Textination Newsline

• Lifestyle trend area for apparel, footwear and accessories brings like-minded brands together

Outdoor, everyday use and lifestyle - athleisure wear and urban fashion are a permanent fixture on both urban streets and the outdoor market. Urban lifestyle is also a growing trend topic on display at the OutDoor show from 17 to 20 June, 2018. At the Lifestyle Collection Area, exhibitors are showing that there is more to outdoors than being out in nature. Lifestyle collections reflect a way of life and mindset that blends responsibility for the natural world with an international approach and worthwhile fashion. In addition to the full spectrum of outdoor goods, OutDoor 2018 will be showcasing all facets of lifestyle trends from apparel, footwear and accessories for trade visitors. Start-ups and new brands will also be exhibiting at the area.

Cheeki, the Australian manufacturer of high-quality stainless steel drink bottles and flasks, is entering Europe. The company is presenting its products at OutDoor in the Lifestyle Area for the first time. "It suits us down to the ground, because our products are not just for work, school, picnics, sport or just for hiking and camping - instead they represent a lifestyle,” explains Simon Karlik, Cheeki’s director. Simon Karlik feels that Cheeks water bottles reflect an attitude towards life. This is also clear to see in the company’s product catalogue, which shows how Cheeki bottles help reduce mountains of plastic rubbish. They are also a personal statement against pollution of the seas. Cheeki is a mindset - an attitude and a way of life.

Swedish manufacturer Icebug has been exhibiting at OutDoor for a number of years, and has chosen deliberately to present at the Lifestyle Area in 2018. Country Manager for Germany, Mathias Basedow sees the traditional outdoor look as past its zenith: "Running, camping, climbing - they are all lifestyles, but you don’t always want to look like you are on an expedition. We need pioneers from retailers and brands, who are bold enough to break away from the design status quo, without sacrificing performance.” The shoe manufacturer wants to take up the challenge with the clean, stylish, Scandinavian design of its new performance sneakers.

Both products and functionality are important for urban environments, but there is more to it than that. There is the mindset and mentality behind them. Sustainability is also an issue here. Take, for example the manufacturer Steinkauz, who make products from natural functional materials: Loden, felted wool and waxed cotton. "Loden is a thick waterproof woollen cloth with excellent breathability and is also a biologically degradable natural fabric,” argues Markus Holthausen, Managing Director Waldkauz/Steinkauz. He sees it as decisive that: "Loden strikes a chord with contemporary environmentally-friendly attitudes and looks at home both when trekking and in other environments. This is why we belong in the lifestyle segment.”

Outdoor attitudes always involve crossover to some extent. No one expects to have a separate product for each activity, or specialist clothing for each social appearance. Cavida are presenting their distinctive Wave Hawaii Ponchos at OutDoor. "They were designed especially for outdoor use, but are also ideal for home, swimming pool or sauna.” Our stylish designs capture the contemporary zeitgeist,” says managing director Carsten Raphael. Outdoor, everyday use and lifestyle apply to sunglasses from Slastik, who also belong to Cavida. Raphael describes them as "exceptionally stylish” and "trendsetting”. "We are going to attract a lot of interest here too.”

The OutDoor Lifestyle Area has consciously decided not to include any large booths. "This would run contrary to the whole idea of the Lifestyle Area,” explains project manager Dirk Heidrich. "Small stands, independent stand designs and opportunities for new brands and start-ups as well as long-standing OutDoor exhibitors to mix it up and experiment, while enjoying maximum exposure.” As such, the Lifestyle Area functions as an exhibition inside the OutDoor show. There will be everything from high-quality functional apparel and backpacks, tents and sleeping bags to a diverse range of accessories - all with an emphasis on style and responsibility. This is outdoor as a lifestyle.

The 25th OutDoor jubilee edition show takes place from Sunday 17 to Wednesday 20 June 2018 and is open to trade visitors only. For more information, please visit:
: www.outdoor-show.de and www.facebook.com/OutDoor.Show/.

• 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.

• Sudanese and Chinese investors want to secure raw material supplies

Nairobi (GTAI) - Ethiopia has further successes in attracting textile companies: One British company is planning to invest USD 100 million, one Chinese company even plans to invest USD 220 million. This means that the textile sector is increasingly becoming a self-starter, as donors increasingly want to supply domestic industry with pre-products. Meanwhile, those who invest should not only raise the financial means, but also the raw material cotton, according to market experts.

The Ethiopian textile and clothing market has two new entrants: the British Intrade Co. UK Ltd. and the Chinese Wuxi No. 1 Cotton Investment Co. Ltd, Intrade intends to build a textile and clothing factory in the Mekelle Industrial Park (Tigray Regional State), which was opened in July 2017. Initial cost estimates are around USD 100 million. Intrade is an offshore company of the Sudanese Mahgoub-Sons Group. The company has reached an agreement with the Ethiopian Investment Commission to invest USD 200 million in three projects. The textile project is to be completed in 16 months.

Security of supply for cotton is becoming an issue
The Sudanese group is not only interested in textile production, but also with lucrative supply transactions for its own cotton. They have the capacity to supply 500,000 tons of long staple quality cotton annually, Wagdi Mirghani Mahgoub, Managing Director of Intrade says. The supply of raw cotton has become an increasing problem for the emerging Ethiopian textile industry since some Asian countries ordered export stops for the raw material, including the PR China and India. The African Plantation, which cultivates 33,000 hectares of agricultural land in Sudan, also belongs to the Mahgoub-Sons Group.

However, Wuxi No. 1 Cotton Investment has announced the second and larger textile investment of 2018: a textile factory will be opened shortly in the Dire Dawa Industrial Park. In a first phase, USD 80 million are planned, followed by further investments totaling USD 140 million. The company intends to install state-of-the-art textile machines to produce and supply goods for the demanding markets in Europe, Japan, South Korea and Southeast Asia. According to their own statements, partners are leading world machinery brands. Wuxi is already pursuing a project in the Ethiopian city of Adama and also has plans to grow cotton in Ethiopia.

Ethiopia is considered the first textile address in Africa
"Clothing companies are nomads," an industry consultant knows, "they go where it is cheapest for them. If wages and ancillary costs rise too much in countries like Bangladesh or the PR China, the caravan moves on." South of the Sahara, only Mauritius has made a name for itself as a producer of high-quality clothing. Attempts to establish larger-scale textile and clothing companies in Namibia and Lesotho have so far been unsuccessful. Meanwhile, Kenya and Ghana have production conditions that are far too expensive.

Ethiopia offers several advantages at the same time: Wages and ancillary costs are extremely low and far below those in China. The US Centre for Global Development found out that a worker in Ethiopian sweatshops earns an average of USD 909 a year. In Bangladesh, however, it is US$ 835 and in Tanzania and Kenya even US$ 1,776 and US$ 2,118 respectively. Another advantage: Ethiopian seamstresses are considered to be extremely hardworking and reliable. In addition, there is a tradition in textile and clothing production as well as in leather processing and thus there is a basic pool of trained specialists.

Infrastructure is making huge progress
Meanwhile, the supply of domestic cotton and leather needs to be expanded, because in the drought years 2016 and partly 2017 the supply of cotton was insufficient. The government is cooperating and is increasingly listening to the needs of producers. The infrastructure is currently undergoing sustained improvement, in particular the transport routes to the neighboring seaport of Djibouti, from where Europe can be reached more quickly than from the Far East. And, last but not least, the Ethiopian capital Addis Ababa has a capable air traffic hub with a dozen direct flights to the EU, including Frankfurt and Vienna. In addition, there is a modern air freight center.

Just as important as the delivery routes are the comparatively modern production conditions in the newly emerging industrial centers throughout the country. Everything here is "Made in China": fences, access controls, roads, electricity and water supply, waste and sewage disposal, workers' settlements. From a European perspective, this may look like Chinese dominance, but from an Ethiopian perspective it creates jobs, feeds families and earns foreign exchange. Under better working conditions than in Bangladesh, experts mean.

According to the ideas of the Ethiopian government, the country is undergoing a transformation process: away from an agrarian-based economy and towards an industrial state. By 2025, the country is expected to reach middle-income status and to become Africa's largest industrial production hub. To achieve this, Ethiopia is investing heavily in roads, railways and power generation, health and education, urban and rural development and the creation of industrial clusters.

Customs advantages in the USA and Europe
Ethiopia has so far benefited from the African Growth and Opportunity Act (AGOA) of the USA, which, for example, allows savings of 16.8 percent in import duties on cotton trousers and 30 percent on synthetic shirts. Ethiopia also has duty-free access to the EU market under the Everything but Arms initiative. Fears that US President Donald Trump might stop AGOA have not yet come true.

Source: Comtrade

German exports can be expanded
German sales representatives of technology for the textile, clothing and leather industry are not yet well positioned in Ethiopia. According to preliminary figures from the Federal Statistical Office (SITC 724), only EUR 2.84 million of relevant technology where sent to Ethiopia in 2017, though 169 percent more than in the previous year.

Source: Comtrade

• Exports increase
• Domestic demand rises

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

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

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

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

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

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

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

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

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

1) Estimation; 2) Forecast

Source: B+R Studio

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

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

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

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

1) Estimation; 2) Forecast

Source: B+R Studio

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

Contact addresses:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Exhibitor opinions:

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

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

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

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

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

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

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

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

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

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

• The association's zero tolerance standard was presented at Intertextile Shanghai Home Textiles between 14 and 16 March
• The association enjoyed a successful appearance together with three certification bodies from Germany, Japan and the US/China
• Chinese manufacturers showed great interest in the unique combination of animal welfare and quality control

‘We met many committed companies – primarily from China – that showed great interest in traceability and the ethically sound sourcing of feathers and down. The potential that Downpass offers as a traceability standard together with continuous quality control was clearly recognised and won companies over not only for export-oriented purposes, but also for the domestic Chinese market’, explained Dr Juliane Hedderich, who was responsible for the trade fair appearance as managing director of Downpass e.V.
‘The follow-up after the trade fair will be crucial to translate Chinese companies’ interest into actual memberships.’

The association's representatives and rotating teams from the certification bodies Wessling, QTEC and IDFL advised visitors at a large stand in the foyer of hall 4.2 (HOME) with a deliberately puristic design. These independent testing institutes and auditing organisations are companies’ direct contacts for audits and product monitoring. As is common for trade fairs, the largest crowds were seen on the afternoon of the first and second day of the event.

The markets are increasingly demanding materials that guarantee trading partners and therefore consumers the greatest possible security when it comes to ethics and sustainability, alongside high product quality. Products certified by independent testing institutes gain in importance and set sales standards.

Ms Anna Elisa Wessling, legal representative of the subsidiary Wessling Consulting (Shanghai) Ltd. and representative of the German Wessling Group at the trade fair, was happy to engage with customers directly, explaining, ‘our presence as a consulting, analysis and testing company at Intertextile Home gave us the opportunity to talk to visitors and thus allowed us to increase transparency on the Chinese market such that retailers and consumers are suitably informed of the highest requirements of product quality and of the origin of bedding filled with feathers and down.’
As a German family company, the Wessling Group has stood for continuous improvement in the quality and security of products and processes for 35 years and is set to move into new, larger premises for its subsidiary in Shanghai in the near future so that it can fulfil the increasing number of testing requests in Asia with a larger team.
‘We expect constant growth in our analysis and consulting segment feathers and down, especially as our international customers see Downpass as a clear advantage for customer acquisition domestically and abroad. As an independent testing institute, we play a substantial role in underpinning trust in the Downpass brand’, highlighted Ms Weßling.

The Japanese institution QTEC also confirmed Downpass’ high level of visitor interest and, like its colleagues, stressed the importance of an institute’s independence. The managing director of Shanghai QTEC Testing Laboratory, Hiroyuki Nakamoto, who successfully presented the company’s three Chinese sites – including Shanghai and Wuxi – at the home textiles trade fair, explained, ‘our knowledge of the Japanese market, together with our testing expertise, make us a top contact for manufacturers of bedding and clothing products filled with feathers and down to ensure the supply chain is ethically sound.’ The institute expects a steady rise in the number of testing requests for Downpass, especially at Chinese sites.

A large, bilingual English-Chinese sales team from IDFL China, based in Hangzhou was available at the trade fair in Shanghai to answer all questions relating to audits and testing procedures with its varied specialist expertise. Together with its cooperation partner, the Chinese national down and feather laboratory CIQ Xiaoshan, IDFL has capacities for a broad range of different tests and audits.
IDFL’s Global Audit Manager Bryan Mortensen highlighted that Downpass had become a standard and therefore a seal that is recognised worldwide and in China in particular. The joint appearance with other certification bodies provided the opportunity to answer the questions of Chinese companies along the supply chain, from wholesalers to clothing and home textile brands and trading partners.
‘We are seeing strong demand for the current version of the standard, Downpass 2017, and its seal. IDFL carried out numerous audits across the globe in 2017 and we receive new requests every day. Overall we anticipate a successful future for Downpass in the down and feather industry’, explained Mortensen. IDFL – which will celebrate 40 years in the industry in 2018 – has been carrying out audits in the field of down and feathers for more than 10 years and is currently undergoing certification in accordance with ISO/EN 17065 and 19011.

In their first summary of the event, the extended Downpass trade fair team took stock of a successful trade fair premiere. ‘We aim to promote the sustainable use of natural resources across the globe and to increase transparency in the supply chain’, explained Dr Juliane Hedderich. ‘Animal welfare and guaranteed product quality are our hallmarks. We did a great job in Shanghai of jointly informing others about these and finding new collaborators.’

About the zero tolerance standard DOWNPASS 2017
Products filled with feathers and down that are certified in accordance with Downpass 2017 exclude products sourced from live plucking and production based on force feeding. The animals’ rearing is monitored and monitoring may be extended to the parent animal farms.
To this end, farms, commodities traders and producers are subject to audits and monitoring.
Pre-made products are bought by mystery shoppers at the point of sale and subsequently undergo quality control in independent testing laboratories.
As of January 2018, 503 million animals had been audited in accordance with DOWNPASS 2017.
Labelled products are available in North America, Europe and Asia.

• Child benefit fills household budgets
• Half of spending is on clothing

Demand for children's needs in Poland is expected to increase by 4% to 5% annually in the medium term. The child benefit introduced in 2016 and the good economy are boosting spending on the offspring. Clothing, including shoes, gets the biggest part. There is also a considerable domestic production of hygiene and personal care products as well as food. There is an increasing emphasis on organic products, which also opens up supplier opportunities for German suppliers.

Demand for basic children's items, such as clothing, toys, personal care and food, is expected to increase by 4% to 5% annually in Poland in the medium term. This accelerates growth over the period 2011-2015, as the market research firm PMR (http://www.pmrpublications.com) expects in its market analysis on children's products 2015 and forecast 2015-2020. In 2015, such articles were sold for PLN 9.4 billion (about EUR 2.2 billion, EUR 1 = 4,1841, average price in 2015) compared to EUR 8.5 billion in 2011.
 
The economic recovery and falling unemployment increase the general propensity to consume. This is additionally stimulated by the child allowance paid since spring 2016, which gives households more than ZI 20 billion annually; in 2017 alone some ZI 23 billion.
So the number of births rose again after years of decline in 2016. 382,500 were born in Poland, around 13,000 more than in 2015. Nevertheless, the birth rate, the number of births per woman be-tween the ages of 15 and 49, is just over 1.3 children per woman only. A sufficient quota for main-taining the population was found last time in 1991.

Birth rate in Poland (number of births per woman between the ages of 15 and 49)

Source: Eurostat

By the end of February 2017, more than 3.82 million children up to the age of 18 years were covered by the child benefit program, which re-ceive ZI 500 per month. As a result, more than 2.57 million families have received a total of nearly ZI 21 billion in state resources by that time. Nationwide 55% of all children under the age of 18 years benefit from the program. In the countryside, this percentage reaches as much as 63%, compared with only 49% in cities. Single kids of well-situated families are not included.    

Largest demand potential in Mazovia
Most of the beneficiary children live in the capital region, the Mazowieckie voivodship (Mazovia, al-most 554,000), followed by Slaskie (Upper Silesia, 383,800) and Wielkopolskie (Greater Poland, 379,600). In Pomorskie (Pommern) 25,860 children were born in 2016, so that 11.2 babies were born per 1,000 inhabitants. This was the highest proportion nationwide closely followed by Ma-zowieckie (11.1) and Wielkopolskie (11.0).
However, spending on the next generation is not only geared to the number of children, but the individual children are given more gifts or receive additional or higherquality clothing and others. Natu-ral and ecological products have a high priority, which can also benefit German suppliers.
 
In addition to namedays, birthdays, Christmas and Easter, the day of the child on June 1st of each year, is an important occasion for gifts. According to a survey by the price comparison portal Ceneo (http://www.ceneo.pl), 35.0% of those who were surveyed have planned for the June 1st 2017 from ZI 101 to 300 and 31.4% from ZI 51 to 100. Each half of the rest looked approximately each half to higher or lower expenses.
Industry experts estimate the annual sales of toys at about ZI1 billion. The strongest positions here have international companies such as Lego, Hasbro and Mattel. But, also domestic manufacturers such as Cobi S.A. (http://www.cobi.pl) and Trefl S.A. (http://www.trefl.com) benefit from the growing demand.
Cobi produces building blocks and imports and sells a wide range of other toys. The predominant products of Trefl are board games and puzzles that are being also heavily exported. Anna Skorzynska was able to place her stuffed animals, which create a sleep sound, successfully on the market. (http://szumisie.pl). Other manufacturers are Wader (http://www.wader-zabawki.pl), Hemar (http://hemar.com.pl) and St. Majewski (http://www.st-majewski.pl).

Robust eco-fashion on the rise
For children's clothing, the importance of locally sewn items is increasing. Popular brands include "Ekoubranka" (http://www.ekoubranka.pl, durable and ecological clothing) and "Pampicio" (http://www.pampicio.pl) from Sieradz.
While such smaller brands are mainly sold online, large ones such as "5-10-15" (http://www.51015kids.eu) of Komex S.A. also offered in its own chain of over 220 conventional stores.
Other children's clothing retailers include Coccodrillo (http://www.coccodrillo.eu) with 187 stores and Wojcik Fashion (https://wojcikfashion.com). The big children's toy chain Smyk (Bengel, http://www.smyk.com) also sells clothing, including its own brands "Cool Club" and "Smiki". Apparel and footwear account for the largest share of spending for children, which, according to PMR, to-taled almost ZI 5 billion, including apparel estimated at ZI 3,517 billion and shoes at Zl 1,419 billion in 2016.

The sales of food for babies and children is estimated at around ZI 1 billion per annum. Here, the market research firm PLM expects higher increases in the future than for food in total. Leading here are the French group Danone and the Swiss Nestle Group. The at Danone Nutricia Zaklady Produkcyjne (http://www.nutricia.com.pl) belonging company has large factories in Opole and Krotoszyn.
Among others Nestle produces in Kalisz (Kalisch) and in Rzeszow the brands "Nestle Nutrition" and "Gerber". Major domestic manufacturers include Geo-Poland (https://geo-poland.com/pl), Helpa (http://www.helpa.pl), Maspex (https://maspex.com, juices and the like), Wosana (http://www.wosana.pl, fruit juices) and Dary Natury (http://www.darynatury.pl, tea).

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

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

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

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

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

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

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

Source: Central bank

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

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

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

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

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

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

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

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

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

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

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

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

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

• Retail consolidates 
• Market leader LPP continues to expand

Apparel and footwear sales in Poland are rising by around 5 percent annually. An increasing proportion of sales is generated online. The German discounter chain KiK is spreading successfully. There are market niches for high-quality fashion from Germany. The leading domestic retail chain LPP is expanding at home and abroad. It not only invests in new designs but also in the online segment. The retail structure is becoming firmer.

The Polish retail trade in clothing and footwear is consolidating. The number of stores drops by about 1,000 a year. The main reason, according to the daily Rzeczpospolita, is the growing online trade. For large retail chains, active in both local and virtual trading, this trend is not negative: they are even opening up more traditional sales stores and increasing their sales.

*) Estimation

Source: Market research Company PMR

Small businesses do not have these options. They have difficulties to survive in the tough price competition and are in part pushed out of the market. Additional competition is coming d from discount and hypermarkets that are further broadening their apparel range. These include not only large grocery chains such as Biedronka, Tesco and Lidl, but also the specialized textile discounters Pepco with almost 780 and KiK with over 200 clothing stores. They are also pursuing further expansion plans.

*Forecast

Source: Euromonitor International

According to a report by the market research firm Gemius apparel and accessories form the product group that Internet users most frequently order on the net,. By contrast shoes occupy only the seventh place. In Poland, however, only a few percent of the sales of clothing account for the Internet. The growth potential therefor is still considerable. Large companies could double their online sales annually.

Source: Gemius

So far, auction platforms have played the biggest role in online apparel purchases, according to Instytut Badan Rynkowych i Spolecznych (IBRiS, Institute for Market and Society Research) in a survey of Internet users for Rzeczpospolita..

Source: IBRiS

LPP opens 50 sales salons

Notwithstanding the e-commerce boom, the leading retailer LPP, which includes the brands Reserved, Mohito, Cropp, Sinsay and House is continuing to expand its retail space. This contains already a total of just over 1 million square meters. By mid-2017, LPP owned 1,710 stores in just under 20 countries. In September, the company from Gdansk opened the first Reserved boutique in the United Kingdom on London's Oxford Street. LPP revenue increased on a zloty basis in by 17% in 2017 to almost EUR 1.7 billion.

LPP wants to expand further in 2018, according to its Deputy Chairman Przemyslaw Lutkiewicz. The chain plans to open around 50 new sales stores at home and abroad. New markets are to be developed: Kazakhstan, Israel and Slovenia. In the future, LPP wants also to be represented with its most important brand Reserved in Paris and Milan. In addition to an internet shop since mid-2017, the company already operates 19 sales salons in Germany.

LPP is constantly bringing new products to market. According to its chairman, Marek Piechocki, the company aims to have 2,000 people working on its research and development (R & D) projects by the end of 2018. That would be a number of 800 specialists more than in autumn of 2017. The research and development budget should be increased to EUR 48 million and will be used especially for the design of new clothes.

So far, 810 fashion designers have been designing around 40,000 garments annually for LPP. The shops are staffed by 40 architects and coordinators. About 250 programmers introduce new technologies, especially in the field of e-commerce. LPP wants to triple the number of IT experts in a medium term. In fall of 2017 the share of online sales of LPP brands was 4 percent. It should even double by 2020.

Premium brands are increasing

The Spanish company Inditex with its brands Zara, Oysho and Pull & Bear is not missing in any shopping center in Poland. It should therefore continue to expand there as well. The Swedish H & M is developing not only its online business but its retail business as well and will open a new store in Tychy in March 2018.
In view of the increasing employment rate and the purchasing power of the Poles, the sales opportunities for high-quality clothing from Germany are also rising. Among other things the potential can be seen in the domestic Grupa Vistula, which increased the Polish retail space of its elegant brands Vistula, Wolczanka, Deni Cler and W.Kruk in 2017 by 9 percent to almost 33,500 square meters. Additional space is added on a franchise basis. The men's outfit Bytom, whose merger with Vistula persist in persistent rumors, is expanding its trading base.

Footwear company CCC is growing abroad

The Polish shoe group CCC, consisting of the largest domestic shoe manufacturer and the operator of the CCC retail chain, generated revenues of more than EUR 984 million in 2017. This was around EUR 235 million more than in 2016. The stationary CCC stores earned EUR 796 million (+24 percent on a zloty basis).
The group wants to expand accordingly. Among others seven stores should be opened or expanded in Austria in 2018 while three new branches will be set up in Croatia and Slovenia. CCC operates more than 900 shoe stores in 16 countries, including 77 in Germany and 45 in Austria.
In September 2017, CCC secured EUR 127 million from investors for the expansion of its online activities through the issue of new shares at the Warsaw Stock Exchange. In some markets, such as Greece, CCC is exclusively virtual on a customer hunt. In Poland e-commerce is also picking up its speed: the online business of the eObuwie.pl group increased its revenue in 2017 by 111.5 percent over the previous year to more than EUR 142 million.