In this content Bangladesh Textile Today brings you the top news highlights that shaped and impacted the world of Textile, Apparel and Fashion 2015. Those news will be published in two series.

This is the last part of the series.

Kenya is fast emerging as a strong apparel sourcing destination

Kenya is fast emerging as a strong apparel sourcing destination for the West. This was confirmed by a McKinsey & Company's study which revealed Kenya will be the next hub for apparel sourcing in East Africa. The renewal of African Growth and Opportunity Act (Agoa), the US Trade Act, has significantly enhanced market access to America for qualifying Sub-Saharan African (SSA) countries. Also, some steps taken by the government has also led to the rise in interest in Kenya as a potential apparel sourcing destination. After visiting garment factories, interviewing players, including manufacturers and buyers, and analyzing market data, the authors arrived at this conclusion. Also, a third survey was conducted of 40 apparel chief purchasing officers (CPOs), where they were asked a series of questions that were focused on East Africa.

Among the CPOs, Ethiopia emerged as the most sought after nation and turned out to be the most attractive for international buyers of apparels. Out of the 40 CPOs, 13 said they would start sourcing from Kenya, five said they would increase the value of apparels they sourced from Kenya. Another 28 said they would start sourcing from Ethiopia and eight said they would increase the value of apparel sourced from there.

The survey 'East Africa: The Next Hub for Apparel Sourcing', shows Ethiopia has cost advantages, whereas Kenya has higher production efficiency. Mauritius is third, and 13 respondents said that they would start sourcing apparels from there, while another three said they would increase their value of apparels. Lesotho, Madagascar, Uganda, Tanzania, Botswana, Egypt, South Africa and Swaziland were the other African countries that are emerging.

Myanmar are emerging as next affordable manufacturing hubs

With China losing its status as a low-cost manufacturing hub, because of the rise in labour and production costs and changes in government regulations, countries such as Myanmar are emerging as next affordable manufacturing hubs. Importing countries from the West are now exploring new unexplored markets.

So, how to identify an untapped market? One way is to identify the cost drivers that determine the overall cost of the product. The other benefit by doing so is that the company can devise the strategies to reduce the biggest cost driver, and also help in the negotiation process with the service provider.

Many leading players turned to neighboring markets like India, Bangladesh, Vietnam, Indonesia, and Cambodia after sourcing from China started becoming expensive. However, despite having sufficient capacities to cater to the needs of western players, India, Indonesia and Vietnam are facing constraints due to increase in minimum labour wages, which is just an average of 20 per cent lower than China and in some countries because of the rising raw material costs.

Another major concern after fire and building collapses in Bangladesh and Pakistan is the level of compliance in Asian countries in building and fire safety, labour welfare and so on. Experts say incidents like Bangladesh building collapse in 2013 and the recent mass fainting in Cambodia's garment factories have further put western players in a fix. However, in 2014, more than 150 companies have assigned external organization to audit the compliance level of their suppliers in the Asian countries.

China, emerges a huge market for global apparel brands

China's young have taken to fashion in a big way. And a ripple down affect, it has given a huge boost to global labels, whose stores have mushroomed in most cities across the country. Indeed, it is easy to understand why China has emerged as one of the biggest markets for consumer products, particularly for clothing.  China has seen quick expansion of big brand names led by a sudden rise in fashion-conscious among consumers and the weak performances of world's largest fashion retailers in their home markets in the US and Europe.

Though growing rapidly, the Chinese market is still at an early stage of expansion offering attractive opportunities for foreign apparel brands. As Magnus Olsson, Country Manager at H& M AB points out this year, China and the US would once again be their biggest expansion markets.

COS (short for Collection of Style), a high-end brand from Stockholm-based H& M is also on an expansion spree in several locations including a new store in the commercial area of Sanlitun in Beijing. Nearly 400 new stores are planned by H& M across the world, US and China would be hosting the highest number of these store. H& M entered the Chinese market in 2007 and opened 69 stores in 2014, totaling to 271.

The world is looking to do business with Iran

After the signing of nuclear agreement between Tehran and US and its allies, the world is looking to do business with Iran. In fact, every industry would be affected after the rollback of sanctions, certainly the textile and garment sector is no exception.

Iran had recently announced it would be importing fabrics from Italy and other countries that had earlier announced they would do business after the sanctions are lifted. For India its good news as Iran imported $1.29 billion of textiles and clothing from the world in 2014 of which textiles was $1,292 million and clothing was only $4 million. India's share in the Iranian textile and clothing market was 11 per cent. Iran's total import of cotton yarn from the world in 2014 was $51.63 million. And India was the largest supplier of all types of yarns to Iran with approx $35.35 million worth of exports. India ranked 2nd in supply of made ups which was around $2 million and 5th in cotton fabrics at $3.19 million.

Experts believe that the entry of foreign producers will benefit the domestic industry by creating a competitive textile market. Companies set to benefit most immediately from the rollback of sanctions are those that are already present in Iran believes Ramin Rabii, Head of Turquoise Partners Group, an investment firm in Tehran. Germany's BDI industry federation believes exports to Iran could rise four-fold to more than $10.9 billion in the medium-term, up from 2.4 billion in 2014, thanks to the need to modernize industry.

Iran, though does have a long history of producing fabrics, however, the quality has declined in the absence of foreign competition. The feeling is that boosting of trade ties with textile producers will improve the quality of domestic products. Indeed competition is important to encourage domestic textile producers to improve their quality to attract more customers and increase their market share.

Overcoming challenges faced by sustainable clothing

Ethical fashion all sounds great, however, there are immense challenges facing sustainability in clothing. Estimated as the second-most damaging industry in the world in 2013 by the Danish fashion institute, 25 per cent of the world's pesticides are used to grow cotton alone, and one-fifth of industrial water pollution stems from the dyeing and treatment of fabric.

billion items of clothing per year are produced by the industry, which is enough to provide 20 new garments to every human on the planet. Therefore, one can imagine that addressing the impacts is difficult.

Quite fickle and driven by trends, no product solution in fashion stays in the market for long and even the economics of fashion are limiting. Decision-makers are invariably driven toward cheaper options as per-item profit in the industry is as low as 4 per cent. Thus, the question is, how can the industry truly transform itself?

The Future Fabrics Expo, an exhibition at London's Olympia exhibition centre recently, attempted to provide answers to this dilemma and showed some practical steps being taken to stimulate change.

A limited range of manufacturing materials makes sustainable clothing unsuitable for markets with fast product turnover is one of the accusations made at ethical fashion and by association, sustainable products in general. Essentially, they would go out of fashion too quickly. This perception was challenged by the Future Fabrics Expo. Developed by not-for-profit organisation, The Sustainable Angle the exhibition showcased over 1,500 ethically and sustainably produced materials, from luxury haute-couture fabrics to specialised textiles for sportswear and upholstery. Fabrics were derived from diverse crops such as tree bark, pineapple leaves and mushrooms, or created from industrial by-products or special polymers intended for fully closed-loop recycling.

USDA forecasts global cotton market outlook

Few significant changes were made to cotton market forecasts for 2015/16 in the latest USDA report. The world production figure increased only 70,000 bales and was essentially unchanged at 111.3 million bales. The world consumption estimate increased only 30,000 bales and was essentially unchanged at 115.3 million bales. The projection for world ending stocks was lowered slightly 217,000 bales from 106.3 million to 106.1 million. In terms of mill-use, the only notable country level revision was for Turkey with over 100,000 bales, from 6.3 million to 6.4 million. Trade figures increased 130,000 bales, with the change to global figures primarily resulting from a slight increase to the Turkish import number of over100,000 bales, from 3.6 million to 3.7 million and minor increases in export forecasts from Turkmenistan and West Africa.

There were several changes made to 2014/15 estimates. The largest was a 500,000 bale reduction to the Indian crop forecast from 30 million to 29.5 million. Along with a 100,000 bale increase to the estimate for Benin, the world production estimate for the current crop year increased 415,000 bales from 118.9 million to 119.3 million. The global mill-use number for 2014/15 was virtually unchanged to over 20,000 bales at 111.5 million, with a slight increase in Turkish consumption offset by minor decreases in Zambia and Zimbabwe. The Turkish import estimate also increased 100,000 bales. In combination with a 300,000 bale increase to the Chinese import figure, these changes lifted the global import figure by 450,000 bales. The corresponding increase in exports was primarily a result of a higher forecast for India with over 300,000 bales, from 3.8 million to 4.1 million.

With the decrease in Chinese imports in 2014/15, stocks outside of China increased to a record level. Despite declines in acreage and production in most countries in 2015/16, stocks outside of China are expected to change little in the coming crop year and are projected to decrease only 2 per cent from 43.4 million to 42.5 million.

Since trade figures and stocks outside of China levels are expected to be stable, it may be appropriate to think of 2015/16 as a period of consolidation, when the most important transitions relative to price direction made in 2014/15 were upheld. Considering that global stocks remain extremely high by historic standards, and assuming China will release reserves if prices move higher, this consolidation may signal the beginning of an era of consistently low prices.

Industrial Jeans- new age denim for blue collar worker

With clothes undergoing a paradigm shift from just something to cover oneself, to fashionable and trendy, and now eco-friendly, ergonomic and even thermochromic garments, the humble trouser has undergone a major change. Earlier, not much thought was given to comfort and protection of people involved in hard labour. But all that is set to change now. A vertically integrated manufacturer and engineer of patented products, World Patent Marketing, recently announced the Miller Industrial Jeans. This invention would give industrial workers comfort in a pair of trousers. Scott Cooper, CEO and Creative Director of World Patent Marketing points out Global Apparel Manufacturing industry's turnover is $618 billion a year, while it is growing rapidly in Asia and declining in the US. Companies in developed nations take advantage of cheap labour in emerging markets. As a result, rising number of manufacturers are leaving the US and Europe and setting up operations in North and Central Asia.

The Miller Industrial Jeans offers comfort and protection. Though clothes are used more to make a fashion statement, their basic purpose is to protect the body. The new invention is made of impenetrable material and designed for hard labour. These jeans have pockets that industrial workers and people on the move can easily use. They also have removable knee-pads that protect the wearer, besides being comfortable for walking, kneeling, and moving things around.

The apparel uses rectangular and flexible pads that allows air-flow and doesn't impede blood circulation. The fit is snug and makes use of hook and loop fasteners that secure the knee-pads in place. The good part is, these jeans can be used in any environment, hot or cold and would not wear down due to constant use. Thus, durability is a key factor.

"Make in India" boost to the country's denim segment

The global market for denim is forecasted to reach $64.1 billion by 2020. The Indian denim industry has shown continual growth over the years and currently the country boasts of a denim manufacturing capacity of around 1.1 billion metres per annum. Its utilisation levels are pegged at 80-85 per cent. Despite the impressive statistics, the Indian denim manufacturing industry contributes 5 per cent to the global scenario, reflecting the overall performance of the textiles industry.

Although India is the second largest textile manufacturer and also the second largest exporter globally, it contributes a minuscule 5 per cent towards India's overall exports. According to a report by UN Comtrade in 2013, India's textile exports were estimated at $40 billion whereas China's were pegged at $274 billion. There is a huge gap in the current capacity and potential of the textile sector. A white paper by Suryalakshmi Cotton Mills says that the "Make in India" initiative of the Indian government is targeted at bridging this gap effectively while catapulting the country into becoming a textile export powerhouse.
The global market for denim is forecasted to reach $64.1 billion by 2020. The Indian denim industry has shown continual growth over the years and currently the country boasts of a denim manufacturing capacity of around 1.1 billion metres per annum. Its utilisation levels are pegged at 80-85 per cent. Despite the impressive statistics, the Indian denim manufacturing industry contributes 5 per cent to the global scenario, reflecting the overall performance of the textiles industry. However, according to industry experts, denim is the only segment in the Indian textile industry that has the potential to grow manifold.

According to the Suryalakshmi report, an increasing number of global denim manufacturers are looking at India as an emerging denim export region owing to its quality standards, cost effectiveness and large pool of skilled work force. On the domestic front, the denim wear market is driven by increasing disposable incomes, westernisation of work culture and the ensuing rise in the popularity of denim jeans as business casual wear. With increase in globalization, young India prefers denims as a part of their essential daily wear.

India offers numerous advantages to denim manufacturers. It is among the handful of countries that has a presence across the textile value-chain, from cotton to garments. In addition, it has a huge skilled workforce and offers quality products at competitive costs. To remain competitive in the globally, most textile companies have adopted global standards of safety and environment compliance. Additionally, the country's demographics with an expanding purchasing power and modernizing fashion sense further contribute to the sector's growth. In fact, India has been ranked as a top destination for retail investments among 30 global emerging markets.