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27.10.2020

Medium-sized Businesses: High debt, declining Profits and Financing Gap due to Covid-19

  • After the corona shock, European SMEs are showing very high levels of debt, a considerable deterioration in profitability in some cases, and insufficient capitalization
  • The Covid-19 pandemic is particularly affecting small and medium-sized enterprises (SMEs) in France and Italy
  • Compared to its European counterparts, German SMEs have come through the crisis relatively well so far
  • Already before the crisis 20% "zombies" among Italian SMEs, in France 11%, Germany 10%  

In France and Italy in particular, the Covid-19 pandemic is taking a toll on small and medium-sized enterprises (SMEs): they are currently lacking financial resources totaling an estimated EUR 100 billion - despite the extensive economic stimulus packages and after the exclusion of so-called "zombie" companies.

  • After the corona shock, European SMEs are showing very high levels of debt, a considerable deterioration in profitability in some cases, and insufficient capitalization
  • The Covid-19 pandemic is particularly affecting small and medium-sized enterprises (SMEs) in France and Italy
  • Compared to its European counterparts, German SMEs have come through the crisis relatively well so far
  • Already before the crisis 20% "zombies" among Italian SMEs, in France 11%, Germany 10%  

In France and Italy in particular, the Covid-19 pandemic is taking a toll on small and medium-sized enterprises (SMEs): they are currently lacking financial resources totaling an estimated EUR 100 billion - despite the extensive economic stimulus packages and after the exclusion of so-called "zombie" companies. In Germany too, SMEs lacking around EUR three billion of financial resources for a sufficient recapitalization. In view of the lack of EUR 70 billion in Italy and around EUR 29 billion in France, however, the local SMEs are in a much better position. This is the conclusion of a recent analysis by the world's leading credit insurer Euler Hermes.

"European SMEs have a very high level of debt, significantly deteriorated profitability and insufficient capitalization," Ron van het Hof, CEO of Euler Hermes in Germany, Austria and Switzerland says. "In the medium term, this is a very bad combination for the solvency of these companies. In Italy and France in particular, Covid-19 is making the situation increasingly acute, even if the numerous economic stimulus packages have at least avoided a short-term liquidity crisis. German SMEs have once again proven to be relatively robust and have so far come through the crisis relatively well compared to their European counterparts."

In this country too, debt has increased as a result of numerous liquidity measures. In France in particular, however, it is almost twice as high in relation to gross domestic product (81% of GDP) as in Germany (43% of GDP). In Italy, the debt of 65% of GDP is above average also in a European comparison (average: 63%).

In terms of profitability, French SMEs are at the bottom of the European league
"French small and medium-sized companies are now at the bottom of the European league in terms of profitability, even behind Italy," Ana Boata, Head of Macroeconomics at Euler Hermes says. "The profitability of French SMEs has fallen dramatically by 7 percentage points (pp) since the beginning of the year compared to -0.6 pp in Germany. In Italy, we estimate that profitability has also fallen by up to 3pp[1]. With 33%, the equity ratio in Italy is the lowest and thus well below the 40% that is generally considered as being adequate. Accordingly, Italy is the country where the greatest need for additional funding for recapitalization exists."

In France, the equity ratio of SMEs is 37%, while in Germany, at 39%, only slightly below the recommended capital adequacy level. In their analysis, the economists have already deducted such companies that were already practically unviable before the Covid 19 pandemic.

"A majority of medium-sized companies are proving to be very robust even in the current crisis, especially in Germany, Van het Hof says. "This fact, however, must not hide the fact that there are numerous zombie companies in their shadow in Europe - even before the Covid-19 pandemic. In Italy, for example, even before the crisis, around one-fifth of the SMEs were no longer economically viable, while in France (11%) and Germany (10%) only about half as many were known. However, this number is likely to have increased dramatically with the current crisis, as have the financing requirements of SMEs. The situation will be particularly tight for companies and sectors that had little buffer before the crisis."

In Germany, the equity ratio before the pandemic was particularly low in the transportation industry: in shipping it was around 32%, in aviation 29%. With Covid-19 the existing financing gap has widened again. In France and Italy, companies in the hotel and restaurant industry as well as in mechanical engineering and trade had particularly bad starting positions and therefore have the greatest need for capital now.

The complete study can be found here: https://ots.de/lYcKea 

[1] Figures are currently available for Germany and France until H1 2020, in Italy only for Q1 2020. The decline in profitability of up to 3pp in Italy is an expert estimate.

Euler Hermes is the world leader in credit insurance and a recognized specialist in bonding and guarantees, debt collection and protection against fraud or political risks. Every day, Euler Hermes monitors and analyzes the insolvency of more than 80 million small, medium and multinational companies through its proprietary monitoring system. Overall, the expert analyses cover markets that account for 92% of the global gross domestic product (GDP).


Please read the attached document for notes regarding forward-looking statements.

Source:

Euler Hermes Deutschland

04.02.2020

The fashion market: A move towards responsible consumption?

A study by the IFM - Première Vision chair
The fashion market in Europe and the United States:  A move towards responsible consumption?

Eco-responsible consumption is no longer a fashion trend, but a major groundswell now impacting the entire sector, from material sourcing to the consumer and the textile and manufacturing industries.
This is one of the major findings of a recent study by the Institut Français de la Mode as part of the IFM - Première Vision Chair that surveyed 5,000 consumers, who constitute a representative sample for France, Germany, Italy and the United States.

A study by the IFM - Première Vision chair
The fashion market in Europe and the United States:  A move towards responsible consumption?

Eco-responsible consumption is no longer a fashion trend, but a major groundswell now impacting the entire sector, from material sourcing to the consumer and the textile and manufacturing industries.
This is one of the major findings of a recent study by the Institut Français de la Mode as part of the IFM - Première Vision Chair that surveyed 5,000 consumers, who constitute a representative sample for France, Germany, Italy and the United States.

"For the first time, this study helps us better understand consumers' perceptions of the responsible fashion market and its products, and decipher their buying motivations and obstacles," said Gilles Lasbordes, Managing Director of Première Vision.
 
A real enthusiasm  
Eco-responsible fashion products are essential. Nearly 50% of European consumers report having purchased an eco-friendly fashion item in 2019 along with 46% of French consumers (including recycled, organic, made in France, and second-hand textiles).  

"These figures show consumers are committed to a level well above the estimate we would have expected, and indicate a real maturity in terms of their expectations. However, fashion is lagging behind other sectors such as food: the proportion of consumers who have purchased organic food products is over 60% in all countries. By the same token, especially in France and Italy, organic beauty products are meeting with real success, with 57% of French consumers purchasing them in 2019," notes Gilles Lasbordes.

In France, the 46% of consumers who bought eco-responsible fashion products are projected to spend an average of 370 Euros on fashion products (clothing and shoes) in 2019. Nationally, the average budget for eco-responsible fashion purchases per French consumer is 170 Euros, which is about 25% of the average budget for clothing and shoes in France.

What's driving this enthusiasm? In France and Italy, preserving and protecting the environment are the principal motivations behind such purchases. Consumers also pay special attention to the non-use of toxic chemicals. These concerns are well reflected in initiatives such as the Fashion Pact launched in the run-up to the G7 in Biarritz last summer.
     
Natural fibres and prices
The study also shows that, when searching for more responsible fashion products, consumers are very strongly guided by the choice of materials. They prefer natural fibres and recycled raw materials when they can, in particular when they are informed of their presence. Preconceived ideas about which materials are considered most harmful to the environment concern polyester, acrylic, polyamide and leather, respectively.

One of the other findings of this survey concerns barriers to consuming more responsible fashions, with one of the main barriers being a lack of information. The consumers feel they have a genuine lack of knowledge about eco-responsibility (its definition and criteria). Some 50.4% of French consumers admit to not knowing enough to select the right products.
 
Beyond a lack of education, another difficulty is access to these fashions, which consumers report not knowing where to find. This is a genuine obstacle for 39.8% of the French consumers canvassed. A lack of clarity of the offer - not much transparency on the part of brands, a multiplicity of certificates - and an under-representation of players - only 23% of French consumers reported knowing responsible fashion brands - is compounded, to a lesser extent, by the question of price, which is a barrier for 33% of French consumers.

On the other hand, style no longer represents an obstacle to the purchase of responsible products. Contrary to perceptions of only a few years ago, consumers today are aware that responsible fashion can be creative, desirable and respectful of the environment and people.

Lastly, consumers seeking to buy more responsible products are now faced with an offer that is still insufficiently developed in terms of their expectations. At the same time, second-hand purchases are increasing and feeding this trend: 56.1% of American women and 42.2% of French women purchased second-hand goods in 2019.
     
Made in…
For a majority of the French consumers surveyed, an eco-responsible fashion product must be manufactured in France (80%) or Europe (46%). This preference for national production is slightly lower in Italy (65%) and Germany (71%) but remains strong. "A product has to be manufactured as close as possible to the market where it is sold in order to reduce the negative impact of transport as much as possible," says a French consumer.  

Also, among the criteria to be met for socially responsible production, consumers emphasise respect for the health and safety of employees, a criteria that ranks far ahead of issues related to wages and discrimination of people employed in the sector.
 
A guiding hand to the fashion ecosystem
"The fashion ecosystem is being shaken up by this environmental phenomenon, with consumption in a state of strain and a slight decline in the mid-range, for example. This study will be useful to steer the sector, guide the market, provide precise analytic keys for industry and brands wishing to expand their offer. And that is also our objective and the role of Première Vision," underlines Gilles Lasbordes.

The consumption of eco-responsible fashion represents a significant growth opportunity for brands and labels. The next few years will certainly see the introduction of a new system that is more respectful of the environment and the social conditions under which goods are produced.

The results of this study were also used to enrich the experience of the show's 2,055 exhibitors - spinners, weavers, tanners, textile designers, accessory manufacturers and fashion manufacturers - and its 56,000 visitors - international groups and fashion brands - at Première Vision Paris last year 17 to 19 September in Villepinte.

 

More information:
Sustainable Apparel
Source:

Chair Institut Français de la Mode - Première Vision

TECHNICAL TEXTILES CONTINUE STEDAY RISE IN SHARE OF TOTAL EU TEXTILE PRODUCTION Foto: Gerd Altmann, Pixabay
26.11.2019

TECHNICAL TEXTILES CONTINUE STEDAY RISE IN SHARE OF TOTAL EU TEXTILE PRODUCTION

  • European Textile and Clothing Sector consolidates satisfactory evolution in 2018

The EU textile and Clothing industry finished the year 2018 with a consolidation of the positive key figures achieved over the last 5 years. First data published by Eurostat enhanced by EURATEX’s own calculations and estimates show a total industry turnover of € 178 billion, a minimal increase to last year’s € 177.6 billion, but significantly above the 2013 figure of € 163.8 billion. Investments of € 5.0 billion again increased slightly, as they did every year since 2013.

Employment of 1.66 million registered a small dip compared to 2017 but remained essentially unchanged over the last 5 years – a remarkable achievement for a sector that keeps realizing labour efficiencies. As a result, the average turnover per employee has increased from 97,000 € in 2013 to 107,000 € in 2018. Over the last 10 years, turnover and value-added per employee have increased by over 30%.

  • European Textile and Clothing Sector consolidates satisfactory evolution in 2018

The EU textile and Clothing industry finished the year 2018 with a consolidation of the positive key figures achieved over the last 5 years. First data published by Eurostat enhanced by EURATEX’s own calculations and estimates show a total industry turnover of € 178 billion, a minimal increase to last year’s € 177.6 billion, but significantly above the 2013 figure of € 163.8 billion. Investments of € 5.0 billion again increased slightly, as they did every year since 2013.

Employment of 1.66 million registered a small dip compared to 2017 but remained essentially unchanged over the last 5 years – a remarkable achievement for a sector that keeps realizing labour efficiencies. As a result, the average turnover per employee has increased from 97,000 € in 2013 to 107,000 € in 2018. Over the last 10 years, turnover and value-added per employee have increased by over 30%.

The brightest spot again is the export figure, which grew by 7% compared to last year and for the first time reached € 50 billion. The industry’s extra-EU exports which now stand at 28% of annual turnover, up from less than 20% 10 years ago, is the clearest proof of the increasing global competitiveness of Europe’s textile and clothing companies.

European high quality textiles and premium fashion products are in growing demand, both in high income countries such as the United States (our biggest export destination in non-European countries with € 6 billion), Switzerland, Japan or Canada, but also emerging countries such as China and Hong Kong (over € 6.7 billion in combined exports), Russia, Turkey and the Middle-East.

European exports benefit from faster economic growth in many non-European markets, but also from better market access as a result of successful EU trade negotiations with countries such as South Korea, Canada or Japan.

Since 2015, export growth has slightly outpaced import growth, which means that our trade deficit of approximately € 65 billion has stopped widening. Rather than an absolute import growth, recent  years have brought important shifts in the main import countries. While China remains by far the number one import source, lower cost countries such as Bangladesh, Cambodia, Myanmar and Vietnam have gained in relative importance, especially for clothing.

Technical textiles are an undisputed success story of the European industry. Exact figures for this part of the industry are difficult to compute due to the dual use of many yarns and fabrics for both technical and conventional applications. National statistics become available only with a significant time lag or remain unpublished for smaller EU countries. For 2016, EURATEX estimates that EU industry turnover of technical textiles, (including yarn-type, fabric-type and non-woven materials but excluding any made-up articles) reached about € 24 billion or 27% of total textile industry turnover. Over the years this percentage has steadily grown and is expected to continue to do so in the future.

Italy and Germany are Europe’s biggest producers of technical textiles, each producing over € 4.5 billion worth of technical textiles per year. The highest share for technical textiles in national textile turnover is registered in Scandinavian countries such as Sweden and Finland and central European countries such as Germany, the Czech Republic or Slovenia. The fastest growth of technical textiles over the last 10 years has been achieved by Poland, followed by Belgium, Austria and Portugal. This clearly demonstrates that technical textiles are gaining in importance all over Europe.

Labour productivity is much higher in the technical textiles part of the industry. Turnover per employee stands at € 215,000, more than twice the average textile and clothing industry rate. In this regard, EURATEX Innovation & Skills Director Lutz Walter indicates how “innovation and employee expertise are fundamental to reach and defend the strong technical textile position of the EU industry”.

In terms of international trade, both exports and imports of technical textiles have grown continuously over the years, with an almost zero trade balance in Euro terms. However, when looking into the product category types, it is clear that Europe’s trade balance is massively positive in higher added value products such as medical textiles, highly technical finished fabrics and non-wovens, but negative in such categories as bags, sacks, tarpaulins or cleaning cloths.

Again the United States is Europe’s largest technical textiles customer, followed by China, which has registered very fast growth in recent years.

 

More information:
Euratex Technical Textiles
Source:

EURATEX

© Koelnmesse GmbH, Kind + Jugend
23.07.2019

KIND + JUGEND 2019: ONCE AGAIN AROUND 1,200 PROVIDERS FROM MORE THAN 50 COUNTRIES

  • For the first time with a Start-up Area
  • More than 200 applications for the Innovation Award
  • New concept for The Connected Kidsroom
  • Kids Design Award
  • Design Parc
  • Trend Forum with concentrated lectures

 
Kind + Jugend in Cologne: it is not only the most important and most international business and communication platform of the baby and toddler outfitting industry. It is surely also the world's most inspiring and cheerful event for this theme. For the coming trade fair from 19 to 22 September 2019, around 1,200 providers from more than 50 countries will present an almost complete overview of the latest trends and products for the first baby and toddler years.

  • For the first time with a Start-up Area
  • More than 200 applications for the Innovation Award
  • New concept for The Connected Kidsroom
  • Kids Design Award
  • Design Parc
  • Trend Forum with concentrated lectures

 
Kind + Jugend in Cologne: it is not only the most important and most international business and communication platform of the baby and toddler outfitting industry. It is surely also the world's most inspiring and cheerful event for this theme. For the coming trade fair from 19 to 22 September 2019, around 1,200 providers from more than 50 countries will present an almost complete overview of the latest trends and products for the first baby and toddler years.

As usual, top, smaller and medium-sized companies will explore the extensive bandwidth of the theme worlds. These include the baby carriage, children's car seat, children's furniture, textile and care outfitting, hygiene item, safety and networked electronics, as well as educational toys and toys sections. The trademarks of the exhibitors and thus also of the trade fair are the high quality requirements for the products and concepts shown, as well as the wealth of innovations presented.

The theme of sustainability is also proving to be a growing trend. Kind + Jugend is also offering the manufacturers of textiles a special listing service for the first time this year. The event programme at Kind + Jugend, with award ceremonies, special events and impulse lectures on the most important themes also plays a central role for the representation and mediating of trends.

Among the key players exhibiting at Kind + Jugend 2019 are ABC Design, Angelcare, Artsana/Chicco, Babybjörn, Babymoov, bibi/Lamprecht, Bébécar, Brevi, Britax Römer, Cam il mondo, Cybex, Delta Children, Diono, Dorel, Doudou et Compagnie, Ergobaby, Easywalker, Foppapedretti, Geuther, Haba, Hartan, Hauck, HTS Besafe, iCandy, Infantino, Jané/Concord, Joie/Nuna, Joolz, Julius Zöllner, Kaloo/Juratoys, Lässig, Leander, Mayborn/tommee-tippee, Melissa&Doug, Micuna, Munchkin, Mutsy, Nattou, Newell, Nuby, Odenwälder, Paidi, Peg Perego, Pinolino, reer, Roba Baumann, rotho, Schardt, Sauthon, Sterntaler, Thule, Tobi, Uppababy and Vulli.. New exhibitors or returnees in 2019 once again include Bugaboo, Mattel and Silver Cross. Among the new companies at Kind + Jugend 2019 are APOLO Baby from Japan, Felice from Italy or Warmbebe from France.

The share of foreign exhibitors is once again impressive. Around 85 percent of exhibitors come from abroad, with strong participation of German manufacturers on the whole. Especially well-represented are exhibitors from the United Kingdom, the Netherlands, the USA, France, Spain and Poland. Belgium and Denmark are also in place with large-scale participation. Asian providers also have their fixed place at the trade fair, China, Hong Kong, Taiwan and Korea especially worthy of mention. In addition to this, around 20 companies from Australia exhibit regularly.

The foreign share of visitors is also very high at 75% and spans the globe. In 2018, the trade visitors came to Kind + Jugend in Cologne from 125 countries. Besides Germany, the European nations also take the lead here. Asian, Eastern European and North American buyers were also strongly represented at the trade fair. Visitors come from all segments of the trade: from the specialised and wholesale trade to department stores and chemist's shops, as well as the various online commerce channels.

Kind + Jugend once again covers all levels of halls 10 and 11, as well as hall 4.1, and thus spans a gross exhibition surface of 110,000 m². The clear hall structure with two entrances makes it easier for visitors to orient themselves and clusters the trade fair offerings in clearly defined theme areas. Vistors can prepare for the trade fair especially well with the help of the exhibitor database. On the grounds, the practical trade fair app assists in the search for exhibitors, products and brands. Familiar and new special events, as well as the much appreciated award ceremonies and the trend forum with expert lectures bring out the main points of the trade fair happenings.
 
For the first time: Start-up Area at Kind + Jugend

For the first time, Kind + Jugend is offering young, international companies the opportunity to present themselves in the context of a Start-up Area at favourable conditions. Sixteen providers from six countries will take advantage of the opportunity to exhibit at the world's leading trade fair for the baby and toddler outfitting industry at favourable conditions. The 16 start-ups come from Australia, Germany, France, Italy, Japan and the Netherlands. Their products suit the theme worlds of Kind + Jugend extremely well and extend from a sustainable diaper system through digital measuring devices for child care to exclusive accessories for mothers and children, as well as children's furniture for learning and playing. (Hall 11.1, B50 – C59)

Sustainability and environmental awareness are the trend. Joint action together with BTE for the first time.
Together with the German Textile Trade Association (BTE), which is also a member of the Partnership for Sustainable Textiles, we will separately list those exhibitors who can attest to the sustainable production of their exhibited textiles by means of recognised seals of approval and/or other certificates. The recognised seals include, for example, GOTS, Oekotex, bluesign or Made in Green. The BTE assumes responsibility for the formal examination of the submissions. The list of manufacturers showing sustainable textiles at the trade fair will be available at the Kind + Jugend website, so that trade fair visitors can plan their tour with a focus on this area of interest.

The Connected Kidsroom
Since 2017, the The Connected Kidsroom special event has drawn attention to digital and smart products or concepts for the outfitting of nurseries and children's rooms. The theme will also receive special attention this year with a new concept. Attractively integrated into a complete children's room with furniture, doors and windows, the special event shows the various products that control technical functions, measure values like the temperature or pulse of the child, regulate climatic room conditions, register movement and much more. All products are already available in retail outlets. In order to be able to represent the functions even more informatively for trade fair visitors, an expert will be on location to demonstrate the applications, provide explanations and answer questions. (Hall 11.2, E21)

Innovation Award
More than 200 applications for the Kind + Jugend Innovation Award have been submitted this year for evaluation by a jury of trade journalists and health experts, a new record. Following intensive consultation, the jury nominates a selection of products for a special event that is regularly one of the crowd pullers at Kind + Jugend. The Innovation Awards are then presented to the eight winners in eight categories on the first day of the trade fair. The award is the most important recognition of innovations in the baby and toddler sector, and is also highly respected outside of the industry.

Kids Design Award
The Kids Design Award promotes products and concepts that distinguish themselves through special design, but are not yet commercially available. The ten best designs of the competition, which Kind + Jugend tenders in advance of the trade fair with a particular view to young designers, are shown in an attractive special area. The winner of the Kids Design Award will also be honoured on the first day of the trade fair (Hall 11.1, D40/E49)

Design Parc
Design has a high standing at Kind + Jugend. International design products that are ready for the market therefore appear in the special event of the Design Parc, which shows select products and furniture – from children's beds to play kitchens and dishes suitable for children. (Hall 11.1, C40 - D59)

Trendforum
The stage of the Trend Forum can once again be found in hall 11.1 this year. Not only are the Innovation Award and the Kids Design Award presented on the first day. All those interested can look forward to a high quality expert lecture program on the first three days of the trade fair. The trend researchers from GfK, Trendbible and The Insights People will once again present market data, as well as trends and tendencies from a global perspective. The German association of children's outfitting manufacturers (BDKH) is also participating once again, this time with a focus on the theme of the children's car seat. (Hall 11.1, E50/F59).

Fotos: (c) ITMA
25.06.2019

A MORE INTERNATIONAL ITMA 2019 SETS NEW RECORD WITH BIGGEST NUMBER OF EXHIBITORS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

More information:
ITMA 2019
Source:

CEMATEX & ITMA Services

Gerd Altmann: PIXABAY
02.04.2019

ITALY'S SHOE AND LEATHER INDUSTRY WANTS TO BECOME MORE DIGITAL

  • Rethinking in traditional industry

Italy's shoe and shoe technology manufacturers are losing market share in important markets and want to make their production more efficient and digital. German companies score points in niches.

Even though 9 out of 10 shoes today come from Asia, Europe's largest shoe producer Italy still ranks among the top ten of the world's largest shoe producers and is the undisputed market leader in the luxury segment. Nevertheless, sales in terms of volume at home and abroad are falling and so is production. At the moment, the sector can only secure its turnover through higher prices.

  • Rethinking in traditional industry

Italy's shoe and shoe technology manufacturers are losing market share in important markets and want to make their production more efficient and digital. German companies score points in niches.

Even though 9 out of 10 shoes today come from Asia, Europe's largest shoe producer Italy still ranks among the top ten of the world's largest shoe producers and is the undisputed market leader in the luxury segment. Nevertheless, sales in terms of volume at home and abroad are falling and so is production. At the moment, the sector can only secure its turnover through higher prices.

The decline in export demand, which accounts for around 85 percent of Italian footwear, is particularly painful. According to the sector association Assocalzaturifici, international sales fell by around 4 million pairs between January and October 2018. Only an average price increase of 6.4 percent enabled a year-on-year increase. On the German sales market, sales of Italian shoes also stagnated at around EUR 1 billion, while German shoe exports to Italy, with a plus of 34.5 percent to around EUR 485 million, achieved one of the highest growth rates in German trade with Italy.

Orders received by the Italian footwear industry in the fourth quarter of 2018 declined both domestic (-2.5 percent) and abroad (-0.9 percent). The only market segment that is still growing in Italy itself are sports shoes/sneakers. According to experts, the falling number of units drives manufacturers to find solutions that help to reduce production costs.

Opportunities for Germans in Digital Change and in niches
In the shoe and leather technology domestic manufacturers dominate. Assomac, the Association for Shoe and Leather Technology, estimates, that in 2018 the approximately 240 Italian companies in the sector achieved a turnover of around EUR 760 million. By contrast, exports of shoe and leather machinery, which account for around three quarters of the sector sales, fell by around 6.2 percent in 2018. Italy is by far the most important exporter of leather and shoe technology in the world. In 2018, shoe and leather machinery worth of around EUR 439 billion went abroad, particularly to China, Vietnam and India.

German deliveries of shoe and leather technology to Italy are at a low level and, according to the VDMA trade association Textile Care, Fabric and Leather Technologies, reached around EUR 4 million in 2018. Italy thus ranked fourth behind China, the USA and Mexico in terms of export destinations. With foreign deliveries of around EUR 50 million per year, Germany is the world's fifth largest exporter.

Market experts see opportunities for German companies in Italy with components that help domestic companies in international competition, for example the use of intelligent and networking machines. Despite their great competence, Italian manufacturers are very traditional and are struggling with the digital changes. But industry experts report that the companies are rethinking and interested in new solutions.
"We support our Italian customers in installing more software solutions for sewing machines and in networking machines," says Sebastian Feges, sales engineer at the Schwetzingen-based company EFKA, one of the last German companies in the sewing industry.  EFKA supplies Italian shoe and leather machine manufacturers with sewing drive controls. The company scores particularly well in areas where maximum precision is essential and every wrong stitch leads to expensive scrap, such as leather seats for Ferrari. According to Feges, money for investments in Italy is not easy to get at the moment. However, he sees an interesting perspective in the promotion of the Italian government for the purchase of industry 4.0 equipment and software, the so-called Iperammortamento, which is not yet sufficiently known.

Further opportunities exist in niches that are gaining in importance due to current industry trends such as digital printing on leather. The machines of Hansa Mixer from Bremen produce foam for textile and digital printing and the sealing of leather hides. "We offer a niche product that can be used anywhere," General Sales Manager Achim Schmidt says. In addition to the shoe and leather industry, Hansa Mixer also supplies food manufacturers such as Ferrero. "Italy is an interesting market for us and we expect good orders."

Another industry trend is greater sustainability, especially in the often-criticized leather industry. Assomac is expressly committed to this goal and has – next to other thing - introduced the new Targa Verde certificate.

 

Kennzahlen der italienischen Schuhindustrie 2018
Indicator Value Change in 2018/2017
Imports of shoe and leather machinery (HS 8453) EUR 36 mio 5.6
Footwear production 185.7 million pairs -2.6
Domestic Shoe industry sales EUR 7.8 billion 0.7
Export volume 2018 176.5 mio pairs -2.3
Export revenues EUR 9.6 billion 3.9

Sources: Assocalzaturifici, Instat

The Italian footwear industry consists of about 4,700 companies with about 77,000 employees. According to the industry association Assocalzaturifici, sector sales in 2017 amounted to about EUR 14.2 billion. Industry clusters are the regions of Venice, Tuscany, Marche, Lombardy, Campania, Apulia and Emilia Romagna. The cluster in Brento, Veneto produces about 11 percent of the national output. Also International manufacturers such as LVMH and Louis Vuitton are investing and producing in Italy.

 

12.02.2019

TECHNICAL TEXTILES ARE A SUCCESSFUL INDUSTRY IN ISRAEL

  • Israeli Manufacturers with increasing Presence on the World Market

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

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

  • Israeli Manufacturers with increasing Presence on the World Market

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

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

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

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

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

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

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

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

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

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

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

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

Source:

Wladimir Struminski, Germany Trade & Invest www.gtai.de

20.11.2018

CHINA'S CLOTHING COMPANIESS REPOSITION THEMSELVES

  • 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.

  • 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.

China's share of world clothing exports 1) (in USD billion; shares in %)
  2008 2013 2015 2017
World Export 380 468 471 486
China Export 120 177 175 157
China's share 31.6 37.9 37.1 32.4

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.

Export of clothing 1) by country (in USD million; shares in %)
  2008 Share 2013 Share 2017 Share
World Export 380,000 100.0 468,000 100.0 486,000 100.0
China 120,405 31.6 177,435 37.9 157,464 32.4
ASEAN3) 29,793 7.8 42,123 9.0 61,441 12.6
Vietnam 8,724 2.3 17,230 3.7 27,930 5.7
Kambodscha 3,014 0.8 4,832 1.0 11,250 2.3
Bangladesch 12,035 3.2 19,679 4.2 38,460 7.9
India 10,968 2.9 16,843 3.6 18,313 4.0
Germany 18,183 4.8 19,178 4.1 22,034 4.6

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.

China's textile machinery imports *) by selected countries (in USD million; year-on-year change and 2017 shares in %)
  2015 2016 2017 Change Shares
Total 3,354 2,907 3,897 34.1 100.0
including          
Japan 728 765 1,169 52.8 30.0
Germany 1,219 851 1,101 29.4 28.3
Italy 415 347 448 29.1 11.5
Taiwan 206 187 203 8.6 5.2
Belgium 134 124 173 4.0 4.4
Switzerland 104 111 126 13.5 3.2

*) 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.

 

More information:
China Sampe China GTAI
Source:

Stefanie Schmitt, Germany Trade & Invest www.gtai.de

13.11.2018

TUNISIA'S TEXTILE SECTOR RECOVERS

German suppliers can benefit from production expansions
Tunis (GTAI) - After difficult years, Tunisia's textile sector is recovering. Exports and foreign investment are on the rise again. Production is for export, especially to Europe.

At the end of October 2018, the Swiss auditing group SGS reported its expanded testing capacity for textiles in Tunisia. This was in response to the increased demand from producers producing for the world market in Tunisia. The sector has not been doing well in recent years. Even before the revolution in 2011, competitive pressure from Asian producers had left its mark, especially after the expiry of the multi-fiber agreement in 2005. According to the FTTH (Fédération Tunisienne du textile et de l'habillement), more than 400 companies have left the country since 2011 and 40,000 jobs have been lost.

German suppliers can benefit from production expansions
Tunis (GTAI) - After difficult years, Tunisia's textile sector is recovering. Exports and foreign investment are on the rise again. Production is for export, especially to Europe.

At the end of October 2018, the Swiss auditing group SGS reported its expanded testing capacity for textiles in Tunisia. This was in response to the increased demand from producers producing for the world market in Tunisia. The sector has not been doing well in recent years. Even before the revolution in 2011, competitive pressure from Asian producers had left its mark, especially after the expiry of the multi-fiber agreement in 2005. According to the FTTH (Fédération Tunisienne du textile et de l'habillement), more than 400 companies have left the country since 2011 and 40,000 jobs have been lost.

Now positive news are coming: In 2018, for example, the German Gonser Group opened its fifth production facility in Tunisia. In total, foreign direct investments in the first six months of 2018 amounted to Tunisian Dinar (tD) 24.9 million (approx. EUR 7.5 million), 1 tD = approx. EUR 0.301as of 11. 07.), more than twice as high as in the corresponding period of the previous year. The fact, that the number of new created jobs as a result has risen much less, can be seen as confirmation of the structural change: Away from simple mass production to higher-value production.

A high level of employee training is also decisive for this. The Sartex company shows how this can be ensured. In 2014, the Tunisian company opened a training center, in which some 500 Tunisians have already been trained and most of them were hired by Sartex. The company was supported by the Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Centre d'Orientation et de Reconversion Professionnelle (CORP) of the AHK Tunisia.

During the visit of Federal Development Minister Müller in October 2018, an agreement was signed on the establishment of a training center in EL Alia in the Bizerte governorate. Among others the German company van Laack is producing in the region. A total of 180,000 Tunisians now work in the textile sector, which accounts with that for about 40 percent of industrial jobs.

Wage increases in two steps
More than one year after its foundation, FTTH has established itself as the interest representative of textile companies. In 2017 the company split from the employers' association UTICA (Union Tunisians de l'Industrie, du Commerce et de l'Artisanat), not least because the envisaged general wage increases for the company's own industrial sector were considered unworkable. But meanwhile, common ground and cooperation have been emphasized again, or FTTH describes itself as part of UTICA, with a high degree of autonomy.

An agreement has now also been reached with the Union Générale Tunisienne du Travail (UGTT). This provides for wage increases of 6.5 percent as of 1 January 2019 and 2020 respectively. This wage increases are thus likely to be lower than the inflation, provided that the forecasts for the inflation rate of around 7.5 percent for the current year 2018 will be that way. Currently, the minimum wage in Tunisia's textile and clothing industry for unskilled job starters is around EUR 129 (as of 07-11-2018) per 48-hour week.

Of the more than 1,600 textile companies, over 1,400 are producing exclusively for export. The target markets are clearly in Europe. More than 60 percent of exports went to France and Italy in 2016, with Germany in third place with about 11 percent. As the largest non-European customer, the USA was ranked ninth with less than one per cent. By joining the Common Market for Southern and Eastern Africa (COMESA), Tunisia aims to develop new markets. According to the Ministry of Commerce, bilateral talks are underway with several African countries to provide duty-free market access for Tunisian textiles.

Are Chinese investors discovering Tunisia as a location?
In addition to the relations with the African continent, relations with China could also change in the medium term. At the China-Africa Cooperation Forum held in Beijing in September 2018, Chinese textile companies expressed their interest in Tunisia as a production location. As wages have increased in China in the meantime, a relocation of production to certain sectors of the textile industry could prove useful for the European market.

Exports already increased in 2017. The trend seems to continue in 2018. In 2016 exports were USD 2.9 billion, in 2017 USD 3 billion (a significant increase due to the Dinar's decline in exchange rates (7 billion tD against tD 8.4 billion). According to the first announcements, exports to Europe in the first months of 2018 are expected to have increased again by 3.5 percent compared to 2017. Improving transport and customs clearance should be important for the further development of the textile sector. Especially the companies producing purely for export express this again and again. The textile sector in particular is dependent on short delivery times.

Meanwhile, FTTH is also working to improve the competitive position of Tunisian textile companies on their home market. This applies, for example, to the imports of used clothing for which stricter controls are being desired.

Tunisian imports of machinery, apparatus and equipment for the textile and leather industries and parts thereof (SITC 724; in USD million)
Origin 2015 2016 2017
Total 68.8 67.0 67.3
Italy 15.8 13.7 17.9
China 20.5 12.4 10.6
France   6.5   4.0   7.4
Germany   5.0   6.3   7.2

Note: Thailand was the third largest supplier in 2016, but fell behind in 2017. The table shows the four most important suppliers in 2017
Source: UN Comtrade

In addition to production expansions by German companies, German suppliers could also benefit if the recovery and, above all, structural changes will continue. While total imports of textile and leather machinery fell slightly from around USD 70 million to USD 67 million between 2015 and 2017, German deliveries increased from USD 5 million to USD 7.2 million. (JPS)

Further information on the Chinese commitment in Tunisia can be found online (German only): Link

 

More information:
Tunesia GTAI
Source:

Peter Schmitz, Germany Trade & Invest www.gtai.de

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY Photo: Pixabay
11.09.2018

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY

  • 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.

  • 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.

Textile and clothing industry in India 1)
  2015/16
 
2016/17 2)  2017/18 2)
Export of textiles and textiles products USD in USD billion 18.1 18.2 18.7
Export of clothing 17.0 17.4 16.7
Import of yarn, fabrics, made-ups in USD billion 1.7 1.5 n.a.
Change of production of textiles in % -0.2 -3.2 n.a.
Change of production of non-knitted clothing in % -3.6 -3.3 n.a.


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.

Contact Details
Name Internet Remark
Germany Trade & Invest http://www.gtai.de/indien Foreign information for the German Export Business
AHK Indien http://www.indien.ahk.de Contact for German companies
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Government 
Confederation of Indian Textile Industry http://www.citiindia.com Textile Association
Textile Association India http://www.textileassociationindia.org Textile Association India
The Clothing Manufacturers Association of India http://www.cmai.in Clothing Association


    

More information:
India Bangladesh(7621)
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

Shopping malls Photo: Pixabay
24.07.2018

NEW TRENDS IN ITALIAN RETAIL OPEN UP OPPORTUNITIES

  • Franchising takes off, more and more German retail chains discover Italy

Milan (GTAI) - The Italian retail sector is modernizing and the franchise economy is growing. Italian franchise systems are gaining ground. New modern shopping centers, including the largest in Europe, create space for new shops. German retail chains are expanding in many segments, from discount food and other consumer goods to services. Northern Italy is considered a popular test site. High quality and a price advantage are the keys to success.

  • Franchising takes off, more and more German retail chains discover Italy

Milan (GTAI) - The Italian retail sector is modernizing and the franchise economy is growing. Italian franchise systems are gaining ground. New modern shopping centers, including the largest in Europe, create space for new shops. German retail chains are expanding in many segments, from discount food and other consumer goods to services. Northern Italy is considered a popular test site. High quality and a price advantage are the keys to success.

The Italian retail sector is changing. The number of classic corner shops is declining, the modern organized retail trade is growing. The franchise economy in particular is developing positively. Beyond the classical areas such as food and fashion, various Italian franchise systems are spreading more and more visibly in the big cities.
 
According to the industry association Assofranchising, the franchise industry had a turnover of approximately EUR 24.6 billion in 2017. This represents an increase of 2.6 percent compared to the previous year and an increase of 5.7 percent since 2014. With a similar number of systems (929 in Italy, 972 in Germany), the German franchise industry generated almost five times as much turnover. One reason for this is that German franchise systems have on average more than three times as many businesses per franchise.

Development of the franchise economy in Italy
  2016 2017 Change (in %)
Sales (Euro Mio.)  23,930 24,545 2.6
Franchise systems 950 929 -2.2
Businesses 50,720 51,671 1.9
Italian businesses abroad 7,871 10,079 28.1
Italian businesses abroad (min. 3 companies) 169 179 5.9
Foreign systems in Italy 61 71 16.4
Employees 195,303 199,260 2.0
Average size of systems in Italy (number of companies) 53.4 55.6 4.2
Average size of Italian systems abroad (number of companies) 46.6 56.3 20.9

   Source: Rapporto Assofranchising 2018

But the segment is catching up in Italy. Italian franchise systems are expanding, also abroad. Outside Italy, their number increased by around 6 percent in 2017, while their average size (measured by the number of businesses) increased by around 21 percent. The domestic average dimension is also growing. The country is also becoming more attractive for foreign franchisors. In 2017, the number of foreign franchise systems increased by 16 percent. The relevant trade fair is the Salone Franchising, which will take place from October 25th to 27th 2018 in Milan.   

New shopping centers are driving the developments forward
Developments in the retail sector are accompanied by new construction projects. A number of new shopping centers are currently under construction in Italy, creating space for the new generation of franchises and retail chains. The major CityLife project on the former Milan exhibition grounds is a current example. In addition to two of the three planned skyscrapers (including Allianz's new headquarter in Italy), a new shopping center was inaugurated in autumn 2017. Particularly in the catering sector new Italian chains, which are expanding nationwide, can be seen. A new gastronomy floor with restaurants and cafés in the middle price segment was recently inaugurated at the Termini railway station in Rome.

A number of modern shopping centers are still under construction, including the new Westfield Milan. Project operators describe it as the largest shopping center in Europe. With an investment EUR 1.4 billion Westfield Milan is to be inaugurated in 2020. The majority of the new construction projects are located in the larger cities in the north, but Rome and Naples will soon receive new shopping centers also.

Shopping centers under construction in Italy
Designation Investment (Mio. Euro) Area (1,000 sqm) Completion Remarks
Westfield, Milan 1,400 60 2020

http://www.westfieldcorp.com

Maximo, Rome 300 61 2019 Cushman & Wakefield
Emilia Shopping District, Parma 200 74 2019

http://www.sonaesierra.com

Maximall Pompeii, Napoli 150 200 2019

http://www.maximall.it/pompeii

Falcon Malls Cascina Merlata, Milan n.a. 65 2021 http://falconmalls.it
Falcon Malls Concordia, Milan n.a. 131 2021 http://falconmalls.it
Waltherpark Shopping - Bozen 23 k.A. 2021

https://waltherpark.com

    Source: Research of Germany Trade & Invest

Opportunities for German retail chains
Another trend in Italy is the expansion of German retail chains. One growth area is the market for discount foods. According to Nielsen, discounters had a market share of 17 percent of the sold food at the end of 2017. The market leader is Eurospin from Italy, followed by Lidl. In 2018 Aldi opened its first store in northern Italy and by the end of 2018 it is planned to open 45 stores. Lidl is defending itself against its new competitor with planned investments in Italy amounting to EUR 350 mio for a new inner-city store concept. A total of 40 new points of sale are planned, and a further 50 stores are to be modernized.

Both German supermarket chains confirm that a local strategy for Italian gourmets is indispensable. Lidl sources 80 percent of its food products from Italy, while Aldi's share is almost as high at 75 percent.

In terms of price, the recipe for success of the German retail chains is somewhat different from Germany. Although German retailers continue to score with a good price-performance ratio, the focus in Italy is on the mid-price segment.

The latest example is the drugstore chain dm. The first branch was inaugurated at the end of 2017. There are plans to open 100 stores in northern Italy by 2020. dm offers not only a price advantage over its Italian competitors, but also high-quality products. In addition, there are hardly any "one-stop shops" in Italy, which are also drugstores, but also sell beauty products, organic and natural products as well as baby products.   

The Douglas perfumery chain is expanding also in Italy. At the end of 2017, Douglas' parent company completed the acquisition of two of the leading perfumeries in Italy, Limoni and La Gardenia.    

Fielmann is another example of a German chain that has conquered the Italian market in recent years with high-quality products and a price advantage. With entry into the South Tyrol market and ongoing expansion in northern Italy, Fielmann is popular with Italian consumers despite the large competing manufacturers of glasses in Italy due to its price advantages.

Germany's successful model is not limited to food and other consumer goods. The Berlin-based company Flixbus is an example that the concept of quality and price competition can also be successfully applied to the service sector. Flixbus has been in Italy since 2015 and the number of passengers is increasing constantly. In 2017, 40 million Italians were on the road with Flixbus, twice as many as the year before. Italy is the fastest growing market among 26 countries for the company.

More information:
Italy Franchisesysteme Retail
Source:

Robert Scheid, Germany Trade & Invest www.gtai.de

Photo: Pixabay
29.05.2018

ITALIAN FASHION INDUSTRY ON COURSE FOR INNOVATION

  • FOCUS ON DIGITIZATION AND SUSTAINABILITY

Mailand (GTAI) - The Italian fashion industry is changing. The digitalization of production and the growth in online trading are forcing a rethinking in the traditional sector. The topic of sustainability is becoming increasingly important. Against this background, Italian fashion houses are increasingly investing in their future strategies. German companies see good business opportunities as technology partners.

The Italian fashion industry is one of the core sectors of the Italian economy. In 2017, the sector increased its sales by 2.4 percent to EUR 54.1 billion, as reported the industry association Confindustria Moda. For 2018, the association expects a further increase of 2.6 percent to EUR 55.4 billion. The goal is to exceed the EUR 60 billion by 2020.

  • FOCUS ON DIGITIZATION AND SUSTAINABILITY

Mailand (GTAI) - The Italian fashion industry is changing. The digitalization of production and the growth in online trading are forcing a rethinking in the traditional sector. The topic of sustainability is becoming increasingly important. Against this background, Italian fashion houses are increasingly investing in their future strategies. German companies see good business opportunities as technology partners.

The Italian fashion industry is one of the core sectors of the Italian economy. In 2017, the sector increased its sales by 2.4 percent to EUR 54.1 billion, as reported the industry association Confindustria Moda. For 2018, the association expects a further increase of 2.6 percent to EUR 55.4 billion. The goal is to exceed the EUR 60 billion by 2020.

But the sector is developing inconsistently. Sales of intermediate products such as fabrics have been stagnating for years, while sales of end products such as clothing, shoes and bags are increasing. Both areas grew in 2017. End products (+2.9 percent) continue to be more successful than primary products (+2.2 percent). The main reason for the positive development of the fashion industry in recent years is the strong export demand for Italian products. In 2017 exports rose by a total of 3.5 percent and exceeded the EUR 30 billion mark for the first time.

The main export hits are clothing (one third of fashion exports), leather goods (around 20 percent) and shoes (around 18 percent), followed by fabrics (9 percent) and home textiles (9 percent). Sector representatives are concerned about developments in some important sales markets. Exports to the USA and Japan declined in 2017, the rising demand from China and Russia could not compensate these losses.

Significant rise in fashion imports
Domestic demand for fashion stagnated in 2017, while significantly more preproducts from the Far East and end products from industrialized countries were imported. Overall, imports increased by 2.2 percent to EUR 21.1 billion in 2017, Confindustria is expecting a further increase of 2.4 percent in 2018.

Germany is one of the most important markets for Italian fashion manufacturers; Italian shoes and bags are particularly popular with German customers. In return, Germany, with imports worth EUR 1.3 billion (plus 4.1 percent), ranked fourth as a supplier country in 2017, behind China, France and Spain. Clothing accounts for about half of German fashion imports and textiles for the other half. Germany is an important supplier of technical textiles, including sports goods and for the automotive industry.

Many companies strengthen their online presence  
The digitalization of the Italian industry does not stop at the fashion industry either. Thanks to the new technologies, traditional manufacturers can increasingly reach their customers directly without intermediaries.

How well this works was demonstrated by the Italian start-up company Yoox, an online luxury fashion retailer. Founded in 2000, the company merged with the French online fashion company and strong competitor Net-a-Porter in 2015. The Group is now active in 180 countries and generated sales of EUR 2.1 billion in 2017.
Many companies are strengthening their online presence and using their stores primarily as showcases to promote brands or new collections. The company Beste with the still new brand for men Monobi is an actual example. The traditional fashion houses Loro Piana and Zegna have been active in this direction already for several years.

Industry 4.0 sets impulses
Digitalization also makes new production processes possible for fashion houses. The networking of machines reduces production times, increases efficiency and reduces electricity and water consumption. In addition, manufacturers get the opportunity to offer tailormade solutions. Digitalization also ensures through just-in-time concepts that inventories and sales areas can be reduced, which leads to falling costs.

Well-known Italian fashion houses are investing heavily into the future. The luxury company Gucci has invested around EUR 100 million in a new innovation center, the so called ArtLab, in the greater Florence area. The company Beste has started two research projects in the field of Industry 4.0. The intensive research focuses on the development of new, environmentally friendly materials and the development of a digital platform for the planning, production and distribution of garments.

Sustainability is increasingly becoming a sales argument
The topic of sustainability is becoming increasingly important. The National Chamber of Italian Fashion (CNMI), for example, organizes discussion rounds on the subject. The fashion house Ferragamo has presented a sustainability plan to reduce greenhouse gas emissions and energy consumption. A new development by Ferragamo is also a sustainable fabric made from orange peels.

Gucci, Armani, Bulgari, the list of the world-famous Italian fashion companies is long. At the same time, Italy also has a large number of small and very small companies in the fashion sector. In 2017, the average number of employees in the companies was 9. Small and medium-sized com-panies also rely on sustainability.

The major Italian bank Unicredit, together with the European Investment Bank, is providing low interest loans for small and medium-sized fashion companies (up to 250 employees) for relevant investments. Similar programs are provided by the major bank Intesa Sanpaolo.

Source:

Robert Scheid, Germany Trade & Invest www.gtai.de

13.03.2018

CONVERSION OF THE CLOTHING INDUSTRY IN BANGLADESH NOT YET COMPLETED

  • Eports grow slowly
  • Industry needs new concepts

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

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

  • Eports grow slowly
  • Industry needs new concepts

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

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

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

FDI inflows into the Bangladeshi textile and clothing industry (in USD millions.)
Financial year 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
FDI inflows, net 241 412 446 352 396 360

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

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

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

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

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

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

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

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

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

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

Bangladesh's Apparel Exports (in USD million) 2014/15 *) 2015/16 *) 2016/17 *)
Total     25,491 28,094   28,150
Thereof           
.Weaving goods             13,065 14,739 14,393
.Knitting goods  12,427  13,355 13,757
Customers        
.USA            5,288 5,625 5,204
.Germany  4,339 4,653 5,135
.Great Britain  2,904  3,524 3,307
.Spain        1,626 1,864 1,879
.France  1,618 1,714 1,765
.Italy       1,243 1,278  1,349
.Canada             929 998 946
.Netherlands  627  660 814
.Belgium   772 835 753
.Japan            653 774  744
Poland         548  616 720

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

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

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

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

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

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

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

 

 Bangladesh Garment Manufacturers and Exporters Association

http://www.bgmea.com.bd
Vereinigung der Bekleidungsexportfirmen
Bangladesh Textile Mills Association http://www.btmadhaka.com
Accord on Fire and Building Safety in Bangladesh   http://bangladeshaccord.org  
Alliance for Bangladesh Worker Safety  http://www.bangladeshworkersafety.org

 

 

 

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de

Heimtextil: 2975 companies present design innovations © Messe Frankfurt Exhibition GmbH / jochen günther
09.01.2018

Heimtextil: 2975 companies present design innovations

  • As of today, textile interior design is the focus of international attention at Heimtextil in Frankfurt am Main.
  • From 9 to 12 January 2018, representatives from industry, commerce, design, architecture and the hotel industry will gather at the world's leading trade fair for home and contract textiles.

‘With 2,975 exhibitors from 64 countries (2017: 2,949)*, Heimtextil is on a growth course for the eighth consecutive year and is continuing its remarkable success story in a challenging market. Over the next few days, we will be experiencing a globally unique design show with a variety of product innovations and textile inspirations by international market leaders’, says Detlef Braun, CEO of Messe Frankfurt. A high-calibre event programme with well-known guests and renowned industry experts will highlight themes relating to furnishing trends and design, architecture and the hotel industry.

  • As of today, textile interior design is the focus of international attention at Heimtextil in Frankfurt am Main.
  • From 9 to 12 January 2018, representatives from industry, commerce, design, architecture and the hotel industry will gather at the world's leading trade fair for home and contract textiles.

‘With 2,975 exhibitors from 64 countries (2017: 2,949)*, Heimtextil is on a growth course for the eighth consecutive year and is continuing its remarkable success story in a challenging market. Over the next few days, we will be experiencing a globally unique design show with a variety of product innovations and textile inspirations by international market leaders’, says Detlef Braun, CEO of Messe Frankfurt. A high-calibre event programme with well-known guests and renowned industry experts will highlight themes relating to furnishing trends and design, architecture and the hotel industry.

Martin Auerbach, Managing Director of the Association of the German Home Textiles Manufacturers, is pleased about the continuation of the trend towards more materiality in private and public spaces. ‘Home textile products are again significantly more visible than they were a few years ago. This confirms the signals we have observed over the past one to two years,’ says Auerbach happily. ‘The diversity of home textiles products, designs and colours makes the international trade fair platform for home textiles a trailblazing annual event to start the year. Although the economy over the past year is likely to remain below expectations – not all of the figures from German industry are available yet – the overall mood in the sector is good’.

VIP guests: Barbara Schöneberger presents wallpaper collection   

In hall 3.0, DecoTeam is celebrating its 30th birthday and inspiring with a varied programme, exciting trend showcases and renowned guests such as TV presenter Enie van de Meiklokjes and star chef Alexander Hermann. Highlights in hall 3.1 include presentations by international textile manufacturers such as Alhambra / Tormes Design from Spain, Damaceno & Antunes / Evo Interior Fabrics from Portugal, Fryett's Fabrics from the UK, Kobe from Germany and Wind from Belgium. Visitors can also look forward to the world's largest wallpaper presentation with international market leaders and celebrity guests. Star entertainer Barbara Schöneberger presents her first collection for the wallpaper factory Gebr. Rasch.

VDT targets wallpapering world record

In cooperation with Heimtextil, the Association of the German Wallpaper Industry (VDT) is aiming for a world record in continuous wallpapering on a 100-metre-long action area. In hall 5.1 (east side), the area will be wallpapered both day and night from 8 to 12 January. Through this, the audience will experience how wallpaper can create atmosphere and noticeably enhances rooms. Trade visitors, journalists and manufacturers are invited to join in with celebrity guests such as interior designer and RTL presenter Resi Colter.

Upholstery: new presentation area in hall 4.2

The upholstery section in hall 4 will see renewed growth in the number of exhibitors thanks to the participation of well-known manufacturers such as Beaulieu Fabrics from Belgium, Konrad Hornschuch from Germany, Luilor and Vigano from Italy and Dina Vanelli from Turkey. Due to the great demand, presentation possibilities for high-quality upholstery and decorative fabrics have been created for the first time in hall 4.2. Trevira is also present here with a promising highlight. For the first time in several years, the company will take part in a big community presentation with its CS partners. These include Engelbert E. Stieger and Getzner Textil from Austria, Jenny Fabrics and Swisstulle from Switzerland, Pugi from Italy and Spandauer Velours from Germany.

Bed, bath & table: Wide range of ready-made products

The home textiles sector also impresses with its strong range. In halls 8 to 11, around 1,500 suppliers will be presenting ready-made products in the bed, bath and table segments. The bedding offer stands out here as the world's largest range of such products.

Hall 8.0, which is completely booked out, has become the central contact point for the bedding industry. Numerous market-leading companies such as Irisette, Billerbeck and Frankenstolz will be present. Mascioni from Italy and Dún or Fior from Iceland are new to the fair. In Rössle & Wanner, Heimtextil also welcomes a renowned supplier of premium mattresses and a market leader in the field of manually and motor-driven adjustable slatted frames. Rössle & Wanner will exhibit its Röwa brand products in Galleria 1.    

Home collections by international fashion labels such as Joop Living, Marc O' Polo and Esprit can be seen in hall 11.0. In addition, premium providers will also be presenting their new products in a lifestyle-oriented environment. The companies will present their contemporary and modern as well as classic and elegant approaches in hall 11.1. Among those represented with collections of the highest quality are Schlossberg from Switzerland, Collection Stiegler and Curt Bauer from Germany, Kas International from Australia, Martinelli Ginetto from Italy, Sorema from Portugal and Welspun from the UK.

Heimtextil will also be introducing a new product group:

the “All about pets” section presents selected suppliers of textiles and accessories for animals. In Galleria 0, beds for dogs and cats, pillows, cosy blankets and much more are on offer. Darling Little Place and Studio am Meer from Germany, Lex & Max from the Netherlands and Volentis from Switzerland will be among the exhibitors.

“Interior. Architecture. Hospitality”: contract furnishing as a top theme

A central role in the trade fair’s programme is played by the range of contract furnishings and fittings, which Heimtextil sums up under the title “Interior.Architecture.Hospitality”. With the Interior.Architecture.Hospitality Expo, Heimtextil is launching a new event format in hall 4.2. The following renowned suppliers will be presenting their textile products and material solutions in an exclusive setting: Drapilux-Schmitzwerke, Low & Bonar, Gerriets and Maasberg from Germany, Forster Rohner from Switzerland, Chieftain Fabris from Ireland as well as The Cotting Group (Griffine) and Senfa from France. They are aimed specifically at architects, interior decorators, interior designers, project planners and hoteliers. The Expo's offer encompasses both aesthetic and functional answers to questions regarding modern, sustainable design, as well as fire protection regulations and structural requirements. A four-day lecture programme, guided tours of the exhibitors and a special catalogue of exhibitors (the “Contract Guide”) also provide in-depth information on the subject of contract furnishings.

Carpet show reveals benefits of textile floor coverings

Whether in hotels, restaurants, theatres, on trains or in private residences – with textile flooring, rooms can be designed to be comfortable, warm underfoot and individual. The numerous advantages of textile floor coverings will be showcased in a tangible way at Heimtextil 2018. With its presentation in hall 4.2 “Carpet by Heimtex”, the German Association of Home Textile Manufacturers is targeting architects and contract decision-makers in an architectural environment in particular. Employees of the Heimtex member companies such as Findeisen, German Rugs, Object Carpet, TOUCAN-T, Vorwerk and Weseler Teppich will offer advice on acoustics, modularity and design in relation to textile floor coverings.

Heimtextil “Theme Park”: the furnishing trends of the future

The programme highlight for those interested in design is the “Theme Park” in hall 6.0. In this trend and inspiration area, visitors and exhibitors alike can look forward to a wealth of material innovations, colour trends and new designs. The overarching theme is “The Future is urban”. An accompanying programme of talks and guided tours will give far-reaching insights into new design projects. For the 2018/19 season, a team of seven international design studios have isolated the most important themes from various general trends. The London-based studio Franklin Till was in charge of the design of the “Theme Park” in hall 6.0.

21.11.2017

ITALY'S LEADING TRADE FAIRS ARE GAINING IMPORTANCE AGAIN

  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year.
  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI). Compared to the whole year, the development seems to be less positive, in 2016 significantly fewer customers attended exhibitions than in 2015. The main reason for this, however, is the World Expo in Milan, which attracted more than 21 million visitors in 2015.
 
According to the AEFI survey, more and more visitors and exhibitors from non-EU countries are coming to the fairs in Italy. The highly specialized, internationally oriented trade fairs in the fields of food and wine, tourism, fashion and cosmetics, furniture and design as well as mechanical engineering are particularly well-frequented.
 
Another trend is the increasing internationalization of the Italian trade fair landscape with the number of foreign exhibitors rising again in 2016, their share is amounting to 34 percent. One reason for this development is the fact that the number of Italian exhibitors fell during the years of the economic crisis from 2009 to 2015. At the same time, the Italian fair exhibitors are focusing on the internationalization of the offer; in concrete terms they are setting up subsidiaries and joint ventures abroad. Last but not least, the Italian Government encourages the participation of small and medium-sized enterprises in trade fairs abroad, relying on joint stands and subsidies.
 
Developments of fairs in Italy *)
  2014 2015 2016
Number of exhibitions 54 57 56
Exhibition space (Mio. sqm) 1,9 1,6 1,6
Number of exhibitors 39,640 35,635 39,690
.. from abroad 12,610 12,601 13,379
Number of visitors 3,201,234 3,017,166 2,732,838
.. from abroad 779,096 805,960 551,013

*) Members of the Federation Comitato Fiere Industria

Source: Comitato Fiere Industria (CFI)
 
Consolidation of exhibition companies offers opportunities
The Italian exhibition companies have developed differently in recent years. Large exhibition centers such as Milan, Verona, Bologna and Parma held up better than second-tier locations in terms of sales. The stronger international presence of the companies has a positive Impact.
 
The largest trade fair company in Italy, Milan Trade Fair, has founded several joint ventures abroad in recent years. In India and China Fiera Milano is cooperating with the Hanover Fair. In October 2017, Messe Düsseldorf announced a cooperation between the Düsseldorf-based Interpack and Ipack-Ima in Milan, Europe's two largest packaging and packaging-machine trade fairs. At the same time, Milan Trade Fair is retracing its activities in Brazil, South Africa, Russia and Thailand, due to the economic situation in these countries. In total, the Milan Trade Fair achieved sales of EUR 221 mio 2016, EUR 7 of which abroad. Since many years, however, the business has been in deficit. In 2016 the losses totaled to EUR 23 mio ros. In addition to the difficult financial situation, the fair had to cope with a (financial) scandal that affected the infiltration of a subsidiary by the mafia. Only in 2015  the company - in the context of the Expo 2015 – wrote black figures.
 
In 2016 the exhibition companies of Rimini (important in the areas of environment, tourism, and transport) and Vicenza (mainly in the area of gold and jewelry) are merged to the Exhibition Group (IEG). The group generated in the report-year sales of EUR 125 mio. However, this meant that it was not able to displace the Bologna trade fair - measured in terms of sales - from second place among the Italian suppliers. The Bologna Fair, which is also responsible for the exhibitions in Modena and Ferrara, reported sales of EUR 132 mio and a profit of more than EUR mio in 2016. IEG and Bologna Fair are expanding their business in Asia and especially in China.
 
The smaller exhibition companies have felt the long economic downturn in Italy. The fair in Brescia has gone bankrupty, it had to become rescued in Reggio Emilia by the provincial administration. One of the former most important fairs in southern Italy, the Fiera del Levante in Puglia, lost its importance during the crisis years. The main reason for the consolidation of the trade fair sector is the oversupply of events in Italy. More than twice as many trade fairs are organized here as in Germany.
 
An international trade fair overview is offered by the Exhibition and Trade Fair Committee of German Business (AUMA). Information about the foreign fair programs of the federal and states can thus be obtained here (http://www.auma.de).
 
Contact
Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. (AUMA)
Exhibition and Fair Committee of German Business e.V.
Littenstraße 9
10179 Berlin
POB 02 12 81
10124 Berlin
T +49 (0)30 240 00-0
F +49 (0)30 240 00-330
info@auma.de
http://www.auma.de

Comitato Fiere Industria (Industriemesse)
Via Pantano, 2
20122 Milan, Italy
T +39 (0)2 720 002 81
info@cfionline.net
http://www.cfionline.net

Associazione Esposizioni e Fiere italiane (Italian Association of Fairs and Exhibitions)
Via Emilia, 155
47900 Rimini, Italy
T+39 (0)541 744 230
info@aefi.it
http://www.aefi.it
More information:
Fairs Italy
Source:

Robert Scheid, www.gtai.de

Interior.Architecture.Hospitality Expo at Heimtextil 2018 © Messe Frankfurt Exhibition GmbH
29.08.2017

HEIMTEXTIL 2018: NEW EVENT FORMAT FOR INTERIOR DESIGN

  • New event format for interior design:
    Interior.Architecture.Hospitality Expo
  • Exhibitors showcase their range of services relating to the focal theme “customised”

Textile solutions for interior design, architecture and hotel furnishing convince above all in terms of their flexibility, functionality and sustainability. With the Interior.Architecture.Hos-pitality Expo, there is now a new exhibition format dedicated to this issue. The Expo will take place in Frankfurt from 9 to 12 January 2018 within Heimtextil, the world's leading trade fair for home and contract textiles.

  • New event format for interior design:
    Interior.Architecture.Hospitality Expo
  • Exhibitors showcase their range of services relating to the focal theme “customised”

Textile solutions for interior design, architecture and hotel furnishing convince above all in terms of their flexibility, functionality and sustainability. With the Interior.Architecture.Hos-pitality Expo, there is now a new exhibition format dedicated to this issue. The Expo will take place in Frankfurt from 9 to 12 January 2018 within Heimtextil, the world's leading trade fair for home and contract textiles.

Selected suppliers will present their textile products and material solutions in the exclusive surroundings of the new Expo in hall 4.2. In this way, they can position themselves to specifically target interior designers, hoteliers and project planners. The Expo's offer encompasses both aesthetic and functional answers to questions regarding modern, sustainable design, as well as fire protection regulations and structural requirements.
Exhibitors at the Expo will present their products relating to the “customised” theme in the form of individual customer-oriented solutions. New products and innovations in acoustic textiles, modular carpets and wall coverings are also included. Trade visitors can discuss their current projects directly with the exhibiting companies in order to find solutions for their concrete design or application-related questions. The first brand companies to announce their participation include Drapilux and Low & Bonar.
 
Interior.Architecture.Hospitality – focal theme: contract furnishing
With the Expo, Heimtextil is expanding its range of offers for the contract segment, bundling them under the title “Interior.Architecture.Hospitality”. In addition to the Expo, this also comprises a high-quality presentation and training program for interior designers, architects and hotel furnishers, the Architecture.Hospitality Lectures and Interior.Architecture.Hospitality Tours, and guided tours of the trade fair that are tailored to the specific interests and requirements of architects or hoteliers. The starting point for the guided tours is the Interior.Architecture.Hospitality Salon in the centre of hall 4.2, which also invites colleagues to network with each other. Well-known industry partners have been secured both for the tours and lectures, such as the Association of German Interior Designers (BDIA), the industry event organiser hotelforum management, trade magazine AIT, the Allgemeine Hotel und Gaststättenzeitung (AHGZ) and, for the first time, the international architect network World Architects.

Inspiration and innovation within the vicinity of the Expo
Hall 4.2 is also the location for a new special presentation on textile floor coverings initiated by the Association of the German Home Textiles Industry (Heimtex). The themes of modularity, acoustics and design are showcased in an architecture-focused environment using textile floor coverings. Architects and contract furnishers will receive comprehensive and expert advice on these three main themes as well as all other issues relating to carpets.
The innovative fibre manufacturer Trevira will also be present in hall 4.2 for the first time as part of a big community presentation comprising 18 participating firms, including Engelbert E. Stieger, Johan van den Acker, Pugi, Spnadauer Velours, Swisstulle and Torcitura Lei Tsu.
A globally unique range of upholstery and decorative fabric offers with over 400 exhibitors can be found in hall 4 in the direct vicinity of the Expo. Visitors to the Expo will benefit from its proximity to the stands of high-quality international suppliers such as Deltracon and Muvantex from Belgium, Erotex from Israel, Loro Piana and Tali from Italy and Blom Liina Maria from Finland. The upholstery and decorative fabrics provide a comprehensive product offer that meets the highest aesthetic and functional requirements of interior design.

 

Israel's textile industry is catching up again © Rosel Eckstein / pixelio.de
25.07.2017

ISRAEL'S TEXTILE INDUSTRY IS CATCHING UP AGAIN

  • Production stabilizes at lower level
  • Import of textile machines increased

Jerusalem (GTAI) - The Israeli textile and clothing industry has largely stabilized after years of decline. This applies both to the added value of the sector and to exports. Thanks to new capacities, the textile sector was able in 2106 to record a significant increase in production. In the import of textile machinery Germany plays the leading role. On the other hand, the German import market share of imports of textile and clothing products is low..

  • Production stabilizes at lower level
  • Import of textile machines increased

Jerusalem (GTAI) - The Israeli textile and clothing industry has largely stabilized after years of decline. This applies both to the added value of the sector and to exports. Thanks to new capacities, the textile sector was able in 2106 to record a significant increase in production. In the import of textile machinery Germany plays the leading role. On the other hand, the German import market share of imports of textile and clothing products is low..

For a long time, Israel's textile and clothing industry was a serious problem sector of the manufacturing industry. But now it seems to catch up itself again. This is confirmed by the production statistics. In a crisis phase between 2007 and 2013, the added value by the textile and clothing industry had declined by a total of 25.7%. While the shrinking of the clothing sector was 21.4%, the textile industry fell by 31.2%. The reasons for this development were the increasing competition from low-cost imports on the domestic market and declining exports. Since 2013, however, the figures have stabilized and are pointing upwards.

Development of the Israeli textile and clothing industry 2006 to 2016 (selected years)
Year Index of added value textile and clothing (2011 = 100,0) Index of added value textile Index of added value clothing Exports of textiles and clothing*), Mio. US$ Imports of textile and clothing*), Mio. US$
2006 128.8 130.8 128.2 1,243 1,561
2011 100.0 100.0 100.0 1,011 2,256
2012 956 918 986 952 2,241
2013 910 840 964 920 2,365
2014 932 845 999 966 2,558
2015 928 849 987 930 2,420
2016 970 983 959 914 2,480

*) HS-section XI (spun textile fabrics and articles thereof)
Source: Monthly paper on foreign trade statistics, various editions, Central Statistical Office

Product range cleared up

The stabilization was achieved through a comprehensive clearing up process in the textile and clothing industry, in the course of which products and production processes, in which Israel was no longer internationally competitive, were discontinued or outsourced to cheaper locations. Thru rationalization processes the productivity was increased.  The added value of the textile and clothing industry in 2016 per employee reached 4.8% above the level of 2011. The cumulative increase in productivity in the textile sector was 3.5 and in the clothing sector 5.6%.
The adjustment of the product range led to a drop in exports and simultaneously to an increase in imports. The Israeli manufacturers are increasingly looking to raise their turnover in high-quality and less labor-intensive products, which also have opportunities on the world market.

According to the most recent available data, the export rate of the textile and clothing industry in 2014 was 50.1%. There was an extreme division in the clothing sector: while the manufacturers of clothing products other than underwear only accounted for 3.9% of their sales in the international business, almost the entire production of underwear was exported.
The main export position of the Israeli textile industry is covered by HS heading 56 (cotton, felt and nonwovens, special yarns, twine, cordage, ropes and cables). In 2016 these products accounted for 28.7% of the textile and clothing exports, followed by synthetic or artificial filaments with 14.3%, knitted products with 13.0% of the exports.

Production structure oft he textile and clothing industry 2014
Sector Turnover in Mio. US$ *) Export rate in %
Total (1+2) 1,834 50.1
1. Textile industry 1,014 52.7
Spinning, weaving, and finishing of textiles 557 57.0
Other textiles 457 47.5
Clothing industry 820 46.8
Clothing but underwear 425 3.9
Underwear 320 96.3

*) Conversion of official internal price data according to the yearly average exchange rate
Source: Central Office of Statistics

Following the successful stabilization, the Israeli industry is also daring to create new production capacities. In 2015 and 2016 two new factories were set up for the production of nonwovens and have started to operate. On the one hand, this became reflected in increased machinery investments by the textile sector, and secondly in the strong increase in the production of the textile industry in 2016 by 15.8%.

Germany leading supplier of textile machines

Parallel to the increase in production the import of textile machinery is increasing since 2014. In 2016, it reached USD 62.2 million, more than twice the low level of 2013. German textile machinery manufacturers were able to participate in this growth in a leading position..

Import of textile machinery 2010 to 2016 (million USD)
Year Import thereof: from Germany German import market share in %
2010 21.1 4.8 22.7
2011 35.3 13.3 37.7
2012 41.5 16.3 39.3
2013 29.2 7.4 25.3
2014 34.4 10.5 30.5
2015 58.4 31.5 53.9
2016 62.2 37.5 60.2

Source: UN Comtade Database

In 2016 the German import market share of textile machinery reached a hight of 60.2%, so the Federal Republic was by far the most important delivery country, followed by Italy and France.

Leading suppliers for textile machines 2016
Country Import, Mio. US$ Import market share in %
Germany 39.5 60.2
Italy 6.3 10.1
France 4.1 6.6
Switzerland 2.6 4.2
Belgium 2.3 3.7
China 2.2 3.6
USA 1.3 2.1
Spain 1.1 1.8

Source: UN Comtrade Database

The leading supplier in the import market for garments and textile products is P.R.China. In 2016 39.3% of the imports of the HS section XI (textile materials and articles thereof) accounted for China. Germany played with 1.6% (USD 39.1 mio) only a subordinate role. The main German delivery positions were clothing and clothing accessories (HS chapters 61 and 62) with 43.7%, followed by synthetic or artificial spun fibers (14.3%).

Contact addresses
Manufacturers Association of Israel Textile and Fashion Industries Association Ansprechpartnerin: Ms. Maya Herscovitz, Director of Association
Hamered St. 29, Tel Aviv 68125 Tel.: 00972 3/519 88 55, Fax- 519 87 05 E-Mail: maya@industry.org.il,, Internet:  http://www.industry.org.il.

More information:
Israel
Source:

Wladimir Struminski, Germany Trade & Invest  www.gtai.de 

China's fashion designers are becoming more successful internationally © Martina Böhner/ pixelio.de
04.07.2017

CHINESE FASHION DESIGNERS COMPETE WITH IMPORT CLOTHING

  • Chinese fashion companies are becoming more creative and work on their branding
  • German fashion has a hard time with it

Beijing (GTAI) Chinese fashion has the reputation for being less creative and of poor quality. Well established brands are rare. But this is now changing. More and more local designers succeed in making a name for themselves on a national and an international level. This is why it will be harder for imported clothing to establish itself on the Chinese market in the future. Chinese designers meet the local taste with a mixture of Western and Chinese elements.

  • Chinese fashion companies are becoming more creative and work on their branding
  • German fashion has a hard time with it

Beijing (GTAI) Chinese fashion has the reputation for being less creative and of poor quality. Well established brands are rare. But this is now changing. More and more local designers succeed in making a name for themselves on a national and an international level. This is why it will be harder for imported clothing to establish itself on the Chinese market in the future. Chinese designers meet the local taste with a mixture of Western and Chinese elements.

When it came to buying clothes, Chinese customers had for several decades only two choices - either settle for cheap domestic bulk goods or spend a lot of money on an imported product. First came the luxurious brands, especially from Italy and France, which China's new millionaires adorned themselves with, then more and more shops opened, targeting the ongrowing middle class and in which also German business clothing sold well.

But the local competition does not sleep. The Chinese textile and clothing industry faces a massive financial pressure; therefore many companies have to take a decision; either they become better or they have to go. Anyone who remains has to change his production and his products in such a way that they can meet the more and more demanding customers, especially within the domestic market.

This includes the positioning of own brands. The Dongrong Group from Inner Mongolia is currently following this path. It has become well known for manufacturing cashmere products for famous British and Italian fashion labels, and now sells its own design under its own label ("Dongli") in its own shops.

Owning a store – or even better several stores - is the dream of most young Chinese fashion designers, who are increasingly making a name for themselves on the Chinese market. This is also due to the retail structure in the People’s Republic of China, which is unusual for Germans. The typical German clothing retailers with several brands in the assortment do not exist. Instead, mono-brand stores dominate - either as single stores or in the large malls as sublet retail space.

Nevertheless, Chinese companies have a lot to catch up on branding and quality. Even the familiarity of important Chinese suppliers is usually limited to local buyers. For the majority of European customers, however, they are not even a concept. But according to industry insiders, this is also changing. The number of successful Chinese fashion designers and companies is growing even internationally.

Despite deficits in areas like creativity and branding, the scene is growing and finds an ongrowing customer base. Accordingly, things will become even more difficult for German fashion, which usually cannot compete with the glamour of the Italian or French competition. Although there are more Chinese people who are able to spend a lot for good fashion, but there is also a larger local offer, which is price oriented to foreign markets and meets the Chinese taste with a skillful mix of Western and Chinese traits.    

Chinese Importes of Apparel*)
(in Mio. US$, change in comparison to the previous month in %)

  2014 2015 2016 1st quarter 2017 Change
Clothing and accessories 5,626.1 6,018.0 5,947.5 1,490.8 8.6
from Germany 5.8 6.7 6.2 1.2 -9.8

*) HSPos. 61+62
Source: China Customs; calculation by Germany Trade & Invest

China's fashion designers are becoming more successful internationally

Many of the new Chinese fashion designers have studied abroad, worked and / or cooperated with foreign designers, and now combine typical Chinese with modern Western clothing and cuts. With their designs, they do not only create interest in the relevant fashion weeks abroad, but are also increasingly bought in China. Pioneers are fashion designers like Ma Ke ("Wuyong", "Mixmind"), who designed the clothes for China's elegant First Lady Peng Li-yun, or Paris-based Guo Pei, who was named by the Time Magazine 2016 as one of the 100 most influential people in the world. In the meantime, a large number of fashion designers and designers have made themselves a more or less wellknown name.

Among the new labels are for example the Eve Group from Beijing or ANNDERSTAND (founded by Yu Ge, who gained experience already at Louis Vuitton and Gucci) from Shanghai. With tailor-made models from Yu Ge, the underwear brand AtoG Lingerie (founder: Zhou Yingying) even made it to the fashion weeks in London, New York, Milan and Paris. They are particularly popular among the middle and upper classes. These population groups are often looking for a modern, national identity and would like to dress up individually and elegantly - apart from the unattainable big brands from France or Italy, which nevertheless are already in the Chinese metropolises almost "at every corner”.

Return to old traditions 

For example, exquisite new editions of Chinese sheath dresses (Qipao) aree in demand - such as by HanartQipao from Shanghai. Founder Zhou Zhuguang is convinced: "Qipao is the future and perhaps also the beginning of a Chinese haute-couture." The costs of a Hanart dress range from 3,800 to 60,000 yuan (RMB, circa 570 to 9,030 US $, 1 US $ = circa 6,642 RMB, yearly average 2016). Buyers have often embraced a refined Chinese lifestyle - including tea drinking, reciting poems, and collecting Chinese antiques.

Recalling some decor patterns of national minorities, such as the elaborate embroidery art of the Dong or Miao nationality from southern China, is also popular. In particular, Vimemo (founded in 2009 by Yu Ying) from Guizhou has earned a reputation. Vimemo employs about 3,000 female embroiderers and batik dyeing worker in homework and ensures that techniques, which only a few grandmothers are still proficient in, do not die out. In this sense, a research and development center with a school is to be built in 2017. The very high-priced pieces of silk or cotton are sold in own shops (at the Beijing International Airport, for example) or via the Internet.

The Chinese designer, Su Renli, uses the old techniques of handicrafts (for example, the dyeing of fabrics in yamswurze extract) combined with sustainably produced materials and modern cuts. Other promising brands with an individual style are, for example, Zuczug or Icecle based in Shanghai, some of them partly coming into the market with serious eco-friendly products.

Despite the growing health awareness and promising approaches - such as the recently founded "Uncover" project - sustainable fashion in China has so far only been a niche. Against this background, the company Jiaxing Jiecco ("LangerChen") in Zhejiang, founded by Miranda Chen and Philipp Langer, is producing their fabrics that are mainly certified according to the strict Global Organic Textile Standard (GOTS) primarily for foreign customers. Genuine eco-fashion or fair produced clothing has so far been a concept for the fewest Chinese. "After discussing food safety, the discussion about healthy clothing will follow," Miranda Chen is convinced. But time has not yet come.

30.05.2017

IRAN'S TEXTILE AND CLOTHING INDUSTRY WANTS TO INVEST

  • But industry continues to be in a crisis
  • Germany leading textile machinery supplier again

Teheran (GTAI) - Iran's large, traditional textile and clothing industry fights against foreign competition. Although the manufacturers are protected against imports by import tariffs, industry representatives and the Ministry of Industry are talking about massive illegal imports. In order to improve competitiveness, investments in new plants are necessary, but the companies often lack the necessary financial resources. Textile machines from Germany are in high demand.

  • But industry continues to be in a crisis
  • Germany leading textile machinery supplier again

Teheran (GTAI) - Iran's large, traditional textile and clothing industry fights against foreign competition. Although the manufacturers are protected against imports by import tariffs, industry representatives and the Ministry of Industry are talking about massive illegal imports. In order to improve competitiveness, investments in new plants are necessary, but the companies often lack the necessary financial resources. Textile machines from Germany are in high demand.

Although the Ministry of Industry reports growth for several sectors of the textile and clothing industry for 2015/16 (Iranian year 1394, 03. 21.15 to 03. 20.16), the increased production level remains far below capacity. The data on the average utilization varies greatly, but no estimate is more than 50%, some company representatives report even 30% only. The industry also suffers from quality problems, which are mainly due to the outdated machinery park.
According to official data, there are almost 10,000 factories with about 290,000 employees in the textile and clothing sector. The industry, which is characterized by private ownership, is by government announcements often referred to as a promising economic sector with potential. Nevertheless, according to criticism it is lacking in the necessary support.

Approximately 400 mostly medium and large textile and clothing manufacturers are organized in the Association of Iran Textile Industries (http://aiti.org.ir). The spectrum of the association members ranges from cotton spinning and weaving mills to producers of acrylic and polyester yarns, synthetic fibers, machine-made carpets, wall-to-wall carpet floors, woolen and other blankets and bedspreads, clothing and up to manufacturers of textile machines and spare parts.

The main problem of the Iranian textile and clothing industry is the competition from abroad, particularly from the PR of China and Turkey. The re-exports via the Dubai trade hub have to be added too. Partially high import tariffs are intended to protect the domestic market, but a large part of the imports arrives illegally into the country. A duty of 55% is currently levied on clothing and a reduced rate of 33% applies to deliveries from Turkey. For fabrics 32% are due.

Great interest in modern technology
The Iranian textile industry wants to strengthen its competitiveness both on the domestic and international markets through the modernization of its machinery. The great interest of the sector companies in new technology shows the strong response to conferences and seminars offered by European associations and companies.

In April 2015, the  GermanTextile Machinery Association VDMA organized a symposium in Tehran in anticipation of the strong easing of Iran sanctions. About 1,100 local company representatives were able to study the offers from the 36 German textile machinery and accessories manufacturers.
The event showed the interest of the Iranian companies to look for solutions to improve their mostly old, often decades old facilities.

A considerable part of the machinery park came from Europe as already used equipment. A problem were the continuing export controls also. According to industry representatives replacement procurements were made difficult because many parts are classified as dual-use goods. Organizations from Italy and Switzerland also have organized information events for Iran's textile industry.

Machinery import decreased again
The interest in modern technology however leads to limited investments only. Due to the weak financial strength of a large part of the industrial enterprises, intensified state support measures, in particular favorable loans, are requested. The banks lend credits to textile companies with great restraint only and demand high interest rates. According to Iranian customs despite the difficult situation textile and clothing machinery worth USD 324 million were imported in 2015/16. However - this was 11% less than in 2014/15 (USD 364 million).

Germany: export of textile, clothing and leather machinery to Iran 2013 to 2016 (in EUR 1,000):
HS-Pos. Description 2013 2014 2015 2016 -11 months
  Total 16,248 39,966 48,993 25,827
84.44 Machinery for jet spinning etc. of synthetic or artificial material 83 2,991 325 1,005
84.45 Machines for preparation or processing for spinning and doubling etc. 2,145 6,699 7,140 2,612
84.46 Weaving looms 8,009 20,896 30,873 11,941
84.47 Machines for knitting, sewing, gimping, tulle, lace, embroidery, net knitting and tufting etc. 642 712 618 1,444
84.48 Auxiliary machines and devices for machines of positions 84.44, 84.45, 84.46 or 84.47 4,400 7,347 7,760 6,412
84.49 Machines for the manufacturing of felts and nonwovens 6 0 77 0
84.51 Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50). 634 915 1,629 1,672
84.52 Sewing machines 321 380 543 673
84.53 Machines and devices for processing of hides etc. 8 26 28 69


Source: Eurostat

Germany is traditionally the leading textile machinery supplier in Iran, followed by Italy. However, the sanction phase brought a turnaround in favor of Asian suppliers. According to VDMA calculations, the most important suppliers of textile machinery exported to Iran in 2013 a value of EUR 85 million only (excluding dryers, and clothing and leather technology), of which 33% were attributed to the PRC, followed by Germany (16%), Turkey (12%), Korea (Rep., 7%) and Italy (5%). Deliveries of clothing and leather technology amounted to EUR 113 million in 2013, led by Korea (Rep.) with 53%, the PRC reached 36%, Germany came to 0.3% only.

The VDMA data for 2015 show for textile machinery Germany as the leading supplier again. At the textile machinery exported to Iran German suppliers accounted for a share of 30%, the PRC fell to 22%, Turkey reached 12%, Korea (rep.) 6% and Italy 4 %. In the clothing and leather technology the Chinese-Korean dominance remained in 2015 (PRC: 49% from EURO 131 million and Korea (rep.): 41%)..

PR of China: Exports of textile, clothing and leather machinery to Iran 2013 to 2016 (in USD 1,000):
HS-Pos. Description 2013 2014 2015 2016- 11 months
  Total 84,518 133,739 103,055 75,748
84.44 Machinery for jet spinning of synthetic or artificial fibers 16,457 5,319 1,990 1,925
84.45 Machines for preparation or processing of materials for spinning, doubling etc. 288 2.602 2.844 1,269
84.46 Weaving looms 2,650 6,039 4,103 1,836
84.47 Machines for knitting, gimping tulle, lace, embroidery, knotting and tufting etc. 6,672 10,795 8,642 7,878
84.48 Auxiliary machines and devices for pos.84.44, 84.45,
84.46 or 84.47 etc.
5,684 17,061 7,319 3,921
84.49 Machines for the manufacturing of felts and nonwovens 2,053 2,029 5,540 2,900
84.51 Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50). 11,368 15,894 16,559 13,728
84.52 Sewing machines 33.567 49.714 38.191 36.182
84.53 Machines and devices for the processing of hides 5.779 24.286 17.867 6.109

Source: China Customs

According to Eurostat exports of textile, clothing and leather industry machines of the EU28 Group to Iran increased between 2013 and 2015 from EUR 38 million to EUR 89, with Germany accounting for 42% respectively 55%. Italy delivered EUR 10.4 million in 2015 (2014: EUR 14.0 million, 2013: 6.3 million). The deliveries of the EU28 Group and Germany also were declining in 2016.

 

INDEX17:  Manage change in healthcare © INDEX™17 Press Office
04.04.2017

INDEX17: MANAGING CHANGE IN HEALTHCARE

An aging population is a critical issue facing the medical and healthcare industry. The European Wound Management Association (EWMA) maintains that persons aged 65 and over will account for 30% of the EU27’s population by 2060, compared to 17% in 2008, and that the highest share of inhabitants aged over 80 years in 2060, will be in Italy (14.9%), Spain (14.5%) and Germany (13.2%), closely followed by Greece (13.5 %).

There has been an exponential growth in healthcare costs mainly driven by the increased cost of medication and devices, and in tandem, a rise in the prevalence of chronic conditions. These trends have resulted in significant changes in European hospital services, with the number of hospital facilities, as well as the number of hospital beds decreasing. Furthermore, increasing pressures for early discharge from hospitals have caused a shift in the delivery of services from the hospital to the home, especially in the field of wound management.

An aging population is a critical issue facing the medical and healthcare industry. The European Wound Management Association (EWMA) maintains that persons aged 65 and over will account for 30% of the EU27’s population by 2060, compared to 17% in 2008, and that the highest share of inhabitants aged over 80 years in 2060, will be in Italy (14.9%), Spain (14.5%) and Germany (13.2%), closely followed by Greece (13.5 %).

There has been an exponential growth in healthcare costs mainly driven by the increased cost of medication and devices, and in tandem, a rise in the prevalence of chronic conditions. These trends have resulted in significant changes in European hospital services, with the number of hospital facilities, as well as the number of hospital beds decreasing. Furthermore, increasing pressures for early discharge from hospitals have caused a shift in the delivery of services from the hospital to the home, especially in the field of wound management.


Visitors and exhibitors at INDEX™17, the world’s leading nonwovens exhibition held in Geneva from 4th-7th April 2017, will have the opportunity to hear from “Big Picture” speaker Prof. Dr. Sebastien Probst, Professor of Tissue Viability and Wound Care at the School of Health Sciences, University of Applied Sciences and Arts Western Switzerland. “Chronic and highly-exuding wounds can often lead to the use of unreliable and costly treatments,” explains Prof. Dr. Probst. “Patients are frequently found to be at an increased risk of infection and delayed healing, which results in an enormous negative impact on their quality of life, both physically and psychologically. Superabsorbent nonwoven dressings are increasingly being used for a more effective wound care, removing bacteria and exudates and keeping the wound bed moist. Reducing healthcare costs while maintaining high quality of care remains paramount.” Another less visible but important benefit is that these products can contribute to reducing health associated infections (HAI) which still affect 1 out of 18 patients every day in Europe.

The rich three-day INDEX™17 programme, features a Medical & Healthcare seminar on 5th April organised in conjunction with market intelligence partners WTiN, where leading speaker Prof. Dr. Sebastien Probst will put forward the key challenges faced by the medical industry, and renowned experts in the field will then discuss how nonwovens are contributing to solving these challenges.

Medical & Healthcare seminar speakers include:

  • Dr. Parikshit Goswami, Associate Professor, Director of Research and Innovation, MSc Textiles Programme Leader, Technology Research Area Leader, will deliver a welcome note.
  • Prof. Dr. Sebastian Probst, DClinPrac, RN, Professor of Tissue Viability and Wound Care, School of Health Sciences, University of Applied Sciences and Arts Western Switzerland, Geneva, will address global trends in nonwoven medical textiles.
  • Dionysia Patrinou, Intelligence Manager/Market Strategist, Advanced Medical Materials, World Textile Information Network (WTiN), will discuss opportunities in the medical market. .
  • Paul Greenhalgh, Director of Industrial Design, Team Consulting, will speak about a patient centric approach to medical technology development.
  • Dr. Bernd Schlesselmann, Head of R&D, Freudenberg Performance Materials, will discuss the future of nonwovens in advanced wound care..

Visitors from around the world will have the opportunity to gain first-hand knowledge of the latest developments in nonwovens for medical applications.
To attend INDEX™17, you can register online at www.index17.org/.