A special follow-up and news digest from TextileFuture
Mixed bag for the European Textile and Clothing sector
The EU T&C Textile and Clothing sector reports for the third quarter of 2013 as against the same period of 2013 that textile production increased by 1.1 % and clothing production by 1.4 %, whereas employment decreased in textiles 4.0 %, and clothing 4.4 %. Textile turnover was up 1.1 %, but clothing sales decreased by 2.0 %. Textile retail sales were up 0.9 %. Extra EU imports of textiles increased 2.8 %, whereas clothing imports decreased by 0.5 %. Extra EU exports of textiles diminished by 0.6 %, however clothing exports were up 4.5 %. The trade balance of textiles was positive +24.8 %, clothing was 2.8 % negative.
Chinese textile investment in Pakistan
Chinese textile group Shandong Ruyi Technology Group (circular knitting mills for cotton jersey fabrics and among the top ten largest textile enterprises in China) acquired a 52 % stake of MTM Masood Textile Mills considered as most technologically advanced enterprise in Lahore, Pakistan, also entertaining close relationship to stores of its foreign buyers. It monitors online sales pattern in these stores, including colours that are preferred by the customers
MTM’s range entails the production and export of yarns, fabrics and a variety of garments, including active wear, under- and sleepwear, as well as sportswear. The group is verticalised with spinning, circular knitting, weaving, finishing and apparel. In the knitting area the company owns multiple knitting units destined to manufacture a broad range of single and double jersey fabrics on Mayer, Fukuhara, Terrot and Vanguard machines. Customers include J.C. Penney, Dockers and Tommy Hilfiger, to name a few.
Reasons for acquiring a stake are the high wages in China and to offset costs. Per capita income in China is now better than USD 6500, where as in Pakistan it amounts to USD 1300. As against some Asian countries such as Vietnam and Bangladesh, Pakistan has a long textile based tradition with production experience.
Shandong Ruyi Science & Technology Group Ltd. engages in rabbit hair spinning, textile and clothing, cotton printing and dyeing, knitting, and real estate businesses. It provides cotton textiles, fibers, worsted woolen piece goods, angora yarns, knitwear, jeans, suits, outer garments, and wool products. The company was founded in 1972 and is based in Jining, China with operations in Europe, America, Japan, and Korea.
It is to be expected that Chinese textile companies will further invest in Pakistan, as soon as the special industrial zones are developed.
ICAC changes at executive director level
At the end of 2013 Terry Townsend retired from his position as executive director of ICAC International Cotton Advisory Committee, after 25 years of service.
During his activities he visited regions such as Victoria Falls and Lubbock, and national capitals such as Paris, cotton centres such as Moundou and even population centres such as Wee Waa. He experienced cultures as diverse as Hindu shrines, Andean music and Liverpool football. He also enjoyed friendship within the worldwide cotton community, and he has been proud to serve an institution existing since 1939.
On January 2, 2014 his successor is José Sette who was chosen by a selection committee composed of diplomats from 21 countries in June 2013. Since then, he has visited with government officials, cotton and textile industry representatives in Austria, Brazil, Colombia, Greece, India Switzerland, Great Britain and the U.S. To ensure a smooth transition he spent the month of December with the ICAC Secretariat in the American capital city.
José Sette served as executive director ad interim of the ICO International Coffee Organisation, a sister organisation to ICAC from November 2010 to November 2011, he was also Head of Operations from November 2007 to December 2012. He has worked as a consultant to trade associations, specialising in international trade matters, and he has worked with state trade associations in Brazil and with coffee exporters. Previously he worked in Washington, D.C. for the Inter-American Development Bank. He has a MBA with major in finance from American University in Washington, D.C. and he speaks English, French, Portuguese and Spanish.
New Sales Agency for G DESIGN in Switzerland
As of January 2014 JL Fashion Agency GmbH will be responsible for the distribution of the premium trouser brand G DESIGN (the brand is owned by German GARDEUR GmbH) in Switzerland. Managing Director Jacqueline Lüthy will represent women’s wear and menswear lines of the high fashion label.
British Professional Clothing Awards
The British Professional Clothing Awards will be hosted on April 1, 2014 at Hilton Birmingham Metropole by Ruth Morris, Uniform Manager for the Rugby Olimpica 2015 (20 international teams are expected). At this occasion the trophies to industry winners across a number of key categories will be bestowed.
Ruth Morris has played an integral part of the design team for the recent London 2012 Olympic Games, which captivated audiences across the globe with the spectacular events.
The upcoming Rugby event will have around 6000 personnel supporting the landmark event in the global Rugby calendar. The Olympic celebration will also entail a live fashion show called “Pro Show Live” where London 2012 Game Makers’ uniforms will be live on stage, giving visitors a close-up on one of the most high profile sporting event uniforms in recent years.
Swiss and India aim to conclude an FTA
Swissmem the umbrella organisation of the Swiss machinery and electro-machinery industry, metal industry, including textile machinery is convinced that a FTA Free Trade Agreement would benefit its members and add to their competiveness. Not so happy are the Swiss pharmaceutical companies if the FTA is concluded without an assurance of their patent protection.
As we know, India is for many exporters the second important market in the machinery business after China. The Swiss annual export volume to India has doubled over the past decade and has reached around CHF one billion, however without a FTA Indian import duties amount to 10 %, and in some cases they are taxed with even 30 %. There are additional import taxes to consider. This is why company are forced to establish production sites in India in order to remain competitive. Also the machinery industry is interested in the protection of intellectual property, however claims that in comparison to other countries, Swiss machinery does not face many violations.
Greenpace fears health risks in Gore-Tex products
On December 13, 2013 Greenpeace mentioned a possible impairment of the room air of the consumer, however failed to deliver a scientific prove for the warning
Greenpeace mentioned a study that resulted in the conclusion that within closed rooms the taken up quantity of FTOH lays far beyond the tolerable value of a daily intake of PFOA, thus there is no health risk even supposing unrealistically that there is a total decomposition of FTOH in PFOA.
Gore-Tex® stated that the company delivers since more than 20 secure products, protecting its users and acting in ecological responsibility, among by carefully choosing suppliers and raw materials, without hampering the durability and life cycle of a product. In addition the company declares that the Greenpeace report does not prove that traces of short-chain DWR or PTFE membranes in a Gore-Tex® jacket will have a significant negative effect on the environment. Greenpeace mentions in this respect PFOA. Gore-Tex adds that there was enormous progress to eliminate PFOA and Gore-Tex® jackets and gloves either do not content or only in minima PFOA well below the global most restricted tolerated limits (Norwegian government will set the limit in June 2014 to 1 my/m2).
The company insists that if all fluorine contenting DWR has to be replaced this would lead to important less functionality and a lower life cycle for man products and users such as mountain climbers, firemen and policemen would no longer be able to count on dependable protection, and the lower life cycle would have a negative effect on the eco-balance. That is why Gore-Tex® is betting rather on exhaust incineration and waste water treatment or the selection of raw materials, thus the company pleas that from this perspective fluorine contenting DWR’s are the right ecological choice, at least for the time being.
Successful seventh edition of EXPOTEXTIL Peru
According to the organisers, the gathering of manufacturers and suppliers for the textile and apparel industry at EXPOTEXTIL Peru (October 24 -27) have exceeded all expectations: 33 countries as exhibitors and 23’548 visitors participated in fashion shows and lectures
Spanish amec amtex has been present for the first time with a booth shared by several member companies (Autimak, Canmartex, Escarré, Masias and Gomplast). Amec amtex is already planning on a more extensive surface and participation at EXPOTEXTIL 2014 in Peru.
Mimaki at Wetec 2014, PSI and Heimtex
The leading manufacturer of wide format inkjet printers will be present At Wetec (February 13 -15, 2014) in Stuttgart, Germany (Booth 8/ A 12)
Mimaki’s focus will be at the booth of 120 m2 on innovative digital printing and cutting solutions, posters, luminous advertising, advertising techniques, vehicle advertising and wide format printing services. Other highlights are JV400 SUV CMYK printer, JV400 LX a latex printer (six colours plus white), UJF-3042 UV-LED flat-bed printer of the product family UJF and CG-SR 3, cutting plotter with improved functions an a contact pressure of 500 g and a cutting speed from 70 to 100 cm/s.
Mimaki was also exhibiting at PSI Düsseldorf , Germany (January 8 – 10, 2014) and was present with UJF-3042 and UJF -6042 flat-bed printers and JV 33 series, the affordable, high performance, roll-to-roll multifunction inkjet printers.
At Heimtex in Frankfurt (January 8 – 11, 2014) Mimake was participating in the Digital Textile Conference, where Mike Horsten, General >Manager Marketing EMEA, Mimaki Eujrope B.V. was presenting a session entitled “How to Make Money by Digitally Producing Textiles” on January 9, 2014.
Swiss November 2013 Exports of textiles, clothing and textile machinery
Total Swiss exports amounted in November 2013 to CHF 18077 million, or nominally -3.1 %.
Textile machinery Exports amounted to 123 million (+18.2 %) and aggregated from January to November 2013 these exports totalled CHF 1104 million (+11.5 %).
Textile, clothing and shoe exports reached in November CHF 265 milllion and from January to November 2013 CHF 28832 (-0.9 %). Clothing and shoe imports amounted in November to CHF 473 million (-3.8 %) and from January to November 2013 these totalled CHF 6193 million (+1.4 %).
Total Swiss exports amounted to CHF 18077 million (-3.1 %) in November and imports totalled CHF 15965 million, resulting in a surplus of CHF 2112 million.
H&M successful in November 2013 and fourth quarter
In local currencies H&M Group sales increased in local currencies in November by 21 % (including VAT). In the fourth quarter (September 1 to November 30) sales increased by 13 % in local currencies, sales in comparable units increased by 3 %. Total sales excluding VAT amounted to SEK 36480 (SEK35502). The total number of stores stood at 3132 (2776).
Lululemon Athletica with good third quarter
The yoga inspired Canadian lululemon athletic increased in the third quarter and against the same quarter 2012 its net revenue, comparable stores sales, gross profit and income from operations
Net revenues for the quarter increased 20 % to CND 379.90 million (CND 316.5 million), comparable store sales increased by 5 % on a constant CND basis and direct to consumer revenue increased 37 % to CND 62.0 million, or 16.3 % (14.3 %) of total revenues. Gross profit was up 17 % to CND 204.6 million, but dropped from 55.4 % to 53.9 % as percentage against the third quarter of 2012. Income from operations picket up 14.6 % to CND 932.3 million, and the net revenue as a percentage of net revenue dropped from 25.5 % to 24.3 %.
The 39 weeks to November 3 shows the following results, net revenue up 21 % top CND 1070.2 million (CND 884.9 million), comparable store sales up 7 % on constant dollar basis. Direct consumer revenue plus 39 % to CND 165.3 million or 15.5 % (13.4 %) of company revenues. Gross profit was up 15 % to CND 561.3 million, and income from operations +6.0 % to CND 237.2 million.
The total number of stores per November 3: 247, in the first quarter 218.
Lectra with new international Advanced Technology in USA
Lectra, the world leader in integrated technology solutions dedicated to industries using soft materials, such as fabrics, leather, technical textiles and composite materials, has recently opened as new IATC International Advanced Technology Centre in Smyrna, Georgia (Greater Atlanta area, USA)
IATC, a foundational resource for delivering advanced technology solutions to North America and Lectra’s Noth American headquarters were both relocated by moving from Marietta to Smyrna.
Roy Shurling, President of Lectra North America commented: “As the economy continues to recover in the region (North America)ö, a new reality has emerged requiring new levels of nimbleness and flexibility. Fashion and manufacturing companies are in need of the latest technology to strengthen their competitive advantage in the market place. The IATC spotlights Lectra’s innovative technology and provides a unique environment for customers. Visitors can discover and interact with our full range of solutions, experience our world-class services, and tap in the expertise of Lectra’s team”.
The IATC features showrooms for the latest developments in software and advanced machinery, interactive training rooms and an international call centre. The new location caters to companies throughout North America, from Canada to the Unites States and Mexico, in every industry Lectra serves, including fashion, automotive and furniture. The Lectra facility allows executives and industry professionals to explore the latest technological innovations dedicated to the design, development and manufacturing of their products, and to perform cutting tests under their own specific production conditions using the most complex materials.
Lectra disposes now of three IATC’s, the other two are located in Bordeaux (F) and Shanghai (PRC). The company develops the most advanced specialised software and cutting systems, and provides associated services to a broad array of markets, including fashion (apparel, accessories, footwear), automotive (car seats and interiors, airbags), furniture, as well as a wide variety of other market sectors, such as aeronautical and marine industries, wind power and personal protective equipment. The company serves 23000 customers in more than 100 countries with 1350 employees and 2012 revenues of USD 256 million.