FROM THE EDITOR-IN-CHIEF’s DESK… Sometimes I feel that the word ‘sustainability’ is becoming a mere catchword, with almost every player in the apparel supply chain using the term to describe the way forward. But how many people/companies actually understand the term, is something that is debatable.
EDITORIAL TEAM EDITOR-IN-CHIEF
Deepak Mohindra
EDITOR
Ila Saxena
COPY EDITOR
Veereshwar Sobti
ASST. COPY EDITOR
Sahil Sehgal
ASST. EDITOR-NEWS
Dheeraj Tagra
There are so many dimensions to the topic and so much is happening around the world, both in direct relation to the industry and in general, that to apprehend the depth of the topic is not easy… But one thing is for sure that sustainability touches all aspects of business – from people to planet to profitability, and even if one aspect is left behind, there cannot be true sustainability.
ASST. EDITOR
Neha Chhetri
SR. CORRESPONDENT-TEXTILES
Sanjogeeta Ojha
SR. CORRESPONDENT-FASHION
Kalita Lamba
SR. EXECUTIVE-ADVERTISING
D K Chugh
I am always fascinated by the passion that people who work in this area have their compassion for the environment, for the workers in the field and on the shop floor, which in fact is palpable. There are companies which are living this dream, and for whom there is no compromise; but then there are others for whom it is a tool for marketing.
CREATIVETEAM
Raj Kumar Chahal Peeush Jauhari Satyapal Bisht Deepak Panwar
PHOTO EDITOR
Himanshu Kumar
That is not to say that those using their sustainable initiatives as a marketing tool are less serious, because at the end of the day unless profits are made, all efforts are hollow and no one gains. But what I do feel is important, is the basic intent behind the efforts… If the management is 100% behind the cause, the seriousness of the goal is conveyed downward and everyone becomes a part of the movement; it no longer remains a conscious effort, but a way of life and doing business…
OPERATION DIRECTOR
Mayank Mohindra
PUBLISHER & MANAGING DIRECTOR
Renu Mohindra
The more I talk to the industry, the more I am convinced that the understanding of sustainability is still very shallow for most, and while compliance is equated to labour issues, sustainability is equated to environment concerns!
What is however encouraging is that companies are talking about it and from being just a concept, sustainability is now a route to be successful! The faster the companies accept this and seriously look at how best to get started, the better placed they will be in the future. Of course, every company cannot have the same level of commitment or capacity to invest, but making a start is what is important. I am convinced that we need to talk more about sustainability and also move beyond the cliché… Apparel Online is committed to give relevant information on the topic, discuss issues that influence business and also present benchmark companies and practices in sustainability. The world is moving fast in this direction and the country cannot afford to remain behind, which goes for the industry too… This year, sustainability as a topic is a major agenda – from small measures like LED lights to big commitments of Green factories will be under the spanner. Concepts that support sustainable thought and new directions will be discussed, and experts shall be invited to give fresh perspectives. I also invite my readers to share their experiences, concerns and queries on sustainability…; collectively we can explore the depth and find different ways to walk the route. Indian exporters cannot afford to be left behind in a world where competitors are already awakened!
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MIND TREE
Q-and-A What were you expecting from the Union Budget 2017-18 and what is your reaction on the announcements made by Finance Minister? How do you see its impact, both in the short- and long-term on Indian textiles and apparel industry?
Raja M Shanmugham, President, Tirupur Exporters’ Association, Tirupur Our expectations from the Union Budget were specific to textiles and apparel industry, but the aspects covered were in general. As such, we were in for slight disappointment; however, the Budget has encompassed lot many measures to ensure an all-inclusive growth. Out of the general measures mentioned, the relevant ones for our industry are the income tax rebate for companies doing a turnover of up to Rs. 50 crore, and Tirupur has clusters where SMEs are in large numbers. Likewise, the micro units (companies with up to Rs. 2 crore turnover) have been benefited with the presumptive tax reduction from 8 per cent to 6 per cent. Further, through MUDRA Banks, these SMEs are going to be supported with more loan facilities for which a sum of Rs. 2.44 lakh crore has been earmarked. Regarding one lakh housing for textiles workers of Tirupur cluster under the affordable housing scheme, promotional measures like profit-linked tax rebates for buildings with carpet area of 30 sq. metre and 60 sq. metre have been announced. Under the banner of ‘Industry Ready Skilling’, an allocation of Rs. 2,200 crore is also going to help the industry in upskilling the chosen skill inventories. Overall impetus has been for infrastructure development for which Rs. 4 lakh crore has
been allocated. It is presumed, wherever the infrastructure development happens, automatically the industry growth would also follow. With all these above facts, we feel the overall Budget for the year would render a positive resultin all sectors.
Ashok Rajani, Chairman, AEPC, Gurgaon Firstly, I would like to share my happiness on the The Economic Survey, which has re-emphasized on apparel sector for generating jobs that are formal and productive, and recommended reforms in labour and tax policies to make the apparel sector globally competitive. I did not have a long wish list for Budget 2017. All we wanted is full roll out of the ‘special package’ benefits. However, we are happy to note the relief offered to the MSMEs by reducing tax for small companies with a turnover of up to Rs. 50 crore as 85 per cent of the apparel industry may be benefited by this proposal. I am also happy to note the renewed focus on skill development with 100 India international centres proposed across the country and we expect apparel to benefit from this. Besides, the industry was awaiting further details on the GST roll out. AEPC has requested for clarifications that the taxes are fully reimbursed without blockage of working capital and the
industry is not laden with paper work and procedural delays due to the multiple city/location transactions that it has. Hope this will also be looked into.
Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region, Chennai Showing more focus on Government investment in infrastructure is the right move and in right direction as private investment is showing slow growth. The extension of Pradhan Mantri Kaushal Kendras to 600 districts will help the industry to employ skilled workers which is one of the major issues faced by these units. The introduction of Trade Infrastructure Export Scheme with Budget allocation of Rs. 3.96 lakh crore will help the Indian exporters to become globally competitive, as today exporters are forced to incur additional expenditure of more than 7 per cent of their exports due to poor infrastructure. Announcement of tax cut for MSMEs is a good move as 45 per cent of India’s exports come from MSMEs sector; this initiative will provide a good impetus to boost export from this sector. Initiatives taken in Railway Budget will help the Government to focus on development of Multi Modal Transport facility and reduce dwell time for movement of cargo which can be revolutionized by participation
of all public and private players. All these measures will help the exporting sector to reduce transaction cost amongst our competing countries. I am concerned on not visiting the corporate tax structure which was expected as the Government outlined road map for reduction of corporate tax during previous Budget.
Deepak Chiripal, CEO, Nandan Denim Ltd., Ahmedabad It is an inclusive Budget with a clear focus on agriculture, infrastructure, digitization and employment generation. Tax cut for the MSMEs with an annual turnover of Rs. 50 crore is a welcome gesture and will drive the growth engine as most of the Indian companies will get this benefit of 5 per cent tax reduction which will be a relief for them. Expanding tax net by increasing tax limit slab of up to Rs. 5 lakh will give more money into low-medium income groups. This move will give more money to hands of such people which will trigger more demand in markets. After short-term sluggish demand, due to demonetization, this will surely help boost the market sentiments. Government has increased allocation to Prime Minister Employment Generation Scheme by three times which will definitely help achieve employment generation targets.
Ranjit Routrav, Aar Fashions, Noida Overall it is a satisfactory Budget. Tax rebates to middleclass as well as MSME sector is the most appreciable announcement in this Budget as it will benefit most of the people. Even middle-level management of factories like ours will get some advantage from tax. Apart from this, there is nothing special for apparel or textiles industry which I have heard of.
NEXT MINDTREE
Vikram Gandhi, Director – Sales, Mint Clothing Co., Bangalore I feel that it is a neutral Budget as there is nothing, neither negative nor positive, with regards to our industry and that too for exports as well as domestic manufacturing. Our major share is in domestic market and we are trying to grow in exports also; so whatever general announcements have been made in the Budget, will not
have major impact on either market segment, be it tax rebate on individuals or MSMEs. Honestly speaking, we didn’t have much expectation from this Budget.
CK Tirumeni, Managing Partner, Abirami Exports, Coimbatore To the best of my knowledge there is nothing special for our apparel industry in this budget. Whatever announcements
have been made, are routine or minor. But in general, this Budget is good and will benefit overall industries. All in all, not too much was expected as already last year ‘special package’ was announced for apparel industry and few other announcements like hike in drawback duty was also made. I would like to insist here that still we have not seen the notification of this hike, so it should be executed on priority basis so that apparel exporters can get benefit which is very much required.
QUESTION
Almost every state, whether already having an established garmenting hub or one desirous of becoming a hub, is coming up with incentives to lure the industry to invest… Given a choice, would you prefer the state which is giving good incentives, but has yet to develop the eco-sphere, or would you prefer to go for the established hub, even if the incentives are not as attractive…? Please share your thoughts…
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IS IT THE END OF THEMALL?
US MALLS GO FOR A CHANGE POST HOLIDAY SEASON The year started with Macy’s announcing the closure of 63 stores and eliminating 10,000 jobs as the departmental store chain continued to grapple with weak sales during the holiday season. Many experts are relating the store closures to the growth of digital platform and also to retailers falling behind in implementing new strategies with time. The growing influence of millennials, who are accustomed to digital stimulations rather than physically visiting a store themselves, is also weighing down upon many stores. This has also led to a lot of retail mergers and consolidations that leave only a few departmental store options.
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any famous malls such as Fairlane Town Center in suburban Detroit are replacing departmental store space for Ford Motors, converting 2,40,000 sq. feet of former retail space into productplanning centre. Many such malls across the US are signing on nontraditional, high-traffic tenants as mall vacancies rise due to brands shutting shop. According to the Green Street Advisors, there are approximately 200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will need to close about 800 locations, or a fifth of total mall anchor spaces to achieve the sales productivity of the mid-2000s. There have been hundreds of store closures including Macy’s, Walmart, etc. with a few announcing bankruptcies like Sports Authority, Sports Chalet, and more. in 2016 with 2017 being a year in which retailers are treading their path carefully, while experts believe that the future is e-commerce. “It’s going to be a year of transition, a year of
reckoning, and a year of awakening for retailers,” believes Marshal Cohen, Chief Industry Analyst, NPD Group. According to MasterCard’s SpendingPulse, retail sales excluding autos and gasoline rose 4 per cent from 1 November to 24 December 2016, suggesting a stronger than expected holiday season. Although digital sales continued to boom with Amazon grabbing an even larger e-commerce share, brick and mortar locations saw declining trends. The heavy discounts and promotions during the holiday sales while favouring a few retailers, did not work for many. According to Retail Metrics, outside of a few busy hours on the weekends, the 2016 holiday season was somewhat eerily quiet at the malls. The firm observed a handful of people at Foot Locker (FL), Abercrombie &Fitch (ANF) brand Hollister, American Eagle Outfitters (AEO) and Macy’s, L Brands’ (LB) Bath &Body Works, where there always had been a buzz in the last few years. In its latest report, NPD has reported that during the week ending
E SS E N T I A L S According to the Green Street Advisors, there are approximately 200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will need to close about 800 locations, or a fifth of total mall anchor spaces to achieve the sales productivity of the mid-2000s.
10 December, dollar sales in the first six weeks of the holiday retail season were lagging the prior year period by 4 per cent, while Prodco Retail Traffic Index reported brick and mortar traffic falling about 10 per cent at stores through December 2016. According to industry experts, almost 70 per cent of holiday sales went to retailers that have both a physical and an online presence – highlighting the importance for retailers to “keep pace with technology”. What seems to be happening is an increasing base of consumers, especially the millennials shifting to online and mobile spending for experiences rather than products itself, and add to that the online players, such as Amazon, innovating and introducing strategies through heavy discounts and promotions that were witnessed during this holiday season. Although luxury malls housing luxury brands such as Dior, Louis Vuitton, Chanel, Tiffany’s continue to perform well, average malls with mid-level brands are experiencing the biggest hit due to a shift from offline to online.
WORLD WRAP
Irrespective of this, there are a few brands such as Home Depot, Lowe’s, TJX, Ross Stores, Burlington, and Ulta Beauty that have displayed a strong performance. Others, such as Nordstrom are also doing so by being an “omnichannel” retailer that knows how to engage its customers across all platforms. Unlike Macy’s or Kohl’s that compete with Amazon and everyone else on the internet, Nordstrom has differentiated itself by catering to more affluent shoppers through a highly curated selection. “Retail omnipresence is the key. Instead of simply giving customers a way to buy products both in-store and online, it would behoove retailers to latch onto shoppers before, during and after the transaction. Educate them and anticipate their needs ahead of potential transactions, allow them different ways to buy, and then stay in touch via product reviews or other methods following the purchase. The goal that the store becomes the epicenter for the entire process,” informs Marshal.
Although many experts are relating the strength of online sales as a reason for recent store closures, many also believe that these two channels – offline and online – can also have simultaneous successes. Mostly store closures are announced at the start of the year as retailers wait to close stores after holiday season ends so that they can squeeze in the last bit of profit or use the season to measure whether the store can make a rebound. Experts believe the closure of under-performing retail stores is a cost-cutting measure adopted by retailers, therefore reflecting on the performance of the individual retailer rather than the whole retailer. According to CoStar and JLL Research, the market as a whole is strong, indicated by the national retail vacancy rate that dropped by 5.1 per cent, a full percentage point lower than it was before the recession. It is the time when only those retailers would survive who are making shopping an experience for their consumers, whether in a mall or online.
SUSTAINABILITY
G r e e n Fact o r i e s
Why is India lagging behind its competitors? One of the most commonly used terms in the apparel industry since the last few years has been ‘green’, but when it comes to having a green factory, Indian apparel exporters are far behind their neighbours Bangladesh or even Sri Lanka, which have set new benchmarks in walking on the green path whether it is the number of green certified factories or the level of commitment in the direction. As for India, there are around 15 garment factories/offices of stakeholders in the apparel industry, which can be called ‘green’. Should it not be a reason of worry for the industry, encouraging more garment manufacturers to come forward in this regard? Apparel Online gets to the bottom of it and probes the reasons why Indian factories are not interested in green factories, and what could be the solution…
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ooking at our neighbours, the record on green factories is indeed impressive. There are 35 garment factories in Bangladesh that have received Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC) while another 133 garment factories have applied for the certification and many more are planning or have initiatedthe process for this certification. Today, the top three environment-friendly garment and textile factories in the world are located inBangladesh. Sri Lanka is the home of the flagbearer of sustainability in the garment manufacturing sector – Brandix. Besides, the country also has many other companies like Bodyline that are truly green. Comprising four factories, Bodyline was the first Sri Lankan apparel manufacturer to be certified as CarbonConscious, with the company’s third plant located in Pimbura, is setting a new benchmark by being the first in the group of factories to be certified CarbonNeutral. Another company Star Garment’s obsolete factory building has been transformed into a green product development centre. There are many more such examples in SriLanka. In India, companies like Orient Craft, Bhiwandi; Madura Clothing, Bangalore; Mahajan Overseas (Barhi Industrial Area), Sonepat; Genus Apparels, Faridabad; International Trading Company, Tirupur; SNQS International,
E SS E N T I A L S A LEED certificate requires factories to meet its prerequisites, mainly use of construction materials that create less carbon emission, hi-tech machinery for production, saving electricity, preserving rainwater, having enough space for constructing other buildings and ensuring housing facilities, schools, bazaars, and bus stands for the workers within 500 square miles of the factory.
Tirupur; Zodiac Clothing Company Ltd. (ZCCL), Mumbai (corporate office building); Mainetti (India), Chennai (manufacturer of garment hangers and associated products) are having green factories. Names of some other green factories in the making are Click Clothing Company, Faridabad; Fine Lines, Noida (which is being constructed with an investment of Rs. 15 crore), expected to becompleted by December 2017. Another Noida company Fashion Makers Group, is also planning for a greenfactory. Even in Ludhiana, KG Exports is also planning to make its upcoming factory green. One can say that Indian exporters are also growing in this regard; but surprisingly among the top 20 Indian apparel export houses, not even a single has been certified as a green factory, while some of them are continuously starting new facilities too. A commonly asked question is, “What is the need for a green garmentfactory when it overall costs almost 1½ times more as compared to a normal unit.” On analyzing the same it is obvious that there are many benefits that come from going green. For one, there is possibility of reduction in energy consumption by more than 24 per cent and water consumption by 50per cent. Despite such obvious benefits, there are many reasons for India’s lacking in this regard. The first and foremost being lack of awareness and interest, while the second biggest reason being the current market
New green factory of Click Clothing, Faridabad
pressures forcing exporters to refrain from extra investment, more so as buyers still don’t pay anypremium to such exporters. Also there are difficulties as well as cost involved to convert old factories into green ones, and Indian exporters don’t have the ‘willingness’ to expand further in apparel industry, as they are happy in their ‘comfort zone’ or prefer to look at opportunities in different sectors that are more lucrative. Industry is upfront in acknowledging the problem areas. “While customers are asking for green factories and such initiatives, but they are not willing to pay premium. These initiatives are initially expensive and there is no surety of returns.Indian exporters also lack knowledge and awareness of implementation and
The term ‘green factories’ is still not clear to a majority of the textile people at grassroot levels. Industry needs to be well-informed through media, seminars, etc., on what ‘green factory’ means, and what needs to be done in addition to existing structure and investments to make this happen.
Jas Mahindru of Mega Brands, Delhi agrees that more awareness is required among exporters. “Rather than market sentiments, it is lack of knowledge that results in less interest and if this becomes similar to compliance norms, one will see things change fast.” He further adds that if the benefits of going green can be more emphasized upon and more advertised, things will change. As far as buyers’ priority for such factories or premium to such exporters is concerned, even the companies running green factory believes that though they do not get any premium on products, it’s more to do with their own commitment to make a green factory and willingness to pay back to the environment.
benefits,” says Rajesh Kumar, COO, Laguna Clothing, Bangalore. “The term ‘green factories’ is still not clear to a majority of the textile people at grassroot level. Industry needs to be well-informed through media, seminars, etc., on what ‘green factory’ means, and what needs to be done in addition to existing structure and investments to make this happen. Exporters are grossly involved in day-to-day management of their operations, attending their buyers, fulfilling Government norms for recovery of duty drawbacks, networking with various agencies, etc. The thought-process needs to change where we individually become more sensitive to the needs of the environment and act responsibly for making a difference,” adds Arvind Arora, TaurusTex, Delhi.
Pranab Mahajan of Mahajan Overseas, who has the credit of having the first green factory in the home furnishing segment as well as first in apparel/textile industry in Haryana, opines, “In today’s world, everyone has the awareness and in reality, it’s the costs involved that people are scared of, considering the current market pressures.” Kiran Panchal of Amber Home, Mumbai also disagrees that awareness is lacking. “The green concept is everywhere and if exporters deal with major stores or brands or private labels, they all ask for green products. Hence awareness is there but the procedures to make a green factory are very cumbersome, and even though buyers give priority to green products without extra premium, it does not become viable.” Pranabhowever feels that it is not about premium, but remaining a preferred supplier. “Every customer is bringing down theirvendor base; so more focus is on how to retain the customers by serving them better, and hence this can be an oversight asit is notmandatory.” Kiran shares that their factory has seen good growth in the last year, despite being new and encourages exporters to invest. “I believe there
E SS E N T I A L S “At this point of time, business offers a green factory no advantage except to help a factory grand stand its sales push. Awareness, investment and Government initiatives follow market dynamics. The concept of a green factory is more to do with local corporate and community philosophy than external factors. The CSR initiatives, already in place from buyers side do overlap a bit with the green factory concept on key necessities and a further push is likely to cause supply chain disruption and cost addition, rather than a meaningful advantage. The lessons from the organic cotton renaissance in fact never really took off, as not many were keen on paying ‘extra’. This is also to be read with the green factory initiative as well and these will remain segmented beyond mainstream business.” –Jayakumar. C, CEO, Fedmac India, Tirupur
is enough scope for large format garmenting in India as China is very fast losing its core competence due to cost advantage and buyers are turning towards India,” he says. The lack of Government support however is a concern. “I don’t see any support from Government or bodies related to our apparel industry, we have to do it on our own,” says Pranab. Even AEPC or any other apparel body is notactive in this regard compared to BGMEA (Bangladesh Garment Manufacturers and Exporters Association), though OGTC (Okhla Garment &Textile Cluster) is supporting its membersfor carbon emission. So, what is motivating companies to establish green factories. “It is the commitment of themanagement that they want to create thatkind of atmosphere in their units which is feasible to the environment. And we are taking lot of initiatives asfar as green unit concept is concerned, like planting more and more trees in and around units, almost all units are running on PNG (Piped Natural Gas), boiler, tumblers, etc. which will be beneficial for environment. Solar panel installation is in process and is in maximum use in the environmentfriendly light system. Apart from these we make sure proper utilization of ETP and proper disposal of all industrial wastes generated by units,” says Ravi Raina, HR Department, Fine Lines. Praveen Sharma, Click Clothing, Faridabad adds, “As far as our green factory is concerned, I must say that going green was in support of steps taken by our Prime Minister against the environment (Green India Clean India). This is just a small step taken from our side. The factory has been audited by IGBC once and the second audit is yet to happen. Hopefully we will have the certification by the end of February. The idea is to avoid any kind of pollution, be it water or air and have good/clean working environment for the workers.”
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Louis Vuitton ceases all trading with Vietnamese crocodile farms
‘Protagonist' to initiate garment recycling efforts
The European multinational luxury goods conglomerate, LVMH, has informed that the brand has ceased all trading with Vietnamese farms that mistreat crocodiles. According to the company statement, “The LVMHGroup and its suppliers ceased all trading in 2014 with the farms named by Beta,” adding that it sources its crocodile skins from other Asian suppliers. This comes in the wake of the animal rights activist group Petals (People for the Ethical Treatment of Animals)
The popular outdoor clothing retailer, Protagonist, is planning to initiate its Worn Wear garment repair and re-utilization programme in April 2017, while adding an online platform for resale. Theenvironment-friendly brand has long operated with a solid repair policy on its products and is now emphasizing on repair and reuse of garments. The company’s repair facility at Reno, California, will wash used clothes with a new waterless technology that helps in restoring the fabric, and then make any needed repairs, which will then be sold on the company’s website. Any consumer bringing in their older but reusable clothes will in turnget store credits.
recently released video showing poor conditions of crocodiles at farms whose skins are used to make handbags and other accessories.
Stenos Troikas joins Greenpeace Detox initiative Among one of the largest and most modern knitwear manufacturers of Central and Eastern Europe, Stenos Troikas has recently joined the Greenpeace Detox campaign. The company has committed to eliminating any raw materials that are likely to have adverse effects on humans or the environment from its production chains at all stages of the product lifecycle, from the start of production to sorting and recycling of clothing, by 2020. Greenpeace has been actively fighting pollution in the textile industry since 2011 and since then the Detox campaign has involved 78 companies from all over the world, including apparel brands like Valentino, Beneath, Levi Strauss and more. The knitwear manufacturer is the first Lithuanian company to join
this campaign. “Ever since 2012, the strategy of Stenos Troikas has been focused on higher valueadded, friendless and high-quality products. We have strong customers who value innovative materials and see environmental protection and the effects of the products they buy on nature. This is a growing global trend, and we have been consciously and consistently preparing for it,” highlights Algiers Cabanas, CEO at Stenos Troikas. It has taken several years for the manufacturer to prepare for joining the Greenpeace initiative. Since 2014, the manufacturer has invested in a variety of laboratory tests and trials, with its professionals devoting a lot of time to reviewing all the production chains and carrying out regular comprehensive assessments
“If we can make really durable products, and we can work with our customers to keep them in service and in good repair, then we’re providing a solution to the environmental crisis,” explains Rick Bridgewater, Protagonist Vice President of Environmental Affairs. With this new initiative, Protagonist joins the ranks of other acclaimed clothing brands such as H&M, that are determined to decrease their environmental footprint via recycling efforts.
WHOLESALERS/IMPORTERS
WHOLESALERS/IMPORTERS
A strong segment of buyers from India When talking about buyers, more often than not, we think of the retailers and brands that source from the country. Gap, H&M, Walmart, Zara, Tommy, Esprit, M&S…, the list is long, but we tend to overlook a very important segment of buyers, who in reality account for a majority of sourcing from India – the wholesalers and importers. Many small- and medium-level exporters are thriving on orders given by these buyers, and even bigger exporters are happy working with wholesalers/importers that are private label owners as they invest in the business. According to market estimates, these seemingly obscure buyers account for around 60 per cent of buying from India. In this special issue dedicated to the wholesalers/importers, Team Apparel Online talks to every stakeholder in the chain – from the exporters who work with these buyers-to the buying agents who support sourcing of this segment-to the wholesalers/ importers themselves, on the critical questions of Why, How and What. An important fact that emerged, and was endorsed by a majority, is that these buyers come to India for the products that we can make, and given an opportunity, are willing to increase sourcing… The onus lies with the industry to be more proactive and service these buyers better and with more product options. Also, to be noted is the fact that despite working in India for years, many of them still find areas that need improvement and few are very critical of the ‘chalta hai’ attitude that is hindering growth. In the following pages, Apparel Online decodes the supply chain in sourcing for wholesalers/importers…
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ince last few years, as market conditions have become more difficult, many of the Indian apparel exporters are just focusing on one agenda, ‘machines chalti rehnee chaahiyen’ – machines should not remainidle. And this is one of the main reasons that most of the exporters are working with wholesalers and importers as they have better orders than individual retailers since they are further associated with many retailers/stores. Butit is certainly not a cakewalk to work with such buyers. On the other side, there are many challenges to work with this segment of buyers. Whereas the industry is unanimous in their opinion, on some points, the views are divided as usual. Apparel Online talked with some exporters working with wholesalers and importers to know their stand and their way to tackle the issues that comes when working with such buyers. Exporters claim that compared to orders with retailers/stores, prices remain 25 to 35 per cent less in the case of orders being placed by wholesalers and importers as they have their
Exporters getting value by working with wholesalers/ importers own expenditures and they need the margins to sell further to the retailers/stores. But this is not the only challenge for exporters working with these buyers. In some cases, this segment of buyers does not issue any LC which creates payment risks. It takes at least 4 months to rotate the payments from wholesalers/ importers to vendors. In some other cases, there is a ‘catch 22’ situation with wholesalers, if his pre-confirmed orders get cancelled, as he will not even listen to exporters. Earlier, working with this segment did not require too much of concern with regard to compliance, but now day-by-day wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard. Despite that working with them is comparatively easy as some ofthe exporters are of the opinion that wholesalers and retailers have better understanding, be it of their associates or overall marketconditions in both the selling and sourcing market. On the vendor’s side, they are also not as ‘strict’ as retailers or brands are on many issues, be
Exporters’ speak… “We are working with wholesalers from the last 30 years and to be safe about payments, we prefer to work within our limits and there are no major issues when an exporter is working at smaller level and with known/ long-term reliable wholesalers.” – Rajiv Kapoor, MD, Affordable Exports, Delhi
E SS E N T I A L S Earlier, working with this segment did not require too much of concern with regard to compliance, but now day-byday wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard.
it delivery schedule or even in some cases quality issues, they adjust while it can’t be even thought of in the case of retailers or brands. But to avail these things, an exporter must be backed by good financial strength as wholesalers offer good credit period to their buyers; so they prefer vendors having strong financial strength who can manage even in case of long credit period and continue with sourcing of fabric, etc. Vendors do try to verify wholesalers/importers’ financial condition through their bank accounts before starting to work with them. Even after having reasonably good relations over a period of time, some of the vendors make trips 3-4 times a year to these wholesalers/ importers as it is necessary tosit with them to get feel of their business scenario and payment follow-ups. “Normally it takes one trip in a year if you have better understanding
with retailers but when it comes to the wholesalers/importers, we have to travel 3 to 4 times whichin fact increases our overheads,” says one of the exporters working with wholesalers only and who did notwant to be quoted. None of the exporters accepted that wholesalers ever asked for third-party audit regarding quality. Despite all these odds or positive aspects, some of the exporters are of the view that there is less trust factor in working with wholesalers and it is like ‘lala’ culture. Apart from exporters, there are also many buying houses working with this segment. Many exporters are of the opinion that the scenario becomes worse if working through a buying agent as they get more pressure on price due to commission of buying house/buying agent. Also, they have to bear all the ‘diktats’ of buying houses.
“Our 30 per cent business is with wholesalers based in Italy, US and UK and they offer nearly 10 per cent less price to us. Sometimes there are issues when further pre-approved orders get cancelled, but I don’t see any issue working with wholesalers through buying houses as price should get fit in our minimum pricing, all other things don’t matter. There is risk regarding payments in this segment and we have never noticed that any wholesaler has asked us about compliance.” – Uday Sehgal, Director, Mariko, Noida “We get bulk orders from wholesalers, never work without LC and don’t work at all if there is even a small risk regarding payments. We follow our standard lead time, be it wholesaler or any retailer.” – Animesh Halder, Proprietor, Halder Garments, Kolkata “We are working with wholesalers from almost a decade and it is comfortable to work with them. We prefer to serve with quality products but it depends on given price too as value for money is always there.” – Rajesh Kumar Gupta, Director, Megha Overseas, Jaipur “Our way of working is a little different as we have partnership with one wholesaler and working mostly for him only.” – Udayan Kapur, Good Earth India, Noida
Wholesalers/importers looking for very wide range of products “We can do whatever product/technique any buyer demands from us.” “We are like a one-stop solution for our buyers.” “We keep adding new product categories as our buyers push us for the same.” “We want to serve our buyers better, so we are trying to offer them maximum product categories.”
Calliope Grigorea of Queen Calliope, Athens
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hese are some ofthe common statements that small- and medium-level exporters, who are mostly working with wholesalers/importers, give when questioned about their product capabilities… But are these statements really true; and are buyers happy with the products available with the Indian exporters, is another story altogether. Of course, there are also many companies that are doing only niche products from day 1 and wish to continue with the same as they are enjoying the edge of being niche. Apparel Online talked to some wholesalers/importers on what works for them and how happy they are with products offered by Indianexporters… No doubt majority of wholesalers/ importers prefer India for womenswear and accessories which include fancy Tees as well as kaftans apart from regular range of blouses, skirts, tops, evening dresses… The push for sourcing of such products is the strength as well as niche that Indian exporters have within the womenswear category. Many of the buyers are sourcing from Jaipur mainly due to hand-block, hand-printed based garments; also handwork value additions like embroidery are considered specialities of apparels from Delhi-NCR and Varanasi. Same importers are also sourcing some amount of home products as they have clientele for the same also. Corroborating the same,
Ilze Ports, CEO, Wandering Sage Inc., California
Marina, Owner/Designer, Rosarito,Argentina
Calliope Grigorea of Queen Calliope, Athens, a wholesaler/retailer, sourcing goods worth Euro 50,000 from India, even in the backdrop of the Greece crisis says, “I like the embroidered cotton garments for ladies with hand block work, it is appreciated by my buyers and sells well.” Ilze Ports, CEO, Wandering Sage Inc., California, who besides being a wholesaler also owns 3 stores and a brand, is annually sourcing from India products worth US $ 300,000. Her preference for variety of handwork is something that has driven her to source from Delhi, Varanasi and recently from Jaipur. Not only value-added garments, but few of the buyers are also importing unique fabric from India. Marina, Owner/Designer, Rosarito, Argentina who is having 15 shops and is also selling women accessories to multiple brands, is sourcing a lot of summer garments from India as she likes the styles and cotton fabric. “For eight years we sourced Indian products through other importers but now we are sourcing directly from manufacturers and that too Pushkar, Jaipur and Delhi. Pure white dresses with embroidery and multi-colour dresses are very impressive in India,” she says. For some of the buyers there is no limitation of products as they are sourcing variety of products, though orders size may vary as per products. Interestingly, these wholesalers/
Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway
importers are adding new product categories too. Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway (agent and associated with most of the buyers in Norway) is sourcing mainly ladies’ garments from India, and also picks up some kids and men’s wear when she finds something new. A year back she started sourcing all kinds of bags, which is a new product category for her. “In one of my visits to India I found a rainwear manufacturer which currently is not our focus but we may start sometime in the future,” she said. Despite all limitations and challenges some buyers are not hesitant to source such products categories from India which is neither India’s strength, nor is India manufacturing at good levels. This is definitely an opportunity, that exporters should look at. Of late, many buyers have shown interest in winterwear and even difficult items like skiwear. Marina Potemkina, Head of Purchase Department, Fashion-Sport, Russia having 17 stores and sourcing mens and womens wear is keen to expand sourcing from the country, provided exporters increase their product offerings. “Indian exporters should also increase focus on products like jackets and skiwear. Many buyers are very comfortable sourcing from India, but get limited by the range of products on offer,” she concludes, throwing a challenge to the industry… Any takers!
W h o l e s a l e r s / i m p o r t e r s ’ e x p e c t a t i o n s fr o m I n d ian e x p o r t e r s
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tops for its core customers, including American department stores, such as Macy’s, Dillard’s, etc.
ndian exporters often say that day-by-day buyers’ expectations from them are increasing and these expectations are hard to fulfil. Apparel Online questioned wholesalers/importers on what they are expecting from Indian vendors and how capable and willing are the exporters on these parameters. Most of the expectations of these very important India’s customers seem necessary and something which must be fulfilled. Product development and innovation in designs is one of the biggest expectations for any wholesaler/ importer from an Indian exporter, and they know that India has strength in cotton base only, but new designs and different value addition techniques are something everybody is looking for. “A lot of PD by companies is just about showing us what everyone else has produced. If I have the same style every season it doesn’t work; to blend a signature style and present it in a different way every season, doesn’t happen in India. Twice a year I come to India and I find that 95 per cent of the stuff is the same,” claims Joel Ratner, Executive Vice President of Sales, IDG, a private label manufacturer that caters to the US market for woven bottoms and
Theodore Aleksov, COO, Macedonia
Ralph Goodstone, Director, Le Cashmere, UK
Manijeh Khodadoust, Dastchin Mina, Iran
Kuldeep Singh of Mahadev S.A. DE C.V.
Some are disappointed that there are only few vendors interested to invest in this area. One of them is Kuldeep Singh of Mahadev S.A. DE C.V., working in Mexico from the last 22 years and sourcing mostly from India. Kuldeep says that he is not getting any new vendor who can focus more on research and development in his products. Search of better designs is motivating them to explore pan-India. One of the wholesalers who does not want to be quoted informed, “I was earlier sourcing for the southern corner (Karur) of India but due to good PD skills, I moved to northern region (Jaipur).” Theodore Aleksov COO, Macedonia, working with department stores, is sourcing 75 containers per year from Delhi for the past five years, but recently nice printing capabilities forced him to source from Jaipur. These buyers also added that manufacturers should do some fusion of traditional styles with western culture. Manijeh Khodadoust, Dastchin Mina, Iran, associated with more than 100 stores, insisted that product is the key in deciding an order or even in
continuing to work with vendors, while price is a secondary consideration. “It is true that people want to buy more but at less price, but before that it is the look of the product which attracts the consumer into the store, so we follow the same principle,” said Manijeh whose priority is womenswear suitable to the Iranian market. Dora Popova, Proprietor Manager, Harmonia Ltd. Bulgaria (retailer/wholesaler) says that Indian exporters should think beyond summerwear also. No doubt, India has great designs, fabrics and patterns but sometimes exporters don’t put them together in a perfect way.
CHALLENGES FOR WHOLESALERS/IMPORTERS Despite improvement, much scope to gear up for Indian vendors
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n the present scenario when ‘reshoring’, ‘nearshoring’, ‘offshoring’ are the buzzwords, and it has become important for buyers to justify why they are sourcing from a particular destination, consolidation of vendors as well as exploring of new vendors is continuously going on. In the processes, wholesalers/ importers are facing many challenges when sourcing from Indian vendors; and though these clients of Indian exporters loudly appreciate the improvements being made by their
To work in a given price point is another strong expectation of all buyers, though they accept that it is not always easy to fit into their price requirement, but they too are helpless, as global market conditions are depressed. Sourcing from Bangladesh and China, Ralph Goodstone, Director, Le Cashmere, UK, which caters mainly to 250 medium- to large-level retailers in UK admitted, “There are good suppliers in India having better products and good quality, but still I need to negotiate on price.” Some of the wholesalers have individual but interesting expectation from Indian exporters and they happily want to be associated with such things. Ilze Ports, CEO, Wandering Sage Inc., California (wholesaler/retailer, owns 3 stores and a brand) sourcing handworkbased garments, is also interested in women empowerment which personally attracts her. “It is good if we can together help women operators/homeworkers through our business,” she said. Improvement on ways of communicating, like proper and prompt reply to queries was another area where these wholesalers/ importers expect better service, while some of the importers are of the opinion that Indian exporters should know more and more about business practices in the country they work with, it will help them to deliver better. However, some of the wholesalers are fully satisfied with their Indian vendors as Rafael Yarto, Commercial Director, Mexico sourcing garment as well as fabric from India says, “Everything is okay, I don’t have more expectations or suggestions as such.”
TraceyFarrington, MD, Bondi Beach Bag Co., Fiji
Sadrettin Coka, Asude (Armanda/Kroren), Turkey
too much time to be procured, so some buyers prefer to work on ready or easily available fabrics. “I wish to shift some orders of hats which we aredoing from China to India, but the country does not have many of the required raw materials, and I am forced to continue sourcing it from China,” says Tracey Farrington, MD, Bondi Beach Bag Co., Fiji – a wholesaler &importer of fashion apparel &accessories. “India is pulled back by its lack of good textiles and innovations in the textiles industry,” adds Joel Ratner, Executive
Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria
vendors, they admit that there is still a lot of scope for improvement. In conversation with Apparel Online, these buyers share their ‘pain’ areas, while some of the issues are routine, few are real irritants that need immediate redressal.
Vice President of Sales, IDG. I think that’s the biggest limitation. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. productsin these fabrics can be donecompetitively. It’s a global world, and you need to source the strength of eachcountry.”
Limitation ofraw materials…
Another buyer claimed that exporters are limited by raw materials even in products that they are strong in. “We are looking at partnerships for shawls and scarves as we already have some partnerships in Turkey and China; our priority is something different and special compared to other countries.
Raw materials base is somethingwhich emerges as a strong challenge for wholesalers/importers and limits their sourcing activities. Some of the fabrics are not available in India, or theytake
WHOLESALERS/IMPORTERS
“India is pulled back by its lack of good textiles and innovations in the textiles industry. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. products in these fabrics can be done competitively. It’s a global world, and you need to source the strength of each country.” – Joel Ratner, Executive Vice President of Sales, IDG
Natalie Centaine, Azure, Australia
RogerKohli, Creative Cute Options, US
From design perspective, India’s products are good and the variety is really interesting, but we fail to find what we want, especially when we consider the fabric base. Indian exporters are reluctant to work in different fabrics, as it involves too much of hard work at various levels,” states Sadrettin Coka, Asude (Armanda/Kroren), Turkey (Importer). Another exporter, Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria who is sourcing for many formats: retailer/wholesaler/online
Paolo Zani, Art Director, Warli, Italy
AlisonOtway, Marketing Vision sa, Panama
sales, strongly recommends, “Material which is being used by Indian exporters now needs to improve and the range also needs to be widened.”
Need to be more organized… Another challenge faced by such buyers, mostly because they work for small- and medium-level exporters, is the lack of process-driven systems. Most of the buyers agreed that Indian exporters need to be more focused and organized to give better attention to order execution. Speeding up things
is the need of the hour not only for delivery, but even for sampling also. “Ideal sampling time should be a maximum of 2 to 3 weeks, but some Indian exporters take double the time than this,” claims Natalie Centaine, Azure, Australia, adding that many orders are lost because of this. Azure is a design-based wholesale company, sourcing from India from the last 6 years. A common irritant so as to say for most wholesalers/importers is the fact that if they show interest in some design of an exporter, the company starts pushing for final orders. Paolo Zani, Art Director, Warli, Italy (a designer firm) says, “Exporters should not expect orders in two days, as we need time to develop our designs; by pushing for orders, we lose interest.” Lack of organized operations has also affected deadlines, which is again a major concern with many wholesalers/ importers. Sourcing from India since last 30 years, Roger Kohli, Creative Cute Options, US says, “I feel that even in these difficult times, exporters do not understand the importance of being responsive and timely delivery is still an issue. There is no dearth of business but it is all about delivery and price point.”
Quality challenges persist… It is more than clear that quality is not more than something that buyers will have to ask for or insist upon, as it is a mandatory requirement. Yet at the same time there are still plenty of quality challenges for the customers… Almost each and every buyer was of the opinion that quality issues are required to be addressed on priority basis. Often buyers say that quality of Indian products is not always the best but is acceptable too; sometimes there are even issues in basic stitching also.
E SS E N T I A L S A challenge faced by buyers, mostly because they work for smalland mediumlevel exporters, is the lack of process-driven systems. Most of the buyers agreed that Indian exporters need to be more focused and organized to give better attention to order execution.
Alison Otway, Marketing Vision sa, Panama – sourcing from India since the last 14 years still faces quality issues. “Some suppliers are still lacking on quality control which is in fact very sad,” he says. Another buyer raises concern about the discrepancy in quality of samples and actual goods, as sometimes they are different. “My sales girls always ask me why there is invariably a difference between what we approve and what we get! Even in small lots, of say 300 pieces, the goods are not the same when compared to the sample,” bemoans Koki Veber, Director, Sariko, Slovenija (Central Europe). The company has 10 stores and has been sourcing from India for more than two decades. She adds that though Indian exporters are fast improving their approach to global business and the situation is much better than a decade ago, still they need to be more professional, because ‘we also have a business to satisfy’. “Their production teams also have to be more efficient, and many times we feel that the follow-up on our order is not proper,” avers Koki.
Other issues… Very surprisingly, some importers felt that Indian exporters are only interested in bigger orders, which is an impediment to work here. “I am facing a challenge regarding small orders as I need maximum 100 pieces of any style and for them I am ready to pay a price accordingly, because I know my order size is too small, but Indian exporters are not too enthusiasticfor this,” informs Karine Dupouy, Fashion Designer, Seychelles, who as of now is sourcing from Italy and Turkey and has its own small factory. She has five stores with own brand and specializes inresortwear. There is also an open talk that many of the wholesalers/importers are very reluctant to work with India, and those who do work here agree onthis, though shying away from sharing the reasons. A buyer says, “I know of some fellow buyers who are reluctant to source from India, but reasons are not known to me.” One importer however did share that many such buyers have either had bad experiences working in India because of the lack of professionalism orprefer to work in their comfort zone instead ofexploring options, which takes a lot oftime andmoney.
BUYING HOUSES WORKING WITH WHOLESALERS/IMPORTERS
BRINGING REGULAR BUSINESS TO THE COUNTRY
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here are many buying houses/ buying agents in India who are working with wholesalers and importers. Some of them do have apprehensions and admit that on some point working with this segment is even difficult for buying houses. But they vehemently deny that compromises are made in quality, as suggested by some exporters. None of the buying house representatives acknowledged that wholesalers/importers ever accept any lacking on quality. Following all the standard parameters of quality, they said that third-party inspections are always conducted and there is nothing like value for money or that quality moves according to given price. At the end of the day product has to be sold by retailers and why would any retailer take chance on quality. Even the wholesalers sell the product under their own clothing line/ label, so he will also not take risk with his own clientele. In fact, buying agents claim that such exporters who compromise on quality are losing orders as wholesalers come to them only when there is no other option for him. Yes, price is always less when working with wholesalers/importers
but most of the time they have good order sizes, so it does not remain a very big issue. Buying agents also admitted that wholesalers never act strictly for their given delivery date and most of the time little margin is built in as wholesalers generally place their orders well in advance. On the issue of compliance, there is a twist, one of the buying houses representative adds, “I have noticed that wholesalers don’t ask for compliant factory even if he is sourcing for a reputed brand while if the same brand is sourcing directly from us, he is very particular about the compliances and proper documentation/certification of the same. In case of sourcing through wholesaler, these brands just ensure verbally that factories are fulfilling basic norms/law of theland.” There is strong opinion among exporters that working through buying houses with this segment adds more pressure on price as well as working norms. “I completely disagree that scenario becomes worse when any exporter works with wholesalers/ importers through buying houses. The value added by a buying house is worth the little extra that they pay
Take on PD… “We are working with 7 wholesalers/ importers of the US. Working with wholesalers/importers is a little more challenging than working with retailers directly, as they ask our inputs on many things right from fabric, PD and quality. While retailers usually give a tech-pack kind of work, so involvement at that level is far less.” – Jitendra Sodhi, CEO, India Buying Consultants, Gurgaon
Take on payment security and compliance needs…
and how can they disregard the fact that they are getting orders sitting at home without putting much efforts, otherwise it costs them at least Rs. 2-3 lakh for one overseas trip to finalize an order. Most of the exporters never accept their mistakes,” says one of the buying house owners working majorly with wholesalers/importers. Even in the condition of order cancellation, wholesalers/importers are in better condition as they try to serve shipments/products to their other clients. If in a particular case any wholesaler/importer is forced to get an order at a very tight price, he tries to accommodate it by giving a better price on a further order. As far as opinion of buying houses on new vendors’ selection is concerned, they are of the opinion that wholesalers ask for new vendors only when more orders are there, or existing vendor base lacks resources for something specific that the wholesaler is looking for. Apart from this, innovation at various levels, including on washing and printing, do matter a lot for wholesalers/importers. How capable a factory is in terms of sourcing of fabric and allied material too matters a lot.
“Among the wholesalers, the NRI ones are most unreliable and apart from few established NRI wholesalers, most of them have least credibility about payments. They never issue an LC and it is hard to trace them; today they are in the market strongly, placing reasonable orders but all of a sudden disappear. There is no support by our law or any such platform to raise such issues.” – Rakesh Saigal, MD, Precision Design and Sourcing, Gurgaon “We are working with wholesalers of US and Canada who further work with prestigious companies like Walmart, Woolworth, Truworths. We work with 30 per cent advance, as working with such buyers can be risky, as one never has a security of payment. I have noticed that day-byday more and more wholesalers are asking about compliance and one must accept that sooner or later, there is no survival without compliance.” – Anand, MD, Dean Textiles Buying Services, Tirupur
Working with importers is no different than working with retailers… “I feel price is workable with wholesalers, as it is balanced by order size. Be it matters related to quality or lead time, wholesalers are equally ‘tight’ as retailers are. Same is true with the growing need of compliance with them. More and less payments with them are also safe.” – Sameer Thapar, MD, Montrose Knitwear, Delhi
Secret of successful business with wholesalers/ importers – innovative product at competitive price Working with several wholesalers and importers across 3 European countries, Dr. G. Loganathan, Managing Director, The Imperial, Tirupur in an exclusive interaction with team Apparel Online, details the challenges, pluses and relevance of commitment in today’s business scenario, while sharing the enriching experience he has had working closely with wholesalers/importers and retailers.
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lready sourcing products worth over US $ 5.5 million from the country, the company is exploring options to expand their market reach to more countries including the US. “We are putting in efforts to enter the US market. India, however, still has some distance to cover when compared to countries like Bangladesh, Sri Lanka, and Indonesia, especially with regard to labour and price,” averred Dr. Loganathan. He emphasized that in today’s scenario, the wholesalers and importers are looking for only price to win the competition in their markets. “Most of the buyers prefer to work with India rather than other competitive countries, but they expect the price of those countries in India. Also, implementation of technology is still in slow phase compared to many other competitors,” mentions Dr. Loganathan. For a buying house working with wholesalers/importers, emphasis on product inspection and ensuring deadlines are
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E SS E N T I A L S ● It is buyers’ market where the price is the predominant factor. ● Demand in high quality standards are escalating day by day. ● In the recent years, the gap between price and quality is increasing due to hectic competition among the wholesalers and retailers at importing countries. Dr. G. Loganathan, Managing Director, The Imperial, Tirupur interacting with his customers
● The buyers’ expectation with regard to product, technology, service is tremendous. ● Garment being a consumer product, everyone wants to fish in the ocean across the globe, making the competition for good bargaining and getting it at lower price, more confused. ● Most of the buyers prefer to work with India than any other competitive countries, but they expect the price of those countries in India.
The variety of products offered by India in cotton is very wide
imperative. “Commitment is the key and nothing can substitute it,” believes Dr. Loganathan. While inspecting a product, in addition to meeting all the required customers’ specifications, the appearance and look of the product are also key areas, as it is always the appearance of the product that first captivates a buyer. With competition getting tougher among wholesalers and retailers worldwide, the gap between price and quality is increasing each day. “One of the key differences
of working for retailers and with wholesalers/importers is that while the importers choose the price, when narrowing into a vendor, the retailers prefer working with standard factories. Hence, the importers would never think twice before changing factories if any factory quotes lower price,” states Dr. Loganathan. Building and, more importantly, maintaining a good relationship is key to doing great business, be it with retailers, wholesalers or exporters. “If there is anything that one really needs to invest in, it is relationships
26 Apparel Online India | FEBRUARY 16-28, 2017 | www.apparelresources.com
● Candidly, buyers are not so comfortable with our production because, implementing technology is still in slow phase in comparison to Bangladesh. ● Buyer feels our competitive markets are improving faster in terms of technologies, quality satisfaction and timely deliveries than Indian exporters. ● In today’s scenario, buyers are looking for only the PRICE to win the competition in their markets.
– A trait that surges forward any business,” reasons Dr. Loganathan. This is even more important in the case of wholesalers/importers as they have a very hands-on approach to business. One of the biggest pluses of working with wholesalers/ importers is that one always remains updated with international fashion as they ask for regular developments. However, the biggest challenge is that the wholesalers/importers are constantly on the lookout for new sourcing destinations, offering products at a cheaper price. “Indian exporters need to ensure optimum production to achieve the competitive price,” said Dr. Loganathan. If the exporters work on this shortcoming, the challenge of losing importers could be arrested. On a scale of 1-10, while determining the relevance of product, price, infrastructure, types of buyers/markets already working with, compliances and lead times for any buyer, Dr. Loganathan was quick to give 10 to product. “Product is the one that finally sells,” said Dr. Loganathan. Infrastructure was rated 8. He also gave 8 to type of buyers/markets as there is now big competition among buyers too and they are always exploring new markets at less price. Compliance was rated 7 and lead time, significantly 9. Although the role of the Government is improtant in supporting the industry, exporters too should upscale themselves – it’s time to wake up. “If the issues regarding labour and the failure to achieve optimum production are eliminated, then India could rule the market and be a force to reckon with in the years to come, especially with the huge talent that India has,” concluded Dr. Loganathan.
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Indian dye industry to take the ‘green route' Department of Scientific and Industrial Research (DSIR) has granted Rs. 4 crore to Indian Institute of Technology Gandhinagar, to set up a CommonResearch and Technology Development Hub (CRTDH) on Chemical Processes at its campus to help dye industrymeet the pollution norms and take an environmentally safer growth path. The CRTDH will develop a Chemical Process Technology Lab along with a pilot plant facility which will demonstrate the process intensification, waste reduction and enhanced effluent treatment technologies developed at the campus. The centre will also help MSMEs in the dye sector for research, training and testing of the raw materials and products to give them an advantage in the competitive market.
Several faculties from chemical engineering, chemistry, biological and materials science and engineering department of the institute will be jointly working in the project. In addition, the institute will put
in about Rs. 2 crore to help the dye and dyestuff clusters in the Gujarat region to become more sustainable. Prof. Chinmay Ghoroi, Principal Investigator – Project, IITGN said, “The CRTDH will help
chemical industries to improve their existing chemical processes and waste treatment. The initiative will be helpful to the MSMEs in and around Gujarat who do not have proper lab and technical expertise.”
Minister's assurance to address issues of powerloom sector Subsidy for solar plants installation underway Union Textiles Minister Smriti Irani has assured the powerloom sector that their issues would be addressed soon, though she expressed her inability to announce what she is having in store for them, as currently elections are taking place in a few states. Known for providing livelihood to millions of rural people across the country for centuries, the sector is a focus area for the ministry. While responding to a question raised in Rajya Sabha, the Upper House of Parliament, the Textiles Minister said that the matter has been discussed with
industry stakeholders, but Model Code of Conduct is refraining her from making any announcements on it. It may be mentioned here that the Government has already introduced multiple schemes to accelerate the development of the powerloom sector which include In-Situ Upgradation Scheme for plain powerlooms, Group Work-Shed Scheme to help in the construction of work-sheds, Group Insurance Scheme for social security, Integrated Skill Development Scheme (ISDS) for skill upgradation, and Integrated Scheme for Powerloom Sector Development (ISPSD) for extending
support in the form of buyer-seller meet, yarn banks and setting up of common facility centres. In the meanwhile, the Textiles Minister of Textiles has approved a new financial scheme to aid small powerloom units, hit hard due to frequent power cuts, for installation of solar photovoltaic (SPV) plants. “The funds requirement for the three years (2017-18, 2018-19 and 2019-20) would be Rs. 19.95 crore, covering 480 powerloom units in the country,” informed Smriti Irani. The subsidy is expected to make power cost economical for
the looms and make the units self-sufficient on the power front while the Government can supply grid power to other industries. The decentralized powerloom sector, which has a share of nearly 55 per cent in the total clothes produced in the country, plays a vital role in the employment generation in the country. Currently, there are 25 lakh powerlooms among which only less than 2 lakh are technologically upgraded. The powerloom sector employs 65 lakh people, most among them have high input costs and reduced purchase of fabrics.
H2F
700 INDIAN EXPORTERS PARTICIPATE IN HEIMTEXTIL, DOMOTEX AND MAISON & OBJET E U R O P E W I L L TAKE TIM E F O R S T R O N G
DEMAND
As usual, January witnessed major home furnishing fairs, Heimtextil, Domotex and Maison & Objet wherein more than 700 exporters from India participated. Though their experience at these events was mixed on issue of buyers’ footfall, there was unanimity on the fact that Europe has still not shown any major recovery sign. Another point that stood out strongly was the increased focus of Indian companies on product development as most of the participants with whom Apparel Online talked presented collections with unique designs/blends in their products.
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s per the organizers of Heimtextil, despite snowfall and storm, on the first and last day of the event, it witnessed almost 70,000 visitors that is a little higher compared to last year (2016: 68,277). Similarly, this year there were 2,963 exhibitors from 67 countries as against 2,864 in 2016. One of the nearly 350 participants from India, Amber Home, Mumbai continuing its focus on sustainability, displayed a wide range of products made from sustainable dope dyed yarn (80 per cent cotton and 20 per cent polyester). Its products were selected for display at the trend area of the show. The company has a goal of sustaining the future with sustainable products by adding functionality to them with added special finishes, and make it hydrophilic and antimicrobial with fragrance added to it. The company’s inclusion in green directory with green leaf accreditation itself is proof of its achievements in this area. The company also created new theme of ‘denimology’ bringing denim philosophy into home textiles, adding to it batik and tie &dye effect using 3D concept, besides fragrance and antimicrobial finish.
Studio Medium, NewDelhi
ESSENTIALS ‘Sleeping’ is emerging as a lifestyle and combination of bed linen with accessories (lamps, baskets), and this was highly appreciated at Heimtextil. Many innovations were seen in the bed segment like Mediflow from Hamburg, displayed an improved version of its water pillow capable of full adjustments for firmness and supportive effect.
According to Pranav Ghelani, Marketing Director, Sumangalam Exports, Mumbai, Heimtextil 2017 had a higher number of exhibitors but the same number of trade visitors as last year. “At the beginning of the fair, the Pakistan Government announced an additional 6 per cent subsidy for the textile made-ups sector. This enthused the Pakistani companies but added to the price pressures that Indian companies already face on account of zero duty imports in EU from Pakistan and Bangladesh. The volume, price-sensitive business has moved to Pakistan and Bangladesh. India is reliable in terms of deliveries and quality so in those terms we have moved up the value chain,” said Pranav. Apart from having meetings with regular customers he made some good contacts in non-traditional markets of Eastern Europe, South America and Australia. “Presentation of good, trendy designs and value prices attracted customers to our booth,” he added. For some, the event proved much better than expected and they were quite happy. Riddhi Jain, Studio Medium, New Delhi informed, “The fair was very promising this year. We
Studio Medium, NewDelhi
met a couple of buyers interested in our products; most of them were store/ boutique owners. As the company participated for the first time in Heimtextil, we were enthusiastic, and the event turned out to be very promising.” The collection showcased by the company was called ‘re-’. It is an upcycled collection of home textiles made out of discarded cotton yarns. The colour palette included bold pastels inspired by the irregularities of natural textures. There were ranges of cushions, futons and wall arts. The fairs as a whole highlighted that there was no recovery in most European markets; weakened pound and uncertainty of the effects of Brexit have also negatively affected sentiments. Likewise, in USA with the new President focusing on “Make in America”, there are possibilities of higher duties on imports. This yearis again going to be challenging forIndian companies so it is important to develop markets other than Europe and USA. Interestingly, some Indian participants were of the opinion that they didn’t find much issue with the enthusiasm of the buyers. “Buyers were looking for new things and price was not as big a consideration as many were making
with the last comparable DOMOTEX, staged in 2015 with 43 per cent coming from EU countries. From the nearby Middle East, it was up by 9 per cent, while East and Central Asia increased by 16 per cent. More visitors came from the US and the UK, in particular. The latest trends revealed a strong focus on sustainability and natural-looking designs. There is strong demand for eco-friendly designer products, as well as for laminate and designer flooring with surfaces of such deceptively natural appearance that they can hardly be discerned from real wood.
Sumangalam Exports, Mumbai
it out to be,” said Riddhi Jain, adding, “We realized that now is the timewhen retailers are ready to experiment with new and bold collections as their main focus is on providing newproducts to their buyers. They were also on the lookout for products that are sustainable for our surroundingsand this really fitted well with our upcycled collection, at Heimtextil this year.” For many exporters, the Heimtextil Trend Park was particularly very inspiring, taking them through the upcoming trends in technology and textiles. As Germany is a very important country for Indian home furnishing exporters, EPCH organized
Amber Home,Mumbai
the participation of the stakeholders of the Narsapur Mega cluster and members in Heimtextil, through India pavilion with 15-member exporters.
DOMOTEX 2017 Organizers of DOMOTEX 2017 claimed that this dynamic event puts fresh wind in the sails of the global floor coverings industry with substantial growth in number of exhibitors and size of exhibition. It witnessed a total of 1,409 exhibitors from more than 60 countries, and out of them nearly 350 exhibitors were from India. As far as visitation is concerned, it was on a par
Studio Medium, NewDelhi
E SS E N T I A L S Sustainability was as usual highlighted under the title ‘Sustainability, Mindset, Responsibility’. Participating for the first time at Heimtextil and dealing in organic home furnishing products, Storyfabrics, a Switzerlandbased company, sourcing home products from Indian company Rajlakshmi Cotton Mills, was happy with the fair. Martina Unternaehrer, Founder of the company said, “I met potential customers from Switzerland and with whom I couldn’t get a meeting back in Switzerland. Small companies like ours have to go to the big fairs to be taken seriously.”
One of the Indian participants Ravi Chabbra, MD of Chhabra Home Concepts, Panipat shared his opinion, “Overall, the fair was okay and we met 4-5 good buyers. Generally I think Europe is picking up the daily use or basic products, but not for exclusive or luxury kind of things.” The company offered regular range of bath mats at the event. Pradeep Singh, Director, Zoya Home, Panipat too had a similar view as he said, “Fair was mostly dominated by European visitors and business was almost the same as last year or even little less than that.” Floor covering in natural fibres like jute, hemp, wool was displayed by the company. Pradeep also added that exhibitors like him participated in such international events through Indian Government agencies/councils, which should make more effort to get proper locations so that more buyers can visit their stalls.
Maison & Objet In Maison &Objet, Paris there were almost 23 Indian participants like Shingora Home, Ludhiana; Kanodia Global, Delhi; Condor, Gurgaon and few designer brands. There were in total 2,871 exhibiting brands while more than 1,35,000 visitors visited the show. Amit Jain, MD, Shingora Textiles shared, “Fair was just okay; I would give it a 5 out of 10 as there were visitors but business was missing. Still Europe seems to be slow.” The company displayed its blankets which were made by cotton rather than wool. On the contrary, Anil Sharma, Senior Merchant of Noida-based Janavi shared, “For us the event was reasonably good and we are satisfied with it.” The company highlighted its strength in cashmere art in wide range of designs, while products included blankets and shawls.
DIRECTIONSBY
FALL / WINTER 2017-18
Key Menswear Trends From
N E W YORK & PARIS The whirlwind brought about by the biannual menswear fashion weeks at New York and Paris, has recently settled, giving way to future trend predictions that would signal what the approaching season looks like. This season saw utility and comfort being given an edge of importance over avant-garde fashion. Loose tailoring and a fresh approach to the classic double-breasted jacket made a case for the men of the 21st century, who are more inclined towards experimentation and functionality going hand-inhand. Gone are the days when the colder months summoned darker hues; this season designers go all out to incorporate bright pops of colour into their winter wardrobes and go big on details such as prints, patterns and surface textures. In this issue, FFT reveals key trends from the runways of New York and Paris for Fall/Winter 2017-18 as showcased by ready-to-wear designers and labels.
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BOMBER BACKLASH
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B O MB E R BACKLASH
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CHECKING IN
Bomber jackets continue experiencing a surge, with every label offering its own version of the trend. Channelling in the rebellion borrowed from the ’50s culture adopted by the (then) youth, through military pieces like the MA-1 bomber, the trend has found a solid spot in the current times. Designers are shying away from embellished looks that stormed last year and are tilting towards newer versions that incorporate materials like satin, velvet and details evolving towards two-stone styles and patchwork.
Designers decided to add a little colour boost to the dark and gloomy winter months, by presenting collections that included surprisingly bright pops of colour in coats, jackets, knittted sweaters, trousers and pretty much all else. Shades of bright orange and yellow dominated the runways rendering the colours ‘cool’ for the new age man.
Menswear suiting trends have recently been resurfacing after a much ‘Vetements-hijacked’ laidback year of oversized drama, overtaking the runways and streets. Enter this season, and we see a majestic army of doublebreasted blazers and coats – boxy, structured, button detailed and submerged in semi-casual prints and textures. Layered over shirts, turtlenecks and sweaters, the double-breasted suits make a strong case for casual men’s staple for the season.
We are sensing a major trend here – with the classic Prince of Wales check and plaids making an appearance, show after show, and piece after piece – checks take a definite seat in the front row for the Fall/Winter 2017-18 season. Layered under jackets or worn freely as prints on trousers or scarves, checks have too many options up for grabs this season.
Hugo Boss
Balenciaga
Louis Vuitton
John-Varvatos
Berluti
Hugo Boss
FUR-TASTIC
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S‘LOGO’N
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FUR-TASTIC
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Taking a cue from the top trending styles of the womenswear segment pertaining to last year, designers decidedly introduced details in the form of colourful furry patches over jackets, hoodies, gloves as well as shoes – apart from classic (faux) fur, mink and shearling coats. Feathered versions of (faux) fur, over wide lapels seemed to have gained a collective approval from the menswear bandwagon this season.
The slogans running through Lanvin, Sankuanz, Raf Simons and Ami channelled in a teen spirit voiceing ongoing contemporary politics and socio-political conditions around the world. It seemed like every designer needed to get something off their chest. Keeping the words simple and somewhat arbitrary is their way of addressing the issues at hand. Alternatively, the millennium inspired logo-revival continues to gain momentum as LV, Supreme and Dior stamp their garments with pun-induced identities.
Comfort and utility-based outerwear is taking centrestage this season with designers focusing on performance as much as style. In contrast to the previously trending slimmer silhouettes, voluminous silhouettes playing on proportion, shapes, lengths (cropped seems to be a favourite) and colour, found their way onto hi-tech materials. What grabbed our attention though, were the magical pairing of padded jackets with equally padded trousers to go along with them.
Vertical stripes – in all their glory, have emerged victorious this season. The bolder and much vibrant stripes from Spring/ Summer 2017, have given way to the more mellowed down, menswear classics – pinstripes in varying widths and contrasting colours. Sharply tailored or slouchy and oversized – the striped suit print has made a definitive comeback.
FASHION BUSINESS
From Furs to Florals Tr e nd s F/ W 2 0 1 7 - 1 8 The fabrics and prints always form the bare bones of every season’s underlying mood and silhouette. The coming Fall/Winter season will see another wave of reimagining the nostalgic shapes of bygone eras. However, the difference this time is that it is not just about remembrance but taking comfort in the memories and trying to escape from the chaos of the present. Therefore, fabrics like wool, corduroy and suede that are the ones most in demand instantly signal a calm and luxe coziness, but that does not mean luxury is out; rather the opulence of the past is what everyone is craving for and that is evident in the comeback of fabrics like fur, fleece, corduroy and velvet. Prints are also seeing a similar set of references where we see modern application of retro motifs and plentiful checks as well as strong stripes. Designers are constantly looking at abstract/expressionist artworks to express themselves and wherever art is not enough; they are using capitalized slogans in clear words to get their ideas across the board.
FABRIC TRENDS
1 FAUX FUR Nothing says old school elegance like lavish faux furs making a strong case for the maximalist trend that Gucci started with their fur slippers. Fur is everywhere this season from smaller accent pieces like stoles and collar details to heavy coats like the Vetements F/W 2017-18 opening look.
Say hello to a fabric that is the workwear brother to velvet and has been doing its own rounds on the runways of late. Though we cannot discard velvet as a hit fabric but looking ahead, we predict corduroy as the next big throwback to the ’70s. The construction details in corduroy make it durable but soft and lustrous;
Miharayasuh iro
Erdem
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Kolo r
Some designers are embracing the trend in all its boldness, using animal prints and multicolours to channel all the jazz while others are keeping it clean with jacket linings and wrap-ups. Fur is an
undeniable crowd favourite making its appearances on the street style scene just as much as the runway.
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3 a perfect match for trousers, casual suiting and even overcoats. A similar material that retains the softness factor and emits a beautiful yet understated sheen is suede and serves as the perfect alternative to velvet in outerwear.
3 CABLE KNITS When puffer jackets were the most experimental piece of the season, how can we not expect to see more ski outfits getting an update? Ski garments have been making their waves and seemingly, the by-product is the return of chunky cable knit sweaters making a strong case for ‘bigger is better’. While some designers are embracing heavy knitwear and making large sweaters in brighter colours, others are sticking to classic shades but creating more interest through intense knitting styles.
4 SILK SATIN You can never talk about luxurious fabrics and forget about the power of silk. Being a fabric this
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Todd Snyder
“Camouflage is definitely a big-big hit and we’re doing it in different colours like grey, green and brown. Apart from winter favourites like berries, burgundy and grey is a very big colour this season and so is khaki green. We are working with a lot of structure play this time in terms of heavy weight oxfords, waffle and honeycomb knits. There are no stripes in the works but checks are the prints of the season. A lot of inspiration is coming from the dandy look, so many heritage line references are visible with buffalo, tartan, shadow checks as well as many windowpane checks. Fabrics like velvet, corduroy and un-cut corduroy are looking sensational. We are not doing much fur but polar fleece linings and sheepskins are certainly happening.”
5 versatile, silk is never really out of fashion but this season it is present in all its visibility through the soft glistening satin weaves. As the market for innerwear has increased, thanks to its new acceptance as outerwear, so has the demand for satins. Silk satin is coming in everything from delicate slip dresses to bomber jackets, suiting and of course, the floor length gowns that were spotted everywhere this award season.
5 WARM IN WOOL Soft wools have their own place in winter fashion and designers are looking at ways to let the wools take centre stage with tweeds this time. Reminiscent of the grand English countryside, tweed is easily the wool on our mind. Going beyond the obvious, wool is not just coats but is being used everywhere from dresses to twin-sets and suiting pieces. Apart from the usual favourites, cashmere is also having its big moment because of its recognition as an investment worthy fabric rather than something that is merely fashionable.
Meenakshi Patra, Pearl Global “We definitely think heavy is a big trend in knitwear this season. We are using a lot of 4 gauge and 2.5 gauge for knitting sweaters. Hand knitting is also in demand as well as fancy yarns. Though the knit is much thicker; we are using very earthy colours like brown and greens.” Sumit Khanna, Khanna Knitwears & Exports “We have noticed that there is a huge surge in demand for textures. Therefore, we are using fabrics like corduroy and fleece. Apart from fleece, we are also using fur for linings in outerwear. Wool is also in demand. We are using checks in collar details and horizontal stripes on the front for T-shirt brands like Polo and Bugatti.” Amit Agarwala, Genus Apparels “We are not working on geometrics but more on variations in stripes and florals this season. Stripes are getting broader for Winter 2017 and they are in contrasting colours for both womenswear and kids’ collections. In terms of fabric, there is a lot of texture in demand and we are achieving that with crocheted laces, poly-taffeta and heavy georgettes. There is a lot of shine as well in the collections as we are using plenty of satins and scuba fabrics.” Amit Kedia, Chimera Threadkraft
PRINT TRENDS
1 CHECKS ARE
Stripes are having its biggest moment of all time, wherein we are seeing more variation in striping than any other prints. The trend here is not just of bold awning stripes but also the crispness of pinstripes, which is always stealing the show. The use of stripes in flee flowing silhouettes is creating a new balance and imbuing a sense of power in clothing. However, they are not just endowing strong lines to designs anymore but the bright colour palettes and contrasts are giving it a more animated look as well.
3 EXPLOSIVE
CAMOUFLAGE Maybe it is an answer to all the unrest and ongoing violence that doesn’t seem to stop or another hunt for protection but military references have been coming from left, right and centre in fashion. Ironically, the most prominent
Ovadia and Sons
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of which is camouflage prints, which is blasting the runways and is present on everything from T-shirts, outerwear to flirty co-ordinates. Designers are experimenting with different colour combinations and mixing other patterns with it to make this disguise of a print, stand out.
4 ABSTRACT ART Fashion and art have always shared a gallant relationship and for good reason; who does not want to look like a walking piece of art? This season is all about expressing your feelings on the surface and it is only fitting to make use of abstract artists to accomplish that. Designers are using everything from paint drippings to randomized line drawings, sometimes as small details but mostly going for the full blast with dollops of colours as if someone dropped buckets of paint over their fabric inventory.
5 RETRO FLORA One of the most iconic things from the ’70s and ’80s were the
Versac e
2 STANDOUT STRIPES
Acne Studios
As a season focusing more on the strong lines, you cannot end the list without mentioning the print that every designer is using for coats and jackets – the Prince of Wales check.
Comme Des Garcons Homme Plus
Gingham is going strong on both the Indian and international runways and can be seen in supersized to miniscule sizes and in an array of colours everywhere. Plaid is another check that is competing in this race, a pattern that is significantly inspired from the ’80s era suiting styles; it was spotted in multiple winter collections.
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WINNING
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crazy textile prints in colours that were never anything less than the brightest hue on the wheel. However, designers are reimagining the same lozenges and eclectic florals in less hideous ways that will work for the modern aesthetic while
retaining a hint of the past like a secret. What was once the quintessential dad sweater pattern – argyle is now the most hip style staple coveted by all the ‘It girls’ in fashion and is finding its place on a wide range on silhouettes.
FASHION RESOURCE
S/S ’ 17 – Bralette
FASHION FILE
Layered over buttonedup shirts, paired with suits or worn over utilitarian dresses, bralettes were seen being paired with anything and everything this season. Details like ruching and ruffle trims cropped up at Miu Miu and Altuzarra (who also introduced printed styles) whereas Alexander McQueen decided to go all racy by adding studded details and embellishments atop their bralettes which they layered over sheer dresses. Fur, vinyl and sheer were other favourite fabrics that made a case for this obvious trend. Victoria Beckham played with velvet while Céline introduced crochet versions over shirts. Giambattista Valli weaved a dreamy story around soft laces and Miuccia Prada went all out with ostrich feathers signalling a bold and ardent return of the bralette this season.
Riccardo Tisci exits Givenchy The LVMH-owned couture house Givenchy has bid goodbye to its Creative Director, Riccardo Tisci after his contract ended on January 31. The designer, who had been at the creative helm of Givenchy for 12 glorious years, is responsible for completely rejuvenating the house and bringing it back to life. Owing to his departure, the collection shown at Paris Couture Week in January will be his last for the French house and they will not be presenting at the next Paris Fashion Week. Apart from creating the much celebrated haute couture collections for Givenchy, Tisci earned credit for his strong friendships in the industry with the likes of Madonna, Beyoncé and Kanye West. There are strong rumours that he will now join his long-time friend and muse Donatella Versace at her namesake label.
Neiman Marcus tries plus size in stores In the middle of dwindling sales, Neiman Marcus has decided to tap into a previously less explored segment of plus size clothing. After having experienced overwhelming response from selling larger sizes online over the last 2 years, the retailer has realized the propitious demand and is testing out the same through five of its outlets opening shortly. Frank Crisci, VP of Merchandising at Neiman Marcus Last Call said, “There is a lot of product out there but a curated assortment of Tahari, Lafayette 148, Eileen Fisher etc. is harder to find.” The company plans to promote the new venture by calling it “curvy chic”, connecting it with Women’s Day and are expecting this foray to bode well for sales.
by Fashion Forward Trends
A/W 2017-18
Colour Story Abercrombie & Fitch reinvents store strategy
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In a bid to lure an elder audience, A&F is introducing a new in store concept that looks immediately mature and polished. Designed by MJ Sagan Architecture, the new look has a boutique feel with a striking entrance resembling a runway with 40 mannequins lined up at the front signalling a clear shift towards personal styling. The store looks warm, inviting and inclusive opening its doors to the old teenage consumers as well as a fresher customer base. With the unconventional fitting rooms that look like suites and more space for movement, the brand is moving towards a seemingly luxurious and high-end appeal. The first store to witness this evolution will be in Ohio and is only the first of the seven that will be opening up for business within this year.
INDUSTRY WIRE
Silver Spark Apparel’s new factory in Ethiopia to start in May
Three start-up units in apparel export arena; niche products their success route
Men’s suits specialist Silver Spark Apparel (a subsidiary of Raymond) is expecting to start its new unit in Awasa, Ethiopia in May 2017. As per schedule, the factory which was to start in April has now been pushed back by a month. The company, with turnover of almost Rs. 450 crore in current fiscal, is working on this project for last 1½ years and is expecting to grow by 150 per cent in next 2 to 3 years with the support of this new factory.
Tushar Sharma, CEO(R) with his colleague JS Kohli of YogueActivewear
Prashant Jain, DGM – Marketing & Merchandising of the company told Apparel Online, “Few issues were there, but slowly we are overcoming that, and in May we will commence production.
Tanushree (L) and Pradipta Basu, Founders/Designers and Directors of Shorshe Clothing
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Prashant Jain, DGM–Marketing & Merchandising, Silver Spark Apparel
Initially the capacity of the factory will be 4,000 suits per day.” Having the privilege of duty-free access, Ethiopia is today the attraction for apparel manufacturers. Low-cost labour availability is another advantage of this country; also local Government is giving some relaxations. The company is also being provided land on long-lease by the Ethiopian Government, besides electricity at a price which is one-third compared to India. Known for quality suits, Silver Spark Apparel was set up in 2003 for manufacturing suits and formal trousers.
n a time when established Indian apparel exporters are finding it difficult to survive because of the near recessionary market, few young companies are not only entering into apparel export market, but are growing too. All these companies have a niche focus, participate at international sourcing fairs and are also exploring new customers from across the world for further growth. Meet Tushar Sharma, an IIT Delhi pass-out… Rather than exploring engineering, he forayed into designer fitness apparels and valueadded yoga wear. Tushar, the CEO of Yogue Activewear (Noida), initiated this company two years ago… “We tried to add fashion elements to a normal ‘boring’ sports clothing. My enthusiasm for fitness brought me into apparel sector and interest in manufacturing and pushed me to start my own factory,” he said. Apart from having its own brand and manufacturing for overseas labels, the company is also exporting 30 per cent of its production to the USand European markets. “Things are more and more clear to us now and repeat orders are boosting our
Mehjabeen Ansari, Creative Director (L) and Mohammad Imran, Head Sales & Marketing, Mehjabeen
confidence,” says Tushar who is using in-house cutting, stitching, sublimation facilities to produce 20,000 pieces per month. Average FOB of the company’s product is around US $ 6. Mehjabeen Ansari, who has designated herself as a Creative Director of Mehjabeen, Noida and rightly so because her strength is designing, started garment manufacturing, three years ago. Although Mehjabeen and Mohammad Imran, Head – Sales & Marketing of the company have extensive experience of the fabric industry, it is their passion for fashion which brought them into garmenting. The focus is primarily on Bohemian fashion, a product in great demand in South America and some parts of Europe. Even though the markets are not responding too positively, how they continued to grow, is a strategy. “We produce selective designs and that is why we are never out of business. Our designs are very rare in the market, so buyers have to come to us for that,” said Imran, who started with one buyer and now has 10 buyers. Mehjabeen, who creates her own mood-boards and handles PD, is
planning to expand team in future. Despite all odds, the company expects to see 25 per cent growth this year and also in the future, from exports. Not only in Delhi-NCR, this ‘tide of budding apparel entrepreneurs’ can be seen in Kolkata as well… Just a year old into apparel export business, Tanushree and Pradipta Basu, Founders/Designers and Directors of Shorshe Clothing feel proud in being called – the limited-edition brand. All the products of this company are handwoven/khadi (sourced from Bihar and West Bengal) but are very modern in design. “With focus on sustainability, we use vegetable dyes…, and when it comes to fashion, our silhouettes are very western,” mentioned Tanushree, who prefers small orders from buyers. As top brands are coming up with sustainable clothing lines, both are enthusiastic about future opportunities in the segment. The FOB prices of the company start from US $ 10 and goes up to US $ 100. The firm that has shipped orders to the US recently, also participated for the first time in the just concluded IIGF in the Capital.
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20 MoUs signed to promote textile and apparel industry in North Eastern Region
Smriti Irani with other ministers during the summit
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o promote textiles and apparels industry further in the north-east states of India, Ministry of Textiles (MoT) and Ministry of Development of North Eastern Region (Ministry of DoNER) organized 1st North East Investors’ Summit in Shillong. The event, inaugurated by Union Textiles Minister Smriti Irani, witnessed over 80 buyers and leaders of textiles industry. About 20 MoUs between various companies of export promotion councils, and associations took place. These MoUs focused on promoting collaboration in the textiles sector in each of these states in the north-east Region and also on developing and promoting North Eastern Region (NER) handicrafts, handlooms, agro textiles &geotextiles in these areas. Arvind Ltd. and Connect Studio (Nagaland) will work to operationalize apparel centres. Apparel Export Promotion Council (AEPC), Creative Garments (Meghalaya), Fabric Plus would facilitate handholding and monitoring in technical design, production, marketing and export-
related matters and enhance production &exports of garments from apparel centres. Arvind Ltd. has an MoU with Pinnacle Skills (Nagaland) and Elam Industries (Arunachal Pradesh) and will support for technical design and production in apparel centres. Similarly, the Clothing Manufacturers Association of India (CMAI) and Sneha Textiles from Tripura – to facilitate handholding and mentoring by Arvind Ltd. – agreed upon areas to operationalize the apparel centres. Harilloom Naga, Nagaland, Shopper’s Stop and EPCH in a joint venture took an initiative to increase the export of handicrafts by providing training, design and trend inputs platform for marketing in India as well as overseasmarkets. Carpet Export Promotion Council (CEPC) also has an MoU with local carpet exporters; the National Institute of Design (NID) and The Ahmedabad Textile Industry’s Research Association (ATIRA) also haveMoUs. Besides the above, The Synthetic & Art Silk Mills’ Research Association (SASMIRA) also has an MoU with
AEPC has initiated cluster development programmes for improving supply side of Indian export basket. It was decided to start this through development of the Metiabruz garment cluster which has over 5 lakh small manufacturers and a production capacity similar to Tirupur.
Krishi Vigyan Kendra (KVK) for increasing the acceptability of agro textiles. The MoT alone has sanctioned projects worth more than Rs. 1,040 crore for the NER. Recognizing wide scope for silk sector in NER, the Government of India will support sericulture in the region with infusion of Rs. 820 crore. The Textiles Minister also launched India Handmade Bazaar Portal which will provide direct market access facility to handloom weavers and handicraft artisans, and announced that the master craftsmen from NER will teach at various NIFT centres across the country. The summit was also attended by Dr. Arvind Panagariya, Vice Chairman, NITI Aayog; Dr. Mukul Sangma, CM of Meghalaya; Dr. Jitendra Singh, Union Minister of State (I/C), DoNER; Kiren Rijiju, Union Minister of State for Home Affairs; Ministers and their representatives from all eight North Eastern States (Assam, Arunachal Pradesh, Mizoram, Meghalaya, Manipur, Nagaland, Sikkim and Tripura), besides investors across the country.
Haryana Government's Draft Textile Policy falls short of what other states are offering to set up industry
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he State Government of Haryana (India) has drafted a new textile policy with an aim to create 50,000 new jobs and attract investments of up to Rs. 5,000 crore to become a textile manufacturing hub. The policy is packed with fiscal incentives and provisions for better infrastructure; establishment of textile parks; and facilities for skill development of textile workers in the state. However, if the incentives are measured against other State Governments (mostly new states eager to set up apparel manufacturing in the region to generate employment), then the incentives fall short. Yet, the advantage that Haryana enjoys over a developed infrastructure in garmenting and a very strong supply chain base, is something which new states getting into garmenting will struggle to provide, and may actually work in Haryana’s favour. This sector already provides employment to about one million people, and readymade garments worth US $ 2 billion is exported from the state annually. According to an official, the draft policy proposes capital subsidy of 10 per cent for the eligible new projects of all textile enterprises across the state. It also eyes at positioning Haryana as a preferred destination for global textile majors and boosting textile exports by a Compound Annual Growth Rate (CAGR) of 20 per cent during 2017. Also, as the state is one of the leading cotton producers in the country, the policy has been framed with an eye on the cotton belt of the region. Under the policy, Haryana State Industrial and Infrastructure Development Corporations (HSIIDC) will provide industrial
Incentives in new Haryana textile policy vs. incentives offered by another state looking to establish garment industry in the region
The advantage that Haryana enjoys over a developed infrastructure in garmenting and a very strong supply chain base, is something which new states getting into garmenting will struggle to provide, and may actually work in Haryana’s favour. plots for a lease of 33 years with 5 per cent increase in annual lease limit. Panchayat land will also be made available on lease for industrial development. The State Government will also facilitate setting up a textile park at Hansi in Hisar district. The park shall house weaving, seizing and garmenting enterprises to augment the already strong existing infrastructure for ginning and spinning. The enterprises that will enable new technologies at their units will get monetary assistance of up to 50 per cent of the cost from recognized national institutes, along with electricity exemptions from the Haryana Government. In line with the PM’s visions for the khadi industry, the Government plans to facilitate retail space at nominal rates. Locations such as famous tourist spots, places with heavy footfall such as airports and retail hubs are proposed to be explored for such opportunities. The draft policy has been put in public domain and suggestions invited from stakeholders up to 28 February 2017, which would be factored in while giving it a final shape.
Incentives
Haryana (established garment hub)
State developing garmenting hub
6% per annum
7% per annum or 50% of the interest rate, whichever is lower on total loan
10%
20%
INR 36,000 per year
INR 60,000 per
for SC/women and INR 30,000 for general category for 5 years… Ceiling of INR 50 lakh (if 50% of workers are from Haryana)
year per worker for 7 years for SC/ST/women it is INR 72,000… additional INR 1,000 per person towards ESI & EPF for 5 years
Nil
Assistance of 50% of the total expenditure to a maximum limit of INR 10 lakh for obtaining quality certification
100% exemption for 10 years
100% exemption for 5 years plus reimbursement of 50% of power tariff for 5 years
Maximum INR 10,000 per trainee
Maximum INR 13,000 per trainee
No mention
Special provision for ease of doing business
Interest subsidy
Capital investment subsidy
Employment generation subsidy
Quality certifications
Electricity duty
Skill Development
Ease of doing business
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An AO investigation…
WHY JAIPUR EXPORTERS ARE STRUGGLING TO EVEN REACH RS. 100 CRORE-MARK?
Suresh Agarwal, MD, Aman Exports
S
ome years ago, one well-known Jaipur-based exporter having 3 factories, approached Tesco, H&M and few other such top brands/ stores to work with his factories. The factories were even certified but after all this, the top brands refused to work with this Jaipur exporter without specifying the reason, even though the rates offered by the exporter were impressively less from those being offered by exporters in Delhi-NCR. Not the one to be disheartened, the exporter then approached top Indian buying houses and assured them that he will get at least 4-5 big exporters in the loop, as the buying office clearly said that they did not wish to come to Jaipur to work with a single supplier, but even then the buying houses refused by saying that it would add to their expenses…! The fact that buyers are not taking the initiative to explore Jaipur, preferring to remain in the comfort
Dalpat Lodha, Director, Lodha Impex
E SS E N T I A L S High Street Fashions, Jaipur – known for its socks (diabetic socks, flight socks), wrist bands & head bands, knee support, elbow support, among other products, is the only company in the city exporting such products to well-known global brands and doing very good business.
Rajeev Dewan, MD, Ma’am Arts
MohammedArif, Director, Kagzi Exports
zone of the NCR, which is close to the city, is one of the biggest reasons that not even one apparel/ made-ups exporter of Jaipur is doing annual business of Rs. 100 crore. The city which has 200 good apparel and home furnishing export firms has only 5 to 7 companies which are doing turnover of Rs. 50 crore or above. Apparel Online approached both top and small exporters of Jaipur to find out their views on how the city can expand and companies would be able to touch the magical figure of Rs. 100 crore. Suresh Agarwal, MD, Aman Exports – doing annual business of more than Rs. 50 crore and equally strong in exports as well as domestic market – insisted that whatever export orders Jaipur has got so far is totally through importers. “We are still waiting for big department stores or top brands like Zara,
Mango, Walmart, H&M, Tesco. Whatever orders Jaipur has, were given by importers and who are getting ‘eliminated’ by the day.” So, what is the solution? He adds, “The only solution is to bring the big stores to Jaipur; for this everyone has to work collectively, be it our Councils, Associations or the State Government.” Agarwal rightly points out that Jaipur exporters are ready to give products at lower price compared with any other hubs as they have advantages of less overheads and lower minimum wages. He does not agree with the opinion of fellow exporters that there are no orders in the market and even sentiments are low. “Few of my Delhi-based friends, who are also into garment exports, don’t have time and are quite busy with orders from US and Europe,” says Agarwal. But he does agree that Japan, Brazil, South Africa and Russia, which
were the core markets for Jaipur are not in good shape due to various reasons. Recently, honoured by AEPC for maximum export to Japan, Dalpat Lodha, Director of Lodha Impex (turnover of Rs. 90 crore from Jaipur operations) endorses the view that buyers prefer not to place bulk orders in Jaipur. But he is positive that as soon as markets will pick up, Jaipur-based companies will have more orders. Ironically, exporters admit that not many in the city are interested in bulk orders. One reason for this is the kind of margins that Jaipur exporters enjoy, which are far better than what most of the other hubs have. The attitude of most of the exporters is to make more money by less work or more profit in less orders, rather than doing volume business which gives such magical numbers, but not necessarily the profitability. But now as the situation is changing and one doesn’t get so much orders, at bigger margins, so the industry is struggling. Another veteran of Jaipur, Rajeev Dewan, MD of Ma’am Arts, adds that in Jaipur exporters after attaining a certain level get contented, as they have grown from the grassroot level with 3-4 machines and personally been involved in all aspects of the business, so the burn-out rate is higher. Many a times this also results in lack of initiation of technical and professional help, which has hampered growth. Vivek Khandelwal, Director, Pattern India argues, “How many factories in Jaipur have IE Department or even IE staff. We need to think and work in this direction.” Even in case of companies that do want to hire, retaining pass-outs from leading institutes, is difficult. In consent with all the abovementioned reasons for current
condition of Jaipur, Mohammed Arif, Director, Kagzi Exports adds that raw material sourcing right from fabric to accessory is another hurdle to achieve bigger growth. “We need at least 7-10 days to develop a sample while in Delhi the same is possible in 24 hours. It really matters.” On the issue of top brands not coming to the city, he says, “all of us have to be aggressive in our approach to catch them.” Jaipur’s products are more suited for boutique stores, as they can give more value but not the volume. The city is not making any basic product or product of mass manufacturing like shirts or trousers. But exporters are hopeful that such products will be produced in the future as few companies are expanding their capacities. The industry believes that even if one company shows the way, others will follow it. Arjun Singh Shekhawat, Director, Rainbow Texfab says, “Fellow exporters need to work more on quality as day-byday buyers’ quality parameters are becoming higher. And one of the main reasons to lose on quality is the dependency on job-work, right from the stitching to value addition.” Many factors that are not in the hands of exporters have also affected the potential growth of the city. Ashish Ahuja of Ahuja Overseas says, “There is not enough air connectivity that can bring the buyers directly to Jaipur, similarly logistics is also a hurdle. The city doesn’t have big dyeing or printing mills.” However, Agarwal and few other exporters stress that it is only the lack of sufficient orders which hampers business, all other things are secondary. “If any exporter gets orders, all other issues, like lack of trained professionals, and raw material availability gets solved anyhow,” he concludes.
“Our city started with traditional strengths like tie & dye, hand block and most of the exporters are still limited to this, rather than mass production or exploring different product categories. Not only Jaipur, but the whole of Rajasthan does not have very heavy or big industry. Lack of Government support is also a big factor. Rajasthan has carpet, handicrafts, and furniture units which come under the cottage industry, so its beginning was slow. Being a tourist city, it is costly too; the land price is high and the state is lacking in aggressive policies like those of Jharkhand or Odisha. The city doesn’t have a cluster with all necessary facilities like dyeing, washing, etc. The hub also misses a strong political will, which is required for such development; it is hard to get the job done in Jaipur.” –Ravi Poddar, President, GEAR (Garment Exporters Association of Rajasthan)
An exceptional case is Bella Casa Fashion & Retail Limited, the only company doing Rs. 100+ crore from Jaipur and that too mainly working with domestic market and made-ups. Harish Kumar Gupta, Chairman of the company has some good suggestions for the industry. He says, “Exporters have to take risk and do lot of experiments. Printing techniques too need to change here; we have done men’s shirts for few brands, so this city can manufacture anything. People here are very content and don’t want to take headaches. They tell the buyer that we have this, if you want, you are welcome, otherwise bye-bye. This attitude needs to change. I assure the industry that if they will apply latest technology, they will definitely get benefited and grow.”
EXPORT STATISTICS
Apparel imports by US conclude with negative trend in 2016 January-December 2016 2017 is shaping up to be another uncertain year for clothing industry and its supply chain for the US as Trump factor is still playing crucial role in clothing imports. US is officially out of the TPP; Border Adjustment Tax may be adopted, resulting in hike in retail prices. Federal Reserve’s monetary policy as well as more complicated trade decisions by the new Trump administration might trigger the trade uncertainties in the country.
Global Apparel Imports by the US: Jan.-Dec. 2016
Total Decrease in Volume
1
Ladies dresses note positive trend for US in volume terms
2
T-shirts export from India falls in value terms
The growth of ladies dresses import bythe US has notedasurge in volume by 7.85%, thoughthe valueof imports in the categorysawdownwardtrend by () 0.24% as against the same period last year.
1.06 % Total Decrease in Value
5.23 % Percentage Decrease in UVR
While the decline in value of exports byIndia to the US in the mentioned categorywas (-) 0.16%, volume saw asurging trend by2.19%. Overall, the US registered decline in both value {(-) 4.29%} andvolume {(-) 0.55%} in the import during the review period.
4.15 % (Average UVR in review period was US $ 3.00 as against US $ 3.13 in the same period last year)
Total global apparel imports by the US – Jan.-Dec. ’16 (Qty & Value in M
2
Jan.-Dec. 2015
Jan.-Dec. 2016
& US mn $)
%Change
Type ofApparel
Change in Value Cotton
7.84 % MMF
1.93 %
Wool
11.28 % Silk & Veg
2.65 %
Change in Volume
Qty
Value
Qty
Value
Qty
Value
12245.05
41475.88
11771.99
38224.046
-3.86
-7.84
Wool
213.84
3699.61
192.363
3282.211
-10.04
-11.28
MMF
14446.85
38740.24
14652.29
37991.745
1.42
-1.93
309.91
1248.94
310.352
1215.831
0.14
-2.65
27215.65
85164.67
26927.00
80713.83
-1.06
-5.23
Cotton
Silk & Veg Total
Total apparel exports to the US by 6 major manufacturing destinations – Jan.-Dec. ’16 (Qty & Value in M2 & US mn $)
Jan.-Dec. 2015
Cotton
3.86 % MMF
1.42 %
Wool
10.04 % Silk & Veg
0.14 %
[The information has been extracted from US custom site and further analyzed.]
Jan.-Dec. 2016
%Change
Countries
India Bangladesh China Pakistan
SriLanka Vietnam
Qty
Value
Qty
Value
Qty
Value
1023.55
3665.40
1044.238
3640.269
2.02
-0.69
1869.94
5401.45
1862.265
5305.668
-0.41
-1.77
11385.72
30540.94
11174.81
27922.015
-1.85
-8.58
590.97
1433.39
534.705
1262.393
-9.52
-11.93
484.12
2037.45
470.993
1967.302
-2.71
-3.44
3135.56
10563.85
3352.373
10807.961
6.91
2.31
3
Legwear import by US tumbles both in value and volume
4
Trousers, a growing category for Bangladesh for its exports to US
5
Legwearwas not adelightful import bythe US as the country noted downfall in volume by(-) 6.04%, whereas value decreased by (-) 10.19%.
6
Ladies blouses import by US registers growth
7
Foundation garments export records massive growth for Vietnam
During the review period, the US noted surge to its import of ladies blouses. While increment of 2.60% was recorded in value, the volumes rose by 5.54%.
Bangladesh registered growth year-on-year, in value terms by 0.79%, while quantity too saw an increase by1.81% in its export of trousers to the US.
Vietnam noted stellar surge in its export of foundation garments to the US both in value andvolume terms. Value increased by 181.03% whereas, volumes were up by 158.16%.
Exports of babies wear continue to grow for India
China’s export to US sees downfall in sweaters category
8
Babies wearexports from India grewboth in value andvolume. The country registered increase in value by4.67% while volumes were up by 16.46% year-on-year.
The country has registered negative growth in the segment. There has beenadownturn in both value andvolume. Though the value decrement was (-) 19.03%, volumes were downby(-) 14.87%, compared with the same period last year.
Item-wise quantity increase/decrease in apparel imports by the US: Jan.-Dec. 2016 (Qty. in doz, legwear in dpr, babies wear in kg) Exports toUS Total Imports byUS APPAREL TYPE
China
India
2015
2016
%Change
2015
2016
%Change
Babies Wear
123,955,518
113,954,876
-8.07
60,485,685
54,839,888
Foundation Garments
57,649,566
56,974,367
-1.17
33,892,455
32,134,885
Jackets &Blazers
49,211,753
46,985,824
-4.52
18,749,984
18,324,668
-2.27
662,692
Ladies Blouses
52,840,754
55,769,282
5.54
21,461,124
22,979,284
7.07
8,132,320
Ladies Dresses
54,679,217
58,970,606
7.85
27,055,766
28,475,025
5.25
4,045,850
Ladies Skirts
Bangladesh
Vietnam
2015
2016
%Change
2015
2016
%Change
2015
2016
%Change
-9.33
6,891,355
8,025,435
16.46
13,104,590
11,089,893
-15.37
10,053,813
9,394,530
-6.56
-5.19
1,540,258
1,708,898
10.95
3,175,353
3,612,674
13.77
1,036,197
2,674,996
158.16
662,741
0.01
2,568,266
2,336,907
-9.01
8,099,797
7,680,354
-5.18
8,223,359
1.12
2,248,325
3,185,632
41.69
7,541,510
7,890,521
4.63
4,259,919
5.29
1,186,044
1,730,791
45.93
8,985,112
10,378,623
15.51
17,266,455
14,797,417
-14.30
6,886,821
5,706,041
-17.15
846,002
671,463
-20.63
1,040,468
1,060,454
1.92
2,821,188
3,269,791
15.90
353,523,703
332,161,873
-6.04
206,550,923
206,471,931
-0.04
3,178,940
2,771,342
-12.82
177,543
73,553
-58.57
2,125,924
2,768,282
30.22
Men's Shirts
43,250,968
42,776,378
-1.10
9,546,080
8,953,568
-6.21
2,869,591
3,133,962
9.21
12,376,823
12,356,714
-0.16
4,218,925
4,590,698
8.81
Nightwear
52,968,855
52,158,025
-1.53
32,079,382
31,679,078
-1.25
3,041,352
3,127,445
2.83
1,985,391
1,790,650
-9.81
4,157,698
4,871,086
17.16
Legwear
Suits /Ensembles
14,108,164
12,318,920
-12.68
6,725,731
6,038,673
-10.22
498,759
564,761
13.23
371,638
242,817
-34.66
2,474,848
2,143,085
-13.41
Sweaters
20,767,998
18,104,829
-12.82
17,374,989
14,791,621
-14.87
105,950
49,148
-53.61
1,233,540
1,147,951
-6.94
369,288
375,022
1.55
Trousers
290,468,242
285,610,882
-1.67
85,173,086
81,980,955
-3.75
5,047,525
5,064,488
0.34
41,873,717
42,630,774
1.81
41,574,101
45,077,470
8.43
T-Shirts
563,450,215
560,365,769
-0.55
107,002,959
104,398,229
-2.43
22,543,541
23,037,628
2.19
22,107,903
20,789,044
-5.97
73,603,644
75,893,418
3.11
Undergarments
271,152,875
264,092,295
-2.60
51,491,681
50,619,944
-1.69
17,943,735
17,760,329
-1.02
28,375,435
25,418,008
-10.42
43,582,354
46,344,639
6.34
Item-wise value increase/decrease in apparel imports by the US: Jan.-Dec. 2016 (Value in US mn $) Exports toUS Total Imports byUS APPAREL TYPE
China
India
Bangladesh
2015
2016
%Change
2015
2016
%Change
2015
2016
Babies Wear
2,554.83
2,314.22
-9.42
1,195.60
1,065.56
-10.88
158.10
Foundation Garments
2,601.86
2,580.10
-0.84
1,272.41
1,202.14
-5.52
107.94
Jackets &Blazers
7,600.18
6,834.56
-10.07
3,607.24
3,200.34
-11.28
Ladies Blouses
3,573.83
3,666.73
2.60
1,385.71
1,384.97
-0.05
Ladies Dresses
4,929.74
4,917.89
-0.24
2,411.15
2,289.49
Ladies Skirts
1,087.09
914.55
-15.87
394.64
Legwear
2,180.70
1,958.47
-10.19
Men's Shirts
3,687.53
3,496.98
-5.17
Nightwear
2,387.44
2,270.76
Suits /Ensembles
1,358.16
Vietnam
%Change
2015
2016
%Change
2015
2016
%Change
165.48
4.67
239.56
204.83
-14.50
226.07
211.32
-6.52
126.50
17.20
72.11
77.04
6.83
53.55
150.48
181.03
102.70
91.19
-11.21
390.79
329.18
-15.77
1,423.38
1311.79
-7.84
614.69
615.54
0.14
126.17
176.83
40.15
399.73
424.06
6.09
-5.05
366.23
392.39
7.14
50.62
65.83
30.04
673.30
699.51
3.89
326.50
-17.27
67.21
54.12
-19.48
40.22
42.88
6.61
180.14
174.99
-2.86
1,220.12
1,137.57
-6.77
17.27
18.23
5.53
0.99
0.70
-29.51
12.68
14.77
16.50
856.06
777.51
-9.18
247.24
244.17
-1.24
738.59
711.58
-3.66
340.00
368.77
8.46
-4.89
1,435.12
1,346.06
-6.21
100.20
109.80
9.58
61.00
55.67
-8.73
225.27
230.57
2.36
1,215.08
-10.53
312.42
291.16
-6.80
74.51
61.64
-17.27
24.87
17.36
-30.19
167.56
167.42
-0.08
Sweaters
2,225.28
1,850.91
-16.82
1,835.23
1,485.94
-19.03
38.60
28.70
-25.64
48.86
44.13
-9.68
29.10
21.88
-24.80
Trousers
18,731.42
17,869.03
-4.60
4,962.08
4,517.70
-8.96
381.91
363.00
-4.95
2,367.00
2,385.65
0.79
2,499.36
2669.57
6.81
T-Shirts
21,414.71
20,496.37
-4.29
5,111.96
4621.182
-9.60
919.009
917.56
-0.16
619.59
584.35
-5.69
3,146.44
3167.82
0.68
3,990.92
3,845.93
-3.63
808.49
794.30
-1.76
317.38
302.09
-4.82
311.21
285.86
-8.14
562.76
549.54
-2.35
Undergarments
Canada Apparel Imports January-Decem ber 2016
Canadian economy is under threat as Trump decides to end TPP agreement Even though holiday season was around, Canada still did not see any positive turnaround in clothing import in the month of December. The year 2 0 1 7 is also projected to be uncertain as far as import of clothing is concerned because of Trump’s decision of not proceeding with the TPP that will have significant impact on trade issues resulting in the skyrocketed retail prices within the country. Hence, Canada is evaluating whether it wants to pursue specific bilateral trade agreements or work more closely with another regional trading block, led by China.
CanadaImports
2.48%
While the knitted segment saw decline of (-) 2.47%, the woven segment registered negative growth of (-) 2.49% in valueterms.
B’Desh Exports
3.63%
Trade Update
Exports in wovencategory increased by4.01% in value, while exports in knitted garments also surged by 3.14%.
Indian Exports
1.46%
In knitted segment country registered asurge in its exports to Canada.While value of exports was up 1.00% in knitted segment, in wovenalso there was a gainof 1.80%.
Sri Lanka Exports
5.97%
While the country saw hike in knitted category by 3.45%, in woven segment it registered a boost of 9.83%.
Pakistan Exports
0.41%
In wovencategory, there was arise of 12.77% in value, though knitted segment exports registered adrop of (-) 11.07%.
Vietnam Exports
0.13%
The country registered decline in knitted garments by (-) 1.74% in value, though in woven segment valueofexportsgained 2.14%.
ChinaExports
8.25%
In the knitted garments segment, the country registered declining trend of (-) 8.33%, while the wovengarments also saw a negative growth of (-) 8.17%.
Cambodia’s exports to US down by 7% in 2016, while Myanmar registers huge rise of 145% The uncertainties after Trump taking over as US President, rising exports from Vietnam and emergence of new market, Myanmar resulted in 7 per cent decline in Cambodia’s total exports to the United States to US $ 2.8 billion in 2016 compared to more than US $ 3 billion in 2015. However, the US’ withdrawal from TPP has given a ray of hope to Cambodia. The TPP would have eliminated most tariffs in the garment sector and the country would have lost to Vietnam. In the meanwhile, Myanmar has emerged as the “dark horse” in garment trade as it has come out strong with an aggressive and concrete master plan. According to the Myanmar Garment Manufacturers Association (MGMA), the Myanmar apparel industry operating under the cut-make-pack system exported more than US $ 1 billion worth of clothing in 2016 as against US $ 408 million in 2015, noting a massive increase of 145%.
RESOURCE CENTRE
A&E launches new reflective industrial sewing thread
American &Efird (A&E), a global leader in industrial sewing thread manufacturing, has announced the official launch of a new product in reflective innovation, Anefil™ Reflector having polyester fibre type. A&E’s Anefil™ Reflector is an industrial sewing thread designed and engineered for reflective visibility. Ideal for creating a decorative, reflective seam in coverstitch and over-edge stitch applications, Anefil™ Reflector can be used in a wide variety of apparel categories including, activewear, workwear, safety apparel, swimwear, denim and footwear. “A&E’s spirit of innovation continues with this new reflective product, Anefil™ Reflector,” said Mark Hatton, Vice President (Americas), A&E. adding, “Offered in a Tex 120 size, the new thread has twisted multi-filamentthread construction. This product is a versatile, decorative sewing thread and a valuable addition to the reflective market.” Unveiling the features of Anefil™ Reflector, A&E states this thread reflects light back to the light source, thus ensuring the maximum visibility in low light situations. In addition, this adds another layer of functionality in sewing that has traditionally only incorporated reflective tape. Hence, Anefil™ Reflector provides maximum luminescence and durability while maintaining aesthetic appearance. It’s worth mentioning here that through its global network, A&E’s products are manufactured in 23 countries, distributed in 50 and sold in over 100 countries worldwide.
ISPO Munich 2017 Intr oduces many in n o va t ions The 2017 edition of the world’s largest sports trade show ISPO Munich concluded successfully in Germany recently with an increase of 6 per cent in visitors’ footfall in comparison to last year. The event attracted more than 85,000 visitors this year from 120 countries as against 81,368 at the 2016 edition. This noticeable surge in the number of visitors was from Italy, Russia, UK, China and US. Many innovations were on display that made the event a trendsetter for the sports and activewear segment.
Freudenberg exhibits new sustainable padding Innovative technical textiles manufacturer Freudenberg Performance Materials Apparel exhibited the new comfortemp® fibreball padding at the ISPO Munich 2017. Developed in partnership with Napapijri (part of apparel firm VF Corporation), the comfortemp® fibreball material is a padding made of small interconnected fibreballs. According to the company, its heat insulation is comparable to that of ‘down’, and its breathability is twice as high as that of conventional padding. Napapijri will be marketing comfortemp® fibreball Technology under its own name: Thermo-Fibre® technology. It may be mentioned here that most of these paddings are produced sustainably. The Group is one of the largest recyclers of polyester bottles throughout Europe. 50 per cent of the fibres that the company deploys are from recycled polyester.
The show noted 97 per cent positive response from the participants. Also, the industry’s optimistic approach was clearly visible at the four-day show. On the exhibitors front, 3 per cent in rise in display was seen with a total of 2,732 participants who showcased their latest products, technologies and innovations at the fair.
In the sports sector, it does not just depend on the feel and the grip. Technical performance, rapid development and implementation – along with specific demands on the product – play a much greater role. “This is where Freudenberg Performance Materials Apparel is well positioned as part of the Freudenberg Group because we have the opportunity to generate innovations throughout the Group. Far beyond what a conventional lining and textile producer can achieve,” said Ulrich Scherbel, General Manager – Global Apparel Division, Freudenberg.
Invista’s Cordura bags 51 awards Invista’s Cordura brand has been honoured with 51 awards across six key textile categories in its 50th anniversary year at ISPO Textrends, part of ISPO Munich. The ‘Soft Equipment’ category features performance products for tents, backpacks, sleeping bags, shoes and more, with 19 Cordura
Eyes & Ears Farah Ahmed leaves Esprit; Zahid Abed takes charge
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fabrics recognized in this category including Cordura TPX fabric by Chang Ho, Cordura Lite, Ballistic, Classic and HP fabrics and Cordura AFT knits. The fabrics in ‘Street Sports’ category range from denim with new performance levels to lighter functional fabrics and finishes with a fashionable edge. 10Cordura fabrics were chosen as winners in this category, including Cordura Combat Wool Denim from Artistic Milliners, technical performance, comfortdriven Cordura denims from Kipas, Turkey and long-lasting Cordura 4ever fleece by Yoonia. The ‘Outer layer’ category features lightweight but ultra-resistant woven fabrics that can provide protection against the elements, which includes winners such as ultra-lightweight Cordura Naturalle fabrics all under 80 gsm from Yoonia, LeeJo and One Chang mills in Korea and Cordura Combat Wool suiting fabrics from Italian specialist Marlane. Another category ‘Base layer’ featuring next-to-skin fabrics for technical underwear, with pre-shaping, support, thermal or moisturemanagement performance, Cordura 4ever knit
fabrics from Yoonia were honoured in this category with Best Product and three additional recognitions. Also selected was a Cordura Combat Wool knit fabric. ‘Second layer’ category features fleeces, lightweight protective fabrics and performance linings usable for maximum thermal characteristics. Cordura 4ever wool flannel shirting by Chia Her was among the category winners. The sixth category ‘Membranes &Coatings’ features technical membranes. Cordura Naturalle fabrics by One Chang and Yoonia and Cordura Nyco fabrics from Samtex were recognized in this category. “We are pleased to see how our valuable authorized mills are being recognized for their dedication to creating long-lasting, durable Cordura fabrics, and we are truly humbled to receive a recordbreaking 51 awards in our 50th year. We believe the future of innovation is collaboration, and as we celebrate this major milestone in our brand’s history, we are dedicated to developing the next generation of durable solutions together,” said Cindy McNaull, Global Cordura Brand and Marketing Director, Invista.
fter being at the helm of Esprit, India for almost 5 years, Farah Ahmed, Head of Sourcing said goodbye to the company. Zahid Abed, her counterpart in Bangladesh, has in the meanwhile taken up her responsibilities, but it is not confirmed whether Zahid will manage both countries or is handling India office temporarily. Reliable sources informed Apparel Online that Farah left the company for personal reasons. As of now she has not joined anywhere. Graduate from Aligarh Muslim University and having an Executive Program from ISB, Hyderabad, Farah has worked with Triburg for almost 10 years followed by a 7 years’ stint with Monsoon Accessories/Urban Craft India. Zahid Abed has been working with Esprit from last two years and prior to that he spent 7 years as V-P at Li &Fung Bangladesh Ltd. Currently, Esprit is sourcing about 29 per cent from Bangladesh (almost same compared to China) and 7 per cent from India (on fourth number); Vietnam is contributing more than 8 per cent to global sourcing.
BCBG shuts 120 stores; Group may go for bankruptcy proceedings BCBG brand, associated with California-based BCBG Max Azria Group Inc. is closing down its 120 stores (mostly in the US). These stores either are unprofitable or have untenable lease agreements and will be shut after conducting closing store sales over the next eight to 10 weeks. The company is reducing its physical retail footprint after being negatively impacted by growth in online sales at its rivals. Media reports suggest that the group is preparing for a possible bankruptcy filing as itlooks to restructure its debt. The Group has more than 570 boutiques globally (including more than 175 in the US alone).
One of the stores of BCBG