The textile industry begins to recover in the second half of the year
Textile sector to begin its recovery in second half – Reports
The significant downturn in consumption recorded in recent months, as a consequence of the global financial economic slowdown, has been felt greatly in the textile-clothing sector. Spain’s industrial fabric comprises over 4,000 small to medium-sized enterprises which, like those in other neighboring countries, are facing this economic slowdown only having recently emerged from the extensive reconversion caused by the coming-into-force of the new regulations governing international trade.
Indeed, since 2002, the sector has been implementing an intense process of adaptation to the globalization of the textile market, which peaked in 2005 with the liberalization of international textile interchanges. The development which has taken place throughout this time has encouraged Spanish companies to vary what has been their strategy to date and, at the present time, they are firmly committed to setting themselves apart and to seeking new alternatives which are more suited to consumer demand.
According to Angel Asensio, the president of the Spanish Federation of Fashion Companies (Fedecon), “Although the sector is prepared to face a recession, companies need financial support after having invested heavily in their reconversion process in order to be competitive inside and outside our borders”.
All the entrepreneurs and experts in the sector who were consulted about how this situation will evolve in forthcoming months coincide in showing their optimism for the second half of 2019. They unanimously say that the reactivation of the market will begin from next September onwards “Although domestic demand will continue in negative terms during the first half of the year, the drop in inflation and in interest rates will bring with it an increase in families’ income, which will serve to stabilize the drop in consumption”, they say .
As in previous recessions, the first symptoms of recovery will be noticed when macroeconomic indexes, which have been constant in recent months, stop falling and, according to the experts “we reach rock bottom”.
In order for the sector to recover, new ideas and initiatives started up by entrepreneurs will be more important than ever. Seventy per cent of the success of a company lies in its trademark and thirty per cent in innovation, which is why now , more than ever, entrepreneurs must make a solid commitment to these two factors. On the other hand, in this situation it is pivotal to closely monitor the development of customers’ tastes in order to be able to meet their demand in a satisfactory manner. For example, in this recession, consumers have shown that they are more loyal to trademarks than ever”, they say from within the sector. “If we commit to innovation, creativity and trademark image and we expand overseas, grouped together under the country trademark , the Spanish textile sector will continue to grow as it has been doing for the last thirteen years”, they stress.
To sum up, the commitment focuses on quality products which incorporate more innovation in product and design. In addition, it is pivotal to properly convey this commitment to the consumer via brand name reinforcement and product differentiation policies coupled with important, ongoing improvements in productive efficiency, without losing sight of price. Angel Asensio insists that “Spanish industry must make a firm commitment to intangible elements – trademark, image, marketing-, and reinforce the trademark image of our companies”.
An analysis of development trends in the sector in 2019, undertaken by the Textile and Clothing Industry Information Center (CITYC), highlights that it has been marked by the international economic-financial recession. The value of demand in the Spanish textile/clothing market has dropped by 5.8 %, the upshot of the enormous contraction in family consumption and in the purchase of homes. Progress in the market has determined falls in production (- 10 % in real terms) and in employment (- 7.2 %), which stand at levels similar to the previous crisis in 2005.
In spite of these figures and in view of how the textile industry has recovered and overcome other economic recessions, the sector is confident that, in the second half of 2019, demand will be reactivated and that the next 2019 autumn-winter campaign , whose collections are being shown now, will be upbeat.
The swift, intensive recovery of the textile trade – Hilario Alfaro, president of the National Textile Trade Federation (FECOTEX) is convinced that “the recovery of the textile sector is going to be swift and intensive, although we will still experience a rather complicated spring-summer season”. Alfaro says that “in spite of the fact that the sector is feeling the effects of t�The impact of recession on the textile industry. Demand in the Spanish textile/clothing market has fallen by 5.8%, resulting in a sharp contraction in household consumption and housing purchases. Product demand fell by 10% and employment fell by 7.2%, compared with a crisis before 2005.
Despite these data, and considering how to revitalize the textile industry and overcome other economic downturns, the sector is confident that demand will restart in the second half of 2019, and in the autumn and winter of 2009, the market will be optimistic .
Rapid and intensive recovery of textile trade – Hilario Alfaro, Chairman of the Federation of National Textile Traders of India (FECOTEX) believes that “the recovery of the textile sector will be rapid and intensive, but in the spring and summer we will still Facing a rather complex environment.” Alfaro said, “Despite the economic crisis encountered by the sector, the volume of textile trade fell by 11% in 2019. Under such circumstances, it is planned that sales performance will ease by Christmas. “
The position of Borja Oria, president of the Commercial Association of Textile and Accessories Trade (ACOTEX), is similar. He acknowledged that stores had to make special efforts to drive demand in 2019. “As a result, stores have organized discounts, promotions and some special events with a view to maintaining sales.” Oriya added, “The department hopes that in the second half of 2019, demand will recover and sales for the next period will be optimistic .”
Borja Oria said that the sector needs more than ever to strengthen two strong pillars: Spanish creativity and the entrepreneurial spirit that exists in our country. “We have a very good base thanks both to SIMM and Cibeles for their fashion week shows in Madrid, Spain, and to designing more and more in the international market. As for the fashion boutiques, Spain is standing on the basis of the fashion distribution business, with Inditex – collaborations with chains like Zara, Massimo Dutti, and Mango; a statement that we should follow and encourage in all fashion stores, it amazes us with the high-end collection of clothing it brings together in every season, they also offer quick responses and continuous Renovation, with a clear and indispensable focus on customer needs.
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