Textination Newsline

More and more retail stores are empty - even in good business locations like Pfeilstraße, one of the top modem fashion lines of Cologne. Glued blades are not a solution for real estate owner Helga Festi. She put on interim usage until the appropriate tenant is found. With success: the Popup-studio of the artist Barbara Ruf brought a win-win situation for all.

The displacement competition and the struggle between in-house trade and the growing power of the online platforms become visible to all: there are the vacancies in the business streets, which look unattractive. Not only small towns and affiliates are affected, but also the shopping streets in the big cities. In Pfeilstraße, one of the top addresses in Cologne for upscale needs, currently there are four business locations empty or are being renovated.

For Helga Festi no nice view. The full-blooded fashion retailer passionately led her fashion shop Lips in her own property and retired in 2014. The successful Lips concept was leased. But the continuation with another handwriting did not work. The shop floor was empty in spring 2016, the search for a suitable tenant takes time. Reason enough for Helga Festi to look for another intermediate use. There a coincident happened and brought a chance: the Cologne artist Barbara Ruf walked by her shop with a painting under her arm. From a conversation a plan developed: Already two weeks later the painter came with an easel and 100 paintings and moved for two months in the rooms of the Pfeilstraßen 41. Just in time for the autumn street festival, Barbara Ruf presented herself in her pop-up studio with a retrospective of her art. Instead of an ugly vacancy a win-win situation happened for all.

The popup studio represents a whole new dimension for Barbara Ruf. "It is inspiration and a new territory at the same time," the artist rejoices. "I paint daily and I am inspired by the wonderful ambience and the passing spectators. It's like a shop window."

The time in the temporarily rented studio the painter knew how to use, she presented herself daily as a gallery, arranged in October a vernissage with the coherent title Intermezzo and celebrated a live art performance. For two hours the guests watched the picturesque history of the painting `Deutzer Hafen'. It is the fifth from the new picture cycle with photos of the recently deceased Cologne photographer Hans-Peter Fuhrmann, all of which were created in the pop-studio.

Real estate owners should be mobile

Also after the artistic in between use Helga Festi is still adventurous. "I always had a good partnership with my neighbors of Pfeilstraße and would like to keep a certain standard. The intermediate use is a good tool for testing for both sides – smart property owners should be more flexible. "At the beginning of November the streetwear label DZZD celebrated as a pop-up store opening and tested the location in Cologne. If the start is good, the long-term rental agreement will be signed. An appointment for next year is already envisaged.

Further information about Barbara Ruf at www.barbara-ruf.de

Flatwoven or tapestry-woven carpets and textiles have been made by generations of weavers in all corners of the world. The technique lies at the heart of the history of textile weaving, but kilims and tapestries remain as relevant and important in the world of contemporary design and interiors as they have ever been.
 
For some people, the mention of a flatwoven rug instantly suggests an Anatolian kilim, for others it is a tightly woven Caucasian sumakh or a double-sided striped jajim, an Iranian eating cloth called a sofreh, a Navajo rug, a French Aubusson carpet or a Moroccan kilim. The visual language and identities of the flatweave are even more diverse than those of pile carpets.

To comprehend the relevance of flatwoven rugs in today's market, you only have to look at some of the previous winners of the Carpet Design Awards and the range of beautiful designs for contemporary flatweaves offered at Domotex and beyond. While flatweaves traditionally had a utilitarian purpose such as to decorate the home, to serve as various covers, as mule saddles or to wrap food, today they are a popular floorcovering choice the world over. The method with which they are woven lends itself to creating flat planes of colour and geometric patterns.
These traditional tribal designs perfectly suit our contemporary design sensibilities currently focused on the minimalist aesthetic. The pure blocks of colour, simple stripes or checks that flatweaves offer are ideal for modern interior spaces. In addition flatweaves are often offered at lower price points than pile carpets.

Over the last five years the design industry has been increasingly focused on the concept of craft, makers, handmade goods, and with designs that are easily recognised as handwoven. Flatweaves fit clearly into this trend. Their flat surfaces are a perfect way to show off excellent quality wool, accomplished weaving and brilliant colour, all of which can be the deciding factor when choosing a rug. There is something very open and honest about the design of a kilim, a characteristic much appreciated by design savvy buyers who are able to recognise the integral, genuine texture that the flatwoven surface offers.

Some examples of highly desirable and popular kilims on the market today include Hamburg-based Naziri's super chic Iranian kilims that have won numerous Carpet Design Awards, four of them over the last two years Their simple tribal patterns have a traditional soul but a contemporary perspective.

Werner Webber's Mazandaran kilims from Northwest Iran are eye-wateringly beautiful in design and intense in colour, akin to works of modern art. Other brands producing striking flatweave designs include Zollanvari, Edelgrund and Rug & Kilim, a New York-based brand whose Swedish folk art inspired flatweave Marta Stripe won Best Traditional Design at the CDA 2016.
 
Flatweaves have been well represented during the eleven years of the Carpet Design Awards and many have gone on to win a coveted prize, proof that they are an important element within the language of contemporary carpets. For the 2017 edition of the CDA, flatwoven rugs have been granted their own 'best of type' category. It is clear that it will be a popular and highly competitive part of the awards.

• Visual marketing increases in importance for offline retail in view of e-Commerce competitors
• Display mannequins are in focus for this
• Emotionalising is decisive
• Individuality and flexibility are also demanded
• There is a shift towards semi-abstract mannequins with regional and genre differences
• Proportion of customised mannequins is rising
• Sustainability remains an issue

EuroShop is one of those trade fairs always teeming with visual highlights. Guaranteed to present a special treat here is, of course, the Visual Merchandising Hall, the exhibition place of display mannequins and store window decorations. March 2017 will see Hall 11 of Düsseldorf Exhibition Centre (instead of Hall 4 previously), become a POS experience guaranteed to attract plenty of attention. After all, in view of the e-Commerce competition, visual marketing and the resulting emotional, personalised appearance will become more and more important for bricks-and-mortar retailers. “Consumers’ emotional needs will become the overriding theme for EuroShop,” says Andreas Gesswein, CEO of Genesis Display from Auetal, with conviction.

Display mannequins hold special emotionalising potential. It is not by chance that Düsseldorf visual artist Domagoj Mrsic once presented them as “super heroes” in one of his stagings - as Superman and Wonder Woman, Batman and Catwoman, Spiderman and Spiderwoman. Provided the displays are done well mannequins are in a way real heroes. With their appearance, their posture, gestures and mimics they can really breathe life into shop windows and in-store decorations, serve as sales-promoting tools or arouse empathy, interest and curiosity. And if they are not just headless and very abstract they even give retail stores and brands a profile and signature style. With the power of their poses they send out a clear signal as to which target group is addressed, which degree of fashion and price range is served. Moreover, when arranged in groups, they can serve as story-tellers for passers-by. Unforgettable was the “Ugly’s” line of mannequins by supplier Hans Boodt, which mimicked “real-life” men rather than V-shaped boys with six packs. It included both a long, tall one and a short, fat one dressed in passion-killing underwear. “The new generation of mannequins will say more about the brand. They will participate in communicating more about each brand’s essential values and set them apart from the competition”, says Jean-Marc Mesguich, CEO of Window France headquartered in Carros.

The portfolio offered by the display mannequin industry is wide and varied: in addition to top-model lookalikes it features plus-size beauties, Europeans, Africans and Asians, the afore-mentioned super heroes and funny common people. Kissing couples feature alongside sumo wrestlers. In line with the motto "don't take yourself too seriously", vendors have long also included dogs and cats; and even chameleons since many mannequins prove to be true artists of disguise. “Cameleon”, for example, is a patented concept of Window France: Hundreds of eyes and lips are available to chose from, eye-lashes can be glued on, wigs attached/detached, different make-ups applied or the whole face can be replaced with the help of magnets – in brief, all it takes to ensure a constantly refreshed POS appearance. Add to this what is by now a huge range of colours and materials: surfaces from velvet and rubber are just as common these days as are metallic varnishes or concrete and copper coatings.     

In view of what has been presented over the past few years you may wonder what might come next. Although the majority of fashion retailers and brands have not nearly exploited the full potential already available today. In the past few years abstract mannequins were in highest demand. “They are fit for many applications and easy to handle, since no wigs or make-up have to be styled,” says Andreas Gesswein (Genesis Display) accounting for reasons and adds: “But they are also easier to copy and therefore available in every price segment.” In practice, efficiency sometimes clearly “overrides” emotion. “But when stores do not stand out with the image they project they do not prompt shoppers to enter either,” says Jean-Marc Mesguich (Window France). And for EuroShop 2017 Window France will definitely have far more in store than “exciting variations of the abstract theme”.

Faces are back again

The fact is: just like the fashion they are wearing, display mannequins follow trends. Triggered by a desire to cut a sharper profile and stronger expression, industry insiders have seen a trend towards semi-abstract mannequins. “A face is at least alluded to. Mannequins are less neutral and it becomes visible: Retailers want to make a statement again showing their true colours. There is a trend towards addressing target groups with a more high-profile message,” explains Cornel Klugmann, Country Manager for the D-A-CH region at Hans Boodt from the Dutch city of Zwijndrecht. Monica Ceruti, in charge of PR & Communication at Almax from Mariano Comense/Italy, agrees: “It is true that demand for abstract mannequins continues to be high but there is a clear trend towards more realistic facial characteristics. This includes such details as the application of eyelashes or wigs. And dynamic postures are also getting more popular again.”

Andreas Gesswein (Genesis Display) remarks: “Especially in the luxury segment we are registering stronger demand for more realistic mannequins with faces and emotional facial expressions that brands are looking for to stand out from the rest.” A trend that Jean-Marc Mesguich (Window France) confirms: “The Haute Couture brands have already abandoned the egghead in exchange for something that will have more impact and - more importantly - get people talking about their brand.” He adds: “The growing trend of viewing fashion and fashion windows online is pushing brands to make more attractive windows and to change their displays on a more regular basis.”

The days of faceless “eggheads” seem to be over. And above and beyond this? “The look and feel is becoming more and more high-end. White and grey are replacing darker shades, glossy replaces matt and aspirational looks with more charisma are more in demand,” says Cornel Klugmann (Hans Boodt). Monica Ceruti (Almax) sees great potential in “handcrafted looks”. This means torsos with and without arms with different materials for the individual components – pedestal, torso and head – and wood as well as metallic surfaces all set the tone here. Sabrina Ciofi from Design Office La Rosa from Palazzolo Milanese/Italy summarises the “principal themes of tomorrow” as follows: “Customers demand high product quality, the right price, maximum after-sales service and high product flexibility and/or diversity.” This statement should be valid across national borders. Otherwise she says despite all the globalisation: “There are as many trends as there are markets.” Monica Ceruti (Almax) concretized: “In Europe and the USA the differences are not fundamental. In the Middle East, however, mannequins without realistic traits continue to be in demand for religious and cultural reasons. This applies especially to female display mannequins.”

Customised becomes cheaper

Producers report that the percentage of customised mannequins is generally rising. These display mannequins are individually and exclusively manufactured to customers’ specifications. In this way retail companies and brands can stand out from their competitors and consistently leverage their CI. At Hans Boodt, for example, the proportion of customised mannequins is now said to be as high as 75%. And thanks to cost-cutting process optimisation it is expected to rise even further. Like Window France these Dutch vendors have now discovered 3D printing which can serve their purposes and their buyers. While in the past prototypes used to be elaborately modelled by sculptors in clay, these can now be “printed” in a time and cost-saving manner. “On top of this, the process is even more true to life and detailed,” delights Cornel Klugmann (Hans Boodt). Graphic designers create the desired mannequins with CAD systems where all the details can be freely configured. Then the files are uploaded to the printer that puts them into practice 1:1. “We can respond to trends so much faster and at the end of the day also design more new collections each year”, Klugmann explains further benefits. Jean-Marc Mesguich (Window France) adds: “Thanks to 3D we can create mannequins that really correspond to each and every brand and every brand’s precise image, to be perfectly in-sync with their public. This is an important evolution in the role that mannequins play.”

Alongside process optimisation sustainability remains important for the sector. “The fashion sector is now highly aware of this topic and attaches importance to its suppliers also complying with the relevant criteria,” explains Monica Ceruti (Almax).   The other market players polled also share this view. For La Rosa, whose mannequins are exclusively designed and manufactured in Italy, sustainability is an integral part of quality. By their own accounts, the Italians have analysed the whole life cycle of their mannequins with a view to minimising their ecological footprint. Almost half of the polystyrene used, they say, is recycled which saves substantial amounts of crude oil and carbon dioxide emissions. On top of this, La Rosa takes back its products after use and re-introduces them into the material cycle. Production operations work with a carbon-capture system, the cooling towers use process water, energy is generated by the company’s own PV park. Andreas Gesswein (Genesis Display) also underscores the importance of this topic: “Our customers focus on trust, honesty and partnership-based cooperation. And this includes providing evidence of sustainability rather than copying other peoples’ marketing straplines. In cooperation with Dupont Tate and Lyle BioProducts we have increased the percentage of biomass in our mannequins even further over the past few years, just the same way we constantly check and optimise our materials, packaging and transport routes for sustainability.” Hans Boodt is also opting for an interesting avenue. The company currently studies whether ocean plastics could be used as a raw material for production.

EuroShop as an opportunity of the future

The display mannequin market is and will be in motion – both on the supply and demand sides. “There are customers who buy their mannequins cheaply online and others who are interested in top quality, professional consulting and holistic visual-merchandising concepts,” explain Andreas Gesswein (Genesis Display) and Cornel Klugmann (Hans Boodt). There should be no doubt about who they expect to be more successful. Andreas Gesswein: “The challenges are enormous. 2016 has been especially challenging for fashion retailers, also in Asia and the USA. Companies are faced with changed market and shopper behaviours. EuroShop 2017 will therefore probably be one of the most important ones since the fair's inception.” Jean-Marc Mesguich emphasizes: “I think that it is essential to be present at EuroShop. For both suppliers and clients. It is a sure way of exchanging views and helps pave the way forward for both parties. This year we are at a turning point in the market, so it will be even more useful for everyone.” Cornel Klugmann also recommends retail representatives to visit the trade fair: “Our innovative power is the opportunity for the future.”
 
EuroShop 2017 will be open to visitors daily from Sunday 5 March 2017 to Thursday 9 March 2015, 10:00 am to 6:00 pm. A day ticket is EUR 70 (EUR 50 for an e-ticket, purchased online in advance), 2-day ticket EUR 90 (e-ticket: EUR 70) and a 4-day ticket EUR 150 (e-ticket: EUR 130). Entrance tickets include free trips to and from EuroShop on all trains, buses and trams within the networks of the VRR transport authority (Verkehrsverbund-Rhein-Ruhr).

Large Companies focus on abroad and the Digitization 

Tokyo (GTAI) - Japan's machinery and facility manufacturers expect increasing orders again. An increase is expected, especially for the international business. They saw the slight financial doldrums of 2015 before. However, there were exceptions - for example at the robot technology. The big companies have a strong interest in the subject of Industry 4.0. Here are cooperation opportunities for German companies, also on third markets.

The Asian region remains high on the Agenda

Japan's economy is not yet in full swing. A new in August released stimulus package of the government is to ensure the recovery. In total Yen 28.1 billion (EUR 246.49 billion, in early September 2016: 1 Euro = Yen 114) amounts to the "package” which is funded to about 25% directly from the state treasury. The investment plans of the manufacturing industry are looking promising in the fiscal year 2016 (4.1 to 3.31.). They could rise by 14.5% over the previous year, according to the result of a survey of the Development Bank of Japan (DBJ) in July 2016.

This is confirmed by a survey of the business newspaper Nikkei with 1,140 participating companies. In the fiscal year 2016 they want to investment a volume of Yen 25.28 billion. This would be an increase over the investments made in the fiscal year of 2015 of 8.3%. If the expansion plans will actually be implemented, it would be the seventh consecutive increase year. Manufacturers of electronic machines have the most ambitious investment plans: Yen 3,64 billion, they have scheduled approximately 9.4% more than in the previous year.

Meanwhile lean foreign Business

According to the sector association JSIM (Japan Society of Industrial Machinery Manufacturers) in the fiscal year 2015 the incoming orders for industrial machinery remained below the expectations. Incoming orders came nearly to Yen 5.50 billion.  These were almost 10% less than the year before. Industry experts had already expected in advance that particularly the foreign business would suffer after the exceptionally successful year 2014. For the fiscal year 2016 the JSIM experts expect an increase of 4.6% to Yen 5.73 billion.

Not as positive as in the preceding years the situation looks in the machine tool segment. According to the industry association JMTBA (Japan Machine Tool Builders' Association) the orders declined in 2015 over the previous year by 11.4% and reached around Yen 1.40 billion. - This is justified by an overcapacity abroad. In fact it was the overseas business which fell by 22.1% to just under Yen 820 billion, while there was still an increase of 9.9% to Yen 579 billion yen domestically. With a view on the 1st quarter of 2016 the association has to state that the foreign business has not yet recovered. With more than one-quarter the orders declined compared to the same period last year.

The domestic market thus wins in importance for Japan's machinery builders. Generally, there is a need of modernization of the partly obsolete equipment at the local businesses. In addition, the reconstruction of the earthquake regions is required too. In addition, the hosting of the 2020 Olympic Games in Tokyo is considered quasi as a guarantor of business orders from the construction sector.

 
 ¹⁾ actual results; ²⁾ preliminary; ³) forecast; ⁴) also included in category: pulp- and paper machines, chillers, equipment for air- and water cleaning; ⁵⁾ among others: equipment for waste treatment, industrial washing machines
Source: Japan Society of Industrial Machinery Manufacturers, February 2016

A high importance is given to the field of environmental and energy technology for the machinery industry in Japan. Although reactors, that meet stringent safety regulations, are expected to enter the net again in the next few years, renewable energy will be pushed up. In addition, there are intelligent power networks (smart grids) in the focus. Especially in areas with high priority, such as the energy and environmental technology, German suppliers with innovative technologies and customized solutions can win the points.

Connection links by Industry 4.00

Digitalization and with it topics related to Industry 4.0 keep the Japanese machinery and factory builders now very much interested. In June 2015, the "Industrial Value Chain Initiative (IVI)" was launched. About 40 Japanese companies belong to this interest group – like as the branches of the German Bosch and Beckhoff Automation GmbH. End April 2016 the German Federal Ministry of Economics (BMWi) signed with the Japanese Ministry of Economy (Meti) a Memorandum of Understanding (MoU) for joint cooperation in the region.
Equipment manufacturers from abroad should observe under cooperation aspects with big business interests the international activities of the Japanese mechanical and plant engineering. The Japanese abroad generated production shares are not far from the 40% mark the Japan Bank for International Cooperation (JBIC) determined the end of 2015. This creates opportunities for third-market operations, which are often controlled by the parent companies in Japan.

In foreign projects the PRC stands not as strong in the foreground as it used to be. The focus is increasingly directed on the ASEAN countries („Association of Southeast Asian Nations"), while currently the general economic activities in the emerging markets are critically observed. In the longer term India has been planned as a manufacturing location. Single, large companies dominate.

According to preliminary data from the industry association JMF (Japan Machinery Federation) Japanese engineering companies manufactured machines worth of about Yen 13.55 billion in the fiscal year 2015. This was 2% less than last year. Important were cooling machines, (Yen 1.98 billion, 4.8%) as well as equipments for manufacturing of semiconductors and flat panel monitors -Yen 1.61billion, 2,8%. The manufacturer of metalworking machines had a production decline over the previous year by 5.9% to Yen 1.18 billion. Growth rates of just over 10% are registered in the robotics segment since several years.

In general the concentration in the individual equipment segments is high. According to the Yano Economic Research Institute in the fiscal year 2015, slightly more than two thirds of the NC milling machine production came from three companies: Makino Milling, Okuma and OKK. In general metalworking machines Amada, Kobe Steel and Kawasaki Hydromechanics (subsidiary of Kawasaki Steel) came on a market share of about three-quarters. Other important tool machine vendors are Yamazaki Mazak and Mori Seiki. Also in construction, textile, packaging and food processing equipment the three leading manufacturers account for at least 60% of domestic production for themselves.

¹⁾ actual results; ²⁾ preliminary; ³⁾ forecast
Source: Japan Machinery Federation (JMF), July 2016

Japan imports partly from our own production abroad

The Japanese imports of machinery and equipment continue to increase. It should be noted, that some of the imports are based on the foreign production of local companies. The largest share of supplies from abroad accounts for the category pumps and compressors. According to the United Nations Comtrade database this category reached on the basis of USD around USD 3.57 billion in 2015. This was 6.5% less than in the last year.

Just over 30% of the supplies came from the PRC; probably to a not inconsiderable proportion from Japanese production. The latter is also the case with electrical machines. According to Comtrade these reached in 2015 an import value of slightly more than USD 55 billion (-8%). More than a third of this was accounted for the PRC; about one-fifth to Asian emerging markets. In the import statistics Germany is especially noted in machine tools and food and packaging machines.

Despite displacements to abroad Japanese exports continue to play a role. In 2016 they are likely to suffer from the resurgent Yen. Moreover, the economic slowdown in the Asian emerging markets is becoming more noticeable.

Source: Japanese custom statistics

 
Commercial practice

Relevant provisions for machine and plant engineering in Japan will be supplied by the following institutions: Japan Customs, the Ministry of Economy, Trade and Industry (METI), the Center for Information on Security Trade Control Japanese Standards Association (http://www.jsa.or.jp), the Japanese Industrial Standards Committee , the Japan Accreditation Board for Conformity Assessment  and the Japan External Trade Organization (JETRO ). JETRO published in February 2010 the still actual report "Handbook for Industrial Products Import Regulations 2009", which contains the specific import requirements for some types of machines, especially for machine tools, food processing and packaging machines.

Detailed information on commercial and tax laws are available at http://www.gtai.de/recht and for import arrangements, tariffs and NTB under http://www.gtai.de/zoll

The series “Sector compact” provides analysis on important key sectors of German export economy.
Other country reports for machinery and plant engineering and other industries can be found at http://www.gtai.de/branche-kompakt .
Contact for engineering: Roland Lorenz; E-Mail: roland.lorenz@gtai.de

Industry Association is searching for Business Partners

Tashkent (GTAI) - The Central Asian Republic of Uzbekistan is launching a new initiative for the modernization and expansion of its shoe and leather industry. Until 2020 numerous projects are planned to open foreign offering parties sales opportunities. In addition to machinery and equipment various supplies such as shoe parts, materials and chemicals are required. The majority of the sector companies concentrated in the industrial association O'zbekcharmpoyabzali.

The shoe and leather industry of Uzbekistan is facing a new wave of investment. In the years 2016-2020 the implementation of 82 projects for the establishment of new or for the expansion and modernization of existing capacities is planned. The commissioning of 48 new production facilities and the technical renewal or extension of 34 factories is provided. The for the projects necessary investments are estimated at USD 115 million.

Numerous business opportunities for foreign companies

The expansion and modernization projects offer a range of business opportunities to foreign companies. This applies to the supply of shoe parts, auxiliaries and additives, accessories and chemicals (tannins, fat accumulating and degreasing agents, aniline and pigments) as well as machinery and equipment, including used technology. In the tanneries and shoe factories mainly following types of equipment are required:

• Vacuum dryer
• Spiral blade for excarnation and planers
• Electronic instruments for measuring the leather Surface
• Slotting machines and squeezing machines
• Sewing machines for shoe production
• Hydraulic cutting machines
• Splitting machines for shell Elements
• Equipment for shoe assembly

In addition, some companies strive for the establishment of joint ventures with foreign capital participation.

Industry association O'zbekcharmpoyabzali coordinates investment projects

Behind the expansion and modernization program of the sector stands the Uzbek Association of Leather and Shoes O'zbekcharmpoyabzali. The majority of the companies of the industry are concentrated under its umbrella. The association today includes more than 80 manufacturers of raw material leather / finished leather (production of hard leather / foot and insole leather and soft leather / upper leather, including mainly chrome leather goods and Russia leather / fine calf leather for shoes), women, men, and children's footwear and gallantry leather accessories.

The in 2010 founded industry part-association is the central buying organization of raw- material leather and coordinates investments in the shoe and leather industry of the country. The association takes similarly care as its sister organization, the state joint stock company for the textile and clothing industry O'zbekyengilsanoat, which is comparable in the area of responsibility with as a small specialized ministry. 

A special professional association, which mainly would take care of the interests of private independent leather and shoe manufacturers, is not available in the country. Shoe producers, which are operating outside of the industry organization, represent about one third of the shoe production in Uzbekistan.

Annual production is expected to increase to USD 0.5 billion until 2020

The production of goods of the O'zbekcharmpoyabzali enterprises is expected to reach a volume of USD 140 million in 2016. In comparison to 2010 that would be a tenfold. In 2016 8.7 million pair of shoes are expected to be produced (2010: 3.1 million pairs). The expectation for 2020 is a production of goods in an amount of USD 476 million. Exports are assumed to rise from USD 191 (forecast for 2016) to USD 301 million in 2020. Shoes and other leather goods are currently being exported to the PR of China, to Pakistan, Turkey, India, Kazakhstan, Korea (Rep.), Italy, Spain and the United Kingdom. 

But - the new industry program remains far behind the original goals. The investment program for the period 2011 to 2015 provided an increase of shoe production by 120% to 14.2 million pair in comparison to 2011. The production of leather should rise by 90% (to 468 million qdm), of leather clothes by 720% as well as leather accessories by 40%.

From 2008/09 the industry showed a clear uptrend. However, the situation in the industry began to worsen again in 2012/13. As the main reasons for this market experts identified this mainly with liquidity problems of the companies, major difficulties in currency conversion and associated restrictions on the procurement of supplies from abroad and a general deterioration of the business climate in the country.
The production of leather, footwear and leather goods accounts now for only a fraction of the production of the late 1980s and early 1990s. In 1990 the companies still produced about 50 million pairs of shoes per year.

Die Produktion von Leder, Schuhen und Lederwaren macht heute nur einen Bruchteil der Produktion von Ende der 1980er und Anfang der 1990er Jahre aus. Im Jahr 1990 produzierten die Unternehmen noch circa 50 Mio. Paar Schuhe pro Jahr.

Contact addresses:

O´zbekiston charm va poyabzal ishlab chiqarish korxonalarining O´zbekcharmpoyabzali uyushmasi
(Association oft he leather and footwear enterprises of Usbekistan O´zbekcharmpoyabzali)
Mustakillik kuc., 109, 100192 Taschkent
Contact: Maksudshon Mansurow, chairman, Sharifshon Scheralijew, deputy chairman
Tel.: 00998 71/23052-80, Fax: -83
E-Mail: info@uzcharm.uz,  Internet: http://www.uzcharm.uz 

• Low interest rates and government subsidies should drive consumption and Investments
• Less start-ups and fewer direct foreign investment

Istanbul (GTAI) - After the failed coup attempt of July 15th 2016 the Turkish government wants to support the economy. Financial relief, government subsidies and a low interest rate policy should aim strengthening of consumption and investment and eliminate the arisen uncertainty in the business world. At the same time the overall savings ratio should be increased and the basis for financing of major infrastructure projects be improved.

The target of the government for an economic growth of 4.5% in 2016 appears now as no longer realistic. After the impressive increase of 4.8% in Q1 2016 government representatives expect for the rest of the year lower numbers, so that for the full year 2016 a growth of around 3.0 to 3.5% could be achieved.

But not only the failed coup attempt and subsequent the internal political turmoil are affecting the economic development. Also the in the recent months clearly increased geopolitical risks, the armed conflicts along the southeastern border with Syria and Iraq, and the threat of terrorist attacks are pressing on the business climate.

The number of start-ups is declining since April 2016th. According to the Turkish Chamber Union TOBB (Türkiye Odalar ve Borsalar Birligi) in July a provisional low point with a decline of about 34% over the same month of last year has been reached.

Source: Turkish Union of Chambers of Commerce TOBB (http://www.tobb.org.tr)

"Tailored" state support for Investors

Despite a rising inflation (annual increase of consumer prices in late July 2016: 8.8%) since several months the Turkish Central Bank is lowering the interest rates in small steps and ensures an increasing liquidity. For investors the government is planning generous subsidies. In the words of economy minister Nihat Zeybekci the government investment promotion is standing before fundamental changes. The plan includes "unlimited, customized and project-based" facilitations for specific sectors, which will go far beyond current incentives.

In this context Zeybekci named metallurgy, petrochemical, pharmaceutical and medical technology, in addition the renewable energy and modern agricultural technologies. In addition to extensive tax breaks the planned state aids will also include subsidizing the salaries of highly skilled employees, a free allocation of land, subsidies of taxes and energy subsidies. With this especially international investors should be won and high technology projects should become supported.

Foreign direct investments slumped in the first half year of 2016

According to the Turkish Ministry of Economy foreign direct investment declined in the 1st half of 2016 compared with the same period of last year by 55%. In 2015 a net amount of USD 16.9 billion flowed into Turkey, and in 2014 approximately USD 12.5 billion. Of these USD 5.3 billion or resp. USD 4.2 billion were invested in real estate.

Source: Turkish Ministry of Economy (Ekonomi Bakanligi, http://www.ekonomi.gov.tr)

State fund to finance infrastructure projects established

Of particular importance for the future financing of large infrastructure projects, especially in the transportation sector, is the law No. 6741 of  08  /19th / 2016, establishing the Turkey-Property Fund (Türkiye Varlik fonu - Sovereign Wealth Fund). The law, which was announced in the government Gazette No. 29813 on 08 / 26th /2016 regulates the structure and operational rules of the new fund, which originally was to be filled from the state budget and privatization proceeds and should have started with an initial capital of TL 50 million. The law provides the establishment of a stock corporation that will be responsible for investments, stakes and other commitments of the fund. The financial market operations of the fund are according to paragraph 8 of the law 6741largely exempt from taxes and fees.

From the new Turkey-Fund the government expects major funding contributions for ongoing and upcoming major projects. These include the third international airport in Istanbul and the planned "Canal Istanbul", which will run parallel to the Bosporus. Expected to the ideas of the government the fund should bring an annual contribution of 1.5 percentage points to the real GDP growth over the next ten years. Economy Minister Zeybekci expects through the fund in the long term an asset control of about USD 200 billion.

Debts to the State can be paid by installments

Companies that are under financial pressure should be relieved by the law no. 6736 for the restructuring of public demands from March 8th 2016. This came in force after the publication in the government Gazette no. 29806 of August 19th 2016. With this law firms and persons, which have debts at the tax office or at social security institutions, can get the possibility to settle their outstanding claims, including failure surcharges by installments within 18 months. On claims up to TL 50 (1 Euro = 3.31 TL) the state will entirely dispense. The redemption of debt from tourism enterprises, which are due in2016, will in accordance to the law shifted by one year.

The private retirement provision for all workers should increase the savings rate 

In order to increase the country's low savings rate, the Turkish government has adopted the law no. 6740 on August 10th 201616, which gets into force on January 1st 2017 (promulgated in the government Gazette No. 29812 on August 25th 2016). With this law, changing the law no. 4632 of March 28th 2001 about the voluntary private retirement provision all workers aged less than 45 years and of Turkish nationality will in the future "automatically" be included in the system of the private pensions system. Affected employees however have the right, within two months from the inclusion date to declare their abandonment and leave the system.

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• Banking Crisis comes to a head
• Foreign Trade rather little affected
• Tourism Industry looks at the Development of the British Currency

Milan (GTAI) – According to a study by the rating agency S & P Italy is among the European countries that are least affected by the Brexit referendum. Nevertheless, the after the Brexit resulting market turmoil threatens to slow the fragile recovery of the Italian economy and to lead the already ailing banks in a crisis. The United Kingdom is the fourth most important export market for Italian goods; British tourists are a major source of income for the tourism.

The outcome of the British referendum threatens the delicate recovery of the Italian economy. The business association Confindustria has reduced its GDP growth forecast for 2016 from 1.4% to 0.8%. However, compared to other EU Member States and according to various studies, Italy is little affected directly of the intended withdrawal of the United Kingdom from the EU, but the indirect effects through the market turbulence could become serious.

In a study about the “Brexit sensitivity" of 20 countries made by the rating agency S & P Italy comes on the penultimate place, ahead of Austria. The study analyzes the Brexit effects in the fields of export, finance, foreign direct investments and migration. The reasons for Italy's position are obvious: Compared to other European countries, exports of Italy to the United Kingdom are relatively small. In addition, the financial sector is "relatively Italian". In a European comparison, foreign direct investments in Italy are low; this also concerns the share of investment from the United Kingdom in Italy.

According to the S & P study among the Italian economic areas the activities of the financial sector are the most affected by the Brexit. Volatile markets as a result of the Brexit provide further uncertainty in the sector, which, after the long economic crisis is suffering among other things in their balance sheets under bad loans. In the days after the event the share prices of the Italian banks plunged into the depths. The Italian Government is negotiating with the EU on a new bailout.

The UK is an important trading partner 

The decision of the British could have a negative impact on the Italian exports in various sectors. According to the Italian statistical office ISTAT the United Kingdom is ranked 6 of the trading partners in Italy. At the same time, the UK is the fourth largest market for Italian goods. The overall imports from the United Kingdom were EUR 10.6 billion in 2015, while the exports were significantly higher at EUR 22.5 billion. In 2015 the share of the total Italian exports amounted to 5.5%. The Italians sold more only in the United States (8.9%), France (10.5%) and Germany (12.6%).

The risks for the Italian exports may not be underestimated; experts expect a loss of Italian exports to the United Kingdom of EUR 1 to 3 billion. The losses concern primarily the processing industry. According to the study "Il Brexit e l'Italia" of the research institute Nomisma of June 2016, 97% of the Italian exports are finished goods. The most important product groups of Italian exports to the United Kingdom are machinery and equipment (EUR 3.5 billion), food and beverages (EUR 3.1 billion), chemical products (EUR 2.6 billion), Automotive and - parts (EUR 2.6 billion), fashion and clothing (EUR 2.3 billion) and processed and unprocessed metal products (EUR 1.5 billion).

Particularly dependent on British customers are the wineries and furniture designers. For the Italian wine sector the United Kingdom is one of the most important markets. In 2015 Italian wine producers were able to sell wine worth of EUR 745 million, accounting for a share of 14% of total Italian wine exports. The Italian furniture designers sold in 2015 products worth of EUR 950 million to the United Kingdom, what represents a share of 10% of total Italian furniture exports.

Northern Italy has close economic ties with the United Kingdom

According to the Nomisma study the Italian regions are different linked with the economy in the United Kingdom. More than two thirds of Italian exports to the United Kingdom are coming from northern Italy. Nevertheless, northern Italy is less affected by the Brexit than southern Italy, because the proportion of northern Italian exports to the United Kingdom of the total exports of northern Italy is markedly lower than in the south.

From the southern Italian region of Basilicata 15% of the exports go to the United Kingdom. The high rate is due to the Fiat factory in the municipality of Melfi, where two car models are being produced. From Abruzzo and Campania circa 10% of the regional exports are sold in the United Kingdom.

eyond the foreign trade the Italian restaurant and hotel operators are anxious about the impact of the Brexit: According to Banca D'Italia British tourists ranked on the 6th place of tourists and business travelers in 2015. However - the 4.4 million British visitors expended on average per capita significantly more per day than any other European travelers. Overall the expenditure of the British amounted to just over 3 billion euros in 2015 - or more than 8% of the total expenditure of foreign tourists in Italy. A devaluation of the British currency could affect adversely both the number of tourists as well as their expenditure per capita.

• The best products on 100,000 square metres of exhibition space
• Successful 'Support Circle' concept with offers for all market participants is being continued
• New opening hours on the last day of the trade fair: Kind + Jugend will this year already close at 4:00 p.m. on Sunday

Kind + Jugend enjoys unabated popularity: the year's most important business platform for the international baby and children's outfitting industry opens its doors in Cologne from 15 to 18 September 2016. The 100,000 square metres of exhibition space in halls 10 and 11 of Koelnmesse are already completely booked, three months prior to the start of the fair. Around 1,200 companies from more than 50 countries will present their new products and continuing product developments in the segments of children's furniture, safety seats, textile outfitting, prams and hygiene items. Trade visitors from around the world can look forward to industry products of the highest quality. With its 'Support Circle' concept, KInd + Jugend also offers support and information for all target groups of the trade fair.

In terms of the quality of the offering, Kind + Jugend is the measure of all things in international comparison: nowhere else will industry pros find a similarly high number of the most important and high quality manufacturers of baby and toddler products. In 2016, a number of renowned companies from around the world are once again represented with their brands, for example: Alvi, Angelcare, Artsana - Chicco, Britax Römer, Cybex/GB, Done by Deer, Dorel, Doudou et Compagnie, ergobaby, Geuther, Hape, Hartan, Hauck, iCandy, Joolz, kiddy, Käthe Kruse, Mayborn - Tommee Tippee, Micuna, Mutsy, Nuby, Osann, Paidi, Peg Perego, Philips Avent, Pinolino, Recaro, Roba, Rotho, Silver Cross or Julius Zöllner.

Among others, Kind + Jugend this year welcomes Sigikid (Germany), Easywalker (Netherlands), Mima (Spain), 3 sprouts (Canada) or Little Unicorn (USA) as new or return exhibitors.

Supporting programme provides support for industry pros

In addition to the high-class product show, Kind + Jugend, with its so-called 'Support Circle', offers promotional and information offerings for all target groups of the trade fair, from startups and young designers to established, globally active brand manufacturers.

The information and promotional offering is oriented to the typical development and distribution chain of a product. A convincing concept and a prototype is always at the start of a product development process. Kind + Jugend presents the best prototypes with the nominees of the KIDS DESIGN AWARD. The best design will be distinguished on the first day of the trade fair. Furthermore, sponsorships between young designers and industry representative also have an appealing effect. The entry deadline for this year's KIDS DESIGN AWARD is 24 June 2016. Further information can be found here: http://www.kindundjugend.de/kindundjugend/Die-Messe/Events-Veranstaltungen/Kids-Design-Award/index.php.

• The ideal Market Place to gather Information and meet new Business Contacts

In its recent business-travel analysis for 2016, the German Business Travel Management Association (Verband Deutsches Reise-management – VDR) announced that German companies are sending more employees on business trips than ever before. In 2015, they made a total of almost 183 million business trips, four percent more than the year before. Five years ago, only one in four employees made a business trip at least once a year. Today, that figure has reached almost 40 percent. Moreover, the number of people taking their holidays abroad is also set to rise to 1.8 billion by 2030 according to the World Tourism Organisation (UNWTO). Three years ago, it was around one billion. A great opportunity with an excellent growth potential for the contract business – for the number of overnight stays increases concomitantly. Hotels and aircraft have to be furnished and equipped to cater for so many guests. Accordingly, it is a field of business that is booming. “The contract business is an enormous growth market. Therefore, Tendence is characterised by numerous high-grade exhibitors for furnishing specialists, interior architects, hotels and restaurants. Thanks to the special services offered, contract-business buyers can plan and organise their visit to the fair for maximum efficiency”, says Tendence Director Bettina Bär.

At Tendence, over 65 specialist exhibitors present an attractive spectrum for furnishing hotels and restaurants. AdHoc, Asa Selection, Koziol and Zero One One offer products from the tableware and wining & dining segments for the premium contract business. In the furniture, home and decorative accessories segment, renowned companies such as Decorama, DPI, Fink, Guaxs, Lambert and Scholtissek are distinguished by great experience in furnishing commercial premises. When it comes to textile furnishings, the exhibitors with suitable ideas include Rica Riebe, Steen Design and Zoeppritz.

The exhibition stands of suppliers for the contract business are clearly marked with the Contract Business label. Additionally, all Contract Business exhibitors are marked in the Tendence catalogue and listed in a separate section in addition to their entry in the main part.

Tendence, the international consumer-goods event

Tendence (27 to 30 August 2016) is Germany’s most international and biggest order fair for consumer goods in the second half of the year with an extensive range of products from the home, furnishing, decorating, gifts, jewellery and fashion accessory segments. At this new-products platform, top brands and key players present their Christmas trends thus giving the national and European retail trade the opportunity to place follow-up orders for the Christmas season. At the same time, they show their collections for the coming spring and summer.