News and Column

According to provisional figures released by China’s General Administration of Customs, the nation’s exports of textiles and apparel in August 2019 decreased by 4.6% compared to the same month of last year to US$25.71 billion, which is the first decrease in six months since February 2019.

August exports of textiles declined by 2.4% to US$10.01 billion, and those of apparel fell 5.9% to US$15.70 billion.

Textile and apparel exports during January-August 2019 decreased by 2.0% year-on-year to US$177.44 billion: textiles, US$79.40 billion (up 1.0%) and apparel, US$98.04 billion (down 4.3%).

Source:asiantex.net  *External site

It’s well-known that the astonishing success of China’s economy over the past decade has sent wages soaring, and made it difficult for the country’s textile manufacturers to find and retain trained machine operators, while operating in a highly competitive market where optimized production and full resource efficiency are of paramount importance.

In direct response to this situation, A. Monforts Textilmaschinen GmbH & Co. KG has introduced a range of new Industry 4.0 technologies aimed at simplifying machine operation, while providing easy access to all data and instant or remote assistance.

At the forthcoming Shanghaitex 2019 textile machinery exhibition, which will take place from November 25th to 28th in Shanghai, Monforts specialists will be at stand A10 in Hall W, and look forward to discussing the company’s latest developments in this area with valued Chinese customers.

They include the latest Qualitex full touch panel control system, with its digital twinning capability and Smart Check and Smart Support apps, reinforced by the comprehensive Monforts Smart Sensor machine monitoring program.

“On the very latest Monforts machines, our Smart Sensor technologies are controlling selected processing parameter and component, making it possible to access comprehensive technical machine data from any location using the Smart Support and Smart Check apps,” explains Monforts Vice-President Klaus Heinrichs. “The data is virtually mapped in the cloud in real time and provides an instant status overview of a machine’s performance.”

This, he adds, allows for vastly simplified and targeted analysis for both controlled planning and production, and insights harnessed from the data can subsequently be used to further optimize the production process.

“At the same time, potential sources of error can be remotely anticipated and eliminated to considerably minimize downtime, while the digital twin capability provides information on the individual wear parts of a system,” says Heinrichs. “As a result, operators can now see how long a part will last and when maintenance or replacement is necessary. Direct access to the integrated Monforts webshop then allows users to order spares at the press of the button whenever they are required.”

This full digital control package is being made available for all Monforts machine ranges and makes operation smarter, and at the same time, considerably simpler.

Monforts will also be providing full details of its new CYD continuous yarn dyeing system, which is based on the Econtrol technique ? the most effective and established dyeing process for denim fabrics that is now being applied for yarn dyeing.

Econtrol is a pad-dry process employed in Monforts continuous dyeing, in which the reactive dyestuff is fixed to the cellulosic fibers during drying.

Source:asiantex.net  *External site

Apparel Desk :Denim is set to get a boost as demand for athleisure clothing seems to have peaked. Now, companies are looking for newer options and resurrection of the good old jeans is most likely. For generations, no other clothing item represented the US better than jeans. However, the introduction of athleisure by Lululemon in 2007 turned the tide against denim as comfortable clothing gained popularity. Millennials, who became a bigger consumer force, emulated younger icons like Taylor Swift and Kim Kardashian by adopting the new athleisure look. During this period, sale of jeans in the US declined by 11 per cent while overall apparel sales rose 10 percent.

However, now with the return of Levi Strauss to the public market, the tide seems to be turning in favour of denim again. Levi’s IPO launched in March 2019 was priced above expectations amid heavy demand. Even today, the brand’s market value is high and remains unlike other tech IPOs.

Euromonitor projects US jeans revenue will grow by 5 per cent to $17.5 billion by 2023, with global marketgrowing by 11 per cent to $111.6 billion. While there is a huge scope for the growth of athleisure, momentum may be shifting towards denim in the fashion industry. Denim brands Lee and Wrangler jeans are likely to make a comeback after their spinoff last month from VF Corp into the newly listed Kontoor Brands. The spinoff gives Kontoor a leadership team that’s quicker to adapt to trends and more likely to experiment.

Emergence of new denim styles

As Robert Burke, CEO, Robert Burke Associations points out there are clear signs of a renewed for denim. However, consumers are not willing to wear the traditionally uncomfortable or restricting pair of jeans. They are adopting new dressing styles like pairing their denim with blazers.

The Euromonitor also predicts the US jeans revenue will grow by 5 per cent to $17.5 billion by 2023. Chip Bergh, CEO, Levi Strauss CEO terms the rise of athleisure in the fashion industry as being “throwdown moment,” which inspired brands to make more comfortable jeans styles.

New fabrics being adopted

Their efforts are bearing fruit as after years of stagnation, denim brands are offering innovative fabrics that appeal more to shoppers used to the coziness of leggings. For instance, American Eagle is introducing more comfortable denim known as the American Eagle Ne(X)t level jeans, which provides a 360-degree stretch that lifts, shapes, supports and moves with you in every direction.

Besides natural, synthetic fibers like spandex adding to the comfort of the jeans making them more flexible, comfortable and durable American Eagle’s online store even lets shoppers search for jeans by the level of stretch. Levi Strauss has attracted more women by investing in stretch fabrics as well. Ultimately, will established denim brands like Calvin Klein and Tommy Hilfiger survive the athleisure storm or will the skinny jeans go completely out of favor, remains to be seen.

Source:The Apparel News  *Extenal site

Apparel Desk :The global luxury apparel market is expanding at a CAGR of 13.2 percent.

Luxury apparel is a symbol of class and only people with a good financial background can afford them. The global market for luxury apparel is growing due to an increase in disposable incomes, which further leads to a rise in purchasing capacity of consumers. The young generation is propelling the market for luxury apparel. Another factor envisioned to boost demand is the emergence of online shopping services. It is easier to do shopping online instead of having to go places and try various outfits. The easy return facility has further boosted the market and attracted more prospective consumers.

Digital marketing advertises the benefits of online shopping and inculcates a classy taste of fashion among people.

The global luxury apparel market is dominated by the Asia Pacific. The market in Asia Pacific is witnessing rapid growth due to the rise in disposable incomes, along with changes in lifestyles and improved standard of living especially in the emerging nations of China and India.

Europe, on the other hand, has already attained maturity because of the presence of many luxury brands that have been doing business for the past few decades.

Source:The Apparel News  *Extenal site

Chinese textile and garment industry owners are now focusing to Bangladesh to shift their factories after heavily investing in neighbouring Vietnam and Cambodia in the last two decades.

Many Chinese garment makers want to set up factories under joint venture in Bangladesh. They find Bangladesh as a competitive destination to relocate plants amid raging US-China trade war and the rising cost in the world’s second largest economy. The reasons for the change in focus include a lack of skilled workforce in Chinese textile and garment industry, rising cost of production, shifting industrial base to industries such as IT and over-investment in Vietnam and Cambodia where labour costs are lower.

“Now they are trying to shift the sunset industries to Bangladesh and Myanmar,” said Faisal Samad, vice-president of the Bangladesh Garment Manufacturers and Exporters Association.

Samad met with some entrepreneurs of Hong Kong-based Chinese Manufacturers’ Association during their visit to Dhaka from May 22 to May 26, this year. The entrepreneurs came to Bangladesh to explore investment opportunities.

“Bangladesh is still a competitive place compared to China, Vietnam and Cambodia for setting up industries because of lower cost of production, trade privileges granted in major markets such as the EU and China,” he said. “They are interested to set up factories in fabrics, garment, printing and dyeing,” Samad said.

So far, Bangladesh hasn’t allowed foreign investment in basic apparels, limiting their presence in high-end and value-added textile and garment items.

A Chinese garment manufacturer, Robert Lok, managing director of Merit Tat International Ltd, said he was looking for potential business partner in Bangladesh to make fresh order for his brand. He was part of the Hong Kong delegation.

“I have seen very young and energetic labour force in Bangladesh in the readymade garment sector. Their skill and the quality of work is really world class,” he told.

He believes that his business will be viable if he manufactures in Bangladesh to export to the US and other countries.

“If I manufacture here, the price will be cheaper than in China,” he said, adding that the Chinese garment industry might be affected by the ongoing trade war.

Lok plans to make fresh order with potential garment manufacturers in Bangladesh before deciding to relocate his factory.

“Of course, I will tie up in joint venture with Bangladeshi partners in the future,” the manufacturer said, adding that some local garment giants have shown interest to team up with him to set up factories. According to Lok, Merit Tat International has office and owns outlets in New York and Western Europe.

Lok said there is huge population in Bangladesh and it is advantageous for the sector to manage workers.

Moreover, the wage of the workers is lower compared to Vietnam and Cambodia.

Another Hong Kong-based Chinese garment maker Francis Man Piu Cheng said he was impressed with Bangladesh’s garment factories as they have skilled workers and mature management, which will be helpful to relocate his manufacturing plant to Bangladesh.

“I have already made some investment in the garment sector in Cambodia, but there is a lack of mature management there. So, I am thinking of establishing manufacturing plant in Bangladesh with potential partners.”

Cheng, also the chairman of fashion apparel group Wing Tai Asia, talked to three garment manufacturers in Bangladesh and his Bangladeshi counterparts have also shown interest.

He, however, expressed concern about the higher lead time in the garment sector in Bangladesh.

Most garment manufacturers in China are worried about the ongoing US-China trade war, he said.

Source:The Apparel News  *Extenal site

According to provisional statistics released by the China General Administration of Customs, the nation’s exports of textiles and apparel in March 2019 grew by 28.2% over the same month of last year to US$18,181.7 million.

Exports of textiles increased by 35.6% to US$9,524.0, and surpassed exports of apparel (up 20.9% to US$8,657.7 million).

January-March 2019 exports of textiles and apparel decreased by 2.2% to US$56,330.8 million: textiles, US$26,900.7 million (up 3.9%) and apparel, US$29,430.1 million (down 6.5%).

Source:asiantex.net  *Extenal site

The trade conflicts between the United States and China will benefit Bangladesh apparel production and exports. Since China’s exports to the US will plunge and it will lose competitiveness, and the supply chain will be affected, emerging trade relations could offer an opportunity for Bangladesh to increase its export and capture greater space in the global value chain.

In the next two years, overall exports from Bangladesh can fetch an additional $400 million under the escalation of trade conflicts and GDP can grow by 0.19 per cent in the same period.

Of the $400 million additional export earnings, $300 million are expected from the textile and garment sectors. The apparel sector is likely to benefit the most from the trade tariff tension. Leather and leather goods and ICT may also prosper.

Business may relocate to Bangladesh and other Asian countries.

Already for the last few months, new export orders are coming into Bangladesh. For January to November 2018, Bangladesh’s exports to the US market were up by 5.72 per cent. Apparel exports to the US market jumped six per cent in the same period.

Source:The Apparel News  *Extenal site

According to a Japan Textiles Exporters Association report based on Ministry of Finance trade statistics, exports of textiles and apparel in 2018 increased by 3% over the previous year to US$7,819.43 million.

Exports to Vietnam surpassed US$1 billion.

2018 exports of textile fibers rose by 3% to US$834.34 million. Exports increased for acrylic staple fiber, but decreased for rayon and polyester staple fibers.

Yarn exports were up 2% to US$1,040.81 million, of which rayon and polyester filament yarns increased.

Exports of woven and knitted fabrics rose by 1% to US$2,822.25 million, and those of coated fabrics increased by 8% to US$479.36 million.

By destination, exports increased to East Asia (up 3%). Exports to Vietnam rose by 9% to US$1,057.0 million. Exports to Europe, North America and Africa grew by 9%, 8% and 19%, respectively. Meanwhile, exports to West Asia dropped 20% due to stagnant exports of fabrics for Middle East traditional wear. Exports to Central and South America and Oceania were also slow.

Source:asiantex.net  *Extenal site

The U.S. Office of Textiles & Apparel reported that the nation’s imports of textiles and apparel in 2018 increased by 5.88% over the previous year to 68,594.44 million square meters equivalent (MSME). In value, imports rose by 4.97% to US$111,095.39 million.

Apparel imports were up 2.80% to 27,841.58 MSME, and the value grew by 3.38% to US$82,880.76 million

Textile imports rose by 8.08% 40,752.86 MSME with the value growing by 9.96% to US$28,214.63 million.

Textile and apparel imports from China (the largest supplier) increased by 6.72% and 4.85% to 33,808.83 MSME and US$40,583.97 million, respectively. Of this, apparel amounted to 11,670.31 MSME (up 2.75%) valued at US$27,371.07 million (up 1.34%). Textiles totaled 22,138.52 million (up 8.93%) worth US$13,212.89 million (up 12.95%)

Source:asiantex.net  *Extenal site

Apparel Desk: Designers today are equipped with the right mindset and tools to face the rapidly changing manufacturing and retail landscapes. In a panel discussion at Sourcing at Magic in Las Vegas recently, experts set out to further streamline some of the sector’s confusion. The panel titled, “Fashion Design Is All About Tech and Innovation,” moderated by Fashion For Profit President Frances Harder, denim design and fit experts urged designers to use technology to create ways to overcome the denim industry’s biggest hurdles, including sustainability, on-demand manufacturing and performance fabrics.

Growth of the athleisure segment

Fabric innovation is the reason for denim’s comeback from the hit it took from the athleisure and activewear markets in 2014. As Jennifer Lynn Peterson, Designer, Silver Jean Co points out, everyone discovered that athleisure could be fashionable and comfortable at the same time. Jeggings and indigo knit helped the denim industry stay relevant. Denim mills had to develop denim urgently. Stretch denim, however, continued to be a hard sale for men’s brands. As Stefano Aldighieri, President of Another Design Studio 2.0 noted, brands would never even advertise it. They would not tell people it was stretch because otherwise men traditionally would refuse to wear them.

Brands need to focus on macro trends

Peterson feels, denim trends are less about new styles and more about achieving a certain look. Brands are styling jeans on their websites as an entire outfit. They want to beable to visualise themselves wearing it. Whereas fashion trends used to differ from city to city, said Ram Sareen founder of Tukatech, trends spread like wild fire and should be among designers’ least concerns. According to him brands should now consider how segments of the market are changing.

Aldighieri urged brands to extrapolate design concepts lifestyle and cultural shifts. According to him, brands should really look at the macro trends?the things that are really important?then give their own interpretation.

Consumers warm up to sustainable denim

According to Silver Jeans Co, consumers are warming up to sustainability. The technology required to be sustainable is becoming affordable. The company is planning to launch machinery that streamlines the process that requires fewer machines, no pumice and requires less water.Aldighieri fears sustainability will be lumped with other industry trends. Sareen, on the other hand, advises brands to take a proactive approach to sustainability through on-demand manufacturing. According to him, the biggest cause of concern is the landfills of unsold garments. To eliminate excess, brands require better technologies to make only what they need.

Source:The Apparel News  *Extenal site

According to Japanese apparel production statistics, released from the Ministry of Economy, Trade and Industry (METI), 2018 production decreased by 2.3% from the previous year to 96.22 million units, which is below 100 million units for the second consecutive year.

In regard to knitwear production, outerwear decreased by 4.2% to 23.23 million units, while underwear, foundation garments and nightwear slightly rose by 0.6% to 35.33 million units.

The production of woven outerwear declined by 3.7% to 32.64 million units.

As a result of growing imports, Japanese apparel production has been decreasing after reaching 1,057 million units in 1991.

Source:asiantex.net  *Extenal site

According to the China General Administration of Customs, the nation’s exports of textiles and apparel in January 2019 increased by 9.2% over the same month of last year to US$25,062.8 million. Although exports of both textiles and apparel increased, the increase may be the result of a rush of production before the Chinese New Year.

January textile exports grew by 14.6% to US$11,412.0 million, and those of apparel rose by 5.1% to US$13,650.8 million. Apparel exports rose for the first time in three months since October 2018.

Source:asiantex.net  *Extenal site

According to the Japan Chain Stores Association (58 firms, 10,447 stores), same-store sales of apparel in 2018 decreased by 5.3% compared to the previous year to 1,009,400 million yen, thus decreasing for 27 consecutive years.

Total sales decreased by 0.2% to 12,988,305 million yen, and decreased for the third straight year.

Unfavorable weather had a greater effect on apparel sales than in 2017. The decrease was greater than the 2.3% decline in 2017, and even in every quarter of the year, sales decreased for all apparel items with the exception of the 0.4% increase for other garments during January-March 2018.

Sales of household items also decreased due to unfavorable weather, but sales of furniture and interior goods including bedding, rugs and carpets as well as curtains increased by 1.7%.

Apparel sales in December 2018 decreased by 4.7% compared to the same month of the previous year to 96,933 million yen, as the temperature was higher during the first half of the month. Sales of household goods increased by 1.0% to 261,958 million yen, of which furniture and interior goods were up 3.8%. Total sales decreased by 0.7% to 1,294,133 million yen.

Source:asiantex.net  *Extenal site

According to China’s General Administration of Customs, the nation’s exports of textiles and apparel in 2018 increased by 3.5% over the previous year to US$276.73 billion (provisional), thus increasing for the second consecutive year.

Exports of textiles grew by 8.1% to US$119.10 billion, and also grew for two straight years. 2018 textile exports reached an all-time high, surpassing the previous record of US$112.13 billion made in 2014. The growth was 3.3 percentage points greater than the 4.8% growth in 2017.

In reflection of a favorable apparel market worldwide, apparel exports slightly rose by 0.3% to US$157.63 billion, thus rising for the first time in four years since 2014.

Meanwhile, December 2018 exports of textiles and apparel decreased by 3.6% compared to the same month of 2017 to US$23.11 billion: textiles, US$9.88 billion (down 2.6%) and apparel, US$13.23 billion (down 4.4%).

Source:asiantex.net  *Extenal site

As the US trade dispute with China gains momentum, experts analyse which countries would benefit most from the dispute. Asian countries like Taiwan, Thailand and Malaysia are luring electronics and computer companies to their shores while Cambodia, Philippines and Bangladesh are seeking more opportunities to increase their market share in apparel and footwear segment. Similarly, Thailand and Vietnam plan to explore the global household consumer goods market like washing machines and refrigerators.

Fewer opportunities outside China
A study by American Chamber of Commerce South China (AmCham South China) published on October 29, 2018, surveyed 219 companies for the impact of US and China tariffs. Less than one per cent indicated any plans to relocate their manufacturing to North America. Similarly in a joint study of 430 firms by AmCham China and AmCham Shanghai in September 2019, only 6 per cent respondents indicated any plans to relocate production to the US.
There are limitations on how much production can be moved out of China. The country, over the years, has nurtured a highly trained, skilled and disciplined workforce. Its infrastructure, roads, ports and integrated logistical support is best in terms of its ability to handle the volume of goods produced. Furthermore, its workforce is more than double that of all Southeast Asia combined. So, the limitations of other counties to takeover China’s capacity nullify the cost benefits they offer of moving production out of China.

Trade disputes impact on Asian countries
A recently released Purchasing Managers Index (PMI) by various Asian countries suggests which countries could be benefiting from the US-China tradedispute at the moment. The monthly Purchasing Managers Index (PMI) of the Singapore Institute of Purchasing and Materials Management (SIPMM) published on November 2 was below the 52.2 forecast of economists polled by Bloomberg.

Similarly, Indonesia’s PMI last month declined to 50.5 from 50.7 the previous month, Malaysia's was lower at 49.2 compared with 51.5 a month earlier, Taiwan, 48.7 from 50.8, Thailand 48.9 from 50, Hong Kong 47.9 from 48.5, South Korea 51.0 from 51.3. China saw a minute increase from 50.0 the prior month to 50.1 last month and in the Philippines the same 0.1 point increase to 52.0.
Vietnam saw largest gain among major Asian economies reaching 53.9 from 51.3 in the previous month. This is not surprising considering Vietnam has been consistently identified by certain US companies as the preferred location in Southeast Asia.

Advantage India
India gained 0.9 points from a month ago to 53. If it puts its strategies in place, India might play a major part in the re-shaped global supply chain. A study by India's Department of Commerce recently identified about 100 products where India can replace US exports to China due to higher import tariffs imposed by China on US farm products. These include corn, grain sorghum, oranges, cotton, almonds and durum wheat.
Another report by the Confederation of Indian Industry (CII) concluded with concerted effort, India can increase its exports of products like pumps, parts of taps, parts for the defence and aerospace industry, vehicles, automobile parts and engineering goods among others. At the moment, this is still an aspiration. These figures indicate that in general no one gains from the trade gain which will have a negative impact not only in the US and China but also on various industries, companies and countries.

Source:The Apparel News  *Extenal site

The Union government has announced revised duty drawback rates. These All Industry Rates of Duty Drawback re-imburse the incidence of duties of customs on inputs and remnant central excise duty on specified petroleum products used for generation captive power for manufacture or processing of export goods. The drawback rates for cotton textiles such has yarn, fabrics and made ups have been increased.

Welcoming the announcement, KV Srinivasan, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL) said the revised drawback rates will lead to increase in the exports of cotton textiles. There is a significant increase in the drawback rates for cotton made ups which will encourage export of value added products like home textiles. Further, the removal of drawback caps in the case of those export products where the drawback rates are less than 2 per cent will benefit the cotton textiles exporters.

Source:The Apparel News  *Extenal site

Although the fashion industry has kept pace with changing consumer demands, it fails to cater to their most important need that of altering consumption patterns to ensure the survival of the planet. The industry produces 20 per cent of global wastewater and 10 per cent of global carbon emissions with textile dyeing being the second largest polluter of water globally. If this situation persists, by 2050 the fashion industry will have consumed almost a quarter of the world’s carbon budget.
However, consumers are demanding change and the fashion world is responding. A-listers, like Duchess Meghan Markle are discarding traditional choices of clothing and designers and dumping the take-make-waste model. Fashion retailers are adopting initiatives to reduce fashion’s negative impact on the environment. For example, last year, Britain’s Stella McCartney teamed up with the Ellen MacArthur Foundation to launch a report on redesigning fashion’s future.

Across the United Nations, agencies are working to make fashion more sustainable, from the Food and Agricultural Organization protecting arable land, to the Ethical Fashion Initiative set up by the International Trade Centre to the work of UN Environment in fostering sustainable manufacturing practices.

Shoes from algae, recycled plastic and gum
Entrepreneurs are designing the fashion of the future. For instance Spanish footwear company Ecoalf is makingshoes from algae and recycled plastic as a part of its Upcycling the Oceans collection. The company collects ocean plastics from 33 ports and turns the trash into shoes, clothing and bags.
Similarly, Amsterdam-based GumDrop turns gum into a new kind of rubber, Gum-tec, which is then used to make shoes in collaboration with marketing group I Amsterdam and fashion company Explicit.

Fashion from waste materials
Outdoor gear retailer Patagonia alongwith Polartec, a Massachusetts-based textile designer produces fleece jackets using polyester from recycled bottles while Gothenburg-based Nudie Jeans makes jeans from organic cotton. Cambodia-based Tonle uses surplus fabric from mass clothing manufacturers to create zero-waste fashion collections.
In the Netherlands, Wintervacht turns blankets and curtains into coats and jackets. While San Francisco- and Bali-based Indosole turns discarded tyres in Indonesia into shoes, sandals and flip-flops, while Swiss firm Freitag upcycles tarpaulins, seat belts and bicycle inner tubes to make their bags and backpacks.

A zero-waste fashion model
Creating a zero-waste fashion model is the order of the day for many etailers. Canada-based Novel Supply is developing a take-back programme to find alternative ways to use garments at the end of their life. Lifestyle brand and jeans manufacturer Guess is teaming up with i:Collect, which collects, sorts and recycles clothes and footwear worldwide, to launch a wardrobe recycling programme in the US. Under this programme, wearable items will be recycled as secondhand goods, while unwearable items will be turned into new products like cleaning cloths or made into fibres for products like insulation.

Focusing on rental market
As recycling is an energy intensive process and does not address our throwaway culture, the rental market offers a viable alternative. However, for the rental model to be successful, companies need to offer sufficient choice of brands and styles that would engage consumers and tempt them away from outright purchase. Also, the rental service needs to be smooth and faultless.
Some pioneers of the rental market include: Dutch firm Mud Jeans, which leases organic jeans that can be kept, swapped or returned, Rent the Runway, Girl Meets Dress and YCloset in China.

Source:The Apparel News  *Extenal site

According to China’s General Administration of Customs, the nation’s exports of textiles and apparel amounted to US$23.05 billion (provisional) in November 2018, remaining flat compared to the same month of last year.

Exports of textiles rose by 3.2% to US$10.31 billion, thus rising for the eighth consecutive month. On the other hand, apparel exports decreased by 0.3% to US$12.74 billion, decreasing for the first time in six months since May.

January-November 2018 exports of textiles and apparel grew by 3.8% year-on-year to US$253.96 billion: textiles, US$109.30 billion (up 9.3%) and apparel, US$144.66 billion (up 0.9%).

Source:asiantex.net  *Extenal site

Apparel Report: A report on the global knitwear market for 2016-26 predicts a rise in demand for knitwear products across the globe due to increasing use of e-commerce. There is also an increase in global online sales of knitwear products, which are part of the fashion and apparel industry. The global e-commerce business of fashion and apparel is expected to increase from $408 billion in 2017 to over $706 billion in 2022, rising at a CAGR of 11.6 per cent.

Online sales boosts market size
Online sales of knitwear products is increasing due to growing penetration of e-commerce in emerging economies like Brazil, Russia, India, China, and South Africa (BRICS). Increasing penetration of smartphones across emerging economies, rise in middle class population with increasing discretionary income, and innovative and advanced e-commerce technologies are also driving demand for knitwear products. Online knitwear sales are also increasing due to a rise in average revenue per user (ARPU) in e-commerce knitwear products compared to ARPU of offline knitwear product sale. The ARPU of e-commerce clothing market is expected to increase from $270 in 2018 to $301 in 2022. Knitwear products are a major segment of the fashion industry.

The e-commerce in fashion industry in the US and Europe are expected to expand at a CAGR of 8.8 per cent and 8.7 per cent between 2017 and 2022 respectively; on the other hand, e-commerce in fashion industry in China is expected to grow in double digits at a CAGR of 14.1 per cent between 2017 and 2022. Thus, rising penetration of e-commerce in knitwear sales is boosting the market size of knitwear products across the world.

Product, fabrics, distribution channels drive up sales
The study segments the global knitwear market according to product and material types, application, consumergroup and distribution channel. Products are classified as: innerwear, t-shirts & shirts, sweaters & jackets, sweatshirts & hoodies, shorts & trousers etc. Based on fabric, the market is classified into natural, synthetic, and blended. On the basis of application, the market is segmented into outerwear, innerwear, sportswear and others. Based on consumer group, the market is segmented into men, women, and kids. Further on the basis of distribution channel, the market is segmented into online and offline.

The analysis of these segments is based on present and forecasted global demand for knitwear products and prevailing and future trends across North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Companies dominating the market
The report includes a SWOT (Strength, Weakness, Opportunity, and Threat) analysis of the market, Porter’s Five Force analysis of the market, ecosystem analysis, key macroeconomic indicators influencing the market and raw material analysis of the knitwear industry.

The report highlights major companies operating in the global knitwear market including Adidas, Gap, Gildan Activewear, Hackett, Abercrombie & Fitch, Loro Piana S.P.A., Marks & Spencer, Nike, among others.

Source:The Apparel News  *Extenal site

Special Correspondent: A new market report by Transparency Market Research titled ‘Knitwear Market ? Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-26 reveals the global knitwear market is expected to expand at a CAGR of 5.3 per cent from 2018 to 2026 reaching $817,402.7 million by 2026. In terms of volume, the market is expected to expand at a CAGR of 5.0 per cent from 2018 to 2026 reach 26,208 million units in 2026. The market share of Asia Pacific in the global knitwear market is expected to increase during the forecast period.

Preference for low-cost Asia Pacific markets
Global knitwear brands such as Gap and Abercrombie & Fitch and major activewear brands such as Adidas AG and Nike continue to focus on research and development, design, logistics marketing and branding, and service to improve their position in the market. These brands outsource their manufacturing to low-cost Asia Pacific countries such as China, Bangladesh, and India. Adidas AG manufactured only 2 per cent of its apparels in US and only one per cent in Europe in 2017; outsourcing almost 97.0 per cent production to Asia Pacific.
Similarly, Nike manufactures all its apparels through independent contract vendors. The apparel contract factories in China,Vietnam, and Thailand manufactured 26.0 per cent, 18.0 per cent, and 10 per cent, respectively of the company’s total apparel production. China, Bangladesh, India, Pakistan, and other South Asian and East Asian countries are major exporters of knitwear products across the globe.
Although, knitwear is still manufactured in Europe, its quantity has declined. The unit cost to manufacture knitwear is high in the UK due to high wages, yet British designers prefer to manufacture locally due to short lead time and flexibility in minimum order quantity.

Rising demand for branded knitwear
North America on the other hand, imports almost all of its knitwear products from Asia Pacific. Although R&D and designing of these is majorly done outside Asia Pacific, manufacturing is mostly done in China, India, Bangladesh, and Vietnam. The knitwear market in India is also rising due to a growth in the number of organised knitwear retailers selling branded knitwear products. Demand for branded knitwear is also rising in the Middle East. With approximately 62.0 per cent of its population being young and middle-aged, the region imports knitwear products worth US$ 3.5 billion annually. Knitwear exporters such as Bangladesh export knitwear to the UAE to increase its knitwear revenue. Cotton knitwear products are in demand in South American countries. There is growing demand for cotton knitwear products in Brazil and other South American countries. In 2016-17, Brazil imported approximately $11.47 million of T-shirts, singlets and other vests made of cotton. Almost half of the knitwear imports in Brazil are from China.

Source:The Apparel News  *Extenal site

According to the Japan Department Stores Association, October 2018 same-store sales of apparel at member stores across the nation (79 firms, 219 stores) decreased by 1.0% compared to the same month of last year to 156,479 million yen. It was the fourth consecutive month that apparel sales posted a decrease.

Sales of men’s and children’s wear decreased for four straight months: men’s wear, 35,203 million yen (down 3.2%) and children’s wear, 9,824 million yen (down 7.0%).

Meanwhile, sales of women’s wear increased by 0.5% to 101,107 million yen, thus increasing for the first time in four months.

Total sales including non-apparel items increased by 1.6% to 471,757 million yen, also the first increase in four months.

Source:asiantex.net  *Extenal site

China’s exports of fabrics to Africa are growing at a rapid rate.

Mainland Chinese garment makers are extending their operations to Africa and building mills one after another to make good use of the abundant and cheap labor force for exports to Europe and the U.S. However, the makers are facing difficulties in procuring materials locally.

According to the China Chamber of Commerce for Import and Export of Textile and Apparel, 2017 fabric exports to Africa increased by 17.9% in volume and 13.1% in value over the previous year to 8,134 million meters worth US$6,769 million. In terms of volume, the scale is about 70% of exports to ASEAN (the largest market for Chinese-made fabrics). The unit price is 83 U.S. cents per meter, which is about 24% lower than the average unit price of US$1.23.

By country, exports to Nigeria were the largest: 1,828 million meters (up 77.5%) valued at US$1,290 million (up 55.3%). As a result, Nigeria came to rank among the top ten destinations in China’s fabric exports.

Source:asiantex.net  *Extenal site

According to statistics compiled by the Japan Textile Machinery Association, the nation’s production, exports and imports of textile machinery increased in 2017.

Production increased by 17.6% over the previous year to 235,049 million yen. Especially, the production of fiber-making machinery climbed 223% to 18,154 million yen.

Exports grew by 19.4% to 256,024 million yen, and imports were up 25.5% to 43,823 million yen.

The production of looms decreased by 10.9% to 44,247 million yen, and their exports declined by 16.3% to 45,005 million yen. Loom imports were up 6.1% to 2,015 million yen.

The production and exports of knitting machines grew by 14.4% and 29.8% to 98,879 million yen and 80,507 million yen, respectively.

Source:asiantex.net  *External site

According to statistics compiled by the Japan Textile Machinery Association, the nation’s production, exports and imports of textile machinery increased in 2017.

Production increased by 17.6% over the previous year to 235,049 million yen. Especially, the production of fiber-making machinery climbed 223% to 18,154 million yen.

Exports grew by 19.4% to 256,024 million yen, and imports were up 25.5% to 43,823 million yen.

The production of looms decreased by 10.9% to 44,247 million yen, and their exports declined by 16.3% to 45,005 million yen. Loom imports were up 6.1% to 2,015 million yen.

The production and exports of knitting machines grew by 14.4% and 29.8% to 98,879 million yen and 80,507 million yen, respectively.

Source:asiantex.net  *External site

According to production statistics compiled by the Japanese Ministry of Economy, Trade and Industry (METI), the nation’s production of apparel in 2017 decreased by 8.1% compared to the previous year to 98.40 million units, thus decreasing below the 100-million-unit level for the first time since the Ministry began taking statistics.

Knitted outerwear production declined by 6.9% to 24.42 million units, and that of knitted innerwear (underwear, foundation garments and nightwear) was down 6.7% to 35.07 million units. Woven outerwear production decreased by 5.6% to 33.66 million units, while that of woven innerwear dropped 31.5% to 5.25 million units.

The number of industrial sewing machines installed in the industry numbered 56,603 last December, with a monthly capacity of producing 22.03 million units of garments.

Source:asiantex.net  *External site