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CADEAUX Leipzig © Leipziger Messe GmbH / Tom Schulze 
16.08.2016

TRADE FORUM FOR HOME TEXTILES COMFORTEX SHOWS "NEW MATERIALITY"

  • CADEAUX Leipzig: fabrics capture the room

New cloths the country needs: home textiles revive the modern interior design and are the focus of the professional forum for home textiles COMFORTEX at the CADEAUX Leipzig. From September 3rd - 5th  2016 interior designers, property experts, interior designers and craftsmen learn about the "new materiality" in its whole diversity and receive a comprehensive insight into the color and design trends in fabrics and curtains. In addition, the 49th CADEAUX supplies pulses for attractive decorations and innovative glass art and a variety of inspirations around the current lifestyle and culinary enjoyment.

  • CADEAUX Leipzig: fabrics capture the room

New cloths the country needs: home textiles revive the modern interior design and are the focus of the professional forum for home textiles COMFORTEX at the CADEAUX Leipzig. From September 3rd - 5th  2016 interior designers, property experts, interior designers and craftsmen learn about the "new materiality" in its whole diversity and receive a comprehensive insight into the color and design trends in fabrics and curtains. In addition, the 49th CADEAUX supplies pulses for attractive decorations and innovative glass art and a variety of inspirations around the current lifestyle and culinary enjoyment.

"In September Leipzig presents the theme living for retailers in a great variety," project director Andreas Zachlod says. "A total of 350 exhibitors and brands show on the CADEAUX and on the integrated expert forum for home textiles COMFORTEX their attractive collections and current editions of a modern lifestyle."

Modern materials for room and window

Prestigious brands dominate the exhibition program in the field of cloth and curtain. Among others, the following companies show their innovations: Brändl Textile, Dr. W. Hufnagl, Edi Michel, Florentina embroidery company, Heinz Weckbrodt, Hossner Heimtex, Jürgen Schleiß Confection, Klippan Yllefabrik, Lutex Fabrication, MB Textilmanufaktur, Otto Dotzauer, Raebel, Rovitex, Stickperle, StiVoTex, Verdi Collection, Vogtländische Home Textiles, Voigtmann & Kruschwitz, W. Reuter & Sohn and Wölfel & Co. and also the EuroCom GmbH with quality pressing irons.

About the most important interior trends in terms of cloth the trend forum "New materiality in the room and at the window" will give detailed information. A café with a lecture area invites to stay in an inspiring lounge atmosphere. Bernhard Zimmermann from the sector agency BZ- BBI (Leipzig) and his creative team provide a comprehensive trend update and draw the essential material milieus in four scenarios. In that the products of all exhibitors of home textiles are positioned in the center. Twice a day professional input about the revived enthusiasm of fabrics and of ideas for modern marketing methods will be given in lectures.

Curtains on a triumphal march

"We want to give the visitors the pleasure of selling home textiles, and illuminate advantages and potentials” Bernhard Zimmermann explains. "The creative power of cloths is just rediscovered." Pioneer was the contract business: Here innovative, easy-care fabrics would be appreciated as an excellent light and sun protection and the aesthetic, acoustic and energetic functions of the textile materials would be used. "But also in the living area we are now on the threshold of a trend reversal. The living styles are changing, curtains and drapes are coming back!"

The new "Generation Cloth"

Through cloth livable, pleasant rooms in the work environment, in healthcare, hotels and in private life would arise, so Zimmermann. "They reflect what the modern human being yearn: a cozy retreat that provides livability a new way and in modern colors and raises family warmth."

Suggestions for today's "Generation Cloth" were provided inter alia by the interpretation of advanced architecture, furniture design and creative textile drape of the 50s and 60s. "The market offers the colorations and patterns for every taste - whether comfortably-natural, progressive-young, factually-geometric or classically elegant," Zimmermann says. Not least products such as pillows, blankets or curtains offer an ideal opportunity for seasonal or mood changes in the room.

Inspirational - the lifestyle trends for fall and winter

Living, furnishing and enjoying: Many inspirations and promotional information about modern lifestyle can be experienced in other exhibition areas. Ralf Meuser demonstrates in the forum "Enjoy Meat" premium kitchen accessories in action. With matching accessories from sharp knives and sharp cutting boards, selected roasters and pans to spice mills the chef prepares high quality meat dishes. With practical tips Meuser gives the retailers important sales arguments at hand and points to the potential which lays in the theme "Enjoy Meat".

A traditional material in a stylish garb is staged in the special show GLASklar with emphasis on enjoyment, home accessories and Christmas. On display are glass products from renowned exhibitors - under the label of "Enjoyment" for example, drinking glasses, carafes, dessert bowls, bottles or étagères. Under the heading "Home Accessories" for example lamps, mirrors, pictures and decoration products will be presented. Christmas tree ornaments and figures determine the theme "Christmas". Furthermore, the forum provides a fascinating insight into the art of glass processing and refinement.

Service: opening times and admission prices

CADEAUX with the special forum for home textiles COMFORTEX is opened on Saturday / Sunday (September 3rd and 4th 2016) from 9:30 AM to 06.00 PM and on Monday (September 5th 2016) from 9:30 AM to 05.00 PM. Trade visitors who register online will receive free admission. At the box office the ticket price is EUR 17.00, for regular visitors EUR 8.00. A legitimation as trade visitor is required. The ticket includes also the admission to the open dowry-area of the parallel occurring watch and jewelry fair MIDORA Leipzig.

2017 Spring/Sommer Trends at the GDS shoe fair in Dusseldorf © Messe Düsseldorf / ctillmann 
02.08.2016

STEEP CAREER FOR SNEAKERS

Sneakers remain the megatrend par excellence in spring / summer 2017. There is no boredom coming up yet. The new shoe collections present themselves varied and innovative: Safari and ethno themes are reinterpreted. Soft romantic and playful decorations set new accents. Newcomers with potential are Mules and Sabots.

Sneakers remain the megatrend par excellence in spring / summer 2017. There is no boredom coming up yet. The new shoe collections present themselves varied and innovative: Safari and ethno themes are reinterpreted. Soft romantic and playful decorations set new accents. Newcomers with potential are Mules and Sabots.

While the consumer mood was positive in the first half of 2016 - the shoe retail sector unfortunately could barely benefit of it in many places. Sales in the first six months were two percent lower than last year. The weather conditions were anything but sales promotional: the last winter months were too mild, spring on the other hand was too cool. But this is just one of many causes for the sagging sales of shoe retailing. Deplored also is the loss of appeal of the inner cities and, related with this, the increasing trend of shoe purchasing in the Internet. For the stationary shoe trade this development represents a strong challenge which needs to be mastered. Hope puts the sector on the trend toward shortened trouser forms that lead more attention towards footwear. In the new season the shoe trade has to and wants to invest in target group-oriented shopping ambiance and in marketing methods to provide quality incentives. In many places the product mix has been send back to the testbed. Many traders therefore took advantage of the just ended GDS shoe fair in Dusseldorf in order to learn about the new trends for spring / summer 2017.

Sneakers continue their successful rise and belong to the generational and gender comprehensive trend shoes. The convenient slippers are now being used as footwear for the whole family, from the youngest to the elderly. This trend has often more to do with a sporty look than a sporty use, for many shoe wearer convenience has become a self-evidence. Clean and purist styled models standing next to styles of material mix: glitter, ornamental stones, mesh, metallics, reptile embossing, lasercut and neoprene come in use for the shoes. White soles are an important feature of the new sneaker.

Mules score in a new variety. In trend are toe gripers as well as mules in tube optics and wide (cross) bandages. For purchase incentives models with an anatomic formed footbed and soft uppers (like cork) should care.

Sabots, Mules and Babouch types are indispensable for the new season. The models are mostly flat and come along with slim borders. Very trendy are open toe shown mules with block heels.

Previously Espadrilles were worn only during the (beach) holiday, in the meantime these flat treads have blossomed into absolute trend-outfits. No wonder, because the new models are not only very comfortable, but super stylish also! Particularly noble shafts in a material mix like leather plus metallics come along. Trendy are also Espadrilles made out of linen, exotic printed, trimmed with stripes or sequins and pearls. Non-slipping rubber soles make the Mediterranean shoes now all-weather fit, regardless whether flat, with plateau or wedge.

Loafer with their androgynous variants like Brogue, Budapest and Monk remain important in the coming spring / summer season. It is important that the shoe is light. Filigree, unlined models made of soft suede compete with models with voluminous bottoms.

Sandals are an indispensable part of any summer collection. In addition to models with platform and wide drums are sportier variants. For innovations are sandals with block heels, T-clips and high-front cuts. Hardly to overlook are Lace-up Sandals, a mix of Roman-sandal and Ballerina.

The ethnic and safari trend remains unbroken in spring / summer. Shaft designs with colorful pompons, tassels, embroidery, pearls and braiding determine the optic. Thick, profiled soles ("Briquette plateau") or soles with "shark tooth" profiles have entered the mainstream. Ideal for women who like to “grow” a few centimeters without walking on high heels.

With the great demand for sneakers, the portion of high-tech materials is growing. Leather naturally will not be relinquished for shoes, especially not as soft nappa and suede. Very smooth and glossy surfaces are there among reptile embossing.

The color spectrum in the spring / summer 2017 is discreet. Monochrome color images produce a sustainably-quality look. From pearl gray to titanium ranges the gamut of grays. In addition there are clear, creamy tones with a touch of rosé, sandy shades and powdery-bright models.

Regardless whether as high heel or sneaker - metallic colors of "subtly iridescent" to "mega-glittery" light up many shoes. Silver, bronze and gold are not only trendy in fashion clothes, even the feet are decorated with it in the new season.

Kind + Jugend 2016 © Koelnmesse GmbH Kind + Jugend
26.07.2016

KIND + JUGEND COMPLETELY BOOKED

  • 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.

  • 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 DESIGN PARC presents exceptional objects, furniture and toys that are already ready for the market, and thus offer a good possibility for traders to distinguish their assortment from those of competitors.
Kind + Jugend supports startups and smaller companies in the form of discounted participation fees in country pavilions - this year from twelve countries. Poland and Turkey are represented with group stands for the first time in 2016. Twenty young German companies will present themselves in the special area of the Young Innovative Companies, which is sponsored by the Federal Ministry for Economic Affairs and Energy (BMWi).
 
The Kind + Jugend Innovation Award has established itself as a permanent fixture in the industry and is viewed as an important marketing and sales argument in commerce. The award is traditionally conferred in eight categories at the start of Kind + Jugend on the first day of the fair. Established companies have the opportunity here to submit new and further developments and win one of the coveted winner's or nominee's seals. The entry deadline for the Innovation Award is 14 July 2016.
 
The Consumer Award introduced in 2014 proved to be very informative for buyers and traders. Parents are asked to vote for their favourite products in advance of the trade fair. Those with the best ranking are awarded the Consumer Award. This year the Consumer Award will be awarded in seven countries: in Germany, France, Poland, Austria, the Netherlands, Russia and Turkey. All results are presented at the trade fair and provide the buyers and specialised dealers with valuable information on possible expansions of their line-ups or for entering the market in new countries.
 
The Kind + Jugend Trend Forum also offers valuable pro tips and best practices for everyday application in the form of lectures, discussion groups and workshops. International experts inform themselves and advise visitors, for example, about the typical buying behaviour of young parents or provide suggestions for idea and innovation management within one's own Company
Workshop „Green Shoes for a Sustainable Life“  © Messe Duesseldorf
19.07.2016

INTERNATIONAL FOOTWEAR WORKSHOP “GREEN SHOES FOR A SUSTAINABLE LIFE” TO BE HELD DURING GDS

From 26 to 28 July 2016 trade visitors from the shoe sector will be able to learn about the current trends and innovations revolving around shoes and accessories at GDS – Global Destination for Shoes & Accessories in Düsseldorf. Since the awareness of sustainability in the European footwear sector is increasing and seen as a long-lasting trend in business strategies, the European Confederation of the Footwear Industry (CEC) together with the other European partners of the “Step To Sustainability” project call upon footwear companies to participate in the International Footwear Workshop on Sustainability. The workshop entitled “Green Shoes for a Sustainable life” will be organised at the GDS shoe fair on 28 July 2016. During the workshop, companies will learn how they can increase their business value and sales whilst having a positive influence on social and environmental conditions by adopting sustainable strategies.

From 26 to 28 July 2016 trade visitors from the shoe sector will be able to learn about the current trends and innovations revolving around shoes and accessories at GDS – Global Destination for Shoes & Accessories in Düsseldorf. Since the awareness of sustainability in the European footwear sector is increasing and seen as a long-lasting trend in business strategies, the European Confederation of the Footwear Industry (CEC) together with the other European partners of the “Step To Sustainability” project call upon footwear companies to participate in the International Footwear Workshop on Sustainability. The workshop entitled “Green Shoes for a Sustainable life” will be organised at the GDS shoe fair on 28 July 2016. During the workshop, companies will learn how they can increase their business value and sales whilst having a positive influence on social and environmental conditions by adopting sustainable strategies.

The workshop is being organised by the EU funded project “Step To Sustainability”, the aim of which is to create and pilot a new occupation and qualification profile and corresponding training course in the area of sustainable manufacturing in footwear. The project addresses the needs of companies wishing to engage in sustainable manufacturing by elaborating a new qualification profile, which will equip students with the necessary skills and competences to deal with sustainability issues and contribute to increasing the competitiveness of footwear manufacturers.

Applying sustainability to industry is also an important step to take. Environmental sustainability is certainly increasing in the European footwear sector. The footwear industry contributes to and is affected by the environmental degradation and social challenges that society is now facing. What initially was considered as an external environmental regulation to comply with, meaning an obligation, is now becoming part of the DNA of some companies. By introducing positive changes in production choices, companies can increase the popularity of their products and brand among consumers and business partners alike.

Carmen Arias Castellano, General Secretary of the CEC - European Confederation of the Footwear Industry stated: “Not only the environment benefits from a sustainable strategy. It also enhances social responsibility and will allow businesses to enjoy numerous advantages such as increasing revenue and cutting costs, increasing employee attraction and retention rates, creating a healthy workplace leading to greater productivity, and enhancing relationships with stakeholders and communities.”

At the workshop, there will be a presentation on the results of the Step To Sustainability project by a Portuguese SME, which participated in the pilot, as well as two panels of relevant industry representatives, who will explain best practices in the footwear sector. The first panel will focus on the manufacturing phase with presentations from El Naturalista and BATA Brands as well as the organisation LeatherNaturally; while the second will present the retailers’ approach to ensuring sustainability with contributions from Deichmann, Zumnorde, and Avocado Store GmbH.: www.cec-footwearindustry.eu

OutDoor 2016 © Messe Friedrichshafen | OutDoor Show | www.outdoor-show.de
05.07.2016

COMFORTABLE BACKPACKING - THE NEW TREND

  • Functional travel wear for travelling, outdoor adventures and everyday use -meeting the new demanding requirements of travelers in the digital age

The tourist industry is suffering in many traditional destination countries. Yet outdoor companies say that sales of luggage, accessories and travel wear remains unaffected. Independent tourism is thriving. Good news for outdoor manufacturers - as functional clothing offers more crossover potential than any other sector. OutDoor 2016 in Friedrichshafen - the leading international trade show - will be providing an overview of the latest trends and innovations for the travellers of tomorrow from July 13 to 16, 2016.

  • Functional travel wear for travelling, outdoor adventures and everyday use -meeting the new demanding requirements of travelers in the digital age

The tourist industry is suffering in many traditional destination countries. Yet outdoor companies say that sales of luggage, accessories and travel wear remains unaffected. Independent tourism is thriving. Good news for outdoor manufacturers - as functional clothing offers more crossover potential than any other sector. OutDoor 2016 in Friedrichshafen - the leading international trade show - will be providing an overview of the latest trends and innovations for the travellers of tomorrow from July 13 to 16, 2016.

The German Travel Association (DRV) has reported the impact of geopolitical factors on the tourism industry. For example, summer bookings are down by 40 per cent in Turkey compared to the previous year. Other European travel associations are reporting similar lower-than-usual booking levels for Egypt and Tunisia. However, the outdoor industry appears unaffected. "We‘ve not seen any impact on our market,? says Columbia (Portland, US). "People continue to travel lots, although given the current political situation they are choosing different destinations.? Lonely Planet, the independent traveller’s bible, currently recommends visiting the following countries: Botswana, Japan, Poland, Palau, Latvia, Australia, Uruguay, US, Greenland and Fiji. Not exactly classical, low-cost family destinations, but still potential paradises for outdoor and adventure travel.

Thomas Groeger, country manager Fjällräven Germany is also confident, "More and more people are looking for alternatives to the conventional beach holiday. Outdoor- and sport-related travel is particularly popular.? Gerold Ringsdorf, product trainer Jack Wolfskin sees "interrail travellers and globetrotters? as "important founders of the outdoor movement.” Travel garment manufacturer ExOfficio (Seattle, US) agrees, pointing to a survey where 42 per cent of Europeans describe themselves as adventure travellers. Package tourism might still dominate the market, but it continues to be frowned upon. In contrast, independent travel is seen as an attractive, if complicated option for the masses.

The Future institute “Zukunftsinstitut” (Frankfurt/ Vienna) observes a new phenomenon which it calls the "normtrotter”: vacationer looking for a personalized experience and personalized service, but who still want their bookings arranged in advance. And from America, there’s a newly-coined expression to describe more affluent backpacking for normal travellers: flashpacking. The term refers to traditional backpacking only with flash, or style, i.e. adventure travellers who desire style and comfort. Travelers in this growing segment prefer to sleep in their own hotel room, hire a car instead of using overcrowded coaches and plan ahead using modern communication devices rather than going with the flow and improvising.

"Backpacking used to be the exception, something for adventurers only. Nowadays, it‘s a common way of travelling,“ comments Thomas Groeger. Young people in particular prefer to travel in a simpler manner. "The gap year - young people wanting to work and travel abroad - is a definite trend,“ adds Gerold Ringsdorf.

Modern travel equipment is designed to meet people’s requirements regarding performance and security. Backpacks and bags have anti-theft slashproof straps to stop bag slashers and RFID-blocking pockets to keep personal information and data safe. Travel apparel is often made of insect-repelling fabrics or has UV protection suitable for tropical sun, plus moisture management and odour control. In addition, today‘s travel wear is lightweight, easy-care and takes up little space in your backpack.

Modern travel wear also offers significant crossover potential for outdoor and everyday use. UV protection and protection against mosquitoes or ticks is also useful in central and northern Europe. "Of course urban outdoor, outdoor lifestyle and travel wear styles often look pretty similar,? says Wolfgang Jahn, sales manager Europe Royal Robbins, while Oliver Robens, sales director Europe Craghoppers adds, "it’s possible to look good both in the jungle and about town.? However, real travel apparel sets itself apart through its functional characteristics and extra details. And this is exactly why specialist providers have been so successful over the years.

To find out which new trends and products innovations will be shaping the industry in 2017, visit the international OutDoor trade show in Friedrichshafen. OutDoor 2016 is open to industry visitors only from Wednesday, July 13 to Saturday, July 16 (Wednesday to Friday from 9 a.m. to 6 p.m. and Saturday from 9 a.m. to 5 p.m.). For more information, please visit: www.outdoor-show.com.

TEXCARE INTERNATIONAL 2016 © Foto: Jens Liebchen / Messe Frankfurt GmbH
21.06.2016

TEXCARE INTERNATIONAL CLOSES WITH A NEW INTERNATIONALITY RECORD

  • Trade visitors very pleased with the bigger and more extensive range of products at the world’s leading trade fair for the sector
  • Exhibitors and visitors rate the economic situation in the sector as very good
Texcare International has closed its doors after welcoming ten percent more international visitors. Overall, the number of trade visitors remained stable – of the 15,700 visitors (2012: 15,650 from 101 countries*), almost 9,000 (2012: 8,045) came from outside Germany to the world’s leading trade fair for the sector in Frankfurt am Main from 11 to 15 June 2016, which means that international visitors account for 57 percent of the total. The visitors travelled to Texcare International from 112 countries, to discover the latest products and innovations at the exhibition stands.
  • Trade visitors very pleased with the bigger and more extensive range of products at the world’s leading trade fair for the sector
  • Exhibitors and visitors rate the economic situation in the sector as very good
Texcare International has closed its doors after welcoming ten percent more international visitors. Overall, the number of trade visitors remained stable – of the 15,700 visitors (2012: 15,650 from 101 countries*), almost 9,000 (2012: 8,045) came from outside Germany to the world’s leading trade fair for the sector in Frankfurt am Main from 11 to 15 June 2016, which means that international visitors account for 57 percent of the total. The visitors travelled to Texcare International from 112 countries, to discover the latest products and innovations at the exhibition stands. After Germany, the top visitor nations included Italy, France, the Netherlands, Belgium, Spain, the United Kingdom, Switzerland, Denmark, Austria and Poland. Outside Europe, the USA, Japan, Australia, the United Arab Emirates, China and India ranked among the biggest visitor nations at the textile-care fair. Overall, the proportion of international visitors from outside Europe rose from 15 to 22 percent with the largest non-European growth coming from Argentina and Kazakhstan. In Germany, the market continues to be characterised by an on-going process of consolidation and concentration.
 
For five days, 319 exhibitors from 28 countries (2012: 262 exhibitors from 26 countries) – over 20 percent more than four years ago – presented their high-tech solutions and innovations for laundries, dry cleaners and textile service providers. The proportion of international exhibitors also reached a new record at 68 percent. On 30 percent more exhibition space and in two halls for the first time, the manufacturers presented a more extensive range of products and services, especially in the textiles and IT product groups. The focal point of the exhibitors’ presentations was on networking all processes in accordance with Industry 4.0. Impulses for the sustainable conversion to ‘smart laundries’ were generated by innovations for contactless laundry registration, for visualising all processes in real-time, for intelligent storage systems and for the use of robot technology.
 
Wolfgang Marzin, President and Chief Executive Officer (CEO) of Messe Frankfurt, says, “The atmosphere at Texcare International 2016 was outstanding and international growth reinforced the position of the event as the world’s leading trade fair for the sector. Top decision-makers from all over the world travelled to Frankfurt am Main to do business at the fair and gain new customers.” The level of visitor decision-making authority also rose again: over 60 percent of visitors said they were authorised to make purchases on behalf of their companies.
 
84 percent of exhibitors confirmed that they had achieved their goals for the fair, especially in terms of sales agreements signed, order books filled and numerous new international contacts made. Elgar Straub, Director General of VDMA Garment and Leather Technology, says, “Texcare International exceeded the expectations of its exhibitors by a wide margin. The high level of visitor internationality shows the great worldwide interest and demand for new, future-oriented technologies, as reflected by subjects such as Industry 4.0 and the on-going process of digitalisation on which the fair focused.”
 
89 percent of exhibitors said that the economic situation in the sector is very good, an increase of three percent over the last Texcare International four years ago. 89 percent of visitors also agreed with this assessment.

98 percent of visitors said they were very pleased with the range of products and services at Texcare International. Andreas Schumacher, Managing Director of the German Dry Cleaning Association (– DTV Deutscher Textilreinigungsverband), says, “We are delighted with the course of business at 
the fair. The echo from exhibitors and visitors has been excellent. Very popular was the opportunity to exchange information and opinions about subjects of topical importance to the sector at Texcare Forum in addition to visiting the exhibition stands. The DTV stand itself was also a welcome meeting place for holding discussions with our members and sponsors. We were particularly pleased with the highly positive response of visitors to our programme of events, which included a fashion show and ironing competition.”
 
At the fair, trade visitors from all over the world were able to discern the latest trends in the sector and gain an excellent impression of the high-grade products offered by the manufacturers. The events held within the framework of Texcare International also proved to be very popular, especially the lectures at the Texcare Forum, which were attended by over 1,000 participants. The division into themed days – education and careers, innovative textiles, sustainability and Industry 4.0 – was also very well received.

A highlight at Texcare International was the fashion show where manufacturers presented their collections and showed the latest trends in terms of colour, design and function for industrial, healthcare and catering workwear. The first ironing competition to be held at Texcare gave participants the chance to match themselves against others and to demonstrate their skills.
 
The next Texcare International will be held in Frankfurt am Main from 20 to 24 June 2020; the next Texcare Asia in the autumn of 2017.
 
You will find further information about Texcare International at www.texcare.com.
Follow Texcare on our social-media channels at:
www.texcare.com/twitter
www.texcare.com/facebook
 
PAKISTAN’S TEXTILE AND GARMENT INDUSTRY HAS TO INVEST © Jerzy Sawluk / pixelio.de
07.06.2016

PAKISTAN’S TEXTILE AND GARMENT INDUSTRY HAS TO INVEST

  • INTERNATIONAL COMPETITION INCREASES
  • COMPANIES HAVE TO MODERNIZE PRODUCTION AND INCREASE DEPTH OF PROCESSING

Dubai / Islamabad (GTAI) - Pakistan's textile and clothing industry has urgently to invest. The international competition has intensified. The companies need to modernize their technology and increase their processing depth. The country wants to get away from the production of simple fabrics and yarns. The GSP Plus agreement with the EU and an improvement in the security situation have improved the investment climate. In high-end machines Pakistan is dependent on imports. 

  • INTERNATIONAL COMPETITION INCREASES
  • COMPANIES HAVE TO MODERNIZE PRODUCTION AND INCREASE DEPTH OF PROCESSING

Dubai / Islamabad (GTAI) - Pakistan's textile and clothing industry has urgently to invest. The international competition has intensified. The companies need to modernize their technology and increase their processing depth. The country wants to get away from the production of simple fabrics and yarns. The GSP Plus agreement with the EU and an improvement in the security situation have improved the investment climate. In high-end machines Pakistan is dependent on imports. 

Pakistan's textile and clothing industry expects better sales opportunities abroad in the next few years, particularly with the European Union. Early 2014 Pakistan has received from the EU the GSP Plus status (Generalized System of Preferences) that allows the country to supply goods at a lower rate of duty or even with a completely duty exempt in the EU. Particularly the textile and clothing industry benefits from the agreement, as the sector provides almost 80% of Pakistan's exports to the EU. The government even hopes on additional exports for the sector worth USD 1 billion per year.

Following the latest available trade figures, Pakistan increased in 2014, the year in which the GSP Plus agreement came into force, its total exports of clothing by almost 10% to around USD 5 billion. Official figures of exports to the EU are not available. According to the foreign trade statistics, in any case exports to Germany have increased in clothing by 13% to almost USD 500 million, in textiles by 18% to USD 434 million and in footwear by 27% to USD 34 million.

Pakistan's export of textiles, clothing and footwear (USD million)
SITC Productgroup 2013 2014 Change 2014/2013
Export        
65 Textiles 9,341 9.077 -2,8
84 Clothing 4,549 4.991 9,7
85 Shoes 109 132 21,1
26 Textile Fibres 370 308 -16,8
..2631 Cotton 217 181 -16,7
Import        
65 Textiles 1,245 1.545 24,2
84 Clothing 68 86 26,0
85 Shoes 67 84 25,2
26 Textile Fibres 1,369 1.287 -6,0

Source: UN Comtrade

Demand for textile machinery rises
Market observers anticipate increased investments in machinery. A particular dynamic effort is expected in the demand for textile printing machines, dyeing machines, tenter frames and other finishing techniques. Positive for the investment climate will be the effect of the expected increase in textile exports to the EU and the improvement of the security situation. In recent years power shortages and a precarious security situation have inhibited the production and investment activity.

The market for textile machinery (SITC 724) grew significantly since 2014. In the country itself only relatively simple machines are being manufactured. High-end equipment is mostly imported. The import of textile machinery rose to USD 585 million in 2014, an increase of 17% compared to 2013.

Import of Textilmaschinen*)
Year Value (in Mio. US$)
2014 585
2013 498
2012 439
2011 488
2010 455
2009 217
2008 385

*) SITC 724, including pieces
Source: UN Comtrade

German machinery manufacturers are losing market share
The PR China has superseded Japan as the major supplier of textile machinery in 2014. In fact Japan was able to increase its deliveries vigorously (+ 23%), but the Chinese succeeded to get even higher gains (+ 41%). The suppliers from Switzerland and India have also increased their exports to Pakistan significantly. German machinery manufacturers however were not able to benefit from the increasing demand.
Import of textile machinery by main supplier countries (in USD million, change over previous year and supply share in %) *)
Land   2014 Veränderung 2014/2013 Anteil
VR China 145 40.7 24.8
Japan 139 22.6 23.7
Schweiz 75 55.2 12.8
Deutschland 71 -24.9 12.1
Italien 50 9.3 8.6
Indien 15 28.0 2.6
Gesamt 585 17.5 100

*) SITC 724, including pieces

Investments urgently needed
Competition from PR China, Bangladesh, India and Sri Lanka has intensified. Pakistan's textile industry needs to modernize and upgrade, to increase its productivity and the added value. Pakistan covers the entire value chain from fiber preparation from to the end product. Despite this well-position predominantly simple products are being produced. Only an estimated 40 companies are vertically integrated and cover the entire textile processing.
With an annual harvest of about 13 million bales Pakistan is the world's fourth largest cotton producer. In addition about 600.000 tons of synthetic fibers are being manufactured in the country. According to reports there are 21 manufacturers of filament yarn with a capacity of 100.000 t; the production is supported by a PTA plant with a capacity of 500.000 t.

Export of the textile industry by product group 07-01-2014 – 31-03-2015 (Changes compared to the same period of last year and in %)
Product Value (in Mio. US$) Change Share
Knitwear 1,792 7.5 18
Readymade Garment 1,548 8.5 15
Bed Wear 1,570 -2.4 15
Towels 580 1.8 6
Tent, Canvas, Tarpaulin 105 82.0 1
Made-ups (Other Textiles) 486 -0.5 5
Cotton Cloth 1,860 -26.5 18
Cotton Yarn 1,461 2.0 14
Raw Cotton 142 -9.4 1
Art-Silk& Synthetic Textile 274 -17.0 3
Other Textile Products 350 0.0 4
Summe 10,168 -1.6 100

Sources: Pakistan Bureau of Statistics; TMA - Towel Manufacturers Association

Yarn production has lost competitiveness
According to sector experts In the past decade yarn manufacturers made no larger investments to upgrade their production, although money would have been available for such investments.  The reason for that should have been the heavy competition from China, India and Bangladesch.  Ten years ago Pakistan used to be one of the most efficient yarn manufacturers worldwide. Because modernization investments failed to materialize, this technique applies as outdated in Pakistan today.

The companies complain about high production costs and are demanding more favorable electricity tariffs and protectionist measures against import competition. A negative effect on the production and the investment climate in the country also have the electricity shortages and the tense security Situation.

The textile sector in Pakistan is characterized by numerous large textile companies with quite a large number of small businesses opposite which mostly belong to the so-called informal sector. The informal sector, for example, includes small family companies or small productions, which are not taxable. The informal sector produces mainly simple products for the domestic market. It works with discarded equipment of the larger companies, imported used machinery or cheap equipment from China. The official statistics do not take the informal sector into account.

Import of textile machinery by product and top supplier countries (in USD thousands, change compared to the previous year in%)
SITC Productgroup 2013 2014 Veränd.
724.3 Sewing machines, from 18.508 31.034 67,7
  PR China 9.795 19.925 103,4
  Japan 2.596 3.694 42,3
  Vietnam 479 911 90,3
  Germany (Rank 5) 856 750 -12,4
724.4 Spinning and other machines for textile processing, from 255.311 258.348 1,2
  Japan 74.961 61.771 -17,6
  Switzerland 36.203 57.814 59,7
  Germany (Rank 3) 64.086 46.545 -27,4
724.5 Weaving machines, from 121.860 179.424 47,2
  Japan 29.997 68.090 127,0
  PR China 31.305 53.706 71,6
  Italy 6.666 11.275 69,1
  Germany (Rank 6) 5.290 6.097 15,2
724.6 Auxiliary machines, from 30.953 36.801 18,9
  PR China 8.797 11.935 35,7
  Germany (Rank 2) 6.429 4.880 -24,1
  Japan 2.055 3.614 75,9
724.7 Machines for dying, washing, drying, from 61.620 64.825 5,2
  PR China 9.855 12.455 26,4
  Italy 14.867 11.527 -22,5
   Germany (Rank 3) 16.652 11.494 -31,0
724.8 Machines for leather processing and footwear manufacturing, incl. parts, from 5.854 8.722 49,0
  Italy 3.674 4.985 35,7
  PR China 1.542 2.338 51,6
  Finland k.A 192 k.A.
  Germany (Rank 5) 29 140 381,6
724.9 Parts for textile machines, from 3.996 5.760 44,2
  PR China 2.107 2.854 35,5
  Germany (Rank 2) 617 669 8,4
  Italy 528 661 25,3
CRISIS HITS RUSSIAN FASHION MARKET HARD © derProjektor / pixelio.de
24.05.2016

CRISIS HITS RUSSIAN FASHION MARKET HARD

  • Sales decreases
  • Middle Price Segments affected most
  • Online Sale of Clothing growing

Moscow (GTAI) - Sales of apparel and home furnishings will continue to decline in 2016. Lower real income leads to falling demand. Russian customers buy fewer clothes and are increasingly watching the price. Most sales shrink in the medium price segment. Fashion chains react on the declining market volume by closing stores and focus on profitable locations. In contrast, the online trade is growing. In comparison to the year before Russia's clothing market shrank in 2015 year by 9% to a volume of Rubles 1.4 billion. Converted into USD the decline was even 43%. The discrepancy between the value in Rubles and in USD is due to the drastically fallen value of the Russian currency.

  • Sales decreases
  • Middle Price Segments affected most
  • Online Sale of Clothing growing

Moscow (GTAI) - Sales of apparel and home furnishings will continue to decline in 2016. Lower real income leads to falling demand. Russian customers buy fewer clothes and are increasingly watching the price. Most sales shrink in the medium price segment. Fashion chains react on the declining market volume by closing stores and focus on profitable locations. In contrast, the online trade is growing. In comparison to the year before Russia's clothing market shrank in 2015 year by 9% to a volume of Rubles 1.4 billion. Converted into USD the decline was even 43%. The discrepancy between the value in Rubles and in USD is due to the drastically fallen value of the Russian currency. For the textile and clothing industry, the Ruble devaluation means a fundamental change in the general framework: more expensive imports, lower personnel costs in Russia and rising export opportunities.
 
Customers change from the middle to the lower price segment
In addition, the real income of the Russian population declines and thus the purchasing power. Russian customers buy less clothing and watch more and more the price. Sales shrink at the most in the medium price segment. Many customers orientate themselves on low-price segments (mass market), which will increase in 2016 by 5 to10% to a share of 65 to 70%, the Fashion Consulting Group predicts. The proportion of the premium and luxury segment remains unchanged.
An average Russian household has cut its spending on clothing and home textiles by 30 to 50%, experts estimate. Especially the suppliers of imported textiles and clothing got to feel this, their prices had to be increased most, what damaged the business of foreign brand suppliers. In 2015 the Russian imports of textiles and clothing fell by 25%. This tendency continues in 2016.
    
Distribution networks in the stationary trade become thinned 
Because of the price pressure manufacturers and retailers in the fashion market shorten their staff, negotiate discounts for the shop rental, reduce the collections, simplify cuts and save on quality. While many Russian brands used to buy their materials in the EU and in Turkey, designers and producers now can only afford cheap synthetic fabrics from China. The advertising budgets were slashed in 2015 by 40 to 45%. Moreover clothing suppliers react by closing stores and concentrate on most profitable locations. Since 2014 more than eleven international brands have left the Russian market. These include Gerry Weber from the middle price segment, Laura Ashley, Chevignon and Seppälä; from the mass market segment Esprit, New Look, OVS, River Iceland and Wendys.  
 
Marks & Spencer closed 3% of its stores, Mango 7%, Gloria Jeans 12%. The largest drop in the number of stores are reported from the brands Vis-a-Vis (-65%), Motivi (-40%), Savage (-29%) and Incity (-17%). Maratex closed its franchise stores for clothing brands like Esprit, New Look, OVS and River Iceland 2015 in Russia. The Finnish Stockmann sold its seven department stores in Russia for EUR 5 million to Reviva Holdings Ltd. (owner of the franchise store chain Debenhams) and gave up the business of its brands Lindex and Seppälä.
 
Adidas has closed 2015 167 of its 1,100 shops in Russia, planned are 200. The German sportswear manufacturer acquired 2015 the central warehouse Chekhov-2 with an area of 120,000 square meters in the Moscow region. The purchase price is supposed at a total between USD 70 and 100 million. The Finnish Kesko informed in February 2016 that it wants to sell the Russian Intersport chain because of poor financial results.

The retail chain Modny continent (brands: Incity, Deseo) reduced the number of its stores by 35. At the end of the first quarter of 2016 they still owned 301 stores. The Melon Fashion Group disposed in 2015 27 unprofitable stores, for this they opened 37 new ones. Melon owned December 31st 604 stores throughout Russia (befree 234, Zarina 203, Love Republic 167), of which 134 are franchise stores (befree 56, Zarina 44, Love Republic 34). A new concept of the stores - larger retail space and more modern design – should help against the crisis.
The Spanish designer brand Desigual closed its Russian stores end of September 2015, but they remain on the market in multibrand stores. A similar course is followed by other brands. 

Eleven fashion brands enter the Russian market in the first half year of  2016
A small gleam of hope: Eleven fashion brands announced to enter the Russian market in the first half year of 2016. This happened already at the end of 2015 with budget brands like Cortefiel, Superdry and Violetta by Mango. H & M, Monki, Uniqlo and Forever 21 want to continue to expand in Russia.
Already in 2015 the number of H & M stores grew in Russia by 35% to 96 stores. On April 28th 2016 the menswear house Henderson opened a new salon in the shopping center "Zelenopark" in Zelenograd near Moscow. With this Henderson (brands: Henderson, Hayas) is now represented in 164 major shopping centers in 56 Russian cities. Hugo Boss inaugurated on April 8th 2016 a new shop in the Outlet Village Pulkovo.

The vertically integrated chain Gloria Jeans has changed it’s headquarter at the beginning of 2016 from Rostov-on-Don to Moscow and rented there 3,500 square meters in the Arma plant. Until the end of 2016 Gloria Jeans plans to extend on 5,000 square meters and further to 10,000 square meters until 2017. The capital should serve as a gateway to the world market: Gloria Jeans plans to open an office in Hong Kong. The company has eight regional offices and two large logistics complexes in Novosibirsk and Novoshakhtinsk.

International brands, planning to enter the Russian market in first half of 2016
Nr. Brand Country Profile Shopping mall Price segment
1 Demurya     France/Russia Clothing Smolenskij Passash Premium
2 John Varvatos USA Clothing Crocus City Mall Premium
3 Il Gufo Italy Clothing for children ZUM Premium
4 Barbour United Kingdom Clothing GUM upper middle
5 Armani Exchange Italy Clothing Mega, Aviapark middle
6 Veta Estland Clothing Streetretail, Kamenoostrowskij middle
7 Love Stories Netherlands Underwear Einkaufszentrum "Modny Seson" middle
8 Victorias Secret Pink USA Underwear, clothing Evropejskij middle
9 Hunkemöller Germany Underwear Mega middle
10 Undiz France Underwear Mega lower
11 Aigle France Clothing, shoes Street retail, Olimpijskij pr-t middle

Source: Retail.ru

Online sale with clothing is growing – Chinese suppliers are expanding
In contrast to the declining sales in the stationary apparel trade, the demand in outlets and on the Internet is rising. The number of visits and the average amount of receipts at the Fashion House Outlet Centre Moscow has risen by two times since July 2013, director Brendon O'Reily reports. The Fashion House Group offers online shopping since 2016.

The association of Internet trading companies (http://www.akit.ru) estimates that sales on the Internet in 2015 were Rubles 760 billion (+ 7%). The share of clothing and footwear was 35 %. Already in 2014 the online trade had grown by a third. Online stores are operated by KupiVIP, Lamoda and Finn Flare. Alone at KupiVIP the number of orders increased by 45% to a volume of Rubles 16.5 billion in 2015.

Manufacturers and distributors therefor boost the online trade. The government wants to promote the export of Russian goods and is planning a large Internet trading platform. Models are Alibaba (China) and JD.com. However Russian customers are buying increasingly from Asian webshops. Only in 2014 the popularity of online orders in China increased threefold.

Contac addresses
Fashion Consulting Group
(Consulting, Marketing, PR)
125009 Moskau, Maly Gnezdnikowskij pereulok 4
Tel.: 007 495/629 74 25, -629 76 23
E-Mail: info@fashionconsulting.ru, Internet: http://www.fashionconsulting.ru

Russian Buyers Union
119034 Moskau, ul. Prechistenka 40/2, Gebäude 3, Büro 110
Tel.: 007 499/350 51 40
E-Mail: info@buyersunion.ru, relations@buyersunion.ru
Internet: http://www.buyersunion.ru

 

BEKLEIDUNGSHERSTELLER VERLAGERN PRODUKTION NACH RUSSLAND © Florentine/ pixelio.de
17.05.2016

CLOTHING MANUFACTURERS MOVING PRODUCTION TO RUSSIA

  • Weak Ruble makes domestic Production profitable
  • Government encourages Investments

Moscow (GTAI) - Sales of textiles and clothing will continue to decline. Production in Russia however will rise. Due to the strong Ruble devaluation in the last two years, the conditions for the textile and clothing industry have completely changed. On the one hand falling real incomes lead to declining demand. On the other hand labor costs have fallen under Asian benchmarks.

  • Weak Ruble makes domestic Production profitable
  • Government encourages Investments

Moscow (GTAI) - Sales of textiles and clothing will continue to decline. Production in Russia however will rise. Due to the strong Ruble devaluation in the last two years, the conditions for the textile and clothing industry have completely changed. On the one hand falling real incomes lead to declining demand. On the other hand labor costs have fallen under Asian benchmarks.

Due to the low Ruble exchange rate it has become cheaper in 2015 for domestic and foreign textile and clothing companies to produce in Russia. Translated into US dollars, labor costs are currently due to the Ruble devaluation 10 to 15% below the reference value in the PRC. The average wage of a worker in the garment industry in China is currently USD 300 to 350, in Russian Rubles 12,000 to 15,000 (USD 185-230).
 
Relocation to Russia begins
According to a report of the newspaper "Izvestia" the first domestic and foreign clothing manufacturers of branded products have reacted and shift their production capacity from Asia to Russia or have subcontract Russian garment manufacturers.  These include companies like Roztech (brands: Dikaja Orchideja, Bjustje, Defile, Grand Defile), Sportmaster, Melon Fashion Group (befree, Zarina, Love Republic), Finn Flare and Kira Plastinina.

"A few years ago we produced 20 to 30% of our collection in Russia, last year 2015 there were already 30 to 40% and now already about 70%", the commercial director of "Kira Plastinina Style" Vladimir Romanov reported. For that the company has established its own production in an industrial park in Osery close to Moscow.

Other brand manufacturers and retailers like Zara (Inditex), Sela, Baon, Gloria Jeans, Modis, Lamoda, Lady & Gentleman, kangaroo and Sneschnaja Korolewa are looking for opportunities to relocate their production to Russia. The Ministry of Industry and Trade is in intensive discussions with Zara, H & M, Benetton, Dekatlon, Sportmaster and IKEA (home textiles) in order to convince them of the advantages of production in Russia. In future IKEA wants to get up to 40% of its products produced by Russian firms.

Roztech plans to double its production of women's underwear to up to 8 million units. Currently two sites are rented for that in the Smolensk region. For repairs and preparations for production in the rented plants Roztech will invest about  Rubles 60 million. Two other sewing factories in the area of Moscow and Smolensk are already working for Roztech. Contract productions in the PRC and in the Baltic States the company will be terminated because of this.

The franchise chain Finn Flare (Finland) has rented a factory with 500 square meters close to Moscow early 2016, renovated it and installed new equipment. For that Rubles 12 million were invested, General Director Ksenija Rjasowa said. The sewing factory is scheduled to start in May and will produce 40,000 to 60,000 pieces clothing per year. Beginning of 2016 Finn Flare possessed 143 Russian stores (54 franchised).
 
Manufacturers of sportswear increase their share of production in Russia
Since the outbreak of the Ruble crisis Sportmaster has begun to place a portion of its contracts with Russian companies. Currently 15% of the clothing and footwear is coming from Russian production. The retail chain operates shops with the brands Sportmaster - 460, Ostin - 760 and Funday - 60.

The MMD group "Vostok i Zapad", which belongs to the group of the companies Bosco di Ciliegi, intends to set up an own factory for the production of sportswear in the industrial park "Kameshkovo" in the Vladimir region. The necessary investment will amount to Rubles 1 billion, of which Rubles 200 million are own funds and about Rubles 400 million will be requested from the fund for the development of mono towns. 

Even Pierre Cardin is talking with major Russian garment manufacturers about licensed productions, designer Rodrigo Basilikati said in March 2016. So far the fashion house is based on ten own stores and licensees from Germany, Italy and the USA.

So far most sewing orders placed in China. In future one has to expect more companies and  offers from Vietnam, Bangladesh, India, Malaysia and Indonesia. The Eurasian Economic Union and Vietnam have agreed upon a free trade agreement.
 
Import dependence on fabrics and accessories as cost risk
By manufacturing in Russia the exchange rate risk and transport costs do not apply.  But one cost risk remains: For sewing of clothes in Russia  not all fabrics and materials can be sourced domestically, but need to be purchased at 65% abroad. The technical equipment needs to be imported at 100%. In the foreseeable future this remains a cost risk, depending mainly on the development of the further exchange rates.

The main suppliers of fibers, fabrics, yarn, buttons and accessories were previously the PRC and Turkey. However - since the deterioration of the state relation with Turkey Russia is working intensively to get gradually rid of this delivery dependence.
 
Anti-crisis and development program for the light industry
In the Russian light industry 14,000 companies are manufacturing clothing, textiles, footwear and leather goods. Thereof 653 large and medium and 4,000 small businesses operate in the yarn and textile industry. To give the clothing and textile factories more planning certainty, the Russian Government decided in spring 2016 a "Strategy for the development of the light industry until 2025" and a "Federal program to support  the enterprises of the light industry" (anticrisis plan).

Russian Confederation:  Production of textiles and clothing (Change in %)
Description of goods 2015 Change 2015/2014
Cotton fiber  (mio. bales) 111.0 4.4
Man-made fiber (mio roles) 66.0 -4.5
Fabrics  (mio. sqm) 4.542 14.7
thereof:    
Natural Silk (1.000 sqm) 253.0 31.8
Wool (1.000 qm) 9,262.0 -20.9
Linen 25.9 -26.6
Cotton 1,176.0 -4.5
Man-made fiber 237.0 14.2
Fabrics made of other  materials 3,084.0 25.1
Fabrics with plastic impregnations (mio. sqm) 32.3 14.6
Bed linen (mio. sets) 59.8

-9.6

Carpets (mio. sqm) 22.6 -3.7
Knitwear (1.000 t) 14.2 29.8
Hosery (Mio. Pair) 199 -5.6
Coats (1.000 pc.) 989 -22.1
Lined jackets (1.000 pc.) 1,887 -45.4
Suits (1.000 pc.) 4,690 -12.6
Mens jackets and blazer (1.000 pc.) 870 14.1
Ladies coats with fur collar  (pc.) 5,543 -46.1
Clothing made out of artificial fur (1.000 pc.) 24.5

21.0

Uniforms and workwear (mio. pc.) 20.7 -8.2
Work – and protective wear (mio. pc.) 99.8 14.6
Overalls (1.000 pc.) 733 -62.4

Source: Rosstat 2016

Russian Confederation: - Production of textiles and clothing (% Change)
Description of goods 1st Quarter 2016 1st Quarter 2016 / 1st Quarter 2015
Sewing threads- made out of synthetic fiber (mio. rolles) 14.0 -0.6
Fabrics (billion sqm) 1.2 23.2
Bed linen (mio sets) 14.1 -7.7
Knitted stockings (mio. pairs) 55.4 34.0
Knitwear (mio. pc.) 24.8 -6.0
Workwear  Uniforms (mio. pc.) 31.1 11.2
Coats (1.000 pc. ) 269 9.1

Source: Rosstat 2016

Contact addresses
Russian Union of Entrepreneurs of  the Textile and Light Industry
107023 Moskau, uliza Malaja Semenowskaja 3
Tel.: 007 495/280 15 48, Fax: -280 10 85
E-Mail: info@souzlegprom.ru, Internet: http://www.souzlegprom.ru

Ministry of Industry and Trade
Department of Light Industry
Denis Klimentewitsch Pak, Director of the Department
109074 Moskau, Kitajgorodskij proesd 7
Tel.: 007 495/632 8004 (Sekretariat), Fax: -632 88 65
E-Mail: dgrvt@minprom.gov.ru, Internet: http://minpromtorg.gov.ru

Light industry department:
Director: Irina Ivanova Alekseewna,
Tel.: -632 87 31, -346 04 73; E-Mail: ivanovaia@minprom.gov.ru
Internet: http://minpromtorg.gov.ru/ministry/dep/#!9&click_tab_vp_ind=1

"Strategie für die Entwicklung der Leichtindustrie bis zum Jahr 2025"
http://www.kptf.ru/images/company/Presentation.pdf (Präsentation zur Strategie)
http://minpromtorg.gov.ru/docs/#!strategiya_razvitiya_legkoy_promyshlennosti_rossii_na_period_do_2025_goda (text of the strategy and action plan)

 

 IVC introduces the 16th Edition of the Study "The Fiber Year" with Key Sector Data © The Fiber Year GmbH
10.05.2016

IVC INTRODUCES THE 16TH EDITION OF THE STUDY "THE FIBER YEAR" WITH KEY SECTOR DATA

  • Fiber Production for the first Time in five Years lower than Consumption
In a press conference on May 3rd 2016, the industry association IVC published in an established tradition both the national and the global sector data: Andreas Engelhardt, CEO of The Fiber Year GmbH left no question about all important raw materials, natural and synthetic fibers and nonwovens unanswered and presented In his study a forecast horizon till 2020. 20 country profiles of leading production as well as consuming nations completed next to statements from sector experts and an extensive statistical annex the new edition. The key messages were focused on production, consumption and trading volume.
 
For the first time in five years fiber production is less than consumption
 
Since 2008 the global fiber production dropped again for the first time.
  • Fiber Production for the first Time in five Years lower than Consumption
In a press conference on May 3rd 2016, the industry association IVC published in an established tradition both the national and the global sector data: Andreas Engelhardt, CEO of The Fiber Year GmbH left no question about all important raw materials, natural and synthetic fibers and nonwovens unanswered and presented In his study a forecast horizon till 2020. 20 country profiles of leading production as well as consuming nations completed next to statements from sector experts and an extensive statistical annex the new edition. The key messages were focused on production, consumption and trading volume.
 
For the first time in five years fiber production is less than consumption
 
Since 2008 the global fiber production dropped again for the first time. The global volume fell by 0.7% to 94.9 million tons. The decline was decisive caused due to cotton which experienced its steepest decline in forty years. The production in the current season is estimated with 22.0 million tons, a decrease of 15.6% compared to the previous season.  With a slight decrease in demand by 2.2% at the same time the stocks remain with over 20 million tons still at an enormous height. High growth rates of China's chemical fiber industry let expect a massive supply surplus. The global fiber demand in the past year has grown to 96.7 million tons. This represents an increase of 3.1% over the previous year, the weakest growth in four years due to a continuously decreasing growth of demand.
 
With a world population of about 7.3 billion people, this results in an average consumption per capita of 13.3 kg of textile materials for garments, home textiles, carpets and technical textiles. Synthetic fibers showed an increase of 6.6% to 60.7 million tons, significantly driven by a growth of polyester. The increase is largely caused by the area of filament yarn, as staple fibers achieved a moderate growth of 2.4% only. This can be seen as a recovery after this part of the sector showed in the last year a decline for the first time since 2008.
 
Cellulose fibers showed for the first time after seven years with strong growth a slight fall in production of 1.2% to 6.1 million tons. The market is almost completely dominated by staple fibers. Due to a growth across Europe and Asia viscose fibers could increase their volume by 1.1% to 4.9 million tons. In contrast Acetate showed a loss in a second consecutive year. A decreasing production activity was seen in all markets and regions with a global slump of 7.5% to 0.9 million tons. This drastic cut was significantly stronger than the losses in the end-use consumption, which can be seen as a clear indication of global destocking. The long-term shrinkage of cellulosic yarns for textile applications has developed further, so that the global supply of about 350 000 tons is equivalent to the level of the early 1930s.
 
The market for natural fibers experienced with a reduction of 13.2% to 28.1 million tons the biggest annual decline since 1986, which is mainly due to cotton. The production of wool was unchanged at 1.1 million tons while for bast fibers a reduction of about 5% is expected.
 
In a focus on the different countries, the People's Republic of China could further strengthen its dominant position with an increase in production output by 8.9% to more than 47 million tons. The United States could consolidate their second place despite a slight  decline of 2.5% to 2.9 million tons, while India experienced a continued decline in the fifth following year to 2.6 million tons.
 
Trading volume grows unabated
 
According to the World Trade Organization (WTO) during the year 2014 the textile and clothing exports reached around USD 820 billion. The for the yearbook researched trade flows of 26 countries and the EU (28) estimate that the worldwide export will fall to USD 780 billion in 2015. While the Chinese exports developed a first decrease in six years, Bangladesh, Cambodia, Myanmar and Vietnam were able to continue to raise their export value. The dynamic development particular of Vietnam with its booming textile industry can be attributed to the influence of free trade agreements.
 
Fiber production in Germany
 
Despite international trends and many political challenges, which increasingly plague the German chemical fiber producers, man-made fibers "made in Germany" are still no dying species, Dr. Wilhelm Rauch, managing director of the industry association said.
 
While in 2014 the chemical fiber industry in Germany suffered a decline in production volumes of 6.1%, the production volume stabilized at almost the same prior-year level. The production of cellulosic fibers remained with a reduction of - 6.8% (previous year - 8.6%) - conform to the worldwide slump of cotton. Synthetic fibers (in particular Polyester) however achieved a slight increase of + 1.6% (last year - 4.9%). Thus the reduction in production volumes kept with - 0.9% in limits.
 
As consequences of this a sales decline of - 4.8% and associated necessary personnel adjustments with -1.4% are alarming signals, that the site conditions for chemical fiber producers in Germany (and Europe) are urgently in a need of improvement. A positive turnaround could certainly bring a fair competition protecting and an industry-friendly approach of the EU business policy. But the emphasis of the current policy debates - about the recognition of the market economy status of China as an example of politically motivated developments let suppose a very different intension, so Mr. Rauch. Despite unfavorable economic expectant conditions it is to owe the commitment and innovation power of the local manmade fiber sector that they claim to withstand the international competition.  
 
Nevertheless, the sector would appreciate a somewhat lower political headwind.
 
Fiber processing
 
In 2015 the processing of all types of fiber in Germany could not keep the level of the previous year and suffered a decrease of -11.6%. The total imports of chemical fibers - mostly from the 28 EU countries with +54% followed by Asia with + 40% - show a plus of 1.1% (synthetic staple fibers +1.9% and filaments +1.7%), while cellulosic fibers suffered a slump of -7.4%. The total export is declining slightly (- 2.0%). Despite the reduction of total exports, here the shares in the various regions of the world compared to the previous year stood unchanged.
 
Further information is available at:
 
Andreas Engelhardt 
CEO
The Fiber Year GmbH 
Hauptstraße 19 
9042 Speicher, Schweiz 
Tel.: + 41 / 71 / 450 06 82 
 
Creta Gambillara
Economics and Public Relations
Industrievereinigung Chemiefaser e.V.
Mainzer Landstraße 55
60329 Frankfurt am Main
Tel.: 069 / 279971 – 39
Sales of Apparel are rising in Poland - despite Price Pressure © Hardy5 / pixelio.de
03.05.2016

SALES OF APPAREL ARE RISING IN POLAND - DESPITE PRICE PRESSURE

  • Import from Germany growing / Domestic Chains expanding

Warsaw (GTAI) - The outlook for sales of clothing and footwear in Poland is favorable. Domestic chains such as LPP, Bytom, Vistula and Monnari are opening additional stores. In 2016 the shoe chain CCC is investing around EUR 33 mio in new sales areas, including in Germany. The western neighboring country is by far the biggest buyer of clothing from Poland. Increasingly popular too is fashion from Germany, which occupies the third place among supplying countries.

  • Import from Germany growing / Domestic Chains expanding

Warsaw (GTAI) - The outlook for sales of clothing and footwear in Poland is favorable. Domestic chains such as LPP, Bytom, Vistula and Monnari are opening additional stores. In 2016 the shoe chain CCC is investing around EUR 33 mio in new sales areas, including in Germany. The western neighboring country is by far the biggest buyer of clothing from Poland. Increasingly popular too is fashion from Germany, which occupies the third place among supplying countries.

In Poland the demand for clothing and footwear is steadily growing. The market research firm PMR (http://www.pmrpublications.com) expects in 2016 sales worth of Zloty 35.3 billion (approximately EUR 8.2 billion, 1 Euro = 4.3283 Zl, as of April 22nd  2016). The price war however is very tough due to the higher US dollar exchange rate, the dealers can hardly pass their higher costs on to the customers. This concerns mainly imported commodity goods from the Far East, while the outlook for the upscale segment outfitters is better.

Value of sales of clothing and footwear (in PLN billion)
2012 2013 2014 20151) 20162) 20172)
28.7 28.9 31.8 33.4 35.3 37.1

1) Estimation, 2) Forecast
Source: market research company PMR

The company for classic clothing Bytom (http://www.bytom.com.pl, from the same city (Bytom – Beuthen)) that serves the upper segment, wants to create an offer for the masses. It lowered its prices in March 2016. In order to reach more customers, it plans to increase its sales area of from 10,300 square meters in spring 2016 to 15,000 square meters by the end of 2018. The number of its stores should simultaneously rise from 97 to 120.

Bythom will avoid quality losses through savings in the purchasing of clothing. According to Michal Wojcik, chairman of the company, negotiations with representatives of procurement markets are on the way. In 2019 the retail sales of Bytom should reach around 250 million PLN, double as much as in 2015 (123 million PLN). The company will serve the middle segment between large markets with  
mass-production goods and expensive boutiques with domestic and foreign luxury brands.

The two great rivals Bytom and Vistula (http://vistula.pl) from Krakow (Krakau) are receiving increasing competition by smaller companies. Vistula was able to win in 2016 the soccer star Robert Lewandowski for promotional activities, he will appear in suits of the company.

The stockbroker office of the Bank BZ WBK believes in good opportunities of the smaller chain Monnari  (http://www.emonnari.pl), which could double its sales area until 2019. With the proliferation of the growing clothing and footwear chains a consolidation of the retail structure goes along, and the total numbers of stores will overall decrease.

The chains Vistula, Bytom and Monnari are expanding domestically only, where they expand their retail spaces annually by 10 to 25%. Since only one third of the by Vistula and Bytom sold collections are being settled on a USD basis, they are not hurt as much by the strong upvaluation of the US currency as LPP, the manufacturer of mass-products. This company buys almost its entire collection in the  
Far East in US currency. In the case of the footwear chain CCC, the proportion is 40 to 50%.

Number of shops for clothing and footwear
  2010 2011 2012 2013 2014
Clothing 32,100 30,700 29,400 28,700 28,400
Shoes  

7,610

7,464 7,215 7,029 6,86

Source: Bisnode

CCC strives towards west

The retail chain CCC (http://ccc.eu), which is also represented abroad including in Germany and Austria, has acquired for more than ZL 200 million the online shop for shoes eobuwie.pl (http://www.eobuwie.pl). By 2016 a further strong expansion is planned, for which it wants to raise about PLN 140 million. The sales area should become 27% net bigger with at least 100,000 square meters. This was announced by the deputy chairman of CCC, Mr. Piotr Nowjalis.

The majority of the new area (77,000 square meters) is planned abroad, where 110 stores should be opened. In the focus here are Germany, Austria and Romania. Domestically CCC is planning a new sales area of 23000 square meters for 40 stores. These plans represent an acceleration compared to 2015, when the total sales area had increased by 66,000 square meters net (+ 22%). At the end of 2015 there were at home and abroad 773 CCC stores with a total of 372,000 square meters. 

Forecasts for and results of apparel and footwear chains (in PLN million)
Company Revenues 2015 Revenues 2016 *)   Net income 2015   Net income 2016 *)
LPP 5,130 6,062 352 510
CCC 2,407 3,043 237 271
Vistula 517 565 31.5 38.5
Monnari 214 258 35.5 34.5
Bytom 131 160 13.3 16.1
CDRL 183 201 14.2 14.9
Gino Rossi 278 301 6.7 10.0
Wojas 220 240 6.3 8.4

*) Forecast of the press agency Bloomberg, February 2016
Source: Newspaper Rzeczpospolita

According to a forecast of Bloomberg, the most important apparel and footwear companies will improve their results in 2016. Leader LPP supplies with its brands Reserved, Mohito, Cropp, House and Sinsay a wide audience. To the upscale segment belongs the new brand Tallinder, which is being offered since February 2016 in a first store in Gdansk (Danzig). Beginning in 2019 there should be 30 sales stores for the brand Tallinder, which then will compete with Vistula, Bytom and Prochnik.   

Market shares of classic man’s wear 2014 (in %)
Vistula und Wolczanka Bytom  Prochnik  Übrige
30 14 6 50

Source: Newspaper Rzeczpospolita

In 2016 LPP wants to increase its retail space at home and abroad by 11 to 13%, that is about 90,000 square meters. End of the year thus 1,716 shops could belong to the company. To date, 23% of the sales area of LPP is in the Russian Federation and Ukraine. The profits there were again impacted by the devaluation of the local currencies against the Zloty.

Foreign trade increases

The Polish imports of clothing exceed the exports. Especially Asian countries could increase their deliveries in 2014, but also Germany belongs to the leading suppliers and attained growth. Among the importing countries Germany plays by far the most important role. The followers are the Netherlands, Czech Republic, Austria, Sweden and other, mostly European countries.

Foreign trade with clothing from woven fabrics (in PLN mio)
Custom tariff 6201 bis 6209 2012 2013 2014
Import, including 5,251.0 5,392.4 6,910.0
PR China 2,319.4 2,115.3 2,532.3
Bangladesch   666.6 758.4 1,019.2
Germany 278.8 522.1 607.7
Turkey  333.0 290.6 404.3
India 264.5 258.8 329.9
Export, including   5,416.9 5,895.4 6,830.1
Germany 2,628.9 2,997.3 3,677.7

Source: Central Statistical Office GUS

Although Poland supplies clothing to Germany at a large extent, it is not easy for the companies to settle in the western neighboring country with own shops and their own brands. LPP opened its first store in Germany in September 2014, in spring of 2016 there were already twelve. In three years there should be 30 stores. In 2015 the German LPP stores generated approximately 94 million PLN, but probably without profit because of investment costs and advertising.

Foreign trade of knitted and crocheted clothing (in PLN mio)
Zolltarifposition 6101 bis 6114 2012 2013 2014
Import, including 4,990.3 5,191.6 6,748.2
PR China   1,575.2 1,574.1 1,970.7
Bangladesch   963.9 903.2 1,258.8
Germany 349.2 538.1 723.8
Turkey 479.3 512.9 628.7
Cambodia 278.4 235.4 464.3
Export, thereof 4,150.1 4,521.4 5,108.9
Germany 1,794.8 1,888.0 2,343.8

Source: Central Statistical Office GUS

In 2015 Polish exports of apparel, accessories and other textile products and footwear continued to rise.

Export of garments, accessories, textiles and footwear (in PLN billion)
  2010 2011 2012 2013 2014 2015
Apparel, Accessoires, Textiles 12.0 13.5 13.9 15.1 17.3 21.4
Shoes 1.6 1.9 2.4 3.0 3.3 4.0

Source: Central Statistical Office GUS

Automotive GROUPE JEC
29.03.2016

BIG SUCCESS FOR THE FIRST EDITION OF JEC WORLD

JEC World, the largest international composites show, opened at the new Paris Nord Villepinte venue for the first time. Its content, design and scenery were the object of much admiration. New records have been reached this year, with a total surface of 62,000 sqm, 1,300 exhibitors and 36,946 professional visits in attendance. One of the show’s new features consisted of the “Planets”, four new display areas totalling  more than 1,800 sqm.

JEC World, the largest international composites show, opened at the new Paris Nord Villepinte venue for the first time. Its content, design and scenery were the object of much admiration. New records have been reached this year, with a total surface of 62,000 sqm, 1,300 exhibitors and 36,946 professional visits in attendance. One of the show’s new features consisted of the “Planets”, four new display areas totalling  more than 1,800 sqm.

A World of Difference
JEC Group presents composites in a completely different style

According to JEC Group President and CEO Mrs Frédérique Mutel, the unanimous reaction to the show was pride in the composites industry and delight at JEC Group’s showcasing of it. “The JEC teams have indeed done a wonderful job at presenting composites to the world in the most impressive way,” she said. “An enormous range of products and technologies were presented, shared and showcased at JEC World 2016. Composite materials continue to become more widespread. In a world where energy savings and recyclability are sought, composites seem to stand out as one of the best answers. Innovative solutions must be found for current and upcoming challenges in terms of higher performance, lower weight, reduced costs and processing time, and of course, addressing the pressing matters of environmental concerns.”

This year’s event also featured the launch of four Innovation Planets, each one addressing a specific end-user market (the Aero Planet, the Auto Planet sponsored by Hexion, the Sports Planet and the Sustainable Planet). These areas were very popular ones, where attendees could see, touch and experience Innovative composite parts, observe demos, and ask questions about the innovations.

New name, new venue for the comfort of all attendees
To truly reflect the global dimension of the exhibition, which included participants from more than 100 countries, the event has taken on a more suitable name, “JEC World”. For the convenience of exhibitors and visitors, it has also moved northward from the southern part of Paris, in order to be closer to Paris Charles de Gaulle Airport, train stations and many other connecting opportunities. The total surface has
increased to 62,000 sqm, offering visitors and exhibitors a bigger show with enhanced features to improve the visiting experience. These include a new mobile application, Internet connections on the entire floor, a concierge service open to all, and digital touch screens.

High-level content delivered by JEC Expertise
Over the three days, participants were able to gather a wealth of information from the 11 top-notch conferences, some of them organized in partnership with Inovev, Cetim, e-Xstream, Stanford University, Onera, Composites Innovation Cluster, AZL and Dassault Systemes. The 30 technical sales presentations and the 40+ presentations on the “Planets” also covered a vast range of current and future composite topics.

A large delegation of Korean visitors and exhibitors showed up to proudly represent the Republic of Korea, the event’s Country of Honour. They showcased their latest advances, particularly in carbon, proving to the world that they have become a key player in the composite industry.

Other noteworthy events included the JEC Innovation Awards with its 29 prizewinners; the Automotive Composites Circle; the Live-Demo zones; the Composites in Action areas; and the 1,950 B2B Meetings that were organized.

The popularity of the event keeps on growing, which is very encouraging for next year’s session. Many exhibitors have already confirmed their participation.

SAVE THE DATE
JEC WORLD 2017 - Paris Nord Villepinte
March 14-16, 2017
More information: www.jeccomposites.com

Village www.kappisdesign.de
22.03.2016

IMPORT BAN OF USED CLOTHING TO PROMOTE EAST AFRICAN TEXTILE INDUSTRY

Observers doubt the Success of the planned Measures / Ambitions in the Automotive Industry

Nairobi (gtai) - The countries of the East African Community will prohibit the import of used clothing and used shoes in three years. Long since defunct textile and clothing industries so revived. It is also planned to impede the import of used cars, in order to promote a local car assemblers. In particular, the Ugandan President Yoweri Museveni dreams of building its own car industry.

The East African Community (EAC), who is also Kenya, Tanzania, Rwanda and Burundi belong alongside Uganda, other countries serve as role models. So to have led to building lively textile industries in Ghana, Egypt, Ethiopia, India and Vietnam, such a ban.

Observers doubt the Success of the planned Measures / Ambitions in the Automotive Industry

Nairobi (gtai) - The countries of the East African Community will prohibit the import of used clothing and used shoes in three years. Long since defunct textile and clothing industries so revived. It is also planned to impede the import of used cars, in order to promote a local car assemblers. In particular, the Ugandan President Yoweri Museveni dreams of building its own car industry.

The East African Community (EAC), who is also Kenya, Tanzania, Rwanda and Burundi belong alongside Uganda, other countries serve as role models. So to have led to building lively textile industries in Ghana, Egypt, Ethiopia, India and Vietnam, such a ban.

Used clothing is very popular East Africa. With luck, you can get hold of well-preserved Western European branded goods or shoe sizes, as they are locally not available for little money. Many teenagers from expensive villas suburbs of capitals makes a kick out, used T-shirts to buy exotic printing at prices equivalent to 0.45 euros. Thanks to the second-hand imports contribute even male slum dwellers naturally a western suit and girls or young women from a wide array chic western clothes.

German exports of rags of SITC 269 in countries of the East African Community
(in million euros)

Customer Country 2014 2015 *)
Kenya 8.61 7.74
Uganda 4.92 4.48
Tanzania 1.87 4.81
Rwanda 0.12 0.14
Burundi 0.31 0.02
Total 15.83 17.19
German Exports worldwide 390.64 388.55

1) Primarily apparently used clothing, blankets and kitchen linen of textile materials and shoes that are loose presented in bulk or bales. 2) provisionally
Source: Destatis

Politicians promise hundreds of thousands of new jobs
While East African politicians boast of being able to create in this way hundreds of thousands of jobs, incite economists from: "The reasons why people in East Africa are happy to buy used clothes easily enumerated," said Scolastica Odhiambo, an economics professor at the Kenyan Maseno University: "It is less expensive, of good quality and provides diversity." The regional textile industry have meanwhile not have the capacity to meet the demand. In addition, they do not produce quality  in the eyes of the local population. The only local manufacturer of shoes, meanwhile, the company Bata that however mainly produces shoes for students and a local SME. In the upper price segment Bata, however, is dependent on imports.

In a period of three years, it is the opinion of observers simply impossible to expand the local textile industry so that it can meet the demand both quantitatively and qualitatively. This time is also too short to find alternative employment for hundreds of thousands of second-hand clothes dealer who live with their families from the Mitumba business (Mitumba = bales).

Industrial decline since the 1980s
If the East African states really want to try willing to build a powerful textile industry, they would almost from scratch start. The East African cotton production was mid- 1980 even at the height. Tanzania had  then 700,000 bales (à 185 kg) produces cotton, reports the weekly "The East African", Uganda and Kenya 400,000 100,000. Then it was just gone downhill. Kenya had last only 25,000 bales (2014), Uganda 150,000 bales (2015) and Tanzania produced 30,000 bales (2014).

East African textile factories and Entkörnungswerke for cotton (ginneries) have shut down or run down for the most part. The main reasons included industry experts, a lack of organization of the agricultural sector, high production costs, the inadequate use of quality inputs and over-reliance on a rain irrigation. Then in 1991 came yet added the liberalization of the sector: Cheap Used clothes conquered henceforth
the market.

Uniforms instead of fashion chic?
How difficult is the situation, be seen using the example of single Rwandan textile factory L'Usine Textile du Rwanda (UTEXRWA). 1984 began its operation,the 75-million-US $ - Investment. But for an average Rwandans were and are the products simply too expensive. Finally, the utilization was only at 20%, sales fell to an estimated $ 2 million to 3 million US. Almost all substances are already imported: cotton
fabrics from the East African neighbors, polyester materials from South Africa, Taiwan, Korea and Indonesia (Rep.).

To prevent the utter collapse of the company, the Rwandan government will soon raise the import tariffs on clothing gradually from 35% to 100%. Rwandan clothing retailers see the highly critical: UTEXRWA could neither quantity nor quality and certainly not fashionable Chic deliver, not now and not in ten years. Over military and school uniforms are not there, they say.

Prohibitions instead of better frame conditions
Foreign observers speak of a typical East African policy Quick shot: Because the governments want to defuse the ticking time bomb of rapidly rising unemployment, they sat on activism without the  consequences to sufficiently discuss. If East Africa wants to strengthen its industry, it must improve the framework. Bureaucracy, corruption, nepotism and monopolies are the ones that prevent the development of competitive industries for decades.

The winner of the new policy is expected to - be the PRC, which is expected to fill along with other low-cost producers, the expected supply vacuum - again. Clothing stores in the Ethiopian capital Addis Ababa to show where we are headed: The cheapest Chinese commodity, wherever you look. The new Ethiopian textile and footwear industry is meanwhile mainly from Chinese companies which produce exclusively for export. to copy this model to other East African countries, however, is likely to fail, say industry insiders. Kenya and Tanzania are far too expensive, not to mention the landlocked countries of Uganda, Burundi and Rwanda throughout.

German exports of machinery for textile, apparel and leather production
in selected East African countries (EGW 847; EUR million).

Abnehmerland 2013 2014 2015 *)
Mauritius 5.44 3.39 4.17
Uganda 0.60 0.56 1.67
Ethiopia 0.48 6.68 1.14
Kenya 0.93 1.72 0.91
Tanzania 0.61 0.47 0.56
Madagascar 0.02 0.05 0.04
Total 8.08 12.87 8.49

*) provisional; Quelle: Destatis

Protectionism to promote motor vehicle industry
Even more questionable than the East African textile policy is rekindled desire to raise its own automotive industry launched. Hopefuls nationalist politicians in Kenya is the "Mobius", an all-terrain vehicle primitive, which is equipped with a small engine from the Nissan NP200 pick-up truck. Students of Uganda Makerere University have meanwhile introduced with the help of the US Massachusetts Institute of
Technology two concept studies, the "Kiira EV Smak Car" and "Kayoola Solar Bus". While the Kenyan "development" is reminiscent of the technical status of the 2nd World War, set the Ugandan vehicles
conscious on renewable energy.

Although these backyard experiments also not likely to have the lowest commercial opportunities, they nevertheless serve currently as an excuse for protectionist import barriers, which resulted in imports are likely to be more difficult in favor of a local assembly of CKD kits.

Supply chains in Asia are in motion © Tokamuwi/ pixelio.de
08.03.2016

SUPPLY CHAINS IN ASIA ARE IN MOTION

  • Vietnam is largest beneficiary
  • Relocation closer to sales markets

Hong Kong (gtai) - For global consumer product manufacturers, Asia has developed an important role as a procurement region. Large parts of production have been displaced in recent decades into the region and here traditionally mainly to China. The rising costs in China however lead to a strategy adjustment. Thus the production moved on to cheaper locations and a shift back closer to the end customer began. Free trade arrangements support this trend.

  • Vietnam is largest beneficiary
  • Relocation closer to sales markets

Hong Kong (gtai) - For global consumer product manufacturers, Asia has developed an important role as a procurement region. Large parts of production have been displaced in recent decades into the region and here traditionally mainly to China. The rising costs in China however lead to a strategy adjustment. Thus the production moved on to cheaper locations and a shift back closer to the end customer began. Free trade arrangements support this trend.

Labor costs in China will not move down again. Even when the economic growth increasingly weakens, China's coastal regions are already often too expensive for wage-intensive productions. The world's largest location of the manufacturing sector will anyway leave its dependence of exports and will generate more growth through domestic consumption. The remaining companies are therefore increasingly focused on Chinese customers. Has the textile industry heard the signals already several years ago and shifted away, now the electronics companies have started to search.

But – the relocation of production is not so easy, the experts agreed upon at the discussion panel Shifting Supply Chains in Asia on the Asian Financial Forum (AFF) in Hong Kong. Because no country, except India, offers such a workforce. But neither the infrastructure and the investment climate can match, nor the country has any interest in low-production stages. Furthermore China has set up a supply industry without any comparison.

Relocation trends slow down

Even Bangladesh, established for a long time as a cheap location for clothes, is losing its attractiveness - experts say. Besides fundamentally difficult production conditions especially scandals like collapsing factories are responsible. No western clothing manufacturer likes to be associated with that repute today. While Indonesia was generally judged for being rather little investment friendly, the Philippines would provide a better reputation than years ago. So in addition to numerous Japanese producers also German companies have moved from southern China to the special areas of the Philippines.

Due to wage cost increases by an average of 15% per year, China with it’s the low-wage area has catapulted itself in a large extent out of the market. In times of rising productivity this was compensated for a while but at last the model came to its limits. The empire of the middle will therefore make the leap to a consumptionbased growth based on production of high-tech and on the provision of services. It is still
unclear whether this leap across the "middleincome trap" will succeed. Many emerging countries are caught in this trap, and the growth is flagging.

German buyers order less in China

Accordingly German retailers are increasingly reducing their imports from China and buy more and more in other countries. This is the result of a member survey of the Foreign Trade Association of German Retailers (AVE), at which for the most part textile and shoe retailers participated. 80% of the respondents have already reduced their import volume from China in 2015, 90% of the companies said they are
planning to source from other supply regions. The merchants are seeing a shift to countries like Myanmar (78%), Bangladesh (67%) and Vietnam (56%).

Vietnam, which already benefited in recent years from the relocation, was still recommended on the AFF as a top location. The country with the highest economic growth in Southeast Asia in 2015 would have risen in the 1st half of 2015 to the fourth-largest exporter of textiles, the Vietnam National Textile and Garment Group (Vinatex) analyzed. For shoes it is already the third largest supplier worldwide. Based on mega investments from Samsung, now the electronics industry came out of the starting blocks and should attract more activities. Experts cite especially the mixture of young, growing populations with low labor costs as an important locational advantage.

Vietnam benefits from Free Trade Agreements (FTA)

A thrust Vietnam's attractiveness currently receives through free trade agreements which are in a final stage. So a free trade agreement with the European Union was signed in December 2015 which was followed early February 2016 by the Trans Pacific Partnership (TPP). The latter agreement, which includes next to ten other Pacific neighbors the United States, should bring a large benefit for Vietnam. For the Vietnamese consumer goods manufacturers the US is the most important market, the large retailers in the United States can move their procurements very fast.

As an underdeveloped member Vietnam is likely to get larger portions of the value chain in the textile and electronics area at the ratification (and even before). The country is still missing a developed supplier structure. This is just happening to be built in the textile sector, there are investments in capacity for yarns, fabrics and dyeing going on. For Samsung, the largest foreign investor, all components are still coming
from China. And only when a large proportion of the added value comes from TPP member states, the low duty will become applicable.

While the purchasing power is not quite so big in Europe, costs play an important role also there. But next to it the control of the supply chain and the flexibility has developed a greater role, rapid changes of trends and collections are determined by customers and the Internet. Therefore also here a shift back, closer to the markets, has begun. Romania and Bulgaria have established themselves in the middle of
Europe as a "low-wage locations". But even there the population is characterized by aging. Accordingly labor forces will become scare and wages will rise. Ukraine is traded as a new location.

Africa still with small potential

Little potential the experts from the Supply Chain Panels evidence the location of sub-Saharan Africa. This was tested by some buyers or producers, but the results would not be convincing. The views however diverge. Some Chinese companies are already partly on site and American manufacturers are monitoring the further development. So, for example, the VF Corporation, the largest denim retailer in the world, is buying in Africa. Only Ethiopia would have potential - according to a representative. But the infrastructure, investment climate and working morale could not be comparable.

So - basically serious alternatives to the established locations are lacking. Therefore, due to the scarcity of labor, costs and thus the final prices will rise. Even in Vietnam the minimum wage increased by 15% in 2015. But when it will be hardly possible to turn at the purchase screw, the companies need to position themselves better in marketing and sales, so a large clothing buyer. Therefore social media must be used in order to come closer to the customer and, for example, to develop individualization as a selling point.

The buying hotspots for clothes for the upcoming years (survey early 2015)
Country Named among the Top-3
Bangladesh 48%
Vietnam 33%
India 30%
Myanmar 30%
Turkey 30%
PR China 23%
Ethiopia 13%
Indonesia 10%
Egypt 5%
Sri Lanka 5%
Tunesia 5%

Source: McKinsey survey of chief purchasing managers

CZECH TEXTILE AND CLOTHING INDUSTRY INVESTS © W. Behrends/ pixelio.de
01.03.2016

CZECH TEXTILE AND CLOTHING INDUSTRY INVESTS

  • 2015 Sales reached eight-year high
  • Particularly manufacturers of technical textiles successful

Prague (gtai) - The Czech textile and clothing industry is still on the upswing. Particularly in niche segments and with technical textiles the manufacturers achieve rising revenues since years. The investment climate in the sector therefore has been improved, the equipment suppliers are benefitting. German manufacturers of machinery for the textile and clothing industry were able to expand their exports to the Czech Republic in 2015 by one fifth.

  • 2015 Sales reached eight-year high
  • Particularly manufacturers of technical textiles successful

Prague (gtai) - The Czech textile and clothing industry is still on the upswing. Particularly in niche segments and with technical textiles the manufacturers achieve rising revenues since years. The investment climate in the sector therefore has been improved, the equipment suppliers are benefitting. German manufacturers of machinery for the textile and clothing industry were able to expand their exports to the Czech Republic in 2015 by one fifth.

With Czech Crowns 52.4 billion (Kc; EUR 1.9 bn) the Czech textile industry achieved so much revenue in 2015 as not anymore in the last eight years. According to the statistics office the clothing manufacturers output rose by 11%, that of textile manufacturing by 3%. Very good filled are the order books. For companies in the clothing industry the volume of new orders rose by over 13% in 2015, in the textile factories
by 4%.

According to the announcement of the professional association ATOK, the sector would have developed even better, if the growth markets in Asia and Africa would have not weakened. But fortunately the loss became offset by the traditional markets Germany, Italy, Poland, Slovakia, Austria and France. According to ATOK the textile segment of the Czech Republic exported goods worth equivalent of almost EUR 2.5 billion in 2015, corresponding to a trade surplus of almost EUR 30 million. In clothing, the country recorded a negative balance. Here goods were imported for Euro 2 billion and exported of EUR 1.3 Billion.

Sales Development of the Czech Textile and Clothing Industry
Year Sales in Kc bn. Change to previous year (in %)
2007 55.0 1.5
2008 46.1 -16.2
2009 41.1 -10.8
2010 41.3 0.5
2011 46.2 11.9
2012 45.9 -0.6
2013 47.1 2.6
2014 51.0 8.3
2015 52.4 2.7
2007 55.0 1.5

Source: Association of Textile, Garment and Leather Industry (ATOK, http://www.atok.cz)

Particularly in niche segments the clothing manufacturers can maintain themselves in their position. For example Triola from the northern Bohemia Horni Jiretin specializes in lingerie and successfully with oversizes. Also manufacturers like Timo, Pleas, Upavan or Linia can exist with underwear products on the market. According to reports from the business paper Hospodarske noviny Timo sells 200.000 pc. per year. The company offers among others prosthetic lingerie against breat tumors.In the next two years the family operation will invest more than EUR 700,000 in new technologies at the production site Litomerice (North Bohemia).

Hats and hoods are demanded in 30 countries

Another family company, Kama from Prague, specializes in headwear. With hats, scarves, headbands, gloves or hoods it makes now more than EUR 1 million per year and delivers to 30 countries. In Moravia-Silesia Sky Paragliders from Frydlant nad Ostravici invests around EUR 4 million in a weaving mill including a research center to develop new materials. The company produces emergency parachutes and rescue systems and belongs with annual revenues of EUR 2.7 million (2014) to the top ten manufacturers worldwide. It processes 200 kilometers of fabrics annually.

Thanks to favorable wages and the proximity to areas with good purchasing power smaller suppliers of made to measure products developed well. The company Janek from Roznov in Zlin produces,for example, 30,000 individually tailored shirts per year. Also suits and costumes belong to the assortment. Janes buy the yarn from a German yarn manufacturer which produces in the Czech Republic.

Czech Republic's largest textile and clothing manufacturers (selection, sales in million Kc) 1)
Company/location Product portfolio Sales
2013
Sales
2014
Change
1)
Webseite
Borgers CS/Plzen Nonwovens for
automotives
5.038 10.879 115,9 http://borgers.cz
Juta/Dvur Kralovenad Labem Nonwovens for
automotives
5.568 6.618 18,8 http://www.juta.cz
Nova Mosilana /Brno Fancy dress fabrics 2.952 3.285 11,3 http://www.novamosilana.cz
Pegas Nonwovens/Znojmo Nonwovens 2.273 2.388 5,1 http://www.pegas.cz
Kordarna Plus/Velka nad Velickou Corduroy fabrics
Technical Textiles
for conveyors
2.195 2.287 4,2 http://www.kordarna.cz
Veba, textilni zavody/Broumov Home – and Clothing
fabrics, Brocat
2.124 2.160 1,7 http://www.veba.cz/cs/
Johnson Controls/
Strakonice 2)
Seatcovers for
automotives
1.722 1.865 8,3 http://www.johnsoncontrols.cz
Fibertex Nonwovens/
Svitavy
Nonwovens 958 1.128 17,7 http://www.fibertex.com
Pleas / Havlickuv
Brod
Under – and Nightwear 1.073 1.123 4,6 http://www.pleas.cz
Mehler Texnologies/
Lomnice nad
Popelkou 3)
Fabrics for tents,
boats, canvas, sunumbrellas
895 975 8,9 http://www.mehlertexnologies.
cz
Nejdecka cesarna
vlny/Nejdek 4)
Processing of rawwool 800 692 -13,5 http://www.ncv.cz
Lanex/Bolatice Ropes, threats,
artificial turf
627 670 6,7 http://www.lanex.cz
Trevos/Kostalov Polypropylen-
Staple-fiber
576 639 10,9 http://www.monticekia.cz
Tessitura Monti Cekia/
Borovnice u Stare
Paky
Cotton shirt fabrics 609 568 -6,7 http://www.monticekia.cz
Svitap J.H.J./Svitavy Tents, canvas, Microfibers,
Filtration
497 436 -12,3 http://www.svitap.cz

1) Change 2014 / 113 in%; 2) Fiscal year October 2012, 2013 till September 2013, 2014; 3) December 2012, 2013 till November 2013, 2014; 4) April 2013, 2014 till March 2014, 2015
Sources: Annual company reports, Trade register, Hospodarske noviny, Magazine Ekonom, CzechInvest, Association ATOK

The most actively trading companies in the textile sector are producing mostly for industrial consumers. Largest industry representative is the automotive supplier Borgers from Bocholt, which produces textile moldings, paneling, insulation and curtains for vehicles at four locations near Plzen. The second largest textile company Juta achieves half of its revenue from construction materials such as drainage mats, erosion control fabric or roof insulation. Moreover Juta makes a good business with packaging nets for potatoes or Christmas trees. One other growth area is artificial turf. The company invests nearly EUR 20 million every year, mainly in new production equipment.

Textile Machinery ordered for 250 m Euro

Other companies are expanding too. The manufacturer of workwear Waibel has expanded its site in2015. In Zdar nad Sazavou near Jihlava own collections and custom made programs are being manufactured. Clothing manufacturer Pleas invests annually over EUR 1 million in its equipment. The company belongs to the top 10 of the sector and produces annually 15 million pieces nightwear for the brands Schiesser and Pleas. The German machinery manufacturer Mayer & Cie. builds a factory for knitting machines in Vsetin. The production is expected to comence in summer 2016. The machines are designed for large manufactures particularly in Asia.

Import of important textile machinery to the Czech Republic ( EUR 1,000)
Maschinery group / HS-Position 2014 2015 Veränderung in %
Jet-spinning machines / 8444 177 15.369 8.583,1
..from Germany 59 9.829 16.559,3
Spinning machines / 8445 12.780 8.838 -30,8
..from Germany 6.591 5.017 -23,9
Weaving machines / 8446 13.357 12.778 -4,3
..from Germany 7.498 2.166 -71,1
Knitting machines / 8447 10.556 11.332 7,4
..from Germany 2.872 6.092 112,1
Auxiliary machines / 8448 75.082 72.178 -3,9
..from Germany 48.245 51.765 7,3
Machines for felting and nonwovens / 8449 3.349 16.306 386,9
..from Germany 949 6.741 610,3
Cleaning-, dying and ironing machines / 8451 83.874 105.825 26,2
..from Germany 44.671 50.234 12,5
Sewing machines / 8452 14.718 17.834 21,2
..from Germany 4.780 6.319 32,2
Machines for leather and fur processing resp. footwear production /
8453
2.867 3.704 29,2
..from Germany 278 347 24,8
Total 216.760 264.164 21,9
..from Germany 115.943 138.510 19,5

Source: Czech Statistical Office

Shoes must glitter in winter 2016/17 © Messe Düsseldorf GmbH / ctillmann
16.02.2016

SHOES MUST GLITTER IN WINTER 2016/17

Paint, glitter and metallic effects should provide the highlights at the foot in the coming autumn / winter 2016/2017. In addition, deep shades of red and the trend color cognac and camel. Otherwise it is said: more volume, more profile. Androgenic shoe types conquer the shoe racks.

Paint, glitter and metallic effects should provide the highlights at the foot in the coming autumn / winter 2016/2017. In addition, deep shades of red and the trend color cognac and camel. Otherwise it is said: more volume, more profile. Androgenic shoe types conquer the shoe racks.

While the chilly autumn weather in September and in the first half of October still brought good sales for winter shoes and boots, the mild November and December thwart the retailers bill. Especially snow shoes and boots became shop keepers at many places, especially small and medium size enterprises had to record a decline in sales. Although the online trade had to fight with the same weather conditions, initial figures however indicate, that the online shoe trade was able to register last year a sales growth of around seven percent. The stationary trade is looking for new concepts, is even more intensely dealing with its assortments and suppliers and aims to react therefore with a proper weighting of new footwear trends. Many traders took advantage of the just ended GDS shoe fair in Dusseldorf in order to learn about the new trends for autumn / winter 2016/17: The hippie look with its inspirations from the 1970s finds its continuation. Folkloric elements are implemented with much attention to details: fringe, fur, embroidery and patchwork will be found not only on shoes but on boots as well. Velvets, animal prints, tapestry, floral or abstract patterns enhance the detail-note of the theme. Snake prints are found not only subtly used as an ornament, but all over the entire shoe. Pumps and ballerinas are interpreted feminine with curved heels. Hip, although probably not a bringer of numbers, the overknee, to be carried with the tunic dress.

Trendy remain androgynous types of footwear such as Budapest, Broques, Monks and Loafer, that are perfectly suited to types of trousers as the culotte and the new over long pants. Their soles are partly very distinctive but extremely light. Loving details such as perforations, tassels, straps ensure modernity. The new bootees convince thru reduced optics and different shaft heights: They range from almost ankledeep over classic variants to medium-high boots which are worn narrow to the leg. Copped and round boot strips stay, new are square forms. At heels block-heels and slightly tapered shapes are in vogue, the soles are ultra-light and come in their fashionable variants as plateau or wedge soles.

The sneaker is an indispensable part of the shoe closets and remains unbeatable in the coming autumn / winter. In the new season it will appear cleaner and with fewer details. Tone in tone leo, metallics and suede will be mixed with a little paint, which gives the new sneakers an extravagant touch. Matt-gloss and 3D effects give the sneakers a high fashion look. For the colder months the sneaker comes in a material mix with fur and a warm interior design. Neoprene, mesh and leather produce in combination with 3D printing a new trendy image. Side zipper, damping and padding ensure greater comfort. For the soles lightweight, flexible PU or mix variants remain important. Fashionably are darker soles or soles in a dirty look in addition to the white and light soils.

In the new season the classic black and will not disappear from the shoe cabinets, even though black will not be traded as the ultimate trend color in the new season. Buying impulses should be given by stone, timber and mineral tones as well as cognac and camel, rust and deep shades of red and khaki, olive and denim tones. Color gradients and strong contrasts create a new appearance. Gloss and glitter are back in the trend, through glittering colors as well as through pearls and strass.

The choice of materials by the designers for the new shoe fashion is versatile as seldom before, they like to mix in the new season: animated, soft qualities with haptic and structure, next to very clean, smooth qualities. It will be patched, stitched, printed, embossed, patterned and flocked. The trendy shoe materials include leather qualities in natural optics, often with noticeable grain pattern. Lizard embossments are back in vogue, especially crocodile and python. Soft suede and nubuck qualities are a must. Exceptional finish effects and fantasy embossments are very trendy. 3D is not just an issue for new high-tech qualities,
but can also be seen as brocade, bouclé, lace or jacquard pattern.

Rapidly growing German Fashion Export to China © Maclatz/ pixelio.de
09.02.2016

RAPIDLY GROWING GERMAN FASHION EXPORT TO CHINA

  • Volumes considerably upgradeable
  • Italy loses Top Position to North Korea

Beijing (gtai) - Chinese consumers appreciate German goods from cars to saucepan. Fashion "Made in Germany" is only now discovered. German providers benefit from the good image of their country of origin - and from the desire of the growing middle class to afford something "good". Local production usually has a rather bad reputation. However there is a lack of presence, German brand names are hardly known. Despite the high growth rates the sales potential is by far not yet exhausted.

  • Volumes considerably upgradeable
  • Italy loses Top Position to North Korea

Beijing (gtai) - Chinese consumers appreciate German goods from cars to saucepan. Fashion "Made in Germany" is only now discovered. German providers benefit from the good image of their country of origin - and from the desire of the growing middle class to afford something "good". Local production usually has a rather bad reputation. However there is a lack of presence, German brand names are hardly known. Despite the high growth rates the sales potential is by far not yet exhausted.

German Fashion in the PRC is coming: according to Chinese custom statistics in the first ten months of 2015  Chinese purchases from Germany of knitted and crocheted clothing and garments (HS-Pos. 61) rose by a whopping 31.8% and by 5.1 % in other apparel and clothing accessories (HS-Pos. 62). This is all the more remarkable because the total imports for clothes grew in the same period by 3.6% only, - and China across all sectors even recorded a stately import reduction by 15.7%.

But a sales volume of USD 5.6 million USD of a total import of products of these HS headings of USD 4.9 billion is rather negligible. In fact, German fashion brands, with a few exceptions such as Hugo Boss and Escada, are yet barely visible in the PRC. A really good positioning was reached by Adidas only.

Main delivering country for the PRC was Italy until September 2015, its highly quality textiles and clothing are greatly appreciated. It shipped in the first ten months of 2015 sector products worth USD 688.7 million. However, given the ongoing austerity and anti-corruption policy the Italian imports tend downwards significantly (-11.6% compared to the same period last year).

Luxury purchases are shifted abroad

The Shanghai Daily wrote in October 2015, Chinese luxury purchases have been shifted to abroad at two-thirds since 2012. In Paris, Milan, London, New York or Tokyo one can buy anonymously and also cheaper than on the mainland. In addition, there is a trend away from the "quasi everywhere" available "big names" to new, less known, more individual designers.

At least there seems to be a still unabated propensity abroad: For example, the Financial Services Global Blue reported an increase in tax refunds of Chinese tourists in August 2015 of 65.6% (July: + 73%) compared to the same month of the previous year.

Detached from the top position was Italy in October from Korea (Dem. P.R.) with USD 663.9 million. On the third and fourth place follow Vietnam (USD 587.5 million) and Bangladesh (USD 364.7 million). The success of these three countries is probably due to an already shifted production capacity of Chinese manufacturers, which bring their products back to China to sell them there.

Chinese imports of clothing
(in USD million, change in % compared to the previous year period)
HS-Pos. Designation 2012 2013 2014 January til
October 2015
Change
61 Apparel and clothing accessories, knitted or crocheted, coming from 1,344 1,666 2,067 1,894 9.9
  .Vietnam 87 169 242 280 39.9
  .Italy 231 267 296 226 -8.2
  .Bangladesch 63 89 144 146 20.2
  .Korea (Dem.) 67 88 119 139 34.3
  .Germany 5 2 2 2 31.8
62 Apparel and clothing accessories, not knitted or crocheted from 2,664 3,141 3,559 3,034 0.1
  .Korea (Dem.VR) 373 499 622 525 -4.8
  .Italy 514 577 631 463 -11.6
  .Vietnam 154 236 310 307 18.9
  .Bangladesch 90 142 191 219 30.7
  .Germany 5 4 4 3 5.1
  Total 4,009 4,807 5,626 4,927 3.6

Source: China Customs

As in many other areas of consumer goods in the “Dress-Question” Germany does not utilize its opportunities on the Chinese market. According to sector insiders “here could happen much more" - not least because of the excellent reputation that the label "Made in Germany" enjoys among Chinese consumers.

The recommendation is - and this was repeated on the last "Chic" once again -   to see China not only as a procurement market but increasingly as a sales market too. In the words of a German leather jacket provider: "Twenty  years ago we bought leather from China, now we sell leather to China."

"Light Luxury" demanded

The "big" Italian or French brands such as Gucci, Armani or Chanel remain inaccessible for the most. Fashion "Made in Germany" can cover a niche in the medium price range that is affordable for the growing urban middle class, that also would like to buy "something international" and has come to appreciate German products from automobiles to saucepan. For them German fashion is not for luxury, but for good execution respectively processing and good material. At the same time other competitors are active in this field. In a similar notch for example, the Dutch men’s wear supplier Suitsupply abuts, which opened in Shanghai in the summer. 

Fake products are not an alternative for this clientele. In fact, the Chinese consumer does not make its decision for a German product due to the low price, but rather by the desire to acquire a piece of excellent quality. This then may cost something and stands out from the mainstream, whether through innovative materials, unusual combinations of materials, individual or humorous cuts or by a special design. Increasingly demanded are accessories such as matching belts, bags or shoes. As a micro-trend in the younger generation applies also wearing hats - and who wants to leave is going to the popular Octoberfest in a real Dirndl.

Sales price at least three times the purchase price

German manufacturers take advantage from the "demographic factor": the Chinese society is aging rapidly. Accordingly the demand is shifting away from "more funky and young" goods towards timeless, trendy-fashionable, quality orientated clothing, which then may be slightly more expensive - and it de facto also is. Experiential German import goods become more expensive due to transportation, customs and usual trading margin up to at least three times the buying price.

However, as successful niche products yes, - for the masses German goods therefore are not suitable. This may apply to lovingly designed eco-slippers as well as for trendy hats or quality handbags in a "Light-luxury segment". Not seldom the one or the other gap in the market can only be detected by local presence - so for example - each country has its own "house shoe culture", with which one must learn to deal with as a provider.

According to the experience of many exhibitors, sometimes Chinese buyers like with high standards masterfully crafted products even more than the Germans themselves. Moreover it is advantageous, to be able to offer customers next to the actual product, "a story". So it absolutely impresses, when a company is family-run by the fourth generation - or high craftsmanship can be documented with a film.

Chinese textile and clothing industry © Walter Babiak / pixelio.de
02.02.2016

CHINA'S TEXTILE AND CLOTHING INDUSTRY IS ORIENTATING TOWARDS NEW

  • Creating local branding
  • Gradual relocation towards abroad

Beijing (gtai) - Away from cheap mass production or relocation are the alternatives for the Chinese textile and clothing industry. A domestic "Go-West" does probably not pay off in the long term, the migration however to Southeast Asia has already started. At the same time German quality suppliers expect new sales opportunities if the companies strengthen their competitive position through more quality. This became clear at the last "Intertextile" October 2015 in Shanghai.

  • Creating local branding
  • Gradual relocation towards abroad

Beijing (gtai) - Away from cheap mass production or relocation are the alternatives for the Chinese textile and clothing industry. A domestic "Go-West" does probably not pay off in the long term, the migration however to Southeast Asia has already started. At the same time German quality suppliers expect new sales opportunities if the companies strengthen their competitive position through more quality. This became clear at the last "Intertextile" October 2015 in Shanghai.

The Chinese textile and clothing industry is under massive pressure of costs. Away from cheap mass production or relocation is the need of the hour. Until now the industry is primarily located at the Pearl River and the attached Yangtze River Delta, where wages on average are the highest nationwide. According to the China National Garment Association (CNGA) about 70% of the production volume account for the five provinces of Shandong, Jiangsu, Zhejiang, Fujian and Guangdong.

Supported by the policy is the move to the more favorable central and western provinces. This happens not least to the preservation of local jobs and the development of the far less booming regions of the country. In this sense not only the CNGA endorses the relocation of clothing manufacturers to Xinjiang. In the western province 30% of the cotton of the country is grown, which with 6.2 million tons in 2014 is the largest cotton producing area in the world. After association investments the authorities are planning investments amounting to USD 3.2 billion, amongst other things for the establishment of "Textile Industry Parks".

Another attempt to shift the Chinese textile industry from the coast to the west, represents the Ningxia Ecological Rextile Industrial Demonstration Park, which was opened in December 2014. According to China.org.cn by 2020 here about 50,000 people work should be working there in the textile industry.

"Go West" is not attractive for private textile and clothing companies

To which extent these efforts will be successful remains to be seen. However, said by a Chinese businesswoman, "Go West" at best will be a medium-term solution, because also there sooner or later the wages would rise (not to mention the already there noticeable higher logistics and other costs). If to move, then only to permanently cheaper overseas locations. A migration to Vietnam, Bangladesh or Cambodia is already going on. But the fact is that so far a large displacement wave - at home or abroad - has not yet happened.

That Vietnam and Bangladesh have climbed in a few years to the third and fourth place of the main source countries for the PRC in terms of clothing (Vietnam: USD 587.5 million, Bangladesh: USD 364,7 each in the first ten months of 2015 for HS-Pos. 61 and 62), results very predominantly on already shifted production capacities of Chinese manufacturers. They bring their products from there back to China to sell them here.

Vietnam as a manufacturing site should also gain in the course of the in October 2015 successfully completed negotiations for the Trans-Pacific Partnership (TPP) trade agreement between the US and Vietnam in importance for Chinese enterprises. After coming into effect exports from Vietnam to the United States will be duty-free. In November 2015 for example was to read in China Daily, the Huafeng Co. of Shandong would be planning to build a textile mill in the Southeast Asian neighboring country with an investment of 700 million Renminbi (RMB - approximately 110 million USD, 1 USD= 0,157 RMB, the average rate as of November 2015).

Cambodia does not play in the foremost league yet, but pushes with power forward: During the named period, imports of knitted and crocheted clothing rose by 38.1% to USD 124.8 million (HS-Pos. 61) and other clothes (HS-Pos. 62) by 18.4% to USD 32.3 million.

However, for the relocation certain limits are set as the target countries often reach their capacity limits. Considered has to be the in China existing extremely advantageous integration of the various stages from cotton growing over the wide textile processing up to the final cutting and sewing of clothing.

Superiority in quality rather than relocation

Instead on a further relocation innovative companies and designers rely on an upgrading of their products. The aim is to serve more demanding customers in the Chinese market - and to position themselves abroad. To these belongs the fashion designer Ma Ke, who designs clothes for China's First Lady Peng Liyuan, or Guo Pei, who caused stir with her creation for the singer Rihanna at the Met Gala 2015 in New York.

Apart from individual stars of the scene also increasingly large companies such as the down jacket specialist Bosideng or the men’s wear designer Mark Fairwhale and Ningbo PeaceBird move away from pure volume production towards brand building and quality. Bosideng has even opened its own flagship store in London. The awareness of important Chinese brands such Heilan Home or Metersbonwe is still limited to local customers, for the majority of European buyers they are not a concept. But according to sector insiders this is likely to change, step by step.

Market share of the 10 most important suppliers for men’s wear in China 2014
Brand Country of origin Market share (in %)
Heilan Home PR China 2.9
Jack & Jones (Bestseller) Denmark (Tianjin) 2.4
Nike USA 1.0
Youngor PR China 1.0
Uniqlo Japan 1.0
Romon PR China 1.0
GXG PR China 0.9
Adidas Germany 0.8
Metersbowe PR China 0.8
Mark Fairwhale PR China 0.7

Source: China Daily based on Euromonitor

For German suppliers in terms of top materials (usually the most expensive materials), accessories (such as interlinings, buttons, thread, packaging) or also in cutting and sewing, China remains interesting. This was demonstrated once again at the last "Intertextile" in October 2015 Shanghai.

Two opposing trends are apparent: On the one hand exhibitors reported about a shift in demand to other countries in the wake of rising wages and ancillary wage costs. On the other hand suppliers of more expensive products can now look and hope beyond of inexpensive mass markets to the emergence of new niches, so a producer of woven-real hair fur materials. A provider of real horn buttons thinks similar.

The next "Intertextile" with a German pavilion takes place from October 11th to 13th 2016 in Shanghai ("Intertextile Shanghai Apparel Fabrics Autumn Edition"; information under www.auma.de or www.intertextile.com.cn).

Generally exhibitors recommend for risk diversification to build a second pillar next to the site in China. "The caravan moves on," is said. Currently the lowest wages for garment workers are being paid in Bangladesh, the country also benefits from duty-free agreements for imports into the EU. The latter also applies for Cambodia. Also very competitive the seamstresses are working in Vietnam and India. Moreover, Africa (specifically for example Ethiopia) will play an important future role, also a production facility in Korea (Dem.) is not outrageous for Chinese textile companies.

In general free trade agreements should get considerably more weight in future, as this is the case today.

imm cologne and LivingInteriors © Koelnmesse
26.01.2016

IMM COLOGNE/LIVINGINTERIORS A SUCCESSFUL START TO THE NEW YEAR FOR THE INDUSTRY

  • 80.000 trade visitors from 128 countries
  • Significant increase in visitors from Europe
  • 1,185 exhibitors from 50 countries
  • LivingInteriors dazzles with Smarthome

From 18 to 24 January 2016 at imm cologne and LivingInteriors, a total of 1,185 companies from 50 countries presented the trends in furniture and furnishings for the coming year. Buyers from the trade with decisionmaking authority made for a dynamic trade fair during the first five days. With around 80,000 trade visitors from 128 countries, the event recorded a slight increase (4.8 percent) in trade fair visitor numbers compared to 2014. The proportion of visitors from abroad was 46 percent (based on the trade visitor days).

  • 80.000 trade visitors from 128 countries
  • Significant increase in visitors from Europe
  • 1,185 exhibitors from 50 countries
  • LivingInteriors dazzles with Smarthome

From 18 to 24 January 2016 at imm cologne and LivingInteriors, a total of 1,185 companies from 50 countries presented the trends in furniture and furnishings for the coming year. Buyers from the trade with decisionmaking authority made for a dynamic trade fair during the first five days. With around 80,000 trade visitors from 128 countries, the event recorded a slight increase (4.8 percent) in trade fair visitor numbers compared to 2014. The proportion of visitors from abroad was 46 percent (based on the trade visitor days). The development in the number of visitors from overseas was positive, while the trade fair duo recorded an especially significant increase in the number of visitors from Europe.

"This outcome shows that imm cologne is unmatched as a business event for the global furniture and furnishings industry", said Gerald Böse, President and Chief Executive Officer of Koelnmesse, summing up the event.

"This is where the world comes together to do business, which offers a lot of new opportunities for export-oriented companies. At the same time, this fair duo has proved once again that business and creative inspiration are not mutually exclusive", Böse continued. "imm cologne was a wonderful furniture show and has got us off to a very successful start to the 2016 furniture year. With so many new products and ideas, innovations and great models in all price ranges, we are confident that the German furniture industry will achieve another increase in sales this year", added Dirk-Uwe Klaas, Managing Director of the Federal Association of the German Furniture Industry (VDM). This was confirmed by Hans Strothoff, President of the Federal Association of German Furniture, Kitchens and Furnishing Retailers (BVDM): "This year's imm cologne really stimulated a keen interest in furniture. Rarely has the mood in industry and trade been so positive as at this fair. Wherever you looked, only smiling faces and great optimism. imm cologne has really catapulted the industry into the new business year with a swing."

The atmosphere among visitors was characterised by business, networking and the search for trends. In the past few years, imm cologne has raised its international profile, not just among exhibitors, but also among visitors. 2016 saw a significant increase in buyers from Europe, primarily from the Netherlands, the United Kingdom, Spain and Austria. The event also registered a clear increase in the number of visitors from overseas, especially from the USA, China and India. Including estimated figures for the last fair day, a total of 120.000 visitors were inspired by the interior design worlds.

In addition to the products on show, the highlights of the 2016 trade fair once again included "Das Haus - Interiors on Stage", a walk-through simulation of a home, which was designed this year by Sebastian Herkner, and the "Smart Home" special exhibition at LivingInteriors, where numerous companies showcased solutions for a cleverly networked home that are already available today.

Trends at imm cologne/LivingInteriors 2016

Homes are becoming homier once again Cosiness and a feeling of security are increasingly important in the home. There is also a clear enthusiasm for new combinations. Along with furniture and decorations, accessories and home textiles that suit people's preferences when used individually are combined freely. The result is homes that are as unique as their inhabitants.

Mid-century design is booming
Across all product sectors, a striking number of furniture designs are reminiscent of those from the 1940s through the 1960s. These designs make efficient use of materials, have delicate features and are lightweight and above all smaller. The trend can be explained by the smaller living spaces available in city homes, though also by a general sense of nostalgia. Like an old friend, sleek mid-century furniture proves its value in uncertain times.

Natural materials are on the rise
Wood, glass, stone and metal: natural materials are particularly popular. In addition to the large proportion of wood used, for example in tabletops, chair and table frames, valuable natural stone is an increasingly common material in tabletops. Popular varieties include the European classic "marble" as well as exotic South American stone with particularly unique veining. The use of tree bark in wall decoration is another trend on the horizon.

The next imm cologne will be held from 16 through 22 January 2017 in Cologne - together with LivingKitchen, the international event for all topics related to the kitchen.