Friday, July 13, 2007

This edition of the Hosiery Insider
is sponsored by Healthier Resources Inc (HRi)

Healthier Resources (HRi) is an International Professional Service
and Staff augmentation company providing the best possible resources
either remotely or directly at the customer’s location.
Specializing in SAP and Oracle technology installations and upgrades HRi has
an extensive Fortune 500 and Federal Government client list.

Headquartered in Charlotte NC, HRi is an active supporter
of Manufacturing legislation designed to provide technology advancements
and representation nationally and internationally.

2007-2008 THA Membership Dues Renewal Notices: Renewal notices for the 2007-2008 THA Membership Year have been mailed. Please keep an eye out for your company’s renewal notice and submit your membership dues to THA in a timely fashion, please.



New Service to THA Members – Products Law Advisory Service: The American Apparel & Footwear Association (AAFA) and THA announce a new service for their respective memberships – a service focused on advising members about California’s Proposition 65 and other relevant product law issues. A letter to THA member contacts was issued June 13. If you are a THA member and would like a copy of the letter, visit THA’s Member Section of the website at http://www.hosieryassociation.com/Members/home.asp and log in. Additionally, members can receive news bulletins from Farella Braun concerning restricted substances updates.

New Service to THA Members: Consumer Insights on Legwear: The Hosiery Association (THA) is pleased to announce a new member only driven service which addresses the various types of legwear consumers purchase as well as why they purchase them. In addition to the top line government production and shipment data, the consumer insights portion of the statistical report features ten specific questions developed by the Task Force. A demographic analysis of the over 30,000 consumers who participate in the study will be featured along with top line retail sales figures. The information will be available on a semi-annual basis. For further details please contact THA at 704.365.0913 or email at info@hosieryassociation.com.


Seamless Consortium Sponsors Seminar at Outdoor Retail Show Keeping Your Product Development $$$ on Track: Sustainability, Seamless Knitting and Nanotechnology: Innovations & Sustainability are driving the performance market. Don't miss this, the ninth in a series of Outdoor Industry Panels organized by FabricLink on Friday, August 10th at the Marriott in Salt Lake City which brings together leaders in the performance textile & apparel supply chain. For further information, contact info@seamlessconsort.com.

Chapter News

AL Chapter Golf Tournament: AL Chapter’s Annual Scholarship Golf Tournament will be held Thursday, October 4 at Terrapin Hills in Fort Payne, AL. For further information, please contact Jody Goggans at jgoggans@prewettmills.com.

CHA Chapter Supplier Luncheons: The next supplier luncheon has been tentatively scheduled for Thursday, August 23.

Hosiery News-More Frequent, More Flexible. You spoke and we listened. According to the recent membership survey, Hosiery News is now distributed monthly and in electronic format only. This new format affords readers more flexibility in obtaining the information they need on a timelier basis and advertisers can quantify the broader exposure they receive through monthly reports. Additionally, THA is focused on cost efficient and eco-environmentally ways of conducting business. As we work to verify our distribution database is accurate, please contact Vicki Camp (email: vicki.camp@hosieryassociation.com) to ensure that you, your company representatives and customers are receiving each of these communications tools.

 

Hyosung Receives Key Supplier Award from Kimberly-Clark: On June 12, the creora® spandex division of Hyosung was recognized by Kimberly-Clark Corporation at its First Annual Suppliers Recognition Award Luncheon, which celebrated their North Atlantic Regional Suppliers. The creora® spandex award is for consistently driving superior value and meeting Kimberly-Clark’s expectations for on time delivery and service for its Personal Care products. “We are truly honored to be recognized by Kimberly-Clark. We have worked hard to meet or exceed their needs and expectations.” Said Greg Vas Nunes, President of Americas and Europe for creora® spandex. “Kimberly-Clark is a great partner and customer. We value their business and appreciate this recognition award.”

Limited Brands Inc. announced this week that it will transfer 75 percent of the ownership of its Limited Stores chain as it completes its moves away from being an apparel retailer to one focused on its more profitable lingerie and beauty businesses. The operator of Victoria's Secret and Bath & Body Works also said it had raised the stake in its Express brand that it will sell to affiliates of private equity firm Golden Gate Capital to 75 percent and will receive $602 million in cash.

Liz Claiborne to Restructure Company: Two weeks after the death of its founder and well known designer Liz Claiborne, the U.S. apparel company is beginning to contemplate restructuring options including cutting 600 to 800 jobs, or about 7 to 9 percent of its non-retail, global work force. The recent decline in department store sales prompted action and executives have also initiated plans to aggressively expand the specialty retail store base of brands like Kate Spade, Juicy Couture and Lucky Brand Jeans. In addition to these changes, sixteen of the company’s brands, which account for about $800 million of projected annual sales, are under review. Liz Claiborne could decide to sell, discontinue or license brands such as: Dana Buchman, Kensie, Laundry by Design, Sigrid Olsen, Intuitions and Tint. The plan predicts savings of about $100 million in 2008 and an additional $90 million over the following two years.

Adidas teams with Nascar's Dale Earnhardt Jr
Adidas has entered a multi-year partnership with Nascar driver Dale Earnhardt Jr. to produce footwear, apparel and accessories, signifying the athletic company's launch into the popular U.S. motor sport. The deal calls for Adidas to make Earnhardt's racing suit and technical footwear, off-track footwear and clothing for his millions of fans.


June Retail Sales

Wal-Mart, the world's largest retailer, had a 2.4 percent gain in same-store sales.
Target Corp. had a 3.3 percent gain in same-store sales, in line with forecasts.
TJX Cos. had a 5 percent increase, exceeding the 3.3 percent estimate.
Macy's suffered a 2.7 percent drop in same-stores sales.
J.C. Penney had a 1.5 percent decline in same-store sales in its department store business. .
AnnTaylor suffered an 8.4 percent drop in same-store sales, dragged down by its lower-priced Loft division.
Gap Inc. suffered a 5 percent drop in same-store sales.
Pacific Sunwear of California Inc. posted a 4.5 percent same-store sales increase.
Abercrombie & Fitch had a 2 percent gain in same-store sales.
American Eagle Outfitters Inc. reported an 8 percent same-store sales gain.
Family Dollar had an overall 4.6 percent increase over last June and same store sales rose 1.5 percent in June.

Is Casual Friday a Goner?
With employees pushing the limits of business casual, many employers are rethinking their company dress code policies, returning to a more conservative approach. "Managers have discovered that leaving dress decisions open to interpretation is too risky and [they] find it much simpler to rule out casual Friday," said a spokeswoman for WorldatWork, an association for human resources professionals.

How does your organization spend the majority of its advertising or marketing budget? Last week's poll (US Chamber of Commerce) asked readers how their organizations spend the majority of their advertising or marketing budgets.

• 7% said Internet ads.
• 34% said print ads.
• 5% said TV ads.
• 39% said a combination of these.
• 15% said other.

ASAPSHOW – Why Exhibit at ASAP? ASAP gives the apparel companies the best chance to meet top US retailers and brands who are seeking alternative sourcing options. ASAP’s reputation in the apparel industry boasts the highest number of attendees, and a diverse number of countries. ASAP receives the most endorsements from overseas governments and works directly with them to organize their respective country pavilions that represent the “Best of…” each country and buyers know this. The next show will take place on August 26-29 at the Venetian Grand Ball Room in Las Vegas, NV. For additional information, go to www.asapshow.com or email info@asapshow.com.


 

CITA Extends Quota under ATPA Regional Fabric Provision until Sept. 30
The Committee for the Implementation of Textile Agreements has issued a notice extending until Sept. 30 the quantitative limitation on duty-free treatment for qualifying apparel articles under the Andean Trade Preferences Act’s regional fabric provision. This provision applies to apparel articles sewn or otherwise assembled in one or more ATPA beneficiary countries from fabrics or from fabric components formed or from components knit to shape in one or more ATPA beneficiary countries from yarns wholly formed in the U.S. or one or more ATPA beneficiary countries. Such apparel articles may also contain certain other eligible fabrics, fabric components or components knit-to-shape. For the period beginning Oct. 1, 2006, and extending through Sept. 30, 2007, the aggregate quantity of imports eligible for preferential treatment under this provision is 1,164,288,418 square meters equivalent. Apparel articles entered in excess of this quantity will be subject to otherwise applicable tariffs.

China Trade Surplus Hits Record High Despite Efforts to Narrow Gap
Chinese customs authorities announced this week that the country’s trade surplus hit a record high of $112.5 billion in the first half of 2007, an 84 percent jump from the same period a year before. The $26.9 billion monthly surplus in June was also a record, up 85 percent from June 2006. Imports into China grew by 14.2 percent in June to $76.4 billion, but exports soared 27 percent to $103.3 billion.

Foreign Investment Reform Bill Heads to President
A bill to reform the way the federal government reviews proposed foreign investments in the U.S. is on its way to President Bush after the House approved it this week by a vote of 370-45. The House agreed to the Senate-passed version of the Foreign Investment and National Security Act of 2007 instead of insisting on a conference to resolve differences between that bill and the one the House passed earlier this year.

U.S. Advances WTO Case against Chinese Subsidies
The Office of the U.S. Trade Representative announced this week that the U.S. has requested the establishment of a WTO dispute settlement panel regarding China’s continued use of subsidies that appear to be prohibited by WTO rules. The USTR has previously stated that several of the subsidy programs at issue appear to grant export subsidies, which provide incentives for foreign investors in China and their Chinese partners to export to the U.S. and other markets. Other subsidy programs provide incentives for companies in China to purchase domestic equipment and accessories instead of buying from U.S. exporters. Earlier this year China terminated one of the subsidy programs challenged by the U.S., which allowed large exporters to take advantage of discounted loans not available to other companies. However, it also adopted a revised income tax law that appears to provide for prohibited subsidies.

ITC Issues Report on Proposed NAFTA Rules of Origin Changes
The International Trade Commission issued its report yesterday on the probable economic effects of proposed modifications to the NAFTA rules of origin for certain sanitary articles, nonwoven wipes and chenille fabrics. The proposed changes cover sanitary towels or tampons from Canada and Mexico classified under HTSUS 5601.10, nonwoven wipes from Canada and Mexico classified under HTSUS 5603.91-5603.94, viscose rayon staple fiber from Canada and Mexico classified under HTSUS 5504.10, chenille fabrics from Canada classified under HTSUS 5801.36 and chenille fabrics made from acrylic fibers from Canada classified under HTSUS 5503.30. The report states that the proposed modifications will likely have little or no effect on U.S. trade under NAFTA, total U.S. trade or domestic fiber producers but will benefit domestic producers of the specified textile articles. According to the ITC, there is no known U.S. production of either viscose rayon staple fibers or acrylic staple fibers. The proposed modifications will also likely benefit U.S. consumers to the extent that the specified textile articles become more available in the U.S. market and duty rate reductions are passed on to consumers.

USTR Seeks Input for Out-of-Cycle IPR Review of Russia
The Office of the U.S. Trade Representative is requesting by Aug. 27 written public comments as part of its Special 301 out-of-cycle review of intellectual property rights protection in Russia. Specifically, the USTR is seeking submissions on Russia’s acts, policies and practices regarding the adequacy and effectiveness of IPR protection and enforcement. In particular, submissions should address Russia’s implementation of the U.S.-Russia Bilateral IPR Agreement of Nov. 19, 2006. The USTR states that comments should include a description of experiences with respect to Russia in the field of IPR and the effect of Russian IPR acts, policies and practices on U.S. industry. Comments should be as detailed as possible. Any comments that include quantitative loss claims should be accompanied by the methodology used in calculating such estimated losses.

EU Takes Steps to Modernize Customs Code, Create Paperless Environment
A political agreement was reached by the European Union’s Council of Ministers last month on a draft regulation that will modernize the EU’s customs code. The council states that the updated code, which is slated to take effect in 2009, provides for a “radical reform” of customs import and export procedures for the EU’s 27 member countries and prepares the way for the implementation of a bloc-wide paperless customs environment. The agreement must now be confirmed by the European Parliament in a second reading, which is expected to occur in the next few months.

EU Metric Directive – Public Consultation Report The European Commission has finished analyzing and compiling the result of the public consultation on the Metric Directive. The EC report is available from the EC website at: http://ec.europa.eu/enterprise/prepack/unitmeas/public_consultat_report_26jun07.pdf
If you have any questions, please contact:

Ann Ngo
Office of the European Union
Market Access & Compliance
International Trade Administration
U.S. Department of Commerce
Phone: (202) 482-0010
E-mail: ann_ngo@ita.doc.gov

China Approves Labor Law Overhaul
China’s legislature has approved a major overhaul to the country’s labor law that is scheduled to come into force Jan. 1, 2008. There had been come concern expressed during public review of previous versions of the law that it could further increase the cost of doing business in China and drive foreign investors to move their operations to lower-cost countries elsewhere in Asia. However, press reports indicate that the final version of the law incorporates a number of changes and that most business groups now say they are satisfied with it. Chinese officials said this week that the law should give companies more certainty in dealing with labor issues and should therefore improve the environment for foreign investment in the country.

 

The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.

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