Textination Newsline

As disclosed in an agreement signed on 18 July 2018 by the organisers of Texcare Asia and the China Laundry Expo, the two trade fairs will merge into a single show in a win-win arrangement to integrate industry resources.
 
The new joint-venture fair will be the largest annual industry event covering the textile care and laundry chain in Asia. The first edition will take place in September 2019 at the Shanghai New International Expo Centre and will be jointly organised by Messe Frankfurt (Shanghai) Co Ltd, Unifair Exhibition Service Co Ltd, the China Laundry Association, and the China Light Machinery Association.  
 
Mr Wolfgang Marzin, President and CEO of Messe Frankfurt Group, said: “The merger is fantastic news for the textile care industry in Asia as a whole and also for the Messe Frankfurt Group. By integrating Texcare Asia’s extensive resources with those of the China Laundry Expo, we will provide a larger and more complete platform for the industry to converge upon. The new show will provide coverage across the entire supply chain, including dry cleaning, dyeing, detergent and disinfecting chemicals, leather care, textile rental, digital solutions and much more.”
 
Ms Xiuping Han, General Manager of China Unifair Exhibition Services Co Ltd added: “The laundry industry in China faces numerous challenges, such as the tightening of sewage treatment and disposal regulations, while opportunities are also arising in the form of increased demand for energy saving technologies. By merging the China Laundry Expo and Texcare Asia under a single banner, we will provide an ideal platform to facilitate industry development and address these challenges and opportunities.”   
 
The annual China Laundry Expo was founded in 2000 and is held on a rotating basis between Beijing and Shanghai. Organised by the China Laundry Association and Unifair Exhibition Services Co Ltd, the show receives significant government and commercial sector backing. The 19th edition is held at the Shanghai New International Expo Centre over the next three days and will play host to more than 220 exhibitors representing around 500 brands from over 10 countries and regions. The fair is also expecting to welcome over 20,000 trade and industry visitors to an impressive 23,000 sqm of exhibition space.   

Key product categories of the China Laundry Expo include laundry equipment, accessories, chemicals, consumables, leather care products, energy-saving and environmental protection equipment, informationbased intelligent products and solutions, and much more. Not only do these product categories cater to the purchasing demands of visitors around the globe, but the strong variety also serves to attract more suppliers and industry players.
 
With a similar focus to the China Laundry Expo, Texcare Asia made its debut in Singapore in 1998 and was introduced to Hong Kong in 2002. The fair then move to China in 2005 in Beijing and has been located in Shanghai since 2013. With the strong international network and industry support from the mother fair, Texcare International, the China event is now recognised as Asia’s biggest laundry and dry-cleaning show. It has served as a biennial meeting point for textile care manufacturers, suppliers and professionals to network, trade, conduct business, and catch up with industry developments.   
 
The fair also holds a unique position as a platform for providers of textile rental services, training services for institutions, and machinery for the cleaning of carpets, floor coverings, upholstery and buildings. By combining product groups from the China Laundry Expo with those of Texcare Asia, the merged platform promises to deliver a comprehensive value added experience for its customers and visitors.  
 
The expanded product portfolio and merging of resources mean that the newly merged show is predicted to attract an impressive 300 exhibitors and 25,000 industry visitors across 30,000 sqm of floor space when it opens its doors in September 2019.   
 
For further details, please visit www.texcare-asia.com, or contact texcareasia@china.messefrankfurt.com.

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

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

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

Development of the franchise economy in Italy

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

   Source: Rapporto Assofranchising 2018

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

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

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

Shopping centers under construction in Italy

Designation	Investment (Mio. Euro)	Area (1,000 sqm)	Completion	Remarks
Westfield, Milan	1,400	60	2020	http://www.westfieldcorp.com
Maximo, Rome	300	61	2019	Cushman & Wakefield
Emilia Shopping District, Parma	200	74	2019	http://www.sonaesierra.com
Maximall Pompeii, Napoli	150	200	2019	http://www.maximall.it/pompeii
Falcon Malls Cascina Merlata, Milan	n.a.	65	2021	http://falconmalls.it
Falcon Malls Concordia, Milan	n.a.	131	2021	http://falconmalls.it
Waltherpark Shopping - Bozen	23	k.A.	2021	https://waltherpark.com

    Source: Research of Germany Trade & Invest

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

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

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

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

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

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

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

For most people, blockchain technology is still quite an abstract concept. We can think of it as some kind of virtual database that saves all transactions in so-called blocks. This creates transaction or block chains, which are perpetuated with every subsequent transaction. Through the high degree of transparency, the system can do without a central controlling entity, as it is permanently controlled by many. The blockchain can be changed afterwards. So far, this technology has been used mainly to materialize cryptocurrencies, but it increasingly paves its way also through the fashion industry. The following section outlines a few blockchain concepts from the fashion industry:
 
Blockchain makes fashion forgery-proof
The Berlin-based startup business Lukso has created an opportunity to take action against trademark counterfeiting and forgeries by using blockchain. A chip replaces traditional QR codes, which can be copied easily. The data stored on the chip are locked in and thus cannot be edited. Thus, the authenticity of the garment can be verified. The founder of Lukso, Fabian Vogelsteller, used his experience he had gained as a developer for the Ethereum cryptocurrency in order to develop this chip.
„The Fashion industry is the perfect industry for a blockchain-network, since it is forward thinking and eager to try out new things. Especially the interaction between users is an important factor here. Also forgery-proof is still an unsolved problem,“ explains the founder of LUKSO, Fabian Vogelsteller.    

The data stored on the chip can be analysed, but not read. Thus, the information about the products is disclosed in the blockchain in a transparent way for the customers and retailers. However, by not disclosing the system, the information can neither be changed nor copied, making the history of the garment traceable at any time. This technology provides protection against counterfei¬ting in particular with regard to brand and luxury goods. The system is also suitable for second-hand shops selling high-quality products, as the buyers are given a guarantee that they have bought a genuine product.

…and its origin transparent
SourceMap is another development using blockchain for the fashion sector. SourceMap is a kind of social network based on blockchain technology developed by the software company Provenance.
 
It allows everyone from the farmer to the textile mill to the cut-and-sew factory to communicate directly with the brand that buys from them, and it is using Provenance’s blockchain technology to verify those communications. They envision a world in which every fashion product has traceable, transparent origins. The developers promise that for example organic and Fair Trade certifications cannot be faked. The designer Martine Jarlgaard from London produced smart labels from Provenance using blockchain technology already in 2017, allowing the customers to scan these labels to track every step in the production.
 
Also, the fashion label Babyghost has launched a kind of social network. With specific chips woven into the garments, the customers are able to track the entire history of the clothes using their smartphone. The blockchain technology behind that even allows the consumers to add their own photos, videos and messages. This way, each garment gets its own story that is accessible at any time.

Berlin-based business wants to revolutionize online shopping experiences with blockchain
Wysker is an app developed by Tobias Haag and his team from Berlin to revolutionize online fashion shopping. With the blockchain system, users can decide on whether and what data they want to disclose to the retailers. Those who provide data will be rewarded with discounts. The Wysker app itself shows only photos, prices and the providers of the products. Those who find what they are looking for will be forwarded to the respective business partner. The developers expect that the bonus model will become a small revolution. Every app user is given bonus points, so-called Wys tokens. The more intensive the app is used, the more tokens are given. The tokens can be redeemed with the participating retailers. They are based on blockchain technology and connected to the Ethereum cryptocurrency. The value of the bonus points increases with the popularity of the app, as the number of tokens is limited. Thus, increased demand leads automatically to a higher value. The app is still in the initial stage. However, many users have already been generated during the first few months.
 
The fashion industry shows once again its innovative strength and uses blockchain to embark on new paths, with blockchain technology being a means to the end. It creates transparency that can reward the users and bring new shopping experiences.

Further information:
https://www.lukso.io/ 
https://www.wystoken.org/ 
http://martinejarlgaard.com/Home 
https://www.mybabyghost.com/ 
http://www.sourcemap.com/ 

• The important trade fair platform for entry into the Chinese consumer market with China's most influential consumer group for the fashion and beauty sector with the strongest growth in consumption - the millennials - as target group
• The international fashion showcase for decision makers with an overview of na-tional and international fashion brands
• Strategic market development through comprehensive visitor marketing for inter-national brands at CHIC

 
CHIC, China International Fashion Fair presents around 800 exhibitors in an exhibition space of approx. 50,000 sqm (CHIC in March 100,000 sqm) in two halls from 27 to 29 September 2018 at the National Exhibition & Convention Center in Shanghai.
The current conditions for international fashion companies in the Chinese market offer significant improvements for international brands. Import tariffs will be lowered from 15.9% to 7.1% to further promote the import and upgrade of the industry.  

The McKinsey study "THE `Chinese consumer´ no longer exists” defines Chinese consumers no longer as interested only in low prices, but as selective, healthconscious with diverse shopping hab-its and preferences. The fashion awareness changes to an individual sense of style, influenced by international and national trends. China's millennials are the WORLD'S most influential consumer group, with a 16% share of the population, driving consumption growth in the Chinese market and contributing more than 20% from today until 2030.  
 
According to the edition's motto "New Makers", Asia's leading fashion fair is picking up on the latest changes in the Chinese fashion market and providing the essential tools for the Chinese market. The new, young design of the fair, which was launched in March this year at CHIC, is being ex-panded. The individual sections of CHIC present the latest trends in the Chinese and international fashion market. CHIC connects and brokers partnerships and launches the new generation gar-ment industry, which builds on high-tech strategies and interlinks industrial production with modern information and communication technologies, relying on intelligent, digitally networked systems in self-organized production.

The individual fashion areas of CHIC  
FASHION JOURNEY puts the focus on interna-tional exhibitors. In addition to the large Italian pavilion, the French pavilion "Paris Forever" and the Korean show-inshow "Preview in China", in-dividual participants from Poland, the UK, France, Italy, Spain, Japan and the USA use CHIC as a bridge in the Chinese market. The next German group participation is planned for March 2019, whereby Germany will also be rep-resented with individual brands such as ESISTO in the area NEW LOOK.

IMPULSES, CHIC's designer section, features emerging designer brands such as Junne, Hua Mu Shen, King Ping, Anjaylia, Mao Mart homme, Tuffcan, etc.

The SUSTAINABILITY ZONE, first showcased at CHIC in the fall of 2017, is receiving even greater emphasis due to the increasing environmental and health awareness of Chinese consum-ers, featuring sustainable supply chain solutions, sustainable innovation and sustainable fashion collections. Programs such as Chemical Stewardship 2020, Carbon Stewardship 2020, Water Stewardship 2020 and Circular Stewardship 2020 are presented. The womenswear section NEW LOOK of CHIC presents next to the leading Chinese brands like AVRALA, and CMH also international brands like Saint James from France, ESISTO from Ger-many, Trenz Eight from Canada or PN JONE, USA.

Beside the suppliers of classic menswear, URBAN VIEW, the menswear section, also includes casualwear brands like NRDMA and SUPIN as well as bespoke companies like H. Pin& Tack, Jin Yuan Yang, Fa Lan Qian Mu, Long Sheng and DANDINGHE.
CHIC YOUNG BLOOD shows young lifestyle brands, KID'S PARADISE offers e.g the largest fashion group in China for children's fashion XTEP KIDS.

SECRET STARS (fashion accessories), SHANGHAI BAG (bags), HERITAGE (leather & fur), SUPERIOR FACTORY (ODM) and FUTURE LINK (services) complete the fashion offer at CHIC. FUTURE LINK gathers fashion service providers for among others supply chain solutions, smart retail and smart production, RFID, laser technology and data utilization.

Visitor management
On the rise in China's retail scene, multi brand and custom stores are the fastest growing offline sector. The number has increased significantly in the last five years from less than 100 to more than 5,000 stores. Exclusive shopping experiences and an individual offer are important. Custom-ers value a wide range of products: a mix of international and national exclusive brands is the most common concept.

The high investments of the CHIC organizers in the visi-tor management for the fair pay off: CHIC has a per-sonalized trade visitor database of over 200,000 con-tacts, which are used intensively for the visitor marketing in the run-up to the fair for a commercial matching for the exhibitors. At the fair, VIP match making activities will take place especially for selected international brands, that will have the opportunity to present them-selves there and make the relevant contacts in the Chi-nese trade. Meetings are organized among others with multi brand stores and buyers such as The Fashion Door, Dong Liang, Jing Dong, VIP Shop and department stores, and retailers such as Carrefour, Amazon, De-cathlon, Wang Fujing, etc. An important tool for the CHIC visitor marketing is social media; for this special programs are run, in which individual brands are pre-sented to prospective visitors.    

CHIC is visited by representatives of all distribution channels for distribution in the Chinese market, at the last event in autumn 2017 more than 65,722 visitors from all over China and other nations were registered at the CHIC, with a significant increase in multi brand stores.
 
Seminars and shows
The future of fashion business in China will be discussed in a panel of experts as part of CHIC TALKS. Furthermore, a trend seminar from WGSN for FW 2019 and a workshop on bag and shoe production from the Moda Pelle Academy are planned.

CHIC shows provide an overview of selected international brands.

CHIC is organized by Beijing Fashion Expo. Co. ltd. and China World Exhibitions, supported by China National Garment Association, The Sub-Council of Textile Industry (CCPIT) and China World Trade Center.

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

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

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

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

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

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

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

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

• FOCUS ON DIGITIZATION AND SUSTAINABILITY

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

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

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

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

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

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

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

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

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

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

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

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

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

• Sudanese and Chinese investors want to secure raw material supplies

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

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

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

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

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

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

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

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

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

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

Ethiopian exports of textiles, clothing and leather products
(including footwear; in US$ millions)

SITC-Commodity Group	2014	2015	2016
61 Leather and leather goods	97.51	98.20	78.63
65 Yarn, fabrics, finished textile products and related articles	39.34	39.12	29.61
84 Clothing and apparel accessories	55.53	77.94	68.25
85 Shoes	33.88	37.69	43.80
Total	226,26	252,95	220,2

Source: Comtrade

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

Ethiopian imports of machinery, equipment and parts for the textile and leather industries
(SITC 724; in USD millions)

Supplying Country	2014	2015	2016
Total	131.30	170.51	111.10
.. PR China	43.87	42.40	62.07
..Italy	6.38	11.75	11.72
..Japan	4.40	10.11	6.89
..Turkey	4.86	19.14	4.92
..Other Asian countries, not specified	1.85	1.87	4.11
..India	6.07	6.49	3.06
..Germany	9.22	9.08	2.44

Source: Comtrade

 

• Exports increase
• Domestic demand rises

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

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

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

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

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

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

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

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

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

Turnover of Polish furniture manufacturers (in EUR billion)

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

1) Estimation; 2) Forecast

Source: B+R Studio

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

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

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

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

Furniture sales in Poland (in EUR billion)

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

1) Estimation; 2) Forecast

Source: B+R Studio

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

Contact addresses:

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

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

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

 
  

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

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

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

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

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

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

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

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

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

 

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

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

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

Exhibitor opinions:

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

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

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

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

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

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

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

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

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

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