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Pakistan's Textile Industry Faces More Power Cuts
EU To Reduce Hidden Trade Barriers
Indian Government Maintains Cotton Export Plans
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November 15, 2010
The McPete Sez Lingerie Newsletter & Women's
Pakistan's Textile Industry
Faces More Power Cuts
Textile and clothing plants in Pakistan will face gas cuts for at least two days a week during the winter season,
starting from November 15 until March 2011.
Under the government's Gas Load Management Program, textile plants have been advised to make alternative power
arrangements to avoid closures during the winter. The scheme has been in operation every winter since 2005, with
the gas supply cut to different economic sectors on alternate days.
However, gas outages may be even more severe this winter as gas reserves have been depleting while consumption has
risen by around 10% every year.
Gohar Ejaz, chairman of the All Pakistan Textile Mills Association (APTMA), said the textile and clothing industry
suffers production losses of PKR1bn a month due to the cuts. He is calling on the government to make sure gas is
available to the industry on a priority basis.
Over 70% of Pakistan's textile industry in the northern part of the country runs on self-generated electricity from
gas-based power systems.
EU To Reduce Hidden Trade
The European Union (EU) plans to step up efforts to remove
non-tariff measures that impede the flow of global commerce, trade commissioner Karel De Gucht said this week
when presenting a new trade strategy blueprint for the 27-member bloc.
While cutting tariffs is still important, De Gucht said the majority of barriers now lie elsewhere.
Part of the challenge in enhancing market access, he said, lies in overcoming non-tariff measures and ensuring better
protection for intellectual property rights.
The blueprint, 'Trade, Growth and World affairs,' says costs faced by European exporters of textiles and apparel
to the US because of non-tariff measures were equivalent to a tariff of 16.7%. And the cost for American exporters
to the EU were equivalent to a tariff of 19.2%.
Non-tariff measures that hinder textiles and apparel trade flows include diverging technical standards, including
differences over measuring and testing of products, rules of origin, labeling, and environmental
The new EU policy puts a premium on opening new markets for EU exporters in major emerging countries such as China,
India, Brazil and Russia, and also on pursuing robust trade defense measures against unfair trade actions.
"The tectonic plates of global commerce are moving," De Gucht said in Brussels on Tuesday (9 November), adding:
"The challenges - as well as the opportunities - from globalization are greater than ever before."
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Indian Government Maintains
Cotton Export Plans
The Indian government is standing by its plans to ship 5.5m bales of cotton in the 2010/11 season, shrugging off calls
from domestic industry players who wanted to see a continuing ban on raw cotton exports.
According to the Minister of State for Textiles, Panabaaka Lakshmi, various textile associations and industries have
demanded a delay in export contracts. Among the suggestions, he said, were calls for a delay in export
contracts up to January 2011, staggering of shipments through a monthly cap, and the withdrawal of a 1.5% export
Indian cotton shipments resumed last week, nearly seven months after the country - the world's second-biggest
producer and exporter of cotton - introduced a ban on raw cotton exports in an attempt to halt soaring price hikes
The online process for registering cotton exports was suspended last month after a rush of applications meant it
reached its pre-set quotas just ten days after bookings began. The online registration facility may resume if
exportable surplus quantity becomes available.
Italy to Host ITMA in 2015
Italy will host the 17th edition of ITMA, the world’s
largest textile machinery exhibition, after beating off 12 other contenders during a selection process that took more
than a year.
The event will now return to Milan for the first time in 20 years, and will be held at the Fiera Milano Rho exhibition
center from November 12-19, 2015.
ITMA is held every four years in a different country.
Preparations for the next ITMA event in Barcelona (September 22-29, 2011) are already well underway, with over 1,000
exhibitors applying for space. Organizers say it is on course to achieve its target size of 100,000 square
The ITMA show is owned by Cematex, the umbrella association for the textile machinery manufacturers of nine European
countries: Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland and the UK.
In addition to the European event, Cematex also holds an ITMA show in Asia, currently in China every two years. The
next ITMA ASIA + CITME is due to take place in June 2012
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Indorama Ventures to
Purchase Invista Polyesters
Thailand's Indorama Ventures Public Company Limited, one of the world's leading producers of polyester yarns and
fibers, is to buy Invista's polyester resins and polyester staple units in the US and Mexico for US$420m.
The Bangkok-based company said the move not only builds on its expanding global platform, but also boosts its
footprint in new higher growth markets of Central and Latin America. It will also make the firm the world's largest
producer of the plastic polyethylene terephthalate (PET).
The deal covers Invista's polyester resins and polyester staple units at Spartanburg, South Carolina, and its Latin
American business Grupo Arteva S de RL de CV in Queretaro, Mexico.
Invista mainly makes polymers and fibers for nylon, spandex and polyester applications. The Spartanburg site is located
on 640 acres and produces PET, specialty polymers, fibers and film with end uses including bottles and other
custom-container applications, as well as fibers and specialty polymers for a variety of applications. Its total
capacity is 470,000 tons per annum.
The Querétaro site is located on 90 acres in Central Mexico and also produces PET, specialty polymers and
fibers. Its capacity is 535,000 tons per annum.
The transaction is due to close during the first quarter of 2011.
September Retail Sales Review
Abercrombie & Fitch reported net sales of $305.3m for the five-week period, a 25% increase from net sales of $244.0m for the five-week period ended October
3, 2009. September same-store sales increased 13%.
Aeropostale announced that total net sales for the five-week period ended October
2, increased 9% to $204.2m. The company's same-store sales increased 3% for the month, compared to a same-store sales increase of 19% in the year ago period.
American Eagle Outfitters announced that total sales for the five weeks increased 4% to $251m. Same-store sales increased 4%, compared to flat for the same period last year.
The Cato Corporation reported sales of $72.1m for the month, a 3% increase. Same-store sales for the five-week period increased 2% over the prior year.
Dillard’s announced that merchandise sales for the five weeks ended October
2 were $532.3m, compared to sales of $519.3m in September last year. Total sales increased 3%. Sales in comparable stores increased 3% for the five weeks.
Gap Inc reported net sales of $1.34bn for the month, which was an increase of 1% compared with the five-week period ended October
3, 2009. The company’s comparable store sales for September 2010 decreased 2% compared with a 1% decrease in September 2009.
JC Penney said that its same-store sales increased 5.1% for the five-week period ended
October 2, while sales in September increased 2.9%.
Kohl’s Corporation reported that total sales for the five-week month ended
October 2, increased 5.3%. On a same-store basis, September sales increased 3.0%.
Limited Brands has reported a comparable store sales increase of 12% for the five weeks ended
October 2. The company reported net sales of $735.8m for the period, compared to net sales of $654.8m in September last year.
Macy’s reported total sales of $2.183bn for the five weeks ended
October 2, an increase of 6.9%. On a same-store basis, Macy’s sales were up 4.8% in September.
Neiman Marcus posted net sales of $371m for September, up 4.9%, with same-store sales increasing 4.7%.
Ross Stores reported that sales for the five weeks ended October
2, increased 6% to $666m. Same-store sales for the month rose 2% on top of an 8% gain in the prior year.
Saks Incorporated announced that owned sales totaled $256.4m for the five weeks ended
October 2, compared to $242.2m in the prior year, a 5.9% increase. Comparable store sales increased 6.5% for the month.
Stein Mart reported a same-store sales increased of 0.4% for the five week period ended
October 2. Total sales for the period were $101.4m, a decrease of 0.6%.
The TJX Companies said that sales for the five-week period ended October
2, were $2.1bn, up 6%. Same-store sales increased 1% compared to last year for the month.
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