For many years, Taiwan’s textile and apparel manufacturers struggled to overcome the twin hurdles of changing global market conditions and the widely held perception they were on their way toward the scrapheap of history. But ROC government support, coupled with the development of an array of exciting products, has brought these firms back from the brink, repositioning them for what many believe will be the dawn of a long-term era of niche market dominance.
As part of this renaissance, in late May five textile and apparel centers commenced operations around Taiwan. Initiated by the Ministry of Economic Affairs, the centers are targeting different segments of the industry for cultivation, turning out high-demand products that capitalize on the nation’s culture of innovation and creativity. In addition, they function as R&D hubs and incubators for associated industries that will add further value to Taiwan’s textile and garment exports.
The timing of this MOEA measure could not be better, especially given that the second stage of tariff reductions for early harvest list items under the Cross-Straits Economic Cooperation Framework Agreement is set to take effect Jan. 1, 2012. Under the three-stage schedule, mainland China will reduce tariffs on 539 items from Taiwan, 136 of which are textile and apparel products.
This reduction is set to have a significant effect on the island’s textile trade, with the Taiwan Textile Federation tipping growth of up to 20 percent in the coming years. Since mainland China is the nation’s No.1 export market, it is only natural that even greater value will be added to the US$2.54 billion in exports that were sent across the strait in 2010.
But more importantly, early harvest list tariff reductions put the local industry on a level playing field with Association of Southeast Asian Nations rivals and guarantee the survival of a strong domestic manufacturing base. This strong foundation is critical if Taiwan is to take its place at the center of a new Asia-Pacific textile and apparel manufacturing and innovation chain.
Efforts to set the table for Taiwan’s re-emergence as an international player in the textile and apparel industry come at a time when the global textile market is in a state of flux. Mainland Chinese offerings are facing increased competition in the shape of high-quality, low-cost products from the subcontinent and increasingly, Eastern Europe. The former has long been eyeing mainland China’s dominant market position, while the latter is growing as a threat in light of the region’s increasing political stability and impact of generous EU support programs.
For Taiwan, however, the genuinely lucrative opportunities do not lie in this segment of the market crammed with rivals tussling over low-hanging fruit. The real gold is to be found in creating cutting-edge products that tickle the fancy of U.S. and Western Europe’s fashion and sports clothing designers.
One Taiwanese firm quick to cotton on to the value of this strategy is New Taipei City-headquartered Singtex Industrial Co. Ltd. Since June 2009, the company has been making headlines throughout the textile world with its S.Cafe fabric.
Singtex’s patented process, which was developed over three years, transforms recycled coffee grounds into an innovative yarn used to manufacture a range of knitted, soft-shell and woven fabrics. Marketed under the slogan “Drink it, Wear it,” S.Cafe is proving a hit with major U.S. firms such as sporting goods group Nike Inc. and outdoor products manufacturer The North Face Inc.
But it is the mid-size fashion houses of Europe with their wider profit margins that Singtex is hoping to sell on the merits of S.Cafe. Renowned Swedish fashion designer Noemi Ivanova, a specialist in women’s intimate apparel, is a convert after having used the fabric to produce a 1980s-influenced trekking suit. Impressed by S.Cafe’s breathability, anti-odor and ecofriendly credentials, she plans to use it in an upcoming activewear range.
Another big hit for Taiwan in the global fabric stakes is a product fashioned from recycled polyethylene terephthalate, or PET, bottles. At last year’s World Cup in South Africa, Nike outfitted nine of the 32 competing teams with these 100 percent made-in-Taiwan jerseys. Squads from Australia, Brazil, New Zealand, Portugal, Serbia, Slovenia, South Korea, the Netherlands and the U.S. took the field sporting shirts billed by the company as the most environmentally friendly and technologically advanced in the history of the game.
Developed with the support of the MOEA’s Industrial Development Bureau, the PET-based product showed that Taiwanese textile firms are leading the way when it comes to producing green textiles that are big on innovation. This accomplishment, which took place on one of the biggest international sporting stages, is a milestone on the industry’s path toward turning environmental protection into business opportunities.
Taiwan’s textile and apparel manufacturers can look forward to a bright future as long as the ROC government and industry groups continue working hand in hand to reboot the industry. No expense or effort should be spared in ensuring all participants get the assistance necessary to take advantage of new market conditions and the abundance of opportunities opening up around the world.
Ed Zacapa is a freelance writer based in Kaohsiung. These views are the author’s and not necessarily those of Taiwan Today. Copyright © 2011 by Ed Zacapa
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