Pakistan - Unplanned export of raw cotton, yarn hurting apparel sector

Unrestricted export of cotton and cotton yarn has been creating serious problems for the apparel sector, whose exports are falling because of this issue.

The constant export of cotton and cotton yarn has pushed up their prices to new heights, ultimately increasing the cost of production of apparel sector, according to representatives of apparel sector.

Jawed Bilwani, Chairman, Pakistan Apparel Forum; Rana Muhammad Mushtaq khan, Central Chairman, Pakistan Hosiery Manufacturers Association (PHMA) and others said that unrestricted export of cotton yarn would have a serious effect on the exports of the value added apparels making it difficult to achieve our ambitious export target. The irony is that the cotton yarn is being exported to our competing countries, which is tantamount to arming them for competing in the finished product market. Value added apparel sector is converting raw cotton of 67 cent a pound into value added finished goods worth $5 to $6 a piece, earning valuable foreign exchange for the country.

Exports of raw cotton and semi-finished textiles have increased considerably in recent times, which is indeed alarming: Raw cotton exports were up 40 percent in FY08, 25 percent in FY09 and overall 20 percent from 2006 to 2009.

The month of May 09 alone registered an increase of 31 percent over the previous month, while June 09 registered increase of 117 percent over May. In the case of cotton yarn, exports increased by 4 percent in May 09, and by 14 percent in June 09. On the other hand, at the closing of financial year 2008-09, an unacceptable drop in exports was registered in major value added sectors, i.e., Knitwear -8 percent, Bedwear -10 percent, and Readymade Garments -4 percent, while exports of cotton increased by 25 percent while that of Yarn increased by 15 percent.

On the other hand, prices of different qualities combed and carded cotton yarn increased 24 percent to 33 percent in the last three months.

With the above rise in price of cotton yarn the cost of production of garments goes up by 10 percent. One can imagine the effect of this increase of 10 percent in these most crucial times with stiff competition form neighbouring and other competing countries, when the margin of profit of value added exporter of garment here is a mere 5 percent to 6 percent. “How can the exporter survive and exist under such circumstances,” they questioned.

India as well as China, main competitors of Pakistan, also export cotton and cotton yarn but they give regard to the requirement of the value added textile exporters and export only after determining the size of the crop and the exportable surplus, ensuring that the requirements of their value added textile exporters are properly met.

They said that our value added apparel sector is reeling under immense pressure of high costs of doing business, rising utility rates and several other problems. Further, this unrestricted export of major raw material, cotton and cotton yarn, has led to spiraling prices and is crucifying our exports of value added apparel which will lead to further closures of large number of export oriented units.

The EU and US—major importers of local textiles—are still trying to grapple with the deep-rooted economic problems. The IMF has predicted that GDP growth in the EU and US would remain flat in the current year.

Domestically, the power crisis, gas load shedding, high financing cost, other infrastructure problems and above all the deteriorated security situation caused a big dent in textile exports.

News Source: Daily Times

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Garments exports of Vietnam targetting new markets

Garment exports to new markets will account for roughly 5 percent of the industry’s total export turnover this year, according to the Vietnam Textile and Apparel Association (Vitas).

Vitas said that domestic apparel producers had recently won a number of export contracts in new markets such as Turkey and Egypt.

The Middle East had also become a major market for Vietnamese cotton clothing, while Russia had imported a high volume of children’s clothes – chiefly jeans and jackets, it had.

Vitas said it hoped sales to new export markets would partly offset a drop in orders from major markets such as the US and EU.

Due to the global economic slowdown, the country’s apparel export turnover to its traditional importers has shrunk markedly, forcing the industry to revise down its export target from US$10.5 billion to US$9.2 billion this year.

Vitas chairman Le Quoc An said the sector had earned US$5 billion from exports in the first seven months of this year.

With the monthly average export turnover expected to be about US$800 million from now to the end of this year, the industry’s total annual export revenue was likely to be US$9.2 billion, An said.

In order to meet its export targets, the sector must conduct more trade-promotion campaigns to find new markets, in South Africa, Africa and the Middle East, An said.

He added that Vitas would also look to promote Vietnamese garments in Asia.

Source: VOV News

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Rock Fashion Week Moves to Petersen

 

Rock Fashion Week and the Gen Art Fresh Faces in Fashion show are moving from Paramount Studios to the Petersen Automotive Museum.

This will be the Los Angeles debut of the two-day event, which is produced by New York–based Rock Media, one of the new players on the Los Angeles Fashion Week calendar.

“We had to make a decision about our venue and have made a decision to move from the Paramount to the Petersen Museum,” said Nicole Purcell, president and partner of Rock Media. “We have been in the middle of an exciting time for our company, as we recently merged with Gen Art. And our focus has been strategizing and preparing for all the programs we are creating. The Peter­sen makes sense as [Gen Art] has produced a number of shows there.”

Gen Art will host its show on Oct. 28, and lingerie label Biatta is also scheduled to host a runway show at Rock Fashion Week. A planned Halloween party on Oct. 31 has been canceled. Alicia Lawhon was originally slated to show her Reclaimed in L.A. collection at Gen Art, but the designer had to drop out of the show for personal reasons, according to Rock Media. Italian-born and Los Angeles–based designer Valerj Pobega will show in Lawhon’s place. Other designer collections on the lineup at Gen Art include Leyendecker, Rory Beca, Seneca Rising and MG Black and accessories labels CC Skye, The Generic Man, Ludevine and Stampd L.A.

Rock Media hosts similar Rock Fashion Week events in New York and Miami, as well as its three-day Haven fashion event, which bowed last February in the Hollywood Hills neighborhood of Los Angeles. (Haven featured a runway show that included Russell Simmons Argyleculture, Born Uniqorn and Yansi Fugel.)

“We have a formula that we augment to whatever city we’re in—we try to figure out what’s the flavor of each city,” said Rock Media Principal Scott Rosenblum earlier this year when he and Purcell were in town to put together a local team for the event.

“We are so excited to debut our Rock Fashion Week L.A.,” Purcell said. “It has been an ambition of ours to tap into this incredible fashion community, as we hope to be instrumental in supporting veteran Los Angeles talent, seek out emerging designers and be able to provide the international fashion community a chance to show with us.”

Rock Fashion Week will come at the end of nearly a month of fashion events in Los Angeles, including Downtown L.A. Fashion Week at the Geffen Contemporary at MOCA, Fashion on Broadway at the Los Angeles Theater in downtown Los Angeles, L.A. Fashion Weekend at Sunset Gower Studios in Hollywood and BOXeight in downtown Los Angeles, as well as many independent shows and parties.

News Source: Apparelnews.net

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US agrees to make changes in ROZs legislation

Pakistan has received positive response from the US on proposed changes in the Reconstruction of Opportunity Zones (ROZs) legislation, which envisages inclusion of garment industry and provision of setting up of ROZs in Balochistan. It was revealed to the Economic Co-ordination Committee (ECC) of the Cabinet in its meeting held on September 15 that Pakistan had proposed changes in ROZs legislation and received positive responsive from the US.

During the ECC meeting, an organisation at Federal level was proposed to be established to steer the programme of ROZs smoothly toward its completion. Institutional and infrastructure requirements were listed and it was stipulated that work on at least one ROZ in every province/area would start by March 2010.

During the presentation on Reconstruction Opportunity Zones (ROZs), the ECC was informed that a joint study group had been established in the US to discuss and finalise details for setting up ROZs.

Sources said that the ECC was informed that institutional arrangements were being made for implementing the ROZs scheme in Pakistan. According to the sources, the government plans to establish four regional ROZs in Fata, Azad Jammu and Kashmir (AJK), NWFP and Balochistan.

The ROZs initiative would provide duty-free export of a number of products, including textile and garments from designated areas of Pakistan to the US. It would provide Pakistan with an opportunity to enhance its exports to the US and stimulate economic growth in the under-developed areas of NWFP, Balochistan, AJK and the Fata.

The sources in Planning Commission said that the a Programme Management Unit (PMU) would be set up with an initial investment of Rs 80.605 million for a two-year period to develop a conceptual and institutional framework and steer the ROZs authority process forward.

In Pakistan, the ROZs will be established in NWFP, Fata, earthquake affected areas of Azad Jammu and Kashmir and parts of Balochistan for goods, including textile and garments, produced in the Zones, which would qualify for duty-free import to the US.

According to the sources, the PMU would be responsible for organising and managing consultation with the stakeholders, ie the Fata, NWFP, AJK and Balochistan; developing incentive package for investors as well as a system or enforcement procedure to guard unlawful trans-shipment of articles from the ROZs. The PMU would be a co-ordinating body with donor agencies in identifying projects for the ROZs, said the sources. The Planning Commission in its technical appraisal has held that the proposed PMU will outsource various short-term studies.

News Source: PRGMEA

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FN Platform to Hit Vegas in February

Advanstar Communications and Fairchild Fashion Group are teaming up to launch a new global footwear trade show.

FN Platform, a partnership between Magic International and Footwear News, will debut Feb. 16-18 and run concurrently with Magic’s other trade show events in Las Vegas.

“Magic has [already] become an enormous [destination] for footwear,” said Chris DeMoulin, president of Magic and EVP of Advanstar Fashion Group. “We saw the opportunity to grow our presence and create a show that will allow both dedicated footwear buyers and ready-to-wear buyers to see all of the brands together.”

“As the leading publication in the industry, FN is delighted to partner with Advanstar on FN Platform,” added Fairchild Fashion Group President and CEO Richard Beckman. “This exciting new show will build upon the publication’s unique and powerful bond with the shoe business.”

Leslie Gallin, a former WSA executive who is now VP of Advanstar’s Fashion Group, will be managing FN Platform with her team at Magic.

“We’re going to create an environment unlike any trade show the industry has ever seen,” said Gallin. “Magic is pulling out all the stops to create that ‘wow factor.’”

The show, which will be housed adjacent to WWD Magic, will be divided into five distinct areas with innovative environments and buyers’ lounges that bring each category to life. The sections include women’s fashion, men’s fashion, athletic/outdoor, comfort and children’s.

Already, a roster of big footwear firms have signed on to participate, including Nine West, Steve Madden, Vince Camuto, Stuart Weitzman, Hugo Boss, DKNY and many others.

Gallin said the timing of the show would allow buyers to launch their product during New York’s FFANY show earlier in the month and continue to roll out their collections a few weeks later at Magic.

“This is a huge opportunity to unite the industry and help get the different shows in sync,” Gallin said.

The move marks an expansion of the relationship between Advanstar and Fairchild Fashion Group. The two companies already work together to operate the WWD Magic show.

“Expanding our successful WWD partnership with Fairchild to create FN Platform is a natural evolution,” DeMoulin said.

News Source: WWD.com

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Export to EU marks 8.65pc growth in FY 2008-09

Export of Bangladeshi products to European Union (EU) witnessed an 8.65 per cent growth in the fiscal year 2008-09 ended in June.

Country’s shipment to 26 out of total 27 EU member countries reached US$ 8.2 billion at the end of last fiscal year, which was US$ 7.6 billion in FY 2007-08, data revealed by the Export Promotion Bureau (EPB) showed.

“We expected growth over 10 per cent in export to the EU,” a well-placed EPB officer told the FE adding that it began to slow down by the first quarter-end of last fiscal year (2008-09).

Shrinking purchase order in readymade garments (RMG) export triggered by global financial recession that started burning European markets by September 2008 was the main reason for the slower growth, the EPB officer said.

Export to Europe faced several other challenges during the period, he elaborated adding that “Self imposed ban on frozen food export and falling market of leather and jute items in Europe also worked as major catalyst to this slow down.”

According to EPB sector-wise export performance record, apparel export covers 85 per cent (US$ 7.1 billion) of the country’s total export to EU in fiscal year 2008-09. Frozen food was the second largest exportable items to EU, earned US$ 0.23 billion, covering 2.8 per cent of the country’s total earning, the data revealed.

Germany was the largest importer of Bangladeshi products in EU during last fiscal, followed by the UK. Export earnings from Germany registered an increase of 4.37 per cent at the end of FY 2008-09 comparing to the previous fiscal. Export earnings from the country totalled US$ 2.27 billion in FY 2008-09 against US$ 2.17 billion in FY 2007-08.

Besides that, Bangladesh’s export earnings from UK totalled US$ 1.5 billion in last fiscal against US$ 1.3 billion in FY 2007-08.

With the economic recession slowly easing out and export ban deadline on frozen food likely to over soon, Bangladesh’s export performance to the region likely to witness a healthier picture ahead, experts related to the country’s international trade forecast.

Other than textile and frozen food, Bangladesh exports tea, agri-products, leather and leather goods, raw and processed jute goods and some other exportable items to EU

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4th Japanese Trade Fair-2009 will be starting on Oct 15, 2009

The 4th Japan Trade Fair-2009 (JTF-09), organized by the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), is going to be held in the capital from October 15-17, 2009.

More than 35 companies from various sectors are expected to participate in the biennial fair, Toru Misabayashi, vice president of JBCCI said.

The fair will take place at the Bangabandhu International Conference Centre (BICC) and would remain open for public from 10:00am to 8:00pm, he said.

Addressing a press conference in a city hotel Wednesday, he said, renowned companies including electronics, automobiles, IT equipment, capital machinery, readymade garments, leather products, cargo transportation and logistics providers will exhibit their latest products in more than 100 booths at the fair.

Different Japanese government and semi-government organizations will also take part in the fair, he added.

Chairman of Japan-Bangladesh Joint Committee for Commerce and Economic Cooperation (JBCCEC) Tokyo will lead a six-member high-powered economic delegation from Japan to visit Bangladesh on a three-day tour, T. Uehara from Embassy of Japan said at the press conference.

They will also hold a meeting with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) as per schedule, he said.

JBCCI organizes the trade fair in Bangladesh every two years in support of the Embassy of Japan, Japan External Trade Organization (JETRO) and Japanese Commerce and Industry Association in Dhaka. Windmill Advertising Limited will organize the trade fair this year.

News Source: apparel.com.bd

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SIS garments workers stage sit-in for dues

The workers of SIS Garments staged a sit-in-demonstration at Muktangan in the city Wednesday demanding all outstanding arrears and the arrest of their employer.

The leaders of National Garments Workers Federation (NGWF) claimed that SIS Garments authority illegally closed the factory on September 13 without prior notice, said a press release.

They further claimed that the authority did not pay the wages of three months from July to September and overtime dues of five months from May to September.

The authority must pay rightful compensation with all the dues to the workers, the leaders demanded, added the release.

The federation President Amirul Haque Ameen, central leaders Faruq Khan, Arzu Ara and Bangladesh Garments Sramik Oikkyo Parisad leader Alomgir Roni, addressed the workers.

News Source: apparel.com.bd

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Bangladesh garment exporters to use Pakistani fabric for EU

Bangladesh has agreed, in principle, to issue GSP "Form A" to imported fabric from Pakistan from January 1, 2010. This was stated by Federal Advisor on Textile Dr Mirza Ikhtiar Baig in a statement issued here on Tuesday. Dr Baig said that he had taken up the matter with the authorities in Bangladesh at several forums in the context of Sri Lanka, which also allowed a similar facility to Pakistani fabric.

He said that Bangladesh and Sri Lanka are members of SAARC, which allows duty free trade of ggoods among the member states. Dr Baig said that garment manufacturers in Bangladesh would buy Pakistani fabric after this facility, thus providing a boost to Pakistani fabric. He pointed out that Bangladesh Textile Manufacturers and Exporters Association was opposing the import of fabric from Pakistan for the manufacture of garments when European Union had allowed GSP Plus status to Bangladesh.

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Garment retailers urged to pay Asian living wage

Activists in 11 European countries are launching a series of campaigns this week calling for retailers to pay a living wage to all garment workers in their supply chains.

In particular they are pressing retail giants such as Carrefour, Tesco, Aldi and Lidl to take up a ground-breaking new proposal for an Asia Floor Wage (AFW) which would see the equivalent of a 475 dollars a month minimum wage throughout Asia.

"The Asia Floor Wage Alliance is uniting unions and NGOs in Asia around a common wage demand," says Mr Jeroen Merk of the Clean Clothes Campaign International Secretariat. "It's a powerful response to industry practices that have kept wages at a poverty level and play off workers against each other."

The AFW, calculated using the World Bank's purchasing power parity, would allow workers to purchase the same set of goods and services across key garment-producing countries in Asia, the campaigners suggest.

They add that a living wage is regularly denied to workers in the garment industry where workers, mainly women, who produce clothing for international retail chains often live in severe poverty.

The proposals will be formally launched with events in countries across Asia this week including India, Indonesia, China, and Bangladesh.

News Source: AEPC India

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