Friday, January 6, 2006
In Remembrance – Beverly Neuville passed away Wednesday morning (Jan 4) following a long illness. Beverly was the wife of Steve Neuville, former owner of Neuville Industries and THA Chairman from 1996-1997 and step-mother of Jeff Neuville of ILG Group who currently serves on THA's Board. The funeral service will be held today (Jan 6) at 3:00 pm (Eastern) at the First United Methodist Church in Hickory, NC. The family requests that donations in Beverly 's memory be made to either Palliative Care-Hospice of Catawba County or the First United Methodist Church Building Fund.
 New Year Offers New Information on THA Website: THA is continuing to update and re-format its website. Please note that the Winter ‘06 Legwear Runway Report and Consumer Fashion Tips sheets (PDF format) are now available. These informational tools are great to share with your retail customers and the consumer. Please visit www.hosieryassociation.com to see the latest happenings.
NC State University's 2006 Continuing Education Schedule: NCSU has published their 2006 schedule of continuing education courses. On January 10-13, the “Six Sigma Executive Overview” will be hosted by Dr. A. Blanton Godfrey, Dean, College of Textiles. He will discuss: what Six Sigma is, the positive financial impact for companies practicing Six Sigma and the managerial roles for the deployment of Six Sigma. Additional presentations will be given by industry practitioners on how Six Sigma can be successfully implemented in today's competitive environment. “Introduction to Nonwovens Products and Processing” will be held on February 6-8 and is an excellent opportunity for you to learn about the many types of nonwovens products and what processes are used to manufacture them. Nonwovens are a leading growth industry in the US with a worldwide growth rate exceeding 7%/annum. On February 6-10 , “Textile Fundamentals” will be held and is one of the most popular core programs in NCSU's “Fundamental Series,” which will provide you with a comprehensive, in-depth study of the entire textile process from fiber formation through finishing. Most of the courses are held on NCSU's Centennial Campus. To view the entire 2006 schedule or if you are interested in registering for one of these courses, visit www.ContinuingEducation.NCSU.edu .
THA Issues Committee will meet on January 17 at THA's office. The Committee consists of the following: Committee Chairman, Bill Redding of Acme-McCrary Corporation; Bobby Cole of Prewett Associated Mills; Bruce Duncan of Sara Lee Hosiery; Eddie Ingle of Unifi; Bill Nichol of Kentucky Derby Hosiery; Kevin Toomey of Golden Lady/Kayser-Roth Corporation and Mark Zerona of Shogren Hosiery. All members are encouraged to share their views with any and/or all of these members.
The first AL Chapter Luncheon of 2006 will be held on January 19 at the Western Sizzlin' in Fort Payne, AL . For additional information regarding this luncheon, contact Jody Goggans, Program Chairman, at jgoggans@prewettmills.com or call Mike Austell at 704-365-0913 Ext 204.
CHA's Supplier Luncheon – “Going Global: Lessons Learned in International Logistics” will be held in Greensboro, NC at The Pepper Tree Inn on January 26. Join them for a complimentary lunch and an informative panel discussion, which will cover some key aspects of taking your business international. The panelists include: Dana Hicks, International Business Development Consultant; Marion Jones , Vice President of Sun Trust Bank; and Ron Reighter , Vice President of CV International. Registration will begin at 11:15 a.m., Lunch at 11:30 a.m., Panel Discussion at 12:00 p.m. with a Question & Answer Session at 12:45 p.m. (all times Eastern). To register, email Mike Austell at mike.austell@hosieryassociation.com .
Join THA for NAM's Washington Fly In: As a member of the National Association of Manufacturers' Council of Manufacturing Associations, THA will be participating in this event on February 7-8. If you are interested in joining staff to meet with your peers and respective Congressmen and Senators, please contact Sally Kay at 704-365-0913, ext. 212 or email sally.kay@hosieryassociation.com for further details on how you can participate.
Speed To Market: Allowing Innovation to Drive Your Future is the theme for THA's Marketing Conference - March 13–14, 2006 at the Charlotte Marriott Executive Park: Guest speakers include Robin Lewis, a strategic analyst and consultant, specializing in identifying opportunities and developing growth strategies in marketing, brand positioning and distribution primarily on the branded apparel and retail industries. He also writes and publishes the monthly Robin Reports. Molly Barker, founder of Girls on the Run International, a global program that instills healthy physical and mental principles for girls in grades 3 – 8. Molly was recognized as Charlotte 2004 Woman of the Year and is featured in the current issue of O Magazine. Registration information will soon be available. For further event details, contact Sally Kay at 704.365-0913, ext. or email sally.kay@hosieryassociation.com .
 THA's 101st Annual Convention – April 27-30 – The Mulberry Inn, Savannah, GA: Now posted on THA's website ( www.hosieryassociation.com ) are the Schedule at a Glance, Program Agenda, Speaker Biographies and a link for making Hotel reservations online. Hotel reservations can also be made by calling The Mulberry Inn directly at 877-468-1200 and specifying the “THA room block.” Room rates are $169/night (single or double). The DEADLINE for making room reservations is Monday, March 27 . So make your hotel reservations now to ensure that you get THA's special convention rate. Information on how to register for the convention will also soon be available. Scott Quesenberry, new Chief Textile Negotiator for USTR, and James “Jim” Leonard, Deputy Assistant Secretary of Textiles, Apparel for the US Department of Commerce, have agreed to speak on Friday morning, April 28, during the Global/Political Overview session. Other guest speakers include Marshal Cohen of the NPD Group and Dr. Nancy Cassill of North Carolina State Univiersity. Stay tuned for additional information as it is updated.
Limited Number of 2006 CHA Luncheon Sponsorship opportunities are still available. If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 ext 204. Call early before all dates are taken.
Pocket Calendars Have Been Discontinued: Due to newer technology and financial constraints, THA no longer offers pocket calendars. If someone is interested in reinstating this service by becoming the pocket calendar sponsor, please contact Vicki Camp at the THA office, 704-365-0913, ext. 216 or email vicki.camp@hosieryassociation.com .
The Hosiery Association Centennial: In Step With The Industry For 100 Years – Copies of THA's centennial publication are still available. This is the only commemorative book that captures the Association's 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.
The 2006 AATCC Technical Manual is Now Available in both print and CD-ROM formats. The Manual contains 115 test methods and eight evaluation procedures. The CD-ROM is in searchable PDF format. Some of the methods updated for 2006, featured in both the printed and CD products, include: TM-20-2005, Fiber Analysis: Qualitative; TM 20A-2005, Fiber Analysis: Quantitative; TM 22-2005, Water Repellency: Spray Test; and the TM 124-2005, Appearance of Fabrics after Repeated home Laundering. To order the manual in print version, specify Order No. 03006; and to order as a CD-ROM, specify Order No. 3006CD. Order by Telephone 919-549-3526, Fax 919-549-8933, or Email orders@aatcc.org .
 
Warnaco Announces Agreement to Acquire Licensed Calvin Klein® Businesses in Europe and Asia: The Warnaco Group, Inc. announced that it has agreed to acquire 100% of the shares of the companies that operate the licenses and related wholesale and retail businesses of Calvin Klein® jeans and accessories in Europe and Asia and the CK Calvin Klein "bridge" line of sportswear and accessories in Europe from Fingen SPA, a holding company controlled by Corrado and Marcello Fratini of Florence, Italy, for euro 240 million ($286 million based on current exchange rates), subject to certain adjustments for working capital. Calvin Klein, Inc., the licensor of the businesses being acquired, is a minority shareholder of certain of the entities being acquired. Calvin Klein, Inc. is a wholly owned subsidiary of Phillips-Van Heusen Corporation. Warnaco will fund the acquisition using a combination of cash on hand and borrowings under a new committed credit facility. The acquired licenses between Warnaco and Calvin Klein, Inc. will have 40-year terms. Additionally, beginning in 2008 and continuing through December 2013, Warnaco will assume the license for Calvin Klein men's and women's Collection apparel and accessories worldwide from Fingen. The transaction is expected to close in the first quarter of 2006, upon receipt of regulatory approval and satisfaction of certain other closing conditions. Warnaco anticipates that the transaction should be accretive in fiscal 2006.
Hilfiger Becomes Fashion Victim: Clothing designer Tommy Hilfiger bowed to a $1.6billion (pounds 924m) buyout by Apax Partners after struggling to reverse tumbling sales and falling out of favour with its key teenage base. The company put itself on the block when it became clear efforts to transform itself were failing. Shoppers defected to rival brands like Sean John while department stores cancelled orders. Although it expanded in Europe, opening in Milan and buying the German Karl Lagerfeld luxury label, it struggled at home. Apax is in talks with Phillips Van Heusen on invigorating the brand. The two worked on Calvin Klein, partly-owned by Apax.
US: Monthly retail sales figures point to a respectable holiday season: U.S. retailers faced an uncertain 2006 on Thursday, January 5 after December sales figures showed that the holiday shopping season, while overall respectable, was disappointing for some of nation's most prominent merchants. As expected, Wal-Mart Stores Inc. was one of the stragglers, falling short of Wall Street's expectations and warning about its fourth-quarter profits. As stores reported their monthly results, the winners included Target Corp., Costco Wholesale Corp., Nordstrom Inc., and teen retailers such as Abercrombie & Fitch Co. Gap Inc. and Sears Holdings Corp. were among the other disappointments.
Retailers Holiday Commercials; Consumers Like Target and Wal-Mart Best, Most Say They Don't Prefer Any: Retailers spending on TV commercials to drive shoppers into their stores is meeting with a yawn from most consumers according to the 7324 consumers who participated in BIGresearch's December Consumer Intentions and Actions Survey (CIA). When asked "Which retailer has the best holiday TV Commercial?", 75.2% said they had no preference. Target was the top commercial mentioned at 5.6% and Wal-Mart was second with 3.5%. Sears 1.5%, Kohl's 1% and Best Buy .9% rounded out the top five. Unfortunately, when asked if their favorite commercial motivated them to shop that retailer 38.1% of those who had a favorite commercial said no, 26.5% said yes and 35.4% said the commercials had no impact because they were already shopping at that retailer. Consumers were also asked which holiday advertising media most influences them to shop at a particular retailer.
Top 10 Media Influence on Purchases
Overall (All Ages)
1. Coupons
2. Newspaper Inserts
3. Word of Mouth
4. TV (Broadcast)
5. In-Store Promotions
6. Direct Mail
7. Newspaper
8. Cable
9. Radio
10. Email
The list is the same for those who had a favorite commercial with the exception of #10 which was magazines rather than email.
Old Navy to Close 3 Stores: Indianapolis, Indiana shoppers will lose three of their six Old Navy stores in January. Parent company Gap Inc. confirmed it is closing stores Downtown and at Speedway Center and Glendale Mall. Company spokeswoman Kimberly Terry declined to give specific reasons for the closures. "There are a number of factors we look at: the number of stores in the market, store performance and location, and lease expiration," she said. Last month, the specialty clothing chain reported a 20 percent drop in third-quarter profits, its worst performance in three years. Gap Inc., which also owns the Gap and Banana Republic brands, had cautioned investors and analysts about a gloomy holiday season. Analysts blamed fashion miscues for the slump. The company in recent years had shifted more toward earthy tones than primary colors, which are more popular with Americans.
Scarlett Johansson recently signed a 3 million dollar deal with L'Oréal Paris for a new color cosmetics line, called HIP or High Intensity Pigments. The new line is aimed at drug and department store customers. TV ads will premier during the Golden Globes telecast that will air January 16. The blonde actress known for her sensual lips has been nominated for 4 Golden Globes including Best Supporting Actress in Woody Allen's critically acclaimed "Match Point.”
Britney Spears' popularity is about to take a plunge according to the second annual Newsmaker Brands survey. The poll rates consumer attitudes towards brands and celebrities in the news. Donald Trump and Howard Stern are also on their way out in ‘06. Oprah Winfrey was second only to Google on the list for predicted winners in 2006.
Karl Lagerfeld has expressed his satisfaction with the Apax Partner's $1.6 billion deal to buy Tommy Hilfiger Corp. Last year Hilfiger bought Lagerfeld Gallery.
China’s Textile Trade Grew 20% in 2005: Despite ongoing trade disputes and a revaluation of the yuan, China’s textile industry grew roughly 20% in 2005. According to the Xinhua news agency, a report from the China Chamber of Commerce for Import and Export of Textiles estimated that sales revenue totaled $250 billion in 2005, with profits of about $8 billion. Exports reached $116 billion, up from $97.3 billion in 2004. China’s textile exports to the US and the European Union (EU) grew 62.7% in the first ten months of 2005 and accounted for 34.1% of total exports, up from 25.7% a year earlier. The report attributed this growth to increased investment in fixed assets and technological innovations.
Guatemala Plans to Strength Ties to Mercosur: Guatemala has announced that it will seek to strengthen its ties with Mercosur. Guatemalan Vice President Eduardo Stein said in a recent interview with the Associated Press (AP) that the decision to begin discussions with Mercosur is “a natural follow-up to the offer from President Lula of Brazil to negotiate with Guatemala.” Stein added that Guatemala chose to finish negotiating with the US before getting involved in negotiations with the South American trading bloc. According to the AP, Guatemala’s Congress has not yet made the necessary legal reforms for implementation of DR-CAFTA; however, a congressional committee has given those reforms a favorable recommendation. Guatemala had hoped that this would be enough for the US to proceed with implementation.
Yellow Roadway to Begin Operating in China: According to the Wall Street Journal, Yellow Roadway Corp. has announced that it will begin operating trucks in China later this year. The company, which recently changed its name to YRC Worldwide, plans to initially introduce no more than 100 trucks to serve a handful of large manufacturers or retailers that are moving apparel, electronics, and other goods to Shanghai for shipment to the US. The article noted that the company made the decision in large part due to unreliable ground transportation for US-based manufacturers within China. YRC is already involved in China through joint ventures in freight forwarding and logistics, but this will be the first time it operates its own trucks there. The company plans to expand service to other parts of China in the future.
South Asian Trade Agreement Takes Effect: The South Asian Free Trade Agreement (SAFTA) became operational on January 1, even though Pakistan has not yet ratified it. Under the agreement, developing countries Pakistan, India, and Sri Lanka have promised to reduce duties on intraregional trade to between 0% and 5% by 2013, while least-developed country (LDC) members Bangladesh, Maldives, Nepal, and Bhutan have agreed to do so by 2018. The LDCs will also receive technical assistance in areas such as capacity building in customs procedures and trade facilitation. Expectations for the agreement are high. Trade among SAFTA countries currently stands at a modest $6 billion a year, but Indian Prime Minister Manmohan Singh predicted that number will reach $14 billion within two years.
Caribbean Community Moves Toward FTA: The Caribbean Single Market and Economy (CSME) treaty went into effect on January 1 with Barbados, Belize, Guyana, Jamaica, Suriname, and Trinidad and Tobago as its first full members. Another six countries are expected to join by the end of March. The 15-member Caribbean Community (CARICOM) hopes the CSME treaty will help it stay competitive in the global marketplace. With the single market now in force, CARICOM members will work to create a single economy similar to that of the European Union (EU) by 2008.
USTR Announces Delay of DR-CAFTA Implementation: The Office of the US Trade Representative (USTR) announced on December 30 that implementation of the DR-CAFTA will be delayed until at least February 1 because signatory countries still have not completely the necessary domestic reforms. In the meantime, those countries can continue to enjoy trade preferences under existing programs.
CBP Issues Clarification on MID Requirements for Textiles and Apparel: US Customs and Border Protection (CBP) recently issued a directive making the following clarifications regarding compliance with the Manufacturer Identification Code (MID) requirement for textile and apparel imports that was announced on October 5. The MID is required for all entries in which a CBP Form 3461 and CBP Form 7501 must be submitted to CBP to make entry. This applies to both formal and informal entries. For textile merchandise identified in 19 CFR 102.21 (b)(5), this MID must be calculated from the manufacturer that performs the origin-conferring process. If an importer cannot provide the name of this manufacturer, the goods can be excluded when there are admissibility concerns; i.e. if the importer cannot provide the name when the goods are subject to quota/visa admissibility issues. If CBP determines that an MID is calculated from a party that did not produce the goods, the importer and broker may be subject to penalties. Importers can show that they exercised reasonable care by providing the broker with a statement naming the producer of the merchandise or including this information on the invoice. The importer should obtain a statement from its agent providing the name and address of the factory that produced the merchandise.
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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