From the Sector

EURATEX has just released its Spring report, offering a detailed insight into trade figures for the European textile and apparel industry in 2021. The numbers are encouraging: comparing with the dramatic corona-year 2020, EU exports of textile and clothing articles increased by +10.6%, while imports dipped by -7.5%. As a result, the EU trade deficit improved, even it remains significant (- €48 billion).

Furthermore, import prices went slightly down in clothing and dropped in textiles, following a strong decrease of Chinese import prices of face masks and protective medical supplies.

The boost in exports was mainly due to strong performance on the Swiss, Chinese and US markets. On the other side, EU sales of textile & clothing to the United Kingdom fell sharply (-23%), due to Brexit new requirements, customs’ delays and shortage of truck drivers.  Imports from the EU top supplier, China, plunged by -28%, corresponding to €13 billion. Similarly, textile and clothing imports from the United Kingdom recorded a sharp decrease over the period (-48%, equal to €-3 billion).

Director General Dirk Vantyghem commented: “the 2021 export figures, presented in this Spring report, confirm that EURATEX members have gained momentum; even if energy prices are causing some serious short-term disruptions, our long-term ambition remains to be a world leader on sustainable textiles.”

The international trade dimension is indeed critical for the competitiveness of the European textile ecosystem, and needs to be fully embedded in the EU’s Strategy for Sustainable and Circular Textiles. The Commission insists that “all textile products placed on the EU market, are durable, free of hazardous substances, produced respecting social standards…” This is an essential condition to create a level playing field between all textile and apparel companies, regardless of their production base. With €100 billion of imports, and over 20 billion of “foreign” textile items put on the Single Market, this requires a dramatic upscaling of market surveillance, without however disrupting fluid supply chains.

Looking at the impact of war in Ukraine, EURATEX has strongly condemned the Russian aggression, and offered support to the Ukrainian textile industry. Ukraine offers valuable sourcing opportunities for European textile and apparel brands, as part of a broader nearshoring trend, which seems to emerge from the trade figures.

Intertextile Shanghai Home Textiles has always been at the forefront of the China and Asia markets for participants to find the latest products from around the world and learn about the current market trends. This year, a series of fringe programme events together with some new show features will inspire fairgoers throughout the four-day fair.

New features for contract business

Given the growing demand for textile solutions for architecture, interior design and the hotel industry, the coming August fair will highlight leading contract upholstery suppliers with distinctive labels. In addition, the show will feature a showcase area at hall 5.1 which displays quality contract upholstery from exhibitors. The area will be decorated by interior designers, demonstrating the functionalities of different contract textile products.

To introduce the opportunities that the textile industry can capture from contract business, both domestic and international architects, hoteliers, interior designers and industry experts have been invited to share their insights about design, market, materials and project management on the Contract Business Days, on 28 & 29 August.

Naima A Khan, founder and interior designer from The Green Design in UAE, for instance, will be speaking on The Art of Sustainable Interior Design. She has worked with many international home fashion retail store developers, as well as textile and interior companies, and is experienced in using therapeutic colour schemes, sustainable materials and sunlight in different design projects. Another guest, Esra Lemmens, who is also a designer and active speaker at design events, will talk about the expanding importance of design throughout Dubai as well as her suggestions for doing business in Dubai.

Other speakers also include Martin Oliu from the international design company, Harmony World Consultant and Design (HWCD). He has participated in a broad area of design such as architectural construction & interior design and is responsible for various luxury residential and hotel design projects. Professor Thomas Charles, who has been working on industrial product design and research for user experience & consumer behaviour study, business strategy and branding designs will give a talk on ‘The Power of Innovative Design’. Trevira CS will also participate in the Contract Business Day through their Chinese representative, Jenny Zhang, who will share how the permanently flame retardant Trevira CS textiles can fit into contract business.

Digital printing and technics remain a focal point

The Digital Printing Micro Factory concept was first introduced in the 2017 edition of Intertextile Shanghai Home Textiles, and received much attention and positive feedback. To cater to the growing demand for efficient, one-step textile solutions, Global Fortune Limited from Hong Kong will work jointly with Kornit Digital and Bullmer to set up a Micro Factory at this August’s fair. An advanced digital printing system – Allegro & Cut by Kornit Allegro – will be introduced. The system streamlines the entire production process by combining printing and drying together so multiple machinery is not needed. It is also eco-friendly as one single ink set suits various fabric types, and designs will be printed in shapes and sizes that are ready for cutting. Visitors can learn more about the complete production process from printing and cutting to sewing via the onsite demonstration.

In addition to forums discussing how digital printing helps flexible production, there will also be an array of forums where some top domestic industry players will share their experience in resolving  technical problems in productions and satisfying requirements in different product tests.

Forward-looking events to ignite inspiration

The trend committee formed by international trendsetter the NellyRodiTM Agency has developed three themes, namely Caring Future, Crazy Future and Emo Future for the 2019 International Lifestyle Trends. Apart from the trend area where product displays are located, visitors can get a better understanding about the future living styles from the panel discussion and trend area tour. The agency’s creative director, Vincent Grégoire, will guide tours to explain the trend concept. He will also join other industry experts in the panel discussion on consumer lifestyle trends.

Another inspiring event during the show is the Future Talk in which representatives from different industries including fashion brand Shiatzy Chen, home appliance giant Haier, gourmets and lifestyle experts will share their perspectives on the future trends.

The show will be held from 27 – 30 August in the National Exhibition and Convention Center in Shanghai. Intertextile Shanghai Home Textiles – Autumn Edition is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).

To find out more about this fair, please visit: www.intertextilehome.com.

• Revenue up 11 percent to EUR 1,149.1 mn
• EBITDA increase of 38.8 percent to EUR 270.7 mn
• Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
• New sales offices opened in Turkey and Korea
• New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

Consolidated revenue increased by 11 percent from the first half of the previous financial year to EUR 1,149.1 mn. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 38.8 percent to EUR 270.7 mn, corresponding to an EBITDA margin of 23.6 percent in comparison to 18.9 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 57.4 percent to EUR 204.2 mn, resulting in a higher EBIT margin of 17.8 percent (H1 2016: 12.5 percent). The profit for the period improved by 58.9 percent to EUR 150.3 mn, and earnings per share climbed 59 percent to EUR 5.55 per share.

“The first half-year developed very well for the Lenzing Group, and we are pleased with the best half-year period in the company’s history. We will continue our disciplined implementation of the sCore TEN strategy. The expansion of new state-of-the-art production capacities for our specialty fibers is proceeding well and will support our customers in their own expansion efforts for products made of our botanic fibers. The decision to set up a subsidiary and acquire a respective landplot in Thailand is the next step in the implementation of this strategy. On the innovation side we are proud that after the introduction of RefibraTM branded lyocell fibers, we launched now EcoVeroTM. This is a particularly high-performance fiber featuring a very favorable ecological footprint and sets the new benchmark for the entire industry – from fiber to garment”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”