Textination Newsline

• Update on the economic situation of the industry
• Supply availability secured for the next half-year
• E-commerce wins in the crisis
• Sector survey of the Association of the German Down and Feather Industry VDFI and Traumpass e.V. on the occasion of the Corona crisis

The corona pandemic not only poses great challenges for each and every one of us, but also for our businesses as an industry. The decisions of the Federal Government and the federal states to close down shops and restrict freedom of mobility have hit the predominantly medium-sized down and feather industry hard, not only on the sales side, but also through their trading partners. The declining demand was compounded by the industry's international dependencies within the supply chains, since the filling material, the covers and the packaging materials are largely imported. The closure of the borders within Europe and the overall tense global logistics situation contributed significantly to the worsening of the situation.
 
In the past few days, the federal and state governments have started cautious attempts to ease the contact bans and to revive the economy with a sense of proportion. The opening of shops and the continuation of business activities prompted the down and feather associations to question the status quo of the sector with an extensive survey.

Although the companies named significant losses in their turnover, they currently still got off relatively lightly compared with other sectors. Two thirds of the companies stated that they had suffered up to 25% sales losses due to the corona crisis. Approximately 17% reported a decline of up to 50%, the ones with same percentage were much harder hit with a decline of up to 75%.

On the occasion of Heimtextil in January 2020, the association's sector statement had described the position of the specialised trade as still stable from the bedding manufacturers' point of view: By expanding the range of services, such as cleaning down and feathers or refilling existing bedding, the local store was increasingly becoming a point of contact for consumers. Supporting the advisory competence and the deployment of sleep experts made an impact. This picture has changed significantly as a result of the contact ban:

The clear loser in terms of demand on the various sales channels, caused by the shop closures, was the traditional retail: 92% of the surveyed manufacturing companies registered declining demand for the retail trade, 90% for the furniture trade and 80% for the specialty stores. Even for the discounters, whose opening hours were not affected, 33% noted a drop in demand; 44% estimated the demand situation as unchanged. The winner in the crisis was the e-commerce, although perhaps to a lesser extent than expected: 45% of the German down and feather producers recorded an increase in demand, 36% estimated the level as unchanged.

In terms of supply capability, the industry in Germany considers itself as well positioned: Two thirds see no bottlenecks for the fulfilment of closed contracts within the next three months, and the majority also offers free capacities beyond that. And 55% guarantee this ability to deliver even for the next six months, including the satisfaction of additional requirements.

While 2019 was a year of consolidation for the German down and feather sector and, after difficult months with sharply increased raw material prices, a calming down on a high level prevailed, good results from the previous year were maintained and, in some cases, even increased, the assessment for 2020 is much more pessimistic.

As far as the price situation for the coming autumn/winter season is concerned, member companies were correspondingly cautious in their forecasts.    
The unresolved and in some cases very fragile situation in the supplier countries currently not allows to make reliable statements. At the earliest in late summer, a well-founded opinion can be obtained. Especially since 45% of the companies expect to be confronted with requests for price reductions.
 
The down and feather industry is a professional when it comes to hygiene. The highest purity requirements are placed on down and feathers: Before being used as filling material, they must be cleaned by thorough water washing and dried at a temperature of at least 100°C, usually higher. This ensures that bedding meets the hygiene requirements of European Standard EN 12935 with reliably killing bacteria, viruses and other germs. In addition to the applicable standards, the companies have taken additional precautions to protect employees, trade partners and consumers.

In addition to the intensive workplace and hand disinfection, which all manufacturers have increased, the companies focused particularly on the equalization of the workforce. 73% designed home office workplaces for employees outside production, 45% introduced strict shift separation, two thirds shifted working hours and changed the use of common rooms in order to have as few employees as possible in the company at the same time and thus minimized the risk of infection. At the same time, many companies started the production of mouth and nose masks and made their sewing facilities available for this purpose. A list of the manufacturing companies is available from the Association of the German Down and Feather Industry VDFI e.V.

With the start of the lockdown, the German government had announced extensive financial aid, which focused on bridging payments for small businesses, granting loans, short-time work and tax deferrals. Improvements had to be made for small and medium-sized enterprises. In the recent weeks, the sector has not primarily addressed the question for bridging loans nor reducing the interest burden; emergency aid in the form of financial injections and non-repayable grants was also of interest only to one third. The majority of the association members concentrated on measures to secure liquidity (45%), tax deferrals and the suspension of advance payments of VAT (73%) as well as the changeover to short-time work (73%) and the accelerated processing and granting of short-time work compensation (45%). Also, two thirds requested binding statements on the easing of the contact ban and on the economic upturn.

An update on the industry survey is planned for late summer 2020.

• Staying on the pulse of textile development with the "Digital Fair"
• The virtual trade fair steps up to the starting block

Although the industry will not be meeting in person to share the latest trends in functional fabrics for the Summer 2022 season on April 22-23 in Munich, PERFORMANCE DAYS is still going to take place — in a new format! The organizers have responded quickly to the new situation and have created a virtual alternative to stay in touch with visitors, exhibitors and partners that enables them to share the innovations in the industry: the DIGITAL FAIR is born.

Even if a personal impression of the latest fabric trends for summer 2022 is not possible this season, interested "trade fair visitors" can still find all the important developments on the website www.performancedays.com.   

Visitors to the DIGITAL FAIR www.performancedays.com/digital-fair.html, can not only see the interesting fabrics at the popular PERFORMANCE FORUM, they can also experience everything a visitor could do at the real fair — just in digital form. Here is an overview:

SUPPLIER WORLD  
Initiating a contact has never been easier than it is now with the exclusive online profiles of each exhibitor. The curated exhibitors show their most important fabrics, as well as brand new videos of their latest products and expanded information. Visitors can get to know the suppliers digitally, make direct contact, and even order fabric samples online.  

COLOR TRENDS
Appropriately matching designer Nora Kühner’s webinar, the new color trends for summer 2022 will soon be available online as "early color information." The color chart for winter 2021/22 trends can already be ordered free of charge on the website.

EXPERT TALK WEBINARS
What about the lectures we look forward to attending at the fair? No problem! The Expert Talks will take place as webinars on April 22 and 23, 2020. The program agenda will be posted on the website soon. The webinars include a presentation of the fabric highlights of the PERFORMANCE FORUM by Ulrike Arlt, as well as a talk on the new color trends by Nora Kühner. If you register in time for the webinar, you will be able to ask questions during the talks. The webinars (less the interactive comment function) will be available online after the fair.

FORUM FABRICS, FORUM ACCESSORIES
The 240 best fabrics are shown by category along with the best accessories: The categories include a range from Baselayer to Outer Midlayer and 3-Layer as well as Safety & Durability fabrics. All products shown in the forum are sustainable — the materials,     
processing, and treatments! The products on exhibit at the PERFORMANCE FORUM have been carefully selected by the PERFORMANCE FORUM JURY, which, because of the current situation, met via video conference link. A written summary of the trends per category provides visitors a quick overview. Fabric samples can be tested and samples ordered all with one click. Two AWARD winners have been chosen and can be found in this area with all their details as well as all Jury Like fabrics and accessories.

FOCUS TOPIC
Visitors interested in the current FOCUS TOPIC can learn virtually about the current topic, which features natural fibers and natural functions like new yarn technologies and treatments. The theme "INSPIRED BY NATURE — FROM FIBERS TO GREEN TREATMENTS" summarizes facts and good-to-know information while letting you read up on the 24 best fabrics for this topic.   

SPORTSFASHION by SAZ
PERFORMANCE DAYS has put together a comprehensive opportunity at short notice so that visitors and exhibitors can get in touch with each other despite all adversity and exchange information about all the latest trends. The magazine SPORTSFASHION by SAZ as partner has produced an online edition of the DIGITAL FAIR that provides more details about the exhibitors and trends and can be viewed and downloaded as a PDF by all trade fair visitors and exhibitors for free.    

The next regular event is planned for October 28^th and 29^th in Munich.

The productivity of a laundry depends on unbroken process flows and transparent commodity streams. Thanks to increasing digitalisation and consistent integration of data, the through-put of textiles in laundries is being continually improved. The solutions required for automation in the sector are therefore a high priority at Texcare International, from 20 to 24 June in Frankfurt am Main.
 
The be-all and end-all for the laundry sector is the ability to monitor the quantity, quality and storage location of the textiles that are circulating on site, at all times. The data collected form the basis for precise price calculations, throw up any weak points in the system and serve to provide documentation for third parties. But it is only when all the machinery and plant involved in a given textile service are interlinked on a single network that the logistics of the laundry service run seamlessly, with minimal down-time of the machinery, reduced quantities in circulation and the resultant increase in productivity that is closely associated with it.

Transparent tracking for each individual laundry item
Automation in the processing of workwear is already well advanced. As the dirty laundry is sorted on arrival, each item is recorded using an identification system such as a barcode or RFID technology. From this moment on, all the stages that the textiles undergo are controlled. ‘Readers’ or ‘gates’ on the premises enable each item to be recorded as it progresses through the system, right up to the point of order picking; and they monitor whether an item is sent to a repair station or directed into storage. In addition, high-frequency transponders (UHF tags) can monitor the movements of laundry items outside of the laundry: in hospitals, for instance, identification systems have been installed, which record the despatch and return of apparel and enable an extensive process of textile management via data transfer procedures.

Robots for the soiled laundry area
This already high degree of automation in a workwear laundry facility is, however, capable of still further refinement. Artificial intelligence can simplify the ‘dirty’ work in the reception area: robots separate and sort the soiled clothing and x-ray machines, cameras and metal detectors are used to identify any foreign bodies. The advantages of such systems are particularly in evidence in hospital laundries: medical instruments, which regularly find their way into the laundry bags, are automatically separated from the clothing, thus minimising damage to the items themselves and to the machinery. The useful life of the textiles is extended and costs are reduced. Moreover, there is no danger of infection for the staff.

Real-time laundry processes
Whilst individual control and traceability are already widespread in the professional treatment of work apparel, when it comes to flat linen, often only generalisations about quantity, quality and storage location for the textiles are possible. “In order to assess a business’s efficiency, calculate prices and efficiently control processes and procedures, laundries need reliable figures […],” observes Martin Rauch, CSO of the Jensen Group, who operate on a worldwide basis.

In the pursuit of automated production, ultra-modern information and communications technologies assume a key role. They synchronise the machines involved in a given production process and facilitate communication and cooperation between plant, product and the human being. This way, you get self-organising, flexible production with unbroken processes and high levels of utilisation of equipment. With the synchronisation of commodity streams and information flow in the laundry, all items arrive at the right processing station at the appropriate time. A central database controls all the processes in the entire laundry, regulates the machinery and the linked sub-systems, chooses the correct processing programmes and optimises machine use.
 
Data accompanies the laundry throughout
“Trolleys of laundry standing around, waiting times at the machines, excessive buffering and time spent searching for items are all lost capital […],” says Matthias Schäfer, who is responsible for product management, laundry logistics / smart laundry at Kannengiesser (Vlotho).

When data and goods flows are successfully synchronised throughout a flat-linen laundry, each washing station contributes its information along with that of other stations, right from the initial sorting of the soiled linen through to the folding machines. The laundry can, therefore, be monitored throughout the entire operation, as the information from each station is sent on with the item, either automatically or – after the drier – in the form of bar-coded labels. (“Stabilisation of production through the synchronisation of material and production flows.”)

RFID identification systems do indeed enable complete transparency to be built into the passage of goods through the various stages, as each chip or tag carries the necessary information for each individual item. In view of the high cost of the transponders, ‘chipping’ of flat linen is, however, currently an option for only very few laundries. So the textile care sector is waiting on more economical, more functionally reliable solutions from the machinery and plant manufacturers.
 
Smart to the very end of the chain
Further potential for automation resides in the picking and packaging. Collecting together items for delivery manually is subject to error and that leads to customer complaints. With intelligent storage facilities and transport solutions, smart stacking management and the networking of equipment with the laundry’s information system, order picking becomes simpler, quicker and more reliable. To ensure that the integration can function, modern machines are equipped with interfaces, so that each new installation can be linked seamlessly into a laundry’s existing system. The same goes for accessory machines, which exchange all the important information relating to preparation and repair online.

User friendly apps
Digital developments are not only large scale: they are to be found on a smaller scale as well. For launderettes, too, apps provide important information on the status of the equipment, enable operators to see what is going on, even at considerable distances, as well as being able to provide digital payment models. Moreover, in heavily used laundry facilities, they can take on the entire job of time management, as Andreas Barduna, Head of Business Management, Miele Professional (Gütersloh) is very aware.

At Texcare International, from 20 to 24 June 2020, machinery and plant manufacturers from all over the world will be presenting their smart solutions for the laundries of tomorrow. The focus will be very much on artificial intelligence and smart information systems, which will help maximize the degree of automation within the sector.

TREND REPORT

• Winter sports trends for 2020/2021
• The winter sports industry is increasingly focusing on sustainability
• ISPO Munich (January 26 to 29) to showcase next season’s products

Health will be one of the next decade’s megatrends. The sports industry is, for its part, one of the growth drivers, not least because society now views fitness as a synonym for health. In the future, athleticism will have an ever greater bearing on our everyday lives.

“Medical fitness” refers to ensuring both a sporty lifestyle and the right medical care tailored to the individual needs. Winter sports are also set to assume a challenging yet important role in the future as a vehicle for teaching values within society. Veit Senner, Professor of Sports Equipment and Sports Materials at the Technical University of Munich, says: “Sports must be used as an emotional Trojan Horse for teaching skills and in particular for teaching values.”

There are also other challenges that will need to be faced in the next few years: Children and adolescents need to be encouraged to lead more active lifestyles and our aging population needs to be kept fit and mobile for as long as possible. Senner believes that winter sports could hold the key for today’s youth: “We need to demonstrate the kinds of educational content and values that can be taught through sports.” Attractive products and services therefore need to be created for children. The latest winter sports trends and pro ducts will be showcased at ISPO Munich from January 26 to 29.

Textile manufacturers are giving the winter sports industry an eco-boost
Swedish label Klättermusen impressed the ISPO Award jury so much with its first fully compostable down jacket “Farbaute” that they named it the Gold Winner in the Outdoor category and the winner of the ISPO Sustainability Award.

The first 100% biodegradable down jacket biologically decomposes on the compost heap after around three months (all apart from the zippers and a few snap fasteners which can be removed and reused).

When washed it does not release any microplastics into the environment. Norwegian clothing manufacturer Helly Hansen is launching a new membrane technology for winter 2020/2021 which can be produced without any additional chemicals. The microporous Lifa Infinity membrane is made using a solvent-free process and, together with a water-repellent Lifa outer material, provides extremely impressive protection from the elements. Helly Hansen’s new Lifa Infinity Pro technology also uses the spinning jet dyeing process whereby the color pigments are already injected during the fiber production process. This can save up to 75% water. What’s more, no harmful wastewater is produced.

The winter sports industry is increasingly focusing on sustainability
“The really big trend is for biopolymer fabrics and materials,” says Senner. “The idea is to replace the many different types of plastics that are used in the sports industry with biopolymers.” Together with his team, he is working hard to conduct in-depth research in both areas. This is a trend which French ski brand Rossignol has also identified, whereby it has focused on the use of raw and recycled materials for the production of its new Black Ops Freeride skis. The Black Ops Sender TI model was crowned the winner in its category by the ISPO Award jury.

Alpina Sports is also exploring new ecological avenues and launching a completely sustainable back protector made from 100% sheep’s wool, obtained exclusively from sheep in Switzerland and Norway. The back protector, which consists of three layers of pressed sheep’s wool, meets the standards for protection class 1 and boasts all the impressive properties that the natural material has to offer: In icy temperatures it remains supple, can both warm and cool the wearer, and is odorless. The ISPO Award jury chose Alpina Sports’ “Prolan Vest” as the “Product of the Year”* in the Snowsports Hardware category.

Swedish label Spektrum uses plant-based polymers made from castor oil as well as corn and recycled polyester for its ski and snowboard goggles. The ISPO Award jury was extremely impressed with both the ecological aspects and the execution and named the “Östra Medium” model the Gold Winner.

THE INSEPARABLE TRIO UNVEILS ITS NEW STRENGTHS
The next edition of Première Vision Paris, taking place from 17 to 19 September 2019 at Paris Nord Villepinte, will present the new materials and creative stimuli for the autumn-winter 2020-21 season.

This major event for all fashion industry players brings together, twice a year, the six principle activities in the upstream sector: yarns, fabrics, leathers, designs, accessories and clothing. 

In the spotlight: the pinnacle of sportswear, its influence on collections and the development of accompanying technological innovations and technical materials. To address these issues, which now permeate all of fashion, Première Vision’s Sport & Tech sector will be prominently featured at the next show. Located in the textile universe of Première Vision Fabrics, in Hall 6, it will bring together 80 exhibiting weavers - including 8 newcomers - to accompany brands and designers looking for inspiration. Their new products will be unveiled in a dedicated space, the Sport & Tech forum, designed around a core theme of «A matter of protection» (protection and innovation).
 
Sportswear gains ground, playing a major role in collections
The global sportswear market grew steadily between 2011 and 2016, reaching $280 billion in 2016¹. It has entered into consumer habits and is synonymous with comfort and technical expertise, as well as style and creativity. And France is no exception: according to a recent study², French consumers wear sport clothes 1 day out of 5, and 25% of consumers see the latter as a «trend». This growing phenomenon has a significant influence on the industry and on those who design and produce clothing and accessories, whether fashion brands using technical materials for their ready-to-wear collections or sports brands developing lifestyle lines. It was to best support these brands that Première Vision developed an offer specially focused on this area within its flagship event: Première Vision Paris.
     
Protection and insulation: technological contributions
Each edition, the Première Vision teams identify a strong theme based on their international research. As sport wear collections grow increasingly popular, the added performance and technology in these product lines is becoming ever more critical. Consumers have been able to try out the innovative features integrated in their sport apparel for several years now, and expect the same functionality in their everyday clothing. «A matter of protection» has thus been selected as the season’s theme for the Sport & Tech sector. A fashion theme that will be particularly highlighted in the dedicated forum, which will present a broader offer of fabrics and high-performance materials from the show’s weavers, knitters and finishers to meet the needs of industry professionals.

Marguerite Coiraton, Show Manager of Première Vision Fabrics and in charge of the Sport & Tech trail, added: « The September 2019 edition is particularly interested in how clothes are used to protect against the elements, a theme which will certainly dominate the autumn-winter 20-21 collections. This concept encompasses, for example, insulation, with the development of thermo-active materials, fabrics and fibres equipped with nanotechnologies, and intelligent augmented protection».

In addition to the dedicated sector within Fabrics, Première Vision also offers a Sport & Tech itinerary - available on the show app - bringing together nearly 700 exhibitors specialised in sports and technical materials who can be found at the show. This complete panorama comprises spinners, weavers, knitters, tanners, accessory makers, textile designers and fashion manufacturers.
 
SPOTLIGHT ON: A preview of a selection of Sport & Tech exhibitors

• Polartec: an insulation solution used by outdoor sports enthusiasts for nearly twenty years, Polartec® fabrics come in a variety of textures and weights and are specifically designed to improve performance in a wide range of environments;
• Pontetorto SportSystem: founded in 1952, Pontetorto offers a wide range of products from polar fleeces to stretch fabrics, including multilayers, windproofs, waterproof membranes and breathable materials;
• Schoeller textiles: a Swiss company specialised in developing innovative textiles, especially warm and resistant fabrics. ‘Cosmopolitan’, its multifunctional collection, perfectly meets the growing demand for high-performance style, with fabrics where outstanding performance features do not preclude a natural feel and perfect comfort;
• Swing by Gruppocinque: an Italian fabric manufacturer using innovative technologies and finishings such as resins, membranes and high-performance treatments;
• Mackent: has an offer of highly original textiles with a focus on shock-absorbing spacer knits for lingerie/ ready-to-wear pieces;
• Sportwear Argentona: a Spanish brand specialising in fabric manufacturing, is presenting its ‘2.0 fabrics’ with excellent breathability and high comfort. These are adaptable, lightweight, elastic, compressing with an innovative aesthetic.
• Global Merino: a maker of technical textiles using merino wool as a base product. It identifies the performance requirements of the item to be created and develops the fabric according to the end use;
• Shepherd: a vertically integrated producer of merino knits and apparel, including the world’s finest 13.5-micron merino fabric.

New performance codes to better identify innovation
4 new Performance Codes will be introduced at Première Vision Paris in September 2019:  

• Downproof, to indicate which fabrics will properly block feathers in quiltings;
• Multilayer, used very often for fabrics for the world of sports performance;
• Washable, for wash-resistant leathers;
• Ultralight, used exclusively for accessory components.

A varied and experiential Sport & Tech universe
A.    A virtual reality experience so visitors can fully immerse themselves in the theme
To offer visitors a live experience, Première Vision has designed a digital animation about the theme of protection. Using virtual reality, it is designed to expose visitors to a variety of environments and external elements (cold, wind, etc.).

B.    Dedicated fashion information
Protection doesn’t preclude creativity and style, in fact quite the opposite is true. This season will be marked by fantasy, with materials combining strong colours, prints, motifs and shine. Visitors will thus find an exclusive and creative Sport & Tech forum, built around the following 4 themes: Tech Tailoring, Ski Touring, Soft Outdoor and Snow Fun. It will bring together samples, components and clothing prototypes.

C.    A comprehensive and high-level conference program to help guide visitors in their choices
This edition, the conferences will be held in very central locations at the show. A space in Hall 3 will host the conferences focusing on innovation, and a space in Hall 6 will be reserved for conferences on fashion trends.

Here are some of the upcoming presentations dedicated to the world of Sport & Tech (Hall 6 conference space) taking place at Première Vision Paris September 2019:

• A conference by Pascal Monfort, founder of the REC trendsmarketing consulting firm, on the theme «The sport & fashion couple: more than ever inseparable!»;
• The presentation of a study on sport and fashion conducted in the French market by Union Sport & Cycle, which assessed the expectations of 12,500 consumers;
• Conferences decoding the fashion trends: « Performance, the challenge in fashion » and «Fashion & Sports major influences and innovations for AW 2021» including exhibitors’ pitchs to present their latest innovations.

Sources : ¹: Euromonitor International, ²: « Union Sport & Cycle » Study

After just a few seasons (since the founding of MBFW), Berlin has established itself as one of the top 5 fashion sites worldwide with up to 70,000 visitors, more than 30 fashion shows during the Fashion Week as well as numerous trade shows, events and showrooms.
In 2018, around 200,000 people came to visit the Fashion Week, further fueling the city’s economy with up to 120 million euros. The broad range of Berlin’s fashion sector offers everything. from high-end couture and tailoring to eco-fashion and streetwear, from single pieces to collections. Green Fashion and Upcycling are becoming increasingly important; more and more fashion labels in Berlin concern themselves with production according to ecological standards. Neonyt as well as other major trade shows are showcasing numerous brands of the Eco-Portfolio.
 
 

MBFW

In July 2019, MBFW will showcase its fashion-focused, approachable concept according to the new claim „Follow MBFW – Focus Fashion“. Within the modern and digital format that successfully launched in 2018, Mercedes-Benz and creative agency NOWADAYS band together to further strongly promote Berlin as fashion location and offer an attention-drawing platform for upcoming designers as well as established fashion brands to present their collections twice a year. The collections for Spring/Summer 2020 will be presented at ewerk located in Wilhelmstraße, Berlin-Mitte. With its raw industrial look, the location offers excellent conditions to create an authentic atmosphere where high-end fashion is the centre of attention. Within the new concept, MBFW focuses on remarkably staged presentations by a selected number of designer labels and brands in one location. Fashion interested end-consumers have the chance to watch all MBFW shows live at the forecourt of the venue or follow via digital channels like the website www.mbfw.berlin or on Instagram: @MBFW.berlin.

Monday 1.7.2019 – Wednesday 3.7.2019
LOCATION ewerk Berlin
Wilhelmstraße 43
10117 Berlin
CONTACT buero@mbfw.berlin
WEB  www.mbfw.berlin    

PREMIUM INTERNATIONAL BUSINESS PLATFORM FOR ADVANCED CONTEMPORARY FASHION

Begun in January 2019, the focus this season continues to be on the restructuring of the halls. The goal is to amalgamate the theme areas more precisely and make it easier for visitors to gain an overview, as well as to inspire them and appeal to their emotions. The exhibitors will present key looks rather than huge collections.On top of this we see the recurrence of a trusty PREMIUM theme: sustainability. As a result of this, there will be no plastic in the catering areas; a strong focus on rubbish sorting; and specific promotion of eco-brands.

PREMIUM has been the leading trade show among the most important international trade events since 2003, as well as the most relevant business and networking platform for advanced contemporary fashion. PREMIUM continually aims to inspire, strengthen business relationships and promote discussion across disciplines. B2B services are constantly being perfected and developed together with the key players in the industry.

Tuesday, 2.7.2019, 10am–7pm
Wednesday, 3.7.2019, 10am–7pm
Thursday, 4.7.2019, 10am–5pm
LOCATION STATION-Berlin
Luckenwalder Strasse 4–6
10963 Berlin
CONTACT PREMIUM Exhibitions GmbH
 +49 (0) 3062 908 50
 info@premiumexhibitions.com
WEB www.premiumexhibitions.com
www.facebook.com/PREMIUMBERLIN
www.instagram.com/PREMIUMBERLIN
www.twitter.com/PREMIUMBERLIN    

PANORAMA BERLIN
PANORAMA EXPEDITION

PANORAMA BERLIN is the groundbreaking meeting point for decision makers in the fashion and lifestyle business. Since its premiere in January 2013, it has become one of the most relevant European fashion platforms and, as the leading trade fair for Berlin Fashion Week, represents a comprehensive overview of national and international women & menswear.
Twice a year, together with the Tradeshow for Quality Garments SELVEDGE RUN & ZEITGEIST and the sustainable fashion show XOOM, PANORAMA BERLIN is an "all-in-one event" for international brands, which are divided into various sectors: smart formalwear, casual and sportswear, contemporary styles, denim, heritage and streetwear, accessories and shoes as well as sustainable fashion and lifestyle products.
Following the realignment in January 2019, PANORAMA BERLIN will be taking place from 2 to 4 July 2019 under the motto "BERLIN VIBES" and will focus on the topics of infotainment, eventisation and matchmaking. The concentration continues to target brands with relevance and clear messages. More sophisticated presentations, trend capsules and limited editions, which can only be found in Berlin, stage fashion in an exciting lifestyle context. From furniture to beauty products: In new, central concept store areas in halls 1 to 4, brands and products are presented in a new exciting relationship, providing a wealth of inspiration in terms of presentation and composition. Under the motto "Knowledge to go", PANORAMA BERLIN will be presenting a wide-ranging lecture program with leading keynote speakers in the Retail Solutions Hall on a wide range of future topics relating to international trends in retail, marketing, e-commerce and digitization.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION PANORAMA BERLIN
ExpoCenter City
Eingang Süd/Jafféstraße
14055 Berlin
CONTACT PANORAMA Fashion Fair Berlin GmbH
+49 (0) 3027 595 604 0
office@panorama-berlin.com
WEB www.panorama-berlin.com
www.facebook.com/panoramafashionfairberlin
www.instagram.com/panoramafashionfair

 SHOW & ORDER X PREMIUM
TRADE SHOW FOR FASHION, LIFESTYLE & EXPERIENCE

Thanks to the special department store concept, SHOW&ORDER X PREMIUM is different to other trade shows. Buyers gain inspiration and stories not only from the family atmosphere, but also from the spacious Experience Floor. In addition, the Beauty Lounge will be there again: the place to go to enjoy a quick freshen-up during the hustle and bustle of Fashion Week. It’s not just the KÜHLHAUS itself that has lots to offer again in July 2019 – the Outside Area, too, will be equipped for hot summer days with a beach lounge, bar and mouth-watering catering. Trade show for fashion, lifestyle & experience Over six partly open, gallery-like floors around 200 fashion brands will be exhibiting alongside beauty products, interior and design pieces, stationery, books, art, music, fragrances and magazines, as well as innovative food concepts, located in various experience spaces on the different floors of the KÜHLHAUS. The building is situated on the STATION-Berlin premises very close by to PREMIUM.

Tuesday, 2.7.2019, 10am–7pm
Wednesday, 3.7.2019, 10am–7pm
Thursday, 4.7.2019, 10am–5pm
LOCATION Kühlhaus
Etage 1–5
Luckenwalder Strasse 3
10963 Berlin
WEB www.showandorder.de
www.facebook.com/ShowandOrder

#FASHIONTECH BERLIN

#FASHIONTECH BERLIN, held twice a year during Berlin Fashion Week, is the leading tech conference for the fashion industry, discussing topics around digital transformation, innovations and disruptive technologies. Featuring keynote presentations with international experts on stage (#LISTEN!), interactive masterclasses to boost your specialist knowledge (#LEARN!) and the Exhibition Area, where visitors will be introduced to the latest developments, products and innovations on the market (#EXPERIENCE!), #FASHIONTECH Berlin has evolved to become a leading European content hub for technology, digitalisation, sustainability and innovation.
#FASHIONTECH BERLIN also creates the stage for interdisciplinary exchange between different industries. The networking areas give visitors the opportunity to network with the speakers, industry insiders and entrepreneurs, as well as to seek out new business partners and generate business leads. Since digitalisation has affects every aspect of modern lifestyle, FASHIONTECH BERLN is looking into the latest trends that shape our lives.

TOPICS OF OUR TIME IN THE ERA OF DIGITALISATION

• DIGITAL BUSINESS
• STREET CULTURE
• E-SPORTS & GAMING IN FASHION
• SUSTAINABLE FUTURE

 

Thursday, 4.7.2019, 10am–6.30pm
LOCATION Festsaal Kreuzberg
Am Flutgraben 2
12435 Berlin
CONTACT Michael Stracke
hello@fashiontech.berlin
WEB www.fashiontech.berlin
www.facebook.com/FashionTechBerlinConference
www.instagram.com/Fashiontech_berlin/
www.twitter.com/fashiontechber

FASHIONSUSTAIN BERLIN

Technology, sustainability and innovation are important drivers of the fashion and textile industry that will revolutionize the sector and its processes and production methods. On Wednesday and Thursday, 3/4 July 2019, the international conference format Fashionsustain is dedicated to precisely these topics.
The up-coming edition of Fashionsustain will be dedicated to the subject of water – from microplastics to water stewardship. Highprofile speakers from innovative companies will be presenting visionary approaches to help preserve this vital resource. In addition, the summer edition of Fashionsustain focuses on retail. This involves margins, assortments, collections, POS solutions and the communication of sustainability issues.
And the topics discussed on the conference stage will be brought to life in the “Showcase of Change” exhibition area. But taking place before that, from 1 to 2 July 2019, is the Thinkathon – a space for open dialogue and creative thinking processes. Fashionsustain is part of Neonyt, the global hub for fashion, sustainability and innovation (2 to 4 July 2019) – organized by Messe Frankfurt.

Wednesday, 3.7.2019, 10am–6pm
Thursday, 4.7.2019, 10am–6pm
LOCATION Kraftwerk Berlin
Upper level
Köpenicker Straße 70
10179 Berlin
CONTACT Falco Fuchs
Messe Frankfurt Exhibition GmbH
+49 6975 755 938
falco.fuchs@messefrankfurt.com
WEB www.fashionsustain.com
www.facebook.com/FashionSustain
www.instagram.com/fashionsustain.berlin 

SEEK – A COMMON GROUND FOR INDIVIDUALS IN FASHION

The concept of the Trade Union, which was developed by SEEK Director Maren Wiebus and her team, will continue and will be polished from time to time.        
The bringing together of pioneers and industry visionaries will continue to have its dedicated space for promoting discussion, inspiration and food for thought. SEEK goes charity again! After the overwhelming success of the first initiative with One Warm Winter in January, SEEK and the Berlinbased NGO are planning to collect sneakers for the homeless this summer in front of the location during the show, but also before and after by collaborating partner stores. The project is supported by Sneaker Freaker.
Many reasons to celebrate: 60th birthday of Alpha Industries, 100th birthday of Champion and Farah plus a special Event OVERKILL x ASICSTIGER x SEEK Block Party Vol. 2 Fashion. Trade. Show. Each season, SEEK, the Voice of Street Culture, presents selected streetwear and urbanwear pieces that translate the current lifestyle trends for the industry. SEEK stands for democracy and fairness, clarity, friendliness and honesty, in keeping with the motto of “what you see is what you get”. The focus is on carefully selected style tribes that embody the modern zeitgeist and guarantee SEEK’s visitors valuable inspiration.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION ARENA Berlin
Eichenstrasse 4
12435 Berlin
CONTACT info@seekexhibitions.com
WEB www.seekexhibitions.com
www.facebook.com/seekberlin

SELVEDGE RUN & ZEITGEIST

The show will be all about quality and trust.
After the successful merger with Panorama Berlin, the architecturally impressive hall at the south entrance of the Berlin Expo Center is the new home of Selvedge Run & Zeitgeist. As an integrated part of Panorama Berlin, the tradeshow for quality garments and crafted goods presents a unique exhibitor mix of the latest streetwear topics, which are highly relevant for the market, such as: denim, craft, current and outdoor. The brand list of Selvedge Run & Zeitgeist includes international iconic and heritage brands and distinctive products, some of which can only be seen in Europe exclusively in Berlin.
In July 2019, Selvedge Run & Zeitgeist will again be the hot spot for the community, offering a meeting place with like-minded people and food & drinks to discover the best quality brands and meet buyers from all over the world. In the integrated "Marketplace" you will find curated concept brands that can be ordered as well as bought directly.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION PANORAMA BERLIN
ExpoCenter City
South Entrance/Jafféstrasse
14055 Berlin
CONTACT info@selvedgerun.com
+49 (0) 3027 595 604 0
WEB www.selvedgerun.com
www.facebook.com/selvedgerun
www.instagram.com/selvedgerun
www.vimeo.com/selvedgerun

NEONYT – GLOBAL HUB FOR FASHION, SUSTAINABILITY AND INNOVATION

Changing fashion together. Through collaboration, communication and entrepreneurship. That is the vision of Neonyt, the global hub for fashion, sustainability and innovation.With its hub concept, Neonyt combines the most important elements of the fashion industry – style, business, inspiration, knowledge, fun and community – in a neo-new way. The hub is made up of the Neonyt Trade Show, the conferences Fashionsustain and the design-thinking format Thinkathon, showcases, the influencer and blogger event Prepeek, networking events and, last but not least, the Neonyt Party.
The Neonyt Trade Fair will present a good balance of leading brands and newcomers – from contemporary, casual and urbanwear to denim, streetwear and sportswear down to business outfits. In addition to men’s, ladies’ and kidswear, the assortment of products on show also includes outdoorwear, shoes, accessories, jewellery and beauty. Neonyt is organized by Messe Frankfurt.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION Kraftwerk Berlin
Köpenicker Straße 70
10179 Berlin
WEB www.neonyt.com
www.facebook.com/Neonytberlin
www.instagram.com/neonyt.berlin

OutDoor by ISPO is the first year-round, integrative and cross-media platform designed for a new outdoor movement. It also includes the OutDoor by ISPO trade fair, the perfect event for bringing together the international outdoor industry. It will be held for the first time ever at the Messe München site from June 30 to July 3, 2019 and will be organized in close cooperation with the European Outdoor Group (EOG) trade association.

Under the motto “There's a perfect outdoor for everyone”, the international outdoor industry will meet for the first time at the OutDoor by ISPO trade fair in Munich from June 30 to July 3.

• More than 950 exhibitors expected
• Highlights of supporting program fixed
• OutDays—outdoor festival for end consumers during trade show time

More than 950 international exhibitors spanning nine halls are expected to be at the premiere. The event will be held under the motto “There’s a perfect outdoor for everyone” and will reflect consumers’ modern understanding of the outdoors: Classic outdoor activities such as climbing and hiking will form the basis but will to some extent be reinterpreted and transformed into forms such as bouldering and speed hiking. New segments such as mountain biking, trail running and water sports will also feature. OutDoor by ISPO will also be branching out by tapping into other industries outside of the outdoor sector, thus providing visitors with inspiration and valuable knowledge gained from other areas, such as environmental technology or digital retail and technology solutions.

The first OutDoor by ISPO in Munich will mark the dawn of a new outdoor era. The ISPO team has succeeded in developing a modern consumer-centric concept in close collaboration with the industry. The aim now is to inspire as many people as possible worldwide, break down barriers and highlight the many opportunities and types of “outdoor” that exist.

Nine halls with over 96,000 square meters of exhibition space in the eastern part of the trade fair grounds in Munich will bring the outdoor scene to life. Wide central aisles will help visitors get their bearings and gain a quick overview. The open-plan design with plenty of room for holding meetings will ensure that the whole event is a truly inspiring communications platform. A real outdoor feeling will also be achieved in the outside area with direct access to the halls, the green atrium (functioning as a quiet zone during the day and a party area during the evening) and the camping and glamping site. The Riemer Park, which is directly adjacent to the exhibition grounds, offers spacious green areas and a lake for swimming after the visit to the fair.

Hot topic: sustainability
The outdoor sector is already playing a leading role within the industry in terms of raising awareness of sustainability issues and social responsibility. Various different working groups are developing a comprehensive sustainability concept under the OutDoor by ISPO umbrella. The major driving forces behind this are the European Outdoor Group (EOG), the European Outdoor Conservation Association (EOCA) and the OutDoor by ISPO Advisory Board. Environmental pollution and deforestation along with their negative impact on the climate have been identified as the biggest challenges that need to be overcome.

Existing ideas and approaches for reducing water and electricity consumption, minimizing waste and reusing resources will be assessed and ranked in terms of their importance and then incorporated into a Code of Conduct throughout the entire duration of the trade fair. With the additional support of research findings and projections, this will result, in the medium term, in a general fact-based sustainability guide with specific, practical recommendations for managing emissions, water and waste in the outdoor sector. Based on OutDoor by ISPO and the outdoor industry, it will be extended to the entire ISPO platform and trade fair location.

The CSR Hub & Sustainability Kiosk located in Hall B6 will be a central reference point on all related matters for visitors throughout the trade fair. Display cabinets showcasing biodegradable and bio-based materials will take center stage. There will also be a diverse program of speeches and presentations packed with tips and inspirational ideas for achieving sustainable operations.

The new outdoor mindset: “outdoor” covers a myriad of concepts
The very fact that the word “outdoor” means so many different things to so many different people is reflected in the diverse range of topics covered by OutDoor by ISPO. Some of them will be specifically delved into and looked at in detail in various different focus and activation areas.

Climbing and bouldering centers are booming, especially in urban areas, making climbing sports accessible to new target groups. The Indoor Climbing Hub located in Hall A6 will focus specifically on this trend. Speakers from the international climbing scene will provide exclusive insights, highlight potential and identify opportunities for retailers and brands.

The Borderlands will celebrate its world debut. A curated exhibition space for urban outdoor fashion will be created in Hall B4 together with vanish.today, a media platform for outdoor life & style. The progressive project bridges the gap between outdoor and lifestyle. Technical yet stylish products will be showcased together with design elements and photography to create an inspiring overall impression. There will also be a separate catering area featuring superfoods to help visitors recharge their batteries.

Water sports enthusiasts will feel right at home in Hall C6 in the River Lake Camp organized in conjunction with PADDLEexpo. They can enjoy testing out the latest products designed for activities involving nature’s wettest of elements in the large indoor pool. The program will also include various workshops, presentations and discussion forums.

The latest technology, models, trends and designs from the world of footwear, socks and related accessories will feature in Hall A5 in the Shoe & Trailrunning Village. This area will also play host to the Run & Trail Summit on Monday, July 1, in cooperation with the world’s largest running magazine Runner’s World.

The travel segment is a new addition to the outdoor portfolio. The Adventure, Tourism & Travel Summit in Hall B6 will unveil opportunities for collaborations between the travel industry and the outdoor industry and highlight existing potential. Matchmaking will be at the heart of the extensive program. Partners will be experts from the Adventure Travel Trade Association (ATTA).

Bikepacking now represents a major trend in alternative travel, allowing you to get off the beaten track of mass tourism. The Bikepacking Zone in Hall C5 will tell you everything you need to know about this new movement and show you what the equipment involved has to offer. It will be part of the bike segment, which is being integrated for the first time ever this year as part of a soft launch. This will also involve the Bike Test Track organized in cooperation with ExtraEnergy. This track with mixed surfaces and obstacles will be the perfect place to test ride gravel bikes, mountain bikes and electric mountain bikes. The biggest bike textile producers on the market will also be showcasing their latest collections in Hall B6.

“Outdoor” action will of course not be confined to the halls but will also be available in the outside area: the HangOut Area, designed as an interactive exhibition space, will be the perfect place to try out and test a wide variety of products. Meat lovers in particular will enjoy the barbecue in the Kreutzers Outdoor Kitchen.

As an integral addition to the various outdoor activities, daily yoga sessions will be held in four of the focus areas as part of the Body & Mind segment. They will be based around the four elements and will each comprise relevant exercises: fire will represent the climbing-specific program in the Indoor Climbing Hub; the natural flow of water will be at the heart of the session in the River Lake Camp; runners will be able to strengthen their bodies and minds using the theme of earth in the Shoe & Trailrunning Village and the outside exhibition area will provide the perfect location for exercises using the theme of air.
A complete overview of all the focus areas is available online.

OutDays—a festival of outdoor culture
The OutDoor by ISPO trade fair may be reserved for trade visitors but everyone else can look forward to getting involved in OutDays from June 29 to July 6 in the metropolitan area of Munich. End consumers, brands and retailers will become a vital part of this new movement through the festival celebrating outdoor culture. Participants can expect exclusive workshops, meet & greets, try-outs, film screenings, presentations, prize draws and contests. The contents will also reflect the diverse nature of the entire outdoor world: from bouldering, climbing, mountain biking and trail running right through to different water sports, adventure travel and camping. The OutDays program will be available from mid of May 2019 on the Web page.

Outstanding Outdoor—award-winning innovative products
Europe’s largest outdoor trade fair is also a hot spot for innovative products and trends. “Outstanding Outdoor” is an award designed to recognize stand-out products in the outdoor industry. The popular seal of quality helps retailers, the press and end consumers find their bearings in the increasingly complex product landscape. The winners will feature in the exhibition space of the same name in Hall B5.

• Competition from the Far East increases modernization pressure

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

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

Textile and apparel industry benefits little from weak lira

Year	Turkish exports of clothing and textiles (in US$ billion)	Annual change (in %)
2015	26.3	-10.3
2016	26.1	-0.6
2017	26.7	2.1
2018	27.7	3.6

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

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

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

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

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

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

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

Turkish imports of textile machinery and exchange rate comparison  ¹⁾

Year	Import from Germany (in USD million)	Total imports (in USD million)	Exchange rate (1 US$ = ?TL)
2009	143	505	1.55
2011	521	1,851	1.67
2013	619	2,211	1.90
2015	382	1,398	2.72
2017	447	1,478	3.65
2018 1) 2)	490	1,774	4.81

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

 

 

 

 

• Industrial park under construction

Baku (GTAI) - The Azerbaijani textile and silk industry is going to have a future again after a dramatic slump. Several initiatives are helping the traditional industry to make a fresh start.

Azerbaijan wants to revive its once strong textile, silk and clothing industry. In 1990, the sector still accounted for just under 18 percent of the total industrial production – in 2017 it was just 0.5 percent. Future investment activities will be determined by several initiatives. These include the implementation of programs for the production and processing of cotton and silk cocoons for semi-finished and finished goods, the establishment of an industrial park for light industry in Mingatchevir and the establishment of branches of the Azerkhalcha company for hand-woven carpets.

New projects in cotton processing on the horizon
At the beginning of the 1980s, cotton cultivation boomed in the country with an annual harvest of more than 1 million tons of raw cotton. The collapse of the Soviet Union, the transformation crisis in the 1990s and general neglect almost brought the industry to a standstill. In 2015, the harvest reached a historic low of 35,000 tons of raw cotton.

But the turnaround has begun. In 2017, 207,000 tons of raw cotton were harvested (forecast for 2018: 250,000 to 260,000 tons). A downer is the low average yield of 1.52 tons per hectare (2017). The government announced increased support for soil irrigation and technical equipment for manufacturers. By 2022 the harvest is expected to rise up to 500,000 tons per year.

The "State Program for the Development of Cotton Growing in the period 2017 to 2022" adopted on July 13th 2017 is a guideline for the further development. Projects are planned for the renewal of existing and the construction of new cotton ginning mills and processing of cotton fibers into yarns, fabrics and finished products. By mid-2018 there were eight spinning mills in the country with a total annual capacity of 44,600 tons of yarn. Above all among the yarn producers in Uzbekistan are the companies Mingatschewir Textil, MKT Istehsalat Kommersiya, ASK Textil Sumgait and Azeripek (better known as Ipek Scheki).

Silk industry to be expanded
Since 2016 the silk industry, which came almost to a standstill, has now been on the move again. On November 27th 2017 the "State Program for the Development of Silkworm Breeding and Processing of Mulberry Silkworm Cocoons for the period 2017 to 2025" was adopted. The program defines projects to revitalize the sector. The annual production of cocoons is expected to rise to 6,000 tons by 2025, ensuring an annual production of up to 600 tons of raw silk. In 2017 244 tons of cocoons were produced after 71 tons in 2016 (forecasts for 2018 and 2019: about 500 and 1,000 tons respectively).

The modernization of the silk combinate Azeripek in Scheki is at the top of the project list. The contact organization is the Azerbaijan State Industrial Association, to which Azeripek and other companies are reporting (http://www.ask.gov.az). The construction of a new silk spinning mill with an annual capacity of 3,000 tons of yarn is planned.

Established in 1931 and later expanded the Silk Combine in Scheki was the flagship of the silk industry in the Soviet Union in the 1970s and 1980s with some 7,000 permanent employees. It produced up to 400 tons of raw silk per year and supplied over 100 factories with silk yarn and twist. Inefficient privatization, financial problems, lack of raw materials and sales difficulties repeatedly led to production stoppages. Today's capacities allow an annual production of up to 135 tons of raw silk only. As a result of technical problems, the factory is unable to produce finished fabrics.

Industrial park for light industry under construction
In the in 2016 established Industrial Park for Light Industry in Mingatchevir, nine factories for the production of textile and clothing products (cotton, acrylic and wool yarn, hosiery and apparel) and other light industry products (leather footwear and cosmetics) are to be built. The construction of more production facilities is planned. In February 2018 the company Textile Mingatchevir opened the first two factories in the industrial park. It intends to produce up to 20,000 tons of cotton and blended yarn annually. Capital expenditures were USD 46 million.

Azerkhalcha revives traditional carpet art
Azerkhalcha, the company for the production of hand-woven carpets, has an ambitious goal: 30 regional carpet weaving mills are to be established by 2020. By the end of 2017 ten branches have already been opened. A further 20 will be added in 2018 and 2019. Azerkhalcha was founded in 2016 on the initiative of the government. In 2018 and 2019, the state will invest around USD 22 million in the construction of new branches and a wool processing factory.

From 2020, approximately 5,000 employees will produce hand-woven carpets under the Azerbaijan Carpet label for domestic and foreign markets. The expansion plans for the production of hand-woven carpets result from the in 2018 adopted state program for the development of carpet art in Azerbaijan and the Nakhichevan Autonomous Republic for the years 2018 till 2022.

Azerbaijan offers opportunities as a production location
Azerbaijan can score with some advantages as a production location for the textile and silk industry as well as for the clothing industry. These include a sufficiently available and quickly trained labor force, low wage costs, tax and other preferences in industrial areas and good conditions for the sale of the goods.

Good sales opportunities result from the free trade agreements with the countries of the Commonwealth of Independent States and the export opportunities to Turkey. No import duties have to be paid for exports to these countries. Clothing manufacturers from EU countries with the intention of exporting to these countries can benefit from this. Several companies, especially from the Baltic States, are currently exploring their opportunities for a market entry.

The Azerbaijan Textile Industry Association sees a need for action on the part of the government with regard to the framework conditions for the domestic clothing manufacturers. For example, the tariff burden on imports of accessories such as adhesives, buttons and snap fasteners and zippers should significantly be reduced.

Leading manufacturers of apparel and other finished textile products include Baku Textile Factory (Baki Tekstil Fabriki), Accord Textil (Agstafa, part of the Accord Industrial Holding), Alyans Tekstil (Sumqayit), the apparel factory in the Gilan-Textile Park (Sumqayit), and Debet Uniform (Baku). The factories mainly produce workwear and outerwear.

• Projects worth USD 52 million planned

Tashkent (GTAI) - Uzbekistan wants to become an international player in the shoe and leather industry. The market offers foreign companies a lot of potential for cooperation.

The Government of Uzbekistan has adopted a new initiative for the modernization and expansion of the leather, footwear, leather goods and fur industries. It is aimed at increasing efficiency and expanding production as well as accelerating integration into the international market. Producers are focusing primarily on Russia and Kazakhstan, but also on Western markets such as France. Foreign companies are welcome to participate in the planned projects. In the long term, value chains are to be created, clusters established and exports promoted.

Cooperation with Uzbek companies are possible in the production of leather goods, passive contract finishing, supply of equipment, auxiliary materials and chemicals to companies or in the trade with footwear, leather and fur goods. There are plenty of high-quality raw materials and a large potential of available and motivated workers.

The framework conditions for companies in Uzbekistan have improved noticeably. Labor and energy costs are low. In 2017, the government initiated economic liberalization and opening of the country. Uzbekistan wants to more than double its shoe exports by 2020. In 2017 Uzbek manufacturers sold shoes worth USD 150 million abroad.

Foreign investors are planning new projects
The O´zcharmsanoat's key 2019 investment program lists projects valued at USD 52 million. In addition, there are other projects which have not yet been included in the program due to ongoing coordination with potential foreign investors or which are planned in companies that operate outside O´zcharmsanoat.
An overview of current and planned projects for the development of the leather, shoe, leather goods and fur industry in Uzbekistan can be downloaded here.

Association O´zcharmsanoat is the main contact partner
The Association of the Leather Industry O´zcharmsanoat acts on behalf of the state as the central regulator and coordinator of the sector. It was restructured in May 2018 and controls, among other things, investments and foreign trade. Almost all notable Uzbek players in the leather industry are active under its umbrella. These include 30 automated slaughterhouses (supplied by livestock farms), 63 tanneries, including pre-tanning facilities, 131 shoe manufacturers and 28 producers of other products, including fur products (as of June 30th 2018). It also operates 13 warehouses for the purchase of raw materials from private animal breeders.

The leather processing companies produce hard leather (foot and insole leather) and upper leather, mainly chrome leather goods and Russia leather. The annual raw material supply amounts to around nine million hides and five million skins. About two fifths of this volume is currently exported. Among the 252 companies, which are employing about 26,000 people, there are 47 companies with foreign capital participation as well as numerous purely private Uzbek companies.

Only about a dozen of the 131 shoe manufacturers, which are currently active at O´zcharmsanoat, employ 100 people or more. The development of efficient medium-sized structures in the sector is still in its infancy and is likely to gain momentum.

Government grants tax and tariff preferences for five years
The slaughterhouses and manufacturers of raw, semi-finished and finished goods as well as the new foreign trade company Uzcharmimpex will receive tax and customs relief. These apply to existing companies of the association O´zcharmsanoat until January 1st 2023. Newly established companies can benefit from the preferences for five years from the date of company foundation.
In detail, the following preferential conditions are granted:

• Exemption from the profit and wealth tax or the uniform tax levy for micro and small companies
• Exemption from compulsory contributions to earmarked central funds
• Exemption from import duties for the import of equipment, completion parts, raw materials and materials which cannot be procured in the country and are intended for production.
• Granting a 60-day deferment of payment of import duties (from the date of the customs declaration) for the import of all other equipment, completion parts, raw materials and supplies and other goods for production needs
• VAT exemption for imports of raw materials and intermediate products for the use in production and of equipment for footwear production

Uzcharmimpex imports equipment for Uzbek companies
The foreign trade company Uzcharmimpex is engaged both in the export of sector products and in the import of equipment, spare parts, auxiliary materials and chemicals. The list of imported capital goods includes butchery, cutting, slicer, splitting and shaping machines, vacuum dryers, electronic measuring instruments for leather surface measurement, sewing machines and footwear assembly equipment.

The industry modernization initiative also provides for the creation of an industry development fund. This is fed by a levy amounting to 5 percent of export earnings from chrome-tanned hides and skins that have not yet been dressed (wet blue). These funds are intended for investment projects, the granting of loan guarantees, the financing of ISO certifications, the promotion of trade fair participations and the promotion of training and further education.

Usbekistan doubles shoe production
According to the Association of the Leather Industry O´zcharmsanoat, about 40 million pairs of shoes were produced in Uzbekistan in 2017, including 17 million pairs of full and partial leather shoes. An output of 34.2 million pairs of leather shoes is planned for 2020. Then the leather production is expected to reach a volume of 1.3 billion square decimeters. For 2018, the association expects 1 billion square decimeters of leather. O´zcharmsanoat aims to increase its total exports to USD 480 million by 2020 and to USD 1 billion by 2025 (Actual 2017: USD 150 million).

The collapse of the Soviet Union, a failed privatization policy and a difficult business climate led to a breakdown in production in the mid-1990s to around 2009/2010. On average, manufacturers produced less than four million pairs of shoes a year. Previously, around 30 medium-sized manufacturers brought 50 million pairs of shoes onto the market each year. In addition, 2.4 million bags and 200,000 pairs of gloves were produced annually. After 2010, there was a start-up boom in the sector thanks to preferential tax arrangements for particularly small companies.

Contact address
O´zcharmsanoat uyushmasi (Association of the Uzbek Leather Industry)
Contact person Sardor Uktamovich Umurzakov, Chairman of the Management Board
109, Mustakillik ave., 100192 Tashkent/Uzbekistan
T +99871 267 58 47, 268 40 66
F +99871 268 40 66rais@uzcharm.uz, info@uzcharm.uz,
Directory of companies http://www.uzcharmexpo.uz/spravochnik
rais@uzcharm.uz, info@uzcharm.uz
http://www.uzcharm.uz