Textile Intelligence No.11

Savile Row tailor Richard James has been forced to take ‘Made in England’ labels out of suits after admitting they were produced by factories in Mauritius.

The made-to-measure suits, which sold for up to GBP2,000 (US$2920), were cut and sewn by manufacturers on the Indian Ocean island, before being shipped to the UK where workers added sleeves and buttons.

But following a complaint from a rival tailor, Trading Standards officers ordered that the labels be removed. Country of origin will be omitted from new labels.

One of the companies making Richard James suits is Wensum Tailoring in Norwich, which moved most of its production to Mauritius in late 2005.

Soho tailor Tony Lutwyche, who made the complaint to Trading Standards said: “The Made in England label promises customers a superior quality product.”

He estimates that false labelling is taking away over GBP3m per year from British industry and costing Britain’s workforce 100 potential jobs.

See the petition here: http://petitions.number10.gov.uk/realenglishsuits/

Related articles:

http://www.fuk.co.uk/news/tailor_tony_lutwyche_accuses_richard_james_false_made_england_labelling

http://www.independent.co.uk/incoming/savile-row-slipping-out-of-style-1057889.html

http://www.independent.co.uk/life-style/fashion/news/made-in-england-sold-on-savile-row-ndash-but-stitched-in-mauritius-1040243.html

http://www.xebusiness.com/press%20releases/wensumrelease.html

Source: Just-Style.com, fuk.co.uk, and The Independent

Egypt Takes Advantage of Lower Costs Country Report

Egypt’s clothing exports to the European Union surged over the first part of the year, by contrast with the poor performance of other low-cost suppliers. This is mostly due to relatively lower production costs in Egypt by comparison with Tunisia and Morocco. Sales to the US market are however slowing down at the same time, as the duty-free impact is rapidly fading. In addition, inflation is also threatening the domestic clothing industry.

• Egypt’s clothing exports continued rising this year, although the slowdown in US and EU retail sales negatively affected shipments from nearly all other origins.
• The good performance is mostly due to the low level in Egyptian labor costs if compared with other nations around the Mediterranean rim.
• EU’s clothing imports from Egypt surged more than 20% in the first half this year at 241 million euros.
  By contrast, total EU imports declined 1.19% as a clear sign that Egypt gained significant market shares over the period.
• Imports from all other major suppliers were down or slightly increased, except a 14% rise of shipments from Cambodia.

Strong Demand from Spain, Germany

• Egypt is apparently taking advantage of relatively lower production costs, compared with Morocco, Tunisia and more evidently Turkey.
• A surge in demand from Spanish buyers is also behind the current success of Egyptian clothing, according to EU official data we just compiled.
• Imports from Spain of Egyptian clothing was up no less than 270% over the first half this year after already surging 140% in the same period of 2007.
• While Spain only accounted for a negligible part of Egypt’s exports to the European Union in 2005, its share rose to 11.2% in the first half of 2008.
• Demand from Germany remained very strong in addition, with a 42% increase in the first half.
  Sales to the UK stagnated by contrast. If the British market remains the most important destination of Egyptian clothing, its share fell from 45% in 2005 down to 35% in 2008.
• The Egyptian success on the European market is also based on its woven clothing production, with related exports surging 38% in euro terms in August 2008 from a year earlier and up 43% over the January-August period (latest available data).Strong Demand from Spain, Germany

Stagnation on US market

• By contrast, Egyptian sales to the US market are seriously slowing down.
• The impact of the duty-free access offered to so-called QIZs is rapidly fading.
• Exports had surged in 2006 to the US market after an agreement was concluded offering a duty-free access to apparel produced in Qualifying Industrial Zones (QIZs) under specific rules of origin.
• A series of apparel plants were set up in QIZs which are now confronted with surging competition from Asia as the US clothing market is sliding.
• Egypt mainly sells cotton trousers to the US buyers and may be confronted with China’s pressure after US quotas will be eliminated on Chinese shipments, on January 1st 2009.
• Egypt is also threatened by surging prices at home.
  Inflation rate remained extremely high in October at 20.2%, although slightly sliding from an annual growth of 21.5% in September.
• The inflation rates were much lower in other low-cost countries at the same time and were more rapidly declining in Asia.
• The government however announced an ambitious stimulus plan a few weeks ago in order to support economic activity.
• This should not help in limiting inflation, potentially harming the Egyptian competitive advantage on the clothing market.

Source: EmergingTextiles.com

China is increasingly dependent on US and EU clothing markets which still account for 64% of the gobal apparel trade, according to historical data from the WTO which are available for download. China’s share of the global market surged since 2000 while although exports sharply increased from Vietnam, Turkey and Bangladesh. EU’s clothing exports are far from negligible, by contrast with U.S. apparel exports, as reflected by our series of statistical tables.

The global clothing market is clearly dominated by China, after its exports surged in the past seven years.

According to data which were just released by the World Trade Organisation (WTO), China’s share of the global market rose from 23% in 2000 (if excluding EU’s internal trade) up to 43% in 2007.

Shipments from other suppliers look negligible, by contrast.

China Heavily Dependent on US and EU

• A good part of China’s exports are still sold through Hong Kong which continued retaining 11% of the global clothing trade in the past year, although down from 16% in 2000.
• Although China’s clothing exports were increasingly dependent on the US and EU markets in the past years, 28% of shipments were also sold on the Asian market in 2007, mainly thanks to a 82% share of Japan’s import market.
• The European Union remains a very large clothing exporter with shipments of US$25 billion to countries outside the 27-nation area.
• EU’s exports doubled in the past seven years, accounting for 9.3% of the global trade in 2007, if excluding internal trade among member countries.

Vietnam, Turkey and Bangladesh

• By contrast, exports from the United States looked negligible, being halved in seven years and accounting for a mere 1.61% of the global trade.
• Turkey and Asian countries took advantage of a strong growth in the past seven years, especially Vietnam (+300%), Turkey (+114%) or Bangladesh (+100%).
• Exports from India were less strong (+62%) while only rising 24% from Indonesia.
• If excluding EU’s internal trade, the United States and the European Union were two import markets of the same size in 2007 at about US$84 billion, together accounting for 64% of the global clothing market.
• Imports from Russia surged in the past years with a 6% share of the world’s market in 2007. Japan still retains 9% of the trade, at the same time.

Source: EmergingTextiles.com

20 November 2008

In the context of Mr. Paul Ryberg’s visit to Mauritius, the Ministry of Foreign Affairs, Regional Integration and International Trade (Int. Trade Div.)   kindly invites to attend a public-private sector meeting to be held on Monday 24 November 2008 at 14.00 hrs in the Lunch Room of the National Assembly, Government House, Port Louis.

Agenda

• Strategy to maximise the benefits of the Third Country Fabric derogation for Mauritius;
• Possible challenges to the Third Country Fabric benefits which have been extended to Mauritius;
• Measures to diversify exports on the US market.

Your presence at the said meeting will be highly appreciated.

Also confirm your participation by a return mail or by fax (212 9767)

Best regards

Mr Suryadev Beedasy

Chief Operating Officer

Enterprise Mauritius

St James Court

Port Louis

Fax: 212 9767

Email: info@em.intnet.mu

In view of helping manufacturers in the textiles and clothing sector to market their products and improve their export performance, Enterprise Mauritius is pleased to inform you of its intention to participate in the following international fairs, scheduled in the first quarter 2009.

• Bread and Butter: Jan 21-23, Barcelona, Spain
• Texworld: Feb 09-12, Paris, Le Bourget France
• ZOOM by Fatex: Feb 10- 13 (next to Premiere Vision), Paris Park des Expositions, Villepinte, France
• Magic Show: Feb 16-19, Las Vegas, USA

Your attention is kindly drawn to the fact that all costs pertaining to stand and decoration will be borne by Enterprise Mauritius.

Companies interested to participate in the above international fairs are invited to fill in the form and forward to Enterprise Mauritius by Fax-2129767 or email at latest by Monday 6 Nov 2008.

For further information, contact Mr Hemant Jugnarain at Enterprise Mauritius on T:2129760; F:2129767 or Email: info@em.intnet.mu