Press November Largest ever Intertextile Shanghai Apparel Fabrics sets new exhibitor and visitor records

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Press November 2014 China International Trade Fair for Apparel Fabrics and Accessories Shanghai, China, 20 23 October 2014 Liam Rodden Tel +852 2230 9217 Fax +852 2598 7919 liam.rodden@hongkong.messefrankfurt.com www.messefrankfurt.com www.intertextileapparel.com ITSA14 final report eng Largest ever Intertextile Shanghai Apparel Fabrics sets new exhibitor and visitor records Demand in China still strong for overseas brands and predicted to remain in future All About Sustainability grows by 148% as domestic demand increases This year s Intertextile Shanghai Apparel Fabrics Autumn Edition broke all records in what doubled as a celebration of the fair s 20 th anniversary. A total of 3,844 exhibitors from 30 countries and regions a 2% increase compared to 2013 took part, while 71,138 visitors from 93 countries and regions attended the fair a 3% rise on last year. The top 10 visitor countries and regions, excluding Mainland China, were Hong Kong, Korea, Japan, the US, Taiwan, Turkey, Russia, Indonesia, the UK and India. Both the exhibitor and visitor figures represented new records for the show which was held across 15 halls and 175,020 sqm, making it the largest in the event s history. The fair took place at the from 20 23 October. A number of displays and events were incorporated into the fair this year to mark the significant milestone of the 20 th anniversary edition. This included a fashion show, a Fabric Wall created from fabric swatches of different exhibitors and a celebration video which offered a retrospective take on previous editions of the fair. Next year will see the fair continue to evolve with the 23rd China International Fashion Fair 2015, also known as CHIC, to be held concurrently with the Spring Edition in March. Messe Frankfurt (HK) Ltd 35/F, China Resources Building 26 Harbour Road Wanchai, Hong Kong

Page 2 Senior General Manager of fair organiser Messe Frankfurt (HK) Ltd, Ms Wendy Wen, spoke at the conclusion of the show about the new records that were achieved. While it was pleasing we set new records this year, which proves the fair s continued importance to the global industry given the sluggish economy at the moment, what was also satisfying was the quality of both exhibitors and visitors here this week, Ms Wen said. Exhibitors were encouraged to see a large number of quality buyers from big European and American brands, while many reported an increase in new customers from growing markets such as Russia, the Middle East and Southeast Asia. Buyers also praised the increasing quality of domestic exhibitors, as well as the large range of premium suppliers from Europe and Asia. Demand in China still strong for overseas brands and predicted to remain in future Despite slower economic growth in China in the last year, demand is still high for international brands, particularly premium labels from Europe as confirmed by exhibitors. Absolutely, the UK brand is recognised here, and we plan for substantial growth in China in the future as the suitings segment is growing here, explained Mr Ronald Hall, Managing Director of Bower & Roebuck & Co Ltd which exhibited in this year s Premium Wool Zone. There s a focus on design, quality and heritage now in China which we can take advantage of. Mapel SpA from Italy also exhibited in the same zone, and General Manager Mr Luca Grassi explained the advantage for his firm. Our European brand is our advantage here and made-in- Italy is still in demand in China. With our style and colours we have an advantage, so we re optimistic about the market in Asia for the next year. Staying within SalonEurope, which featured 296 premium suppliers this year, Portuguese firm Texser A Textil De Serzedelo was also buoyant about the future. There will be more and more demand for European fabrics here, and I predict it will keep growing for the next

Page 3 five years, Mr Jose Antonio Ferreira outlined. The industry here is definitely booming, and this fair is the only way to get into this market and be known. Many other exhibitors, both from Asia and Europe, were optimistic that the apparel fabrics market in China and throughout Asia still holds a lot of potential in the next few years. Mr Sandeep Goel, Vice President at Kaybee Exim Pte Ltd, Singapore, explained: The potential is very high in the Chinese market. Our business here increased last year, and we are very optimistic about next year too. Mr Raphael Sommer, Managing Director for Hausammann + Moos AG from Switzerland shared a similar sentiment. The reason we keep coming to this fair is because China is a big market and there are many good representatives with potential here. We are optimistic about the future, and expect more orders and to find new customers in this market. Country pavilions and product zones beneficial for exhibitors and buyers A number of country and region pavilions, and product halls and zones featured at this year s fair, including the Milano Unica Pavilion which featured 127 high-end Italian suppliers. As the fair has continued to expand recently, we have created a number of zones to help buyers not only find the items they are looking for, but also more easily identify the upcoming trends of different products, Ms Wen explained. These zones are also chosen based on current needs of the local market, ensuring we provide overseas exhibitors with targeted opportunities to tap into existing demand in China. This year s Beyond Denim area was enlarged to an entire hall to meet strong demand in the local market, and generated a lot more traffic for exhibitors. Pakistan company Azgard Nine Ltd s Mr Munir Alam explained: This hall is good as it attracts only people interested in denim so we get better quality buyers. We ve had

Page 4 buyers from Europe and the US come to our booth as all the big brands have buying offices here, as well as some from Peru, Argentina, Brazil and elsewhere. His compatriot, Mr Aamir Hussain from Rajwani Denim (Pvt) Ltd commented: You should always have Beyond Denim in a separate hall as you get good, select buyers coming here. There are good-quality buyers from many different countries from all regions of the world. All About Sustainability grows by 148% as domestic demand increases Due to strong interest in the sustainability field in the region, the All About Sustainability zone increased in exhibition space by 148% compared to the 2013 edition. Of particular interest for visitors was the Educational Zone, which featured the Oeko-Tex Pavilion, with certifiers and testers in this area reporting increasing demand for their services in China. Exhibitors reported that this zone attracted their target buyers more effectively. The All About Sustainability zone is very convenient for buyers to visit, so I think this arrangement is very good and we will return next year, said Mr Lifu Wang from Control Union Certifications (Shanghai) Co Ltd. Many customers have visited our booth including some famous overseas brands such as H&M and C&A, he continued. Chinese exhibitors appreciate fair s internationalism For many local companies, Intertextile Shanghai Apparel Fabrics is their first choice to exhibit as they appreciate the internationalism of the fair, and diversity and quality of buyers compared to other shows in the country. Huafu Top Dyed Melange Yarn, a leading company in the domestic industry, was impressed with the number of buyers that the fair attracts. The quantity of visitors is more than we expected, and our booth has been very crowded, Marketing Supervisor Ms

Page 5 Lynn Chen outlined. The proportion of overseas visitors is higher here compared to other fairs too, and there are a lot from Europe and the US. This is one of the most important exhibitions in the Asian fabrics industry. Guangzhou Zhanya Garment Co Ltd s Mr Lou Da Qian appreciated the wide range of buyers that came to his booth. We met brands, design studios and garment manufacturers from China, Thailand, Brazil, India and Korea, and they showed great interest in our products. Buyers have multitude of reasons for finding fair beneficial Buyers came from 93 countries and regions this year, and their praise for the fair was just as diverse. First-time visitor Ms Suzy Haber Wakefield was amazed by the size of the fair, exclaiming: My first impression is wow, how big the show is! I get to see a lot of vendors here so it s great, and I will definitely return next year, the Senior Vice President at US firm Carole Hochman Design Group continued. British buyer, Ms Naiomi Beautmont Swindlehurst from Marks & Spencer, commented on how the quality of exhibitors had improved a lot in the time she had attended the fair. Compared to the first time I came here, Intertextile Shanghai has really improved a lot, especially in terms of exhibitor quality and the business approach of Chinese suppliers. She concluded that she was also looking forward to attending next year s fair in the new venue in Hongqiao. Canadian buyer Mr B. James Bottoms from The Unisync Group was visiting the fair for the first time. I have found everything I was looking for plus a lot more, he said. I plan to stay here for a few days and I will go home with lots of great ideas. I love the fact that there are a lot of European brands and inspirations, as well as Asian suppliers here. Despite the vast size of the fair, he was impressed with the ease of finding what he needed. The show is very well

Page 6 organised and laid out. I am here to look for specific things and I m not wasting any time finding them. Many buyers also expressed that the fair was a good place to discover new products and ideas, including Mr Marcus Lansden from Vibes Base of the US. Knit denim is the new trend in the market at the moment, and I found some good Chinese suppliers for this. I ve found some good new things, and we re finding more and more quality products here which is important for us. Mr Lansden, who was a participant in the fair s VIP Buyer Programme, concluded: For fabrics, this is one of the best fairs in the industry. Chinese buyer Mr Lei Hu from Lufeng Co Ltd agreed with this sentiment. Every time I come here I leave with many new ideas. What s also pleasing is the quality of exhibitors keeps getting better every year. Fringe programme inspires and informs exhibitors and buyers In addition to the 15 halls full of fabrics and accessories, the fair s fringe programme also provided participants with a wide range of design and trend ideas, as well as the latest market news and industry technologies. This year s expanded programme included five international and domestic trend forums, two fabric design competitions, more than 35 seminars, a round table meeting where the future of the industry in the region was discussed, and the debut GOTS Forum. Many buyers made the trend forums their first port of call to discover next season s fashion trends before heading to see exhibitors. There are lots of trends to look at in the trend forums, Ms Stacey Halliwell, the Creative Director at Inspiration Sourcing Bureau from Singapore said. I ve visited the show every year since the first edition in 1995 and it has become very international now, she also commented. Exhibitors could gain extra exposure from displaying their fabrics in the trend forums, as well as other events such as the China International Fabrics Design Competition and China

Page 7 International Fabrics Creation Competition. One such exhibitor was Malfroy & Million from France. One of our fabrics received an award in the fabrics competition and we received many enquires at our booth because of this, Sales Manager Ms Marie-Helene Riviere explained. This year s seminars were presented by the industry s leading companies, with design and trend presentations led by representatives from Huafu, Milano Unica, the NellyRodi TM Agency, Peclers Paris and others, while speakers from Control Union, Jintex Corp, Lineapelle, Oeko-Tex Association, SGS, the Sustainable Apparel Coalition, TESTEX and Unifi conducted seminars on sustainability issues. Audience members appreciated the expertise of the speakers and the content. This is my first time at the fair and I came to learn more about the latest textile industry news and product updates, explained Ms Emily Mi, Compliance Manager at PVH Management Consultant (Shanghai) Ltd. I attended a demonstration of a new platform system here and it was very useful. The next Intertextile Shanghai Apparel Fabrics Autumn Edition will take place from 13 15 October 2015. Next year s Spring Edition will be held from 18 20 March 2015. Both fairs will take place at a new venue, the National Exhibition and Convention Center (Shanghai), and are co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. For more details on this fair, please visit: www.intertextileapparel.com. To find out more about all Messe Frankfurt textile fairs worldwide, please visit: http://texpertise.messefrankfurt.com. Background information on Messe Frankfurt

Page 8 Messe Frankfurt is one of the world s leading trade fair organisers, generating around 545 million in sales and employing some 2,000 people worldwide. The Messe Frankfurt Group has a global network of 28 subsidiaries and around 50 international Sales Partners, allowing it to serve its customers on location in more than 150 countries. Messe Frankfurt events take place at more than 30 locations around the globe. In 2013, Messe Frankfurt organised a total of 113 trade fairs, of which more than half took place outside Germany. Comprising an area of 578,000 square metres, Messe Frankfurt s exhibition grounds are home to 10 exhibition halls. The company also operates two congress centres. The company is publicly owned, with the City of Frankfurt holding 60 percent and the State of Hesse 40 percent. For more information, please visit our website at www.messefrankfurt.com.