BGMEA demands Hall-mark probe

Garment exporters yesterday demanded a quick probe into the corruption allegations against Sonali Bank officials and the Hall-mark Group authorities.

In a written statement, leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also expressed concern that the scandal can seriously hamper the process of borrowing from banks by entrepreneurs in the industrial sector.

“The authorised dealer (AD) branches of the banks are showing apathy to the cases of local bill purchases due to the scandalous irregularities by corrupt bank officials and vested quarters among the business community,” said the statement yesterday.

The AD branches are often unduly referring the local bill purchases to the head office for further approval, or showing excuses, referring to the central bank, they said.

The alleged loan scam of Hall-mark Group, an apparel maker, would hamper new exploration initiative by real entrepreneurs as the scam could damage the brand image of the country, said the exporters.

The BGMEA leaders demand strict legal actions against those involved in the financial irregularities, the statement added.

An investigation by the Bangladesh Bank found that the Ruposhi Bangla Hotel branch of Sonali Bank is responsible for illegally disbursing Tk 3,547 crore loans to Hall-mark Group and five other companies between 2010 and May this year.

The investigation also revealed that Hall-mark Group alone took Tk 2,686 crore out of the total amount of loans.

Source: http://www.bgmea.com.bd/home/pages/BGMEAdemandsHallmarkprobe 

Read More

H&M purchase to double in five years

H&M, the Swedish retail giant for clothing, will double its annual outsourcing volume from Bangladesh to around $3 billion within the next five years. The biggest outsourcing company for Bangladeshi garment items said they get products at competitive prices from the country. Leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) revealed the plan of H&M at a press conference at its office in Dhaka yesterday. Karl-Johan Persson, chief executive officer of H&M, was present at the briefing. Persson arrived in Dhaka yesterday on a two-day visit to discuss business strategies and to meet Prime Minister Sheikh Hasina. “I am grateful to be here in Bangladesh. H&M has been doing business with Bangladesh for the last 30 years. We have a long-term commitment to Bangladesh,” he said in a brief speech. More than 100 journalists from the local and international media attended the press briefing. This is the second such visit by a chief executive of H&M. Earlier, the then CEO of the retail chain visited Bangladesh in 1999. “We are increasing business in Bangladesh. We are discussing different challenges in garment business,” said Persson, who is leading a five-member team of senior officials from H&M. The team will also visit several garment factories to oversee their production process. Currently H&M purchases woven garments, knitwear items, home textile, under garments and trousers from nearly 250 factories in Bangladesh. 

 

The company also outsources from China, Vietnam and Cambodia. “I sell garment items worth around $2 million to H&M per month,” said Siddiqur Rahman, a vice-president of the BGMEA. BGMEA President Shafiul Islam Mohiuddin said the leaders of the association visited the headquarters of the company last October. H&M has a big contribution to the garment business in Bangladesh.

 

“The H&M officials and BGMEA leaders discussed different opportunities and challenges for the growing garment business in the country,” Mohiuddin said. He said the garment makers have made significant progress in safety and compliance issues at the factory levels as per the requirements of the international buyers. The BGMEA is operating some hospitals and schools for the workers' children as part of their corporate social responsibility, he added. “We have the opportunity to grab more market share. But, we have to think whether we have the capacity to grab that opportunity,” he said. Jyrki Tervonen, chief financial officer of H&M, KG Fagerlin, global production manager, and David Savman, country manager for Bangladesh, accompanied the CEO at the briefing.

 

Founded in 1947, Hennes & Mauritz -- popularly known as H&M -- has around 2,600 stores across the world. H&M operates under five brands: H&M, COS, Monki, Weekday and Cheap Monday. In November last year, McKinsey & Company, a global management consulting firm, said Bangladesh's apparel exports could triple to $42 billion by 2020. McKinsey also said Bangladesh's high growth in the readymade garment sector would continue for a decade. In 2011-2012, Bangladesh exported garments worth $19.09 billion. 

 

Source: http://www.bgmea.com.bd/home/pages/HandMpurchasetodoubleinfiveyears 

Read More

H&M chief to visit Bangladesh

Karl-Johan Persson, chief executive officer of the Swedish retail chain H&M, is due in Bangladesh tomorrow (Monday) to attend important meetings with the readymade garment manufacturers and Prime Minister Sheikh Hasina. Three officials from H&M, including the chief financial officer and chief of global marketing, will accompany Persson for the two-day visit, said Siddiqur Rahman, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Persson will hold meetings with the BGMEA leaders and the prime minister, along with making factory tours, according to Rahman. “I cannot disclose specifics of his visit right now,” Rahman added. “But the CEO will definitely discuss issues surrounding the RMG sector of the country, as Bangladesh is an important outsourcing destination for H&M -- the company is increasing its purchase orders every year from Bangladesh,” Rahman said. 

Moreover, the company is now carrying out some important corporate social responsibility (CSR) activities in collaboration with the BGMEA, which the H&M officials are scheduled to discuss during the visit, he added. “A high-powered Chinese business delegation, too, is now visiting Bangladesh for investing in the garment sector in the country. The business delegation has already held meetings with its Bangladeshi counterpart on this matter,” Rahman said. H&M, thanks to its annual purchases worth nearly $1.5 billion, has overtaken Walmart, the world's largest retail chain, as the biggest buyer of Bangladeshi readymade garment products. Founded in 1947, Hennes & Mauritz, popularly known as H&M, has approximately 2,600 stores the world over. H&M operates under five different brands: including H&M, COS, Monki, Weekday and Cheap Monday. 

Source: http://www.bgmea.com.bd/home/pages/ChieftovisitBangladesh

Read More

Bangladesh wants more investment from China

A high level Chinese business delegation will be in the Bangladeshi capital Dhaka this week, to discuss expanding business opportunities.

In recent months, Chinese companies have started outsourcing more manufacturing of clothes to the South Asian nation.

The BBC's Bangladesh correspondent, Anbarasan Ethirajan, has been hearing the views of garment companies and their workers, about the prospect of more investment from China.

Source: http://www.bgmea.com.bd/home/pages/BangladeshwantsmoreinvestmentfromChina 

Read More

Bd - China apparel makers for business expansion in China

Bangladesh’s apparel exporters and their Chinese counterparts are looking for ways to expand Bangladesh’s readymade garment (RMG) market in China as Bangladesh produces quality products at competitive prices, officials here said on Saturday.

A Chinese business delegation, led by vice-president of Feng Dehu China National Garment Association (CNGA), arrived here on Friday and visited a number of RMG factories.

Founded in 1991, CNGA is a nationwide organisation of China’s garment industry.

“The way we’re progressing, we’ll definitely do better in the Chinese market,” President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) M Shafiul Islam told UNB over phone on Saturday.

Replying to a question, he said they are exploring opportunities and looking for collaboration with China in the largely untapped areas like high fashion clothes and textiles.

“It’s a new market…we’ve just got duty-free access there (China) which covers almost all Bangladeshi RMG products. It takes time to expand a market,” Mohiuddin said.

Bangladesh’s garment exporters enjoy more than 90 per cent of their products, such as T-shirts, jeans, sweaters and casual trousers duty free access to the Chinese market.

“China is Bangladesh’s next RMG market destination . .- here’s huge potential to have Chinese market for our RMG products,” BGMEA first vice-president Nasir Uddin Chowdhury said.

He said Bangladesh’s current RMG export to China is below US$ 300 million. “But it’s gradually increasing.”

Chowdhury, also the Managing Director of Eastern Apparels Limited, said the wage of workers in China is very high. “So, they can import RMG products from Bangladesh with better price.” 

 Source: http://www.bgmea.com.bd/home/pages/BdChinaapparelmakersforbusinessexpansioninChina

Read More

The export of textile and apparel declined by small margin in January-July

According to customs statistics, on August 10th, in January-July 2012 ,China `s foreign trade imports and exports valued at USD 2,168.37 billion. Compared with the same period in 2011 increased 7.1%. Among them, exports worth USD 1,131.24 billion, an increase of 7.8% y/y; imports worth USD 1,037.13 billion up 6.4% y/y. USD 94.11 billion trade surplus. The export of textile and apparel declined by small margin in January-July.

In July 2012 , China `s foreign trade imports and exports valued at USD 328.73 billion. Compared with the same period in 2011 increased 2.7%. Among them, exports worth USD 176.94 billion, an increase of 1.0% y/y; imports worth USD 151.79 billion , an increase of 4.7% y/y;USD 25.15 billion trade surplus, down 16.8%.

The export of textile and apparel declined by small margin in January-July. The export of apparel amounted to USD 82.93 billion, decreased by 0.2% y/y ;the export of textile amounted to USD 54.47 billion, decreased by 0.2% y/y.

In July 2012 , The export of textile and apparel amounted to USD 23.889 billion, decreased by 8.1% y/y and increased 4.37% m/m. Among them, the export of textile ( including yarn, fabrics and products ) amounted to USD8.002 billion, decreased by 8.06% y/y ; the export of apparel ( including clothing and clothing accessories ) amounted to USD 15.887 billion, decreased by 8.13% y/y.

In the United States, Europe and other developed countries and regions, subject to the European debt crisis , economic recovery is weak, the unemployment rate remains high,employment structure deteriorated and low consumer confidence. These factors limited the demand for textiles and garments and also limited the demand in related industry. The textile and apparel industry had been expected at the beginning of year “ exports will remain low or negative growth in the first half. ”

According to Ministry of industry and information technology of People’s Republic of China , international market remains in the doldrums, cotton’s price gap continued to expand between home and abroad and competition become more intense , these are the major limiting factors for China’s textile exports.

According to United States Customs ,in January-April, the imports of textiles and apparel from China accounted for 36.1% of the global imports of the similar products, down 4.04 percentage points over the same period in 2011;According to Japan Customs ,in January-April, the imports of textiles and apparel from China accounted for 73% of the global imports of the similar products, down 1.95 percentage points over the same period in 2011; While ,Over the same period, India, Viet Nam, Bangladesh and other countries all increased the market share in the United States and in Japan.

 

For the situation in the second half, according to Ministry of industry and information technology of People’s Republic of China , international economic situation is not encouraging and low international demand will continue. Textile enterprises are still in a difficult situation in the second half. The export of textile and apparel continues low growing, the whole benefits will sharply decline and business loss will expand. Many medium , small and micro-enterprises will be knocked out.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120827_1379516.html

Read More

In January-July 2012, wearing prices rose by 3.3% y/y

On August 9, the National Statistical Office released data shows: in July, the general level of consumer prices in China rose by 1.8 % y/y.

According to statistics, in January-July, the data rose by1.9% in urban, the data rose by1.5% in rural; Food prices rose by 2.4%, non-food prices rose by 1.5%;Consumer goods prices rose by 1.7%, services goods prices rose by 2%.wearing prices rose by 3.3%.Among them, clothing prices rose by 3.6%, footwear prices rose by 2.3%.In January-July, the national average level of overall consumer prices rose by 3.1% compared with the same period in last year.

 

In July, the overall level of China’s consumer prices rose by 0.1%m/m. the data rose by0.1% in urban, the data rose by0.1% in rural; Food prices fell by 0.1%, non-food prices rose by 0.2%;Consumer goods prices fell by 0.1%, services goods prices rose by 0.6%.Among them, wearing prices fell by 0.5%.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120827_1379515.html

Read More

New national standards for cotton will be issued in September

A few days ago, Hebei Fibre Inspection Bureau held the meeting of publicize and carry out cotton national standards. It was announced, the method for the determination of cotton grade used for 40 years will be replaced by color-level physical standard. New GB1103 cotton and velvet cotton standards will be issued on September 1, 2012. It will be implemented on September 1, 2013.

Compared with the original standards, more than 21contents had been altered inwhich, abolish the grades and implement color levels is the core content of the standards. It is an important initiative for fiber detection system is geared to international standard. It is also an important element of the reform in cotton quality inspection.

 

According to new cotton standards, large package lint would be fully checked by instrument. So as to fully achieve the scientific and objective assessment for the intrinsic quality of cotton. Take full advantage of cotton resource, Promote industrial upgrading and reduce the cost of textile. Improving the quality of textile products and promoting the development of cotton textile industry.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120827_1379513.html

Read More

All garment workers to be paid for Eid by today - BGMEA

Ninety percent of the factory owners have cleared their Eid payroll, with the rest expected to complete it by today, said the president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“Almost every year a section of garment workers is seen demonstrating before the festival due to some factory owners' failure to make timely payments,” said BGMEA's president Shafiul Islam Mohiuddin.

Mohiuddin spoke at a press conference organised at the BGMEA office in the capital.

“There should not be any kind of untoward incident this year as the owners have paid the workers timely,” he said, adding that he was pleased with the state of law and order in the garment sector so far.

He said the trade body formed 9 regional and 15 central monitoring committees to oversee the salary payment situation.

“Furthermore, we have suggested the owners to leave plenty of time for their workers to reach their villages for the Eid festival,” Mohiuddin said.

He added that according to his reports members of the regional and monitoring committees have visited more than 800 garment factories.

Mohiuddin said the BGMEA encourages foreign direct investments in specialised segments as the basic garment sector is self-sufficient.

The country's garment sector is going through a difficult period because of the continued economic crisis in Europe and the sluggish recovery of the US economy.

“This is why we are exploring new markets in China, Japan, Russia, Mexico, Brazil, Australia and South Africa, and encouragingly, exports to new destinations have increased by 12 percent.”

“But the problem is that our profit margins are narrowing down every year.”

Source: http://www.bgmea.com.bd/home/pages/AllgarmentworkerstobepaidforEidbytodayBGMEA_

 Looking Garments Buyers?? Click Here

Read More

All garment workers to be paid for Eid by today - BGMEA

Ninety percent of the factory owners have cleared their Eid payroll, with the rest expected to complete it by today, said the president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“Almost every year a section of garment workers is seen demonstrating before the festival due to some factory owners' failure to make timely payments,” said BGMEA's president Shafiul Islam Mohiuddin.

Mohiuddin spoke at a press conference organised at the BGMEA office in the capital.

“There should not be any kind of untoward incident this year as the owners have paid the workers timely,” he said, adding that he was pleased with the state of law and order in the garment sector so far.

He said the trade body formed 9 regional and 15 central monitoring committees to oversee the salary payment situation.

“Furthermore, we have suggested the owners to leave plenty of time for their workers to reach their villages for the Eid festival,” Mohiuddin said.

He added that according to his reports members of the regional and monitoring committees have visited more than 800 garment factories.

Mohiuddin said the BGMEA encourages foreign direct investments in specialised segments as the basic garment sector is self-sufficient.

The country's garment sector is going through a difficult period because of the continued economic crisis in Europe and the sluggish recovery of the US economy.

“This is why we are exploring new markets in China, Japan, Russia, Mexico, Brazil, Australia and South Africa, and encouragingly, exports to new destinations have increased by 12 percent.”

“But the problem is that our profit margins are narrowing down every year.”

Source: http://www.bgmea.com.bd/home/pages/AllgarmentworkerstobepaidforEidbytodayBGMEA_

 Looking Garments Buyers?? Click Here

Read More

12th Five-year Plan for the development of new strategic industries issued

Recently China has released a plan for the development of its new strategic industries from now to the end of 2015, according to a latest statement released by the State Council. The plan indicates the goals for the strategic emerging industry in the future 5~10 years.

The seven industries will maintain an average growth rate of more than 20 percent during the 2011-2015 period, the plan said. The seven new strategic industries include energy conservation and environment protection, new information technology, biology, high-end equipment manufacturing, new materials, new energy and new-energy cars, according to the plan. The total value-added output of the industries will account for around 8 percent in China’s gross domestic product (GDP) by 2015, it said. The plan aims to boost the innovation capability of those industries, improve the environment for innovation and starting businesses and strengthen their positions in global labor division. The plan also aims at enhancing the role of the seven industries in serving the upgrading of industrial structure, energy saving and emission reduction, raising people’s living standards and adding jobs. The statement further noted that the value-added output of these industries would amount to 15 percent of the country’s GDP by 2020.

 

Investment in research and development of new strategic industries reached more than 5% of sales revenues. Enhancing transformation in major scientific and technological achievements, mastering a number of leading core technology and building a number of innovative platforms in international advanced level. Let a group of enterprises have their key technologies , their own brands and products with independent intellectual property rights. Become a globally important research and development base.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120817_1375894.html

Read More

Apparel retailers had a big pressure in the first half

According to Nation Commercial Information Center of China , the cumulative growth of apparel retail sales value from January to June was 9.82%, compared to the same period in the last year(21.81%) decreased by 12% . It is worth noting that, the cumulative growth of apparel retail sales volume from January to June was only 0.99%.This means that the apparel retail sales growth mostly from price’s increasing. The reporter learned that, the cumulative growth of apparel retail sales in the first half of last year more than 20%,but growth in the first half of this year has not exceeded 10%. However, from the beginning of the second quarter, clothing retail sales began to pick up. Analysts believe that, Sales growth is mainly due to promotional activities in holidays.

Recently, several clothing brands listed companies released the first-half results.The results showed not encouraging. Mass leisure brand-Semir has announced the first-half performance reporting. Net profit was expected to decline 35%~45% in the first half; High-end men’s clothes brand-SINOER reduced their expectation, expected its net profit growth from 20%~50% cut to 0~20%. Rising rent in quality shops, is a great test for operation ability of domestic fashion brands .

According to the latest research results in China industry information center , In 2011, 2812 shopping centers in 106 cities across the country, rent had a more than 30% rise in quality shops.

 Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120817_1375893.html

Looking Apparel Importers?? Click Here

Read More

Galeries Lafayette planning to open a semicolon in China

France famous department store - Galeries Lafayette will continue bullish about the prospects of China’s market. It is said, Galeries Lafayette have begun to siting the second department store in China.

Chief Executive Officer of Galeries Lafayette Philippe Houze said the Beijing store would be a “test”, the company is siting China’s second store. At the same time , Galeries Lafayette is also seeking acquisitions to expand financial resources. Recently, Galeries Lafayette acquired Didier Guerin,Didier Guerin is a jewellery brand in France,having total of 34 stores in the Paris region and its turnover close to 50 million euros in 2011.Philippe Houze thinks that the downturn of global economic makes it easy for company acquisitions.

 

15 years ago Galeries Lafayette failed in Wangfujing shopping district for poor performance. Galeries Lafayette and Hong Kong I.T retail company established joint venture . The shopping mall will be opened in the second quarter of next year in Beijing. It is said that Galeries Lafayette still selling hand-made to high-end customers, Its operation will different from Xidan joy city, zhongyou department store, Grand Pacific Department store and Xidan Shopping Mall. It will be the first semicolon in Asia for Galeries Lafayette.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120817_1375891.html

Read More

In the first half sales value in Tianjin 30 department stores was CNY15.22 billion

According to Tianjin Commercial Commission, in the first half sales value in Tianjin 30 department stores was CNY15.22 billion, an increase of 20.7% y/y. Sales value in mid-to-high range department stores rose faster. 

According to Tianjin Commercial Commission, YouYi shopping mall ,Hisense Plaza shopping mall and other high-end shopping centers sales value was CNY 4.279 billion in the first half, an increase of 28.3% y/y;Zhenhua department store and other mid-to-high shopping malls total sales value was CNY 2.85 billion, an increase of 25% y/y;Quanyechang and other mid range shopping malls sales value was CNY 7.46 billion in the first half, an increase of 18.6% y/y; Yuetan mansion and other low-end markets total sales of CNY 0.631 billion in the first half, an increase of 19.2% y/y.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120817_1375890.html

Read More

Beijing department stores speed up the development of chain operation

As the capital regional consumer market enhanced, a growing number of department stores ,supermarkets chose chain operating mode. They occupy market by chain operation. At present, “Multi combination + differentiated management “ has become a effective commercial expansion path of development.

According to reporter statistics, including the Parkson shopping center, Guiyou Plaza, Blue Island, Cuiwei Plaza, Xidan shopping mall, Dangdai shopping mall , Wangfujing department store , Scitech shopping center, New World shopping mall, Hualian department store and so on, the large department store has at least 2 or more branches. Whether in foreign or domestic shopping mall department store brands, chain operation is fairly mature. It laid a foundation for expansion throughout the country.

Men’s Suits Retail Sales in BJ Department Stores Worth CNY 17.68 million in May

According to Beijing Commercial Information Consultation Center. Sales value of men’s suits in Beijing 18 mid-to-high range department stores in April 2012 and in May 2012 were CNY27.0433 million and CNY 17.6782 million respectively. In April, men's suits sales value down 12.68% m/m and down 5.03% y/y; In May, men's suits sales value down 34.63% m/m and down 27.55% y/y.

Looking further into the sales rank of department stores, Wangfujing Department Store, Cuiwei Palace and Xidan Department Store reported highest comparable sales in May; Looking further into the sales rank of brands, Kwunkeetailor ,S.D.Spontini and VICTOR reported highest comparable sales in May 2012. Among them, S.D.Spontini reported a CNY2.23 million sales value.

Department stores: Zihexin Plaza increased greatly up to 220% m/m

In May 2012, Beijing Top 10 department stores accounted for 87.01% of the overall men's suit sales value in Beijing 18 mid-to-high range department stores.In April men's suit sales value had a small decline ;In May most of the top 10 department stores continue to decline, resulting in overall sales value had a decrease of 34.63% compared with April.

Wangfujing department store sales fell 0.91% m/m, for CNY3.5816 million sales value won the Champion. Cuiwei Palace claimed the 2nd by a CNY2.5633 million sales value ,rose 1.69%. Xidan Department Store claimed the 3rd with a CNY2.4484 million sales value, fell 27.53%m/m. Yansha Youyi Shopping Mall was the champion in April, greatly fell 68.71%m/m ,slipped to the fourth place in May. Department stores from the fourth to seventh place sales of CNY 1.00 million to CNY 1.40 million. Men's suits sales value in the rest stores were less than CNY 1.00 million. Among them, Zihexin Plaza increased greatly up to 220% m/m, entered the top ten.

Fuxing Commercial City won the Champion

In May 2012, Beijing Top 10 department stores accounted for 92.76% of the overall men's suit sales volume in Beijing 18 mid-to-high range department stores . In May 60 percent of the top 10 department stores declined, resulting in overall men's suit sales volume had a decrease of 28.78% compared with April.

Fuxing Commercial City won the gold medal with a weak growth of 4.39% m/m. Wangfujing department store and Xidan Department Store declined in men's suit sales volume compared with April, but still ranking second and third place respectively by 16.12% and 11.95% market share of overall men's suit sales volume in the top 10 stores. Zihexin Plaza increased sharply nearly 177.92%m/m,entered the top fourth. Cuiwei Palace with 8.75% market share ranked the fifth. The market shares for the rest stores between 2%and 6% in sales volume.

Brands: Joeone’s sales value have doubled

Top 10 brands accounted for 43.14% of the overall men's suit sales value in Beijing 18 mid-to-high range department stores .

Kwunkeetailor reported a CNY2.23 million sales value with a growth of 48.77% m/m. Kwunkeetailor won the gold medal with an obvious advantage. S.D.Spontini, ranking second, sales value was CNY 1.03 million,down 43.6%m/m. Sales value for the third to the fifth between CNY 0.6 million and CNY 1.00 million . The rest brands were less than CNY 0.5 million. Among them, Joeone increased by 136.88%m/m, entered the top ten, achieved a ranking boost.

Shenglong accounted for 4.5% of market share

The top 10 brands accounted for 37.58% of the total Men’s suits sales volume in Beijing 18 mid-to-high range department stores in May 2012.

Shenglong increased 13.91%m/m in sales volume ,accounted for 4.54% of market share, claiming the 1st. Wumu decreased 61.96%m/m,claimingthe second. ESPRIT and EVE DE UOMO were claiming the 3rd and 4th rank in sales volume, accounting for 4.19% and 4.12% of market share respectively. Market shares for the rest brands were less than 4.0% in sales volume . Among them , Both Goldlion and Joeone had a growth more than 100%m/m. 

 Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120817_1375888.html

Read More

Forbes: 25 Influential Chinese In Global Fashion -2012

Peter Chan/Hong Kong
Chan chairs YGM Trading, a spinoff from the clan’s garment manufacturing business.  YGM acquired the Guy Laroche label in 2004, and in recent years it has also made a breakthrough with a UK brand, Aquascutum. YGM first obtained the rights to the brand in 42 countries and regions in Asia in 2009, and in May this year acquired it in full.
Eddie Chen/Shanghai
Chen leads Daphne, a Taiwanese shoe maker that has thrived in the mid-end of the market at a time of relatively slow economic growth in the mainland and whose shares have outperformed as a result. Chen is pursuing a savvy multi-brand strategy, and also working as a distributor of U.S. brands. Chen told Forbes earlier this year he was also on the lookout for acquisitions. Chen’s family was a member of the 2012 Forbes Taiwan Rich List.
Franz Chen/Taipei
Franz Chen is the founder and chairman of Franz Collection, which makes decorative Chinese-style porcelain tableware and vases. The company sells its wares in some 6,000 stores in 56 countries, and plans to increase its presence in China this year with new 10 stand-alone stores that will its total to 125.  
Pollyann Chu/Hong Kong
Pollyanna Chu, better known as the ambitious CEO of Hong Kong financial services firm Kingston Securities, made a splash in the luxury goods business this year by acquiring 75% of Hong Kong-listed Sincere Watch. Sincere Watch is the sole distributor of Franck Muller watches and accessories in Hong Kong, Macau, Taiwan and mainland China. Chu and her family ranked No.32 on the 2012 Forbes Hong Kong Rich List with wealth of $1.2 billion.
Jeffrey Fang/Hong Kong
Fang is a member of the Fang textile clan from Hong Kong. He has had success in the distribution of luxury apparel with his wife Christine at Global Retail Inc. Jones Group of the U.S. is a GRI partner.  GRI distributes Joan & David, Anne Klein New York, Nine West, and Pringle of Scotland among others.
Guo Shunyuan/Putian
It’s hard to walk very far in an airport in Beijing or Shanghai without running across advertising from Guo Shunuan’s luxury women’s bag supplier Powerland. The spending is helping the top line: Sales last year rose to 146 million euros from 113 mlllion euros a year earlier.  Powerland went public at the Frankfurt Stock Exchange last year.
Hon Kwok Lung/Hong Kong
Hon is a successful real estate developer that is having a growing impact in the country’s watch industry through successful partnerships with foreign brands via Hong Kong-listed China Haidian. Last year, Haidian bought the Swiss watch company Eterna AG Uhrenfabrik, which manufactures and sells watch brands Eterna and Porsche Design. It also set up joint ventures in Liaoning & Beijing to distribute Japanese and Swiss watch brands. Hon ranked No. 183 on the 2011 Forbes China Rich list with wealth of $870 million.
Hong Zhongxing/Shanghai
Hong Zhongxing leads K-Boxing, one of the largest men’s leisurewear chains in China with more than 3,000 stores.  “Loyal to Men,” K-Boxing has changed with the times to stay current since 1980.  
Patrick Lee/Shanghai
Taiwan-born Lee was named the Greater China CEO of Michael Kors last summer, and has quickly led the company’s expansion in China. By mid-2014, Michael Kors plans to have 40 stores in Greater China. Lee was previously worked at LVMH as the president of the company’s couture and perfume business in China. He is a graduate of the University of Southern California.
 Li Wei/Nanjing
Li Wei leads Nanjing fashion success story C.banner International Holdings, which recently changed its name from Hongguo International. The company, which went public in Hong Kong last year, is one of China’s largest retailers of mid- to premium women’s footwear. It manages self-developed brands and a licensed one.  In  May, it added three strategic investment partners: New York’s Mousse Partners, CVC Capital Partners and China Consumer Capital Partners.
Liang Yaohua/Guangzhou
Liang Yaohua leads Kisscat, a supplier of women’s footwear with 455 store  that is invested by IDG Ventures.  The company is gearing up for an IPO, industry analysts say.  
Henry Liao/Taipei
Liao leads Breeze Development,  one of Taiwan’s most successful upscale luxury mall operators whose  shops include brands such as Coach, Gucci and Prada in its Breeze Center in downtown Taipei.  Yet Breeze isn’t just in real estate. Breeze Development also has distribution ventures that import Ed Hardy, Minnetonka, Koolaburra, Frye and Madison and Mystique fashion brands into Taiwan. Last year, it purchased giuliano Fujiwara of Italy, and is expanding the brand in the mainland.
Shen Dongri/Beijing
Shen, with his sister Shen Jinhua,  is co-founder of Lancy, one of China’s most successful  brands aimed at women. Beijing-based Lancy competes with Ports 1961, whose leader Alfred Chan was a member our list of 25 Influential Chinese in Global Fashion in 2010. (See related story here.)  Lancy was a member of the 2012 Up-and-Comers List published by Forbes China, and raised 1.7 billion yuan in an IPO at the Shenzhen Stock Exchange last August.  Lancy also holds an exclusive China license for ZOOC, a South Korean brand.
Eric Shen/Guangzhou
Eric Shen is the chairman and CEO of Vipshop Holdings, an online fashion retailer that  listed on the NYSE this year, raising $71 million.. That’s no small feat at a time when many U.S. investors have been avoiding Chinese companies.  VIPShop had attracted pre-IPO venture capital support from Sequoia.  
Sun Jui-Hung/Taipei
From a modest start as an apparel trading company in Taiwan more than a decade again, Sun Jui-Hung rose into rarified air at the end of last year, obtaining capital from the LVMH investment arm L Capital. His company, Xin Hee , is best known for its main brand, Jorya, which opened a flagship store in Macau earlier this year.
Mimi Tang/Hong Kong
Tang is president of PPR Asia-Pacific, the French fashion giant led by the family of billionaire Francois Pinault whose portfolio of brands includes Gucci, Bottega Veneta, YSL, Alexander McQueen and Stella McCartney.  She started out at age 17 as a saleswoman in DFS.  Since joining Gucci in 1998, Tang has expanded her responsibility from managing a single brand in one country, to managing multiple brands in 14 countries with more than 3,500 employees under her leadership.
Uma Wang/Shanghai
Shanghai-based designer was in the U.S. this year a participant in the CFDA/Vogue Fashion Fund.  She has studied at China Textile University and Central Saint Martins, has participated in shows in London, Paris and Milan, and partnered with Audi in China.
Kent Wong/Hong Kong
When it comes to jewelry, Chow Tai Fook is the king among Chinese jewelers and it’s usually the controlling Cheng family’s spirited third-generation leader Adrian who is in the public eye. But Kent Wong keeps the business running day-to-day.  He helped to lead the company to a 79% increase in net profit in the year ending March 31, following the company’s successful IPO in Hong Kong last year. 
Wong Yat Ming/Hong Kong
Wong Yat Ming has since 2009 been the managing director at Trinity of Hong Kong, a high-end to luxury end menswear retailers primarily doing business in  Greater China and a member of the privately held Li & Fung Group. Wong helped to manage Trinity’s acquisition of the Cerruti Group in 2011. Under Wong’s leadership, Trinity’s revenue in the year ending Dec. 2011 increased by 30% to HK$2.6 billion; net profit rose by half to HK$513 million. Trinity also owns Kent & Curwen, part of a network of 503 stores.
Jacky Xu/Guangzhou
Xu leads Trendy International, which earlier this year reportedly received $200 million of investment from LVMH Group, one of the largest in China by the French fashion giant. Trendy’s top brand: Ochirly.
Allen Yang/Beijing
Founder of luxury goods site VIP Store has had a busy year successfully lining up investment:  Last September, VIP Store received cash from Intel Capital along with GSR Ventures and others.  The company also enjoyed a big breakthrough recently in when it obtained additional investment from Macy’s and formed a partnership in China with the storied U.S. department store chain.
Zhang Yuping/Guangzhou
Zhang leads Hong Kong-listed Hengdeli, one of the world’s largest distributors of luxury watches. The company, whose investors include Swatch and LVMH, had 405 retail outlets in Greater China at the end of last year, including its Elegant (top tier), Prime Time (middle tier) and With Time (mid-to-high-end tier) chains.   The company also sells leather goods and writing instruments
Zhang Zhifeng/Beijing

NE Tiger of Beijing isn’t one of China’s largest fashion companies but is established in the niche for traditional Chinese styles.  The company made a splash in U.S. last year during a visit by President Hu Jintao when high-profile promotion of Chinese culture in ads show in Times Square in New York featured celebrities such Tan Jing and Zhang Ziyi wearing outfits made by NE Tiger. 
 Zheng Yonggang/Shanghai
 Texile maker Itochu of Japan bought 28% of Zheng’s Shanshan Group a few years ago, and Shanshan’s expansion into retail helped both. The two in 2010 introduced Elle stores in China, along with StompStamp.  Shanshan itself also distributes European brands in China.
Zhu Chongyun/Shenzhen
Zhu Chongyun’s Shenzhen-based Marisfrolg is an elegant homegrown Chinese women’s brand that is slowly gaining traction around Asia, with stores in Singapore and Seoul among its overall total of 300 shops.  Zhu, a former factory worker, has been investigating the possibility of going public, industry analysts say. 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120815_1374975.html

Read More

Vancl looks overseas to further cut costs

Chinese online apparel retailer Vancl is relocating part of its garment production to other Asian countries such as Bangladesh in a bid to further cut costs, a company spokesman told the Global Times on Wednesday.

"Labor costs have been greatly reduced (by moving part of the production to Bangladesh)," said Chen Chu, public relations director at Vancl, noting that the new move could cut 5-10 percent of the cost for each item.

Chen noted that at present labor costs in Bangladesh stand at $75-$80 per person per month, while the cost in the domestic garment industry has surged to some $400.

China's garment producers are also seeking to take advantage of lower costs in other Asian countries. Jiangsu-based garment producer Newtop Printing & Dyeing Co, the subcontractor of Vancl in Bangladesh, said that it is considering setting up a factory in Myanmar.

In addition, Newtop is also talking with other online apparel retailers for overseas production, Dai Linlin, an employee at the company's trade department, told the Global Times.

China's leading position in the global manufacturing sector is being undermined by rising costs in the country. German sportswear maker adidas AG announced in July that it would shut down its only self-owned apparel factory in East China's Jiangsu Province in October.

Nike, adidas' major competitor, closed its self-owned shoe plant in Taicang, Jiangsu Province as early as in 2009.

Chen from Vancl said that currently the company is also eyeing such opportunities in countries like Indonesia, Cambodia, Vietnam and Pakistan.

So far Vancl has only moved the production of some basic clothing items to Bangladesh, such as Polo shirts, which do not require a quick turnaround or high production expertise.

"The cost advantage is still not obvious given that overseas production only accounts for a small part of the company's product line," said Chen Shousong, an e-commerce analyst at consultancy Analysys International, noting that a significant reduction in the costs will require production relocation at bigger scale in the future.

Chen from Vancl noted that problems like unstable political situation and inefficient infrastructure in the foreign countries may also create uncertainties for the company's overseas plan. Vancl aims to develop itself into a "fast fashion" company, posing high requirements for the production cycle.

"But overseas production cannot meet such requirements. And despite higher costs in China, domestic factories still enjoy higher production skills and shorter production time," Chen noted.

"Domestic garment industry is facing the pressure of rising costs, but still has its own edges like a complete industrial chain and advanced expertise," said Wang Zhuo, president of the China National Garment Association.

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120815_1374973.html

Read More

Chinese clothing maker seeks cheaper labour overseas

Vancl, one of China’s best-known fashion brands, has started shifting production overseas in an effort to cut labour rates and beat the country’s rapidly rising production costs.

The company, China’s largest independent online clothing retailer by sales, has started sourcing a small part of its production from Bangladesh on a trial basis, and plans to increase the proportion made outside China.

 A Vancl official said the company is contacting manufacturers in Indonesia, Cambodia and other southeast Asian countries as part of the outsourcing effort.

Vancl said the main incentive for the move was cheaper labour costs. “One Bangladesh worker’s monthly salary would be Rmb500 to Rmb600 ($80 to $95), while one Chinese worker now costs at least Rmb2,000 per month,” it said, noting that even after paying higher transport and other costs Vancl could save five to 10 per cent of total costs by outsourcing.

According to a report released Tuesday by the National Population and Family Planning Commission, China’s average monthly pay for migrant workers under the age of 35 was Rmb2,513 last year, up almost 30 per cent since 2009.

Difficulty recruiting workers was another reason, Vancl said, noting that the “new generation” of Chinese workers did not like factory jobs. Manufacturers across China in labour-intensive industries say younger migrants – many of whom have grown up in cities – aspire to service or white-collar jobs rather than assembly-line labour.

Vancl has not yet decided how significant a proportion of its production it will source overseas. “The production cycle can be as long as four to six months [in Bangladesh],” a company official said, while domestic suppliers are required to deliver in 30 to 45 days. Vancl said it also felt “proud of its traditional ‘made in China’ label.”

“Vancl only sells to the China market,” said Shaun Rein of China Market Research in Shanghai. “One of the reasons they win is they can introduce new products, tailored specifically for China, very quickly.” Sourcing from Bangladesh could jeopardize that, he said.

Still, more and more Chinese brands will outsource in this way, as domestic labour costs continue to soar, said Shao Ligang, of Beijing-based Jiupai Yixian apparel consultancy.

Torsten Stocker, head of the Asian consumer goods practice at Monitor Group, said: “But this is far from the end of textile manufacturing in China.

 

“A host of other factors influence sourcing decisions: labour productivity … training-skill level, degree of automation, degree of worker loyalty … and speed-to-market,” he said. “China will still have a significant role to play.”

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120809_1369609.html

Read More

Chinese clothing maker seeks cheaper labour overseas

According to the latest data from China Customs, in the first seven months of 2012, the total import and export reached 2168.37 billion USD, rising 7.1% from the same period last year. Of which, the export were 1131.24 billion USD, rising 7.8%; import 1037.13 billion USD, rising 6.4%.

The total export of textile and garment reached 137.4 bilion USD from Jan. to July this year, sliding down 0.2% from a year ago. Of which, textile export were 54.47 billion USD, down by 0.2%; garment export 82.93 billion USD, down by 0.2%.

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120813_1372635.html

Read More

Press Conference of "YIWU H&G 2012"& "YIWU S&G 2012" Held in Yiwu

Textile industry is the pillar industry of China. Although China's textile industry is experiencing challenges and opportunities under the 12th Five Year Plan, at the same time, the transformation and upgrading is ongoing that China's textile industry is still keeping healthy development. Being "One of the Top 10 Exhibitions of Zhejiang Province", The 13th China (Yiwu) International Exhibition on Hosiery, Knitting, Dyeing & Finishing Machinery (YIWU H&G 2012) and China (Yiwu) International Exhibition on Sewing Machinery & Equipment (YIWU S&G 2012) are always the industry's highlight. The shows gather the world's top-notch hosiery, underwear, knitting, garment machinery and provide the sourcing and trading platform to satisfy all sorts of needs of industry players. The exhibition has been held successfully for 12 editions, it is praised as the business barometer as well as the indicator of new technology of hosiery, knitting, underwear, garment machinery and equipment. "YIWU H&G 2012" & "YIWU S&G 2012" will be grandly held on Nov 27 - 30, 2012 at Yiwu International Expo Centre, Yiwu City, Zhejiang Province, PR China.

VIPs & Renowned Industry Players Participated in Press Conference
In order to keep industry players, associations and media updated about the progress and highlights of the show, the organizers held a press conference in Yiwu on Aug 2, 2012. Numerous guests attended the press conference, including: Adsale Exhibition Services Ltd., China Commodities City Group Co., Ltd., the shows' strategic partners: Chemtax Industrial Co. Ltd., Santoni (Shanghai) Knitting Machinery Co., Ltd., Shanghai Yin Science & Technology Co., Ltd., HBT Science & Technology Co., Ltd., MengNa Hosiery, Zhejiang Yiting Knitting Co., Ltd., Shantou Weishuang Garment Industrial Co., Ltd., as well as the leaders and key representatives of Yiwu City Hosiery Industry Association, Yiwu City Braiding Industry Association, Pujiang County Knitting, Printing and Dyeing Industry Association, Yiwu City Zipper Industry Association, etc.

During the press conference, the leader of Yiwu city delivered the opening speech, showed their great support to the show & affirmed the show's professionalism. Mr. Parry Chung, General Manager of Adsale Exhibition Services Ltd. stated, "Being the show organizer, I am glad to know that many leading enterprises, industry experts and associations support and participate actively in the show. This year, there will be numerous forums and seminars focusing on industry hot topics, the show will integrate technology, design and branding, aiming at providing buyers with all-round solutions."

Keep Abreast of New Development in Textile Industry
In "2012 Annual Conference on Social Responsibility of Chinese Textile and Apparel Industry", the sustainable development and working plan of textile and apparel industry are mentioned: To set structural adjustment and industrial upgrade as the main target; To set innovation, brand building and integration of these 2 elements as the main support; To develop a structural optimized, technological advanced, environmental friendly, high value-added modern textile industrial system.

Having served textile industry for 13 years, "YIWU H&G 2012" &"YIWU S&G 2012" aim at furnishing the transformation and upgrading of textile industry with the support of latest technology and equipment. It becomes one of the must-attend exhibition for professional buyers in hosiery, knitting, underwear, garment industry. It is expected that the show will gather over 300 quality exhibitors from 11 countries and regions at 15,000 sqm exhibiting area. It will display high efficient, energy saving machinery, accessories and new technology in full spectrum, which build a one-stop sourcing and trading platform for worldwide buyers as well as addressing the enterprises' demand for structural transformation and industrial upgrading.

Innovation, Design, Branding in the Spotlight
As China's textile industry is going globalized, the enterprises will be required to have higher standards. Branding, technological level, textile processing technology, innovative ability, etc. are the necessary elements. A series of concurrent activities addressing these hot topics will be held at "YIWU H&G 2012" &"YIWU S&G 2012", including "China Underwear Market Development Forum", "2013-2014 Underwear Design & Trends Forum", "Seminar on Management of China's Branding", etc. The highly recommended "Hosiery & Knitting Collections Display Zone" and "Underwear & Home Textile Display Zone" will be the show highlights that cannot be missed too.

Online Pre-register Now to Enjoy Fabulous Privileges
Visitors who complete online pre-registration on or before Nov 20, 2012 can enter lucky draw
to win Apple® iPad with Wi-Fi 16GB (3rd generation), Samsung Smartphone, USB, etc., Also, pre-registered visitors can be free from on-site registration procedure and get free copy of show catalogue (first-come-first-served, while stock lasts.). For more details and show update, please visit official show website: www.yiwutex.com / www.yiwusewing.com & follow the official show facebook: www.facebook.com/yiwutex

"YIWU H&G 2012" & "YIWU S&G 2012" are organized by China Commodities City Group Co. Ltd and Adsale Exhibition Services Ltd., co-organized by Yiwu International Expo Centre; and supported by China Chamber of International Commerce Yiwu Chamber of Commerce, Yiwu City Hosiery Industry Association, Yiwu City Braiding Industry Association, Yiwu City Seamless Knitting Association, Yiwu City Zipper Industry Association, Yiwu City Garment Industry Association, Yiwu City Glove Industry Association, as well as Pujiang County Knitting, Printing and Dyeing Industry Association.

 

Source: http://english.ctei.gov.cn/innews/domestic/201208/t20120808_1368717.html

Read More