From the Sector

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

India is a very important market for the German textile machinery industry, with an export of more than €255 million (+ 8 %) in 2017. Many German machinery builders have longstanding relations with Indian customers and quite a number of them also provide production plants and training centres in India. Not surprisingly, about 370 decision-makers and experts from the textile and nonwoven related industry attended the VDMA conference and B2B event called “German Technology meets Indian Textiles and Nonwovens” in Mumbai on 15-16 May 2018 (www.germantech-indiantextile.de).

According to a survey, both the event and German textile machinery engineering received the highest marks among the visitors. About 57 % of the visitors stated very good and 38 % good experience with machines and components from German suppliers. The performance and service promise as well as the high-quality standards have made German machine suppliers as most reliable partners in India and other countries. This positive result has by far not been reached by any other manufacturing nation from Europe or Asia. Asked for future processes, investments in technical textiles and/or nonwoven production seem to be the most favorite sectors in India. Around 74 % of the visitors plan to expand their production capacities with new machines and components whereas 26 % intend to replace old machinery by new machines and components. High productivity, after-sales service, end-product quality, low operating and acquisition costs are the decisive machine procurement criteria in this order. The investments plans are based on a positive business and investment outlook in India. 45 % of the visitors surveyed plan to invest more than 10 % within the next 12 months and 30 % up to 10 %. 25 % of the visitors expect a sales increase by more than 10 % for the next 12 months and 60 % anticipate a sales growth of up to 10%.

Considering this positive business climate and the high interest from the Indian industry, the 32 well-known VDMA members participated in the conference have good chances to offer the right technologies and to place new orders. The presented technology topics along the entire textile value chain will help the Indian industry to fulfill their expansion plans and to meet the challenges such as rising salary costs and shortage of labor in industrial regions. The major cutting-edge topics of the conference program were as follows:

•    Higher profits throughout the entire textile value chain
•    Energy, material, water and dyestuff savings for an environmentally friendly production
•    New applications such as technical textiles, nonwovens (e. g. hygiene products) or home textiles (e. g. terry towels)
•    Automation, industry 4.0, digital communication and smart factory solutions
•    Quality improvements e. g. with measurement and control systems
•    Lower investment costs in spinning preparation with integrated draw frames
•    New technologies to combine spinning and knitting
•    Smart textiles and added value products e. g. with embroidery machines

Whereas the event on 15-16 May 2018 focused on customers, a training session at the prestigious Veermata Jijabai Technological Institute VJTI in Mumbai on 17 May 2018 was addressed to future engineers. More than 220 textile manufacturing and mechanical engineering students followed the technical presentations. The VDMA's contribution to improve the education of future customers and partners was very much appreciated.

As the leading home textiles trade event in Asia, Intertextile Shanghai Home Textiles is renowned for its size and also the variety of products offered by its exhibitors from China and around the world.

The show will be held from 27 – 30 August in the National Exhibition and Convention Center in Shanghai. It will cover six halls, accommodating over 1,000 suppliers from around 30 countries and regions.
To satisfy buyers from different regions with varied sourcing needs, the show will feature a wide variety of home textile products ranging from bedding, bath, table & kitchen, curtains & upholstery and textile designs & technology to editors, whole home, sun protection, wallcoverings and carpets & rugs.

“The products on offer are of various quality and price levels that visitors can discover both premium brands presented by editors and a massive amount of medium-end products at the show,” said Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd.

Intertextile Shanghai Home Textiles serves as an ideal platform for suppliers to introduce new products to the market as a large number of visitors including import & export corporations, wholesalers, distributors, chain stores and home product manufacturers are attracted.

EUROART and JAB ANSTOETZ are two of the returning editors who are ready to demonstrate their latest collections.
“We are an integrated company based in Beijing which presents both imported decorative fabrics and wallpaper as well as self-owned fabric brands. Buyers can expect to discover advanced jacquard, embroidery, silk and printing techniques from the brands LIZZO and ROMO at our booth,” Mr Frank Lu, General Manager of EUROART said.

Furthermore, the world-known fabrics design company, JAB ANSTOETZ, will also take advantage of the show to present their new outdoor fabrics.
“Our ‘AROUND THE WORLD’ collection possesses high colour stability, mould-resistance and easy-care features. We will also introduce our advanced FibreGuard fabrics which prevent dirt and meet OEKO-TEX® standards,” Mr William Lin from JAB ANSTOETZ said.

Bedding products are another highlight of the show. Returning exhibitor Advansa will display their new fibre formula SUPRELLE™ 95 which is a combination of enhanced sleep comfort and ease of care. And the established French brand TODAY will make their debut at the fair to promote their full range of fashionable bedding items.

Diverse suppliers confirm participation offering all kinds of quality products. Apart from the editors and whole-home exhibitors, worldwide suppliers specialising in different products can be found in the show.

They include:

• Curtains & upholstery: quality brands such as AICO, Ateja, Culp Fabrics, D’Décor, Elastron, Enzo Degli Angiuoni, Harmel Home, Huatex, Sangwontex and more
• Bedding, bath and kitchen: domestic and overseas brands will showcase an extensive range of products for everyday domestic life including comforters, pillows, mattress toppers, bed linen, bathrobes, towels, table napkins and more. Exhibitors will offer insights about utilising various products to display the whole home concept
• Textile design: featuring worldwide original textile design studios. Visitors can discover distinct styles of design from both Asian and European studios
• Carpets & rugs: carpet exhibitors from Afghanistan, India, Pakistan, Turkey and other countries
• Digital printing & technics: showcasing the latest digital printing technology, and cutting, sewing and other home textile equipment technics. In view of the good result in 2017, the show will continue to cooperate with industry media to organise professional seminars introducing some latest technique and new applications in the home textile industry

• CHIC Shanghai, March 14-16, 2018
• CHIC March 2018 closes successfully with rise in attendance
• CHIC´s new design: Discovering the young consumer world
• Successful business in all fair segments
• Service point CHIC as international platform for the international fashion trade
• New autumn date for CHIC: September 27-29, 2018

The spring edition of CHIC, taking place from March 14-16, 2018, finished successfully with yet another increase in visitor figures. 1,210 exhibitors from 21 countries and regions presented themselves on 117,200 m² at the National Exhibition & Convention Center in Shanghai. 112,666 visitors of all business channels were registered at the fair, among them leading department stores, shopping malls, multibrand stores, agents, distributors.

Chen Dapeng, President of CHIC and Executive Vice President of China National Garment Association: "The consumers in China develop rapidly, `consumer upgrade´ is the keyword, the Chinese market is consumer oriented, in demand is an individual young style. The offer has to adapt to the needs of this target group, the industry has to become even more innovative and face the technological challenges."

CHIC Shanghai shows that the Chinese market follows the current trends which is also mirrored by its fresh young design and a full visual concept that was developed in cooperation with WGSN. Addressees are the young trendsetting consumers, China´s driving force for the strong growth in retail sales, which increased by 10.2% in 2017 to about 5.7 trillion US$. According to a study by BCG this target group accounts for 65% of consumption increase in China with a predicted growth rate of 11% per year until 2021. The total domestic consumption contributed nearly 60% to the economic expansion of the country in the last year.

Intensive contacts and ordering in all areas of CHIC

The exhibitors of the designer area IMPULSES, one of the core segments at CHIC and occupying the entire North Hall, among them Hua Mu Shen, Shan Zi, Mood for Mode, were very satisfied. In addition to numerous concrete cooperation agreements high value orders were placed as well.

The international exhibitors in the FASHION JOURNEY area came from Brazil, Denmark, Germany, France, China Hong Kong, India, Italy - with 40 exhibitors again the biggest European participation - , Japan, Korea, Peru, Poland, Sweden, Spain, China Taiwan, UK. They expressed their satisfaction with their participations and recognize the potential of the Chinese market. The trade fair objective are contacts, numerous promising cooperation talks took place that need intensive follow-up after the fair. Nevertheless there were also orders placed at the fair. The Polish Investment and Trade Agency participated for the first time in CHIC with its national export program “go-to-brand”. Polish jewellery and kidswear designer brands participated in the program and exhibited at CHIC.

Showing at the leather and fur area HERITAGE the International Fur Federation (IFF) presented itself for the first time with international producers such as the auction houses NAFA and SAGA. Turkey was again represented under the roof of IDMIB / ITKIB by ten companies. For the national participants, grouped in pavilions of the respective Chinese provinces, CHIC is an essential business platform, here they regularly meet their buyers and this time once again registered orders of high sums.

Young brands in the CHIC YOUNG BLOOD area like Monkey King (after the monkey king in the classic Chinese novel The Journey to the West) with manga style shirts or JPE, a trendy street style brand with a traditional Chinese dragon being its mascot, made more than 300 contacts with concrete cooperation intentions at CHIC.

Companies in the segment URBAN VIEW, the menswear area, e.g. RUYI group with more than 30 international fashion brands such as Aquascutum or Sandro; GSON, a menswear line of SEMIR group or ManCode, a new exhibitor at CHIC, reported hundreds of cooperation inquiries and direct deals at the fair.

A sensation in the accessories segment SECRET STARS was created amongst others by the German brand LEONARDO. Large groups of visitors interested in the jewellery collection gathered at the booth. The fair participation beat the company´s expectations by far.

The young generation is the engine for fashion consumption in China, a fact also recognized by the management of the SEMIR group that presented product novelties and its service offer with its kidswear brand BALABALA in the KID´S PARADISE at CHIC. New technologies were shown on more than 500 m² by the HODO group and its "unstaffed shops", "smart fitting rooms", "magic dressing mirrors". Further innovations were "cloud shelves" and "big screen data".

Service platform CHIC

The intensively expanded visitor management, online and offline, was a central aspect of the fair. Online via WeChat and the official CHIC APP more than 200,000 visitor request for specific product groups were made, exhibitors uploaded more than 700,000 pieces of product information. Active exchange was initiated by the Buyer´s Talk on the second fair day, dealing with the development of the buying systems of department stores and shopping malls, trend information was given at CHIC Buyer´s Theme Salon also taking place on day 2. The VIP Buyer´s Meeting brought international brands and interested agents and distributors together - a service that the organizer will expand in the future. “We visit CHIC Shanghai every time, for us it´s a very important platform for trend information and also to find European brands that we can introduce to the Chinese market”, says Wen Liu, CEO Jesery from Wuhan, representative of Canadian designer brand JAC. The management of Mallstyle Investment (Shanghai), with e.g. Italian luxury brands in its portfolio, directly got in touch with German and Italian brands at CHIC after the meeting.

The event schedule of CHIC offers a broad seminar and workshop programme with its CHIC TALK, from trend information to retail solutions to buyer meetings, the show programme CHIC SHOWS staged fashion presentations, of which especially the IMPULSES and OVERSEAS´ JOINT FASHION SHOWS attracted the visitors´ attention. CHIC Shanghai is designed as a global platform for the fashion industry and fashion trade and integrates all resources that are relevant to a successful development of the fashion business in China.

CHIC Shanghai changes autumn date to September

CHIC Shanghai changes together with Intertextile Shanghai, PH Value and Yarn Expo the date for its autumn edition to September. The next fair will be held from September 27-29, 2018 at the National Exhibition & Convention Center in Shanghai.

• Spanish outdoor and sportswear market leader expands international presence thanks to Lectra’s latest product lifecycle management solution

Ismaning/Paris – Lectra, the technological partner for companies using fabrics and leather, is pleased to announce that the Ternua Group, a world-renowned Spanish outdoor clothing and sportswear group, has chosen Lectra Fashion PLM 4.0 to increase their geographical presence by improving global teamwork.

Founded in 1994, the Ternua Group has achieved worldwide success by promoting adventure through respect for nature, producing sustainable technical clothing for outdoor sports enthusiasts worldwide. The group’s strong commitment to the environment is shown through their R&D that focuses on developing their own fabric by using eco-friendly materials such as organic cotton and recycled down.

Today, the group’s portfolio includes three brands Ternua, Astore and Lorpen, currently exporting to more than 50 countries, with operations in Europe, America and Asia. Compounding this global success, the ambitious group plans to penetrate more markets across the globe.

The group is implementing Lectra Fashion PLM 4.0 into their entire production process. Specifically developed to help fashion companies navigate the digital era, this modular and user-friendly solution will help the Ternua Group centralize and store information coming from their brands by digitalizing their supply chain. This will connect all teams involved in the design-to-production process, regardless of geographic location. Team members will also be able to comm unicate better with external suppliers, access accurate information and keep track of every collection’s development progress. The group can hence speed up the entire production process and help their brands deliver their collections to markets all over the world on time.

“We manage our design and product development processes in-house but outsource our production in Europe, north of Africa and Asia. For our business to expand globally, we need to go fully digital. By having a system that consolidates and standardizes data coming from all supply chain actors across the world, we can respond faster to consumer demand,” explains Aitor Barinaga, Chief Operations Officer, Ternua Group. “We have assessed all other vendors—and Lectra Fashion PLM 4.0 is clearly the winner. It has the ability to fully integrate all processes and improve communication and teamwork across all departments through sound data management. We are more than happy to have a trusted partner as Lectra for such an ambitious project.”

“Ternua Group is constantly pushing the boundaries of innovation. This is shown through their desire to help customers achieve their personal best by providing them with high-performance technical wear that is also environmentally friendly. We are thrilled to embark on this new journey with the Ternua Group, and we are confident that our solution and expertise will help them get their collections out to new markets on time,” says Rodrigo Siza, Managing Director, Spain and Portugal, Lectra.

• New collaboration of sustainable viscose suppliers formed in China

Digital Printing Zone debuts at Spring Edition
Despite the economic ups and downs in China over the last few years, demand for premium European textiles remains high.
Whether it be premium wool for the flourishing suiting market, ladieswear fabrics, lace & embroidery for high-end domestic brands each with hundreds of stores across the country, innovative yarns & fabrics for the booming sports and activewear sectors, or original pattern designs for the thousands of new online fashion brands, European suppliers remain the go-to option for Chinese buyers looking for quality and style.

As one of the undisputed leaders in the European textile scene, Italy is always a good bellwether of the trends between Europe and China. After a less than stellar 2016, Italy’s fabric exports to the Mainland China and Hong Kong markets grew by 12.4% in the first 10 months of 2017[1]. The expected demand for European brands at Intertextile Shanghai Apparel Fabrics will be most evident in the SalonEurope zone, which features exhibitors from Austria, France, Germany, Italy, Spain, Switzerland, Turkey and the UK, as well as country pavilions & zones from France, Germany, Italy and Turkey.

There is also continuing demand for overseas expertise when it comes to more technical areas such as sustainability and digital printing, solutions to which can be found in the fair’s All About Sustainability area and Digital Printing Zone.

SalonEurope showcases the continent’s full textile expertise
The best of the best from Europe will be on display in this edition’s SalonEurope, with a range of products across the whole textile spectrum on offer. Some of the highlights this edition include:

• Alumo (Switzerland): celebrating its 100-year anniversary this July, Alumo has undertaken a complete refresh of their brand, highlighting the character of their mill in Appenzell, Switzerland that has deep roots in the local textile industry. This edition, they will showcase a renewed collection of luxury shirting fabrics with intricate designs and added functions such as natural stretch and wrinkle-free, and a newly enlarged, never-out-of-stock ‘Sartorial’ collection.
• Hatfil Tekstil Isletmeleri (Turkey): a Turkish-Italian joint venture, they offer a huge range of yarns including eco-friendly options such as organic, BCI and fair trade yarns, as well as cotton, Tencel, Amicor, bamboo, cashmere, modal and other varieties.
• Hohenstein Textile Testing (Germany): offering testing services, OEKO-TEX® services and certifications, the Hohenstein Quality Label and more.
• Ricamificio Paolo Italy SpA (Italy): an embroidery manufacturer, they have developed a new technique using very thin embroideries to produce a lace-like effect, which can also be customised to the customer’s requirements in no more than four weeks. They have also produced a quilt-like fabric suitable for spring / summer garments which is made from materials such as silk organdie, cotton yarn or lurex to produce a shiny effect.
• Teseo Tessitura Serica Di Olmeda SpA (Italy): for their summer 2019 collection, Teseo is inspired by the natural elements with increased attention to sustainability with GOTS-certified bio silk and eco-friendly yarns. New articles are lighter and enriched with yarn-dyes, include jacquard stripes and checks, gauze and devoré bands to add transparency, and more.

New collaboration of sustainable viscose suppliers formed in China
While the textile industry in China still has a long way to go in terms of sustainability, genuine progress is being made at both a government and company level. January of this year saw the implementation of a new environment protection tax, with companies charged for noise, air & water pollution and generating solid waste[2]. Replacing a pollutant discharge fee that had been in place for 40 years, the new tax is set by local governments – with some of the regions suffering from worse pollution setting higher rates – and also incentivises companies with lower emissions.

In another encouraging move, 10 leading global viscose producers in China have come together to form the Collaboration for Sustainable Development of Viscose (CV) to promote the sustainable sourcing and responsible production of viscose. These 10 producers collectively account for over 50% of the world’s viscose staple fibre production, and have partnered with two trade associations to adopt a sustainability roadmap for the viscose industry. Built around credible international sustainability standards and programmes, the CV Roadmap aims to provide guidance to viscose producers on sustainable sourcing and production practices.

The CV collaboration will make its debut appearance in the fair’s All About Sustainability zone, where visitors can learn more about this initiative, as well as sustainable developments in the Chinese textile industry. Apart from an educational programme and garment display area, the zone will also feature a number of exhibitors other than CV.

Digital Printing Zone debuts at Spring Edition
While digital printing is rapidly gaining traction in the global textile industry, this is especially so in China due to its potential to reduce pollution during the production process. Amongst the exhibitors looking to take advantage of this in the fair’s new Digital Printing Zone is MS Italy, a market leader in the design, development and distribution of innovative digital ink-jet printing systems and associated consumables, which serves the high-end, roll-to-roll textile printing and specialty material markets. Also exhibiting is DIGITEX which will introduce the latest digital- and inkjet-printed natural and manmade fabrics.

Apart from digital printing exhibitors, a day-long forum will inform fairgoers on the exciting possibilities of digital printing. Held on day 2 of the fair, the Fast Fashion and Digital Printing Application Forum features sessions on fast fashion technology & trends and digital printing applications. These are followed by a series of discussions on topics such as flexible supply chains, business opportunities created by digital printing and IP protection. The forum also includes a presentation on the findings of a six-month study conducted by Fashion Print, a Chinese publication, for which they visited hundreds of textile companies, printing and dyeing enterprises, as well as their suppliers to produce a research paper on the digital textile printing market and technology.

In addition to Intertextile Shanghai Apparel Fabrics, four other textile fairs also take place at the National Exhibition and Convention Center: Yarn Expo Spring, Intertextile Shanghai Home Textiles – Spring Edition, fashion garment fair CHIC and knitting fair PH Value.

• Intertextile Shanghai Apparel Fabrics – Spring Edition 2018 is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. For more details on this fair, please visit: www.intertextileapparel.com. To find out more about all Messe Frankfurt textile fairs worldwide, please visit: www.texpertise-network.com.

[1] http://hk.fashionnetwork.com/news/Italian-textile-industry-back-on-growth-track-in-2017,944760.html
[2] http://www.fibre2fashion.com/news/textile-news/china-imposes-environment-protection-tax-beginning-jan-1-239965-newsdetails.html

Buyers looking for premium wool fabrics will be spoilt for choice at next month’s Intertextile Shanghai Apparel Fabrics. The epicentre for those with this product on their sourcing checklist is the Premium Wool Zone, with mills from the UK, Italy, France, Peru and elsewhere located here, while the Italy Pavilion also includes a number of quality wool suppliers. Rounding out the sourcing options, and adding further quality and price variety, are the 180-plus domestic wool suppliers in hall 6.1.

Some of the notable overseas brands participating this edition include Abraham Moon & Sons, Aris Industrial, Dechamps, Dormeuil, Dugdale Bros & Co, Ferla, Fratelli Piacenza, Holland & Sherry, Huddersfield Fine Worsteds, Lanificio F.lli Cerruti DAL 1881 and Scabal. The Spring Edition of the industry’s most comprehensive sourcing platform for the spring / summer season, Intertextile Shanghai Apparel Fabrics, will feature some 3,300 exhibitors from around 20 countries covering all apparel fabrics and accessories product groups.

Growing affluence in China drives demand for premium wool fabrics

While a true global marketplace for the industry’s order writers with buyers from around 100 countries expected at Intertextile Shanghai next month, much of the demand for high-end wool at the fair comes from Chinese buyers thanks to growing affluence in the country. This is evidenced by the fact that Australian wool prices are at record highs this season, with China accounting for over 70% of Australian wool exports[1]. What’s more, whereas 15 to 20 years ago most wool imported by China was re-exported, nowadays around 60% is used to produce garments for the domestic market.

Intertextile’s number one position in China ensures that high-end domestic buyers are in abundance. “The buyer professionalism here is surprisingly high,” Mr Bob McAuley, Huddersfield Fine Worsteds’ President, explained last October. “We’re looking specifically for tailors and menswear specialty stores, and these type of buyers are definitely present.” Speaking about domestic market trends, he continued: “Retailers are not able to put all fashion in stores, so the made-tomeasure market is growing, especially in China. I’m surprised each edition how many new high-end Chinese brands we meet at this fair. There’s more menswear specialty stores opening here, whereas in the US, for example, the move is more towards going direct-to-consumer and online.”

Innovation and new-season styles added to heritage brands’ collections  

Precious metals such as gold and silver are known to have been worked into garments as long as 3,000 years ago, when they were hammered into extremely thin sheets then cut into ribbons. Modern technology has made this process much more straightforward, as well as opening up new opportunities. One of these is combining wool and silver, which Holland & Sherry will exhibit at Intertextile Shanghai. Their Argento collection of Super 200's wool fabrics applies a state of the art silver ion technology finish to superfine 13.5µ merino wool. This combination provides effective antibacterial protection, counteracting bacterial odour formation and keeping the fabrics hygienic and fresh. And because the conductive properties of silver prevent the build-up of static charge, the fabrics also benefit from anti-static properties.

While most collections in the Premium Wool Zone emphasise the brands’ heritage and tradition, like Holland & Sherry, some will be introducing new or updated collections. Dugdale Bros & Co refreshed its Royal Classic superfine Australian merino wool collection last year for the first time since 1987, adding around 30 patterns drawn directly from its original archive. Abraham Moon & Sons will showcase new fabrics at the fair for spring / summer ‘19 designed by Creative Director Martin Aveyard, which take in categories of classic, casual and contemporary, with a unique use of worsted, linen and cashmere combinations.

In addition to Intertextile Shanghai Apparel Fabrics, four other textile fairs also take place at the National Exhibition and Convention Center: Yarn Expo Spring, Intertextile Shanghai Home Textiles – Spring Edition, fashion garment fair CHIC and knitting fair PH Value.

Overseas exhibitors found the fair an effective platform to open up the Asian market
Buyers benefited from wide range of quality exhibitors

The 23rd edition of Intertextile Shanghai Home Textiles is over, with both exhibitors and buyers satisfied with the business outcomes resulting from the fair’s four days. The largest home textiles trading event in Asia was held from 23 – 26 August, attracting 1,106 exhibitors from 30 countries and regions. Given the strengthening market conditions in China the fair maintained its popularity, with the number of trade buyers increasing to 38,964 from 99 countries and regions (2016: 37,779 from 98 countries and regions). The show also attracted more international buyers this edition, with a 16% increase in those coming from abroad. “Intertextile Shanghai Home Textiles has once again proven its leading position in Asia as a business and order platform for the industry. There was a noticeable positivity from both exhibitors and buyers this edition regarding the current and future situation of the domestic market, so we are optimistic about the industry for the next year,” Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd said.

Overseas exhibitors found the fair an effective platform to open up the Asian market

As the leading event of its kind in the region, the fair successfully attracts a number of Chinese and Asian buyers every year, ensuring suppliers can develop their business further in the region. This year, seven country and region pavilions including Belgium, India, Korea, Morocco, Pakistan, Taiwan and Turkey were formed, with exhibitors from all of satisfied they could meet their target buyers.

While being in the minority at the fair, European brands still managed to catch the attention of visitors due to strong interest in their products from Asia. The Italian upholstery supplier Enzo Degli Angiuoni Spa was satisfied with the number of Asian buyers, particularly Chinese, that they met at the fair. Mr Stefano Laurenzano, Export Area Manager expressed: “A lot of visitors that saw us here last year have come back again and are serious about cooperating with us. Here you can get a lot of new contacts and discover the Asian market. We’ve had mainly Chinese buyers, but have had more Asian buyers from South Korea, India, Malaysia and elsewhere to visit us this year. We are seeing more business here in recent years.”

Being a newcomer to the fair, Iceland Duvet ehf felt the potential in China. “We’ve had enough buyers including retailers and manufacturers visiting our booth to make our participation worthwhile. The interest from the buyers has been genuine. Being a European brand helps more than at fairs in Europe as we can stand out more here,” Mr Ragnar Ludvik Runarsson, representative said.

Indian exhibitor, Paramount Textile Mills Ltd has been joining the fair for three years. “Apart from meeting our existing customers, we’ve had enquiries from potential new customers from China as well as overseas including the US and South America,” Mr Ram. M., Director of Marketing & Finance said.

Also with three years’ participation, Mr Samir Tazi, General Manager of PIF Textile Emotions from Morocco affirmed the show’s effectiveness in meeting important buyers and decision makers. “It’s easier for us to meet them here compared with some smaller European fairs. Thanks to Intertextile Shanghai, we have also met the major players in China.” Talking about this year’s result, he continued: “We were very busy. We met with more people than any other fairs. There are a lot of new buyers and also returning buyers checking out our new products.”

Participating in the Korea Pavilion, Sangwon Textile Co Ltd found the fair helpful in attracting distributors and wholesalers from Southeast Asia. Mr Jeon Hyeon Tae, Sales Manager said: “We have found about five potential and quality distributors from Taiwan, India, Philippines and Singapore on the first day. We also got to meet a number of wholesalers who prefer to buy from us directly at the fair.” He added that Intertextile Shanghai is also an ideal platform to launch new products for their existing clients.

As the largest pavilion this year, the Turkey Pavilion was in the limelight of the show, with both new and veteran exhibitors finding it useful to exhibit in Intertextile Shanghai. Bezmez Ev Tekstil did not intend to receive any orders in their first show, but was surprised to obtain three in just one day. These concrete results reassured their likelihood of coming back next year. “We definitely see the potential for Turkish products here in China as Chinese companies prefer quality products nowadays,” Mr Ayhan Bezmez, representative, further commented. Mr Fahri Goksin, Vice President of Gokhan Tekstil agreed with Mr Bezmez that Chinese buyers are in favour of new things like imported goods and Western brands. His company has been in the Shanghai fair for six years and continued to get satisfactory results. “We’re looking for retailers, wholesalers and online buyers. We’ve had all of these visiting our booth already.”

Domestic exhibitors satisfied with the number of potential customers and orders received

Recently, there is strong signs suggesting that the home textiles market in China is recovering with both imports and exports rising gradually. The positive outcome that Chinese exhibitors achieved at the August’s fair have resonated with the market condition. It is no surprise to see a number of domestic booths packed with visitors throughout the days. SohoCUT is a case in point. To them, Intertextile Shanghai is the place for actual business. “Compared with other fairs we’ve been to, this is the exhibition where a huge number of international buyers gather. We met buyers from China, Mexico, Russia, the US, India and Southeast Asia. We even got large orders for the first two days.” Mr Wheatley Weng, Managing Director said.

The fabrics of Wujiang Linwang Weaving Mill is also sought after at the fair. Being a company that do both exports and domestic trade, they are happy to connect with local and overseas customers during the show. “We’ve collected around 100 leads on the first day, of which 70% are domestic and the remaining being international. The overseas visitors are from Italy, Poland, Germany, Denmark, Chile and Korea that our products precisely meet their requirement. We see high chances of cooperation after the fair.” Mr Kenny, Sales Manager said.

Given the prevailing smart home concept in China, Somfy China Co Ltd which specialised in advanced sun-protection system has become one of the highlights at the fair. Ms Nancy Nan, Chief Executive Officer mentioned: “The visitor flow has been really high that our booth is swarmed by buyers. Amongst those visitors, there is no lack of medium to high-end customers who placed orders immediately.”

Editors assembled to promote high-end products

To cater to the ascending standards of Chinese customers, Intertextile Shanghai once again brought editors together in hall 5.1 to maximise their exposure to their target buyers. As foreign brands with subsidiaries in China, JAB and Prestigious see the growing interest in their premium products in China. “We pay attention to the changing buying habits of Chinese consumers and, as such, have started promoting a series of products under a unified lifestyle trend. It’s obvious that we are gaining more awareness from buyers at the fair,” Mr William Lin, Vice President of JAB ANSTOETZ Interior (Shanghai) Co Ltd said. He also appreciated the specific display area for imported fabrics and the organisers’ attempt to attract more designers, which helped them meet more potential customers. Apart from getting onsite orders, Prestigious Textiles (Shanghai) Ltd also considers the show a promotion platform. “There is great demand for our products in China. Though we achieved similar sales compared with last year, through this fair our brand has been well introduced to the market,” Mr Lewis Liu, Sales Director expressed.

Originating from China, Euroart Co Ltd was another editor that successfully showcased their latest collection at the fair. “It is a good time to join the most influential home textiles exhibition in Asia as we have just launched new products in May. We are satisfied as some of our existing clients plus new visitors came to our booth,” Ms Guo Jianhua, Director Assistant said.

Industry players benefit from the expanded Digital Printing Zone

The demand for digital printing solutions has been growing in recent years, especially as the industry has put more emphasis on green production. As such, the Digital Printing Zone expanded in size this edition, incorporating a Seminar Area and more exhibitors.

As an Italian company, MS Printing Solutions Srl experienced the potential of the sector in China. “The fair has been busy, and we’ve had steady flow of buyers coming through. The potential in digital printing here is just beginning. The Chinese government is pushing companies to reduce their pollution, so it has a big advantage in this regard over traditional textile printing,” Mr Walter Oggioni, Regional Sales Manager stated, adding that the company has been growing very fast globally, especially in China, Turkey, India and Pakistan.

This potential holds for domestic machine manufacturers as well. Specialising in the production of digital printing machines, Guangzhou Xu Cheng Electronic Technology Co Ltd was at the fair to meet fabrics suppliers. Mr Jesse Luo, Overseas Manager explained: “Compared with exhibitions for textile machinery, Intertextile Shanghai attracts more fabrics suppliers, which are our target clients. It helps even more as we are located in this special zone. We’ve been talking to a lot customers, including overseas buyers who are also interested in our machines.”

A series of seminars also provided opportunities for the industry to share their insights on this emerging sector. As a speaker, Foshan Sanshui Yingjie Precision Machinery believed the session was mutually beneficial for them and the audience. “Attendees are from the whole sector including manufacturers and end users, so we can discuss different perspectives. It will facilitate our improvement,” Mr Peng Jichang, General Manager said. Mr Scott Bai, representative of Huntsman Textile Effects (China) Co Ltd also benefited from visiting the zone and the seminar. “Together with seminar, the Digital Printing Zone can professionally present the current situation for the industry. When suppliers and users come together, we can discover the way to enhance this technology.”

Buyers benefited from wide range of quality exhibitors

Intertextile Shanghai is the largest trading platform in Asia with the whole spectrum of home textiles and accessories on offer. Hence, visitors, be they Chinese or overseas, can access a wide range of quality suppliers that meet their sourcing needs. Australian buyer, Mr Glenn Whitchurch from Trabeth Textiles, was impressed with his sourcing journey. “The polyester quality of domestic exhibitors has been unbelievable. What’s more, we’ve found the Chinese suppliers to be very flexible in meeting our needs, they’re clearly keen to accommodate overseas buyers.” Mr Whitchurch also commented favourably on the product range at Intertextile Shanghai compared to European fairs.

One ongoing trend at the fair over recent years is the increasing quality of domestic suppliers, which attracts buyers to come back and source. Mezanin V SRL from Moldova is a long-term supporter of the show, and place orders every year. Its Vice Director, Mr Mihail Tornea remarked: “It is an important event for us to meet new suppliers from China. We are selective with the suppliers we work with, but the Chinese companies here meet our requirements. As a sourcing event, Intertextile Shanghai is the best place to be.”

The fair’s VIP buyer programme also assists buyers in meeting worldwide exhibitors at ease. Mr Bibo Lan is the co-founder of Loft Curtains in the US and he is excited to meet lots of potential suppliers here. “The arrangement for VIPs is satisfying and it helps a lot to have my target exhibitor information in advance. The largest benefit of our visit is that we met Libeco from Belgium, while we also confirmed to work with a blackout supplier at the fair,” he said.

Chinese buyers agreed that Intertextile Shanghai is the most effective sourcing platform in Asia. “Overseas suppliers like Turkey exhibitors are our main interest. So far, we have connected with four to five exhibitors in hall 4 and will place orders with them soon. In terms of exhibitor number and the product range, I feel that the fair has improved a lot. It is my favourite show with a lot of overseas products to discover,” Mr Huang Shenghua, General Manager of Ziranfeng Home Textile Co Ltd said.

Concurrent events inspired the industry

Apart from facilitating business between exhibitors and visitors, the fair also incorporated various design elements via a series of concurrent events. These included display area like Trend Area, International Fiber Art Exhibition and Home Furnishing Crossover Exhibition where participants could find innovative designs and ideas.

This was also the first time the Andrew Martin International Interior Design Summit and the fair took place concurrently. Experts from the interior design, architecture and art sectors were invited to share and discuss their views on the transformation of design in the new information era. Mr Kot Ge, founder of a domestic interior design studio, LSDCASA was delighted to join, and shared: “This show always attracts many top interior designers and it’s my pleasure to meet them here. Interior design and home textiles are closely related and new concepts can bring along improvement.”

Intertextile Shanghai Home Textiles – Autumn Edition was organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA). The next Autumn Edition will take place in August 2018, while the Spring Edition runs from 14 – 16 March 2018.
To find out more about this fair, please visit: www.intertextilehome.com.
For more information about Messe Frankfurt textile fairs worldwide, please visit: http://texpertise-network.messefrankfurt.com.

Huntsman Textile Effects has been named winner in the 2016 Dyestuff Manufacturers Association of India (DMAI) Awards. Huntsman bagged two awards in recognition of its ‘Excellent performance in exports of Dyestuffs by a large scale unit and ‘Excellent performance in Pollution Control by a Large Scale Unit’. The accolade is presented for outstanding contribution in supporting environment, health and safety and sustainability for the textile industry.
The awards were presented at the 67th Annual General Meeting of DMAI in Mumbai. Huntsman Textile Effects received the awards based on criteria such as innovation, creativity, development and quality.
“We are honored to receive the prestigious awards and are grateful to be recognized again this year,” said Nipun Soni, Site Manager for Huntsman Textile Effects’ Baroda plant. “This acknowledgement reaffirms Huntsman Textile Effects’ focus on innovation and continuous improvement in safety and hazard controls to meet industry demands. We continue to draw on the expertise of our people and established processes in product stewardship.”

Winners of the DMAI awards 2016 were determined by judging panel from chemical, pharma, dyes and dye intermediates manufacturing industries, among others. The DMAI ceremony was held in Mumbai on July 7, 2017.
This is the second consecutive year Huntsman Textile Effects has been presented DMAI Awards. Last year Huntsman was presented with awards for ‘Excellent Performance in Exports of Dyestuffs by Large Scale unit. Huntsman Textile Effects also won the award in the category for ‘Excellent Performance in Safety & Hazard’s Control by a Large Scale unit’.