Textination Newsline

From the perspective of European consumption, textiles have on average the fourth highest negative life cycle impact on the environment and climate change, after food, housing and mobility. A shift to a circular textile production and consumption system with longer use, and more reuse and recycling could reduce those impacts along with reductions in overall consumption. One important measure is circular design of textiles to improve product durability, repairability and recyclability and to ensure the uptake of secondary raw materials in new products.

Key messages

• In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people across 160,000 companies. As was the case in many sectors, between 2019 and 2020, the COVID-19 crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing.
• In 2020, textile consumption in Europe had on average the fourth highest impact on the environment and climate change from a global life cycle perspective. It was the consumption area with the third highest impact on water and land use, and the fifth highest in terms of raw material use and greenhouse gas emissions.
• To reduce the environmental impacts of textiles, a shift towards circular business models, including circular design, is crucial. This will need technical, social and business model innovation, as well as behavioural change and policy support.
• Circular design is an important enabler of the transition towards sustainable production and consumption of textiles through circular business models. The design phase plays a critical role in each of the four pathways to achieving a circular textile sector: longevity and durability; optimised resource use; collection and reuse; and recycling and material use.

Textiles are identified as a key value chain in the EU circular economy action plan and will be addressed in the forthcoming European Commission’s 2022 EU strategy for sustainable and circular textiles and EU sustainable products initiative. This briefing aims to improve our understanding of the environmental and climate impacts of textiles from a European perspective and to identify design principles and measures to increase circularity in textiles. It is underpinned by a report from the EEA’s European Topic Centre on Circular Economy and Resource Use available here.

1. Production, trade and consumption of textiles
Textiles is an important sector for the EU economy. In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people in 160,000 companies. As was the case for many sectors, between 2019 and 2020, the COVID-19 health and economic crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing (Euratex, 2021).

In 2020, 6.9 million tonnes of finished textile products were produced in the EU-27. EU production specialises in carpets, household textiles and other textiles (including non-woven textiles, technical and industrial textiles, ropes and fabrics). In addition to finished products, the EU produces intermediate products for textiles, such as fibres, yarns and fabrics (Köhler et al., 2021).

The textiles sector is labour intensive compared with others. Almost 13 million full-time equivalent workers were employed worldwide in the supply chain to produce the amount of clothing, textiles and footwear consumed in the EU-27 in 2020. This makes the textiles sector the third largest employer worldwide, after food and housing. Most production takes place in Asia, where low production costs come at the expense of workers’ health and safety.
 
Textiles are highly globalised, with Europe being a significant importer and exporter. In 2020, 8.7 million tonnes of finished textile products, with a value of EUR125 billion, were imported into the EU-27. Clothing accounts for 45% of imports in terms of volume, followed by household textiles, other textiles and footwear (Eurostat, 2021a). The EU imports mainly from China, Bangladesh and Turkey, and exports mainly to the United Kingdom, Switzerland and the United States (Euratex, 2020).

Consumption
European households consume large amounts of textile products. In 2019, as in 2018, Europeans spent on average EUR600 on clothing, EUR150 on footwear and EUR70 on household textiles (Köhler et al., 2021; Eurostat, 2021b).

The response to the COVID-19 pandemic, involving stay-at-home measures and the closure of companies and shops, decreased textile production and demand overall (Euratex, 2021). As a result, the consumption of clothing and footwear per person decreased in 2020, relative to 2019, while the consumption of household textiles slightly increased. Average textile consumption per person amounted to 6.0kg of clothing, 6.1kg of household textiles and 2.7kg of shoes in 2020 (see Figure 1).

Apart from this COVID-related drop in consumption in 2020, the estimated consumption of clothing and footwear stayed relatively constant over the last decade, with slight fluctuations between years (see Figure 2). Similarly, the consumption of household textiles was also relatively steady, with a slight increase over the decade.

When calculating the ‘estimated consumption’ based on production and trade data from 2020, and excluding industrial/technical textiles and carpets, total textile consumption is 15kg per person per year, consisting of, on average:

• 6.0kg of clothing
• 6.1kg of household textiles
• 2.7kg footwear.

For 2020, this amounts to a total consumption of 6.6 million tonnes of textile products in Europe. Textile consumption estimates are uncertain, as they vary by study, often using different scopes and calculation methods.

2. Environmental and climate impacts of textiles
The production and consumption of textiles has significant impacts on the environment and climate change. Environmental impacts in the production phase result from the cultivation and production of natural fibres such as cotton, hemp and linen (e.g. use of land and water, fertilisers and pesticides) and from the production of synthetic fibres such as polyester and elastane (e.g. energy use, chemical feedstock) (ETC/WMGE, 2021b). Manufacturing textiles requires large amounts of energy and water and uses a variety of chemicals across various production processes. Distribution and retail are responsible for transport emissions and packaging waste.

During use and maintenance — washing, drying and ironing — electricity, water and detergents are used. Chemicals and microfibres are also emitted into the waste water. Meanwhile, textiles contribute to significant amounts of textile waste. At the end of their life, textiles often end up in general waste and are incinerated or landfilled. When textile waste is collected separately, textiles are sorted and reused, recycled or disposed of, depending on their quality and material composition. In 2017, it was estimated that less than 1% of all textiles worldwide are recycled into new products (Ellen MacArthur Foundation, 2017).

To illustrate the magnitude of the impacts of textile consumption on raw material use, water and land use and greenhouse gas emissions compared with other consumption categories, we have updated our calculations of the life cycle environmental and climate impacts in the EU. We used input-output modelling based on data from the Exiobase database and Eurostat. In line with the reduced textile consumption level in 2020 because of the COVID-19 pandemic, the environmental impacts decreased from 2019 to 2020.

Raw material use
Large amounts of raw materials are used for textile production. To produce all clothing, footwear and household textiles purchased by EU households in 2020, an estimated 175 million tonnes of primary raw materials were used, amounting to 391kg per person. Roughly 40% of this is attributable to clothes, 30% to household textiles and 30% to footwear. This ranks textiles as the fifth highest consumption category in Europe in terms of primary raw material use (see Figure 3).

The raw materials used include all types of materials used in producing natural and synthetic fibres, such as fossil fuels, chemicals and fertilisers. It also includes all building materials, minerals and metals used in the construction of production facilities. Transport and retail of the textile products are included as well. Only 20% of these primary raw materials are produced or extracted in Europe, with the remainder extracted outside Europe. This shows the global nature of the textiles value chain and the high dependency of European consumption on imports. This implies that 80% of environmental impacts generated by Europe’s textile consumption takes place outside Europe. For example, cotton farming, fibre production and garment construction mostly take place in Asia (ETC/WMGE, 2019).

Water use
Producing and handling textiles requires large quantities of water. Water use distinguishes between ‘blue’ water (surface water or groundwater consumed or evaporated during irrigation, industry processes or household use) and ‘green’ water (rain water stored in the soil, typically used to grow crops) (Hoekstra et al., 2012).

To produce all clothing, footwear and household textiles purchased by EU households in 2020, about 4,000 million m³ of blue water were required, amounting to 9m³ per person, ranking textiles’ water consumption in third place, after food and recreation and culture (see Figure 4).

Additionally, about 20,000 million m³ of green water was used, mainly for producing cotton, which amounts to 44m³ per person. Blue water is used fairly equally in producing clothing (40%), footwear (30%) and household and other textiles (30%). Green water is mainly consumed in producing clothing (almost 50%) and household textiles (30%), of which cotton production consumes the most.

Water consumption for textiles consumed in Europe mostly takes place outside Europe. It is estimated that producing 1kg of cotton requires about 10m³ of water, typically outside Europe (Chapagain et al., 2006).

Land use
Producing textiles, in particular natural textiles, requires large amounts of land. The land used in the supply chain of textiles purchased by European households in 2020 is estimated at 180,000 km², or 400m² per person. Only 8% of the land used is in Europe. Over 90% of the land use impact occurs outside Europe, mostly related to (cotton) fibre production in China and India (ETC/WMGE, 2019). Animal-based fibres, such as wool, also have a significant land use impact (Lehmann et al., 2018). This makes textiles the sector with the third highest impact on land use, after food and housing (see Figure 5). Of this, 43% is attributable to clothes, 35% to footwear (including leather shoes, which have a high land use impact because of the need for cattle pasture) and 23% to household and other textiles.

Greenhouse gas emissions
The production and consumption of textiles generate greenhouse gas emissions, in particular from resource extraction, production, washing and drying, and waste incineration. In 2020, producing textile products consumed in the EU generated greenhouse gas emissions of 121 million tonnes carbon dioxide equivalent (CO₂e) in total, or 270kg CO₂e per person. This makes textiles the household consumption domain responsible for the fifth largest impact on climate change, after housing, food, transport and mobility, and recreation and culture (see Figure 6). Of this, 50% is attributable to clothes, 30% to household and other textiles, and 20% to footwear. While greenhouse gas emissions have a global effect, almost 75% are released outside Europe, mainly in the important textile-producing regions in Asia (ETC/WMGE, 2019).

About 80% of the total climate change impact of textiles occurs in the production phase. A further 3% occurs in distribution and retail, 14% in the use phase (washing, drying and ironing), and 3% during end of life (collection, sorting, recycling, incineration and disposal) (ECOS, 2021; Östlund et al., 2020).

Textiles made from natural fibres, such as cotton, generally have the lowest climate impact. Those made from synthetic fibres (especially nylon and acrylic) generally have a higher climate impact because of their fossil fuel origin and the energy consumed during production (ETC/WMGE, 2021b; Beton et al., 2014).

3. Design as an enabler of circular business models for textiles
To reduce the environmental and climate change impacts of textiles, shifting towards circular business models is crucial to save on raw materials, energy, water and land use, emissions and waste (ETC/WMGE, 2019). Implementing and scaling circular business models requires technical, social and business model innovation; as well as enablers from policy, consumption and education (EEA, 2021).

Circular design is an important component of circular business models for textiles. It can ensure higher quality, longer lifetimes, better use of materials, and better options for reuse and recycling. While it is important to enable the recycling and reuse of materials, life-extending strategies, such as design for durability, ease of reuse, repair and remanufacturing, should be prioritised. Preventing the use of hazardous chemicals and limiting toxic emissions and release of microplastics at all life cycle stages should be incorporated into product design.

Designing for circularity is the most recent development in design for sustainability. Expanding a technical and product-centric focus to a focus on large-scale system-level changes (considering both production and consumption systems) shows that this latest development requires many more disciplines than traditional engineering design. Product design as a component of a circular business model depends on consumer behaviour and policy to realise its potential and enable implementation. Figure 7 shows the linkages between the circular business model, product design, consumer behaviour and policy. All are needed to slow down and close the loop, making it circular.

• Interview with Michael Steidle, Managing Director Textildruckerei Heinrich Mayer GmbH

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.
Textination talked to three company representatives along the textile chain about personal and operational experiences.

The Interview with Michael Steidle, managing director at the textile printing company Heinrich Mayer GmbH, marks the provisional end of our series that started with Wolfgang Müller, Head of Sales & Services at Mayer & Cie. GmbH & Co. KG and was continued by Andreas Merkel, managing director of Gebr. Otto Baumwollfeinzwirnerei GmbH & Co. KG. The textile printing company Mayer, a family business on the Swabian Alb, is a leader in textile printing, in screen, rouleaux, rotary, sublimation and flock printing and as well as in 3D coating. They are increasingly using these skills in the area of technical textiles.

How have you felt about the corona era to date - as a company and personally?
What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
 The corona time hit us hard. At the beginning of April, sometimes it felt like the lights would go out within the next 24 hours. In numbers there is a drop in sales of 30 percent.
And that's not just the way we are, this crisis has incredibly broader implications. Involved in the word of the Chamber of Commerce I am concerned with many companies in the region. Sectors that would not come to mind spontaneously also feel the effects. This also includes recycling companies. After all, there is also less commercial waste when companies are on short-time work.
At a personal level you can deal with the crisis, hand hygiene, sneeze etiquette, you can learn all of this. But we miss people-to-people contacts. We have a teenage daughter; young people in particular lack the ability to be out and about with their peers.

 
What has the pandemic meant for your company so far?
As I said, the Corona period brought us a significant drop in sales. That means we think twice before spending money. At the beginning of the year we moved to our new, spacious company building. There are still a few small investments to be made. So far, we have put it off until the situation has calmed down again. And so do many. The economic network extremely got out of hand due to the lockdown.
We applied for short-time work, which has been running for three months now. However, you have to see how long that makes sense. Our customers also had a drop in sales, which they first of all have to recover.

 
What adjustments or innovations to your product portfolio have you felt obliged by the pandemic to undertake?
The mask production was a very strong topic in April and May, the phone almost rang continuously. This enabled us to compensate for many orders that were lost otherwise.
We reacted quickly, not only printing masks classically, but also developing coatings for medical face masks and protective clothing. The coatings that we offer are antibacterial and have the lotus effect. This results in the formation of droplets in the aerosols. We have had checked and certified these innovations in an urgent procedure.
We converted our machines ad hoc so that we could apply innovative coatings instead of paint. This was even possible for ready-made masks.
In general, I rate this ability to react quickly as one of our great strengths. We are a small company, so the path from idea to implementation is rather short. If we recognize a trend, an opportunity in our industry, we examine ourselves: Do we have resources that could be used or adapted to offer a solid, marketable solution in a very short time? This refers to know-how, ideas, machines and, for larger projects, also partners. Experience has shown that on the one hand we have the necessary imagination, but on the other hand we also have a fairly realistic view of ourselves. If we can answer the question with “yes”, then we get started without delay. We can evaluate a trial in the evening and continue working on it the next day. There is no need for a meeting with five persons beforehand.
 

What are your views on global supply chains in the future, and will you be drawing consequences for your procurement policy?
We cannot avoid global supply chains; and it will remain this way. In the short term, you may reflect on regional procurement, as far as that is still possible. Many things are simply no longer available and the development over the past 30 years cannot be turned back. Let's take pigment paint: it comes from India and China, otherwise it doesn't exist anymore. Nobody in Europe can keep the prices. And yes, that also means that the production of systemically relevant products can no longer be guaranteed.

          
How do you rate the importance of partnerships within the industry in the future? Does Covid-19 have the potential to promote the creation of new cooperation arrangements in the industry? Or have they already taken shape?
Existing partnerships are important. We must keep the ball rolling: Interrupted projects have to be continued with existing partners.
I think it is important to maintain partnerships at eye level. Sure, now everyone has to see how they can make ends meet. It will be shown, however, who works loyally in the long term and with respect to the business.
Personally, it is important for me to be true to my word. Only a few days ago I spoke to a student, whom we promised her internship and a corresponding payment in February. This young woman can start her internship with us; what paying is concerned, I had to tell her honestly that we have to talk about it again. Fortunately, that was not a problem. It is important to the student that she can complete the required internship at all. This is not so easy since most companies do not accept anyone right now. That is understandable too, but we will need the well-trained people again soon, that’s for sure!

 
What initiatives or approaches for your industry would you welcome for the near future?
I would be very interested in a positive and comprehensive description of what value added is still available in Germany. An initiative that illustrates that the textile industry is an important industry, with many companies that have been family-owned for generations, often with a young, dynamic management and high-quality products. Really nobody has that on his radar. Just today, two designers from a company nearby visited us. They were surprised which services we offer in the field of technical textiles - they were not even aware of it.
The textile industry has played itself down for a long time, that has to stop. Of course, we no longer have added value like the machine building industry. But now, in the corona crisis, it would have been the right time to take advantage of the situation and to initiate much-needed lobbying..

What would you like to see as part of the German textile industry? Do you feel that the status of the German textile industry has changed as a result of the pandemic, especially in respect of public procurement?
No, only at very short notice. Everything was taken during the crisis, the main thing was that the requested product, i.e. masks and protective clothing, was even available. Now the old cycle is back: I have a certain budget, where can I get the most for it? This is frustrating because the willingness to face this challenge was high on the part of the companies.
We also have driven the development and had our coatings for masks certified in an urgent process. Others have switched their entire production at a significant cost to meet demand. Nobody became a millionaire this way.
I think the textile industry could have sold better here. We could and should have appeared better as noble knights. Unfortunately, this was lost in the heat of the battle.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. Where do they stand now and how must we rate them against the backdrop of the Covid-19 pandemic?
We take sustainability into account with our certifications, with GOTS and ISO 9001. Digitisation does not work quickly for us; it will take years before we can digitise processes. Sure, in administration we are now increasingly working with web meetings and video conferences, but personal contact is important to me. I regularly give lectures; my next one will be at the Zurich University of Applied Sciences and I very much hope that it can take place. I am just a guy for direct contact.
The labour market situation depends on the pandemic and how it develops. In any case, it remains difficult to get young people excited about textile professions. When I open a mobile phone store, I don't need a day to have my employees together. When we present ourselves at a training fair, we are happy to have a handful of good conversations.
Training is so valuable. Someone who has one will always have a different status than an unskilled person, even if - at some point - he works in a completely different branch. The dual training system is absolutely untouchable for me, because we live from this economic performance. We have nothing else but our knowledge. And we have to keep developing because only the high level gives the necessary output.
 

What lessons are to be learnt in respect of these targets for the post-corona era?
Innovation, innovation, innovation. You must not stand still. Nobody knows what to do next. But in three years from now I have to live from what I am developing today, just like I live from what I developed three years ago. Now, in times of Corona, it is much harder to remember, but it does not help: I can’t stand still, waiting for what is happening next, being like a deer caught in the headlights.

This interview was conducted by Ines Chucholowius, CEO Textination GmbH

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

The 4th edition of the Show is gearing up incorporating DIGITEX Show highlighting the developments and innovations taking place in the digital textile printing technology, which is eventually picking up fast in the apparel manufacturing industry across the country. More than 20,000 enthusiastic visitors are expected to witness the latest developments during the three days of extreme business activities. They would not only take a glimpse of what new has hit the turf in the digital textile printing, but will also experience the newest technologies through various live demonstrations that the leading brands catering to the solution for soft signage and sublimation printing would put on the display.

The transformation in digital technologies over the past few years has been tremendous, which the organisers found important to bring forth under the DIGITEX @ Gartex Texprocess 2019. The advancement in technologies and rapidly increasing awareness has brought it at a revolution of sorts. Digitex hopes to become a one-stop solution hub for the latest machinery, inks, software and services to serious buyers and decision makers of the digital textile printing industry. The Show would also witness renowned brands offering live demo of their respective machines to let the visitors feel and appreciate the development taking place in the fabric digital printing arena which is slowly but steadily picking up.

Ever since direct to garment (DTG) printing has been introduced, textile printing industry has started finding new horizons with a fast and flexible production solution that delivers exceptional image quality, which in turn is opening up new doors of opportunities for those who are willing to enter into the apparel industry or are eager to expand their garmenting & textile business. Digitex @ Gartex Texprocess India is an important event for the digital printing technology leaders as it offers them the perfect Launchpad as far as Indian market is concerned.

Moreover, experts feel that increasing thrust and resultant R&D investment in progression of digital textile printing technology will further boost the growth avenues for the digital textile industry in near future. Meanwhile, increasing popularity of polyester as an alternative to cotton as a textile fabric further creates opportunities for digital textile printing equipment providers to expand their business. Attributing to such significant demand for digital textile printing technology, there is scope for manufacturers to enhance their business in time to come.

Many leading names like ColorJet India, Fortuna Colours & Prints Llp, Apsom Technologies, Kornit Digital, True Colors Group, Epson India, Jaysynth Dyestuff (India) Ltd., etc. are lined up with their new arrivals and eagerly awaiting the Show dates to launch their latest printers. Featuring continuous production and a wide range of printing capabilities, most of these new age digital textile printers work on minimal maintenance and come with easy cleaning options for smooth operation. All these activities clearly evince that overall textile printing technology market has positive growth prospects, riding on the back of the country’s burgeoning textile industry.

Companies like Arrow Digital, AT Inks, Britomatics, Cosmic Trends, DCC Print Vision Llp, E.I.DuPont India Pvt. Ltd. Electronics For Imaging India Pvt. Ltd. (Efi Optitex), Epson India, Fortuna Colours & Prints Llp, Ganpati Graphics, Grafica Flextronica, Green Printing Solution, Green Tech, Hi Tech Marketing, HP India Sales Pvt. Ltd., Jay Chemicals Industries Ltd., JN Arora & Co., Kamal Sales Corp., KNR Technology Company, Mac Printing Solutions, Mouvent, Negi Sign Systems & Supplies Co., Orange O Technology Pvt. Ltd., Somya Digital Technologies, Spintex Pvt. Ltd./Aura, Tanya Enterprises, Texzium International Pvt. Ltd./Wenli, Veekay Enterprises, & many more are coming up with their technological innovations to showcase their latest product range under the DIGITEX.
 
The extensive exhibit profile ranging from new printers and inks to upcoming techniques will explore new and exciting opportunities offered by digital printing for home furnishing & interior decoration, apparel & fashion and corporate interiors. On the display will be digital textile machinery, digital textile printing machines, dye sublimation process, screen printing machines, t-shirt printing machines, transfer printing process, digital textile printing chemicals, digital textile printing inks (disperse, reactive and pigment inks), heat transfer machines, sublimation paper, software & many more.

Moreover, it’s a great opportunity for digital printing companies, signage industry stakeholders, screen printing industry people from graphic arts industry, merchandisers and other industry players to interact with the leading digital printing technology suppliers and to witness the latest range and innovations in the sector. This is because following the advent of digital printing solution, the applications of fabric or textile is not limited only to the clothing and home furnishing, but has gone far beyond to include signage, flags, posters, back-lit, front-lit, etc. to bring forth a wholesome idea that where all digital textile printing technology can be used.

Points to be noted are numerous benefits of soft signage. Textile or soft signage presses are very eco-friendly, run over water-based inks with little to no odour and low power consumption. Soft signage facilitates customers save on shipping because of being much lighter in weight than other materials used in the signage and graphics industry. Also, fabric-printed signs fold up to create smaller packages, again decreasing shipping costs. But overall, the Show would be a win-win for business visitors as it has much more than focusing on digital printing technology, bringing entire value chain of garmenting and textile printing manufacturing solution under one roof.

Organised by the MEX Exhibitions Pvt. Ltd. in association with Messe Frankfurt India, Gartex Texprocess, this year, will have three more shows apart from the Digitex. These are namely, FABRIC & TRIMS SHOW: A focused area to source all embellishments & fabrics, DENIM SHOW: A zone that aims to bring together the denim supply chain under one roof, and INDIA LAUNDRY SHOW: An ideal platform offering a wide range of business and networking opportunities to manufacturers, suppliers and service providers in the laundry and dry-cleaning industries.

Additionally, there are a couple of focus areas i.e., EMBROIDERY ZONE highlighting the significant evolution that has been taking place in the invention of new technologies and machinery for embroidery. The top variants of embroidery machines, software & allied products will be highlighted in this dedicated segment. Another focus area is GARMENTING & APPAREL MACHINERY that would showcase technological developments in the Garment & Apparel Manufacturing Sector.

Broad exhibit categories at Gartex Texprocess 2019 include embroidery machines, cutting and sewing machines, fabrics & accessories, needles & threads, laundry & washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software.

• The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

However, the international competitiveness of the sector is currently declining. This trend should turn around. Prime Minister Imran Khan met with representatives of the textile industry at the end of January 2019. Economic policy aims to expand and modernize the textile industry. Production costs are to be reduced and productivity increased. In addition, quality improvements, production expansions and higher added value are necessary.

The textile industry's value chain begins with around 1,300 companies that are ginning, process and bale raw cotton. In addition to the demand for cotton, the demand for synthetic fibers is also increasing, although there are only three manufacturers of polyester fibers in Pakistan to date.

The number of spinning mills is estimated at 517 in 2017 and the number of weaving mills at 124 large and 425 medium-sized and small mills. Ten large and 625 medium-sized and small companies process fabrics. Towels were produced by about 400 companies, knitted fabrics by 2,500 companies. Clothing made of woven fabrics was supplied by 50 large factories and 2,500 medium-sized and small factories.

Export transactions stagnate
Pakistan's textile exports grew by 8.7 percent to USD 13.5 billion in 2017/18. This level was already reached in 2013/14 and 2014/15. Textile exports in the first seven months of fiscal year 2018/19 (July 18th to January 19th) increased slightly by 1.2 percent year-on-year to US$ 7.8 billion.

^*) Fiscal years (July to June)

Sources: All Pakistan Textile Mills Association (APTMA); Pakistan Bureau of Statistics; Textile Commissioner's Organization

The All Pakistan Textile Mills Association (APTMA) aims to increase exports to USD 28 billion by 2023/24. This requires consistent state support and long-term export promotion, according to the association.

The leading foreign customer is the USA. Other important customers include the United Kingdom, Germany and Spain. In 2017 and 2018, Germany imported textile materials and goods worth EUR 1 billion from Pakistan.

Machine imports still declining
Imports of textile machinery in 2013/14 amounted still to USD 599 million. In the following three years it was USD 449 million (2014/15), USD 462 million (2015/16) and USD 557 million (2016/17). Imports are not currently showing an upward trend despite the need for modernization. According to the statistics authority, they fell by 42 per cent to USD 325 million in 2017/18. There are still no signs of a recovery in 2018/19 either.

Sources: Pakistan Bureau of Statistics, UN Comtrade

Business trip to the fifth largest customer of German spinning technology
According to calculations by the German Engineering Federation (VDMA), German textile machinery exports to Pakistan increased to EUR 53 million in 2017. The previous year's figure was EUR 48 million, EUR 39 million of which was attributable to spinning machines.

A business trip of German companies from the textile machinery and accessories sectors will take place to Karachi and Lahore from November 11th to 15th 2019. The Federal Ministry of Economics and Energy will promote and the company SBS Systems for Business Solution will organize the trip (contact: Thomas Nytsch, e-mail: thomasnytsch@sbs-business.com).

Cotton production to be strongly increased
The local cotton production is the base of the textile industry. After India, China and the USA, Pakistan is the fourth largest cotton producer, followed by Brazil and Uzbekistan. Without an increase in local crop yields, the growth of the textile industry is limited. Increased imports of cotton would further reduce the industry's struggling international competitiveness.

In an international comparison, the country is one of the cotton producers with the lowest yields per hectare. Australia, Turkey, China and Brazil form the leading group with about 1,600 to 1,700 kilograms per hectare. Pakistan only reaches 600 to 800 kilograms.

¹⁾ one bale = 170 ^{kilograms, 2)} Forecast
Source: Pakistan Bureau of Statistics; research by Germany Trade & Invest

The government has set a production target of around 15 million bales for 2019/20. APTMA believes an increase to 20 million bales is possible by 2023/24. The association assumes that there will be about 2,800 hectares of cultivated land and an increase in yields per hectare to 1,200 kilograms.

Problems with the supply of cotton

Baumwolle wird vor allem in den Provinzen Punjab und Sindh angebaut. Die Baumwollproduktion erreichte 2014/15 noch rund 14 Millionen Ballen. Die Ernte fiel 2015/16 auf unter 10 Millionen und lag 2017/18 bei 12 Millionen Ballen. Die Produktion ist 2018/19 wieder gesunken, ein Wert von etwa 11 Millionen Ballen wird prognostiziert. Als Gründe werden unter anderem Wassermangel, eine schlechte Qualität der Pflanzenschutzmittel und minderwertiges Saatgut genannt. Zudem sei die finanzielle und regulatorische Unterstützung der Regierung unzureichend, so Branchenvertreter.

The local supply could therefore no longer cover the annual cotton demand of the textile industry of 15 to 16 million bales in recent years. Textile manufacturers therefore imported cotton mainly from India and China, about 3 million to 4 million bales a year. However, imports from India have been stopped since February 2019. The background to this is the political tensions and recent military conflicts between the two states.

• Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

The Turkish textile industry is broadly based: Companies manufacture all intermediate products in the country, including yarns, fibers and fabrics. Production along the entire textile value chain means great sales potential for German suppliers of textile machinery. In fact, Turkey is the second most important export market for German spinning, weaving, textile finishing machines and the like after China, as it can be seen from the figures of the Federal Statistical Office Destatis.Nevertheless, the sector is not a growth market. Apart from a few outliers upwards and downwards, Turkish textile machinery imports have remained at the same level for several years. This is due to the fact that Turkish exports of textiles and clothing are also stagnating. Particularly noticeable: companies benefited only marginally from the weak lira last year.

Source: Turkish Statistical Office TÜIK (http://www.tuik.gov.tr)

Increasing pressure from the Far East
Turkish clothing manufacturers are increasingly feeling the effects of competition from the Far East. Despite the high number of informal workers, wages in Turkey have risen to such an extent that they cannot keep up with the low wages of Asian sewing factories. The geographical advantage of Turkish companies over Chinese competitors is at stake because of the new Silk Road and the development of faster transport routes. Free trade agreements that the European Union is currently negotiating with India and South Korea will further increase the pressure on Turkish producers.

Slump in 3rd quarter 2018
In addition, there is the difficult economic situation in the country: the Turkish lira reached a record low, especially in the months of August to October 2018, and commercial banks raised their lending rates. As a result, financing costs for machinery from abroad suddenly increased, orders from Turkey failed to materialize, especially in the third quarter. The German knitting machine manufacturer Mayer & Cie has also noticed this, as Stefan Bühler, who is responsible for the Turkish business, reports: "In the last three months of 2018, the market was virtually dead. In the meantime, however, the industry is gradually recovering.

Akar Textile plans new factory
Announcements about new investments cannot yet be heard at this time. As early as June 2018, Akar Textile (http://www.akartextile.com) announced that it would build a new factory for 47 million Turkish lira (TL) in the municipality of Savur in southeastern Turkey. 3,000 employees are there to become employed. Akar Textile produces for companies such as C&A, Mango and H&M. Only a few months after the announcement of the project, the economic crisis in Turkey deepened in September. The extent to which the turbulence has affected the project implementation is not known.

Technical textiles as a driving force for growth
Far Eastern competition is increasing the pressure to modernize the Turkish textile industry. In the future, industry will have to compete primarily with high-quality products. Growth impulses are currently coming from the sector of technical textiles. According to industry reports, more than 200 small and medium-sized enterprises are already producing technical textiles and nonwovens in Turkey. These textiles and fabrics are being used in the automotive, packaging and cosmetics industries.

In June 2018, the Turkish METYX Group (http://www.metyx.com) invested in its machinery parc. The company is manufacturing technical textiles and has ordered a line of warp knitting machines from the German textile machine manufacturer Karl Mayer. The manufacturer of composite materials is thus increasing its capacity by 12,000 tons of glass and carbon fibers. In recent years, more and more research and development centers have emerged to promote the necessary technology transfer in the industry. The Institute for Technical Textiles at RWTH Aachen University (ITA) founded a research center in Istanbul in October 2016. In the Teknosab industrial zone in Bursa the BUTEKOM research and development center for textile technology was established in 2008. The institute offers training as well as research and development cooperation to and with companies.

However, many medium-sized textile companies often lack the money to invest in modern machinery. The short planning horizon makes an access to research and development more difficult. As a member of the management board of the German-Turkish Chamber of Industry and Commerce, Frank Kaiser has been observing the Turkish business landscape for eight years. He points out that the textile manufacturers, like other medium-sized companies in the country too, often plan in short terms. "In view of the volatile business environment, this is rational," Kaiser explains.

¹⁾ the slump in the 3rd quarter is not yet visible in the annual figures for 2018; it will not become noticeable until 2019
Sources: UN-Comtrade, TurkStat ²⁾, Bundesbank

• AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

Beijing (GTAI) - The Chinese apparel industry is repositioning itself. Increased wage costs force more automation, more customers demanding more quality.
Nowhere else in the world so much clothing is being produced as in China. According to the sector portal http://www.ask.com, alone 22.9 billion pairs of socks were being produced in 2017. This was 4.8 percent more than in the previous year, and the production of jeans amounted to more than 0.6 billion pieces according to information from http://www.chyxx.com, an increase of 5.0 percent.
China is not only the world's largest production nation, but also by far the world's largest export nation in the sector. However, countries such as India, Vietnam, Bangladesh and Cambodia are catching up enormously due to lower wages. As a result, China - measured by its share of world clothing exports - has lost around 5.5 percentage points since 2013, down to only 32.4% in 2017.

¹⁾ SITC Pos.84; ²⁾ Partially estimated on the basis of information provided by the ITC
Source: UN Comtrade, GTAI calculation.

By contrast, Bangladesh (+3.7 points), Vietnam (+2.0 points) and Cambodia (+1.3 points) in particular recorded gains in the period from 2013 to 2017. In absolute terms, Chinese apparel exports fell by 15.6% to USD 157 billion since the record year of 2014 (USD187 billion). No improvement is in sight as exports are stagnating in 2018.

¹⁾ SITC Pos. 84; ²⁾ partly estimated on the basis of ITC data; 3) excluding Laos and Brunei
Sources: UN-Comtrade; ITC; GTAI calculation

Rising wage costs as investment driver
Due to rising personnel costs throughout the country, manufacturers were and are under considerable cost pressure. With an average hourly wage for a Chinese worker of the equivalent of around USD 5.2 (2017), China has not only left classic emerging markets such as Thailand (USD 2.3) or Mexico (USD 3.9) behind - not to mention India with USD 0.8 - but is already approaching individual European countries (e.g. Greece 2016: USD 6.0).

Companies have met and continue to meet this challenge through increased automation. Between 2015 (9.1 million) and 2017 (7.8 million) alone, the workforce of the textile and clothing industry shrank by 14.3 percent - according to the Chinese statistical office. More and better machines make it possible to say goodbye to the previous labor-intensive production - and thus lower cost pressure with more precise and faster execution. Imports of textile machinery are also benefiting from this. These rose in 2017 by a whopping 34.1 percent year-on-year to nearly USD 3.9 billion.

Germany no longer number one textile machinery supplier
Although Germany lost its position as most important supplier country for textile machinery to Japan, it was still able to increase its deliveries by 28.3 percent to USD 1.1 billion. This corresponded to a supply share of 28.3 percent. Japanese manufacturers achieved a ratio of 30.0 percent with just under USD 1.2 billion (+52.8 percent). Competition from Italy came to only 11.5 percent. The good performance is remarkable due to the fact that a number of German textile machine manufacturers have invested heavily in recent years in the region in order to be able to meet the wishes of Chinese customers more effectively.

^*) SITC-Pos. 724
Source: UN-Comtrade; GTAI calculation

Due to the high pressure to modernization Chinese textile machinery imports in the first seven months of 2018 increased by almost 15 percent compared to the previous period. German machine manufacturers in particular benefited from this development, with deliveries increasing by 30 percent in the same period. As Japanese exports of textile machinery to China stagnated at the same time, German manufacturers are likely to take the lead again in 2018.
As the garment exports come under such severe pressure, the industry is now increasingly geared towards the local market. Whereas ten years ago about half of the value of production was exported, today it is only about a third. In fact, the Chinese spent an average of around 4.8 percent of their disposable income or 1,238 Renminbi (RMB; around 183 US dollars; 1 USD = 6.7531 RMB, annual mean rate of 2017) on clothing in 2017, according to the Chinese Statistical Office. With an average disposable annual income of 25,974 RMB and a population of 1.39 billion, this translates into a market volume of approximately USD 255 billion.

China's consumers demand quality and design
This makes the Chinese clothing market one of the largest in the world - and one that is becoming increasingly diversified. Local offerings range from the cheapest mass-produced goods, qualitatively and visually appealing products in the mid-price segment up to luxury and haute couture. Much has changed in the upper price segment in particular. "In the past, the Chinese exported the best qualities, but today they keep them for themselves," says a British sourcing expert who has been working in the Kashmir business for decades, describing the development.

In general, Chinese consumer demand is becoming increasingly sophisticated and differentiated. In addition to the tendency towards recognized brands, an increasing individualization of consumption can also be observed. The question is what fits well, pleases and is also somehow "special". "People in the North used to buy cashmere clothes because they warmed well," explains Cheng Xudong, president of the private Dongrong Group. The design was of secondary importance - and accordingly most of the pieces were "old-fashioned".

"Today, cashmere clothes also look very good," Cheng adds. "That's why it's bought not only in the north, but also in the more southern parts of the country." In general, the middle class in particular is looking for a high-quality lifestyle - and clothing is a part of it. The entrepreneur is convinced that if the textile and clothing industry succeeds in adapting to the higher quality demands of local customers through a technical upgrade and improved design, then the industry will continue to do well in the future.

Additional information
Further information on the economic situation, the sectors, business practice, law, customs, tenders and development projects in China can be found at http://www.gtai.de/china The website http://www.gtai.de/asien-pazifik provides an overview of various topics in the region.

• Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

In the 2016/17 fiscal year (April 1st to March 31st), India's government initiated a number of fundamental reforms such as the introduction of the nationwide Goods and Services Tax (GST) and a partial currency devaluation. These measures are intended to advance the economy as a whole in the medium to long term, but have led to uncertainty and difficulties in individual sectors, including the textile industry. Added to this are high cotton prices. The government is now trying to help the industry with individual measures. It remains to be seen whether these will be sufficient and lead to a sustained improvement. Finally, there are structural weaknesses which are also slowing down the growth of the Industry.

"The by the introduction of GST caused dent and monetary depreciation has now been overcome. However, the structural problems remain, so that no fundamental changes in the textile industry are to be expected", according to the assessment of a German supplier with many years of experience in India in talks with Germany Trade & Invest (GTAI).

Government launches aid measures
However, some government measures should provide relief. At the beginning of August 2018, import duties on 328 textile products, especially fabrics and nonwovens, were increased from around 5 to 10 percent to up to 20 percent. Also, at the beginning of the month, the Executive Board introduced four bills to amend the general VAT Act introduced on July 1st 2017. This should make refunds, for example of taxes on intermediate products, easier and faster. The introduction of GST and the delays in reimbursement have put particular pressure on the liquidity of small and medium-sized companies, which make up the bulk of textile companies. For example, the denim industry temporarily had to take 25 to 30 percent of its capacity out of production after the tax introduction.

 Also, the Ministry of Textiles wants to strengthen the to it entrusted weakening industry. At the beginning of August 2018, for example, it added changes to the Technology Upgradation Funds Scheme (TUFS), which has been in existence since 1999. This now expanded technology promotion program allows cooperative banks to provide financing to textile companies for technological improvements. They also become accessible for liability partnerships. Of the approximately USD 1.1 billion, that the central government budget is holding for the textile industry in the fiscal year 2018/19, one third, 14 percent more than in the previous year, are intended for the TUFS. Manufacturers of synthetic fibers and the clothing industry in particular are likely to benefit from this, according to industry sources.

The existence of an own Ministry of Textiles shows how important this industry is for India, not only as a source of foreign exchange, but also as an employer. The entire sector, from spinning mills, weaving mills to clothing and other finished goods, contributed around 14 percent to value creation in the manufacturing industry and 13 percent to foreign exchange revenues in 2017, and employs directly 40 million and indirectly 60 million workers.

As one of the world's leading producers of cotton, jute and silk, India has comparative advantages in the textile sector and can look back on a long tradition in processing. Accordingly, cotton is the main raw material in yarn and fabric production. After all, 5.7 billion tons of yarn were spun in 2016/17, achieving an annual average increase of 3.1 percent between 2011 and 2017. The weaving mills processed 63.5 billion square meters of fabric in 2016/17, after 61.7 billion in 2011. The proportion of cotton fabrics rose from 51 to 61 percent in 2011 to 2017. The remaining part is accounted for approximately equally by synthetic and blended fabrics.

 
Production and export growth come to a halt Based on the previously strong growth the government is optimistic. According to forecasts by the Ministry of Textile, India's textile and clothing industry is expected to more than double its sales between 2015 and 2021. Exports are expected to increase from USD 35 billion to USD 82 billion, after doubling in the period from 2006 to 2014 from USD 17.6 billion to USD 37.6 billion. After that, however, they stagnated and, at USD 35 billion in 2017/18 and missed the by the government set target by USD 10 billion. The production of textiles and clothing declined from 2015 to 2017. It is unlikely to improve in 2018.

¹⁾ Financial years from 1 April to 31 March; ²⁾ Provisional data for 2016/17 and 2017/18
Source: Statistical Office India
     

Clothing industry needs to modernize 
India's textile industry has cost advantages over industrialized countries and advanced emerging countries such as China. Smaller developing countries, however, have become well-known competitors in the meantime and have partly surpassed India in terms of clothing. So Bangladesh and Vietnam exported more clothing than India. In addition there is growing competition from other low-wage countries such as Cambodia, Sri Lanka and Indonesia. Some of these countries have free trade agreements with the EU, while India has difficulties in negotiating them. The smaller competitors have also geared their clothing industry to exports and modernized it accordingly. After all, they do not have significant local markets. The Indian textile manufacturers are different: If there is not enough quality for export, the domestic market, which has a population of 1.3 billion inhabitants and is growing strongly, is still there, industry representatives explain to GTAI.

India's apparel industry therefore still has a considerable potential for modernization and requires new production technologies, particularly to improve operating efficiency. Other structural weaknesses include strong wage increases with insufficient productivity growth and a shortage of well-trained skilled workers. Other disadvantages are the fragmentation of the clothing industry - many companies lack size - and the lack of adaptation to global fashion trends. While the fashion world is more prone to fiber mixed fabrics, the Indian clothing is not yet following this trend. There is a lack of product diversification.

The spinning and weaving sector looks more modern. Industry experts attest to it a leading international position in terms of size, technology, productivity, quality and price. This is also evident when importing machines. India was the most important export market for German spinning machines to China in 2017 and the fifth largest market for weaving machines, according to the Textile Machinery Association of the German Engineering Federation (VDMA). In textile finishing machinery, India does not rank among the top six export markets, but its competitor Bangladesh does.

Double-digit growth in foreign direct Investment 
Foreign investments in the Indian textile industry are welcome and 100 percent foundations by foreign companies are welcome. On promotional trips to countries such as Japan, Germany, Italy and France, India is actively attracting investors and has not been unsuccessful. The inflow of foreign direct investment into the textile sector, including dyed and printed textiles, amounted to USD 2.7 billion between April 2000 and September 2017. Cumulative investments increased by an annual average of 17.3 percent between 2010 and 2017. However, the bulk of the investment is being stemmed by national Indians. Total investments in India's textile sector from June 2017 to May 2018 amounted to USD 4.2 Billion.

• Rising numbers of visitors and exhibitors
• Internationalization is progressing 

• Textile companies comparatively broadly placed 
• Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

 
The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs 
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before. 

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems 
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions 
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to   mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD  300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

• One in two trade visitors came from outside Germany
• The top 30 global retail chains were in Cologne
• Cologne expands its position as the global capital for interior design

imm cologne and LivingKitchen have achieved a record number of visitors this year. "We met our target and have broken the 150,000-visitor mark," said Gerald Böse, President and Chief Executive Officer of Koelnmesse GmbH, who is delighted with the results. Roughly every second trade visitor came from outside Germany, with foreign trade visitors accounting for nearly 50 per cent. "That shows we are right on track with our drive to internationalise the events," Böse continued. Dirk-Uwe Klaas, Managing Director of the Federal Association of the German Furniture Industry, was similarly pleased with the figures. "The Cologne furniture show was a wonderful summit for interior decor. The German furniture industry is completely satisfied with imm cologne. It was the ideal start to 2017, which will no doubt be an excellent year for the industry," said Klaas.

On behalf of retailers, the President of the German Federal Association of Furniture, Kitchens & Furnishing Retailers (BVDM), Hans Strothoff, gave the following verdict: "The trade fair met retailers' expectations. The quality of the exhibitors was high; a large number of new launches were on show, and visitors had a chance to experience attractive product presentations. This makes a visit to the trade fair well worth its while. And it's why retailers also see the trade fair as a fantastic way to launch the 2017 furniture year."

Of the 104,000 trade visitors, around 56,000 came from Germany and approximately 48,000 from abroad (an increase of 4 per cent). Within Europe, increases in visitor figures were recorded in particular from Spain (up 25 per cent), Russia (up 26 per cent), Italy (up 19 per cent) and the UK (up 13 per cent). Visitor numbers from the Netherlands and Poland also increased. Numbers of overseas trade visitors rose, in particular visitors from China (up 5 per cent), South Korea (up 12 per cent) and India (up 5 per cent). A rise was also recorded in visitor numbers from the Middle East  (up 19 per cent), with particularly strong growth from the United Arab Emirates. With these excellent numbers of foreign visitors, the two trade fairs will boost exhibitors' exports.

Koelnmesse Chief Operating Officer Katharina C. Hamma emphasised the quality of the trade visitors: "No other event brings supply and demand together as effectively in this quality as imm cologne and LivingKitchen." Initial evaluations of the results showed that the trade visitors included large numbers of the global top 30 retail chains, such as John Lewis, Home Retail Group, Harveys Furniture -all from the UK - as well as Conforama from France and Nitori from Japan. The major industry players in online retail - including Amazon and the Otto Group - also used the event intensively for their businesses. With these results, the trade fair duo has confirmed its importance for the interior design industry's global commercial operations on a national and an international level.

LivingKitchen closes with good results

In parallel with the world's most important furnishing fair, imm cologne, the international kitchen event LivingKitchen took place this year. For the seven days of the event, 200 exhibitors from 21 countries - including around 50 first-time and returning exhibitors - showed how much innovation the industry has to offer and how high its standards of design and quality are. This year's LivingKitchen not only followed on seamlessly from its success in 2015, but significantly improved on the key figures in many areas. "For us, LivingKitchen 2017 was a complete success. The world's best-performing kitchen industry needs a leading international trade fair in Germany. Our industry presented an outstanding showcase, and we are convinced that the trade fair will significantly boost demand for kitchens, nationally and internationally," said Kirk Mangels, Chief Executive of the Modern Kitchen Working Group e.V. (AMK). A great number of positive comments were received on the event's concept, which is aimed at both business and the general public. When asked about the event's added value, many exhibitors mentioned the fact that Cologne is the only trade fair where they can present their products in the context of a globally oriented interiors show. "LivingKitchen in Cologne is on an excellent course. We will analyse the results right after the trade fair to see how we can work together to continue to develop the event," said Mangels. But it was not just the exhibitors' innovative products that attracted a highly diverse audience interested in the latest kitchens and good food - the cooking events and large cooking shows also drew visitors to the trade fair on the public days.

The next imm cologne will take place from 15 to 21 January 2018 in Cologne, co-located with LivingInteriors.

Koelnmesse - Global competence in furniture, interiors and design
Further Information: http://www.global-competence.net/interiors/