Textination Newsline

• Online sales increase

Warsaw (GTAI) - More and more clothing and shoe companies are merging in Poland. Demand is growing, but the price pressure is increasing. Customers appreciate the quality of German brand products.
Sales of clothing and footwear in Poland are rising steadily. However, the price war is becoming increasingly fierce: off-price shops offering branded goods at low prices, online shops and outlet centers are putting pressure on retailers and lowering the average returns.
Demand will receive an additional boost at the end of the year, as clothing and shoes are popular Christmas gifts. According to a survey by the consulting firm Deloitte, Polish families want to spend an average of EUR 271 on the occasion of the 2018 season, - 6 percent more than in 2017. German branded products are highly valued for their quality.

Source: Euromonitor International

The US chain TK Maxx already operates 43 off-price stores in Poland. The assortment includes various goods - from household goods to clothing - which are greatly reduced. Neinver from Spain currently operates four outlet centers under the name "Factory" in Poland. There are two in Warsaw and one each in Krakow and Poznan.
Neinver plans to use the commercial park Futura Ursus in Warsaw commercially in the future. In total, there are a good dozen outlet centers in Poland. On the site of the Galeria Rumia shopping center in the town with the same name northwest of Gdynia, the Pomerania Outlet center is planning to open at the end of 2019 with 80 shops.
The German online retailer Zalando is with its shopping club Zalando Lounge for special offers present in Poland, It has set up a logistics center in Olsztynek (Hohenstein), primarily for further expansion in Europe with this concept. Discount chains such as Biedronka and Lidl are also offering inexpensive clothing.

Sector consolidates
The growing pressure of competition and prices is leading to further consolidation among domestic companies in the sector. Various mergers are emerging. The Vistula Group will take over its competitor the men's outfitter Bytom already in 2018. The antitrust authority UOKiK has already approved the merger. From 2020 on the Group expects this to generate additional revenue of around EUR 1.9 million to EUR 2.3 million annually.
The acquisition of the apparel company Simple Creative Products S.A. (Gino Rossi Group from Slupsk) with its brand Simple for upmarket women's clothing by Monnari Trade S.A. cracked in November 2018. Simple is represented with 63 salons and Monnari with 163 stores in Poland.
OTCF, a company specializing in sportswear, owns the sports brand 4F with over 200 stores in Poland. OTCF has a strong presence abroad. Gino Rossi owns a total of around 90 shoe salons in Poland, Lithuania, Latvia, the Czech Republic and Slovakia.

Market leader LPP expands
The largest clothing company, LPP from Gdansk, continues to expand. It opened its 20th store in September 2018 with the name of its largest brand Reserved in Germany. The LPP's shops are located in the capitals of the federal states and other commercial metropolises. LPP has set up its latest store in the Zeil shopping mile in Frankfurt. According to its deputy chairman, Slawomir Loboda, LPP with Reserved generated higher revenues abroad than domestically in the second quarter of 2018.
LPP not only wants to open further stores in Western Europe, but is also aiming for other markets. In November 2018, first sales salons of the LPP brands Reserved, House, Mohito and Sinsay followed in Almaty in Kazakhstan. These brands can be purchased in Germany via online trade. The German market is LPP's fifth largest foreign market in terms of turnover.

¹⁾ without Simple; ²⁾ in Poland
Source: Company data according to daily newspaper Rzeczpospolita

CCC does not rely on the online segment only
The country's largest shoe company, the CCC Group, which is also expanding strongly abroad - including Germany - already achieved a fifth (19.8 percent) of its turnover with its online trade in the first half of 2018. The online sales were very successful: In the first three quarters of 2018 the revenues on a zloty basis rose by 59 percent compared to January to September 2017 to EUR 150.3 million.
An important platform for CCC online trading is eObuwie.pl, in which CCC holds a 75 percent stake. There are plans to place eObuwie.pl at the Warsaw Stock Exchange. eObuwie.pl intends to use the result to expand and strengthen its logistics. At its location in Zielona Gora (Grünberg), eObuwie.pl is building a modern, automated warehouse.

Online shoe trade relies on 3D models of feet
According to eObuwie.pl chairman Marcin Grzymkowski, who holds 25 percent of the shares the platform wants to use the esize.me scanner in order to motivate more Poles to buy shoes online. This scans feet and creates accurate 3D models of them. Based on these, virtual shoes will be selected that guarantee the best possible fit. It is planned to place such scanners at around at 40 locations in shopping centers. So far, according to estimates by eObuwie.pl, only 10 percent of Poles buy shoes online, as the daily Rzeczpospolita reports. In spring 2019 eObuwie.pl plans to establish an e-shop for high-quality clothing.
CCC already ordered shoes from Gino Rossi to distribute them through eObuwie.pl. Now the group wants to offer these articles also in stationary shops at home and abroad. Therefore CCC intends to acquire approximately 120,000 pairs of shoes from Gino Rossi in 2019 and approximately 180,000 pairs in 2020. After all, orders are expected to increase to around 500,000 pairs per year. Gino Rossi has factories in Slupsk and Elblag.

CCC will also acquire the license to use and sublicense the Gino Rossi brand name. The group may design its own shoe models under this brand name. Special collections are to be sold in around 200 selected CCC stationary stores among other countries in Poland and the Czech Republic. Through the agreement with CCC, Gino Rossi plans to earn an additional EUR 3.5 to 4.2 million in 2019 and EUR 8.4 to 9.3 million in 2020.

• Exports rise in the country's most important industrial sector.

Phnom Penh (GTAI) - Cambodia's clothing exports are growing steadily. However, two factors cloud the prospects for the future.

Cambodia's garment industry is the backbone of the Kingdom's export-oriented economy. Industry exports account for around 40 percent of the gross domestic product (GDP). More than 800,000 Cambodians are employed in over 800 companies. That is more than 85 percent of all factory workers in the country.

Apparel and footwear exports reached USD 8.0 billion in 2017, according to Cambodian customs. This represented an increase of 9.6 percent compared with 2016. Proud growth rates between 7 and almost 15 percent were already achieved in previous years. GTAI estimates on the basis of partner countries' imports an even higher export volume of around USD 12 billion.

More than 70 percent of the country's total exports of goods regularly come from the sector. Shoes accounted for exports of USD 873 million (+14.4 percent) in 2017. Foreign business with shoes has been improving for some years now and has been able to increase its share of exports to over 10 percent. With an unchanged share of 46 percent compared to the previous year, the EU continued to play a major role among the customers in 2017, followed by the USA with 24 percent.

The value-added volume of the sector is low and the road to an integrated textile industry in Cambodia is still long. Machines, raw materials and design come from abroad in the form of a CMT model ("Cut Make Trim"). Fabrics, yarns and haberdashery have to be imported in order to keep the local clothing industry "on the runway". In 2016, according to the United Nations Comtrade Database, USD 4.1 billion worth of textiles came into the country for processing - about 60 percent of which came from China. Textile imports have risen proportionally to clothing exports in recent years.

The garment industry is dominated by foreign companies, mostly from the Asian neighborhood China, Hong Kong (SVR), Singapore, Malaysia or South Korea. Many manufacturers produce to order for multinational brands such as Adidas, Puma, Gap, H&M, Marks & Spencer or Uniqlo. In principle, the complete contract manufacturing is intended for export.

Rising wages fuel fear of competition
After years of growth the sector is looking to the future with concern. The country is increasingly in danger of losing market share to its competitors - for example in Myanmar, Vietnam or Bangladesh - primarily due to rising wage costs. In January 2018, the monthly minimum wage for workers was raised to USD 170, up from USD 153. Compared to 2013, when a minimum of USD 80 was required by law, there has now been more than a doubling.

The annual agenda included regular increases of around 10 percent. According to the Cambodia Garment and Footwear Sector Bulletin of the International Labor Organization (ILO), workers who worked the full month, including overtime payments and incentives, were paid an average wage of just under USD 243 in 2017. Last year, it was USD 225.

In the past, low wages were mainly responsible for the attractiveness and competitiveness of Cambodian industry. This advantage is crumbling year after year as a result of the increase of minimum wages. An end to this politically motivated development is not in sight. The government can imagine, referring to expert recommendations, that minimum wages will be raised to USD 250 per month by 2023.

If the trend continues, companies are likely to migrate and not too many new investors will pitch their tents in Cambodia, critics warn. In 2017, sector companies invested nearly USD 270 million in 55 projects. This represented 5 per cent of the Kingdom's total investments. In the previous year, this share had been 9 percent.

Industry representatives complain that the costs grow faster than the productivity. Automation of production processes is becoming more and more urgent in order to keep up with productivity. However, both the lack of skilled workers and an infrastructure in need of improvement are serious bottleneck factors. There are also critics who are generally pessimistic about a possible automation in the sector. Cambodia could only score points through low labor cost advantages. Automated mass production is reserved for countries that have a reliable and cost-effective power supply and are closer to the sales markets.

Will the trade routes to the EU remain free?
Even more worrying would be the EU's cancellation of the preferential trading system EBA ("Everything But Arms"). Finally, the exemption of Cambodian clothing from customs duties is at stake on the main market. A discontinuation is likely to trigger a wave of migration of the clothing industry. Quite a few companies have taken the EBA initiative alone as an opportunity to establish themselves in the Kingdom.

In addition, the view wanders across the border to Vietnam. Manufacturers there could soon benefit from a free trade agreement with the EU. Vietnam is also participating at the Asia-Pacific Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP), while Cambodia remains outside. If the trade arrangements remain unchanged, Cambodia may get off with a black eye. However, the other factors should not be ignored. Transport and general export costs are also considered comparatively high compared with Vietnam or China.

Cambodian exporters are currently benefiting from the trade dispute between the USA and China. The National Bank of Cambodia (NBC) semi-annual report supports this assumption. According to the study, apparel and footwear exports rose by 11 percent in the first six months of 2018 compared to the same period of last year to reach a volume of USD 4 billion. Since July 2016, clothing, shoes and travel goods (suitcases, bags, etc.) can be delivered duty-free to the USA. According to the Garment Manufacturers Association of Cambodia (GMAC), shipments of travel goods to the USA in the first half of 2018 reached an amount of around USD 160 million - three times the previous annual exports.

Cambodia's imports of textile machinery amounted to USD 127.3 million (SITC 724) in 2017 according to the UN Comtrade database. This was 11.4 percent more than in the previous year. About 60 percent of the capital goods came from China; the remaining deliveries are relatively evenly distributed among other Asian countries. German deliveries only appear very sparsely in the statistics. Used machines from abroad are more likely to be in demand, but are not recorded statistically.

• AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

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

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

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

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

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

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

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

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

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

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

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

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

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

Cooperation and local production the new trend

Nairobi (GTAI) - China dominates infrastructure projects and the construction industry in East Africa. But now the Kingdom of the Middle is also intensifying its commitment in trade and industry.

The Chinese advance in East Africa is breathtakingly fast, focused, efficient and highly successful. The approach is simple: one makes a business proposal that meets the wishes of the decision-makers, brings everything with you, including financing, and the project will be brought out with Confucian efficiency.

Because the customer is satisfied, follow-up orders are being placed. And the more orders there are, the more Chinese activities are there that no longer have anything to do with the original project: Trade, housing construction and business start-ups. And the more the debt with Chinese financiers rises, the more their interest grows in ensuring that the debt can be serviced.

China is fast - on its terms
In Kenya, the Chinese breakthrough came with the comparatively short road from Nairobi to Thika. The international donor community was willing to finance a road construction project, but only at the usual terms, such as regular feasibility studies and tenders, but at favorable interest rates. During the term of office of the former acting President at the time, all this would not have been completed.

Meanwhile, the Chinese made a different offer: shortest construction time and commercial credit with free hand and political backing. Residence permits were issued in an urgent procedure, and work had already begun before necessary expropriations had been completed. Everything was brought along, even truck drivers and food. Deliveries were made on time for the end of the President's term of office.

If customers are satisfied, there are follow-up orders. For example, a new railway - the favorite project of the current Kenyan President Uhuru Kenyatta - is also being built, financed and operated by the Chinese. The usual donors, such as the World Bank, had previously declined because the project was unlikely to pay off economically. Thanks to Chinese commitment, the first route from Mombasa to Nairobi was completed in time for the presidential election campaign and could be marketed as a political success. The fact that, in the opinion of critics, that the section was three times as expensive as necessary, was not contested by the voters.

Chinese appearance in the ripening process
Chinese companies had learned a lot from the first road project: They now know what the Kenyan business world and industry can and can't do, what they need, how they tick, how to do business in Kenya and how to deal with bureaucracy and widespread corruption, what cartels and monopolies one has to fear and how to deal with them if necessary.

Thanks to this knowledge and preferential treatment in work permits, Chinese construction and trading companies were able to gain a foothold within a very short space of time. And the more Kenyan government orders go to Chinese companies and the more Chinese traders gain a foothold in Kenya, the more Chinese goods flood the country.

But not only that: Chinese companies have been founded to manufacture locally. In addition, hordes of Kenyan workers are employed or Kenyan goods are being purchased if they are cheaper and/or better, or, logistically speaking, can they be procured more quickly. Kenyan companies and workers have also learned what is important to the Chinese partners - a learning and maturing process on both sides. Some Chinese people have married local and want to stay.

State acquisition perfected
Meanwhile, Chinese companies have virtually "perfected" their government procurement, reports the leading Kenyan daily newspaper "The Nation" with a sarcastic undertone: Chinese acquirers use an English first name that can be remembered and pronounced and, accompanied by a politically well-connected "fixer", visit together a cabinet secretary or the head of a semi-state company and make a proposal for a major infrastructure project combined with the promise to provide the financing.

A "Memorandum of Understanding" is then signed very quickly, followed by a commercial contract with the responsible ministry. Then only the Ministry of Finance has to sign the loan agreement and the deal is perfect. Parliament, budget controllers and the state auditor are excluded. The fact that high commissions and so-called kickbacks (bribes) are being paid in these transactions is in the nature of things.

German companies that participate in Chinese projects may be familiar with this background and are therefore usually very cautious. In other words: German-Chinese business relations in East Africa are reluctantly hanged on the big bell, because the German reputation could suffer. The German-Chinese business relationships that have nevertheless become known are quite different but show a range of possibilities.

Professional cooperation without ideology
On the one hand, there are German companies which are based in China, either independently, as joint ventures or in the form of cooperation. Such companies are considered "Chinese" because they know the rules of the game, the correspondence can be conducted in Chinese and the bank account exists in China. Then there are other German companies with whom one has already worked successfully together in Germany or elsewhere in the world - so why not again? And there are German companies that have a lot of experience in Africa and are well networked, such as consulting firms that can take over construction supervision. It is often the Kenyan client who demands a neutral and professional watchdog.

Many German products are appreciated by the Chinese. If a German company in Kenya is successful with construction chemicals, a Chinese company will also like to come back on them. And if a German construction machine has the desired specifications, it is also being bought by Chinese people in Kenya.

Chinese companies are first and foremost concerned with business and not ideology. German products and services have a good reputation worldwide, even among Chinese people. If China did not used them for its first projects in East Africa, it was because of a lack of knowledge of what is locally available and what is not. In the meantime, this has changed dramatically. And like everywhere in business life, contacts count and they need time to be established.

Chinese are the new Indians
It can already be foreseen that the driving force behind new industrial projects in Kenya will no longer come from entrepreneurs of Indian origin, but from Chinese ones. Once planned Chinese-built industrial parks are completed, there will be a wave of Chinese investment. If these investors first look at Chinese technology, it is only because they are better acquainted with the Chinese market. Anyone who knows and appreciates German products, on the other hand, will know how to weigh up the commercial advantages and disadvantages. For example, one of the first Chinese industrial projects in Kenya, the building materials supplier China Wu Yi Precast, has primarily installed German technology.

Farthest in Ethiopia
What applies to Kenya also applies to Ethiopia, where the Chinese advance is already much further ahead. There, too, the Chinese have built a railway, much more modern and cheaper than in Kenya. And more importantly, they are building industrial parks throughout the country where international companies can find good conditions for low-wage production. The first textile, clothing and leather factories report successes. Food processing and pharmaceutical companies are coming in a second wave. Of course, there are many Chinese companies in it, but not only. And, of course, German companies have good sales opportunities if they make the appropriate marketing efforts.

In Uganda are Chinese traders who have been mixing up the local market. The great Chinese engagement will only come with the start of the oil production and when the Kenyan railway has reached the Ugandan border. In Tanzania, the Chinese currently have less to report because the incumbent president, who is committed to fighting corruption, wants it that way. Instead of Chinese, he gets his railroad built by Turks. Meanwhile, Djibouti has become so heavily indebted to China that its influence can no longer be stopped.

New tones from Beijing
While the Chinese progress all over East Africa - even without Tanzania - can no longer be stopped, it remains exciting to see to what extent new tones from Beijing will affect China's involvement in East Africa. The Chinese leadership has declared its intention to curb corruption in its own government. If it is serious about this, it will also have to introduce stricter rules in its East Africa business.

And then there is the "socialism with Chinese characteristics" propagated by Chinese President Xi Jinping, with which he wants to make the world happy. So far it has been Western Europe and North America that have aggressively propagated their democracy as a form of government and political ideology in Africa. It seems that Xi Jinping now wants to counter this with Chinese principles. Chinese reforms can also be expected in the areas of environmental protection and sustainability, which at some point will also affect Chinese Africa business.

Source: Research by Germany Trade & Invest

The entire study "China in Africa - Perspectives, Strategies and Cooperation Potentials for German Companies" is available free of charge: Print version under order number 21054 (32 pages) at Germany Trade & Invest, Kundencenter, Postfach 140116, 53056 Bonn, Germany, Telephone: 0228/24993-316, e-mail: vertrieb@gtai.de or as PDF document (german only) after short registration at http://www.gtai.de/china-in-afrika.

• Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

Even though the sector mostly consists of small enterprises, some clusters emerged. The textile industry can mainly be found in the federal states of Gujarat, West Bengal, Andhra Pradesh and Tamil Nudo.     
A more detailed structure is drawn by Sanjay K Jain, chairman of the textile Association “Confederation of Indian Textile Industry in an interview with Germany Trade & Invest: Knitwear clusters are found in Tirupur, Tamil Nadu, Kolkata, West Bengal, Ludhiana, and Kanpur. There are weaving centers in Ichankaranji and Bhiwandi (both Maharashtra), Erode (Tamil Nadu), Surat (Gujarat), and Bhilwara (Rajasthan). For ready-to-wear a cluster in Panipat (Haryana) and for the production of shirts and trousers has formed a cluster in Bangalore (Karnataka).
 
The state subsidy agency India Brand Equity Foundation (IBEF) recognizes four industrial centers – also according to the regional availability of raw materials. In the north (Kashmir, Ludhiana and Panipat) about 80 percent the production of woolen goods are concentrated. In the west (Ahmedabad, Mumbai, Surat, Raijkot, Indore and Vadodara) is the focus of the cotton industry. Hosiery (Tirupur, Coimbatore and Madurai) and silk products (Bengaluru, Mysore and Chennai) have their strengths in the South. The east of the country is focused on jute goods (Bihar and West Bengal). But also wool (Uttar Pradesh) and cotton goods (West Bengal) are represented. In addition, ac-cording to the IBEF, India has seven export-oriented Special Economic Zones for Textiles and Clothing in mid-2018.

A handicap for the textile industry is the missing size. For example, most low-capacity sites are scattered across the country. The construction of large integrated industrial parks is necessary. The various states and state institutions are also trying to promote new textile clusters.

The central government budget will provide ap-proximately US $ 4 million for the Scheme for Integrated Textile Parks (SITP) program in the fiscal year 2018/19 (April 1 to March 31). There are currently 47 projects in this field. The pro-gram intends the further development of such settlements with a common infrastructure.

• Premiere: “Process live” format
• Lightweight Technologies Forum to present hybrid lightweight construction
• Trade fair kick-off event: International Composites Congress (ICC)

In the competition of lightweight construction and design materials, composites are among the winners – automotive engineering, aerospace, wind energy, boatbuilding and construction can no longer do without glass- and carbon-fibre reinforced plastics (GFRP & CFRP). Nevertheless, the greatest impetus right now is coming from the composites industry itself: technological advancements in the process chain. From 6 to 8 November, COMPOSITES EUROPE in Stuttgart will drive home that point.

Trade fair visitors will meet more than 350 exhibitors from 30 countries who in Stuttgart will present state-of-the-art technology and the potential of fibre-reinforced composites – in the exhibition area as well as in numerous event areas, lecture forums and themed tours.

With the new “Process live” format, coordinated processing and manufacturing processes will become the visible focus of this year’s COMPOSITES EUROPE. Mechanical and plant engineering companies will get together in group exhibits to showcase their technologies in live interactions – thus enabling visitors to experience sub-processes presented in a larger context.

Partnerships in the process chain accelerate growth in the industry
Among others, the cutting specialists Gunnar (Switzerland), the composites automation experts Airborne (Netherlands) and the gripping systems providers Schmalz (Germany) will join forces to create a combined production cell in a process-safe depiction of the entire value chain from roller materials to the finished layer structure of a composite component. In this setup, interlocking hardware components are fully connected with each other via software. “Cooperation among processors is getting closer and closer. These partnerships within the process chain are accelerating the growth of the composites industry; that’s what we want to show with the new ‘Process live’ format”, says Olaf Freier, event director of COMPOSITES EUROPE.

Lightweight Technologies Forum: Platform for multi-material lightweight construction
Besides the optimisation of the process chain, industry research today is heavily focused on the use of GFRP and CFRP in multi-material systems. The Lightweight Technologies Forum will once again demonstrate how composites play to their strengths alongside other materials in the material mix for hybrid structural components. A total of 16 exhibitors will present materials, tools and exhibits here – from fillers to bonding agents and presses for laminating different materials to semi-finished hybrid products.

In various presentations, experts will provide an overview of new products in manufacturing and joining technology as well as applications and lightweight engineering references from the automotive, aerospace and construction sectors. Support for the Lightweight Technologies Forum is provided by the German Federal Ministry for Economic Affairs and Energy.

From digitalisation to recycling: Know-how in the supporting programme
A presentation programme, themed tours and special areas complete the COMPOSITES EUROPE lineup. Manufacturing technology, recycling, digitalisation and thermoplastics will be central themes in the programme of the COMPOSITES Forum, which will also feature exhibitors presenting application examples from automotive engineering, aerospace, construction, mechanical engineering, wind energy and shipbuilding.

Themed guided tours, meanwhile, will lead visitors straight to the stands of selected exhibitors ready to explain the latest innovations in fibreglass, thermoplastics, automotive engineering, wind energy and construction.

Special areas and group stands to highlight new ideas
Hosting the special area “Industry meets Science”, the Institute of Plastics Processing (IKV), the leading European research institute for plastics technology based in Aachen, will showcase developments in process technology, design, quality assurance and repair.

The exhibitors at the “Bio-Based Composites Pavilion”, which will again be set up in cooperation with the nova-Institute, will reflect the development of the market for green composites. The focus will be on application options of wood-polymer composites (WPC), natural fibre composites (NFC), bio-based thermoplastics and thermosets for composites, and bio-based plastics.

Moreover, numerous young companies will thrill visitors with fresh ideas: the industry newcomers will present themselves at a group stand funded by the Federal Ministry for Economic Affairs and Energy (BMWi). They will cover a wide range of topics from semi-finished carbon-fibre products to metal foams to production lines for multi-material 3D fibre laminates.

Even the automotive experts of tomorrow will have their own forum at the trade fair: under the banner of “Formula Student”, students and apprentices will show visitors racecars they themselves have designed.

Kick-off event: 4^th International Composites Congress (ICC)
The International Composites Congress (ICC) will once again kick off COMPOSITES EUROPE. In a series of presentations starting the day before the trade fair (5 and 6 November), international experts at the event with the headline topic “Composites – On the Path to Becoming a Key Industry?” will speak about and discuss applications, materials, process technologies and market prospects.

• Manufacturers rely, among others, on German Machines

Tokyo (GTAI) - When it comes to functional textiles, Taiwan belongs to the international top league. To ensure that this remains the case, industry manufacturers invest in modern equipment and innovations.

Taiwan is an important global supplier of functional textiles. The sector wants to maintain this position and expand it as much as possible. They are therefore investing in new capacities, research and development. There are good sales opportunities for suppliers of pre-products and equipment.

The demand for functional textiles is increasing in the sports, leisure and footwear industries. In other sectors, such as the automotive and medical industries, building materials and agricultural aids, these are also increasingly being used. Functional textiles are usually not recognizable as Taiwan products. Nevertheless, some of them are very visible.

For example, at least 15 out of 32 teams at the 2018 FIFA World Cup wore clothing made with textiles of Taiwanese origin for internationally renowned brand names, according to the Taiwan Industrial Development Bureau (IDB). According to the Taiwan Footwear Manufacturers Association, Taiwanese manufacturers are responsible for approximately 80 percent of all sports shoes produced worldwide.

Textile manufacturers invest
Far Eastern New Century (FENC) is one of the largest textile manufacturers on the island. Its production capacity is nowadays mainly located abroad with productions in China, Japan, the USA and Vietnam. FENC is also expanding its capacity in Taiwan. Polyester spunbonded nonwovens have been produced for the Asian market in a joint venture with Freudenberg in Germany since 1987.

Freudenberg Far Eastern Spunweb has announced that it will set up a third production line for nonwovens at the Tayuan plant, thereby increasing the existing production of 20,000 tons by 11,000 tons per year. Construction of the new production facility, which is scheduled to start operations in 2020, has now begun. The latest automated production technology is to be used. According to the company, the investments amount will approximately be at USD 43 million.

Source: CommonWealth Magazine, Taiwan Stock Exchange

Germany remains an important equipment supplier
Taiwan's textile manufacturers import their equipment mainly from China, Japan and Germany, with some of the machines produced in China coming from companies with Japanese, German, Italian or Taiwanese parent companies. German deliveries declined by 13.7 percent to USD 71.1 compared to 2016 million in 2017. However, Taiwan's imports from Germany increased by 24.3 percent in the first six months of 2018, exceeding deliveries from Japan at USD 42.5 million.

The fact that the import of equipment remains at a high level has to do with the fact that companies in the textile industry in Taiwan are modernizing existing plants and converting them to Industry 4.0. In addition, the number of textile manufacturers in Taiwan has increased in recent years. According to statistics from the Taiwan Federation of Textiles, the number of companies rose from 3,143 to 3,214 between 2014 and 2017.

*) HS-Codes 8444-8453; without 8450
Source: Customs Statistics, Ministry of Finance

Core functions remain in Taiwan
By contrast, the production value of the textile sector fell slightly. In local currency terms, it fell in 2017 compared with 2016 by 1.7 percent. Converted to US dollars, the production value of textiles was USD 9 billion, according to the statistics from the Ministry of Economic Affairs. The production of synthetic fibers stagnated at just under USD 3 billion in 2017.

Taiwan is home to the headquarters of the often family-run textile companies. Purchasing and marketing decisions are mainly made here, and, last but not least, research and development are carried out here too. For example, several manufacturers are currently developing smart textiles with integrated temperature control, heart and location functions.

Foreign activities are diversified
The textile manufacturers are investing predominantly in new capacities outside Taiwan. For example, FENC 2018 is expanding its capacity for PET (polyethylene terephthalate) and terephthalic acid (PTA), which among others are required for the production of synthetic fibers. Together with an Indonesian and a Mexican partner, FENC acquires two new plants of a bankrupt US company in West Virginia and Texas. Among other things, this reduces the risk of possible trade restrictions and, conversely, increases the opportunity to benefit from free trade agreements.

Vietnam is also a focus of investment. Here, most Taiwanese textile companies are in the process of establishing or expanding new capacities. FENC, Formosa Taffeta, Eclat, Makalot and several others invested in the southeast Asian tigerland several years ago. By contrast, new investments in China have become rare, primarily due to rising wage costs.

• Clothing exports are declining 

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

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

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

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

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

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

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

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

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

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

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

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

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

• Hundreds of new projects planned, especially until 2020

Tokyo (GTAI) - More and more tourists are visiting Japan. The demand for accommodation is increasing accordingly, as is investment in hotel capacities. A number of industries is benefitting from this.
Japan has become a tourist magnet. Arrivals of foreign visitors have been increasing for several years. Tokyo will also attract many curious visitors as the venue for the Summer Olympics 2020. The Land of the Rising Sun is preparing for this. Investments in new accommodations have exploded and existing hotels are being modernized.
According to the trade magazine "HOTERES", which regularly reports on the development of the hotel and catering industry, up to 750 new hotels of various categories will be built between 2018 and 2022 according to currently known plans. This should increase the number of rooms by 109,000 units. This includes 600 hotels and more than 90,000 rooms until the Olympic Games 2020.

The Capital needs many new hotel rooms
Tokyo is certainly a focal point, but a number of hotels are also being built in Osaka and Kyoto. The three largest cities of the country form the so-called "golden route" of the tourist flow. They are also important economic centers where business people need accommodation. Not to forget the domestic tourism as a source of income too.
This results in a multitude kind of business opportunities. Apart from the construction industry, hotel operators are looking for new furnishings for hotel rooms and restaurants as well as for entertainment and activity areas. According to Japan Tourism Agency, about three-quarters of the travelers' accommodation used in Japan is western style, followed by about 19 percent in Japanese style.
According to a sector report by the real estate service provider CBRE, a total of around 80,000 new rooms will be built in the country's eight largest cities by the end of 2020. This is 30 percent more than at the end of 2016. Despite the boom in new construction, a shortage of hotel rooms is still expected for Tokyo in 2020.

Extensive investments to be expected
According to statistics from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), investment costs in hotel buildings have already increased eightfold in 2017 compared to 2012, and the newly built area has increased fivefold. The new building area for hotels reached around 3 million sqm in 2017. With investment costs of around USD 940 billion in 2017, this was more than 50 percent higher than in 2016.

Investments will continue to rise with the many hotel construction projects in the pipeline. Japanese hotel groups, such as Route Inn Hotels and APA Hotels & Resorts, are at the forefront as investors. In addition, Japanese property developers are diversifying into the hotel sector, as the office property portfolio is already showing signs of oversupply.
Another real estate developer, Sumitomo Fudosan, is planning two major hotel construction projects, both scheduled for completion in 2020. These include a hotel at Haneda Airport with approximately 1,700 rooms and a hotel in Tokyo's Ariake area with 800 rooms. The company has not disclosed the investment costs for this.

Source: HOTERES (as of June, 1 2018)

International chains want to establish themselves more strongly
In addition, some international operators are also interested in hotel openings in Japan. These include, for example, the Best Western Hotel Group. According to an interview in the Nikkei business newspaper of April 30, 2018, it plans to increase its inventory in Japan from 13 hotels at present to around 30 by 2020. The American hotel chain Hyatt is planning to expand its portfolio to ten locations in Japan by 2020.

Marriott International is also already on the market and plans to open its first W-brand hotel in Japan in 2021. This luxury hotel with 337 rooms is to be built by the Japanese construction company Sekisui House. With a luxury hotel of 98 rooms Bulgari wants to expand its presence in Tokyo in 2022. This will be located on the upper floors of a new mixed-use building planned by Mitsui Fudosan in the Yaesu district.

While the international hotel operators focus more on luxury, Japanese hotel investments are more focused on facilities with limited services, such as business hotels. However, in the view of the large flow of visitors this is likely to change somewhat. The experience value and the length of stay are to be increased in order to increase the occupancy and the yield per overnight stay.

Foreign tourists are important guests
After all, the fastest-growing category of guests are foreign tourists, rather than business travelers or domestic tourists. The government expects about 40 million foreign tourists to visit the country in 2020. According to an estimation of the governor the capital Tokyo will be visited by 25 million tourists alone.

At the end of 2017, the Japan National Tourist Organization registered 28.7 million foreign visitors. Over 7 million tourists each from China and South Korea as well as almost 4.6 million tourists from Taiwan came to Japan. With 13.1 million foreign visitors, less than half of the international tourists visited Tokyo exclusively.

• E-commerce to grow by 17 percent in 2018

Berlin (GTAI) - E-commerce in the Netherlands is expected to grow in 2018. The most popular products are media and entertainment. Strong growth was recorded in the food trade.
The Dutch online food trade is gaining momentum, and high growth rates are expected for 2018. Customers also look beyond the borders and shop abroad. However, the online shops with the highest turnover are in Dutch hands.

Dutch people are very open to new technologies. In 2018, around 97 percent of the population (16.8 million people) will have an Internet connection. On average, the 13.9 million online shoppers spend EUR 1,242 a year. In 2018, e-commerce revenue will grow by around 17 percent to EUR 26.3 billion. This is predicted by an investigation of the organization Thuiswinkel. Already in the first quarter of 2018, EUR 6.3 billion were spent online, an increase of 13 percent compared to the same quarter of the previous year. The last quarter of a year with the holidays (Christmas, Santa Claus and Black Friday), in which 30 percent of the annual sales are taken place, is always very promising.

According to the Portal Commercenews online trading amounted to EUR 22.5 billion in 2017, up 13 percent from 2016, accounting for 9.7 percent of the total retail sales, which grew by only 4.2 percent. The e-commerce boom was followed by new company foundations: around 9,200 new webshops were established, but 5,400 were closed too. Most of these webshops also have foreign markets in their view.

Laptops are most commonly used for online purchases, but mobile devices are becoming increasingly popular. 2017 was marked by growing mobile commerce (m-commerce), a further increase is expected in 2018. After all, the country has more mobile devices than inhabitants (110 percent).

Not only the web shops benefit from the booming e-commerce. The Dutch Post is also pleased about the growth. Their e-commerce revenue is estimated at 42 percent of total revenue in 2018 (2017: 34 percent).

Food is bought more frequently online
Demand is focused on the media and entertainment sectors, where some 8.5 million purchases were made in the first three months of 2018. Food and near-food products (goods that are not food but are also available in supermarkets) were in demand in the first quarter of 2018, 42 percent more than in the same period of last year. Although their share of total purchases is still low, experts are already forecasting 3.7 percent in 2018 after 2.9 percent in 2017, when the sales exceeded EUR 1 billion for the first time. The purchases were mainly made at the large Albert Heijn and Jumbo supermarkets. The third important market Picnic, which only operates online, wants to expand into Germany and has already started a pilot project in the Düsseldorf area.

The Albert Heijn supermarket is about to make it even easier for its customers, to receive goods even when they are not at home. It is testing a so-called intelligent key (smart door lock) from Nuki. Customers can use their mobile phones to control who enters the apartment in their absence. By this this way he can let the delivery service in after his call..

Buyers are usually satisfied with their online purchases. Nevertheless, they fear that the goods are not clearly enough illustrated and described, as well as difficulties in returning them and their costs. Web shops can score points if they offer free shipping and fair return options.

The thrifty Dutch also compare when buying on the Internet. According to Ecommerce Foundation, 60 percent look around at multiple merchants before deciding, 53 percent use websites that compare prices or products, half consider other users' reviews on the web and only 8 percent buy spontaneously based on advertising or social media ads (multiple answers possible).

Dutch spend more and more abroad
Around 3.8 million Dutch people bought from foreign webshops in 2017, spending rose by 28 percent compared to the previous year. In 2017, they spent around EUR 1.5 billion on webshops in the European Union. Also Chinese sites with favorable offers are popular. Around EUR 248 million were invested in shops such as Aliexpress, Banggood, Dealextreme, Geekbuying, Gearbest, MiniIn TheBox. The most popular countries were China, the United Kingdom, Germany and the USA.

The most popular payment provider on the Internet is iDEAL. Around 95 percent of customers use the Dutch online payment system, in which several local banks are involved. Its market share is an impressive 57 percent. In 2017, the number of transactions via iDEAL grew by almost 34 percent. Foreign webshops have also joined the system: About one third of the payments went to them.

Source: Ecommerce Foundation

Many Dutch retailers among top online shops
Many of the most successful online retailers are Dutch companies. Bol, the local online seller with the highest turnover, was able to grow because large e-traders such as eBay or Amazon were not yet present in the Netherlands. Bol developed from a project of the German Bertelsmann Group with a focus on books and DVDs, but is now in Dutch hands and has considerably expanded its offering to other product groups. In 2012 Bol was acquired by the Ahold Group.

The Rotterdam-based company Coolblue launched an online store in 2000. Subsequently, several web shops were opened, each focusing on one product category. A stationary business was added in 2005. Coolblue today sells mainly consumer electronics, white goods and fitness equipment and is the second largest online retailer. The company is known for its excellent customer service.

Wehkamp began as a mail order company in 1952 and sold all articles via its Internet platform before 2000. The Internet pioneer has developed slowly, but has recently invested heavily in order to survive in the Dutch top league.

Like eBay in Germany, Marktplaats.nl in the Netherlands is the marketplace for second-hand goods. Google Shopping achieved strong growth in 2017. The portal is also expected to become the most important comparison portal in the Netherlands in a short time.