Textination Newsline

• Capacities are relocated to Southeast Asia

Hong Kong (GTAI) - Thanks to President Trump, the emigration trend from the PRC is getting an additional boost. As far as logistics companies are concerned, Beijing is getting increasingly worried.

Already a decade or so ago, China began to relocate production facilities. As wages increased in the rich coastal cities, more and more companies were forced to move their factories inland or to so-called low-wage countries. There salaries, but also land, were more affordable. The environmental requirements were meanwhile laxer too.

The southern Chinese Pearl River Delta - probably the largest industrial settlement in the world - also felt this trend. In the 1980s and 1990s, investors from neighboring Hong Kong had outsourced virtually all of the industrial production of the Special Administrative Region (SVR) there. But around 2008/09, there came a change of opinion. 

In addition to cost pressures, they got headwind from local governments. In booming cities like Shenzhen, where land was becoming increasingly scarce, light industry companies were no longer welcome. Also polluting and power-consuming industries, such as the production of ceramics, were moved out with more or less gentle pressure.

Companies pursue hybrid strategy
Many companies followed a hybrid strategy. The production of higher quality items  remained in the Pearl River delta, which has recently became named as the Greater Bay Area. The production of mass products, on the other hand, was shifted to cheaper locations. Some manufacturers went to Southeast Asia. Especially in Vietnam many companies found a new home.

This relocation process has been steadily progressing ever since. With the ever-widening trade conflict between the People's Republic of China and the US, it now receives additional impetus. Many investors have been shifting parts of their production from their Chinese production cities to their Southeastern Asian factories since the announcement, at the latest since the introduction of the first tariffs.

This is possible in the short term and to a limited extent, initially without major investments, as long there is still enough free manufacturing capacity in the ASEAN (Association of Southeast Asian Nations). That should be true in most cases. In addition, in the second half of 2018, investors will also withdraw production equipment such as machines from China and send them to Southeast Asia.

Relocation preferably to Vietnam, Malaysia and Laos
At the end of July 2018, the Hong Kong-listed carrier Kerry Logistics reported in the South China Morning Post that its business had noticeably picked up as a result of the trade dispute. The customers would relocate production steps especially to Malaysia, Vietnam and Laos. In the aforementioned countries, an increase in export activity is expected in the second half of 2018.

According to the president of the Hong Kong Young Industrialists Council, the member companies are relocating their production mainly to Malaysia and Vietnam in order to avoid rising costs and the tariff conflict. The CEO of the Hong Kong fashion producer Lever Style told reporters that already now only 50 percent of its production comes from the People's Republic of China. Eight years ago, the quota was still at 100 percent.

This so-called "China Plus One" strategy is therefore a natural development. The companies pursue it for years not only for cost reasons, but also to spread their risk, which now turns out to be the right good one. For China this development is not threatening at this time. The country is aiming for a permanent higher positioning of its industry anyway. As part of the "Made in China 2025" strategy, the People's Republic wants to become the technological world leader even in ten sectors.

But if the accelerated relocation process increases unemployment and stutters the economy, Beijing may be come under pressure. The negative effects of the trade conflict are already being felt. Stock prices plummeted and the Chinese yuan lost significant in value against the US dollar, what could trigger a capital flight.

• 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.

Most popular online payment methods
(in %, multiple selections possible)

iDEAL	95
Kreditkarte	50
pAYPAL	31
Tikkie	22

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.

Important e-commerce events in the Netherlands

Event	Date
Digital Marketing World Forum, DMWF Expo Europe, Amsterdam	19 - 20 September 2018
Savant Supply Chain Congress, Amsterdam	2 - 3 October 2018
Shopper Insights & Retail Activation International, Amsterdam	29 - 31 October 2018

 

• Opportunity for manufacturers to star as trendsetters in the flooring industry

The redesigned DOMOTEX – with its more transparent clustering of allied products and the visually stunning  “Framing Trends” showcase – has been warmly embraced by the market and is now gearing up for its second season. DOMOTEX 2019 will run under the banner of “CREATE’N’CONNECT”, a keynote theme that puts the spotlight on innovative flooring industry developments and ideas inspired by today’s connectivity megatrend. Powered by advanced technology and digital change, being connected is a tremendously important aspect of our daily lives and interaction at home and on the job.   Connectedness is an important aspect of flooring in the sense that floors are unifying, connecting elements of room design. Floors and flooring provide the very foundation for the rooms in which we live and work. Floors inspire us, give us orientation and set the stage for human interaction.
 
“CREATE’N’CONNECT” keynote theme to be creatively staged by trend leaders
The “Framing Trends”special area in Hall 9 at DOMOTEX 2019 is a unique opportunity for manufacturers to breathe life into the “CREATE’N’CONNECT” theme and thereby demonstrate their creative genius and position themselves as trendsetters of the flooring industry. Complete with a quality supporting program of talks, lectures and discussions inspired by the keynote theme, “Framing Trends” is a vibrant networking platform and the beating heart of DOMOTEX. It is a place where creatives from all parts of the design spectrum can gather, make connections and contacts and spark new business opportunities. For manufacturers, retailers and designers, it is also a rich source of inspiration for new collections. With its out-of-the-ordinary artistic staging and groundbreaking product presentations, “Framing Trends” is an absolute magnet for fashion and lifestyle-savvy visitors, architects, interior decorators, designers and influencers.

“Framing Trends” - Apply to exhibit and start making connections  
As a major highlight of DOMOTEX, the “Framing Trends” special area is one of the main stops on the show’s special Guided Tours for architects and journalists. This premium exposure is further enhanced by the area’s strong presence in the organizer’s social media channels and on the DOMOTEX website. Furthermore, companies that give exclusive interviews at DOMOTEX are permitted to use the interviews for their own promotional purposes. As in 2018, the “Framing Trends” showcase at DOMOTEX 2019 will have a Blogger Lounge where bloggers and visitors can meet up, talk and collaborate.

The “Framing Trends” area includes the “Flooring Spaces” zone – a series of spaces where selected exhibitors and companies from the flooring industry can stage their unique, creative visions of the “CREATE’N’CONNECT” theme in the form of physical installations, interactive display circuits or workshops. Applications for participation at the “Flooring Spaces” zone are now open. Each applying organization is invited to submit a design proposal for a “Flooring Space” of any size from 20 sqm to 60 sqm. On request, the DOMOTEX organizers will arrange for designers to help applicants with their proposals. An expert jury made up of big-name designers and architects will select the participating exhibitors from among the applicants. The jury will make its decision by the fall of 2018.

Examples of creative flooring-related connections
The connectivity theme can be creatively expressed in many wonderful ways, as the following examples from the flooring and various allied industries show.
In teamwork with the studio Lotta Agaton Interiors, Austrian carpet maker Tisca Textil staged a home environment collage at DOMOTEX 2018 combining handmade woolen rugs with furniture by Vitra, Artek and Team7.

The lively graphic motifs used in the Infused Collection by Mannington Mills conjure up various aspects of five different U.S. metropolises. This LVT tile collection’s mix-and-match approach lends itself to the creation of imaginative mosaics using any combination of tiles desired.

Swedish design firm Kinnasand presents its rugs on a limited series of steel tubing “structures” created in cooperation with Berlin design studio Greiling. Draped over stylized bench, ottoman and daybed structures, the carpets take on a three-dimensional aspect.

Furniture manufacturer Walter Knoll uses the floor pillows and daybeds in its “Badawi Pillows” collection to create connections with its own sofa and carpet range. Details like the finishing on the leather headrest rolls attest to the firm’s high level of craftsmanship.

Gan, the rug and textile brand of Spanish outdoor furnishing company Gandia Blasco, includes a whole range of new products that explore the connection between rooms and their floors. For example, the “Parquet” kilim collection by Swedish designer duo Front (Sofia Lagerkvist and Anna Lindgren) reinvents the timeless aesthetic of wood parquet in soft floor coverings. Meanwhile, the “Mirage” collection by Spanish designer Patricia Urquiola comprises hand-knotted rugs made from New Zealand wool that look like they are woven from three dimensional planks whose ends protrude into the surrounding space. Her “Garden Layers” collection features layers of rugs, mats, roll pillows, cushions and even textile-covered Indian beds. The individual elements can be arranged in many different ways to create infinite inviting possibilities for outdoor living.
 
“Framing Trends” showcase well received by the market
Business decision-makers who participated in the inaugural “Framing Trends” showcase were full of praise for the enhanced DOMOTEX format. Their stories are glowing reports of successful business contacts made at DOMOTEX 2018. For instance, Jutta Werner, CEO of Nomad, an interdisciplinary design firm in Hamburg, described the “Flooring Spaces” area as a “well signposted proving ground for innovation and contemporary thinking.” She said the response to her presentation there was “overwhelming.” Benny Jensen, CEO of Denmark’s Fletco Carpets, was impressed with the Guided Tours and their ability to communicate targeted information to visitors. He said the tours enabled his company to present its new, award-winning “LockTiles” product directly to a quality, pre-qualified audience. Jensen noted that “architects, designers and planners made a special point of visiting the ‘Framing Trends’ display.” Floor coverings manufacturer Classen used the “Flooring Spaces” zone at “Framing Trends” to present a vision of a living space from the future. The flooring creation at the heart of Classen’s “Flooring Space” was developed specially for DOMOTEX at the company’s own design center, while the creative design and production of the space as a whole was undertaken on Classen’s behalf by a designer. The presentation raised Classen’s profile as an innovator. Marketing Director Heinz-Dieter Gras says the visitors showed a “great deal of interest” and described the presentation as “spectacular” and “masterfully done”.

Thomas Trenkamp, CEO of Carpet Concept, was very pleased with the “massive response” to his company’s “Framing Trends” presentation generated in the press and among industry peers and trade visitors. The kaleidoscope project which Carpet Concept realized in partnership with Schmidhuber, Munich, was a major attraction on site, in the press and across social media channels. Creative Matters, a Canadian design firm that specializes in carpets, rugs and wall coverings, staged a series of creative workshops that proved enormously popular with attendees. President and co-founder Carol Sebert described “Framing Trends” as a “vibrant, high-energy” showcase that enabled exhibitors and visitors to “experience the latest innovations and creations in the flooring world first-hand.” Jürgen Dahlmanns, the founder and creative mind behind cutting-edge German carpet label Rug Star, believes that DOMOTEX’s managers have moved the show in an “exciting new direction” with Framing Trends. “It’s a fun thing to be involved in as an exhibitor”. Textile floor coverings specialist Balta Group, of Belgium, has been exhibiting at DOMOTEX right from the early days. Marketing Director Geert Vanden Bossche said the new format has “further cemented the strong connection” his organization felt with DOMOTEX. Balta exhibits both at DOMOTEX in Hannover and at DOMOTEX asia/CHINAFLOOR in Shanghai.

DOMOTEX 2019 will be held in Hannover, Germany, from 11 to 14 January (Friday through Monday). The show is expected to feature around 1,400 exhibitors from more than 60 nations.

• Investment costs of USD 1.5 billion
• State-of-the-art technology to be used

Hong Kong (GTAI) - Chinese e-commerce giant Alibaba wants to build up a global sales network. The Hong Kong Special Administra-tive Region (SAR) plays an important role in its strategy. A 380,000 square meter logistics center is to be built there, in which state-of-the-art warehouse and robot technology will be used. According to the plan, it will be operational by 2023. Foreign specialist suppliers can hope for orders.

The Chinese Alibaba Group is the largest e-commerce provider in the country. Now it wants to ex-pand into other markets. According to the company announcement, more than USD 1.5 billion are to be invested in the development of a worldwide distribution and logistics network.

The Small Special Administrative Region (SVR) plays a deciding role in its expansion strategy. It is home of the largest cargo airport in the world. According to the Hong Kong Civil Aviation Department, the volume there amounted to almost 5 million tons in 2017. According to the prognosis of the Airport Authority, the state operator, it should reach almost 9 million tons by 2030.

Hong Kong offers decisive locational advantages for international logistics groups and e-commerce providers. According to calculations by the Air-port Authority, around half of the world's population can be reached within five flight hours. As there are no customs duties or VAT and the SVR has an efficient bureaucracy, a fast dispatch is practically guaranteed. This fits into Alibaba's strategy, as the group wants to limit the delivery time for or-ders from abroad to a maximum of 72 hours.

Handling capacity of up to 1.7 million tons of freight
The e-commerce giant therefore wants to set up one of its worldwide distribution centers in Hong Kong via its logistics arm called Cainiao - others are planned in Hangzhou, Dubai, Kuala Lumpur, Liège and Moscow. It should get a size of around 380,000 square meters in size and will be able to handle a maximum of 1.7 million tons of freight. The corresponding investment costs will summarize to around USD 1.5 billion. It is scheduled to go into operation by 2023.

The group informed through the South China Morning Post (which it owns) that the new logistics center will be equipped with state-of-the-art technology. An automatic warehouse and highly efficient air conditioning are planned. According to industry experts, artificial intelligence-based systems and numerous robots will be used.

The project should thus also generate business opportunities for foreign suppliers of building and storage technology. There are hardly any sector manufacturers in Hong Kong itself. There are corresponding producers in China. However, they cannot always offer the most modern and best products and services available on the market. Particularly there is a pent-up demand for software.

Contact addresses

Designation	Internet address	Note
Alibaba	https://www.alibabagroup.com/en/news/article?news=p180606 (homepage); https://www.alibabagroup.com/en/news/article?news=p180606 (project press release)	Biggest e-commerce pro-vider in China
South China Morning Post	http://www.scmp.com/frontpage/international (homepage); http://www.scmp.com/tech/enterprises/article/2149561/alibaba-affiliate-cainiao-forms-jv-build-us15-billion-logistics (project review)	Renowned English-language newspaper. Be-longs to Alibaba
Civil Aviation Department	https://www.cad.gov.hk/english/home.html (homepage) https://www.cad.gov.hk/english/facts_statstics.html (Hong Kong Air Traffic Statistics)	Supreme Aviation Authority Hong Kong

 

Further information
For more information on Hong Kong's economy, industries, business practices, law, customs, tenders, and development projects, visit http://www.gtai.com/hongkong.
The page http://www.gtai.de/asien-pazifik offers an overview of various topics in the region.

More than 3,500 exhibitors presenting their latest collections for spring/summer 2019 at the Berlin Fashion Week from the 3^rd - 7^th January 2018. The Berlin Fashion Week is the meeting point for buyers, press and media members from all over the world. Berlin has national and international appeal and is an exciting mix of art, film, music and fashion. This is where the trends of tomorrow are born. After a few seasons, Berlin has established itself as one of the top five capitals of fashion with more than 100,000 trade visitors and numerous events during Berlin Fashion Week, including fashion shows, trade show platforms, receptions and showrooms.

The order business has a constant growth with the fashion fairs Premium Exhibition, Panorama, Show & Order, Bright, Seek und Selvedge Run, the Greenshowroom, the Ethical Fashion Show Berlin, #FASHIONTECH Berlin, FashionSustain and Playtime Berlin. Also, this season young and established designer will show their collection at "Der Berliner Mode Salon" at Kronprinzenpalais.
Last season 100.000 Professionals, national and international Journalists came to Berlin to see the collections. The result: 5.000 reports in national and international newspapers, more than 5.000 online reports.

Only a few more hours until the Berlin Fashion Week starts – the tension is rising. When thinking about Berlin Fashion Week, images of the runway shows or well-known and talented designers come to mind, plus the showrooms exhibiting their creations and works of the designer. The Berlin Fashion is especially known for the big presentation platforms MBFW and Der Berliner Salon, which attract the professional audience each season. Read some minor spoilers about the biggest highlights of the upcoming fashion week:

MBFW (former Mercedes-Benz Fashion Week), July 03 to 07 2018
The new concept, which MBFW successfully introduced in July 2018 will be continued this edition. At ewerk Berlin, Wilhelmstraße in Mitte, emerging designers and established fashion brands will present their creations and collections from 3^rd until 5^th of July. Together with the Berlin-based creative agency NOWADAYS, MBFW has staged the platform very artistically for the designers. The theme of this MBFW is “Follow MBFW – Liberate Fashion”.

The schedule is nicely filled with outstanding talents. The programme kicks off on Monday, 2^nd of July with the show by Guido Maria Kretschmer, a well-known designer, who will present his spring/summer-2019 collection.

High-End Labels and established, excellent fashion brands will show to be experienced, on the following days. On Tuesday, Botter, Maisonnoée Berlin, Lena Hoschek and Irene Luft will present their Spring/Summer-2019 collection. Additionally, the fashion how “Greenshowroom Selected” will take place for the first time as part of MBFW. A selection of the collections and styles by the designers exhibiting at Greenshowroom and Ethical Fashion Show Berlin will be presented. As another highlight, the show will be live streamed at Kraftwerk Berlin.
 
On Wednesday, shows by Sportalm Kützbühel, Rebekka Ruétz, Maison Common, Riani and the upcoming-talent Danny Reinke, who won one of the MBFW show slots, funded by Projekt Zukunft.
The Thursday is the third main day of the Berlin Fashion Week and presents Marina Hoermanseder, Ivanman, who is seen as another emerging talent in the menswear field, Lana Müller and Isabel Vollrath, who will present her new styles. The big final, the Rebelpin Fashion Awards by ACTE is taking place on Thursday night.
http://mbfw.berlin/

DER BERLINER SALON, July 05 to 07 2018
For the eights time already, another highlight will take place as part of the Berlin Fashion Week. Designer from the German-speaking area will present their latest collections during Defilees, events and a group exhibition.

BERLINER SALON x DISNEY
This edition of the Berliner Salon starts with an event in cooperation with the Walt Disney Company. On 5^th of July, from 9.30 am - 11.30 am, the 90^th anniversary of Mickey Mouse will be celebrated – four German labels (Odeeh, Rianna + Nina, Strenesse und William Fan) created exclusive collections to honor the mouse.
Not only the pieces of names designers, but also well-known runway pieces by international fashion houses, e. g. Jimmy Choo, from the archives of Disney will be presented.

Zeitmagazin & Vogue Conference
The Disney morning will be followed by the known “Zeitmagazin & Vogue” conference with the theme “Change Fashion”. Already in the past years, important topics, such as the essence of fashion, were discussed by the podium speakers. This year, the audience can expect another important discussion and interesting keynotes for the 7th time as part of Berliner Salon. Model Toni Garrn, Benjamin Alexander Huseby, and the designer Wales Bonner will be on stage.

Defilees
The last two days of Der Berliner Salon will be defined by presentations and defilees. Various fashion labels, such as Dawid Tomaszewski, Odeeh, and William Fan will present their spring/summer-2019 collections.
 
Group Exhibition
Last but not least, the biggest event as part of Berliner Salon will be the group exhibition. For the opening of such, major and Senator for Economy Ramona Pop will be present. That and the expansion of the exhibition by artistic-designed creations by product designers show, how the format stands up for a new, public awareness of demanding, German design.
Altogether, 42 designers, photographers and artists from German-speaking countries will present their latest works to the audience, from 12pm - 5pm, on 6^th of July.
http://derberlinersalon.com/

 

Every day, GTAI experts observe and analyze the development of the most important German export industries on the world markets. Here you will find summarized information on the textile and clothing industry in Asian markets.
 
GTAI Industry Check - Vietnam
Textile and clothing industry: Vietnam needs more than sewing
The textile and clothing industry is one of the most important pillars of the Vietnamese industry and accounted for around 6 percent of total exports in 2017 with exports amounting to USD 26 billion. For 2018, the industry is aiming for growth of 7 to 8 percent and exports are expected to rise to over USD 33 billion. In order to comply with the rules of origin of the free trade agreements concluded by Vietnam, the country must achieve a higher added value. Domestic companies such as the Vinatex Group or Garco10, but also foreign companies are increasingly investing in technical innovations and expanding processes such as spinning, weaving and dyeing upstream of pure sewing. In addition, the first companies are beginning to automate their production processes.

GTAI Industry Check - Uzbekistan
Textile and clothing industry: Investments of more than USD 2 billion planned
The industry program for 2017 to 2020 lists around 130 projects with a total value of USD 2 billion. About half of the planned investments are to be
accounted for foreign commitments. The aim is to double the annual output of finished textile products during this period. With an annual production of more than 3 million tons of raw cotton, Uzbekistan is one of the world's largest producers of the white gold. A second industry programme foresees the implementation of five projects for the production of raw silk, silk wadding and silk fabrics and finished silk products between 2018 and 2021. The minimum investments required are estimated at USD 26 million.
 
GTAI Industry Check – Myanmar
Textile and clothing industry: Export strength through low wages
The lifting of sanctions by the EU and the US has noticeably revived the investment climate in the sector, especially as this was linked to the reactivation of the EU's GSP import status (Generalized System of Preferences). Most investors came from China, Hong Kong, Taiwan or South Korea, and Western brands such as GAP, H & M, Primark or Marks & Spencer were also included. Currently, about 400,000 workers are employed in almost 400 factories, mostly geared to CMP (cut-make-pack), including 171 foreign investors and 22 joint ventures. According to the Myanmar Garment Entrepreneurs Association, exports are expected to have increased by 40 percent to over USD 3 billion by 2017. For the first time the largest customer was the European Union, primarily Germany, ahead of Japan and South Korea.

GTAI Industry Check – Georgian Republic
Textile and clothing industry: Several expansion projects planned
The apparel industry produces garments for up to USD 70 million annually. The main products manufactured are international brands for export. Several new projects in the industry are in preparation. For example, the Turkish jeans manufacturer Baykanlar Textil plans to build a factory for the production of brand jeans in Ozurgeti by the end of 2018. A total of USD 15 million will be invested in the project. The Romanian company MGMtex, a subsidiary of the Swiss company Ottorose, is planning to start production of branded clothing in Kutaisi in cooperation with a local partner. The investments for the first and second project phases amount to more than USD 1.5 million. For the procurement of equipment, the company benefits from subsidies from the state program Produce in Georgia.

GTAI Industry Check - Turkmenistan
Textile and Clothing Industry: Investments of around 300 million US dollars planned
The textile and clothing industry represents 20 percent of Turkmenistan's industrial production and 30 percent of its manufacturing industry. A good USD 300 million will be invested in 2018 to 2020/21. The project list includes the construction of a large textile complex for the annual processing of up to 5,000 tons of fine-fibred cotton into semi-finished and finished products. Start March 2021; contractor: Cotam Enterprises Ltd, British Virgin Islands/Turkey) and a factory for the annual production of 6,000 tons of cotton yarn (2019/20, Hilli yol), the modernization of a textile factory (Daschogus), a cotton spinning mill (Tachtabasar) and a factory for medical wadding and cosmetic cotton (Ashgabat; 2018/2019 each). The potential of medical textiles, cotton fabrics, man-made fibers and the processing of wool and cocoons is still little used.
 
GTAI Industry Check – Azerbaijan
Textile and clothing industry: Light industry business park attracts investors
Azerbaijan launched several projects to revive the industry (output in 2017: USD 100 million). An industrial park for light industry has been under construction in Mingachevir since autumn 2016. Nine new factories are planned for cotton, acrylic and woolen yarn, clothing, hosiery and leather shoes. The project is worth up to USD 150 million. The first factory for the annual production of 20,000 tons of yarn is under construction. Under the umbrella organization for the Azerkhalcha carpet weaving mill founded in 2016, ten further smaller factories will be put into operation in 2018. Gilan Textil Park, Sumqayit, wants to expand its exports of home textiles. In the medium term, the construction of a silk spinning mill with an annual capacity of 3,000 tons of yarn is also planned.
 
GTAI Industry Check - Armenia
Textile and clothing industry: interest from abroad increases
Rising exports of clothing to Russia and western markets lead to expect further investments in the textile and clothing industry in 2018. Italian investors are planning to build a large jersey factory in Kapan (Sjunik region). The company SASSTEX in Artik (Schirak region) invests in two factories for the production of fashion (ZARA brand) and workwear. The Egyptian Wassef Group is considering the production of cotton fabrics and products therefrom. Yerevan-based hosiery and children's apparel manufacturer Alex Textile will continue its USD 28 million investment program in 2018 to expand apparel and hosiery production at several sites in Armenia.

At May 29/30, 2018, 147 exhibitors from six countries present application-oriented textil and lightweight-solutions for all sectors from A to Z and introduce numerous innovations in Chemnitz - Special exhibitions and specialiced events deepen the trade fair topics and give inspiration for innovation development and business contacts

With a 10 % plus of exhibitors and an exhibition area which rose 20 % the trade fair duo mtex+ and LiMA starts at May 29/30, 2018. At hall 1 of the Messe Chemnitz 147 companies and research institutes present on 4.200 square metres application-oriented textil and lightweight-solutions for sectors from architecture to railway technology. On 3.500 square metres 134 exhibitors were represented at the previous trade fair in 2016 in Chemnitz. „We are pleased that the merging of the fields of technology technical textiles and lightweight becomes even more visible at our trade fair duo. Not only exhibitors from the Central German industry and research region demonstrate their know-how. We can as well welcome companies and research institutes from all over Germany adding Belgium, France, Austria, Switzerland and the Czech Republic in Chemnitz. To us this is the proof that the further merge of mtex+ and LiMA under the new slogan ‚Excellent connections: Technical textiles meet lightweight construction‘ works out“, emphasises Dr. Ralf Schulze, director C³ Chemnitzer Veranstaltungszentren GmbH, to which the Messe Chemnitz belongs.

Innovations from textil circuit boards to railway-components made of basalt and bamboo
The international trade fair for technical textiles mtex+ and the lightweight trade fair LiMA focus on functionalised and intelligent textiles as well as lightweight materials and –products, digitised production, process development-, process- and technology development, refinement and recycling. The exhibitors in 2018 put various innovations forward. The nonwoven-manufacturer Glatzeder arrives with a protective suit made of an entirely new material, which is suitable for work under extreme conditions. A especially for security forces made protective clothing will be shown by Wattana. Flexible textil circuit boards made of conductive nonwovens are the new development from Norafin. Vowalon presents a surface sealing for imitation leather padding which extends its service life. Light interactive components as well as tables and seating areas made of textile concrete will be shown by the TU Chemnitz. HÖRMANN Vehicle Engineering demonstrates trim - and interior components  for railway vehicles with basalt- and bamboo fibre.
New and proven special exhibitions offer insights into innovative developments besides the exhibition stands. A new addition at the program is „light.building“ belonging to lightweight in architecture and building trade and „flexible.protect“ belonging to  protection- and safety textiles for humans, nature, mobile and immobile goods. The successful exhibition „health.textil” with medicine-, health- and wellness textiles from 2016 will be continued.

Compact, intensive and international
The exhibition stand- and special exhibition-presentations demonstrate the growing application range of technical textiles and lightweight. „Hightech-textiles and lightweight solutions conquer more and more new fields of application. Compact seen should be the various possibilities in the Central German industrial metropolis Chemnitz, that is and was a centre of innovative textile industry. The atmosphere of the small but fine trade fair duo of short distances and intensive contacts is not only appreciated by the actors of the strong Saxon-Thuringian textile region but also by foreign companies and research institutes. So are the textile federation ATOK and the Techtex-Cluster CLUTEX from the Czech Republic with a multicompany stand and the Smart-Textiles-Network from Austria our guests again“, informs Dr. Jenz Otto, general manager of the Noth-Eastgerman textile- and clothing industry association (vti) and amends: „The exhibiton is not only an obligatory date for the specialised insiders but also the federal policy shows a great interest in the textil- and lightweight- competences of the region. Because of this the Commissioner for middle class and for the new Länder, Christian Hirte, follows our trade fair duo invitation.“ The vti is from the very beginning major partner and a generator of inputs for the continuous further development of the event.

You can find further information about the program as well as the trade fairs under: www.mtex-lima.de

 

• Exports increase
• Domestic demand rises

Poland strengthens its position as a major furniture producer. Many companies are expanding their capacities. The industry structure is very fragmented. Among the small to large companies, a certain consolidation trend is noticeable. There are also numerous micro-companies on the market. Furniture exports are expected to increase again in 2018, and the demand for housing, office and shop fittings is also growing in the country itself.

Poland is an important producer of furniture that is heavily exported, especially to Germany. The producers are expanding their capacities: For example, at the end of October 2017 the Austrian company Egger started construction of a large chipboard factory in the south of Biskupiec (Bischofsburg), which is scheduled to start operations in the fourth quarter of 2018. It is being built on 85 hectares of land within the Warmia-Masuria Special Economic Zone (SEZ) and is expected to produce around 650,000 cubic meters of slabs annually.

The value of this investment amounts to almost EUR 240 million. The products are intended for both domestic and foreign customers. They should meet strict environmental standards and be up to 30 percent of recycled wood. 400 new jobs will be created in the new factory itself and another 600 will be created in cooperating companies.

An important buyer of chipboard will be the furniture industry, which also invests by itself. According to the daily Rzeczpospolita, the company Meble Wojcik plans to build a production facility as well as a warehouse and logistics warehouse for a total of EUR 12 million. These are to be equipped with automated production lines and logistic equipment. In addition, the further development of the IT system is planned so that the production can be adapted very fast to individual customer requirements. The investment project will create at least 120 jobs. The sales of Meble Wojcik in 2017 amounted to more than EUR 100 million.

New sawmill planned
A project of comparable value is being undertaken by the manufacturer of upholstery furniture DFM, which wants to produce wood frame elements in Dobre Miasto (Guttstadt). A modern sawmill is being built there, the construction elements of which are not only intended for DFM itself, but for other customers also.

The furniture manufacturer Szynaka Meble wants to raise more than EUR 5.3 million to build a new warehouse in Ilawa (German Eylau). There 30 employees will be employed. Among other things, the procurement of a modern software for material management is planned.

The six plants of Szynaka Meble produced furniture worth around EUR 235 million in 2017 (on a zloty basis) +5 percent compared to 2016. For 2018 the company expects a growth of 15 percent, mainly due to increased exports to North America, where it intends to sell one-fifth of its production.

Location of the Meble Wojcik, DFM and Szynaka Meble projects is also the Warmia-Masuria SEZ, located in a wood rich area. According to press reports, the manufacturer of shop fittings Modern-Expo plans to build a factory in Lublin. In the first three quarters of 2017, the Polish furniture industry invested a total of around EUR 200 million, according to the main office of CIS. On a zloty basis, the amount stagnated compared to the same period of the previous year.

The sector structure is fragmented
The furniture industry plays an important role in the Polish industry. Around 25,800 companies in Poland are involved in the manufacture of furniture and interiors. Nevertheless, elements and components are also imported, including from Germany. More than 90 percent of the companies are micro-companies, which, according to the market research firm B + R Studio, together however account for 10 percent of the domestic sales only. Only about 90 companies are classified as being large. Together with the approximately 320 medium-sized companies, they sell about three quarters (76 percent) of the relevant products. Small businesses account for a part of 14%. According to CIS at the end of 2017 there were around 161,000 employees in the furniture industry, around 6,000 more than the year before - (+4 percent).

Turnover of Polish furniture manufacturers (in EUR billion)

2013	2014	2015	2016	2017 1)	2018 2)
7.5	8.4	9.3	10.0	10.5	11.1

1) Estimation; 2) Forecast

Source: B+R Studio

For 2018 B + R Studio expect total domestic sales of more than EUR 11 billion, which represents a 3.1% increase on Zloty basis compared to 2017. For years the market leader has been the Polish subsidiary of the Swedish Ikea Group, with revenues of around EUR 1 billion in 2016. Far off is the domestic group Black Red White, which raised a total of EUR 335 million in 2016. It estimates its turnover in 2017 at around EUR 400 million (on Zloty basis +16 percent); the export share is 35 percent.

The company Nowy Styl, which specializes in office furniture and chairs, comes third, with revenues estimated at EUR 340 million in 2017 (+8 percent compared to 2016). The mattress manufacturer Correct follows with a turnover of EUR 291 million in 2016, ahead of the stock exchange listed company Fabryka Mebli Forte with EUR 252 million, which aims to reach EUR 400 million revenues for 2020. Forte will take its 5th factory in operation in late 2019 / early 2020, increasing its production capacity to 6.5 million pieces of furniture annually.

Of importance is also the manufacturer of upholstery furniture Com.40 Limited. Seating is by far the most important category of furniture produced in Poland, accounting for almost half of the total sales.

Exports revive
According to the B + Studios the furniture exports are expected to rise to EUR 10.6 billion in 2018. On a zloty basis this means an increase of about 2 percent compared to 2017 with an estimated EUR 10.1 billion, when the exports fell by 1 percent. Domestic demand for furniture is also increasing thanks to residential and commercial property construction. The increasing purchasing power of the population also makes it possible to replace old facilities with new ones. Imports complement the offer of domestic industry.

Furniture sales in Poland (in EUR billion)

2013	2014	2015	2016	2017 1)	2018 2)
1.2	1.2	1.3	1.3	1.4	1.5

1) Estimation; 2) Forecast

Source: B+R Studio

The industry is suffering from an increasing labor shortage, which leads to higher wages. According to CIS, the average gross wages in 2017 were EUR 833 per month compared to EUR 738 in 2016. On Zloty basis, this corresponds to a nominal growth of 7.3 per cent.

Contact addresses:

Ogolnopolska Izba Gospodarcza Producentow Mebli (OIGPM)
(Polish Chamber of Commerce of Furniture Producers)
Contact: Michal Strzelecki
Al. Stanow Zjednoczonych 51, pok. 614
04-028 Warszawa, Polen
T +48 (0)22 517 78 39
oigpm@oigpm.org.pl
http://www.oigpm.org.pl

B+R Studio Analizy Rynku Meblarskiego
Market research institute for the furniture market:
Head of the Analysis Department: Martin Czyrnia
MD Connect Sp.z o.o.
ul. Oleska 35
46-380 Dobrodzien, Polen
T +48/507 96 66 23
brstudio@brstudio.eu
http://brstudio.eu

Furniture producers	Internet addresses
Egger	http://www.egger.com
Meble Wojcik	http://www.meblewojcik.com.pl
DFM	http://www.dfm.com.pl
Szynaka Meble	http://www.szynaka.pl

 
  

Heimtextil is pushing ahead with the new concept for 2019: now that those responsible have worked out a completely new hall plan, they are turning their attention to redesigning the trend programme. With a meeting of international trend researchers on 20 and 21 February in Frankfurt am Main, the design experts have begun preparations for the trends of the upcoming Heimtextil (8-11 January 2019) at an unprecedented early stage.

‘The Heimtextil trends have enjoyed a worldwide reputation for decades. Showcased in the extensive and progressive way that they are, they are an essential component of our trade fair’, says Olaf Schmidt, Vice President Textiles & Textile Technologies at Messe Frankfurt. ‘That's why it is very important to us that we continue to live up to our pioneering role with our new trend concept and offer our exhibitors and visitors a future-oriented programme. In the future, we will strengthen this showcasing above all at the digital level’.
 
Starting with the meeting in Frankfurt, trend researchers from three European offices are working on the Heimtextil trends 2019/20. The British design studio FranklinTill will once again play a leading role and is responsible for the implementation of the Trendbook. The Stijlinstituut Amsterdam (Netherlands) and SPOTT Trends & Business (Denmark) have joined forces with them to form the new Heimtextil Trend Council.

During the two-day workshop, the three agencies compiled insights into current trends in interior design, architecture, fashion and art. They focused on developments in materials and textures, colours and patterns. Finally, they defined stylistically formative design themes from which a globally applicable trend forecast will be worked out in the coming months.

New: “Trend Space” in hall 3.0
When it comes to showcasing trends at the trade fair, Heimtextil will receive support from the Frankfurt agency Atelier Markgraph. As a specialist for communication within spaces, Atelier Markgraph is planning an interactive, future-oriented exhibition that will immerse trade fair visitors in the world of trends 2019/2020 using analogue/digital experience formats. In future, the trend showcase will be called “Trend Space”, replacing the previous “Theme Park”. Those responsible for this change have chosen hall 3.0 as the new location. As part of the new Heimtextil concept, the “Trend Space” can be found in close proximity to international textile designers, CAD/CAM suppliers and digital printer manufacturers. Heimtextil is thus bringing the progressive themes of trends, textile design and digital printing together on one hall level, creating an area full of inspiration and future technologies. Hall 3.0 – exclusively for exhibitors – will be opened on the eve of Heimtextil on 7 January 2019.

Preview: Trend presentation in late summer
The results of the trend researchers will be recorded in the new Heimtextil Trendbook. Exhibitors at Heimtextil will be sent the Trendbook in advance to assist in their product design and collections. Together with the Trend Council, those responsible for the trade fair will provide an initial insight into the new trends on 4 September. For this purpose, Heimtextil will invite representatives of the press to a preview, the framework of which will also be redesigned.   
 
The following design studios are working on Heimtextil 2019:

The design studio FranklinTill (United Kingdom) will be taking on the main responsibility for the development of the Heimtextil Trends 2019/2020. With its headquarters in London, the studio comprises trend researchers, designers and stylists as well as a broad-ranging, international network of creatives and visionaries. The multidisciplinary agency's varied projects include  trend reports, colour forecasts, design realisations, brand developments and curating trade fairs and exhibitions. In addition to agency founders Kate Franklin and Caroline Till, Titia Dane will also be working on Heimtextil. www.franklintill.com

Anne Marie Commandeur from the Stijlinstituut Amsterdam (Netherlands) manages a team of designers who focus on textile innovations, predictions, colour trends and strategic design concepts. The agency acts as a versatile and dynamic force in the industry and keeps fashion companies and fashion-related companies up to date on the most important developments. This year, researcher Emma Wessel is supporting Anne Marie Commandeur at Heimtextil. www.stijlinstituut.nl

SPOTT Trends & Business (Denmark) advises Scandinavian lifestyle brands with issues relating to consumer insights, trend and colour forecasts. SPOTT aims at the individual development of brands and combines trend research with neuroscience and commercial expertise. Anja Bisgaard Gaede is the founder of SPOTT. In addition to her work as a consultant, she has given many presentations over the past ten years, and has also published a reference book. www.spottrends.dk

Atelier Markgraph (Germany) designs rooms that communicate and stimulate communication. For more than 30 years, the design studio has supported its clients in creating immersive experiences in the areas of conflict where culture, business and science intersect. At the interface of digital and analogue communication, a 60-strong interdisciplinary team translates central themes and brand messages into directly tangible scenarios: from exhibitions and showrooms to exhibition stands, media installations and AR applications. www.markgraph.de

 

• Quality suppliers satisfied buyers with a wide range of sourcing needs
• Fringe programme brought insights to fairgoers

The 2018 Spring Edition of Intertextile Shanghai Home Textiles concluded last week with positive business outcomes generated. Being held during the peak sourcing season for home textiles finished products in China, the three-day show attracted 12% more buyers than last year. A total of 20,870 visitors (2017: 18,596) from 68 countries and regions came to source a wide range of finished products including bedding, towelling and table & kitchen linen. 232 exhibitors from 11 countries and regions (2017: 204, eight countries and regions) including well-known international brands such as Cotton Council International and Asahi Kasei as well as domestic big names like Ruyi, Sunvim and Yueda participated and praised the show as one of the most effective trade platforms at this time of the year for home textiles industry.

“Thanks to the revitalised market conditions in China and the increased number of buyers, our exhibitors have had a successful show. Not only did they receive onsite orders and make contact with new clients, but they also valued Intertextile Shanghai as a channel to build up their brand so as to expand their business network in China. Apart from the stronger Chinese market, another reason for the buyer increase this year was the large growth of the four concurrent fairs. This resulted in a more diverse buyer profile with increased demand from different textile industry sectors,” Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd said.

Exhibitor opinions:

Mr Wang Si Qi, Representative of Fibers Sales Dept, Asahi Kasei Advance (Shanghai) Co., Ltd, Japan
“We came to the fair to gain exposure and to promote our brand. Since our products are rare in the market and are a perfect substitution for traditional materials, most of the buyers that visited our booth were interested. We succeeded in promoting our brand and letting more industry players know about it. We are really satisfied with the visitor number. People from different sectors with different products in different price ranges are all here. It does help increase our reputation in the industry.”

Ms Allisa Lau, Senior Manager, Chain Supply, Chain & Consumer Marketing, Cotton Council International, USA
“We are happy with the visitor number this year as we made contacts with a lot of manufacturers. Most of them are our target users. The fair has always been helpful for our Council as we can connect with existing clients and explore potential new customers at the same time.”

Mr Trevor Beuth, Managing Director, The Australian Alpaca Bedding Company Pty Ltd, Australia
“We exhibit in Intertextile Shanghai because I believe that it is the premier show in Asia at this time of the year, and it has a wide global reach too. We hope to establish our brand and reputation here at the fair and in China. Our products received very strong interest from Chinese buyers. Overall, we had a very busy show and we are satisfied. We have worked with some major Chinese companies and they came to see us again this edition, but nearly all of the visitors that have come to our booth this time are new to us.”
 
Mr Tetsuo Tosaki, Manager, Tamurakoma & Co., Ltd, Japan
“The reason we come here is that it’s the largest show in Asia at this time of the year, and the Intertextile brand is very famous in Japan. We met almost 100 customers every show day, including manufacturers, brand traders and wholesalers. This show helps us to know our customers better and expand our business in China. The Chinese market is developing rapidly in recent years, so attending this show is a good start for us and the result is beyond my expectation.”
 
Mr Sunwei, Marketing Manager, Shanghai Yueda Xiangyun Home Textile Co., Ltd, China
“Among our visitors, 80% are our existing clients who placed orders directly and the remaining ones are new clients who are interested to be our franchisees. It is surprising that we have received such a huge amount of orders in just two show days. Nearly 90% of our existing clients we met at the show placed orders, and we’ve met more than 10 potential franchisees. This is really a fruitful show as it helps us to connect with old customers and establish new business.”

Mr Gao Qi, District Manager, Sunvim Co., Ltd, China
“This edition we showcased towelling and bedding products especially designed for the 2018 spring season. Intertextile Shanghai is one of the most important platforms for us to launch new products for the year. On the one hand, many suppliers and brand buyers are looking for new items during this peak sourcing season. On the other hand, many quality buyers and decision makers are invited to the show. The visitor flow is high so we can both enhance our brand popularity and receive orders after the show.”

Quality suppliers satisfied buyers with a wide range of sourcing needs. While exhibitors were delighted about meeting new customers and receiving orders on the spot, international and domestic buyers also appreciated the wide range of products they discovered at the fair.
 
Buyer opinions:

Mr Anil Miglani, President, SawHill Intl Ltd (Toronto), Canada
“The show has always been a satisfying one as we can meet some interesting and potential suppliers every time. So far, we’ve found two to three exhibitors that we look forward to working with. As a Chinese fair, Intertextile Shanghai is highly recommended as the exhibitors, domestic ones in particular, are of good quality and friendly to foreign visitors. The product range on offer is getting wider and wider, so I come to this show every year to look for potential Chinese suppliers.”

Mr Abdelkrim Boussehra, Yiwu Mingyu Import & Export Co., Ltd, Morocco
“This is my first time attending this fair. I didn’t know any of the Chinese brands here beforehand, but I think the quality of their products is really good. I met two machine suppliers, TPET & Richpeace, and will place orders with one of them. I’ve been to several shows in China, and I think this one is an effective sourcing platform because I can find everything I want.”

Mr Paul Chen, Business Supervisor, Jiangsu Yueda Hometex R and D Co., Ltd, China
“Compared to the previous editions, there are more and more high level and innovative products. Big domestic brands like Mercury, Goldsun and Bermo are all here and we are interested to work with them. This is an excellent platform that facilitates our sourcing with these exhibitors all under one roof.”

Fringe programme brought insight to fairgoers
Apart from concrete business outcomes, the fair’s fringe programme, including the Intangible Cultural Heritage Zone and a series of forums, further enriched the three-day show. Fairgoers were fascinated by the presentation of unique and traditional textile production and processing techniques from Chinese ethnic minorities in the Heritage Zone. While the forums that discussed topics from consumption upgrade to the newest technology applications were another success as they provided extra opportunities for industry players to share their insights and learn the latest developments.

The next Intertextile Shanghai Home Textiles fair, the 2018 Autumn Edition, will be held from 27 – 30 August at the same venue. Intertextile Shanghai Home Textiles – Spring Edition is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).