracting investments worth over Rs 1.20 lakh crore. “We have brought investments worth Rs 1,20,150 crore and a total of 601 MoUs signed with leading firms in different sectors, ” the chief minister said.

Source: Financial Express

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Two Indian refiners contract Iranian crude for November

Petroleum minister Dharmendra Pradhan on Monday said that two Indian oil refiners have contracted Iranian crude oil for November without having clarity on whether India will get a waiver from the US with regard to the impending sanctions on the Persian Gulf nation. “There are various things being discussed with all concerned authorities and the world leadership have acknowledged that India’s domestic requirements need to be fulfilled,” added Pradhan while speaking at The Energy Forum workshop. The US sanction on Iran will come into effect from November 4, 2018. India is also considering payments to Iran for its crude oil in rupee terms, said Indian Oil chairman Sanjiv Singh. Iran is the third-largest supplier of crude oil to India which procured 10% of its requirment from the Gulf country during 2017-18. Indian Oil has booked Iranian oil “as usual”, said Singh when asked about the quantity of oil bought. Pradhan added that India today is in a position to be part of the international oil dialogue given its demand. India is suffering due to high oil prices as well as a weakening rupee which has led to high retail fuel prices in the domestic market. “We have discussed the issue of production increase with the oil minister of Saudi Arabia who reiterated that it will honour its decision to increase output as per a deal struck in June,” Pradhan said. An increase of 1 million barrel of crude oil production per day by Opec members may subdue the increasing oil prices in the international market. Talking about the government’s decision to ask the oil marketing companies to absorb Rs 1 for every litre of diesel and petrol sold, Pradhan said the government companies have a social responsibility apart from making profits. While the government cut excise duty by Rs 1.50 per litre of the auto fuels, it asked the states to match the step.Some BJP-ruled states have already reduced VAT charged by it by Rs 2.50 per litre. The minister added that other states should also take part in providing relief to consumers. Retail auto fuels pricing is based on trade parity formula taking into account international product prices. Singh added that the OMCs are a part of the oil pricing policy of the country and said the current Rs 1 discount on diesel and petrol is a temporary measure and fuel pricing remains deregulated.

Source: Financial Express

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Rupee slumps 30 paise to close at record low of 74.06

The Indian rupee continues to get beaten down. The currency tumbled 1.8 per cent intra-week to record a new all-time low of 74.22 on Friday. The Reserve Bank of India (RBI), surprising the market by maintaining status quo, triggered a sharp sell-off in both the currency and the equity market. The market was expecting the RBI to increase rates by 25 basis points, and also announce some measures to curb the free-fall in the rupee. Though the rupee recovered from the low of 74.22, it has failed to sustain higher. The currency reversed lower again on Monday from 73.77 and closed at 74.07, down 1.6 per cent for the week. Along with the surprise move from the RBI, two other factors led to the fall in the rupee last week. The first was the strong surge in oil prices. Brent crude prices surged above $86 per barrel last week, heightening concerns over India’s current account deficit (CAD) widening further. The second factor is the continuing foreign money outflows. After selling $1.42 billion in the debt and $1.49 billion in the equity segments in September, foreign portfolio investors (FPIs) continued their selling spree in the first week of this month. They sold $310 million in the debt and $970 million in the equity segments, respectively, last week. The outflow in the equity segment has been increasing consistently over the last couple of weeks. This remains a concern, and could continue to keep the rupee under pressure. This could possibly be the worst year in the last few years in terms of foreign money outflows. FPIs have pulled out $7.34 billion in the debt and $2.66 billion in the equity segments, respectively, so far this calendar year.

Rupee outlook

The outlook for the rupee continues to remain negative. Key resistances are at 73.7 and 73.5. A fall to 74.5 is likely in the coming days. The level of 74.5 is a crucial support level for the currency. The price action around 74.5 will need a close watch as that would be key in deciding the next move. If the rupee manages to recover from 74.5, there is a possibility of a corrective rally to 73 thereafter. But a fresh and strong trigger is needed for this up-move to happen. The level of 73 is a key short-term resistance for the rupee. The downside pressure will ease, and the sentiment will turn positive only if the rupee manages to breach 73 decisively. But such a strong move looks less probable in the near term.

Source: Business Line

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Global Textile Raw Material Price 08-10-2018

Item

Price

Unit

Fluctuation

Date

PSF

1545.85

USD/Ton

0%

10/8/2018

VSF

2200.87

USD/Ton

0%

10/8/2018

ASF

3027.65

USD/Ton

0%

10/8/2018

Polyester POY

1608.44

USD/Ton

0.73%

10/8/2018

Nylon FDY

3508.00

USD/Ton

0%

10/8/2018

40D Spandex

4978.15

USD/Ton

0%

10/8/2018

Nylon POY

5502.17

USD/Ton

0%

10/8/2018

Acrylic Top 3D

1834.06

USD/Ton

0.80%

10/8/2018

Polyester FDY

3253.27

USD/Ton

0%

10/8/2018

Nylon DTY

3202.32

USD/Ton

0%

10/8/2018

Viscose Long Filament

1790.39

USD/Ton

0%

10/8/2018

Polyester DTY

3668.11

USD/Ton

0%

10/8/2018

30S Spun Rayon Yarn

2882.09

USD/Ton

0%

10/8/2018

32S Polyester Yarn

2176.12

USD/Ton

0%

10/8/2018

45S T/C Yarn

2998.54

USD/Ton

0%

10/8/2018

40S Rayon Yarn

2561.86

USD/Ton

0%

10/8/2018

T/R Yarn 65/35 32S

3187.76

USD/Ton

0%

10/8/2018

45S Polyester Yarn

2707.42

USD/Ton

-0.53%

10/8/2018

T/C Yarn 65/35 32S

2343.52

USD/Ton

-0.62%

10/8/2018

10S Denim Fabric

1.36

USD/Meter

0%

10/8/2018

32S Twill Fabric

0.84

USD/Meter

0%

10/8/2018

40S Combed Poplin

1.17

USD/Meter

0%

10/8/2018

30S Rayon Fabric

0.67

USD/Meter

0%

10/8/2018

45S T/C Fabric

0.70

USD/Meter

0%

10/8/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14556 USD dtd. 08/10/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

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Pakistan : Revival Of Textile Industry To Bring Economic Revolution In Country

ISLAMABAD, (UrduPoint / Pakistan Point News - 8th Oct, 2018 ) :The speakers here in a tv programme on Monday said that the revival of textile industry would bring an economic revolution across the country and the ratio of unemployment would reduce. Talking at ptv news, they appreciated the government's steps regarding the subsidies of Rs 40 billion on gas supply to the industries. Rashid Ahmed Sadique, Chairman Korangi Association of Trade and Industry (KATI) said that the impact of revival of textile industry would be on other industries. He said that after the huge growth, the export of textile industry would be enhanced at large scale and value of Currency would be improved. He said industrial revolution would mitigate the economic crisis in the country. The government, he said had all the details about those Pakistanis who had looted the money in the past and owned property in foreign countries. It was the need of hour that government should take stern action against them and bring back the looted money of public, he said and suggested that the government should initiate a campaign to bring back the money. Over 10,000 Pakistanis had property in foreign countries and the government had announced taking action against them. He appealed to overseas Pakistanis to bring back their money and invest here as currently, the country was facing many economic challenges.. An economist Sheikh Ehsan said that government should focus on signing agreement with different governments to bring the money to Pakistan as Pakistanis had over US$ 200 billion in the foreign banks of the United Kingdom, Switzerland, the United Arab Emirates and the United States. Pakistan had a huge potential for foreign investment and now the trust of foreign businessmen had increased in the present government, he added.

Source: Urdu Point

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Bulgarian Textile Recyclers comment on eco-tax

On 30 May 2018, the Bulgarian government started procedures to change its Waste Management law, including the introduction of a fee for all second hand clothes put on the local market, potentially under Extended Producer Responsibility. Official statements from the Bulgarian Ministry of the Environment and Water do not explain if the proposed changes to the law will affect only second hand textiles or also new textiles. The stated intention of the changes to the law is to implement 2018 revisions to the EU Waste Framework Directive. The Extended Producer Responsibility fees are justified, it is claimed, in order to prevent the burning of waste textiles within Bulgaria as well as to reduce Bulgarian imports of second hand clothing. ARTSHC believes bringing in a fee or Extended Producer Responsibility will not lead to the intended outcome; moreover, it expects these changes will have unintended consequences. The whole of the European Union relies on each of its Member States to support the Circular Economy. A large proportion of the second hand clothing collected in Western and Central Europe is exported to Eastern Europe where it is sorted and prepared for reuse, as a result of which the life of the textile is extended through reuse. The proposed fee and Extended Producer Responsibility will lead potentially to the closure of sorting companies in Bulgaria as this will be a direct cost on their businesses. This will jeopardize other textiles industries across Europe that export second hand clothing to Bulgaria. Collection systems and collectors across the EU will not achieve the value of the textiles they collect. These adverse effects will undermine the general credibility of Extended Producer Responsibility, and in particular the use of Extended Producer Responsibility for the Circular Economy. Last but not least, the Bulgarian government will not meet the recycling targets for textiles set down in the revised Waste Framework Directive by damaging existing companies through excessive fees and Extended Producer Responsibility costs. The textile recycling sector works already within very small margins. Damaging legal businesses will simply allow the already existing black economy of unregistered companies to grow. In addition, the proposed fee and Extended Producer Responsibility will not prevent burning of unusable cheap textiles. ARTSHC calls for a total transparency of the management of any fees that would be collected, including under an Extended Producer Responsibility scheme.

Source: Recyling Magazine

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Ukraine's Textile-Kontakt to invest in new fabric unit

Leading Ukrainian textile fabric seller and producer Textile-Kontakt Group plans to invest up to 100 million Ukrainian hryvnia (UAH) in 2019 in a new fabric-manufacturing unit in Chernihiv. UAH 30 million will be invested this year as the company is scheduled to open in December. The annual capacity of the plant will be 2-3 million meters of fabric. The unit will create up to 80 jobs and when it reaches full production capacity by 2019 end, 100 more jobs will be created, according to a news agency report. The products will be will be 100 per cent cotton fabrics: twill, bleached calico and printed cotton and blended raincoat fabric ‘Greta’. A special fabric for the defence ministry will also be produced. Textile-Kontakt was founded in 1995 by Oleksandr Sokolovsky and represents a holding company that combines various areas of assets: wholesale and retail trade, the import of fabrics, accessories and home textiles, as well as tailoring of special clothing, including military uniforms. (DS)

Source: Fibre2fashion

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Tajikistan to develop textile and clothing production

Textile and clothing production in Tajikistan for the eight months of this year increased by almost 30 percent, Avesta reported. Ministry of Energy and Industry of the country states that the amount of production of textile and clothing products during this period made more than 844.5 million somoni (more than $ 89.6 million). In the textile and clothing industry, the industrial production index increased by 29.1 percent due to an increase in the output of cotton fiber, fabric, carpets and carpet products, and hosiery. As statistics agency of the country reports, for the specified period, the textile exports amounted to more than $ 149.6 million, which is $ 71.6 million, or 92 percent more than the same period last year. Of the total exports, over $ 106.9 million is accounted for exports of cotton fiber. In light industry, an increase in food production is also observed - by 2.3 percent due to an increase in the production of flour, meat, sausages, canned goods, and so on. During this period, food production amounted to more than 2.7 billion somoni ($ 287 million). This sector of the economy has a long tradition, the origins of which date back to the heyday of the Great Silk Road. In the middle of the last century, a complete production cycle was organized, including the production of raw materials, spinning, fabric manufacturing, and the manufacture of garments and carpets. The main products are fabrics and garments made from them, denim pants, shorts, textiles, carpet and leather products. The country has a full value chain, starting with the production of raw materials to the production of finished products. The sector has modern enterprises for sewing clothes, shoes. The government considers this sector a priority industry. It is planned to increase the export potential on the basis of the modernization of production, stimulating the creation of new enterprises. Tajikistan is also successfully implementing the International Trade Center (ITC) program, aimed at supporting the development of the textile and clothing industry and improving the quality management infrastructure.

Source : Azernews

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Intertextile Shanghai gave strong business results

Around 78,000 trade buyers from some 110 countries and regions visited the 2018 Autumn Edition of Intertextile Shanghai Apparel Fabrics, held during September 27-29. There were 4,480 exhibitors from 33 countries and regions, showing that the show was well received both by exhibitors and buyers. The exhibition also gave strong business results. Wendy Wen, senior general manager of Messe Frankfurt (HK), commented at the conclusion of the fair: “The diversity and internationality of Intertextile Shanghai Apparel Fabrics once again came to the fore, as exhibitors and buyers were widely satisfied in meeting their participation objectives. This was aided by the earlier date which more closely aligned the fair with the industry’s earlier autumn / winter sourcing season, and was appreciated by both exhibitors and buyers. There were many exhibitor success stories this edition throughout all the fair’s product categories, while those focusing either on meeting their existing customers or new buyers were able to find their targets. Those focused on China reported the continued strength of this market, while exhibitors targeting international markets were pleased with the buyer diversity and international brands in attendance. For buyers, the unrivalled range of quality products covering the entire apparel fabrics and accessories industry stood out the most for many of them.” On the international exhibitors side this edition, strong growth was registered in the Functional Lab with the number of exhibitors increasing by 92 per cent, while participation in Premium Wool Zone grew by 30 per cent. In Accessories Vision, the number of overseas exhibitors increased by 25 per cent. Meanwhile, nearly all of the fair’s Group Pavilions, from the likes of Hyosung, INVISTA, DuPont and OEKO-TEX, were larger this edition, while new pavilions from Birla, ECOCERT + GOTS, the Indian Chamber of Commerce and the Korea Outdoor and Sports Industry Association expanded the sourcing options for buyers. While there was much business interaction in these areas, many buyers also found the time to gain inspiration for the next season in the fair’s many trend areas for A/W 19-20, including the Intertextile Directions Trend Forum, four Chinese trend forums, as well as trend areas in the Japan, Taiwan and Korea Pavilions. The fringe programme also included a new video display ‘FutureCast: The State of the Consumer’. Developed by the Doneger Group, this presentation helped the apparel industry to gain a wider perspective of the consumer market by delving into the main socio-cultural and innovation developments and their repercussions on business, design, creative and marketing opportunities. “This is our first time exhibiting here, and both we and our knitting partners have met a lot of potential customers. We target both brands and end-users, and the fair does attract quality Chinese fashion brands as well as garment knitters and weavers. Our products are quite expensive, so we target the high-end market, and many visitors are from this sector. Victoria’s Secret saw our product in the Trend Forum and came to our booth. We’ve also had buyers from Icebreaker and other luxury brands visit us. Chinese buyers are looking for innovation from overseas brands, so we do attract more attention being an international company,” James Tang, marketing manager, Südwolle Group, China (German brand), said. “The China market pays more attention to the quality and functionality of products nowadays, which provides great potential for us. Dickies used our SOLOTEX fibre last season in China and had great success with it, so we see a lot of potential in this market. We have seen so many buyers in this fair, including textile producers and wholesalers, but also brands such as H&M, Lacrosse and Fila, and Chinese brands like Youngor, Li-Ning, Bosideng and Nanshan Group,” Norihisa Fujiwara, section manager, Textile and Apparel Business Dept, Teijin Frontier, Japan, said. Speaking about the premium wool zone, William Halstead, sales director, Taylor & Lodge, UK, said, “We are satisfied with the result this time. We always meet new contacts at this fair, and the number of buyers in the Premium Wool Zone this time has increased. It’s important we are in this zone because of the growing made-to-measure business in China. The zone is very established in this market, and many people know this is where to find high-quality wool. In Intertextile, although our main focus is on China, we’ve also seen customers from Singapore, India and the US.” Functional Lab was also a great hit. “We exhibit here to promote our brand to Chinese consumers and brands, and Intertextile Shanghai gives us a lot of exposure in the market. In addition to many Chinese buyers, we’ve also met a lot of international visitors from the US, Europe, India and Bangladesh. The visitor flow has been excellent so far, and we’ve already distributed around 4,500 brochures to interested buyers,” Yong Hwan Shin, marketing manager, Taekwang Industry, Korea, said. “Our target here is the Chinese market, in particular high-end brands, and the buyer quality at Intertextile is very good. Septwolves and other well-known domestic brands have visited our booth, while we have also met some high-quality customers with stores on Alibaba, Tmall and Yanxuan. Online shopping is a big trend in China, and the number of e-commerce apparel brands is growing very fast. In addition to these new contacts, we can also meet many of our existing customers here,” Anchuan Tang, design promotion manager, Esquel Ent, Hong Kong, said.

The show had a major focus on sustainability.                 

 “This edition we moved to the All About Sustainability area, and because of this we have met more high-quality customers who are interested in our sustainable products. Environmental protection is a big trend in China now, and Intertextile is a good platform for us to meet domestic buyers, while we can also meet some of our overseas customers here. This is a first-class business platform, where we can not only meet our existing customers, but also discover new ones,” Leon Xu, sales manager, Hemp Fortex Industries (Rushan), China, said. “As one of the largest textile exhibitions in the world, we can not only meet many of our existing customers here, but also find new potential customers. The number of people in our booth at any one time is always high. Moreover, the quality of customers here is generally good, which, when it comes to doing business, is a unique feature of Intertextile when compared to similar exhibitions,” Sean Pan, sales manager, 3M Intl Trading (SHA), China, said. Markus Göldi, general manager, Global Trend, Switzerland, who participated as a buyer said, “This exhibition represents the whole textile industry, we can find everything we need! Nowhere else in the world can you find this, only here in China. One place, three days, you can find everything you need, including fabrics, trims and all the accessories, and you can find new suppliers to work with.” Kuldeep Raswant, Golden Unicorn (HK), Hong Kong, said, “I found this fair amazingly well laid out, and it has everything we are looking for. We are able to do 90 per cent of the sourcing we need to here. Intertextile also gives us insights into what are the new things coming out. It is a great experience to be here.” Intertextile Shanghai Apparel Fabrics is co-organised by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. (SV)

Source: Fibre2fashion

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