Textile Asia

The Editor's Page:

By Max W. Sung

When Europe sneezes, will Asia catch a cold?: Financial contagion has been a central concern as the European Union scrambled to bring the Eurozone sovereign debt crisis under some control. The possibility that euro states with trade deficits - such as Greece, Ireland or Portugal - which had been facing difficulty in re-financing their debts, could "infect" other member states in good financial health, because of their creditor status, is terrifying for those within as well as outside the European Union. In October, the Eurozone leaders increased financial assistance to the states in need up to one trillion euros through the EFSF (European Financial Stability Facility) mechanism. The rescue package included an agreement for banks to accept a write-off of 50% of the debt Greece owed to private creditors. These measures have been instrumental in stabilising the euro and preventing financial contagion from spreading amongst the Eurozone member states.

Last year, in May, the Eurozone members and the International Monetary Fund agreed to a 110-billion-euro loan for Greece on the condition that austerity measures to reduce the fiscal deficit are to be instituted. These measures included spending cuts and tax increases which were not well received by the Greek people, leading to a national strike and protests. Since that time, austerity measures have been implemented in the member states which received rescue bailout packages for their deficits. Much has been written about whether or not these austerity measures might just prolong and deepen recessions in beneficiary states.

Clamping down on imports to reduce trade deficits is the likely fallout from these austerity measures. For 2011, first Eurostat estimates for the 17-member Euro Area showed an overall trade surplus of 2.9 billion euros for September 2011 compared with a surplus of 500 million euros for September 2010. For textiles and clothing, imports to EU were worth 63.2 billion euros and exports 8.7 billion euros, resulting in a net deficit of 54.5 billion euros. Trade data for 2011 are not yet available; nonetheless it is obvious that for the many Asian and African countries which have become dependent on exports to the European Union and the US, austerity measures in Europe can hamper growth in the US and impact adversely on their economies. "Europe, the largest buyer of Indian apparels, is in the doldrums. Italy and Spain are buying much less, US is a bit better than Europe and there has been some recovery in demand. We are expecting a 15% drop in apparel exports," said Premal Udani, chairman of the Apparel Export Promotion Council (AEPC) in India this month. In fact, orders from Italy and Spain have become almost non-existent. Apparel contributes up to $13 billion to India's $25-billion textile export trade, 80% of which is destined for the European and US markets. Fabric export is also expected to be down by 5%. It is interesting that figures from the Directorate General of Commercial Intelligence and Statistics (DGCIS) had indicated that apparel exports from India for the six-month period of April to September 2011 had increased 30%; however experiencing volatility in exports in the past three months. For Pakistan, textiles and clothing exports declined by 19.14% in November this year compared with previous November, according to data from the Federal Bureau of Statistics (FBS). The recent reduction in interest rates and depreciation of the Pakistani currency did not halt this decline. The first four months of the current fiscal year had previously shown an increase in exports by 3.29% compared with the same period last year.

The China Chamber of Commerce for Import and Export of Textiles reported that clothing exports to the EU for the first nine months of this year increased by 7.6% from the same period last year. Clothing exports to the US in the same period showed however a 14% drop in the growth rate compared with the same period last year. As with other Asian countries, many textile exporters have faced a slump in the past two quarters. In addition, China faces loss of some of its textiles and clothing business to lower wage countries such as Vietnam and Cambodia, while the appreciation of the renminbi has made its exports less competitive to Europe and the US. According to China Customs, European orders for Chinese goods overall have fallen 22% since September. On December 1, Beijing announced the first contraction since 2009 of its manufacturing sector.

On October 30, when The Committee of Ten African Ministers of Finance and Central Bank Governors (The C-10) met in Cairo, Egypt, they issued this statement: "We reviewed the impact of the recent developments in the United States and European Union on Africa. We highlight that a one percentage point drop in OECD countries' growth rate will translate into a 10 per cent drop in Africa's export and half a percentage point lower GDP growth rate." At a news conference on December 3, the director-general of WTO, Pascal Lamy, added: "Africa is still dependent on trade with Europe, which is the first trade partner. The order of magnitude in what you find in economic research is that -1% for Europe's growth equals -0.5% for Africa's growth. I have no doubt that (the crisis) will impact Africa's growth in years to come, which is one of the reasons why Africa has to try and become more dependent on other sources of trade than the EU market."

Yes, Asia has already caught the cold, but recovery should soon be on the way, as the textiles and clothing industry looks for solutions and markets outside the EU and the US. It remains to be seen if the free trade agreements which have been negotiated between ASEAN and other Asian countries can buffer the downward spiral in textile exports from Asia.

ITMA 2011

Textile Asia's consulting editors Dr Tao Hua and Dr C.W. Kan comment on machinery and technology displayed at the eight-day long 16th trade fair that ITMA held in Barcelona, Spain, in September. This issue contains review of:

Weaving machines by Tao Hua
Inkjet printing by C.W. Kan
Measuring instruments for textile wet processing, by C.W. Kan
Preparation, by C.W. Kan § Printing, by C.W. Kan

Exhibitions and Conferences

ITMA Asia + CITME expects strong turnout in June: Some 1,300 textile machinery manufacturers from China and elsewhere will present their latest equipment and technology at the 3rd ITMA Asia+CITME exhibition which is set to take place in Shanghai, China, from June 12 to 16, next year. Exhibitors from China will of course be the largest country group in this leading machinery show in Asia while foreign exhibitors will come mainly from Japan, Germany, Italy and Switzerland.
Green issues remain focus of Heimtextil: Environmental awareness and responsibility will be the recurring theme throughout Heimtextil that is scheduled to take place in Frankfurt, Germany, from January 11 to 14, 2012. Messe Frankfurt, the organiser of the fair, has learned from a 2010 study it commissioned that world demand for sustainable textiles expand about 10% each year. As much as 81% of the visitors to the Heimtextil last January had also rated sustainability as important.
Bread & Butter Berlin: Bread & Butter Berlin, a biannual presentation of selected brands of apparel that debuted in Cologne, Germany, in 2001 will hold its 26th presentation on the grounds of the Berlin-Tempelhof Airport from January 18 to 20, 2012. This will be the sixth time this event is held at this historic site.
Ethical fashion show: Sustainable lifestyle meets international trend when the Ethical Fashion Show Berlin makes its debut during the coming Berlin Fashion Week (January 18-20, 2012). This first presentation of its kind is being organised by Messe Frankfurt as an independent event. It will present street fashion and casualwear made using sustainable methods. The distinguishing features of the new fair will be an in-depth understanding of the modern, urban lifestyle, a sure taste for good design and a high level of quality among the green labels on show.
Collection Premiere Istanbul: Collection Premiere Istanbul (CPI), a designers fair presenting international fashion brands and regarded as Turkey's top fashion event, will hold its next edition in February in conjunction with the Istanbul Fashion Week. The fashion week is scheduled from February 7 to 10 while CPI opening on February 9 will last until the 11th.
Edana confab on personal care products: Edana, the association that is serving more than 230 member companies in the nonwovens and related industries in over 30 countries, will hold a three-day symposium in Dubai, United Arab Emirates, on healthcare products and their markets next February and its annual conference in Barcelona, Spain, next September.
Texworld and Apparel Sourcing: The biannual trade show, Texworld, will take place at Paris Le Bourget, France, concurrently with the 2nd Apparel Sourcing show, from February 13 to 16, 2012. Both are organised by Messe Frankfurt.
Central Asia fashion: The biannual Central Asia fashion fair will take place in Almaty, Kazakhstan, from March 15 to 18, 2012. This event organised by Central Asia Trade Exhibitions is supported by the chambers of commerce of Kazakhstan, Kyrgysthan, Afghanistan as well as the Kazakhstan-Turkish Businessmen Association (KATIAD), Kazakhtan Textile Association (LEGPROM Kazakhstan), and the Kyrgyzystan Textile Association (LEGPROM Kyrgyzystan).
HK, Guangdong bid for Indonesian market: The Hong Kong Trade Development Council in cooperation with the Department of Foreign Trade and Economic Cooperation of China's Guangdong province is planning a lifestyle expo in Indonesia for promoting both Hong Kong's and Guangdong's consumer products and designs. The three-day expo scheduled from March 15 to 17, 2012 at the Jakarta Convention Centre, in the Indonesian capital will provide manufacturers and traders in Hong Kong and Guangdong a new opportunity to tap the huge market potential for stylish and value-for-money products in Indonesia.
Textile printing expo in Shanghai: CSTPF - the 3rd China (Shanghai) International Textile Printing Industry Expo is to be held on March 20-22, 2012, at Shanghai New International Expo Centre, China.
Two textile shows in Atlanta in April: The 9th Techtextil North America and the 1st Texprocess Americas that will also incorporate the SPESA Expo will take place in Atlanta, Georgia, USA, from April 24-26, 2012. Techtextil is dedicated to technical textiles and nonwovens while Texprocess Americas will focus on equipment and technology for sewn products. Both events are organised by Messe Frankfurt, and they will be held at Georgia World Congress Center.
Cotton Day India: Cotton Council International (CCI), the export promotion arm of the National Cotton Council of America, plans to hold a cotton day in Mumbai, India, in mid-2012.
Fiber Society conference: The US-based Fiber Society which is composed of members who are chemists, physicists, and engineers with interests in the field of fibre science engineering and technology will hold its next international conference, from May 23 to 25, 2012 at the Empa facilities, St. Gallen, Switzerland. The theme of the conference is: Fibre research for tomorrow's application. English is the conference language.
RISE conference: The third annual conference on research, innovation and science for engineered fabrics, or RISE, sponsored by INDA, a leading global association of the nonwoven fabrics industry, is scheduled at Hilton Baltimore, Maryland, USA, from next October 22 to 25.
Yarn Expo in Shanghai: Yarn Expo, a trade fair regarded as a specialised business platform for the yarn and fibre industry, will take place at the Shanghai New International Expo Centre in Shanghai, China, from October 22 to 24, 2012. It is organised by Messe Frankfurt, the Sub-Council of Textile Industry-CCPIT, China Cotton Textile Association, China Wool Textile Association, China Chemical Fibres Association, China Bast and Leaf Fibres Textiles Association, and China Textile Information Centre.
ITMF sets annual meet in Vietnam: The International Textile Manufacturers Federation (ITMF) will hold its annual conference in Hanoi, Vietnam, from November 4 to 6, 2012.
Design Week in Hong Kong: A leading annual event on design, innovation and branding, Business of Design Week (BODW), took place early this month at the Hong Kong Convention and Exhibition Centre. This year, the organiser, Hong Kong Design Centre, partnered with Germany to bring the best of the global design world to the city and the guest of honour at the opening ceremony, chief executive of the Hong Kong SAR Donald Tsang Yam-kuen, declared 2012 as "Hong Kong Design Year".

In addition to a series of exhibitions, forums, outreach programs and networking opportunities for designers, business leaders, educators, SMEs and the public to exchange ideas and address a wide array of 21st century challenges, BODW 2011 also featured a Fashion and Apparel Track, at which four fashion celebrities and business leaders from international fashion houses were invited to share their thoughts on fashion trends and tell their brand stories.

By Alpana Shrestha

Technical Features

Conductive fabrics and their application: This study investigates the development of e-textiles used for making smart clothing and protective apparel as well as medical textiles and decorative fabrics.

By P. A. Khatwani, K. S. Desai, Dept. of Textile Technology, Sarvajanik College of Engineering & Technology, Surat, Gujarat, India
Laser technology in textile industry: There are many advantages of using laser technology in cutting, engraving, etc., in apparel making; among them, less chance of product damage and no by-product disposal.

By Usha Sayed, Navodit Kadam and K. Avinash, all of the Dept. of Fibres and Textile Processing Technology, Institute of Chemical Technology, Mumbai, India
Continual mixing and metering of liquid dyes and additives: Dyeing polymers is a process that takes place during the production of yarns as well as in many other production processes. Rowasol, a subsidiary of the Rowa Group, and Oerlikon Barmag have jointly developed a system for mixing and feeding liquid dyes during the production process.

By Ulrich Helbing, Manager, Research & Development, Gear Pump Division, Oerlikon Barmag

Asia Spotlight

Asia commands 56% world market with record high exports: A steep fall and impressive climb back. That is how the global textile and garment trade behaved in the past two years. Asia claimed 81% of the more than $75.5 billion trade expansion last year. Asian exports of textile and clothing reached record US$338.89 billion. In 2009, when the recession in western economies reached its full fury, textile and garment trade worldwide had suffered almost $85.5 billion slump from the 2008 peak of $612.03 billon. As much as 88% of that loss has been recovered last year; and Asia's share of the world market has expanded from 50% in 2008 to 56% last year.
China cost rise reshapes apparel sourcing in Asia: Rising production cost in China is driving some global apparel brands to turn towards other Asian countries; but the high quality end of the market will remain with China.

China is seeing its apparel export losing some steam to the benefit of countries in the Asean region, due to rising operating cost, according to Henry Tan, the CEO and president of Luen Thai Holdings, a leading apparel manufacturing and supply chain service provider, in a speech titled "What is the future of Hong Kong's Apparel Industry?" which he delivered in Hong Kong last month. China and other Asian countries will continue to be major apparel producers, says Mr Tan; however, they will serve three different price levels of products. The low price products demanded by retailers such as Walmart and Kmart, can only afford to buy from manufacturers that pay workers less than $200 a month. These will be Bangladesh and Cambodia. Buyers seeking products in the medium price range - i.e., JC Penny, Macy's, Sear, Dillard's, A&F, Polo Ralph Lauren, Banana Republic - will go to Vietnam, Indonesia, India and the Philippines where the wages are under $400/month while the high priced products which require great skills and quality workmanship or very short delivery time, such as those for Hugo Boss, Armani, Saks Fifth Avenue, Pal Zileri will come from China and Thailand where the wages will be above $400/month.

By Vicky Sung, Hong Kong

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