Textination Newsline

• Increase from 132 to 155 transactions - transaction value increases eightfold to 12.4 billion US dollars
• Number of Chinese acquisitions in Germany rises from 28 to 35
• UK most popular investment destination for Chinese companies followed by Germany

After the pandemic-related decline in Chinese company acquisitions in Europe in 2020, the number of transactions increased again in 2021: from 132 to 155. The transaction volume also increased: The value of investments and acquisitions has increased more than eightfold from $1.5 billion to $12.4 billion.

Chinese investors also appeared more frequently again in Germany: After only 28 transactions by Chinese companies were counted in 2020, there were 35 of such investments or acquisitions in 2021. The investment volume rose from USD 0.4 billion to USD 2.0 billion. This figure does not include venture capital investments in German startups totaling USD 1.9 billion in 2021, in which Chinese companies were active as part of international investor groups.

These are the findings of a study by the audit and consulting firm EY, which examines investments by Chinese companies in Germany and Europe.

"Chinese companies remain cautious about investing in Europe overall," observes Yi Sun, partner and head of China Business Services in the Europe West region at EY. "One contributing factor is still the pandemic, which continued to cause disruptions in 2021 - partly because of mitigation measures such as travel restrictions, strict quarantine rules for people traveling to China from abroad, and lockdowns both in Europe and in China itself. Most Chinese companies that have already acquired companies abroad have been more concerned with restructuring in Europe in recent years rather than expanding further - especially in the automotive supply and machinery sectors."

According to Sun, the now high hurdles for foreign investments, especially in certain critical industries, as well as increasing competition from financial investors with strong capital, also had a dampening effect. "Purchase prices on the M&A market have risen sharply recently - in some cases, the Chinese interested parties didn't want to go along with that. Listed Chinese companies in particular fear putting pressure on their own share price with expensive acquisitions," Sun said. "In addition, some of the potential takeover candidates own production facilities or R&D centers in the US. In such cases, they may fear rejection by the Committee on Foreign Investment in the U.S. (CFIUS) - and potential Chinese bidders may not even be invited."

Declining interest in industrial companies
Traditional industrial companies continue to account for the majority of deals - especially in Germany: 12 of the 35 transactions in Germany and 30 of the 155 transactions in Europe took place in the industrial sector.

However, their number is declining: In 2020, 36 industrial transactions were counted across Europe. "Chinese investors are still interested in European automotive suppliers or mechanical engineering companies - but now more in the subsectors of electromobility, autonomous driving and high-tech materials," says Sun.

However, Yi Sun identifies a significant increase in interest elsewhere: "Chinese private equity funds and venture capitalists are becoming increasingly active. In Germany in particular, there were some very large investments in startups last year in which Chinese investors were significantly involved. In addition to German engineering skills, e-commerce expertise is increasingly in demand."

High tech/software companies accounted for 27 transactions across Europe last year (previous year: 20). "We see an increased interest in game developers and software programmers, for example. Especially the most active Chinese investor last year, Tencent, has recently become heavily involved in this segment," observes Sun.

The number of acquisitions and investments in the healthcare sector also increased: from 16 to 26 transactions. "The healthcare sector - whether pharma, biotech or medical technology - is increasingly becoming one of the most important target sectors for Chinese companies because there is a lot of pent-up demand in this sector in China, especially in research and development."

Great Britain replaces Germany as top destination in Europe
Most transactions were recorded in the UK last year. With 36 acquisitions and investments, the UK is just ahead of Germany (35 transactions) and well ahead of the third-placed Netherlands (13).

In the previous year, the order at the top was reversed: in 2020, Germany with 28 transactions was ahead of the UK with 21 deals.

"To the extent that the interest of Chinese investors is moving away from classic industrial companies toward technology, software and media companies, the target market of Great Britain is gaining in importance," says Sun. However, she is convinced that Germany remains an attractive market for Chinese investors: "Many Chinese companies have had good experiences with their investments in Germany in particular. In addition, there are now close and resilient ties between China and Germany at many levels. We will see more Chinese transactions in Germany in the coming months - especially when the impact of the pandemic on the economy subsides," Sun expects.

The largest investment in Europe last year was the sale of Philips' home appliances division to Hong Kong-based investment firm Hillhouse Capital for $4.4 billion.

The second largest transaction was Tencent's acquisition of the British developer studio Sumo Digital for US$1.1 billion, followed by China International Marine Containers' takeover of the Danish reefer container manufacturer Maersk Container Industry for also US$1.1 billion.

Study Design:

• Sources: EY research, Thomson ONE, Merger Market, communications from the companies or consulting firms and law firms involved.
• Acquisitions and investments originating from companies headquartered in China and Hong Kong or their subsidiaries were examined.
• The target companies are headquartered in Europe and are operationally active.
• Pure real estate transactions were not included.
• The analysis also included transactions that had not yet been completed as of the reporting date of Feb. 17, 2022

Increasingly, Chinese investors are also participating in venture capital financing rounds, mostly as part of investor groups. In these cases, it is often not possible to determine the amount provided by the Chinese investor. Therefore, these transactions are included in the number of transactions but not in the total values.

Air filters have been discussed so often in recent days in the fight against the pandemic. With filter material made of nonwoven fabric, they block the way back into rooms for aerosols containing viruses. But how can these devices not only protect health, but also be operated with filter material that is as environmentally friendly as possible?

Under clearly defined conditions, the bioplastic polylactide (PLA), also known as polylactic acid, is suited for this purpose. This can be deduced from results obtained by researchers from the Zuse community in the recently completed "BioFilter" research project. The key question for this and other potential applications of biofilters is: How do the special properties of PLA affect the filter performance and durability? After all, PLA can have practical disadvantages compared to its fossil-based competitors. Its material tends to be brittle and it doesn't particularly like high temperatures beyond 60 degrees Celsius. As a biogenic material, polylactic acid is also potentially more susceptible to abrasion and organic degradation processes. This can play an even greater role in the use of filters, e.g. in sewage treatment facilities, than in air filters. Industrial customers, however, naturally want a durable, reliable product.

From monofilament to nonwoven
Against this background, the researchers studied the PLA properties in order to test nonwovens for biofilters on this basis. The German Textile Research Center North-West (German Textile Research Center North-West - DTNW) and the Saxon Textile Research Institute (STFI), where the nonwovens were produced, were involved. Granules from various commercially available manufacturers were used. However, the research did not start with nonwovens, in which the fibers are deposited close together in different layers, but with so-called monofilaments, i.e. fibers made of PLA that are comparable to threads. DTNW and STFI initially carried out tests on these monofilaments, e.g. in a climate chamber for aging and durability.

As can be seen in the picture, the monofilaments became brittle after only two weeks at higher temperatures from 70 degrees Celsius, as the DTNW authors recently reported in the Journal Applied Polymer Materials. Under normalized conditions, however, the monofilaments showed no measurable reduction in stability even after almost three years, and the PLA nonwovens were in no way inferior to their fossil-based counterparts in terms of filter performance. "In my opinion, the focus for the use of PLA as a filter material will be on applications where relatively low temperatures are present, with which PLA copes very well," says DTNW scientist Christina Schippers.

Besides temperature and humidity consider other factors
For the researchers, however, the project, which was funded by the German Federal Ministry for Economic Affairs and Energy, was not just about the suitability of polylactide for air filters, but also for other applications, such as filtering water. In addition, the research revealed that when evaluating filter media made from bio-based and biodegradable nonwovens, it is important to consider other influencing factors, such as mechanical loads caused by air currents, in addition to temperature and humidity. "The innovative core of the project was to evaluate the possibilities and application limits of PLA nonwovens as filter media with sufficient mechanical properties and long-term stability," says project leader Dr. Larisa Tsarkova. Like her colleagues at STFI, DTNW is involved in the Zuse Community's Bioeconomy Cluster, in which researchers from nonprofit institutes cooperate under the guiding principle of "Researching with Nature." "For us, the bioeconomy is a top cross-industry topic that connects numerous institutes of the Zuse Community and is lived through collaborations such as with the 'Bio-Filter'," explains the future STFI managing director Dr. Heike Illing-Günther.

Cooperation in the Bioeconomy Cluster
With the results obtained from the "Bio-Filter" project, DTNW and STFI now want to continue working in order to be able to make derivations for clearly described areas of application for PLA nonwoven filters in the future. These possible fields of application extend far beyond room air filters and thus beyond the pandemic. For example, the water-repellent property of PLA is potentially interesting for filters in large-scale kitchens for water-oil filtration or also in the industry for engine oils.

The research is also so important, because PLA is already quite well established in individual consumer-related segments - keyword: carrier bags. Traditionally, lactic acid was used to preserve food, for example in sauerkraut. Today, PLA is obtained via a multi-stage synthesis from sugar, which ferments to lactic acid and polymerizes this to PLA, as Kunststoffe.de explains. PLA is one of the best-known bioplastics, but has not always been readily available due to strong demand in recent years. The Netherlands-based company Total Corbion has announced plans to start up a PLA plant with an annual capacity of 100,000 tons in Grandpuits, France, by 2024. It would be the largest plant of its kind in Europe, with Asia leading the way so far.

• EXPORT NATION WITH LARGE TRADE FAIR PORTFOLIO

The economy is flourishing and economic forecasts are rising: The Netherlands is one of the five largest export nations in the world.  Motor of the Dutch economy and at the same time the cultural center is the Randstad region, which comprises the major cities Amsterdam, Rotterdam, The Hague and Utrecht. The most important trade fair venues in the country are also located here, off from the seat of the government in The Hague.
The trade fair venue of Amsterdam, which is operated by RAI Amsterdam, the Dutch trade fair company with the highest turnover, is of primary importance here. The ISE Integrated Systems Europe, IBC - International Broadcasting Convention and the Modefabriek are among the trade fairs with the largest number of visitors and an international focus. Due to the proximity of the market, however, national and regional trade fairs can also be of interest to German companies.
 
Economy
The Dutch economy is flourishing, above all due to private consumption and investment activity of companies. The Dutch economy is expected to grow by 3% in 2018 and 2.6% in 2019, according to Germany Trade & Invest. To the Dutch gross domestic product (GDP) 55% services, 12% industrial production and 4% by the construction industry contribute.

The Netherlands is one of the five largest export nations in the world. They are particularly dependent on the world trade, as around 45% of exports are re-exports. 75% of the Netherlands' exports go to the EU, 25% thereof to Germany. This makes Germany the Netherlands' most important foreign trade partner. In terms of imports, China has meanwhile taken the first place, followed by Germany, Belgium, the USA and Great Britain. From a German perspective, the Netherlands, with a trade volume of EUR 167.3 billion in 2017, was Germany's second most important trading partner (after China).
 
German exports of pharmaceuticals, food, machinery and motor vehicles play a particularly important role in the German-Dutch trade. Imports to Germany include food, pharmaceuticals, petrochemicals, gas and electronics.

The four large cities Amsterdam, Rotterdam, The Hague and Utrecht, located in the west of the country, are grouped together under the name Randstad. This region is the engine of the Dutch economy and the cultural center of the country. The Randstad is home to 42% of the total population. Half of all jobs are located there. Consequently, half of the GDP is generated in the Randstad.

  Source: AHK, Ministry of Foreign Affair, GTAI
   
Exhibition industry
180 trade fairs were organized in the Netherlands in 2017. As in the previous year, 68% of these trade fairs were nationally oriented, while 21 trade fairs had an international reach (12%). This means that fewer international trade fairs took place than in the previous year (26), but four more than 2015 (19), which is the more meaningful year of comparison due to many trade fairs with a two-year cycle. 45,144 exhibitors and 1.7 million trade visitors took part in the 180 trade fairs in 2017. The 21 international trade fairs, which had 9,527 exhibitors and 310,065 visitors, were also very successful.

Between 2010 and 2014, there were significantly more trade fairs than in 2017, around 230 trade fairs per year. The decline primarily affects national trade fairs and is attributable to cooperation between organizers and the consolidation of trade fairs. The average number of exhibitors and visitors in 2017 was significantly higher than in 2014, while the number of trade fairs with an international orientation changed only slightly.

In 2017 a total of 539 professional trade fairs and public exhibitions took place in the Netherlands. 6.3 million visitors came to see the products and services on offer from 101,780 exhibitors. These figures were announced by the Dutch industry association Centrum Voor Live Communication (CLC-VECTA).

Source: Jaarcijfers Beurzen 2017, CLC-VECTA

Trade fair organizations
The trade fair industry in the Netherlands is represented by the association CLC-VECTA. This is the industry association for companies and professionals who organize, host and provide trade shows, conventions and events. The network has around 200 members. CLC-VECTA publishes annual figures on the Dutch trade fair market and provides information about events in the industry.

In the smaller NVBO (Nederlandse Veriniging van Beursorganisatoren) with 18 members, mostly smaller Dutch trade fair organizers are organized usually without an exhibition venue of their own.
For their foreign trade activities, Dutch companies are looking for international platforms abroad, especially in Germany. In 2017, 5,576 companies from the Netherlands exhibited at 148 trade fairs in Germany. This corresponds to 59% of companies represented at international trade fairs in the Netherlands.
 
The AUMA trade fair database lists between 85 and 90 trade fairs in the Netherlands every year. Only individual trade fairs have tested figures. Due to the proximity of the market, national and regional trade fairs may be of interest to German companies.

The Dutch industry association CLC-VECTA announces the number of exhibition organizers at 270 in 2017. Of these, 95 organizers organized 180 trade fairs. Most fairs are organized by Easyfairs, Jaarbeurs Utrecht and RAI Amsterdam.

Trade fairs and organizers
Of the 25 most visited trade fairs in 2017, six are internationally oriented:

Contact

German-Dutch Chamber of Commerce and Industry
Website: https://www.dnhk.org/

German Embassy Den Haag
Website: https://niederlande.diplo.de/nl-de/vertretungen/botschaft

German Consulate General Amsterdam
Website: https://niederlande.diplo.de/nl-de/service/generalkonsulat1

Germany Trade & Invest (GTAI)
E-Mail: info@gtai.de
Website: http://www.gtai.de

AUMA
Heike Schöttle
Specialist global markets
Regions: Western Europe, Middle East / North Africa, South Asia
Tel.: +49 30 24000-126
Fax: +49 30 24000-320
E-Mail: h.schoettle@auma.de

Since its launch in 1951, ITMA has enjoyed wide industry recognition as the world’s largest textile and garment technology exhibition. This year’s exhibition in Barcelona sees its reputation solidify further with the largest gathering of exhibitors in its history. The record number of exhibitors totaling 1,717 from 45 countries has set a new milestone.

Speaking at the press conference on the opening day of the 18th edition of the exhibition, Mr Fritz P. Mayer, President of the European Committee of Textile Machinery Manufacturers (CEMATEX), said: “The global economy is still facing challenges, accentuated by trade tensions and disruption. However, textile being the world’s oldest manufacturing industry has demonstrated its resilience over the years. 

“This is also the spirit of our exhibitors who continually innovate and launch new technologies and solutions. We are glad that ITMA has been providing a reputable platform for textile machinery manufacturers to market their innovations. This has enabled us to record the largest number of exhibitors in ITMA’s history.”

The exhibits are showcased over 114,500 square metres of net exhibit space, a 9 per cent increase over the previous edition in 2015. The exhibition occupies all nine halls of the Gran Via venue, including the space under the linkway. To allow more companies to participate, many exhibitors were allocated lesser stand space than what they had originally applied for.  

Mr Charles Beauduin, Chairman of ITMA Services, organiser of ITMA 2019 enthused: “The exhibition would have been larger if we had not turned away applicants due to a lack of space. Unfortunately, we could not accommodate a wait-list of about 250 applicants who booked some 8,200 square metres.”

He added: “ITMA has also evolved into a more international exhibition with a rich diversity of technology offerings from both East and West. Almost half of the total number of exhibitors are from non CEMATEX countries. This augurs well for the development of ITMA into a definitive textile and garment platform for the industry.”

International participation
Of the total number of exhibitors, over half are from CEMATEX countries; the balance comprising companies from other parts of Europe, Asia, the Middle East and the Americas. Reflecting the international composition of the participants, the largest number of exhibitors are from Italy (364 exhibitors), China (276 exhibitors), Germany (222 exhibitors), India (169 exhibitors) and Turkey (164 exhibitors).

CEMATEX countries continue to occupy the largest exhibit space, taking up 65% of the total net exhibit space. Italy booked 26% of the space, followed by Germany which booked 18%. The top non-CEMATEX countries are: Turkey with 9%, China with 8%, and India with 5% of the space booked.

Product sectors
Visitors can expect to source a wide range of integrated solutions across the entire value chain in 19 exhibit sectors. Printing, which has seen many advances being made in the last few years, is an exciting growth sector. Chalking up a 38 per cent increase in the number of exhibitors compared with the previous exhibition, it is one of the top five sectors at ITMA 2019:

• Finishing - 325 exhibitors
• Spinning - 281 exhibitors
• Weaving - 182 exhibitors
• Printing - 157 exhibitors
• Knitting - 136 exhibitors

Nonwoven and technical textiles due to their wide range of applications continue to be an important sector at ITMA 2019. Garment making, which has been impacted by digitalisation and fast fashion, is also making a bigger impact at ITMA.

Mr Mayer said, “We are extremely pleased to bring garment technology back in focus at ITMA. While ITMA has been traditionally strong in textile making technologies, we are glad that we are able to present garment making solutions from some of the world’s most renowned technology providers. There is an increase of 27 per cent in number of exhibitors as compared with ITMA 2015." Completing the entire value chain is the showcase on fibres, yarn and fabrics. The addition of innovative fabrics in the fibre and yarn chapter at ITMA further completes the sourcing experience for buyers.
 
Focus on innovation
The theme of ITMA 2019 is ‘Innovating the World of Textiles’. To support the innovation drive, CEMATEX has introduced the ITMA Innovation Lab. A new umbrella branding of a series of activities, the Lab includes the Research and Innovation Pavilion, ITMA Speakers Platform, ITMA Sustainable Innovation Award and Innovation Video Showcase. Speakers from the industry have been invited to share their perspectives and experiences at the Speakers Platform which will be held from 21 to 25 June. A finance forum was also held on 21 June.

Co-located events and industry engagement
To encourage the exchange of knowledge, collaboration and networking, several events are staged alongside ITMA 2019. The ITMA-EDANA Nonwovens Forum and Textile Colourant and Chemical Leaders Forum have met with overwhelming response and seats have been added. Similar strong response has also been received by partner events, including the Better Cotton Initiative Seminar, European Digital Textile Conference, TexSummit Global, Planet Textiles, SAC & ZDHC Manufacturer Forum and Texmeeting by TEXFOR.

“The series of co-located events is part of ITMA’s outreach programme to engage industry partners and to create an inclusive platform for the global textile and garment community. We have over 190 international, regional and local organisations lending their support to our exhibition,” Mr Mayer said. ITMA 2019 is held at Fira de Barcelona Gran Via venue till 26 June. The opening hours are from 10.00am to 6.00pm daily, except 26 June when the exhibition will end at 4.00pm.

About CEMATEX & ITMA
The European Committee of Textile Machinery Manufacturers (CEMATEX) comprises national textile machinery associations from Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland and the United Kingdom. It is the owner of ITMA and ITMA ASIA. Considered the ‘Olympics’ of textile machinery exhibitions, ITMA has a 68-year history of displaying the latest technology for every single work process of textile and garment making. It is held every four years in Europe.

• Israeli Manufacturers with increasing Presence on the World Market

The production of technical textiles is one of the leading sectors of the Israeli textile industry. Their success is not least due to intensive research and development. In view of the fierce international competition facing the Israeli textile industry, high-quality and innovative products are indispensable for stabilizing this
industry. One of the sectors that best manage this modernization is the production of technical textiles.

In 2017, this product category accounted for an estimated USD 600 million or nearly one-third of the total sales generated by the textile and apparel industry. With an export share of around 70 percent, the division is also strongly world market-oriented and accounted for USD 414 million, 43 percent of Israeli textile and clothing exports in 2017.

The production of technical textiles is based not least on strong domestic demand. The largest domestic customers include the armed forces and security forces, which demand high functionality and top quality from their suppliers. Among other things, this market segment produces bulletproof textiles, special textiles for uniforms, carrier bags for sensitive devices under field conditions and camouflage nets.

Strong domestic demand helps product development
As the Fashion & Textile Industries Association explained to Germany Trade & Invest in January 2019, direct contact with the military and internal security institutions helps companies to offer tried and tested products. In addition, according to Maya Herscovitz, director of the association, former members of the armed forces and security forces who are familiar with the requirements for corresponding products are active in the manufacturing companies.    
 
Other domestic customer industries are construction and agriculture. Building construction is increasingly relying on modern building materials, including lightweight and highly insulating textiles. The agricultural sector, on the other hand, contributes only 1.2 percent to the gross domestic product, but is capital-intensive and innovation-oriented. Safety nets are a popular agrotechnical product. In September 2018, Israeli agronomist Yossi Ofir pointed out in a contribution that climate change is leading to an increasing use of shadow nets. Last but not least, more and more Israeli farmers covered entire orchards with shade nets. 

Networking with the high-tech industry
The anchoring in the domestic market and the direct contact to customers accelerate the development of new products. At the same time, the technical textiles sector is embedded in the high-tech scene. For example, manufacturers integrate research results from nanotechnology and materials science into their products.

An example of this is Marom Dolphin, which manufactures military and civilian products and uses plastics, metal and composite materials to increase the strength of its textile products or reduce their weight. A leading manufacturer of technical textiles is Hagor Industries, which offers combat vests, protective vests, backpacks and tents of all sizes among other things, while Source - Shoresh produces textile hiking accessories. These and similar manufacturers are represented on numerous export markets.

Some companies do not offer finished products, but technological solutions. Nano Textile, for example, has launched an antibacterial sonochemical coating for textiles. Hospitals are planned as a main field of application, but according to company information other fields of application such as aircraft construction and public transport, restaurants and hotels or baby clothing may also open up. Gideon Guthrie Technical Textile also offers research and development (R&D) services in cooperation with Israeli and foreign textile manufacturers.

In addition to the activities of the company's own R&D departments, research is also carried out at universities. For example, the textile coating technology used by Nano Textile was developed at the Israeli Bar Ilan University. The Shenkar College of Engineering, Design and Art is home to CIRTex (The David & Barbara Blumenthal Israel Center for Innovation and Research in Textiles). The center carries out applied research on new products, production processes and applications for textiles and promotes cooperation between established companies on the one hand and start-ups and individual inventors on the other. Industrial textile research and development is supported by the Innovation Authority.

According to the trade association, the production of technical textiles will continue to increase in the coming years. As Maya Herscovitz explained to Germany Trade and Invest, manufacturers of technical textiles invest large amounts not only in the development of new products, but also in the modernization and automation of production processes. This was not only necessary for reasons of cost savings, but also because of the shortage of skilled workers on the labour market.

Israel is a net exporter of technical textiles
Der mit großem Abstand wichtigste Exportposten im Bereich technischer Textilien (SITC 657) sind The by far most important export item in the technical textiles sector (SITC 657) are nonwovens (SITC 657.2). They accounted for 67.1 percent of total exports of technical textiles in 2017, or USD 278 million. Second place went to batting, wicks and goods and products for technical use made of textile materials. With an export value of USD 88 million, they accounted for 21.6 percent of industry exports.

The most important export market in 2017 was the USA, followed by the Netherlands and Germany in a great distance. The Federal Republic of Germany purchased technical textiles worth USD 44.7 million (10.8 percent of Israeli exports) from Israel.

With USD 136 million imports accounted for 32.6 percent of exports. The three most important supplier countries - China, Turkey and Italy - were almost on a par at USD 25 million, USD 24.8 million and USD 24.2 million. Germany ranked fifth and, with a delivery value of USD 11.2 million, achieved an import market share of 8.3 percent.

• E-commerce to grow by 17 percent in 2018

Berlin (GTAI) - E-commerce in the Netherlands is expected to grow in 2018. The most popular products are media and entertainment. Strong growth was recorded in the food trade.
The Dutch online food trade is gaining momentum, and high growth rates are expected for 2018. Customers also look beyond the borders and shop abroad. However, the online shops with the highest turnover are in Dutch hands.

Dutch people are very open to new technologies. In 2018, around 97 percent of the population (16.8 million people) will have an Internet connection. On average, the 13.9 million online shoppers spend EUR 1,242 a year. In 2018, e-commerce revenue will grow by around 17 percent to EUR 26.3 billion. This is predicted by an investigation of the organization Thuiswinkel. Already in the first quarter of 2018, EUR 6.3 billion were spent online, an increase of 13 percent compared to the same quarter of the previous year. The last quarter of a year with the holidays (Christmas, Santa Claus and Black Friday), in which 30 percent of the annual sales are taken place, is always very promising.

According to the Portal Commercenews online trading amounted to EUR 22.5 billion in 2017, up 13 percent from 2016, accounting for 9.7 percent of the total retail sales, which grew by only 4.2 percent. The e-commerce boom was followed by new company foundations: around 9,200 new webshops were established, but 5,400 were closed too. Most of these webshops also have foreign markets in their view.

Laptops are most commonly used for online purchases, but mobile devices are becoming increasingly popular. 2017 was marked by growing mobile commerce (m-commerce), a further increase is expected in 2018. After all, the country has more mobile devices than inhabitants (110 percent).

Not only the web shops benefit from the booming e-commerce. The Dutch Post is also pleased about the growth. Their e-commerce revenue is estimated at 42 percent of total revenue in 2018 (2017: 34 percent).

Food is bought more frequently online
Demand is focused on the media and entertainment sectors, where some 8.5 million purchases were made in the first three months of 2018. Food and near-food products (goods that are not food but are also available in supermarkets) were in demand in the first quarter of 2018, 42 percent more than in the same period of last year. Although their share of total purchases is still low, experts are already forecasting 3.7 percent in 2018 after 2.9 percent in 2017, when the sales exceeded EUR 1 billion for the first time. The purchases were mainly made at the large Albert Heijn and Jumbo supermarkets. The third important market Picnic, which only operates online, wants to expand into Germany and has already started a pilot project in the Düsseldorf area.

The Albert Heijn supermarket is about to make it even easier for its customers, to receive goods even when they are not at home. It is testing a so-called intelligent key (smart door lock) from Nuki. Customers can use their mobile phones to control who enters the apartment in their absence. By this this way he can let the delivery service in after his call..

Buyers are usually satisfied with their online purchases. Nevertheless, they fear that the goods are not clearly enough illustrated and described, as well as difficulties in returning them and their costs. Web shops can score points if they offer free shipping and fair return options.

The thrifty Dutch also compare when buying on the Internet. According to Ecommerce Foundation, 60 percent look around at multiple merchants before deciding, 53 percent use websites that compare prices or products, half consider other users' reviews on the web and only 8 percent buy spontaneously based on advertising or social media ads (multiple answers possible).

Dutch spend more and more abroad
Around 3.8 million Dutch people bought from foreign webshops in 2017, spending rose by 28 percent compared to the previous year. In 2017, they spent around EUR 1.5 billion on webshops in the European Union. Also Chinese sites with favorable offers are popular. Around EUR 248 million were invested in shops such as Aliexpress, Banggood, Dealextreme, Geekbuying, Gearbest, MiniIn TheBox. The most popular countries were China, the United Kingdom, Germany and the USA.

The most popular payment provider on the Internet is iDEAL. Around 95 percent of customers use the Dutch online payment system, in which several local banks are involved. Its market share is an impressive 57 percent. In 2017, the number of transactions via iDEAL grew by almost 34 percent. Foreign webshops have also joined the system: About one third of the payments went to them.

Source: Ecommerce Foundation

Many Dutch retailers among top online shops
Many of the most successful online retailers are Dutch companies. Bol, the local online seller with the highest turnover, was able to grow because large e-traders such as eBay or Amazon were not yet present in the Netherlands. Bol developed from a project of the German Bertelsmann Group with a focus on books and DVDs, but is now in Dutch hands and has considerably expanded its offering to other product groups. In 2012 Bol was acquired by the Ahold Group.

The Rotterdam-based company Coolblue launched an online store in 2000. Subsequently, several web shops were opened, each focusing on one product category. A stationary business was added in 2005. Coolblue today sells mainly consumer electronics, white goods and fitness equipment and is the second largest online retailer. The company is known for its excellent customer service.

Wehkamp began as a mail order company in 1952 and sold all articles via its Internet platform before 2000. The Internet pioneer has developed slowly, but has recently invested heavily in order to survive in the Dutch top league.

Like eBay in Germany, Marktplaats.nl in the Netherlands is the marketplace for second-hand goods. Google Shopping achieved strong growth in 2017. The portal is also expected to become the most important comparison portal in the Netherlands in a short time.

• Eports grow slowly
• Industry needs new concepts

Dhaka (GTAI) - The garment industry is the main industry in Bangladesh. The state of the companies has improved since 2013 - when a building with several factories collapsed. Domestic and foreign companies have invested in new processes. Government and associations want to further increase the security. Exports are growing slower. The international competition forces the companies to produce not only more sustainable, but also more efficient and innovative.

On April 24th 2013, north of the Bangladeshi capital Dhaka, the Rana Plaza building collapsed, housing five clothing factories. The disaster claimed 1,138 lives and more injuries. The disaster in-cised deep into the country's largest industrial sector. The massive problems with building and safety as well as violations of workers' rights became internationally visible at once and then vigor-ously tackled.

Foreign companies have invested heavily in the textile and clothing industry in recent years, with a record high in the year after the disaster. According to the Central Bank, foreign direct investment (FDI) in the textile and clothing industry in June 2017 reached a respectable USD 2.6 billion. Com-panies from South Korea have been the largest contributors with USD 766 million, followed by Hong Kong investors with USD 448 million and the United Kingdom with USD 243 million

      *) Financial year from July 1st to June 30th

Several successful programs for more security
Government and international organizations responded with many measures and initiatives at Rana Plaza. The International Labor Organization (ILO) launched programs to improve work-ing conditions. Buyers and industry representatives were looking for solutions.

International traders, trade unions and non-governmental organi-zations finally signed a binding agreement for more fire and building safety in 2013 (Accord on Fire and Building Safety). Employees of Accord have since reviewed more than 1,600 tex-tile and garment factories. Approximately 86 percent of the iden-tified deficiencies were eliminated according to an interim report dated January 2018. Accord will expire in November 2018 after five years. Some participants of the alliance have agreed an ex-tension of the program of three years.

In particular North American importers launched the Alliance (Al-liance for Bangladesh Worker Safety) program in 2013. The Al-liance has since reviewed 666 factories that, as of February 2018, have remedied approximately 87 percent of the deficien-cies. The program will expire also after five years in May 2018.
Representatives of industry and government, trade unions, ILO, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and international buyers want to co-ordinate the control and rehabilitation measures together. The BGMEA and the government rely on the NI National Initiative, which they developed together with ILO. The Department of Inspection of Factories and Establishments is responsible for NI controls. Under the NI program 1,500 factories have been inspected which are working for do-mestic customers. The program is to be extended to exporting companies and will replace Accord and Alliance.

Workers demand more rights and higher wages
The government made it easier to found and to engage in trade unions after the Rana Plaza disas-ter. According to observers, the approximately 4 million workers in the textile and clothing industry continue to have little formal organization and went repeatedly on strike for higher wages.

A government commission recently increased the monthly minimum wage in the garment industry from Taka 3,000 to 5,300 in 2013. This amount corresponds currently with EUR 52 only. (1 EU-RO = Taka 102.13, exchange rate of March 5th 2018). Trade unions demanded tripling of the minimum wage at the beginning of 2018, because unskilled workers are given this low pay when they are first employed, which is barely enough to survive. The reward grows only later with the skills and experience.

Employees often change their jobs. According to observers, the fluctuation should average be-tween 5 and 7 percent per month. Fair wages and good working conditions would give a good in-fluence on this issue in the companies concerned.

Bangladesh is the second largest exporter of clothing after China
The globally active clothing retailers are buying in Bangladesh on a large scale. Some have offices with hundreds of employees. Major clients include Inditex (Spain), H & M (Sweden), C & A and Tchibo (Germany).

Clothing exports, however, stagnated in the financial year 2016/17. One reason for the weak growth was the strengthened exchange rate. Taka's national currency increased against the US dollar, making exports more expensive and less competitive.

The government is targeting an export growth of 8.1 percent to USD 30.2 billion in 2017/18. The industry is on track indeed, reaching 7.8 percent in the second half of 2017 compared to the same period of the year before. The most important customers are the USA and Germany.

*) Financial year from July 1st to June 30th
Sources: Export Promotion Bureau, Bangladesh Garment Manufacturers and Exporters Association

Exports from this emerging country enjoy exemption from duty in many developed countries. The European Union grants duty-free and quota-free access. Australia and Japan grant preferential access to the Generalized Scheme of Preferences (GSP). , The USA however has suspended the GSP status in 2013 and imposed tariffs and duties on imports from Bangladesh.

Companies want to grow and become more efficient
The Association of Garment Export Companies BGMEA estimates that over 3,000 garment factories work exclusively for international clients. Another 800 to 1,000 companies sew for local retailers who sell clothing to the country's 160 million inhabitants.

There are no data on company sizes or on the companies with the highest turnover. Clothing companies are mostly registered as private companies and do not publish business figures. The larger ones belong to local conglomerates operating in different economic sectors.

The companies are investing in more modern production facilities to process larger orders faster and at lower unit costs. Imports of machinery and equipment for the textile and clothing industry totaled USD 1.4 billion in 2015. The BGMEA believes that the garment industry has increased its purchases of equipment since.

The added value along the local textile chain is expandable. Simple fabrics and materials are produced locally. The production capacities for fabrics however are not sufficient and need to be increased. The clothing industry is also switching to higher quality synthetic fiber products. Producers hope for higher margins, if, for example, they produce clothing made of elastic fibers or functional clothing made from mixed fibers.

Many pre-products are imported from China and South Korea. Imports however are difficult due to the limited handling capacities of seaports and airports. Logistics costs are high. The clothing sector still has some challenges to overcome.

• Production and export on the upswing
• Environmental problems and other challenges remain

The leather industry in Bangladesh reports rising exports and growing domestic demand. The location scores with low labor costs and the availability of leather. However, too many tanneries still burden the environment. The industry structure of the manufacturers of leather goods and shoes ranges from outdated to modern. International, export-oriented companies are showing the way.

Bangladesh's leather industry is the second largest exporter of the emerging market after the apparel industry. The majority of exports in the 2016/17 financial year (July 1st 2016 to June 31st 2017) were USD 537 million on leather shoes (USD 495 million in the previous year), followed by leather goods with USD 464 million (388 million). The export of leather footwear rose again by 9 per cent in the second half of 2017, leather goods were at the same level as in the same period of the previous year.

By contrast, leather exports reached USD 233 million in 2016/17 (USD 279 million), down 29 percent in the second half of 2017. The main reason is lower demand for leather in China. Instead, it is increasingly being processed in Bangladesh into finished products for domestic and foreign customers.

Potential not yet exhausted
The Department of Commerce wants to quadruple the total exports to USD 5 billion by 2021. It has mandated this task at the Bangladesh Leather Sector Business Promotion Council. This should increase with suitable measures both the production quantities and the processing depth in the country. Leather production and processing have potential because they could well repeat the successful development of the domestic textile and clothing industry.

International investments are welcome. Foreign investors can find a subsidiary in their own hands and apply for subsidies and tax exemptions. Eight export processing zones and other special economic zones offer many legal and technical advantages, says the investment authority Bangladesh Investment Development Authority.

The Association of Leather Goods and Footwear Manufacturers & Exporters of Bangladesh (LFMEAB) reports that companies from Taiwan, China, South Korea and Japan are increasingly investing in the industry. Among other things they are relocating production from China to Bangladesh.

Source: Central bank

According to the Central Bank in the fiscal year 2016/17 USD 82 million were directly invested in the leather industry (previous year: USD 48 million).  Taiwan was by far the largest investor with USD 50 million (USD 14 million).

Also, former investors show a successful development. As an example the German company Picard Lederwaren has a joint venture in 1997 and produces now  32.000 leather bags per month and 40.000 small leather goods per month.

Certified manufacturer of leather goods
The most important buyers of leather goods and shoes are the EU, Japan and the USA. The EU and Japan generally do not impose quotas or import duties on Bangladeshi imports under their preference systems for developing countries.

The export-oriented leather goods manufacturers usually produce at a technical level required by the customers. These include certifications and exams. The trade association LFMEAB is committed to meeting industry-standard levels among its 150 member companies. The European Union also supports a sustainable, resource-efficient development of the leather sector with its ECOLEBAN project. Several tanneries and leather factories have been proven to adhere to the labor and social standards of the UN organization ILO and the ISO standard 14001 for environmental management systems.

With increasing demands and volumes, leather processing companies will also import more quality materials such as soles and accessories. Their machines and equipment are also from abroad.

Problematic conditions in leather production
However the leather is manufactured under problematic conditions. The agricultural land has a population of about 24 million cattle and thus about 1.7 percent of the world's total. The meat industry also processes buffalo and goats in larger quantities. Animals suffer from improper slaughter. Modern slaughtering processes and advanced processing steps could improve the quality of leather production.

The number of tanneries is estimated at more than 200, producing approximately 29 million square meters of leather per year, two-thirds of it are leather from beef skins. The industry has a poor reputation, the situation in many companies is criticized by independent observers. In most companies processes and equipment for occupational safety and environmental protection are not available. According to various reports children are working in poorly controlled factories.

The situation in Hazaribagh is dramatic. The Supreme Court has ordered already in 2003 that the approximately 150 small tanneries from this residential area in Dhaka should move to an alternative location. The public company Bangladesh Small and Cottage Industries Corp. was commissioned to set up the leather industry park Savar Tannery Park in a northern suburb of Dhaka. The complete relocation to the new leather cluster in Savar has since been delayed again and again.

According to the Bangladesh Tanners Association, the move to the Savar leather-industrial-park should have taken place in the meantime, however the local central sewage treatment plant seems not to work completely. The tanneries pollute the environment there as well. Media also report still tannery activity in Hazaribagh.

More skilled workers needed
In a recent 2013 survey the number of leatherworking companies was estimated at 3.500. The manufacturers develop their own designs for the domestic market and some want to place their own brands internationally.

But the intensity of training of skilled personnel does not keep up with the industrialization of the industry. Tanneries and leather industry employ directly and indirectly about 75.000 people. Their knowledge and skills are often based on old and traditional procedures and short briefings.

The need for skilled personnel is estimated at 60.000 persons. A center of excellence is involved in the training since 2009. The Center of Excellence for Leather Skills Bangladesh (COEL) has trained around 15.000 people in machinery and design since. Two universities train engineers in this field. The University of Dhaka has established an Institute of Leather Engineering and Technology, and the Khulna University of Engineering has a leather technology department.

The Ministry of Commerce and the association LFMEAB has organized in November 2017 the first edition of the trade fair BLLISS (Bangladesh Leatherfootwear & Leathergoods International Sourcing Show). The organizers were able to present the procurement market and want to continue the event annually. The industry event attracted 30 exhibitors and 20.000 visitors. The next edition will take place from  November 24th- 26th 2018 in conjunction with the leather technology fair Leathertech (http://www.leathertechbangladesh.com).

• Companies want stay away from cheap contract manufacturing

Istanbul (GTAI) - The highly export-oriented Turkish textile and clothing industry wants to increase its competitiveness on world markets by investing in design. The hitherto widespread contract manufacturing for foreign brand manufacturers is losing importance in favor of own collections. With a law from 2016, the Turkish state explicitly promotes investment in design.

The Turkish textile and clothing industry is going through a structural change: While the garment industry was once particularly interesting because of the comparatively low labor costs for contract manufacturing orders from Western companies, Turkish manufacturers are increasingly working as designers for international clients. In addition to well-known Turkish fashion manufacturers such as Ipekyol, Vakko and Zorluteks, more and more Turkish textile companies are also manufacturing and marketing their own brands. In parallel, they are expanding their online sales network. For example, Ipekyol intends to close half of its stores in the next 20 years.

In order to meet the changing demand of foreign cooperation partners, Turkish clothing companies are increasingly investing in research and development projects, as the Turkish business magazine Ekonomist reports.

For example, Hassan Tekstil (http://www.hassan.com.tr) based in Istanbul, founded in 2017, has a 45-member R & D department. The company, whose revenues of USD 232 mio in 2016 were generated 35 percent from exports, plans to spend1.5 percent of its revenue on R & D activities.    

Another company that is increasingly investing in R & D and design is TYH Tekstil (http://www.tyh.com.tr) in Istanbul. This purely export-oriented company with a turnover of around USD 100 mio (2016) employs 15 fashion experts. About 1.5 to 2 percent of sales, which will reach around USD 130 mio in 2017, will be used for design projects and the development of collections, according to the Economist's report. In addition to contract manufacturing for well-known international brands such as Gant and COS, TYH Tekstil also developed its own brand Roqa for women's outerwear. Meanwhile, 20 to 25 percent of exports are from the supply of private label products.

Innovative workwear for security forces

According to Economist, another manufacturer with increasing R & D activities is Narkonteks (http://www.narkonteks.com) in Izmir. This company, which does not produces for international companies only, produces also goods under its own brand "Blackspade". Narkonteks also supplies customers in the Netherlands with technical textiles for security personnel. The manufacturer employs 30 engineers for its R & D activities. Of the targeted sales of TL 100 mio in 2017, 1.5 percent will be spent on R & D activities.

In 2016 Narkonteks generated around TL 80 mio. (1 Euro = 4.50 TL). The company Farb Textile (http://www.farbetextile.com) in Izmir, which sews for European fashion companies such as Bestseller, Inditex and Mango, emphasizes increased design activities also, according to Economist. About 60 percent of the production are own brands. The turnover of TL 100 mio (2016), should be increased to TL 130 mio.
 
One of the larger R & D investors is the clothing manufacturer Taypa Tekstil in Istanbul (http://www.taypa.com.tr) with a turnover of EUR 100 million, which exports about 80 percent of its production. The parent company TAy Group, which supplies large fashion houses such as Levis, Inditex and Tommy Hilfiger, uses 5 percent of its revenue for research and innovation projects and employs 25 designers, writes the magazine Ekonomist. The share of own brands in sales of currently 21 percent is to be increased to 50 percent in the foreseeable future.

Taypa invests in major project in Algeria

In addition to the existing production in Egypt Taypa Tekstil manufactures in Serbia and Algeria. In a clothing factory in Kraljevo, Serbia, EUR 35 mio should be invested over the next five years. A large-scale project called "TayalSPA" is being planned in Algeria for the construction of an integrated textile and clothing factory in the Sidi Khetab industrial zone in the province of Relizane. According to Taypa CEO Burak Karaarslan, quoted in the business paper "Dünya", this project, with an support of 50 percent by the Algerian government will receive investments totaling USD 2 billion in three phases until 2023.

USD 800 mio will be invested in the recently started initial construction phase. The company will start with yarn production first. Thereafter, from the end of 2018, the production of denim and other fabrics will commence. After completion of the first phase, the annual production will reach 30 million meters of denim and non-denim fabrics, 14 million meters of fabrics for shirts, 3,200 tons of knitwear and 30 million pieces of ready-made garments.    

Government encourages investment in research and development

The Turkish state has been promoting investments in design since 2016: By Law No. 6676 of February16th 2016 (Government Gazette "Resmi Gazete" No. 29636 of 26.02.16) amending Law No. 5746 of 28.02.08 on the promotion R & D activities, in contrast to the previous practice, investment in design projects were concluded in the government support. Thus, companies that employ at least 15 people (previously 30) in the R & D sector can benefit from tax and customs privileges. Imported products for research projects are exempt from import duties.

Comprehensive support measures in the form of project-based grants for the marketing of Turkish brands abroad also include Regulation No. 2016/1 of the Turkish Monetary Credit and Coordination Council, which was announced in the Official Gazette No. 29898 of November 24th 2016. The implementation of subsidies is the responsibility of the Ministry of Economy.

According to figures from the Ministry of Science, Industry and Technology, there are a total of 38 R & D and 29 design centers nationwide in the textile and clothing industry.

Germany is most important target market

Turkey is a major exporter of textiles and clothing. According to official statistics, the country exported USD 24.3 billion worth of textiles and clothing in 2016 (including USD 16.7 billion in ready-to-wear articles). The export association IHKIB is targeting USD 60 billion in ready-to-wear exports in 2023. In apparel, Germany is the most important customer with a share of 18.8 percent. For textiles and textile raw materials, the country is the fourth largest market for Turkish exporters with 5 percent.     

Source: Export Association IHKIB; Turkish Ministry of Economy

Source: IHKIB; Ministry of Economy

Source: IHKIB; Ministry of Economy

Source: IHKIB; Ministry of Economy  

Preparations for a successful Kind + Jugend from 14 to 17 September 2017 in Cologne are running at full speed, and the leading international trade fair for baby and children's outfitting is really picking up speed. Four months before the event, around 1,000 exhibitors from more than 50 countries have already confirmed their participation in the trade fair. Virtually all of the renowned manufacturers and brands have applied to participate. Around 85 percent of the confirmations are from foreign companies. In addition to the comprehensive industry offerings, the target group-specific event program, the so-called Support Circle, is considered to be one of the key factors of the trade fair’s success.

In past years, the traditional trade fair Kind + Jugend has been able to continuously expand its position as the world's leading trade fair of the baby and children's outfitting industry. Exhibitors from the industry of many years, including the following key players, contribute to this: ABC Design, aden & anai, Alvi, Angelcare, Artsana-Chicco, Baby Björn, Babymoov, bibi-Lamprecht, Bebecar, Brevi, Britax Römer, Cam il mondo, Combi, Concord, Cybex, Delta Children, Diono, Dorel, Doudou et Compagnie, ergobaby, Easywalker, Foppa Pedretti, Gautier, Geuther, Hauck, Hartan, HTS, iCandy, Infantino, Jané, Joie/Nuna, Joolz, Kaloo, Kiddy, KidsII, Kidsmill, Lässig, Lodger, Mayborn – Jackel, Medela, Munchkin, Mutsy, Nattou, Newell, Noukies, Novatex, Nuby, Nürnberg Gummi, Odenwälder, Paidi, Peg Perego, Philips Avent, Pinolino, Playgro, reer, Reisenthel, roba-Baumann, rotho, Schardt, Sauthon, sigikid, Silver Cross, Sterntaler, Suavinex, Takata, Tobi, Uppababy, Vulli, Wickelkinder – manduca and Julius Zöllner. Kind + Jugend also has renowned exhibitors or returnees in all segments, like Blue Seven – H. Obermeyer, David Fussenegger, Didis, Koelstra, lief! Lifestyle, nobodinoz, Teddy-Hermann, Tiriciclo and VTech.

In addition to the high-class product show, the leading international trade fair once again offers an interesting event and supporting programme with many awards for all exhibiting companies, from start-ups and young designers to established, globally active brand manufacturers.

The successful and proven concept of the "Support Circle" is thereby oriented to the typical development and distribution chain of a product. A convincing concept and a prototype is always at the start of a product development process. Kind + Jugend presents the best prototypes with the nominees of the KIDS DESIGN AWARD. Further information can be found here:
http://www.kindundjugend.com/kindundjugend/Trade-Fair/Events/Kids-Design-Award/index.php 

The DESIGN PARC presents extraordinary objects, furniture and toys that are already ready for the market, and thus offers a good possibility for traders to distinguish their assortment from those of competitors. The newly created #DESIGNINFOCUS design hotspot in hall 11.1 rounds off the offering in this segment.

The Kind + Jugend Innovation Award is a permanent fixture in the industry and is viewed as an important marketing and sales argument in the trade. The award is seen as a springboard for establishing oneself on the market with a product. The award is traditionally conferred in eight categories at the start of Kind + Jugend on the first day of the fair.
Further details: http://www.kindundjugend.com/kindundjugend/Trade-Fair/Events/Innovation-Award/index.php or http://news.kindundjugend.de/2017/02/kind-jugend-fragt-nach-ein-interview-mit-whisbear/

A real drawing card is the Consumer Award, which was established in 2014, with which Kind + Jugend addresses the wish of visitors to also be presented with the favourite products and best sellers of the consumers that are already well-established on the market in addition to the brand-new product innovations. This year the following partner magazines and portals provided support with the surveying of consumers: Germany participated with 1st Steps, the Netherlands with Baby Stuf, Austria with NEW MOM, Poland with Branza Dziecieca, Russia with Rodi, France with Parole de Mammans, Turkey with Baby & Kids Store and the UK with Mother & Baby.

Kind + Jugend supports startups and smaller companies in the form of country pavilions. This year there will be group stands from Australia, the UK, France, South Korea, Latvia, Singapore, Spain, Taiwan and the USA. Twenty young German companies will also present themselves in the special area of the Young Innovative Companies, which is sponsored by the Federal Ministry for Economic Affairs and Energy (BMWi).

The Kind + Jugend Trend Forum also offers valuable pro tips and best practices for everyday application in the form of lectures, discussion groups and workshops. High-quality speakers will pick up on the trend themes of the industry and acknowledged experts will present information and strategies that are tailored to meet the needs of the trade and which are practice-oriented, as well as offering the trade visitor added value. The benefits of visiting the trade fair are thus double.

Online admission tickets are available under the following link:
http://www.kindundjugend.com/kindundjugend/For-Visitors/Admission-ticket/index.php