Textination Newsline

• The Print Make Wear fast fashion factory feature at FESPA Global Expo 2019 in Munich (14-17 May 2019) will double in size compared with its launch in 2018 in response to positive visitor feedback.

The feature was introduced at the flagship FESPA event in Berlin in 2018 to meet the needs of visitors interested in the opportunities in printed fashion textiles and garments. Taking the form of a live production environment, Print Make Wear addresses every step in the garment production process. This begins with planning, design and prepress, progressing to printing, drying, cutting, sewing, welding and embellishment and finishing with packing and retail display.

At FESPA Global Print Expo 2019 the expanded feature will allow more space to showcase an even more comprehensive range of garment printing technology solutions and consumables, as well as incorporating a staged area for presentations and debates and a catwalk for fashion shows. The visitor experience will also be enhanced with two separate guided tours, one with a focus on direct-to-garment production and the other tailored to visitors interested in roll-to-roll production.

The technologies showcased within Print Make Wear 2019 will include direct-to garment digital and screen printing presses with both automatic and manual presses printing on water-based inks, the roll-to-roll digital technologies will include dye-sublimation as well as other textile print technologies, with the support of brands including Adobe, Adelco, EFI, HP, Mimaki, Vastex MagnaColours, Easiway and Premier Textiles.

The garments produced and modelled within Print Make Wear will carry a striking series of exclusive designs on the theme of ‘Elements’, with the tagline Inspired by Nature – Powered by Print, which have been created specifically for FESPA by photographer and illustrator Jasper Goodall. FESPA is also working with young fashion designer Aminah Hamzaoui, who is collaborating on the design of the garments being produced using the roll-to-roll technologies.

FESPA Head of Events, Duncan MacOwan comments: “Year after year, independent market insights and visitor feedback reinforce the rising levels of interest in textile printing, while our own FESPA Census in 2018 indicated that sports apparel and fast fashion are two of the most dynamic growth applications in our community. Visitor response to the first Print Make Wear feature last year was extremely positive, with more than 2,000 visitors taking part in our expert-guided tours.”

He continues: “By increasing the floor space dedicated to this feature in Munich we can accommodate visitors more comfortably, enrich the overall experience and elevate the educational content. We’re confident that, whatever their level of knowledge or investment in garment printing, visitors to Print Make Wear 2019 in Munich will leave with a deeper understanding of the opportunities to optimise production, improve sustainability and boost profitability.”

Print Make Wear is free to attend for registered visitors to FESPA Global Print Expo 2019 and the co-located European Sign Expo. Guided tours can be pre-booked at https://www.fespaglobalprintexpo.com/features/print-make-wear. The feature is part of a programme of free educational content which also includes the new Colour L*A*B* colour management showcase and conference, Printeriors and a comprehensive schedule of live seminars in the Trend Theatre.

For more information about Print Make Wear, visit www.fespaglobalprintexpo.com/features/print-make-wear. To pre-register to attend FESPA Global Print Expo 2019 visit https://www.fespaglobalprintexpo.com/ and use code FESM906 for free entry.

• Innovations for Indoor and Outdoor Applications

At the beginning of 2018, the textile company Schmitz-Werke GmbH & Co. KG, Emsdetten, was restructured. In order to be able to react more quickly and flexibly to the markets and their demands, the brands drapilux, swela and mobiltex have since been combined under Schmitz Textiles.

Managing Director of this legally independent company is Stefan Ruholl, who has been working for Schmitz-Werke for more than 30 years, answering the questions of Textination. In 1996 he became head of the finishing department, three years later head of production and development for the textile finishing division, in the beginning of 2000 technical director, and finally 2018 he took over the management of the business unit and of the company Schmitz Textiles.

Schmitz Textiles is a family business that has been offering textile solutions for indoor and outdoor applications for more than 90 years. If you had to introduce yourself in 100 words to someone who doesn't know the company, what makes you unique?
As an almost fully integrated manufacturer in Germany, we have advantages that many other market players are likely to envy. We can respond flexibly, technically and with good service to the needs of our customers. Under the drapilux brand, we distribute intelligent design textiles for the contract sector, outdoor and sun protection fabrics under the swela brand and textiles for the automotive segment under the still young label mobiltex. All brands benefit from the broad know-how in production and product development. A few years ago, Germany as production location may have been regarded more negatively as a pure cost factor, but today we see this as valued by our partners as a clear strategic advantage.

In which product areas do market and partners particularly challenge you?
And with which product innovations in the field of technical textiles do you think you can move most?
In each of our fields of activity, we are confronted with comprehensive challenges. At drapilux, for example, we have to meet strict safety requirements in the context of fire protection certifications for the use of our materials on cruise ships and have invested massively in this subject. The sun protection sector is characterized by high demands on color and light fastness combined with optimum resilience - here we were able to gain a major technological advantage with the change from acrylic to polyester qualities years ago.
With the new, award-winning development of our convertible top fabric for mobiltex, also based on polyester, we were able to realize product properties that are completely new in this form in this segment.

For which socially relevant topics do you see particularly great need for innovation in the upcoming 10 years
and what is your assessment that the textile industry will be able to offer solutions with its products?
When we look at the next ten years, then it is surely the topic of sustainability that is already omnipresent today. At the moment we are living in a phase where we want sustainable products on the one hand, but, on the other hand, the willingness to pay higher prices for them is not yet pronounced and people tend towards staying with conventional products. This will change. Sustainable products from companies that really live sustainability in the dimensions of ecology, economy and society will win the race. The textile industry offers the best conditions to turn this vision into reality - albeit under investment in production and research and development.

Today, product and technology innovations mean to a large extent digitalization of production and business processes.
New business models often aim at verticalization and demand the path to batch size 1 - what does this mean for Schmitz Textiles?
For an industrial company with a B2B focus, such as Schmitz Textiles, "batch size 1" must be answered with a certain bandwidth. However, in principle, this topic is not new to us, for example in yarn dyeing, we can couple micro-installations for larger batches - and conversely control correspondingly smaller batches through our process chain. In the digital printing sector for the contract business, we are very individually and customer-oriented positioned with a minimum quantity of 25 meters. For our sister company and customer markilux we are supplier for their "Color on Demand" offer for the individual awning cloth with a choice of 1625 RAL colors. With an industrial production scale, you can hardly get much closer to "lot size 1".

To break new ground means decisiveness, overcoming fears - and with that the courage to fail. Not every project can succeed.
Which entrepreneurial decision are you particularly happy about having made it in retrospect?
If we look further back, about ten years ago, the decision to invest in digital printing and to build up know-how and our own production capacities was the right one. Having passed through these learning curves enables us today to expand our offer into the outdoor market without major problems. We are currently more convinced than ever that by entering the automotive segment with the still young mobiltex brand, we have established a new, important keystone for the long-term future of Schmitz Textiles.

The textile industry has been growing steadily worldwide for decades. The consumption of chemical and textile fibres more than quadrupled between 1975 and 2016. In terms of sustainability, there is, to put it mildly, a mixed feedback for our industry.
What is Schmitz Textiles concentrating on in order to fulfil their social responsibility?
If textiles are produced exclusively in Germany, the regulatory framework already requires a certain sustainable orientation. But of course, there is also room for maneuver. In order to meet the high demands of a sustainable and environmentally friendly production, we operate a very high expenditure. For example, all dyestuffs and textile auxiliaries are first checked for compliance with laws and regulations and for environmental and occupational safety aspects before they are used in-house. In addition, voluntary measures were implemented in the area of production long before legislation came into force, such as regenerative thermal post-combustion for the post-treatment of process exhaust air from finishing plants. This ensures that no harmful emissions are caused by exhaust air, waste water or noise. Many projects have also been successfully implemented for energy recovery from process waste water and process exhaust air. All process waste is either returned to the production workflow, recycled or professionally disposed of. A contribution to environmental protection, that should not be underestimated, is the use of synthetic fibres (here: polyester), which can be modified with much less chemicals than natural fibres and are much more durable.
 
The next Techtextil is just around the corner. What are your expectations at the Frankfurt trade fair?
We are a young but at the same time an almost 100-year-old company, having emerged from the corporate reorganization of Schmitz-Werke GmbH + Co. KG on January 1, 2018. Consequently, we are exhibiting for the first time as Schmitz Textiles GmbH + Co KG with our three brands mobiltex, swela and drapilux. We want to present ourselves as a textile competence center. However, the automotive textiles theme will be somewhat in the foreground. We are exhibiting a complete convertible roof with our mobiltex 388 soft top fabric, which was nominated for the German Innovation Award 2019 by the German Design Council, and we are confident that we may accept an award at the end of May.

Individualisation, automation and digitalisation: micro-factories are the way forward for the future of clothing production and will be the main theme of Texprocess in Frankfurt am Main from 14 to 17 May 2019.

“Send your favourite design to the manufacturer today via an app and wear your individually designed, perfectly fitting trainers or shirt tomorrow.
It’s a long time since this was just a pipe dream for the future,” says Michael Jänecke, Director Brand Management Technical Textiles and Textile Processing at Messe Frankfurt. “Behind it, however, lies a host of complex processes, involving production, processing and logistics. Micro-factories, based on networked and integrated procedures, represent the progressive way of making textile processing quicker, more flexible and, because it is more local, also more sustainable; whilst, at the same time, producing personalised products.”

In a total of four micro-factories at the up-coming Texprocess, trade visitors will be able to get an idea of how integrated textile processing works and where micro-factories are already being used.

Digital Textile Micro-Factory: on-demand and virtual reality
Following the success of the last event, Texprocess, in collaboration with the German Institutes of Textile and Fibre Research in Denkendorf (Institute für Textil- und Faserforschung Denkendorf – DITF) and partners from industry, will once again be presenting a ‘Digital Textile Micro-Factory’ display - and thus fully networked production chains - live in Hall 4.1. New this year: the ‘Digital Textile Micro-Factory’ will showcase three production lines – one for apparel manufacture, one for 3D-knitted shoes and one for processing technical textiles, largely for the motor-vehicle and furniture industries.

‘Fashion Line’ integrates virtual prototypes and customer interaction
The fashion industry plays a central role in the ‘Digital Textile MicroFactory’. The customer’s digital doppelganger is becoming more and more important in development departments in the apparel industry as the starting point for individualised and perfectly fitting clothes and for links with finishing departments. In the context of the micro-factory’s production line, it is the key feature.

The production line demonstrates the various stages involved, including CAD/Design, printing, cutting out, assembly, finishing and labelling. New approaches also combine 3D simulations of clothing with direct data transfer in virtual reality (VR) and augmented reality (AR). Instead of presenting the customer with physical examples of the clothing to be produced, the examples are visualised as virtual objects. And during the production process, the customer has the opportunity for direct input into the design of the product in question. This direct interaction between the 3D simulation of an item, the representation in VR/AR displayed on the customer’s own hardware and the direct impact on the production process has never been shown before in this way. Partners of the ‘Fashion Line’ are: Assyst (CAD/design), Mitwill (materials), Caddon, ErgoSoft, Mimaki and Multiplot (printing), Zünd (cutting), Juki and Stoll (assembling), Veit (finishing) and Vuframe (AR/VR).

3D knitting on the way to Industry 4.0
From 3D image to finished prototype in 18 minutes: the future is here in the world of knitting too! The ‘Digital Textile Micro-Factory’ at Texprocess and Techtextil shows a workflow which enables 3D-knitted uppers for shoes to be produced directly from the customer’s own particular foot measurements.
The ‘3D-knitting Line’ of the micro-factory demonstrates the process from the 3D model to the creation of a geometrically accurate knitting pattern by the software, based on the 3D data set, and the development of a specification of the final knitting data, through to the manufacture of a 3D-knitted prototype. Knitting is the additive manufacturing process for textiles. The ‘3D-knitting Line’ is partnered by Stoll.

Processing technical textiles in the micro-factory
Industry 4.0 live: the focus of the third production line of the ‘Digital Textile Micro-Factory’ 2019 is on the automated processing of technical textiles, personalised for the individual customer, taking us right through to the finished product. Trade visitors will see here on-demand inkjet printing and networked machines with integrated sensors, which are linked through a bus system – a future-oriented topic for integrated manufacturing. A robot arm with a special claw for use with textiles sorts the cut items as they emerge from the cutter in a free-moving open shuttle. The items to be sewn are conveyed automatically to the sewing stations. Tracing and tracking procedures show the progress of each order through the individual stages of the manufacturing process using an auto ID. In addition, the display will also show how creative ideas from the Cloud can be incorporated in the manufacture of technical products. Technology meets creativity. Partners of the production line: Mitwill (design), ErgoSoft (RIP), Caddon (colour management), HP (large-format inkjet printing), Zünd (cutting), Dürkopp Adler (networking, integration of an open shuttle, sewing), Veit (finishing), Next Robotics (material handling).

Smart Textiles Micro-Factory: industrial-type production of smart textiles
In their ‘Smart Textiles Micro-Factory’, located in the walkway between Halls 4.1 and 5.1, the Institute for Textile Technology (ITA) at the RWTH Aachen University, together with partners from industry and research, will be producing a ‘smart’ pillow which, with the help of integrated LEDs, provides new ways of interaction. With this demonstration, the partners in the project will present an exemplary, industrial-style manufacturing process for a smart textile from design to finished product. The prototype of the pillow was displayed in advance at Heimtextil 2019. The following are all involved in the ‘Smart Textiles Micro-Factory’: the Institute for Textile Technology (ITA) of the RWTH Aachen University (project coordination), Gerber Technology GmbH (cutting), the Korea Institute for Industrial Technology KITECH (electronics), VETRON TYPICAL Europe GmbH (sewing), Wear it GmbH (product design and concept) and ZSK Stickmaschinen GmbH (embroidery).
 
World of Digital Fashion: customisation of apparel
Six companies have grouped together under the ‘World of Digital Fashion’ umbrella. They work in areas of visualisation, CAD-cutting systems, automated body measurement, cutting out and process automation. Together, they will be showcasing, in Hall 4.0, ways of integrating and combining their products in a variety of workflows within the value creation chain and will enable visitors to experience what the digital process chain is like in practice. The focus will fall particularly on the customisation of apparel and fashion items. Partners of the ‘World of Digital Fashion’ are: Browzwear Solutions and Tronog (visualisation), Software Dr. K. Friedrich (CAD), Fision (automated body measurement), Bullmer (cutting), as well as Gertsch Consulting and Mode Vision (process automation).

Micro-factory presented by Efka and Gemini: easy to implement
Manufacturers of drive mechanisms for industrial sewing machines Efka will,in collaboration with CAD suppliers Gemini, be showcasing the production of a knitted garment that can be individually designed. The core element of their micro-factory, which closely reflects industrial practice, is the link to the sewing stage of production, something which is already available today as an economic, partially automated solution. The display presents a solution that can be easily implemented and adopted by most companies, using already available resources.

• The cultivation of cotton is to be expanded

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

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

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

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

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

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

^*) Fiscal years (July to June)

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

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

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

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

Sources: Pakistan Bureau of Statistics, UN Comtrade

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

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

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

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

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

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

Problems with the supply of cotton

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

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

• E-Commerce Market continues to grow rapidly

Russia's online retailers are entering into strategic alliances. The market is maturing and consolidating. German suppliers must prepare themselves for tougher competition.
Russia's online trade continues to record strong growth rates. In 2018, sales increased by 19 percent year-on-year to around Rubel 1.2 billion (EUR 15.5 billion; 1 EUR = 74.04
Rubles, annual average exchange rate 2018). This corresponded to about 290 million orders, according to Data Insight's analysis. By the end of 2023, the investment bank Morgan Stanley expects annual growth of 25 percent to Rubles 3.5 billion. In 2018, the cross-border Internet trade increased by 29 percent to the equivalent of EUR 4.7 billion.

¹⁾ Physical goods only; excluding cross-border trade, deliveries of ready meals, tickets for transport and events, coupons, consumer-to-consumer and multi-level marketing;
²⁾ Nominal year-on-year; variance due to rounding.
Sources: Market research institute Data Insight; Association of Online Retailers (NAMO)

The share of e-commerce in retail sales is currently still around 5 percent. With the "Strategy for the Development of Online Trade by 2025", the government wants to increase this up to 20 percent. The conditions for further growth are good, as Russian consumers are Internet-savvy and open to technical innovations. Already 76 percent of all Russians have an Internet connection. According to the national "Digital Economy" project, broadband Internet penetration is expected to reach 97 percent by 2024.
 
Growth potential far from exhausted
Russia's online retailers are following this trend by modernizing their websites and are investing in goods logistics. Electronic marketplaces are becoming increasingly popular. This is because they offer smaller Internet retailers in particular the opportunity to assert themselves against the market leaders.
In the Forbes ranking of the 20 most valuable Internet companies in Russia, online retailers Wildberries and Ozon rank fourth and fifth respectively. The Russian fashion mail order company Lamoda - a foundation of the German Rocket Internet - is in ninth place.     
The Otto Group realigned its business model in Russia in 2018 and removed its subsidiaries Quelle and Otto from the market. The Hamburg-based group relies on the online brands Bonprix and Witt as well as on the eSolutions platform, which offers B2B services in the areas of marketing, sales, logistics and IT.

Source: Data Insight (http://datainsight.ru/top100/)

Russia gets two "local Amazons" at once 
Russian online trading is already firmly in the hands of a few large players who are continuing to expand their market presence. The market leader Wildberries added electronics and household appliances to its range in 2018. AFK Sistema Holding of the oligarch Yevgeny Yevtushenkov has increased its stake in the online retailer Ozon and is investing in the construction of new logistics centers In addition, Ozon started selling medicines, jewellery and ready meals.  

In April 2018, the Russian technology group Yandex and Sberbank agreed to establish the Beru and Bringly online marketplaces. The aim is to further develop the Yandex.Market platform into a "Russian Amazon". Russia's largest bank brings in the customer data of 100 million account holders.
Beru and Bringly's range mainly includes high-priced goods such as electronics, clothing, shoes and cosmetics. Bringly cooperates with the British cosmetics chain Feelunique, among others. In September 2018, Yandex.Market also concluded a cooperation agreement with Hepsiburada, Turkey's largest online marketplace. 

Alibaba expands its market presence in Russia
In September 2018, the next major merger in Russian online trading was announced: The Mail.ru Group and Megafon (part of the company empire of the oligarch Alisher Usmanow), the Russian Fund for Direct Investments and the Chinese technology group Alibaba intend to establish a joint online marketplace by the end of the first quarter of 2019. Alibaba intends to expand its presence on the Russian market.
The Mail.ru Group provides access to the data records of around 100 million users - an enormous new customer potential for the Chinese online giant. On March 5th  2019, AliExpress, the Russian subsidiary of Alibaba, also launched a platform for the sale of passenger cars of the Chinese brand Chery.

Duty-free limit continues to fall
Two thirds of Russian online buyers also order goods from foreign traders. 90 percent of the deliveries come from China. If the price and weight of the product are within the exemption limits, no sales tax is payable. On 1 January 2019, the exemption limit for cross-border online trading was halved to EUR 500 and the weight limit was lowered from 31 to 25 kilograms. From January 1st   2020, the tax-free allowance will fall to EUR 200.  However, this measure is unlikely to generate any additional revenue for the Russian State. In 86 percent of cross-border online purchases, the maximum value of goods is at about USD 22.

Above all, capacity bottlenecks in the delivery of online orders are currently putting the brakes on sector. VTB-Bank is therefore investing around EUR 410 million in the construction of 40 logistics and distribution centers for the Russian Post Office (Potschta Rossii) by 2021. The state-owned company intends to profit from the growth in the online commerce and increase its revenue from parcel services for e-commerce to Rubel 122 billion by 2023. Since September 2018, the Russian Post has been distributing deliveries from China via hubs in Siberia and the Far East.
The logistics service provider DPD has been working with the Avito advertising portal since October 2018. In future Its customers will be able to collect their parcels at around 1,500 DPD stations. Since June 2018 DHL and eBay have been working together on logistics services in Russia.

The development of B2B platforms is becoming increasingly important in Russia's online trade. The potential is huge: the Russian B2B online market amounts to around USD 20 billion - and the trend is rising. Pioneers such as Sewerstal, Alrosa or Technonikol already rely on B2B platforms to sell directly to their end customers. In 2018, the Chinese Fosun Group acquired around 20 percent of the shares in the B2B platform Prod.Center, on which agricultural products are traded.

• Competition from the Far East increases modernization pressure

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

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

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

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

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

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

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

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

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

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

• 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.

More than 400 exhibitors representing 682 brands and approximately 30,000 trade visitors and key opinion leaders (KOLs) took part in ISPO Beijing and Alpitec China held at the China International Exhibition Center (CIEC) from January 16 to 19, 2019. This year, the most important sports trade fair in the Asia-Pacific region was jam-packed with numerous forums, trends and innovative products and services relating to winter sports, outdoors, health & fitness, and manufacturing & suppliers. Soccer also featured for the first time.

“The Chinese have discovered a passion for soccer and their enthusiasm for it continues to grow. European clubs and leagues in particular are a huge source of inspiration for the emerging Chinese soccer market. ISPO Beijing has found a strong new partner in Bundesliga International for continuing to drive the soccer boom in Asia over the next few years,” says a delighted Elena Jasper, Exhibition Director ISPO Beijing. The specially created Football Activation Area played host to seven German first-league teams, namely Bayer 04 Leverkusen, Borussia Dortmund, Borussia Mönchengladbach, Eintracht Frankfurt, FC Schalke 04, VfB Stuttgart and VfL Wolfsburg. They challenged visitors to take part in various activities such as Speed Goal and Goal Wall Shooting and created a thrilling soccer atmosphere for them. The program also featured the Football Forum, which was held on the opening day of the trade fair. High-profile speakers from the clubs set out their strategies for activating the market in China and presented concepts for promoting and encouraging fresh young talents as well as ideas on brand positioning.

Winter sports continue to be popular thanks to Olympics
Winter sports have proven to be hugely popular for several years now, especially in view of the upcoming 2022 Beijing Winter Olympics. As well-known brands and exhibitors in this segment, Burton and Oakley made a welcome return to ISPO Beijing. The Market Introduction Program, designed for brands keen to penetrate the Chinese market, also focused on this area. As part of the two-day seminar program, representatives of 10 brands from across Europe, Asia and the U.S. gained a solid understanding of the specific ins and outs of the Chinese market thanks to industry experts in distribution, online and offline retail and commercial law, and made preliminary contacts.

The Asia Pacific Snow Conference was held for the 11th time in collaboration with the longstanding partner event Alpitec China, the leading trade show for mountain and winter technologies. Representatives from the technology, sports and tourism industries discussed advances being made with China’s ski resorts as well as models and measures for developing, maintaining and expanding them.

Ski Resort Tour participants were given an insight into the infrastructure of the winter sports resorts and treated to a taste of what to expect from the Olympics. Three 2022 Winter Olympics training venues and sites were on the itinerary, namely the Shougang Olympic Park, Wanlong Ski Resort and Genting Ski Resort Secret Garden. “China’s professionalism in preparing for the major sporting event is very impressive. Sports venues are being designed and built in line with the very latest standards. The Olympics will be just the start of China’s development as a winter sports nation,” says Klaus Dittrich, Chairman and CEO of Messe München.

Valuable knowledge transfer throughout all segments
An extensive supporting program was also provided for the other trade fair segments. The Sports Industry Forum focused on the topic of new investment opportunities for the sports business in China, including with regard to digitalization. Sport injuries and rehabilitation options were the main focal points of the Health & Fitness Forum. The China Climbing Report was published as part of the China Rock Summit. In the ISPO Textrends Area, international consultant for textile trends, Louisa Smith, presented the textile trends relating to materials, fibers, cuts and accessories set to take the industry by storm in the next few years. At the ISPO Award Exhibition and the ISPO Startup Village, visitors gained an overview of the most important innovative products and latest ideas to be devised by young entrepreneurs.

Creation of an advisory committee for ISPO Beijing
An international advisory committee has been set up in order to further develop and bring ISPO Beijing even more in line with the needs of the market, exhibitors and trade visitors. Representatives of exhibitors’ interests, industry representatives and partners met for the first time ever on the eve of this year’s event in order to discuss the strategic direction of the trade fair. The consensus amongst all participants was that the current format of ISPO Beijing represents a solid base with plenty of potential. New segments such as Sports Fashion and Travel should be added to the event in the future and the target group of key opinion leaders (KOLs) should be further expanded. Exchanging experience with Europe is the primary focus of interest.

The next ISPO Beijing will be held from February 12 to 15, 2020 at its new location, the China International Exhibition Center (CIEC).

For more information on ISPO Beijing, please visit https://www.ispo.com/en/beijing

• Capacity expansion planned by 20 percent

Istanbul (GTAI) - Several major apparel manufacturers plan to significantly expand their production capacities in 2019. The modernization of the factories is on the agenda as well.

Turkey's export-oriented clothing industry scores at European customers with good quality and above all with short delivery times. Recently, they have significantly increased their orders, according to industry sources.

The good order situation is prompting Turkish clothing manufacturers to investments. The 28 larger companies plan to spend around 100 million US dollars in 2019 to expand their capacities. This is the result of a study conducted by the Turkish business magazine Ekonomist (December 9, 2018 issue) in cooperation with the Garment Industry Association TGSD.

On average, the companies aimed to increase their capacity by around 20 percent in 2019, the report says. They expected their sales to increase by 15 to 35 percent.

The clothing manufacturer Taha Giyim (http://www.tahagiyim.com), supplier of LC Waikiki, plans to expand its production in the Malatya organized industrial zone. The company plans to invest a total of Turkish Lira 32.2 million (TL; about USD 6.7 million; USD 1 = 4.81 TL) in this project this year and increase its annual shirt production capacity to 2 million pieces. The company is aiming for its sales growth of 40 percent in 2019. In 2018, the estimated revenue was about T.L. 2.5 billion or about USD 520 million.

Higher production of men's outerwear
The company TYH Tekstil (http://www.tyh.com.tr), which manufactures men's outerwear in six plants, plans to expand its production capacity by 15 percent from the current 20 million units per year in 2019. Investments of TL 15 million TL are planned in Akhisar/Manisa (Western Turkey) and Ordu (Black Sea region). The company exports most of its products to the European Union. The aim is to increase deliveries to the USA. The estimated turnover of around USD 140 million in 2018 is expected to increase by 15 percent in 2019.

The manufacturer Yesim Tekstil (http://www.yesim.com), which sews for large textile companies such as Inditex, Esprit and Tommy Hilfiger, plans to double its turnover from around US$ 300 million (2018) to US$ 600 million by 2022. The technological infrastructure (industry 4.0, digitization, cloud computing) is to be expanded. The investment budget for the next five years for the procurement of machinery, plant, software and licenses totals USD 14.4 million.

Denim article manufacturer expands capacities
The manufacturer of denim articles, Calik Denim (http://www.calikdenim.com), plans to increase its production capacity by 30 percent in 2019 with a further USD 8.4 million and to push forward with the modernization of its manufacturing processes. Last year, the company stated that it had invested a total of USD 44.7 million. Calik Denim's goal is to increase its current annual capacity from 44 million meters to 60 million meters by 2020. For 2019, the company is targeting sales growth of 22 percent (2018: USD 189 million).

The company Migiboy Tekstil (http://www.migiboy.com) plans to build a fourth plant for TL 100 million in which previously imported textile raw materials should be produced. The company's goal is to triple its turnover of around TL 300 million (2018) over the next five years.

Sector network of Turkish companies abroad grows
The increasing internationalization of the clothing business is also contributing to the export success. Turkish textile trading companies have opened more than 2,000 branches abroad in recent years. The Koton company alone is growing by 30 percent annually. In 2017, the company ordered goods worth TL 1.8 billion from Turkey for its foreign business. In the foreseeable future, Koton intends to increase its procurement share from Turkey from the current 85 percent to 90 percent. Koton has 516 branches in 29 countries and employs about 10,500 people.

Hadi Karasu, President of the Industry Association (TGSD), sees potential in the German market in particular that has not yet been fully exploited. So far almost one fifth of Turkish clothing exports go to Germany. Karasu believes a share of 25 percent as possible.

In 2018, the apparel industry increased its exports by 3.6 percent to USD 17.6 billion. For 2019, the association TGSD expects an increase of 10 percent. Production is expected to increase by 3 to 4 percent.
Further information to economic situation, sectors, business practice, right, customs and advertisements in Turkey are callable under http://www.gtai.de/tuerkei

• MUNICH BUILDINGS IN A NIGHTLY ATMOSPHERE

 
The Long Night of Architecture celebrates its anniversary. For the fifth time already, the event will lead all those interested to Munich’s most beautiful and important buildings within the framework of BAU, the world’s leading trade fair.

Over fifty buildings in total will take part this year, including a few newcomers.

Ever since its launch in the year 2011, the LNDA has been a resounding success. In 2017, more than 30,000 enthusiastic visitors took part in the guided night tours, up to 35,000 participants are being expected for the forthcoming event. On Friday, January 18, exhibitors, trade show visitors and all architecture aficionados will have the possibility of catching a glimpse behind the scenes of prestigious buildings.
 
The aim of the LNDA is to give the public a better understanding of architecture, the topic of the BAU trade show. “Architecture is constructed environment in which we all move every day. Therefore, I am pleased that BAU also reaches all those interested in architecture in Munich and its environs through the Long Night of Architecture”, states Dr. Reinhard Pfeiffer, Deputy Chairman and CEO of Messe München.

Fifty buildings on seven routes

As in the past years, free shuttle buses will be made available for all visi-tors. The seven different bus routes will start directly at the Odeonsplatz, but it is also possible to get on and off at the respective bus stops. In addi-tion, there will be walking tours through the Munich city center, optionally with or without a guide. However, all those interested can also compile and plan their nightly excursions very individually using an interactive map on the website.

Theme tours for exhibitors and trade show visitors

Exhibitors and trade show visitors additionally have the choice among seven special theme tours. For instance, they can visit buildings which captivate the observer’s eye with new office concepts, or those which have been awarded certificates for their sustainability. Examples of digital processes in architecture will also be shown. The majority of the theme tours bear reference to the key topics of BAU. Since the number of places is limited, online registration in advance is compulsory.

Munich from different perspectives

Over fifty buildings in total have something in store for all interests and preferences of the visitors. The Monacensia City Library, the Siemens Headquarter and the Steelcase Innovation Center in the heart of the city center will be part of the event for the first time. The nocturnal excursion through Munich’s world of architecture will lead participants to well-known landmarks like the Olympic Tour, among other things. As the city’s highest building, it offers an incomparable view of Munich at night. Featuring the world’s largest tent roof, the eponymous Olympic Park is worth visiting even at wintry temperatures. Just a few kilometers away, there is Europe’s most cutting-edge office building: the German headquarters of Microsoft provides an insight into the working world of the future. The progressively changing world of work and increasing interaction between living and working is one of the key topics of BAU 2019.
 
Another cultural highlight is located directly at Maximilianstrasse, the city’s promenade. The Palais at the Opera underwent conversion and refurbishment until 2012 and now combines historic building stock with elegant new building spaces. For detailed descriptions of the participating buildings, please visit www.lange-nacht-der-architektur.de.