LATEST NEWS ON WORLD APPERAL MARKET

U.S. Apparel Retail Sales in April 2011

16 May 2011 US clothing retail sales continued remaining strong in April, according to official data and latest reports from apparel chains. Sales at apparel stores returned to pre-crisis level, although not rising as rapidly as total retail sales, as reflected by our charts and tables. US apparel retail sales remained very healthy in April, according to official data which were much larger. released at the end of last week. Compared with the previous month, sales at clothing Compared with the same month last year, sales at apparel stores gained 5.3% after already Gap Inc.'s sales were up 8%, far from the 10% fall of the previous month. US consumers The level in private debts is probably falling thanks to higher wages, in addition. 18 May 2011 even reported a 20% jump in comparable store sales in April, from a year earlier.

stores were up 0.3%, after taking account of seasonal variations and trading day rising 4.5% in March, from March 2010. These official data confirm good results earlier published by US apparel chains and department stores. Lingerie group Limited Brands continue being cautious after energy prices strongly rose in the past period.

differences. With the Easter break falling in April this year, actual growth in spending was

Unemployment rate further fell, but stays at unusually high level in this post-crisis period.

US Apparel Imports in First Quarter 2011: China vs. Rest of World

China began losing significant shares in the first quarter this year, on the US apparel import (RoW), as reflected by our series of statistical tables.

market. Unit prices of Chinese products more strongly increased in a large number of apparel categories, if compared with shipments from other nations, or Rest of the World

China began losing shares of US apparel import market, in the first quarter this year. When imports from China were declining 0.54% in volume terms, shipments from other nations rose 11.64%. As a result, China's share dropped from 36.86% in first quarter last year down to 34.21% over the same period this year. The share of the rest of the world (RoW) prices in China, after labour costs were significantly raised in the last year. Higher Price Increase in China rose from 63.14% up to 65.79%, consecutively. This is obviously due to a stronger rise in

In the first quarter, average unit value of US apparel imports from China gained 8.19%, market share less declined, although still losing ground, however, from 34.50% to 32.76%. cotton dressing gowns or even 39% in 341 (cotton woven shirts for women and girls). Imports from China declined in the first quarter in nearly all apparel categories, in volume

against a 4.18% increase for shipments from RoW. In value terms, as a result, China's terms. There were strong differences, however, with Chinese shipments down 33% in 350 increase than from RoW (+ 39.47%). Even in man-made fiber apparel categories, China lost

market shares in first quarter. China is however more resisting with men's apparel than products are more basic, and therefore more sensitive to a rise in labour costs.

with women's products. This is because average price is lower on the men's market where

Imports of Chinese cotton sweaters surged 30.87% by contrast, but this was a lower

EU's New GSP Would Benefit Pakistan's Textiles

18 May 2011

Pakistan's textiles and clothing could be offered a duty-free access to the European Union, effective from 2014. EU's Commission just released its proposal for new GSP regime which could offer GSP+ access to Pakistani products, if approved by member states. Fewer

group of products remaining eligible. effective from 2014.

The EU's commission last week introduced a new version of its GSP regime, which will be Excluding Thailand, U.A.E., Malaysia

countries will be eligible, while so-called graduation rules will be eased for letting specific

countries would dramatically fall in order to offer a stronger competitive advantage to the nations really in need. More precisely, countries which are classified by the World Bank as "high income" or Arab Emirates (UAE, including Dubai) would now be excluded. India under FTA Regime "upper middle income" would not be admitted to enjoy GSP tariff cuts. If considering the

Fewer countries would then take advantage of the Generalised System of Preferences offering tariff reductions to so-called developing countries. The number of eligible

World Bank's current list, countries like Brazil, Russia, Malaysia, Thailand or the United Indonesia could also lose its eligibility if finally considered by the World Bank an "upper tariff reduction for Indian textiles and clothing.

middle income" country in the coming years. India will be a more complex case, since

currently negotiating a free trade agreement with Europe which will offer a significant Under the GSP regime, EU's import tariff is reduced by 3.5 points. For textile and clothing imports, however, the reduction is only 20%. For instance, the tariff on t-shirt imports is

12%, being lowered to 9.6% under the GSP regime (and not to 12%-3.5% = 8.5%). New Graduation Rules

In addition to the smaller number of eligible countries, EU's Commission also suggests to modify the so-called "graduation" rules. Graduation means that imports of a specific group under the same group of products. of products are excluded from GSP regime, if exceeding 15% of EU's total GSP imports For this reason, China's textiles and clothing are no more eligible. Under the new regime, already having a large share of GSP imports, just below current limit of 12.5%. New GSP+ Eligibility Criteria For textile and clothing imports, the threshold is 12.5%, instead of 15% for other goods.

this trigger would be raised to 14.5% for textiles and clothing (and from 15% to 17.5% for

other products). This could have strong consequences for major textile exporting countries, The main advantage of the European GSP regime however lies with the duty-free access

be modified, especially the vulnerability criteria favoring countries suffering from a lack of export diversification. Until now, imports from these countries should not exceed 1% of all GSP imports for benefiting from the GSP+ regime. The threshold could be raised from 1% up to 2%, the EU's

offered under the so-called GSP+ and the EBA provision. Eligibility criteria for GSP+ could

textiles. European textile and clothing producers strongly oppose this provision, as they the country. Bangladesh's Duty-Free Access

already fought the zero-duty access for Pakistani textiles after last year's floods devastated The EBA regime offering a duty-free access to poorest countries in the world would not be Nations.

Commission proposed, which would possibly offer the duty-free access to Pakistani

significantly modified. Bangladesh will therefore continue benefiting from this significant The Commission's proposal will now be submitted to the EU's Parliament and to the Council of Ministers.

advantage, as long as it will be considered a "least developed country" by the United

US Apparel Imports in First Quarter 2011: Categories

12 May 2011

The sharp increase in cotton prices resulted in a massive move in US apparel imports from covering the last four quarters.

cotton to man-made fiber products. US imports of cotton apparel no more rose in the fourth quarter this year in volume terms, while shipments of man-made fiber apparel were Confronted with a surge in cotton prices, US apparel buyers shifted from cotton to man-

further surging. The dramatic shift is perfectly reflected in our series of statistical tables made fiber apparel, as reflected by just released US official trade data. Imports of cotton

apparel only rose 0.75% in volume terms over the first quarter, from the same period in 2010. They had still gained 15.4% and 11.1% over third and fourth quarters last year.

the fiber content of apparel imports is the result of massive shift from 100% cotton to polyester-cotton in Asian yarn production, in order to keep material costs at reasonable levels. volume terms over the first quarter, shipments surged 14.6% in corresponding man-made While imports of cotton woven shirts for women and girls (category 341) fell 20% in

By contrast, imports of man-made fiber apparel still jumped by 17.94% in first quarter 2011, after rising 19% and 24% in third and fourth quarters 2010. This dramatic change in

fiber category 641. A similar move from cotton to polyester may be observed for knit shirts (338/339 to 638/639) and trousers (347/348 to 647/648).

Not surprisingly, average price of cotton apparel surged 8.8% in the first quarter from a

year earlier, after only rising 2% in fourth quarter last year. Man-made fiber apparel prices

only gained 2.83% in the first quarter, after rising 1.5% in third and fourth quarter last demand could partially return to the cotton apparel categories, or continue favoring still cheaper polyester products. year.

With the price difference now rapidly falling between cotton and polyester prices, US

US Apparel Imports in First Quarter 2011: Origins

12 May 2011

US apparel imports clearly decelerated over the first quarter this year, only rising 7.15% in and Indonesia took advantage of China's setback. from China, down 0.54% in volume terms. negative reaction from US buyers.

US apparel imports seriously slowed down in the first quarter this year, in volume terms. Shipments only rose 7.15%, from the same period a year earlier, after still surging 16.22% in the last quarter of 2010. This deceleration reflects a slight decline in apparel imports In the first quarter last year, Chinese shipments were still surging 29% in volume terms, by contrast. The sharp increase in apparel production costs in China obviously resulted in a

volume terms. Imports from China even slightly declined after Chinese prices were

significantly raised, as reflected by our series of statistical reports. Bangladesh, Vietnam

Average unit value of Chinese apparel was up 8.2% in the first quarter, from a year earlier. Chinese prices had declined 11% and 4.5% in first and second quarter last year, before (+18.14%).By contrast, Indonesia and Vietnam kept prices stable in the meantime. rising 3.2% and 3.36% in third and four quarter. Prices of South Asian suppliers also surged in the first quarter 2011, from India (+ 11.16%), Bangladesh (+9.91%) or Pakistan

Finally, China lost market shares in both value and volume terms in first quarter, benefiting Bangladesh (+34% in US$ shipments), but also Vietnam and Indonesia or Cambodia whatever the slight decline of the first quarter. 16 May 2011 (+30%). China continues having a predominant share of the US apparel import market,

Cotton Prices to Be Lower in Next Season

Cotton prices began less dropping in the last week, amid signs of possible market stabilization. In New York, the new nearby contract July 11 only fell 0.4 cent or 0.28% over the week. Possible Stabilization

rebound in the coming season, while consumption will be further depressed by the recent shift from cotton to man-made fibers, the US Department of Agriculture (USDA) announced.

Cotton prices less strongly declined in the last week. The lack of supply may result in stabilization when inventories will have been digested. Production could however sharply

by contrast, prices are now expected to further fall. More Cotton in Next Season

Cotton prices could finally stabilize later this year, after further falling. Whatever the current lack of demand on the cotton market, the large available inventories will finally be absorbed while the short supply will remain at least until next January. For the next season

In New York, the December contract lost 6.7 cents per pound in the last week or 5.46%.

to-use ratio would climb from 36.49% up to 40.11%.

July), foreseeing a large increase in production (+ 8.8%) and a more moderate growth in mill use (+ 2.57%). Ending stocks would therefore jump by 12.7% and the decisive stocks-

The US Department of Agriculture (USDA) released its first forecast for 2011-12 (August-

In theory, this should mean lower prices in the coming season, although USDA's forecast may be considerably modified in the coming months. Demand Destruction The low increase in consumption is due to so-called "demand destruction" after the surge further declining at the start of the new week and demand for yarns was still depressed.

in prices resulted in a shift from cotton to man-made fiber use. In China, yarn inventories remain at very high levels, whatever the current fall in production. Spun yarn prices were

Trapped Spinners Spinners are everywhere trapped with stocks of cotton which were purchased at higher compared with last four years, as reflected by our series of charts below. per pound). Although plummeting, prices remain everywhere at relatively high levels, prices, and their margins are in free fall as a consequence. In India, prices continued

strongly declining with the benchmark Shankar 6 losing 2,000 rupees per candy (5.66 cents

Cotton Price Continue Plunging from Historical Highs

9 May 2011

Cotton prices further crashed in the past week on international and domestic markets. The prices are now sliding on nearly all commodity markets. Cotton prices continued dramatically declining in the past week, with no sign yet they could Reflecting the expected price of the next crop, the December contract began also sliding in the last days, finally losing 6.6% over the week. Commodity Markets Plunge

lack of demand for cotton and yarns is further depressing the cotton market activity while stabilize in the short term. On the physical market, benchmark A Index lost 8.5 cents per

pound or 4.9%. The New York key contract July 11 was down 12.46 cents or 7.9%.

A general decrease in commodity prices by the end of last week may now accelerate the fall of cotton prices. Large yarn inventories are still putting some strong downward pressure on cotton prices, in addition. Spinners may now wait for the next crop in the Northern hemisphere before replenishing their stocks.

In China, domestic spot prices began more sharply falling after cotton futures heavily dropped on Zhengzhou's market. Market activity is reduced to nearly nothing. Chinese now resell their stocks of imported cotton to other countries. Yarn Export Quota in India In India, cotton prices are in free fall. Benchmark Shankar 6 lost no less than 25% in only four weeks, plunging from 62,000 to 46,000 rupees per candy. Indian authorities importers have cancelled large quantities of orders on the international market, trying to

This should have no immediate effect on the market, since the annual limit will not be extremely high levels and a new drop in the coming weeks would not be surprising. reached before the new crop will be available. In Pakistan, prices are similarly falling for similar reasons. Cotton prices are still at

announced they will again limit the annual cotton yarn exports in the current fiscal (1 April

2011-31 March 2012). The quota was however raised from 720 up to 845 million kilos.

U.S. Underwear Imports in 352-652 in 2008-2010

11 May 2011

US underwear imports sharply rebounded in the last year, as the surge in material costs predominant position on the man-made fiber market of category 652.

was digested by suppliers and import prices were further reduced. Competition remained

very strong on the cotton underwear market of category 352, while China kept its US imports of cotton and man-made fiber underwear sharply rebounded in volume and value terms in 2010. Unit prices slightly declined, as suppliers were able to absorb the

products. Shipments from China continued surging in the meantime, but from relatively low levels, compared with other categories.

Honduras remained the largest origin in volume terms, still focusing on the lower-priced

jump in material costs until the end of the year. In the cotton underwear category (352),

Other suppliers like El Salvador, India, Thailand, Vietnam and Bangladesh benefited from a have got relatively similar market shares, as US demand avoided focusing on a single supplying country.

strong increase in their shipments to the United States. All these origins, including China,

On the man-made fiber underwear market (652) by contrast, China's already high market volume terms. Other origins had negligible shares of the US import market, all below 7%. prices of nearly all other origins were further lowered. Source: www.emergingtextiles.com

shares further rose in the last year, respectively reaching 36% and 47% in value and

China's prices less declined in the first three quarters than average import prices, however, from the same period in 2009. Chinese prices even rose in the fourth quarter, while unit

BGMEA signs MoU with CII

May 11, 2011 (Bangladesh) Garments

Bangladesh

Confederation of Indian Industry (CII) signed Sunday a Memorandum of Understanding (MoU) for promotion of bilateral trade and commerce with India. strengthening the textile and garment industries of the two countries. BGMEA Acting President Md. Siddiqur Rahman and especial adviser to the CII Syamal Gupta signed the

Manufacturers

and

Exporters

Association

(BGMEA)

and

According to the MoU, both organizations will work together to promote cooperation for

MoU on behalf their respective organizations at BGMEA Bhaban. After signing of the MoU, that the MoU is the start of a new journey where the BGMEA can take a share of huge Indian apparel market estimated at US$ 30 billion. CII team leader Syamal Gupta, also the special adviser to Tata International Limited, said that with this cooperation, it would be possible to showcase Bangladesh's special products and skills in India. "Bangladesh should try better share of Indian market," he added.

India-Bangladesh Chamber of Commerce and Industry president Abdul Matlub Ahmed said

BGMEA Vice President Faruque Hassan and Vice President (finance) SM Mannan Kochi together to promote cooperation for strengthening the textile and garment industries of

were present, among others, on the occasion. Under the MoU, the BGMEA and CII will work non-tariff barriers in the textile and garment trade. the two countries, CII and BGMEA would take up issues of policies with the respective

governments with a view to addressing problems and bottlenecks, tariff, para-tariff and

BGMEA demands duty-free import of machinery

May 07, 2011 (Bangladesh) to extend

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have The demands were set forth by a BGMEA team headed by the association President Shafiul the bonding facility

demanded of the government to reduce the import duty on machinery and spare parts and Islam Mohiuddin, during a meeting with Dr Nasiruddin Ahmed, Chairman of National Board of Revenue (NBR). The BGMEA requested the government to allow duty-free import of all period.

sort of spare parts, safety equipments and devices, machinery and other building construction materials that are required for production. Mohiuddin revealed that, the small and medium sized garment businesses are facing more difficulties as they operate in rented premises, and thus need to pay extra nine percent VAT (Value Added Tax) on rented premises. He averred that, if the tax imposition on the rented space is withdrawn by the the countrys economy.

government, it would help the readymade garment (RMG) industry to better contribute to pursuant to the requests of the RMG exporters. However, as stated by the BGMEA leaders, their profit margins are going down due to increase in power charges, rise in furnace oil dormitories for garment workers. prices and reducing returns on exports. Besides, BGMEA has also called upon the

The VAT rates have already been slashed by the government from earlier 15 to 9 percent government to provide zero interest loans to the garment entrepreneurs to construct

Home Ministry urges for fire safety in RMG units

May 05, 2011 (Bangladesh)

The garment entrepreneurs have recently received directions from the Home Ministry, to keep the staircase of their factorys rooftop free to ward off the incidences of death of workers due to suffocation at times of fire accidents. Abdus Sobhan Sikder, Home Secretary stated that, in some of the incidents, workers died due to which the escaping workers got deceived and were trapped and died of suffocation. exit points. due to suffocation as the smoke could not find a way to emit, as the factory owners had writing urged the garment unit owners to keep the rooftop staircases free, to allow smoke to emit and make it possible for the workers to save their lives by escaping through such incidences in two of the garment factories, most of the workers lost their lives due to suffocation created by smoke coil.

stocked either cloths or other materials on the staircases. This resulted in smoke spirals The Home Secretary said that, prior to this too the Ministry had verbally as well as in

Sikder said that, in a recent investigation the Home Ministry discovered that, in fire

Indian clothing exports up 4.23% in 2010-11

April 30, 2011 (India)

Indias clothing exports rose by 4.23 percent in fiscal 2010-11 to US $11.16 billion against $10.71 billion in the previous fiscal year. The pace of exports increased November 2010 million from $521.7 million.

onwards. In the month of March 2011 alone, garment exports grew by 18 percent to $1.20 billion. US imports of garments from India surged by 12.5 percent in February to $586.9

Clothing bargaining council begins to shut down factories

May 03, 2011 (South Africa) The United Clothing and Textile Association (UCTA) have been informed that the

Bargaining Council is currently undertaking operations to shut down at least six factories clear, that this is a systematic and specific target campaign towards the New Castle Chinese Sactwu. Chamber of Commerce and Industry who has been a needle in the side of the clothing union

in New Castle. Such action will impact 2000 workers. Our information is that the majority of workers who are being affected are not in favour of the factories being closed. It is also

The United Clothing and Textile Association regrets the statement made by Patrick Craven found. However, we do find it hypocritical that Cosatu finds the space to criticize the UCTA manufacturing plants in Lesotho.

of Cosatu, in his May Day Message. The United Clothing and Textile Association has never when its affiliate, SACTWU, has financial interests in a clothing company that has

encouraged its members to relocated to neighbouring countries. The clothing union has

been aware for a long time that this is one option for employers if no amicable solution is

The United Clothing and Textile Association still firmly believes that there is an work in collaboration with the union and bargaining council. UCTS believes if such clothing and textile sector encouraged. impasse is more than just wages.

opportunity to find an amicable solution to this ongoing issue facing the clothing sector.

The stance of United Clothing and Textile Association is to find mechanisms and space to collaborative mutualism can be found, jobs will be saved, and business development in the The United Clothing and Textile Association have always maintained that the current

The United Clothing and Textile Association will be monitoring the developments closely

and engage with its members as this situation unfolds. We sincerely hope that further factory closures can be stopped and the concerned parties can meet and discuss the contributor to the economic success of South Africa. May 16, 2011 (Bangladesh) situation in an amicable and honest manner where all parties can apply their collective minds to a feasible solution that will make the clothing and textile sector a vibrant

EPICs garment facility CIPL achieves LEED certification

The EPIC Group announced that it has been awarded LEED Certification, established by the U.S. Green Building Council and verified by the Green Building Certification Institute (GBCI) construction and operation of high-performance green buildings. for CIPL Project. LEED is an internationally recognized standard for the design, "CIPL is the first LEED Certified project for EPIC Group and the first LEED Certified project in Bangladesh and we will continue to drive this green building initiative for all our projects," said Virender Goyal, Managing Director & Country Head, EPIC Group Bangladesh.

CIPL in Dhaka, Bangladesh is the flagship facility of the EPIC Group. This state-of-the-art, air-conditioned factory, spread over 500,000 sq ft, was built for garment manufacturing

lighting, water and material use as well as incorporating a variety of other sustainable families, businesses and taxpayers; reduces greenhouse gas emissions; and contributes to a healthier environment for residents, workers and the larger community.

strategies. By using less energy and water, a LEED certified building saves money for "CIPL's LEED certification demonstrates tremendous green building leadership," said Rick Fedrizzi, President, CEO & Founding Chair, U.S. Green Building Council. "The urgency of before, and CIPL of EPIC Group serves as a prime example with just how much we can accomplish."

and finishing and it boasts in-house wet and dry processing, embroidery, printing, and a

dedicated wrinkle-free post-cure facility. CIPL achieved LEED certification for energy use,

USGBC's mission has challenged the industry to move faster and reach further than ever "LEED certification of CIPL was based on a number of green design and construction features that positively impact the project itself and the broader community. These for occupants, etc.," said Gunasekaran Raju, Green Building Consultant, Airdesign Engineered Solutions. May 16, 2011 (USA)

features include water efficient plumbing systems, energy efficient lighting and Air Conditioning system, sustainable material purchases, healthy indoor working environment

Apparel & footwear sector welcome PROTECT IP Act

The American Apparel & Footwear Association (AAFA) welcomed the introduction of the Act of 2011 (PROTECT IP Act) by lead sponsors Senator Patrick Leahy (D-Vt.), Chairman of an e-commerce distribution strategy for counterfeit and fake goods all around the world.

Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property the Senate Judiciary Committee, Orrin Hatch (R-Utah), and Chuck Grassley (R-Iowa), and

seven co-sponsors. The PROTECT IP Act specifically targets rogue Web sites that serve as

Footwear, apparel, and fashion accessories are some of the most counterfeited goods in embrace e-commerce as a key shopping method, rogue Web sites have emerged as a popular way for counterfeiters to get fake goods into the United States. I applaud Senator Leahy for his diligence in addressing a variety of issues that impact each industry plagued with counterfeiting, said Burke. The U.S. apparel and footwear industry rouge Web sites.

the world, said AAFA President and CEO Kevin M. Burke. As U.S. consumers continue to

is committed to combating these fake Web sites by providing law enforcement and rights holders with the strongest enforcement mechanisms possible. This bill sets us in the right direction to providing us with a full arsenal of tools that will be helpful in fighting these House counterparts, to ensure that the final legislation is as strong as possible to bring industry.

We look forward to working with Senator Leahy and his Senate colleagues, along with their Each day, American workers who work hard to protect American namesake apparel and footwear brands are threatened because these fake sites trick consumers into thinking they are getting a great deal. These rogue Web sites, which look and feel like legitimate Web goods. sites, threaten the reputations of U.S. brands and plague the market with harmful and fake

about meaningful intellectual property protections for the U.S. apparel and footwear

Timed to coincide with introduction, AAFA, the International Anti-Counterfeiting Coalition, and the Outdoor Industry Association sent a letter to the U.S. House of Representatives detailing several ways to further strengthen the PROTECT IP Act. Some of these action against the holder of a rogue Web site, to require expeditious action by Internet counterfeiters are held accountable. Source: www.fiber2fashion.com service providers, and to ensure that Internet search engines that contract with

considerations include adding provisions to allow a company to pursue a private right of