From the Sector

With less than four months to go before Intertextile Shanghai Home Textiles takes place, the domestic market is showing strong signs of rejuvenation. China’s economy has stabilised recently, with 2016 GDP recording a 6.7% increase and reaching USD 10.7 trillion, while the National Bureau of Statistics also stated that the total sales of consumer goods last year rose 10.4% to nearly USD 4.8 trillion. Not only will the estimated 10 million couples getting married every year contribute to the strong demand for home textiles products, but the ascending living standards resulting from increased urbanisation together with the flourishing hospitality industry are also driving forces for the market. Apart from the domestic market, the Chinese home textiles industry is also actively opening up new markets around the world, particularly in the ASEAN region where exports continue to increase.

Along with the national 13th Five-Year Plan, the home textiles industry has also set its own development plan for the coming five years. Industry leaders, the China National Textile and Apparel Council and the China Home Textile Association, have announced that the home textiles industry is to be modernised by incorporating more innovative, technological and artistic elements. Annual growth of 5.5% and 3.2% for revenue and exports, respectively, are targeted, while automation is to be further promoted to enhance productivity.
Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd added that the prevalent whole-home trend in China will also stimulate the market as a whole. “More and more companies are starting to promote the whole-home concept which emphasises unified styles of decoration throughout the entire home to customers. Compared to demonstrating home textile products separately, showcasing whole-home furnishing is more appealing to Chinese buyers and will encourage sales. The synergy among products, especially those between home textile products and furniture is the emerging trend at present,” said Ms Wen.

Lectra achieved record financial results in 2016: €260.2 million in revenues, rising 10%, and € 26.7 million in net income, an increase of 14%. The Group consolidated its positions in automotive, and fashion and apparel, as well as acquired strong positions in furniture. Lectra has entirely transformed itself and today benefits from its bolstered technological advance, the enhanced expertise of its teams, an extended global footprint, and a refurbished campus.

Looking ahead, Lectra is in a strong position to carry out its new strategy, carefully conceived to empower its customers to step into the Industry 4.0 era. In close collaboration with global customers, Lectra has identified four mega trends that will change the business: the Millennials generation, the digitalization of companies, the emergence of Industry 4.0, and profound changes in China’s economy. Their impact, set to intensify, represents considerable challenges. Lectra’s annual report analyses the implications of these mega trends, and outlines the company’s response.
Helping customers to tackle such challenges, Lectra is gearing up to commercialize Software as a Service (SaaS), leveraged by cloud technology. Its expert knowledge of business combined with ten years’ experience in the industrial Internet of Things and rising investments in R&D, means Lectra is in a formidable position to help its customers seize opportunities in the new industrial age.            

Any uncertainty about the state of the global apparel fabrics and accessories industry in the coming year was widely dispelled at last month’s Intertextile Shanghai Apparel Fabrics – Spring Edition, with many exhibitors reporting strong increases in the number of contacts and enquiries they received compared to last year. While the visitor number was up slightly on last year – 71,450 from 103 countries and regions attended (2016: 71,163 from 100 countries and regions) – what was clearly evident in the feedback from exhibitors was that the quality of buyers sourcing at the fair continues to increase. Many exhibitors also commented that they received a healthy spread of buyers to their booths, both from China as well as from key markets in Asia and Europe, and that a satisfying proportion of these buyers were new potential customers.

Reflecting the fact that Intertextile Shanghai’s reputation as the industry’s leading event to conduct business each March & October has been steadily increasing over recent years, the exhibitor number grew by 5.9% this edition to 3,341 from 26 countries and regions (2016: 3,155 from 27 countries and regions). New exhibitor countries included Denmark, Malaysia and Poland. The top 10 visitor countries and regions, excluding Mainland China, were Hong Kong, Korea, Japan, the US, Taiwan, India, Russia, Turkey, Indonesia and the UK.