FROM THE EDITOR-IN-CHIEF’s DESK… It is disheartening that the international community is looking at labour issues only from the perspective of labour unions. No one is openly acknowledging the massive reform movement which has gripped the garment industry since the unfortunate Rana Plaza incident. Which other country has agencies like Accord and Alliance monitoring their factories, and of course, more than 200 Green factories in the making!
No one is denying that there is room for improvement and labour issues need to be handled with clear understanding of what is best for the workers… But what the industry is really worried about is the role of labour unions in painting a negative picture of the ground realities at international forums. During a recent trip to Dhaka, Team AO came to know about several companies which are now moving beyond basic compliance norms to make their workers’ life more meaningful. Factories are putting in efforts, and money is being invested in all facilities to make the workplace a happy and comfortable space. Even workers at individual factories admit that things have really changed! Yet…
EDITORIAL TEAM EDITOR-IN-CHIEF
Deepak Mohindra
While improvements are happening rapidly, the ILO has again reminded Bangladesh to align the rules of union registration in the garment sector with its Convention 87 that addresses the matter of freedom of association by workers. The reminder comes in the wake of discussion that followed at the 106th International Labour Conference, the ILO’s annual convention held in Geneva between June 5 and16.
EDITOR
Ila Saxena
DEPUTY EDITOR
Deepankar Shyam
COPY EDITOR
Veereshwar Sobti
ASST. COPY EDITOR
Sahil Sehgal
CREATIVE TEAM
Raj Kumar Chahal Peeush Jauhari Satyapal Bisht
The ILO has also called upon the Government to ensure that the Bangladesh Labour Act, the Bangladesh Labour Rules and the EPZ Labour Act are all brought into conformity with the provisions of the convention regarding freedom of association. Showing its support to the ILO requirements, the European Union has asked for proof of tangible progress on labour rights to avoid temporarily losing the GSP benefit that allows the country duty-free export to the 28-nation economic bloc. Currently, 60 per cent of Bangladesh’s total garment export earnings in a year are coming from business with the EU.
PHOTO EDITOR
Himanshu Kumar
OPERATION DIRECTOR
Mayank Mohindra
PUBLISHER & MANAGING DIRECTOR
Renu Mohindra +919810058986, 01964874405 rmohindra@apparelresources.com
Initially the EU had set an August 2017 deadline for presenting the draft on revised Bangladesh Labour Act (BLA) and the Export Processing Zones (EPZ) law to the ILO Committee of Experts on Application of Conventions and Recommendation for its adoption before the International Labour Conference (ILC) to be held in June 2018. However, since the representatives of workers and owners to the Tripartite Technical Committee will be able to submit their proposals for the proposed amendment to the Labour Law to the ministry only by July 31, the Government has promised to produce the draft of the amended labour law and EPZ labour laws before an ILO committee by the end of this November. The responsiveness of the Bangladesh Government and the industry to follow international norms and ensure that no reason remains for loss of business is praiseworthy. An exclusive one-on-one with the BGMEA President, Md. Siddiqur Rahman, gives me confidence that the industry is in safe hands. The goals are very clear and the path to achieve the goals is well-defined. I am sure my readers will enjoy the excerpts from the interview published in this issue. What is most positive is the confidence that the buyers have on the capabilities of the industry and through our Cover Story –‘Preferred Supplier’– catch-up with all the factors that buyers consider as essential when aligning with vendors.
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MIND TREE
Q-and-A The growth of the Bangladesh apparel industry has apparently slowed down in the last couple of years? What (factors) according to you could arrest this decline and boost further growth? Please share your views‌
Nadith Liyanaarachchi, Country Manager, Kufner Bangladesh Ltd. Ashraful Hassan, Managing Director, Grameen Knitwear There are a number of reasons behind the decline in the growth rate. Among these, the most important reason that I can think of is low pricing. Buyers are not ready to pay increased price while they are continuously mounting pressure on us to solve compliance issues, build green factories, etc. Besides this, our industry has remained stuck on the same product categories from the very beginning and we are still known more for products such as T-shirts, polo shirts, denim jeans, etc. In this competitive world, we would have to diversify our product categories, add more innovation and efficiency to sustain growth. We should also focus heavily on infrastructure development and utility supply enhancement. Trade bodies and the Government should pay attention to these issues urgently.
M.A. Sabur, Chairman, Masco Group It is true that the growth rate has been declining since the last two-three years. We have to take it positively as this could be an ideal opportunity for us to rethink our strategy and plan accordingly. I sincerely believe that Bangladesh is still an extremely potential player in the apparel sector. To control the declining growth rate, the Government and BGMEA should take steps to facilitate business primarily through infrastructure development and increase of gas supply.
Arafat Hossain, Executive (Marketing & Sales), Nassa Denim First of all, I would like to state that we ourselves are responsible for this; we are still depending on China and India for raw materials to finished goods. Besides this, lack of requisite infrastructure arrangements is also creating barriers in the progress path. But in spite of these obstacles, I also want to add that our prosperity in denims is a really remarkable achievement; today, we are one of the leading denim suppliers and manufacturers globally and I am positive about the future opportunities.
It’s very difficult for me to analyse the actual reasons behind the slow growth rate as I am here in Bangladesh for the last few months only. Nevertheless, I realize that the global financial stagnation could have played some part in it as the buying capacity of consumers has been on decrease, around the world. Moreover, there are some country-specific reasons also like absence of adequate infrastructure, shortage of utility supplies and dearth of product diversifications. I think we need to pay attention to all these aspects to arrest this situation and boost future developments.
Md. Mahbubur Rashid, Managing Director, Trendy Tex Ltd. I believe this slowdown is temporary. After the Rana Plaza incident, though not many new factories have come up, most of the existing ones have vertically enhanced their capacities, added new machineries, and introduced new technologies, besides production upgradation also going on. Factories are also passing through a transition period to follow the Accord/Alliance guidelines. Huge re-investments are being made for production and efficiency increase. Alongside, product diversification is also going on. Export of products like down jackets, lingerie and foundation garments have increased. Factories should not just restrict to manufacturing but also invest in PD to come up with new and rare designs that have global demands. They also need to set-up marketing and distribution channels and open retail outlets in different countries. If these strategies are incorporated, Bangladesh will soon become the hub of global distribution for retail sales.
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NEXT MINDTREE QUESTION
Emerging/non-traditional markets are increasingly becoming popular. According to you, which are those market(s) that hold a lot of promise, and what are the factors/aspects that make them so promising? Please share your views‌
COVER STORY
Dazzle Textile Limited SAHED HASAN MANAGING DIRECTOR
The Preferred Supplier…
Are YOU? In exclusive one-on-one interactions with eight buying entities – both domestic and multinational – Apparel Online tries to unravel the parameters which make one a preferred supplier.
azzle Textile Limited spearheaded by Sahed Hasan as the Managing Director, is a buying house with its very own manufacturing unit (68 machines), which the company plans to increase to 1,000 machines, to cater to a rich clientele.
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RULE OF THREE
In today’s age, the selection and management of a supplier is the key to success for any business and more so in the garment sector, where the norms of global business are a must for local operations. Rapidly changing market dynamics have somewhat erased the traditional approach to archetypal supplier-business relationships, giving way to strategic liaisons with increased focus on long-term business goals. Sharing a host of joint activities, starting from information sharing to product designing to sharing storage spaces and many more, it has become even more essential to recognize the suppliers as close partners rather than just service providers. Selecting the right supplier demands a very tactical approach, which requires more than just scanning a series of price lists. One has to evaluate a supplier on wide-ranging parameters – value for money, quality, reliability, service, product skills, customer base, financial strength, infrastructure and machinery, quality procedures, management attitudes, price competitiveness, location, compliance, merchandising efficiency, etc. – and weigh up the importance of each of these factors based on one’s business priorities and requirements before bestowing a supplier with the ‘preferred’ tag. It is in this context that the supplier assessment and evaluation becomes even more important. While the definition of a good supplier that would be acceptable to all is difficult to come up with as the needs of each business are unique in themselves, there are a number of attributeswhichareregardedasdesirable,nonetheless. Apparel Online, for the firsttime in Bangladesh, brought together the stakeholders in this complex debate of what makes a ‘Preferred Supplier’ to understand their perspectives on the vital attributes which ultimately determine who becomes a preferred supplier.
First and foremost is Sincerity, because it is very important for any work; second would be Commitment (because if a supplier can maintain his commitment, everything else will be in place in terms of business); and the third quality would be Competitive Pricing.
SYNC WITH CHANGING DYNAMICS With changing times, everything changes; even the buyers syncing with the change become very important.
BIGGEST CHALLENGE! We are working with an international company from Europe and their product category is of very high-level and a lot needs to be done to maintain that quality. So, in this case, my suppliers should be able to meet the quality standards if they want to work with us.
AO SURVEY FINDINGS
82 %
respondents agree that the biggest consideration for a preferred supplier would be defined on the basis of Performance (Shipment Reliability/ Product Quality/ Compliance) as well as the requirements. But having said so, I think new people also should get opportunities.
BUSINESS POLICIES THE FUTURE In the RMG sector, Bangladesh has done a very good job and has positive future prospects.
ADVANTAGE BD Honesty, good quality of products and commitment
SUPPLIER POOL I think change is better but not in every case. My associated suppliers already know my product categories
I will work with a supplier even if its interests/policies are somewhat different from some of my core business principles; it’s not mandatory that all criteria or requirements of a supplier should always match mine or vice-a-versa.
MAINTAINING THE EDGE I always think that the supplier and me are two sides of the same coin; we are attached to each other very closely. So, it is not possible for both of us to work without each other.
Nahid Trade International (NTI) N I P U N N AW AZ CHIEF EXECUTIVE OFFICER
buying entity with years of experience in servicing overseas buyers from USA, Europe, Australia, South Africa and Israel, Nahid Trade International (NTI) is represented by its CEO Nipun Nawaz.
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RULE OF THREE According to me, the three most important factors to be a preferred supplier are: • How Well-organized and Established the supplier is, and how many workers and machines it has; because if it does not have enough workers, it will not manage to finish the orders on time. • Financial Strength, and if it has any banking issues or not, is also very important. Without strong financial standing, the supplier will not be able to complete orders and even if it does so, there will be a lot of risk involved. • Reputation and the Past Track Record.
SYNC WITH CHANGING DYNAMICS The industry is undergoing change to some extent to adjust to the changing requirements of the global apparel trade! We have become substantially adaptable now and have started accepting more fashion stuffs than before as people are interested in fashionable items compared to the basics. Also we have become a lot more flexible in payment procedures; we have started accepting contracts, CAD (Cash Against Documents), and minimum advance and rest CAD as payment modes. All these changes are in pace with the rapid modifications taking place in the apparel trade globally.
BIGGEST CHALLENGE! The biggest challenge is the ‘Deadline’! The lack of professional commitment is the main reason behind failures in delivering orders on time, but suppliers in general have a bad reputation sticking to the timelines. Timing is of utmost importance in our business. But it becomes almost impossible to maintain dates with our suppliers, as a result we cannot keep our commitments made to the buyers, resulting in delayed shipments.
THE FUTURE The future is very good for Bangladesh in garment exports. We are still cheaper compared to many other countries in various product categories. And it is because of this very advantage that we are ahead of our competitors. As per statistics, we are apparently growing every year and if this is the reality, it is very good. But, individually speaking, I think we could have done even better.
ADVANTAGE BD Cheaper price is the biggest advantage for Bangladesh and this is something which keeps us in the preferred list amongst the buyers. However, one has to understand that we are cheaper only in terms of basic items but when it comes to fashionable apparels, we tend to lose the preferred tag and this is one area, I think, we need to improve a lot.
SUPPLIER POOL Even though a preferred vendor list can help simplify business and give a sense of stability and continuity in supply, many people argue that a modern business
shouldn’t restrict itself to only a limited number of suppliers. What these people think is absolutely true. All the big brands in this world may give 70 per cent of their production requirement to the preferred suppliers but for the rest, they always opt working with the one who is not in the preferred list. The buyers also like to compare the services of the new suppliers with the regular/preferred suppliers.
BUSINESS POLICIES Most organizations rigidly follow a suppliers’ criteria checklist but sometimes vendors’ interests/ policies are quite diverse from some of the businesses’ core values. In such a scenario, the supplier must always comply with the requisite and laid down criteria; there is no room to overlook thesame. However, there is a probability of ‘if’ here. Suppose a suppliercan
give a very competitive price and with just the perfect products, I may perhaps check its services once with a trial order and if it does a good work without affecting the business, policies can be altered accordingly.
MAINTAINING THE EDGE To continue being in the preferred list, suppliers have to be more meticulous and sharpen their services in terms of timing and quality. Buyers know the prices very well and if the supplier tries to charge more, this is not going to be acceptable. To be in the preferred list, suppliers must maintain their timing in every aspect of the production till delivery. When you keep your dates and at the end of the production, you deliver 85 per cent perfect products, buyers will be happy and suppliers would continue to be in the preferred category.
CJ International ROSHAN W I T H AN AG E Managing Director
• Commitment and Reliability • Quality, and • Transparency/Honesty
SYNC WITH CHANGING DYNAMICS I personally see that very few suppliers are changing as per the global apparel trade requirements. Suppliers need to be fast in feedback and proactive in design and trends. Also, they need to be more accommodative to the buyers’ needs. Those who give a personal and customized response will definitely win in the long run.
limited number of suppliers. But we are not in a position to do so due to the simple fact that more than 50 per cent of the vendors are not reliable or responsible. Therefore, it pays to stick to the known few vendors. Although it’s a matter of time before the industry ups its standards and all the vendors come to an almost equal platform. With global connectivity improving and advancement of e-commerce, it will be normal to shop around for new vendors more often, but it will take a bit more time in Bangladesh to happen.
BUSINESS POLICIES BIGGEST CHALLENGE!
aving started its operations in Bangladesh in 2006, CJ International is a Swedish buying house spearheaded by Roshan Withanage as the Managing Director. Besides Bangladesh, CJ International also has offices in India, China, Pakistan and Hong Kong in addition to its partners in Latvia, Estonia and Thailand.
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Working predominantly with Scandinavia, sweaters account for almost half of CJ International’s total business from Bangladesh, while the remaining 40 per cent is shared by knit and woven products, and 10 per cent by home textiles (bathrobes, towels, etc). Ithas a well-equipped design studio in Sweden, in-house product development teams (both for design and yarn development) and a testing lab (employing a full-time technician and complete set of equipment including an International Lab Standard washer, a dryer, a GSM cutter and GSM weighing machines among others) and its very own knitting factory, Young 4ever Textiles Limited (specialized in all
AO SURVEY FINDINGS
The respondents also agreed that the other major considerations for a preferred supplier would be defined on the basis of:
• Upfront Attitude of Management (Transparency/ Partnerships) • PD Skills/Innovation • Speed to Market • Product Price/ Quality Ratio kinds of knitted products), with a production capacity of over 4,00,000 pieces permonth.
RULE OF THREE According to me, the three most important factors for being recognized as a preferred supplier are:
Minimum order quantities are too high, unlike in China. Suppliers are also not geared up to take on new trend-based challenges; they look too much into doing what they have been doing till now.
THE FUTURE The garment exports in Bangladesh will continue to grow not because they are great or they deserve it but due to the simple reason of low labour cost and low energy costs when comparing the competition (which gives less choice to the buyers). If they were proactive, innovative and customer-driven, they could have grown much more.
I totally agree that we should be flexible enough to change our policies provided that the vendors, who are not the preferred ones, are ethical and do not harm the environment. Being rigid on our own policies will make us lose our competitive advantage in the market as flexibility is the key in this business.
MAINTAINING THE EDGE In this age, when most of the businesses review the supplier list almost every few years to get the best bargain possible, the following qualities/factors can help a supplier maintain that competitive edge: • Be proactive to changes,
ADVANTAGE BD
• Adopt LEAN management,
Low prices, and established industry with years of export knowledge (compared to the African countries).
• Be flexible to the buyers’ requirements,
SUPPLIER POOL
• Continue absorbing new technologies, and
Even though I personally would like to agree that a preferred vendor list can help simplify business and give a sense of stability and continuity in supply, a modern business shouldn’t restrict itself to only a
• Look for a niche market (can do parallel to one’s core basic products),
• Look for new supplier markets with low infrastructure costs and labour to establish oneself parallel to one’s current production base.
Synergies Sourcing Bangladesh Limited ATIF AH M E D Director
ynergies Sourcing Bangladesh Limited, headed by Atif Ahmed as the Director, is the local sourcing arm of Synergies Worldwide (with global headquarters in Bangkok). It was founded by Munir Mashooqullah, an industry evangelist and a sought-after speaker on supply chain, who retired after 28 years’ of active involvement with the company and handed over the reins to Guido Schlossmann (President and CEO), a former Li & Fung executive.
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The global supply chain managing company, which provides low-cost sourcing solutions in apparel, fashion accessories, footwear, home textiles, decorative accessories and other goods for retailers/brands in the fashion and hospitality industries, sources different products from various manufacturing centres based on their core strengths. Its’ Bangladesh operations today account for almost 50 per cent ofthe company’s total sourcing.
AO SURVEY FINDINGS
RULE OF THREE
98%
Our first requirement starts from Compliance, moving to Quality and last but not the least, ending at Commitment. These are the most important factors we consider before enlisting any vendor to become our business partners.
of the buyers are confident that Bangladesh will remain a preferred destination, not only for basic items but also for growing importance on orders for value added and small quantity orders.
SYNC WITH CHANGING DYNAMICS To remain in sync with the requirement of today’s fashion retail business, our country really needsto fast-track improvement and enable further development/enhancement of raw material supplies as still there are so manyqualities which we have to import, which consequently increases our lead time, whereas on the other hand, our fast fashion clients are reducing their procurement lead time every season. This remains a challenge for us to compete with the other countries which have vast variety of raw materials (fabric, yarn,etc.) locally available.
BIGGEST CHALLENGE! Denim apparel manufacturing overall has advanced quite a lot but it still requires some learning, especially in washing process to produce garments with less chemicals and yet give better output. Therefore, awarenessand implementation of this knowledge should be ensured verysoon. Moreover, green product is the most discussed subject today for which we have already taken major initiatives 3-4 years back by proposing sustainable collections to our clients. Our country needs to fast undergo this shift towards sustainability for a better and assuredfuture.
THE FUTURE The growth of the industry is satisfactory in my humbleopinion
considering the fact that many of the big retailers are struggling at their sales end. Bangladesh still needs improvement in many of the areas for which manufacturers are closely working with theconcerned associations.
ADVANTAGE BD Bangladesh will remain important for the kind of infrastructure each factory has established. Besides, manufacturing cost is still one of the lowest in Bangladesh. Most industrialists are also continuously working to add automations to enhance productivity to control costs.
SUPPLIER POOL We do believe in building partnerships with manufacturers as it takes a lot oftime and energy to build relations plus technical understanding, but we are still open to welcome new reliable manufacturers as there is always some unique strength ineach of them which adds value to our product mix.
BUSINESS POLICIES We have tried to maintain a flexible yet strictly ethical policy in vendor management in which there is always a room forspecial consideration as long as it complies with our CSRcriteria.
MAINTAINING THE EDGE Well, it’s not easy to define just one area to maintainour competitiveness but sourcing competitively-priced raw materials has been our core focus tomaintain the lowest possible cost rather than just bargain on CMs with our manufacturing partners. We try to balance our cost down in every possible area but the challenge continues…!
Market Fit Dhaka M O H A M M E D N AD E E M HAIDER ROUF Managing Director
reated in 1974, Market Fit Group’s first domain of intervention was leather, quickly followed by textile, which is presently its main activity. Today, Market Fit Group operates in 8 major sourcing countries as a fashion supplier. Regarded as the pioneer of global sourcing in the textile industry, Market Fit Group began its operations as a family-owned business to steadily expand its operations across the world. Based in Hong Kong, it has marketing offices in the UK and France. It also has several sourcing offices as well in Bangladesh, India, Pakistan, Vietnam, Shanghai, Cambodia and Istanbul. Dealing in diverse categories – womenswear, menswear, kidswear, sportswear, maternitywear, uniforms, etc., Market Fit Dhaka primarily caters to the European markets.
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RULE OF THREE There are many factors that go into selecting a preferred supplier but the three significant ones remain Quality, Commitment and Attitude (towards a problem, if any).
SYNC WITH CHANGING DYNAMICS Though the industry is in sync with the changing requirements of the global apparel trade, to me it is yet not responsive as it should be.
BIGGEST CHALLENGE! The biggest challenge is that everybody wants volume in basic orders. They are not experimental or aggressive to try new product categories. Sometimes, owners/ top management want to undertake such endeavours but the mid-level/production people
are not very keen on the same. In general, big factories are reluctant to go for these product changes while the medium and small factories have no financial strength to accept the challenge of working with new product3 categories.
THE FUTURE Future is still good, but we (all the stakeholders) need to wake up, be aware of and protect ourselves from the controllable threats and challenges. The current global, political and economic situation doesn’t permit us to be reluctant. We need to be proactive at least for the controllable threats and require readying ourselves to face the uncontrollable ones. For me, the growth rate could be even better.
ADVANTAGE BD The size of the industry is its main advantage according to me as other LDC countries cannot make and offer such capacities overnight that we already have. Experience, knowhow, etc., are the other factors that will keep us in the contention.
SUPPLIER POOL Even though a preferred vendor list can help simplify business and give a sense of stability and continuity in supply, many people argue that a modern business shouldn’t restrict itself to only a limited number of suppliers. I also believe in the same. But being a sourcing entity, it’s always a complicated process as we need to pick the best one, which is not an easy job to say the least.
BUSINESS POLICIES Most organizations rigidly follow a supplier criteria checklist but
sometimes the vendors’ interests/ policies are somewhat diverse from some of the business’ core values. In such a scenario, I will continue with a vendor if it can provide me the best of the products at the most competitive price even if it does not align with some of our core policies. Because the present changing market demands do not expect us to stick to the
conventional methods; we have to take calculative risks.
MAINTAINING THE EDGE Quality, commitment and attitude towards problems/ threats/situations and a positive mindset are the qualities/ factors that according to me can help a supplier maintain the competitive edge.
Stanley Fashion B.D.
A&M Global Sourcing Limited OBIDUR R A H A M A N AURPON
K H O N D O K E R MAHIBUR R A H M A N ( S U M O N ) MANAGING DIRECTOR
stablished in 2002 by Khondoker Mahibur Rahman, Stanley Fashion B.D. is 100 per cent export-oriented buying house catering to a host of clients worldwide in various product categories including names such as Carrefour (Spain), Stradivarius (Spain), CACHE CACHE (France), Ethel Austin (UK), Sahara Impost Ltd. (UK), Fortress Vision Polska Sp. z o.o (Poland), LPP SA. (Poland) and United Fashion (Belgium).
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RULE OF THREE Commitment, Quality and Price.
SYNC WITH CHANGING DYNAMICS Yes, the industry here matches with the changing requirements of global apparel trade.
BIGGEST CHALLENGE! According to me, the biggest challenges are Commitment and Quality.
THE FUTURE The future of Bangladesh RMG export depends on EU and USA’s RMG policies such
MANAGING DIRECTOR
as GSP and GSP plus. Also Bangladesh needs to search for new markets keeping future in perspective.
ADVANTAGE BD Skilled manpower from top to bottom and backward and forward linkage facilities
SUPPLIER POOL Yes, I subscribe to the view that modern business shouldn’t restrict itself to only a limited number of suppliers.
BUSINESS POLICIES We will continue with a vendor(s) even if its interests/ policies are somewhat diverse from our core values because in business, quality, price and after-sales service are the key factors and all other policies are mere formalities.
MAINTAINING THE EDGE To maintain the competitive edge, a supplier needs to have 100 per cent self-production capacity and all necessary facilities in-house.
Future of Bangladesh RMG export depends on EU and USA’s RMG policies such as GSP and GSPplus...
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pecialized in sourcing knitwear and denims for some of the big names globally, A&M Sourcing Ltd., is a much sought-after buying entity headed by Managing Director Obidur Rahaman Aurpon, who is now planning to set-up his own production unit in Tongi. The company is a leading supplier of T-shirts for names like C&A, BHS, Lee Cooper (the sole supplier of T-shirts for Lee Cooper France) and Stanley, and denims for Alcott Italy and Celine Italy.
RULE OF THREE The most important aspect is Commitment but if you ask me to cite three qualities which need to be there in a preferred vendor, those would be the Working Environment, On-Time Delivery and Quality with a competitive price.
SYNC WITH CHANGING DYNAMICS Over the past decade, the global apparel manufacturing industry has benefited from an increasing number of consumers opting to buy more garments at lower prices. Revenue for this industry is expected to rise over the next five years. Rising disposable incomes across both developed and emerging economies are expected to be the main driving force behind the industry’s renewed growth. Continually improving global economic conditions are anticipated to be fruitful for the industry. Rising per capita disposable income coupled with a steady upward trend in the global population will give way to rising demand for apparels.
BIGGEST CHALLENGE! The biggest challenge working with suppliers in my product category is introducing them to the new fashion trends and latest fashion developments that are coming to
the market! Our supplier is more interested in quantity, but I believe creativity is more important than quantity.
THE FUTURE Leading international retailers, especially from the value sector, have started to source from Bangladesh from the 1980s. Over a period of time, buyers have strengthened their sourcing base by shifting towards direct sourcing andopening their own local offices inDhaka and Chittagong. Now, almost 72 per cent of those with activities in Bangladesh, source directly. Thehigh share is confirmed by the suppliers – 69 per cent of the surveyed suppliers focus on working directly with the international buyers. In the last 15 years, Bangladesh’s share of apparel imports to Europe and the US has more than doubled, securing Bangladesh the No. 2 position among the European Union 15 (EU-15) and US importers. Bangladesh will be the No. 1 sourcing hotspot over the next 5 years.
ADVANTAGE BD Growth in the global apparel manufacturing industry is primarily
Top Grade International Enterprise Limited W. R. DISSANAYAKE Country Manager
determined by two factors – global per capita disposable income and global population growth. Consumers purchase clothing out of necessity and to convey a desired image. Fortunately, for the industry operators, improving global economic conditions over the last five years till 2017 has bolstered consumers’ ability and willingness to spend more on clothing worldwide. Specifically, disposable income and consumer confidence in key buying regions such as the United States and Europe have underpinned revenue growth for apparel manufacturers. Another factor driving worldwide demand for apparel over the period has been the rapid economic growth of emerging market economies, which will make Bangladesh the best destination for global buyers.
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SUPPLIER POOL
Better Price, Better Quality and Timely Delivery.
Yes, I do subscribe to the view that even though a preferred vendor list can help simplify business and give a sense of stability and continuity in supply, a modern business shouldn’t restrict itself to only a limited number of suppliers.
BUSINESS POLICIES If a supplier gives me the best products in competitive prices, I will overlook some of my criteria checklist to help him grow because if I stop working with this supplier, it is not going to help him/her develop.
MAINTAINING THE EDGE Standard range of factories which can do big quantities along with fashion items in smaller volumes are the key factors that can help a supplier maintain the competitive edge.
readymade garment manufacturing and sourcing company with its manufacturing facilities in Vietnam and liaison (sourcing) offices across the globe, Top Grade International Enterprise Limited established by German entrepreneur Thomas Hebestreit in 1995, is a US $ 600 million entity headquartered at Hong Kong supplying apparel items to across geographical locations. The Bangladesh office of the company led by W.R. Dissanayake as the Country Manager, mainly caters to Lidl, Takko Holding GmbH, Ernsting’s Family and Wappen Men’s Fashion GmbH apart from some Brazilian buyers like Cia Haring, Malwee and Kyly and does all kinds of knit and woven items including sweaters for men’s, women’s and kid’s sections, except lingerie and home textiles.
RULE OF THREE
SYNC WITH CHANGING DYNAMICS To be in sync with the changing requirements, we need to adopt to new fashion developments, new production systems with industrial engineering, green technology applications to become environment friendly (Example: Water- and powersaving technologies and using better dyestuffs).
BIGGEST CHALLENGE! The biggest challenge, according to me, is archiving the buyers’ target by cutting cost and making timely shipments. These are the two main issues that we are facing increasingly on a day-to-day basis.
THE FUTURE Future is very good and growth is also admirable.
AO SURVEY FINDINGS
88% gave thumbs up to efforts on compliance and pointed out that serious commitment to strict adherence on compliance is the major point that is attracting buyers/brands.
ADVANTAGE BD Better sourcing is available (fabrics and trims), manufacturing procedures (with latest technology) are improving, quality standards are even upgrading remarkably, and above all cheaper labour compared to manufacturing destinations in other subcontinents and improved social compliance and adherence to worker’s safety requirements are taken care of.
SUPPLIER POOL I agree to what many people argue that a modern business shouldn’t restrict itself to only a limited number of suppliers because when we build relationships with several suppliers, it becomes easier to work.
BUSINESS POLICIES I would continue with a vendor if it can provide me the best of the products at the most competitive price even if it does not align with some of my core policies.
MAINTAINING THE EDGE Keeping commitments by giving delivery while maintaining thequality, and continuing the business even if prices are bit high, are some of the qualities/factors that can help a supplier maintain the competitive edge.
SPOTLIGHT
An Update on Garment Industry M d . Siddiqur Rahman, President, BGMEA
Bangladesh is going through one of its worst phases in two decades with growth in garment exportsslowing down quite drastically in the Financial Year 2016-17. While overall exports in the fiscal year (ended in June) rose nearly 1.7 per cent from a year earlier, garment sales posted only 0.2per cent growth, 7.34 per cent below the target. This is the slowest growth in 15 years. Leading the industry at this very critical juncture is Md. Siddiqur Rahman, President, BGMEA. Rahman is a stalwart of the industry being Chairman of the Sterling Group of Companies and closely associated with the BGMEA for many years in various capacities. Though his two-year tenure is nearing an end, his dynamism has resulted in an extension of another six months in office by the governing board. In a very honest interaction with team Apparel Online, the President of BGMEA shares the reasons behind the setback and measures being taken to get the industry back on the growth track. Excerpts from theinterview…. AOB: Industry has seen a very difficult year, what are the factors that have derailed the Bangladesh growth story?
“The industry is self-motivated. We have 67 ‘green’ factories, while 220 more factories are on their way to get ‘green’ factory status. Moreover, seven industrial units of the country have been ranked among the top 10 in a list of the world’s 25 most environment-friendly factories.” – Md. Siddiqur Rahman, President, BGMEA
Rahman: Over the past 10 years we experienced about 13 per cent growth year-on-year, which had become our benchmark, but this year, there is practically no growth. There are several reasons for the slowdown including the fall of Euro, Brexit, US Elections and also an unusually slow global economy. Another thing is that dollar has also depreciated by 4-5 per cent against Bangladeshi Taka in last 4-5 years. Indian currency is devaluated by about 30-35 per cent, Turkey by 102 per cent; Vietnam, Cambodia, and even China’s currency devaluated, whereas currency of Bangladesh has appreciated – 1 Dollar was BDT 84, but now it is 80;
it was BDT 77 for a long time. Competition among the sourcing countries has increased manifold. If you want to stay in this business, you have to be very cautious and competitive. Our market share is only 6 per cent whereas China enjoys 37 per cent.
These are all global problems over which we have no control. Besides, there are global propaganda against us which create more problems for the industry, as it generates a negative perception about the country, which is not true. Only last year, we had made commitment regarding amendment of EPZ laws governing labour, labour rights ethics and Bangladesh Labour Act (BLA), but there is no respite. AOB: What are the threats that you foresee? Rahman: Our port capacity is very poor and it virtually always remains clogged. Following our complaints to the PM, she has given orders to open all the ports, 24x7 which is a good decision. Also, the Government is preparing to hire 4 cranes for the port. If you think about Dhaka air freight, the situation is even more chaotic. I’ve been fighting every day for the industry for the last 1½ years since I have been holding this post, and now finally last month, the Government has formed a committee to look into the issues regarding airport freight, but the situation is still far from what it should be. I think the fresh thrust that the Indian Government has given to this sector could also make things more challenging for us. India is giving lots of incentives to its industry such as Rs. 6,000 crore cash incentives, upgradation fund of up to 30 per cent and even if one sets up a factory in some remote area like Odisha or Jharkhand, the State Governments will give Rs. 1,500 per month for every worker for 3 years. They are also enjoying bank loan with low interest rate. Also, India has its own resources – cotton, land, textile background, deep sea ports, etc. But we’ve nothing of our own. We don’t even have a deep seaport. That’s why our lead time is very high. Nowadays, fashion is changing rapidly, but we’re still struggling to reduce lead time, especially in
woven garments, for which we have to still import more than 65 per cent fabrics from China, India and Pakistan. AOB: What is the situation like on the compliance front? Rahman: For the industry, the Accord, Alliance and NationalAction Plan have created another set of challenges. We don’t find these types of agencies anywhere else in the world. Now they are expecting us to extend their tenure for another 3 years. They’re giving us new CAPs one after another and it has been challenging for us to fulfil their demand. Yet, the industry is self-motivated. We have 67 ‘green’ factories, while 220 more factories are on their way to get ‘green’ factorystatus. Moreover, seven industrial units of the country have been ranked among the top 10 in a list of the world’s 25 most environment-friendly factories, including for instance – Best woven factory, Best washing plant and Best spinning mill. But still the custodians of compliance are unhappy with our efforts. I have seen factories in Italy, Vietnam, Cambodia and even in China. Our factories are much better in terms of compliance. I’ve been in this business for last 34 years and seen lot of things. No country will allow you to pay unannounced visit to the factories but we allow announced or unannounced visits to the factories. The buyers came to visit our factory even before Rana Plaza tragedy and called allthe workers on the floor to askquestions in terms of their wages, safety or other issues. We allowed all these things, which won’t be permitted in any other country. After all these manoeuvres, everybody is talking negative about us. Now we’ve decided that enough is enough… We’ve finally decided to raise our voice. AOB: RMG sector is the lifeline of Bangladesh’s economy. Is it not a top priority for your Government to ensure a good conducive environment to work? Rahman: Our Government is very business-friendly and we have been getting very good support from our PM herself. But, the problem is that the product price is going down
every day and this the Government can’t control. The reality is that Bangladesh is no longer a ‘cheaper’ destination. Though we’ve developed our efficiency level, we have also increased the wage range by 25 per cent. Today, we have a very productive workforce that is loyal but ‘outsiders’ are always trying to influence them to create unrest. Everybody is talking about labour rights but nobody is talking about their responsibilities. Now we’re doing a social dialog project to train the workers about their rights and responsibilities. We have set up offices in different places. Retailer brands like H&Mhave also set up offices to train the workers. In our factories, we have a participation committee and also a safety committee. We are even working to develop the middle management level, for which the new university is coming up to provide quality education. There are 9 training centres established in different remote places to train the mid-level employees and the workers. We even have some expert trainers to train them and have also been providing them job facilities. AOB: What are the new directions to keep the growth momentum? Rahman: Exploring new markets have become very critical for growth; there is a big market, each in Russia and China. We are also focusing on South Africa, Japan, and Australia apart from already catering to South America. Of all the potential markets, we consider Russia as the biggest market for us. We have requested the Government to seek out facility of duty-free entrance into this huge market. Japan is also a very good market. We know China has a very big domestic market of US $ 400 billion. Despite their significant global presence, we can find some space there for us. We are also looking at new product categories and moving up in the value chain. In earlier days, we didn’t even know about R&D, but now many of our factories have product development teams, although the numbers are still small. Slowly but surely we’re learning, and hopefully, can produce some diversified products in the coming days.
“The reality is that Bangladesh is no longer a ‘cheaper’ destination. Though we’ve developed our efficiency level, we have also increased the wage range by 25 per cent. Today, we have a very productive workforce that is loyal but ‘outsiders’ are always trying to influence them to create unrest.” – Md. Siddiqur Rahman
BUYER BLOG
KNA Sourcing – A buying house with a difference! Chairman of the buying entity shares his business strategy and future plans…
f the growing popularity of the Bangladesh garment industry in the global arena has opened up new avenues for the garment manufacturers, it has also spurred the growth of the buying entities, with everyone vying to cash in on this big opportunity. But rising competition amongst buying houses, coupled with lack of properand long-term planning, is proving to be the undoing for many.
I
KNA Sourcing Limited, started by Md Kayum Mollah (Chairman), Nasim Uddin Mazumder (Managing Director) and Md Arman Hossain – Director in 2013, is an exception though. Seasoned professionals with more than 15 years’ of experience – during which Kayum, Nasim and Arman worked for manufacturing houses and sourcing entities in various capacities, before starting their own business – are treading the path rather cautiously, and with a clear-cut plan.
“Currently, I am catering to four customers in Europe and one each in Canada and Germany,” informs Mollah, adding, “We source all kinds of products from Bangladesh for them.” Though sourcing a range of products, bottoms (denim and non-denim) and shirts (formal and casual) are the mainstay of KNA. In bottoms, denims (FOB range from US $ 4.75 to US $ 10.50 depending on value additions) constitute 70 per cent of the total volume, while non-denim (twill, cotton, stretch twill, canvas, etc.) accounts for the remaining 30 per cent. The average FOB of shirts sourced by KNA is around US $ 6.5 plus. A watchful entrepreneur as he is, Mollah first plans to increase his clientele in the existing markets and serve them satisfactorily before looking for opportunities beyond. It is this very approach aimed at client satisfaction that has now led Mollah to venture into garment manufacturing. “We have started garment manufacturing from June 2016 to provide the best of services and
Md Kayum Mollah, Chairman –KNA Sourcing Limited
comfort to our customers,” says Mollah. Located in the garmenting hub of Ashulia, Spartan Fashions (four lines and 250 plus machines with plans to add three more lines soon and a worker strength of 450) produces all kinds of bottoms (denims, non-denims) and workwear. Competitive prices, quality products and an improved turnaround time have been the other motivating factors behind the coming up of the production unit. Already Sedex certified, Mollah has now proceeded for BSCI and even plans to go for the Accord certification for Spartan soon, which would not only help him to route more orders sourced from the existing clients to Spartan but also add new names in the clientele. “Most of the bottom orders from clients (for all of which Spartan can fulfil the laid down criteria) are placed with Spartan itself while the remaining orders go to another unit,” he explains strategically. Spartan also takes in orders fromother buying houses to fill its capacities. For shirts, KNA prefers to work with only three factories in the country. “We do not place any orders with factories that we do not know very well.Secondly, the factories we plan to work with need to be fully compliant, fulfilling the
clients’ requirement,” states Mollah on the various parameters that go behind shortlisting a supplier unit. Product specialization of each of the factories decides who gets to manufacture whichproduct. Keeping in sync with future, Mollah has also set up an in-house product development team, to give KNA that extra edge. “It’s a very small team with justthree people,” explains Mollah, who globetrots with his PD team to pick up the new developments from various places, and elaborates, “We travel a lot, attend several events and evensee the developments in every mill that we source raw materials from. We also pick up inspirations from our clients.” Based on the styles and inspirations picked up from various sources, KNA develops its own collection which it presents to the prime clients. “So they take some from our collection and suggest their own, based on which we come up with evenmore developments,” says Mollah on a parting note, expressing hope that the new manufacturing unit would help him play around and come up with innovative products to grow his business in the coming days.
SUSTAINABLE BD HAVE YOUR SAY
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WRAP launches Sustainable Clothing Guide United Kingdom-based Waste and Resources Action Programme (WRAP), which works with businesses, individuals and communities to achieve a circular economy by helping them reduce waste, develop sustainable products and use resources in an efficient way, has launched a Sustainable Clothing Guide to support brands and retailers to enhance durability and quality of the apparels they produce. The Guide shares simple steps to best practice on how to design, produce and sell sustainable clothing that last longer and which can be easily repaired and re-used.
“We encourage designers and product technologists within brands and retailers to use this guide as part of their daily work to embed durability at the product design and development stages,” underlined a statement issued by WRAP. Working together, the clothing industry can pioneer sustainability throughout the lifecycle of clothing. WRAP’s research, ‘Valuing our Clothes’, found that the most significant opportunity to reduce carbon, water and waste is to increase the active life of clothes. Extending the life of clothes by
nine months of active use would reduce carbon, water and waste footprints by 4-10%, it added. The Guide states that durability drives
quality, which safeguards against garment failure, strengthens brand reputation and cements customer satisfaction and loyalty.
Bangladesh amongst 10 worst nations for workers: Report The world’s second largest garment exporter, Bangladesh, boasts of a labour-intensive industry that provides employment to a large chunk of the country’s population. However, when it comes to workers’ rights, the scenario apparently is not encouraging… A recent report by International Trade Union Confederation (ITUC) – a labour rights group, has included the country amongst the ‘10 worst countries for workers’. The ITUC Global Rights Index 2017 report states that the continued suffering inflicted by the Government and employers on trade unionists in the country led to Bangladesh receiving a rating of 5, indicating ‘no guarantee of workers’ rights’ there. The Index ranks 139 countries based on 97 internationally
arrests and discrimination are the main contributors to the repression of labour organizations in Bangladesh.
The other countries on the 10-worst list are: Colombia, Egypt, Guatemala, Kazakhstan, Philippines, Qatar, South Korea, Turkey and UAE.
recognized indicators to assess where workers’ rights are best protected ‘in law’ and ‘in practice’. The other countries on the 10-worst list are Colombia, Egypt, Guatemala, Kazakhstan, Philippines, Qatar, South Korea, Turkey and UAE. According to the report published on June 13, police brutality, mass
The report further highlights the reaction to the readymade garment workers’ protests in Ashulia, the apparel hub of Bangladesh (in December 2016) as a major example of such repression. 35 union leaders and workers’ rights activists were allegedly detained following the week-long strike, while complaints were filed against thousands of workers. The study shows that the country needs to step up and protect its workers’ interest(s) and safeguard them to continue the tremendous growth it has been noticing, especially in the garment industry, over the years.
Burberry funds university to develop sustainable materials A fund of £ 3 million has been granted by the Burberry Foundation to Royal College of Art (RCA) to start Burberry Material Futures Research Group, jointly established by the two to invent more sustainable materials, reduce waste, advance manufacturing and transform consumer experience. It will be the first explicit ‘STEAM’ research centre at a traditional art and design university. The grant also includes £ 750,000 to expand the existing Burberry Design Scholarship at the RCA, to help more students from the UK and the EU to reach their full potential regardless of their financial circumstances. The Burberry Material Futures Research Group will deliver the
Denim North America (DNA), a division of DNA Textile Group, has launched its next generation ‘Sustainable R3 Denim’ collection called EcoSure BioBlast Denim. The product is being developed in DNA’s close collaboration with US-based sustainable polyester producer Poole Co.
academic vision for materials science research outlined in the RCA’s strategic plan 2016-2021. It will act as a virtual centre until it moves to a permanent home in the RCA’s new building in Battersea, designed by Herzog &de Meuron, scheduled to open in 2020. “The Group will cover a broad scope
of work, from researching and developing more innovative sustainable materials to designing new manufacturing methods, as well as nurturing and supporting even more British-trained design talent,” commented Christopher Bailey, Chief Creative and Chief Executive Officer of the company.
YOOX NET-A-PORTER bans sale of angora YOOX NET-A-PORTER, a luxury fashion group, has committed to end the sale of angora across all its platforms followed by its adoption of ‘fur-free’ policy. “Regardless of whether fur or angora was obtained by gassing, electrocuting, bludgeoning or by ripping from a terrified, conscious animal, it’s always a product of extreme cruelty – which most stylish women and designers have turned their backs on as demand for sustainable vegan fashion has soared. By introducing a ban on angora in line with its ban on fur, YOOX NET-A-PORTER is securing its place as thepremier luxury fashion destination –now
Denim North America launches ‘Sustainable R3 Denim'
and into the future,” says Mimi Bekhechi, Director of International Programmes, PETA. PETA Exposés, an American animal rights organization, had earlier revealed that even within angora farms deemed “humane” by thirdparty auditors, rabbits are tied down and their fur are ripped off that leaves behind wounds on animals screaming in pain.Since PETA’s revelation on Chinese angora industry, the source of 90% of the world’s angora, designers including Stella McCartney, Calvin Klein, Roland Mouret and Alexa Chung as well as stores including Topshop, H&Mand Zara have confirmed bans. The revelation has led to drop in Chinese angora exports by 85%.
According to DNA, EcoSure BioBlast is a biodegradable fibre made from 100% post-consumer recycled water bottles. Before using these fibres in the latest R3 Denim collection, they have been shown to biodegrade in landfill conditions 12 times faster over a year compared to traditional polyester. Furthermore, the unique engineered polymer creates fibres that are soft, durable, strong and provide the performance characteristics that consumers have come to expect from their clothing. Adding on, DNA reports that the growing popularity of performance textiles within the market directly contrasts with the sustainable movement. With more than 81% of textiles making their way into landfills each year, this rise in the use of synthetic fibres means that this textile waste will take much longer to decompose, with some estimates from 20 to 200 years. EcoSure BioBlast Denim solves this issue to a great extent, claims DNA. Lisa Harris, Creative Director, DNA, commented, “As wearable function and sustainability are both becoming mainstays in jeanswear, our mission was to combine these elements by bringing natural and performance fibres together into a sustainable fabric. DNA will be previewing EcoSure BioBlast Denim at BPD Expo in NYC on June21-22.”
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AMSilk gets TÜV SÜD certification AMSilk GmbH, the world’s first industrial supplier of synthetic silk biopolymers for use in textile products and medical devices, has received certification according to DIN EN ISO 13485:2016by TÜV SÜD, a leading testing, certification and training company, for its quality management system.
management procedures. Moreover, TÜV SÜD recertified AMSilk regarding conformity with the international standard ISO 9001:2015. Jens Klein, CEO, AMSilk said, “We are very pleased that our high standards regarding safety and product quality have been reconfirmed by the TÜV certification. As AMSilk is planning to further reinforce and develop its medical technology business unit, especially the certification according to DIN EN ISO 13485:2016 is an essential milestone in the development of best-in class products.”
The certification confirms that the company is a qualified supplier for medical device manufacturers and that it implements stringent industry standards concerning safety and reliability of its products as well as the required risk
Grasim Industries earns USDA Biobased Certification Grasim Industries Limited, a flagship company of Aditya Birla Group, has earned the US Department of Agriculture (USDA) Certified Biobased Product Label for its products – Birla Viscose, Birla Modal and Birla Excel. Third-party verification for a product’s biobased content is administered through the USDA BioPreferred Program. One of the goals of the BioPreferred Program is to increase the development, purchase and use of biobased products. “We applaud Grasim Industries Ltd. for earning the USDA Certified Biobased Product Label,” said Kate Lewis, USDA BioPreferred Program, adding, “Products from Grasim Industries Ltd. are contributing to an ever expanding marketplace that add value to renewable agriculture commodities, create jobs in rural communities and decrease our reliance on petroleum.”
“The USDABiobased certification is another milestone reached in our sustainability journey, further strengthening our belief…” –Dilip Gaur, MD, Grasim Industries Ltd
The USDA Certified Biobased Product Label displays a product’s biobased content, which is the portion of a product that comes from a renewable source, such as plants, animals, marine or forestry feedstocks. Utilizing renewable, biobased materials displaces the need for non-renewable petroleumbased chemicals. Biobased products, through petroleum
displacement, have played an increasingly important role in reducing greenhouse gas emissions that exacerbate global climate change. They are also cost-comparative, readily available and perform as well or better than their conventional counterparts.
“The USDA Biobased certification is another milestone reached in our sustainability journey,
further strengthening our belief that sustainability is at the core of our business strategy,” commented Dilip Gaur, MD, Grasim Industries Ltd. Adding to that, Rajeev Gopal, Chief Marketing Officer, Birla Cellulose said, “This certification reconfirms the natural origin of our products and will enhance the confidence of the value chain players in delivering biobased products.”
ADVERTORIAL
SHIMA SEIKI - PACIFIC ASSOCIATES CONDUCT SEMINAR ON SDS-ONE APEX3 – DESIGN SYSTEM…
Industry Enthusiastic of Potential! In a fresh initiative to update the industry on the usefulness of the unique SDS-ONE APEX3 – DESIGN SYSTEM, SHIMA SEIKI MFG. LTD., in association with its local partners PACIFIC ASSOCIATES LTD., organizeda seminar at Westin in Dhaka recently. The event was well-attended by representatives of both the buying offices and sweatermanufacturers, all of whom not only took interest in the presentation but also asked many relevant questions regarding the Design System.“We are very happy with the interest shown by
the participants and it only goes to prove that the industry in Bangladesh is now ready for such a software,” said M. Shahabuddin, Managing Director, Pacific Associates. His enthusiasm was equally shared by theShima Seiki Bangladesh team, led by Tadanori Ueno, GM – Bangladesh Liaison Office, which noted down all the questions asked and was already thinking ahead about the next presentation to take the industry’s interest to a higher and more tangible level. Takafumi Kamei, General Manager of Total Design Center, and Yuri Tomita, Joint
Realism achieved through virtual sampling which provides power to give impressive presentation. Scanning of actual yarn and making of knitted virtual garment sample with the same yarn which is a strong feature of SDS-ONE. Making your own yarn, by deciding the counts, ply’s,twist, space dyed yarn, mélange yarn, plating yarn and converting them into real image of knitted fabric which is possible with SDS-ONE.
Sales Division, both from SHIMA SEIKI MFG. LTD, Japan, were also present at the event to interact with the participants.Total Design Center is an impressive support tool from SHIMA SEIKI that also features a specialized training facility which provides a relaxed atmosphere where students can concentrate on their training. Students are free to use the latest apparel design systems and computerized knitting machines. However,training is not the first priority among the activities of TDC and the center is primarily involved in sales activities by planning and creating the samples with latest technology, and then giving training as a technical support.“We are confident that the Bangladesh industry will see the advantages of linking their Shima knitting machines to the SDS-ONE APEX3 –DESIGN SYSTEM, not only in optimizing the operations, but also in saving critical time and money in the sampling process,” said Takafumi Kamei.
segment. As per conventional method, a sample is created first by drawing a sketch, selecting design, material, texture, silhouette, colour etc. But by using SDS-ONE, users can eliminate all these procedures without actually knitting the sample!
The SDS-ONE APEX3 – DESIGN SYSTEM is the first of its kind All-in-One Designing and Communication Tool that is not only useful for the Designers of the Garment Manufacturers, but also useful for the entire fashionindustry – especially for knits, though the system can be equally useful in the woven garments
Some of the special featuresof the Design System that were highlighted include:
This design system has everything needed to create high-quality products with high fashion appeal,with complete support of all the stages from conceptualization to the final product. Every aspect – product planning, designing, patterning, knit programming, virtual sampling, production, merchandising and even sales promotion is taken care of by the design system. “The tool is a comprehensive software, and together with the Shima machines, all aspects of creating a garment can be planned and executed with virtual approval from the buyers and placed on the shelves in shorter lead times, which is very critical to the global garmenting business today,” said M. Sahadat Hossain, Chairman, Pacific Associates Ltd.
Loop simulation which allows quick evaluation of virtual knitwear without making actual sample.
Choosing different colour combinations from the Pantone Shade Cardand also making own colours with Colour Management System (CMS). Printouts being taken to display different sizes and colours of thegarment/swatches. Designers concentrating on creativity rather than making sketches and production team quickening the pace of actual manufacturing without worrying about approvals. The SHIMA SEIKI team realizes that the industry is still getting acquainted to higher technologies, but they are confident that once the industry recognizes the potential, investments will come in.“The Bangladesh industry is very receptive to technology, as they are keen to grow. Earlier where we found it difficult to convince players to switch from hand-flats to automated machines, we now have companies that have invested in over 100 machines, and even 200 machines… We are confident that the same will happen with the SDS-ONE APEX3 – DESIGN SYSTEM, once they are convinced of the ROI and practical savings that will occur,”concluded Tadanori Ueno.
SHIMA SEIKI MFG., LTD. 85, Sakata Wakayama 641-8511,Japan, Tel:+81-73-474-8210, Fax:+81-73-474-8270
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Accord extended for 3 more years Close on the heels of Bangladesh Garment Manufacturers and Exporters’ Association (BGMEA) expressing its openness to EU retailers’ group, Accord on Fire and Building Safety in Bangladesh will be continuing its operations in Bangladesh as a monitoring agency post-2018. The European Union fashion brands, retailers and global union federations recently announced a new deal named ‘Accord 2018’, which in effect will carry forward the Accord on Fire and Building Safety in Bangladesh’s remediation activities in the country’s readymade garment industry after May next year, when the term of the current Accord expires. IndustriALL Global Union and UNI Global Union, with representatives from C&A and LC Waikiki, proclaimed the new agreement in Paris recently. The latest agreement extends independent, expert building
safety inspections for three more years for all covered factories besides presenting the possibility to expand the Accord to sectors other than the garment industry. The new agreement has so far reportedly been signed by Kmart Australia, Target Australia, Primark, H&M,
Inditex, C&A, Otto, KiK, Aldi South, Aldi North, Lidl, Tchibo, LC Waikiki and Helly Hansen while another eight brands – such as Esprit, Hüren, Bestseller, Wibra, Schmidt Group, NBrown Group, PVH, Specialty Fashion Group Australia, have reportedly also committed to signing it.
It may be mentioned here that following the Rana Plaza building collapse in April 2013, EU retailers formed the Accord while North American retailers formed the Alliance to undertake a fiveyear plan, which set time frames and accountability for inspections and training and workers’ empowerment programmes.
Budget: Corporate Tax for RMG sector lowered to 12%; Tax at Source 1% retained In what may be termed as some reprieve to the readymade garment manufacturers of Bangladesh, the Government has lowered the Corporate Tax to 12 per cent from 15 per cent, as was proposed in the Budget placed before the Parliament on June 1. However, Tax at Source of 1 per cent on export earnings from readymade garments has been retained. Finance Minister Abul Maal Abdul Muhith, in his final Budget speech,
said that the garment exporters would have to pay 1 per cent tax at source in the new fiscal year. The rate is supposed to be 1 per cent in FY 2017-18 after exporters paid the tax at the rate of 0.7 per cent in FY ’17, as the National Board of Revenue reduced the rate for the year through a special statutory regulatory order. The rate of Corporate Tax for green factories has also been reduced to 10 per cent from the proposed
14 per cent. The Parliament has passed the Finance Bill 2017 recently, incorporating some changes, including those related to Value-Added Tax, Income Tax and Customs Duty. It may be mentioned here that in FY 2016-17, the rate of Corporate Tax for the garment sector was 20 per cent, which the Finance Minister in the proposed Budget reduced to 15 per cent before cutting further to settle at 12 per cent.
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Duty-free access to UK to continue post-Brexit
Bangladesh to be the top cotton importer in 2017-18 also
Even as readymade garment exporters have been speculating on the fate of duty-free benefits (that they currently enjoy in the United Kingdom) post-Brexit, the British Government has reportedly promised to maintain the existing duty-free access for ‘everything but arms’ for 48 countries, including Bangladesh.
According to United States Department of Agriculture (USDA), Bangladesh, the largest cotton importer in the world, has been projected to remain the top importing country of cotton in 2017-18 as well. The country is expected to import 1.52 million tonnes of cotton this season, that begun from August 1 last.
“The announcement shows our commitment to help developing countries grow their economies and reduce poverty through trade,” said UK’s International Trade Secretary, Liam Fox, in a statement issued recently. The new commitment means that around 48 countries across the globe, from Bangladesh to Sierra Leone, Haiti and Ethiopia will continue to benefit from duty-free exports into the UK on all goods other than arms and ammunition, reportedly underlined the British Prime Minister’s Office. After decades of access to the European Union’s single market, the UK has decided to leave the bloc following the 2016 referendum. It may be mentioned here, underlining that UK is the third largest country for Bangladeshi exports, Foreign Minister of Bangladesh, AH Mahmood, had earlier expressed hope that his country would continue to enjoy the same for better facilities and duty free-quota free (DFQF) market access to the UK market after Brexit comes into force. However, like many other countries, economists and analysts in Dhaka had expressed apprehensions about probable negative impact of UK’s exit from the EU, among which are losing duty benefits on Bangladesh’s exports, decline in remittance inflow and volatility in the foreign exchange market… “It seems that our export to Bangladesh’s big market – the UK will be under pressure. We seek Government support so that we can maintain smooth export to the region,” reportedly stated BGMEA Vice President (Finance), Mohammed Nasir, to a news agency earlier.
The report further states that Vietnam will retain its position to be the second largest importer of cotton. The USDA has also predicted around 7 per cent growth in cotton production while consumption globally is expected to remain above the production. As a result of increase in consumption, global stocks are expected to decline for the third consecutive year. “Strong consumption growth is predicted for Vietnam, Bangladesh, China and India, while moderate consumption growth is expected in Turkey and Indonesia, as well as some
Western Hemisphere countries such as Brazil, Mexico and the United States,” it added. South Korea, Taiwan and several consuming countries in the Middle East and Europe may see decline in consumption.
VFC bags recognition for its HR operations VF Corporation, an American worldwide apparel and footwear company founded in 1899 and headquartered in Greensboro, North Carolina, has been recognized for its human resource operations by Workforce Magazine. The company has been named in the publication’s ‘2017 Workforce 100’ list. “Our ongoing commitment to make VF the best possible place to work is one we take seriously,” said Anita Graham, Vice President and Chief Human Resources Officer, VF Corporation, adding, “We have incorporated a
talent focus in our Global Business Strategy and we will continue to drive momentum so that we remain a purpose-driven company that attracts and develops the best talent.” The list is based on research from the Human Capital Media Advisory Group and uses employee satisfaction data from Glassdoor. Seven categories of HR performance were assessed to compile the list, including employee development, workplace culture, employee benefits, talent management and diversity and inclusion.
Airports' inefficiency costing a billion dollar to Bangladesh Coming down heavily on the alleged delay in releasing garment samples by the country’s airports, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Md Siddiqur Rahman, has claimed that Bangladesh has been losing more than US $ 1 billion worth of apparel business yearly due to the ‘inefficiency’ of the airport authorities. “The samples from the airport are supposed to be received within 24 hours, but it in fact takes more than 10 days. The manufacturers do not get the samples from the airport in time,” alleged Siddiqur, while speaking to the media at the BGMEA office in Dhaka recently.
These kinds of irresponsible behaviour have irked the international retailers; they are either shifting work orders to other countries or delaying in placing orders or paying less to manufacturers. “These inefficiencies have been costing us business,” reportedly underlined the BGMEA President. It may be mentioned here that due to the fast pace of trend cycles nowadays, the retailers send samples to garment manufacturers in Bangladesh frequently through expensive air shipments and they expect quick execution of the work orders. However, the alleged delays by the airport authorities have reportedly irked many overseas
retailers lately. “Last week, a group of foreign buyers met me and complained about the inefficiency of the airport. We, therefore, want immediate improvement of Hazrat Shahjalal International Airport and Chittagong Port,” Rahman further added.
ILO for labour unions' freedom The International Labour Organization (ILO) has reportedly called upon the Government of Bangladesh to ensure that the draft of the proposed Export Processing Zones (EPZ) Labour Act, 2016, allows freedom of associations of the workers. The suggestion was reportedly placed recently, following statements made by the
Government representatives and subsequent discussions at the 106th International Labour Conference – the ILO’s annual convention, held in Geneva between June 5 and 16. The committee reportedly said there has been insufficient progress in relation to previous discussions and more needs to be done to achieve compliance.
This must take place without further delay. Investigations into all alleged acts of anti-union discrimination, including in case of Ashulia garment factories, must be conducted and the RMG workers illegally dismissed should be reinstatedwithout further postponement, the ILO reportedly stated. The committee also advised thatapplications for union registrations are acted upon expeditiously and not denied unless they fail to meet clear and objective criteria set forth in the law, besides urging the Government to continue to effectively engage in ILO technical assistance to address the recommendations. The Government has been asked to report in detail on the measures taken to implement the recommendations in the next meeting of the Committee of Experts, due to takeplace in November.
Swedish firms keen to invest in garment industry Two leading Swedish companies, namely Investor AB and ABB Sweden, have reportedly expressed their keen interest to work for the development of Bangladesh’s readymade garment industry alongside the power sector. The Swedish entities mentioned this when the President and Vice President of Investor AB and CEO of ABB Sweden separately called upon Bangladesh Prime Minister Sheikh Hasina, during her official visit to Sweden recently. Investor AB is a Swedish investment company, founded in 1916 and controlled by the Wallenberg family through their Foundation Asset Management Company FAM. The company owns a controlling stake in several large Swedish companies with smaller positions in a number of other firms. During the meeting with Hasina, Investor AB Chairman, Jacob Wallenberg and Vice-Chairperson Marcus Wallenberg, and ABB Sweden CEO Johan Söderström, praised the Bangladesh Premier on the country’s socio-economic development under her leadership. Earlier, Karl-Johan Persson, CEO of Swedish retail giant H&Mhad met Hasina in Stockholm. During the meeting, the Prime Minister highlighted various steps of her Government for the development of the garment industry. She also urged the buyers to raise the prices of RMG products saying that this would eventually benefit the workers. It may be mentioned here that Swedish retailer H&Mimports readymade garments worth US $ 5 billion from Bangladesh annually. Bangladesh Foreign Minister AH Mahmood Ali and BGMEA President Siddiqur Rahman were also present in the meetings.
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Pakistan's NTU develops energy-efficient dyeing machine National Textile University (NTU), based in Faisalabad (Pakistan), has developed a new dyeing machine which consumes 20-30 per cent less energy. The detailed research and hectic efforts of Dr. Yasir Nawab and Muhammad Ayub Asghar, connoisseurs of the university, have resulted in an innovative heating and dyeing system in the form of a newly developed dyeing machine with an aim to save energy and carry out the processes of sizing and dyeing in the textile sector more efficiently. “One of the most important aspects of dyeing, processing and sizing of the products is heating which consumes huge energy and enhances the cost of the products.
Industry Association (APSIA) and Faisalabad Chambers of Commerce &Industry Association (APSIA) and Faisalabad Chamber of Commerce and Industry (FCCI) to devise a way for changes in the existing sizing industry for energy saving.
The new machine will prove vital in making the operational system more efficient and safe for the staff concerned,” said Dr. Nawab. Developed with funding from the Pakistan Science Foundation, the machine is the need of the
textile industry as the increasing trend in the cost of production of cotton fabrics is a serious issue. Furthermore, the university has also decided to join hands with the private sector, especially with the All Pakistan Sizing
“We are inviting the concerned managers of the private sector in the sizing and processing units to visit the weaving department of NTU with an aim to join hands to make sizing industry cost and energy efficient,” added Dr. Nawab. He further claims that various private sectors involved in the sizing sector have contacted them for making changes in their heating system with the replacement of the machine and heating system evolved by theNTU.
Chinese T&C major to expand operations in Malaysia China-based Daiyin Textile and Garment Group will be investing about US $ 124.2 million to further expand its operations in Malaysia this year to meet the rising demand for textile- and garment-related products. The investment will be made in two phases, mentions Steven Cheng, Director and General Manager of the company while stating that US $ 74.4 million would be allocated for the expansion project at its existing plant (Sedenak industrial estate here) which will increase the current production capacity of pure cotton yarn from 20 million kg to 40 million kg yearly. The remaining US $ 50 million would be invested to set up a
new jeans manufacturing plant, for export to the United States. It is expected that the expansion project would create about 1,100 job opportunities for the local population. The Malaysian subsidiary of Daiyin Textile and Garment Group – D&Y Textile, started operations in March 2014, and currently employs around 300 workers; making it the company’s second manufacturing facility outside of China. It may be mentioned here that according to the Malaysian Deputy International Trade and Industry Minister Datuk Ahmad Maslan, export of made-in-Malaysia textileand garment-related products surged to US $ 1.7 billion in the
first-half of 2016 compared to US $ 1.5 billion in the same period last year, with the United States, Canada, and the European Union amongst the key export
destinations. He further adds that prospects for the textile and garment industry are good, with projected global demand of US $ 160 billion by the end of 2018.
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China stays ahead in technical textiles production Amid rapidly increasing global technical textiles market, China is expected to stay dominant in this sector in 2017. Europe and USA are two top markets which Chinais aiming to cater the most. According to BizVibe (a leadingB2B marketplace), the global technical textile industry was estimated to be worth US $ 142 billion in 2015 and is expected to reach US $ 165billion by 2019. China contributes 30 per cent to the global technical textile production and its leading position is followed by America with 19 per cent of global production, India with 18 per cent, the EU with 16 per cent, and the rest of the world with 17 per cent. BizVibe also shares that a large workforce, strong domestic market,
and the advancements in the textiles technology make China a very strong competitor in the global technical textiles industry. Despite setbacks in terms of reducedtextile exports in last few years, these qualities have allowed China to continue to thrive in this sector.
“China has a clear edge over its competitors like India. For example, Vardhman Group, one of the largest spinning companies in India, has a capacity of 5,00,000 spindles,while Weiqiao Textile, one of China’s largest spinning companies, has
a capacity of 30,00,000 spindles. On an average, textile companies in China are five times larger than those in India, meaning that they have an easier time meeting the increasing global demand for technical textiles,” reports BizVibe.
India likely to note 15-18% growth in garment exports in 2018 India is likely to note a 15-18 per cent growth in garment export to touch US $ 20 billion during the current fiscal. The increase from US $ 17 billion in FY’17 is expected mostly owing to the improved market
conditions in the US and other markets.
“We have clocked 15 per cent growth in garment exports at US $ 17 billion in FY’17. We expect 15-18 per cent rise in the current fiscal to register exports
of US $ 20 billion,” stated Clothing Manufacturers Association of India (CMAI) President, Rahul Mehta. India failed to grab the desired export target for the year 2016-17 due to world recession and heavy competition from China,
“We are a strong player in spring and summer wear, but we need to increase exports of autumn and winter wear…” – Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI)
Bangladesh and Vietnam. “The US market, which consists of 30 per cent market share, is doing reasonably well and we are also looking at good exports potential to South America, European, Middle East and Japanese markets this year,” Rahul added. “We are a strong player in spring and summer wear, but we need to increase exports of autumn and winter wear, which we hope to do in coming years,” he said. According to Rahul, demonetization announced last year had not hit the industry and GST (Goods and Services Tax) rates implementation is unlikely to impact the industry adversely.
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Vietnamese textile companies save millions via sustainability initiatives International Financial Corporation (IFC) has launched a US $ 9.9 million project to assist Vietnamese garment and textile companies in enhancing resource efficiency and thereby saving US $ 15 million by minimizing the consumption of water, energy and chemicals. IFC made this announcement at a recently concluded workshop held in Ho Chi Minh City. Under the programme, the selected 28 suppliers of VF and Target Corporation, who have invested the said US $ 9.9 million, are in cutting, sewing, dyeing, printing, laundry and other garment washing operations. By implementing a combination of low-cost and more complex factory
projects, these suppliers achieved average water and energy savings of more than 20 per cent. Once all the recommendations under the project are implemented along with an additional investment of US $ 26 million in new equipment, the targeted enterprises will save up to 2.8 million cu3 m of water and 5,62,000 tonnes of greenhouse gas per year in the next two years. “The results of the project in the first stage have proven to be economically efficient, thanks to the saving of resources,” averred Kyle Kelhofer, Country Director, IFC for Vietnam, Cambodia and Laos. Kelhofer further added that with growing economy and the booming industry, measures to
increase resource efficiency in the garment industry will open up important opportunities for Vietnam to boost sustainable growth in the private sector. “It will help local factories save production cost while promoting
resource-efficient consumption and sustainable development,” he added. IFC further aims to work with other prominent global brands to promote implementation of the programme for Vietnamese outsources.
Myanmar strives to get tax relief on garment export The local garment factories in Myanmar plan to export their own branded garments, according to Myanmar Garment Entrepreneurs Association (MGEA). At present, these garment factories are
exporting their products with the cutting, making and packaging (CMP) system. “We are not able to export our products with the Free-On-Board (FOB) system. Presently, we are
trying to get tax exemption for the FOB system. We are discussing this with the US Government to get some tax relief on the products exported with the CMP system because the garment industry was not
included in the reinstatement of the Generalized Scheme of Preferences (GSP),” averred U Myint Soe, Chairman,MGEA. Cottonwear, in the US, is taxed at 10 to 12 per cent and nylonwear is taxed at 37 per cent. The Government collects 6 to 15 per cent tax on FOB system products. The association, therefore, has submitted a proposal to Ministry of Commerce and Ministry of Planning and Finance to get tax exemption for products exported with FOB system. It is worth noting that the country’s garment industry earns around 10 per cent of a garment’s value. Currently, 33 per cent of local garment production is exported to Japan, 25 per cent to South Korea, 2.4 per cent to the US and 2.4 per cent to China.
WORLD WRAP
Qatar’s diplomatic rift leaves the fashion industry in a fix WHAT DOES THE NEW TURN OF POLITICAL EVENTS MEAN FOR THIS INDUSTRY...?
Continuously as Qatar’s travel restrictions increase and stock market tumbles, the future of the US $ 1.3 billion fashion market is still in the dark. Notjustbeingafavourable retail destination, many luxury European Houses are backed by Qatari funds, such as Balmain, the Paris fashion house, which has been acquiredby Mayhoola, which also owns Valentino, highlighting the Middle Eastern investor’s appetite for luxury. The affluent oil-rich residents of the Gulf State have always showcased a huge demand for European luxury, with Qatar having the highest per capita gross domestic product in the world. But the political restriction looms on its future surely for fashion!
s the US $ 1.8 billion Doha Festival City retail development opened in April this year, promising to lure both foreign investments and tourists to the country, little was it known that the country would be the subject of various embargoes. As far as the recent events are concerned, the foreign investors and tourists alike will not be coming down to Qatar due to a new diplomatic fallout, wherein Saudi Arabia, Bahrain, the UAE, Egypt and Yemen have cut ties with Qatar, suspending all land, air and sea travel to and from the country, causing Qatar’s stock market to plummet. This was due to the news impugning that the Qatari Government is paying blacklisted Al-Qaeda affiliates and Iranian security officials up to US $ 1 billion ransom in return for the release of members of its royal family who were captured in Iraq. This latest rift is one in the many that Qatar and its GCC (Gulf Cooperation Council)
A
neighbours have seen over the years but the imposing economic sanctions this time have raised alarm about what this really could mean for the Qatari market and how it will affect the luxury goods industry.
Despite its small size, Qatar has heavily invested in the global luxury sector as the wealth fund – Qatar Investment Authority – is the owner of department store Harrods, while state-backed conglomerate Mayhoola has significant stakes in brands including Valentino, Anya Hindmarch and Balmain and most recently, it was rumoured to be eyeing Jimmy Choo as a potential acquisition target. But apart from the foreign investment and the markets they serve, its domestic businesses in Qatar itself are more vulnerable due to this political fallout. The recent political situation in Qatar may just not only affect the domestic business and retailers but also the tourists
spending as well due to various travel restrictions to the Arabian country.
Impact: Tourist Spending If the situation continues or worsens, then Qatar’s tourism industry which leads to tourists spending on luxury retail goods could suffer a severe impact. While the travel ban has affected Qatar Airways flights, its real implications for consumers in Qatar, are still unclear. Despite the Arabian country being home to luxury brands such as Prada, Dolce &Gabanna, Gucci, etc. it is far less a global destination against the likes of Dubai, a point that is reiterated by Euromonitor International, and for whom Qatar’s luxury market is smaller than most other countries in the Gulf. But this has to change as the country will play host to the 2022 FIFA World Cup and therefore, much of the country’s retail development is scheduled to open just before the sports event, which is expected to bring in a million visitors. According to the Real estate firm DTZ, Qatar’s retail space will grow by 220 per cent by 2019. This is evidentas
last December saw the opening of the 5,00,000 square metre Mall of Qatar, the nation’s 15th major retail complex, whereas other retail developments such as the US $ 290 million North Gate Mall, the 57,605 square metre Marina Mall and the outdoor Katara Mall, which will house Qatar’s first Galeries Lafayette, are underway.
Impact: Domestic Market As per Euromonitor International, Qatar’s apparel and footwear market was worth US $ 1.3 billion in 2015 and it is forecast to grow by 51 per cent by 2019. Another emerging intelligence firm BMI Research expects consumer spending in Qatar to grow by 3.2 per cent in real terms in 2017, which will see consumer spending levels in the country to reach US $ 31 billion. But the concern is rather to do with logistics, as a few fashion and luxury brands distribute to Qatar via UAE, where they have partnerships with Dubai-based operators and Qatari local brand partners to Doha, who also import from Europe via the UAE. But BMI maintains that the ‘gasexporting Qatar’ still has huge fiscal
Qatar’s luxury market is smaller than most other countries in the Gulf. But this is to change as the country will play host to the 2022 FIFA World Cup and therefore, much of the country’s retail development is scheduled to open just before the sports event, which is expected to bring in a million visitors.
buffers and mainly trades outside the sub-region, meaning its overall economic stability is not under direct threat from the cooling of GCC ties. But the economic impact of the political situation that Qatar is facing still remains to be seen.
What do we expect in days from now? With an already subtle political situation and various counter measures being taken to resolve the same, it’s still unclear what the future holds for Qatar. Though Saudi Arabia and its partners have escalated matters with Qatar significantly, it will take some more time for matters to fizzle down before they come to a consensus. But both Qatar and Saudi-led GCC members will need to find a common ground for these grievances which would result in a negative economic ramification for Qatar. It remains to be seen how the Gulf Crisis will be resolved, or if doesn’t then what it would mean for Qatar, which was being considered a new ‘fashion heaven’ for international luxury brands…?
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US teen retailer ‘Papaya' files for bankruptcy
Gerry Weber's retail head quits
Teen apparel retailer, Papaya Clothing, owned by Cornerstone Apparel Inc., has become the latest teen fashion retailer to file for bankruptcy protection in the US. It has now joined the list of the other 11 mall-based chain stores such as American Apparel, Wet Seal, Sports Authority and PacSun that went bankrupt in the first half of 2017.
The company, which expanded rapidly and opened around 50 of its 80 stores in the last six years, found itself with inadequate funds to address all its financial obligations. “The expansion efforts took a heavy financial toll on the retail business operations of Papaya as it racked up construction and operating costs,” said Tae Yi, President and Chief Financial Officer of the company. In addition, the dwindling store sales, as an outcome of a general industry-wide switch in consumer buying preferences from ‘in-store’ to ‘online shopping’ and the increased competition from the e-commerce sector, forced the fashion company to file for bankruptcy. It is pertinent to mention here that Papaya fetched more than US $ 134 million in sales last year and is eager to operate as a retail company instead of using bankruptcy (protection) to become a wholesale apparel company or an intellectual property licensor, the media reports claim. It has already closed 22 of its operational stores and further seeks support from the court to exit tenancies for 8 more stores. The shuttering of stores will also lead to job loss for around 1,300 employees, who are currently employed at Papaya.
Norbert Steinke, Chief Retail Officer of Gerry Weber and Hallhuber, has resigned from his post with immediate effect. The 56-year-old opted to resign due to personal reasons. He had also been a Management Board Member since October 2015 after Gerry Weber acquired the Hallhuber business a year earlier. His retail responsibilities will now be shared by the remaining two board members – Group CEO Ralf Weber
and CFO Dr. David Frink, on an interim basis. It may be noted that the fashion brand’s retail business declined in terms of its sales revenues for the first half of fiscal year ending April 30, 2017. The retail segment generated Euros 192.3 million in revenues and the wholesale segment recorded revenues of Euros 142.6 million in the first half.
Zalando, BESTSELLER ink JV Zalando and BESTSELLER UNITED have entered into a joint venture for FashionTrade.com, which is at the forefront of digitizing fashion wholesale using digital innovation and optimization to improve everyday working processes that maximize customer profits. The company provides a global B2B fashion marketplace where brands and retailers can connect, trade and grow their businesses through empowered buying and smarter selling. The company was founded in 2015 by BESTSELLER UNITED on the back of learnings gained from BESTSELLER. Zalando enters into the joint venture with a capital increase at FashionTrade, providing the company with funds to accelerate its growth, and the future ownership will be equally shared between BESTSELLER UNITED and Zalando.
“Digitizing the wholesale experience and connecting brands and retailers in a simple online solution holds a great potential for the future of B2B fashion. That’s why we are pleased to welcome Zalando and their expertise into this partnership which we expect will bring beneficial insights to brands and retailers alike,” said Anders Holch Povlsen, Owner of BESTSELLER UNITED.
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NIKE clocks US $ 1 billion net income in Q4 American sportswear company, NIKE Inc., has reported financial results for the fourth quarter and full year ending May 31, 2017. During the period under review, international geographies and the Direct-to-Consumer (DTC) businesses globally led strong revenue growth for the retailer. The retailer noted 5 per cent increase in fourth quarter revenue to US $ 8.7 billion, up 7 per cent on a currency-neutral basis. “NIKE continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth. Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. It will be a big year for NIKE innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world,” said Mark Parker, Chairman, President and CEO, NIKE Inc.
“…It will be a big year for NIKE innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world.”
driven by double-digit growth in Western Europe, Greater China and the Emerging Markets and a strong growth in Sportswear and Running. Revenues from the Converse brand stood at US $ 554 million, up 10 per cent on a currency-neutral basis, primarily driven by the market transition in Italy and growth in DTC, the company said.
During the period, revenues for the NIKE brand were US $ 8.1 billion,
–Mark Parker, Chairman, President andCEO, NIKE Inc.
Net income for the quarter increased 19 per cent to US
$ 1.0 billion due to global revenue growth, lower selling and administrative expense and a lower tax rate which were slightly offset by a gross margin decline. Revenues for NIKE Inc. in fiscal 2017 zoomed 6 per cent to US $ 34.4 billion, up 8 per cent on a currency-neutral basis. Net income during the year increased by 13 per cent to US $ 4.2 billion.
Under Armour names Patrik Frisk as President & COO Sportswear brand Under Armour Inc. has announced appointment of Patrik Frisk as its new President &Chief Operating Officer (COO). In conjunction with Frisk’s appointment, the company has also announced strategic executive changes to align its organizational structure to better leverage its digital business, support its move toward category management, and drive greater operational efficiency across the organization.
As President &COO of Under Armour, Frisk will have the responsibility for the company’s go-to-market strategy and the successful execution of its longterm growth plan. “Patrik’s global experience in brand building, including a proven and disciplined record of driving growth, while enhancing profitability and efficiency, will be instrumental as we work to transform our business model to deliver long-term value for our consumers, customers and shareholders,” said Chairman
&Chief Executive Officer Kevin Plank, adding, “The opportunity to leverage our strengths – innovative products, brand strength, premium sports marketing assets and unparalleled consumer connections – within an increasingly more digital ecosystem has never been greater.” Frisk has nearly 30 years’ experience in the apparel, footwear and retail industry. Most recently, he was CEO of The ALDO Group, a global footwear and accessories company.
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Kohl's brings new CFO on board American department store chain, Kohl’s, has tapped Bruce H. Besanko as the new Chief Financial Officer of the company and will be responsible for overseeing Kohl’s financial planning and analysis, investor relations, financial reporting, accounting operations, tax, treasury, nonmerchandise purchasing, credit and capital investment strategies. “We’re excited to have Bruce join our team and believe that his breadth of experience will be of great value to Kohl’s as we continue to build our path forward,” said Kevin Mansell, CEO and President, Kohl’s. With more than 21 years of financial leadership experience in retail, Bruce has great insights on how to help organizations move with the speed and agility that business
Dollar General Corporation, an American chain of variety stores headquartered at Tennessee, hasannounced appointment of Carman Wenkoff as Executive Vice President and Chief Information Officer (CIO). requires, while maintaining a financial framework of operational excellence. He also held various financial leadership roles in Supervalu and OfficeMax. Another interesting fact about Bruce is that he has served 26 years in the US Air Force where he rose to the rank of LieutenantColonel.
“I have admired Kohl’s business model for years and am enthusiastic about the future the company is creating, really differentiating itself as a bright spot in retail. Kohl’s has an excellent reputation in the financial community and I look forward to joining the company,” stated Bruce.
Nordstrom Rack to open in Wisconsin (US) Nordstrom, US-based leading fashion specialty retailer has announced to open a Nordstrom Rack store at Bayshore Town Center in Glendale, Wisconsin, USA. The approximately 26,800 square-foot store is scheduled to open in fall next year. The new Nordstrom Rack location will anchor the redeveloped north
Dollar General names new EVP & CIO
end of the project which will also feature a new mall entry, expanded convenient parking and other retail space. Nordstrom Rack will join existing retailers such as H&M, Ulta Beauty, iPic Cineplex, Trader Joe’s and Kohl’s. “We look forward to opening a store at Bayshore Town Center – a more convenient location
for our customers in the North Shore area. We’re excited to bring customers here, the great brands at great prices that they’ve come to expect when we open our doors in 2018,” said Karen McKibbin, President of Nordstrom Rack. This will be the second Nordstrom Rack store in the Milwaukee area. The company also operates a full-line store at Mayfair Mall.
Nordstrom Rack is the off-price retail division of Nordstrom Inc., offering customers a wide selection of on-trend apparel, accessories and shoes at an everyday savings of 30-70 per cent off on regular prices.
He will replace current CIO Ryan Boone, who recently announced his retirement. Wenkoff brings a broad range of experience to DollarGeneral with success in implementing digital strategies and payment and loyalty solutions at the retail level. Commenting on his appointment, Todd Vasos,Dollar General’s Chief Executive Officer said, “I am excited to have someone with Carman’s experience and digital expertise to be joining our teamto lead this important part of the business. We continue to focus on enhancingour digital presence and meeting our customers when and how they decide to engage withus. I’m confident about Carman’s vision. We will continue to strengthen these efforts as well as leverage technology to improve our processes, lower costs and drive abetter customer experience.” Wenkoff most recently served as Chief Information Officer and Chief Digital Officer for Subway restaurants, where under his leadership, the Information Technology (IT) team created an innovative digital marketing platform and point-of-sale system, and many other integrated store technology solutions to help increase sales andprofitability.
RESOURCE CENTRE
DCC geared up to help the industry reach US $ 50 billion target Company’s Country Manager underlines its exceptional initiatives to support the industry in its growth journey
rinting plays an important role in value addition, and as
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Bangladesh gears up to achieve the magic figure of US $ 50 billion by 2021 in apparel exports, value addition is going to be one of the key contributing factors. Country Manager of Bangladesh’s first and only integrated printing solutions provider – DCC Print Vision LLP, H NAshiqur Rahman, speaks to Apparel Online underlining his company’s initiatives to help the industry achieve this longcherished dream to befittingly commemorate the country’s 50 years of Independence. “Last year, garment export was worth around US $ 28 billion, and to reach the target of US $ 50 billion, the industry would have to almost double the exports, either in terms of volume or value. Honestly speaking, doubling up volume seems impossible! A concerted effort at value addition (to command better price points) alongside volume increase would perhaps be the best shot at reaching the US $ 50 billion landmark,” explains Ashiq, stressing that Bangladesh’s absolute reliance on foreign nations to get value addition through prints, is cutting into the profit margins of the garment exporters. “If they can do the same in Bangladesh, it would yield better margins. And this is what DCC is helping them achieve,” he reasons with a futuristic view. Headquartered in India, DCC offers an entire range of printers – screen, digital and sublimation – with the aim to make printing technology available and also let all the levels of the industry be aware about their knowhow to increase the focus on value addition. The company’s customized solutions in software (‘Wasatch’ – considered one of the best in the world), and hardware (zero-maintenance heat press machines from Monti Antonio, Italy,
H N Ashiqur Rahman, Country Manager –DCC Print Vision LLP
sublimation printer from Epson, etc.), have enabled DCC to already get the desired industry attention. “In Bangladesh, I did not see a single company working towards integration of the printing process, which is an amalgamation of diverse but critical aspects. We are the first to join all the dots to offer the best possible solutions,” underlines Ashiq confidently. Ashiq’s long-standing association with the apparel industry in his more than a decade-old career in diverse roles for various companies has made DCC get an incisive reach in the industry. Christened as an ‘Xperience Zone’ and spread over 4000 square feet in the heart of Dhaka, DCC has come up with its first ever showroom offering complete solution/support as far as printing is concerned, be it certified training, complete range of raw materials, machines and design development support for the entire supply chain from fabrics to garments. “We are helping to train the manpower with requisite skills along with rendering free sampling facility. Using our services and people trained by us, many manufacturers have already bagged
QUOTE “Last year garment export was worth around US $ 28 billion, and to reach the target of US $ 50 billion, the industry would have to almost double the exports, either in terms of volume or value. Honestly speaking, doubling up volume seems impossible! A concerted effort at value addition (to command better price points) alongside volume increase would perhaps be the best shot at reaching the US $ 50 billion landmark.” – H N Ashiqur Rahman, Country Manager – DCC Print Vision LLP
decent orders from the prospective clients, which is slowly but surely building the trust factor,” underlines the Bangladesh Country Manager of DCC. The company has signed a Memorandum of Understanding with BGMEA under which people trained by DCC are awarded certificates by the Center of Excellence for Bangladesh Apparel Industry (CEBAI) – an institute for skill development under the joint initiative of ILO and BGMEA and funded by H&M, and Swedish International Development Cooperation Agency (SIDA), with a view to establish a replicable model of industry-driven training and support services. This, along with DCC’s excellent services, has helped significantly increase the company’s acceptance not only amongst the garment manufacturers but also the buying houses, a vital cog of the apparel industry credited with earning valuable foreign currency through substantial overseas orders. “We are soon going to organize a seminar for the buying houses to make them aware of our services and offerings. Earlier they would not place orders with local manufacturers for value-added items… But with the coming of DCC, things are changing,” claims Ashiq. The overwhelming enquiries (currently numbering around 50-60) from all the big players in the industry, is a testament to Ashiq’s claims. “We are still in the process of educating the customers, but enquiry about materialization percentage is very good, surpassing even our expectations,” Ashiq states, confident of putting up an excellent performance in the coming days, which stems from the company’s unique services and solutions under one roof; including modern printing technologies, inks and consumables, software, service support, tech consulting, hands-on training and application support.
A&E Sustainability Report: 2016-2017
INDUSTRY TRANSPARENCY, TRACEABILITY AND TRUST AT THE CORE merican & Efird (A&E) has been among the frontrunners of sustainability over the years, and its various processes and products imbibe by the rule. The company has taken its position as one of the world’s leading manufacturers and distributors of industrial and consumer sewing thread, embroidery thread and technical textiles, all backed by a firm commitment to sustainable practices to create a better world through responsible corporate actions, environmentally protective efforts and numerous contributions to the communities in which it operates.
A
The recently released Corporate Sustainability Report for the period 2016-2017, reflects the three concepts that drive A&E’s industryleading sustainability programme: Transparency, Traceability and Trust, while highlighting A&E’s accomplishments in the areas of safety, environmental sustainability and
This year’s notable sustainability highlights include: Water Conservation •
•
•
Over 1.1 billion litre of wastewater has been recycled and reused since 2013. Nearly 1 million litre of wastewater is recycled and reused each day of operation. 41% reduction in global water consumption (litres per kg of thread) has been seen since 2006
Solid Waste •
Zero-Waste-to-Landfill status has grown to 16 global manufacturing operations and support facilities in 2017, with 5 other operations over the 91 percentile mark. A&E’s global goal is to achieve this sustainability designation in every manufacturing operation worldwide.
Carbon Footprint and Energy Conservation •
•
•
Les Miller, CEO, A&E
6% reduction of global carbon footprint (CO2e in kg per kg of thread) since 2006. 44% of the fuels used to create steam at A&E dyeing operations were renewable and carbon neutral in 2016. 10% reduction in global power consumption (kWh per kg of thread) since 2006.
corporate social responsibility. With Asia accounting for a major chunk of its business today, many of the company’s production units are in countries like China, India and Bangladesh. A&E’s continued improvements, specifically in global water reduction and Zero-Waste-to-Landfill efforts, serve as an example of leadership and good stewardship throughout the textile industry. “A core part of our business strategy is to operate all of our global facilities in a sustainable manner,” said Les Miller, CEO, A&E, and added, “It is not only a good business practice to do so, but it is the right thing to do for all of our stakeholders.” Since 2011, A&E invested over US $ 10 million into state-of-the-art wastewater recycling systems across the world and these investments have paid off through significant reductions in water use. A&E continues to focus on energy conservation and has increased its use of biofuels and clean fuels, resulting in reduction in greenhouse gas emissions. In addition, A&E has grown its number of global operations and support facilities to 16 in achieving Zero-Wasteto-Landfill status. The company regularly evaluates all of the global yarn spinning, dyeing and finishing facilities in which it has ownership to provide the information contained in its annual sustainability report. Categories measured in this report include: Water Stewardship, Solid Waste, Carbon Footprint and Energy Conservation, Product Stewardship, Social Responsibility, Employee Health and Safety, Sustainable Products and Areas of Improvement. In 2016, A&E developed and implemented its Product RSL Environmental Profile (PREP) form in order to collect Restricted Substance List and environmental data on all dyes and chemicals used by its operations. A&E is on track to comply with the chemical restrictions contained in the Zero Discharge of Hazardous Compounds (ZDHC) Programme by the end of 2018.
Java Paper Group
SERVING INDUSTRY WITH QUALITY AND SUSTAINABLE PACKAGING AND ALLIED SOLUTIONS Vaibhav Boricha, Sales Manager, Java Paper Group
Almost 4 decades old, Java Paper Group, Mumbai, a speciality supplier of high quality paper and paperboard solutions, targets market segments with a focus on innovation, efficiency and stupendous services. The group is an intermediary linking prestigious mills, printers, merchants and converters around the globe. With an extensive focus on catering to its customers’ each requirement and ensuring exceptional end-toend customer service, it represents a variety of Indian (ITC Paper Mills etc.) as well as European mills such as Iggesund Paperboard, Zanders GmbH, Cham Paper Group, etc. Being a facilitator, it provides support by guidingits clients about what would be the best suited product for them. The company’s expertise involves packaging boards, container boards, flexible packaging, tags & labels, graphics and paper publishing. Apart from clients like H&M, Zara, s.Oliver etc., its customers also include multinationals like SML, r-pac and Avery Dennison to name a few. Apparel Online had a candid discussion with Vaibhav Boricha, Sales Manager of the Group, about various aspects of this segment and the Group’s strategy.
A
ccording to Vaibhav, quality is the top priority for Java Paper Group
as it is given the highest importance in the paper and paperboard industry depending on various end uses. Like for mono-carton, packaging parameters which are considered are the grammage of the board, stiffness, thickness, whiteness, strength and surface properties. Also, the type of pulp used depending on the quality of the carton required is considered. For tags too, there are several criteria to be checked such as if the board is one-side coated, both sides coated or uncoated, the shade of the board, texture of the board and also the feel of the board. Many brands also evaluate if the board chosen comes from sustainably managed forests and therefore look for certifications like FSC/PEFC. Java Paper Group fulfils all quality parameters and its papers and boards come from sustainably managed forests as the organization is FSC certified for
The company offers a wide variety of choices of one-side coated (C1S), two-side coated (C2S), uncoated (C0S), various textures and colours in its entire product range
the past eight years to support this cause. Quality is also directly correlated with price. Vaibhav briefs, “Whilst costcompetitiveness will remain extremely relevant, the label and packaging which represent the brands’ quality and their positioning in the market will also carry equal importance. Packaging and labels are engagements with your customer. The proof is in the millions of unboxing videos online, which are very crucial for a brand, especially if you are a luxury brand. Good quality and interesting packaging will not only create an excellent image about your brand but also will make the customers sharing this on various social media, act as your endorsements helping in free publicity.” As far as the company’s offerings are concerned, it covers a wide range of choices of one-side coated (C1S), two-side coated (C2S), uncoated (C0S), various textures and colours in its entire product range. Not to be denied that the majority of the industry’s paper tags are chosen from the former three types of paper. Some brands prefer the specialty variants like the latter two types. As packaging materials are ever evolving, Vaibhav observes a changing trend of shifting from plastic materials to more sustainable choices like paper and paperboard with natural look and feel. Paper, being renewable, reusable, recyclable and biodegradable, has become the ideal choice for this purpose. It too has a new launch, ZanPack Touch, which is a premium uncoated board in a pure white shade. The C0S board has a natural and tactile surface ideal for garment tags.
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Automation in Sewing Room – I
Button Sewing & Buttonholing Indexer Both quality and productivity improvement are the driving forces for accelerating the growth of factories. While some factories specialize in manufacturing of a particular product category and thus require specialized machineries with maximum level of mechanization, companies involved in manufacturing of multi-product categories look for flexibility in the machinery which will accommodate multiple products with least set-up time. Handling of fabric with precision is one of the biggest challenges of automation in garment sewing; and while the sewing and unloading of garment are now completely automated without any human intervention, most of the sewing automats still require manual loading by the operator that entails picking up one ply of fabric component(s) by one/two hand/ hands, placing/aligning/folding/matching and sliding below the presser foot. Ironically, training people for loading in an automated system is a challenge. In this new series – Automation in Sewing Room – Dr. Prabir Jana, NIFT Delhi, along with Team StitchWorld, analyses how the common sewing automats work for your benefit.
raditionally, preparations of pieces (marking of positions by
T
chalk) for buttonholing and button sewing are manual, cumbersome, and prone to error and time taking. Different kinds of issues would arise at the final stage like misalignment of buttons, visible marks, etc. which would result in rejects, spotwashing and reworks, but with the development of technology, different types of sewing automats have come into button sewing and buttonhole making machines in the market. The Brother BAS series of button sewing and buttonholing indexers were introduced as early as the nineties, but probably timing was too premature for the Asian manufacturers to adopt the technology. In recent times, Juki, Zoje, Sakho, Yuho and Duerkopp Adler, have all launched button sewing and buttonholing indexers for men’s shirts, ladies blouses, etc. These automatic machines carry various advantages over conventional buttonholing and button making machines like
reduction of manufacturing time due to reduced sewing cycle time, reduction of defects due to increased accuracy and reduction of helpers which were previously required to mark positioning of buttons and buttonholes. The positioning accuracy achieved by the machine cannot be matched manually. Operating time is also considerably reduced because it is almost as good as an automatic robot doing the work by itself and there is lesser waiting time since one operator can operate two to three machines simultaneously. The automation in sewing is increased up to 50 per cent as the operator doesn’t have to align the garment panel repeatedly or mark the panel for stitching. Nowadays, manufacturers prefer lockstitch buttonholing and button sewing indexers over chainstitch ones because of demand of more seam security in garments by the buyers.
To understand which technology better suits different needs, detailed
ESSENTIALS The button sewing and buttonholing indexer attachment from Sakho (Loiva) enables the pressing and folding of a shirt on the same station, reducing the space requirements on the shopfloor. This equipment is suitable for companies handling loworder quantities and also having space constraints.
information about operating methods of buttonhole and button indexers in conjunction with advantages and special features of various options available in the market is elaborated here.
Technology behind Buttonholing and Button Sewing Indexers A typical button indexer unit is equipped with a sewing head, directdrive motor, preset board, and three sub-clamp catch plates and in some machines with a long holder called carriage, cloth plate, adjuster gauge, carriage and a stacker to dispose sewn shirt front. Below stated are the advantages of distinguishing features present in various machines which result in enhanced productivity, efficiency and quality of the machine. • Available in the indexers from Duerkopp Adler and Juki, the preset mechanism allows the operator to place the subsequent garment piece on the preset
The positioning accuracy achieved by the machine cannot be matched manually. Operating time is also considerably reduced because it is almost as good as an automatic robot doing the work by itself, and there is also lesser waiting time since one operator can operate two to three machines simultaneously.
board while the sewing machine is still engaged in the sewing of the current garment piece. Consequently, the operator can now use his/her waiting time effectively during operation to achieve increased productivity. • Sub Clamp Device automatically brings the subsequent shirt front panel to the sewing position after the buttonholing of the current panel to allow the sewing machine to immediately start the next buttonholing. This function works effectively, especially in cases where the operator is operating two or more sewing machines or is carrying out other works simultaneously. The device is available in button indexers from Duerkopp Adler and Juki. • Cloth Edge Sensor is a device for detecting the material edge (the collar side). Even if the operator fails to correctly position the material on the sewing machine, the cloth edge sensor detects the material edge (the collar side) to keep the distance from the upper edge of the material to the first buttonhole at a preset distance. This feature is used in combination with the Conveyor Belt System for smoothly moving the fabric in the direction of the sewing head, like in case of the buttonhole indexers from GTN and Juki, the apparatus avoids any kind of fabric damage. • Automatic Vacuum System is used for fixing the position of the shirt front panels while sewing, which ensures that no buttonhole is positioned inappropriately. Present in buttonholing indexers
from Duerkopp Adler and button sewing indexers from Yuho, it helps in improving finished product quality and productivity by further deskilling the operation. In addition to all the above features, the button sewing indexers have a button feeder attachment and movable adjuster at one end to slide the fabric according to button placements and button detection system for automatically calculating the distances of each button and buttonhole from the top button position. Apart from this, stitch length and stitch density regulation, point to point stitching and firm material holding add up to the functionality of these machines.
Class 841 Buttonholing indexer from Duerkopp Adler helps in faster buttonholing
Method of Working: Buttonholing & Button Sewing Indexers Any automated sewing unit is called so because of automating any of the three processes of pick, sew and dispose. In case of buttonholing indexers, the operator is only required to place the shirt front panel parallel to the adjuster clamp, which fixes the neckline of front panel with the help of two sub clamp catch plates. Similarly, the bottom edge of the front panel is fixed and aligned via the same mechanism. After the placement is complete, the sewing head automatically stitches the buttonholes at preset positions with the help of a belt conveyor fixed in the machine which keeps on feeding the fabric and making buttonholes adjusting
Juki AC-172N-1790 Buttonhole indexer with pre-set mechanism, sub-clamp device and cloth edgesensor
Buttonhole indexer from Yuho carrying advantage of button feeder for quick attaching
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Table 1.1: Total cycle time of different buttonhole indexers along with ordinary buttonholing cycle time Serial Machine Type No.
MachineModel
Pick the Buttonholi piece (in ng (insecs) secs)
Dispos e (in secs)
TotalTime (insecs)
21 (for 6)
3
41
Actual Time per buttonh ole (in secs) 6.83
1.
GTN
GTN1054BHVJ
17
2.
DuerkoppAdler Class841 buttonholeIndexer
9
32 (for 7)
2
43
6.14
3.
Zoje
ZJ-ACF-S-5780
4.
Juki
AC-172N-1790
5
9(for3)
1
15
5
4
20(for5)
3
27
5.4
5.
Sakho Ordinarybuttonholingmachine
SA-5800BH
6
26(for6)
5
37
6.16
540-100
4
36 (for 5 withmanual positioning)
4
44
8.8
Table 1.2: Improvement in buttonhole indexers with respect to ordinary buttonholing machine in percentage with respectof actualsewing time,total cycle time,averageproduction per hour and shirt completedper hour Serial Machine Type No.
Machine Model
%improvement in actual sewingtime
% improvement in total cycle time
Average Production per hr in terms of no. of button-holes made
Shirts completed/ hr with 6 buttonholes
1.
GTN
GTN1054BHVJ
51.3%
22.3%
458
76
2.
Duerkopp Adler buttonholeIndexer
Class841
36.5%
30.1%
509
85
3.
Zoje
ZJACF-S-5780
58.33%
43.1%
626
104
4.
Juki
AC-172N-1790
44.44%
38.63%
579
96
5.
Sakho
SA-5800BH
39.81%
29.92%
507
84
Table 1.3: Total cycle time of different button sewing indexers along with ordinary button sewing cycle time Serial No.
Machine Type
Machine Model
Pick the piece (in seconds)
Buttonholing (inseconds)
Dispose (in seconds)
Total Time (in seconds)
Actual Time perbuttonhole (inseconds)
1.
Yuho
U-2607-LK
4
17 (for 5)
5
26
5.2
2.
GTN
GTN1054BSB
6
11 (for 6)
4
21
3.5
3.
Sakho
SA5800BS
8
14 (for 6)
3
25
4.16
Ordinary button sewingmachine
MB-372
2
30 (for 6 withmanual positioning)
5
37
6.16
Table 1.4: Improvement in button sewing indexers with respect to ordinary button sewing machine in percentage with respect of actual sewing time, total cycle time, average production per hour and shirt completedperhour Serial No.
Machine Type
Machine Model
1.
YuhoButton indexer
U-2607-LK
2.
GTNbutton indexer
GTN-1054BSB
3. Sakho button index er
SA-5800-BS
%improvement in actual sewingtime
% improvement intotal cycletime
Average Production per hour in terms of buttons stitched
Shirts completed per hour with 6 button placements
32%
15.6%
602
100
63.4%
43.2%
894
149
53.33%
32.43%
751
125
GTN Buttonhole indexer with automatic stacker to keep pieces aside with Juki sewing head
the distance on the front placket of the shirt. After the buttonholes have been sewn, the shirt front slips towards the back of the machine with the help of third sub clamp catch plate and an automatic stacker comes from back of the machine to catch the piece over it and place it on a stand. This synchronization of the adjuster clamp, belt conveyor and stacker is made possible with the help of the touch screen control panel, in which the parameters of stitch density, stitch length, buttonhole length and fixing distance between buttonholes are defined before commencing operations of the machine. All the above automations work exactly in the same manner in case of button sewing indexers, except that buttons are fed by a button feeder which keeps delivering buttons to the sub clamp for placement of the sewing head.
Benefits of installing Buttonholing Indexers Buttonholing indexers not only carry advantages like automatically and accurately sewing buttonhole in lockstitch mode but also having improved cycle time for sewing a buttonhole according to a recent time study done on different types of buttonhole indexers and ordinar y
ESSENTIALS Amongst the button sewing and buttonholing indexers, GTN and Zoje score above other manufacturers in terms of productivity and cycle time, hence can be used by manufacturers handling large quantities.
SA-5800BH from Sakho being used for buttonholing as well as ironing and folding
buttonhole making machines. Various findings came out regarding sewing cycle time which have been presented in Table 1.1. On the basis of the total cycle time values from pick to dispose which emerged for various buttonholing indexers, it was found out that there has been improvement in actual sewing time that is needle down time resulting in increase in average production. The percentage improvements have been summed up in Table 1.2.
Benefits of installing Button Sewing Indexers Apart from the benefits that buttons need not be placed by operator again and again for sewing, there has been cycle time improvement too which has been illustrated in Table 1.3. On the basis of the total cycle time, values from pick to dispose which emerged for various button sewing indexers, it was found out that there has been improvement in actual sewing time that is needle down time resulting in increase in average production. The percentage improvements have been summed up in Table 1.4. As one operator can operate more than one machine simultaneously,
specialized shirt manufacturing companies can really drive value out of these indexers with increase in productivity per operator. The laser light ensures no chalk marking, resulting in time saving during spotting; and the support clamp ensures pieces are arranged neatly and effectively, which saves time for the next operation. Ordinary process of buttoning and holing, once the shirt sewing is complete, incurs more handling time; but use of indexers will change the process flow to buttoning and holing being done before the shirt assembly, thus reducing crucial handling time.
Conclusion When buying a buttonhole or button sewing indexer, essential features which should be looked for are: cost of the machine; service offered by the sewing machine providers; preset mechanism for reducing operating time; stacker to carry the stitched pieces to reduce dispose time; and last but not the least, speed of the machine. The ability to handle diverse varieties of buttonholes as well as button sewing designs also plays a significant role since the automat should be able to sew different style variations without much modification in the machine.
GTN1054 Button sew indexer with machinehead of JUKI and electronic panel from GTN
Perma Core® Ultimate Poly-Wrapped Poly-Core Thread
Perma Core® Ultimate is a premium version of A&E’s core spun sewing thread manufactured with a continuous filament polyester core and polyester staple wrap specifically designed to reduce puckering and improve seam appearance in shirts and tailored clothing. A&E’s Perma Core® Ultimate delivers best in class seam performance and aesthetics while assisting in the reduction of thread derived causes of seam puckering. Perma Core® Ultimate has a very smooth thread surface contributing to a superior stitch and seam appearance. Perma Core® Ultimate is regularly used in the sewing of blazers and sport coats, dress pants, dress shirts, blouses, intimates, outerwear, suit and suit separates, workwear and uniforms among others.
As one of the world’s foremost manufacturers of sewing thread, embroidery thread and technical textiles, A&E’s global presence extends from Asia to Europe to the Americas. Our products are manufactured in 23 countries, distributed in 50 countries and sold in more than 100 countries.
American & Efird (Bangladesh) Ltd. Camellia Tower (Floor 4), Road 13, Plot 9, Sector 4, Uttara; Dhaka 1230, Bangladesh; Tel: +8802 7914850, 7814481, 7914564
Over 125 Years of Premium Products and Service www.amefird.com
TRADE STATISTICS
US continues to rebound in its apparel imports January-May 2017 Continuing the recovery, the US’s apparel imports witnessed positive trend in the 5th month of 2017 as well. The largest apparel importer in the world, noted hike in volume of imported apparel, whereas fall in unit prices in Vietnam, China and Bangladesh helped US rebound in value terms. Moreover, outlook for the US apparel industry is bright which might push this growth on a bigger level in the coming months.
‘Facts and Forecast’ for US Apparel Industry
Global Apparel Imports by the US: Jan.-May 2017
Total Increase in Quantity
2.54 %
USD
90,000
97 %
employees exist in US apparel
apparel sold in US are outsourced
61 average projected in men‘s shirts
Total Decrease in Value
1.32 %
Total global apparel imports by the US: Jan.-May 2017 (Qty in mn SME & Value in US mn $) Jan.-May2016
3.59 % MMF
2.25 %
10.36 % Silk & Veg
%Change
Qty
Value
Qty
Value
Qty
Value
4712.231
15342.914
4633.289
14792.755
-1.68
-3.59
Wool
42.392
792.097
39.22
710.072
-7.48
-10.36
MMF
5358.927
14134.109
5705.659
14452.328
6.47
2.25
173.534
812.092
170.004
717.104
-2.03
-11.70
10287.08
31081.21
10548.17
30672.26
2.54
-1.32
Cotton
Wool
Jan.-May2017
Type ofApparel
Change in Value Cotton
online retail sales in US in 2016
projected e-commerce turnover in apparel by 2020
women’s clothing store sales in US
3.64 % (Average UVR in the review period was US $ 2.91 as against US $ 3.02 in the same period last year)
90.3 bn
41 bn
Percentage Decrease in UVR
14 %
USD
USD
Silk & Veg Total
11.70 % Total apparel exports to the US by 6 major manufacturing destinations: Jan.-May 2017
Change in Quantity
(Qty in mn SME & Value in US mn $)
Jan.-May2016
Cotton
1.68 % MMF
6.47 %
Wool
7.48 % Silk & Veg
2.03 %
[The information has been extracted from US custom site and further analyzed.]
Jan.-May2017
%Change
Countries
India Bangladesh China Pakistan
SriLanka Vietnam
Qty
Value
Qty
Value
Qty
Value
491.774
1731.764
493.748
1701.434
0.40
-1.75
804.167
2264.161
799.44
2140.289
-0.59
-5.47
3761.067
9575.184
3951.314
9297.34
5.06
-2.90
222.421
499.887
209.136
491.802
-5.97
-1.62
205.289
861.994
192.529
811.693
-6.22
-5.84
1327.541
4188.045
1482.686
4479.231
11.69
6.95
Unit Value Realization (UVR) Trend from Top Apparel Exporters to US (January to May 2017)
Top 3 Quantity-wise Apparel Exporters to US (January to May 2017)
4.50
6%
4.00
4%
3.50
2%
3.00
0%
2.50 -2% 2.00 -4% 1.50 -6%
1.00
-8%
0.50
-10%
0.00 India
Bangladesh
China
Pakistan
Sri Lanka
Vietnam
UVR 16
3.52
2.82
2.55
2.25
4.20
3.15
UVR 17
3.45
2.68
2.35
2.35
4.22
3.02
-1.99%
-4.96%
-7.84%
4.44%
0.48%
-4.13%
% Change
US Apparel Imports General Customs Value and Y-o-Y % Change
US General Imports of Cotton (May 2017) General Customs Quantity and Y-o-Y % Change
8.00 7.00
10%
10%
910.00
5.26% 4.18%
8%
810.00
5%
710.00
0.88%
6.00
8.50%
6%
610.00
0%
0.32%
4%
510.00
5.00
2%
410.00
-5%
4.00
-0.30%
310.00
3.00
0%
-1.60%
210.00
-10%
-2%
-2.60% 110.00
-13.58% 2.00 Mar-17
Values (in US billion$)
Apr-17
-4%
10.00
-15%
Feb-17
Jan-17
Yarns
Fabrics
Made-ups
Apparels
May-17
Y-o-Y % Change
Quantity (in millionSME)
Y-o-Y % Change
Item-wise quantity increase/decrease in apparel imports by the US: Jan.-May 2017 (Qty in doz, legwear in dpr, babieswear in kg) Exportsto USA Total Imports byUSA APPAREL TYPE
China
India
Bangladesh
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
Babieswear
39,297,454
41,205,607
4.86
17,411,123
18,418,222
5.78
3,532,615
3,387,706
-4.10
4,325,237
Foundation Garments
24,869,891
26,411,736
6.20
13,959,284
14,019,673
0.43
752,579
682,114
-9.36
1,624,488
Jackets &Blazers
Vietnam %Change
2016
2017
%Change
4,032,563
-6.77
3,041,011
3,699,945
21.67
2,217,504
36.50
870,026
2,012,600
131.33
9,806,390
10,294,001
4.97
4,409,153
4,842,613
9.83
175,796
226,878
29.06
560,938
632,427
12.74
1,723,954
1,882,518
9.20
Ladies Blouses
25,814,934
25,508,940
-1.19
10,528,741
10,232,260
-2.82
4,046,000
3,700,082
-8.55
1,411,230
1,324,444
-6.15
3,472,336
3,961,543
14.09
Ladies Dresses
28,631,512
29,696,737
3.72
12,969,147
13,495,366
4.06
2,510,950
2,685,470
6.95
1,000,979
890,881
-11.00
5,066,378
5,722,258
12.95
7,978,819
6,509,689
-18.41
2,906,275
2,490,729
-14.30
440,055
359,276
-18.36
623,873
467,563
-25.05
1,608,372
1,423,378
-11.50
Ladies Skirts Legwear
124,049,021
127,631,541
2.89
72,536,112
80,598,191
11.11
1,071,400
1,274,709
18.98
61,622
12,540
-79.65
1,120,425
1,141,830
1.91
Men's Shirts
16,573,555
16,373,184
-1.21
3,382,389
3,334,396
-1.42
1,278,978
1,586,681
24.06
4,554,391
4,076,399
-10.50
1,939,411
1,957,712
0.94
Nightwear
15,764,171
16,340,548
3.66
8,993,533
9,227,383
2.60
1,284,654
1,243,902
-3.17
558,990
803,713
43.78
1,622,232
1,638,253
0.99
5,435,869
4,957,174
-8.81
2,515,928
2,442,669
-2.91
296,117
276,941
-6.48
148,174
51,590
-65.18
1,006,720
957,000
-4.94
Suits /Ensembles Sweaters
2,569,144
1,430,595
-44.32
1,911,566
959,311
-49.82
12,186
14,324
17.54
209,823
103,403
-50.72
66,387
61,446
-7.44
Trousers
122,154,560
126,711,776
3.73
33,243,905
35,445,458
6.62
2,648,558
2,522,157
-4.77
20,421,521
20,970,552
2.69
18,867,889
22,348,366
18.45
T-Shirts
232,537,174
229,728,769
-1.21
37,440,014
36,852,559
-1.57
10,746,014
11,116,241
3.45
9,115,584
8,721,532
-4.32
32,673,013
33,176,116
1.54
Undergarments
104,947,409
105,333,802
0.37
19,433,357
20,254,055
4.22
7,609,580
7,112,058
-6.54
11,277,710
11,892,384
5.45
16,362,549
18,531,341
13.25
Item-wise value increase/decrease in apparel imports by the US: Jan.-May 2017 (Value in US mn $) Exports to USA Total Imports byUSA APPAREL TYPE
2016
China
India
2017
%Change
2016
2017
Bangladesh
%Change
2016
2017
Vietnam
%Change
2016
2017
%Change
2016
2017
%Change
Babieswear
839.29
868.08
3.43
354.12
364.13
2.83
80.11
74.01
-7.62
75.26
89.05
18.32
75.17
89.37
18.88
Foundation Garments
1,122.57
1,164.35
3.72
535.06
487.28
-8.93
54.97
46.57
-15.29
33.40
52.05
55.87
44.69
127.63
185.60
Jackets &Blazers
1,484.62
1,505.47
1.40
555.48
592.32
6.63
28.73
28.89
0.59
82.80
87.67
5.89
301.59
306.39
1.59
Ladies Blouses
1,681.86
1,633.04
-2.90
633.18
590.76
-6.70
301.00
280.70
-6.74
78.71
71.86
-8.69
186.79
206.59
10.60
Ladies Dresses
2,376.74
2,342.47
-1.44
1,062.14
999.64
-5.88
222.17
237.09
6.72
36.04
32.75
-9.14
362.11
367.85
1.58
482.73
389.71
-19.27
161.89
133.60
-17.48
35.56
27.18
-23.56
27.09
21.22
-21.66
92.68
73.09
-21.13 -4.75
Ladies Skirts Legwear
699.33
713.83
2.07
385.23
404.48
5.00
7.02
7.38
5.12
0.67
0.07
-89.32
6.32
6.02
1,385.11
1,301.67
-6.02
308.67
279.49
-9.45
100.09
105.85
5.75
262.06
223.45
-14.73
155.77
155.52
-0.16
Nightwear
667.85
650.31
-2.63
373.68
357.90
-4.22
40.76
43.47
6.64
16.15
19.61
21.38
74.57
66.68
-10.59
Suits /Ensembles
538.07
480.79
-10.65
123.62
111.30
-9.97
28.92
32.04
10.76
9.15
4.65
-49.19
77.14
63.65
-17.49
Sweaters
272.66
229.11
-15.97
191.00
149.88
-21.53
0.96
0.90
-6.96
10.86
8.47
-21.97
1.96
4.58
134.00
Trousers
7,568.97
7,424.40
-1.91
1,850.79
1,800.89
-2.70
190.96
168.03
-12.01
1,132.90
1,087.95
-3.97
1117.12
1210.70
8.38
T-Shirts
7,953.55
7,898.91
-0.69
1530.753
1446.919
-5.48
423.534
428.79
1.24
230.16
213.96
-7.04
1235.91
1285.33
4.00
Undergarments
1,504.76
1,448.55
-3.74
293.93
315.70
7.41
126.36
119.22
-5.65
125.43
123.69
-1.39
208.14
218.45
4.95
Men's Shirts
EU’s apparel import plunges J a n u a r y to A p r i l 2 0 1 7 European Union witnessed tremendous decline in its clothing imports during January to April 2017 over a fall of the Sterling in the corresponding period last year, and a weak level of the Euro. Particularly, in April
2017, imports from China however surged, after unit prices of Chinese shipments sharply reduced.
‘Facts and Forecast’ for EU Apparel Industry
Global apparel imports by the European Union during January to April 2017
Total Decrease in Quantity
2.88%
€ 5 bn
€ 1200
Romania
value of menswear exports by EU in 2016
per person/ year spending in clothes in Luxembourg
2nd largest employer in EU’s T&C sector
1.67%
36 %
is average price/shirt in Europe
T&C companies in EU are SMEs
1.25% Percentage Increase in UVR
€ 22.5
99 %
Total Decrease in Value
share of womenswear in total EU’s apparel import
Apparel imports of the EU: Selected Countries (Qty in mnKg &Value in mn Euro) Jan.-Apr.2016
Jan.-Apr.2017
%Change
Country/Category Qty
Average UVR in Jan.-Apr. 2017 was Euro 18.69 per kg of fabric equivalent
Value
Qty
Value
Qty
Value
WORLD Knitted
791.97
12586.80
772.44
12575.03
-2.47
-0.09
Woven
660.28
14108.68
638.05
13786.55
-3.37
-2.28
1452.25
26695.48
1410.49
26361.58
-2.88
-1.25
Knitted
233.08
3559.95
231.18
3499.18
-0.82
-1.71
Woven
240.41
4648.17
226.66
4398.82
-5.72
-5.36
Total
473.49
8208.12
457.84
7898.00
-3.31
-3.78
Total CHINA
Change in Knitted Quantity
2.47%
Value
0.09%
Change in Woven
INDIA Knitted
55.73
950.31
57.10
964.94
2.46
1.54
Woven
41.48
1102.76
38.10
1008.19
-8.14
-8.58
Total
97.21
2053.07
95.20
1973.13
-2.06
-3.89
Knitted
228.82
2824.36
223.34
2912.06
-2.39
3.10
Woven
144.50
2399.24
143.39
2418.37
-0.77
0.80
Total
373.32
5223.60
366.73
5330.43
-1.76
2.05
Knitted
22.34
313.93
13.97
298.37
-37.48
-4.96
Woven
9.35
225.90
8.76
221.34
-6.38
-2.02
31.69
539.83
22.72
519.71
-28.30
-3.73
Knitted
31.27
336.85
33.18
380.45
6.10
12.94
Woven
33.60
486.11
35.00
486.11
4.15
0.00
Total
64.87
822.96
68.18
866.56
5.09
5.30
Knitted
12.46
274.89
14.43
300.22
15.75
9.22
Woven
28.39
670.68
26.10
673.75
-8.04
0.46
Total
40.85
945.56
40.53
973.97
-0.78
3.00
BANGLADESH
SRILANKA
Total
Quantity
3.37%
Value
2.28%
[The information has been extracted from EU custom site and further analyzed.]
PAKISTAN
VIETNAM
EU Apparel Imports (Month-wise Comparison)
UVR Trend from Top Asian Apparel Exporters to EU (January to April 2017)
General Customs Value and Y-o-Y Percentage Change
(UVR in Euro per kg of Fabric Equivalent)
8.00
6%
30.00
5%
4.13% 4%
4%
7.00
25.00 2% 3% 2.56%
6.00
0%
20.00 2%
-2% 5.00
1%
15.00
-4% 4.00
0%
-6%
-7%
10.00 -1%
-8% 3.00
5.00 -2%
-10%
-10.23% 2.00
-12%
Jan-17
Feb-17
Mar-17
Values (in Euro million)
-3%
0.00
Apr-17
Y-o-Y %Change
India
Bangladesh
China
Vietnam
UVR16
21.12
13.99
17.34
23.15
UVR17
20.73
14.53
17.25
24.03
%Change
-1.85%
3.86%
-0.52%
3.80%
Item-wise quantity increase/decrease in apparel imports by EU: Jan.-Apr. 2017 (Qty in mn kg) Exports to EU Total Imports byEU APPAREL TYPE
Babieswear Foundation Garments Jackets &Blazers Ladies Blouses Ladies Dresses Ladies Skirts Legwear Men's Shirts Nightwear Suits /Ensembles Sweaters Trousers T-Shirts Undergarments
China
India
Bangladesh
Vietnam
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
38.01 19.22
36.91 17.48
-2.89 -9.05
12.36 11.74
11.53 10.06
-6.69 -14.36
6.72 0.11
6.82 0.11
1.45 -0.38
10.31 2.16
10.64 2.05
3.20 -4.96
0.22 0.52
0.23 0.70
5.83 35.93
40.74 42.24 64.20 17.34 60.87 101.72 39.06 13.35 116.43 389.73 224.12 44.67
36.51 41.04 61.17 15.09 58.62 97.63 38.28 13.37 121.02 378.30 217.05 39.40
-10.38 -2.83 -4.72 -12.99 -3.69 -4.02 -1.98 0.16 3.94 -2.93 -3.16 -11.81
19.07 11.41 22.76 6.14 29.05 16.21 12.09 7.33 40.28 96.73 25.99 21.57
16.43 12.80 21.82 5.61 29.65 15.08 11.93 7.06 40.96 89.71 24.77 19.15
-13.81 12.17 -4.15 -8.69 2.06 -6.97 -1.34 -3.73 1.69 -7.26 -4.69 -11.21
1.02 9.37 9.73 1.54 0.69 9.45 8.32 0.64 3.30 15.36 18.68 3.05
0.91 8.61 9.06 1.25 0.72 9.15 8.63 0.71 3.62 15.55 19.28 2.71
-11.23 -8.17 -6.88 -18.34 4.42 -3.23 3.79 11.14 9.67 1.24 3.20 -11.42
4.13 5.71 7.82 2.83 0.60 42.58 7.38 0.93 31.80 124.16 108.22 7.61
3.43 5.56 8.28 2.57 0.56 40.54 6.03 1.21 32.80 123.07 105.06 6.07
-16.92 -2.55 5.98 -9.13 -6.44 -4.80 -18.37 29.45 3.15 -0.87 -2.93 -20.32
3.77 1.88 1.78 0.46 0.11 3.74 0.69 0.20 1.93 12.68 2.56 0.67
3.09 1.48 1.55 0.47 0.49 3.70 0.80 0.19 1.69 11.81 2.92 0.82
-17.99 -21.05 -13.07 3.04 334.31 -1.15 15.44 -6.80 -12.50 -6.93 14.07 22.85
Item-wise value increase/decrease in apparel imports by EU: Jan.-Apr. 2017 (Value in mn Euro) Exports to EU Total Imports byEU APPAREL TYPE
Babieswear Foundation Garments Jackets &Blazers Ladies Blouses Ladies Dresses Ladies Skirts Legwear Men's Shirts Nightwear Suits /Ensembles Sweaters Trousers T-Shirts Undergarments
China
India
Bangladesh
Vietnam
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
785.17
808.81
3.01
266.17
262.80
-1.27
147.66
155.72
5.46
186.01
203.93
9.63
6.55
7.15
%Change 9.08
677.01
665.69
-1.67
335.67
305.07
-9.12
6.14
6.56
6.85
71.31
72.35
1.46
29.04
38.54
32.72
1011.78 1266.19 1698.95 375.57 607.84 2071.00 457.65 258.07 2238.67 6521.81 3461.88 753.92
908.02 1237.72 1634.64 345.96 622.50 1991.12 457.70 241.94 2317.68 6368.96 3394.49 721.57
-10.26 -2.25 -3.79 -7.88 2.41 -3.86 0.01 -6.25 3.53 -2.34 -1.95 -4.29
419.64 333.73 625.95 120.81 208.21 341.12 118.38 96.55 871.33 1297.96 464.64 296.53
354.57 335.44 613.55 119.31 229.84 317.02 121.11 88.20 866.96 1180.30 434.58 279.39
-15.51 0.51 -1.98 -1.24 10.39 -7.06 2.30 -8.65 -0.50 -9.07 -6.47 -5.78
26.20 297.73 265.94 38.69 9.01 216.17 103.51 13.09 63.46 271.07 325.40 50.35
23.51 278.73 241.14 33.16 8.31 209.61 107.30 15.16 69.23 261.74 330.60 46.85
-10.28 -6.38 -9.32 -14.28 -7.75 -3.03 3.67 15.89 9.09 -3.44 1.60 -6.95
70.11 127.29 118.81 43.65 6.39 650.36 81.51 12.75 470.53 1775.13 1198.88 127.14
59.57 130.37 133.73 41.06 6.87 633.54 72.27 16.39 495.05 1791.08 1232.59 117.46
-15.03 2.42 12.56 -5.95 7.59 -2.59 -11.34 28.56 5.21 0.90 2.81 -7.61
83.88 37.27 40.85 10.31 1.85 96.28 7.58 3.78 37.89 246.25 56.23 18.47
73.39 34.71 34.67 10.20 3.39 95.85 5.73 3.93 37.16 245.36 53.48 24.39
-12.50 -6.88 -15.12 -1.09 83.66 -0.45 -24.38 3.96 -1.92 -0.36 -4.89 32.07
Canada Apparel Imports January-May 2017
Canada sees positive import value after months Outpacing the negative growth in apparel imports, Canada noted slight surge in import values during the first five months of 2017. The country, however, is less inclining towards woven apparel category which is continuously falling. The main reason behind this is the rising trend of athleisure among young population of the country indicating more consumers spending in knitted segment.
Canada Imports in Value
B’Desh Exports in Value
3.97%
0.59% While the knitted segment noted 1.68% surge, the woven segment saw negative growth of (-) 0.46% in value terms.
Bangladesh continued the down turning apparel exports to Canada as during the review period, knitted garment exports fell by (-) 0.84%, whereas woven segment decreased by (-) 6.11%.
Japan Apparel Imports January
to A p r i l 2 0 1 7
Japanese market picks up pace; apparel import gets strong boost The fall in unit prices, particularly in China and Bangladesh, boosted Japan’s apparel imports during the first 4 months of 2017. Good weather in the April month also sparked up the consumer’s outdoor activities, especially tourists, making them convinced to spend more in clothes. Meanwhile, aiming to achieve economic recovery and fiscal reconstruction, Prime Minister Shinzo Abe is regularly meeting with administration to prioritize the fiscal 2018 budget which might bring some positive news for the Japanese apparel sector.
Bangladesh Exports in Value
Vietnam Exports in Value
5.64%
8.42%
Bangladesh witnessed downfall in its value-wise apparel exports to Japan by (-) 5.64%, while it declined in volumes as well by (-) 4.03% on Y-o-Y basis.
The country noted striking growth both in values (up by 8.42%) and volumes (up by 9.55%) of apparel exports to Japan during the period under review.
FASHION BUSINESS
Wellness: Luxury’s Latest Destination Value Addition for Fall/Winter 2017-18 eginning from the early nineties to our current wardrobe, athleisure has essentially ridden on the magic carpet of fashion trends and with a few proclaiming its nearing end, we beg to disagree. When Neil Barrett collaborated with Puma on a fashionable sportswear line in 2003, the wall between functional/practical clothing and high-end fashion was completely broken down. This was also the same year that Yohji Yamamoto launched a new label Y-3 with Adidas that paved way for similar collaborations which continue to sell like hot cakes; to name a few, there is Rihanna’s Fenty Puma, Alexander Wang’s H&Mor Beyoncé’s Topshop.
B
It is fair to ascertain that athleisure is not fading; it is merely on the threshold of an evolution that is emblematical of the loftier shift in global cultural trends. As health, fitness and personal well-being take centre stage in the modern shopper’s lifestyle, the new tone of luxury can be easily summed up as: “Feeling good is the new looking good”. The trend that is a mixing bowl of style, sport and urban streetwear will burgeon into a very opulent and extraordinarily functional orientation this year. As the new generation’s interests deviate towards the message of self-love, and body positive activism becomes more omnipresent than ever, it becomes clear that athleisure is no longer a fashion trend but an overall cultural shift to a more comfortable way of living. Heavily driven by the millennials and their busy-bee work ethic, the new era of athleisure is a strange hybridization of business formals’ meets performance-driven sportswear that transitions from office to
evening seamlessly. An evident proof of this change is the return of suiting in a very relaxed and comfortable avatar this season for both women and menswear, which is indicative of the blurring boundaries between lounge dressing and office formals.
From track pants and sport jackets to denims getting a stretch-friendly upgrade, athletic wear’s foray into luxury offers some largely unisex and culture-bending trends for Fall/ Winter2017-18!
1. SPORT-CORE An early 1990s revival is ripening up and references to the normcore sporty casuals of the era are popping up everywhere. The costumes seen on American sitcom Seinfeld that ran throughout this decade are really the core of this trend. A sense of dressing down with a relaxed aesthetic will resurrect the period’s centre-placed sportswear logos, old-school raw denims and of course the oversized pullover sweaters. The trend is going very strong on the global street style scene and retailers like FILA, Tommy Hilfiger and Esprit are all jumping up on the opportunity to relaunch their iconic collections.
1 Fenty XPuma
2 StellaMcCartney
2. PERFORMANCE FIRST Comfort and utility are the key drivers of athleisure’s global appeal and these factors are only going to go up if the trend wants to survive the tough retail atmosphere. Customers want clothes that fit seamlessly into their fast-paced lifestyle and enhance their overall experience. To achieve this transitional function in garments, performance fabrics with qualities like quick drying, odour resistance, moisture
4 Balenciaga
5 JeremyScott
wicking and just more durability on low maintenance materials will go strong this year. A less formal atmosphere also means that people will look at lighter and softer materials that can be used for manifold purposes in multiple settings.
According to Euromonitor’s recent research on the Global Apparel and Footwear Industry, performance sportswear is leading market growth with a value of US $ 78 billion (2016) and is growing at the rate of 7 per cent for the 3rd year in a row. As health and wellness gain central focus, the new status symbol of luxury can be termed as: ‘Feeling good is the new looking good’.
3. PSYCHOTROPICS The athleisure collections may have stayed majorly in the solid colour category but as the demand for more variety comes into play, designers are looking at high contrast florals and tropical prints to save the day. Flora and fauna prints in a sharp-tasting and bright multi-colour palette as well as the inflow of softer shades of neon placed on dark backgrounds will be the perfect rendition of this psychedelics fumed floral trend. Especially seen on reworked sports bras, crop tops as well as on bottomwear, the ocean-loving tropical print will get bigger than ever.
4. BEATING BLUES
3 Each XOther
From icy cobalt to deep navy, the blue army is getting explored in all its pigments, all the way from almost black to practically white shades. Call it the denim daze or a hint of Nautica dropped into winter’s cold lap, it is quite easy to see this duo of two neutrals as the perfect dollop of easy sophistication for this season. Blue and black may be connotative of something violent but this colour trend in fashion garments is nowhere close to that pin code. The effortless regalia of this pairing is tranquil and supremely flooded in elegance.
5. LUXE ON TRACK The infamous tracksuit gained superstardom in the ’90s with Paris Hilton as its principal ambassador but the style has come a long way from its velour pink avatar. The new track suit is constructed in lavish fabrics and does not just have sportswear details as an ironic add on, but an actual value addition to its functionality. Designers have understood the allure and comfort of track pants and redefined them to make work appropriate bottomwear options when teamed with the sleek sport jacket. From neutral colours to crisp fabrics, the humble tracksuit will be the trend to beat this season.
6. YOGIC LOGIC Athletic apparel forms a second skin and is normally void of too many details but the style has infiltrated the spheres of widely loved yoga circles and dancers’ wardrobes. This means that athleisure needs to be as fashionable as it is utilitarian, so details like lace-up leggings and cut-out crop tops are going to be massive hits. Relaxed and comfortable does not have to equate to lacklustre anymore as stirrup pants, leggings with invisible pockets and chic crop tops will replace the classic gym combo of plain tights and boring sports bras.
7. STREET COVER This season, the outerwear options have really gotten more innovative not just in terms of material but also in their overall silhouettes. While some designers tried to make deconstructed a normal thing, most followed the wagon to the comfortable sartorial land of oversized outerwear. The inspiration here seems to be directly uprooted from the street style mafias of South-East Asia like the anorak style bombers, reworked puffer jackets and retro gilets. There are some direct renditions of sportswear pieces also in place such as ski jackets and cable knit sweaters.
8. WHITE-WASHED
6 Proenza Schouler
7 PublicSchool
8 Sportmax
Given that white is not really a colour, it definitely looks fabulous for one that is casted out from the colour family itself. Designers have embraced the serenely polished appeal of head-to-toe white looks and athletic apparel has never looked quite as chic as it does in this shade’s simplistic mishmash. However, the impact of this trend is in the notion of going all-out in monochrome to create the perfect statement worthy outfit. From alabaster to cappuccino creams, the many shades of our humble white was a show-stopping look on every runway.
DIRECTIONSBY
W
FROM THE RUNWAYS OF LONDON AND MILAN Just as fashion trends are continuously evolving and changing, so are the ideas of designers and personalities of the consumers. A departure from traditional and stereotypical collections saw a major resurgence of the ’90s streetwear, ’80s 9-to-5 and a more gender-fluid approach to fashion. Head-to-toe monotones, a new wave of layering techniques and a fascination with silk has brought a certain change in direction to the fore – a direction that follows suit with the way the collections are being presented on the runways this season. Eccentricity and chaos prevailed with Teletubbies bouncing on the runway, roaring street style fanaticism and an uproar of vibrantly preposterous prints that brimmed over with a stinging satire on the current social and political dialogue. A pool of visionaries consisting of newfound home-grown talent mixed with celebrated international designers offered their best variations in terms of trends for the approaching Spring/Summer 2018 season. Here, we list down top trends from the runways of London and Milan thatareexpected to shapeup thefuturein menswearfashion.
Tone On Tone
A
fter swimming in a season dominated by prints, patterns and tonal coordinates, a colour relief swept over the international runways for Spring/Summer 2018. Head-to-toe colour block coordinates are an emerging trend for the coming season with designers and brands experimenting with colour palettes. GCDS
Vibrant and icy pastels channel in the mood of summer while boldly electric tones nod towards the current hype around sportswear.
E. Tautz
Songzio
Vertical Stripes MartineRose
Prada
S
tripes as a print pattern are one of those trends that never really disappear from the fashion scene,but reinvent themselves with respect to the seasonin question. Berthold
Vertical stripes take centre stage as a prominent shift towards sophisticated tailoring comesinto focus. Shying away from conventional shirts and T-shirts, the trend found itself over safari jackets, linen trousers and calflength trenches.
OliverSpencer
Zegna
Borrowed From The Girls
T
he menswear fashion industry has evolved considerably in the past few seasons and there has been a noticeable change in the way designers and the public seem to react towards, and embrace the transition of menswear pieces from being overly boy-ish to subtlyfeminine.
Alex Mullins
Traditional gender stereotypes are challenged, giving way to amore gender-fluid approach this season, with a prevalence of softer silhouettes andan inclusion of details such as laces, silk and florals.
A ColdWall
LiamHodges
’90s Street Scene
N
ostalgia overpowers logic as an overload of throwback inspired designs, styles and details resurface for the approaching season.
Edward Crutchley
Vivienne Westwood
GCDS
Streetwear inspired designs featuring retro details and looks such as baggy silhouettes, slogan tees, windcheater jackets, oversized knit sweaters and puffer jackets take usback a decade to relive the ’90s classics – a defining moment for international fashion as it has come to be knowntoday. Collaborations with vintage brands such as FILA, CocaCola, Pepsi and Esprit invoked a sense of Back-toSchool vibes on the runways.
Loverboy
KatieEary
Layer Me Up
G
iving fashion anew lease of life, layering techniques have proven to be big influencing factors in terms of trends that continue to shapefuture forerunners in the industry.
Alex Mullins
With the recentshift away from minimalism towards more outrageous and exuberant styles, the layering technique has reinvented itself considerably.
Alex Mullins
Pedalling on the reverse gear, layers for Spring/ Summer 2018 cheer the longest piece of clothing to be the closest to the body, followed by the shorterones stacked one after the other on top.
Edward Crutchley
Baggy Pants Astrid Anderson
E. Tautz
W
ith comfort-basedand athleisure-inspired clothing seeing an upward spiral in recent times,the loose-fit trouser finally seems to have found its moment under the sun.
Versace
Marni
Baggy, floppy and dropcrotch styles accompanied by loose tailoring were pervasive across runway presentations for the Spring/Summer 2018 season and lent a relaxed aesthetic character to the otherwise straight silhouettes.
J W Anderson
Cinch It Up
A
s the focus shifts from predominant shoulders to the waist, detailsthat draw attention towards the waistline leave a noticeable mark on the Spring/Summer 2018 runways. Riffs on outerwear trends emerged in the form of cinched and belted jackets that fell short of the calf or grazed the knees.
GiorgioArmani
Robe-like silhouettes cut out of light-weight cottons in a myriad of prints and colours dominated the menswear runways at London and Milan .
DirkBikkembergs
Xander Zhou
Work Class Heroes Daniel W Fletcher
Marni
A
wave of unconventionality took over the runways for Spring/Summer 2018 where conventional work-wear staples were presented in an uncanny way.
J W Anderson
An overall sentiment of oversized proportions mixed with muted tones emerged in loose-fit, high-waisted trousers that were teamed up with hoodies and fleeces. Silk shirts, blazers and wideleg trousers paired with sneakers delivered a freespirited vibe in generous portions.
RalphLauren
MartineRose