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Tra presentation for chase 2014
- 1. Used Textiles as a Revenue Stream Alan Wheeler – Director – Textile Recycling Association
- 2. Used Textiles as a Revenue Stream. About the Textile Recycling Association • Established 1913. • Trade Association for collectors, graders and exporters of used clothing and textiles. • Membership includes both charities and businesses.. • TRA Code of Practice – Launched 2012. www.textile-recycling.org.uk
- 3. Used Textiles as a Revenue Stream. The value of used clothing. Source – Lets Recycle.com (quoted mid price values) www.textile-recycling.org.uk
- 4. Used Textiles as a Revenue Stream. Used clothing collection rates in the UK. Source: Oakdene Hollins and Charity Retail Association. www.textile-recycling.org.uk
- 5. Used Textiles as a Revenue Stream Causal factors of the rise in value. • 2004 – EU Expansion – 10 new countries joined. • Temporary restrictions on migration strict in other countries. • UK – established industry. • British clothing considered to be “the best”. • Government promotion of recycling. • Specific promotion of textile recycling following Waste Strategy for England 2007. www.textile-recycling.org.uk
- 6. But what has happened since 2013 Value of used clothing from Jan 2013 Source – Lets Recycle.com (quoted mid price values) and TRA www.textile-recycling.org.uk
- 7. Used Textiles as a Revenue Stream Causal Factors of price drop. • Warm European Winter • Expected influx of more winter wear from charity shops – problem expected to deepen. • Decline in quality – driven down by proliferation of competition. • Charity shops – eking more value out of donations by rotating unsold stock. • New clothing producers struggling to shift their items • • Resulting in pressure to reduce costs – quality suffers. Strong Pound, has made UK exports of used clothing more expensive. • Ghana – currency 29% lower than 1st Jan 2013 • Kenya – currency 20% lower than March 2013. • Demand from Eastern Europe under constant pressure from rising standards of living. • 16% of TRA members went out of business in 2013. www.textile-recycling.org.uk
- 8. Used Textiles as a Revenue Stream Consequences. • Values across all grades have declined since the start of 2014. • Charity shops reporting that some collectors are only taking higher value goods. • Collectors are reducing the size of their collection areas. • We are likely to see a decline in the number of Cash for Clothing operations. • We will hopefully see a decline in theft of clothing. www.textile-recycling.org.uk
- 9. Used Textiles as a Revenue Stream Solutions/The way forward. • Stay with collector if they continue to provide a competitive service. • Ensure regular payments. • If collector is only taking higher value items – ask for a price renegotiation. • Consider teaming up with other charities in your area. • Contact the TRA to find a collector. www.textile-recycling.org.uk
- 10. Thank you for listening For more information, contact us at: 0845 600 8276 info@textile-recycling.org.uk www.textile-recycling.org.uk 2 Old College Court, 29 Priory Street, Ware, Hertfordshire, SG12 0DE
Hinweis der Redaktion
- Thank you for attendingImportant subject of textiles (or rather clothing) as a revenue stream.Early 2013 market was somewhat different to where it is now.Set the context of how the market got to where it did.What has happened recently.Why it has happened.The way forward/possible solutions.Q&A at end of session.
- 2003 – 2005Values stayed at around £100/tonne. - Small peaks and small troughs around 18 months apart. Most times the peaks were slightly higher.2005 – onwards the value of used clothing rose relentlessly and despite our continual advice to our members customers to exercise caution and always allow for a price drop, people began to be complacent.Charities assuming that values would rise when budget planning.Something happened at around the time the upward movement started that changed the market completely – go into that in a little bit.
- At the same time values going up – collection rates have gone up.Here we can see estimated collection rates through all collections and through charity shops.
- 2004 – EU Expansion Countries which joined the EU were :Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. Temporary restrictions on migration strict in other countries.Most of the other EU 15 members put in tight transitional arrangements to restrict migration from these new member states for the purposes of work. The UK, Sweden and Ireland did not. The result was that not only did EU expansion open up the important markets in Poland and Lithuania (with onward sales into former Soviet Union countries (Russia and Ukraine in particular), but competition shot up virtually overnight.The UK in particular was an attractive destination for business people (and migrant workers) from these new member states as it was the only large EU member country to which they could go.UK established industry and British Clothing considered to be “the best”.Long established textile industry and charity shop sector (First Oxfam shop 1948)African market established in 1980s and UK started exporting to Eastern Europe in 1990s. British clothing “more fashionable” and better quality. Strong colonial links make “British fashion” more desirable.Government promotion of recycling. – 12% - 2001, 39% - 2010, 2013 – 44%Waste Strategy for England i.d. textiles as a priority. Particularly siting its carbon benefits. 2008 – DEFRA held the inaugural meeting of the Sustainable Clothing Roadmap.
- Quality driven down by proliferation of competition.Competition flourished during good times. Cash for clothing stores creaming off the better items.Charity Shops Eking out ValueFollowing economic crash of 2008, charity shops saw a drop in their donations as well as a fall in quality. Rotating more unsold stock between their stores before selling items on as charity shop grade. This resulted in a continual decline in the quality of clothing from this route, whilst prices that collectors had to pay were still going up. More recently charity shops have reported increases in direct donations again. This is a good thing.New Clothing producersChinese clothing producers are struggling to shift their items, putting downward pressure on their prices and quality. This has resulted in a double whammy, with new Chinese clothing competing with used clothing for buyers, and when this clothing has been used by its initial buyer, its quality is inferior.Strong PoundCurrency fluctuations are also proving to be a major headache. The positive outlook for the wider UK economy has resulted in a strengthening of the Pound, making our goods more expensive to export. Ghana is an important market and its currency has declined by around 29% against the Pound in the last year, whereas Kenya’s currency has declined by around 20%. Importers cannot simply afford UK clothing for the quality they are getting and are looking to other countries where exchange rates are more favourable.Demand from Eastern Europe is also under constant pressure from general improvements in living standards. Many businesses that use to just sell straight onto Eastern European retailers are now sorting there and exporting goods onwards to Africa. This is resulting in a larger global supply of flocking, wipers and jumpers, and a lowering of values for these grades.
- Quality driven down by proliferation of competition.Competition flourished during good times. Cash for clothing stores creaming off the better items.Charity Shops Eking out ValueFollowing economic crash of 2008, charity shops saw a drop in their donations as well as a fall in quality. Rotating more unsold stock between their stores before selling items on as charity shop grade. This resulted in a continual decline in the quality of clothing from this route, whilst prices that collectors had to pay were still going up. More recently charity shops have reported increases in direct donations again. This is a good thing.New Clothing producersChinese clothing producers are struggling to shift their items, putting downward pressure on their prices and quality. This has resulted in a double whammy, with new Chinese clothing competing with used clothing for buyers, and when this clothing has been used by its initial buyer, its quality is inferior.Strong PoundCurrency fluctuations are also proving to be a major headache. The positive outlook for the wider UK economy has resulted in a strengthening of the Pound, making our goods more expensive to export. Ghana is an important market and its currency has declined by around 29% against the Pound in the last year, whereas Kenya’s currency has declined by around 20%. Importers cannot simply afford UK clothing for the quality they are getting and are looking to other countries where exchange rates are more favourable.Demand from Eastern Europe is also under constant pressure from general improvements in living standards. Many businesses that use to just sell straight onto Eastern European retailers are now sorting there and exporting goods onwards to Africa. This is resulting in a larger global supply of flocking, wipers and jumpers, and a lowering of values for these grades.
- Quality driven down by proliferation of competition.Competition flourished during good times. Cash for clothing stores creaming off the better items.Charity Shops Eking out ValueFollowing economic crash of 2008, charity shops saw a drop in their donations as well as a fall in quality. Rotating more unsold stock between their stores before selling items on as charity shop grade. This resulted in a continual decline in the quality of clothing from this route, whilst prices that collectors had to pay were still going up. More recently charity shops have reported increases in direct donations again. This is a good thing.New Clothing producersChinese clothing producers are struggling to shift their items, putting downward pressure on their prices and quality. This has resulted in a double whammy, with new Chinese clothing competing with used clothing for buyers, and when this clothing has been used by its initial buyer, its quality is inferior.Strong PoundCurrency fluctuations are also proving to be a major headache. The positive outlook for the wider UK economy has resulted in a strengthening of the Pound, making our goods more expensive to export. Ghana is an important market and its currency has declined by around 29% against the Pound in the last year, whereas Kenya’s currency has declined by around 20%. Importers cannot simply afford UK clothing for the quality they are getting and are looking to other countries where exchange rates are more favourable.Demand from Eastern Europe is also under constant pressure from general improvements in living standards. Many businesses that use to just sell straight onto Eastern European retailers are now sorting there and exporting goods onwards to Africa. This is resulting in a larger global supply of flocking, wipers and jumpers, and a lowering of values for these grades.