FW
The Sri Lankan budget has been announced. Among many things, it primarily focuses on strengthening the country's economy. Following the route listed by the budget, it becomes quite evident that there are multiple benefits for the apparel and textile sector.
Presenting the budget, FM Ravi Karunanayake said his government has proposed the formation of a textile cluster that would include sizing, dyeing and finishing units by the private sector. The government will support the formation of a textile cluster by providing investment relief to businesses that will invest in this venture and will also provide adequate space to save close to $2,000 million per annum.
The budget also enlists that garment exporters will also be granted permission to import branded products by enterprises for reworking, operating under the commercial hub regulation. These garments will then be exported to countries where there is no preferential treatment.
The textile and handloom industry of Sri Lanka has a significant domestic market and will generate employment for many. The Industrial Development Board (IDB) will provide the necessary infrastructure and training. The board has also been requested to increase engagement with the industrialists who require knowledge transfer and upgrade the industrial estates to support the small and medium enterprises (SME) sector. The government has proposed to allocate Rs 500 million towards this sector.
The government will also allow apparel companies based in the country to invest in overseas entities involved in apparel design and manufacture up to 5 percent of their average export turnover of the preceding three years in any given year. Profits and income of such enterprises established overseas should be received by the investing company in Sri Lanka.
The government has also proposed a significant shift in the policy framework by keeping a special room for vocational training, which will thus mean providing scholarships to anyone who wishes to follow a vocational training programme at a state operated institution. This will enable vocational training in Sri Lanka for all at no cost.
The global market for organic cotton has grown by 67 per cent. There’s also greater global awareness of the need to have good quality organic cotton seeds. Organic cotton is grown using methods and materials that have a low impact on the environment. Organic production systems replenish and maintain soil fertility, reduce the use of toxic and persistent pesticides and fertilizers.
In addition to being one of the most widely grown crops in the world, growing conventional cotton is also one of the most chemical-¬intensive. These chemicals have tremendous impact on the earth’s air, water, soil, and the health of people in cotton-growing areas.
Apparel companies are developing programs that either use 100 per cent organically grown cotton or blend small percentages of organic cotton with conventional cotton in their products. There are a number of companies driving the expanded use of domestic and international organic cotton.
Organic cotton now equals 0.7 per cent of global cotton production. India is a significant organic cotton producer. Among others are the United States, China, Syria, Turkey. The specialty of Indian organic cotton is that all the cotton is hand-picked. Organic cotton is promoted as being skin-friendly and soothing and as being ideal for baby clothing.
Mimaki has moved into industrial textile printing with the Tiger-1800B printer. It is a direct-to-textile machine printer and is an eight-color device suitable for high-volume digital production of applications such as furnishings, flags, sports apparel and interior fabrics that could only be cost-effectively achieved in the past using traditional textile printing technologies.
Optional units can be added to expand the printer’s capabilities, including feeding units for jumbo rolls or folded fabrics, heating units and a folding arm unit for storing fabric in the box after printing. The fashion industry is currently the main target for this machine, which uses reactive inks. Mimaki will add other ink settings in future. The company is also currently in the final process of making a Tiger that will be suitable for the bedspread market.
Mimaki, based in Japan and founded in 1975, is a leading manufacturer of wide-format inkjet printers and cutting machines for the signs and graphics, textiles and apparel and industrial markets, and also provides a comprehensive range of supporting products like hardware, software and associated consumable items such as inks and cutting blades.
Mimaki cut and print devices deliver an array of applications. Eco-solvent inks in a variety of colors and advanced printing technologies enables production of anything from fine art reproductions to outdoor signage.
Euratex hosted five project partners in Brussels, to launch the newly Erasmus+ KA2 project Art Cherie (Achieving and Retrieving Creativity through European Fashion Cultural Heritage Inspiration). The project, coordinated by Euratex addresses the issue of apprenticeships delivery in the fashion sector dominated by SME’s and micro enterprises. The objective of the Art Cherie project is to contribute to the protection and exploitation of the fashion cultural heritage; organize and structure it in vocational training courses for the improvement of EU fashion designers working in textiles and clothing industries and young fashion designers.
Pitti Bimbo, the fair dedicated to junior fashion, will take place from January 19 to 21, 2017 at the Fortezza da Basso in Florence. The new winter edition of the event, whose theme is ‘Pitti dance off’ will be an international showcase for 503 collections, 280 of which come from abroad. They will be presented in stands or with ad hoc events and fashion shows. The event confirms its dual focus on the best-known brands N°21 Kids, Little Marc Jacobs, Twin-Set, Blumarine, Petit Bateau will be among the exhibitors and on the niche brands and those that are the result of the creativity of small companies that need visibility.
At the moment, junior fashion is experiencing a delicate moment. When there is uncertainty, there is a tendency to purchase fewer products and to chose, especially for younger children, less expensive clothing and accessories, said Pitti Immagine CEO Raffaello Napoleone. As per National Institute of Statistics (ISTAT), exports of children’s clothing reached €101.8 million in the period of January to August recording a growth of 5.4 per cent compared to that of the same period last year, disclosed Sistema Moda Italia.
Driving sales across the border were European countries that absorbed almost 67 per cent of the exports and registered a +7.6 per cent. This, despite a drop in purchase by Spain, the most important client for ‘Made in Italy’ children’s fashion. Standing out among the most dynamic markets are the United Kingdom (+19.1 per cent), Switzerland (+17.6 per cent), France (+8.3 per cent) and the US (+24.1 per cent), while Saudi Arabia (+57.3 per cent) and Poland (174.1 per cent), both in list of the top 15 destination countries, have registered a veritable boom.
In the coming year, the fashion industry is expected to pick up speed, albeit not in double digits, posting an improvement compared to 2016, says a recent survey ‘The State of Fashion 2017’ by McKinsey and The Business of Fashion. The principle is fascinating: if we calculate the value generated by the global fashion industry, we come up with a figure of $2.4 trillion, equal to the GDP of a hypothetical seventh-biggest economy in the world after the US, China, the EU, Japan, India and the United Kingdom, because a trillion is equal to one million of billions.
According to the survey, in 2017 revenue in the fashion industry will grow on an average 2.5-3.5 per cent at a slightly faster pace than 2-2.5 per cent in 2016. The figure is however, still far from the historical annual growth rate of 5.5 per cent in the industry from 2005 to 2015. In the decade, the industry’s growth rate exceeded by several percentage points that of world GDP.
Year 2016 was a particularly difficult for the global fashion industry and more so for the medium-high and high-end segments of the market: luxury brands and medium-sized fashion companies posted a lower growth rate (0.5-1 per cent lower) than the overall average.The figure is in line with the data elaborated by Bain & Company for Altagamma Foundation. According to Worldwide Market Monitor, in 2016 sales of personal luxury goods fell by 1 per cent to € 249 billion, but a 3 per cent increase at constant rates is expected in 2017.
Spinning mills in Thailand are expected to recover from the economic downturn of the past few years. Therefore, cotton imports 2016-17 are expected to increase to around 1.4 million bales, up approximately 6 per cent from2015-16.
Imports of US cotton in 2016-17 are expected to increase to 450,000 bales, up 6 per cent from 2015-16. Large-scale spinning mills which account for approximately 60 per cent of total cotton yarn production still maintain their competitive edge in domestic and export markets as they have invested in new machinery and improved their production efficiency. However, competition from cheaper yarn imports from Vietnam and India will likely remain a challenge to domestic yarn producers, particularly for small-scale spinning mills.
Cotton imports in 2015-16 were lower than expected at around 1.3 million bales, down 13 percent from 14-15. This reflected a reduction in cotton and cotton-blended yarn production which declined approximately 5 percent as spinning mills were forced to hold large inventories of yarn. Imports of cotton yarn increased 44 per cent from 2014-15 with cotton yarn imports from Vietnam and India doubling. Additionally, exports of cotton yarn declined 28 per cent, particularly to China and Japan due to an economic slowdown and competition from Vietnam.
Imports of US cotton in 2015-16 declined to 424,113 bales, down 15 per cent from 2014-15. However, US cotton still maintained its market share accounting for approximately one third of total cotton import demand. Meanwhile, medium-scale spinners who limited their purchases to cheap cotton to maintain their operations imported more Brazilian cotton.
Joachim Maier, Head of Marketing at Rieter Machines & Systems says the textile machinery market is not as stagnant as it might appear. This is because demand continues to be steady due to the need for increasing competitiveness through equipment upgrading, especially in growing Asian textile producing countries. Compared to a few years ago, the number of new machines delivered to the market is going down, he said.
Maier was speaking on the sidelines of the ITMA Asia + CITME 2016 where he shared his understanding of the current Chinese market. Coming to know that China is the largest air-jet spinning market worldwide, Rieter presented its J 26 automated air-jet spinning machine for the first time in China.
Designed for processing viscose, combed cotton and blends, this machine is said to have been further enhanced and enables a wide range of yarn to be produced economically. Maier added that it is believed that the Chinese market will still grow though not as fast as it did in recent years. Due to high labour costs and labour shortage, many Chinese customers have started moving to Southeast Asian countries like Vietnam and Indonesia, and to the province of Xinjiang in Western China on the other.
In order to gain sufficient experience with the various types of polyester, Rieter works closely with customers. The company not only focuses on a practical and market-oriented machine development, but also on a close and sustained partnership with its customers, Maier added.
Although the referendum to exit the European Union had sent major shocks for shipments from Bangladesh, Britain's almost certain exit from the European Union did not impact on Bangladesh's export receipts, according to last four months' trade data. There was concern after the referendum in the UK that produced overwhelming ayes on the question of breaking away from the EU. But recent data shows so far there has been no impact however, the government will observe further whether it will impact trade in the near future. According to the Ministry of Finance, the referendum result did not to have a major effect on exports from Bangladesh.
Demand for Bangladesh's products in the EU market and in other parts of the world is more or less immune to any kind of changes. Exports had grown by 10.8 per cent in the EU zone, one of the key export destinations for Bangladesh and just 10 per cent on the US market.
Woven garment shipments rose by 2.38 per cent dung the first quarter on average, knitwear at 4.64 per cent and leather as well as leather goods at 16.69 per cent, the official documents revealed. The government also kept unchanged the revised export-shipment growth at 10 per cent for the current fiscal year. Exports fetched the country $10.79 billion in the first four months of the current fiscal until October, with the growth rate calculated at 6.53 per cent. The growth accounts for over 29 per cent of $7 billion target for the period.
Leading fashion and lifestyle conglomerate, Arvind has bagged the ‘Top Rank Award’ in Energy Conservation and Efficiency at the National Energy Conservation Awards 2016. The event was organized by the Bureau of Energy Efficiency (BEE), Ministry of Power. The Top Rank Award recognizes an industrial unit that wins the first prize for three consecutive years. Arvind is the only textile conglomerate to reach the milestone. Competing against 43 players, Arvind clinched the top position yet again by displaying consistent efforts towards energy conservation at its Santej plant in Ahmedabad, Gujarat.
Compared to FY2015-16, Arvind was able to further reduce specific consumption in thermal energy by 12 per cent besides achieving 12 per cent reduction in specific electrical energy consumption. Arvind has also installed 1.30 MW roof-top solar power generation at the Santej plant, the largest of its kind in the Indian textiles industry.
The award was presented by Union Minister of State with Independent Charge for Power, Coal, New and Renewable Energy in the Government of India Piyush Goyal to the CEO Lifestyle Fabrics (shirting, khaki and knitwear) at Arvind, Susheel Kaul. Kaul said at Arvind, improving the plant’s energy efficiency has always been a focus and the company continues to invest in new technologies for sustained energy conservation. This award means a lot to the team at Arvind.
Commenting on the award, Harvinder Rathee, Head Engineering - Lifestyle Fabrics (shirting, khaki and knitwear) said the company was able to achieve power and thermal savings through various innovations, new technologies, continuous monitoring and all the efforts have paid off. Going ahead, the company has introduced various initiatives in its plant to conserve energy such as mechanical vapor recompression for evaporation, polymeric multi-effect evaporation, efficient pumps, artic master on chillers, LEDs, use of renewable energy, such as day-light sheets and natural exhaust and gravity ventilations in production halls.
