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Current Knitwear Market

Current Knitwear Market

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Published by: Rahul P Singh on Apr 13, 2013
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Current Knitwear Market

Strength in the wool market The wool auctions resumed positively after the three-week Christmas/New Year recess. Close to 110,000 bales were offered over the first two complete sale weeks, with 94 per cent of offerings sold at an EMI of around 1,100 AU cents. With the current high AU: USD exchange rate (~$1.04), this means the international value is around USD11.50, which is close to the 90 % for the post-stockpile period. This positive tone reflects well on underling demand for our fiber, which is the central goal for wool marketing campaigns.

Above graph shows the average AWEX Eastern Market indicator for the poststockpile era (since July 2001) in AUD and USD terms, and shows current price percentile values for this period. Looking into the smaller volume of selection for the rest of this season, all expect a largely unchanged to stronger market. While Chinese New Year is just around the corner and could have some negative price implications, the current demand seems to be strong enough to carry our market through in a historically strong position.

The export slowdown may have bottomed out. Stocks in China were noticed low. and the Ministry of Commerce recently advised of its intent to keep boosting domestic demand to ensure economic growth in 2013 through the promotion of durable and semi durable consumer goods. and so cashmere prices and supply have some relevance for wool in the luxury apparel market. Roughly 90% of the world’s supply of pure cashmere and 70% of its finished products come from China.And also looking beyond the current season. Therefore prices are forecast to remain strong through till after the next harvest in June – July 2013. Similar to the silk market. up 2. forecasters such as IMA-ASIA are seeing the global economy showing noticeable growth in the second half of 2013. Together total exports amounted to USD 254. In December. and prompted the Chinese government to take steps to stimulate economic growth. Other Luxury fibers Globally.9% year on year to USD 24.4% of China’s overall exports. The latest report from The Schneider Group outlines silk prices continue to rise.92 billion. China’s textile and garment exports beat expectation. There are reports indicating one of the Chinese buyer have been building his own stockpile of greasy Cashmere. and garment exports rose 3.1 billion.8% on an annual basis and accounting for 12. Underlying resilience in the Chinese economy While the Euro-zone and North American economic malaise has impacted China’s export economy. textile exports up 1. there is a general tightening of luxury fiber supply. and shortage of supply affected some top makers and some spinners throughput. and this should start to have a flow on effect on the global textile and clothing market.14 billion.6% in 2007. For 2012 as a whole. Superfine and Ultrafine Merino is a substitute and competitor for cashmere.78 billion. . it has also increased the importance of the Chinese domestic market. strong demand accompanied by limited supply are pushing up the prices. In their report silk prices rose to record high due to the lack of raw materials and strong demand for the fiber. climbing 10. up from 39. r relative strength.2% year on year to USD 95. More than 55% of China’s economic growth was coming from domestic consumption in 2012.9% to USD 159.

It can be safely assumed that the knitwear the industry lifecycle is at the mature stage as shown in the figure below. flocking. shade net and composite products. The Smart Fabrics and Interactive Textiles market will return to growth. . reaching a value of US$1. product innovations and sustainability would all help to put growth back on track.Current Market Demand For Knitwear Marketing Industry Analysis: Current market demand for knitwear is involved with the quality and competitive pricing of products. There is a close competition between the manufacturers and marketers to hit the best bargain and offer promotional discounts to consumers. New knitting machines have opened up possibilities hitherto into unknown segments such as technical textile. Cutthroat competition has made manufacturers to offer multi-pack products at inexpensive prices. products such as fishnet. demand for unique product offerings. a recovery of consumer confidence. On the other hand. developing markets.com) It seems that the revival of economic growth. will sustain growth. Developments in knitting.8bn by 2015. served by unexplored. fruit-net. inkjet printing. (just-style. glossy foil prints. for instance. and burnouts have heated up the market. according to new research by Global Industry Analysts (GIA). and advanced treatments such as digital printing.

) With advancements in the industry in the recent years. hemp products. wash-resistant colors intended for use in intimate wear. The report found that competition within the industry had resulted in falling prices and a shift in production. The global knitwear market is competitive and fragmented. RadiciGroup is introducing CornLeaf. furnishings and consumer goods. mittens (boxer gloves and hunter mittens). Asia Pacific is currently growing to be a promising market for the same. The knitwear products include woolen cap with earmuffs (or ear-flap woolen hats). the intimate apparel industry is defined by new fabric developments. We are looking for prospect buyer(s) in Canada for knitwear products offered by SH. woolen sock. knitwear. Such assistances usually consist of capital needed for raw materials.) Product Information: Sana Hastakala. the Asia-Pacific market was buoyed by rapid growth in China. including innovations in fashionable and comfortable garment designs. market variety of handicraft products. although the US. Besides producing and exporting handicrafts items. SH helps entrepreneurs with financial and technical assistance. product development and design. India. Ltd. the yarn also has greater hygroscopicity compared to synthetic yarns and is faster drying than natural fibers. and has tenacity comparable to other synthetic fibers. in collaboration with local women and producers. Europe is identified as the single largest regional market for knitwear. metal crafts. name of the book. Indonesia and Taiwan. prompting manufacturers to expand their operations into South America. and page number) According to GIA. Compared to traditional dyeing and finishing processes.Figure 1. T. a 100% biodegradable solution-dyed continuous yarn. they dominate global knitwear sector with a 65% market share (LTD). the yarn is made from Ingeo. Appendix B provides the images of these products. the manufacturing of CornLeaf requires less water and energy consumption as solution dyeing technology is integrated into the spinning process. health checkup. Need caption specifying Source (author. and marketing (Sana_Hastakala "About Us"). RadiciGroup’s yarn is available in a range of lightfast. and mufflers. (W. . Central Europe and Asia (Network). The economic crises have narrowed the gap between the upper and lower end of the market with style differentiation almost vanishing. Korea. The complete list of products is provided in Appendix A. ceramics. The products are beads. silver jewelry and others. some of these business enthusiasts operate in a very small scale and usually manage their business operation from home. Produced by Noyfil SA. CornLeaf lighter than other natural fibers. During the recession.(Ltd. According to RadiciGroup. a polylactic acid (PLA) polymer derived from renewable vegetable resources.

The knitwear products are available in a range of fashionable colors. will then be sent to producers. Being a member of World Trade Organization. The hats or caps and boxer gloves can have fleece lining upon request by the clients. which are based on both traditional Nepalese and classic western motifs (SH_Woolen). SH also provides professional to develop pattern and design in collaboration and consultation with the clients. Some clients have expressed the positive outcomes . SH has its own catalog for the designs. The compliance certificates can be obtained upon request by the clients. The design catalog is provided to clients upon request. All the knitwear products are hand-made and will have “100% Hand-made in Nepal” labels (Sana_Hastakala "Polcies and Procedures"). Sana Hastakala strictly adheres to the guidance and regulations to maintain quality and standards. Fair Trade Group. The local woolen yarn colors are usually pale white and grey. and no animals are harmed during the production of wool. These wools are from sheep and yak. after approval. Transparency and accountability Trading practices Payment of a fair price Child labor and forced labor Non-discrimination. gender equity and freedom of association Working conditions Capacity building Promotion of Fair Trade Environment The details of these standards are discussed in detail by any Fair Trade organizations (FTGN_Standards). and also uses imported wool from New Zealand. SH admits that it is hard to enforce size requirements. The requirement of linings will be decided after consultation with clients. The quality of yarn has to be approved by the client prior to production. The wools are dyed based on the clients’ requirements. SH ensures that these ten standards are followed: Creating opportunities for economically disadvantaged producers. The design catalog contains the range of colors available. and large (adult-size). These linings provide extra warmth and are usually preferred by most of the clients. but will comply with client’s requirements (Sana_Hastakala "Polcies and Procedures"). and Fair Trade Group – Nepal. The samples. which are regularly checked by these organizations. The knitwear products are available in two different sizes: small (kid-size). The client can request to be affiliated with Sana Hastakala to promote Fair Trade practices in Nepal. Besides quality and standard. It is worthwhile noting that all knitwear (except for sweaters which is not in consideration because of size-requirement discrepancies between Asia and North America) products are unisex. Since these are hand-made.SH uses high quality sheep wool and agora wool from Nepal.

Nepal does not have any restrictions in exporting knitwear as long as it maintains quality standard requirements (Shah).00 below 500 kg and US$ 2. mix and match of any products. insurance and cost of goods will be the landed cost. The method of transportation will depend upon after discussion with buyer and their preferences. and the freight.25 over 500 kg (Sana_Hastakala "Polcies and Procedures").and boost in profits because of this affiliation. Mittens and Mufflers). then SH will use its own freight forwarding firm. SH prefers exporting through seaway for exporting goods. importing textiles and clothing to Canada is subjected to Export Import Permit Acts and requires import permit from Foreign Affairs and International Trade Canada (DFAIT) (DFAIT "Import Conditions"). The import also is subjected to certification fees and custom fees based on the total value of goods (DFAIT "Schedule (Paragraph 3(1)(a)): Fees for Import Permits"). Currently. is required to minimize the packaging and handling charges. The seaway shipment is cost-effective compared to air cargo. air cargo costs US$ 9. as below: . but sea shipment will be recommended to keep the landed cost minimized. SH can also provide merchandise through air cargo – the order is required four months in advance. SH assures that the client will develop business relationship that will benefit everyone and SH will be committed once this relationship is established (Sana_Hastakala "Polcies and Procedures"). Nepal is member of World Trade Organization and strictly adheres to rules and regulations of WTO. The packaging will be done in weather-proof packages so that there is minimal damage to the merchandises due to weather and other natural disasters. handled by third party. Prior to 2005.00 over 500 kg. The turn-around-time depends upon the quantity of merchandise ordered. whereas the air cargo cost depends upon the courier service used for transportation. the shipping price through sea is US$ 3. SH. but this requires order in advance one year so that the product reaches the buyer in time. Some clients prefer EXW – the products are picked up from the SH warehouse located at Kupondole. Nepal. The client will be responsible for all the charges thereafter (Sana_Hastakala "Polcies and Procedures"). the latter being more expensive and will cost more to buyer (Sana_Hastakala "Polcies and Procedures"). A minimum order of 1. for their three merchandise (Caps. whereas the estimated delivery time through air cargo is five to seven business days (Sana_Hastakala "Polcies and Procedures"). The seller has to keep in mind that the estimated delivery time through sea is three to four months. set prices. according to the cost analysis. Nepal enjoyed quota free access to major global markets.50 below 500 kg and US$ 7. Pricing Policies and Procedures: For selling any of goods or services some type of cost analysis is required. If the client prefers DDP (Delivered Duty Paid). on the average.000 units of knitwear. However. The packaging is either in the tarp sacks or boxed. Transportation Procedures: Sana Hastakala (SH) offers two types of shipping: sea and air.

(china) 1. Caps Mittens Mufflers SH $3-4 SH $3-4 SH $2-3 Goldmax Int'l Pvt.4-1. By asking three or more suppliers of their prices for the same product.5-2.1 EAGLE EYES EXPORTS Nepal 2. the table one shows comparing prices between three supplyer that are competing in the market and SH. They promote 12% discount for orders more than 70. It’s obviously shows that SH prices are higher than the other competitor in the market and it is because of their quality and being handmade of the products.. However.5-3. For better understanding the market situation. the lowest bid may not always represent the lowest cost.000 and 20% discount for . Ltd.3-1.00 Shanghai Arch Im & Export Co. Obviously. competing price SH doesn’t have any discount offer for first order but for compete with other competitors they offer discount for second and subsequent orders. the additional cost of early replacement or the cost of redesign and/or testing required making the lower cost product applicable.15 Yiwu Amanda Import & Export Co. Ltd. this is one of the best means for validating price.Caps: $3-4/Piece Mittens: $3-4/Pair Mufflers: $2-3/Piece A part of analysis is verification of pricing.5 Wuxi X&S Knitting Factory (china) $2.50-4. Ltd (India) $1.5-6.5 JOO HYUN TEX INDUSTRY korea $1.6 Kayastha Knitwear (Nepal) $2.90 . $1.5 Le Moda Magasin (Nepal) $0. This "total cost of acquisition" is the real cost that must be compared... we can determine if a particular price is reasonable. Ltd.8 Jiangsu Yunyuan Silk Co. There may be cost associated with making the lower cost product perform to standards. (china) $5-6 Table 1.

References http://www.000. The company use advanced order to take advance payments to cover the cost of raw materials purchase.com/market-reports-january13 .com/essays/marketing/current-market-demand-forknitwear-marketing-essay. Then SH use totally prepaid advanced payment for first order and for the second order they recommend 75% advance payment. Furthermore they have discount for fair trade members about 25%.woolmark. The firm’s policy on extending credit to its customers is depending on the loyalty of the customers to SH and their participation in promoting fair trade globally and locally.php#ixzz2OCOBZd2R http://www. Also they recommend 50% advance payment and 50% COD payment for third order and subsequent orders.ukessays. 25% after shipping.orders more than 100. also these excludes VAT which is 22% in Nepal.

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