FROM THE EDITOR-IN-CHIEF’s DESK… Not only are the garment exports from Bangladesh and India complementary to each other, which I have been repeatedly emphasizing on, but now even the political concerns complement each other… The recent terrorist attacks and meddling in internal affairs of Bangladesh by ‘external’ forces is a sure sign of common interest among Bangladesh and India, which has for long suffered these interferences! The latest condemnations of the Uri attack by Bangladesh and call for SAARC boycott also serve a common interest, with both countries united in fighting a battle against terrorism… The objectives are clear and the agenda common. In reality SAARC does not even serve the basic purpose for which it was formed in the view of the fact that Bangladesh has bilateral agreements with India on many areas. It is also a party in Bangladesh, Bhutan, India, Nepal (BBIN) Initiative, which is a sub-regional architecture of countries in South Asia…, and in fact most of the countries in the gambit of SAARC. The signing of the historic Motor Vehicle Agreement (BBIN-MVA) which encapsulates the spirit of economic integration will lead to free flow of trade between the BBIN countries. India had earlier proposed a SAARC Motor Vehicle Agreement, but due to objections from Pakistan, an agreement could not be reached. Instead a similar motor vehicle agreement with the BBIN has come through, which enables vehicles to enter any of the four nations without the need for trans-shipment of goods from one country’s truck to another at the border. Also, the Bay of Bengal Initiative for Multi-Sectorial Technical and Economic Cooperation (BIMSTEC) that talks about ease of trade in goods and services between Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand is in the final negotiation stage. With buyers increasingly looking at the region as one sourcing hub, these agreements will only fasten the integration of trade and to the mutual benefit of all. Already many head offices of buyers are either in Bangladesh or India with the other country being a part of the sourcing operation. Buyers plan their visit to this part of the world with a clear agenda to cover the region as a whole and not just one country…; even the trade between the two countries is towards positive growth! Cooperation and not alienation, is the way forward and I think both Bangladesh and India are moving in the right direction!
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Preview D e n i m s a n d j e a n s . c o m B a n g l a d e s h
6th edition: Vintage to Rule the Roost! What goes around comes around… The sixth edition of Denimsandjeans.com Bangladesh (to be held on October 5-6 at Hotel Radisson, Dhaka) with the theme – ‘VINTAGE RECALL – Denim Goes Back To Its Roots’, is a perfect testimony of the same! Lately, there is a strong inclination towards revisiting the past which has numerous brands and manufacturers look for denim characteristics which the jeans had in early 1900s, be it in terms of colour, looks, weave or even the slubs. Whilst there is a thirst for performance denims, with technical finishes or extra stretch and comfort, there is also a yearning for more authentic vintage denims, in look, weight and colour. Customers are asking for more defined twills with less flat appearance and fabrics with more characters in the warp…, is what Vicunha Textil, one of the oldest and well-known names in denim fabrics, has to maintain about vintage denim. Vicunha’s observation is echoed by Denim Tekstil of Turkey. “Denim fashion is returning to the roots. It has become very trendy to have vintage character like the 1970s blue and marble looks as such we have developed various products including different variations of blues to get in the flavour of vintage…,” the Turkish denim fabric giant underlined. However, Bangladesh-based Jamuna Denims Limited is not very sure if vintage is the flavour of the season. “There is no clear indication as such. We would have to wait further to get to know the actual trend…,” the Bangladesh denim fabric manufacturer maintained. Notwithstanding the contradictions, there is no denying the fact that the industry is increasingly looking at possibilities of giving the vintage character, which VINTAGE RECALL is all about! On the eve of the denim extravaganza waiting to unfold in Dhaka, Apparel Online Bangladesh interacted with the participants to get a lowdown on products & innovations (in design and developments) to look out for, as well their strengths that would benefit the clients.
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PRODUCTS TO WATCH OUT FOR Anubha Industries: New shades, special finishes and new weaves, suitable for the vintage theme.
Archroma: Set of new brilliant blues – Ocean Blues (Diresul Pacific, Arctic and Caribbean) along with Earthcolor Denim (Earthcolors are dyestuffs synthesised from redundant biomass).
Denim Tekstil: To present 80% stretch with very low growth, 4-way stretch for maximum comfort and selvedge denim range both in rigid and stretch.
Ha Meem: Differentiated products to enhance wearing comfort and experience like power stretch fabrics (50% & above stretch percentage) in 7.5 to 8 oz category made out of blends like cotton/polyester/modal, which forms the core of Ha Meem’s product pallet. In women’s category, the company is offering soft twist yarns, dual FX, T 400, Siro, etc., while novelty concepts like stay dark, cross hatch, rugged denim, overdyed in super stretches would be pitched for the men’s category.
Jamuna: Products in various washes, both in dry and wet processes.
Malwa: Products with vintage character in terms of the construction and also couple of new
shades in line with the authentic and vintage denim.
Offtcina: RECYCROM (colours to dye recycling 100% textile waste), REMOVER IND/J (substitute of Potassium Permanganate) and NOVAPRET NFC/LT (low temperature bleachable resin).
Prosperity Textile: Bio-Stretch with 30%+ renewably sourced materials and 20% better recovery, C-Blend with multi-fibre blended technology to deliver ultra-soft hand feel (50% softer than 100% cotton) and seal denim comprising overdyed finishing to get a more saturated colour from black-on-black to blueon-blue.
Reliance: Recron® GreenGold (One of the world’s most eco-friendly fibres with one of the lowest carbon footprints), Recron® EcoD (brand of pre-coloured fibres that removes the need for further dyeing downstream and currently available in around 50 shades), Recron®FeelFresh (Inherent anti-microbial fibres for denims that one can wear for extended periods of time without worrying about bad odour) and Recron®Kooltex (Moisture wicking for enhance comfort).
Siddiqsons: Sustenance (this theme/story presents eco-friendly denims with authentic denim looks and includes one of Siddiqsons’ favourite fabrics that uses hemp to be more sustainable), Femme (this theme is all about femininity
and sensuality and the company’s favourite product under this theme is the delicate lycra-beauty, skinny decorated with lace flowers); and lastly, Space Explorer (performance and thermo cool fibres).
Soorty: Various colours and innovations in performance and sustainability.
Xin Gao: Bi-conjugate stretch filaments, i.e. CM800. CM800 conjugate filament is extruded from two polymers with a differential viscosity. When heat is applied to the yarn, the result is a spring like structure. It is available in white, semi dull and dope dyed shades.
Vicunha: ILLIMANI (wide width 170 cm/100% cotton in 14 oz. This is a real authentic heavy weight high ridge twill with a soft handle making it a great option for ladies casual jackets), GROVER (wide width 170 cm/100% cotton in 10 oz – recycled cotton in glorious deep indigo with a ring in the warp which when washed gives great light and dark tones on a strong twill) and IGOR DARK (wide width 170 cm/100% cotton in 10 oz – recycled cotton available in wide width for improved consumption and is also competitively priced).
PRODUCT DEVELOPMENT, THE SOUL OF DENIM Anubha Industries: Asa new company we keep a fresh
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perspective in our product offering by having a wide array of collections. Looking at the trends and our forecasts we roll out with collections every month. Our PD team works very aggressively on innovation and creating sustainable products.
Jamuna: Our product development
Reliance: Our PD team comprises
team comprises of some well experienced personnel from home and abroad, the strength of which is the attitude and capability of these people.
people with complementary strengths in various downstream processes and combined knowledge base to effectively innovate and deploy new products in market.
Malwa: PD is the soul of any
Siddiqsons: Our PD team stems
to develop products and effects that combine innovation and sustainability as we understand that one cannot exist without the other. Price being a big factor, we think creativity, innovation and sustainability would gradually gain importance in the near future.
collection and our mill fully acknowledges the importance of the same. As such our PD team apart from its research on trends works very closely with the marketing team who are directly in touch with the key leaders in our apparel industry. We look at PD cost as an investment essential in today’s ever-evolving fashion industry.
Denim Tekstil: We have
Offtcina: We strongly believe in
developed very high stretch fabrics to achieve maximum comfort. We have also been working on different dobby styles and also since denim is returning to roots, we worked deeply on the vintage story.
R&D as fundamental key of our daily activity and strength. We’re investing in developing eco-sustainable products to provide designers the newest technologies possible in the fashion industry.
Ha Meem: A large portion of our
Prosperity Textile: Weregard
Archroma: We work exclusively
from Siddiqsons’ dedicated fabric and garment R&D and design department that follow the worldwide trends meticulously to come up with the best of developments.
Grandtex: The strength of our PD team is to challenge itself to continue coming up with new developments keeping with the trend and market demands.
Square Denims Limited (SDL): SDL puts a lot of emphasis R&D and as such has hired world-renowned technician from overseas alongside talented young professionals locally. In fact SDL is one amongst the handful mills of Bangladesh who depend on their own development rather than customerdriven development, a common practice in Bangladesh.
our PD team as the engine; the team is always looking for multiple possibilities of denim to make new and innovative products. Our strategy is to have some basic items as the quantity business, then we have pre-set budget for new developments, which is all about the right balance.
expenditure has been earmarked initiatives such as product differentiation, innovation and re-engineering, all of which act as business navigator at a time when denim has become an integral part of the fashion industry which works on 4 seasons in a year.
Vicunha: We have a very strong product development team because as a global entity we deliver the true global overview of the up and coming in trends.
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BIGGEST STRENGTH Anubha Industries: Our biggest
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abilities, and innovative &costcompetitive products have made our business sustainable.
local service and in-time delivery backed by our production sites in China, Bangladesh and Vietnam (to come up by end of 2017).
strength is to service our clients with the premium rope dyed fabric at the best price, at the right time. We offer one-stop solution for all fabric requirements with denim, linen, polyester and cotton shirting.
Jamuna: In-house backward and
Archroma: We focus completely
product development combined with efficient infrastructure and the team to convert ideas into bulk in the most efficient manner as per customer’s expectation and quality standards.
Siddiqsons: Our biggest strength
Vicunha: Over the years we have
Soorty: Vertical integration from raw fibres to finished garment and global presence are our biggest strengths.
today's market; most important point is to not only to make the right product, but ensure timely delivery so that we always keep ready stocks of our collection to give faster service to our business partners.
invested in sustainability and this allows us to remain competitive and consistent in an otherwise volatile market. We have invested so much that we are now the world’s largest individual consumer of BCI cotton and can boast of most magnificent recycling system in which we create NOWASTE!
Ha Meem: Highly committed
Offtcina: We strongly believe
on innovation and sustainability, but not as separated factors but as parts of the same development idea. Doing so, we intend to inspire the designers and product creators, providing them with new tools and a ‘thinking beyond’ perspective.
Denim Tekstil: We believe in
employer with sound financial stability and committed top management has made Ha Meem Denim grow consistently. Ease of availability of real time data from ERP, progressive business approach, efficient customer services, conflict management
forward linkages are our biggest strength; we’ve world class spinning capacity, garments and one of the best garments washing department.
Malwa: Extensive research &
in service and support to the customers as policy of our daily job while continuous Research and Developments on new process and technology is our mission.
Prosperity Textile: Great price and performance denim fabric to clients all around the world with our
Reliance: Through innovations at the raw material, we make it easier for denim manufacturers to create specialty denims through costeffective methods. lies in our people and our teams because we believe bringing together the right human resources shows in our products.
All the participants held high opinion about Denimsandjeans.com, which they feel contributed a lot in their growth and development. Such initiatives in Europe and USA have been promoting the industry since long. As far as Asia is concerned, Denim&jeans is doing a very good job in promoting the denim sector, underlined Soorty, while Ha Meem stated: “Such business promotional initiatives are essential as it creates conducive business environment and weaves a seamless fabric between manufacturers and the brands.
Bangladesh garment sector to get a new ‘inspection cell' In a bid to keep with the international safety standards and compliance norms, the Government of Bangladesh has decided to form a new cell – The Remediation Co-ordination Cell (RCC), which will monitor the working of garment factories in the country. The Department of Inspection for Factories and Establishments (DIFE) proposed the Ministry of Labour and Employment to set up a separate cell that can take the responsibility of maintaining garment sector’s standard as Accord and Alliance will not be effective from 2018. Diplomats of the major RMG importing countries have also been advocating for the
establishment of a separate cell so that safety and security in the garment factories are ensured in future as well. The newRemediation Co-ordination Cell will come into effect from 2018 to look after the status and development of the country’s RMG sector, as per industry sources. The Inspector General of the DIFE will be the cell’s head. The Accord and Alliance have been working on improving factory standards and safety in the garment sector of Bangladesh since the Rana Plaza incident in 2013 in collaboration with the Government and International Organisation (ILO).
Almost all garment factories paid Eid bonus: BGMEA Almost all the readymade garment factories in Bangladesh paidwages and festival bonus to workers ahead of Eid-ul-Azha barring a few, maintained the apex garment manufacturers body, Bangladesh Garment Manufacturers and Exporters Association(BGMEA).
Earlier, the garment traders’ body identified around 529 readymade garment units which it felt were likely to encounter problems in paying the wages and bonus. “Of these factories, only 21were identified as risky (regarding wage and bonus payments),”
told Vice President of BGMEA Mahmud Hasan Khan Babu to a Bangladesh daily. As to bonus, Babu maintained that that 95 per cent of the garment owners paidwages. “Around all the factories paid bonus while over 80 percent
Barring a few all the readymade garment factories in Bangladesh paid wages and festival bonus to workers ahead of Eid-ul-Azha.
gave wages,” added President of Bangladesh National Garment Workers Employees League, Sirajul IslamRony. Meanwhile, in a separate development, BGMEA expressed its deep shock at the loss of lives in a boiler blast at a Gazipur-based packaging factory, recently. Addressing a press conference in Dhaka, President of BGMEA Siddiqur Rahman sought all necessary steps to stop recurrence of any such accident and prayed for early recovery of the injured while seeking peace and salvation for the departed souls. It may be mentioned here that at least 21 workers were killed and 74 injured in a boiler explosion at Tampaco Foils factory inTongi BISIC industrial area of Gazipur.
Remi Holdings' new unit in Bangladesh gets LEED Platinum certification Bangladesh-based garment manufacturing company Remi Holdings Ltd., a part of Bitopi Group, has received LEED Platinum certification from the US Green Building Council (USGBC) for its environmentallysound production processes. Miran Ali, MD – Bitopi Group proudly announced, “With the production capacity of 15,000 pieces per day and workforce of around 1,500, Remi Holdings Ltd. has received LEED Platinum Certificate with highest score – 97 out of 110.” He further said that the Group has invested around US $ 20 million in establishing the woven garments unit, which was recently inaugurated by Tofail Ahmed, Commerce Minister of Bangladesh, at Adamjee Export Processing Zone (EPZ). Observing the overall activities of this factory, especially workplace safety measures, facilities for workers like medical services,
day care centre and international standard green initiative, the US Ambassador to Bangladesh, Marcia Bernicat termed EPZs as role model for others during the inauguration ceremony of the unit.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Senior Vice President Faruque Hassan; Bangladesh Export Processing Zones Authority
(BEPZA) Executive Chairman and Major General Md Habibur Rahman Khan; Reza Ali, Chairman and Miran Ali, MD – Bitopi Group, among others attended the inaugural ceremony.
Conference on healthcare awareness held! A conference focusing on the healthcare of the garment workers – ‘International Conference On Healthcare Delivery System For The Garment Factory Workers: Challenges And Solutions’ recently took place in Dhaka, Bangladesh. The conference was organised by Brown University Global Health Initiative, USA and Child Health Awareness Foundation, Bangladesh. State Minister for Women and Children Affairs Meher Afroz Chumki was present on the occasion as the Chief Guest.
The main objective behind organising such a conference was to bring all the stakeholders in the RMG sector under one roof to discuss the healthcare scenario of the RMG workers of Bangladesh and seek cooperation and partnership in providing improved healthcare services to them. Participants at the conference stressed on the need to strengthen healthcare facilities and spread awareness to reduce risk of diseases while stating that the women workers in many cases were unwilling to go for healthcare
services, which at times impacts their work.
The main objective behind organising such a conference was to bring all the stakeholders in the RMG sector under one roof to discuss the healthcare scenario.
Also, suggestions were made at the conference to provide affordable access to healthcare facilities to garment factory workers. It may be mentioned here that there are nearly 5,500 garment factories with around 4 million workers in Bangladesh where 70 per cent of the workers are women of reproductive-age. Thus it becomes significant for the industry to provide proper information on health, nutrition and hygiene to the workers.
Adidas to set-up footwear production site in USA Adidas, designer and manufacturer of sports shoes, clothing and accessories, has announced its plans to set up a new footwear production site in Atlanta, USA by next year. The unit will be equipped with industry-defining, state-of-theart facilities. Named the ‘Adidas SPEEDFACTORY’, the facility will allow Adidas to create products more quickly and closer to the US consumers, a major concern between retailers in the current scenario. The US facility will allow the sportswear retailer to source and produce locally, limiting long shipping distances and driving the brand’s commitment to sustainability.
The first-of-its-kind business model advances Adidas’ consumer-centric approach to product creation, thus allowing the brand to decentralize production and react faster to consumer needs. Equipped with cutting-edge manufacturing technologies, the US factory enables the company to create products in increasingly high volumes with advanced complexity in colour, materials and sizes. “For years our industry has been playing by the same rules manufacturing product remotely in Asia. As the creator brand that challenges convention and looks to co-create the future with our consumers, we are obsessed with bringing all steps of the creation
process home to America. We’re fuelling design at the ground level of creativity in Brooklyn and reinventing manufacturing with the first Adidas SPEEDFACTORY in Atlanta. This allows us to make the product for the
consumer, involving their input in the process and unleash unparalleled creativity and endless opportunities for customization in America,” elaborated Eric Liedtke, Executive Board Member, Adidas Group.
TARGET to open 9 more ‘flex-format' stores this year Brian Cornell, Corp. Chief Executive Officer at Target believes, “Smaller forms are the answer to cement TARGET’s foothold amidst an ever-growing competitive retail market. Opening hundreds of smaller “flex-format” stores could
be a major part of the retailer’s future growth.” TARGET, second-largest discount retailer in the United States, is planning to add nine more small stores this year and at least 16 by next year with 23
smaller stores already operating in major cities like Chicago and Philadelphia. The 50,000 sq. feet or less stores have enabled TARGET to establish locations into downtown areas where a big-box footprint isn’t possible. These
TARGET is planning to add nine more small stores this year and at least 16 by next year...
specific formats could also work as potential pick-up points for the company’s e-commerce business furthering its presence in that growing sector as well. The stores do not have the same product selection as a typical TARGET store and are moretargeted at the demographics of a specific market. “The retailer’s store in New York’s Tribeca neighbourhood will have a focus on baby and kids merchandise to meet the needs ofthe area’s plentiful family population,” elaboratesCornell. It may be noted that Walmart Stores Inc. had already abandoned the strategy of opening smaller stores earlier this year and instead opted to focus on its supercentres and grocery-store-sized neighbourhood markets.
Tailored Brands' net sales down 1.1% in Q2 FY '16 Tailored Brands Inc., leading specialty retailer of men’s suits, has announced financial results for the second quarter and six months ended July 30, 2016. The company’s total net sales decreased 1.1 per cent to US $ 909.7 million. Also, its retail segment’s net sales plunged 3.4 per cent. In the reporting period, total gross margin dropped 2 per cent, due to decrease in retail segment net sales amounting to US $ 410.3 million. Operating income (on GAAP basis)
Next Plc unveils its interim report for FY '16
for the second quarter stood at US $ 59.6 million as against US $ 98.1 million in the corresponding period last year. For the six-month period, Tailored Brands’ net sales declined 3.7 per cent to US $ 1,738.5 million compared to US $ 1,805.1 million in the first half of 2015. Retail segment’s net sales decreased by 5.2 per cent. The company’s operating income (on GAAP basis) for the reporting period totalled US $ 90.6 million compared to operating income of US $ 153.4 million last year.
ZARA now in Vietnam Fashion retailer ZARA’s parent company – Inditex – has opened first ZARA store in Vietnam. The brand is considered to be the most successful among all Inditex’s labels and therefore the first preference of the company to enter any new market. Constructed keeping in mind the sustainability aspect and Inditex’s ‘eco-efficient store concept’, the debut store offers modish assortments of womenswear, menswear, basic apparels, and kidswear. These eco-efficient stores run on 50 per cent less water consumption and 30 per cent less
energy usage than the other regular stores, the company claims. The concept of eco-efficiency is one of the most ambitious plans of Inditex towards sustainability commitment. 54 per cent (3,778) of theretailer’s stores across the world are reportedly ‘eco-efficient stores’. The company is now aiming to turn all its stores into eco-efficient ones by2020. It may be mentioned here that Inditex has been named the most sustainable company in the retailing industry by the Dow Jones Sustainability Index, having scored 80 out of 100 points this year.
Next Plc, UK-based multinational clothing, footwear and home products retailer, has recently announced its financial results for first half of the current fiscal year ended July 30, 2016. The company mentions in its interim report that its revenue stood at Euro 1939.7 million as against Euro 1890.5 million in the corresponding period last year. In the reporting period, gross profit however dropped from Euro 644.5 million last year to Euro 632.2 million in the current fiscal. Operating profit of the brand stood at Euro 360.5 million compared to Euro 362.0 million. In the course of next 12 months, the apparel brand plans to deliver a catalogue browsing mode with enhanced account management, order tracking and improved payment functionality along with addition of new products range such as sofas, furniture and flowers on mobile website. Also, the company projects to add net trading space between 2,50,000 and 3,00,000 sq. feet per annum during 2017 and 2018. Founded in 1864, Next Plc has its presence worldwide in UK, Ireland, continental Europe, Asia and the Middle East with around 700 stores, of which 502 are in the United Kingdom and Ireland.
Kering bags ‘Gender Equality European & International Standard' label Kering, the French luxury goods holding company, owner of luxury, sport and lifestyle brands, has been awarded the ‘Gender Equality European &International Standard (GEEIS)’ label, in recognition of its efforts to promote equality between women and men at work. The award was presented by Arborus Fund, the leading provider of funding support for gender equality at workplace in Europe and worldwide, and Bureau Veritas, a global company
engaged in testing, inspection and certification services. Content with the acknowledgement received, Béatrice Lazat, Senior Vice President – Human Resources, Kering averred, “Furthering equality between men and women is a top priority for Kering. This GEEIS certification shows us our efforts have paid off and been recognised. Beyond the label itself, which we are so delighted to hold, GEEIS enables us to identify areas in which we can continue to make progress.”
The award is aligned with Kering’s drive to promote gender equality within the Group which takes actions through Human Resources Policy
The award is aligned with Kering’s drive to promote gender equality within the Group which takes actions through Human Resources Policy, which aims to make the Group a benchmark employer for women; Kering Foundation, which combats violence against women; and films, particularly through the Women in Motion programme, which aims to support women in the film industry, giving their contribution greater visibility and raising awareness of the necessity for diversity in the sector.
Hermès' net income up 13% in H1 FY '16 The Hermès Group – French high fashion luxury goods manufacturer, has noted a rise of 13 per cent in its net income to Euro 545 million in the first half of Fiscal 2016. Its consolidated revenue surged 7 per cent at constant exchange rates to Euro 2,440 million. Operating income also zoomed 11 per cent to Euro 827 million compared to Euro 748 million in the corresponding period last year. In the reporting period, Hermès’ sales by region at the end of June rose in all the regions worldwide, with 10 per cent rise in Japan despite the strengthening of its currency Yen. Asia region excluding Japan witnessed 5 per cent increase and re-opening of the Liat Towers store in Singapore in May after extension and renovation. Continental China observed rise in sales despite the challenging scenarios in Hong Kong and Macao. The Group also posted 8 per cent rise in sales in America. Europe
also performed well with 8 per cent rise, impacting Hermès’ stores performance in the country. The ready-to-wear and accessories division of Hermès however registered a decline of 2 per cent in contrast to the success of the latest women’s ready-to-wear
and shoe collections. The silk and textiles business line plunged 7 per cent due to slowing sales in Greater China and America. Established in 1837, Hermès Group specializes in leather, lifestyle accessories, home furnishings, ready-to-wear, etc.
Kickstarter campaign to raise US $ 177,000 for Denim Project Recently, Denim Project that produces garments made from 98 per cent denim waste has launched a kickstarter campaign to raise US $ 177,000 by September. The amount raised will be utilised in buying machinery, source waste fabric and convert it into fibre so that it can later be converted into garments. This project aims to save around 183,000,000 litres of fresh water. “The purpose of my engagement in Denim Project has, from the start, been to change our production, to show how ‘easy’ it is to save water and the environment. My dream is to set a positive footstep within my
reach. I think that should be the goal for everyone. Especially the ones fortunate enough to have kids,” informs Jesper Kejser, FounderCEO, Denim Project. A great initiative to cut down textile waste, this campaign further focuses on sustainability as up to 15 per cent of fabric intended for clothing are wasted during the cuttingprocess. According to experts, thisestimated waste can provide every person on the planet three new T-shirts per year and contains enough water that could have supplied 25 million people annually, which equatesto 38.5 billion litres of fresh water. The Denim Project was founded to make
a change by creating garments by cutting waste, thereby becoming the most resource-neutral denim brand in the world. All those fabrics that are discarded by brands is sorted
out by colour, re-fibre and spun into yarns and then Denim Project adds 2 per cent stretch to the 98 per cent wasted fabric and designs a new brand line.
Currently, FTA has a membership of more than 1,800 businesses who are committed towards more sustainable trade and demonstrate trust in FTA, to prepare businesses for the challenges of the future. “With the proliferation of trade agreements and new sustainability
regulations, keeping on top of these important issues remains a continued challenge. FTA will help us maintain our knowledge base in the EU and ensure we stay ahead of the market as it evolves,” informs Rick Darling, Head of Government and Public Affairs at Li &Fung.
Li & Fung joins FTA Li &Fung, the global leader in consumer goods design, development, sourcing and logistics has recently joined the Foreign Trade Association (FTA) as its latest member. As part of the FTA’s sustainability services, Li &Fung has selected its international trade policy services
and has become a participant of the Business Social Compliance Initiative (BSCI). “Li &Fung is committed to responsible sourcing and to its engagement with BSCI, whose benefits include, social audits of the supply chain, training activities and dialogue with stakeholders,” revealed the FTA.
Cambodian garment workers' w age issue continues In its recent letter to Ith Sam Heng, Minister of Labour, Cambodia, Garment Manufacturer’s Association in Cambodia (GMAC) stated that workers in the garment and footwear industry should receive a minimum wage of US $ 144.20 a month. While the garment workers unions calculated the minimum wage keeping in mind the cost of living studies provided by Government data in making their demand for US $ 179.60, GMAC has pegged its proposal solely on the rate of inflation, which would not lead to an
increase in real wages. Additionally, a new report warns that further wage increases will be hard to achieve unless higher prices are paid by retailers andbrands. “Every year, GMAC offers a low figure and claims that the situation is getting worse,” commented Yang Sophorn, Cambodian Alliance of Trade Unions (CATU) and added that even if the factory closes, they always re-open it, and the minimum wage increases every year to ensure that workers can live. The US $ 144.20 proposed by GMAC represents a 3 per cent rise
Vietnam's minimum w age non-compliance rate lowest in Asia: ILO Report Vietnam’s rate of non-compliance, in terms of minimum wage, in the garment, textile and footwear sectors is the lowest among seven garment-exporting countries in Asia, at 6.6 per cent, according to a new report by the International Labor Organization (ILO). This rate is far better than the second lowest country on the list – Cambodia at 25.6 per cent, and almost nine times lower than the top-ranked violator – the Philippines, at 53.3 per cent. The rate of extreme noncompliance in Vietnam, which suggests wageworkers are paid less than four-fifths of the minimum wage in the country, is 3.8 per cent and moderate non-compliance – workers paid between 80 per cent and less than 100 per cent of the minimum wage, is 2.8 per cent. “The depth of non-compliance is an important dimension because a worker being paid 99 per cent of the minimum is in a very different
The minimum wage levels are decided annually by the National Wage Council that includes representatives of the Government, employers’ and workers’ organisations.
situation to one receiving only half of the minimum,” stated Matthew Cowgill, Chief Technical Adviser, ILO on labour standards in the global supply chain, who is the lead author of the report. According to the report, the design of minimum wage systems,
including the minimum wage rate and the complexity of the wage structure, are important considerations for improving compliance. Vietnam has four regional minimum wages, ranging from VND 2.4 to 3.5 million (US $ 108-157) a month.
While praising the compliance rate in Vietnam’s growing garment, textile and footwear sector, Chang-Hee Lee, Vietnam Director, ILO warned that data should be interpreted with caution as the data used in the study dates back to 2013, whereas minimum wage had significantly increased in the previous three years. New data is needed to see if the high compliance continues even with the significantly increased minimum wages, he elaborated. Vietnam’s regional minimum wages increased by about 12-15 per cent on a yearly basis between 2014 and 2016 and will go up by 7.3 per cent next year, reports a Vietnamese leading daily.
from the current minimum wage of US $ 140. The two proposals will serve as the beginning of the tripartite negotiations between the Government, labour unions and employer representatives to determine the wage for 2017. The minimum wage for Cambodia’s 6,30,000 workers has risen sharply in recent years, climbing 9.4 per cent over the past 12 months to the current US $ 140 a month and unions are firm on pushing for an increase of almost 30 per cent to US $ 180 a month for the year ahead.
Import duty exemption to benefit Indian garment exporters Indian Government’s decision to allow additional (duty) benefit on import of specialty man-made fabric will immensely help in increasing Indian exporters’ competitive edge against Bangladesh and Vietnam by offsetting around 2-3 per cent import duties in the Western markets. “India has been losing to competition from other nations like Bangladesh and Vietnam because of higher labour cost, absence of cluster manufacturing and inability to attract women workforce to reduce labour costs. These countries have started to pose a serious threat by banking on trade agreements and low manufacturing overheads, especially in the EU and the US,” said Ashok Rajani, Chairman, AEPC, which is organizing a nationwide drive to spread awareness about the new special
F&F Fashion to set up garment manufacturing unit in Nepal Bangladesh-based F&F Fashion has recently announced its plans to establish a large-scale garment factory in Nepal. With this venture, the company is targeting the export market in the US and Europe. On the contrary local apparel entrepreneurs in Nepal are still looking for various incentives from the Nepalese Government, citing low profit margin in the exports. Mohammad Mustafijur Rahman, Managing Director of F&F Fashion averred, “Our main aim is to set up a large-scale factory in outskirts of Kathmandu and the company is preparing to raise investment in Nepal to US $ 200,000 for the same,” adding, “Currently, we have been providing training to Nepalese workers from a Bangladeshi trainer and now we are looking for a land of
around 5,000 square feet to set up the factory.” With the investment of around US $ 50,000, the company is already running a small-scale manufacturing factory in Sorhakhutte and also has three outlets in the country. According to Mashfee Binte Shams, Ambassador of Bangladesh to Nepal, “FDI from Bangladesh will also transfer technology related to apparels in Nepal, helping the other entrepreneurs in the country to learn cost reduction so as to be competitive in the global market.” The Nepalese garment entrepreneurs believe that the dutyfree facility extended by the US in 66 Nepalese products, including some apparels and travel goods, could lure more FDI for the production of apparel products in thecountry.
advance authorization scheme announced by the Centre last month. It may be mentioned here that India’s readymade garments exports in the fiscal year 2015-16 reportedly stood at US $ 17.1 billion whereas Bangladesh’s garments exports were valued at US $ 28 billion in the same period. Indian garment exporters pay on an average an import duty of 5 per cent in the EU while Bangladesh pays ‘zero’ duty. The additional reimbursement in the form of the Special Advance Authorization scheme will help to bridge the gap. Additionally, Federation of Indian Export Organizations (FIEO) has pointed out that duty-free import is allowed only on ‘specialty’ man-made fabric and not on all man-made fabrics, thus the move will not hit the domestic industry.
India announces enhanced support under MEIS to boost export As the exporters of the country are struggling to grow, the Government of India has announced enhanced support under Merchandise Exports from India Scheme (MEIS) of theForeign Trade Policy. Department of Commerce has extended the support to certain new products and enhancedthe rate of incentives for some other specified products under the scheme. The same has been implemented from 22 September. Rate for products added to the MEIS schedule with immediate effect is between 2% and 5%. For most of the products it is 2%, like for plastic stickers for garments of polyurethane foam; for other articles of artificial fur, garments/made-ups/knitwear, etc. [as per ITC (HS) Code43040019] the rate is 3%. For garments of silk and other such products, the rate is 2%. Additionally, for articles of apparel and clothing accessories made from wild animals covered under Wild Life Protection Act, the rate is 3%. For silk carpets, etc. the rate is maximum i.e.5%. Introduced in April 2015, under this scheme exporters get duty-free scrip to import input goods, which go into the production of export items. With this, the total number of items covered under the scheme has been increased from 5,012 to 7,103. The total support extended by Government of India under the scheme has been enhanced from the present Rs. 22,000 crore to Rs. 23,500 crore perannum.
Thai garment exports likely to decrease by 7 per cent Thailand garment exports are expected to decline by about 7 per cent to US $ 2.55 billion in current year with more Thai manufacturers expanding investments in Cambodia and Vietnam over the past four years to take advantage of low production cost and tariff benefits, reportedly states Vallop Vitanakorn, an adviser to Thai Garment Manufacturers Association (TGMA). Vallop further added that Thailand garment exports will grow strongly from neighbouring countries (Cambodia and Vietnam in particular) but not from Thailand itself. However, the rise in exports will not be more than US $ 3.15 billion in the current year, reports a Thai news site. 33 Thai apparel manufacturers operating in Cambodia and Vietnam are likely to contribute about US $ 600 million in sales from overseas this year and it is projected that more garment
33 Thai apparel manufacturers operating in Cambodia and Vietnam are likely to contribute about US $ 600 million in sales from overseas this year...
enterprises would expand businesses to neighbouring countries, with Myanmar a potential option. However, it is assumed that Thai garment manufacturers would still keep their investments in Thailand because of the skilled labour availability in the country. It is expected that in 2017, income from investments in neighbouring countries will account for 40 per cent of the total garment exports from Thailand.
Chinese textile manufacturer opens new Knitwear Development Centre Zhejiang Xinao Textiles Inc. (Xinao), one of the leading worsted spinners of wool, producing machine knitting yarns for the sweater, outdoor, underwear and sock industry, has recently opened a new Knitwear Development Centre (KDC) adjacent to the company’s headquarters in China. The development centre was inaugurated by Wal Merriman, the Chairman of Australian Wool Innovations and The Woolmark Company, and Jianhua Shen, Chairman of Zhejiang Xinao Textiles Inc.
The centre comprises of three main sections – a Research and Development unit, a training and education department, and textile testing laboratories. While the R&D unit has laboratories and small scale processing machinery in order to conduct experimental trials, the training and education department has a 100-seater lecture theatre. Besides, the fully equipped textile testing laboratories will support the Research and Development unit. At the inaugural ceremony, Zhou Xiaotian, CEO of Xinao said, “Over the past
couple of decades, Xinao has been very successful and has grown tremendously, but now it has reached a junction in its progression. To move ahead and bring developments in the industry, we’ve decided to invest in Research and Development coupled with Training and Education to ensure that the success of Xinao will continue.” The centre is a result of close cooperation with The Woolmark Company, and other strategic partners, from the design, textile machinery, textile chemicals industries, textile universities and leading knitwear companies.
10th Dhaka International Yarn & Fabric Show ’16 evokes mixed response from exhibitors Aimed at encouraging the business community to play an important role in boosting the economy of Bangladesh further by assembling worldwide technology, machinery and raw materials at the doorsteps of the manufacturers, CEMS Global’s four-day 10th Dhaka International Yarn and Fabric Show 2016 was held in conjugation with the 17th Textech Bangladesh 2016 International Expo and 25th Dye and Chem Bangladesh 2016 Expo, from August 31 at International Convention City Bashundhara, Dhaka, which witnessed participation of 1,050 companies from 23 countries, including about 90 companies from India alone in all the sections.
he highlight of theaccessories section was the large-scale participation of Chinese accessories manufacturers represented by their Bangladeshi partners, which are looking at increasing their marketshares in Bangladesh. “What Bangladesh garment manufacturers seek are quality, competitive pricing and quick delivery time, and Chinese accessories manufacturers score very good in all these departments…,”maintained A.S.M. Jahangir (Jewel) – Managing Director of China-based Strenlasun, underlining that the response received at the fair was good overall. “However, I would like to add that compared to previous editions, spot orders have diminished,” said Jewel, citing price difference between various exhibitors as one of the probable reasons for the same. Md. Mohiuddin (Modhu), CEO of Jiashan Jiudi Button & Accessories Factory (anotherChinese entity), speaking to Apparel Online Bangladesh also expressed happiness at the response received while maintaining that local availability of accessories to improve the clients’lead time is leading more and more Chinese manufacturers to come up with own production units inBangladesh.
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A.S.M. Jahangir (Jewel), Managing Director, Strenlasun
Md. Mohiuddin (Modhu), CEO, Jiashan Jiudi Button & Accessories Factory
Alphan Guven of Kaan Endustri (L) with a colleague
Sunny Chia Ta, Sales Manager, Chroma Chemical Corporation
Madhavaraj M, Senior Manager, HarnessGroup
Alphan Guven representing chemical manufacturer Kaan Endustri from Turkey said the response received was ‘positive’. “We supply chemicals for denim washes; I am very happy at the response received so far,” quipped Guven while Sunny Chia Ta (Sales Manager) representing Taiwan-based Chroma Chemical Corporation maintained his company sees huge potentials in Bangladesh and as such was attending the exhibition to generate new leads and clients. “Chroma offers competitive prices as well as quality assurance. In Bangladesh our clients are mainly
dyeing houses, printing and washing units all of which require direct dyes,” averred Sunny, adding, “We are also planning to improve our markets in Thailand, Sri Lanka and India alongside Bangladesh, all of which hold very good prospects for us”. Madhavaraj M, Senior Manager at India-based Harness Group, which caters to the IT & software requirements of yarns, RMG, chemical as well as processing and leather industries, while interacting with Team AOB maintained, “Enquiries received from prospective clients was encouraging but the previous edition was more productive in terms of attracting customers… We have been able to generate leads this time too.” Madhavaraj made a special mention of JJ Mills, Bangladesh, which he says has been using Harness Group’s customized software since 2009 and with good results. NSL Textiles, a part of US $ 1 billion NSL Group from Hyderabad, India and a 2,80,000-spindle-strong company that offers a diverse range of yarns and fabrics, underlined that despite not many ‘serious’ customers visiting the event, NSL has been able to generate encouraging leads. However, NSL appeared not very content with the overall arrangement and marketing of the event, which it felt was a big reason behind many prospective clients giving it a miss. Abdullah, Senior Merchandiser with Charkha Textiles from Bangladesh, a part of Pran RSL Group, visiting the exhibition maintained that he was happy with what he got to see in terms of yarns, fabrics and accessories in various stalls before bidding a quick adieu to Team AOB to catch up with some Indian fabrics suppliers, attending the event.
Fiesta The high energy Fiesta is a harbinger of excitement, encouraging free-spirited exploration to unknown but welcoming locales that represent a bright orange shade that borderline on red. A strong and fiery, yellow-based red, the vivid Fiesta provides a stark contrast to the calming, softer nature of this season’s palette. Mugler offered a sensual off-the-shoulder dress with slits whereas, Tibi went for a casual yet striking look, using the shade only on the sweatshirt and styling it with wide-legged striped pants.
Buttercup Yellow While the majority of spring/ summer palette trends lean towards calmness, a few diversions from the theme emerge that offer a contrast. With Buttercup Yellow designers reveal a shining beacon transporting its wearer to a happier, sunnier place where they feel more alive. Rochas went for an out-and-out look with a sunflower coloured cut-out coat, on top of a yellow printed dress. Adam Lippes put the shade in focus with oversized yellow pants in satin, worn with a navy knit sweater.
TeakBrown A transitional colour that will take us through the seasons, Teak manifests as another strong neutral for the season. With its natural earthy quality, the softness and subtlety of this shade creates a stable foundation when combined with the rest of this season’s palette. Chanel presented a beautiful knit dress and matching sweater in the shade that made it give off a beach vibe while Red Valentino’s collection featured a leopard print satin skirt and a Teak coloured sweater on top.
Serenity Weightless and airy, like the expanse of the blue sky above us, Serenity comforts with a calming effect, bringing a feeling of respite even in turbulent times. A transcendent blue, Serenity provides us with a naturally connected sense of space. Thom Browne merged this soft shade with other pastels, like pink and mellow yellow on a patchwork shirt and long skirt. Jil Sander’s interpretation was more basic as she paired a billowy-sleeved peasant top and a knee-length skirt boasting of gathers on the waist.