FROM THE EDITOR-IN-CHIEF’s DESK… At a recent round table discussion, one representative from a buying office commented that the situation of workers in Indian factories is still not up to the expectation of international buyers and that worker rights is a faraway dream! For obvious reasons, the comment was met by an uproar from the industry participants and many expressed their frustration on how they were spending so much time, energy and money on such issues, yet buyers only saw what they wanted to and not what the industry is doing. It is becoming increasingly obvious that there is a gap in the perception of what is ‘goodpractices’ in worker welfare, from a buyer and supplier standpoint. The conflict instead of getting narrower is somehow gettingwider. Many times, we have highlighted the number of negative reports that find way into the public domain and the lack of accountability that such reports represent… Also one of the most surprising facts is that the companies spotlighted for non-compliance are in reality the ones that are most careful on this front. Could be that because these companies are big names and are vocal in their commitment to bring about inclusive growth, so their activities are always under scrutiny and any clink in the armour, however small, is blown out of proportion… On the other hand the small- and medium-level players are not ‘important’ enough to be ‘monitored’ by the so-called civil societies that have taken it upon themselves to be the consciousness of the industry. Without getting into the debate, I can only say that the attitude of organizations responsible for bringing in worker welfare is not without ‘fault’… Instead of suggesting and pushing for genuine change with some workable solutions, they have taken to policing. What we need is solutions, and one of the biggest factors that could actually breed change is harnessing the strength of ‘ownership’; making people feel that they are not just employees doing a job, but important members of a team that can change the fate of the company! Many may question on how this can be achieved, but in reality it does not cost much! It only requires a shift in attitude and an honest admission that each person working in the company is adding value and ‘bosses’ alone cannot make an exporter a ‘preferred supplier’. Having witnessed this industry grow from the late ’90s when even the word ‘compliance’ was scary to now, when we are talking ‘sustainability’, I can say with confidence that much has changed…for the positive, of course. Even buyers agree that today, basic compliance is an entry point to global business, so any company engaged in exports has to be compliant to ‘the law of the land’ for sure. Where the conflict starts is on how garment manufacturers are ‘treating’ their workers …Is it in line with global norms, do workers really know what their rights are; do exporters exploit the workers in an effort to meet deadlines, etc… From my experience, I find that most exporters are smart enough to understand the ‘price’ of non-compliance and would prefer to be seen as ‘caring’ and ‘compassionate’ employers, because though they do not get an extra cent or more orders for the same, they can lose business on suchgrounds.
EDITORIAL TEAM EDITOR-IN-CHIEF
Deepak Mohindra
EDITOR
Ila Saxena
COPY EDITOR
Veereshwar Sobti
ASST. COPY EDITOR
Sahil Sehgal
ASST. EDITOR-NEWS
Dheeraj Tagra
ASST. EDITOR
Neha Chhetri
ASST. EDITOR - FASHION
Anjori Grover Vasesi
SR. CORRESPONDENT-FASHION
Vishakha Somani
SR. EXECUTIVE-ADVERTISING
D KChugh
CREATIVETEAM
Raj Kumar Chahal Peeush Jauhari Satyapal Bisht
PHOTO EDITOR
Himanshu Kumar
OPERATION DIRECTOR
Mayank Mohindra
PUBLISHER & MANAGING DIRECTOR
Renu Mohindra
HEAD OFFICE Apparel Resources Private Limited B-32, South Extension-1, New Delhi-110 049 (India) Phone: 91-11-47390000, E-mail: editor@apparelresources.com Web associate: www.apparelresources.com
PRINTING TARA ART PRINTERS PVT. LTD. B-4, Hans Bhawan, B.S. Zafar Marg, New Delhi-110002 Tel: 23378626, 23379686
SUBSCRIPTION RATE Yes, I wish to subscribe to Apparel Online INR 2400.00
24 issues
*This rate is valid only for subscription in India
Subscription within IndiaSend Cheque/DD to Apparel Resources Pvt. Ltd. B-32, South Extn. Part-1, New Delhi-110049, INDIA International subscription (in Dollar) Credit Card using www.apparelresources.com Telegraphic transfer to Bank Account No. 03192320003806 (Swift No:HDFCINBB) with HDFC Bank, D-9, South Extn. Part-2, New Delhi-110049. INDIA
SUBSCRIPTION ENQUIRY 82-62-880-880 subscribe@ apparelresources.com
ADVERTISEMENT ENQUIRY +91-11-9811088666 rani@ apparelresources.com
GENERAL ENQUIRY +91-11-47390000 contact@ apparelresources.com
MIND TREE
Q-and-A To conduct your business better, which specific areas do you feel need more industry interaction: seminars or workshops? Is it fashion forecasting, technical/production issues, merchandising or regular updates on latest developments across the industry, like Brexit, GST, Modern Slavery Act, UK, etc.? Are you satisfied with the numbers as well as quality of such events that are currently being held by trade bodies or by professionals? Any special suggestion you would like to give to improve these kinds of knowledge-sharing events?
Ritu Singh, Operations Manager, Paramount Clothing, Ludhiana I think sessions on latest updates like GST should be given more importance and the same should be conducted frequently. I would also like to add that maximum seminars and workshops are organized in Delhi-NCR region only. Being based in Ludhiana, it is quite difficult for us to go and attend these seminars every time. More interactions/ sessions should therefore be organized in other regions also so that they can attend such knowledge-sharing platforms.
C K Tirumeni, Co-Partner, Abirami Exports, Coimbatore I would like to urge the industry/bodies to organize such events also in local languages; in my opinion there is no sense of speaking in English when nobody is able to understand. For us conferences on technical and latest updates like GST are a must. Like for example if we talk about the, GST, the newly announced taxation policy
is little known to us and we want to know something more about it. Technical matter is important and has always been a major section for our company as we want to learn and adopt more on the technology front.
Harish Todi, Director, J D Apparels, Palwal Technical and production issues are the most important aspects for any such kind of events. Interaction sessions on latest technologies and efficient production methods should be organized. Apart from this, I always emphasize that Government should create platforms where we can learn about some favourable policies which can be helpful for us to drive business well. Yes, GST is a good step for people like us who are into exports.
Dhruv Gupta, Director, Taurus Global, Sonepat We would like to attend more seminars on technical and merchandising sections rather paying heed to the latest developments, such as GST, Brexit and other
issues. These are the sectors which are playing pivotal roles in the growth of any organization. I also feel there is more need of seminars in terms of quantity, and frequency. Like we are only connected to AEPC, which results that we only get mails and information from them. I also feel that there is lack of communication and awareness in the industry. There should be more interactions between all of us. They should use more of social media sort of things to connect with the industry because we are using it quite frequently.
Anirudh Lal, MD, Macsam Clothing, Noida If I talk about the current need, then definitely it is GST, which was recently announced in the country and we would like to learn more about it. Industry bodies are conducting seminars on the same; one such seminar has been concluded in Gurgaon of late. But, when we talk about the regular issues, then it should be on ‘merchandising’. What I observed is that there is
a lack of knowledge on merchandising as a subject. The students who had their degrees from popular universities and schools don’t have any sort of practical knowledge on fabrics, designs and it ‘kills’ our maximum time to teach them the basics. That is the reason we had ventured into the skill development sector, so that we can make industry better. Merchandisers play very important role in running any organization. I am not at all satisfied with the number of events, and the numbers should be increased.
Manoj Meena, Proprietor, Mahima Fashions, Jaipur Product Development is an essential topic which should cater to these kinds of events, and is in fact, quite crucial for us. Being an exporter we need to create new designs and patterns to survive in the industry. We attended some seminars held in Delhi-NCR, but we want that industry bodies should conduct similar seminars in other regions like Jaipur, Ludhiana, Tirupur, so that we can also participate in them regularly.
Rakesh Khanna, Director, Jai Sai Fashions, Noida For us product development is the need of the hour, which can take our company forward. In a span of one year we try to do PD at larger level, at least 2 to 3 times. So for that we need to get some insight and guidance from the industry bodies and professionals on PD. Besides this we need more
NEXT MINDTREE
sessions on management skills too.
Vipan Jain, Director, AV Knit Exports, Ghaziabad Technical issues are the most important substance for us, and we need some brainstorming sessions on this issue as it can lead us towards more skilfulness to achieve our future goals. As we all know,
industry is stepping ahead with best and latest technologies. We are quite satisfied with the role of Government and industry bodies, and the bit they are doing, organizing seminars/workshops.
Harish, Partner, Lila Shyam Exports, Pushkar We need insights in the technical segment from the
professionals, or from these conferences. Secondly, merchandising is a critical topic for us, so we need support and backing from the industry bodies. Such help can make us more efficient in the competitive market. We want to urge the Government that they organize these sorts of seminars in our areas too so that we can also attend them regularly. It is not possible for us to participate in the seminars in Delhi every time.
QUESTION POST YOUR COMMENTS
GST rates for the entire textile sector have been finally announced, and will come into effect from July 1st. What is your first reaction to the same‌? Do you feel that implementation of GST is going to impact our industry in any way?
www.apparelresources.com contact@apparelresources.com
WORLD WRAP WISH TO SUBSCRIBE TO APPAREL ONLINE?
GOING TO A GOOD EVENT?
Please call Customer Service at 82-62-880-880
Send your industry gossip, photos and news to isaxena@apparelresources.com
Fashion Activism: Voice your opinion Designers jo in the p o l i t i c a l
F
ashion has continuously been a personal style statement for the wearer, voicing their opinion and the choices that they make but this year ‘fashion activism’ has taken many forms and is being carried out in the name of a number of progressive causes. Slogan-splashed T-shirts in this age of social media isresonating amongst the millennials who want to make their voice heard. The new age of political consciousness is being characterized by a combination of activist slogans and open declaration of one’s views on social media and all through this, the questions of designers engaging in this debate has time and again re-emerged. While on one hand, the brands and retailers who reach through their products have the potential of causing political debates, on the other hand, the challenge of being stuck on one side has always crept. Though earlier brands getting involved with politics was a nono, with the election of 2016 and the Brexit, things changed. Now designers and brands are no longer shying away from making a political comment, and more importantly their opinion is also being heard. By and large, these political statements by designers have been pushed through various causes:
The controversial US Presidential Election By and large Trump’s Presidency and the immigration ban have sparked many retailers, brands and designers to relay their thoughts through their fashion offering. Designers such as
debate
Jeremy Scott, Alice + Olivia, Prabal Gurung, Jenny Peckham, Joanna Coles, etc. have splashed theiropinions and political statementsthrough their collections during the New York Fashion Week 2017. One such prominent New York designer has been Prabal Gurung, who had created a T-shirts collection for Hillary Clinton’s campaign, after which he had used the aftermath of the election to inspire his current collection that was showcased during the NYFW2017.
Pro-feminism One of the foremost examples of fashion activism has been Christian Dior’s, whose first collection of T-shirts with the slogan ‘We Should
ESSENTIALS The growing number of Instagram and social media users is giving rise to a more participative audience and end-line consumers who would rather wear than write their opinions.
All Be Feminists’ became a rage in the market. Dior’s T-shirts collection has been at the forefront of pro-feminism with ‘Nasty Woman’ tees, following not far behind, which has reportedly raised more than US $ 100,000 for Planned Parenthood. The US $ 25 T-shirt produced by Nasty Woman + Co. have been inspired by Donald Trump’s description of Hillary Clinton during the third presidential debate and it has given 50 per cent of its proceeds to Planned Parenthood. Not far behind are many designers who are going all pro-feminism. One such is Jonathan Simkhai, who during the NYFW, wore a ‘Feminist AF’ T-shirt making his political statement clear and crisp to the audiences.
G-III Apparel and PVH Corp. ink deal for DKNY brand in Canada, US G-III Apparel Group Ltd., leading manufacturer and distributor of apparel and accessories, has entered into a multi-year license agreement with PVH Corp., which will design and distribute menswear for the DKNY brand in the US and Canada.
Brands that have made strong statements through fashion Name of the Designer
Designers’ Collections
Talbot Runhof
Collection includes T-shirts, emblazoned with familiar words like, ‘Persist’, ‘Lie To Me’, ‘Unprecedented’, and Donald Trump’s favourite Twitter catch phrase, ‘Sad’, written in texturized tiles.
Tommy Hilfiger, Thakoon, Prabal Gurung, Phillip Lim, Dior and DvF
Included white bandanas on the fashion show which is associated with the hashtag #TiedTogether, a symbol of inclusivity and acceptance.
Dior
T-shirts screen printed with: ‘We Should All Be Feminists’ and ‘Dio(R)evolution’ were sold and proceeds went to Rihanna’s Clara Lionel Foundation, which fights against Injustice, Inequality, and Poverty, and promotes access to education.
Ashish Gupta
T-shirts included slogans like, ‘More Glitter, LessTwitter.’
Public School
T-shirts included slogans such as ‘We Need Leaders’ and ‘Make America New York’.
Creaturesof Comfort
The collection included a graphic sweatshirt featuring a message of unity and equality that should transcend partisanship: ‘We Are All Human Beings’.
Christian Siriano
T-shirts include slogans such as ‘People Are People’.
Cushnie et Ochs
T-shirts slogans such as ‘The Future isFemale’.
Milly
Their collection is called ‘Fractured’, with slogans on T-shirts such as ‘Unbreakable’ and ‘Steinem AF’.
Cinq aSept
‘I Love Everyone’ T-shirts made it clear that inclusivity and acceptance are values close to this designer’s heart.
Prabal Gurung
T-shirts slogans, such as ‘We Will Not Be Silenced’, ‘Yes, We Should All Be Feminists’, ‘Girls Just Want To Have Fundamental Rights’, ‘The Future Is Female’ became popular.
While the above two are just a few of the causes, there are many such as refugee crisis, supporting women’s march, etc. that are igniting the runway and more importantly the streets, with not just models sashaying the collection but common people who are supporting these stanceand opinions. Dior marked the arrival in stores of Maria Grazia Chiuri’s (Creative Director, Womenswear) first ready-to-wear collection with a global retail push up combiningpopups, partnerships with key retailers and special in-store merchandising. The luxury brand has also given proceeds of the sales ‘We Should All Be Feminists’ T-shirts sold in Dior boutiques and dior.com to Rihanna’s non-profit called Clara Lionel Foundation. Though 2017 is seeing the rise in fashion activism, long back in 2009, Alexander McQueen made his voice heard by commissioning a gigantic scrapheap for his ‘Horn of Plenty’ collection, as he made astatement on waste and pollution without resorting to anything as literal as aslogan T-shirt. While brands such as Gogo Graham, Eckhaus Latta, Charles Jeffrey, Simone Rocha, Grace Wales Bonner, etc. are making a conscious effort to showcase a diverse cast of models, including transgender, many others are challenging representation, which has inherently been political. Moving forward as there is a growing pressure for brands to become transparent and connect with consumers, it becomes even more clearer for designers to voice their opinions and take stance on matters which include politics or humanrights.
“DKNY is a great American brand and we are excited to have the opportunity to build out the menswear business in the US and Canada as a complement to our existing menswear businesses,” averred Ken Duane, CEO of Heritage Brands and North America Wholesale – PVH. The deal also includes DKNY Sport for men – a new category for the brand. In addition, PVH has licensed rights for men’s sportswear, dress shirts, neckwear and jeans as well. The first collection will be out in Spring 2018 and sold in department stores. This agreement is the fourth partnership between G-III and PVH. The companies have multi-year license deals for various product categories under PVH’s Calvin Klein and Tommy Hilfiger labels and for men’s sportswear under G-III’s G.H. Bass brand. Commenting on the development, Morris Goldfarb, Chairman and Chief Executive Officer of G-III said, “This collaboration is an important step in the continued growth of DKNY and a clear example of the go-forward strategy to heighten this iconic brand. PVH is a trusted and a powerful partner, and we look forward to our continued success together.”
Michael Kors announces closure of over 100 stores US-based global luxury lifestyle brand Michael Kors Holdings Limited has announced closure of more than 100 of its full-price retail stores over the next two years. As on April 1, 2017, the company operated 827 retail stores, including concessions, compared to 668 retail stores, including concessions, at the end of the same prior-year period. Including licensed locations, there were 960 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2017. Drop in revenue in the fourth quarter of the year is reportedly the reason behind the fashion brand’s latest move. Its total revenue decreased 11.2 per cent to US $ 1.06 billion from US $ 1.20 billion in the fourth quarter of fiscal2016.
RETAIL CURRENT HAVE YOUR SAY
BREAKING NEWS
Tell us your news by emailing at news@apparelresources.com
To read the latest sustainability news, go to http://news.apparelresources.com/sustainability-news/
Tilly's net sales soar in first quarter Tilly’s Inc., US-based retail clothing company that sells action sports-branded clothing, accessories, shoes and equipment, has announced financial results for the first quarter (thirteen weeks) of fiscal 2017ending April 29, 2017. During the quarter under review, total net sales increased by 0.6 per cent from US $ 120.2 million in the corresponding period of 2016 to US $ 120.9 million this year. Comparable store sales, which include e-commerce sales, increased 0.6 per cent while it decreased 4.1 per cent in the first quarter last year. The retailer’s gross margin, or gross profit as a percentage of net sales, increased by 27.2 per cent from 27.1 per cent last year.
“We believe our initiatives are gaining traction. After a tough February, our combined March/April comparable store sales were up 5.3 per cent, resulting in a positive comparable store sales resultfor
the first quarter as a whole and our fourth consecutive quarter of year-over-year operating income improvement,” commented Ed Thomas, President and Chief Executive Officer of thecompany.
Tilly’s is headquartered in Irvine, California and currently operates through 222 total stores across 31 states and its website is www.tillys.com.
Adidas' sales zoom 16% in first quarter German sports apparel manufacturer Adidas has noted a 16 per cent increase in its sales during the first quarter of 2017. During the period under
review, the retailer’s operating profit increased by 29 per cent. However, it noted 0.2 percentage points decrease in gross margin to 49.2 per cent as against 49.4
per cent for the same period in the previous year. Operating margin is forecast to improve between 0.6 and 0.8 percentage points to a levelbetween
8.3 per cent and 8.5 per cent, reflecting the projected gross margin improvement as well as an expected decline in other operating expenses as a percentage of sales. As a result, operating profit is expected to grow between 18 per cent and 20 per cent. In addition, sales in Latin America grew at a high single digit rate as the positive effect from an improved pricing and product mix as well as lower input costs was more than offset by unfavourable currency developments. Adidas has expressed hope to note an increase in sales at a rate between 11 per cent and 13 per cent driven by double-digit growth in Western Europe, North America and Greater China, Japan and MEAA where revenues increased at double-digit rates each.
Denham opens first store in Shanghai Amsterdam-based denim brand, Denham has opened its maiden store in Shanghai, China recently. Located in the city’s new HKRI Taikoo Hui Mall and stretching over 160 square metres, the new Denham store offers complete range of collections for men and women including outerwear, tops, bottoms andaccessories. The opening of the store is the first in the rollout of Denham stores across China and also reflects the brand’s greater strategic commitment to expansion in Asia. “Opening our first store in China marks an incredible milestone for our brand,” averred Jason Denham,
Chief Creative Officer and Founder, Denham the Jeanmaker. He further added that Denham is excited to enter the market and unlock its potential in the region: “As a city that embraces fashion and design, Shanghai is the perfect setting to introduce our brand in China, and we look forward to sharing our premium product with consumers throughout the market.” By establishing a joint venture with Trendy (China) Fashion, Denham plans expansion in Greater China; together they aim to open around 50 more Denham stores across the market by the year 2020.
Perry Ellis starts FY 2018 on a high! US’s leading designer, distributor and licensor of a broad line of high quality men’s and women’s apparel, and accessories, Perry Ellis International has announced results for the first quarter ending April 29,2017. During the quarter, total revenue stood at US $ 242 million, marking a 7.3 per cent decrease (6.5 per cent decrease on constant currency) compared to US $ 261 million reported in the first quarter of previous fiscal. This reflected a planned drop in shipments given a reduction of customers’ doors and inventory discipline to drive higher marginsales. The company had a solid start to the year but notes the retail environment remains tenuous as such. It is reiterating guidance for fiscal year 2018 including revenues in a range of US $ 870 million to US $ 880 million and adjusted diluted earnings per share in a range of US $ 2.07 to US $ 2.17. Selling general and administrative expenses totalled US $ 71.2 million as compared US $ 69.9 million in the comparable period of the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of fiscal 2018 totalled US $ 19.9 million as against US $ 25.2 million in the comparable period of the prior year. Adjusted EBITDA totalled US $ 19.9 million as compared to US $ 26.1 million in the comparable period of the prior year.
Original Penguin readies a new pop-up store! Known for its matchless, humorous and detail-oriented clothing, Original Penguin is launching a new pop-up store in Aspen, Colorado. The 800-square-foot pop-up shop will offer a small peek into their newly strategized store concept that is inspired from a harmonious and high spirited aesthetic, which they have decided to aptly call a ‘mid-century quirky’ style. The store design takes its cues from a post-modern theme all the while maintaining their originally iconic Penguin heritage and Aspen-inspired finishing touches – walnut wood textures in contrast to crunchy, bleached backgrounds to create a warmer attitude forms the leading ambience of the store. Oscar Feldenkreis, Chief Executive Officer and President of Perry
Ellis International that owns the Minneapolis-based Penguin brand detailed, “We are excited about the new store. Not only is it in a strategic location that appeals to our core customer but it rounds out our efforts in building our retail vision for Original Penguin.” This news comes at a time when fashion and consumer retail is struggling with dwindling footfalls in their brick and mortar stores and brands are willing to doanything to save the sinking ship. So when a brand that is quintessentiallyfamed for its classic American sportswear and contemporary fashion and sustains a sixty-year long heritage of craftsmanship on its shoulders is looking at redefining its in-store communication strategy; it is definitely seen as a welcome change.
Commenting on the results, Oscar Feldenkreis, Chief Executive Officer &President of the company said, “We are pleased to report a solid start to Fiscal 2018 with both our top and bottom line results surpassing guidance, reflecting solid growth in our core brands driven by the earlier shipment of Springmerchandise and strong gross margin expansion. Our razor sharp focus on maximizing the potential of our core global brands bydelivering a continuous flow of new innovative products while maintaining tight inventory discipline continued to serve us well in a difficult US retail environment.”
SUSTAINABILITY APPAREL RESOURCES NEWSLETTERS
FACEBOOK FRIENDS
To subscribe, send us an email at subscribe@apparelresources.com
Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resourcesat https://www.facebook.com/apparelresources/
KPR Mills Phenomenal educational initiatives make many unfulfilled dreams come true I
t has been rightly said that ‘Education is the most powerful weapon which you can use to change the world’, and so perhaps, feels the KPR Group from Coimbatore… In fact education today has become one of the primary CSR strategies of many Indian textile and apparel exporters, and KPR Group is one such organization that has attained an edge in this regard. Being one of the largest vertically integrated apparel manufacturing companies, KPR has a work force of 20,000 employees and a sales turnover of over Rs. 3,000 crore. Recently it was in news as about 189 girl employees of the company successfully passed their 12th examination this year. This is just a beginning of the several measures
Well-managed classrooms for the working girls
ESSENTIALS The list of CSR and sustainable initiatives of KPR Group is quite long, and it covers a very wide gamut, like windmill, tree plantation, re-cycling of waste water, producing bio-gas from human waste, support to Clean India Campaign, and variety of regular donations…
taken by the company to promote education among its workers/staff. Apparel Online tries to get a look at these initiatives. The Group made a humble beginning in 1971 as a powerloom fabric manufacturer and grew gradually; so far more than 20,000 employees have been benefited by availing the higher education facilities extended at KPR through tie-ups with leading universities and excellent coaching by well-trained and experienced teachers. Making best use of its educational facilities, several employees and aspirants continue to excel in the Government examinations securing higher ranks and gold medals. “To quote some, an employee secured first rank in Tamil Nadu Open University Examination
2015 and was awarded gold medal by the Governor of Tamil Nadu. Again in the academic year 2016-17 and also in the plus two examinations, an employee had secured 1123 marks out of 1200 and in all, more than 25 employees have secured over 1000 marks,” proudly shared the Founder of the Group, K. P. Ramasamy, fondly known as ‘KPR’, who recently completed 68 years of his life. KPR further added that rural women, who were earlier living unaware of the modern facilities, and were deprived of higher education in the villages due to their economic conditions, today carry a hope of the promising future. Even the girls who have completed their plus two would get the opportunity to
Apart from study, there are recreational activities also for the girls
“In the academic year 2016-17 and also in the plus two examinations, an employee had secured 1123 marks out of 1200, and in all, more than 25 employees have secured over 1000 marks, which is a matter of pride for us.” K. P. Ramasamy, Founder, KPR Group
pursue their graduation degree in Arts, Commerce and Business Administration at the units wherever they are working. The company’s tie up with Tamil Nadu Open University is a big support for them in this regard. There are already many girls at the mill who have done their graduation through this system as well and continue to work at its units but those who are willing to do full-time regular study in private colleges are also allowed to do so by the company. The Group has also taken the endeavour to employ 36 full-time teachers to help the students in its four textile mills and three garment units and it also bears 90 per cent cost of their studies. But is it easy for the girls to dedicate time to their
ESSENTIALS The next generation of the Group and K.P. Ramasamy’s son C. R. Anandakrishnan, and son-in-law E. K. Sakthivel, both EDs of the Group, are on the same path and are embarking to carry forward this legacy further under their leadership.
Thumbs up! Girls in full cheers, along with work, making their dreams come true
studies along with the regular work hours? KPR Group ensures that its employees work for eight hours a day and study for around three hours daily to prepare for their exams. R. Ramya, who scored 1123 marks (in Commerce stream) in her plus two examination, dreams to become an IAS officer and she is very rightfully dreaming as her company has become a master piece in its commitment towards education, by establishing ‘KPR IAS Academy’ that offers ‘free’ coaching for UPSC and TNPSC exams. Many of its aspirants have even proved their mettle and cleared the exam under various categories, which was once considered as an inaccessible career for them. Apart from all the above mentioned developments, KPR Charities, a public trust, imparts quality education through its educational institution KPR Institute of Engineering &Technology. It has received the 5th rank among the 67 private engineering colleges at Coimbatore and is also on the verge of being ranked as one of the top 20 institutions in Tamil Nadu by AICTE. These employees-cum-students accept that facilities like safe shelter, nutritious food, hygienic and comfortable living conditions, recreation, yoga, sports, library, swimming pool and more than all ‘a feel at home atmosphere’ is something that motivates them to study and they easily score good marks despite their working schedule.
NITRA LAUNCHES BOOK ON SOLAR ENERGY TO HELP APPARELEXPORTERS Use of solar energy is increasing day by day in the Indian textile and garment industry. Not only in the southern parts of the country, which always stays ahead in taking such initiatives, but apparel factories in northern India are also installing solar plants now in large scale. To spread more awareness about the solar energy and its advantages, NITRA (Northern India Textile Research Association), Ghaziabad, has recently launched a book – “Solar Energy –Fundamentals, Economic and Energy Analysis”. Written by Saurabh Kumar Rajput, an M. Tech in Energy Studies from IIT, New Delhi and Assistant Professor in NITRA, the 84-pages book describes various facts about solar energy, from the very basic concept to its application, to economics and minute detailing about technicalnitty-gritties. Detailed economic analysis of the solar system (cash flow analysis/ profit cost analysis/payback period/ IRR, etc.) will help the apparel factory owners to understand solar systems and motivate them for increased use of solar energy. To make issues clearer and understandable, interesting case studies have also been provided in the book. Dr. Arindam Basu, DG, NITRA shared, “We are really concerned about creating awareness on solarenergy. Recently we decided to install grid connected roof-top solar power plant in its building. The plant is estimated to be fulfilling about 60to 70 per cent of NITRA’s total power consumption in first phase. Our efforts will encourage the textile and garment units to install solar power plant. We are happy to guide anyone in this regard.” ISO 9001 certified NITRA is linked to the Ministry of Textiles, Government of India.
Bangalore hosts series of events focusing on sustainability Bangalore, one of the biggest apparel manufacturing hubs in India, witnessed a series of events last week with a focus on sustainability and allied issues. Top-notch professionals from various brands and organizations, along with Indian apparel export houses, participated in these events, shared their ideas and discussed various issues related to the sustainable apparel industry. A collective approach to increase transparency and a fresh look at the existing sustainability practices were the key highlighted points at these events. Sustainable Apparel Coalition (SAC), US, also held its annual meeting in the city in which its members (brands as well as leading Indian exporters) took part. Punit Lalbhai, ED, Arvind Limited, was also present in the meeting. Additionally, SAC and MCL News &Media, UK, co-hosted a day-long conference ‘Planet Textiles 2017’
really impressed by the vision as well as the processes adopted and initiatives taken by Madura’s team. The visit highlighted how Madura Clothing is moving ahead on sustainability as well as technical fronts.
A delegation of Sustainable Apparel Coalition and Team Aditya Birla Group during their visit to Madura Clothing
in which sustainability heads of brands like Puma, Adidas, Nike as well as Indian apparel exporters like Pratibha Syntex, Orient Craft, Eastman Exporters, Sharadha Terry Products Ltd., among others participated. More than 300 delegates from over 20 countries participated in the event, which tapped on numerous sustainability issues like chemical management, wastewater, ZDHC, circular economy, etc. GR Das, Regional
Head (South India), Polyester Sector, Reliance Industries Limited made an interesting presentation and participants asked various questions on recycling of polyester and allied issues. This SAC-member delegation also made a tour of Madura Clothing (Aditya Birla Group) and Arvind denim factory in Bangalore. Apparel Online was also a part of this visit. Each member of the delegation was
Another event, Fabric of Change Globalizer Summit also concluded in Bangalore recently. An announcement was made at this event that Fabric of Change, a global initiative to support innovators for fairs andsustainable apparel industry initiative by Ashoka and C&A Foundation, will launch a new ¤ 250,000 Scaling Impact Fund as part of their joint venture to support social innovation in the apparel industry. Jason Kibbey, CEO, SAC and John Mowbray, Publishing Director, MCL News &Media, played crucial role in these events. For detailed coverage of all these events, read the upcoming issues of Apparel Online India.
Dhawal Mane of C&A among the ‘Top 30' young global professionals in sustainability The second annual list of promising young professionals in the field of sustainable business “30 Under 30” cohort was recently announced by GreenBiz editors in collaboration with the World Business Council for Sustainable Development, based on a global search for emerging leaders who are shaping the next generation of sustainable business. India is proud that Dhawal Mane, Senior Specialist – Sustainable Chemical Management, C&A is among these young achievers. Dhawal dreamed of a fashion career, but while studying at the National Institute of Fashion Technology in New Delhi, he was
shocked by its side effects. “A city like Delhi has so much waste and pollution,” he observed. “I saw that these problems are interrelated and thought that I can contribute towards a better environment through the textile sector.”
in his role at C&A, the international Dutch chain of fashion retail clothing stores, he implements sustainable chemicals management across India, including auditing, wastewater testing, performance tracking and corrective action.
Because many traditional roads to jobs in fashion were well-trodden, Mane blazed a unique path and earned a master’s degree in sustainable apparel production. “When I started in this space, especially in India, there wasn’t a defined role in sustainability in the textile sector.”
Dhawal also works with a local fashion institute to stitch sustainability into the curriculum and organizes a bimonthly networking event that connects more than 200 environmental professionals. His most rewarding moments come from visiting suppliers that have transitioned to sustainable practices. “Converting them to real action gives you a lot of satisfaction,” he concludes.
First, as a sustainability manager at Pratibha Syntex, a knitted
Dhawal Mane, Senior Specialist –Sustainable Chemical Management, C&A
textiles manufacturer, he kept the company compliant with sustainability regulations, market research and best practices, implementing tools such as the Higg Index to move towards using 100 per cent sustainable materials. Now
Levi's to fund water saving solutions Levi Strauss &Co. has gone a step further in terms of sustainability and will fund more than US $ 350,000 for solutions that have come out of Levi Strauss &Co.’s Collaboratory fellowship on water challenges in the apparel industry. The fellowship has brought together entrepreneurs and social entrepreneurs committed to the issue and this grant will enable Collaboratory fellows to implement water-saving projects. This project ranges from making wastewater treatment solutions more affordable for small artisan workshops to expanding an indigo dyeing facility that uses less water. “To have the support of the entire team at an iconic brand like LS&Co. – an industry stalwart – makes me believe that we can truly make a
difference in the apparel industry. Water is the biggest challenge we face globally in the coming decades and our industry is one of the biggest users. To work together and take a shot at changing the course of our future is exciting and fills me with optimism,” reveals
Collaboratory fellow Kavita Parmar, Founder and Creative Director at the IOU project. The Collaboratory is a fellowship programme for entrepreneurs and social entrepreneurs who are working to createa more sustainable apparel industry,
giving them a chance to pursue big and bold ideas with the support of mentors, sustainabilityexperts and their peers. Each year the programme will take on a differentsocial or environmental sustainability challenge facing the industry. The focus for this year’s inaugural class of fellows is water, an issue LS&Co. has been tackling for some time.“We were honoured to bring together the next generation of global leaders to share ideas, aspirations and innovations for achieving a common goal. We look forward to seeing the Collaboratory fellows’ water impact solutions come to life andinspire a future of empowered sustainable apparel makers,” informs Paul Dillinger, Vice President and Headof Global Product Innovation, LS&Co.
H&M focuses on improving working conditions The Swedish multi-retailer has taken several steps to improve working conditions of workers making H&M products for its suppliers. Specifically the retailer is emphasizing on factory employees being represented by trade unions to negotiate collectively, for which it is training factories on workplace cooperation, negotiation skills, collective bargaining and labour law. “The work is at the top of
our agenda and we stay true to our collaborative approach and methodical way of working, making it possible to take important steps forward,” revealed the retailer. The group facilitates dialogue between the employers and the employees at the factories and in the labour market in the countries where its products are made. According to the retailer, this is fundamental to be able to improve working conditions, including wages; and
till date 290 factories are enrolled in the workplace dialogue and industrial relations programmes while more than 370,000 factory workers are directly covered by democratically elected worker representation through its programmes run in Bangladesh, Cambodia, China, Ethiopia and India. “In 2018, the goal is to have democratically elected worker
representatives in place of supplier representing 50 per cent of our product volume. Our collaboration within the Global Framework Agreement – pushing the development forward – was converted to a permanent agreement. H&Mbecame an official supporter of the Global Deal partnership,” informs the company’s statement. The group is also trying to make sure that wage issues are negotiated and that workers have knowledge about their wages, benefits and rights. The retailer supplier factories in Bangladesh, Cambodia, Indonesia, India, China, Turkey and Myanmar are participating in this programme. In a bid to herald change in the entire fashion industry, the group is focusing on close collaborations. “We have collaboration projects together with partners such as Sida, the ILO and IF Metall to train management and workers on for example workplace cooperation and dispute resolution,” itsaid.
MARKET UPDATE TO ADVERTISE
GOING TO A GOOD EVENT?
Contact Rani Mahendru +91-11-47390000 (512) rani@apparelresources.com
Send your industry gossip, photos and news to isaxena@apparelresources.com
Challenges apart, Japan has huge scope for Indian exporters GOVERNMENT NOW JOINS
Japan – the world’s second-largest developed economy, the third-biggest economy by nominal GDP, and the fourth-largest by purchasing power parity – has once again shown its economic growth as positive – to just over 0.5% in 2016, though it has been forecast to stay well below 1% for the next six years. However, the majority of Indian exporters are not working with some of the markets like Japan which still have enough scope for Indian made apparels. Some of the exporters have individual reasons while most others have common reasons. But one can’t ignore that Japan imports apparel products worth almost US $ 40 billion a year while its overall market is about US $ 110 billion and it is supposed to expand to US $ 150 billion in the next 8 years. Bangladesh’s apparel shipment to Japan might cross US $ 1 billion mark soon after the relaxation of the Rules of Origin (RoO). Hence, from all these facts/figures, it is evident that Japan’s name undoubtedly comes on priority whenever someone talks about emerging/non-traditional markets. Apparel Online discussed with the Indian exporters about the changing paradigms of both the markets.
THE THRUST
J
apan is a mid-size high unit value market with focus on quality, consistency and repeatability. As price is now the biggest challenge irrespective of buyer/country, thesame is applicable for Japan as a majority of exporters feel that Japanese prices are very sharp now. Still some players believe that there is some relief from Japan on the price front. “Unit value attractiveness is to be viewed in line with volumes, quality demands, product standardization, consistency and achievable efficiencies. From this perspective, Japan unit values are average than good,” says Jay, CEO, Fedmac India, Tirupur, who earlier worked with Japanese retail on menswear and kidswear. As Japan is also sourcing value-added garments from India, reasonable margins are kept in such orders and repeat orders from Japan are motivating enough for the exporters to work on lesser margins. As far as products are concerned, both value-added garments and basic garments are working well in Japan. But exporters feel that after Comprehensive Economic Partnership Agreement (CEPA), demand of basic garments has increased compared to value-added garments. The same has been observed by Pradeep Nahata, MD, Karni Exports, Jaipur having 10% of its business in Japan (mostly boutique buyers for small quantity). Almost similar experience is that
of Pawan Arya, VP, Orient Craft, Noida who informed that out of the entire quantity that Orient Craft is exporting to Japan, 95% consists of basic garments. The company is not working with Japanese customers and is shipping to Japan franchise stores through US customers. Jay says, “Japan looks at India for cotton apparel – both basic and fashion. India loses out big time on MMF due to its weak supply chain and this restricts India’s ability for Japan as a major user of MMFapparel.” It takes two days for goods to reach Japan from China while it takes 18 days from India. What could be a plausible solution or how can India improve on this point? Jay believes that direct sailing of master vessels from Tuticorin and Chennai is possibly one of the options to cut sailing timeline. Pradeep is of the opinion that Japan is not very far from India, but internal services take a lot of time to move the cargo to the Indian port or to move it to any airport. Also, the custom department takes a longer time to give clearance and the rush on ports further delay the stuffing of goods on ship. “We need direct cargo flights for Japan at a very economical fair which can give a boost to Indian exporters, so that the buyer can find it very fast like China and can work easily without tension of delivering on time,” he added. Some other exporters also expressed their concern that
EXPERIENCE OF WORKING EXCLUSIVELY FOR JAPAN
Experts feel that India has a fair amount of success in textiles working with Japan, but the same is not applicable in case of apparel. Vardhman Nisshinbo Garments Company Limited is a perfect example in this regard. Some of the Jaipur-based exporters are also working aggressively but at a small level. Indian giants can explore more opportunities together.
only better design inputs, quality and advanced planning can tackle this issue. “Not 18, but it can actually take 40 days to reach a Japanese store from our factory here; but for us it is not a big issue as buyers who want to get their deliveries done soon, pay air charges themselves, shared Satish Chand, President, Spring Overseas, Delhi. The company is known for working mainly with Japan. Is 100% inspection or strict quality parameters one of the reasons that Indian exporters are not able to book big Japanese orders? “Yes, it could be one of the reasons,” says Pawan but some exporters don’t see this as a problem as they know very well that in small order, it is a good way to work with 100% quality parameters. Jay adds that Japan quality demands with 100% audit are for the most part tangent with the established quality systems (4 points system, AQL) of mainstream factories with major exposure to EU and US making it difficult to sync Japanese production with mainstream. Exporters feel that even China’s exit from apparel manufacturing has not pushed Japanese orders to India in a significant way as only some orders are coming to India. They stress that those importers who really need Indian taste and quality workmanship will buy from India. The rest will go to Bangladesh, Indonesia, Thailand and other Asian countries. “It is
likely to have less impact given the fact that China has nurtured a good set of satellite nations around the region (Vietnam, Cambodia, Mongolia, Indonesia, etc.) to convert its textiles at a lower cost and stay miles ahead of India,” shares Jay. More than 5 years have passed since the CEPA between Japan and India went into effect. Even this has not proved much fruitful as sharp prices, shorter lead times and strict quality parameters are the major factors slowing the growth of business with Japan and most of the Indian exporters are lacking at least on one of the above mentioned three points. Exporters are aware that supply exceeds demand and with China and its satellites next door, the need for Japan to outreach beyond them is not necessary. So, for India to increase its apparel export to Japan, the significant point that would help is of course the improvement of Japanese economy but at the level of Indian exporters and the Indian Government, more support to the exporters for participation in Japan-based sourcing fair and other such fairs in Japan to sell the Indian products can be an immediate step. “Yes, many exporters are participating in such fairs but it costs a lot; so those exporters who are willing to expand in this market or are just entering, should be given some extra benefits to attend such fairs,” Pradeep suggests.
Spring Overseas, Delhi, with a factory in Manesar, is a company doing 100% production for Japanese buyers. Though the company tried to work with US and EU, it could not grow much as its system and working culture were fit for Japan. “We could not mix the things as we are used to work in the Japanese style, for example we work on centimetres while in US or EU, one has to work on inches. Difference of a single inch into measurement creates a difference of 2.54 centimetres which is huge and no Japanese buyer will tolerate it. The working culture of a factory which is totally dedicated to Japanese buyers is such that whenever any of our worker tried to get a job somewhere else, he/she got the top priority compared to other experienced workers,” states Satish Chand proudly. He further added that if someone is willing to work with Japanese brand or buyer, he has to think completely like Japanese and should not expect much of orders in the first year. “Despite having good reputation with many Japanese buyers, whenever we start working with a new buyer of Japan, in the first year, we get few orders only,” informed Satish. Doing women and kidswear, Satish observed that last year, the season went majorly with value-added garments and the coming season will focus more on embroidery and prints. “Earlier price was not a big concern if someone was working with Japan but with the recent fluctuation of Japanese yen, buyers are forced to be very particular on price. Foreign media also reported in mid of May 2017 that “Yen is the weakest currency in the world over the past month.”
QTEC perspective on difference of requirement between Japanese and Western buyers The unique requirements in the Japanese market, other than quality requirements, are like – very small lot, orders, numerous assortments, very short lead time for production and demand for quick response in any operation etc. (Toyota’s Kanban system). Besides, the Japanese buyers also maintain high loyalty to the factories which provide well-made products and wish to establish long lasting relationships with those factories. In addition, they rarely cause trouble in payments. It may not be easy to understand Japanese buyers in the beginning, but it will be proven that they are good partners to work with you, once you satisfy them. Japanese buyers (Japanese apparel brand)
Western buyers (EU & US, especially global apparelbrand)
Authority of abuyer
Before deciding on a contract, they need to obtain the consent of stakeholders in most cases. Although often seen as a slow decision and action, you need to understand that it is necessary among Japanese companies.
They are usually authorized to make their own decisions.
Contract attitude
1.
Contract documents are not extensive and they coveroutlines.
1.
2.
They consider it is not documents only that develop mutual understanding. They are willing to expend some time for cross confirmation to build lasting relationships.
They prepare extensive contract documents to cover details such as specs.
2.
Contract documents include everything to be conveyed.
Quality awareness
3.
They sometimes go with silent acknowledgment, which is possible among Japanese. It is advisable to confirm about anything uncertain to you. If you stay silent, they will consider that you understand everything, as for quality requirements. It is advised to have your buyer designate the limit samples to clarify the range of tolerance.
3.
They terminate the contract without hesitation when the outcome of the deal does not appear right.
1.
They require the same quality level, regardless ofthe price range.
1.
2.
They do not hesitate to make necessary modification in production specs if they find it advantageous to improve thequality.
It is sufficient that you achieve the quality that complies with stipulation in contract.
2.
They are very conscious about the safetycontrol of hazardous chemical substances.
3.
They are very conscious on compliance to labour situation such as child labour.
3.
Their primary concern is visible quality such as colour fastnessand appearance retention.
4.
They request many things in detail, such as method of folding, attaching hang-tag, final packaging for each product. These minor operations must be precisely conductedaccordingly to the request.
Designation of a third partytesting laboratory
Often, the buyers require a test report which is issued by a Japanese testing laboratory, such asQTEC.
The buyers nominate testing laboratory, and factories have no choice.
Testsand criteria
Testing procedures are not documented, but are supposed to follow JIS test methods defined with JIS number.Criteria may vary from customer to customer because each customer maintains their own criteria, very unique point of Japanese buyers.
Based on the published test methods such as AATCC, ISO, and EN, they have their own test procedures documented. Criteria areset up in accordance with their test procedures.
Restrictions of hazardous substances
Practically, only the free formaldehyde must be tested in certain items. Regulation of certain aromatic amines (Azo dye) has been enforced by law w.e.f. 1st April 2016.
Hazardous substances such as certain aromatic amines (Azo dye) and heavy metals are regulated by law in many countries
Preshipment product inspection (third-party inspection)
100% inspection by a third-party inspection company is required by many buyers. Japanese buyers request that all products are grade ‘A’. It is not likelythey accept non-qualified products mixed in the shipment.
In most cases, sampling inspection is required in accordance with AQL. Western buyers anticipate the rate of productloss.
Needle detection
Needle detection is required for all products. It is often required to detect twice in different directions to make detection complete, because the direction of the object affects the sensitivity of the detector.
Needle detection is not always mandatory. Broken needles are not generally recognized as very dangerous objects as they are recognized in Japan.
MoT expects robust growth in textile and apparel exports to Japan
Ministry of Textiles (MoT) is expecting a strong and healthy growth in textile and apparel exports to Japan in the next few years and efforts for the same are also being made with the help of Japanese experts. A senior minister of the Textile Ministry said the efforts that both the countries are making shall reap positive results for Indian exporters doing business with Japan. Out of India’s total textile and apparel exports of nearly US $ 40 billion, only US $ 0.5 billion (or less) goes to Japan, which imports nearly US $ 35 billion worth textile apparel annually.
T
extiles Committee under MoT is geared up to enhance exports to Japan and is working for the same with the help of experts from Japan Textile Products Quality and Technology Centre (QTEC). The Government of India last year signed a MoU with QTEC through the Textiles Committee with a view to jointly establish and encourage quality compliance activities in the industry. The MoU is expected to usher in a new beginning in the International Trade of Textile and Clothing from India to Japan as Indian industry is
marching ahead. Under this MoU, Textiles Committee recently organized an Industry Capacity Building Programme on Quality Compliance of Indian Textiles &Clothing for Japanese Market in 9 cities across the country. The programme was well-attended by the leading textile industry and trade personnel. Addressing the event in Delhi, Subrata Gupta, Joint Secretary, Ministry of Textiles said, “Japan is one of our closest strategic and business partner, so we required immediate corrective action to increase our textile and
(L-R) RCKesar, DG, OGTC; Ajit B Chavan, Secretary, Textiles Committee; Subrata Gupta, Joint Secretary, MoT; Kei Funaki, ASEANand South Asia Regional Manager, Overseas Coordination Department, QTEC; Toshiki Tasaka, Director, Overseas Coordination Department, QTEC; and Vijay Mathur, Additional Secretary General, AEPC at the event held in Delhi.
apparel exports to the country. Of the total apparel imports by Japan, only 1.2% is from India. We should increase it to at least 5% in the next three years. Our quality is not that poor, and even technically, we are superior to countries like Bangladesh and Vietnam, yet our export is less.Issues lie elsewhere; we need to go deeperfor theirsolutions.”
JAPAN REVISES LABELLING NORMS Consumer Affairs Agency of the Government of Japan has reportedly announced the partial revision of the quality labelling system for textile and apparel products, with effect from 1st April 2017. In the new enforcement regulation provision, the garment care symbols have been increased by 22 to 41 in terms of numerical digits, and some new care tags such as washing care labelling for mufflers, scarves and shawls have been added, while fibre composition of interlining for trousers has been made mandatory. Apart from this, care symbols will be attached according to JIS L0001-2014 (care labelling code using symbols), and fibre name and percentage will be required to be mentioned as per the “Textile Goods Quality Labelling Regulation”. Additionally, the manufacturers have to provide the expanded information to the consumers on awareness of the method of cost of caring of the textile product. Also, this has strictly been included in the recently introduced laws that all the new labels should be permanently attached to the textile products, either printed directly on the product or sewn. The label must be visible, indelible and easily accessible to the consumer.
Ajit B Chavan, Secretary, Textiles Committee, is also positive about this target as he said, “Though our efforts have just begun, we are quite optimistic about this target. We are creating awareness and disseminating all specification, quality requirements, among the Indian apparel exporters.” Apparel Export Promotion Council (AEPC) is also enthusiastic as far as apparel export to Japan is concerned. Vijay Mathur, Additional General Secretary, AEPC added, “Neetee Clothing, a Gurgaon-based apparel exporter, has done few required improvements in its working, like creating worker manual, visual display of machine working etc., and now the company is also doing good business with a Japanese brand Muji. Other Indian apparel exporters too should come forward.” He further added that the apparel exporters willing to work with good Japanese buyers, should have their own environment policies and also should ask their workers about their future aspirations from their job. Toshiki Tasaka, Director, Overseas Coordination Department ofQTEC; and Kei Funaki, ASEAN and South Asia Regional Manager, Overseas Coordination Department, QTEC deliberated in depth on the subjects: ‘Difference of quality requirements between Western buyers; ‘Quality and Compliance in Japan and JIS Overview’; and ‘The Banned Substance in Japanese Market’ at the event. The Japanese delegates also discussed their country’s market requirements in terms of quality, make-up, benchmarking tools, Japanese industrial standards and various other compliances. In discussion with Apparel Online, Japanese experts shared that some of the Indian factories are working quite good as per the requirement of Japanese retailers/buyers, and that Japan needs to explore these units. However, more and more information sharing is required at both the ends.
“In majority of the cases, buyers are testing at their end because the JIS standard being followed here by various labs have differences. The same fabric which is passed here by these labs does not pass in Japan. The best way to safeguard for a manufacturer is that whenever he develops a fabric which then gets selected, he should send it to the buyers so that they (the buyers) can test at their own end and meet their requirements. Only then an exporter should go ahead, because most of the times when buyers test the fabric in their Japan-based labs, certain tests fail, but buyers give you some exemptions… Buyers also see from the user/customer point of view whether this ‘failing standard’ is affecting the consumers or not… For example, if tear strength in sheer fabric is not affecting as in a loose garment like in a ladiestop, then the buyer will accept this fabric. So in such cases, one (supplier/exporter) can get exemption.” – Animesh Saxena, MD, Neetee Clothing, Gurgaon “For JIS rules regarding physical property of textiles, the material should be tested under atmospheric conditions of 20°C. For a tropical country like India, bringing down lab’s temperature is not cost-effective, that is why we test at 27°C. As per my experience of NTC, when I deal with Japanese market, my discussion with worldwide experts, textile scientists made me find out that they accepted the 7°C variation as it doesn’t make any significant difference in the characteristics of the fibres and in case of dispute, Japan should not take advantage of this. Though it may be well established there, till date there is no formal agreement on this point, the sooner it gets resolved, it isbetter.” – RL Kapoor, Ex. CGM (Tech.), NTC Ltd., New Delhi “There are few successful Japanese trading companies in Japan and they are working effectively among machine manufacturers. I suggest that being a Government and an independent organization, the Textiles Committee should take similar responsibility and work as an Indian trading company with focus on Japan. It will help the industry right from testing to overall sourcing as every exporter does not have capabilities, resources etc. to further explore Japan. Through this, Japanese companies will have confidence to work with new companies in India.” – KK Agarwal, Textile Sourcing System/Relio Marketing Company, Delhi
TEX-FILE APPAREL RESOURCES NEWSLETTERS
FACEBOOK FRIENDS
To subscribe, send us an email at subscribe@apparelresources.com
Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resourcesat https://www.facebook.com/apparelresources/
INDIAN TEXTILE INDUSTRY HAPPY WITH GST RATES ON
COTTON VALUE CHAIN, BUT DISAPPOINTED AT HIGH RATES ON MAN-MADE FIBRES AND YARNS
GST OF 5% FOR COTTON VALUE CHAIN… GST of 5% for cotton, against the current prevailing rate of “nil” is being taken as a very progressive and growth-oriented step for Indian textile industry. The move has been taken under consideration to ensure compliance and continued encouragement for the farmers to grow more cotton. Attracting the lowest rate, GST will not cast any additional burden on the sector and will ensure that India regains its competitiveness in the cotton textiles sector in the global market. Experts feel that the new GST rate for cotton textiles will eliminate the cascading effect of duty/taxes which will reduce the costs and improve the competitiveness of the textiles exports. According to the newly released GST rates for the sector, besides all natural fibres including cotton, cotton yarn and fabric, readymade garments valued below Rs.1,000 have also been classified under 5% GST rate while garments valued above Rs.1,000 have been classified under 12% GST rate, against the current levy of 6-7% for all readymade garments. Industry watchers feel that 5% GST rate on readymade garments below Rs.1,000 would greatly benefit the common man across the country, being a mass consumption item. M. Senthil Kumar, Chairman, The Southern India Mills’ Association (SIMA) has highly appreciated
the decision and stated that as the textile industry has been under the optional route since 2004 and the fabrics have been under zero VAT rate, the 5% GST rate would bring substantial revenue apart from widely broad basing the tax net across the textile value chain and ensuring compliance. “The rate of 5% for cotton textiles is very progressive and will lead to the growth and development of the entire value chain,” averred Ujwal Lahoti, Chairman ofThe Cotton Textiles Export Promotion Council (Texprocil). Meanwhile, Prabhu Damodaran, Secretary, Indian Texpreneurs Federation (ITF) believed, “Uniform and lowest slab GST in cotton segment up to fabric stage will make the textile manufacturing sector efficient and trigger growth across the country.” He is also extremely happy that the entire cotton textile sector has been brought under the tax net without zero exemption for any segment in the value chain.
18% GST ON MAN-MADE FIBRES/YARNS… Despite the positive decision in favour of ‘cotton value chain’, the industry is disappointed at the 18% GST rate levied on man-made fibres and synthetic yarns. CITI Chairman J. Thulasidharan observed that this GST rate levied on man-made fibres and synthetic yarns would have inverted duty structure problem as the fabric would attract only 5% GST rate. He also urged the Government
Raja M Shanmugham, President, TEA
GST LEVY ON TEXTILES Silk and jute
0%
Cotton and natural fibre
5%
Man-made fibre All categories of yarn Man-made yarn Fabric
18% 5% 18% 5%
Apparels priced above Rs.1,000
12%
Apparels priced below Rs.1,000
5%
M. Senthil Kumar, Chairman, SIMA
to reconsider the rates of MMF products and bring it down to 12%. He stated that India is already suffering a huge competitive disadvantage in the global textile market as the MMF based textile products are attracting higher rates of import duty. Therefore, the CITI Chairman reasoned, “Keeping the GST rates at this level will undoubtedly cripple hundreds of small- and medium-level synthetic textile manufacturers.” While announcing these rates, Finance Minister Arun Jaitley had clarified that textile manufacturers would not be given credit outflow, which implies that an input credit above the prescribed limit would not be granted to textile manufacturers. He had shared that in the context of 18% GST for man-made yarns, fabric made from this yarn will attract 5% and hence full input credit will not be utilized. Reacting to the minister’s clarification, S C Kapur, Chairman of Association of Synthetic Fibre Industry said,
The Indian textile industry, though happy with the announcement of 5% (lowest) Goods and Service Tax (GST) rates for the cotton value chain, including cotton, cotton yarn and fabric, is disappointed with the fixed 18% rate for synthetic or man-made fibres and yarns. Service tax is also fixed for job working units at 18%. Silk and jute have been kept under “nil” category under the GSTprovisions.
“The Government should have applied a uniform rate to the textile industry which has been the global practice. Man-made fibre tax at cotton yarn level would have helped higher investment in the sector. Additional demand for fabric can be fulfilled by synthetic makers as there will always be an upper limit to produce more cotton.” It is being pointed out that synthetic yarn and cotton yarn blended fabric constitutes 70-80% of total fabric and hence mis-declaring synthetic fibre as cotton in blended fabric is not ruled out. Also, with this, readymade garments would become costlier proportionately. Had input credit been granted, garment manufacturers would have got a breather in terms of taxes on raw materials.
OTHER CONCERNS… CITI Chairman further points out that the high rates announced for dyeing and printing units and embroidery items at 18% can lead to an increase in input costs and can adversely affect the entire textile value chain. “Keeping the tax rates high will not only escalate textile inflation but will lead to cheap imports from other countries like Bangladesh, Vietnam and China. This will render Indian manufacturing sector unviable to operate. The textile sector is already suffering from various disadvantages like highenergy costs and infrastructure bottlenecks. Keeping the rates of key inputs at a higher level will further affect the competitiveness of the sector,” argued Thulasidharan.
Ujwal Lahoti, Chairman,Texprocil
The industry further requested the Government to announce drawback rates to take into account the unrebated duties under GST and continue the ROSL scheme for made-ups and also extend it to fabrics and yarn. Experts feel that the Government should ensure speedy refund of input tax credits on exports so that exporters funds do not get blocked. While Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA) admitted that the GST structure would help the predominately cotton based textile industry to grow and also increase exports, he shared concerns about the service tax being fixed for job working units at 18% where more than 80% of garment exporting units in Tirupur cluster are carrying out the job working activities. He appealed to the GST council to exempt the job working units from payment of service tax. Senthil Kumar has expressed hope that the textile job work would be exempted from service tax which is essential to benefit
Prabhu Damodaran, Secretary, ITF
ESSENTIALS Experts feel that the twin factors of higher tax on synthetic yarn and lower tax on fabric, could double imports from China as prices of domestic fabric would rise. At present, India's fabric import from China is estimated to be around Rs. 4,000 crore due to cheaper rates. Fabric from China is largely synthetic and cheaper by around 10 per cent.
J. Thulasidharan, Chairman,CITI
the predominantly decentralized and MSME nature of the industry especially the powerloom sector, knitting, processing and garmenting sectors.
WHAT IS GST... Goods and Service Tax (GST) rate tariff in India is designed for 6 categories of goods and services. Four main GST rate slabs are framed with Essential goods and services; Standard goods and services (divided under 2 slabs); and Luxury goods and services with 5%, 12%, 18% and 28%, respectively. Commonly used goods and services fall under 5%; Standard goods and services coming under the first slab at 12%; Standard goods and services falling under the second slab at 18%; and with Special category of goods and services, including luxury, at 28%. The Most Essential goods and services attract Nil rate of GST under the Exempted Categories. Luxury goods and services and certain specific goods and services attract additional cess at 28% GST.
HAVE YOUR SAY
BREAKING NEWS
Tell us your news by emailing at news@apparelresources.com
To read the latest sustainability news, go to http://news.apparelresources.com/sustainability-news/
NGT allows reopening of textile units in Rajasthan At least 578 textile units in Rajasthan’s Pali District that remained closed for flouting pollution norms will be reopened soon. India’s National Green Tribunal (NGT) has given permission for conditional reopening of these textile units. The decision was taken by the Jodhpur bench of the Tribunal. The bench allowed conditional reopening of these units after the owners gave an assurance that they would follow all the directions passed by the Tribunal. Surreptitious and illegal dyeing and bleaching activities, impact on the employment and livelihood of workers directly or indirectly
of the industries and Common Effluent Treatment Plants (CETP) in the region. Apart from this, the Tribunal has also directed theconstitution of a district-level taskforce to ensure that no industry functions illegally or in violation of the pollution rules and norms. The taskforce will also chart out a surveillance mechanism and take punitive measures against defaulting units. dependent on the industries were taken into consideration while pronouncing the decision. As per Tribunal’s direction, a monitoring committee comprising
representatives of IIT Jodhpur, Central Pollution Control Board and Rajasthan State Pollution Control Board will also be formed to carry out inspections and surprise checks
The polluting textile units were directed to closetheir operations on October 3 last year, while hearing a petition moved by an environmental organization, the Kisan Paryavaran SangharshSamiti.
Turkey to invest in Pakistan's textile industry Surge in Pakistan’s Gross Domestic Product (GDP) is rapidly attracting several Turkish companies which are looking for more business avenues. It is pertinent to note that many companies from Turkey have already established themselves in Pakistan. “Currently negotiations are underway for Foreign Direct Investments (FDI) in Pakistan’s textile industry particularly infabrics and yarn; however, some technical issues remain unresolved,” said Mustafa Mente, General Secretary, Foreign Economic Relations Board of Turkey. He further added that both Turkey and Pakistan are keen to invest in the textile industry but they need to find commonground. Mente is optimistic that the volume of Turkish investments in Pakistan as well as Pakistani investments in Turkey will increase across all sectors. “The entire region of South Asia that includes India, Pakistan
and Bangladesh is distinctive mainly because of its vast population and therefore attracts Turkish companies to invest,” further averred Mente. However, the distance and cost of travelling continue to remain issues. Turkey faces the same concern with the American markets as well, though there are a lot of opportunities for SMEs and other such businesses.
Negotiations are also underway between Turkey and Pakistan to finalize a Free Trade Agreement (FTA) so as to enhance trade between both nations. According to the Pakistan Business Council, the level of bilateral trade between the two countries, at present, is US $ 584 million, which has the potential to go up to US
$ 5 billion. Of late, few Turkish companies have invested directly in Pakistan, especially in Punjab, but that is more due to the Government’s urge to recreate some Turkish models in the provincial capital. At present, Pakistan’s exports to Turkey s US $ 391 million, whereas Turkey’s exports amount to US $ 193 million.
H2F WISH TO SUBSCRIBE TO APPAREL ONLINE?
GOING TO A GOOD EVENT?
Please call Customer Service at 82-62-880-880
Send your industry gossip, photos and news to isaxena@apparelresources.com
D I V E R S I F I C ATI O N The survival key for medium-level exporters in Delhi-NCR
Today, home furnishing market is one of the most competitive industries across the globe that carries a very promising future for those companies that have the wherewithal to deliver products as per various market demands. According to a market research report released by Allied Market Research, home products are a growing segment increasing rapidly at the current CAGR rate of 4.2 per cent, expected to touch US $ 664.0 billion by 2020. This significant growth is attributed to the effect of globalization on companies which is providing them multiple options to meet their consumers’ needs in the shortest possible time. Even the rise in income level which has triggered a distinct demand for lavishing home furnishing collections and changing interests of the new generation, have given a new boost to this industry.
Dynamic Market Demands Fresh Approach
U
SA and Europe constitute the largest consumer market for this
booming sector, while countries like India, China and Pakistan feature among its key manufacturers and suppliers. Yet, despite reports of a continuously growing segment, it is surprising to know that some medium-level exporters of Delhi-NCR involved in the home furnishings business are facing difficulties in matching changing market conditions and have been compelled to re-work their strategies for survival. Apparel Online discusses with few of these exporters to understand their experiences.
Niche products are the survival tools… Products play an important role in being a preferred supplier, but just having a niche product is not enough. Woodson Impex, a Delhi based manufacturing and export company, provides a niche range of home furnishing products like curtains, bedspreads, covers, cushions, quilts, floor coverings endowed with the unique crewel hand embroidery, yet the company has seen some challenging times. “The market is definitely going through uncertain times and everyone is facing loss in some way or the other, whether
in the form of losing market hold or decrease in turnover, we have also faced such situations, but we are still in the industry because of our niche products and our regular clientele base which has helped us survive this upheaval,” shares Arif Kamal, Co-founder, Woodson Impex. The company’s primary clients are boutique buyers who are in constant need of such customized products. With craftsmanship in the age-old handwork from Kashmir which is in high demand in UK and US market, the company supplies this rare art form in various types of fabrics such as silk, cotton, wool and using many different types of threads as per client’s requirements. However, this embroidery form alone was not sufficient to guarantee success to Woodson Impex which had to face depreciating annual turnover and loss as well. Subsequently, it delved into more value addition to revive from this downfall. The company has undergone further segmentation of the already classified niche products to remain at par with the unpredictable consumer expectations. The endeavour now is to make a blend of modern, contemporary, traditional and economical product range which helps them capture a larger market.
The Bedding Theme: Bedding range for domestic market
Exploring domestic market to support capacities… There are some exporters who were earlier dealing only with the international market but are now trying to make a strong presence in the domestic arena to support their capacities. ‘The Bedding Theme’, a Noida-based home furnishing company which majorly deals in bedding range and quilts, is a typical example of this category of exporters who are shifting focus to domestic market, armed with every possible tool to survive. Reduced demands in the international market for large volumes and economic sluggishness of the overseas industry have pushed the company to take this step. Harish Madan, a textile designer by profession and the President of The Bedding Theme, states that the purchasing power of the overseas buyers is shrinking and they have stopped buying bulk quantities. They are currently receiving demands for lesser quantities, and with its in-house manufacturing unit it is becoming tough to manufacture small quantities in a big unit. The company has therefore now added bedding themed garments to its kitty, apart from home furnishings, to make products which are value for money because the market is demanding lower prices.
With its footprints in EU, Middle East, US, Australia and New Zealand, the 18 years old company is now looking for growth opportunities in the domestic market, and is also trying to be a helping hand in Government’s ‘National Skill Development Initiative’. It is even going to establish a skill development centre in Noida to impart skills to the naive people in order to generate assets for the industry. “We are going to open a skill development institute at our Noida office building only to improve the skills of the youth for their own as well as our better future. We all know that our industry is going through scarcity of skilled labour. In order to fill this gap, our organization will teach people from the neighbourhood, so that they can earn their livelihood and live a dignified life in the society,” said Harish optimistically. The training school which is going to open soon will enrol students who are above the age of 18 years with little or no education. The courses offered are stitching, measurement checking, pattern making, finishing and packing.
Shifting focus to other products… While some companies have remodelled their product categories
WOODSON IMPEX: BEDDING RANGE IN CREWEL EMBROIDERY Company provides a niche range of home furnishing products like curtains, bedspreads, covers, cushions, quilts, floor coverings endowed with the unique crewel hand embroidery, yet the company has seen some challenging times.
and created manifold product options to match the industry’s competitiveness, there are others who have moved to complete closure of the home furnishing segment due to the very thin margins that do not justify the high efforts and investments being put into the sector for survival. One such company is Prabhakar Overseas Group that shut their home furnishing segment two years ago and diversified their business into the apparel unit as a survival plan, post the joining of new generation into the business. Explaining their stand, Yogeeta Prabhakar, Managing Director, Prabhakar Overseas Group said, “We had a strong home furnishing segment, especially for bedspreads and covers but we closed it due to the low profit margins. Without reasonable profit, it was not possible to keep investing and run the unit properly. So, my late father Sanjeev Prabhakar decided to discontinue it. After that our company has shifted its entire focus to the clothing section.” The company is currently catering to the US with 90 per cent of its production for the American market and is also aiming to collaborate with some Pakistani designers to enter into the ethnic wear segment to fulfil its clients’ demands.
DIRECTIONSBY
KEY SILHOUETTES AND DETAILS
FALL/WINTER 2017-18
As we conclude Fall/Winter 2017 trends, we turn our attention onto silhouettes and details that have proven to be paramount this season as per the international runways. F/W 2017-18 offered us a generous glimpse into the future of the fashion industry, at the same time drawing our consideration back over our details fromthe bygone days of bold and poised fashion theatrics. The See-Now-Buy-Now strategy sat balanced alongside wondrous adaptations of the imaginative creative. The former aims at reducing the gap in the market by launching collections up for sale as soon as they stroll off the runway whilst the latter involves artful appreciation and guided consideration for purchase – this season had it all. The shoulders get bigger and the jackets get shorter – exaggeration is the name of the game as puffed up sleeves and padded jackets make a comeback. Cropped jackets – bomber, varsity or puffer – take your pick. Accentuated midriffs that are tied, knotted, cinched or belted make a case for robe-like silhouettes through wrap jackets, blazers and dresses. Flares mellow down a bit, and menswear-inspired garments take centre stage, channelling in the bold, independent ‘boss-babe’ vibe. In a nutshell, Fall/Winter 2017-18 is entirely about expertly executed collections that emphasize skilled craftsmanship bringing about historical references as inspiration for trends to come.
PUFF-PUFF PARADE
EXAGGERATED SHOULDERS
W
ith the currentheat surrounding woman empowerment across the globe – a topic that has caused societal hearsay – it was no surprise when designers collectively decided to inject autonomous messages,into their collections minus the need to exhibit any sort of logos or slogans.
comfort and utility based clothing has ignited aresurgence of the warm and cozy puffer/ padded jackets, been labelled ‘out-of-fashion’ in the past few seasons.
A powerful theme wasbrought about by the use of structured shoulders that promoted dominance. Masculine tailored silhouettes assimilated across cross-cultural designs, flaunted bold, exaggerated and pointy shoulders that brought forth an ’80s revival of sorts.
Saint Laurent
Annakiki
Mugler
Rihann a
Salvatore Ferragamo
Fyodor Golan
Genny
Coach
While the outerwear staple might have retained its spot in the fashion industry limited to ski slopes, Fall/Winter 2017-18 has another fate destined for it. The new and revised puffer jacket flaunts prints and loud pops of colour, cropped or cinchedat the waist, and breaks stereotypes by sitting just as calmly over slip dresses as it does over jeans. Quilted stitching details in linear and lozenge-shaped patterns gave a stylish spur to iterations of bomber jackets, long coats and oversized versions.
EXPOSED ZIPPER
CINCH-SPICIOUS
A
s attention narrows down to the waistline, belts serve as an unmissable detail that emphasize the coveted hour-glass silhouette. Be it basic – big, wide and looped, or conspicuous as laced-up, corseted or belted, belts served as the accessory to-go for all kinds of collections.
designers to keep the zippers and closures exposed and multiple. Seen as profligate slashes over jackets, flys, and turtlenecks or diagonally placed all the way through, over dresses and skirts, the zips seem to be the new hardware-in-town.
Chunky, decorative buckles with or without a dominant brooch were seen aplenty, securing dresses, gowns, jackets and coats, trousers and skirts. Oversized versions layered as easily over skin hugging pieces as they did over boxy shapes translating the cinch as a major trend for the coming season.
Isabel Marant
Giambattista Valli
Moncler Grenoble
Topshop Unique
Sies Marjan
Tome
Peter Pilotto
Antonio Berardi
Although the rose-gold trend continues to enjoy a market of its own, silver tinted zippers topped with a circular ring closure, are hands-down the best-seller in this category as it makes its way into the much hyped fast-fashion pieces.
BORROWED FROM THE BOYS
FEATHERY DELIGHTS
F
rom actual marabou and ostrich feathers to the less palpable beaded fringes –swayinducing styles are sashaying between street chicand opulent exaggeration teamed with graceful fluidity. Inspired from a general fancy with flight and movement, designers are channelling the 1920’s feathering effect by making use of everything from tassels to shredded fabrics and unkempt yarns and injecting them into their collections. Feather-embellished hemlines edging skirts and dresses, adorning sleeves or posing as little plumes embroidered all-over dresses served as concoctions applied over cotton, leather and linen at the Fall/Winterrunways.
Marchesa
Stella Mccartney
Prada
J W Anderson
David Koma
Thom Browne
Jilsander
Ranging from menswearstaples such as tailored blazers and jackets that featured tartan and striped prints to the inclusion of fabrics such as wool, tweed and classic suiting material in more conventional styles, the trend imparted a fresh spin on womenswear classics. There was a significant majority of feminine silhouettes that projected power suiting for the approaching season.
Calvin Klein
trend of the season is the use of masculine influences to accentuate certain aspects of femininity. Despite a rebellious fashion week, menswear-inspired silhouettes and prints served as a key inspiration for an umpteen number of designers.
ORNAMENTAL APPLIQUE PATCHWORK
FRINGE EFFECT long with the ’80s, the’70s also managed to find their way into this year’s collections in the form of fringes, which continue to re-invent themselves season after season.Tiered and layered over dresses, serving as trims on the hemlines of coats, jackets and skirts or serving as details over sleeves and accessories such as bags – the fringe might as well be one of the main details apart from ruffles and frills to make a strong case for Fall/Winter 2017-18.
A
and sheer dresses infused with laser cut appliqué motifs introduced a fanciful vibe to 2D renderings. Designers and highfashion brands alike, stirred up whimsical vibes by featuring the richness of the embroideries and patches over fine materials such as velour, fur, leather and even suede.
In some cases, the fringe took on a more delicate and feminine twist appearing all-over dresses and adding a roaring Twenties spin to them.
XU ZHI
Balmain
Prada
Versac e
Gucci
Simone Rocha
Angel Chen-
Antonio Marras
Everyday fabrics such as denims and knit sweaters were adorned with embellished versions of motifs that sat well with both feminine and masculine silhouettes.
FASHION BUSINESS
TIED TOGETHER WITH A SMILE F O C U S ON FA S T E N INGS A ND CLO SURES FOR FALL/WINTER 2017-18
A
s the narration of our hyperconnected world progresses
– both in real and digital life – a growing sense of community, cultural sharing and breaking of borders befalls us. The overall theme invokes a feeling of togetherness and a close-knit society, which hardly comes as surprise to anyone since the independence of modern lifestyle leaves no room for good peer relationships. This newfound obsession with connectivity drives home our impending need for ‘all-inclusive’ design processes and increased transparency in the functioning of brands. As always,
But moving on from their strictly functional position to a more aesthetic territory, statement fastenings are steadily rising as a key trend in its own right. Closer back home, production teams in India are translating these trends in their own subtle ways to make use of the detailing that is perfect for high street due to its cost-efficiency in garmenting processes. Pallavi Gupta of Taurus Global explained to our Fashion Team how they are big fans of repurposing fastening details creatively. She explains that for their military story they went big on hardware additions like hooks,
WHEN EVERYTHING, FROM SOCIO-POLITICAL DISTURBANCES TO MYRIADS OF ECONOMIC UPHEAVALS, IS KEEPING POPULAR FASHIONS BURSTING AT ITS SEAMS, FANCY CLOSURES AND HARDWARE FASTENINGS ARE HERE TO THE RESCUE IN HOLDING ITALL TOGETHER. fashion is most sensitive to the caprices of the world, and in its own way depicts what we are all feeling at a given point of time in history. Hence, even as the ‘You Do You’ trend continues to gain momentum, it is definitely taking a turn into an optimistic direction of being individualistic in a society that you can identify as your own. When everything, from socio-political disturbances to myriads of economic upheavals, is keeping popular fashions bursting at its seams, fancy closures and hardware fastenings are here to the rescue in holding it all together. On a basic level, they help you disrobe quickly. So they have certainly been here since we began wearing clothes.
clasps and small buckles but this time their story has more bohemian bend. So to achieve the mix of Aztec and Central American references, they are using buttons’ tied up strings and fringing majorly. Taking the trend one step ahead, they are creating buttons in-house, with cave painting-inspired embroideries that really pop-out aesthetically. Wrap it, knot it, buckle it, or tie it – fashion is grabbing its favourite pieces and repurposing them with gentle restrain that is as subtle as it is complicated this season. Here is a collation of the big winning fastening and closure options that are key to keeping your fashion collections together for Fall/Winter2017-18!
LONG SELF-BELTS
STATEMENT BUTTONS
Sonia Rykiel
Christopher Esber
From buttons that look like Instagram’s little heart icons and flower motifs to simple metallic ones that bring stark distinction on muted colour palettes – novelty buttoning is the way to go this season. Far out of place from its original roots, designers are transforming the humble button into a point of focal decoration all by its own. Praveen Gupta of Virendra Textiles shares that their production team is also obsessed over buttons in a major way. They are using several types of buttons, most of which are imported from Hong Kong or China, in varying sizes such as wooden, pearlencrusted, nylon as well as general fabric wrapped variants.
While some are renovating signature thick styles like big belt buckles or brooches to channel a strong doze of nostalgia, most designers are going for a more visually reinvented approach to add contemporaneous twists on traditional silhouettes. However, all across the board – belts are getting a central focus on the international runways. Whether it is through disproportionately long lengths that hang loose on the floor or the use of multiple thin ones – bounded self-belts are perking up waistlines that have nothing feminine or dainty about them this season.
EXPOSED ZIPPERS
Andrew Gn
Typically type-casted as a mere servicing element in fashion garments, our meek utilitarian zippers – from their neck to floor avatars to the patched over as embellishmentversions – are fast becoming a one way ticket to the cool kids’ table. The front-toothed zips positioning in arbitrary places, with big hyper visible flies and the treatment in contrasting colour settings for a stand out appeal is giving off a very rockabilly rebel feel to garments. Gaurav Sethi of G-Line Creations strongly affirms the trend of fastenings as embellishments, adding that their team is using both eyelets and exposed zippers sizes varying from 0.5 to 2.5cm in both metallic and plastic materials as stitch over additions on the edges like sleeves or hemlines
Teatum Jones
When your life appears to be falling apart from the ridges, tying it back together with criss-cross laces that are far from the simple inter-lacings on your sneakers is the only way to go. Who needs sewing machines when you tie your outfit together? Designers are focusing their attention on the construction of garments, and creating covetable looks using oversized laces to connect panels of fabric and even employing whipstitching, or metal links for an edgy appearance. From spliced shirts, strapped-up arm ties to crisscross necklines, dainty lace-up is a trend that is the personification of comfort and style intermingled in the best way!
HARDWARE FACTORY
Fashion’s dubious new friend group consists of everything you can find only in hardware shops – from grommets and eyelets to hooks and snaps – some might call this new clique a bunch of misfit outcasts entering the world of high glamour but that isn’t stopping designers from going gaga over them. Making adornment more avant-garde than ever, fashion houses are deliberately commissioning these elements either for cinching waistlines and holding two pieces of fabrics together or simply as a decorative feature in place of conventional sequins. Even Indian exporters unanimously agree on the use of eyelets and grommets as not just utilitarian but as accessorized add-ons.
Sportm ax
INFINITE LACE-UP
FASHION RESOURCE
RED W(H)INE
FASHION FILE
After Spring/Summer’s eye-popping currents of fuchsia, the colour palette for Fall/Winter 2017-18 gets even more confident, bringing high power crimson reds back in vogue.
Heritage fashion house Givenchy, paved the way for saturated reds by showing a collection entirely in the colour; Max Mara layered multiple all-red pieces creating covetable homochromous looks; designers at Altuzarra wrote sartorial proses of love using lush velvets; Y/Project made the case for sporty red in leather co-ordinates and Libertine employed patchwork and quilting to take the trend one step ahead. Perhaps it’s the pulsating of our blood as the world dances in wild extremes or just a craving for a fantastical romance, raging reds in all its shades from samurai to scarlets are reigning on the runways!
by Fashion Forward Trends
A/W 2017-18
Colour Story
Alexa Chung launches her eponymous label
Ascential's new Coloro to transform how w e use colours!
British fashion icon, Alexa Chung, unveils her namesake label’s debut collection with a runway show in London. The label stays in sync with Chung’s personal style and consists of classical options like ruffle dresses, graphic tees, denim suspenders, A-line skirts and mom jeans. This new brand’s MD, formerly Haider Ackermann’s Atelier Head, Edwin Bodson added, “Our unique positioning, allowing us to prioritize quality and attention to detail at an accessible price point, coupled with a ‘see now, buy now’ approach, has really helped in forging authentic relationships.” The collection is available on the brand’s website and some luxury spaces like Selfridges, Colette, Galeries Lafayette, Matchesfashion and Mytheresa.
B2B media firm, Ascential that shelters leading authorities like trend-forecasting firm WGSN, announces the launch of Coloro: a new product shaped in partnership with China Textile Information Center (CTIC). Coloro is a 3D system which delineates colour built on a distinct 7-digit code representing the exact point where Hue, Lightness and Chroma intersect. It is a result of combining 100-year-old colour methodology with 20 years of scientific innovation led by CTIC, to create a highly accurate system that employs logical codes and intuitive design. The product will guarantee that fashion and textile professionals work seamlessly in devising the exact colour they need with utmost ease and precision.
Lands' End releases UV protectant sw imwear for kids
pantone
pantone
18-0403 TPX
12-1007 TPX
pantone
pantone
15-1319 TPX
19-4820 TPX
pantone
pantone
19-1663 TPX
18-1436 TPX
American lifestyle retailer Lands’ End, has unveiled a new swim collection for kids which features UPF 50 sun protection and leading fabric technology that boasts of a recommendation from the Skin Cancer Foundation. The assortment comprises of exciting yet functional swimsuits, fast-draining water shoes, monogrammed beach towels, matched cover-ups and tote bags. In order to make their designs not just fun and colourful, the brand has also worked on swim pieces for girls that are smart with tug-less fits and prevent straps from sliding down and bottoms from riding up. For boys, they have made board shorts and swim trunks with soft mesh liners and internal drawstrings for a perfect fit and no chafing.
INDUSTRY WIRE APPAREL RESOURCES NEWSLETTERS
FACEBOOK FRIENDS
To subscribe, send us an email at subscribe@apparelresources.com
Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resourcesat https://www.facebook.com/apparelresources/
Strawberry Clothings exploring Canada; entering into domestic market with its new unit
N
oida-based apparel exporter Strawberry Clothings (a unit of Shatabadi Exports) is exploring new markets, improving its work culture and increasing its manufacturing capacity to enter into the domestic market. Started in 1997, the company currently has 225 stitching machines, with its major market in South Africa. However, it also caters to the European countries through buying houses. Ladies garments (woven) between US $ 4 to US $ 7.5 is the strength of the company. Rohit Bhandari, Director of the company informed that he is exploring Canada and will participate in a Canada-based sourcing fair too as Canada has lot of scope for Indianstuff. “Currently we are studying this market and hopefully will get good
business in future from there.” He further added that planning is under process to have a separate unit for supply to Indian domestic brands. “Being an exporter, we are used to having better control over quality, and in domestic, it will work as our big strength. I had discussion with some known Indian brands of womenswear and they highlighted the need for expertise in quality which we already have. We will start this new unit with 100 stitching machines and will proceed accordingly. In the next 2 to 3 months, we will start this new unit,” confirmed Rohit. The company is focusing on its workers and improving the working culture too. Rohit shared that he often faces local issues like domination by union membersand their ‘unfair’ demands. “By the
Rohit Bhandari, Director, Strawberry Clothings
time a new worker settles in our factory, these unions ‘mislead’ the worker and the worker leaves us, or demands for more piece-rate or higher wages. We have appointed a manager specially to ensure proper counselling of workers and are also trying to hire those kinds of workers
Gaiety Fashion expanding capacity; adding new
buyers
T
irupur-based Gaiety Fashion is expanding its capacity, and adding a printing unit and some new buyers too. Established in 2009, the company currently has 320 stitching machines and is in the process to add 110 stitching machines more. In its printing unit, the focus will be totally on screen printing. Machines of M&R are already booked for the same but it will take some time to finalize the place as the company wants to ensure that there is no pollution issue. S N Boopathy, Partner of the company shared with Apparel Online, “We are investing almost
who want to remain in the apparel industry only and envision a longterm career in this domain rather than working just for money. These workers become more loyal to the organization and more productive as well. In this regard, we have noticed some positive results too.”
Rs. 2.75 crore in this expansion and hopefully it will be completed by November this year. Once the expansion takes place completely, we are expecting at least 40 per cent growth.”
RVS Mani and S N Boopathy, Partners of Gaiety Fashion (1st and 2nd from right), with their colleagues
Gaiety Fashion, manufacturing value-added ladieswear and kidswear (60 per cent of the total production), works primarily with brands of Germany. Moving further it has also added two brands/ stores from Spain. It also got its SA8000 certification upgraded recently. With an average FOB of US $ 4.5, the company last year had a turnover of Rs. 30crore.
INDIA CANVAS WISH TO SUBSCRIBE TO APPAREL ONLINE?
GOING TO A GOOD EVENT?
Please call Customer Service at 82-62-880-880
Send your industry gossip, photos and news to isaxena@apparelresources.com
POST ‘SPECIAL PACKAGE’ MoT claims approval of Rs. 3,000 crore investments for the garment industry
O
n the occasion of completing three years of Modi Government, Smriti Irani, Union Minister of Textiles, held the first ever official meet of the Ministry and media in New Delhi. In an hour-long briefing, the Minister touched each and every aspect of the Indian textile industry and highlighted the Government’s journey and achievements of three years. She highlighted that a ‘Special Package’ of Rs. 6,000 crore which was announced last year in June, has so far approved an investment worth Rs. 3,000 crore for the apparel segment. She stated that apart from creating a positive impact, this package led to an increase in the Indian apparel exports by 4.7 per cent during the period, from July 2016 to February 2017. Apparel Online raised the question of how far MoT can complete its target in the next two years by
attracting investments of US $ 11 billion (Rs. 74,000 crore) in the next three years and generating US $ 30 billion in exports, with the development of more than one crore new jobs.
MoT’s press conference: Five main points
The minister replied, “The administrative’s tasks to make the announcements possible on the ground level take a lot of time; but the investment of Rs. 3,000 crore shows that the administrative things which we need to notify, have been done on time. One of the hallmarks of this package is that whenever the industry faces any challenge regarding this package, they find a solution with Office of the Textiles Commissioner or with MoT. We do help the industry along with communicating to the states. Textiles India 2017 is a first initiative of its kind to boost international investment in Indian textile industry. I feel the entire value chain of the Indian textile
1. MoT will soon announce a ‘big package’ for knitwear industry. 2. Under the ‘Special Package’, an investment of around Rs. 3,000 crore has been approved so far. 3. MoT had a meeting with the Indian Army Chief also to seehow MoT can increase opportunity to meet Army’s needs. 4. Rs. 5,800 crore subsidies have been given to the industry in past three years under Amended TUFS. 5. Office of the Textile Commissioner has become pro-active in recent years with push from MoT.
(L-R) Anant Kumar Singh, Secretary, MoT; Ajay Tamta, Minister of State for Textiles; Smriti Irani, Union Minister of Textiles; APFrank Noronha, Principal DG (M&C), PIB; and Pushpa Subrahmanyam, Additional Secretary, MoT releasing a booklet on completing 3 years of Government
industry will be under one roof in this event along with 17 ministries, and the opportunities are much higher. Textile consumer is fragmented and rather than looking at it just from apparel point of view, see it from the perspective of the entire chain including technical textiles, its requirement in 100 smart cities, etc. The data we shared is just of the apparel sector because till 2004, Office of the Textiles Commissioner made it a point to collect data for the entire textile value chain. But after 2004, it was stopped and we notified it after 13 years that Office of the Textiles Commissioner will now collect information of the entire value chain and will share in the public domain.” She further said under the Pradhan Mantri Paridhan Rojgar Protsahan Yojana, over 1.4 lakh new workers have registered themselves for provident fund and it is an industry norm that along with 1 direct job, there are 2.3 new jobs generated. It means this has figure of more than 3 lakh job generation. The minister claimed that Rs. 1,900 crore duty drawback/ROSL has been already given to the textile and apparel industry to increase its export by further investment. On the issue of violation of norms by some special purpose vehicles operating in textile parks and a report commissioned by the textiles ministry concluding that the Scheme for Integrated Textile Parks (SITP) has failed to achieve its objectives, she said if violations come to light, the Office
of the Textiles Commissioner takes positive or punitive steps to ensure that there is no anomaly or transgression. The minister informed that funds to the tune of over Rs 1,900 crore have been given to the apparel industry under the rebate of state levies to boost exports from the sector. Irani also stressed on the upcoming Textiles India 2017 fair and averred that this ‘Historic’ event will be able to fetch lot of investment for the textile industry. Around 25 countries will take part in this mega event. Roadshows have been held in six countries including the UK, US, China, Russia, South Korea and UAE to attract the industry and potential investors. She assured the industry that National Textile Policy will be put in public domain as well before finalization, though
Exporters feel that direct compensation and incentives like increased rate of duty drawback and discounted credit rates would be more helpful.
‘AO Survey’ on the ‘Special Package’
S
ome ftndings: 27% of the exporters said that they are aware about this package, while an equal number of exporters also stated that they don’t have any idea about it. 39% shared that they have heard about it, but not gone into detail. 7% specified that their partners or someone handles such issues in their company. With regard to how they received information about this package, 21% said that trade associations informed them about it, while 20% said that they themselves gathered the information. Whereas 44% shared that nobody contacted them officially, 15% of the respondents stated that they are never informed by a proper channel about such policies or changes. 16% companies were of the opinion that this package really motivated them, but 32% claimed that this package just motivated a ‘little bit’. 7% said that initially they were hopeful, but not now; 23% said, ‘Can’t say’; and 22% refused to comment on it. On being asked whether they were likely to get any benefit from this package, 20% respondents confirmed by saying ‘yes’, but also emphasized that it is in ‘planning stage’. 50% told that that current market situation does not allow for expansion, so can’t take benefit as of now. 30% were positive about getting benefits in near future.
10% of the respondent accepted that the package is perfect while 73% chose the option ‘can’t say’. Another 17% said that there is discrepancy and few of them shared points like having ‘hiring and firing’ policy at least for non-performing workers, cost of finance not being compatible etc. The communication gap between MoT and apparel bodies is also mainly hurting SME exporters. There was a gut feeling that the package is designed in such a way that it is more beneficial to the bigger exporters, but 32% agreed that the package will benefit everyone in this industry while 29% exporters completely believed that this will be beneficial to the bigger exporters while same number of exporters said that they need to have more clear idea about the benefits from this package. 10% said that it is too complicated for small exporters to understand. 31% exporters said that MoT and AEPC should have more focus on communication of such important issues. While 34% said that having direct contact with exporters about this can be a good option. 25% exporters didn’t have any kind of suggestion in this regard, but 10% of exporters suggested some ways to make this package more effective, and one of them was that exporters should come forward themselves for this entire exercise.
she did not give any indication on when it will be rolled out. Highlighting the efforts of the Textile Commissioner’s office, the minister said that the entire system of taking subsidy is now online and fully transparent. Functioning of garment manufacturing centres in all states of North East (apart from Sikkim), PowerTex India scheme, increase in silk and sericulture production, starting of 13 jute mills’ were some of the main focus points in the brief given by the minister. The Minister added that whatever announcements related to the textile industry were made by Indian Prime Minister Narendra Modi, MoT has executed them on ground.
Status of pledge of Rs. 623 crore by 35 exporters
W
ithin 120 hours of the package announcement last year, AEPC had claimed that 35 apparel exporters nationwide had taken a pledge to invest Rs. 623 crore in three years to generate 30,120 new workforce. However, Apparel Online’s efforts to reach 14 key companies out of these 35 regarding their status on this matter resulted in only one of them giving a clear reply. Ravi Poddar, MD, Cheer Sagar, Jaipur confirmed that they had recently invested about Rs. 5 crore in a new factory, but employment has not increased much (just 50) because of latest digital technology in machines which reduces the need of too many people. He added that the international and internal
challenges like increasing wages, delayed national textile policy, are also not good news for the industry. But AEPC believes that the sector has seen phenomenal growth after the ROSL disbursements started. India’s apparel exports in February-April 2017 has shown an average growth of 18.4% in dollar terms, 15.8% in rupee terms and 15.1% in volume growth. “But we feel the impact could have been much more, and earlier too, had the roll-out been faster,” states AEPC Chairman Ashok Rajani. It is being said that the GST rates, announced on 3rd June with its multiplicity of rates and inverted duty structure, is adding to this chaos.
INDUSTRY LIVE
AEPC partners with ILO to promote good practices in apparel industry In an effort to bring in and set benchmarks for good labour practices in the apparel industry, the AEPC has partnered with International Labour Organization (ILO). The initial effort is to understand the scope and extent of the potential good practices in the apparel supply chain that contributes towards improved quality, efficiency and sustainability. Drawing upon the experiences in other countries like Bangladesh, Sri Lanka, Vietnam and Turkey, and understanding the feasibility of adopting the practices in Indian units, a user-friendly good practice manual is being developed for small, medium and large firms, which are replicable and can demonstrate a business case for their replication. The document is being seen as an important guidance document for export competitiveness. In the preparatory phase, existing practices in the apparel units in clusters like Tirupur, Jaipur, NCR, Ludhiana, Bangalore and Chennai were studied which brought out the need for standardisation and the potential for adopting some easy-to-adopt production and manufacturing systems that can improve export competitiveness. A total of 43 units were covered
and the study was completed in March 2017. The manual is expected to capture around 50 prioritized good practices covering areas of productivity, operational efficiencies, environmental sensitivity, compliance and management practices. The framework document is being prepared by the ILO’s subject matter expert, Camilla Roman and her team at ILO, Geneva. Supporting her in the country are Sher Verick, Deputy Director, ILO Decent Work Team for South Asia and Country Office for India and his proactive team. As a first initiative towards the goal, a stakeholder consultation meeting was organized recently in New Delhi for a frank and open discussion on the draft and framework finalized. Underlining the importance of the event many critical stakeholders from industry, including leading brands and Government bodies were present at the meeting. Many areas of concern were discussed and representatives from leading exporters like Shahi and Matric Clothing shared their best practices. While buyers felt that not enough was being done to educate the
The framework document is being prepared by the ILO’s subject matter expert, Camilla Roman (seen above) with her team at ILO, Geneva
workers on their rights, exporters shared how special programmes were being run to integrate the workers into the company. Inclusive growth and importance to feeling of ownership to get the best out of workers were dwelt upon. Subrata Gupta, IAS, Joint Secretary (Exports) Ministry of Textiles, urged the industry to share their concerns with the ministry so that necessary steps could be taken to the mutual benefit of all the stakeholders. ILO has been running the SCORE programme across world on operational efficiency and better systems for management. AEPC, as the industry partner will
be helping in dissemination of the manual recommendations and ensure greater awareness and absorption of the manual guidance. The manual is expected to capture around 50 priorities/ good practices covering areas of productivity, operational efficiencies, environmental sensitivity, compliance and management practices. It is expected to be ready by August 2017, post which AEPC will take it to the industry for greater awareness and adoption. Some of the areas need further training, where ILO can be consulted for imparting onsite training for industry willing to take it up.
ATDC aims to open ‘Regional Training Hub' in Gujarat Apparel Training and Design Centre (ATDC), one of the largest quality vocational training providers for the garment industry in India, is exploring opportunities in Gujarat to set up a new Regional Training Hub there with a specific end-goal to fulfil the steadily expanding requirements of the
skilled youth in the speedily developing textile-related sectors. The Centre plans to set up “India International Skill Centre” with National Skill Development Corporation (NSDC), ATDC-SMART centres and Apparel Design Centre with focus on “Innovative Designs”, in major textile and apparel
clusters of Gujarat, to create new brands and global fashion for youth. There are also plans to commence vocational courses in the state. Dr. Darlie Koshy, DG &CEO, ATDC said, “Gujarat is one of the fastest developing textile and apparel manufacturing clusters. ATDC has state-of-the-art infrastructure,
offering shop floor, supervisory and managerial skills to make industry-ready workforce. This will enable us to make new skill development forays in the state as we propose to set up a Regional Training Hub in Ahmedabad/Gandhinagar, with additional training centres in the domain.”
CMAI rolls out fourth quarter Apparel Index The Clothing Manufacturers Association of India (CMAI) has revealed a sign of recovery for the Indian apparel industry post demonetization during the fourth quarter (January to March period) of FY ’16. The Q4 Index shows overall growth has improved mildly with total index value moving up to 2.25, compared to 1.4 points in Q3. The report covers 100 brands including 56 small brands, 20 mid brands, 9 large brands and 6 giant brands. According to the latest CMAI Apparel Index, the giant and large clothing brands recorded 10.58and 6.72 points index value respectively. Small brands which got impacted badly and recorded negativegrowth at 0.55 points in Q3, managed to turn positive with 0.62 points in Q4. Mid brands grew at 3.03 points up from 1.22 points in the previous quarter and the small brands managed to turn positive with0.62
points in Q4 as against negative growth of (-) 0.55 points inQ3. Additionally in Q4, the sales turnover for the giant and large brands increased to 8.00 points and 5.78 points, respectively. On the other hand, small- and midbrands sales turnover also grew at 0.31 and 1.60 points, respectively. CMAI says that during previous
FY, giant and large brands maintained their lead in Q4 as they outpaced mid- and smallbrands which managed a small growth in sales turnover mainly due to demonetization and its impact was seen on overall retail sales. It may be noted that a small growth in sales indicates less stock clearance.
Projecting a positive first quarter for the new financial year 2017-18, CMAI specifies that brands can assume the summer season to be a progressive one, coupled with almost dry supply chain and shelves in quest of fresh goods and consumers will for sure return to the stores.
ROSL effect: Apparel exports up by 31.7%
Punjab hikes power tariff for industrial consumers
Indian apparel exports industry noted a surge of 31.7 per cent in April this year, post the implementation of Rebate of State Levies (ROSL) Scheme, which was announced in July 2016. Also, the exporters have increased their production by around 30 per cent and generated approximately five per cent more employment.
Punjab has announced hike in power tariff for industrial consumers from June this year. The move has been criticized by the Northern India Textile Mills Association (NITMA) and intervention was sought by Chief Minister Amarinder Singh to roll back the decision. Punjab State Electricity Regulatory Commission, Chandigarh, has increased the power tariff by Rs. 2.00 per unit effective from June 1 for the peak load hours for industrial category consumers. The TOD tariff comprising of normal tariff minus Rs. 1.00 per KVA from 10:00 p.m. to 6:00 a.m. next day (8 hours) has also been withdrawn.
Ashok G Rajani, Chairman, AEPC shared, “The big jump in apparel exports is the result of the recently implemented incentive called Rebate of State Levies on export of garments, as it helped the industry to increase the production at very competitive rates for a larger share of the global market. 80 per cent beneficiaries of the ROSL
Scheme are exporters (SMEs) with a turnover of less than Rs. 10 crore per year. The Chairman also urged the Government to carry out the ROSL Scheme in the GST era too. A study of more than 1,000 exporters on key contribution to exports was also conducted and will soon be disclosed. ROSL Scheme is in tune with the recognized economic principle of ‘zero rating’ of export products and in recognition of the fact that at present, only central levies are rebated by the way of drawback schemes. With GST being operational from July 1, 2017, any dilution in the ROSL Scheme will hit the apparel export sector badly, thereby impacting job growth.
During an interaction with Apex Chamber of Commerce &
Industry (Punjab) at Ludhiana, CMD of PSPCL, A. Venu Prasad indicated that Punjab State Power Corporation Limited (PSPCL) is in the process of putting a system in place for supply of power to the industrial sector at Rs. 5 per unit as promised by the Punjab Chief Minister. “We have requested for the intervention of Punjab Chief Minister to hold back the decision of increasing the power tariff to save the industrial sector in Punjab. NITMA has termed the hike as backdoor increase as the power tariff for this financial year is yet to be announced,” said NITMA President Rajiv Garg in a statement.
BEYOND INDIA APPAREL RESOURCES NEWSLETTERS
FACEBOOK FRIENDS
To subscribe, send us an email at subscribe@apparelresources.com
Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resourcesat https://www.facebook.com/apparelresources/
US textile associations outline causes of trade deficit Targeting the flaws in US textile production, four US textile trade associations – the National Council of Textile Organizations (NCTO), American Fiber Manufacturers Association (AFMA), Narrow Fabrics Institute (NFI), and United States Industrial Fabrics Institute (USIFI) – have outlined causes of the US $ 95 billion US trade deficit in textiles and apparel. All four associations have also suggested remedial actions to the US President Donald J. Trump’s administration in their joint comments submitted to the US Department of Commerce (DOC)
on May 10, 2017. In addition, NCTO’s Upholstery Fabrics Committee (UFC) also detailed the reasons for the flawed US trade policy with China.
13786 on 31st March 2017 which directed DOC and the Office of the US Trade Representative (USTR) to prepare an omnibus report on significant trade deficits.
The joint statement summarizes, “The United States has offered the world incredibly generous access to its textile and apparel market over the years, while failing to secure reciprocal export opportunities with a number of the countries that have been main drivers for the US textile trade deficit.”
Praising President Trump for ordering a review for trade policies, NCTO President and CEO Augustine Tantillo commented, “A trade deficit study like this should have been initiated years ago. If America is to reverse its trade-related red ink and create more jobs, policymakers must have a better understanding of the policies and economic factors responsible for driving production offshore.”
It’s pertinent to mention here that Trump signed an Executive Order
AugustineTantillo
Ethiopia sets US $ 30 billion target from T&C exports by 2025 Planning a whole new trade strategy, Ethiopia has set a target to generate US $ 30 billion from export of textile and clothing by the year 2025 as the Government says the industryis one of the country’s key targets for growth. In 2016, the African country could only produce textile and clothing shipments to US worthUS $ 33.14 million and nearly US $ 82 million to the rest of theworld.
Dr. Arekbe Oqubay, Special Advisor to Prime Minister Hailemariam Desalegn, explained, “The plan will transform Ethiopia to a compelling new sourcing hub for brands, retailers and their suppliers.” He exclaimed that by 2025, the Government wants to make Ethiopia the leading apparel and
textile manufacturing hub in Africa capable of exporting up to US $ 30 billion and that’s the single and bold vision they have. “It is a challenge, but we are confident that we can achieve this target. We believe, if Vietnam can do it, and if Bangladesh can also do it, then Ethiopia can do it even better,” explained Arekbe.
It may be noted here that until 2010 the prime focus of Ethiopia was on agriculture but now the country is giving more attention to manufacturing keeping apparel and textiles on top priority because it’s one of the largest employing industries that can help the country capture the significant international apparel market. Adding to the development plan, Ranjan Mahtani, Chairman and CEO of Hong Kong-based Epic Group, commented, “The one thing that is unique in Ethiopia is that there has never been such an organized roadmap dedicated to textile and clothing…, not in any country in the world.” Also, in addition to the current 50,000 employees in the textile sector, the Government is hoping to create a further 350,000 jobs over the next four years and the number may increase after 4 years.
South Korean textile company to increase investment in Vietnam A leading South Korean chemical and textile company, Hyosung Corp., will in all probability increase its investment in Vietnam. This comes after the company’s operation in Vietnam delivered extraordinary earnings among its subsidiaries in 2016. According to the Financial Supervisory Service, Hyosung raised US $ 131 million in net profit from its Vietnamese business for 2016 – best earnings among the 26 subsidiaries under the South Korean textile company. It is worth noting that its sales reached 1.1 billion Won, exceeding the 1 billion Won mark for the third straight year. According to an unnamed official from textile industry, recent
excellent sales and the decision of the Vietnamese Government to introduce a slew of measures to attract foreign investment has encouraged Hyosung to resume its investment in its Vietnamese operations. Hyosung may ramp up its annual spandex production capacity in Vietnam from current 50,000 tonnes to 80,000 tonnes, a move that will make the plant become its largest spandex manufacturing production base, and gradually increase the tire cord production capacity from current 100,000 tonnes per year. Many Korean companies had vigorously increased their investment in the Vietnamese textile industry, expecting that
they would take advantage of the TPP pact that would reduce tariffs on their products exported from Vietnam to the US and other member countries.
After the US walkout from TPP, most Korean companies have however pushed back their investment plan in the south-east Asian country.
Cambodian Labour Minister praises growth of garment industry Although industry representatives observed a little slowdown in the market due to rising competition from regional players, Ith Sam Heng, Cambodia’s Labour Minister applauded the strong growth and employment level of the garment industry of the country. While speaking on the occasion of International Labour Day, the Minister said that the sector provided US $ 2 billion in salaries annually and created employment for 750,000 workers with the minimum wage increasing by nearly 10 per cent last year to US $ 153 a month. “With the combination of other additional benefits, each worker can get paid
a total of about US $ 170 per month to US $ 181 per month,” he added. Despite strong competition from countries like Bangladesh and Myanmar, the garment industry of Cambodia continues to grow said Van Sou Ieng, President of Garment Manufacturers Association of Cambodia (GMAC). “We are still able to survive, but the growth rate is at an average level with just single digit growth,” he mentioned. The Labour Minister however underlined that growth of the sector should begin to increase with the expansion of travel goods exports to the US that received duty-free privileges last July; to which, Van added, “Some of them are
building factories which will soon be operational. The export value of Cambodian-made travel goods will increase noticeably in the near future.”
The garment industry continues to dominate Cambodia’s exports, accounting for over 10 per cent of GDP.
TRADE STATISTICS
US apparel imports sharply increases in April January-April
2017
After March, US rose for the second consecutive month as its apparel imports have sharply increased in April. This is a clear sign that the country is rebounding now. A significant fall of unit prices in China and Vietnam might be a factor behind this surge as quantity-wise these two countries are the top exporters to the US. Since President Trump intends to renegotiate NAFTA which might produce more apparel jobs in the country, it will be an interesting scenario to see it would impact apparel imports in future.
‘Facts and Forecast’ for US Apparel Industry
Global Apparel Imports by the US: Jan.-Apr. 2017
98%
Total Increase in Quantity
30%
projected apparel
global apparel market
324 bn
apparel sold in USare
2.24 %
USD
2017 in US
Total Decrease in Value
1.71 %
107
3.94 % (Average UVR in the review period was US $ 2.92 as against US $ 3.04 in the same period last year)
USD
is average price per piece in US apparel market
average consumer spending in US apparel market
Total global apparel imports by the US - Jan.-Apr. 2017 (Qty in mn SME & Value in US mn $) Jan.-Apr.2016
4.01 % MMF
1.85 %
9.90 % Silk & Veg
%Change
Qty
Value
Qty
Value
Qty
Value
3763.894
12382.937
3687.436
11886.889
-2.03
-4.01
Wool
32.493
594.505
29.882
535.627
-8.04
-9.90
MMF
4288.689
11313.948
4555.258
11522.823
6.22
1.85
Silk &Veg
142.807
697.567
139.459
615.548
-2.34
-11.76
Total
8227.88
24988.96
8412.04
24560.89
2.24
-1.71
Cotton
Wool
Jan.-Apr.2017
Type ofApparel
Change in Value Cotton
910
9.53
pieces are average volume/ person in US
Percentage Decrease in UVR
USD
11.76 % Total apparel exports to the US by 6 major manufacturing destinations - Jan.-Apr. 2017
Change in Quantity
(Qty in mn SME & Value in US mn $)
Jan.-Apr.2016
Cotton
2.03 % MMF
6.22 %
Wool
8.04 % Silk & Veg
2.34 %
[The information has been extracted from US custom site and further analyzed.]
Jan.-Apr.2017
%Change
Countries
India Bangladesh China Pakistan
SriLanka Vietnam
Qty
Value
Qty
Value
Qty
Value
400.573
1425.488
397.974
1378.896
-0.65
-3.27
658.953
1857.115
648.05
1740.184
-1.65
-6.30
2986.252
7704.638
3127.624
7438.56
4.73
-3.45
178.842
395.841
163.983
388.011
-8.31
-1.98
166.831
702.218
160.506
675.235
-3.79
-3.84
1058.532
3348.844
1185.88
3622.258
12.03
8.16
Unit Value Realization (UVR) Trend from Top Apparel Exporters to US (January to April 2017)
Top 3 Quantity-wise Apparel Exporters to US (January to April 2017)
4.50
8%
4.00
6%
3.50
4%
3.00
2%
2.50
0%
2.00
-2%
1.50
-4%
1.00
-6%
0.50
-8%
0.00 UVR 16 UVR 17 % Change
-10% India
Bangladesh
China
Pakistan
Sri Lanka
Vietnam
3.56
2.82
2.58
2.21
4.21
3.16
3.46
2.69
2.38
2.37
4.21
3.05
-2.81%
-4.61%
-7.75%
7.24%
0.00%
-3.48%
US General Imports of Cotton (April 2017) General Customs Quantity and Y-o-Y % Change
US Apparel Imports General Customs Value and Y-o-Y % Change 8.00
10%
7.00
3%
5%
6.00 0%
5.00 -5%
4.00 -10%
3.00 2.00 Feb-17
Mar-17
Values (in US billion$)
2%
810.00
1%
710.00
0%
610.00
-1%
510.00
-2%
410.00
-3%
310.00
-4%
210.00
-5%
110.00
-6% -7%
10.00
-15%
Jan-17
910.00
Yarns
Fabrics
Made-ups
Apparels
Apr-17
Y-o-Y % Change
Quantity (in millionSME)
Y-o-Y % Change
Item-wise quantity increase/decrease in apparel imports by the US: Jan.-Apr. 2017 (Qty in doz, legwear in dpr, babieswear in kg) Exportsto USA Total Imports byUSA APPAREL TYPE
China
India
2016
2017
%Change
2016
2017
Babieswear
30,754,104
32,281,943
4.97
13,327,022
Foundation Garments
19,470,093
20,704,564
6.34
11,004,764
Jackets &Blazers
Bangladesh
Vietnam
%Change
2016
2017
%Change
2016
2017
%Change
2016
2017
14,333,841
7.55
2,942,736
2,464,596
-16.25
3,436,546
10,826,150
-1.62
593,514
529,625
-10.76
1,255,945
%Change
3,223,625
-6.20
2,378,691
2,947,766
23.92
1,823,128
45.16
653,315
1,551,584
137.49
7,489,300
7,958,701
6.27
3,329,388
3,708,866
11.40
134,504
184,357
37.06
412,806
495,020
19.92
1,319,238
1,432,725
8.60
Ladies Blouses
20,892,897
20,659,360
-1.12
8,463,542
8,188,557
-3.25
3,271,132
3,049,850
-6.76
1,144,100
1,070,653
-6.42
2,798,629
3,153,937
12.70
Ladies Dresses
23,203,047
24,068,134
3.73
10,304,544
10,869,242
5.48
2,042,376
2,139,216
4.74
819,399
725,097
-11.51
4,186,264
4,600,786
9.90
6,466,292
5,350,868
-17.25
2,381,970
2,064,117
-13.34
365,745
287,795
-21.31
467,310
367,177
-21.43
1,236,507
1,110,995
-10.15
Legwear
97,383,095
97,467,768
0.09
56,981,267
61,674,148
8.24
851,574
954,286
12.06
61,622
12,540
-79.65
834,229
820,887
-1.60
Men's Shirts
13,674,866
13,564,810
-0.80
2,739,446
2,718,690
-0.76
1,020,673
1,295,671
26.94
3,923,584
3,524,310
-10.18
1,603,911
1,624,397
1.28
Nightwear
12,918,931
13,256,966
2.62
7,420,447
7,364,591
-0.75
1,006,181
1,008,460
0.23
467,464
667,024
42.69
1,264,146
1,290,494
2.08
4,492,526
4,120,464
-8.28
2,078,640
2,014,940
-3.06
266,491
244,026
-8.43
121,174
47,905
-60.47
853,895
794,083
-7.00
Ladies Skirts
Suits /Ensembles Sweaters
2,108,386
1,766,026
-16.24
1,596,867
1,196,820
-25.05
11,063
11,361
2.69
151,350
131,060
-13.41
64,591
62,382
-3.42
Trousers
99,471,032
102,168,240
2.71
26,732,886
27,953,278
4.57
2,261,146
2,063,530
-8.74
17,123,241
17,396,931
1.60
15,253,587
18,414,915
20.73
T-Shirts
184,574,266
182,562,144
-1.09
29,399,584
29,211,227
-0.64
8,684,393
8,991,188
3.53
7,271,605
6,962,453
-4.25
26,093,041
26,474,576
1.46
80,488,320
80,672,158
0.23
14,819,273
15,512,327
4.68
6,219,479
5,868,695
-5.64
8,584,619
8,827,724
2.83
12,515,964
14,065,354
12.38
Undergarments
Item-wise value increase/decrease in apparel imports by the US: Jan.-Apr. 2017 (Value in US mn $) Exports to USA Total Imports byUSA APPAREL TYPE
China
India
2016
2017
%Change
2016
2017
Babieswear
671.00
695.15
3.60
276.42
Foundation Garments
875.51
914.02
4.40
423.63
Bangladesh
%Change
2016
2017
290.12
4.95
64.32
379.68
-10.37
42.55
Vietnam
%Change
2016
2017
%Change
2016
2017
%Change
59.81
-7.01
60.83
73.21
20.35
60.66
73.47
21.12
35.83
-15.80
26.56
43.09
62.23
31.59
100.27
217.42
Jackets &Blazers
1,147.33
1,155.58
0.72
432.09
459.31
6.30
20.37
23.77
16.69
58.48
62.91
7.57
229.15
232.65
1.53
Ladies Blouses
1,385.29
1,348.84
-2.63
520.98
482.96
-7.30
245.06
233.54
-4.70
64.89
59.28
-8.65
154.31
170.03
10.18
Ladies Dresses
1,940.64
1,913.15
-1.42
861.00
813.48
-5.52
181.83
189.92
4.45
30.05
26.76
-10.97
298.38
303.16
1.60
397.57
320.38
-19.41
134.23
109.69
-18.29
29.48
21.96
-25.54
20.67
15.87
-23.25
74.55
59.90
-19.65 -3.97
Ladies Skirts Legwear
541.01
540.64
-0.07
293.79
304.46
3.63
4.96
5.58
12.35
0.67
-
-100.00
4.71
4.52
1,141.97
1,070.74
-6.24
251.87
229.15
-9.02
80.19
86.56
7.95
226.22
193.04
-14.67
129.53
128.93
-0.46
Nightwear
549.59
526.72
-4.16
309.42
286.11
-7.53
32.75
34.96
6.76
13.91
16.49
18.55
57.79
53.04
-8.23
Suits /Ensembles
440.80
397.16
-9.90
106.03
94.81
-10.58
25.16
27.97
11.18
6.43
4.08
-36.55
63.08
53.60
-15.03
Sweaters
215.54
182.76
-15.21
153.38
119.79
-21.90
0.86
0.80
-7.56
8.50
6.26
-26.43
1.83
4.39
140.14
Trousers
6,146.76
5,998.83
-2.41
1,501.10
1,448.05
-3.53
161.94
135.70
-16.20
941.03
894.51
-4.94
899.58
998.76
11.02
T-Shirts
6,345.71
6,280.05
-1.03
1231.862
1163.793
-5.53
347.991
349.419
0.41
184.00
170.35
-7.42
986.82
1028.20
4.19
Undergarments
1,162.55
1,123.34
-3.37
228.73
244.93
7.08
103.80
96.77
-6.78
96.79
93.40
-3.51
159.13
166.69
4.75
Men's Shirts
Canada Apparel Imports January-April 2017
Canada revamps slightly in April amidst fluctuating market Canada is still falling in value terms of its apparel imports as this downfall is clearly announcing the declining unit prices of apparels. Domestic market is creating new demand for athleisure and knitwear, but other product categories are significantly going down with less consumer spending. However, apart from FTA with North and South American countries, Canada is targeting to set trade relationships with UK also after its exit from EU which might boost its falling economy.
CanadaImports
0.33% While the knitted segment saw marginal boost of 0.89%, the woven segment registered negative growth of (-) 1.50% in value terms.
B’Desh Exports
5.50%
Trade Update
Bangladesh continued its slowdown in apparel exports to Canada as during the review period, knitted garment exports fell by (-) 3.73%, whereas woven segment decreased by (-) 6.67%.
India Exports
6.67% The country was down in its apparel exports to Canada during the review period. While value of exports surged by 1.19% in knitted segment, woven apparel exports fell by massive (-) 11.34%.
Pakistan Exports
16.92% In woven category, Pakistan recorded a commendable rise of 22.14% in value while knitted segment exports to Canada during review period registered growth of 10.68%.
Sri Lanka Exports
Vietnam Exports
4.46%
8.97%
The country saw commendable surge in its knitted garment exports to Canada by 9.32%, whereas woven segment recorded decline of (-) 1.40% during the review period.
Vietnam witnessed surge in its apparel exports to Canada during the review period. Knitted segment rose by 6.08%, while woven exports saw stellar rise of 12.17%.
ChinaExports
2.43% In the knitted garment exports to Canada, the country fell by (-) 1.90%, while the woven garments recorded decrement by (-) 2.92% during the period under review.
Vietnam’s T&C exports boom 12.4% in first quarter Vietnam has witnessed a surging start in the year 2017 in its global textile and clothing (T&C) exports. According to the Vietnam Textile and Apparel Association (VITAS), the country grew by 12.4 per cent year-on-year to US $ 6,750 million during January-March 2017. It’s worth mentioning here that the rising popularity of Vietnam in T&C industry has clinched some emerging importers over the years. Exports to these markets posted strong growth, such as for Russia (up 115 per cent), Singapore (up 36 per cent) and for Brazil and India (up 34 per cent) each. On the other hand, exports to the US, EU and other conventional markets rose around 6.3 per cent to 6.4 per cent on Y-o-Y basis. VITAS also reports that while exports of conventional products such as ladieswear, menswear, etc., rose by 13 per cent to 17 per cent; swimwear, raincoats and scarves grew at rates of 18 per cent to 41 per cent. The boost is said to be a result of the efforts put by the country to export new products that helped to get stable growth in Vietnam’s textile and clothing exports.
RESOURCE CENTRE
Navis Global keeping pace with global demand Asian markets account for 75% of business
In the global knitting industry, Navis Global has earned a remarkable reputation for the depth of technology that they can provide for quality production of finished knitted fabric, the most popular being compactors, pads and dryers. With 75% of business in Asian markets where the majority of production is happening today, the company is always looking at new opportunities to support its customer base and in recent years through acquisitions andpartnerships, the company has alsobecome very strongin wovens, non-wovens, andin industrial and technical textiles segments. In an exclusive discussion with Apparel Online, William J. Motchar, President & CEO, Navis Global shares his thoughts on some critical areas of future growth. Excerpts from the interview‌
AO: What are the factors that make your machines so popular in the knitting segment? William Motchar: All our machines run at the highest speed and provide the requisite quality parameters that brands and retailers require. We have designed our compactor for quick changeover because it is required by many customers especially in South Asia where small lot sizes are produced. Since we can provide the compaction needed in one pass through our machine, and we run at a speed of 2-3 times compared to our competitors, our running cost is much low than our competitors.
AO: Kindly brief us about the SCS (Spirality Correction System), which is among your latest developments in the market. William Motchar: The system is for tubular knitting and though the intake was slow at the beginning, the demand for this machine is growing rapidly. It is a very unique technology that solves the spirality problem for knit fabrics. Though spirality is a problem for all knit fabrics, it causes maximum issues for knit fabrics made with ring spun yarn. We have over 10 machines running in South Asia (India, Bangladesh, Pakistan) and we are
William J. Motchar, President & CEO, Navis Global (C), with his colleagues at the launch of Spirality Correction System
currently installing machines in Central America for all the large producers there. All high-end brands like Michael Kors, Perry Ellis, Ralph Lauren, etc. as well as basic apparel manufacturers are either already using SCS technology or they are targeting to implement SCS soon.
AO: The industry is moving toward fourth generation technology under Industry 4.0. How is Navis Tubetex gearing up to keep pace? William Motchar: We have been involved with several customers in their efforts to proceed in the domain of Industry 4.0. We are working with
them to equip our machines with the latest electronic technology that will allow them to collect extensive data from the machines to integrate into their plant wide systems. It is a huge growth area for sure. We have been investing heavily into the technical textiles area. Most of our business in this area is currently in North and South America. It is a good market segment for us because it requires high technology and process know-how which matches our capabilities and thus does not have the pricing pressure of basic fabric manufacturing machinery. AO: How important is IndiaBangladesh-Vietnam for Navis Tubetex and where is the next frontier for growth? William Motchar: Thesethree countries – India, Bangladesh, and Vietnam – are critical markets for our company. While India and Bangladesh are consistently in our list of top 5 markets, Vietnam is also growing rapidly. We have many current projects in Vietnam and are expecting our business to increase there further. Among the new markets coming up, the African market is on the path of development and I see it where South Asia was 10-15 years ago. We are already selling machines there now and I think we will grow there exponentially in future because of plenty foreign investment in Africa. AO: How are the countries placed in terms of demand for tubular as well as open width compactor machines, and why? William Motchar: Currently India has more demand for open width compactor, while Bangladesh and Vietnam have roughly equal demand for tubular and open width. The overall trend is for more open width. Generally high-fashion expensive garments are finished open width and basic apparel like T-shirts, underwear, etc. are finished tubular. This explains why India has a bigger demand for openwidth compactors.
Eyes & Ears Two buying houses of National Capital Region moved to closure
F
or some of the industry players who were prominently involved in the overseas business, the market is going through turmoil which is putting the players at stake. The uncertainty of the global market has also affected few buying houses which have forced them to shut down their operations. With the struggling status of small- and medium-size exporters, things are getting crucial for the smaller level buying agencies too. Recently, two sourcing houses from national capital region closed their shutters. Raghaw International decided to close its Gurgaon office and direct its business towards a new segment, whereas Tex International stopped its Gurgaon operations. Raghaw International, a sourcing house which was based in Gurgaon, closed its doors due to unsteady market. Sandeep Singh, Managing Director, Raghaw International, confirmed the news saying, “We have closed our buying house due to the jerking, and since nothing was left to explore in the global market… We also know that market is going through a rough patch, so for present
we have diversified our business into the hospitality sector.” Tex International, another Mauritian sourcing company, which is still operational in Bangladesh and Mauritius, has closed down its Gurgaon office for unknown reasons.
Mitsui & Co. gets new Managing Director for India operations
M
itsui & Co., the company which sources various products of different categories from India, has recently appointed its new Managing Director for its India operations. As per sources, Makoto Suzuki, one of the Managing Directors, has stepped down from his position and is back in Japan. Currently, Hiromichi Yagi has taken over the position of Managing Director of thecompany. Formerly, functioning as a Managing Officer for more than three years, Hiromichi Yagi has commenced his position as MDfrom April 1, 2017. Mitsui &Co., established in 1947, is one of the trading giants in Japan. Other than fashion and lifestyle, the group also deals in energy, metals, information corporate and much
more. The brand also has its foot prints in UK, US, China, Canada, Thailand, Malaysia and many other parts of the globe.